- Record Surge in Life Insurance Applications: January 2026 saw a 9.5% increase in life insurance applications, with the strongest January ever recorded, driven mainly by older buyers and large policies.
- Older Americans Leading the Growth: Most growth is among people over 40, who often use life insurance for estate planning, long-term care, or final expenses, while younger groups are seeing little or no activity.
- Big Policies Are on the Rise: Applications for policies over $100,000 are growing rapidly, especially those between $2.5 million and $5 million, reflecting wealth transfer trends among high-net-worth families.
- Protection Gaps Persist Despite Growth: About 42% of American adults lack adequate life insurance, especially middle-income women, with cost misconceptions being a major barrier to coverage.
- Tech Is Making Coverage More Accessible: Innovations like accelerated underwriting and AI risk assessment are speeding up approvals, but reaching the many uninsured and underinsured remains challenging.
Life insurance application activity jumped 9.5% in January 2026 compared to the same month last year, marking the strongest January the MIB Life Index has ever recorded. The surge extends a streak that saw 2025 finish with 6.8% annual growth, the highest on record, and the largest total volume of applications in a decade. Universal life led the charge with a 34.7% year-over-year increase, followed by term life at 26.4% and whole life at 15.6%.
The growth was concentrated among older buyers. Every age group above 40 posted double-digit gains, while applicants aged 30 to 39 saw flat activity, and those under 30 actually declined. That pattern mirrors what LIMRA researchers have been flagging for months: older Americans, particularly those approaching or already in retirement, are driving much of the industry’s momentum. Many are pairing life insurance with long-term care riders or using permanent policies as part of broader estate planning strategies. The final expense market, which targets seniors with smaller policies designed to cover burial and end-of-life costs, is also contributing to the uptick in older-age applications.
Face amounts tell a similar story. Policies between $100,000 and $2.5 million grew by double digits, and the $2.5 million to $5 million range saw triple-digit increases. Smaller policies under $100,000 stayed mostly flat. In other words, the people buying right now are buying big. That tracks with broader wealth transfer trends. An estimated $124 trillion is expected to change hands over the next two decades, and high-net-worth families are increasingly using life insurance as a tax-efficient tool to move assets between generations.
These numbers arrive against a backdrop that should give the industry pause. According to LIMRA’s most recent Insurance Barometer Study, roughly 102 million American adults either lack life insurance entirely or acknowledge they don’t have enough. That’s about 42% of the adult population. The protection gap hits hardest among middle-income earners making $50,000 to $150,000 annually, a group that accounts for an estimated 50 million of those underprotected adults. Women remain particularly vulnerable, with only 46% carrying coverage compared to 57% of men, the widest disparity in 14 years.
Cost perception continues to be the biggest barrier, and it’s largely a myth. More than half of uninsured Americans say expense is their top reason for going without, yet 72% of consumers overestimate what term life actually costs. A healthy 30-year-old can lock in $500,000 of 20-year term coverage for roughly $25 a month. That’s less than most streaming subscriptions combined. Even a 40-year-old nonsmoker in good health typically pays around $26 a month for the same coverage, according to recent Policygenius data. Comparing the best life insurance providers is one of the simplest ways to see what’s actually available at your age and health profile.
The economic picture heading into the rest of 2026 adds some complexity. LIMRA projects overall new annualized premium to grow between 2% and 6% this year, a step down from 2025’s double-digit pace. Their consumer sentiment data shows 52% of Americans are highly concerned about the economy, and inflation, while easing, hasn’t returned to pre-pandemic levels. The Federal Reserve has been slower than expected to cut rates, though stabilization around 3% is anticipated later this year.
Meanwhile, expiring ACA enhanced subsidies are reshaping the broader insurance landscape. An estimated 4.8 million Americans entered 2026 without health coverage after enhanced premium tax credits lapsed at the end of December. For households already stretched thin, the loss of affordable health insurance could push life insurance further down the priority list, even as the need for financial protection arguably grows. When families lose health coverage, a single medical emergency can wipe out savings that a life insurance payout would otherwise protect.
Carriers are responding with technology. Accelerated underwriting programs now approve policies with face amounts up to $5 million without a traditional medical exam at some companies. AI-driven risk assessment is shortening approval timelines from weeks to days, and in some cases, minutes. Wearable device data is emerging as a new factor in risk segmentation. These improvements are making coverage more accessible, but they’re primarily reaching people who are already shopping. The harder challenge remains connecting with the tens of millions who don’t realize how affordable or necessary coverage is.
For anyone who’s been putting off a policy, the January data reinforces a straightforward reality: premiums increase roughly 8% to 12% per year as you age through your 40s and 50s, even without any change in health. Waiting a single year can mean hundreds of extra dollars over the life of a 20-year term. A deeper look at life insurance cost by age and policy type can help put actual numbers behind the decision.
February’s MIB data will be worth watching closely. If January’s momentum carries through the first quarter, 2026 could outpace even the most optimistic industry forecasts. But the more important number to track isn’t application volume. It’s whether that 102 million figure starts to shrink. Record sales mean little if they’re concentrated among the same demographics who were already buying. The real test for the industry is whether faster underwriting, better digital tools, and clearer pricing can reach the younger, lower-income, and female consumers who remain on the sidelines.
