In a life insurance illustration showing future premiums paid from nonguaranteed values, what must be disclosed?

• A. Premiums will never increase
• B. Loans against cash value are guaranteed
• C. The policyowner may need to resume premium payments depending on actual results
• D. The policy is guaranteed to increase cash value

Answer: (C)

When an illustration uses nonguaranteed values, the key idea is that these values are not promised and can change with actual experience. Because dividends, credited interest, and other nonguaranteed elements depend on future performance, the illustration must warn that the policyowner may need to resume premium payments if actual results don’t match the assumptions. That possibility keeps the policy in force or maintains the intended benefits even if the credited values turn out lower than shown.

So, the best choice conveys this uncertainty and the potential need for additional Premiums. The other statements pretend guarantees that nonguaranteed values do not provide—such as never increasing premiums, guaranteed loans, or guaranteed cash value growth—which isn’t compatible with how nonguaranteed illustrations work.