Burial Insurance Market Forecasts to 2030 - Global Analysis By Type (Simplified Issue, Guaranteed Issue and Pre-need Insurance), Coverage, Provider, Age Group, Target Demographic, Distribution Channel, End User and by Geography

According to Stratistics MRC, the Global Burial Insurance Market is accounted for $180.22 billion in 2024 and is expected to reach $361.47 billion by 2030 growing at a CAGR of 12.3% during the forecast period. Burial insurance, also known as final expense insurance is a type of life insurance policy designed to cover the costs associated with a person's funeral, burial, and other end-of-life expenses. Burial insurance is a cost-effective choice for people who wish to make sure their family is not financially stressed during a trying time, even though it usually offers smaller coverage amounts than traditional life insurance. These policies may cover headstones, caskets, funeral services, and even unpaid medical bills.

According to the National Funeral Directors Association (NFDA) reported that the median cost of a funeral with a viewing and burial in 2021 was $7,848, emphasizing the financial necessity for many families to invest in burial insurance or related policies to alleviate such expenses.

Market Dynamics:

Driver:

Growing knowledge of funeral expenses

Costs associated with funerals and burials, including those for caskets, burial plots, headstones, and ceremonial arrangements, have increased dramatically in recent years. The average funeral expenses in many nations can range from thousands to tens of thousands of dollars. People now urgently need to make proactive plans for these costs. A cost-effective way to pay for these expenses is through burial insurance, which gives families financial stability and keeps them from using their savings or taking out loans during trying times. Additionally, the need for burial insurance is further increased by the media's and financial planning initiatives' increased public awareness of these expenses.

Restraint:

Low value perception in younger populations

Burial insurance is not widely used by younger populations because it is frequently perceived as a product intended primarily for the elderly. Millennials and Gen Z in particular may put investments or savings for short-term needs like housing, education, or lifestyle expenses ahead of long-term funeral cost planning. Furthermore, the perceived separation from end-of-life planning lessens the urgency of buying burial insurance, which slows the growth of the market in this age group.

Opportunity:

Growing need for inexpensive insurance choices

The need for reasonably priced insurance options that serve lower-income groups is growing as long as there are ongoing economic uncertainties in the world. Burial insurance meets this need well because it is a reasonably priced product. By creating micro-insurance models with modest premium amounts that are paid on a weekly or monthly basis to guarantee affordability, insurers can profit from this trend. Moreover, incentives for such initiatives could be offered by governments and non-governmental organizations that are interested in advancing financial inclusion, which would create a favorable environment for insurers.

Threat:

Vigorous market competition

The market for burial insurance is growing more competitive as new players enter the market and offer cutting-edge products at cheaper rates. Profit margins may decline as a result of this competition, and smaller or less technologically sophisticated insurers may find it difficult to hold onto market share. Additionally, insurtech firms, which use technology to offer individualized and affordable insurance, are also posing a threat to established insurers who are slower to embrace digital solutions.

Covid-19 Impact:

The market for burial insurance was greatly impacted by the COVID-19 pandemic, which increased demand because it brought attention to how crucial it is to budget for funeral costs. In order to lessen the financial burden of funerals, many people, especially older adults, considered or bought burial insurance as a result of the pandemic's spike in deaths. But many people also experienced financial strain as a result of the pandemic's economic uncertainties, which decreased their disposable income and caused some groups to purchase less insurance. Furthermore, consumer interactions with burial insurance products have also changed as a result of the pandemic's acceleration of the move toward digital channels, which led insurers to implement more online tools and services for policy purchases and claims processing.

The Guaranteed Issue segment is expected to be the largest during the forecast period

The market for burial insurance is expected to be dominated by the guaranteed issue segment. People who might have health problems or have trouble qualifying for other forms of insurance often choose this segment because it offers policies without requiring medical exams or in-depth health questions. Its dominance in the market is a result of its wide accessibility and straightforward application process. Moreover, customers, particularly older adults who might be worried about being refused coverage because of pre-existing conditions, will find peace of mind in these policies' guaranteed acceptance.

The Modified or Graded Death Benefit segment is expected to have the highest CAGR during the forecast period

In the burial insurance market, the modified or graded death benefit segment is anticipated to grow at the highest CAGR. For people who might not be eligible for traditional life insurance because of health issues, this kind of policy usually offers lower initial coverage with an increase in the death benefit after a waiting period. Because it offers a more affordable entry point into burial insurance, the segment's accessibility to a wider range of consumers, including those with pre-existing health conditions, is what propels its growth. Additionally, the market is expanding significantly, particularly among older adults looking for reasonably priced final expense coverage, as more insurers provide modified or graded death benefit options and as awareness of these policies rises.

Region with largest share:

Due in large part to the high demand for final expense insurance products in the US, the North American region is anticipated to grow the largest share of the burial insurance market. As more people look for burial insurance to cover funeral expenses and spare their families from financial strain, the aging population, especially the baby boomer generation, contributes significantly to the market's expansion. Furthermore, the market's expansion in this area is further supported by the existence of reputable insurance companies, advantageous regulatory frameworks, and growing consumer knowledge of the advantages of burial insurance.

Region with highest CAGR:

The burial insurance market is anticipated to grow at the highest CAGR in the Asia Pacific region. The rapidly aging populations in nations like China, India, and Japan are to blame for this growth, as people become more conscious of the importance of budgeting for end-of-life costs. In an effort to lessen the financial strain on their families, more people are looking for burial insurance as urbanization increases and conventional family structures change. Moreover, the demand for burial insurance is also being driven throughout the region by improvements in insurance penetration, growing disposable incomes, and the expanding use of insurance products, all of which are propelling the market's expansion.

Key players in the market

Some of the key players in Burial Insurance market include Cephalon Inc, AIG Company, Mutual of Omaha Insurance Company, Gerber Life Insurance Company, Allianz Life, The Baltimore Life Insurance Company, Colonial Penn Life Insurance Company, Foresters Financial Services Inc, Sagicor Life Insurance Company, New York Life Insurance Company, Assurity Life Insurance Company, Generali, Zurich Insurance, Transamerica and State Farm Mutual Automobile Insurance Company.

Key Developments:

In October 2024, New York Life is pleased to announce the pricing of its first-ever funding agreement-backed Medium-Term Note (MTN) offering in partnership with a consortium of diverse-owned banks. This $600 million, 3-year innovative transaction marks a significant milestone for New York Life as the company continues to drive inclusion and equity in its financial offerings.

In September 2024, Foresters Financial partners with Allstate to offer life insurance solutions. Under the agreement, Allstate's exclusive agents and Personal Financial Representatives will now offer a range of Foresters life insurance products, including three fully underwritten and four non-medical options. These products include whole life, guaranteed rate universal life, and term life policies.

In June 2024, American International Group, Inc. announced that it has entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million in cash plus additional earn-out consideration. The agreement includes the Travel Guard business and its servicing capabilities, excluding Japan and our AIG joint venture arrangement in India.

Types Covered:

• Simplified Issue
• Guaranteed Issue
• Pre-need Insurance

Coverages Covered:

• Level Death Benefit
• Guaranteed Acceptance
• Modified or Graded Death Benefit

Providers Covered:

• Agency
• Bancassurance
• Brokers
• Digital & Direct Channels

Age Groups Covered:

• Over 50
• Over 60
• Over 70
• Over 80

Target Demographics Covered:

• Seniors
• Low-Income Individuals
• Middle-Income Individuals

Distribution Channels Covered:

• Insurance Agents
• Direct Sales
• Online Channels

End Users Covered:

• Individual
• Family
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

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• Market share assessments for the regional and country-level segments
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• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
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• Company profiling with detailed strategies, financials, and recent developments
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