Planning a wedding requires a lot of time, effort, and money. After putting in that much investment, no one wants to think about the potential of a divorce happening. There is such a thing as divorce insurance, though. In some cases, it might help with the financial aspects of a divorce.
This week, one of the biggest celebrity gossip stories that is floating around the internet has to do with Kim Kardashian. She was married to Kris Humphries for around 72 days before the couple got a divorce. There is speculation that this marriage was “a sham”, or “a publicity stunt”.
Divorce insurance has been described as a “safety net”. There are some misconceptions about exactly what this type of insurance can, and can not, do. It might not do exactly what you think it should do.
The purchase of divorce insurance doesn’t make it impossible for you, and your spouse, to ever get divorced. The reality is quite the opposite. Divorce insurance “kicks in” after a divorce occurs. It only takes one person to apply for this type of policy. One does not have to convince his or her spouse to agree to sign it as well.
One of the companies that sells divorce insurance is called WedLock. According to them, divorce insurance doesn’t cover situations like the extremely short marriage of Kim Kardashian. It doesn’t work that way.
The standard divorce insurance policy requires a couple to remain married for four years before they decide to get divorced. The policyholder would pay $150.00 a month for a $15,000 policy. If the couple divorces after four years of marriage, then the policyholder would receive the entire $15,000. (However, he or she would only have had to pay for $7,200).
Around 44% of Americans have their income drop below the poverty line after a divorce. The financial benefit that a person could receive from their divorce insurance policy can help prevent that from happening.
The policy does not cover assets. Instead, it gives a person the financial means to “get by” while they are getting divorced. The benefit can be used to pay for lawyers fees, court fees, counseling or therapy, or whatever else a person needs that will help him or her recover from a divorce.
Image by jingdianmeinv3 on Flickr