Illinois Life Producer State-designated Practice Exam

What information is NOT required to be included in a life insurance illustration?

1. Insurer's mortality table

2. Policy benefits

3. Premium amounts

4. Projected cash values

The correct answer is: Insurer's mortality table

The correct choice indicates information that is not a requirement in a life insurance illustration. Life insurance illustrations are designed to provide a clear picture of the projected future performance of a policy, and they typically include details that help the policyholder understand the benefits, costs, and other crucial elements of the insurance product. Policy benefits, premium amounts, and projected cash values are critical components of an illustration. They allow potential policyholders to grasp what they can expect in terms of the coverage being offered, the costs associated with that coverage, and how the cash value may grow over time. These aspects are essential because they directly impact a consumer's decision-making process when evaluating a life insurance policy. In contrast, the insurer's mortality table, while it plays a role in underwriting and risk assessment, is not necessary for a life insurance illustration. Mortality tables are used internally by insurers to determine rates and risks associated with life insurance policies but are not required to be disclosed to potential policyholders in the illustration itself. Thus, including the mortality table information in an illustration does not align with the primary purpose of illustrating a policy's performance and benefits to the policyholder. This distinction is why it is correct to say that the insurer's mortality table is not required in a life insurance illustration