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Is Funeral Insurance The Next Big Thing In Insurance In India?

Is funeral Insurance the next big thing in insurance in India?
Is funeral Insurance the next big thing in insurance in India?

Deepu Verma

04 March, 2024

Is funeral Insurance the next big thing in insurance in India?

According to the India Protection Quotient 6.0 conducted by Max Life Insurance in partnership with Kantar, the security level has increased from 63 to 65% and at the same time the knowledge level has gone up from 57 to 61%. This undoubtedly reflects the realisation of reality for every Indian who faced the pandemic. The survey further discloses that almost 45% of the people surveyed have accepted that insurance is the best way to ensure financial security for their family.

While financial literacy in India has been continuously rising since the economic liberalisation of 1991, it has accelerated since the advent of Covid. We as Indians have realised the value of financial safety and the safety of family when we are not there to ensure it. One trend that has recently started to percolate through the fine membrane of our social fabric is that of going for funeral insurance also known as cremation insurance or last expense insurance.

Why India is in Need of Higher Reach of Funeral Insurance

India as a nation has surpassed China to become the most populated country in the world. The current population of India is above 143 crores out of which 36.3% is urban population as reported by With the population growth the daily deaths in India are also very high as compared to the rest of the world. On average 26,670 people die every day in India (Source: IndexMundi). However, despite such high figures, the cremation and funeral facilities have not been increased in the same ratio.

Out of the total population, almost 1.36 crore Indians are NRIs (according to the Ministry of External Affairs) and most of them have their families and elderly parents living back in India. Most of these NRIs are young professionals and have least knowledge of dealing with situations that may arise in case of the demise of their relatives back in India. They also lack detailed knowledge of the rituals that might have to be followed in such situations.

Let us imagine, God, forbid, but if one of the elderly parents of such an NRI professional meets with some ill fate and passes away, will the said person be able to take prompt actions on his own to secure the final rites and other related complexities? Probably not, because in such situation he/she might need some time to understand the gravity of situation. But if there is a funeral insurance for the deceased in place, all the person sitting abroad needs to do is dial a customer support number and help will be on its way within a matter of minutes.

Is Death Really a Taboo

On keen observation of the Indian society, you’ll be amazed to know that death is revered as the ultimate salvation, moksha, and mukti in all the diverse religions in India. Hindu philosophy claims death to be the freedom of the Jiva or soul. However, due to misinformation spread during a long course of our history, has maligned this shashwat satya (eternal truth) into a scary fact that can only be talked about in a sombre tone.

So, once and for all let us abide by our sacred scriptures to accept that death is also a vital fact and instead of avoiding it, we should be carefully and respectfully accepting its existence and have a plan in place. This fact has been understood by most of the urban populace and the same is evident from the IPQ 4.0 survey.

Is Cremation Insurance a reality in India

Although most people in India are not fully aware about the funeral insurance and cremation services, but there has been a rising demand of knowledge on this less chartered niche of Insurance.

Some prominent insurance brands have started to provide funeral or cremation insurance as a type of life insurance or an addition to the core policy. Others are ready to follow in the footsteps. Last Journey, as the leading funeral services provider, has partnered with Corporates, MNCs, Insurance Companies and Embassies to help them deliver, this much-needed facility to their employees and clients.

The premiums of funeral insurance start from approximately as low as Rs. 118 and the coverage may range from Rs. 5000 to 1,00,000 or more. So, yes, its time to accept that funeral insurance as well as cremation services are a reality in India. However, its altogether a very sincere and serious task to provide funeral services in India due to the elaborate and complex rituals prevalent here.

Types of Funeral Insurance

There are globally accepted 3 categories of Funeral Life Insurance. Each type has its specific funeral insurance benefits. Let us know these types in detail:

1. Simplified Issue Life Insurance

Simplified issue life insurance entails a health questionnaire, not a medical exam. Additional data, such as driving records and prescription usage, is collected from third-party sources. Approval is typically swift, often within minutes of application submission. Some key points for this type are:

  • Cost-effective for funeral or cremation coverage
  • Offers higher death benefits as compared to guaranteed issue policies
  • Full benefits apply for an accident-related death
  • Generally, includes graded death benefit

2. Guaranteed Issue Life Insurance

For a guaranteed issue life insurance, you don’t need to answer questions or undergo a medical exam. In fact, you can’t be denied coverage under this policy. However, there are certain limitations to this type of funeral insurance:

  • Comparatively expensive
  • Usually has low maximum coverage amount
  • Typically, available for age 50 or above
  • Usually has a graded death benefit

3. Pre-Need Insurance

In the Western world, this type of policy is generally available with the funeral services provider. You can enter into a contract with the funeral home and choose the type of services you want. If the service provider is a licensed insurer, it can allot a funeral insurance policy to you.

In India, such an insurance policy is not yet available. However, you can choose a trusted funeral services provider like Last Journey, who will execute a contract with you at nominal prices and make a repository of the services and events you wish to have for yourself or your elderly parents. In the situation of need, Last Journey will come to your aid even if you aren’t around to ensure the arrangements.

Cremation Insurance is here to Stay and Help You to have a Dignified Last Journey

Funeral services are already becoming a popular choice in Indian people due to number of potent reasons. Some of the most practical reasons why funeral insurance is the next big thing in the insurance industry in India and for the popularity of burial and cremation insurance and services are:

  • Inclination of MNCs and Corporates to include it into employee benefits to attract and retain employees.
  • Increasing urbanisation in India.
  • Decline in the societal bonding to garner support in dire situations.
  • Assured dignified and respectful way to bid adieu to loved ones
  • Enhanced globalisation causing travel of relatives to offshore destinations for temporary or permanent periods while the family remains in India.
  • Uncertainty caused by changing environment, lifestyle, and natural calamities like Covid.


It is slowly but steadily being accepted by the Indian people, especially the urban population, that choosing the way they or their loved ones should be treated post their demise, must be ensured in their own lifetime. This acceptance and the aspirations related to such expectations have also seeped into the business arena where funeral services and benefits are looked upon as an USP to attract top talents.

Being the torchbearers of funeral services in India, Last Journey takes it as our humble responsibility to educate people on this beneficial aspect of Insurance and its relevance that has been realised by many post-Covid. What is your opinion on this subject, do share with us and follow us for more such information. 

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