A life insurance illustration must include which of the following elements?

A life insurance illustration is designed to provide potential policyholders with a clear understanding of how the policy operates and its potential financial outcomes. Including both guaranteed and non-guaranteed elements is essential because it allows consumers to see the minimum benefits they can expect as well as the possible outcomes based on assumed future performance. Guaranteed elements refer to benefits that the insurer is contractually obligated to pay, while non-guaranteed elements, such as dividends or interest rates, depend on the insurer's investment performance and declared dividends.

The inclusion of these two types of elements helps potential policyholders make informed decisions, as they can compare the security of guaranteed benefits against the potential but uncertain advantages of non-guaranteed features. This comprehensive view is critical for transparency and helps fulfill regulatory requirements, ensuring that policyholders understand the risks and benefits associated with their chosen life insurance policy.