When a life insurance illustration includes nonguaranteed values, which statement is accurate?

• A. The illustration may vary based on actual results and premium payments may resume.
• B. The illustration guarantees future results
• C. Nonguaranteed values guarantee no impact on premiums
• D. The illustration can be used as a promise of results

Answer: (A)

Nonguaranteed values shown in a life insurance illustration are not guaranteed; they’re based on assumptions about things like credited interest, dividends, and expenses. Because actual results can differ from those assumptions, the illustrated figures can change in real life. The statement that premiums may resume reflects that these values depend on continuing premium payments and actual experience, not on a guaranteed outcome. The other options imply guarantees or promises of results, which nonguaranteed values do not provide.