USA Burial Insurance Market Outlook to 2028

USA Burial Insurance Market Overview

The USA Burial Insurance market is valued at USD 71 billion, based on a thorough five-year historical analysis. This market is driven primarily by the rising costs of funerals, which have been steadily increasing over the years, alongside growing awareness among older individuals about the financial burden of end-of-life expenses. The market growth is also supported by the simplicity of the burial insurance process, which typically does not require medical exams, making it accessible to a broad demographic.

The market sees dominance in states with larger aging populations, such as Florida, California, and Texas. Florida, in particular, has a high number of retirees, making it a prime market for burial insurance. States with higher funeral costs, such as New York and Illinois, also see a strong uptake in burial insurance policies as individuals look to alleviate financial pressures on their families.

The Federal Emergency Management Agency (FEMA) continues to offer funeral assistance programs, providing up to $9,000 in funeral expense reimbursement for those affected by disasters in 2024. While these programs provide short-term relief, they also highlight the need for permanent solutions such as burial insurance to cover unexpected costs, driving awareness and adoption of burial insurance policies among affected individuals and families.

USA Burial Insurance Market Segmentation

By Policy Type: The market is segmented by policy type into Level Death Benefit, Guaranteed Issue, and Modified or Graded Death Benefit. In 2023, the Level Death Benefit policies hold the largest market share due to their straightforward structure, which provides full benefits from day one for individuals in good health. These policies are particularly popular among those who seek immediate coverage with no waiting period, making them a preferred choice for individuals planning in advance to manage funeral costs effectively.

By Age Group: This market is further segmented by age group, including individuals Over 50, Over 60, Over 70, and Over 80. The Over 70 demographic leads the market in 2023, as many individuals within this age group begin to actively plan for their funeral expenses. Burial insurance policies for those over 70 typically offer a range of coverage options, and many people in this age group opt for policies that require fewer health checks or medical exams, making it more accessible even for those with pre-existing conditions.

USA Burial Insurance Market Competitive Landscape

The market is dominated by several key players, ranging from long-standing traditional insurers to more recent entrants in the digital insurance space. These companies have a strong foothold due to their extensive distribution networks, broad product portfolios, and the ability to meet specific customer needs through tailored insurance plans.

Company Name

Establishment Year

Headquarters

Products Offered

Target Market

Distribution Channel

Customer Service Rating

Financial Stability

Recent Initiatives

Partnerships

Cigna Group

1792

Bloomfield, CT

Prudential Financial Inc.

1875

Newark, NJ

Colonial Penn Life Insurance Company

1968

Philadelphia, PA

Mutual of Omaha

1909

Omaha, NE

Globe Life Inc.

1900

McKinney, TX

USA Burial Insurance Market Analysis

Market Growth Drivers

Increasing Senior Population: In the United States, the population aged 65 and older is projected to exceed 58 million in 2024, contributing to the rising demand for burial insurance. The aging population presents a

market opportunity, as seniors often seek affordable insurance solutions to cover funeral and burial expenses.

Rising Funeral Costs: Funeral costs in the U.S. have been consistently increasing, with the average cost of a funeral now exceeding $7,800 in 2024, according to data from the National Funeral Directors Association (NFDA). This rise in expenses creates a strong incentive for individuals and families to purchase burial insurance, ensuring that they are financially prepared for end-of-life expenses.

Low-Cost Insurance Option for Low-Income Families: Burial insurance is seen as an affordable insurance option, particularly for low-income families who cannot afford more expensive life insurance policies. The U.S. Bureau of Economic Analysis reports that over 37 million Americans live below the poverty line in 2024, and burial insurance offers a cost-effective solution for these families to avoid financial burdens in the event of a death.

Market Challenges

Competition with Other Insurance Products: One of the key challenges faced by the burial insurance market is competition from other types of life insurance products, such as term life and whole life insurance. In 2024, around 52% of U.S. households owned some form of life insurance, according to the Insurance Information Institute.

Low Awareness Among Younger Generations: While burial insurance is well-known among older adults, there remains low awareness and interest among younger demographics. The median age for purchasing burial insurance policies in the U.S. is over 60 years, according to industry data.

USA Burial Insurance Market Future Outlook

Over the next five years, the USA Burial Insurance industry is poised for growth, driven by an aging population and rising funeral costs. As more people seek to alleviate the financial burden on their families, the demand for burial insurance is expected to increase.

Future Market Opportunities

Rise in Personalized Burial Insurance Plans: Over the next five years, burial insurance providers are expected to offer more personalized plans that cater to specific demographic groups, such as veterans and seniors. The growing demand for tailored coverage will lead companies to introduce more customized options, including varying coverage amounts and benefit structures to meet individual needs.

Growth in Prepaid Burial Insurance Packages: By 2028, burial insurance providers will increasingly bundle policies with prepaid funeral services. These packages will become more popular as consumers seek comprehensive solutions that cover all aspects of funeral planning, including burial costs, transportation, and memorial services.
Please Note: It will take 5-7 business days to complete the report upon order confirmation