Texas General Lines – Life, Accident, And Health Insurance (LAH05) Practice Test

Why are illustrations used in life policy marketing?

Illustrations show potential benefits. Illustrations mislead buyers about returns. Illustrations replace underwriting. Illustrations determine policy eligibility.

Correct Answer:

Illustrations show potential benefits.

Explanation:

Illustrations are a marketing tool that helps you see how a life policy could perform. They lay out projected benefits—like the death benefit and any cash value—under a chosen set of assumptions (premium payments, credited interest, expenses, and other factors). This lets you compare policies side by side and understand how values might grow over time. Keep in mind, those figures aren’t guaranteed and actual results can differ. Illustrations don’t replace underwriting or determine eligibility; underwriting still decides whether you qualify and at what premium.

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