2026 Final Expense Market Outlook And How You Can Capture This Opportunity

By James Schulze

This article discusses projected growth rates of the final expense market and the key drivers that support the optimistic outlook. It also offers agents insights on how they can grow their pipeline and convert more prospects to policyholders in 2026.

While the estimated size of the final expense market varies across different studies, there is agreement that the market will continue to grow. One study states the global market for final expense is projected to grow at a compound annual growth rate of approximately 4.6% for the next decade. In a 2025 report by Life Insurers Council, 28 U.S. final expense companies reported selling over one million policies in 2024, an increase of 10% over the previous year. Annualized premiums increased 16% year over year. And, even better, many growth drivers support the optimistic future outlook for the final expense market.  

Market growth factors for final expense

There are several factors that make the case for a growing final expense market, including:

• Aging population – The number of seniors has been growing steadily as baby boomers have now reached their 60s and 70s. The target audience for final expense policies is individuals between the ages of 50 and 85 years. One dataset suggests there are about 113 million Americans that fall within the target age bracket:

Multiple studies have suggested that only about one-half of Americans have any type of a life insurance policy. For those who do have life insurance, 60% purchased the policy to specifically cover their final expenses. Clearly, there are a lot of selling opportunities left in the market.

• Current economic conditions – Many Americans feel that life in the U.S. has become unaffordable. It is even more stinging for elderly citizens who are on a fixed income and those who will soon be retiring. A 2025 AARP survey found that more than 70% of Americans aged 55-78 carry debt, many with credit card, mortgage and auto loans. Their debt has climbed due in part to inflation, healthcare costs, and insufficient retirement savings. Yet despite financial challenges, many seniors feel the pull to do something to spare their families from the burden of covering their final expenses. Final expense policies, typically with lower face amounts of less than $50,000, offer reasonably-priced solutions that have gained in popularity.

• Rising costs of final expenses – As with most things, funeral and end-of-life costs have also gone up. Given many people start thinking about what their final expenses could be when they are in their 50s and early 60s, the actual costs could rise dramatically by the time they are 85 and older. Aligning themselves with a knowledgeable final expense agent can take some of the worry away. The agent will help them better understand and predict what their final costs could be and how to best plan for them. 

• Growing underserved customer base – There are a large number of seniors who are underserved in the market due to their limited financial resources and/or medical conditions. The Centers For Medicare & Medicaid Services (CMS) estimates that 48-86% of older Americans between ages 55 and 64 have a pre-existing condition. Individuals with serious health issues may not qualify for traditional life insurance plans. Final expense plans are attractive options for these individuals, as many plans use simplified underwriting and often do not require medical exams. 

For final expense agents, these positive growth drivers mean more seniors are shopping for policies and more carriers are trying to win their business. They will need to be strategic in growing their pipelines and capturing the opportunities in the market.

How to grow your pipeline effectively and efficiently

It all starts with a lead, someone who is in your target audience and often has already expressed a desire to speak with someone about final expense plans. Whether you are an experienced agent, or one of the growing class of new agents, the best way to build your pipeline is to purchase high-quality sales leads.

There are several lead types available, including aged, real-time, and click-to-call inbound leads. The best type of lead or mix of leads for an agency depends on their marketing strategy, type and size of sales team, technology, budget, and other factors. Heading into 2026, an increasing number of agents are looking at aged leads. Aged leads are a lower cost option and can deliver in large quantities. Successful agencies are buying aged leads monthly so they can:

• Generate higher contact counts without breaking the budget
• Run more call, text, and email tests to determine the best messaging and offers
• Train newer agents, letting them practice scripts on lower cost data
• Use smart routing and scoring to better focus their sales team’s effort
• Revive old quotes as inflation continues to push funeral costs higher
• Cost effectively enter new states and start with new carriers

Aged leads are not dead leads. They are simply underworked leads and represent a promising opportunity in the growing final expense market. 

How to convert more leads to clients

The most effective way to convert leads to clients is to finetune your process to:

• Consider a blend of lead types – Many agents have been successful pairing real-time leads with large datasets of aged leads. 
• Work a tight cadence – Too often agents will buy leads, call them one or two times, and then give up thinking the leads are not good. In reality, a strong, multi-channel cadence is the best way to successfully convert leads. Call immediately upon receiving a lead, follow up with SMS, and then email. Most sales are made after the fifth attempt to connect. 
• Ensure scripts are direct and human – Keep your messaging and conversations simple, straightforward, and empathetic. Seniors do not respond well to jargon.
• Lead with the problem – Talking about rising funeral and end-of-life costs and the stress it causes families is relatable to all individuals in your target audience.
• Offer a few options – Seniors are drawn to simple choices. Agents will have greater success talking about two or three options than presenting a long list of plans.
• Keep filling your funnel – To limit costly downtime, plan ahead and make sure you have enough leads based on your desired cadence and conversion rates.   

Conclusion

The final expense market is poised for growth in 2026 and beyond. Seniors are facing higher costs and more uncertainty. Carriers are offering simpler, less expensive policies that are easy to issue and are meeting the needs in the market. As the market grows, so too will the pool of sales leads. Agents who purchase these sales leads, refine their processes, and follow up with a disciplined cadence will turn prospects into long-term policyholders. 

If you would like more information on how you can sell more final expense plans, give The Leads Warehouse a call at 1-800-884-8371 or visit our website at https://theleadswarehouse.com.