While you may think a divorce insurance policy is ridiculous, you might find that many of the 44% of families that go below the poverty line as a result of divorce (Julia A. Heath and B. F. Kiker, “Determinants of Spells of Poverty Following Divorce” Review of Social Economy, 50) here in America would disagree. I’m going to take a wild guess and say that you’ve likely never been through the financial disaster that so often occurs with divorce or you’d already know that on average people lose 77% of their net worth as a result of divorce (Jay Zagorsky, National Longitudinal Survey of Youth study findings, Journal of Sociology, Ohio State's Center for Human Resource Research). And unfortunately, women are hit the hardest. In fact, absent remarriage, the typical divorced woman can expect her standard of living to stay near the poverty level for an extended period, and this drop cannot be explained by selection effects (causes) into divorce (Pamela J. Smock, Wendy D. Manning, and Sanjiv Gupta, “The Effect of Marriage and Divorce on Women’s Economic Well-Being” American Sociological Review, 64). And many never recover. About one-fifth of women who apply for welfare benefits for the first time do so because of divorce or separation and about one in four mothers who were first propelled onto welfare by divorce are still welfare-dependent five years later. (Johanne Boisjoly, Kathleen Mullan Harris, and Greg J. Duncan, “Trends, Events, and Duration of Initial Welfare Spells” Social Service Review).
Tell them divorce insurance is a bad idea.
In addition, while it’s clear that you dislike insurance companies as a whole by the comments you make about the insurance industry’s use of algorithms and its spiraling slide of ethics, you might find it surprising that I agree with your point of view. Which is why your readers should be appalled by your lack of even cursory research into our product’s development or the management team that makes up our company and the disparaging implications you make regarding our ethics, denials of claims, our use of calculators (none of which were developed by anyone even remotely connected to the insurance industry) and some non-existent “broken-heart portal” you mention without a shred of any fact based evidence.
I’m sure you’ll also be surprised to learn that this product was not developed within the insurance industry as some new method to suck money from the wallets of unsuspecting policy holders, in fact, it wasn’t developed within the industry at all. It was developed based on my own dreadful experience with divorce long before I started in the insurance industry. And had you taken the time to better understand the product, you’d know that it has no underwriting restrictions so filing a claim consists of sending their court stamped divorce decree along with a copy of their policy. If their policy was in force (meaning paid as agreed) when they divorce, the likelihood of any denial of claim is nil. We don’t think that’s asking too much and I’m sure the general public will agree that can hardly be described as a “headache”.
With regard to our ethics, I’ll let history be the judge of that since clearly, you know nothing about me, my team or our motives. However, I think most will agree that if we can keep even one child out of a life of poverty for even one day, all the monetary benefits pale in comparison. If you think our methods to accomplish that goal are unethical, then mea culpa.
And regarding your statement that “It appears you can somewhat bet against your decisions on picking partner for life. This kind of tell(sp) me we have a business here that’s up front telling you that you don’t have the sense in this world today to find a partner, you think?” We’re glad you’re such a great judge of character, but if you look closely at all your friends and family, do you really and truly think that every one with a failed relationship is that bad at picking a life partner? And somehow, you’re immune? The reality is that circumstances change and people change along with them.
No one can predict the future and the risk of divorce is real and tangible, in fact you’re more likely to divorce in the next decade even if you’re on your first marriage (1 in 3) than you are to get into a serious car accident (1 in 4) yet few people realize it. We hope you don’t but we’re here to help you if you do.
The bottom line is that we know WedLock Divorce Insurance isn’t for everyone, but I challenge you to better understand our product and our company before you make such uninformed assumptions and lump us into this group of insurance n’er-do-wells that you think the insurance industry is made up of. We’ll let the market be our judge.
John Logan – CEO, SafeGuard Guaranty Corporation