16% of over-50s who do not have a guaranteed acceptance whole-of-life plan express interest in getting a policy, while an even greater proportion are keen to learn more about the…
UK
Insurance
simple
UK Over-50s Guaranteed Acceptance Life Insurance Market Report 2026
"Raise the profile of wellbeing benefits to convert interest from under-65s and expand the market."
Sarah Hitchcock, Associate Consultant – Financial Services
16% of over-50s who do not have a guaranteed acceptance whole-of-life plan express interest in getting a policy, while an even greater proportion are keen to learn more about the product. This equates to a larger number of people than currently have the product. Yet despite this level of interest, sales have fallen in both of the past two years.
The decline reflects weaker demand as a result of cost-of-living pressures, along with a contraction in supply, which has reduced competition. It also reflects uncertainty caused by the FCA’s investigation into the protection market. The latter is likely to have suppressed appetite for innovation, with providers generally adopting a cautious wait-and-see approach.
The delayed publication of the interim report in January 2026, therefore, will have come as a relief. With the threat of regulatory intervention largely gone, providers now have more certainty. Notwithstanding economic challenges and pricing pressures, providers also have more to feel positive about. There are good prospects to grow sales and expand the market, once inflationary pressures ease and as new digital developments increase marketing and distribution opportunities.
This Report Looks at the Following Areas:
Recent market performance, and outlook over the next five years.
Key provider market share and analysis of the competitive environment.
Level of product penetration among the target age group, number of policies held and interest in buying additional policies.
Level of product awareness and interest among non-policyholders.
Policyholder attitudes to their cover, including how they feel about making ongoing payments.
Main factors influencing choice of provider.
Intentions to buy a policy and willingness to answer a small number of medical questions.
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EXECUTIVE SUMMARY
What you need to know
Outlook for the over-50s life insurance market
Opportunities
Potential to triple the size of the market
Graph 1: actual and potential size of the over-50s life insurance market, % of over-50s, 2025
Maximise cross-selling opportunities
Most prospective buyers are willing to answer a few simple medical questions
THE MARKET
Snapshot – market size and forecast
Consumers aged 50+ and the economic outlook
Less attractive saving environment will benefit the over-50s insurance market
An ageing population increases the pool of prospective customers
Graph 2: projected size of the total population, by age group, 2026-56
Funeral plans are winning in the competition stakes
Reduced supply and lower adspend impact sales
Graph 3: volume of new guaranteed acceptance whole-of-life insurance contracts – ABI participants only versus total market, 2019-25
Rising costs push up average premiums
Value of new business sees a modest decrease as new customers pay more cover
Graph 4: value of new guaranteed acceptance whole-of-life business (ABI participants only), 2019-25
Most leading providers are experiencing a decline or stagnation in sales
Graph 5: guaranteed accepance whole-of-life insurance sales, by six largest providers, 2023-24
Proposed merger of two mutuals will create a larger, stronger competitor
Opportunity to grow advised sales
Graph 6: proportional distribution of new volume sales of guaranteed acceptance plans, by channel (ABI participants only), 2023-25
Volume sales should slowly recover from 2027
Graph 7: volume of new guaranteed acceptance whole-of-life insurance contracts, 2020-30
FCA decides not to pursue “interventionist remedies”
THE CONSUMER
How to grow product ownership
The take-up rate has stayed the same over the past five years
Scope to increase ownership among under-65s
It’s rare for people to take out both an over-50s life insurance policy and a funeral plan
Multiple-plan ownership is common, but much of this business is lost to competitors
Graph 8: number of over-50s life insurance policies held, % of policyholders, 2025
Grow repeat business with special rewards, and consider raising cover limits
Support policyholders to spread the word
High level of customer satisfaction
Alleviate payment worries by stressing support and protecting payouts
Encourage customers to tell beneficiaries about their cover
Reach out to non-policyholders
Significant latent demand
Reach under 65s who are already open to the product
Highlight wellbeing support to illustrate value
Advice channel offers growth potential
Most prospective buyers intend to use a comparison website
Scope to improve aggregator coverage
Price and personalisation drive differentiation
Being price-competitive and easy-to-understand makes a provider stand out
Getting the price right is even more important in today’s high cost-of-living environment
The product’s main selling point is its inclusivity
Introducing optional health questions enables providers to offer better terms
Most potential customers would be willing to answer a few medical questions
PRODUCT, INNOVATION AND MARKETING
Product development on pause while providers wait for outcome of review
Providers have past experience of adapting the product to suit changing customer needs and requirements
Medical questions offer greater personalisation
Providers are steadily shifting adspend towards digital and social media
Graph 9: advertising expenditure on over-50s life insurance products, 2021-25
Four out of the top five advertisers cutback on advertising in 2025
APPENDIX
Report scope and market definition
A note on product terms used
The market
Market size: underlying data (ABI only)
Forecast methodology
Forecast methodology – fan chart
Market size and forecast: underlying data
Market forecast and prediction intervals
The consumer
Consumer research questions
Consumer research methodology
Other data sources
Nielsen Ad Intel coverage
Advertising expenditure: top eight advertisers
Abbreviations
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