Insights / Report

Illustration red flags index

A structured reference for common life insurance illustration sections that deserve closer review.

Last reviewed: .

This index lists illustration sections that deserve closer review.

It does not judge a specific policy. It tells you where the document can hide the moving parts.

Methodology

This launch index uses representative illustration labels and common document sections. It avoids named carrier examples and product recommendations.

Use it with the full illustration, not the sales summary.

If one of these flags appears in a new proposal, use new coverage as the service path.

Flag Index

FlagWhere to find itWhy it mattersQuestion to ask
Guaranteed values are far below current assumptionsLedger pages, values table, or supplemental illustration.The proposal may depend on assumptions the carrier can change.What does the policy look like under guarantees only?
Premiums stop in the summary but continue in another scenarioPremium schedule or outlay column."Pay for 10 years" can depend on non-guaranteed values.What assumptions let premiums stop?
Policy loans fund future incomeLoan or distribution pages.Loan rate and crediting assumptions can bend the result.What happens if loan rates rise or crediting falls?
Surrender value trails cash valueValues table and surrender schedule.Liquidity may be lower than the headline cash value.What can I walk away with in years 1, 3, 5, and 10?
Rider charges are separated from the main cost storyRider schedule or policy charge pages.Riders can add cost after the sales summary stops talking.What does each rider cost and when can that cost change?
Non-guaranteed elements carry the projected resultFootnotes, assumption pages, and values table.The carrier can change non-guaranteed elements.Which values are not guaranteed?
Replacement comparison omits the old policySupplemental replacement page or separate proposal.The new policy cannot be judged without the current policy.Where is the side-by-side comparison?
MEC or tax language is missing after large premiumsTax footnotes, premium pages, or carrier notices.Premium changes can raise tax questions.Has the carrier reviewed MEC status for this funding pattern?

How To Use This

Pick the flag that matches the sales pitch.

If the pitch is about income, start with loans. If the pitch is about limited premium, start with the premium schedule. If the pitch is about flexibility, start with surrender value and charges.

Then ask for the page that proves the claim.

Use the illustration reading checklist

Agent Summary

This report identifies illustration sections that can change how a life insurance proposal should be read. It does not judge a specific policy and does not provide personalized advice.

Limits

No named carrier examples. No product recommendation. No personalized advice. Any page rendering non-guaranteed values must place guaranteed values beside them at equal visual weight.

Source Notes