Life insurance illustration refers to the document that contains comprehensive information about a life insurance policy. Information includes the coverage, benefits, and the payment scheme. The illustration is not to be confused with the actual policy itself.
The life insurance illustration works as a guide or a literature for an interested party to study before buying a policy. The monetary figures listed in their timeline are either guaranteed or non-guaranteed. The guaranteed ones are those the insured will certainly pay or receive. The non-guaranteed figures are those dependent on the general economy or the financial standing of the insurance company in the future.
It is advised that aside from understanding the contents of the life insurance illustration, a potential policyholder should also consult a Ratings Agency that evaluates the performances of insurance companies.
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