One third of Canadians enter into pre-arranged funeral agreements during their lifetime. “The concept is to plan, enter into, and pay for one’s funeral arrangements at today’s prices, without taking into account the price at the time of death,” summarizes Annie St-Pierre, Executive Director of the Corporation des thanatologues du Québec.
The process involves signing a contract with the funeral home, which details the services (embalming, visitation, decoration, ceremony, cremation, burial, etc.) and the goods (casket, urn, funeral monument, etc.) to be provided at the time of death.
In 2022, a survey conducted by Protégez-Vous magazine among thirteen funeral cooperatives and funeral homes in Quebec showed that the total cost of prearranged funeral services ranged from $5,000 to $15,000, including the cost of burial.
Highly specific products
Life insurance products are commonly used to cover funeral expenses when the time comes. “Funeral insurance is not a type of insurance you can buy. Rather, the death benefit from a life insurance policy can be used to pay for your funeral when you pass away. You choose an amount for your loved ones to get as a tax-free lump sum payment if you die,” explains Sun Life on its website.
In some markets, however, this approach is embedded within a more structured process of funeral planning. In most Canadian provinces, funeral directors and licensed preneed advisors are authorized to sell insurance to guarantee and fund pre-arranged funeral plans. This is the case in Ontario and New Brunswick, but not in Quebec. This model—using life insurance as a financing mechanism for prearranged funeral arrangements—is commonly referred to as preneed insurance.
“Preneed insurance products are different from other life insurance lines, in that the sales opportunity is not the insurance product; rather, consumers are purchasing an advance funeral plan with the guaranteed goods and services funded by a life insurance policy or annuity,” states Life Insurance Marketing and Research Association (LIMRA) in a release published in October 2025.
According to a survey conducted in collaboration with the Life Insurers Council (LIC), total 2024 preneed sales rose 4% year over year in the United States. That year, the gross value of contracts exceeded US$3 billion, with 535,000 policies sold and an average insured amount of US$5,675. Although no statistics exist for Canada, observers estimate that the market here is also growing, driven by population aging and the high cost of funerals.
A market dominated by TruStage
TruStage Life of Canada, an entity of CUNA Mutual Group, has established itself as the leader in this market, thanks to its partnerships with hundreds of funeral homes across the country and its 3,000 funeral preneed advisors. In addition, the insurer underwrites brands such as Canada Purple Shield and Premier Preneed.
On its website, TruStage offers “Funeral Preplanning Solutions.” These are customized insurance policies, the value of which is determined based on the contract signed with the funeral home and any optional add-ons, such as repatriation of the body or management of administrative formalities. Payment can be made in a single lump sum or spread over a period of three to twenty years, depending on the insured’s age. The cost is difficult to determine: the insurer does not provide a premium schedule on its website and declined to answer questions from Insurance Portal.
TruStage does not require a medical exam, but it does require a health questionnaire to be completed. It states on its website that “whether you've paid all of your premiums or just a few, your claim will be honoured in full.” However, not all policies underwritten through TruStage provide immediate coverage. For example, Canada Purple Shield offers “Preferred Issue” policies, a coverage for healthy individuals that begins immediately with no waiting period, and “Guaranteed Issue” policies, a coverage for people with health concerns that invovles a two-year waiting period.
When the insured’s death occurs, the funds avoid delays and estate-related taxes. They are transferred directly to the funeral provider, which carries out the agreed-upon plan.
