Are you overpaying for your travel insurance? A packaged bank account could be the answer.
For older holidaymakers the cost of annual travel insurance is often more than £100.
Insurers, believing older holidaymakers are more likely to fall ill or have accidents abroad, either hike the cost of travel insurance or don’t offer it at all.
So, for older travellers, could the answer to cheaper travel insurance be in a packaged bank account?
Packaged up and ready to go
In 2013, the Financial Conduct Authority outlined new rules to curb mis-selling of packaged accounts – but that doesn’t mean the travel cover offered in these packages isn’t a good deal.
It certainly stands up on cost. My 70-year-old grandparents, Whitfield and Winnifred, when booking their holidays for 2016, expect to pay £378 for annual worldwide policy through a travel insurer. The equivalent for a packaged bank account is just £183.
Even their 65-year-old friends, Ethel and Jim, planning a holiday to Europe in the summer and a trip to South America in the winter, could save by opting for a packaged account.
If Ethel and Jim bought direct from an insurer it would cost them £236.42. Or pick up a packaged account for the same £183 average fee, and make use of a whole host of other benefits including car breakdown and mobile phone cover.
Keeping it separate
Standalone travel insurance can still work out to be great value.
My 50-year-old aunt and uncle, Alford and Hazel, would pay £183 for a packaged account on average but, only £143 through a standalone traditional insurance policy.
Their friends, Oleg and Tina, who are 60, could also pick up a cheaper policy using the traditional route at £174.
Things to consider
So, it’s worth weighing up your options and considering what’s right for you.
It’s good to see that there are alternatives out there for older travellers. Would you consider buying a packaged bank account for the travel insurance cover?
If you’re thinking about a packaged account then make sure you:
- Read the terms and conditions, do you meet the minimum monthly funding?
- Consider the additional products on offer, do you need them or do you have them elsewhere?
- Read the insurance policy documents – are you within the age limits for the travel cover?
- Keep your bank updated. If your circumstances change, make sure you notify your bank to see how it could impact your travel cover.