Is marriage insurance a good solution?
With 10 million marriages in
expected to end in divorce by 2015, this probably isn't a bad idea
Tuesday, February 06, 2007
Awhile back, I wrote a column about life insurance and ended it with
a wishful quip: "Now only if there was divorce insurance, we'd all
Little did I know that it was already in the works. Sometime this
year, John Logan, an entrepreneur from
North Carolina, hopes to offer couples
around the world the option to buy marriage insurance. His company,
SafeGuard Guaranty Corp., is in the final stages of funding this
"Almost half the families that suffer through divorce spend at least
some portion of time at poverty level" as they're forced to set up
separate households, says Logan, who spent $35,000 on his own
He claims divorce creates financial devastation for many people who
have to start all over again. "It is the No. 1 reason for bankruptcy
and poverty among newly single mothers worldwide."
And a recent study out of
found that people lose an average of 77 percent of their net worth
during a divorce. (I was a stay-at-home mother when I divorced. How
would you calculate the value of that?)
MAKES PERFECT SENSE?
Really, though, it makes perfect sense, doesn't it? We have life
insurance, fire insurance, house insurance, medical insurance,
travel insurance and even pet insurance -- so why not marriage
insurance? With an estimated 10 million marriages in America
expected to end in divorce by 2015, getting married appears to be
one very risky venture, anyway.
Just ask rocker Rod Stewart, who said, "Instead of getting married
again, I'm going to find a woman I don't like and just give her a
While it seems that I got married and divorced way ahead of my time, Logan is quick to point out that the premise
of his idea isn't to get rich from a divorce, but rather to reward
couples who "invest in themselves" and stay married for a long time.
"Our goal is to give people real incentive to make their marriages
last," he said. So if you buy the insurance and stay married for
years and years, the cash benefit will be greater than if you
divorce, and your marriage will, literally, be golden.
"We hope divorce is never on their minds because we'd be happy to
hand them a very large check after 25 years of marriage,"
But wouldn't this encourage people to marry for the wrong reasons?
"Quite frankly, we think few criminals would be willing to pay
substantial money into a program for years on a timely basis simply
to commit fraud," he said. "More importantly, we won't lose money if
estimates the market for divorce insurance to be nearly $200 billion
SafeGuard's CEO can't discuss the specifics of his program, the
"secret sauce," if you will, since the patent and funding are
pending. But Logan says the base price will be affordable
Gee, all this talk about marriage insurance is making this divorced
columnist a little soft and sentimental. Hmmm . . . if only the ex
and I could start all over again -- I'd eventually own property in
To contact John Logan of SafeGuard Guaranty Corp., send an e-mail
to: email@example.com. Lynn Armitage, a syndicated
columnist from Orange County,
Calif., believes the best insurance against
divorce is to marry the right person to begin with.
© 2007 Staten Island Advance
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