Global Final Expense Insurance Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

The Final Expense Insurance market is experiencing robust expansion, with market size projected to increase from (6.12 billion) 2023 to (9.3 billion) 2030, demonstrating a consistent year-over-year growth rate of 4.65% Final Expense Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Guaranteed Issue Whole Life Insurance, Simplified Issue Whole Life Insurance, Traditional Whole Life Insurance), ,by Target Audience (Seniors (age 50 and above), Individuals with Pre-Existing Conditions, Low-Income Individuals), by Distribution Channel (Independent Agents, Captive Agents, Online Marketplaces) And regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2023 - 2030

Final expense insurance covers funeral costs and other end-of-life expenses. Such policies form an insurance suite, usually smaller than in the case of traditional life insurance policies, and are also considered to have simplified underwriting processes that will make coverage available to a broader segment of the population, including those who are healthier than average. The market is being driven by several factors, including an ageing population, rising funeral costs, and the desire for less burden on loved ones. It caters to everyone, from seniors who desire that peace of mind to younger adults who are seeking to plan ahead.

Final Expense Insurance Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 4.65%
Forecast Value (2030)	USD 9.3 billion
By Product Type	Guaranteed Issue Whole Life Insurance, Simplified Issue Whole Life Insurance, Traditional Whole Life Insurance
Key Market Players	Americo Assurity Bankers Life Foresters Financial Gerber Life Globe Life Hartford Lincoln Heritage Modern Woodmen Mutual of Omaha Old American Principal Financial Group Transamerica United Home Life Woodmen Life
By Region

Final Expense Insurance Market Trends

The market for final expense insurance is booming, and the primary driving factor for this boom is the greying population, especially in developed regions such as North America and Europe. The increase in the elderly population continues to boost the demand for end-of-life expense policies. This includes the needs for funeral expenses, medical bills, deathbed, and other final charges incurred. In fact, simplified issue and guaranteed issue policies tend to be more popular, as obtaining them usually comes with very little medical underwriting, making them suitable for seniors often excluded from qualifying for regular life insurance. The most important change for the final expense insurance market, however, is the movement toward digitalisation and online purchasing. The consumers, as it stands now, cannot move without touch with digital channels in terms of comparison for plans, getting a quote, applying for coverage, and the rest. Therefore, the insurers are forced to be flexible in providing better online services. They are at the forefront of developing products that are going to be less expensive, go with the customer-wide user base, and include specific needs, such as terminal illness riders or inflation protection, thus enticing a common audience craving affordable peace-of-mind insurance cover for their loved ones.

Final Expense Insurance Market Leading Players

The key players profiled in the report are Americo, Assurity, Bankers Life, Foresters Financial, Gerber Life, Globe Life, Hartford, Lincoln Heritage, Modern Woodmen, Mutual of Omaha, Old American, Principal Financial Group, Transamerica, United Home Life, Woodmen Life

Growth Accelerators

The growing age demographics within an economy are the major market drivers for the final expense insurance market. Increased requirements arise for simplified, affordable life insurance products as death approaches, especially in end-line expenses such as funeral costs, medical bills, and debts. Consequently, the growing population becomes more inclined to acquire insurance protection for people against such conditions. Another important factor is the fact that more people have become aware of the need for financial preparedness in meeting funeral and burial expenses. With most individuals settling for cheaper insurances due to spiralling healthcare costs and all the burdens slapping in the course of retirement, this kind of insurance—final expense insurance—does offer a more affordable alternative. These policies generally require no medical examination, feature simplified applications, and are more amenable to fast or immediate settlement, which means they might be attractive to interested parties trying to obtain peace of mind regarding final bills.

Final Expense Insurance Market Segmentation analysis

The Global Final Expense Insurance is segmented by Type, and Region.
By Type, the market is divided into Distributed Guaranteed Issue Whole Life Insurance, Simplified Issue Whole Life Insurance, Traditional Whole Life Insurance . Geographically, the market is assessed across key Regions like {regionNms} and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The competitive space of the last expense insurance industry primarily comprises the big names in insurance, together with specialized carriers and small regional companies offering funeral and burial coverage policies. The big names here are life insurance companies involved in writing final expense policies alongside other life cover products. Most such companies already have a wide distribution network, financial clout, and brand recognition to deliver within the market. They frequently offer a variety of policies, all flexible in premiums and amounts to cover the many needs of the consumer.

Challenges In Final Expense Insurance Market

In addition to the absence of awareness concerning this line of insurance policy, the potential customers face several challenges. Many people in younger demographics do not realise the importance of planning for final expenses and final expense insurance. This lack of understanding usually results in limited adoption, especially in cultures where people believe that discussing death matters and financial planning is limited. Hence, insurance providers often need to find a better way to reach these consumers using traditional marketing and awareness-building strategies. Another challenge that this field faces are intense competition from other life insurance products and alternative sources. More often than not, final expense insurance is treated as a smaller portion of a more extensive, much bigger life insurance market that includes all kinds of coverage under the life insurance category. The pricing and underwriting process is quite complex, with some insurers using strict eligibility criteria. Thus, low-income and ill-health individuals find it hard to get coverage at affordable rates. The above-mentioned major reasons create a market fracture and prevent the growth of the final expense insurance segment.

Risks & Prospects in Final Expense Insurance Market

The final expense insurance market has certain bright prospects because of the ever-increasing number of ageing populations and a corresponding rise in the demand for low-price, reasonable, and easy-to-understand life insurance products. Now that the baby boomer generation is getting old, it requires very simple insurance policies for all end-of-life expenses like funeral costs, medical bills, and outstanding debts incurred. It is very much possible for insurers to tap this opportunity in developing simple and affordable policies for older adults or those who want to avoid financial burdens on their families after their demise. Finally, it seems that an extension of portals for selling and administering insurance policies is yet another new area opened to insurers to serve even wider populations. Almost in parallel to the increasing consumer penchant for online purchases, along with well-advanced and convenient digital tools, insurance service providers are being positively compelled to furnish easy applications for final expense insurance. All such developments provide yet faster and better customised service delivery, which pulls further toward a generation of glitzy technology for expansion.

Key Target Audience

The targeted market segment for final expense insurance includes retired seniors aged 50 years and above, seeking cost-effective insurance for end-of-life expenses such as funeral preparations, medical costs, and other relevant expenses. This insurance is popular with people who either lack adequate savings or a life insurance policy or those who want to spare their loved ones from the financial consequences of their death.,, The market, too, suffices for any individual insisting on a simpler, smaller coverage plan rather than conventional life insurance policies. Final expense insurance provides its biggest benefit to retirees, people with fixed incomes, and residents in retirement communities interested in an easy, generally issue product without medical exams. It also serves as a hook to individuals who want peace of mind knowing their loved ones will not bear the burden of expenses upon passing.

Merger and acquisition

Over the past year, several mergers and acquisitions have taken place in the final expense insurance market, a strategic move reflecting the growth and expanding horizons of the major players. An example of this transaction is iA Financial's acquisition of around 115,000 policies owned by Prosperity Life Group, valued at approximately USD 100 million, bolstering iA's distribution network against a stronger U.S. presence. In addition, Transamerica will also introduce its FE Express product, which targets underserved markets, along with all the modern applications of technology that will make it user-friendly and accessible on final expense coverage. Expectedly, the next boom in merger and acquisition activity within the insurance sector would cause further concentration and innovation among firms so that the insurance needs of consumers toward cheaper and more accessible solutions can be met. This growth path is in tune with general movements in the insurance sector toward more and more companies interested in strategic partnerships and acquisitions for capacity building as well as expanding into new markets. >

Analyst Comment

"The market for final expense insurance is typically low-cost insurance meant for end-of-life expenses such as funeral and burial costs. The coverage is typically smaller in size and has a simple underwriting process, thus making it more available to the large population, particularly the older ones. Factors driving the growth of final expense insurance include age, increasing health and funeral costs, and the desire to ease the financial burden on their loved ones. The diverse market varies from traditional life insurers to various new providers specializing in final expense coverage."