Recently I discovered an insurance company offering “WedLock.” WedLock offers policies that will “pay you cash benefits that range from $1,250 up to $1,250,000 per policy if your marriage ends in divorce.”  This service is brought to you by SafeGuard Guaranty Corporation.  Each unit of coverage costs about $15 per month (each unit equals $1,250).  The company adds $250 of coverage every year per unit.

The thinking behind this program is that this insurance would help to defray the cost of an attorney, moving expenses and any other miscellaneous expenses that could appear.  However, the policies don’t mature until 48 months after their effective date (meaning you can’t get this insurance right before a divorce).

How Can You Tell If Insurance Is Legitimate?

There are a plethora of options for someone seeking insurance (not just different companies, but different types) to cover their risks.  Most legitimate insurance policies are either backed or regulated by state or federal government.  The reason for this is to ensure that the insurance companies can actually back their insurance policies (i.e. not run out of money).  However, the WedLock insurance is not backed by any state or government fund, only by the startup company.  When there’s nothing backing a company except their own statements, especially in a start-up phase, there’s reason to be concerned.  Most start up companies will fail, so if you were to buy insurance and WedLock’s company fails, you’d be left with a worthless insurance policy

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