Universal Life Insurance 

 

Universal Life Insurance is designed for those with sophisticated financial and insurance needs. The flexibility it provides can help you meet a wide array of insurance objectives from the most basic to the most complex.

Universal Life Insurance may be most advantageous:

  • When you need premium and death benefit flexibility.
  • When you want the investment performance of Northwestern Mutual’s general account.
  • When you want the opportunity to easily adjust the policy after issue.

Overview 

CUL Accumulator 

Single Premium UL 

Survivorship UL 

Contact Us 

 

Universal Life Insurance Overview

A universal life insurance contract allows you to protect against risks for today and in the future. The premium and death benefit flexibility of universal life insurance give you the ability to match your protection to your needs, whatever they may be down the road. The cash value can also help you meet a variety of other financial objectives.

Estate Planning Strategies

Uncertainty of estate tax laws has made estate planning more challenging than ever. While this uncertainty has caused some to postpone estate planning needs, doing so may jeopardize the financial future of family and/or businesses.

Universal life insurance can help you achieve the financial security that comes from protecting and preserving the estate you’ve built over your lifetime. Its flexibility allows you to adjust the policy when changes in estate tax legislation, your financial situation or any other circumstances trigger a need to review your estate planning strategy.

Business Planning

A universal life insurance contract’s ability to accumulate cash value on a tax-deferred basis can provide solutions for a variety of financial and insurance needs.

Because of the great amount of flexibility, the design of universal life works especially well with:

  • Buy/Sell Arrangements
  • Key Person coverage
  • Nonqualified Executive Benefit Programs
  • Endorsement Split Dollar Plans
  • General Corporate Liability Funding
  • Financing Employee Stock Ownership Plans

Charitable Gifting

If properly structured, giving a life insurance policy to a charity may not only provide benefits to the organization, but immediate income tax benefits to the donor as well.  A universal life insurance contract’s premium flexibility allows you to decide on the amount of your charitable contribution on a year-by-year basis.

NMFN-UL-001 (1209)

Northwestern Mutual Custom Universal Life - Accumulator

Northwestern Mutual Custom Universal Life-Accumulator is designed for those with sophisticated financial and insurance needs.

  • The flexibility it provides can help you meet a wide array of insurance objectives from the most basic to the most complex.
  • By offering a high level of death benefit and premium flexibility, you can "customize" the policy to meet your specific objectives today and in the future when those needs change.
  • This flexibility gives you the ability to match your protection to your needs, whatever they may be down the road.
  • The cash value can also help you meet a variety of other financial objectives.

Northwestern Mutual Custom Universal Life-Accumulator is a flexible premium universal life insurance policy that shares in the investment performance of Northwestern Mutual's general account.

Death Benefit

The specified amount of death benefit is chosen by the policyowner at issue. The minimum amount is $1 million. Three death benefit options are available and can be changed after issue from time to time (although some states prohibit certain option changes after issue).

Premiums

After paying the initial premium, you can determine the amount and timing of any future premiums you pay. The minimum first year premium amount is at least $25,000.

Cash Value

Like Northwestern Mutual's traditional whole life policies, the cash values in a universal life policy are invested in and benefit from the investments in Northwestern Mutual's general account. The cash value increases when you make premium payments and when interest is credited to the policy. Monthly policy charges, withdrawals and policy loans reduce the cash value.

Interest Crediting Rate

The interest crediting rate for the policy reflects factors unique to the pricing of the contract. The policy has a contractually guaranteed minimum interest crediting rate. However, the interest crediting rate applied to the policy will reflect the extent to which Northwestern Mutual's actual investment experience is more favorable than the assumptions the company used to set the guaranteed minimum rate.

Expenses

One of the primary characteristics of a universal life contract is the transparency of the expenses. Deductions made from the cash value are made on the same day of each month and reflect charges for the coming month.

Policy Loans

You may borrow from the cash value of your Northwestern Mutual Custom Universal Life-Accumulator policy. Loans may be taken at a fixed 8% interest rate. Any unpaid loans, along with accumulated interest, will be deducted from the proceeds at death or if the policy is surrendered prior to death. Within contractual limitations, there is a maximum value that can be borrowed that is less than the total cash value of the policy.

Policy Withdrawals

You may withdraw money from the policy if it has sufficient cash value. A fee may be charged. The amount available for withdrawal may be more or less than the total premiums paid. Withdrawals will reduce the policy's cash value and death benefit. Policy withdrawals may be taken up to four times a year.

Policy Lapse

The policy does not require that premiums be paid. On a monthly basis, the policy charges will be deducted from the cash value. If the funds are not sufficient to pay for the month's expenses, you may make a premium payment to cover the deficiency. If the payment is not made, the policy will lapse.

For details on the differences between the types of benefits and the availability of option changes after issue, the interest crediting rate, and the monthly policy expenses contact a Northwestern Mutual representative.

Download Northwestern Mutual Universal Life Brochure

NMFN-UL-002 (1209)

Northwestern Mutual Single Premium Universal Life Overview

Single Premium Universal Life (SPUL) is a single premium product which participates in the investment performance of Northwestern Mutual’s general account. The initial rate is dependent on the month of policy issue and applies for the first policy year.

SPUL is a great vehicle for prospects who can afford a one-time premium payment and have not only a need for protection, but who also want to accumulate cash value on a long-term, tax-deferred basis. However, because of current tax laws, the ideal SPUL owner should not have a need to access the cash value until past the age of 59½.
The SPUL target market includes prospects who find themselves with a lump sum of cash from a savings or retirement account, an inheritance, an insurance payout, or a gift. Depending on their age, the one-time premium payment can immediately purchase several times the premium amount in coverage.

SPUL is a good choice when a lump sum of cash – from a savings or retirement account, an inheritance, an insurance payout, or a gift – is available and life insurance coverage is essential. 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 one-time premium payment provides death benefit protection:

  • A cash value exists as soon as your policy becomes effective
  • Your policy benefits from the investment performance of Northwestern Mutual’s general account
  • The gains on your policy’s cash value grow on a tax-deferred basis
  • Access to cash value is available through loans; withdrawals may also be available. Consult with a tax advisor for the impact of taxation on a loan or withdrawal
  • Your named beneficiaries generally are not taxed on death proceeds (under current law)

SPUL Specifications


Features:

  • Interest crediting rate and policy charges based on NM’s general account investment performance and mortality and expense experience
  • Guaranteed minimum interest crediting rate
  • Guaranteed maximum charges
  • No surrender charges

Issue Ages

  • Ages 0-85

Policy Sizes

Minimum death benefit amount:
$50,000

Maximum death benefit amount:
Based on underwriting and retention limits

Death Proceeds

The death benefit is scheduled to not decrease during the initial period, which is 20 years for most ages.

Portfolio Based

The policy participates in the investment performance of Northwestern Mutual’s general account.

Policy Loans*

  • Most of the accumulated cash value is available for loan. However, loans may increase the likelihood of lapse
  • Policy loans are available
  • A policy debt expense charge is deducted while a loan is outstanding
  • Policy loans may be repaid
  • Any outstanding loan and accrued interest balances are deducted from the policy proceeds upon death

Policy Withdrawals*

Policy withdrawal is available to the extent of gain in the policy.

* 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 Northwestern Mutual Single Premium Universal Life Brochure

NMFN-UL-003 (1213)

Northwestern Mutual Survivorship Universal Life

Life insurance is one of the most cost-effective ways to help you, your family, and/or your business offset the risk of financial loss.

Northwestern Mutual Survivorship Universal Life is designed for those with sophisticated insurance needs.

  • It can help you achieve the financial security that comes from having a plan to protect and preserve the estate you've built over your lifetime.
  • It can provide solutions for certain business planning needs such as business succession planning.

Northwestern Mutual Survivorship Universal Life provides:

  • The flexibility it provides can help you meet a wide array of insurance objectives from the most basic to the most complex.
  • By offering a high level of death benefit and premium flexibility, you can "customize" the policy to meet your specific objectives today and in the future when those needs change.
  • This flexibility gives you the ability to match your protection to your needs, whatever they may be down the road.
  • The cash value can also help you meet a variety of other financial objectives.

Northwestern Mutual Survivorship Universal Life is a flexible premium universal life insurance policy that insures two people. The death benefit is payable upon the second death of the two insured individuals. The policy shares in the investment performance of Northwestern Mutual's general account.

Death Benefit

The specified amount of death benefit is chosen by the policyowner at issue. The minimum amount is $1 million. Three death benefit options are available and can be changed after issue from time to time (although some states prohibit certain option changes after issue). If a certain level of premium payments has been made, there is a specified period during which the policy is guaranteed to remain in force, even if the cash value falls to zero.

Premiums

After paying the initial premium, you can determine the amount and timing of any future premiums you pay.

Cash Value

Like Northwestern Mutual's traditional whole life policies, the cash values are invested in and benefit from the investments in Northwestern Mutual's general account. The cash value increases when you make premium payments and when interest is credited to the policy. Monthly policy charges, withdrawals and policy loans reduce the cash value.

Interest Crediting Rate

The interest crediting rate for the policy reflects factors unique to the pricing of the contract. The policy has a contractually guaranteed minimum interest crediting rate. However, the interest crediting rate applied to the policy will reflect the extent to which Northwestern Mutual's actual investment experience is more favorable than the assumptions the company used to set the guaranteed minimum rate.

Expenses

One of the primary characteristics of a universal life contract is the transparency of the expenses. Deductions made from the cash value are made on the same day of each month and reflect charges for the coming month.

Policy Loans

You may borrow from the cash value of your Northwestern Mutual Survivorship Universal Life policy. Loans may be taken at a fixed 8% interest rate. Any unpaid loans, along with accumulated interest, will be deducted from the proceeds at death or if the policy is surrendered prior to death. Within contractual limitations, there is a maximum value that can be borrowed that is less than the total cash value of the policy.

Policy Withdrawals

You may withdraw money from the policy if it has sufficient cash value. A fee may be charged. The amount available for withdrawal may be more or less than the total premiums paid. Withdrawals will reduce the policy's cash value and death benefit. Policy withdrawals may be taken up to four times a year.

Policy Lapse

The policy does not require that premiums be paid. On a monthly basis, the policy charges will be deducted from the cash value. If the funds are not sufficient to pay for the month's expenses, you may make a premium payment to cover the deficiency. If the payment is not made, the policy will lapse.

For details on the differences between the types of benefits, availability of option changes after issue, the death benefit guarantee, the interest crediting rate, the monthly policy expenses contact a Northwestern Mutual representative.

Download Northwestern Mutual Universal Life Brochure

NMFN-UL-004 (1209)

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