Illustrated Rate

The "Illustrated Rate" refers to a projected rate of return used in financial illustrations to demonstrate the potential growth of an investment or insurance product over time. Often used in the context of life insurance policies, annuities, and other long-term financial products, the illustrated rate is not a guarantee but rather a hypothetical rate used to visualise how the product might perform under certain conditions.

It helps potential buyers understand the product's potential benefits and how various factors might influence its value over the years.

For consumers and investors, the illustrated rate serves as a valuable tool in financial planning. By providing a visual representation of potential growth, it allows individuals to gauge how a particular product might fit into their broader financial strategy.