As of 1/1/2020, all U.S. life insurance carriers were required to transition their life insurance products to the 2017 Commissioners Standard Ordinary Mortality tables (CSO) and hold reserves calculated in compliance with the Principle-Based Reserving (PBR) regulation.
Life Step UL
To ensure compliance with the changes to the 2017 CSO and PBR, a new version of Life Step UL is now available.
- The pricing for Life Step has increased by about 10% under the new version of the product for most scenarios.
- Any Life Step policy that is issued beginning 1/1/2020 will be issued under the new policy form including backdated policies to save age.
- There has been no change to the Life Step application. We will not require a new application if the application was completed previously.
- The commission structure has changed for term conversions applied for within the second half of the conversion eligibility period. The total compensation will be paid out evenly over 10 years, rather than the majority in Year 1.
- The product is available in all states, except for California and Delaware (pending approval).
- All product specifications can be found here.
OPTerm 10, 15, 20, 25, 30, 35, and 40
- On 1/1/2020, the post-level term premium rates changed. The level premium rates were not affected by the transition to the 2017 CSO.
- Policies printed/sent on or after 1/1/2020, including any policies that are backdated to 2019 or reissued in 2020, will be subject to the 2017 CSO table, and will receive the new PLT premium scale. This includes policies reissued for a current date in 2020.