Life insurance and annuities: Reassuring ‘tired’ clients in 2026

When people ask me what I see for life insurance and annuities in 2026, I always start here: Clients are tired. They’re tired of drama in the headlines, tired of volatility and tired of feeling as though their financial future is riding on whoever wins the next election or what happens with the next round of tariffs. They’re not only looking for products. They’re looking for stability. For simplicity. For something they can count on when the noise gets louder.

That’s why I believe we will see a meaningful uptick in fixed and indexed annuities heading into and through 2026, especially for people who are within that 5-to-10-year window of retirement. These are the people who watched their 401(k) go up and down like a roller coaster over the last decade and are starting to say, “I don’t want to do this with my retirement income.” They’re not chasing the biggest possible return anymore. They’re chasing predictability: checks that show up every month, income they can’t outlive and downside protection that lets them actually enjoy retirement instead of staring at the market every day.

Add in the uncertainty we’ve all felt over the last 12 months – political tension, talk of new tariffs, interest rate questions and an overall sense that the ground is always shifting – and you have a recipe for older Americans to move away from “hope it works out” portfolios and into more fixed, contractual guarantees. Fixed annuities and indexed annuities are built to answer that fear. They’re not magic. But they are math. And when someone is 65, looking at a retirement that might last 25 or 30 years, math and guarantees start to sound a lot better than guesses and projections.

I’m seeing more of a shift in conversations from “How do I maximize my return?” to “How do I make sure I never run out?” That’s a very different mindset. It’s not about beating the market anymore. It’s about eliminating the worst-case scenario. Annuities, when used correctly and not oversold as a cure-all, will keep gaining ground because they address that specific fear in a way mutual funds or brokerage accounts simply can’t. The agents and advisors who win in 2026 will be the ones who can explain these tools clearly, build them into a broader income plan, and service them with the same speed and ease clients now expect from every other part of their financial life.

Life insurance: ‘No plan’ is expensive

On the life insurance side, I think the story in 2026 belongs to a different group: younger adults and adult children who are waking up to just how expensive “no plan” really is. Over the last few years, we’ve all seen the GoFundMe pages, the family group texts, the panicked calls when a parent passes unexpectedly or when a working spouse dies without coverage. We’re living longer, but we’re also seeing more situations where people live a long time without being financially prepared, and their kids end up carrying that weight emotionally, physically and financially.

Because of that, I believe you will see more younger individuals taking life insurance seriously for the first time, not just for themselves, but sometimes for their parents as well. They’ve watched firsthand what happens when there’s no life insurance in place: surviving spouses forced to sell homes, adult kids funding final expenses on credit cards or siblings fighting over who’s going to “take care of Mom.” Those experiences leave a mark. And they push people to say, “I won’t put my family through that.”

For themselves, younger clients will continue to gravitate toward simple, affordable term insurance with enough coverage to replace income, pay off debt and give their families breathing room if something happens. They don’t want to overcomplicate it. They want clean, transparent coverage that fits their budget. For their parents, I expect more conversations around policies that cover final expenses, replace lost Social Security or pension income, and provide a financial bridge so a surviving spouse isn’t forced into making immediate, painful decisions.

More multigenerational planning

This is where the multigenerational planning opportunity gets real. We will see more adult children sitting at the table with their parents and an advisor, talking openly about what happens “if.” That used to be taboo. Now it’s just practical. Life insurance becomes less about death and more about protecting relationships; protecting the kid who would otherwise feel obligated to move back in, cash out their own retirement or pause their career to step in as the safety net. That’s a different way to frame the conversation, and frankly, it’s a lot closer to how families are living today.

What doesn’t change in 2026 is the human side of all this. Whether we’re talking about annuities for seniors or life insurance for younger families, the real work isn’t only running illustrations. It’s helping people get honest about what keeps them up at night, and then building a plan that lets them take a deep breath. The tools are already here. Fixed annuities. Indexed annuities. Term life. Permanent coverage where it fits. Our job is to simplify the decisions, cut through the noise and match the solution to the actual fear behind the question.

So if you’re an advisor staring down 2026, I would lean into two big themes: income certainty for retirees and burden reduction for families. Talk to your older clients about locking in part of their retirement income so the next election cycle doesn’t determine whether they can travel or help the grandkids. Talk to your younger clients about protecting not only their own households, but the parents and spouses who might depend on them down the road.

We don’t control markets, elections or policy changes. But we do control how prepared our clients are when those things swing the wrong way. And I believe 2026 will reward the professionals who lean into that reality — who focus less on selling the hottest new idea and more on building boring, reliable, well-structured plans that hold up when the headlines don’t.

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