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UK Over-50s Guaranteed Acceptance Life Insurance Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Over-50s Guaranteed Acceptance Life Insurance market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

This report examines the over-50s guaranteed acceptance life insurance market including the market size, factors impacting the market, competitive strategies of the key players and the attitudes of consumers.

Mintel’s exclusive consumer research measures ownership of life insurance among the over-50s age group and explores attitudes towards guaranteed acceptance policies. The Report also explores the appeal of various welcome gifts, exposure to advertising channels, sources of information used for research and attitudes towards over-50s life insurance policies.

Expert analysis from a specialist in the field

Written by Thomas Slide, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The market for over-50s guaranteed acceptance life insurance experienced a surge in new premiums during 2018 as insurers doubled down on advertising spend in the first half of the year. But the uplift is expected to be temporary as the sector faces up to both the opportunities and challenges of addressing a growing but increasingly diverse and changing over-50s demographic Thomas Slide
Senior Financial Services Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • A surge in new premiums in 2018
              • Figure 1: Value of new over-50s guaranteed acceptance life insurance premiums, 2014-19
            • Non-advised policies dominate
              • A growing age group but with fewer assets and less financial stability
                • Companies and brands
                  • SunLife dominates the market
                    • Figure 2: Market share of total whole-of-life insurance premiums, 2018
                  • Advertising expenditure falls 2.2%
                    • Figure 3: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
                  • The consumer
                    • Cover peaks among 65-74 year olds
                      • Figure 4: Life insurance product ownership, April 2019
                    • Three quarters rule out taking out cover
                      • Figure 5: Consideration of over-50s life cover, April 2019
                    • Two thirds don’t see the need
                      • Figure 6: Reasons for not considering over-50s life cover, April 2019
                    • TV is the most likely source of exposure to advertising
                      • Figure 7: Exposure to advertising, April 2019
                    • M&S gift cards are most appealing welcome gift
                      • Figure 8: Appeal of welcome gifts, April 2019
                    • Friends and family are the most important source of information
                      • Figure 9: Sources of information for over-50s life insurance, April 2019
                    • A desire for simplicity increases with age
                      • Figure 10: Attitudes towards over-50s life insurance, April 2019
                    • What we think
                    • Issues and Insights

                      • Gen-Xers will change the over-50s market
                        • The facts
                          • The implications
                            • Falling home ownership could present a growth opportunity
                              • The facts
                                • The implications
                                • The Market – What You Need to Know

                                  • A surge in new premiums in 2018
                                    • Non-advised policies dominate
                                      • A growing age group but with fewer assets and less financial stability
                                        • FCA and CMA step in on the cost of dying
                                        • Market Size

                                          • A surge in new premiums in 2018
                                            • 2019 starts well but new premiums are expected to slow
                                              • Figure 11: Value and volume of new over-50s guaranteed acceptance life insurance premiums, 2014-19
                                          • Channels to Market

                                            • Non-advised policies dominate
                                              • Figure 12: Channels to market, by value of new premiums, 2014-18
                                          • Market Drivers

                                            • UK population continues to age
                                              • Figure 13: Trends in the age structure of the UK population, 2013-23
                                            • Growth in life expectancy grinds to a halt
                                              • Figure 14: Change in life expectancy at age 50, by gender, 1995/97-2015/17
                                            • Falling home ownership among 55-64 year olds
                                              • Figure 15: Housing tenure of 55-64 year olds, 2006/07-2017/18
                                            • 55-64 year olds most likely to be struggling financially
                                              • Figure 16: How respondents would describe their financial situation, by age, February 2019
                                            • More over-50s in employment
                                              • Figure 17: Proportion of those aged 50+ in employment, by quarter, 2009-19
                                            • An increasingly digitally savvy age group
                                              • Figure 18: Accessed the internet in the last 3 months, by age, 2011-18
                                          • Regulatory and Legislative Changes

                                            • FCA warns over misleading adverts
                                              • GDPR has implications for how cover is advertised
                                                • CMA investigates the cost of dying
                                                  • Government proposes FCA regulation of prepaid funeral plans
                                                  • Companies and Brands – What You Need to Know

                                                    • SunLife dominates the market
                                                      • Fairer payouts to overcome negativity
                                                        • Advertising expenditure falls 2.2%
                                                        • Market Shares

                                                            • Consolidation in the market
                                                              • SunLife continues to dominate the market
                                                                • AIG enters the top five
                                                                  • Figure 19: Top five product providers, measured by value of new whole-of-life insurance premiums, 2018
                                                              • Competitive Strategies

                                                                • Offering fairer payouts
                                                                  • Funeral benefits require clarity
                                                                    • Figure 20: SunLife Guaranteed funeral plan options, June 2019
                                                                  • Welcome gifts remain popular
                                                                    • Figure 21: ‘Welcome gifts’ of selected over-50s life insurance providers, June 2019
                                                                  • Encouraging people to talk
                                                                    • Flexible premiums to protect against uncertainty
                                                                      • Adding more to a policy
                                                                      • Advertising and Marketing Activity

                                                                        • Advertising expenditure falls 2.2%
                                                                          • Figure 22: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, 2014/15-2018/19
                                                                        • Adspend slumps in the second half of 2018
                                                                          • Figure 23: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, quarterly change on previous year, Q1 2016-Q1 2019
                                                                        • SunLife is the biggest spender on above-the-line advertising
                                                                          • Figure 24: 10 biggest spenders on above-the-line, online display and direct mail advertising expenditure on over-50s life cover, year to 1 March 2019
                                                                        • TV overtakes direct mail as the leading advertising channel
                                                                          • Figure 25: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type, 2014/15-2018/19
                                                                        • Channel strategy differs by advertiser
                                                                          • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on over-50s life cover, by media type and leading advertiser, year to 1 March 2019
                                                                        • Nielsen Ad Intel coverage
                                                                        • The Consumer – What You Need to Know

                                                                          • Cover peaks among 65-74 year olds
                                                                            • Three quarters rule out taking out cover
                                                                              • Two thirds don’t see the need
                                                                                • TV is the most likely source of exposure to advertising
                                                                                  • M&S gift cards are most appealing
                                                                                    • Friends and family are the most important source of information
                                                                                      • A desire for simplicity increases with age
                                                                                      • Life Insurance Ownership

                                                                                        • 45% of over-50s have life insurance
                                                                                          • Figure 27: Life insurance product ownership, April 2019
                                                                                        • Many under-65s have alternative life insurance in place
                                                                                          • Cover peaks among 65-74 year olds
                                                                                            • Over-75s most likely to have a funeral plan
                                                                                              • Figure 28: Life insurance product ownership, by age and gender, April 2019
                                                                                            • Renters are most likely to hold over-50s life cover
                                                                                              • Figure 29: Life insurance product ownership, by housing tenure, April 2019
                                                                                          • Consideration of Over-50s Life Insurance

                                                                                            • Few would consider a plan
                                                                                                • Figure 30: Consideration of over-50s life cover, April 2019
                                                                                              • Those in their 50s are most likely to consider a policy
                                                                                                • Figure 31: Consideration of over-50s life cover, by age, April 2019
                                                                                              • Consideration peaks among those with fewer assets
                                                                                                • Figure 32: Consideration of over-50s life cover, by housing tenure, April 2019
                                                                                            • Reasons for Not Considering Cover

                                                                                              • Two thirds don’t need cover
                                                                                                • Figure 33: Reasons for not considering over-50s life cover, April 2019
                                                                                              • Poor reputation and lack of understanding hamper appeal
                                                                                                • Figure 34: Reasons for not considering over-50s life cover, by socio-economic group, April 2019
                                                                                            • Exposure to Advertising

                                                                                              • TV the most likely source of exposure
                                                                                                • Figure 35: Exposure to advertising, April 2019
                                                                                              • Newspapers and direct mail appeal to older consumers
                                                                                                • Figure 36: Exposure to advertising, by age, April 2019
                                                                                              • Those who would consider cover are more open to advertising
                                                                                                • Figure 37: Exposure to advertising, by consideration of over-50s life cover, April 2019
                                                                                            • Appeal of Welcome Gifts

                                                                                              • M&S gift cards hold the greatest appeal
                                                                                                • Opportunity to move beyond one-off gifts
                                                                                                  • Figure 38: Appeal of welcome gifts, April 2019
                                                                                                • M&S gift cards are a good way to appeal to women
                                                                                                  • Figure 39: Appeal of welcome gifts, by gender, April 2019
                                                                                                • Amazon vouchers appeal to those closer to 50
                                                                                                  • Figure 40: Appeal of welcome gifts, by age and affluence, April 2019
                                                                                                • Amazon gift cards hold most appeal to those considering cover
                                                                                                  • Figure 41: Appeal of welcome gifts, by ownership and consideration of over-50s insurance, April 2019
                                                                                              • Sources of Information

                                                                                                • Family and friends the most likely source of information
                                                                                                  • Advisers are growing in popularity
                                                                                                    • Websites an important source
                                                                                                      • Figure 42: Sources of information for over-50s life insurance, April 2019
                                                                                                  • Attitudes towards Over-50s Life Insurance

                                                                                                    • Almost half have confidence in their own abilities
                                                                                                      • Figure 43: Attitudes towards over-50s life insurance, April 2019
                                                                                                    • Worries peak as people approach retirement age…
                                                                                                      • Figure 44: Attitudes towards over-50s life insurance, by age, April 2019
                                                                                                    • …but not everyone over 50 can be treated the same
                                                                                                      • Figure 45: Attitudes towards over-50s life insurance, by age, April 2019
                                                                                                    • Women are less keen to think about their funeral
                                                                                                      • Figure 46: Attitudes towards over-50s life insurance, by gender and age, April 2019
                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                      • Abbreviations
                                                                                                        • Consumer research methodology
                                                                                                          • Definitions
                                                                                                            • Restricted advice
                                                                                                              • Independent advise
                                                                                                                • Non-advised