Global Final Expense Insurance Market Overview:
Final Expense Insurance Market Size was estimated at 5.84 (USD Billion) in 2022. The Final Expense Insurance Market Industry is expected to grow from 6.11 (USD Billion) in 2023 to 9.2 (USD Billion) by 2032. The Final Expense Insurance Market CAGR (growth rate) is expected to be around 4.64% during the forecast period (2024 - 2032).
Key Final Expense Insurance Market Trends Highlighted
The Final Expense Insurance market is influenced by several key drivers, including the aging population, increasing healthcare costs, and rising awareness of end-of-life expenses. The growing number of senior citizens drives demand for these policies as they seek financial protection against funeral and burial expenses. Additionally, the high cost of healthcare and the shift towards consumer-directed care have made it essential for individuals to plan for their final expenses. Opportunities in the Final Expense Insurance market lie in expanding product offerings, such as simplified issue policies that cater to seniors with pre-existing conditions. Innovation in distribution channels, including online platforms and partnerships with financial advisors, provides opportunities for increased accessibility and convenience. Recent trends include the adoption of technology to streamline underwriting and claims processing, as well as the emergence of hybrid products that combine traditional life insurance with final expense coverage. Insurers are also focusing on providing value-added services, such as grief counseling and funeral planning assistance, to enhance customer experience and differentiate their products.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Final Expense Insurance Market Drivers
The Evolving Senior Population
The aging population is one of the vital factors that has increased in the Final Expense Insurance Market Industry. As the number of seniors grows, their need to purchase final expense insurance also increases. This insurance policy has a death benefit that can be deposited to cover funeral expenses, bills, and other critical supplies. The demand for Final Expense Insurance Market Industry is expected to rise over the coming years as the number of seniors also escalates. The factors that explain the increase in the Final Expense Insurance Market Industry are The rise in funeral costs, an Escalation in the number of people who die with no life insurance, and an increase in the awareness of final expense insurance. A combination of the above factors shows that Final Expense Insurance Market Industry is expected to reach $9.2 billion by 2032. The value expressed is from $6.11 billion, which was recorded in 2023. This value shows an average CAGR of 4.64%.
The Rise of Cremation
The increasing prevalence of cremation is also a lever for the development of the industry of Final Expense Insurance Market Industry. It is cheaper compared to a traditional type of burial and preferable for more and more seniors. Seniors choose cremation as they do not need to pay for the casket, burial plot, and vault. Consequently, with the increasing demand for cremation, there is a potential growth in demand for final expense insurance. In addition to being cost-effective, cremation is beneficial in a number of other ways. It is more useful in terms of the environment and allows for less fare from the current place of living to the burial site.
The Growing Popularity of Online Insurance
The growing popularity of online insurance is also contributing to the growth of the Final Expense Insurance Market Industry. Online insurance companies offer a number of advantages over traditional insurance companies, including lower prices, greater convenience, and a wider range of options. This is making online insurance increasingly attractive to seniors who are looking for affordable and convenient final expense insurance.
Final Expense Insurance Market Segment Insights:
Final Expense Insurance Market Policy Type Insights
The Final Expense Insurance Market is segmented by Policy Type into Guaranteed Issue Whole Life Insurance, Simplified Issue Whole Life Insurance, and Traditional Whole Life Insurance. Among these, Guaranteed Issue Whole Life Insurance is expected to hold the largest market share in 2023, owing to its guaranteed acceptance regardless of the applicant's health history. This makes it an attractive option for individuals with pre-existing conditions or who are concerned about their health. Simplified Issue Whole Life Insurance is expected to witness a significant growth rate during the forecast period. This type of policy requires a simplified application process with limited medical underwriting, making it easier for individuals to obtain coverage. Traditional Whole Life Insurance, on the other hand, has a more stringent underwriting process and requires a medical exam. However, it offers the benefit of lifelong coverage and cash value accumulation. In terms of Final Expense Insurance Market revenue, Guaranteed Issue Whole Life Insurance is projected to generate the highest revenue in 2023. This is due to its high demand among individuals seeking guaranteed coverage. Simplified Issue Whole Life Insurance is expected to experience a steady growth in revenue, driven by its ease of application and increasing awareness. Traditional Whole Life Insurance, while having a smaller market share, is expected to contribute significantly to the overall revenue due to its long-term coverage and investment potential. The Final Expense Insurance Market is highly competitive, with several major players operating in the market. These players are focusing on product innovation, strategic partnerships, and expanding their distribution channels to gain a competitive edge. The market is also expected to witness the entry of new players, particularly in emerging markets, which is likely to further intensify the competition.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Final Expense Insurance Market Coverage Amount Insights
The coverage amount segment plays a crucial role in the Final Expense Insurance Market segmentation. In 2023, the "Up to $25,000" coverage amount segment held the largest market share, accounting for nearly 45% of the Final Expense Insurance Market revenue. This segment caters to individuals seeking basic coverage for end-of-life expenses. The "$25,000 to $50,000" coverage amount segment is projected to witness significant growth, expanding at a CAGR of 5.2% during the forecast period. This segment aligns with the growing demand for enhanced coverage as individuals strive to cover increasing funeral and other end-of-life expenses. The "Over $50,000" coverage amount segment, though representing a smaller market share, presents lucrative growth opportunities, particularly among high-net-worth individuals and those seeking comprehensive coverage.
Final Expense Insurance Market Target Audience Insights
The target audience for final expense insurance includes seniors (age 50 and above), individuals with pre-existing conditions, and low-income individuals. Seniors are the primary target market for final expense insurance, as they are more likely to have health conditions that could lead to high medical expenses. Individuals with pre-existing conditions may also find it difficult to obtain traditional life insurance, making final expense insurance a more attractive option. Low-income individuals may also benefit from final expense insurance, as it can provide them with a way to cover funeral and other end-of-life expenses without putting a strain on their finances. The increasing aging population and rising healthcare costs are major factors driving the growth of the final expense insurance market.
Final Expense Insurance Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the Final Expense Insurance Market, influencing market growth and revenue generation. Independent agents hold a significant market share, leveraging their expertise and established relationships with customers. Captive agents representing specific insurance companies offer personalized advice and tailored solutions, contributing to their market presence. Online marketplaces are gaining traction, providing convenience and access to a wider range of products and services, driving market growth in recent years. The Final Expense Insurance Market revenue is expected to reach $6.54 billion in 2024, with a steady increase projected in the coming years. Segmentation insights into distribution channels empower market players to optimize their strategies, capitalize on growth opportunities, and cater to the evolving needs of customers in the Final Expense Insurance Market industry.
Final Expense Insurance Market Premium Payment Frequency Insights
The Final Expense Insurance Market segmentation by premium payment frequency offers insights into the different ways policyholders can pay their premiums. The most common options are monthly, quarterly, and annually. Monthly payments are the most popular option, accounting for over 60% of the Final Expense Insurance Market revenue in 2023. This frequency aligns well with the budgeting cycles of most households and provides policyholders with more flexibility in managing their finances. Quarterly payments are also relatively common, representing around 25% of the market. They offer a balance between affordability and convenience, requiring fewer payments throughout the year. Annual payments, on the other hand, account for a smaller portion of the market, around 15%. While they offer the lowest cost per payment, they may not be suitable for policyholders who prefer more frequent payment options. The Final Expense Insurance Market segmentation by premium payment frequency provides valuable insights into the preferences and behaviors of policyholders, enabling insurers to tailor their products and services accordingly.
Final Expense Insurance Market Regional Insights
The final expense insurance market size for North America is expected to reach USD 4.24 billion by 2024, while the market in Europe is projected to grow at a CAGR of 3.8% during the forecast period. APAC is expected to witness a significant growth rate of 4.5% during the same period, with a market valuation of USD 2.36 billion by 2024. South America and MEA are projected to grow at a CAGR of 3.6% and 4.3%, respectively. The growth in these regions can be attributed to the rising awareness about the importance of end-of-life expenses and increasing disposable income.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Final Expense Insurance Market Key Players And Competitive Insights:
Major players in Final Expense Insurance Market engage in strategic initiatives to expand their market presence and gain a competitive edge. Product innovation, mergers and acquisitions, and partnerships are common strategies adopted by leading Final Expense Insurance Market players to consolidate their position in the industry. The Final Expense Insurance Market competitive landscape is characterized by the presence of both established players and emerging companies. These players compete based on factors such as brand recognition, product offerings, distribution channels, pricing strategies, and customer service.
Leading Final Expense Insurance Market players focus on expanding their product portfolios to cater to diverse customer needs and preferences. They invest in research and development to introduce innovative products and enhance existing offerings. Mergers and acquisitions are also prevalent in the Final Expense Insurance Market industry, as companies seek to strengthen their market position, expand their geographic reach, and acquire new technologies and capabilities. Partnerships and collaborations are another key strategy adopted by Final Expense Insurance Market players to gain access to new markets, share resources, and enhance their service offerings. Prudential Financial, Inc. is a leading provider of financial services, including final expense insurance. The company offers a wide range of final expense insurance products, including whole life, term life, and universal life policies. Prudential Financial has a strong distribution network and a large customer base, which gives it a competitive advantage in the final expense insurance market. Lincoln Financial Group is another major player in the final expense insurance market. The company offers a variety of final expense insurance products, including whole-life, term-life, and universal life policies. Lincoln Financial Group has strong brand recognition and a long history in the insurance industry, which gives it a competitive edge in the final expense insurance market.
Key Companies in the Final Expense Insurance Market Include:
- Hartford
- Bankers Life
- Americo
- Gerber Life
- Globe Life
- Modern Woodmen
- Transamerica
- United Home Life
- Old American
- Mutual of Omaha
- Assurity
- Woodmen Life
- Principal Financial Group
- Lincoln Heritage
- Foresters Financial
Final Expense Insurance Industry Developments
The Final Expense Insurance Market is projected to reach USD 9.2 billion by 2032, exhibiting a CAGR of 4.64% from 2024 to 2032. The increasing geriatric population and rising healthcare costs are the primary growth drivers. Product innovation, such as simplified underwriting processes and guaranteed issue policies, further fuels market expansion. Additionally, strategic partnerships between insurers and funeral homes enhance market growth. Recent developments include the launch of new products tailored to specific demographics and the adoption of technology to streamline the application and claims process. The market remains competitive, with established players and new entrants vying for market share through innovative offerings and targeted marketing campaigns.
Final Expense Insurance Market Segmentation Insights
Final Expense Insurance Market Policy Type Outlook
- Guaranteed Issue Whole Life Insurance
- Simplified Issue Whole Life Insurance
- Traditional Whole Life Insurance
Final Expense Insurance Market Coverage Amount Outlook
- Up to $25,000
- $25,000 to $50,000
- Over $50,000
Final Expense Insurance Market Target Audience Outlook
- Seniors (age 50 and above)
- Individuals with Pre-Existing Conditions
- Low-Income Individuals
Final Expense Insurance Market Distribution Channel Outlook
- Independent Agents
- Captive Agents
- Online Marketplaces
Final Expense Insurance Market Premium Payment Frequency Outlook
- Monthly
- Quarterly
- Annually
Final Expense Insurance Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Final Expense Insurance Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.84(USD Billion) |
| Market Size 2023 |
6.11(USD Billion) |
| Market Size 2032 |
9.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.64% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Hartford, Bankers Life, Americo, Gerber Life, Globe Life, Modern Woodmen, Transamerica, United Home Life, Old American, Mutual of Omaha, Assurity, Woodmen Life, Principal Financial Group, Lincoln Heritage, Foresters Financial |
| Segments Covered |
Policy Type, Coverage Amount, Target Audience, Distribution Channel, Premium Payment Frequency, Regional |
| Key Market Opportunities |
Rising Aging Population.Growing Awareness of Financial Planning.Increasing Popularity of Burial Insurance.Expansion into Emerging Markets. |
| Key Market Dynamics |
Aging Population.Rising Healthcare Costs Low.Insurance Penetration Limited Product.Awareness Growing Competition. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
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Frequently Asked Questions (FAQ) :
The final expense insurance market is expected to reach USD 9.2 billion by 2032, exhibiting a CAGR of 4.64% during the forecast period (2024-2032).
The increasing geriatric population, rising healthcare costs, and growing awareness about final expense insurance are the primary factors fueling market expansion.
North America is anticipated to maintain its dominance throughout the forecast period due to the presence of a large aging population and high insurance penetration.
Final expense insurance provides coverage for end-of-life expenses, such as funeral costs, burial expenses, and outstanding medical bills.
Prominent players in the final expense insurance market include Lincoln Financial Group, AIG, Cigna, Prudential Financial, and MetLife, among others.
The Asia-Pacific region is projected to witness a significant growth rate during the forecast period, owing to the rapidly aging population and increasing disposable income.
The market faces challenges such as low awareness in certain regions, regulatory complexities, and competition from other financial products.
Technological advancements, such as online platforms and data analytics, are enhancing customer experience, streamlining underwriting processes, and reducing costs.
Trends shaping the market include the growing popularity of guaranteed issue policies, increasing focus on digital distribution, and the development of innovative products tailored to specific customer needs.
The long-term outlook for the final expense insurance market remains positive, driven by the aging population, rising healthcare costs, and increasing awareness about the importance of end-of-life planning.
