What must accompany every sales presentation for an individual variable insurance contract?

In the context of individual variable insurance contracts, a prospectus is a necessary document that provides detailed information about the investment component of the contract. The prospectus outlines important elements such as the risks associated with the investment, the performance history, expenses, and the objectives of the variable product. This is crucial because these insurance contracts are linked to market performance and contain an element of investment risk.

Including a prospectus with every sales presentation ensures that potential policyholders are adequately informed about what they are purchasing. It promotes transparency and allows consumers to make informed decisions based on their financial goals and risk tolerance. Regulators mandate the provision of this document to protect consumers from misleading sales practices and to promote an understanding of the products being offered.

Other materials, such as an application form or disclosure statement, while also important, do not satisfy the regulatory requirement of providing detailed investment information to the client at the time of the sales presentation. Therefore, having the prospectus is essential to fulfill legal obligations and support informed consumer choices in the variable insurance market.