Survey finds continued growth in the Preneed market . . but, there are cracks in the armor

April 27, 2026/Preneed/

Preneed continues to grow. . . .but is the growth enough? That is a great question and, among other things, we will look at the percentage growth of preneed on a “revenue per preneed contract” basis in this article.

Statistics on Preneed are difficult to find because of the private nature of the Preneed companies. However, we recently discovered a report from late 2025 that indicated that Preneed sales for the calendar year of 2024 increased somewhere between 3.52% and 4%. The discrepancy comes from two different press releases from differing organizations on what we believe is the same survey. (I expect that the difference is simply due to “rounding up” by one organization).

The report comes with data taken from a survey conducted by the Life Insurance Council (LIC) in collaboration with the Life Insurance Marketing and Research Association (LIMRA). Both press releases mention the same survey.

This press release states that in 2024 the 17 participating Preneed insurance companies that participate in the annual survey reported gross face insurance amount of $3.04 billion being covered in a total of 535,503 Preneed policies. Also reported was the fact that of those 535,503 policies, 62% was sold as a single premium policy, 34% as multi-pay policies, and 4% as annuity policies.

While the press release notes that “17 participating Preneed Insurance companies” and not all participated in the survey, it should be noted when you look at the participants it is almost all of the “big ones”. That includes Global Atlantic, NGL, Homesteaders, Security National Life, United Heritage, Physicians Mutual, and Wellabe. One large company is missing from the list and that is Funeral Directors Life. However, it is my opinion that the participating companies do give us an overall good idea of the industry. (To see the list of companies click here).

The same press release notes that “The study finds the average face amount for single premium contracts was $5,398, up 1% from the prior year’s results. Average face amount was $6,274 for multi-pay policies and $4,869 for annuities, both less than a 1% increase over 2023 results.” (Bolded emphasis by Funeral Director Daily)

Dean Lambert, the Executive Director of the Life Insurance Council (LIC) made these comments in regard to the survey, “While 2024 sales growth was not as strong as the growth experienced in 2022 and 2023, these unique products continue to appeal to consumers seeking to relieve their families from the expense and decisions involved in funeral and final expenses.”

Here is another press release on the information.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take: Preneed continuing to grow can be looked at as a positive for our profession. However, the average face value amounts growing at a “less than 1% increase” is a big headwind. And that headwind is not only for the insurance companies managing that revenue, but for the Death Care providers continuing to provide the services at a future price that appears to be growing at much less than the cost that inflation is adding to one’s business.

Part of that lack of face value growth comes from the public’s continued growing use of cremation over earth burial. That does, however, still cause the same problem for Death Care providers — less revenue coming in per service.

If there is a bright spot in this report in my opinion it is the fact that America had, according to the Center for Disease Control 3.072 million deaths in 2024 and only sold 535,503 preneed policies. That means that only about 17.4% of future deaths will have a preneed account.

That leaves over 80% of the public as the “addressable” remaining market for a preneed provider that finds the proper solution in caring for their future Death Care financial needs. I also understand that not everyone will want or have the means to purchase a preneed policy. But, it is my opinion that is a big-enough unmet market that some financial or insurance institution that already exists will build a product and more than likely enter the Death Care funding market, in a DTC – “Direct to Consumer” – mode and offer some type of pre-funding of Death Care services that will also serve the present consumer and compete with the existing preneed industry as currently set up through funeral establishments.

Consider the fact that over 75% of those over age 55 in America and almost 80% of those over age 65 are homeowners who should have enough of equity, means, and reason to pre-pay their Death Care expenses. Also, while the over age 55 cohort is only about 30% of the American population, they make up about 80% of all deaths — so about 2.45 million deaths in 2024.

So, the math would say that only about 22% of those over age 55 died with preneed funeral policies (using the 535,503 policies sold as our barometer for this number). To me, that shows a gap and an opportunity for the right company and product to enter the market.

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