Empire State offiicials say life insurers should take care when designing a whole life insurance product with no maturity age.
The New York State Insurance Department has commented on the issue in a new batch of filing guidance.
The New York department already has discussed the issue of individual universal life policies without expiration or maturity ages in the individual universal life product outline.
In the whole life sector, both new and existing policies without expiration ages should become paid-up at some point, officials write in the new batch of guidance.
The paid-up age should not be “later than the last age in the mortality table that underlies the nonforfeiture values,” officials write.