The consumer expert explained on his BBC podcast how packaged bank accounts could save older people hundreds of pounds on travel insurance
Martin Lewis has highlighted a popular bank account that could be ideal for pensioners and other elderly individuals. During a recent instalment of his BBC podcast, the consumer champion tackled a wide range of topics.
Subjects covered included selecting the most suitable current account for your needs, plus how the switching procedure operates. Mr Lewis urged listeners to compare accounts to determine whether there’s one available that better suits their circumstances.
He outlined that some individuals would benefit from switching to what he terms a “packaged bank account”. These accounts mean holders receive insurance policies as well, such as travel insurance packages or breakdown cover.
They usually come with a monthly charge, but it could be worthwhile paying. The consumer expert said these bank accounts are worth exploring as you might save “hundreds of pounds” compared to buying an insurance policy separately.
One caller phoned in to ask which bank account would best suit their situation, as a young family with two children. They were seeking worldwide coverage for the whole family, reports the Mirror.
In response, Mr Lewis initially enquired which family member was the oldest, with the caller revealing the eldest was 34. He explained the reasoning behind his question: “Some have age limits. Some are 69, some are 79.”
These age restrictions vary considerably. Barclays’ Travel Plus Pack offers coverage for you and your partner until age 79 whilst Halifax Ultimate Reward extends to 71.
‘Very popular’.
Examining some of the finest offers available, Mr Lewis highlighted Nationwide FlexPlus, featuring its Worldwide Family Travel Insurance via Aviva. He described this as a “very popular one, very good travel insurance for older people”.
He also noted that customers can effectively get “nine months free” when switching to this account. This operates because whilst the regular monthly fee is £18, Nationwide is currently providing a £175 bonus payment to anyone transferring from a non-Nationwide provider.
The switching reward applies when moving to either a FlexDirect, FlexAccount or FlexPlus account. Mr Lewis detailed the perks included with the account: “Worldwide family travel insurance, no age limit although pre-existing conditions have to be discussed, includes winter sports.
“UK and European breakdown cover for account holders, including home assistance and onward travel, all the handsets in the household and mobile phones are covered.”
You do not have an automatic right.
Also regarding insurance offers for older people, another podcast listener contacted them with an enquiry. They’d maintained travel insurance through their bank account for several years.
They stated they were nearly 72 and their policy was meant to cover them up to the age of 80, yet their provider had informed them that it would not be renewed this year. Mr Lewis said that unfortunately, the provider has the authority to terminate your cover in this way.
He clarified: “You do not have an automatic right. If they’re cancelling it, they shouldn’t be charging you through the packaged bank account because you’re not getting the fee.
“I would be asking them is it possible to pay for a premium, and I would be looking to go elsewhere, but I’m afraid you don’t have an automatic right to insurance. As long as they are cancelling it in advance and not retrospectively.”
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