What do life insurance illustrations display when they include premiums, values, credits or charges not determined at issuance?

Life insurance illustrations are important tools used to demonstrate how policies can perform under various conditions. When illustrations include premiums, values, credits, or charges that are not set at the issuance of the policy, they highlight components that can fluctuate over time based on the insurer's performance or other market factors.

In this context, non-guaranteed elements are those features of the policy that depend on future performance. For example, dividends, interest rates, and variable benefits in certain types of insurance are all contingent on the insurance company’s financial results or other external variables. This variability means that while these elements can enhance the benefits of a policy, they are not promised or assured at the time the policy is issued, which is why they are categorized as non-guaranteed.

Guaranteed elements, on the other hand, represent the fixed aspects of the policy that are guaranteed by the insurer, such as the face amount or minimum cash value at a certain point. Variable components often pertain to products like variable life insurance where values may fluctuate based on investment choices. Fixed terms describe unchanging conditions within the contract, but do not convey the essence of variability referenced in the question. Thus, the focus on premiums, values, credits, or charges that may change indicates these are