Is Your Life Insurance Business Missing Out on a $25 Billion Market?
May 28, 2025
Published by: Christy Downs
Life insurance agents, are you constantly searching for untapped potential and new avenues for growth? Look no further than the booming final expense market. If you've been overlooking this segment, thinking of it as a "small premium" niche, it's time to recalibrate your strategy. As discussed by Ira Gottshall and Saul Bejarano on a recent episode of "Coffee with Closers," this market is not just large; it's exploding, offering immense opportunities for agents ready to engage.
The numbers don't lie. We’re in the midst of a demographic shift where 11,400 people turn 65 every single day. This isn't just a fleeting trend; it's a consistent, daily influx that has swelled the 65+ population to approximately 59 million, or about 18% of the U.S. population. This group holds significant wealth, controlling an estimated 73% of the U.S. wealth (for those 55 and up), and is projected to pass down roughly $30 trillion in inheritances. Beyond the sheer size, this demographic is evolving. Many are still employed (22% of 65+), often owning their own businesses, and a surprising 34% carry a mortgage, averaging $110,000 – a stark increase from just 10% in 2000. These aren't just folks needing a small burial policy; they have substantial financial needs and a desire to protect their families from end-of-life expenses.
Historically, final expense was seen as a product for fixed or low-income individuals seeking minimal coverage. However, the market has matured, and so have the needs and financial situations of today's seniors. The average cost of cremation with services has jumped to over $5,000, and a traditional burial can easily exceed $15,000. This rising cost is a significant concern for seniors who, having often buried their own parents, are keenly aware of the financial burden. What we're seeing now is that many wealthier clients have a "third bucket" – a separate savings account or CD specifically earmarked for their final expenses or as a legacy for their family. This money, often sitting dormant and earning minimal interest, presents a golden opportunity.
Instead of dismissing these clients, agents can transform these "penny sales" into substantial wins. By simply asking, "Have you thought about how your funeral expenses will be paid when you pass?" you open the door to a crucial conversation. If they have money set aside, you can introduce them to single-premium whole life policies. Imagine taking a $20,000 CD earning negligible interest and turning it into a $30,000-$35,000 tax-free death benefit. This immediate growth of their legacy is incredibly appealing and demonstrates immense value. For those without funds set aside, you can offer permanent policies that meet their needs, even if it’s a more traditional final expense product.
The beauty of this approach is threefold: you solve a real and pressing concern for your clients, you build immense trust by demonstrating your proactive care, and you create a pathway to uncover even larger financial planning opportunities. As Luis Garcia shared, addressing final expense can lead to uncovering six-figure annuities or other significant asset transfers. Major insurance carriers are already spending millions on advertising, telling seniors they need to plan for death. Why not leverage their marketing dollars and be the agent who provides the solution?
Don't let easy money sit on the table. The final expense market is no longer a niche; it's a foundational conversation that every life insurance agent should be having. It's a proven door-opener to deeper client relationships and larger sales.
Ready to learn more and unlock the full potential of this market?
Join us every week for "Coffee with Closers," where we dive deep into actionable strategies, market insights, and real-world success stories. Discover how to confidently approach the final expense market and grow your business.
Disclaimer: This blog post is for informational purposes only and does not constitute financial or investment advice.