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

  • NAIC Illustration Working Group - last couple of years.  <Assurity White Paper> -  "Off Track"
  • Performance, results, projections, How is the policy doing?, coverage period, duration