Final expense life insurance new annualized premium rose 32% year over year in 2025, to $1.38 billion, according to a survey released July 30, 2026 by the Life Insurers Council (LIC), a LIMRA/LOMA research group. Participating carriers sold 1.3 million policies, up 25% from 2024. Of the 30 companies surveyed, 17 grew sales by more than 10%, and eight grew by more than 25%; LIC attributed the growth mainly to increased agent productivity and expanded distribution.
Growth that is broad, not concentrated
The detail that stands out most is how the growth is spread. Seventeen of 30 surveyed carriers grew sales by double digits, and a third of them grew by more than a quarter — a pattern that looks like demand, not one company’s marketing push. LIC notes its survey is not a full census of the market, and most carriers surveyed expect growth to moderate to a still-healthy 2% to 10% in 2026.
| Final expense market, 2025 (LIC/LIMRA survey) | Detail |
|---|---|
| New annualized premium | $1.38 billion (+32% YoY) |
| Policies sold | 1.3 million (+25% YoY) |
| Carriers surveyed | 30 |
| Grew sales >10% | 17 of 30 carriers |
| Grew sales >25% | 8 of 30 carriers |
| Simplified issue | 76% of sales, avg. face $15,344 |
| Guaranteed issue | 24% of sales, avg. face $11,299 |
| Independent agent share | 75% of policies sold |
Policies sized to a real, specific need
Simplified-issue policies made up 76% of sales, with an average face amount of $15,344, while guaranteed-issue policies made up the remaining 24%, averaging $11,299. Independent agents sold 75% of policies, affiliated channels 20%, and direct-to-consumer 5%. Those average face amounts, roughly $11,000 to $15,000, track closely with what families report funeral and burial costs actually run — reinforcing that these policies are being bought to cover a specific, sized cost rather than as a round-number placeholder.
The growth also tracks with how these policies actually get sold. Independent agents, not call-center direct-to-consumer channels, closed three out of every four policies in the survey, which lines up with how final expense has traditionally worked best: a licensed agent matching someone to the right policy type — simplified issue versus guaranteed issue, graded versus immediate benefit — rather than a one-size-fits-all form filled out online. That distinction matters more here than in most life insurance categories, because the buyers final expense serves are disproportionately older or managing a health condition, exactly the group most likely to be mismatched by a generic online quote.
Growth spread across most of the surveyed carriers, with face amounts that line up with real funeral costs, is a useful answer the next time someone asks whether final expense coverage is a real, demand-driven product or a niche sold by one company.
Why this matters for families
Final expense exists for a narrow, specific job: making sure funeral costs, medical bills, and small debts don’t land on a grieving family. It is typically easy to qualify for, with no medical exam in most cases, and the data shows it has been growing fastest among the households that traditional underwriting tends to price out or slow down. A survey like this one is a reminder that the growth is not a fad; it is families matching coverage to a cost that keeps rising.
What this means for you
If rising funeral costs are on your mind, or you are simply not sure how your own household would cover an $11,000 to $15,000 expense on short notice, it is worth a few minutes to see what you’d qualify for. Our who we serve page covers the households we work with most, and a free calculator can give you a quick, no-obligation estimate once you know roughly what coverage typically costs.
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Frequently Asked Questions
How much did final expense insurance premium grow in 2025?
New annualized final expense premium rose 32% year over year in 2025, to $1.38 billion, according to a survey of 30 carriers released by the Life Insurers Council (LIC), a LIMRA/LOMA research group.
How many final expense policies were sold in 2025?
Participating carriers sold 1.3 million final expense policies in 2025, up 25% from 2024. Simplified-issue policies made up 76% of sales, averaging a $15,344 face amount, while guaranteed-issue policies made up the remaining 24%, averaging $11,299.
What is final expense insurance?
Final expense insurance is a small, permanent whole life policy, usually in the $5,000 to $50,000 range, designed to cover funeral costs, medical bills, and small debts so a family isn’t left with the bill.
See what final expense coverage would cost you
A licensed United Trust Life agent can walk you through your options — free, no pressure, no exam in most cases.
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