categories and a number of sub-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
* 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