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Love means life insurance as well as loans

Date: Tue, 14 Feb 2006

Love may not only encourage greater borrowing but it could also convince people to take out life insurance cover.

Sainsbury's Bank estimated that around 2.46 million loans are taking out for romantic reasons with one million people planning to take a loan out in the next 12 months to pay for a surprise gift for a partner, whilst 503,000 will use a loan to cover the cost of a family wedding and 431,000 plan to use one to fund their own wedding.

It is estimated that the average amount for such romantic loans will be around £2,845.

Steven Baillie, loans manager, Sainsbury’s Bank said: "Unfortunately romantic gestures and occasions, such as weddings and anniversaries, can come with a sizeable price tag.

He added: "We would urge those looking for a loan to shop around for a competitive rate to avoid paying hundreds or thousands of pounds in unnecessarily high interest payments."

Borrowers are also being encouraged to make sure they have adequate life insurance to help protect their loved ones if the worst should happen.


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