The U.S. burial insurance market is expected to reach a value of USD 92.59 billion by 2030, with a compound annual growth rate (CAGR) of 3.4% from 2023 to 2030. This growth can be attributed to the increasing awareness among individuals about burial insurance and the efforts of insurance companies to enter the market and attract a wide range of customers.
Burial insurance differs from conventional life insurance policies as it is specifically designed to cover one-time and short-term expenses, primarily funeral costs. However, as the number of insurance companies has grown, product bundling has become common practice in the industry. Now, burial insurance can also cover other final expenses such as unpaid medical bills, credit card debt, and utility bills.
To stay ahead in the global burial insurance market, insurance companies have been implementing various strategies, including partnerships, collaborations, product launches, joint ventures, and mergers and acquisitions. For example, in February 2022, Fidelity Life, the largest privately owned life insurance provider in New Zealand, acquired Westpac Life for 400 million New Zealand dollars. This acquisition resulted in Westpac Life changing its name to Fidelity Insurance and signing a 15-year contract with Westpac NZ for the distribution of life insurance products.
The report also highlights the following key points about the U.S. burial insurance market:
1. Modified or graded death benefits have the largest revenue share of around 46% in 2021, followed by level death benefit coverage type.
2. Individuals over the ages of 60 and 70 account for the greatest revenue shares in terms of end-user age. This group is expected to maintain dominance over the forecast period, with individuals over 80 anticipated to contribute to market growth as the population ages.
3. The increased demand for funeral services and associated expenses has led to the implementation of government programs to ensure everyone receives adequate end-of-life care. This, along with insurance companies providing comprehensive plans, is expected to drive market expansion.
4. Factors such as increased awareness about funeral insurance, expanding healthcare coverage, increased competition, and collaboration among insurance providers are also contributing to market growth.
5. Key players are entering into partnerships, engaging in mergers and acquisitions, and launching new products to fuel market growth. For example, Nassau Financial Group acquired Foresters Life Insurance and Annuity Company in July 2020 to expand its insurance business in the U.S.
The article concludes by mentioning various analysis tools used in studying the burial insurance market, including Porter’s Five Forces Analysis, Pestel Analysis, regulatory framework analysis, competitor product price-based analysis, and Covid-19 impact analysis. It also provides a list of company profiles, including Foresters Financial Services Inc, Royal Neighbors of America, Gerber Life Insurance Company, Aetna Inc., Globe Life Inc., Mutual of Omaha, Fidelity Life Association, Allianz Life, Colonial Penn, and The Baltimore Life.
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Overall, the U.S. burial insurance market is expected to witness significant growth in the coming years, driven by increasing awareness, collaborations, and the introduction of innovative products by insurance companies.