AIP Marketing Alliance has shared a lot of information about 2023’s Life Insurance Awareness Month (LIAM) as we promote the value of life insurance throughout AIPMA’s social media channels. (use hashtags #LIAM23 and #GetLifeInsurance)

LIAM includes education and promotion of all life insurance products. While most of the focus may center on permanent, term, or long-term care hybrid life insurance, AIPMA doesn’t want you to forget about the value and affordability of final expense insurance for your clients.

Typically, FE products are designed to pay for final expenses (burial, funeral, etc.), and most carriers do not require medical exams, have a much quicker underwriting turnaround, and could protect your clients with minor health issues who may not qualify for permanent/term life insurance. Final expense is designed to fit most consumers’ situations.

During the past couple of years, final expense insurance saw a spike during 2020 and 2021, possibly due to the COVID-19 pandemic. Based on reported sales numbers from four main FE carriers, final expense whole life grew from $200 million in 2019 to almost $350 million in 2020 and almost $400 million in 2021.

In 2022, final expense took a short dip to $375 million in sales through these carriers, but 2023 already has been strong with more than $225 million in reported sales. These numbers come from Corebridge Financial, Mutual of Omaha, American National, and Transamerica.

Why should you talk to clients and prospects about final expense insurance?

According to the National Funeral Directors Association’s latest statistics, the national median cost of a funeral with a viewing and burial in 2021 was approximately $7,848 (6.6% increase over the previous five years), while the median cost of a funeral with cremation was approximately $6,971 (11.3% increase over the previous five years). The cost does not consider cemetery, monument, marker costs, or miscellaneous cash-advance charges, such as for flowers or an obituary.

Adding a vault would add an average of $1,572 to the funeral, which makes the total funeral with viewing/burial cost around $9,420 total. Here’s a breakdown of the potential expenses that make up that number from the NFDA.

• Non-declinable basic service fees: $2,300
• Removal/transfer of remains to funeral home: $350
• Embalming: $775
• Other Preparation of the Body: $275
• Use of facility/staff for viewing: $450
• Use of facility/staff for funeral ceremony: $515
• Service car/van: $150
• Printed materials (basic memorial package): $183
• Cremation fee (if third party): $368 (59.9% of respondents use a third-party crematory)
• Cremation casket: $1,310
• Urn: $295

The NFDA also reported media costs from 2021 for additional add-ons/options.

• Rental casket: $995
• Metal Burial Casket: $2,500
• Wood Burial Casket: $3,000
• Green Burial Casket: $1,500
• Cremation Casket: $1,310
• Alternative Cremation Container: $150
• Vault: $1,572
• Urn: $295

NOTE: These numbers contain the latest data published from the NFDA based on 2021 and may have increased based on current economic conditions.

Inflation has escalated the cost of just about everything these days, but final expense insurance can provide up to $25,000 (higher with some carriers/products) to cover funeral and final expenses if something were to happen unexpectedly. If standard life insurance isn’t an option, discuss how affordable final expense insurance is available to earmark for those FE costs.

If you would like to learn more about selling final expense insurance, contact AIPMA’s Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com. AIPMA can grant you access to our non-branded final expense training and sales portal at finalexpensechampions.com and get you contracted with the above carriers and other final expense carriers.