Divorce insurance is a form of contractual liability insurance that pays the insured a cash benefit if their marriage ends in divorce. The purpose of divorce insurance is to mitigate the risk of incurring significant financial loss as a result of a divorce proceeding. As divorce rates have increased around the world, divorce has become a major contributing factor to bankruptcy and poverty globally which in turn created the demand for such a product.        Contents
2 How policies work
3 Who offers it
5 External links
Divorce insurance was developed in 2005 by John A. Logan. Logan is the Chairman, CEO and founder of SafeGuard Guaranty Corporation, a privately owned holding company which was incorporated solely for the purpose of developing such a product as a result of Logan's own financial turmoil following his divorce in 2002.
How policies work
Divorce insurance is a form of casualty insurance; specifically, contractual liability insurance. As such, divorce insurance reimburses the owner after a marriage (the contract in this case) is dissolved by way of divorce or marriage dissolution upon finalization of which, the policy owner submits a claim to the insurance company.
Divorce insurance policies are sold in 'units' of 'initial claim value' or the amount which would be paid on the first day that a benefit is available. Each unit has a fixed price and the number of units purchased relates directly to how much the insured/beneficiary receives when a claim is paid. In addition, the initial claim value increases by a set amount every year after the elimination period ends so that the longer the insured stays in the program, the more money they receive should they divorce. The result is that over time, a small unchanging monthly payment could result in a substantial benefit payment.
To protect against adverse selection, Divorce Insurance policies have a lengthy ‘elimination period’ or a waiting period before a claim can be filed. Currently the waiting period for the standard plan offered by the company that provides Divorce Insurance is 48 months.
Who offers it
Currently, Yangguang Life insurance company（China） is the only company in the world offers Divorce Insurance. The insurance was marketed and sold by the inventor of the product, SafeGuard Guaranty Corporation under the brand name of WedLock Divorce Insurance. Their website was http://www.wedlockdivorceinsurance.com which now redirects to SafeGuard Guaranty Corporation's home page. The company's website explains "WedLock policies are not currently available, but we are actively looking for underwriting relationships that will help us relaunch and move to the next phase which will also provide for a long term 'Successful Marriage Benefit' for those policy holders that do not divorce, thereby financially incenting them to stay married." No other company in the world has offered any form of marriage or divorce insurance.
The smart consumer will always check all the details before signing up for a policy. WedLock offered Riders that allowed for reimbursement of paid-in premium if you get divorced during the elimination period, a partial claim payment if you file a court stamped legal separation, and a rider that reduces the elimination period from 48 months to 36 months.
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