What an IUL Illustration Does — and Does Not — Show

Illustrated values assume a constant credited rate, current charges, and uninterrupted premium payments. Actual experience varies on all three.

The guaranteed column shows what the carrier is contractually obligated to do. The non-guaranteed column shows what would happen if the stated assumptions held every year.

Useful evaluation compares the guaranteed column, several reduced-rate scenarios, and the sensitivity of the design to missed or reduced premiums.

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.