Why & How to Request Original & Inforce Illustrations
- LIR TEAM
- Mar 14
- 5 min read
Life insurance policies that focus on cash value accumulation, such as Whole Life and Indexed Universal Life (IUL) policies, are often sold using projections and assumptions. These assumptions can significantly influence how the policy is designed, illustrated, and ultimately how it performs over time.
Understanding why & how to request original & inforce illustrations is one of the most important steps policyholders and financial professionals can take to verify whether a policy is performing as expected—or if adjustments may be necessary.
This is especially critical for:
Cash value accumulation policies such as Whole Life and Indexed Universal Life (IUL)
Premium financed life insurance policies
Policies illustrated using projected dividends or index returns
Policies illustrated using indexes other than the standard S&P 500
Policies marketed as retirement or wealth accumulation strategies
Without reviewing these illustrations, policyholders may unknowingly allow problems to compound over time.
Why & How to Request Original & Inforce Illustrations
Understanding why & how to request original & inforce illustrations begins with recognizing that cash value life insurance policies are built on assumptions—and those assumptions are built on additional assumptions.
For example:
Whole Life Policies
A Whole Life policy illustration often assumes:
A certain dividend rate each year
That the dividend rate remains relatively stable
That the dividend continues to support the policy’s long-term performance
That company experience and dividend scales do not significantly decline
However, dividends are not guaranteed, and dividend scales have changed over time depending on economic conditions.
Indexed Universal Life (IUL) Policies
An IUL policy illustration may assume:
A certain annual index crediting rate
That the cap rate or participation rate remains stable
That the selected index performs within projected expectations
That the cost of insurance charges remain manageable
But in reality:
Cap rates can change
Participation rates can change
Policy charges can increase
The index may perform very differently than the illustration assumed
This is why understanding why & how to request original & inforce illustrations is so important.
Why Reviewing These Illustrations Matters
Many policyholders do not realize something is wrong until years later, when the policy begins showing signs of stress, such as:
Required premium increases
Lower than expected cash value accumulation
Reduced policy performance
Policies projected to lapse earlier than expected
By that time, several things may have changed:
The policyholder is older
Health may have changed, making replacement difficult
Years of opportunity have been lost
Ignoring potential issues does not make them disappear. In fact, allowing problems to compound often makes them harder to correct later.
Regularly reviewing original and inforce illustrations helps policyholders detect problems earlier and make better decisions.
What Is an Original Illustration?
The original illustration is the projection that was provided at the time the policy was sold.
This document typically shows:
The original premium structure
How the policy was designed
The projected cash value accumulation
The assumed dividend or index crediting rate
The policy’s projected performance over time
Reviewing the original illustration allows you to determine:
Whether the policy is performing as originally illustrated
Whether the policy was optimally designed
Whether the structure may have been designed to maximize commissions rather than long-term performance
What Is an Inforce Illustration?
An inforce illustration is a projection generated by the insurance company using the policy’s current values and current assumptions.
It reflects:
The actual performance of the policy to date
The current cap rates or dividend scales
The current policy charges
A projection of how the policy may perform moving forward
The inforce illustration answers one key question:
“If the policy continues under current conditions, how will it perform in the future?”
Comparing the original illustration to the inforce illustration provides valuable insight into whether the policy remains on track.
How to Request Original & Inforce Illustrations
Fortunately, requesting these documents is relatively simple.
If you have owned a life insurance policy for more than two years and have questions about its performance, consider taking the following steps.
1. Contact the Life Insurance Company
Policyholders can call the insurance company directly and request:
The Original Illustration
The Inforce Illustration
The original illustration should have been part of the sales process and retained by the insurance company.
2. Request an Updated Inforce Illustration
Ask the insurer to generate an inforce illustration using current assumptions.
This allows you to see:
Whether the policy remains on track
Whether additional premiums may be required
Whether the policy could lapse under current conditions
3. Review the Policy Design
Even if the policy contract contains limited information, the illustration can help verify:
The policy’s structure
The premium funding strategy
Whether the policy was designed efficiently
Often the full design details appear in the illustration rather than the policy contract itself.
A Critical Step for Consumers and Financial Professionals
Understanding why & how to request original & inforce illustrations is not just helpful for consumers—it is also important for financial professionals such as:
CPAs
Estate planning attorneys
Financial advisors
Family offices
These professionals frequently encounter life insurance policies used for:
Estate planning
Business succession planning
Retirement income strategies
Premium finance strategies
Without reviewing both illustrations, it is difficult to determine whether the policy remains aligned with the original planning objectives.
Key Takeaways for Policyholders and Professionals
Cash value life insurance policies can be powerful financial tools—but only when they are properly designed and regularly reviewed.
Understanding why & how to request original & inforce illustrations helps policyholders and professionals:
Identify potential problems early
Verify whether the policy remains on track
Evaluate whether adjustments may be needed
Ensure the policy still aligns with the policyholder’s long-term financial goals
The earlier issues are identified, the more options policyholders typically have.
FAQs- Frequently Asked Questions
What is the difference between an original illustration and an inforce illustration?
An original illustration is the projection provided when the policy was first sold, showing expected performance based on certain assumptions. An inforce illustration shows how the policy is currently performing using today’s values, charges, and crediting assumptions.
Why should I request an inforce illustration?
An inforce illustration allows you to see whether your life insurance policy is still performing as expected and whether it is projected to remain sustainable under current conditions.
How often should I request an inforce illustration?
Many professionals recommend requesting an updated inforce illustration every two to three years, or sooner if market conditions or policy performance changes.
Can I request these illustrations directly from the insurance company?
Yes. Policyholders can typically contact the insurance company directly and request both the original illustration and a current inforce illustration.
What if my policy is not performing as originally illustrated?
If a policy is underperforming, options may include adjusting premiums, modifying the policy structure, or exploring other strategies depending on the policy type and current health conditions.
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Why & How to Request Original & Inforce Illustrations Matters More Today
With many life insurance policies sold using optimistic projections, understanding why & how to request original & inforce illustrations has become increasingly important. These documents allow policyholders and professionals to compare how the policy was originally designed versus how it is currently performing. Without this comparison, many policyholders may not realize potential issues until years later—when options may be more limited.
