South Carolina Life and Health Practice Exam

What does a policy illustration given at the time of sale typically NOT include?

1. Names of the beneficiary

2. Projected premiums

3. Cash value growth

4. Death benefit amounts

The correct answer is: Names of the beneficiary

A policy illustration provided at the time of sale typically focuses on the financial aspects of the insurance product, which helps potential policyholders understand how it functions over time. These illustrations often include projected premiums, cash value growth, and death benefit amounts, as they are crucial in demonstrating the policy's benefits and costs. The names of the beneficiary, however, are generally not included in these illustrations at the point of sale. Beneficiary designations are personalized components that reflect the specific choices of the policyholder and are typically established after the purchase of the policy. As such, focusing on financial projections and policy features in the illustration is more relevant for illustrating the product's potential performance rather than detailing the individual factors like beneficiary information that can be customized later in the purchasing process.