Universal Life Insurance
Great coverage can be flexible.
What is universal
A universal life policy lets you build cash value, like a whole life policy does, and offers flexible premium payments, death benefits and schedules to fit your life and your budget. All while protecting your family with great coverage.
Universal life insurance may be the right choice if you want:
- Coverage that can last your entire life.
- The chance to build cash value, that grows tax-deferred, and that you can use later for other financial goals.1
- The option to adjust the amount of life insurance protection you want (within limits).
- Flexible premiums — you control the amount and frequency of your payments. (Note: the amount and timing of your payments will directly affect your policy's cash value, as well as your ability to maintain coverage in the future. Your policy's cash value will increase faster if you pay more premium in the early years and you choose to make regular payments.)
We offer two types of universal life insurance
Custom Universal Life (CUL)
CUL gives you the highest flexibility when it comes to choosing your death benefit and premium payment schedule, providing:
- The ability to meet a wide array of insurance objectives.
- Flexibility to match your protection to your needs.
- The ability to build your cash value, tax deferred.
A Single Premium universal life policy lets you pay a lump-sum from an inheritance, bonus, or other source of income to purchase a permanent life insurance policy and provide your heirs with an income-tax-free lump-sum payment (death benefit) that can be larger than your one-time premium payment.
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The Northwestern Mutual difference
A++ financial strength rating
AAA, Aaa, and AA+ the highest financial strength ratings of any life insurer from all four major rating agencies2
No. 1 in client satisfaction
Best Life Insurance Company ranked by NerdWallet, 20203
Years strong through depressions, downturns, and two world wars
1Your policy's cash value typically becomes a useful source of funds only after several years of premium payments, which allows the cash value to build up. Each method of utilizing your policy's cash value has advantages and disadvantages and is subject to different tax consequences. Surrenders of, withdrawals from and loans against a policy will reduce the policy's cash surrender value and death benefit and may also affect any dividends paid on the policy. As a general rule, surrenders and withdrawals are taxable to the extent they exceed the cost basis of the policy, while loans are not taxable when taken. Loans taken against a life insurance policy can have adverse effects if not managed properly. Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured. Repayment of loans from policy values (other than death proceeds) can potentially trigger a significant tax liability, and there may be little or no cash value remaining in the policy to pay the tax. If loans equal or exceed the cash value, the policy will terminate if additional cash payments are not made. Policyowners should consult with their tax advisors about the potential impact of any surrenders, withdrawals or loans.
2Northwestern Mutual continues to have the highest financial strength ratings awarded to any U.S. life insurer by all four of the major rating agencies: A.M. Best Company, A++ (highest), May 2021; Fitch Ratings, AAA (highest), August 2020; Moody's Investors Service, Aaa (highest), May 2021; S&P Global Ratings, AA+ (second highest), July 2021. Third-party ratings are subject to change. Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company.
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