Illustration Assumptions
The interest, dividend, charge, premium, loan, and other inputs used to project future policy values.
Why it matters
Small changes can materially alter the displayed cash value, premium duration, or lapse year.
Where you may see it
Illustration footnotes, ledger headings, in-force illustration request, and sensitivity tests.
What to verify
Guaranteed versus current basis, crediting rate, dividend scale, cost-of-insurance charges, loan treatment, and planned premiums.
Do not confuse it with
Guarantees, which are contractually stated and subject to required premiums and insurer claims-paying ability.
Read Illustration Assumptions in context
Start with the exact sentence where the term appears, then read the definition, schedule, and any referenced rider together. The practical concern is this: Small changes can materially alter the displayed cash value, premium duration, or lapse year. Locate the relevant records—illustration footnotes, ledger headings, in-force illustration request, and sensitivity tests.—and compare them with the issued contract rather than a sales summary.
Before signing, changing coverage, or making a claim decision, record the points that control the result: Guaranteed versus current basis, crediting rate, dividend scale, cost-of-insurance charges, loan treatment, and planned premiums. If another policy uses similar wording, do not assume it has the same effect.
Keep the dated page or form with your notes. If the definition changes the benefit, premium, ownership rights, or a deadline, ask the issuing insurer for a written explanation tied to the policy number.
Reliable places to check
- Your issued policy and application copy.
- NAIC consumer life insurance resources.
- Your state insurance department for licensing and consumer help.