Your IndustryApr 14 2016

Guide to over-50s life insurance

pfs-logo
cisi-logo
CPD
Approx.60min

    Guide to over-50s life insurance

      pfs-logo
      cisi-logo
      CPD
      Approx.60min
      Search supported by

      Introduction

      By Simoney Kyriakou
      twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon

      Demographics has played an important role in forcing the creation of a more vibrant market for protection among those aged 50 plus.

      Life expectancies have soared since 1985; back then the projected average life expectancy for a man in England and Wales was 71.7 years; now it is estimated to be 79.9 years, according to data from the Office for National Statistics.

      The same applies to women. In 1985, 77.4 years was the average estimated age of death for a woman.

      Now, it is 83.7 years and some studies have even predicted the first person to reach 150-years-old has already been born.

      With longer life comes better understanding of health and healthcare issues, at a personal level and in terms of medical and pharmaceutical research. People tend to be a lot healthier and active in their 50s, 60s and even 70s than they were half a century ago.

      While this has left actuaries and underwriters scratching their heads over mortality rates and what this might mean for pensions and life policies, it has also meant healthy, active 50-year-olds are demanding more choice and innovation when it comes to policies for their age group.

      It has also forced a change in how over-50s life cover has been structured and sold. Initially, it was seen as a way just to pay for funerals and give financial support to those left behind. Now, however, people are demanding more from this type of policy for their money.

      Moreover, a greater number of providers are allowing people aged 50 plus to take out regular plans, such as term assurance, meaning people are no longer restricted to age-specific life policies.

      This guide aims to outline what is over-50s life insurance, the historic problems with such policies, whether there is enough choice, the potential for innovation in the industry, and how advisers can start up an often delicate conversation about insurance with older clients.

      Supporting information supplied by: Graham Jones, core business director for SunLife; Daryn Ingrey, marketing projects manager for Canada Life; Dave Sutherland, managing director of Neilson Financial Services (for British Seniors Insurance Agency); Tom Conner, director at Drewberry Insurance; Andy Nicholls, protection and mortgage adviser at Beaufort Asset Management; Jennifer Gilchrist, head of proposition design at Royal London; Simon Cox, funeral cost expert for Royal London; and Neil McCarthy, sales and marketing director for Direct Life.

      simoney.kyriakou@ft.com

      In this guide

      Articles
      CPD Questions
      To reveal the CPD questions which accompany this guide, please sign in and read all of the articles below.