Canadian Underwriter

Does relationship insurance have potential?

July 23, 2015   by Sara Tatelman

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An average year of dating includes 12 fancy dates (think of a nice restaurant or theatre tickets), 36 casual dates (more like Netflix and takeout), two weekends away, apology flowers and more. All that sets you back nearly eight grand, RateSupermarket’s Cost of Love survey calculated in February. So if it doesn’t work out, you’re not only heartbroken but your wallet may be too thin to cover the endless pints of ice cream and alcohol necessary for post-breakup recovery.

Enter relationship insurance, which, at this point, is but a school project by a group of business students in India.

“After we watched many lose a lot of their wealth and earnings [after] their relationship [went] down the drain, we figured there must be a market for those who want to hedge their relationship bets,” the students at Narsee Monjee Institute of Management Studies in Mumbai explain in a PowerPoint presentation.

With relationship insurance, daters must keep receipts for all food, entertainment, travel, clothes and even lodging (each dater assigns a price for every night spent at their home). If the relationship ends and either party feels they wasted money on it, they can file a claim for financial compensation, though premiums for future relationships would increase.

Half the money spent on gifts for the insured’s ex, as well as either the first ten dates or all dates completed in the first month of the relationship would be refunded. Plus, all money spent “to negate post relationship trauma,” such as psychiatric help or even spa treatments up to approximately $400, would be reimbursed.

And if the relationship ends up at the altar? The insurer would cover 10 percent of the wedding costs.


This story was originally published by Canadian Insurance Top Broker.