Honeymoon costs could be covered with endowment policy cash

Publication date | 01/03/2010

Britons with loved ones who are set to get married may want to financially help out because of the climbing costs associated with weddings.

While the cost of the big day is expensive enough by itself, parents and grandparents may want to help out with providing a honeymoon for the newlyweds.

Indeed, a recent survey by Kuoni found that the most popular places for couples to go to after they have got married include Thailand, the Maldives, Sri Lanka, the USA and the Arab Emirates.

Such holidays may prove expensive once the long-haul flights, accommodation and spending money are factored in.

Chris Radford, chief executive officer of aap, the UK's biggest buyer of endowment policies, said some of its customers had decided to sell their underperforming endowment policies to help cover the cost of a wedding and honeymoon for their children or grandchildren.

Long-haul destinations popular with honeymooners

Commenting on the choice of newlyweds to travel further afield for culture on their honeymoon, Frances Tuke, spokesperson for ABTA – The Travel Association, said this time away is often a one-off opportunity.

Indeed, in order to make a wedding and honeymoon as special as possible, mums and dads and grandparents may want to give a helping hand when it comes to covering the cost.

She said destinations such as the Maldives allow people to do things they might not be able to do on more regular getaways.

As such, long-haul flights to luxury destinations could prove the ideal present for loved ones who have just got married and do not have the joint finances to fund their big day.

Talking about the Maldives in particular, Ms Tuke stated: "You just get the most amazing diving and spas and that particular service which you get in far eastern countries which is unrivalled."

selling your endowment could pay for a dream honeymoon

Mr Radford, from aap, said some of its customers had decided to sell their unwanted endowment policies in order to raise the money required to pay for a luxury honeymoon for loved ones, rather than dipping into savings which they would like to protect for future expenses.

He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.

Reasons to sell your endowment policy