Figures showing projected costs and/or returns from various packaged products in a format determined by the regulator.
As defined by the National Association of Insurance Commissioners (NAIC) Life Insurance Illustrations Model Regulation in the United States, a life insurance sales presentation or depiction that portrays nonguaranteed values of a life insurance policy, portrays these values over a period of years, and is shown to a potential customer.
A document used to show a life insurance policy's guaranteed and (non-guaranteed) future values, including cash values and death benefits, based on certain assumptions. An illustration is an example of how the policy could perform in a given set of circumstances. It can provide you with valuable information about a policy's potential. However, it is neither an estimate or guarantee of future results and should not be construed as a prediction of policy performance.