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The TOLI Group Newsletter:
Policy Illustrations, What Are They Good For? |
The Policy Illustration: A Projection, Not Always A Guarantee
When making the decision to purchase a life insurance policy, a crucial piece of information is the policy illustration. The illustration attempts to answer the question "How will this policy perform if I purchase it?" But this isn't easy. How the policy will perform can depend on many variables such as how the insurance company manages its investments, the insurance company's projections of its future expenses, and changing mortality rates. Factors such as these can make the illustration a 'best guess' at how the policy will perform in the months and years following the sale of the contract.
Illustrations contain several tables listing death benefit amounts, surrender charges, policy values and projections of how the policy will perform assuming various interest rates. When evaluating the illustration, it is important to consider what factors and assumptions went into producing the tables, the strength and reliability of the insurance company providing the illustration, and any factors which are guaranteed in the illustration.
Once a policy is purchased, requesting an in-force illustration is the best way to see how the policy is actually performing. At The TOLI Group we automatically request and review the in-force illustration for our clients annually. We not only understand that life insurance is an asset that requires management- we provide the expertise needed to manage it. |
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We Have Moved!
As of May 1st, 2010 our new address is:
2035 Crocker Rd. Ste. 103
Westlake, OH 44145
Phone, fax and email all remain the same. |
