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Report pegs average Final Expense issue age at 61; face amount $10,864

Brian Anderson

The overall average issue age for Final Expense policies in 2013 was 61 while the average face amount was $10,864, according to a new joint study of 25 insurers by the Life Insurers Council (LIC) and CSG Actuarial.

The report also states final expense insurance new premium totaled nearly $400 million in 2013, representing 613,000 policies.

“The final expense market has great potential. According to LIMRA Secure Retirement Institute research, 1.5 million Americans are projected to retire each year until 2025 and many of them will need the protection final expense insurance will provide,” said Jeffrey S. Shaw, LIC executive director. “We are seeing renewed interest from larger insurers, as well as new firms entering the market.”

The survey collected information from 25 companies that offer final expense insurance distributed through specialized IMOs, including average issue age and face amount. CSG Actuarial contributed analysis of the entire final expense market and determined that the majority of the products are targeted toward people ages 50-80.

The study, LIC/CSG Final Expense Survey Report – 2013 Data, found that new premium increased 7% in 2013, based on the 18 companies reporting data from both 2012 and 2013. Policy count improved 2% for this group in 2013. On average, these companies have a placement ratio over 70%.

Final expense insurance is designed to help cover end-of-life costs such as medical bills, credit card debt and funeral costs, protecting one’s family from financial burdens associated with one’s death.

Of the companies surveyed, 94% of premium was simplified issue, for which the applicant is asked several medical questions but is not required to take a medical exam, and another 5% was guaranteed issue, where the policy is issued to anyone who applies, with no medical questions asked.

  • How do these figures compare with your experience? Sound off on this thread on Insurance Forums.

The annual LIC/CSG Final Expense Report is the only comprehensive study that examines the final expense market, offering in-depth data on product design, business processes, distribution and persistency.

This report can be purchased from LIC. LIMRA and LOMA members receive a discounted rate. Contact [email protected]for details.


The Life Insurers Council (www.loma.org/lic), a nonprofit association founded in 1910, provides networking and practical business solutions for life insurance companies, especially those serving the modest and middle-income market.

CSG Actuarial (www.csgactuarial.com) is an actuarial consulting firm that specializes in the individual life and health insurance markets, offering online competitive intelligence tools for agents, agencies, and carriers.

LIMRA, a worldwide research, learning and development organization, is the trusted source of industry knowledge, helping more than 850 insurance and financial services companies in 64 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.



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