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The life insurance industry is having its best run in years. New premiums climbed 10% year over year in early 2026, continuing a streak of record-setting sales. And yet, nearly half of all American adults, roughly 102 million people, remain uninsured or underinsured.

That paradox says something important about who the industry is reaching, and who it isn't.

The most common reason people go without coverage isn't indifference. It's a set of persistent misconceptions. The biggest one is cost. Research consistently shows that consumers overestimate life insurance premiums by three to six times the actual rates. A healthy 30-year-old can often purchase $500,000 in term coverage for less than $30 a month. Many people assume it's several times that.

A second misconception is that employer-provided coverage is enough. Group life insurance, which is typically one to two times your salary, is a valuable benefit, but it usually doesn't travel with you when you leave a job, and it rarely covers the full financial exposure of a family with a mortgage, dependents, and debt.

Then there's complexity. Term versus whole. Universal versus indexed. Riders and underwriting and health questions. Many people mean to figure it out "eventually" — and eventually keeps moving.

The cost of waiting is real. Life insurance premiums are tied to age and health. A policy purchased today will almost always cost less than the same policy purchased five years from now. A health change between now and then could affect eligibility entirely.

Record sales are good news for the industry. But they don't close the gap on their own. If you've been meaning to get covered or review whether your current coverage is adequate, the best time to act is before circumstances make the decision for you.

There's a financial risk built into ACA Marketplace coverage that most enrollees don't fully understand, and a 2026 rule change just made it significantly larger.

Here's how it works: when you enroll in a Marketplace plan and receive advance premium tax credits, the government bases your subsidy on your estimated annual income. At tax time, it reconciles your estimate against what you actually earned. If your income came in higher than expected, you repay the difference.

Under the rules that existed before 2026, repayment amounts were capped for lower-income enrollees, providing a safety net for people with unpredictable earnings. The One Big Beautiful Bill Act, enacted in 2025, eliminated those caps. Starting with the 2026 plan year, there is no ceiling on how much you may owe back, regardless of income level.

This change hits hardest for people with variable income: freelancers, gig workers, small business owners, part-time employees, or anyone who experiences a mid-year raise, a new job, or a change in household size. A good year financially can translate into an unexpected tax bill.

The good news is that this risk is manageable with awareness and a few practical habits. Report income changes to your Marketplace as soon as they happen — you can adjust your advance credit amount at any time. When in doubt, estimate your income slightly higher at enrollment: a smaller credit now means a refund at tax time rather than a debt. And if your income is complex or variable, it's worth talking to both a tax professional and a licensed insurance agent before you enroll.

The advance premium tax credit is still one of the most powerful tools in the ACA. Used carefully, it keeps coverage affordable. However, if you don't keep your income updated in the Marketplace, it can come with a costly surprise.