What must be included in all life insurance policy illustrations?

What must be included in all life insurance policy illustrations?

• A. Disclosure of non-guaranteed elements
• B. Return guarantees
• C. Signature of the state regulator
• D. Replacement option

Answer: (A)

Non-guaranteed elements are parts of a life insurance illustration that aren’t guaranteed by the insurer, such as projected interest credited, dividends, and cash value. In illustrations, those numbers must be disclosed as estimates and not guaranteed. This requirement helps consumers understand that the illustrated values can change with future experience and may not be achieved, preventing misleading impressions and ensuring a fair, transparent comparison between policies.

Non-guaranteed elements are parts of a life insurance illustration that aren’t guaranteed by the insurer, such as projected interest credited, dividends, and cash value. In illustrations, those numbers must be disclosed as estimates and not guaranteed. This requirement helps consumers understand that the illustrated values can change with future experience and may not be achieved, preventing misleading impressions and ensuring a fair, transparent comparison between policies.