What is the difference between guaranteed basis and non-guaranteed basis life insurance?

Answer 1

Take a look at the illustrations - they should have a "caveat" similar to this. Guaranteed Contract The guaranteed Accumulated Value is equal to the net amount of premiums accumulated Values and Benefits: at the minimum guaranteed interest rate of 2.00% for ten years since receipt of premium and 3.00% thereafter. The Withdrawal Value is equal to the Accumulated Value, less any applicable Withdrawal Charges. Non-Guaranteed Contract Values and Benefit: The non-guaranteed portion of the illustration assumes higher interest rates than guaranteed. Each premium payment assumes interest is credited at 3.50% (with an interest rate bonus of 3.75% that will be credited for the first year only). This is not likely to occur. Actual results may be more or less favorable than those illustrated. Interest rates illustrated will not be less than the Minimum Guaranteed Interest Rate at any given duration. The non-guaranteed Accumulated Value is equal to the net amount of premiums accumulated at the interest rates described. The Withdrawal Value is equal to the Accumulated Value, less any applicable Withdrawal Charges.