The over-50s guaranteed acceptance life insurance market in the UK is set to gradually recover, with sales anticipated to increase from 2026 as economic conditions improve. The biggest growth drivers in this industry include the expanding over-50s demographic, heightened interest in health and wellbeing benefits, and opportunities for cross-selling to term insurance customers approaching the end of their policy terms.
78% of UK over-50s have concerns about guaranteed acceptance whole-of-life insurance. On the other hand, 62% can see advantages to having cover, meaning there is considerable overlap between these two groups. Moreover, 21% of non-policyholders are interested in getting over-50s life insurance in the future, while 21% of existing policyholders are open to taking out another plan.
To convert this interest into actual sales, providers must review their terms and conditions to ensure their policies are good value for all customers. This is even more important in light of the impending review by the Finance Conduct Authority (FCA). The regulator is keen to explore whether products provide fair value, especially for vulnerable consumers.
Although the review poses risks for the market, it also presents an opportunity for providers to demonstrate where they add value, for example, through the provision of health and wellbeing benefits. There is also scope to make product terms more attractive and, arguably, fairer. This will also alleviate key consumer concerns and make the proposition more appealing. For example, proportionate payouts for those who need to stop paying premiums earlier than agreed and the flexibility to reduce payments are both very appealing features to many over-50s.
This Report examines the UK market for over-50s life insurance, a specific type of whole-of-life insurance, also referred to as guaranteed acceptance whole-of-life insurance.
Typically aimed at people aged between 50 and 80, policies are designed to pay out a fixed tax-free cash sum on death, normally after a qualifying period (eg 12-24 months) except in cases of accidental death (when cover applies immediately). Cover is offered on a guaranteed acceptance basis, meaning no medical or health information is required. Policies can only be taken out on a single-life basis and customers can normally take out more than one policy with the same provider, up to a maximum overall sum insured (eg £20,000). They can also take out policies with different providers.
A policy typically costs between £5 and £75 a month. Monthly premiums are usually fixed and determined at the outset based on a person’s age, smoking status and amount of cover/payout required. Historically, customers have been required to pay premiums their entire life. However, most providers now stop charging premiums to customers who reach a certain age (eg 85 or 90). Most providers will also not pay out anything if a customer stops making payments during their lifetime/before the cut-off date – hence, the product requires a long-term financial commitment from customers.
Providers must maintain popular health and wellbeing benefits, alongside reviewing policy terms to ensure fairness and value for all customers.
Sarah Hitchcock
Associate Consultant – Financial Services
Mintel is the world’s leading market intelligence agency. We show you how consumers think today and tomorrow. As a trusted partner to industry leaders, we deliver game-changing insights to businesses across the globe, fuelling their marketing and innovation strategies that will shape the future.
Access high-quality market research with every purchase of Mintel’s consumer reports. Here’s what else is included in your report purchase:
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out more£ 5,000 – £ 21,600
Mintel’s 2024-25 Global Outlook on Sustainability: A Consumer Study is designed to help you understand what brands and companies should prioritise in order to educate consumers and ensure...
Find out more£ 500
An analysis of consumer behaviour in income protection, including ownership, key target groups, evolving needs and motivations, and opportunities and threats. Stefania Apostol, Senior Financial Services Analyst ...
Find out more£ 2,195
Travel insurance demand stabilises post-lockdown Travel insurance continues to expand, but with the post-lockdown surge in travel having slowed, so has growth in premiums. Cover for overseas holidays has...
Find out more£ 2,195
The health insurance market is relatively shielded from macroeconomic challenges, such as the cost of living crisis, with higher-income consumers accounting for a majority of total ownership. However,...
Find out more£ 2,195
Term assurance is one of the largest sectors in the protection industry, by value and number of policyholders. It is also a mature market that is experiencing minimal...
Find out more£ 2,195
Pet insurance remains resilient despite rising premiums Rising veterinary costs, along with broader inflationary trends, have forced insurers to increase premiums. Despite this, and the wider effects of the...
Find out more
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.
It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.
We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
We utilize Mintel Reports, Trends and Comperemedia to mine for insights across the numerous business verticals that Epsilon serves, such as CPG, automotive, telecom, healthcare/pharma, retail and financial services.
By integrating Mintel insight into new business opportunities, we have been able to gain the competitive edge necessary to advance partnerships with global brands and key business players.
For our organization, it’s about depth and breadth. Having one without the other doesn’t enable success in our business.
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out more
