Hidden In Stimulus Bill: A Win For Whole Life Insurers

January 27, 2021 by Press Release

Beginning this month, life insurers will start redesigning permanent life insurance products as a result of new calculations enacted via the Consolidated Appropriations Act, 2021 (H.R. 133), Moody’s Investors Service reported.

Although the CAA was largely a spending and stimulus relief bill, it also contained a provision that changed the determination of a minimum interest rate used in certain tax-related calculations for life insurance contracts. The determination of the new rate, which had not been updated since 1984, was changed to reflect the current lower interest rate environment.

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Originally Posted at ThinkAdvisor on January 26, 2021 by Press Release.