How to Interpret an Illustration

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Go to Page 7, 8 or 9 with the title Planning Concept Based on the 20xx Dividend Scale
Please note if your illustration states, “as illustrated, this policy becomes a modified contract in policy year xx”, you will want to stop funding the year prior.

Also, please be aware INFORCE ILLUSTRATIONS are only perfectly accurate 1 day of the year that is your policy anniversary date, so this information will not coincide precisely with your STATUS REPORTNON-GUARANTEED: Important columns to note starting from the right in this section

NET DEATH BENEFIT: Notice it typically rises each year

  • NET CASH VALUE: Notice this is “net”, (on the Status Report, we call it “gross)
  • CASH VALUE OF ALL ADDS: This is the cash value of the paid-up additions only
  • NET AFTER TAX OUTLAY: Notice the first year may be a partial year
  • NET PREMIUM: Notice the first year may be a partial year
  • END OF YEAR DIVIDEND*: Dollar figure the insurance added to your cash value. Please remember, once this dividend has been paid, it becomes a part of the Guaranteed cash value and will set a new floor, which is why we need to supply you with a new inforce illustration every year


  • BASE GUAR CASH VALUE: Remember, this is a guaranteed dollar figure, not an interest rate and it only goes up and it does so in two ways…the first way is the guaranteed increase and the second way is after the dividend gets paid*
  • BASE POLICY ANNUAL PREM This is your required premium (remember PUA’s are optional)

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