Newsletter

ANNUITIES ARE ON A RECORD-SETTING RUN

Americans bought $107 billion worth of annuities in the first three months of 2026 alone, keeping sales at record levels for a tenth straight quarter. The appeal is simple: with interest rates still uncertain and the stock market choppy, more people nearing or already in retirement want a guaranteed paycheck they can't outlive, and annuities are built to provide exactly that.



In plain terms, an annuity is a contract with an insurance company: you contribute money, and in exchange you get some form of protected, predictable growth or income. A fixed annuity works a bit like a CD, offering a set rate of return. A variable or indexed annuity lets you participate in market gains while limiting your downside. An income annuity converts a lump sum into guaranteed monthly payments, often for the rest of your life. Right now, the products blending market growth with built-in protection are seeing the biggest jump in popularity, while plain fixed-rate annuities have cooled off slightly as interest rates have shifted.

LONG-TERM CARE PREMIUMS JUST GOT A LITTLE MORE TAX-FRIENDLY

The IRS raised the amount of long-term care insurance premiums people can deduct on their 2026 taxes. The new limits increase with age: up to $500 for those 40 and under, $930 for ages 41–50, $1,860 for ages 51–60, $4,960 for ages 61–70, and $6,200 for those 71 and older. Married couples can potentially deduct even more between the two of them, since each spouse's premium is measured against their own age bracket.

Long-term care insurance helps cover the cost of extended help with everyday activities, such as home health aides, assisted living, or nursing home care, which most health insurance and Medicare do not pay for, and which can otherwise cost tens of thousands of dollars a year. The tax break only applies to "tax-qualified" policies, which are traditional long-term care insurance plans meeting certain IRS standards, not the newer hybrid life insurance or annuity policies that include long-term care benefits. It also generally only helps if you itemize deductions and your total medical expenses, including the premium, exceed a set percentage of your income.

THE COVERAGE GAP IS NARROWING — SLOWLY

For years, industry researchers have tracked what's known as the "coverage gap": the difference between the amount of life insurance protection people actually have and the amount their families would need to stay financially secure if something happened to them. That gap has started shrinking for the first time in years, helped along by life insurance sales growing about 7% in 2025. Individual disability insurance, which replaces part of your income if illness or injury keeps you from working, is inching up too, with sales rising nearly 3% over the same period.

Part of what's changing is how people think about these products. Roughly half of consumers now say they want life insurance that can flex with them over time, potentially doubling as a source of retirement income, a way to help pay for long-term care, or an emergency fund, rather than a policy that simply sits in a drawer until it's needed. Disability insurance, meanwhile, remains one of the most overlooked forms of protection: many people insure their homes and cars without a second thought but never insure their own paycheck, even though a serious illness or injury is statistically more likely to interrupt someone's income during their working years than a house fire is to destroy their home.

Questions about any of these topics or how they might apply to your own coverage? Just call us at 786-970-0740 — we're happy to help.



This newsletter is for general information only and isn't personalized financial, tax, or legal advice. Figures cited are from LIMRA, the American Association for Long-Term Care Insurance, and Gen Re industry research current as of mid-2026.

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.