Life Insurance Policy Illustrations
Your policy may provide for dividends to be paid to you as either cash or paid-up insurance, or credits that could increase your cash value and death benefit or reduce your premium. Dividends and credits are not guaranteed.
Your costs or benefits could be higher or lower than those in the illustration, because they depend on the future financial results of the insurance company. However, when interest rates are guaranteed, the company will honor them regardless of its financial success.
Remember, a policy illustration is not a legal document, like a contract. Legal obligations are spelled out in the policy
What else should I look for in a policy
Is it based on recent experience?
Is the classification shown appropriate for me (i.e.,
When are premiums due -- annually, monthly or
Which amounts are guaranteed and which are not?
Will I be notified if the non-guaranteed amounts
Does the policy have a guaranteed death benefit, or
could the death benefit change depending on interest rates or other
Does the policy pay dividends or provide for interest
credits? Are those figures incorporated into the illustration?
Will my premiums always be the same?
Could the premium
increase significantly if future interest rates are lower than the illustration
If the illustration shows that I will not have to make
premium payments after a certain period of time, is there any chance I would
have to resume payments in the future?
Is the premium level sufficient to guarantee protection
for my entire life?