Permanent Life Insurance 

Permanent Life Insurance Overview

Permanent life insurance (sometimes referred to as whole life insurance) provides protection for your entire lifetime in most cases.

No matter when you die, as long as your premiums are paid, your beneficiaries will receive the proceeds, generally income tax free. Permanent life insurance is intended to meet long-term needs and has level premiums and a cash value that grows tax deferred.

Northwestern Mutual’s permanent life insurance policies are eligible for annual dividends* which can be added to your cash value and also grow tax deferred.

Dividends can be used to:

• Reduce your out-of-pocket premium payments.
• Increase your total death benefit which keeps your coverage growing as your needs increase, without increasing your premium.

Permanent life insurance works best when the insurance need is long-term. With a guaranteed death benefit that will not decrease and a premium guaranteed not to increase, permanent life insurance can be less costly than term insurance.

Premiums will be higher on a permanent life insurance policy but the premiums contribute to the growth of the policy’s cash value – which can be accessed to help pay for college or to supplement a retirement income.

Permanent life insurance is flexible and gives you a series of options that can be changed as your life changes. You could even choose to stop paying premiums and change your policy to paid-up. Permanent life insurance allows you to make choices that fit best with your life.

When to Use Permanent Life Insurance

• You want protection to last as long as you need it, perhaps a lifetime.
• When you want a good foundation of traditional insurance.
• You can commit to paying an ongoing level premium.
• Strong policy guarantees.**
• Build cash values with a conservative approach.
• Eligible for Northwestern Mutual dividends. *
• Option to change your policy to “paid-up.”

*Dividends are not guaranteed, but have been paid every year since 1872.
**Guarantees are based on the claims-paying ability of Northwestern Mutual.

NMFN-PL-001 (1209)

Long Term Value of Permanent Life Insurance

How is the current economic uncertainty affecting your financial situation? Are you looking for an asset that offers sustained growth year after year and never declines in value? That's exactly the opportunity that permanent life insurance from Northwestern Mutual offers:

• Protection built into your portfolio.
• Guaranteed cash value growth over time.
• Tax advantages.
• Dividends providing competitive returns.

Guarantees for a Lifetime

Choose an asset that never stops growing and helps guarantee your financial security that will forever be there for you and your family. An asset that is worry-proof and recession-proof. That's the security of permanent life insurance from Northwestern Mutual.

Northwestern Mutual permanent polices provide protection through a guaranteed death benefit as well as an accumulation feature. Together, these features keep you in control of your future.

Access to Cash Value

Permanent life insurance can help offset economic uncertainty and help you achieve your financial goals. You can use the cash value to help:

• Supplement your retirement income.
• Fund your child's education.
• Make the down payment on a new house.
• Provide cash for a new business.
• Provide funds for family emergencies.

The guaranteed accessibility to the cash value makes permanent life insurance one of the most valuable assets people can own. And, it grows tax deferred. Use of the cash value from your policy has advantages and disadvantages, can be subject to different tax consequences and reduces the death benefit.

Power of Our Dividend

One of the ways a permanent policy provides value is with a dividend.

Northwestern Mutual's structure as a mutual company and its unique investment approach allows it to return to policyowners a portion of its investment gains as well as the savings incurred from its claims and expense experience in the form of dividends. Although, these dividends cannot be guaranteed, Northwestern Mutual has paid one every year since 1872.

In fact, Northwestern Mutual has paid more than $60 Billion in life insurance dividends over the past 25 years.

Our Advantage

Northwestern Mutual's financial strength and consistency continue to provide a foundation to help you achieve your financial goals. Our industry leading dividend performance, the reliability of our returns, and the highest financial strength ratings help to build your foundation ... a foundation for life.

A truly strong financial future starts with the right foundation. Contact a Northwestern Mutual representative to find out how the power of Northwestern Mutual's permanent life insurance can help you build yours.

A.M. Best Company, 2010; is limited to ordinary and group life insurance dividends.

Non-guaranteed values and benefits include dividends. Illustrated dividends reflect current claim, expense and investment experience and are not estimates or guarantees of future results. The dividend scale is reviewed annually by the Company's Board of Trustees and is subject to change. Guarantees rely on the financial solvency of the insurer.

Third party ratings are subject to change.

Personal Protection with 90 Life

90 Life is a good permanent life insurance choice when death benefit and cash value are of equal importance. A longer premium paying period means lower premiums with a longer period to build cash values.

On the life of a breadwinner . . . permanent life insurance protects a family’s standard of living.

On the life of a homemaker . . . it provides funds to replace lost household services and child care.

On the life of a child . . . with the Additional Purchase Benefit . . . it can guarantee insurability for years to come.

The cash value will be available both for life’s emergencies and life’s opportunities. College educations may be financed, mortgages may be paid off earlier, and life during retirement may be made a little more comfortable.

• Permanent life insurance protection is permanent as long as premiums are paid.
• Premiums are level and payable to age 90 or until death, if sooner.
• Dividends can increase your coverage or reduce your premium outlay – your choice.
• Cash values may increase faster when dividends are used to purchase additional insurance.
• Cash values are accessible and available via loans for emergency or opportunity.

Business Protection

90 Life is an ideal permanent life insurance product to provide security and value in business situations. Whether you are interested in providing benefits to your employees, or in insuring a few executives, 90 Life may fit the bill.

Deferred Compensation, Bonus, and Key Employee plans are often best funded with permanent, level premium products. One of the best vehicles for fulfilling Buy-Sell agreements and Split Dollar arrangements often turns out to be Northwestern Mutual’s 90 Life product.

90 Life Specifications

Features

• Guaranteed death benefit
• Guaranteed minimum cash value
• Guaranteed premiums
• Eligible to receive dividends
• Optional additional premiums and lump sums

Issue Ages

• Ages 0-80

Policy Sizes

• Minimum amounts: $25,000; $1,000 for ES-INS
• Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

• Original guaranteed face amount plus any dividend additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Premiums

• Level premiums payable to age 90 or until death, if sooner.

Dividend Options*

• Increase policy values.
• Reduce premium payments.
• Accumulate at interest.
• Receive in cash.

*Dividends are not guaranteed.

Options Available If Premium Payments Are Missed

• Automatic Premium Loan (APL) supported by the cash value.
• Remain in force as a reduced paid-up permanent life insurance plan.
• Remain in force for a limited period of time as extended term insurance.
• Cash surrender.

Policy Loans

• Most of the accumulated cash value in a permanent life insurance policy is available for loan.
• Variable loan rate option.
• With “Direct Recognition” the percentage of cash value borrowed affects amount of dividend credited.
• Any outstanding loan and accrued interest balances are deducted from the policy proceeds upon surrender or death.

In Arkansas, 90 Life policies will have 5%.

Optional Policy Benefits*

• Waiver of Premium (Ages 0-59)
• Indexed Protection (Ages 0-75)
• Additional Purchase (Ages 0-38)

*Subject to underwriting and/or additional cost.

This policy has exclusions. For costs and more complete information, contact your Northwestern Mutual representative.

Download 90 Life Brochure

NMFN-PL-002 (1209)

Personal Protection with 65 Life

65 Life is a good permanent life insurance choice for personal protection when cash value accumulation is of prime concern. A shorter premium paying period means higher premiums and cash values build faster.

On the life of a breadwinner . . . permanent life insurance protects a family’s standard of living.

On the life of a homemaker . . . it provides funds to replace lost household services and child care.

On the life of a child . . . with the Additional Purchase Benefit, it can guarantee insurability for years to come.

On the life of anyone . . . it becomes paid-up at age 65, and can be kept in force or converted to an annuity to provide retirement income.

The cash value will be available via partial surrenders or loans both for life’s emergencies and life’s opportunities. College educations may be financed, mortgages may be paid off earlier, and life during retirement may be made a little more comfortable.

Protection Is Permanent as Long as Premiums Are Paid

• Permanent life insurance premiums are guaranteed level and payable to age 65 or until death, if sooner.
• Dividends can increase your coverage or reduce your premium outlay – your choice.
• Cash values may increase faster when dividends are used to increase policy values.
• Cash values are accessible and available by either surrendering part of the coverage or via loans for emergency or opportunity.

Business Protection

For the business owner interested in providing benefits to executive employees, or when insuring a few key people, 65 Life may fit the bill.

Offers security and value during working years, and upon retirement age at 65 will be fully paid-up and can provide various options.

At age 65, the business has the option of surrendering the policy, transferring the policy or annuitizing the policy to fund retirement payments to an employee.

Deferred Compensation, Bonus, and Key Employee plans are often best funded with permanent, level premium products.

One of the best vehicles for fulfilling Buy-Sell agreements and Split-Dollar arrangements often turns out to be Northwestern Mutual’s 65 Life product especially when higher cash values are needed sooner.

65 Life Specifications

Features

• Guaranteed death benefit
• Guaranteed minimum cash value
• Guaranteed premiums
• Eligible to receive dividends
• Optional additional premiums and lump sums

Issues Ages

• Ages 0-55

Policy Sizes

• Minimum amount: $25,000
• Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

• Original guaranteed face amount plus any paid-up additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Premiums

• Level premiums are guaranteed and payable to age 65 or until death, if sooner.

Dividend Options*

• Increase policy values.
• Reduce premium payments.
• Accumulate at interest.
• Receive in cash.

*Dividends are not guaranteed.

Options available if premium payments are missed

• Automatic Premium Loan (APL) supported by the cash value.
• Remain in force as a reduced paid-up permanent life insurance plan.
• Remain in force for a limited period of time as extended term insurance.
• Cash surrender.

Policy Loans

• Most of the accumulated cash value in a permanent life insurance policy is available for loan.
• Variable loan rate option.*
• With “Direct Recognition,” the percentage of cash value borrowed affects amount of dividend credited.
• Any outstanding loan and accrued interest balances are deducted from the policy proceeds upon surrender or death.

*In Arkansas, 65 Life policies will have 5%.

Optional Policy Benefits**

• Waiver of Premium (Ages 0-55)
• Indexed Protection (Ages 0-55)
• Additional Purchase (Ages 0-38)

**Subject to underwriting and/or additional cost.
This policy has exclusions. For costs and more complete information, contact a Northwestern Mutual representative

Download 65 Life Brochure

NMFN-PL-003 (1209)

Single Premium Life Insurance

Single Premium Life is a good choice of permanent life insurance when a lump sum of cash (from a savings or retirement account, an inheritance, an insurance payout, or even a lottery windfall) is available and permanent life insurance coverage is desired.

Depending on the age of the insured, a one-time premium payment may secure several times that amount in coverage immediately. Over time, the amount of protection may increase until it is many times greater than the amount paid into the policy.

• A cash value exists as soon as your policy becomes effective.
• The gains on your policy’s cash value grow on a tax-deferred basis.
• Any cash value withdrawn through loan or surrender would be taxed more heavily than cash withdrawn from other kinds of permanent life insurance policies. This plan is most appropriate if you plan to keep it in force, with values intact until death.
• Your beneficiaries generally receive the death proceeds income tax free (under current laws).

Single Premium Life Insurance Specifications

Features

• Guaranteed death benefit.
• Guaranteed minimum cash value.
• Guaranteed to not require additional premiums.
• Eligible to receive dividends.

Issues Ages

• Ages 0-85

Policy Sizes

• Minimum amounts: $25,000, Ages 0-85.
  
  A smaller amount is allowed if the premium (including policy fee, class and flat extras) is in excess of $10,000.
   
• Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

• Original guaranteed face amount plus any dividend additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Dividend Options*

• Increase policy values
• Accumulate at interest
• Receive in cash

*Dividends are not guaranteed.

Policy Loans

• Most of the accumulated cash value in a permanent life insurance policy is available for loan.
• Variable loan rate option.*
• With “Direct Recognition” the percentage of cash value borrowed affects amount of dividend credited.
• Any outstanding loan and accrued interest balances are deducted from the policy process upon surrender or death.

*In Arkansas, Single Premium Life policies will have 5%.

Because of the lump sum premium payment this policy is considered a Modified Endowment Contract (MEC), and therefore will be subject to different taxation issues than other life insurance policies including taxation of cash withdrawals that occur prior to age 59 1/2.

Download Single Premium Life brochure

NMFN-PL-004 (1209)