Newsletter

LIFE INSURANCE: WHAT’S HAPPENING IN 2026

Life insurance companies are entering 2026 in very strong financial shape. They have more money in reserve than ever before, which helps keep policies stable and reliable.

What’s important for you:

• People are buying more annuities because they want guaranteed income.

• Insurance companies are earning money in new ways, but they’re being careful because some investments carry more risk.



• Commercial real estate (especially office buildings) is still struggling, so companies are watching that closely.

Why it matters:

If you’ve been thinking about life insurance or an annuity, this may be a good time to review your options. Rates and guarantees can change as companies adjust to the economy.

LONG TERM CARE: HIGHER TAX DEDUCTIONS AND RISING CARE COSTS

Long‑term care continues to be a major concern for many families. Costs are rising, and care providers are struggling to find enough workers.

Good news for 2026

The IRS increased the amount you can deduct for long‑term care insurance premiums.

For people age 70 and older, the new limit is $6,200. Couples may be able to deduct up to $12,400, depending on age.

Challenges in the long‑term care industry

• Nursing homes and home‑care agencies are still short on workers.

• Caregiver turnover remains very high.

• Costs continue to rise as demand grows.

Why it matters:

Long‑term care insurance can help protect your savings from rising care costs. The higher tax deduction makes these policies more affordable for many people.

SHORT-TERM AND LONG-TERM DISABILITY INSURANCE: WHAT PEOPLE NEED TO KNOW IN 2026

Many people don’t realize that their biggest financial risk isn’t death — it’s losing their income because of an illness or injury. That’s why short‑term and long‑term disability insurance remain so important in 2026.

What’s happening this year

• More employers are reviewing their disability plans because of rising medical leave claims.

• Some companies are shortening waiting periods so employees can receive benefits sooner.

• Long‑term disability carriers are updating their definitions of disability, especially for high‑income professionals.

• More people are buying individual disability policies to fill gaps in their employer coverage.

Why this matters

Short‑term disability helps replace income for the first few weeks or months after an illness or injury.

Long‑term disability takes over if someone can’t work for a longer period — sometimes for years.

Without these protections, many families would struggle to pay bills if a wage earner suddenly couldn’t work.

A simple reminder



If you rely on your paycheck, disability insurance is one of the most important forms of protection you can have. Reviewing your coverage each year helps ensure you’re not left with gaps you didn’t know existed.

About Paul Cholak

Paul has over forty years of benefits experience and has been Director of Employee Benefits for large companies, as well as a benefits consultant with major consulting firms. He understands the life and health insurance needs of individuals and families of all ages. He also has considerable experience in selling life and health insurance to employer groups.

He guides you through the steps of getting insurance and is available to help you both BEFORE and AFTER you've made your purchase decision.