What must an illustration used in the sales presentation disclose when future premiums are paid from non-guaranteed values?

When an illustration used in a sales presentation indicates that future premiums will be paid from non-guaranteed values, it is essential to disclose that premium payments may need to be resumed depending on actual results. This statement accurately reflects the uncertainty inherent in non-guaranteed values, as these values are subject to change based on the performance of the insurer's investments and the overall policy performance.

Specifically, if the non-guaranteed values do not perform as expected, the policyholder could be faced with the necessity of continuing premium payments to maintain the policy’s coverage. By making this disclosure, it emphasizes the potential risks and obligations that policyholders might encounter, thereby promoting transparency and informed decision-making in the sales process.

The other options do not appropriately reflect the realities of non-guaranteed values. For instance, stating that premium payments will never be needed again falsely assures the policyholder that they are free from future financial obligations. As for the option indicating that all future premiums are guaranteed, this is misleading since non-guaranteed values specifically denote uncertainty. Lastly, claiming that there will be no penalties for non-payment does not capture the complexity of insurance contracts, where non-payment may lead to policy lapse or other consequences, depending on the specific terms outlined in the