As volatility, inflation and geopolitical tension continue to shape household decision-making, consumers are becoming more cautious but not disengaged, recalibrating how they approach long-term financial planning.
Matt Berman, CEO of Foresters Financial, says consumers are entering 2026 caught between uncertainty and a continued belief in long-term financial protection — a tension that is shaping how they approach planning, insurance, and retirement readiness.
He tells InvestmentNews that the push and pull is evident in both sentiment and behavior.
“Consumers are navigating real crosscurrents,” Berman says. “On one hand, there’s heightened uncertainty; geopolitical tensions, market volatility, and rising costs all influence household sentiment. That uncertainty naturally triggers emotional responses, including a tendency to hold cash or delay long-term decisions.”
But despite that caution, underlying demand for protection remains intact.
“At the same time, what we’re seeing in market activity and sales trends suggests that consumers still recognize the value of protection, savings, and long-term planning,” he says. “They understand the importance of stability, tax-advantaged growth, and working with trusted financial institutions, particularly in Canada and the US, where the financial services sector remains strong.”
"So, while short-term behavior may fluctuate, the underlying attitude toward financial protection remains positive,” Berman adds. “The key is helping consumers move past emotional reactions and make thoughtful, long-term decisions that balance security with opportunity.”
Against that backdrop, life insurance is taking on a broader role within financial planning — far beyond its traditional function.
“Life insurance plays a far more multidimensional role than many people realize,” Berman says.
“At its most basic level, it provides income protection, ensuring families are financially secure if a primary earner passes away. Beyond that, permanent life insurance can support tax-advantaged growth, supplemental retirement income, and effective estate planning, including managing estate taxes and preserving generational wealth.”
He frames this within a wider view of financial wellness.
“At Foresters, we see financial wellness as part of a broader, holistic approach,” Berman says. “Life insurance, when thoughtfully positioned, becomes part of a comprehensive strategy that supports long-term financial security and overall well-being.”
That broader positioning is helping drive demand for products that blend protection with accumulation or income features, particularly for products that offer tax-deferred cash value growth and guaranteed income features, Berman says, pointing to market dynamics as a key driver.
“Despite temporary disruptions, equity markets have historically been resilient, and consumers want to participate in market upside but with protection against downside risk,” he explains. “Products like permanent life insurance and fixed annuities help address that need by combining growth potential with stability and guarantees.”
“In the US especially, increasingly sophisticated financial markets have enabled insurers to design innovative products that balance participation and protection,” Berman adds. “Consumers are looking for ways to take proportionate risk while maintaining financial security, and these hybrid products are well suited to that mindset.”
Even as products evolve, Berman emphasizes that advisors continue to play a critical role in helping close protection gaps.
“Life insurance is often sold, not bought and advisors play a critical role in helping families understand its value,” he says.
That places pressure on insurers to simplify processes and improve the advisor experience.
“Insurance companies are increasingly focused on making advisors’ jobs easier by simplifying products, streamlining digital processes, and improving speed from application to decision to policy issue,” Berman explains. “When advisors can spend less time navigating complexity and more time educating clients, everyone benefits.”
Advisors are also reshaping how clients perceive insurance.
“Advisors also help reframe life insurance away from outdated perceptions,” he says. “It’s not just about death, it’s about efficient wealth management, tax advantages, and long-term financial resilience.”
“When insurers equip advisors with clear narratives, strong tools, and seamless experiences, we collectively help close the protection gap while delivering real social good.”
However, rising living costs are complicating those efforts, particularly for middle-market households.
“Rising living costs disproportionately affect middle-market households, and during periods of inflation, protection and savings products can feel discretionary,” Berman says.
Recent history offers a clear example.
“We’ve seen this before, most recently following COVID, where fear initially drives demand, but economic pressure later leads some consumers to defer purchases or even lapse policies in favor of immediate needs like housing and food.”
That makes education more critical than ever.
“The challenge is helping consumers see protection not as a luxury, but as a foundational component of financial stability, especially during uncertain times,” he adds.
At the same time, technology, particularly AI, is reshaping how consumers interact with financial services.
“Technology is a powerful enabler,” Berman says. “Digital tools and AI are improving speed, efficiency, and accessibility, from faster underwriting decisions to smoother end-to-end experiences.”
Consumers are generally open to those advancements, he notes, but with limits.
“Consumers are generally comfortable with AI working behind the scenes to improve outcomes, as long as it enhances convenience and accuracy,” he says. “Where trust becomes critical is at the point of advice.”
“Today, most consumers still want reassurance that a human is involved, particularly when making significant financial decisions.”
That hybrid model is likely to persist.
“AI will continue to evolve, and over time it may play a more visible role,” Berman says. “But trust remains the foundation. For now, the most effective model combines advanced technology with human judgment and accountability.”
Looking ahead, Berman believes the industry’s biggest opportunity lies not in product innovation, but in how it communicates.
“The answer is surprisingly simple: better communication,” he says.
“As an industry, we often rely on technical language and jargon that doesn’t resonate with everyday consumers. Terms like ‘death benefit’ or ‘tax-efficient accumulation’ may be accurate, but they’re not engaging or intuitive.”
“If we do a better job speaking plainly and clearly explaining how financial products improve people’s lives, we can help close the protection gap and improve long-term outcomes,” Berman adds. “Clear, human communication builds understanding, trust, and ultimately better financial decisions.”
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