Have more financial flexibility with permanent life insurance
Permanent life insurance, which includes whole life, universal life and variable universal life, gives you lifelong coverage1, and builds cash value that you can use for anything you want, at any time.2 And depending on the type you choose, you could have the chance to earn annual dividends, too.3 Our advisors will help you figure out the type that's best for you, and exactly how much you need.
Along with giving you the confidence of knowing that there will be lifelong protection for your loved ones, they'll receive a death benefit when you're no longer here.
Your policy builds cash value that can be used for anything.2 You also have a chance to earn dividends3 which you can take as cash, use it to pay premiums, and more.
While not guaranteed, we've paid dividends every year since 1872 to our whole life policyowners. You can take them as cash, pay premiums, or buy more coverage.
Questions about permanent life insurance? We've got answers.
Permanent life insurance is a blanket term for life insurance that's lifelong (unlike term life). In general, there are three types of permanent life insurance: whole life, universal life, and variable universal life. Each gives your beneficiaries a death benefit (payout) when you pass away—no matter when that happens. Permanent life also builds cash value over time that you can use for anything, at any time.2 And with whole life, you have the chance to earn dividends.3
Once your advisor helps you figure out how much coverage you need, you'll go through an application process that typically includes a health screening. Each type (whole life, universal life, and variable universal life) has different premium options, so you'll need to choose which works best for you.
Over time, your policy could also accumulate cash value which can become a flexible asset in your portfolio that you can use for anything, at any time.2
With a whole life policy, you can earn dividends (while not guaranteed, we've paid dividends every year since 1872) which if you roll them back into your policy, can help build the cash value quicker and increase your death benefit.3
Of course, when you pass away the company will pay your beneficiaries the death benefit.
Term life insurance is like renting a home. You pay rent (insurance premium) each month and when your lease (term) is up, you walk away (no more coverage to protect loved ones) and there's nothing to show for it financially.
Permanent life insurance, however, is like buying a home. With each mortgage payment (insurance premium), you build equity (cash value of your policy). So when you pay the premiums on your permanent life policy, you're building value while you're still alive, and eventually your policy will become a valuable asset that you own.
And because permanent life has more benefits, it's typically more expensive than the same amount of term insurance for the same person.
Permanent life insurance is not an investment. However, it can give you additional benefits that you can use throughout your life. Permanent life can accumulate cash value which generally will grow tax-deferred and can be a source of money that you can tap at any time for any reason.2 And because the cash value of non-variable permanent life insurance doesn't decline with the market, it can serve as a stable source of funds in your overall financial plan and investing strategy. See how a permanent life insurance policy can be a growing asset that you own.
There are a lot of options to choose from, so the cost will vary. What you pay monthly (or yearly) will depend on the details of your policy, the amount of coverage, as well as your age and health. Ready to get started? Connect with one of our advisors today.
When you pay your premiums some of it goes to cover the costs of insuring you, while the rest goes to your provider's overhead and your policy's cash value.1 The cash value will grow based on the company's performance (the rate of return will vary by company and policy type). With whole life insurance, your cash value never declines, which can make it a stable source of funds within your financial plan. It takes several years of paying premiums for the cash value to grow to a useful amount. Once that happens, you can use it for anything (although taking money out reduces the death benefit).2
Typically, only whole life policies earn dividends. However, they aren't guaranteed to be paid each year (just so you know, we've paid them every year since 1872). How they work is simple. When a company's payouts (death benefits), expenses, and investment returns for the year are better than the assumptions underlying policy guarantees, it can choose to pay some or all of that money back to policyowners as a dividend.
After the insured passes away, the beneficiary needs to notify the life insurance company and submit the required paperwork (e.g., a copy of the death certificate to initiate a claim). Once the claim has been processed, the insurer will get in touch to go over the payout and options for how the beneficiary would like to receive the money. How long it takes to receive the death benefit can vary greatly, depending on how quickly paperwork is submitted, but expect anywhere from a week to a month or more for a payout.
What types of permanent life insurance policies does Northwestern Mutual offer?
Whole life insurance
Be protected your entire life1 and build cash value that's guaranteed4 to grow no matter which way the markets go. Use it for anything like helping to pay for your kids' college, upgrading your home, expanding your business, or as additional retirement income.2
Have lifelong coverage1 and more flexibility for today and down the road. You can adjust your payment amount (premiums) and schedule5 to fit your income stream and budget, while still giving you benefits that you can use throughout your life.
You'll get lifelong protection with variable universal life, plus you get to choose how you want your premiums allocated and invested in the markets6 so your cash value and death benefit may grow or decline over time.7