VIDA PROTEGIDAUnderstand IUL illustrations, guaranteed and non-guaranteed columns, loan assumptions and NAIC AG 49-A. Real contract terms control. This is neither individual advice nor a quote.
What an illustration is—and is not
An illustration depicts potential policy values under specified assumptions; it is neither an investment contract nor a promise of future interest. NAIC guidance covers indexed-life illustrations, including AG 49-A for relevant policies sold since December 2020 and updated consumer disclosures in 2026.
The issued policy and riders determine legal rights. Never decide on the basis of an eye-catching value in policy year 25.
Find the four columns
Locate cumulative premiums, death benefit, account value and cash surrender value. Distinguish guaranteed values based on contractual minimums/maximum charges from non-guaranteed illustrated values using current assumptions.
Guaranteed minimums are not forecasts of the most likely outcome, and current illustrated assumptions are not guarantees. Surrender values can be low in early years even if account value is positive.
Validate the funding design
Check insured age, permitted rating factors, health/risk class, coverage, planned premium, pay frequency, duration, level or increasing death-benefit option and riders. A change in any assumption deserves a revised illustration.
An illustration with $400 monthly premiums for 15 years and zero afterward does not establish that premiums can safely stop in year 16; future credits, charges and policy value determine that.
Ask the uncomfortable questions
Request lower-crediting and guaranteed-basis scenarios. Ask about potential lapse, corrective premiums, surrender values in years 1, 5 and 10, and what a policy loan does to net value.
For retirement-loan illustrations, identify timing, loan type, interest rate and what happens if the contract terminates while debt is outstanding.
Use AG 49-A appropriately
AG 49-A limits what can be illustrated for covered products; it does not certify suitability or guarantee a result. Check the NAIC source and your state's implementing rules.
Keep signed illustrations, assumptions, applications and rider documents. Compare with coverage-focused alternatives before chasing accumulation projections.
Put this into practice
- Request the actual policy, expense schedule and up-to-date illustration from the insurer.
- Compare guaranteed and non-guaranteed outcomes with an alternative covering the same need.
- Keep written questions and answers; seek independent professional review of tax or legal effects.
Read both across and down the illustration
Across each policy year, compare premiums, projected deductions, account value, cash surrender value, and death benefit. Then follow each column through time. If the illustration shows $80,000 account value but $68,000 surrender value, ask what creates the difference. For future income shown through loans, inspect outstanding loan balances and the resulting policy value.
The illustration is not the contract and nonguaranteed values are not promises. Identify both guaranteed and current-assumption columns. Check whether projected distributions assume additional premiums and what happens when those premiums stop.
Stress tests worth requesting
Ask for a scenario with lower index credits for an extended period, another with interrupted premiums, and another with larger loans or higher loan charges. Note the first year additional funding may be needed or the death benefit becomes stressed. Review guaranteed columns even if they appear very conservative.
Illustration regulations such as AG 49-A constrain how certain indexed products are presented; they do not certify that a projected rate will occur. Contractual guarantees and official carrier documents govern actual rights.
Meeting checklist
Have the agent identify what is guaranteed versus adjustable, what assumptions support an illustrated income stream, the age through which coverage is projected, and surrender costs. Ask for a comparable term-life protection quote to make costs and the insurance objective explicit.
Retain the actual illustration associated with your application and verify the riders and death-benefit options match what you intend to purchase.
Primary sources and references
- NAIC · Life Insurance Illustrations / AG 49-A
- NAIC · Life Insurance Buyer’s Guide
- Editorial and corrections policy
These are legal/regulatory references; your policy and applicable state rules govern individual circumstances.
Local educational scenarios without collecting your entries or contact details.
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Educational content; not individualized advice or a certified professional review.