India (Commonwealth Union)_ Despite housing the world’s second largest population after China, India has the lowest divorce rate in the world. According to reports, India’s divorce rate is below 1%, indicating that only 13 out of every 1000 marriages in India end in divorce. In addition to other factors, the major reasons behind this low divorce rate may be due to social pressure and arranged marriages.
During a divorce, alimony imposes a financial burden on the paying spouse, generally a man. Alimony is known as the financial support granted by one partner to the other following a divorce. As a result, divorce insurance might provide the couple with the necessary financial assistance during a divorce.
Safeguard Guaranty Corp, an insurance company based in North Carolina, was the first to provide divorce insurance in 2010. The name of Safeguard’s divorce insurance coverage is ‘Wedlock’. This unit-purchasable insurance costs $15.99 per unit and provides coverage of $1250 per unit. In addition, if the insurance stays active, the Safeguard business gives the policyholder an additional $250 per unit of coverage every year. The claims procedure is easy. During the divorce case, the policyholder is required to provide documentation of the divorce, and the insurance company pays out the lump sum amount of the policy, which can be used for divorce-related expenditures. However, there is a 48-month waiting period to avoid moral risks.
The concept of marriage insurance was introduced in China in 2016. China Taiping Insurance Holdings, a Chinese insurer, introduced a revolutionary insurance product titled ‘Marriage Insurance’. On the other hand, Egypt may be the only nation in the world that is currently drafting legislation on divorce insurance. India requires divorce insurance to assist spouses with financial aid in the event of a divorce. The Insurance Regulatory and Development Authority of India (IRDAI) may develop regulations for divorce policies that take into account the moral risks that may be connected with such insurance. This would be a solution for divorce-related financial burdens for couples.
