Annuity illustration is a carrier-generated projection that shows how an annuity contract might perform over time under specified assumptions, including premium amounts, crediting rates, fees, rider charges, and withdrawal patterns. Illustrations typically present values for accumulation, income, and death benefits across multiple scenarios, such as guaranteed, current, and hypothetical returns. While they are valuable educational tools, illustrations are not guarantees and must clearly distinguish between contractual guarantees and non-guaranteed elements. Regulators and carriers impose standards for how annuity illustrations can be used and what disclosures they must contain to avoid misleading presentations.

Advisors rely on annuity illustrations during the sales process and annual reviews to help clients visualize how a contract may contribute to their retirement plan. They walk through key pages, focusing on guarantees, fees, and income projections, and they often simplify dense tables into summary charts. Compliance departments require that illustrations be current, approved, and consistent with marketing materials. Advisors also obtain in-force illustrations to monitor existing contracts and evaluate whether adjustments or replacements are warranted. Understanding annuity illustrations enables advisors to interpret assumptions, answer client questions about best- case and worst-case outcomes, and ensure that projections are used responsibly rather than as promises.