Consumer Boomer

Posted: 16 Mar 2011 06:30 AM PDT

It is probably true that no one gets married with the idea that their marriage is going to fail. However, we’ve all heard the doom and gloom news stories and predictions that almost half of all marriages today end in divorce. And the statistics are far worse for second and subsequent marriages. If we think of our own lives we probably all know multiple couples who are divorced.

Divorce can have devastating consequences to the health, well being, and most importantly, financial position of those involved. Most families are already living off of two incomes, paying mortgages, have credit card debt, car payments, and countless other expenses. Often, after divorce, and the division of assets, there just isn’t enough money for each party to continue to live the lifestyle they were accustomed to as a married person.

Could divorce insurance be the answer to some financial security, should the marriage fail? Let’s take a look.

Where Can One Get Divorce Insurance?

Currently, divorce insurance is a very specific service offered by SafeGuard Guaranty Corporation, marketed as WedLock Divorce Insurance. Their products and services are marked online in order to keep overhead costs down. Monthly premiums are paid through credit or debit card only. Divorce insurance is NOT something you can get through a typical insurance company such as a company that covers car or homeowners insurance.

What Does it Cost?

A typical policy costs just under $16 per unit per month, or approximately $190 per year. One unit gives the insured $1250 in coverage, so in essence about a $350 pay out at the earliest available redemption. Up to 200 units may per purchase per policy. Essentially a 200 unit policy would be worth $250,000 and would cost approximately $38.000 per year. Of course, the longer the person is married, the more the policy becomes worth, as WedLock adds $250 per unit per year.

Why Wouldn’t Everyone Purchase Divorce Insurance?

First off, imagine approaching your potential spouse and saying something along the lines of "hey, I’m thinking our marriage might fail, so let’s buy some divorce insurance". Not the most romantic and promising thing to say to the person you are vowing to spend the rest of your life with.

Second, there are drawbacks to the policy including:

There is a 4 year waiting period to cash in a policy – so if you get divorced in less then 4 years, the policy is worth nothing (although any premiums paid, minus taxes, can be re-claimed)
If you are already in the process of divorce, this insurance will not help you – it insures against future living expenses/divorce costs, so you must anticipate a divorce well in advance
The only way to cash in a policy is to actually get divorced, so if you marriage actually lasts indefinitely, you are out your money
Finally, it’s costly. Perhaps not as costly as going through a contested divorce, but there are other investment options and ways to save for that potential expense.

The Benefits

Should you you be faced with an ugly divorce, costing thousands of dollars in lawyers fees, and need to move and restart your life, having divorce insurance could bring peace of mind. Starting over after the devastation of divorce may not seem so daunting if there is a bit of a safety net to fall back on.

photo credit: Ocean blues

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The Japanease Disaster! Drill or Not to Drill, Nuclear Power vs. Oil and Coal.

Posted: 15 Mar 2011 09:43 PM PDT

I am intentionally going to keep this article very short and very simple.

photo credit: USFWS/Southeast

Here we sit in the good Ole’ USA unable to to drill for oil in the Gulf or in remote Alaska as our gas prices climb towards 4 or 5 dollars per gallon. The worst thinkable oil disaster in U.S. History actually happened just last year in the Gulf. Today, tar balls on the beach in Destin Fl. seem pretty minor compared to nuclear reactor melt downs in Japan. Any idiot that believes we can fuel the US economy with Wind power is nothing more than an uninformed “blow hard” themselves. Think about it … Drill Baby Drill!!! Papa B.