Which statement about life insurance illustrations is true?

Which statement about life insurance illustrations is true?

• A. Illustrations are non-guaranteed depictions of potential performance.
• B. Illustrations guarantee future values.
• C. Illustrations are binding contracts.
• D. Illustrations are required to be identical for all applicants.

Answer: (C)

Illustrations in life insurance are tools to show how a policy might perform under specific assumptions, but those numbers aren’t guarantees. They depict potential future values and benefits based on assumed interest credits, premium payments, charges, and other factors, yet these assumptions may not come to pass. Because of that, illustrations are not binding contracts and they do not promise exact outcomes. They also aren’t created to be identical for every applicant; they vary with factors like age, health, and the particular product and riders chosen. So the true statement is that illustrations are non-guaranteed depictions of potential performance. They’re helpful for understanding what could happen, but actual results can differ from what’s shown.

Illustrations in life insurance are tools to show how a policy might perform under specific assumptions, but those numbers aren’t guarantees. They depict potential future values and benefits based on assumed interest credits, premium payments, charges, and other factors, yet these assumptions may not come to pass. Because of that, illustrations are not binding contracts and they do not promise exact outcomes. They also aren’t created to be identical for every applicant; they vary with factors like age, health, and the particular product and riders chosen.

So the true statement is that illustrations are non-guaranteed depictions of potential performance. They’re helpful for understanding what could happen, but actual results can differ from what’s shown.