Planning Your Child’s Wedding? The Real Cost Of Indian Marriage And How to Plan For It -

Last Updated:June 11, 2025, 15:18 IST

Sujeet Kothare of Tata AIA stresses financial planning for Indian weddings, which can cost up to INR 1 crore. He advises goal-based savings and life insurance to avoid stress.

Authored by Sujeet Kothare Executive Vice President, Tata AIA: An Indian wedding is not just an event; it’s an emotional and cultural milestone—a time when families unite, traditions come alive, and memories are created for a lifetime. But while weddings symbolize love and happiness, they often come with an unspoken burden: financial stress.

With over 80 lakh weddings celebrated in 2024, amounting to an astounding INR 10.7 lakh crore, India is the world’s second-largest wedding market, according to a Jefferies report. The rising cost of weddings has made financial planning more important than ever.

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The Cost of Grand Celebrations: A Reality Check

Scenario 1: The Unplanned Expenses Dilemma

Amit and Meera had set aside INR 20 lakh for their son’s wedding, thinking it would be more than enough. However, as the planning unfolded, they realized the actual costs were spiralling—venue rates had increased, additional guests had to be accommodated and other expenses which was not accounted for earlier.

The absence of a detailed budget and failure to factor in potential price increases led to them taking a loan, stretching their finances for years after the wedding. Had they planned strategically, they could have avoided this financial strain.

Scenario 2: Smart Planning Pays Off

On the other hand, Neha’s parents started planning for her wedding when she was just 10 years old. They invested a fixed amount monthly in a goal-based savings plan. Twenty years later, they had a well-prepared wedding fund, allowing them to give their daughter a dream wedding without compromising their financial stability.

Which scenario would you prefer for your child?

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Why Financial Planning is Essential for Weddings

For most Indian families, a wedding is not just a social event—it’s a lifelong dream. However, with wedding costs increasing by 7% annually (as per WedMeGood), the average wedding budget in 2024 stands at INR 36.5 lakh, with luxury weddings exceeding INR 1 crore. Without proper financial planning, these escalating wedding expenses can compromise other significant life goals.

A wedding may coincide with other major milestones, such as:

• Buying a home

• Funding higher education for children

• Building retirement savings

• Starting or growing a business

• Taking care of medical or emergency needs

Without a structured financial plan, these goals can be sidelined, causing long-term stress and a strain on your finances. Goal-based savings allow you to prioritize and allocate resources for each of these objectives, ensuring that your child’s wedding is grand yet does not come at the expense of your other life goals. By planning ahead, you can enjoy a fulfilling and financially secure future while also making the wedding of your dreams a reality.

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The Advantage of Life Insurance for Wedding Planning

Traditionally, families relied on gold savings or fixed deposits for wedding funds. However, modern financial tools, such as goal-based life insurance policies, offer greater benefits:

• Disciplined Savings: Helps build a wedding corpus over time

• Inflation-Proof Growth: Ensures your savings grow along with rising costs

• Financial Security: Provides a safety net in case of unforeseen circumstances

Additionally, beyond these advantages, some life insurance policies provide not only a way to save for the wedding but also the peace of mind that your loved ones will be financially supported in case of any unfortunate events, with important benefits like:

• Exclusive Protection under the MWPA: If you have an ongoing home loan or business debt, creditors may try to claim the policy proceeds. However, by purchasing a policy under the Married Women’s Property Act (MWPA) of 1874, you can ensure that the benefits are directed to your wife and children, preventing creditors from making claims. This feature makes life insurance a powerful tool for long-term wedding savings.

• Cover Continuance Benefit: Life insurance policies generally end upon the policyholder’s death, meaning the benefits cease. However, the Benefit Protection Rider allows your policy’s benefits to continue in the event of death, terminal illness, or permanent disability. Some insurers even offer in-built cover continuance benefits, ensuring that your financial goals remain achievable even in your absence.

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How Goal-Based Financial Planning Works

By starting early, parents can systematically build a wedding fund without last-minute borrowing. Let’s break it down:

• Current average wedding cost: INR 36.5 lakh

• Projected cost in 20 years (assuming 6% inflation): INR 1.17 crore

• Monthly savings required (assuming 8% return): INR 45,000

• Final corpus in 20 years: INR 117,13,871

Imagine This:

You have a ready fund, giving you complete control over your child’s big day. No financial stress, no compromises—just a beautiful celebration.

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Who Should Consider Goal-Based Financial Planning?

• Young Parents: Start early to build a substantial wedding fund over time.

• Newlywed Couples: Secure your future together without last-minute financial stress.

• Individuals in Their 30s: A structured savings plan helps prevent financial burdens later in life.

Planning today ensures that when the big day arrives, it’s filled with joy—not financial worries.

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Final Thought: Make the Right Choice Today!

A wedding is a cherished milestone, and it should be about love, laughter, and traditions—not financial pressure. By taking small steps today, you can ensure a grand, stress-free celebration tomorrow.