Burial Insurance Market

Burial Insurance Market: Overview

The market size for Burial Insurance was USD 231.5 million in 2021, projected to grow at a CAGR of 5.9 percent during the forecast period. Burial insurance has seen a spectacular global expansion as a result of the rising demand for funeral services and their associated expenses, which are one of the biggest challenges facing health insurance providers and other private payers in industrialized nations like Canada and the U.S. Additionally, the market for burial insurance as a whole is benefiting from the expansion of the health insurance industry, as well as from expanding internet usage and digitalization.

Regardless of their circumstances, everyone is guaranteed adequate end-of-life care because of government initiatives like those in Canada. The overall market will grow as more individuals learn about these initiatives and as this insurance firm focuses more on providing end-to-end plans to policyholders. For instance, the Canadian province provides government funeral assistance in Ontario, Saskatchewan, Nova Scotia, British Columbia, Alberta, and several other significant regions where it has set up a fund to help people who cannot pay for basic funeral costs.

The leading players are presently focusing on putting strategies into practice to strengthen their market positions in the global burial insurance industry, including new technology adoption, product developments, mergers and acquisitions, joint ventures, alliances, and partnerships. In December 2020, two businesses, Nubank and Chubb, entered into a strategic cooperation to introduce digital insurance products exclusively in Brazil. This digital insurance provides coverage for all forms of funeral costs. The strategic partnership gives thorough coverage of funerals and has marketed the product through digital platforms. The company's evident aim to cover all costs for people regardless of whether they are residents or migrants is demonstrated by introducing such products that cover migrant funeral costs, encouraging market growth throughout the foreseeable term.

Burial Insurance Market: COVID-19 Impact

There has been a significant increase in the number of applicants subscribing to burial insurance plans due to the global COVID-19 outbreak, which has bolstered the market for funeral insurance. As a result of the COVID-19 pandemic, interest in insurance as a general and burial insurance, in particular, increased among those looking for insurance coverage options. Mortality rates have dramatically increased globally as a result of the pandemic crisis. Most of Italy, Spain, the United States, and China are experiencing room scarcity at their burial cemeteries due to unfathomable deaths. The effect on life insurance firms has resulted in settlement of many claims. The circumstance has necessitated the prompt acquisition of insurance for burial and funeral costs.

Burial Insurance Market: Drivers

Awareness Regarding Coverages of Burial Insurance to Drive Market Growth

Rising awareness of burial insurance coverages is driving the global market for burial insurance. Better patient care has been possible due to the discovery of AML treatments. The price of funerals has skyrocketed in recent years. Sometimes the whole cost of the funeral procession is too costly for middle-class consumers to bear. Funeral service costs have grown in Japan, Germany, the U.S., South Africa, the Netherlands, the United Kingdom, China, and most North American and European nations. People are concerned about the growing average expense of a funeral. The cost of dying in these countries is almost 10% of an individual's wage. Most nations, however, spend more than this average amount, necessitating the usage of burial insurance.

Rising Incidence of Chronic Diseases to Drive Market Growth

Chronic disease frequency has raised awareness of insurance policies, particularly among the working-age and elderly populations. Chronic conditions like high blood pressure, atherosclerosis, etc., alter the patient's lifestyle and worsen their health. Additionally, it may result in severe discomfort for the patient in the form of acute pain. The prevalence of packaged meals and the development of unhealthy habits can worsen how these diseases affect the patient. The rise in heart disease deaths brought on by high cholesterol levels and smoking has prompted more people to purchase burial insurance. Furthermore, genetic abnormalities have increased the likelihood of developing life-threatening diseases, including cancer, lung disorders, etc. As a result, the market will benefit financially from the increasing prevalence of these illnesses.

Burial Insurance Market: Restraints

Complexities of Burial Insurance to Hamper Market Growth

The payment of burial insurance benefits is complicated in many ways. Some businesses offer a comprehensive range just for unintentional deaths. In contrast, they only reimburse the applicant for the whole sum paid, including some interest, in the event of natural death. Most of the burial insurance premiums must be paid for longer if the person lives longer. This lowers the value of investments, which inhibits market expansion. Before being introduced to the market, digital burial insurance must be approved by state rules. National legal regulations govern providers of burial insurance. Legal factors are a crucial component of funeral insurance. Legitimate businesses must create these. As a result, these strict requirements present a challenge to market growth.

Burial Insurance Market: Segment Overview

Modified or Graded Death Benefit Segment to Dominate Market Due to Fluctuating Insurance Rates

Based on coverage type, the burial insurance market is segmented into level death benefit, guaranteed acceptance, and modified or graded death benefit. The market for modified or graded death benefits dominates the market. This is mostly because modified life insurance rates fluctuate, most noticeably 5 to 10 years following the policy's start date. While the death benefit insurance has remained the same, the rates have altered. Rates frequently stay the same for the duration of the insurance policy when they rise. Frequently, premium increases only occur once as opposed to level life insurance plans, which have premiums that are both locked in and fixed over time.

Additionally, like all other policies, this modified or graded death benefit has drawbacks, but it is still an excellent choice for people with various health issues. As a result, the insurance firm is heavily exposed to risk. This market segment is therefore expected to expand throughout the projected period due to an increase in the number of people with serious illnesses choosing to purchase such policies that also cover funeral expenses.

Over 70 Category to Dominate Market Owing to Benefits Offered for this Age Group

The market is divided into four categories based on coverage type: over 50, over 60, over 70, and over 80. The group of consumers dominating the market was over 70, accounting for the greatest revenue share. These programs offer the greatest returns on investment for this age group. Age is a key consideration when buying funeral insurance. Many nations, including Japan, the USA, and Germany, have high funeral costs. Senior policyholders, in particular, start looking for plans that tend to cover all parts of expenses, including burial fees, because funeral prices are generally greater in developed nations like Europe and the U.S. and put pressure on families when loved ones pass away.

Burial Insurance Market: Regional Landscape

North America to Dominate Market due to Presence of Various Insurance Companies

Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. Several insurance companies provide combined health, life, and death insurance. Furthermore, the Affordable Care Act in the US makes having comprehensive coverage a requirement, which will act as one of the major drivers for the US industry and promote the growth of the global North American market throughout the projected period. Additionally, a press release from the White House states that on April 5, 2022, US President Joe Biden stated that his administration plans to expand the Affordable Care Act (ACA) to improve access to coverage and reduce costs, potentially raising the proportion of Americans who are insured. As a result, more Americans may decide to have their health insurance cover funeral costs, raising demand for burial insurance over the projection period. It is also projected that government funeral assistance in the form of funeral coverage in Canada will boost the growth of the North American market.

The European market is anticipated to experience stable revenue growth throughout the forecast period. The rising cost of funeral expenses is one of the main drivers of the UK market for funeral insurance. For instance, a study by SunLife Limited, a company that offers financial planning, life insurance, health insurance, and other services, discovered that 17% of families experienced significant financial hardship when paying for a funeral in 2021, indicating a significant need for funeral insurance over the forecast period. On the other hand, according to World Bank data, Italy has one of the highest concentrations of older adults in Europe, with 22.8 percent of the population being over 65. Over the projection period, this older population might be the market's growth driver for burial insurance. On the other hand, according to World Bank data, Italy has one of the highest concentrations of older adults in Europe, with 22.8 percent of the population being over 65. Over the projection period, this older population might be the market's growth driver for burial insurance.

Global Burial Insurance Market: Competitive Landscape

In June 2022, Ayllu was introduced in Argentina by Rio Uruguay Seguros and Nacional Seguros, two insurance companies that deliberately worked together. Ayllu is exceptional in the country and will provide reasonably priced coverage for funeral and burial costs, medical bills, and financial help for families in the event of accidental death. Similarly, in January 2020, L.P. Nassau Financial Group Foresters Life Insurance and Annuity Company was fully acquired. With this acquisition, the company has remained true to its aim of growing its insurance business in the United States by employing the independent Foresters branch and maximizing the potential of companies with clear goals.

A few players in the Burial Insurance Market include AARP, Gerber Life Insurance Company, Foresters Financial Services Inc., Mutual of Omaha Insurance Company, Globe Life and Accident Insurance Company, Colonial Penn, The American Automobile Association Inc., Fidelity Life Association, Royal Neighbors of America, Metlife, Inc.

Regional Classification of the Global Burial Insurance Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa