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Final expense sales fall 5% while preneed grows 2%

ATLANTA, June 14, 2023—Total final expense life insurance premium was $640 million in 2022, a 5% decline from 2021 sales results, according to a survey of 22 companies in the final expense market. This is the first drop in final expense premium since 2018 and follows two years of double-digit growth.

The 2023 study, conducted by the Life Insurers Council (LIC), part of LIMRA and LOMA, surveyed 22 final expense life insurers that primarily use independent marketing organizations (IMOs) to distribute their products.

“Despite the decrease in total premium in 2022, the final expense life insurance market remains strong in terms of consumer receptivity to these products,” says Dean Lambert, executive director, LIC. “Final expense premium remains well above pre-pandemic levels.”

In 2022, 72% of final expense sales were full death benefit policies; the other quarter represented policies that provided a limited benefit in the first few years of issuance. These simplified issue products provide point-of-sale decisions based on a telephone interview, prescription database review and/or MIB review.

The survey found there were more than 783,000 policies sold in 2022, with an average premium of $935.26.

LIC also released its 2022 sales results for preneed life insurance based on 12 companies’ results. Unlike final expense products, preneed policies are contracted directly with a funeral home for burial expenses and services. In 2022, sales were just over $2 billion measured by face amount among the 11 companies providing sales for both 2021 and 2022, up 3% compared with 2021 results.

“Many consumers cite ‘inflation protection’ as the primary benefit for funding advance funeral plans with preneed insurance as opposed to a final expense policy in which the level death benefit is paid to a named beneficiary,” said Lambert.

Two thirds of preneed sales (67%) were single-pay policies (meaning the policyholder pays for the policy all at once), 29% were multi-pay policies, and the remaining 4% sold as annuities. For single-pay policies, the average face amount was about $5,314, up slightly from 2021. In total, 74% of sales were submitted via paper applications, 22% electronic applications, and 4% “other” (mostly fax and email).

To obtain the full reports please click here to fill out the appropriate form. The completed form can be emailed to LIC members receive complimentary access to the report, while LIMRA and LOMA members receive it at a discounted price. It is also available for purchase by nonmembers.


About LIC
The Life Insurers Council ( is a council of LOMA that provides networking and practical business solutions for small-to-midsize life insurance companies, improving performance through shared excellence.

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