A company called WedLock now offers divorce insurance. That’s right, divorce insurance. If you divorce after a thirty-six month waiting period, the policy pays you a benefit, meant to cover the cost of your divorce. What’s next, a divorce app?
Let’s look at the cost of this new concept. A policy is not cheap. Every $1250 of coverage costs $16 per month. The average litigated divorce costs upwards of $30,000. A $30,000 benefit would run you $384 a month – and is probably close to what you pay for your car payment. Is it even cost effective? At a yearly rate of $4608, eight years of marriage (the median point length of marriages that experience divorce) this $30,000 benefit will actually cost you $36,864 in premiums. More than a divorce itself and much, much more than a mediated divorce would cost.
Money concerns aside, is divorce insurance any different than a prenup? To some couples it might be. A prenup is something you do once, while thinking, “we’ll never need this, but just in case….” Divorce insurance is something you have to pay every month and keep in force, so it keeps the possibility of divorce as an active thought in your mind. Each month you have to mentally reevaluate if you might need the policy and if you ask yourself something like that often enough, the answer is bound to be yes at some point.
Want some effective divorce insurance? Try premarital counseling. One study found that couples who went to premarital counseling had marriages that were thirty percent stronger than couples who didn’t. Counseling taught them communication and conflict resolution skills. What if you’re already married? Counseling during marriage has been shown to create a feeling of significant improvement in sixty-five percent of the couples who attend. If you are considering divorce, mediation is the most cost effective and satisfactory way to resolve the issues in front of you. No insurance needed.