Final Expense Market Surges As Sales Top $1.38 Billion

September 2026

The final expense insurance market delivered another exceptional year in 2025, according to the latest LIMRA/Life Insurers Council (LIC) Final Expense Survey. Thirty participating carriers reported a combined $1.383 billion in annualized premium, nearly 1.3 million policies issued, and an average annual premium of $1,064 per policy. The results highlight the continued importance of final expense insurance in serving lower-income and middle-income consumers seeking affordable coverage for funeral costs, outstanding obligations, and other end-of-life expenses.

Double-Digit Growth Continues

The final expense market experienced remarkable year-over-year growth in 2025. Total annualized premium increased from $1.046 billion in 2024 to $1.383 billion in 2025, representing a 32% increase. Policies issued rose from 1.04 million to 1.30 million, a gain of nearly 25%, while average premium per policy climbed 6% to $1,064.

Growth was widespread throughout the market. Seventeen of the 30 participating companies reported sales increases greater than 10%, while eight carriers achieved growth exceeding 25%. Increased agent productivity was cited as the leading contributor to sales growth, followed by expanded distribution and increased marketing efforts.

These results suggest that final expense products continue to resonate with consumers despite economic pressures and changing purchasing behaviors. Demand remains particularly strong among seniors seeking simple and accessible life insurance solutions.

The Dominant Channel

As in prior years, independent agents and brokers remained the primary source of final expense sales for the surveyed companies. Independent distribution generated $1.09 billion in premium, accounting for 79% of total sales and 75% of all policies issued. Affiliated distribution represented 15% of premium, while direct-to-consumer channels accounted for only 6%.

The distribution mix reflects the relationship-based nature of final expense sales. Consumers purchasing these products often value personal guidance, particularly when making decisions about end-of-life planning. Independent agents also continue to leverage specialized marketing organizations and lead-generation systems tailored to the final expense market.

Simplified Issue Products Dominate

Accessibility remains one of the defining characteristics of final expense insurance. Consistent with that objective, simplified issue policies accounted for 76% of premium sales, while guaranteed issue products represented 24%.

Simplified issue policies generated more than $1.05 billion in premium and nearly 964,000 policies issued. These products had an average face amount of $15,344, compared with $11,299 for guaranteed issue policies. Average premium per policy was also slightly higher for simplified issue business at $1,090, versus $988 for guaranteed issue coverage.

The continued dominance of simplified issue products reflects carriers’ ability to provide fast underwriting decisions while still managing risk effectively. Many companies rely on prescription databases, identity verification tools, Medical Information Bureau data, and medical claims information to make underwriting decisions quickly and efficiently.

Clear Market Leader

Among policy designs, full death benefit products remained the clear market leader. These policies accounted for 67% of total premium sales and 65% of policies issued. Graded death benefit products represented 26% of premium, while limited or modified death benefit policies made up the remaining 7%.

Notably, full death benefit sales gained share in 2025, increasing from 59% of premium among this year's respondents in 2024 to 67% in 2025. Meanwhile, graded death benefit sales declined from 34% to 26%. Limited or modified death benefit sales remained unchanged at 7%.

Full death benefit policies also carried the largest average face amount at $16,272, compared with $11,835 for graded policies and $8,505 for limited or modified products.

Geographic Concentration Persists

Texas, Florida and North Carolina once again led the nation in final expense premium sales. Together, the three states generated approximately 24% of total sales among reporting companies. Texas alone accounted for more than $136 million in premium, followed by Florida at nearly $100 million and North Carolina at $92 million. Georgia and California rounded out the top five states.

Several Southeastern states also demonstrated strong growth, including Alabama, South Carolina, Florida and Georgia, underscoring the continued concentration of final expense business in the South and Southeast.

Looking Ahead Through 2026

Despite strong performance in 2025, the majority of carriers expect moderate growth in 2026. Nearly 69% of surveyed companies anticipate moderate industry growth of 2% to 10% in 2026. At the company level, 48% expect moderate growth while 28% expect their own sales to increase by more than 10%. Only 17% foresee declining sales for their companies.

Conclusion

The 2025 LIMRA/LIC Final Expense Survey demonstrates a market that continues to expand rapidly while remaining focused on its core mission of providing affordable life insurance protection to underserved consumers. Independent agents remain the principal distribution force, simplified issue products dominate sales, and carriers are increasingly using technology to accelerate underwriting and improve customer experience. With premium growth exceeding 30%, rising policy counts, and continued optimism for the future, the final expense market appears well positioned to sustain its momentum through 2026.

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