The Brief · Issue 2
Week of 12 October 2026 — a 3.6% Social Security raise and Virginia halts Atlantic Coast Life
Social Security sets a 3.6% COLA for 2027, Virginia halts new Atlantic Coast Life sales, TruStage claims stall after a cyberattack, Fidelity Life is upgraded.
Compiled on 24 October 2026 for The Brief's launch archive, from sources published between 12 and 18 October 2026.
Four stories that mattered
Social Security benefits will rise 3.6% in 2027
The Social Security Administration announced on 14 October 2026 that benefits will rise 3.6% in January 2027. The estimated average retired-worker benefit goes from $2,095 to $2,170 a month, and the average for an aged couple both receiving benefits goes from $3,238 to $3,355. The maximum earnings subject to Social Security tax rises to $192,300 in 2027 from $184,500 in 2026. Notices will appear in online Social Security accounts starting in late November.
Survivor benefits rise by the same percentage, so a family's projected Social Security income after a death is slightly higher. Most fixed annuity payments and life insurance death benefits do not adjust for inflation at all. If you sized your coverage years ago, inflation has eroded what it buys.
Virginia stops Atlantic Coast Life from writing new business
Virginia's State Corporation Commission approved a settlement under which Atlantic Coast Life Insurance Co. will stop writing new business in the state from 1 November 2026, InsuranceNewsNet reported on 16 October. The Bureau of Insurance alleged that the company's financial filings showed a hazardous financial condition, which the company neither admitted nor denied. Atlantic Coast must keep paying claims and servicing existing Virginia policies, and may still renew guaranteed renewable and noncancellable policies. Virginia is the third state to act. Florida suspended the company's certificate of authority effective 30 September, and South Carolina regulators have petitioned to place it into rehabilitation. Separately, Bloomberg reported that Oaktree is no longer pursuing a planned deal for the insurer.
If you own an Atlantic Coast annuity, the order does not cancel your contract. Keep paying premiums on any policy you still need, keep your statements, and learn how your state's guaranty association limits work before making a move that triggers surrender charges.
Source: InsuranceNewsNet, Virginia orders Atlantic Coast Life to halt new business Nov. 1, 16 October 2026
TruStage death claims are stalling after a cyberattack
CBS News Chicago reported on 15 October 2026 that a Chicago woman had waited more than 80 days for her late father's TruStage life insurance payout. The company kept withdrawing his premiums after he died and has said it will reimburse them. TruStage said a cyberattack "significantly disrupted our digital systems" and its ability to process claims. The Illinois Department of Insurance said it had received 14 consumer complaints about TruStage claims since 11 July 2026 and had granted no extensions to statutory deadlines because of the attack.
If you are waiting on a claim from any insurer, write down every call and date, and ask in writing for premium drafts to stop. If the insurer misses your state's deadlines, file a complaint with your state insurance department. Many states also require interest on death benefits paid late.
A $1.1 million settlement over teachers' 403(b) annuity rider fees
Life Insurance Company of the Southwest has proposed a $1.1 million settlement of a class action in the U.S. District Court for the Northern District of California, InsuranceNewsNet reported on 12 October 2026. The suit alleges that the insurer charged fees for Guaranteed Life Income Riders on indexed 403(b) annuities that differed from the fees disclosed on 403bCompare.com, California's state-sponsored comparison site. About $3 million in fees is disputed, and the settlement would recover about 36.6% of the potential restitution. The court still has to grant preliminary approval, and class counsel may request up to one-third of the fund in fees.
Teachers and other public employees with 403(b) annuities should compare the rider charge in their contract and annual statement with what they were shown at sale. Rider fees are charged every year, so a small mismatch adds up over a long career.
Ratings and deals
- AM Best revised the outlooks for Oxford Life Insurance Co. and subsidiary Christian Fidelity Life to stable from negative on 13 October 2026, affirming a Financial Strength Rating of A (Excellent). Source: AM Best via Business Wire, AM Best Revises Outlooks to Stable for Oxford Life Insurance Company and Its Subsidiary, 13 October 2026
- AM Best affirmed the A+ (Superior) Financial Strength Ratings of Aflac's insurers, including American Family Life Assurance Company of Columbus and Aflac Life Insurance Japan, with stable outlooks, on 14 October 2026. Source: AM Best via Business Wire, AM Best Affirms Credit Ratings of Aflac Incorporated and Its Subsidiaries, 14 October 2026
- Aegon completed the exchange of all Common Shares B held by Vereniging Aegon Americas for common shares at 40 to 1 on 15 October 2026, leaving a single class of shares ahead of its move to the U.S. Source: Aegon via GlobeNewswire, Aegon completes exchange of all Common Shares B for common stock, 15 October 2026
- AM Best upgraded Fidelity Life (Fidelity Life Association) to a Financial Strength Rating of A (Excellent) from A- on 16 October 2026, with a stable outlook, rating it as a member of IA American Life Group. Source: AM Best via Business Wire, AM Best Upgrades Credit Ratings of Fidelity Life Association, 16 October 2026
One guide to read
Atlantic Coast Life now faces restrictions in Florida and Virginia and a rehabilitation petition in South Carolina. Our guide to what happens if your life insurance company fails covers what rehabilitation and liquidation mean, how state guaranty associations step in and up to what limits, and why surrendering early can cost more than waiting.
One number
40% — the share of pre-retirees who work with a financial professional, from LIMRA's 2026 Retirement Income Readiness Report, released 13 October 2026. LIMRA surveyed 486 pre-retirees, U.S. workers aged 45 and over who plan to retire within 10 years. Of those working with a professional, 77% felt highly prepared, against 47% of those without one.
The survey is self-reported, so it shows how prepared people feel rather than how prepared they are. It also found 74% want to learn more about protected lifetime income.
Source: LIMRA, Only 40% of Pre-Retirees Are Working with a Financial Professional, 13 October 2026