Some Pointers on How to Read an Illustration

The typical insurance illustration is broken into three main

categories and a number of sub-categories.

The main categories:

* What's guaranteed. This can be labeled "guaranteed"; "guaranteed

basis"; "guaranteed mortality charges and interest" and/or "guaranteed

cash and surrender values." This is the insurance policy's worst-case

scenario. You can do better, but the insurer is contractually obligated

to make sure you do at least this well.

* What's happening now. This can be labeled "current interest" or

"assumed rate" or "non-guaranteed." This column is usually coupled with a

number, which in today's market is probably going to range from 6% to 8%,

the rate of return the company is currently paying on this type of

policy.

* A midpoint between the two. This can be called "midpoint rate" or

simply "illustrated" or "non-guaranteed" rate.

Under each of these categories, the illustration will show several

figures on a year-by-year or five-year basis, starting from the time you

bought the policy and extending to some point in the future--often until

the year you reach age 100. Some of the following elements will not

appear on every policy: