Beginning January 1, 2020, any new life products issued must use the 2017 Commissioners Standard Ordinary (CSO) Table. To recognize changes in population, life expectancy, life insurance regulation requires an update of the standard mortality table used to calculate minimum cash values and death benefit requirements. This requirement applies to all life insurance carriers. Overall, the 2017 CSO products will have lower guideline premiums and/or lower 7-pay premiums, resulting in higher minimum death benefits and lower distributions.
As we approach the end of the year, you may want to offer your clients a 2001 CSO-based product, depending on their life insurance objectives. Please plan ahead – 2001 CSO products are unavailable after December 31, 2019, per regulatory requirements.
What to expect through the end of the year?
Carriers that are currently issuing life insurance products using the 2001 CSO mortality table, you can expect to see new product introductions throughout 2019 and into 2020 that meet the new regulatory requirements. Keep your eyes open for future notifications on carrier product retirements and new product introductions.