Illustrated Rate LookBack Method

The "Illustrated Rate LookBack Method" is a technique used in the financial industry, particularly in the context of insurance and annuity products, to determine a permissible illustrated rate.

Instead of relying on arbitrary or fixed assumptions, this method looks back at historical performance, typically of an index or a set of benchmarks, over a specified period. By analysing past returns, the LookBack Method provides a more grounded and empirical basis for projecting potential future returns in product illustrations.

For potential buyers and policyholders, the Illustrated Rate LookBack Method offers a sense of reassurance. By basing projections on historical data, it reduces the reliance on overly optimistic or pessimistic assumptions.