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Life insurance could cover overdrafts

Date: Tue, 09 May 2006

Many older people are regularly becoming overdrawn as they continue to increase their total debts.

New figures suggest that around 4.4 million of Britain's over 50s are using their banks' overdraft facility to cover day-to-day living. However, budgeting for life insurance cover could mean a securer financial future for relatives if the worst was to happen.

The study from price comparison website uSwitch.com discovered that 850,000 older people are permanently overdrawn, with 50 per cent unaware exactly how much the facility is costing them. Research suggests that over 50s are paying out around £330 million per year in interest plus additional charges if they go overdrawn without authorisation.

"At a time when the only interest rates the nation's elderly should be worrying about are those on their savings accounts, too many are finding out how expensive it is to borrow on an overdraft — or worse still, to go overdrawn without authorisation," explained Nick White from uSwitch.com.

Consumers are encouraged to try to reduce any unnecessary banking charges – which can cost around £70 a time – and put the money towards a valuable life insurance policy.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.