Divorce Insurance

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The Divorce Insurance is a type of Contractual liability Insurance that pays the policy holder an amount of money in case his marriage ends in a divorce. The main objective of the Divorce insurance is to reduce the risk of huge financial losses as a result of the divorce proceedings. Due to the increase in the number of divorces around the world, the Divorce has become a major reason for Bankruptcy and poverty around the world which is the reason why this policy gained significance.

John H logan is the first person to have got the Idea of the Divorce insurance. It is said that he got that idea due to the bankruptcy of one of his very close friend which happened due to his friends Divorce. The Divorce Insurance reimburses the policy holder the amount he had to pay as a result of the end of his marriage due to divorce.

At present the Yangguang Life Insurance company is the only insurance company which provides the Divorce Insurance policies. In the beginning this policy was only given by the SafeGuard Guarantee Corporation which was started by John. A Logon ( the person who first got the idea of Divorce Insurance).

This Divorce Insurance policies are sold in units of the amount which will be paid on the first day when the benefit is available. There is a fixed price for each unit and the number of units purchased by the person decides the amount of money he might receive when the policy holder's marriage ends due to divorce. This ensures that policy holders buy more and more units and the Insurance company gets more revenue.

The value of benefit which will be derived from each unit of the Insurance will be increasing with each passing year. This ensures that more time the policy holder is engaged in the program the higher the benefit he will derive when the marriage finally ends on account of Divorce. To ensure against adverse selection these Units have a minimum lock in period and a standard lock in period is 48 months from the date of purchase of the units of the Divorce Insurance Policy.