Life Insurance News June 24 2026 Late Update: Life Settlement Market Surges 10%, Advisor Summer Strategies, and Fortitude Re Completes $500M Issuance
The life insurance industry is seeing significant shifts in consumer behavior as we move through the final week of June 2026. From a booming secondary market for life insurance policies to strategic moves by reinsurers and fresh advice for advisors navigating the summer slowdown, there is no shortage of developments that matter to policyholders and industry professionals alike.
This update covers the latest data from the Life Insurance Settlements Association (LISA), expert strategies for maintaining productivity during the slower summer months, Fortitude Re’s major issuance, and what these developments mean for anyone holding or considering a life insurance policy in 2026.
1. Life Settlement Market Posts Nearly 10% Growth in 2025
The Life Insurance Settlements Association (LISA) released its 2025 market statistics in late June 2026, and the numbers reveal a significant shift in how Americans are managing their life insurance policies. LISA members completed 2,955 life settlement transactions in 2025, representing a 9.48% increase over 2024 and totaling more than $3.7 billion in policy value.
According to Bryan Nicholson, LISA’s executive director, the 2025 data reflects something real shifting in consumer behavior. In an environment where the cost of living has put pressure on household budgets, a life insurance policy that seemed manageable to maintain a few years ago may no longer work for many families. When that calculation changes, more people are finding out what their policy is actually worth on the open market rather than simply surrendering it to their carrier.
The most striking figure from the report is the 8.71x multiplier — the highest in LISA’s five-year dataset. This means that on average, policyholders who sold their policies through the secondary market received nearly nine times more than they would have by surrendering directly to their insurance carrier. In total, LISA members paid consumers $554.6 million more than those same policyholders would have received by surrendering in 2025.
That is real money that stayed in the pockets of people who needed it, Nicholson noted. The average consumer recovered more than $212,000 per policy sold through the settlement market, a figure that underscores the significant valuation gap between carrier surrender values and open-market pricing.
Why the Valuation Gap Exists
The gap between surrender values and market values exists because insurers and the secondary market are valuing fundamentally different things. When a carrier offers a cash surrender value, they are offering their cost to exit the relationship — a number calculated to serve the carrier’s interest, not the policyholder’s. The secondary market, by contrast, prices a policy based on what a competitive pool of buyers is actually willing to pay.
That competition simply does not exist when a policyholder surrenders directly to their carrier. Lisa Rehburg, president at Rehburg Life Insurance Settlements, noted that as more financial and insurance advisors become aware, educated, and comfortable with life settlements, they are using them as a mainstream financial planning tool to help their clients.
Despite the growth, LISA estimates that approximately $50 billion in policies that could qualify for life settlements are still lapsed or surrendered every year. The volume growth in 2025 barely scratches that surface, which tells you the awareness gap is beginning to close, but the opportunity remains enormous.
2. Avoiding the Summertime Slump: Advisor Strategies for 2026
Summer is traditionally a slower period for life insurance agents and financial advisors, with clients and prospects stepping away for vacations and warmer-weather activities. But industry experts say the summer months present a valuable opportunity to build the systems, habits, and relationships that sustain long-term business growth.
Renee A. Hanson, a private wealth advisor at Affinity Wealth Advisory Group in Phoenix, Arizona, and a 14-year Million Dollar Round Table member, drew an important distinction between productivity and production. Production is tied to revenue — immediate, measurable results. Productivity, however, is what fuels sustainable growth. The summer months give advisors the space to become more intentional and strategic in how they invest their time.
Hanson recommended several key strategies for advisors during the summer slowdown, including pursuing new certifications, developing proactive marketing plans with calendared outreach, leveraging CRM campaigns and artificial intelligence tools for efficiency, and scheduling purposeful networking conversations with centers of influence rather than casual check-ins.
David E. Appel, senior vice president and head of insurance solutions at Integrated Insurance in Waltham, Massachusetts, added that summer is one of the best times to strengthen relationships and position your organization for future growth. He recommended conducting insurance portfolio reviews, revisiting planning goals, and reaching out to clients and centers of influence that may not have been contacted in the past 12 to 18 months. These proactive touchpoints often uncover new opportunities and ensure that when business activity accelerates in the fall, advisors are already well-positioned to move forward.
3. Fortitude Re Completes $500 Million FABN Issuance
In reinsurance market news, Fortitude Re, one of the largest reinsurers in the Bermuda market, completed a $500 million floating rate note issuance through its Funding Agreement Backed Notes (FABN) program. This issuance reflects the continued strength of the insurance-linked securities market and the growing role of institutional investors in providing capital to the insurance sector.
The FABN market has become an increasingly important funding source for life insurers and reinsurers, allowing them to access capital market investors while providing policyholders with the financial security they need. The completion of this $500 million issuance by Fortitude Re signals continued investor confidence in the life insurance and reinsurance sector despite broader macroeconomic uncertainty.
For policyholders, a well-capitalized reinsurance market means stronger financial backing for life insurance promises. Reinsurers like Fortitude Re provide the financial capacity that allows primary insurers to write more policies and maintain competitive pricing, ultimately benefiting consumers through broader product availability and pricing stability.
4. Industry Context: Q1 2026 Life/Annuity Earnings and AI Scaling
These developments come against the backdrop of a broader industry that is navigating both financial recovery and technological transformation. AM Best’s Q1 2026 special report found that the U.S. life and annuity industry saw bottom-line growth despite an 18% decline in total income compared to the first quarter of 2025. The industry’s ability to maintain profitability while top-line revenue declined speaks to improved operational efficiency and disciplined expense management.
Simultaneously, Insurance Journal reported on June 24 that many carriers have moved beyond asking whether AI has value and are now focused on how to scale successful AI implementations. After several years of experimentation with generative AI and machine learning, insurers are identifying the operational areas where AI delivers measurable returns and deploying it more broadly across underwriting, claims processing, and customer service.
For consumers, this AI scaling means faster underwriting decisions, more personalized policy recommendations, and potentially lower costs as operational efficiencies are passed through. The accelerated underwriting trend, which allows many applicants to skip the medical exam entirely, is a direct result of these AI investments.
Why This Matters to Policyholders
The convergence of these four stories — a booming life settlement market, advisor productivity strategies, reinsurance capital formation, and industry-level AI adoption — paints a picture of a life insurance industry in transition. For individual policyholders, the key takeaways are:
- Your life insurance policy is a financial asset, not just a death benefit. Before surrendering or lapsing a policy, explore the secondary market to understand its full value.
- Summer is an excellent time to review your life insurance portfolio and confirm your coverage still meets your needs and budget.
- The insurance industry’s financial health remains strong, with record capital flows supporting policyholder guarantees.
- AI and accelerated underwriting are making it easier and faster than ever to purchase or adjust coverage.
Life Settlement Market Statistics — 2025 LISA Data
| Metric | 2025 Value | Change from 2024 |
|---|---|---|
| Total settlements completed | 2,955 | +9.48% |
| Total policy value | $3.7 billion+ | Growth |
| Average payout per policy | $212,000+ | Record high |
| Multiplier vs. surrender value | 8.71x | Highest in 5 years |
| Extra value vs. surrender | $554.6 million | Consumer surplus |
| Estimated eligible policies lapsed/surrendered annually | $50 billion | Untapped market |
Top Life Insurance Carrier Financial Ratings — June 2026
| Carrier | AM Best Rating | Recent Action | Outlook |
|---|---|---|---|
| Everlake Life Insurance Company | A (Excellent) | Affirmed June 2026 | Stable |
| Sammons Financial Group | a- (Issue Rating) | $750M senior notes assigned | Stable |
| Globe Life Inc. (NYSE: GL) | A (Excellent) | Stock near 52-week high ($174.94) | Positive |
| Fortitude Re | A+ (Superior) | $500M FABN issuance completed | Stable |
| Hyundai Marine & Fire Insurance | A (Excellent) | Affirmed June 2026 | Stable |
Steps to Protect Yourself When Managing Life Insurance in 2026
- Review your current policy’s cash surrender value and compare it to potential life settlement offers before making any decision to cancel coverage.
- Ask your advisor or agent about accelerated underwriting programs that could help you secure coverage without a medical exam.
- Verify your carrier’s AM Best financial strength rating to ensure the company backing your policy has the resources to pay future claims.
- Schedule a mid-year policy review to confirm your coverage amount, beneficiaries, and premium payments are still aligned with your current financial situation.
- Compare quotes from multiple carriers if your premiums have increased — the competitive landscape has shifted significantly with AI-driven underwriting improvements.
Key Industry Developments — June 24, 2026 Summary
- Life settlement volume: 2,955 transactions completed in 2025, up 9.48% year-over-year, with consumers receiving $554.6 million more than surrender values would have provided.
- Advisor summer strategies: Industry leaders recommend using slower months for certification, marketing planning, CRM automation, and relationship-building to position for fall growth.
- Reinsurance capital: Fortitude Re completed a $500 million FABN issuance, signaling continued investor confidence in the insurance sector.
- Q1 2026 earnings: AM Best reports bottom-line growth for the life and annuity industry despite an 18% decline in total income.
- AI scaling: Carriers are moving beyond experimentation to operational deployment of AI in underwriting and customer service.
- Globe Life momentum: Stock trading near 52-week highs at $174.94, reflecting strong fundamentals in the middle-market life insurance segment.
Frequently Asked Questions
What is a life settlement?
A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. The seller receives a lump sum payment, and the buyer assumes responsibility for paying future premiums and ultimately collects the death benefit.
How much more can I get from a life settlement vs. surrendering my policy?
According to 2025 LISA data, policyholders who sold through the secondary market received an average of 8.71 times more than they would have by surrendering directly to their carrier. The average payout per policy was over $212,000, with consumers collectively receiving $554.6 million more than surrender values.
Do I need to be terminally ill to qualify for a life settlement?
No. This is a common misconception. While life settlements originated as viatical settlements for terminally ill policyholders, the modern market serves a much broader range of circumstances. Policyholders of various ages and health statuses may qualify if the policy has sufficient face value and the premiums are becoming unaffordable or the coverage is no longer needed.
What types of life insurance policies can be sold in a life settlement?
Both whole life and universal life policies can typically be sold in a life settlement. Term life policies may also qualify if they are convertible. The eligibility depends on factors including the policy face value, the age and health of the insured, and the current cash value of the policy.
Is the life insurance industry financially stable in 2026?
Yes. AM Best’s Q1 2026 report shows bottom-line growth for the life and annuity industry despite a revenue decline. Major carriers maintain strong financial strength ratings, and reinsurance capital flows remain robust, as demonstrated by Fortitude Re’s $500 million FABN issuance.
How is AI changing life insurance underwriting?
AI is accelerating the underwriting process, enabling many applicants to skip medical exams entirely through accelerated underwriting programs. Carriers are scaling AI from experimental pilots to operational deployment, which means faster decisions, more personalized pricing, and improved customer experience for policyholders.
Related Resources
- AM Best Insurance Ratings Search — Verify your carrier’s financial strength
- NAIC Consumer Resources — Policyholder rights and regulatory information
- IRS Publication 525 — Tax implications of life insurance settlements
- Best Life Insurance Companies 2026 — Compare top-rated carriers
- How Life Insurance Works: Beginner’s Guide 2026
- Life Insurance News June 24 Evening: AM Best Q1 Financials
- Life Insurance News June 24 Afternoon: Q1 Underwriting Gains
- Contested Life Insurance Claims Guide
Ready to Compare Life Insurance Quotes?
Whether you are considering purchasing a new policy, exploring a life settlement for an existing one, or simply reviewing your coverage during the summer slowdown, now is an excellent time to take action. The life insurance market in 2026 offers more options than ever — from accelerated underwriting that skips the medical exam to competitive pricing driven by AI adoption. Compare the best life insurance companies of 2026 and find the right coverage for your family’s needs.
