Insuring Milestones

Insurance Journal recently ran a story on its Web site, www.insurancejournal.com, about the increasing popularity of wedding insurance. The economy, it seems, is driving the young and in love in greater numbers to seek economic protection in case their dream day goes awry.

“Fantasies of the perfect wedding never included banquet halls going bust or lovebirds losing their jobs,” the Associated Press story explained.

Rob Nuccio, program administrator for Fireman’s Fund Insurance Co., said sales for wedding policies that can cover costs when the unimaginable happens are up by more than 20 percent this year. “The economy is driving the sales because of the potential for job loss and the potential for vendors going out of business,” Nuccio said.

With wedding insurance, if the power goes out or the caterer craters, and the party is over before it began, those with coverage can recoup their monetary shortfalls.

Neither of my young adult offspring is planning a wedding in the near future – at least not that I know of – but my youngest recently experienced an important life milestone of another sort. She graduated from university with a degree in liberal arts.

With the economy below par and the job market – what job market? – in the gutter, the wedding insurance story got me wondering. Do they sell graduation insurance? Is there coverage to be secured for a hard working student who studies diligently, graduates in four years and emerges with a degree, ready and willing to make some money but finds there are no jobs to be had?

Some might scoff and say – a liberal arts degree? You’ve got to be kidding. But the New York Times just ran a piece on law school graduates who are finding the job market a tough and repelling place. So there.

Still, fantasies of the perfect graduation almost always include a job offer in the mix, in parents’ minds at least.

Anyway, as a parent who bankrolled her daughter’s education, an insurance payout certainly would be welcome just about now. But I do concede there are questions to consider.

What are the underwriting criteria? How do you judge which student would be a good risk and which you would look at and say, “um, no way?” Would the grade point average be considered? Most don’t have credit histories, so that wouldn’t be of any help.

Who would be the beneficiary of graduation insurance? The student? Parents who paid for their education? The lender to whom the student now owes tens of thousands of dollars? How long would a student have to pursue a career without success before he or she could cash in on the policy?

Ah, so many questions, so little time. But after we get those solved, here are some other ideas. Getting back to that wedding day – how about insurance against a spouse who really doesn’t turn out to be that great of a match? Or against a deadbeat parent who won’t pay child support? And those children? Surely someone might want to buy coverage for that sweet little four year-old who as a teenager, turns into a well, we don’t need to go there.