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John Logan, creator of WedLock Divorce Insurance, simply wanted to encourage couples to plan ahead and provide them a viable option should their marriage turn sour in the future. However, most people, the latest being Los Angeles Divorce Attorney Mark Baer, simply would have none of it.
The divorce insurance company capitalized on this fairly new and innovative divorce concept by releasing its website on August 5, 2010. WedLock then marketed itself as a perfect wedding gift to protect both spouses from incurring huge financial losses if they ended up divorcing.
WedLock Divorce Insurance sells individual policies, also known as ‘units,’ which costs $15.99US and is equivalent to $1,250US upon payment of initial coverage. Clients can choose from any quantity of units depending on the standard amount of divorce costs in their respective states. Therefore, the initial coverage of 15 units is $18,750US ($1,250US x 15), which is enough to cover the legal and service fees in most states. Once the waiting period of four years end, the clients will see their benefits go up by $250US annually while their premium never increases. Therefore, in order to receive the lump sum of cash equivalent the client has paid for, he or she must present the proof of divorce to the company after the waiting period has elapsed.
Although divorce insurance appears to be a novel concept, Attorney Baer, who has helped couples in Los Angeles dissolve their marriage while inflicting as little damage as possible to their families for 25 years and counting, sees this type of insurance in a different light. According to his press statement, "Studies show that people who negotiate a pre-marital agreement may have stronger marriages than those who don't as the process of creating the agreement acts as a form of premarital counseling. However, divorce insurance provides no such benefit. When couples hit hard times, instead of working to correct these problems, divorce insurance will motivate them to seek an ending to their marriage to get a return on investment, ultimately promoting divorce."
In addition to that, he proceeds by saying, "If you are buying divorce insurance because you think the marriage is going to fail, how successful of a marriage are you going to have?"
Although Baer does present some valid arguments that challenges the legitimacy of divorce insurance, only time will tell if WedLock is effective enough to protect spouses from financial pitfalls caused by the dissolution of marriages.
Related News: NC Start-Up to Offer Divorce Insurance
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