Final answer:
The document that includes detailed information on premium amounts, cash values, surrender values, and death benefits is policy illustration. The correct answer is 3).
Step-by-step explanation:
The document delivered to the policyowner that includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years is known as the policy illustration. The policy illustration is a detailed document that shows how the policy should perform over time.
Given a set of assumptions regarding premium payments and other factors. It's important as it provides the policyowner with expectations for future policy values on a year-by-year basis. Each life insurance company will provide a policyowner with this document upon request.
It is not the same as the policy contract which outlines the terms of the policy, nor the policy statement, which is typically an annual statement reflecting the current status of the policy, such as the value or the premiums due.