New CSO Mortality Standard will Spur Increases in Life Insurance Premiums

Effective January 1, 2020, all life insurance products in the industry must shift to the 2017 Commissioners Standard Ordinary (CSO) mortality table— replacing the previously utilized 2001 standard. The CSO mortality tables are a standard for measuring average life expectancy across various demographics for the purpose of calculating life insurance reserves. Advancements in medicine, technology, lifestyle trends and more are continually impacting mortality rates, making periodic updates to the CSO table essential.

A recent article by InsuranceTechnologies highlights some of the key differences between the 2017 standard and the 2001 standard.

With an increased amount of available data and people generally living longer, life insurance pricing is undoubtedly going to be impacted by the new standard. Individuals can avoid the increases in life insurance premiums by purchasing a policy with an effective date starting in 2019 (and paying the initial premium). Talk to an RCM&D advisor to learn more about your life insurance and other insurance solutions.