- New research shows that the main trigger (40%) for buying life insurance after 50 is concern over covering funeral costs
- 45% want a small and intimate funeral, with three out of four people considering these ceremonies more personal
- When it comes to what’s important to customers, affordability (51%) is the most important thing to consider when choosing which life insurance policy to buy
The main triggers for buying life insurance are wanting to ensure family members don’t have to cover funeral costs (40%), that they are approaching later life (30%) and feeling the need to protect family (28%).
That’s according to Over 50s protection provider OneFamily, who also found that 22% of over 50s are considering buying life insurance cover, with the same amount already having a policy in place. Other key drivers for taking out cover after 50 include financial life events like retiring (8%) or paying off a mortgage (7%).
While covering funeral costs is the most prominent reason for investing in life insurance for over 50s, almost three in four (74%) agree that smaller and simpler services are more personal.
Meanwhile, 73% feel that the most important thing is that funerals celebrate the life of the individual, which means people are moving away from traditionally dark funerial clothes and colour is proving to be more popular (23% vs 32%).
While almost half of over-50s (45%) had planned some aspects of their funeral, the sensitive nature of the topic means 29% still prefer not to think about it at all. This suggests that further increasing the openness around funerals could see more people engaging with planning – and potentially the rate of take up on insurance cover too.
When it comes to choosing one product over another, cost was mentioned by over half (51%) of people as a leading factor. Next, the option of funeral funding was among the most important factors for 21%, followed by guaranteed acceptance (19%).
Defaqto ratings and awards received by providers play a role in choosing insurance products for one in 10 (9%) over 50s, while a similar proportion wanted the option of health support from a qualified professional (8%).
With such a variety of triggers to purchase insurance and factors going into choosing a product, advisers play a key role in helping people choose the right cover for their needs. Most over 50s (56%) say that they are looking for a financial advisor they can trust, as well as someone who offers quality advice (43%) and has good product knowledge (39%).
Paul Bridgwater from OneFamily said:
“Our research suggests that only a relatively small proportion of over 50s (22%) currently have life insurance cover in place. Thinking about end-of-life plans can be an uncomfortable process, but it really is crucial – particularly as major life events like retirement or paying off a mortgage approach.
“This is where a skilled adviser can be of great help, by offering reassurance and understanding the factors that enter into the decision-making process to buy life insurance after 50. Trust can be the key component in taking the first steps towards making the right financial plan and giving customers and their families peace of mind.”
The OneFamily Over 50s policy includes a comprehensive benefits package and funeral funding. It also offers terminal illness benefit as standard and guarantees acceptance, with no medical needed. Premiums start from £10 per month. OneFamily has been awarded the 2021 What Mortgage Award for Best Life Insurance Provider and a 5 star rating from Defaqto for the last 8 consecutive years.
To find out more please visit www.onefamilyadviser.com/over-50s-life-cover
Notes to Editors
Unless otherwise stated, all research conducted by Opinium, on behalf of OneFamily, between 11th August and 17th August 2021, among a nationally representative sample of 2,000 UK adults aged 50+