2017 CSO Mortality Table

When all the carriers transition from the 2001 CSO Mortality Table to the 2017 CSO Mortality Table (by Jan 1, 2020), how will that impact in-force policies? If it does indeed impact in-force, then would carriers retroactively adjust COIs on issued policies or is it go-forward starting Jan 1, 2020?

I've seen lots of carriers (particularly term carriers) advertising a drop in premium rates because of the move from 2001 to 2017, although none of them have stepped out to say how much COIs are dropping. Frankly I've also heard that the new CSO is terrible for accumulation plays such as IULs.
 
When all the carriers transition from the 2001 CSO Mortality Table to the 2017 CSO Mortality Table (by Jan 1, 2020), how will that impact in-force policies? If it does indeed impact in-force, then would carriers retroactively adjust COIs on issued policies or is it go-forward starting Jan 1, 2020?

I've seen lots of carriers (particularly term carriers) advertising a drop in premium rates because of the move from 2001 to 2017, although none of them have stepped out to say how much COIs are dropping. Frankly I've also heard that the new CSO is terrible for accumulation plays such as IULs.
The older in force policies will still be under the old table.

I just got another notice today for IUL rate caps dropping .75% (National Life/LSW)
That makes the 3rd one in the last month or two announcing lowering cap rates.

And fwiw, the new illustrated max rate is 6.03. I never ran more than 6% anyhow. Push down much deeper and the illustration will look like a WL.
Companies that hold out the longest to change in this interest rate environment are probably trying to buy up some IUL market share.
 
I don't think the new CSO table will have an effect on charges at all. No company charges the maximum 2001 CSO table rates today (unless they are bankrupt).

Where it will have an effect on IULs is that the new CSO table will require more death benefit to meet MEC guidelines but it will not be a huge difference.

Midland has already rolled out their 2017 CSO IUL product and it looks almost exactly the same as the old one.
 
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