What Must—and What Doesn't—Appear on a Life Insurance Policy Illustration?

What Is a Life Insurance Policy Illustration?

A policy illustration is a detailed snapshot of what your life insurance policy will look like over time. It shows projected cash values, death benefits, and potential fees based on your current terms and future assumptions.

Required Information on Every Illustration

Regulated by the Department of Insurance and the SEC, every illustration must contain specific data to protect consumers. The core elements are:

• Policy Identification – Policy number, type, and effective date.
• Death Benefit Amount – The amount that will be paid upon the insured's death.
• Premium Schedule – Current and projected future premium amounts.
• Cash Value Projections – Expected growth of the policy's cash value, if applicable.
• Projected Fees and Expenses – Including policy fees, commissions, and surrender charges.
• Assumptions Used – Interest rate, mortality, and expense assumptions.
• Disclaimers – Statements that the illustration is not a guarantee.

Optional or Not Required Items

While many elements are helpful for understanding your policy, they are not mandatory on every illustration. These include:

• Detailed Rider Descriptions – Extra benefits like accelerated death benefits or waiver of premium riders may be listed but are not required.
• Historical Premium Payment History – Past payments are useful for context but not compulsory.
• Comparative Market Data – Benchmarks against other policies or market averages are optional.
• Graphic Charts – Visual representations (e.g., line graphs) may appear but are not required.

Which Item Does NOT HAVE TO BE INCLUDED?

Among the options often seen, the **historical premium payment history** is the one that insurers are not required to provide on a policy illustration. The regulation focuses on future projections and current terms, not past payment records.

Why Historical Premiums Are Optional

Because premium payments vary by policyholder and can change over time, insurers are not mandated to include a detailed payment history on the illustration. They can, however, supply this information upon request.

How to Request Missing Information

1. Contact your insurer's customer service.

1. Ask for a copy of your premium payment history or any rider details you wish to see.
2. Review the documentation to ensure your policy matches the illustration.

   Quick Reference Table

   Item	Required?	Why It Matters
   Policy Identification	Yes	Identifies the exact contract.
   Death Benefit Amount	Yes	Primary value of coverage.
   Premium Schedule	Yes	Shows cost over time.
   Cash Value Projections	Yes	Important for whole life plans.
   Projected Fees & Expenses	Yes	Transparency on costs.
   Assumptions Used	Yes	Basis for projections.
   Historical Premium Payments	No	Optional; not mandated.