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Marriage Insurance … The Next Big Thing?

Monday, June 22nd, 2015 by Guest

Hearing the spiteful and snide remarks, I’m always amazed at how some couples remain married. It’s not that they have never thought of divorce, they probably think about it daily. The glue to keeping these unions of unhappiness together is the power of the mighty dollar.

It’s a fact of NZ marital life – separate and your dollar you once owned now becomes 50 cents. In losing one problem, you gain another. You get to keep the house …. only now you have twice the mortgage.

Divorce is never pretty, and there always seems to be one party that comes out the other side better off. So you split the assets 50/50 but ultimately the winner is that person whom is able to generate more wealth due to their profession or other circumstance. The loser is the person who opted to stay at home and raise the children.

Let’s face it, once you’re out of the professional workforce for an extended period of time, it’s very hard to make up the lost ground. I can’t say I’ve ever seen the stay at home dad, who sacrificed his cricket career to be a house husband for his career orientated lawyer wife, make the Black Caps after his divorce. His financial security was as strong as his marriage, the forgone sporting opportunity, nothing but a photo on the mantel piece.

That being said, only an insurance actuary can put aside the emotional, and quantify with clarity the loss, or potential loss that will eventuate from a divorce. is now offering couples the ability to buy insurance in the event of divorce. It costs about $20 a month for every $1,500 of cover.

To discourage people from signing up just prior to their divorce, policy-holders must hold the policy for at least four years. The policy adds a premium of $300 per unit for every year the marriage survives beyond four. So if a policy-holder buys $30,000 cover and gets divorced after 10 years, he or she would have handed over $12,000 and would receive a payout of $31,800. It’s probably not worth getting divorced for, but the lump sum may salvage some pride, or provide a war chest for the ensuing litigation.

Just in case you’re wondering (which is not a good sign), I don’t believe the cover is available to New Zealand residents.

This article was written by Steven de Jong, who is a partner at Pinnacle Life and writes frequently on the topic of life insurance. Pinnacle Life offers consumers the opportunity to buy life insurance ‘instantly’ online without the need for a medical examination. Visit Pinnacle Life for more related information, and you can read Steven’s articles here at

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6 Responses to Marriage Insurance … The Next Big Thing?

  1. becks says:

    Yes know all to well how divorce works, have not had to endure this experience myself personally, but know how much it can destroy a person when they end up with nothing out of it – so much minipulation from parties and the gossip in between does not always help either. Not only do you lose the one you once loved, but you lose family, friends, a house, and money. Why get married with all these problems that could arise. I guess thats why my moral has always been if you have been together for less than 10 years maybe dont get married as you dont really know if you will last.

  2. Ricardo says:

    It is quite disturbing to see the vast numbers of young men who now have no interest whatsoever in marriage. The latest nail in the coffin for them was the matrimonial act put in place by Labour in 2007 which gives the ‘non-financial’ partner the ability to apply for alimony and extra compensation on top of the 50/50. Most of my friend’s teenage and 20’s sons have no interest in anything other than a fling, and they are all at great pains to avoid relationships that last longer then 12 to 18 months to avoid this counterproductive’2 year’ relationship legislation.

  3. Rob says:

    Thanks for this Steven. Nice to have it talked about. Helpful and even hopeful too.

  4. mp says:

    Talk about making divorce the norm…..which i know that it is becoming this….but why not try and change this and make marriage the norm.

  5. Susan says:

    NZ is a haven for divorced women. The law is on their side and the man walks away with nothing. Let me explain. I know a lady who recently came to NZ on the pretext of moving the whole family here. Just before her husband arrived, she served him with seperation to be followed by divorce papers. According to NZ law she gets half of everything as they had not yet changed their marriage agreement to suit NZ laws. According to their original contract she gets nothing. She knew all this, planned it all well in advance and now, to cut a long story short, has got immigrations to ban him from entering NZ, she has all the assets here and has custody of the minor child which she refuses to relinquish. He has nothing and she is getting away with it because NZ law is on her side.

  6. Anthony says:

    It’s hardly surprising that marriages end in a mess. If you go into a relationship based on permanence, its disolution is not what you are focussing on. Indeed, if you did it wouldn’t get past the first arguement. If marriage is not valued to the extent that the vows dictate, you are embarking on a lie and disaster will inevitably result. The current acceptance of marriage as a temporary contract undermines and undervalues the whole thing..

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