What must a life insurance illustration disclose regarding future premiums?

A life insurance illustration must disclose that future premiums may require resumption of payments based on actual results. This is particularly important because life insurance policies often use assumptions regarding interest rates, mortality rates, and expenses when projecting future premiums. These assumptions can change, meaning that if the policy performs differently than projected (for example, lower-than-expected investment returns), the policyholder may need to resume or increase payments to keep the coverage in force.

Disclosing this information is crucial as it ensures that policyholders understand that while initial premium amounts might seem stable, they are not guaranteed and can be affected by the actual performance of the policy. This transparency helps consumers make informed decisions about their insurance coverage and financial planning.