Life Insurers Council: Preneed Insurance Sales Nearly $3 Billion in in 2023

WINDSOR, Conn, Oct. 17, 2024 — Demand for preneed insurance (prefunded funeral arrangements) rose in 2023, according to the latest Life Insurers Council (LIC) (part of LIMRA and LOMA), annual preneed sales survey. Among the 16 survey participants, the total number of cases grew to over 517,000, representing $2.9 billion in sales.

Preneed insurance, typically sold by funeral service providers, allows individuals to contract with a specific provider for funeral and burial expenses in advance. Generally, these are smaller than other life insurance policies. In 2023, the average face amount was $5,352 for single premium policies, $6,356 for multi-pay policies, and $4,803 for preneed annuities.

Single premium policies continue to dominate the market. In 2023, of the preneed policies sold, 57% were single premium, 40% were multi-pay and 3% were annuities.

Among the nine companies that have reported sales results for three consecutive years, sales totaled $1.5 billion for 2023, an increase of 8% from prior year.

“The growth in the multi-pay market — where policyholders pay in installments over 3 to 10 years — outpaced the single-premium market three-fold. Multi-pay policy count jumped nearly 25% year over year in 2023,” said Dean Lambert, executive director, LIC. “We believe the growth in preneed products overall and multi-pay policies specifically, reflects consumers’ heightened awareness and desire to mitigate inflation risks associated with future funeral costs.”

While still just 3% of total sales, annuities represent a growing market in the preneed space. Preneed annuity sales jumped 7% in 2023, following a 14% year-over-year increase in 2022. There were more than 14,500 annuity contracts sold from preneed distributors in 2023, 1% higher than in 2022.

The 2024 LIC Preneed Survey Report is available for purchase as a digital download or printed copy. LIMRA and LOMA members and LIC members that did not participate in the study may purchase the study at a discounted rate. The report order form is online at www.loma.org/LICSurveys.

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About the Life Insurers Council
The Life Insurers Council (www.loma.org/lic), a part of LIMRA and LOMA, provides networking and practical business solutions for small-to-midsize life insurance companies, improving performance through shared excellence.