The “Guaranteed -vs- Non-Guaranteed Values Trick”

By Randall Rothschild | Life Insurance

Apr 14
guarantee value life insurance quote

#6 of 7 in the Life Insurance Quote Tricks series

The “Guaranteed -vs- Non-Guaranteed Values Trick”

When examining permanent policies that develop cash value, there are usually at least two projected cash accumulation illustrations presented:

  • Non-Guaranteed Values: This is the life insurance company's “optimistic” view of how much cash you “could” accumulate.
  • Guaranteed Values: This is the amount of cash the life insurance company Guarantees will accumulate NO MATTER how their investments perform.

Some “tricky” agents will quote the NON-Guaranteed Whole life or Universal Life cash accumulation values, but represent them as if they are the Guaranteed values. The reason the “tricky” agents will do this is because if you look at the policy illustration and you focus on the NON-Guaranteed values (which are usually very optimistic) you will think you are making a wise investment decision, as it “appears” that you will make a lot of money. Be careful. If you are buying whole life or universal life you may want to get a second opinion.

It is ok to show the client what those values are, as they are real values of today, but they are NOT guaranteed for the future. So make sure you ask to have the guaranteed values explained. Also, make sure you read our article on what type of life insurance to buy (in the 12 part series “Checklist for The Real World“).


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