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LIMRA/LIC Preneed Survey Shows Continued Growth

Author

Nancy Moussa, ALMI
Associate Research Director Insurance Product Research
LIMRA and LOMA
nmoussa@limra.com

November 2026

The preneed insurance market delivered another year of moderate growth in 2025, with participating carriers reporting stronger sales volume, higher case counts and continued consumer demand for advance funeral planning. While overall growth remained measured rather than dramatic, the results point to a resilient market benefiting from stable consumer interest and expanding activity in multipay products.

According to the 2026 LIMRA/LIC Preneed Survey Report, 17 participating companies generated $3.22 billion in gross face amount across 576,895 cases in 2025, representing a 5% increase in face amount and a 6% increase in case count compared with 2024. 

The findings suggest that preneed insurance continues to occupy a unique position within the life insurance marketplace. Rather than selling insurance as the primary objective, preneed programs support funeral prearrangements, helping consumers lock in future funeral costs while providing funding vehicles that can grow over time. As inflation concerns remain top of mind for many households, the value proposition of securing future funeral services continues to resonate with consumers. 

Single Premium Leads Market

Single premium products maintained their longstanding dominance in the preneed market. In 2025, single premium sales accounted for 58% of total face amount sales, representing more than $1.87 billion in gross face amount. Multipay products contributed nearly $1.24 billion, or 38% of total sales, while preneed annuities accounted for approximately $109 million, representing 3% of the market. 

Figure 1. Single Premium Products Continue to Dominate Preneed Sales

Filter the data in this chart by clicking on a color bar in the chart legend.

Single premium policies also generated the largest share of cases, with 346,350 policies sold during the year. The segment posted a 5% increase in face amount and a 4% increase in case count compared with 2024, underscoring its continued importance to carriers and funeral providers alike. 

However, while single premium remains the largest segment, multipay products emerged as the market’s strongest growth driver in 2025.

Multipay Products Fuel Growth

Multipay sales grew 7% in face amount and 11% in case count year over year, significantly outpacing the other product categories. The growth suggests that more consumers are seeking payment flexibility when funding preneed funeral arrangements. 

Five-year and 10-year products dominated the multipay landscape, accounting for 33% and 30% of multipay face amount sales, respectively. Three-year products represented another 25% of multipay volume. Together, these products made up nearly 90% of all multipay sales. 

Interestingly, multipay policies also carried the highest average face amount in the market at $5,935, compared with $5,409 for single premium products and $4,963 for annuities. Despite this leadership position, the average face amount for multipay business declined 4% from 2024 levels, indicating much of the growth came from increased policy counts rather than larger individual sales. 

Lower Face Amounts Prevail

The 2025 results reinforce a longstanding characteristic of the preneed market: Most sales occur at relatively modest face amounts.

More than half of all policies sold carried face amounts below $5,000. Specifically, 23% of cases were issued with face amounts below $2,500, while another 34% fell between $2,500 and $4,999. Only 3% of policies exceeded $15,000. 

Overall average face amount declined slightly from $5,638 in 2024 to $5,582 in 2025, a decrease of 1%. This relative stability suggests funeral prearrangement costs remain affordable for many consumers, even as funeral expenses continue to rise across the country. 

Seasonal Patterns Remain Consistent

Monthly sales trends followed familiar patterns. January and December produced some of the lowest case counts of the year, while activity accelerated throughout the spring and summer months before peaking in October.

October generated the highest sales volume, recording $315.4 million in face amount and 56,704 cases. By contrast, January produced $219.6 million in face amount and 39,827 cases. 

Although sales case counts declined late in the year, average face amounts increased. December recorded the highest average face amount of any month at $5,796, reflecting larger average policy sizes despite lower overall activity. 

Geographic Concentration Continues

Preneed sales remain concentrated in several large states. California led all jurisdictions by a substantial margin, generating more than $607 million in face amount sales and nearly 19% of total reported market volume. Texas ranked second with $359 million, followed by Florida ($178 million) and Pennsylvania ($159 million). 

The top 10 states accounted for approximately 60% of total face amount sales, highlighting the influence of large population centers and established preneed distribution networks. Other top-performing states included Ohio, North Carolina, Indiana, Illinois, Tennessee and Wisconsin. 

Distribution and Consumer Trends

The survey also revealed important shifts in how business is conducted.

Electronic/digital submissions continue to gain traction. Among reporting companies, 57% of new applications were submitted digitally, compared with 41% submitted on paper. While every responding company still accepts paper applications, most carriers now receive at least some business electronically. 

Figure 2. Percentage of New Business by Application Method

Paper Electronic/digital Not reported
Average percentage of gross face amount 30% 48% 22%
Number of companies 12 9 5
Average percentage of case count 41% 57% 2%
Number of companies 14 11 3

Consumer demographics remained consistent with expectations for the market. Average issue age was 75 for single premium business, 67 for multipay products and 81 for annuities. The younger profile of multipay buyers suggests longer payment durations may be attracting consumers earlier in the planning process. 

Looking Ahead

The 2025 results portray a healthy and stable preneed insurance market. Growth was broad-based across product categories. Case counts increased, and participating companies collectively expanded sales despite ongoing economic pressures. Multipay products continue to gain momentum, digital processes are becoming more common, and consumer demand for advance funeral planning remains strong. 

While individual company results varied considerably, the overall market demonstrated resilience. With more than $24.9 billion of current in-force death benefit reported by participating carriers and continued overall sales growth, the preneed market appears well positioned to build on its steady growth trajectory in the years ahead.

 

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