Ohioans are living longer and because of this, the Ohio Department of Insurance adopted a new rule that is expected to lower life insurance rates, state Insurance Director Ann Womer Benjamin said last week.

The rule updates mortality tables, which estimate life expectancy and are the basis for determining the liquid reserves that insurance companies hold against future death claims.

Companies may choose to start using the new mortality tables on or after Jan. 1 and must fully implement the tables by Jan. 1, 2009, said Robert Denhard, department communications manager. Policies written on or before Dec. 31 won't be affected.

The mortality tables, which determine current rates, were last updated in 1980. The tables are usually updated every 20 to 22 years.

"Ohioans are living longer and staying healthier well into their later years, causing current standards to be outdated," Womer Benjamin said. "A change in regulation was needed to bring the tables more in line with current life expectancies and adjust costs downward for consumers."

Ohio adopted the National Association of Insurance Commissioners model regulation, which is based on the 2001 mortality tables. The life expectancy of males has risen from age 70 to 74 and from age 77 to 79 for females.

Rates for term-insurance policies are expected to drop as much as 30 percent, while other policies such as whole life insurance are expected to decrease as well.

Virginia Ottenberg, insurance agent and owner of Allstate on Main Street, Hubbard, said the majority of area customers probably won't see a major change in savings after the rules go into effect.

"We're not talking whopping, huge swings of price," she said. "The average consumer really won't notice the difference."

Ms. Ottenberg said a policy written "when our grandfathers were 20 years old ... the price they paid is very different from what a 20-year-old man would pay today" because the life expectancy was much different then.

"We don't die as easily anymore," she said.

Ms. Ottenberg said she doesn't know when her agency will implement the new rule.

Denhard said he views the situation as being beneficial not only to consumers but also to insurance companies.

"It is a good situation for insurance companies and consumers," he said. "It's a win-win situation. Insurance companies can lower their reserves and hopefully consumers can save money on their premiums."