Illustrations as Roadmaps
This was an optional idea that we called "Illustrations As Road Maps."
- The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below what was illustrated.
- A letter would state the need to pay an additional amount to get back to what was illustrated, because interest rates are lower. This would have two advantages.
- First, it would keep people on track with their illustrations.
Second, it would help people understand the workings of their universal life policy."
-- John Keller
1991 - Illustrations - Society of Actuaries