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Help Understanding Your IUL Illustration
An illustration is a projection built on current assumptions, not a promise -- knowing which numbers are guaranteed and which aren't changes how you should read it.
If you already have an IUL illustration in hand, the most useful thing you can do before relying on it is understand which numbers are contractually guaranteed and which are projections based on assumptions that can change. This page explains what to look for -- it does not interpret your specific illustration.
Guaranteed vs. non-guaranteed columns are the most important thing on the page
Every compliant IUL illustration shows a guaranteed column (based on contractual minimums -- typically the least favorable outcome) alongside a non-guaranteed, current-assumption column (based on today's caps, participation rates, and charges, projected forward as if they never change). The non-guaranteed column is not a promise of what will actually happen.
Ask what assumed rate is being used, and how it compares to history
The non-guaranteed projection uses an assumed average crediting rate. It's worth asking what that rate is, how it was chosen, and how it compares to the product's actual historical crediting -- a rate that looks reasonable in isolation may or may not reflect what the product has actually delivered.
Check what happens to caps and participation rates over the projection
Illustrations often hold current caps and participation rates constant for the full projection period, even though insurers can and do adjust them over time. Ask whether the illustration reflects any assumed future changes, and what has actually happened to this product's caps and rates historically.
Look at the guaranteed column's outcome, not just the illustrated one
The guaranteed column shows what the policy is contractually required to deliver at minimum -- in many illustrations, this column shows the policy lapsing well before the non-guaranteed column does. That gap is real information worth understanding, not a worst-case scenario to ignore.
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Common questions
Can you review my specific illustration and tell me if it's good?
This page explains what to generally look for, but interpreting your specific illustration -- its assumptions, your goals, and how it compares to alternatives -- is exactly the kind of thing to go over directly with a licensed agent, rather than something a general page can determine.
Why does my illustration show two very different outcomes?
Because it's required to show both a guaranteed column (the contractual minimum) and a non-guaranteed column (a projection based on current, changeable assumptions). The gap between them reflects real uncertainty in the non-guaranteed projection, not an error.
If the non-guaranteed column looks good, can I count on it?
Not as a guarantee -- it depends on caps, participation rates, and charges staying at least as favorable as assumed, which the insurer is not obligated to maintain. It's one projection among the range of outcomes the guaranteed and non-guaranteed columns bracket.
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Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.