In-Force Illustrations: How to Request and Read One

When you bought a permanent life insurance policy, you probably saw a sales illustration: pages of numbers showing how premiums, cash values and the death benefit might look over the years. Once the policy has been in force for a while, those original numbers are out of date. Interest credits, charges and your own payments have all played out in real life.

An in-force illustration redoes that projection starting from where your policy stands today. It is one of the most useful tools an owner has, and it is often free. This guide explains what an in-force illustration is, how to ask for one and how to read it.

As always on this site, this is general information, not financial, insurance, tax or legal advice. Your policy and your state's rules control.

What an in-force illustration is

The National Association of Insurance Commissioners' (NAIC) Life Insurance Illustrations Model Regulation defines an illustration as a presentation that includes non-guaranteed elements of a policy over a period of years. It defines an in-force illustration as one furnished at any time after the policy has been in force for one year or more.

Two other definitions from the same model are worth knowing:

• Guaranteed elements are the premiums, benefits, values, credits or charges that are guaranteed and determined at issue.
• Non-guaranteed elements are those that are not guaranteed or not determined at issue. New York's Department of Financial Services gives examples: on universal life, the interest rate and the expense and mortality charges are not guaranteed for the life of the policy, and dividends are not guaranteed.

An in-force illustration shows how the policy would perform under both. That contrast is the whole point.

How to request one

Under the NAIC model, an insurer must furnish an in-force illustration of current and future benefits and values when the policy owner asks, and no signature is required to acknowledge receiving it. Where the annual report doesn't include one, the model calls for a notice telling the owner they may annually request one without charge. In the model's 2001 edition, that notice also says that if you don't receive a current illustration within 30 days of your request, you should contact your state insurance department.

New York's Department of Financial Services said in its February 21, 2019, consumer alert that New York law allows universal life owners to receive one free in-force illustration per year. Other states set their own rules, so check the notice on your annual statement or ask the insurer.

Variable life policies are outside the scope of the NAIC illustrations model. For those, ask the insurer what projections it provides, and read the prospectus, which the SEC's Investor.gov describes as the document that explains the policy's fees, investment options, death benefits and other features.

When you ask, be specific. Give the policy number and ask for an illustration based on the premium you actually pay now. You can also ask whether the insurer can show other scenarios, such as the premium needed to keep coverage to a certain age, or what happens if you stop paying. Get the request in writing or note the date and the name of the person you spoke with.

How the pages are organized

The NAIC model sets format standards for illustrations. Among them:

• The illustration must be labeled with the date it was prepared, and each page must show its place in the total, such as "page 4 of 7 pages."
• Guaranteed death benefits and surrender values must be shown and clearly labeled guaranteed, and guaranteed elements come before the matching non-guaranteed ones.
• Non-guaranteed elements must be clearly labeled and can't be based on a scale more favorable than the insurer's illustrated scale.
• The illustration must state that the benefits and values are not guaranteed, that the assumptions are subject to change by the insurer, and that actual results may be more or less favorable.

The payment assumed in each year will be labeled as either a contract premium or a premium outlay (the amount the owner is assumed to pay out of pocket). Check that it matches what you actually pay.

Reading the guaranteed and non-guaranteed columns

The California Department of Insurance explains that an illustration usually shows the guaranteed results for each future year and the results if all non-guaranteed items continue at their present level, and that actual results may be better or worse than the non-guaranteed amounts, but not worse than those that are guaranteed.

That gives you a range. Find the year in which each column shows the cash surrender value reaching zero or the coverage ending. If the guaranteed column shows the policy ending at an age you might well live past, the policy depends on non-guaranteed elements holding up. That isn't necessarily a problem, but it is a risk you should understand.

The New York Department of Financial Services notes that when interest rates are high, benefit projections such as cash value are high, and when rates are low, projections are less attractive. An illustration is a snapshot of today's assumptions, not a forecast.

Questions to bring to your insurer

• Under current assumptions, to what age does my coverage last at my current premium?
• Under guaranteed assumptions, when does it end?
• What premium would keep coverage to the age I want?
• Does the illustration include my outstanding loan and its interest?
• Has the insurer changed any non-guaranteed charges or credits since my last report?

The Texas Department of Insurance reminds consumers that projections are not a promise of a policy's performance and suggests asking for a history of the actual growth of cash values. Comparing an old illustration with your actual statements shows how far reality has drifted from the original projection.

Using an illustration wisely

An in-force illustration is a starting point for decisions, not the decision. The California Department of Insurance says illustrations should never be the only factor used in deciding to replace or change your policy. The NAIC's model notice puts it the other way around: you should not consider replacing your policy or changing your coverage without requesting a current illustration.

If someone hands you a comparison showing that a new policy beats yours, ask for your own insurer's in-force illustration first and compare like with like. If anyone pressures you to decide quickly, slow down.

If your insurer doesn't respond or the illustration is confusing, contact your state insurance department; the NAIC keeps a directory of all of them. A licensed insurance professional, tax adviser or attorney can help you weigh options for your own circumstances.

Key takeaways

• An in-force illustration projects your existing policy from today, using guaranteed and current assumptions.
• NAIC model rules require insurers to provide one on request, and the model notice says you may request one each year without charge; your state's version controls.
• Read the guaranteed column to see the worst case and the non-guaranteed column to see the current-assumption case.
• Check that the assumed premium and loan balance match your real situation.
• Request a current illustration before replacing or changing a policy.
• This is general information; your state insurance department and licensed professionals can help with your policy.

Sources

• NAIC, Life Insurance Illustrations Model Regulation, Model #582 (April 2001 edition)
• New York State Department of Financial Services, DFS Issues Consumer Alert Regarding Universal Life Insurance Policies (February 21, 2019)
• California Department of Insurance, Life Insurance Guide (revised March 2018)
• New York State Department of Financial Services, Life Insurance Information for Consumers
• Texas Department of Insurance, Life insurance guide (updated December 12, 2025)
• U.S. Securities and Exchange Commission, Investor.gov, Variable Life Insurance
• NAIC, Insurance Departments (state contacts and complaints)