U.S. Burial Insurance Market (By Coverage Type: Level Death Benefit, Guaranteed Acceptance, Modified Or Graded Death Benefit; By Age Of End-user) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The U.S. burial insurance market size was estimated at around USD 15 billion in 2021 and it is projected to hit around USD 30.5 billion by 2030, growing at a CAGR of 8.2% from 2022 to 2030.

The growth is attributed to the rising awareness among people about burial insurance. Furthermore, due to the rising awareness, companies through their marketing strategies are trying to enter the market, whereby the marketing strategies include providing various funeral insurance plans which could attract a wide range of people.

Burial insurance is uniquely created to cover one-time and short-term expenses, where its major application is covering funeral costs, in contrast to conventional universal, whole life, and term life policies. However, as the number of insurance companies has grown, product bundling has become a very common practice in the insurance industry. As a result, burial insurance can now be used to pay for any final expenses, such as unpaid medical bills, credit card debt, or other bills accumulated in the month of death (utility bills, phone bills, etc.).

To take advantage of diverse sorts of services and technological capabilities needed for future success, forward-thinking insurers are widening their options and going beyond conventional vendors. To improve company position in the global burial insurance market, these companies have used a variety of strategies, including partnerships, collaborations, product launches, joint ventures, and mergers and acquisitions.

For instance, on February 28, 2022, Westpac Life was bought by Fidelity Life, the country's largest privately owned life insurance provider, for 400 million New Zealand dollars. In connection with the sale, Westpac Life changed its name to Fidelity Insurance and signed a 15-year contract with Westpac NZ for the distribution of life insurance. For the next 15 years, Westpac NZ will offer Fidelity Insurance products to its retail clients as part of this agreement. The deal's parameters haven't altered since they were initially disclosed on July 6, 2021.

Scope of The Report

Age of End-user Insights

Based on the age of the end-user, the market is segmented into four types - over 50, over 60, over 70, and over 80. One of the main determinants of how much a policy would cost is age. Senior policyholders in particular start looking for plans that tend to cover all parts of expenses, including burial fees, because funeral prices are often greater in the U.S. and can burden families when loved ones pass away. Therefore, incorporating a payment for funeral costs in insurance plans benefits both the individual policyholder and their family substantially.

The U.S. Census Bureau's International Database for Population by Age for the U.S. revealed that individuals between the ages of 60 and 69 are significantly more common than individuals in other older age categories. This shows that people in that age group may be more inclined to choose these sorts of policies since the U.S. is one of the more developed and health-conscious nations, where people are typically aware of their health status and the benefits of health insurance. As a result, the segment of people aged over 60 and over 70 is dominating the market and is expected to maintain its dominance throughout the forecast period. 

Coverage Type Insights

Most last expenditure life insurance plans don't need a medical check, regardless of age. Based on coverage type, the market is segmented into three types - level death benefit, guaranteed acceptance, and modified or graded death benefit.

A level death benefit option in an insurance policy guarantees coverage that immediately pays out the whole death benefit. Whether the insured individual dies in the first or last years of the policy's term, doesn't matter. Additionally, this is the only form of final cost insurance that offers the insured full and immediate pay. Consumer adoption of level-depth benefit plans, which would expand quickly owing to the similarly low rates, would be the segment's primary growth driver.

The modified or graded death benefit segment held the largest revenue share of over 46% in 2021. Modified or graded death benefits have disadvantages as do other insurance plans, but they are still an option for people with a variety of health problems because the insurance industry is exposed to substantial risk by excluding any medical examination and associated tests. It is also anticipated that this segment will grow throughout the projection period, driven by a rise in the number of people who have serious illnesses preferring to buy such plans that also cover funeral costs.

State Insights

Because several insurance companies provide integrated health, life, and death insurance, in 2021, California, New York, and Texas owned the largest shares of the entire United States. Additionally, the Affordable Care Act in the US mandates the need for comprehensive coverage, which will act as one of the major drivers for the US industry and assist the market's growth throughout the course of the forecast period. As a result of the market's development, more providers are attempting to break into it by broadening its geographic reach and offering policies to a larger population. One such current market strategy is expanding the Online Sales Strategy.

Key Players

• Aetna Inc.
• Mutual of Omaha
• Transamerica
• Royal Neighbors of America
• Prosperity Life Group
• American International Group, Inc.
• Allianz Life
• Gerber Life Insurance
• Baltimore Life
• Foresters Financial Services Inc (acquired by Nassau Financial Group, L.P. also known as ‘Nassau’)
• AARP/New York Life
• Globe Life Inc. (Globe Life and Accident Insurance Company)
• Colonial Penn

Market Segmentation

• By Coverage Type Outlook
• Level Death Benefit
• Guaranteed Acceptance
• Modified or Graded Death Benefit
• By Age of End-user Outlook
• Over 50
• Over 60
• Over 70
• Over 80
• By State Outlook
• California
• Texas
• Florida
• New York
• Pennsylvania
• Illinois
• Ohio
• Georgia
• Rest of the U.S