Divorce Insurance- Do You Need It?
Divorce Insurance Is Catching On
By Kim Fettig, CBS Atlanta Consumer Reporter
ATLANTA — You insure your car, your home, even your life. So what about your marriage? Experts say 44 percent of Americans fall below the poverty line after a divorce so one may says he has the solution to keep you from financial ruin if your marriage fails.
John Logan invented Divorce Insurance after he had what he calls a “world-class ugly divorce.” “I was broke. I was about to lose my home. I thought, ‘gee whiz, I can’t be the only person this has happened to,” said Logan.
Here is how it works: You buy units of coverage for $15.99 each. Each unit covers you for $1,250. The units go up in value with each passing year. The catch is that you can’t cash in on the policy for four years from the date of purchase.
Divorce attorney Randall Kessler says divorce insurance may give folks too much comfort. “Doesn’t that give you incentive to fight a little bit more if you know the lawyer is paid for?” Kessler told CBS Atlanta.
Just days before her wedding, we asked producer, Sarah Baldwin if she would consider divorce insurance. “It’s just so pessimistic. If you feel like you need divorce insurance, maybe you shouldn’t be getting married.” Sarah said.
Logan said the typical client is someone who may have been married before and understands the financial ruin of a divorce. Some people have even given divorce insurance as a wedding gift.