CAA 2021 Gives Life Insurers Interest Rate Flexibility
December 30, 2020 by Allison Bell
The big new federal spending package will change the math inside U.S. life insurance policies.
The change will slash a key interest rate used in creating life insurance policies to 2% for 2021, from 4% today, and to a variable rate after 2021.
The rate change will increase reserve levels and cash value levels for new life policies, according to Griffith, Ballard & Company.