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Forget The
Pre-Nup, Buy Divorce Insurance Instead
POSTED: 6:24 pm
EDT September 18, 2006
RALEIGH, N.C. --
Nearly half the marriages in the United States ends in divorce, so
one local entrepreneur now wants to offer divorce insurance.
Eileen McElroy
recently started shopping for the perfect wedding gown.
"It's fun
because you never know when you put that dress on if it's going to
be the one," McElroy said.
She is sure her
fiancée is the one, but the vow "til death do us part" doesn't mean
all that much to one in five Americans who get divorced.
McElroy is sure
she would not purchase divorce insurance.
"No, never!"
McElroy said. "I really don't think I ever would because it almost
would put a stain in my mind that I would need it."
Local
entrepreneur John Logan said he spent $35,000 on his own divorce.
"Setting up
separate households, it's a recipe for disaster -- financial
disaster," Logan said. "Nowadays, according to research I've been
able to find, almost half the families that suffer through divorce
spend at least some portion of time at poverty level."
Logan went into
the insurance business five years ago and started exploring how to
help others financially survive a break-up and came up with divorce
insurance.
"We provide a
means for them to pay off their attorneys and start a new life for
all intents and purpose," Logan said.
So who reaps the
rewards? "The biggest pay off is for folks who actually stay married
for 25 years," Logan said.
In that way,
Logan hopes to make a positive impact.
He knows with a
divorce rate near 50 percent, claims will be high, but he is sure
the math works.
"Most of the
folks that pay into the premium will pay into a reserve that in turn
has investment value and that helps to shore up the investment for
folks who file a claim," Logan said.
Logan's company,
Safeguard, is finalizing its investment group. He couldn't go into
specifics just yet on the premiums, but he said the base price will
be affordable for anyone. He plans to offer divorce insurance
internationally in 2008. |
