Definition of "Illustration"

A document used to show a life insurance policy's guaranteed and (non-guaranteed) future values, including cash values and death benefits, based on certain assumptions. An illustration is an example of how the policy could perform in a given set of circumstances. It can provide you with valuable information about a policy's potential. However, it is neither an estimate or guarantee of future results and should not be construed as a prediction of policy performance. Certain assumptions are made when producing an illustration for life pension or investment products these assumptions are currently controlled by the Financial Services Authority that governs the financial services industry.