Simplified illustrative example of total cash value ratio:
In this example, assume a participating plan has 4 policies A, B, C, D effective in three different years.
|
Policy |
Policy Effective Year |
Actual total cash value^ |
Illustrated total cash value at the point of sale^ |
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|
A |
2019 |
195 |
200 |
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|
B |
2018 |
525 |
500 |
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|
C |
2018 |
390 |
400 |
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|
D |
2017 |
285 |
270 |
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^Total cash value includes guaranteed cash value and corresponding non-guaranteed elements of the plan.
Total cash value ratio for this participating plan would be as follows.
|
Total Cash Value ratio for reporting year 2023 |
|||
|
Policy Year (Policy effective in) |
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|
1-3 |
4 |
5 |
6 |
|
N/A* |
98% |
102% |
106% |
*N/A: the products were closed to sale.