Targeting the Over-50s with Life Insurance

Table of Contents

Executive Summary
1.1. Diversity within the over-50s needs to be acknowledged
1.2. Key findings
1.3. Critical success factors

2 The Over-50s Segment In The UK
2.1. Introduction
2.2. The UK's over-50s population is a growing opportunity
2.2.1. The over-50s form an increasing share of the UK adult population
2.2.2. The over-50s segment will continue to grow towards 2025
2.2.3. Adults are living longer and are in better health
2.2.4. Over-50s make up two thirds of the disabled population in the UK
2.2.5. The over-50s market is skewed towards women due to their longer life expectancy
2.2.6. Most over-50s are married, but there is a shift towards becoming widowed with age
2.2.7. One in five adults aged over 45 lives alone
2.2.8. Over-50s may still have dependents as a result of having children later
2.2.9. The majority of over-50s have adult children aged over 19
2.2.10. Almost 70% of UK household wealth is held by over-50s
2.2.11. Most over-65s are economically inactive, whereas 50-64s are still in employment
2.2.12. Outright home ownership increases with age as mortgages are paid off over time
2.3. Lifestyles
2.3.1. The diversity within the over-50s market needs to be acknowledged
2.3.2. The lifestyle of an individual is a combined outcome of three factors
2.3.3. Sizing life stage segments within the over-50s population
2.3.4. Societal changes mean the ages life stages are associated with are shifting

3 Targeting Over-50s With Life Insurance
3.1. The key to successful targeting is to understand the customer
3.1.1. There are three elements that need to be aligned to target a consumer group
3.1.2. Individuals over-50 with dependent children still identify with the mass market
3.1.3. A subtle marketing approach is needed for individuals with adult children at home
3.1.4. Early retirees are more focused on retirement and inheritance planning
3.1.5. Late retirees begin to identify with being labeled as over-50s customers
3.1.6. Declining health should not dominate the identity of an individual
3.2. Marketing needs to move away from age towards life stage
3.2.1. Individuals take out life insurance policies when there is a lifestyle trigger
3.2.2. Life insurers need to increase product penetration to gain customers
3.2.3. Providers need to develop more flexible products
3.2.4. Retirees are just as in need of life insurance as an individual with a family
3.2.5. The life insurance needs of customers change over time
3.2.6. Moving away from the over-50s label
3.2.7. Marketing strategies should represent older customers positively
3.2.8. Older customers should be a focus for advertising
3.2.9. Wearables and technology

4 A Range Of Insurance Providers Target Over-50s
4.1. Life is the most visible "over-50s" product in insurance
4.1.1. There are many approaches insurance providers take to target the over-50s market
4.1.2. Legal and General's over-50s life insurance policy is highly focused on end of life
4.1.3. Aviva keeps its over-50s life insurance product description customer neutral
4.1.4. Scottish Widows Protect allows customers to adapt their policy as their needs change
4.1.5. LV= is advertising its 50 Plus Plan through a TV campaign in 2017
4.1.6. Saga exclusively targets customers aged over 50 across its whole portfolio
4.1.7. The transition to over-50s products does not happen overnight
4.1.8. Aviva and Legal and General are the leading providers of whole of life policies
4.1.9. Legal and General and Aviva top the market for term assurance cover
4.1.10. Aviva and Legal and General are also the favored providers for income protection
4.1.11. Conclusion

5 Appendix
5.1. Definitions
5.1.1. Banks/building societies
5.1.2. Brokers
5.1.3. Direct
5.2. Methodology
5.2.1. Primary and secondary research
5.2.2. GlobalData's 2016 UK General Insurance Consumer Survey
5.2.3. GlobalData's 2016 UK Life Insurance Consumer Survey
5.3. Bibliography
5.4. Further reading