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Old 12-12-2017, 05:01 PM
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Default Valuation Interest Rate for Term Life

Publications such as https://www.willistowerswatson.com/-...portFINAL1.pdf list all sorts of valuation interest rates...whole life, spda, spia...

What about Term life? Is that covered in Appendix 1? "Life Insurance Products - Guarantee duration of n years or less"? ...where n is the term of the life insurance...
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Old 12-12-2017, 05:21 PM
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Publications such as https://www.willistowerswatson.com/-...portFINAL1.pdf list all sorts of valuation interest rates...whole life, spda, spia...

What about Term life? Is that covered in Appendix 1? "Life Insurance Products - Guarantee duration of n years or less"? ...where n is the term of the life insurance...
Are you using PBR or not?
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Old 12-12-2017, 05:53 PM
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Are you using PBR or not?
not yet...but it looks like eventually.
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Old 12-12-2017, 06:57 PM
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not yet...but it looks like eventually.
Then check your state laws, but I imagine it'll be a similar definition to the SVL.

That said, if the product is structured with a x-year level-premium policy, with continuing ART, then I would think it's still considered a whole life product.
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Old 12-12-2017, 09:19 PM
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The correct "n" is the duration of the life insurance (not the level premium period, not the guaranteed premium period). You should assume policyholder can/will continue to renew to expiry. Check out the definition of Guarantee Duration for Life Insurance on the upper left hand corner of page 43 of your linked attachment.
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