What must a life insurance illustration disclose if future premiums are being paid out of nonguaranteed values?

A life insurance illustration must disclose that the policyowner may need to resume premium payments depending on actual results when premiums are being paid out of nonguaranteed values. This is essential because it informs the policyholder of the potential risks associated with relying on dividends or other non-guaranteed elements to cover premiums. If the expected performance of the policy does not materialize, the policyholder could find themselves in a situation where they need to start paying premiums again to keep the insurance in force.

This disclosure helps policyholders understand that while current projections may show that they can pay premiums through these nonguaranteed elements, actual future results may vary, thereby impacting their financial commitment to the policy. Being transparent about these possibilities fosters informed decision-making and reinforces the importance of long-term planning for insurance needs.