On December 16, 2019, rate adjustments for PL Promise Term, a product specifically designed to serve the death benefit protection needs of the broad market consumer (household incomes of $50K to $250K), go into effect to accommodate the 2017 Commissioners’ Standard Ordinary (CSO) Mortality Table. With this transition, PL Promise Term will also change to Principle-Based Reserving (PBR).

Our commitment to providing affordable life insurance coverage for everyday consumers remains strong; we aim to make the 2017 CSO transition as easy as possible.

Targeted “Sweet Spots”

  • Top 3 pricing for Select No Nicotine Use (SLNN) risk class
  • Top 3 pricing for term duration 25 – male/female, all ages
  • Top 3 pricing for lower face amounts ($50K to $100K) – all term durations, male/female, all ages
  • Strong competitive positioning for all preferred risk classes (PBNN, PNN, SLNN) – all term durations, male/female

Competitive Strengths

  • Substandard pricing (+20% per table versus the traditional +25%)
  • Monthly Premium mode (monthly premiums)
  • eCapabilities and digital solutions resulting in shorter cycle times and higher placement rates
  • PL Smooth Sailing fluidless underwriting program for ages 50-69. Contact your PL representative for details

Special Transition Rules

  • A 60-day transition period is provided for any applications pending as of December 16, 2019, and issued during the transition period (see chart below for details).
  • Any policy whose issue date is on or after January 1, 2020, is subject to the 2017 CSO and PBR regardless of backdates or reissues. Policies do not need to be delivered by January 1, 2020.

Transition Period

By January 1, 2020, all U.S. life insurance carriers must only offer life insurance products that are built using the 2017 Commissioners’ Standard Ordinary (CSO) Mortality Table. With the transition to 2017 CSO, PL Promise Term will also be transitioned to Principle-Based Reserving (PBR). To accommodate the 2017 CSO and PBR transition, special transition rules will be used depending on when the application is received (see chart below for details.)

States Dates Details

All states except NY

December 16, 2019, through February 13, 2020

  • A 60-day transition period is provided for any applications pending prior to December 16, 2019, to receive the lower of the prior and new PL Promise Term rates.

December 16, 2019 through January 1, 2020

  • For new applications with an application-received date on or after December 16, 2019, the new December 16 rates apply.
  • However, if these applications are issued prior to January 1, 2020, they will also receive the lower of the prior and new PL Promise Term rates

February 14, 2020

  • Starting February 14, 2020, all new and pending applications regardless of application-received date will receive the new PL Promise Term rates.
  • No exception requests will be granted on or after February 14, 2020.

Inforce Business

  • For inforce business, reissues will not be made.

Corporate Headquarters:
604 Harper Avenue, Jenkintown, PA 19046 | P: 800.543.5555 / 215.517.4080 | F: 800.343.0804 / 215.517.4087

Miami Office:
3470 NW 82nd Avenue, Suite #670, Doral, FL 33122 | P: 800.683.3077 / 305.908.6700 | F: 800.343.0804

Securities offered through The Leaders Group, Inc. Member FINRA/SIPC 26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120, 303-797-9080.

GBS Insurance and Financial Services, Inc. is not affiliated with The Leaders Group, Inc. You may check the background of investment professionals on FINRA Broker Check

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