Executive Summary
Early 2026 brings major life insurance industry changes: the market is projected to reach $16.35 trillion by 2033, final expense premiums grew 16% in 2024, and applications surged 22% in December 2025. The NAIC Policy Locator has helped consumers find over $13 billion in benefits, and new IUL illustration rules take effect April 2026.
Author: Mejor Vida Insurance Editorial Team
Reviewed by: Julie Braunsroth, Licensed Life & Health Insurance Agent
Organization: Mejor Vida Insurance
Last Updated: January 22, 2026
This educational article was created with AI assistance and reviewed for accuracy by a licensed insurance professional.
Quick Answer
The biggest life insurance industry changes in early 2026 include strong market growth (projected to $16.35 trillion by 2033), a 16% rise in final expense premiums in 2024, and a 22% jump in life insurance applications in December 2025. The NAIC Policy Locator has now helped find over $13 billion in benefits for families. New rules for indexed universal life (IUL) illustrations take effect April 1, 2026.
1 How Can I Find a Lost Life Insurance Policy?
You can use the NAIC's free online Policy Locator to search for a deceased loved one's life insurance or annuity; participating insurers may match and contact you. The tool has helped locate over $13 billion in benefits since 2016.
- $13+ billion in life insurance and annuity benefits located since November 2016
- 1.17 million policy search requests received
- 611,000+ successful matches
- $3 billion increase in located benefits since August 2024
The National Association of Insurance Commissioners' free online Life Insurance Policy Locator tool has achieved a significant milestone, helping consumers find over $13 billion in life insurance and annuity benefits. This represents a $3 billion increase from just one year ago.
If you've lost track of a loved one's life insurance policy, the NAIC's free tool can help you locate it. Many families don't realize benefits are waiting to be claimed. This underscores the importance of keeping beneficiaries informed about existing policies.
Source: National Association of Insurance Commissioners (NAIC) | January 30, 2026
2 Is the Life Insurance Market Growing in 2026?
Yes. The global life insurance market is growing strongly and may reach $16.35 trillion by 2033, up from about $7.59 trillion in 2024. A large underinsured population is driving demand.
- Market size: $7.59 trillion (2024) → $16.35 trillion (2033)
- Compound annual growth rate: 8.9%
- 102 million U.S. adults recognize they need more coverage
- Individual life insurance premiums hit record $16.2 billion in 2024
- Average policy face amount: $178,000 in 2025
In the U.S., 50 million middle-income Americans and 54 million women have identified coverage gaps. The independent workforce is often seeking portable coverage. Annuity sales reached a record $432.4 billion in 2024.
With so many Americans underinsured, now is an excellent time to review your coverage. The growing market means more options and competitive pricing for consumers seeking life insurance and final expense coverage.
Source: Astute Analytica / Globe Newswire | January 29, 2026
3 Are More People Buying Life Insurance in 2025–2026?
Yes. Life insurance applications rose 22% in December 2025 compared to a year earlier, per the MIB Life Index. Older consumers’ applications were up 67.5%, showing strong demand across age groups.
- December 2025 applications: Up 22% year-over-year
- Older consumers' applications: Up 67.5% compared to December 2024
- Record growth recorded for full year 2025
More families are taking action to get coverage. If you’ve been putting off buying life insurance, you’re not alone—but this trend suggests many people are now seeking protection.
Consumers are increasingly recognizing the importance of life insurance protection. If you've been putting off getting coverage, you're not alone—but this trend shows that more families are taking action to protect their loved ones.
Source: Insurance News Net / MIB Life Index | January 28, 2026
4 What New Rules Affect Life Insurance Illustrations in 2026?
New NAIC rules (AG 49-A) for indexed universal life (IUL) illustrations take effect April 1, 2026. They prohibit comparing historical averages with maximum illustrated rates and limit historical period reporting to the most recent 25 years.
- Prohibits comparing historical averages with maximum illustrated rates
- Limits historical period reporting to the most recent 25 years
- Requires specific definitions for 'historical period,' 'inception date,' and 'index'
- Increases uniformity in disclosure practices
These changes aim to improve consumer protection and make IUL illustrations clearer. When shopping for IUL, you can typically expect more transparent presentations of potential returns.
These regulatory changes aim to enhance consumer protection by preventing potentially misleading illustrations. When shopping for IUL policies, you can expect clearer, more transparent presentations of potential returns.
Source: Sidley Austin / NAIC | January 27, 2026
5 How Much Did Final Expense Insurance Grow in 2024?
Final expense new annualized premiums grew 16% in 2024 to $1.05 billion; policies sold rose 10% to 1.06 million. Simplified-issue policies make up about 85% of sales; guaranteed-issue about 15%.
- New annualized premiums: $1.05 billion (up 16%)
- Policies sold: 1.06 million (up 10%)
- Simplified-issue average face amount: $14,535
- Guaranteed-issue average face amount: $9,786
- Independent distribution: 86% of policies sold
- 75% of carriers anticipate industry-wide growth in 2025
Nearly 60% of participating companies reported sales growth over 10%; over 30% had growth over 25%. Independent agents often sell 86% of final expense policies, so working with one may give you access to multiple carriers.
Final expense insurance is more accessible than ever, with average policy amounts between $9,786 and $14,535. Working with an independent agent gives you access to multiple carriers and the best rates for your situation. Get a free quote to see your options.
Source: LIMRA / Life Insurers Council | January 27, 2026
6 Who Is Buying Indexed Universal Life Insurance in 2026?
A 2026 survey shows IUL buyers are often not high-net-worth: 78% of inquiries were from people with net worth under $500,000. Many use IUL for retirement income, policy loans, and estate planning—not only death benefit.
- 78% of inquiries from individuals with net worth under $500,000
- 83% were not working with a financial advisor
- 64% planned to make decisions within 90 days
- 80% identify as conservative or moderate investors
Most inquiries came from people not working with an advisor. IUL is complex; a licensed agent can help you understand benefits and limitations before you buy.
IUL isn't just for the wealthy—78% of interested buyers have net worth under $500,000. However, these products are complex. Working with a licensed agent ensures you understand the benefits and limitations before committing.
Source: Business Insider / Capital for Life | January 15, 2026
7 What New Digital Life Insurance Products Launched in 2026?
Ethos and North American Company for Life and Health Insurance launched an Accumulation IUL product in early 2026. It offers coverage up to $2 million, instant decisions for some applicants, and no medical exam for eligible consumers.
- Coverage up to $2 million
- Instant decision process with no medical exams for eligible consumers
- Net-zero cost loans (interest charged equals interest credited)
- Interest and loan bonuses
- 9 index option selections
Digital options are making life insurance faster and more accessible. Instant decisions and no-exam options can help families get coverage quickly.
Digital innovation is making life insurance faster and more accessible. Features like instant decisions and no medical exams are making it easier for families to get the coverage they need quickly.
Source: Globe Newswire / Ethos | January 7, 2026
Simplified-Issue vs Guaranteed-Issue Final Expense
| Feature | Simplified-Issue | Guaranteed-Issue |
|---|---|---|
| Average Face Amount | $14,535 | $9,786 |
| Market Share | 85% | 15% |
| Medical Questions | Yes (simplified) | None |
| Typical Approval | Days | Immediate |
Realistic Examples
Example 1: Maria, age 62, found a lost $25,000 policy using the NAIC Policy Locator. She submitted her late father’s name and details; the tool matched her with the insurer, and she was able to file a claim.
Example 2: Carlos, age 55, qualified for a $15,000 simplified-issue final expense policy after answering a short health questionnaire. He had no exam; approval took a few days.
Example 3: The Rodriguez family discovered their employer group coverage had a pending EOI (evidence of insurability) requirement for an increase. They spoke with a licensed agent to compare individual options.
Frequently Asked Questions
Q: How big is the life insurance market expected to grow by 2033?
A: The global life insurance market is projected to reach $16.35 trillion by 2033, growing from $7.59 trillion in 2024 at an 8.9% CAGR, according to Astute Analytica research published in January 2026.
Q: How much did final expense insurance premiums grow in 2024?
A: Final expense new annualized premiums grew 16% in 2024 to $1.05 billion. Policy sales increased 10% to 1.06 million policies, per the LIMRA-Life Insurers Council Final Expense Survey.
Q: What is the NAIC Life Insurance Policy Locator and how do I use it?
A: The NAIC Policy Locator is a free online tool that helps you find lost life insurance policies and annuities. You submit the deceased’s name and other details; participating insurers may match and contact you. It has located over $13 billion in benefits since 2016.
Q: How much did life insurance applications increase in December 2025?
A: Life insurance applications surged 22% in December 2025 per the MIB Life Index. Older consumers' application activity was 67.5% higher than in December 2024.
Q: What is the average face amount of a final expense insurance policy?
A: The average face amount for simplified-issue final expense is $14,535; for guaranteed-issue it’s $9,786. Simplified-issue makes up about 85% of final expense sales.
Q: What changes are coming to life insurance illustrations in 2026?
A: NAIC revisions to AG 49-A take effect April 1, 2026. They prohibit comparing historical averages with maximum illustrated rates and limit historical period reporting to the most recent 25 years for IUL illustrations.
Q: What is final expense insurance and who needs it?
A: Final expense insurance is small whole-life-style coverage meant to help pay funeral and final costs. It often suits seniors or families who want a simple way to cover end-of-life expenses without a full medical exam.
Q: How do I know if I have enough life insurance?
A: There’s no single rule. Many people consider income replacement, debts, final expenses, and education or other goals. A licensed agent can help you estimate needs based on your situation.
Q: Can I get life insurance without a medical exam?
A: Yes. Simplified-issue and guaranteed-issue policies typically don’t require a full exam. Simplified-issue may ask a short health questionnaire; guaranteed-issue often has no health questions but may have lower face amounts or waiting periods.
Q: Why are life insurance applications increasing?
A: Awareness of coverage gaps, aging populations, and more digital options are often cited. December 2025 applications were up 22% year-over-year, with especially strong growth among older consumers.
Q: What should I look for in a life insurance policy?
A: Consider the type (term, whole life, final expense, IUL, etc.), face amount, premium you can afford, and any exclusions or waiting periods. Compare options and ask a licensed agent for help.
Quick Answers Summary
- Life insurance market may reach $16.35 trillion by 2033.
- Final expense premiums grew 16% in 2024; policies up 10%.
- NAIC Policy Locator has found over $13 billion in benefits.
- Applications surged 22% in December 2025; older consumers up 67.5%.
- New IUL illustration rules (AG 49-A) take effect April 1, 2026.
- Simplified-issue final expense averages $14,535; guaranteed-issue $9,786.
About Mejor Vida Insurance
Mejor Vida Insurance provides bilingual life and health insurance education and services to families across the United States, helping clients understand final expense, guaranteed issue, and senior life insurance options.
Editorial Standards
- Reviewed by a licensed insurance professional
- Updated regularly for accuracy
- Educational content only — not legal or financial advice
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