Funding a wedding

There is little doubt that a family wedding is one of the biggest calendar events of the year. It’s likely to be remembered, treasured and talked about at family gatherings to come, but it can take years of careful planning.The more you’re able to arrange in advance, the more you can relax on the day. And the earlier you start saving, the easier you should find it to meet the costs.

Planning for a wedding can be a major undertaking and involve the whole family. Decisions need to be made on everything from the location and guest list to the choice of jewellery and honeymoon destination.

Weddings are an expensive business and having to fund one from an annual income is unrealistic, even for very high earners. In 2013 the wedding of the niece of steel tycoon Lakshmi Mittal cost an alleged USD 85 million (INR 547 Crore)2 While both families have a significant role to play, the most vital part of the of the wedding process should be done years in advance.

Start planning for your children’s weddings at birth and you can spread the cost over a number of years, benefiting from any growth in the market during that period.

Planning for the perfect wedding

The Economic Times recently reported that the average non‑resident Indian wedding in India costs 50 lakh rupees1 – over USD 76,000 at today’s exchange rate.

1 http://economictimes.indiatimes.com/industry/et‑cetera/nri‑weddings‑give‑tourism‑industry‑a‑reason‑to‑celebrate/articleshow/374445.cms2 http://timesofindia.indiatimes.com/nri/other‑news/Another‑big‑fat‑Mittal‑wedding‑in‑Europe/articleshow/27439645.cms

2 Friends Provident International Funding a wedding

The cost of delay Let’s assume that your child has just been born and the family wedding you have planned would cost USD 100,000 (INR 65 .37 lakh). Assuming inflation at 3% per year, this figure would rise to USD 180,611 (INR 1.18 crore) by the time he or she is 20.

In order to pay for your child’s wedding, you would either need to invest a lump sum of USD 68,070 (INR 44.4 lakh) today, or save USD 5,202 (INR 3.4 lakh) every year, from now until the wedding day, assuming you pay annually, in advance, and invest in funds which achieve 5% annual growth (after fund and product charges).

If you were to delay starting to save until your child is five years old, you would need to invest substantially more to  fund the wedding.

Starting aged five, you would need to invest a lump sum of USD 86,877 (INR 56.7 lakh) to pay for the wedding – an increase of USD 18,807 (INR 12.2 lakh)

Alternatively, you’d need to pay USD 7,971 (INR 5.2 lakh) every year – or an extra USD 2,769 (INR 1.8 lakh).

The earlier you start saving for your children’s weddings, the simpler and more manageable your financial planning should be.

Please remember that investment involves risk. Fund prices may go up and down and you could get back less than you paid in.

Whether you have a lump sum to invest now or you are planning to save regularly over the medium to long term, our financial planning solutions could help you meet the costs associated with a memorable family wedding.

If you have a lump sum to invest, you could consider investing in one of our single premium bonds. By setting funds aside early and investing them wisely, you could generate a substantial sum towards the cost of a wedding. These bonds are flexible and allow you to top up, with additional payments in the future.

Or, you may decide to allocate a set amount on a regular basis, through one of our regular savings plans. You can pay on a monthly, quarterly, half‑yearly or annual basis and have the flexibility to make one‑off lump sum payments, for example, if you receive a bonus.

Combining a lump sum investment or regular savings plan with a separate life insurance plan could give you and your family additional financial security and peace of mind.

If you start saving now, you could give your children – or even your grandchildren – a truly memorable start to their married life, and save yourself a significant sum in the process.

Securing your children’s future weddingYou might also want to consider safeguarding your child’s wedding should anything happen to you and you become unable to meet your financial obligations. Taking out a life insurance policy should enable your child to continue with his or her wedding as planned even if you are not able to be there in person to share it with them.

For example, you could ensure that the USD 180,611 (INR 1.18 crore) wedding fund would be covered in the event of your death and becomes available to your child. Life insurance with Total permanent disability cover for an insured sum of USD 180,611 (INR 1.18 crore), for 20 years term, would typically result in monthly premiums of just USD 23.46 (INR 1,533)3.

Assumed exchange rate is 1 US Dollar (USD) equals 65.37 Indian Rupee (INR).

3 Premiums are based on a level cover for a 30 year old Indian male expatriate , living in Dubai, 20 year term.

you can fund secure your child’s wedding by buying a life cover

If you start saving now, you could give your children – or even your grandchildren – a truly memorable start to their married life.

You can get life cover of USD 180,611 (INR 1.18 crore) for just USD 23.46 (INR 1,533) per month.

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www.fpinternational.com

Visit our website to learn more about our range of flexible savings, investment and protection plans.

Speak to your financial adviser to see how we could help you plan the perfect family wedding.

About Friends Provident InternationalFriends Provident International has over 35 years of international experience and is part of the Aviva group which has a heritage that dates back over 300 years.

All figures are rounded off to nearest zero.All currency conversions correct at time of print, October 2017.

This document is for information only. It does not constitute as investment advice or an offer to provide any product or service by Friends Provident International and other companies within the Aviva group.

Please seek professional advice, taking into account your personal circumstances, before making investment decisions. We can accept no liability for loss of any kind incurred as a result of reliance on the information or opinions provided in this document.

Friends Provident International Limited: Registered and Head Office: Royal Court, Castletown, Isle of Man, British Isles, IM9 1RA. Telephone: +44(0) 1624 821 212 | Fax: +44(0) 1624 824 405 | Website: www.fpinternational.com. Incorporated company limited by shares. Registered in the Isle of Man, number 11494. Authorised by the Isle of Man Financial Services Authority. Provider of life assurance and investment products. Authorised by the Insurance Authority of Hong Kong to conduct long‑term insurance business in Hong Kong.Registered in the United Arab Emirates as an insurance company (Registration No. 76). Registered with the Ministry of Economy as a foreign company (Registration No. 2013): Registration date 18 April 2007. Authorised by the United Arab Emirates Insurance Authority to conductlife assurance and funds accumulation operations. Registered in Singapore No. T06FC6835J. Licensed by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Friends Provident International is a registered trade mark of the Aviva group.