Northwestern Mutual Life Insurance
Northwestern Mutual Life Insurance is intended to help you manage your financial risk and achieve financial security in this ever-changing world. They offer various types of life insurance policy and are known as an extremely financially strong company. Northwestern Mutual Life can help you select the right insurance policy for you, with many different features and benefits.
Some of the key features of Northwestern Mutual Life insurance include:
Conversion rights - if you have taken out a term life insurance policy this may be converted into a permanent life insurance policy without the need for any additional proof of insurability. You will generally have conversion rights if you purchase a policy within a certain age group. They also offer partial conversion for certain policies. The premium of a new permanent life insurance policy will very much depend on your age at the time you wish to convert.
Dividend options - certain participating policies will share the company's profits and these will be returned in the form of a dividend. You're able to use these policy dividends in various ways, although the vast majority of policy owners will use them to increase their life insurance policy’s value. You have the option of using these dividends to help pay your premiums, or you can simply let them accumulate and earn interest. You even have the option to receive your dividends in cash.
Guaranteed death benefit - Northwestern Mutual Life insurance policies will have a minimum death benefit that will be paid irrespective of dividends and the overall investment experience. The only reason that your death benefit may be adversely affected is if you do not pay your premium payments on time. However, death benefits are guaranteed on all their permanent life insurance policies.
Guaranteed minimum cash value - there is a minimum cash value that will be available if you surrender your contract, although this assumes that all the required premiums have been paid up to the date of surrender. These cash values are invested in and benefit from the investments made in Northwestern Mutual's general account. You will typically find that the cash value will increase when you make your premium payments and whenever interest is credited to your policy.
Missed premium payment options - Northwestern Mutual Life offer a number of non-forfeiture options which are able to protect you if you are unable to pay your policy premiums. Firstly, there is an automatic premium loan which will borrow money from the cash value of a life insurance policy to pay for any overdue premiums. This will involve interest being charged until the loan is repaid. Another option is extended term insurance, which once again will use the cash value of the policy to ensure that your full death benefit is still in force.
The paid-up insurance option will ensure that the same level of protection is always in force by once again using the policy's entire cash value. A paid-up policy will remain in force until the person insured dies. Cash surrender will allow you to receive the policy’s cash value should you surrender your policy. However, any outstanding loan balance and indeed accrued loan interest will initially be deducted from the cash value of the policy.
There are also numerous optional life insurance policy benefits which will include:
Additional purchase benefit - this option will allow you the right to purchase additional life insurance policies at certain specific dates without having to provide any evidence of insurability.
Index protection benefit - this will allow your policy's death benefit, within specified years of the policy contract, to increase. The increase in death benefit will be based on the Consumer Price Index, although there will be an annual cap on any increase.
Waiver of life insurance premium - Northwestern Mutual Life will pay your premiums if you were to become totally disabled. This disability must last for at least six months prior to the benefit taking effect, and then your premiums will be waived for the duration of your disability. This has the potential to wave your premiums for the entire period.
During a disability, your premiums will be credited to the policy which will allow the tax-deferred cash value of the policy to grow. The dividends and cash value will still be available to you for use in emergencies, and this can be used to supplement your living expenses, retirement income, or even to provide education funding. If you currently have a term insurance policy, you may even be able to convert this into a permanent plan and have the premiums on a new policy waived as well.
Northwestern Mutual Life also offers the ability to borrow from the cash value of a permanent life insurance policy. You will be able to take out a loan at a fixed or variable low rate, although you should be aware that the amount you borrow from the cash value will affect the dividends that you can expect to receive. Any part of the loan that is unpaid, in addition to the accumulated interest, will be deducted from the proceeds at death, or if you decide to surrender your policy prior to death.