Why is Now a Good Time to Review Your Life Insurance Portfolio – Part 1

Product Pricing and Evolution
When it comes to pricing, life insurance products that are being issued today are in large part taking into account the 2001 CSO mortality table. The most widely used mortality table prior to the 2001 CSO mortality table was the 1980 CSO mortality table. As you can imagine, improvements in technology and medicine were significant over that 21 year period and as a result life insurance carriers assume clients will live longer and that assumption is built into lower annual pricing assumptions.

Additionally, thanks to improved technology and population mortality, life insurance carriers began issuing policies priced to age 120 and with language guaranteeing that as long as a certain premium is paid the carrier will guarantee coverage until the day the insured passes away, even if that turns out to be age 130, and even if there is $0 cash value in the policy. This is a significant departure from many of the life insurance policies in existence today.

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