I have been reading about the new concept of divorce insurance. I think about it the way I think about divorce parties. I don’t see the benefit.
When a couple gets married, the idea of a pre-nup is often shunned because many feel like signing a pre-nup might be an indication that the marriage won’t last.
Therefore, how realistic is it to make an insurance payment each month so that a couple might experience some financial relief in the event of a divorce.
From what I understand, the insurance is purchased in units and if a divorce occurs after the policy matures, the couple is sent a lump sum. That lump sum is based on how many units of insurance they purchased. The policies don’t mature until 4 years after the first premium unit is purchased.
In my opinion, it makes better sense for the couple to put money into a savings account just in case. The argument is that in the event of a marital issue, one spouse may squander the nest egg.
Thus my opinion is that each person in a marriage should have a nest egg in case of an emergency which realistically could be divorce. In my opinion, this nest egg is crucial for a stay at home mom since she has no means to pay bills in the event of a death or a divorce.
