What Policy Illustrations Do — and Don’t — Show
Pending compliance review · Last reviewed October 11, 2026
Short answer: An illustration is a hypothetical projection. It shows how a policy might perform under specific assumptions — not what will happen.
Guaranteed vs. non-guaranteed
Illustrations show guaranteed values (based on maximum charges and minimum crediting) and non-guaranteed values (based on current assumptions). Real results will differ.
Assumptions drive everything
Assumed crediting rates, charges, premium payments, and loan rates all shape the projection. Small changes over decades can make a large difference.
Questions to ask
What happens at a lower crediting rate? If I skip payments? If I take loans? At what point does the guaranteed column show a lapse?
Frequently asked questions
Can I trust the illustrated numbers?
Treat them as one possible scenario. Look at the guaranteed column and ask for illustrations at lower rates.
Related guides
Indexed universal life is life insurance, not a stock market investment. Illustrations are hypothetical and not guaranteed; caps, participation rates, and charges can change. Loans and withdrawals reduce values and may cause lapse and taxes. Guarantees depend on the issuing insurer’s claims-paying ability. Not tax or legal advice.