When future premiums for a life insurance policy are paid out of non-guaranteed values, what must be disclosed during the sales presentation?

When future premiums for a life insurance policy are paid out of non-guaranteed values, it is essential to disclose that premium payments may be resumed depending on actual results. This is because non-guaranteed values, such as those derived from dividends or interest in a participating policy, can fluctuate based on the insurer's performance and market conditions.

If the policy's performance does not meet expectations, the insured may need to resume regular premium payments to keep the policy in force. This aspect of the policy is crucial for consumers to understand, as it directly impacts their financial planning and obligations tied to maintaining coverage.

The framing of this condition is vital during the sales presentation, ensuring that potential policyholders are aware that relying solely on non-guaranteed values could lead to unexpected financial responsibilities. Such transparency is essential for sound financial decision-making and aligns with regulatory requirements aimed at protecting consumers in the insurance market.