Illustrative only — not a projection of any specific policy. Assumes a level crediting rate with no zero years, a 105% corridor on the death benefit, loan interest that compounds and is never repaid, and simplified charges. A real illustration varies the crediting rate, applies an index cap and floor, and uses the carrier's own cost-of-insurance table. Lapse is flagged when the loan balance passes the cash value; at that point the outstanding loan generally becomes taxable income.