Divorce Insurance

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Divorce Insurance

Divorce Insurance

What is Divorce Insurance?

Divorce insurance is a form of contractual liability insurance that pays the insured a cash benefit if their marriage ends in divorce. The first company to offer "Divorce Insurance" was SafeGuard Guaranty Corporation. The purpose of divorce insurance is to mitigate the risk of incurring significant financial loss as a result of a divorce proceeding. As divorce rates have increased around the world, divorce has become a major contributing factor to bankruptcy and poverty globally which in turn created the demand for such a product;

How long do you have to get insurance after you get married?

It is called a special enrollment period, and it begins on the date you get married and usually lasts 30 to 60 days. If you don't enroll during this time, you'll have to wait for your insurance company's open enrollment period, which is an annual time period during which you can add your spouse.

Here are some situations where separation is better than divorce:

  1. A spouse can retain the benefits of the couple's health care plan, especially if it is under the name of the other party. Getting divorced usually terminates this coverage (depends on the terms of the divorce settlement).
  2. Some religious beliefs and institutions have conflicting ideas on divorce. Couples who wish to live apart can choose to have a legal separation agreement in order to stay married for the sake of their religion.
  3. Military spouses gain benefits from the Uniformed Services Former Spouse Protection Act if they remain married for at least 10 years.
  4. Remaining married for 10 years or more also qualifies couples for certain social security benefits.
  5. Taxes are must be filed singly after a divorce.
  6. Separation allows time for both parties to resolve their differences to either resume the marriage, or finally settle on divorce and move on with their lives.