Which feature is important for applicants concerning non-guaranteed values in insurance?

The importance of the feature related to non-guaranteed values in insurance lies in the understanding that these values may necessitate future premium payments. Non-guaranteed values often refer to elements such as the cash value of a life insurance policy or dividends that may be generated by a participating policy. Unlike guaranteed values, which are established and fixed, non-guaranteed values depend on various factors, including insurer performance and market conditions.

When applicants consider non-guaranteed values, it is crucial for them to recognize that if these values do not perform as expected, policyholders may need to make additional premium payments to maintain the policy or fully realize the benefits that might have been assumed. This awareness helps applicants make informed decisions regarding the affordability and sustainability of their insurance policy in the long term.

In contrast, other options do not accurately reflect the key aspects of non-guaranteed values in insurance. The idea that non-guaranteed values are often not disclosed is misleading, as insurers typically provide this information in policy documentation. The notion that they can guarantee lower premiums does not apply, as non-guaranteed values do not inherently lower premiums; rather, they may fluctuate based on performance. Lastly, while non-guaranteed values may indeed be less reliable than