The final expense insurance market is experiencing notable growth, driven by an aging population and rising end-of-life costs. Financial advisors play a crucial role in guiding clients through the nuances of these policies to ensure comprehensive coverage.

Market Overview 

In 2024, the global final expense insurance market was valued at approximately $158.4 billion and is projected to reach $169.5 billion in 2025. Forecasts indicate a significant expansion to $291.7 billion by 2033, reflecting a compound annual growth rate (CAGR) of 7.02% from 2025 to 2033.

Driving Factors

  • Escalating Funeral Costs: The average funeral expense in the U.S. exceeds $8,000, underscoring the need for financial planning to mitigate this burden on families.

  • Aging Population: With a growing number of individuals aged 65 and above, there’s an increased demand for end-of-life financial solutions.

Policy Characteristics

Final expense insurance policies typically offer coverage ranging from $5,000 to $50,000. They are designed for seniors seeking affordable solutions with simplified underwriting processes, often requiring no medical exams and providing quick approvals.

Emerging Trends

  • No-Exam Policies: Approximately 70% of new policies issued in 2023 were no-exam policies, appealing to clients with pre-existing health conditions.

  • Digital Platforms: Over 40% of final expense policies were sold online in 2023, highlighting the shift towards digital channels in insurance distribution.

  • Hybrid Policies: Combining final expense coverage with traditional life insurance benefits offers clients enhanced flexibility and broader coverage options.

Considerations for Advisors

  • Client Education: Address common misconceptions by clearly differentiating final expense insurance from standard life insurance policies.

  • Policy Customization: Tailor coverage to align with clients’ specific end-of-life preferences and financial situations.

  • Digital Engagement: Utilize online platforms to streamline the application process and enhance client accessibility.

By staying informed about market dynamics and emerging trends, financial advisors can effectively guide clients in selecting final expense insurance policies that provide financial security and peace of mind.

Article Source:

Global Growth Insights. (2025). Final Expense Insurance Market Report.

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