The Difference Between Guaranteed and Non-Guaranteed Values

Guaranteed elements are those the carrier must honor: minimum credited rates, maximum charges, and any contractual no-lapse provisions.

Non-guaranteed elements include dividends, current charges, caps, and participation rates. These may change.

A sound design is evaluated on both: what happens if everything goes as illustrated, and what happens if it does not.

This article is educational and general in nature. It is not legal, tax, accounting, or investment advice, and it is not a recommendation of any product or strategy. Policy features, riders, and availability vary by carrier and state, and coverage is subject to underwriting and carrier approval. Non-guaranteed values depend on credited interest, policy charges, funding, withdrawals, loans, and other policy activity.