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The data below indicates that the guaranteed premium for a nonparticipating Whole Life on a 45-year-old male in good health is $15,255 for a $1 million policy. Indeed, the classic illustration dilemma is summarized below: How is it possible for there to be so many different "prices" for the same thing? This practical characterization of a health insurance policy illustration is not intended to suggest there's anything inherently wrong or bad with Universal Life/Variable Universal Life policies or their illustrations; it's simply that those dealing with these policies must understand the difference between the policy and the illustration and have a pragmatic and useful approach to manage such policies. Thus, the illustration quickly became the tool to calculate a premium based on some inherent, constant assumptions about future expenses, company, however, reserves the right to increase those expenses and/or change the policy earnings expectations - in essence to reprice the policy over time, subject to the schedule of maximum charges and, in the case of Universal Life, minimum crediting rates enumerated in the policy. However, since the introduction of flexible premium Universal Life policies in 1979, the illustration has taken on a practical chore that it cannot possibly or reasonably accomplish: to solve the dilemma that it's hard to sell a policy when that policy type has no premium in the traditional sense. A policy illustration is therefore no better, and no worse, than advertising materials whose purpose is to attract the potential buyer to buy this policy rather than that policy. Policy illustrations, rather than being part of the policy (a legal contract), are in fact marketing documents, attempting to highlight the best aspects of the financial potential for the policy. Yet, like Damien and Pythias, Romeo and Juliet, and Yin and Yang, these documents are inexorably tied together by insurers and their agents - not to mention the expectations of the marketplace. The policy illustration, however, is for the most part a finely crafted work of fiction, deploying and projecting changeable variables far into the future of assumptions that are current but not guaranteed - and taking the most critical assumption factors and using them as constants.

The policy will specify the insured, the death benefit, and the premium (stipulated or flexible). The policy is a legal contract; it specifies the terms and conditions under which the policy has been purchased and for which the death benefit will be paid. As long as this premium is paid each year - as required under the policy/contract - the $1 million death benefit will be paid to the designated beneficiary no matter when death occurs.