Question 28

A policy illustration given at time of sale does NOT typically include the names of the beneficiary.

Policy illustrations are designed to provide a projection of the policy's performance and financial aspects rather than specific personal details such as the beneficiary's name.

A) names of the beneficiary.

This option is correct because a policy illustration focuses on the financial details and projections associated with the policy, such as premiums, cash values, and benefits, rather than naming specific individuals who would receive benefits.

B) 10th and 20th year cost surrender value.

This option is incorrect as policy illustrations often include projected cash values and surrender values at various points, such as the 10th and 20th years, to help the policyholder understand the long-term financial implications of the policy.

C) effective interest rate for policy loans.

This option is incorrect because policy illustrations typically provide important details regarding the effective interest rates applicable to policy loans, which is vital for understanding the cost of borrowing against the policy.

D) cash value of the policy.

This option is incorrect as cash value is a fundamental aspect of policy illustrations, as it reflects the savings component of the policy that accumulates over time and is crucial for the policyholder to know.

Conclusion

The correct answer is A because policy illustrations do not include personal details such as the names of the beneficiaries, focusing instead on the financial projections and features of the policy. In contrast, all other options are integral components of a policy illustration, providing essential information for evaluating the policy’s performance and benefits.