policy illustration
Also called: proyeksi asuransi
An estimate of policy benefits and costs, not a guarantee of future results.
What it means
A policy illustration is a projection of the benefits and costs of a policy provided by the insurer at the time of offering. It may include premiums, benefits, and projected cash values based on certain assumptions. An illustration is not a promise of results, because actual values may differ depending on performance and policy terms. In Indonesia, illustrations are usually accompanied by an explanation of the assumptions used.
Why it matters for families
Illustrations help families compare offers and understand long-term premium obligations. If they misunderstand and treat projections as certainties, the family may be disappointed when actual values differ. It is important to read the assumptions and scenarios used, not just the large numbers at the end.
Example
For example, an illustration shows a projected cash value after several years assuming a certain rate of return. That figure is not a guarantee, so the family should ask about pessimistic scenarios and the fees deducted. That way, the decision to buy a policy is made based on a complete understanding.
Common misunderstanding
Many people think the projected figures in an illustration are the exact amount they will receive. The correction is that an illustration is only a simulation based on assumptions and actual results may be higher or lower.