Final Expense Insurance Market Size, Share, Growth, and Industry Analysis, By Type (Permanent,Non-Permanent), By Application (From 50 to 65 Years Old,From 65 to 75 Years Old,Above and Equal to 75 Years Old), Regional Insights and Forecast to 2033

Final Expense Insurance Market Overview

Global final expense insurance market size is estimated at USD 207455.22 million in 2024 and expected to rise to USD 246973.65 million by 2033, experiencing a CAGR of 1.9%.

The Final Expense Insurance Market caters specifically to covering end-of-life expenses such as funeral costs, medical bills, and legal fees. As of 2024, over 2.9 million final expense policies were in force in the United States alone, reflecting rising consumer awareness and demand among aging populations. Final expense insurance is typically a simplified whole life insurance policy, with coverage amounts ranging from $2,000 to $50,000. Approximately 76% of buyers are over the age of 65, indicating a strong demographic skew.

In the U.S., average funeral costs have risen to $8,500, pushing more retirees and senior citizens to opt for final expense policies. In 2023, over 1.3 million new policies were issued across North America. Globally, countries with rapidly aging populations such as Japan, Germany, and China are contributing to increased market penetration. More than 45% of policies globally are now sold via digital platforms, a sharp increase from just 23% in 2019.

The demand for smaller face-value policies with affordable premiums is driving growth in this sector. Additionally, over 65% of insurance providers offer guaranteed issue policies without medical exams, making final expense insurance more accessible for elderly individuals with pre-existing health conditions.

Key Findings

Top Driver reason: Rising aging population and increased funeral costs.

Top Country/Region: United States with over 2.9 million active policies.

Top Segment: From 65 to 75 Years Old age group accounts for over 52% of new policy purchases.

Final Expense Insurance Market Trends

The Final Expense Insurance Market is witnessing several critical trends that are reshaping policy structures, sales channels, and consumer preferences. In 2023, digital policy issuance rose by 34%, indicating a shift from traditional agents to direct-to-consumer online platforms. This digitization has significantly reduced policy issuance time from an average of 21 days in 2018 to just 6 days in 2024.

Another major trend is the simplification of underwriting processes. Currently, 68% of insurers offer simplified issue policies that require only health questionnaires instead of medical exams. This shift has made insurance products accessible to a broader customer base, particularly the 75+ age group, which saw a 19% rise in policy acquisition in 2023 alone.

Moreover, insurers are bundling services such as funeral planning and grief counseling. For instance, over 48% of U.S.-based insurers now offer funeral planning as a part of their final expense insurance plans. This has improved policy attractiveness and retention.

Policy premiums have also seen minor increases due to inflation. The average monthly premium rose from $45 in 2022 to $52 in 2024 for a $10,000 policy. Meanwhile, the average payout term reduced to 10 days in 2024 from 15 days in 2021, improving customer satisfaction and efficiency.

Cross-selling strategies are also influencing growth, with insurers offering final expense policies alongside annuities or long-term care insurance. In fact, 37% of policyholders in North America purchased a bundled product in 2023.

Final Expense Insurance Market Dynamics

DRIVER

Rising aging population and increased funeral costs.

The growing global elderly population is significantly propelling the Final Expense Insurance Market. In 2024, more than 800 million people were aged 60 and above globally. In the U.S., the number of individuals aged 65 and older surpassed 56 million. This aging demographic, combined with rising funeral costs averaging $8,500 in the U.S. and $6,900 in Canada, is leading to higher policy adoption. The increasing preference for a secure way to handle final expenses without burdening families is a compelling factor. This has led to a 23% increase in final expense policies among the 65 to 75 age bracket within a single year (2023–2024).

RESTRAINT

Limited appeal among younger populations.

Despite the growing elderly segment, the Final Expense Insurance Market faces limitations among younger demographics. Individuals under 50 years old account for less than 11% of policyholders. The lack of immediate necessity and preference for broader life insurance products hampers market penetration in this group. Additionally, perceived low face values (average of $10,000–$25,000) dissuade financially savvy younger consumers who seek investment-linked insurance plans. Furthermore, cultural taboos and discomfort around discussing death in many Asian and African markets continue to act as psychological barriers, restricting expansion.

OPPORTUNITY

Expansion in digital and direct-to-consumer channels.

Digital transformation presents a major opportunity for the Final Expense Insurance Market. Over 45% of policies were sold through digital platforms in 2024, compared to just 18% in 2020. Simplified application processes, digital health assessments, and automated underwriting are making policy access faster and easier. With smartphone penetration exceeding 70% globally, insurers are leveraging apps and AI-powered chatbots to enhance engagement. The Latin American and Southeast Asian markets, with high mobile adoption, are expected to witness surging policy sales via digital channels, creating new revenue streams for insurers.

CHALLENGE

Rising claims due to increased mortality rates.

The market is challenged by increasing mortality rates linked to aging populations and health crises. Between 2021 and 2023, global claims frequency increased by 14%, leading to higher claim payouts. Insurers are struggling to balance affordable premiums with mounting claims. Furthermore, fraudulent claims and misrepresentation have risen by 6%, especially in emerging markets lacking robust regulatory systems. This not only raises operational risks but also compels insurers to implement stricter underwriting criteria, potentially alienating high-risk but genuine customers.

Final Expense Insurance Market Segmentation

The Final Expense Insurance Market is segmented by type and application. Types include Permanent and Non-Permanent insurance. Applications focus on three primary age groups: From 50 to 65 Years Old, From 65 to 75 Years Old, and Above and Equal to 75 Years Old.

By Type

• Permanent: Permanent final expense insurance remains the dominant type, accounting for over 72% of total policies sold in 2023. These policies offer lifelong coverage, making them attractive to seniors who desire guaranteed benefits. The average policy value in this category is between $10,000 and $30,000. Nearly 68% of permanent policies also come with a cash value component. In the U.S., over 1.9 million new permanent policies were issued in 2023.
• Non-Permanent: Non-permanent final expense insurance represents 28% of the market. These policies typically last 10–20 years and are more affordable initially, making them suitable for individuals in the 50–65 age group. Approximately 74% of policyholders under age 60 prefer this type. However, lack of lifelong coverage limits its long-term appeal. Non-permanent policy premiums are approximately 18% lower on average than permanent plans.

By Application

• From 50 to 65 Years Old: This segment accounts for 26% of the market. Individuals in this group often seek policies for early retirement planning. The average coverage chosen is $15,000, with a preference for lower premiums. Over 70% of buyers in this segment opt for simplified issue plans without medical exams.
• From 65 to 75 Years Old: The largest segment, with 52% of total policy purchases. Consumers in this bracket are closer to end-of-life planning, making final expense insurance more relevant. The most common policy value is $20,000. Insurers recorded over 1.5 million policy purchases in this category in 2023.
• Above and Equal to 75 Years Old: Comprising 22% of the market, this segment is growing rapidly. In 2023, policy uptake increased by 19%. These consumers favor guaranteed issue policies. More than 60% of policies in this group come with higher premiums due to risk-based underwriting.

Final Expense Insurance Market Regional Outlook

The global market for Final Expense Insurance displays variable growth across regions depending on demographics, healthcare costs, and cultural norms.

• North America

North America leads the market, with over 2.9 million active policies in the United States alone. Canada follows with 730,000 active policies. High funeral costs and widespread insurance literacy drive demand. In 2023, 68% of new policies in the U.S. were sold through online platforms, marking a major shift toward digital. The U.S. final expense policy market grew by 14% in 2023 due to aggressive marketing and aging demographics.

• Europe

Europe holds a growing share, particularly in Germany, France, and the U.K. In Germany, over 480,000 final expense policies were issued in 2023. Rising awareness and increasing average funeral expenses, now reaching €6,000 in urban areas, support market growth. Approximately 58% of European policyholders are aged between 65 and 75.

• Asia-Pacific

The Asia-Pacific region is witnessing a strong rise in policy adoption. Japan leads with more than 1.1 million policies, driven by an elderly population comprising 28.9% of its citizens. China and India are also showing strong interest, with over 430,000 new policies issued in 2023 combined. Digital outreach and financial inclusion are major enablers in these countries.

• Middle East & Africa

Market penetration in this region remains limited. However, South Africa recorded a 12% rise in policy purchases in 2023. Rising healthcare costs and increasing urban mortality are pushing consumers toward financial solutions for final expenses. Insurers are expanding micro-insurance and mobile-based policy models in Kenya, Nigeria, and UAE.

List of Top Final Expense Insurance Market Companies

• Allianz
• AXA
• Generali
• Ping An Insurance
• China Life Insurance
• Prudential PLC
• Lincoln National Corporation
• Zurich Insurance
• Nippon Life Insurance
• Japan Post Holdings
• AEGON
• Metlife
• Manulife Financial
• CPIC
• Chubb
• AIG
• Aviva
• Allstate
• LIC
• Prudential Financial
• UnitedHealthcare
• AIA
• Aflac
• Legal & General

Top Two Companies with the Highest Share

Allianz: As of 2023, Allianz held approximately 6.4% of the global final expense insurance policy market, with over 2.1 million active policies and a dominant presence in Europe and the U.S.

MetLife: MetLife recorded 1.8 million active final expense policies in 2023, primarily in the United States, with a growing digital platform that processed over 54% of policies online.

Investment Analysis and Opportunities

Investments in the Final Expense Insurance Market are expanding across digital infrastructure, underwriting automation, and cross-border partnerships. In 2023 alone, over $1.3 billion was allocated globally by insurers to enhance online policy platforms and expand digital distribution. Nearly 62% of insurers have integrated AI and machine learning tools for underwriting and customer service, reducing operational costs by 18% on average.

Private equity firms have increased their stake in insurtech platforms that offer final expense products. For instance, three major U.S.-based insurtech startups secured a cumulative $420 million in funding in 2023. These investments aim to streamline policy onboarding, automate claims processing, and drive data-driven underwriting.

Another area seeing significant investment is mobile-first insurance issuance. In Asia-Pacific, mobile platforms accounted for 49% of all new policy registrations in 2023, particularly in markets like India and Indonesia. This surge prompted over $320 million in regional investment dedicated to mobile application development, customer acquisition, and fraud detection technologies.

Additionally, insurers are entering collaborative ventures with funeral homes and healthcare providers to offer bundled final expense services. In 2023, more than 640 insurers globally reported new partnerships with third-party service providers, increasing customer value and product differentiation.

Regulatory initiatives in markets like the U.K., Australia, and Canada are also spurring investments. For example, the Canadian government announced new insurance sandbox regulations in 2024, enabling startups to pilot innovative policy models. As a result, over 120 new policy products were launched under experimental licensing.

New Product Development

Product innovation in the Final Expense Insurance Market has accelerated significantly, with over 350 new products introduced globally between 2023 and 2024. A primary area of innovation is guaranteed issue policies. These policies, which bypass medical underwriting, accounted for 41% of all new offerings in 2023, a sharp increase from 28% in 2020. The appeal lies in their simplicity and accessibility to higher-risk populations.

Additionally, insurers are developing hybrid policies that combine final expense coverage with living benefits. Over 65 insurers globally now offer plans that include cash value accumulation, accidental death benefits, and terminal illness riders. In the U.S., nearly 22% of new policies in 2024 featured such add-ons, enhancing product competitiveness.

Another major innovation is digital-first policies, tailored for online and mobile enrollment. These plans often include e-signature, instant underwriting, and chatbot-assisted customer support. In 2023, more than 190 insurers globally transitioned to full-stack digital policy platforms. Notably, 58% of final expense policies issued in Japan were transacted digitally.

Bundled services have also gained popularity. Insurers in Germany, the U.S., and Australia now integrate funeral concierge, legal document planning, and grief counseling services. Approximately 37% of U.K. policies now include third-party service packages, contributing to higher customer retention.

Micro-insurance and tiered coverage models are being launched to reach underserved markets. In 2023, Indian and Nigerian insurers introduced tiered plans starting at $2 monthly premiums for $2,000 coverage. These plans gained rapid traction, with over 1.2 million sign-ups recorded within 12 months.

Five Recent Developments

• MetLife: launched a mobile-only final expense platform in March 2023, which processed over 480,000 applications within the first six months.
• Allianz: introduced a bundled plan in August 2023 combining final expense insurance with long-term care coverage, targeting the 65–75 age bracket.
• AXA: entered the Indian market in January 2024 with tiered micro-insurance products offering $2,000 to $10,000 coverage at low premiums.
• China Life: Insurance adopted AI-based claim verification in 2024, reducing average claim processing time from 9 days to 3 days.
• Zurich: Insurance rolled out multilingual digital onboarding tools in Southeast Asia in mid-2023, increasing application completion rates by 26%.

Report Coverage of Final Expense Insurance Market

The Final Expense Insurance Market report offers a comprehensive assessment of the global landscape, covering over 27 countries and analyzing more than 45 companies actively issuing final expense policies. The report spans diverse market dynamics, including type-based segmentation (Permanent vs. Non-Permanent), application segments by age group, and region-specific performance.

It evaluates digital transformation’s role in reshaping customer acquisition and policy administration. Specifically, it covers digital policy sales trends, AI-based underwriting, and mobile-first platform evolution. With more than 58% of policy transactions occurring online by 2024, the report highlights the growing relevance of digital adoption.

The scope of the report also includes consumer behavior analytics across different demographic groups. For example, policy acquisition rates among the 65–75 age bracket, gender-based preferences, and payment trends (like auto-debit) are comprehensively analyzed using real-world figures.

Regionally, the report provides detailed insight into North America’s leadership position, Europe’s growing elderly demand, Asia-Pacific’s demographic potential, and the emerging presence in the Middle East and Africa. Each region's performance is supported by quantifiable data, including policy volume, average premiums, and underwriting practices.

The competitive landscape section assesses market concentration and identifies leaders by volume of active policies, product diversity, and digital capabilities. Allianz and MetLife lead globally, but regional champions like LIC in India and AIA in Hong Kong are also evaluated for strategic positioning.

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