1) Dan used permanent life insurance to supplement his retirement income from his IRA during downturns in the stock market. This allowed him to avoid selling stocks when prices were low.
2) Using his life insurance cash value instead of liquidating stocks helped Dan's IRA recover losses and end up with $1.42 million instead of just $271,991 by age 85.
3) Dan's total legacy value (IRA plus life insurance death benefit) was $2.89 million at age 85 when using life insurance, 23% higher than if he had not used this strategy.
The document discusses how to reverse pre-diabetes and avoid diabetes through dietary and lifestyle changes. It outlines the problem of rising rates of obesity and diabetes in the US due to changes in eating habits. The solution presented is adopting a system of healthy eating, exercise, weight loss, and nutritional supplementation to reverse pre-diabetes and maintain healthy blood sugar levels.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document provides information about prediabetes to help reduce the risk of developing diabetes. It defines prediabetes as blood sugar levels that are high but not high enough to be diabetes. The main points are:
1. Prediabetes has few or no symptoms, so blood tests are important to detect it. Uncontrolled prediabetes can lead to diabetes and health issues.
2. Risk factors for prediabetes include being overweight, family history, age over 45, high blood pressure, high cholesterol, lack of exercise, and certain ethnicities. Screening is recommended for those with risk factors.
3. Adopting a healthy diet, increasing physical activity, and losing a small amount of weight
This document discusses various moist cooking methods including poaching, boiling, braising, stewing, and steaming. It provides details on how each method works, suitable foods to use with each method, and purposes of the different moist cooking techniques. Moist cooking methods involve cooking foods in water or flavored liquids and include techniques like poaching, simmering, boiling, steaming, braising, and stewing.
CLEAN 9 DIET PLAN INSTRUCTIONS - YOUR GUIDE TO HOW CLEAN 9 WORKS!MY ALOE VERA
These Clean 9 Diet plan instructions guide you through the 9 days in a straightforward, natural way, enabling you very simply (and healthily) to cleanse and lose weight. They also offer guidance about exercise, exciting and nutritious recipes and plenty more besides! So if your question is, Clean 9 Diet how does it work? - you should find all your answers, plus answers to C9 questions you haven't asked yet, right here.
Stevia a natural non-nutritive sweetener and its potential application in fo...Yakindra Timilsena, PhD
1) Stevia is a plant native to Paraguay that contains sweet compounds, stevioside and rebaudioside A, that are 150-300 times sweeter than sugar but have no calories.
2) The leaves are processed to extract the sweet compounds, which can then be used as a natural non-nutritive sweetener in foods and drinks.
3) Stevia has potential as a high-value crop for farmers and as a substitute for sugar in the food industry given its sweetness properties and lack of calories or food safety concerns.
The document lists the dividend scale interest rates for Northwestern Mutual's General Account cash value life insurance policies each year from 1872 to 2010. The rates started at 7% in the 1870s and 1880s, gradually declined to around 5% in the early 1900s, and continued to decrease to a low of around 6% in the 1970s-1980s before falling to under 7.5% in recent decades. The rates applied differently depending on factors like loan rates and reserve rates over the years. The dividend scale interest rates are used to credit interest each year but do not represent the actual internal rate of return on cash values, which will be lower after accounting for insurance charges.
The Top Skills That Can Get You Hired in 2017LinkedIn
We analyzed all the recruiting activity on LinkedIn this year and identified the Top Skills employers seek. Starting Oct 24, learn these skills and much more for free during the Week of Learning.
#AlwaysBeLearning https://learning.linkedin.com/week-of-learning
The document discusses how to reverse pre-diabetes and avoid diabetes through dietary and lifestyle changes. It outlines the problem of rising rates of obesity and diabetes in the US due to changes in eating habits. The solution presented is adopting a system of healthy eating, exercise, weight loss, and nutritional supplementation to reverse pre-diabetes and maintain healthy blood sugar levels.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document provides information about prediabetes to help reduce the risk of developing diabetes. It defines prediabetes as blood sugar levels that are high but not high enough to be diabetes. The main points are:
1. Prediabetes has few or no symptoms, so blood tests are important to detect it. Uncontrolled prediabetes can lead to diabetes and health issues.
2. Risk factors for prediabetes include being overweight, family history, age over 45, high blood pressure, high cholesterol, lack of exercise, and certain ethnicities. Screening is recommended for those with risk factors.
3. Adopting a healthy diet, increasing physical activity, and losing a small amount of weight
This document discusses various moist cooking methods including poaching, boiling, braising, stewing, and steaming. It provides details on how each method works, suitable foods to use with each method, and purposes of the different moist cooking techniques. Moist cooking methods involve cooking foods in water or flavored liquids and include techniques like poaching, simmering, boiling, steaming, braising, and stewing.
CLEAN 9 DIET PLAN INSTRUCTIONS - YOUR GUIDE TO HOW CLEAN 9 WORKS!MY ALOE VERA
These Clean 9 Diet plan instructions guide you through the 9 days in a straightforward, natural way, enabling you very simply (and healthily) to cleanse and lose weight. They also offer guidance about exercise, exciting and nutritious recipes and plenty more besides! So if your question is, Clean 9 Diet how does it work? - you should find all your answers, plus answers to C9 questions you haven't asked yet, right here.
Stevia a natural non-nutritive sweetener and its potential application in fo...Yakindra Timilsena, PhD
1) Stevia is a plant native to Paraguay that contains sweet compounds, stevioside and rebaudioside A, that are 150-300 times sweeter than sugar but have no calories.
2) The leaves are processed to extract the sweet compounds, which can then be used as a natural non-nutritive sweetener in foods and drinks.
3) Stevia has potential as a high-value crop for farmers and as a substitute for sugar in the food industry given its sweetness properties and lack of calories or food safety concerns.
The document lists the dividend scale interest rates for Northwestern Mutual's General Account cash value life insurance policies each year from 1872 to 2010. The rates started at 7% in the 1870s and 1880s, gradually declined to around 5% in the early 1900s, and continued to decrease to a low of around 6% in the 1970s-1980s before falling to under 7.5% in recent decades. The rates applied differently depending on factors like loan rates and reserve rates over the years. The dividend scale interest rates are used to credit interest each year but do not represent the actual internal rate of return on cash values, which will be lower after accounting for insurance charges.
The Top Skills That Can Get You Hired in 2017LinkedIn
We analyzed all the recruiting activity on LinkedIn this year and identified the Top Skills employers seek. Starting Oct 24, learn these skills and much more for free during the Week of Learning.
#AlwaysBeLearning https://learning.linkedin.com/week-of-learning
OneAmerica is an insurance company that offers participating whole life insurance policies. Dividends are a benefit of these policies that can increase cash value and death benefits without additional premium payments. Dividends are determined each year based on factors like mortality rates, expenses, and investment returns being lower than projected. Policyholders can choose to use dividends to purchase additional insurance coverage, receive cash payments, or reduce premiums. Hypothetical examples show how dividends can substantially increase long-term cash values and death benefit amounts compared to a non-dividend policy. OneAmerica has historically paid dividends even during financial crises, demonstrating their long-term commitment to policyholders.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
The document describes an "Everything Solution" product that provides safety, liquidity, yield, growth, death benefits, and long-term care benefits. It is structured as an indexed universal life insurance policy that allows deposits between $100,000-$1,000,000. Account value grows based on S&P 500 index returns up to a cap, and is protected from losses by a floor. Policyholders can withdraw funds penalty-free and interest grows tax-deferred. Upon death, beneficiaries receive proceeds income tax-free. It also allows accelerating some death benefits tax-free for long-term care costs. Case studies show how the product provides growth, income, liquidity, and long-term care benefits for different
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
This document discusses how life insurance can help achieve retirement goals by providing tax advantages. It notes that life insurance builds cash value on a tax-deferred basis that can supplement retirement through tax-favored loans and withdrawals. The document provides an example of a couple using policy withdrawals in retirement to lower their taxes while funding special expenses. It highlights the benefits of leveraging a life insurance policy for retirement through its death benefit, tax-deferred growth, and potential access to cash values.
Traditional means of funding retirement like pensions and Social Security are becoming less reliable. Most retirees can expect about $1,000 monthly from Social Security alone. Many retirees rely on investment accounts to supplement retirement income, but bear markets can significantly impact account values, especially if withdrawals are taken during downturns. Purchasing a permanent life insurance policy provides a death benefit for beneficiaries and cash value that can be accessed during bear markets to avoid depleting investment accounts through withdrawals during downturns. This strategy helped one retiree's investment account balance remain over $200,000 higher by age 79 compared to withdrawing during bear years.
Individual disability income insurance protects your most valuable asset - your ability to work and earn an income. Approximately 30% of people aged 35 to 65 will suffer a disability lasting 90 days or longer. Having disability insurance is important because it can replace a portion of your income if you become injured or ill and cannot work. Without disability coverage, you may not be able to afford your expenses like your mortgage or tuition payments. Individual disability insurance fills in gaps not covered by employer-provided group long-term disability plans, which typically only provide 40-60% of your income. Contact a Principal Life representative to discuss individual disability income insurance options.
The document discusses 5 key risks to retirement planning: longevity risk, health care costs, changes to public policy like Social Security, inflation risk, and investment risk. It notes that people are living longer so savings may need to last 30 years or more in retirement. Health care costs like Medicare premiums and out-of-pocket expenses are significant. Public policy around programs like Social Security could change. Inflation erodes purchasing power over time. Market volatility from investing introduces risk to retirement savings. Proper planning and working with a financial professional can help mitigate these risks and create a retirement income plan.
The document discusses a life insurance policy that provides death benefit protection while also allowing policyholders to access a portion of the death benefit if diagnosed with a critical or chronic illness. It provides an example of a 45-year-old man who suffers a heart attack and accelerates 90% of his $500,000 policy, receiving $268,219 to pay medical bills and other expenses while keeping $50,000 of the death benefit for his family. It also gives an example of a man who develops rheumatoid arthritis at 55 and can accelerate portions of his policy annually to pay for health care costs while preserving the rest of the savings for his family and retirement. The policy is presented as a way for clients to prepare for unexpected medical
This document discusses the benefits of having zero returns in some years through the use of certain insurance and annuity strategies. It notes that many financial advisors do not discuss these strategies, which fall between traditional life insurance and financial planning. The document then outlines some of the downsides of traditional retirement plans like 401(k)s that are subject to taxes, as well as market volatility that can reduce returns. It argues that indexed insurance products allow investors to avoid losses in down years while still achieving overall growth, and help build tax-free retirement income through options like municipal bonds, Roth IRAs, and certain life insurance products.
This document describes the Transamerica Retirement Income Plus variable annuity. It offers lifetime withdrawals with rates between 4-6.5% depending on age. The annuity simplifies retirement planning by reducing choices to investment selection and contribution amount. It aims to grow and protect retirement income through features like annual compounding when withdrawals are not taken. The annuity addresses challenges retirees face like rising lifespans, declining pensions, and low interest rates.
Planning for a Financiall Successful RetirementSkoda Minotti
Regardless of where you are in the savings cycle, this informative session will help you plan to save wisely for retirement by teaching you how to assess your current financial situation, set goals and expectations, and test the likelihood that you will achieve realistic retirement savings goals.
This document provides information on using life insurance for retirement and estate planning purposes. It discusses three main reasons why retirees may still need life insurance: 1) to replace a spouse's lost income if they pass away, 2) for estate planning to distribute assets or pay estate taxes, and 3) to maximize IRA or retirement plan distributions by leaving tax-free life insurance proceeds to heirs. The document then discusses how much life insurance retirees may need based on obligations and supporting future family income needs. It also provides strategies for using existing life insurance policies, such as 1035 exchanges to annuities or lower death benefit policies, to gain tax benefits and income. Finally, it discusses how life insurance trusts can be used to keep policy
The document is a newsletter from Cedar Point Financial Services providing information on various financial topics. It discusses how the tax cuts and jobs act substantially increased standard deduction amounts and made changes to itemized deductions. It notes that fewer taxpayers will be able to reduce their taxes by itemizing deductions as a result. It also provides an overview of critical illness insurance, which pays a lump sum if an individual is diagnosed with certain serious illnesses to help cover medical and living expenses. Key details about coverage, costs, and policy provisions are outlined.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to less time for compound growth. It also explains the "Rule of 72" for estimating how long it takes investments to double at a given interest rate.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to losing years of compound growth. It also explains the "Rule of 72" for how long it takes investments to double at different interest rates.
Women have unique financial issues and needs. This presentation discusses 15 of the most common misconceptions women have about general financial strategies, retirement and estate planning, insurance, as well as money and relationships. It provides guidance on strategies to help women manage their finances.
OneAmerica is an insurance company that offers participating whole life insurance policies. Dividends are a benefit of these policies that can increase cash value and death benefits without additional premium payments. Dividends are determined each year based on factors like mortality rates, expenses, and investment returns being lower than projected. Policyholders can choose to use dividends to purchase additional insurance coverage, receive cash payments, or reduce premiums. Hypothetical examples show how dividends can substantially increase long-term cash values and death benefit amounts compared to a non-dividend policy. OneAmerica has historically paid dividends even during financial crises, demonstrating their long-term commitment to policyholders.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
The document describes an "Everything Solution" product that provides safety, liquidity, yield, growth, death benefits, and long-term care benefits. It is structured as an indexed universal life insurance policy that allows deposits between $100,000-$1,000,000. Account value grows based on S&P 500 index returns up to a cap, and is protected from losses by a floor. Policyholders can withdraw funds penalty-free and interest grows tax-deferred. Upon death, beneficiaries receive proceeds income tax-free. It also allows accelerating some death benefits tax-free for long-term care costs. Case studies show how the product provides growth, income, liquidity, and long-term care benefits for different
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
This document discusses how life insurance can help achieve retirement goals by providing tax advantages. It notes that life insurance builds cash value on a tax-deferred basis that can supplement retirement through tax-favored loans and withdrawals. The document provides an example of a couple using policy withdrawals in retirement to lower their taxes while funding special expenses. It highlights the benefits of leveraging a life insurance policy for retirement through its death benefit, tax-deferred growth, and potential access to cash values.
Traditional means of funding retirement like pensions and Social Security are becoming less reliable. Most retirees can expect about $1,000 monthly from Social Security alone. Many retirees rely on investment accounts to supplement retirement income, but bear markets can significantly impact account values, especially if withdrawals are taken during downturns. Purchasing a permanent life insurance policy provides a death benefit for beneficiaries and cash value that can be accessed during bear markets to avoid depleting investment accounts through withdrawals during downturns. This strategy helped one retiree's investment account balance remain over $200,000 higher by age 79 compared to withdrawing during bear years.
Individual disability income insurance protects your most valuable asset - your ability to work and earn an income. Approximately 30% of people aged 35 to 65 will suffer a disability lasting 90 days or longer. Having disability insurance is important because it can replace a portion of your income if you become injured or ill and cannot work. Without disability coverage, you may not be able to afford your expenses like your mortgage or tuition payments. Individual disability insurance fills in gaps not covered by employer-provided group long-term disability plans, which typically only provide 40-60% of your income. Contact a Principal Life representative to discuss individual disability income insurance options.
The document discusses 5 key risks to retirement planning: longevity risk, health care costs, changes to public policy like Social Security, inflation risk, and investment risk. It notes that people are living longer so savings may need to last 30 years or more in retirement. Health care costs like Medicare premiums and out-of-pocket expenses are significant. Public policy around programs like Social Security could change. Inflation erodes purchasing power over time. Market volatility from investing introduces risk to retirement savings. Proper planning and working with a financial professional can help mitigate these risks and create a retirement income plan.
The document discusses a life insurance policy that provides death benefit protection while also allowing policyholders to access a portion of the death benefit if diagnosed with a critical or chronic illness. It provides an example of a 45-year-old man who suffers a heart attack and accelerates 90% of his $500,000 policy, receiving $268,219 to pay medical bills and other expenses while keeping $50,000 of the death benefit for his family. It also gives an example of a man who develops rheumatoid arthritis at 55 and can accelerate portions of his policy annually to pay for health care costs while preserving the rest of the savings for his family and retirement. The policy is presented as a way for clients to prepare for unexpected medical
This document discusses the benefits of having zero returns in some years through the use of certain insurance and annuity strategies. It notes that many financial advisors do not discuss these strategies, which fall between traditional life insurance and financial planning. The document then outlines some of the downsides of traditional retirement plans like 401(k)s that are subject to taxes, as well as market volatility that can reduce returns. It argues that indexed insurance products allow investors to avoid losses in down years while still achieving overall growth, and help build tax-free retirement income through options like municipal bonds, Roth IRAs, and certain life insurance products.
This document describes the Transamerica Retirement Income Plus variable annuity. It offers lifetime withdrawals with rates between 4-6.5% depending on age. The annuity simplifies retirement planning by reducing choices to investment selection and contribution amount. It aims to grow and protect retirement income through features like annual compounding when withdrawals are not taken. The annuity addresses challenges retirees face like rising lifespans, declining pensions, and low interest rates.
Planning for a Financiall Successful RetirementSkoda Minotti
Regardless of where you are in the savings cycle, this informative session will help you plan to save wisely for retirement by teaching you how to assess your current financial situation, set goals and expectations, and test the likelihood that you will achieve realistic retirement savings goals.
This document provides information on using life insurance for retirement and estate planning purposes. It discusses three main reasons why retirees may still need life insurance: 1) to replace a spouse's lost income if they pass away, 2) for estate planning to distribute assets or pay estate taxes, and 3) to maximize IRA or retirement plan distributions by leaving tax-free life insurance proceeds to heirs. The document then discusses how much life insurance retirees may need based on obligations and supporting future family income needs. It also provides strategies for using existing life insurance policies, such as 1035 exchanges to annuities or lower death benefit policies, to gain tax benefits and income. Finally, it discusses how life insurance trusts can be used to keep policy
The document is a newsletter from Cedar Point Financial Services providing information on various financial topics. It discusses how the tax cuts and jobs act substantially increased standard deduction amounts and made changes to itemized deductions. It notes that fewer taxpayers will be able to reduce their taxes by itemizing deductions as a result. It also provides an overview of critical illness insurance, which pays a lump sum if an individual is diagnosed with certain serious illnesses to help cover medical and living expenses. Key details about coverage, costs, and policy provisions are outlined.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to less time for compound growth. It also explains the "Rule of 72" for estimating how long it takes investments to double at a given interest rate.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to losing years of compound growth. It also explains the "Rule of 72" for how long it takes investments to double at different interest rates.
Women have unique financial issues and needs. This presentation discusses 15 of the most common misconceptions women have about general financial strategies, retirement and estate planning, insurance, as well as money and relationships. It provides guidance on strategies to help women manage their finances.
1. THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY (NORTHWESTERN MUTUAL)
MANAGING UNCERTAINTY
HOW PERMANENT LIFE INSURANCE CAN ADD
FLEXIBILITY TO YOUR RETIREMENT INCOME PLAN
2. 2
Your family’s financial security is important to you. That’s why you chose permanent
life insurance – and the guaranteed death benefit it provides – to protect your loved
ones should something happen to you.
But what about protecting your own financial security,
especially in retirement? Permanent life insurance usually isn’t
the first tool that comes to mind when considering the different
options available to provide supplemental income during
retirement. However, in certain circumstances, permanent life
can add a level of security to your retirement income plan. To
understand how, consider the following hypothetical example.
MEET DAN,
A HYPOTHETICAL RETIREE
Dan retired in 1994 at age 65 with $1.5 million in an Individual
Retirement Arrangement (IRA) that was invested in a 50/50
mix of stocks and bonds.1
To maintain his lifestyle, Dan took
$80,000 in after-tax income from his portfolio each year
(plus a 3 percent adjustment after the first and each
subsequent year for inflation). This equated to an initial
pre-tax withdrawal of $120,000, assuming Dan paid taxes
at a 33 percent tax rate each year since 1994.
In 1969, when he was age 40, Dan also purchased a $1 million
face amount permanent life insurance policy (Northwestern
Mutual Adjustable CompLife). The policy had an annual
premium of $16,480, which Dan paid each year for the next
25 years. During that time, Dan used the non-guaranteed
dividends he received on his policy to purchase paid-up
additions, which eventually increased his death benefit to
more than $1.5 million. In addition to providing death benefit
protection for his family, Dan’s permanent life insurance policy
also accumulated cash value on a tax-deferred basis. At age 65,
Dan exercised his right to convert his policy to reduced paid-up
status, which reduced his death benefit from approximately
$1.5 million to about $1.26 million. This also meant he no longer
had to pay any more premiums.
In the 20 years since Dan retired, the markets had their share
of ups and downs. What impact did this have on Dan’s IRA value
and the retirement income it provided? The following provides
a highlight of what happened next.
Between 1994 and 2013, Dan experienced just four years of
negative returns (in 1994, 2001, 2002 and 2008). However,
as Figure 1 illustrates, those down years profoundly impacted
the balance of Dan’s IRA. In 1994, Dan had $1.5 million in his
account; by 2013, that amount had dwindled to $271,991.
During periods of falling prices, Dan had to sell more shares
to meet his retirement income needs than during up markets,
when prices were higher. The combination of negative returns
and systematic withdrawals left Dan with a smaller account
balance.
Figure 1
1StocksarerepresentedbytheSP500®Index,whichisanunmanagedgroupofsecuritiesconsideredtoberepresentativeoftheU.S.stockmarketingeneral.BondsarerepresentedbytheBarclaysU.S.AggregateBondIndex,whichisan
unmanaged,broad-basedflagshipbenchmarkthatmeasurestheinvestmentgrade,U.S.denominated,fixed-ratetaxablebondmarket.Aninvestmentcannotbemadedirectlyinanindex.Pastperformanceisnotaguaranteeoffutureresults.
Datadoesnotaccountfortaxesortransactioncosts.Thisisforillustrativepurposesonlyandisnotindicativeofanyspecificinvestment.
0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
QualifiedAccountValue
The Impact of Systematic
Withdrawals on Dan’s IRA
MANAGING UNCERTAINTY
3. 3
MANAGING UNCERTAINTY
COULD DAN HAVE MITIGATED THE
IMPACT OF VOLATILITY ON HIS
RETIREMENT SAVINGS?
One alternative Dan could have considered was to use the cash
value of his permanent life insurance policy (by surrendering
some of the paid-up additions he had previously purchased
with dividends on his policy) as a supplemental source of
retirement income during periods of market volatility. Here’s
how this would have worked.
1. In the years after Dan experienced a down market, he
would have temporarily halted withdrawals from his IRA,
taking only his required minimum distributions (RMDs).
This would have allowed Dan to avoid having to sell a
higher number of shares to meet his income needs after
prices had fallen. Reducing liquidations in periods after the
markets had fallen would have given his savings a better
opportunity to bounce back in the years when the markets
rebounded.
2. At the same time, Dan would have accessed the cash
value of his permanent life insurance policy, through the
surrender of paid-up additions, as a temporary source of
tax-free income (up to the policy’s cost basis) until the
markets turned around again.
As Figure 2 illustrates, using a portion of his permanent life
insurance cash value to provide income during years after the
markets declined proved beneficial. At age 85, Dan would have
had approximately $1.42 million in his IRA versus $271,991 had
he continued to take systematic withdrawals from his IRA and
left his permanent life insurance value untouched.2
Figure 2
This example is for illustrative purposes only. Past performance is not
a guarantee of future returns.
0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
QualifiedAccountValue
Avoiding Withdrawals During Down
Markets: The Impact on Dan’s IRA
2Pleasebemindfulthatthisscenarioassumestheinclusionofnon-guaranteedvaluesincludingdividendsusedtopurchasepaid-upadditions.Danaccessedthecashvalueviasurrenderofthese
paid-upadditions.Thenon-guaranteedvaluesweretakenfromtheaccompanyinglifeinsuranceillustration,whichcanbefoundintheAppendix.Illustratedpolicyvaluesarenotestimates
orguaranteesoffutureresultsandreflectcurrentclaim,expenseandinvestmentexperience.Actualresultsmaybemoreorlessfavorable. SeetheattachedBasicIllustrationforguaranteed
elementsandotherimportantinformation.Usingcashvaluestosupplementretirementincomewillreducealifeinsurancepolicy’sdeathbenefit.
4. WHAT ABOUT THE IMPACT ON DAN’S LIFE INSURANCE POLICY?
As mentioned earlier, there were four periods of negative
returns during the 20-year period from 1994 through 2013.
In the year after each of these down markets, Dan took a partial
surrender from his permanent life insurance to supplement his
retirement income so that he could continue to meet his goal of
having $80,000 in real after-tax retirement income each year.
However, those partial surrenders reduced Dan’s permanent
life insurance policy’s available death benefit and cash value.
To understand their impact, consider Figure 3.
As Figure 3 illustrates, from 1994 through 2013, Dan took a total of
$275,100 in non-taxable partial surrenders. This left him with a net
cash value and a net death benefit that were each 28.6 percent
smaller than if he had taken no surrenders from his policy.3
Life Insurance without Surrenders Life Insurance with Partial Surrenders
Age Annual
Non-Taxable
Surrendered
Amount
Net Cash
Value End
of Year*
Net Death
Benefit
End of Year*
Age Annual
Non-Taxable
Surrendered
Amount*
Net Cash
Value End
of Year*
Net Death
Benefit
End of Year*
65 $0 $699,679 $1,266,549 65 $0 $699,679 $1,266,549
66 $0 $735,526 $1,297,636 66 $82,400 $648,900 $1,144,809
67 $0 $772,992 $1,329,651 67 $0 $681,950 $1,173,047
68 $0 $812,129 $1,362,587 68 $0 $716,473 $1,202,097
69 $0 $853,012 $1,396,390 69 $0 $752,538 $1,231,912
70 $0 $895,693 $1,431,254 70 $0 $790,187 $1,262,663
71 $0 $940,199 $1,476,204 71 $0 $829,445 $1,294,371
72 $0 $986,601 $1,504,699 72 $0 $870,377 $1,327,443
73 $0 $1,034,942 $1,543,699 73 $48,800 $861,827 $1,285,484
74 $0 $1,085,293 $1,584,116 74 $56,900 $844,080 $1,232,036
75 $0 $1,137,692 $1,625,972 75 $0 $884,825 $1,264,579
76 $0 $1,192,176 $1,669,247 76 $0 $927,192 $1,298,225
77 $0 $1,248,778 $1,714,131 77 $0 $971,206 $1,333,122
78 $0 $1,307,469 $1,760,760 78 $0 $1,016,843 $1,369,376
79 $0 $1,368,198 $1,809,260 79 $0 $1,064,065 $1,407,085
80 $0 $1,430,817 $1,859,485 80 $87,000 $1,021,773 $1,327,893
81 $0 $1,495,251 $1,911,524 81 $0 $1,067,776 $1,365,042
82 $0 $1,561,373 $1,965,080 82 $0 $1,114,986 $1,403,275
83 $0 $1,629,075 $2,019,982 83 $0 $1,163,322 $1,442,469
84 $0 $1,698,244 $2,076,246 84 $0 $1,212,706 $1,482,635
* Includes non-guaranteed life insurance values taken from the accompanying life insurance illustration found in the Appendix. Non-guaranteed values include dividends, which
are not guaranteed. Illustrated policy values are not estimates or guarantees of future results and reflect current claim, expense and investment experience. Actual results may
be more or less favorable. See the attached Basic Illustration for guaranteed elements and other important information.
Figure 3
3The28.6percentchangeinDan’snetcashvaluewascalculatedbysubtractinghisyear-endnetcashvalueatage84withpartialsurrenders($1,212,706)fromhisyear-endnetcashvalueatage84withoutsurrenders($1,698,244)anddividing
thatamount($485,538)bythenetcashvaluewithoutsurrenders($1,698,244).The28.6percentchangeinDan’snetdeathbenefitwascalculatedbysubtractinghisyear-endnetdeathbenefitatage84withpartialsurrenders($1,482,635)from
hisyear-endnetlegacyvalueatage84withoutsurrenders($2,076,246)anddividingthatamount($593,611)bythenetlegacyvaluewithoutsurrenders($2,076,246).
4
MANAGING UNCERTAINTY
5. 5
MANAGING UNCERTAINTY
HOW DID THIS IMPACT HIS TOTAL
LEGACY VALUE?
Because Dan avoided liquidating part of his portfolio when
share prices were falling, his portfolio was able to recover
lost value once the market headed higher again. As Figure 4
illustrates, this helped Dan’s IRA to be worth $1,416,668 at age
85 versus $271,991 had he continued to withdraw $120,000
each year from his account through up and down markets.
Assuming Dan died at age 85, this also meant that the total
legacy value (that is, the total account value of his IRA plus his
life insurance death benefit) that he had available to transfer to
his heirs was 23 percent higher ($2,899,303 versus $2,348,237)
than if he had not used his cash value to supplement his IRA
withdrawals.
Figure 4
Of course, death benefit protection is the first priority of life
insurance and the primary reason to purchase a policy. For this
reason, it’s important that you carefully consider your desire
to leave your family a death benefit before accessing any cash
value in your policy. Any partial surrenders or withdrawals you
take will decrease your policy’s death benefit and cash value.
BUY TERM AND INVEST THE REST?
Some people think that buying term insurance makes better
economic sense than purchasing a permanent life insurance
policy. To put this debate to rest, consider how Dan would
have fared had he bought a $1 million term insurance policy
with a non-level premium schedule instead of permanent life
insurance in 1969 (when he was 40) and invested the “rest.”
For the purpose of this example, assume Dan terminated the
term policy at age 65.
Let’s also say that Dan took the difference in cost between
permanent and term insurance and put that money in a
hypothetical “side” account that earned an average annual pre-
tax return of 5 percent. Also, Dan paid taxes at a hypothetical
marginal tax rate of 33 percent and used his account to
supplement his retirement income in the years directly
following a down market, when he took only RMDs from his IRA.
Had Dan bought term insurance and invested the difference, he
would have had $662,529 remaining in his side account at age
85 — that’s 45 percent less than the $1,212,706 net cash value
his permanent life insurance provided.5
What about death benefit protection?
Unless Dan had elected to continue paying premiums each
year after age 65, his term life insurance coverage would have
terminated, leaving his heirs without death benefit protection.
In contrast, Dan’s heirs would have received a death benefit of
$1,482,635 from his permanent life insurance policy had he died
at age 85 even though his premium payments ceased at age
65, when the policy was paid up.
4Includesnon-guaranteedlifeinsurancevaluestakenfromtheaccompanyinglifeinsuranceillustrationfoundintheAppendix.Non-guaranteedvaluesincludedividends,whicharenotguaranteed.Illustratedpolicyvaluesarenotestimatesor
guaranteesoffutureresultsandreflectcurrentclaim,expenseandinvestmentexperience.Actualresultsmaybemoreorlessfavorable.SeetheattachedBasicIllustrationforguaranteedelementsandotherimportantinformation.
5Assumes$1,000,000NorthwesternMutualT80Policywithanon-levelpremiumscheduleterminatedatage65.
Total Legacy Value at Age 854
(Qualified Account + Policy Death Benefit)
0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
1994-2013 1994-2013
Using Permanent Life
Insurance to Supplement
Retirement Income
Not Using Permanent Life
Insurance to Supplement
Retirement Income
Qualified Account Value
$271,991
Qualified Account Value
$1,416,668
Policy Death Benefit
$1,482,635
Policy Death Benefit
$2,076,246
6. Figure 5 compares the total legacy value at age 85 of using
permanent life insurance to supplement retirement income
in down markets versus owning term life insurance, investing
the difference and using that account to provide supplemental
retirement income.
Figure 5
Keep in mind that these hypothetical scenarios are for
illustrative purposes only and are not indicative of any particular
investment; nor are they recommendations of an investment
strategy or how to structure your portfolio. All investments
carry some level of risk including the potential loss of principal
invested.
These examples assume a specific time period and the inclusion
of assumed dividends and other non-guaranteed benefits. No
investment strategy, including the scenario outlined here, can
guarantee a profit or protect against a loss. The performance
data used is historical and does not guarantee future results.
TESTING THE APPROACH AGAINST
DIFFERENT PAST MARKET
ENVIRONMENTS
Because the markets likely will not repeat the same sequence
of returns that occurred during the 20-year period of our
example, we also compared what would have happened had
Dan retired at different times and used paid-up additions from
his cash value permanent life insurance policy to supplement
his retirement income.
What we found is that using partial surrenders from permanent
life insurance would have been advantageous to Dan in all of
the nineteen most recent 20-year rolling periods. Figure 6
shows results from a sample of five of those rolling periods.
Of course, past performance is not indicative of future results.
Figure 6
Total Legacy Value at Age 856
(Qualified Account + Policy Death Benefit)
0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
1994-2013
39% Advantage
over Buy Term
Invest The Difference
Owning Life
Insurance and
using cash value
to supplement
qualified account
withdrawals
Owning term
insurance and
investing the
difference
withdrawals to
supplement
retirement
income
Total Legacy Value –
Five Different 20-Year Rolling Periods6
(50/50 portfolio SP 500 Corp Bonds)
0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
1976-1995 1981-2000
Owning Permanent Life Insurance and Using Cash
Value to Supplement Retirement Income
Permanent Life Insurance Death Benefit
Qualified Account Balance
1986-2005 1991-2010 1994-2013
Rolling Period
Usingthe
lifepolicyCV
Notusingthe
lifepolicyCV
Usingthe
lifepolicyCV
Notusingthe
lifepolicyCV
Usingthe
lifepolicyCV
Notusingthe
lifepolicyCV
Usingthe
lifepolicyCV
Notusingthe
lifepolicyCV
Usingthe
lifepolicyCV
Notusingthe
lifepolicyCV
6Includesnon-guaranteedlifeinsurancevaluestakenfromtheaccompanyinglifeinsuranceillustrationfoundintheAppendix.Non-guaranteedvaluesincludedividends,whicharenotguaranteed.Illustratedpolicyvaluesarenotestimatesor
guaranteesoffutureresultsandreflectcurrentclaim,expenseandinvestmentexperience.Actualresultsmaybemoreorlessfavorable.SeetheattachedBasicIllustrationforguaranteedelementsandotherimportantinformation.
Stocks are represented by the SP 500® Index, which is an unmanaged
group of securities considered to be representative of the U.S. stock
market in general. Bonds are represented by The Barclays U.S. Aggregate
Bond Index, which is an unmanaged, broad-based flagship benchmark
that measures the investment-grade, U.S. denominated, fixed-rate
taxable bond market. An investment cannot be made directly in an index.
Past performance is not a guarantee of future results. Data does not
account for taxes or transaction costs. This is for illustrative purposes only
and is not indicative of any specific investment.
6
MANAGING UNCERTAINTY
7. MANAGING UNCERTAINTY
SHOULD YOU CONSIDER
PERMANENT LIFE INSURANCE
CASH VALUES TO SUPPLEMENT
YOUR RETIREMENT INCOME?
Depending on market conditions when you retire, a period of
negative returns can have a significant impact on the longevity
of your retirement savings.
If preserving more of your retirement savings during down
markets is important to you, using your policy’s cash value may
provide the flexibility you need to navigate challenging market
conditions. It may also help limit the impact of market volatility
and withdrawal timing on your retirement portfolio.
Of course, you may want or need to preserve the full value of your
policy’s death benefit and not want to use your cash value to meet
current expenses. Or you may have other options for meeting
your income needs in a down market. For example, you may have
a sufficient source of other reliable income, such as a pension,
annuity or cash alternatives that may be able to withstand a
significant market downturn and still cover your living expenses.
Keepinmindthatthehypotheticalexamplespresentedhereare
forillustrativepurposesonly.ItassumesthatDanreceivedacertain
amountofdividendsovertheyears,whichwereusedtomakepaid-
upadditionstohiscashvalue.Thesedividendsarenotguaranteed.
Asaresult,youractualresultsmaybemoreorlessfavorable.
HELPING YOUR RETIREMENT
SAVINGS GO THE DISTANCE
While there is no way to adequately predict the kind of markets
you’ll retire into, you can control when and how you withdraw
your assets to meet your needs.
By combining a managed withdrawal strategy with partial
surrenders from a permanent life insurance policy, you may be
able to protect your income stream and build your legacy, even
if you retire at a time when share values are lower. Permanent
life insurance offers the ability to build guaranteed cash values
over time and the potential for additional cash value funded
with policy dividends.7
These values can provide a stable source
of supplemental income that is not impacted by short-term
market volatility. To learn more, contact your Northwestern
Mutual financial representative.
7Futuredividendsarenotguaranteed,althoughNorthwesternMutualhaspaidadividendeveryyearsince1872.
7
8. APPENDIX
NOT USING PERMANENT LIFE INSURANCE USING PERMANENT LIFE INSURANCE
INCOME DRAWN (3% INFLATION)
END OF
YEAR
BEGINNING
OF YEAR
AGE
50/50
PORTFOLIO
RETURN
(PRE TAX)
PRE-TAX
INCOME DRAWN
(3% INFLATION)
END OF YEAR
QUALIFIED
ACCOUNT
BALANCE
PERMANENT
LIFE INSURANCE
CASH VALUE*
(ADJUSTABLE
COMPLIFE
SCALE 2013)
PERMANENT
LIFE INSURANCE
DEATH BENEFIT*
(ADJUSTABLE
COMPLIFE
SCALE 2013)
PRE-TAX FROM
QUALIFIED
ACCOUNT
(REQUIRED
MINIMUM
DISTRIBUTION)
PERMANENT
LIFE INSURANCE
SURRENDER
ADDS*
(NON-TAXABLE
ADJUSTMENT)
END OF YEAR
QUALIFIED
ACCOUNT
BALANCE
PERMANENT
LIFE INSURANCE
CASH VALUE*
(ADJUSTABLE
COMPLIFE
SCALE 2013)
PERMANENT
LIFE INSURANCE
DEATH BENEFIT*
(ADJUSTABLE
COMPLIFE
SCALE 2013)
1994 65 -0.81% $120,000 $1,368,891 $699,679 $1,266,549 $120,000 $0 $1,368,891 669,679 1,266,549
1995 66 27.96% $123,600 $1,593,412 $735,526 $1,297,636 $0 $82,400 $1,751,564 648,900 1,144,809
1996 67 13.35% $127,308 $1,661,829 $772,992 $1,329,651 $127,308 $0 $1,841,095 681,950 1,173,047
1997 68 21.51% $131,127 $1,859,879 $812,129 $1,362,587 $131,127 $0 $2,077,696 716,473 1,202,097
1998 69 18.64% $135,061 $2,046,238 $853,012 $1,396,390 $135,061 $0 $2,304,645 752,538 1,231,912
1999 70 10.11% $139,113 $2,099,935 $895,693 $1,431,254 $139,113 $0 $2,384,467 790,187 1,262,663
2000 71 1.26% $143,286 $1,981,303 $940,199 $1,467,204 $143,286 $0 $2,269,420 829,445 1,294,371
2001 72 -1.72% $147,585 $1,802,178 $986,601 $1,504,699 $147,585 $0 $2,085,340 870,377 1,327,443
2002 73 -5.92% $152,012 $1,552,476 $1,034,942 $1,543,699 $78,692 $48,880 $1,887,854 861,827 1,285,484
2003 74 16.40% $156,573 $1,624,831 $1,085,293 $1,584,116 $71,240 $56,889 $2,114,539 844,080 1,232,036
2004 75 7.61% $161,270 $1,574,865 $1,137,692 $1,625,972 $161,270 $0 $2,101,815 884,825 1,264,579
2005 76 3.67% $166,108 $1,460,458 $1,192,176 $1,669,247 $166,108 $0 $2,006,747 927,192 1,298,225
2006 77 10.07% $171,091 $1,419,142 $1,248,778 $1,714,131 $171,091 $0 $2,020,415 971,206 1,333,122
2007 78 6.23% $176,224 $1,320,352 $1,307,469 $1,760,760 $176,224 $0 $1,959,084 1,016,843 1,369,376
2008 79 -15.88% $181,511 $957,993 $1,368,198 $1,809,260 $181,511 $0 $1,495,295 1,064,065 1,407,085
2009 80 16.20% $186,956 $895,906 $1,430,817 $1,859,485 $56,426 $87,020 $1,671,893 1,021,773 1,327,893
2010 81 10.80% $192,565 $779,302 $1,495,251 $1,911,524 $192,565 $0 $1,639,096 1,067,776 1,365,042
2011 82 4.98% $198,342 $609,863 $1,561,373 $1,965,080 $198,342 $0 $1,512,432 1,114,986 1,403,275
2012 83 10.11% $204,292 $446,554 $1,629,075 $2,019,982 $204,292 $0 $1,440,327 1,163,322 1,442,469
2013 84 15.19% $210,421 $271,991 $1,698,244 $2,076,246 $210,421 $0 $1,416,668 1,212,706 1,482,635
Qualified Account Balance +
Cash Value at Age 85
$1,970,235
Qualified Account Balance +
Cash Value at Age 85
$2,629,374
Qualified Account Balance +
Death Benefit at Age 85
$2,348,237
Qualified Account Balance +
Death Benefit at Age 85
$2,899,303
20-Year Summary Table
ENDING QUALIFIED ACCOUNT BALANCE
20-YEAR DURATIONS
WITHDRAWALS
EVERY YEAR FROM
QUALIFIED ACCOUNT
(WITHOUT LIFE
INSURANCE)
NO WITHDRAWALS
FROM QUALIFIED
ACCOUNT AFTER
DOWN YEAR
(WITH LIFE INSURANCE) PERCENT ADVANTAGE
TOTAL LIFE SURRENDERS
TO COVER NOT REMOVING
MONEY FROM
QUALIFIED ACCOUNT*
TOTAL LEGACY
BEGINNING OF YEAR
AGE 85
NO PERMANENT
LIFE INSURANCE
SURRENDERS
TOTAL LEGACY
BEGINNING OF YEAR
AGE 85
WITH PERMANENT
LIFE INSURANCE
SURRENDERS* PERCENT ADVANTAGE
1976 1995 $2,491,903.14 $3,752,028.54 51% $148,490.97 $4,568,149.14 $5,507,710.54 22.42%
1977 1996 $1,471,672.49 $2,897,370.02 97% $162,068.49 $3,547,918.49 $4,622,969.02 33.91%
1978 1997 $3,794,073.27 $3,966,977.40 5% $65,409.55 $5,870,319.27 $5,952,393.40 1.49%
1979 1998 $5,622,543.96 $5,765,008.31 3% $45,428.58 $7,698,789.96 $7,775,369.31 1.05%
1980 1999 $6,099,185.80 $6,238,911.29 2% $40,464.28 $8,175,431.80 $8,253,844.29 1.01%
1981 2000 $4,888,058.58 $5,059,679.14 4% $49,082.61 $6,964,304.58 $7,057,971.14 1.42%
1982 2001 $6,090,910.61 $6,187,307.31 2% $28,051.45 $8,167,156.61 $8,216,908.31 0.64%
1983 2002 $3,739,691.52 $3,937,845.86 5% $79,676.54 $5,815,937.52 $5,891,574.86 1.39%
1984 2003 $3,570,390.21 $3,916,106.57 10% $141,912.00 $5,646,636.21 $5,781,652.57 2.56%
1985 2004 $3,646,710.09 $3,992,284.94 9% $130,843.21 $5,722,956.09 $5,864,738.94 2.65%
1986 2005 $2,031,671.60 $2,534,326.37 25% $193,438.76 $4,107,917.60 $4,301,741.37 5.20%
1987 2006 $1,506,612.83 $2,090,918.14 39% $206,186.42 $3,582,858.83 $3,823,873.14 7.52%
1988 2007 $2,047,441.67 $2,571,912.74 26% $171,511.18 $4,123,687.67 $4,347,167.74 5.97%
1989 2008 $1,468,601.54 $1,899,828.71 29% $167,776.89 $3,544,847.54 $3,667,562.71 3.87%
1990 2009 $708,093.88 $1,614,198.60 128% $326,055.50 $2,784,339.88 $3,112,511.60 13.64%
1991 2010 $1,150,170.47 $2,057,145.07 79% $286,050.80 $3,226,416.47 $3,595,003.07 12.94%
1992 2011 $290,172.07 $1,286,597.43 343% $308,631.06 $2,366,418.07 $2,762,481.43 19.92%
1993 2012 $342,958.35 $1,379,295.08 302% $288,412.35 $2,419,204.35 $2,864,432.08 21.81%
1994 2013 $271,990.67 $1,416,667.64 421% $275,188.84 $2,348,236.67 $2,899,302.64 27.97%
*Includesnon-guaranteedlifeinsurancevaluestakenfromtheaccompanyinglifeinsuranceillustrationfoundinthisAppendix.Non-guaranteedvaluesincludedividends,whicharenotguaranteed.Illustratedpolicyvaluesarenotestimatesorguaranteesoffutureresultsandreflectcurrentclaim,expenseandinvestment
experience.Actualresultsmaybemoreorlessfavorable.SeetheattachedBasicIllustrationforguaranteedelementsandotherimportantinformation.
8
MANAGING UNCERTAINTY
10. A Life Insurance Illustration
Prepared For
Dan
Presented By
Dan's Northwestern Mutual Financial Representative
720 E. Wisconsin Ave.
Milwaukee, WI 53202
(414) 271-1444
December 15, 2013
Assumes a policy date in 2013. Values may be different if the policy is in a different calendar year.
Supplemental Life Insurance Illustration
Whole Life - Adjustable Policy Form Number ICC12.TT.ACL.(0513)
Northwestern Mutual Life - 720 E. Wisconsin Avenue - Milwaukee, Wisconsin 53202
Illustration No. WI2830-NHBLN-164012
ILLUS.ACL.(0608)
Page 1 of 13
10
MANAGING UNCERTAINTY
11. 11
MANAGING UNCERTAINTY
$1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2 3
Annual
4
Annual
Benefit
5
Net
Cash Surr.
6 7 8
Cash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance* Dividend*
Outlay
(Beg Yr)
Received
(Beg Yr)*
Value
Increase*
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
1,001,647
1,004,534
1,008,788
1,014,309
1,021,180
1,030,315
1,041,550
1,054,832
1,069,790
1,086,442
1,104,839
1,124,751
1,146,329
1,169,576
1,194,640
1,221,664
1,250,277
1,280,192
1,311,179
1,343,262
415
753
1,149
1,543
1,987
2,732
3,474
4,245
4,942
5,687
6,494
7,263
8,130
9,046
10,068
11,199
12,228
13,178
14,065
15,002
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
415
12,648
13,420
14,196
15,025
16,161
17,362
18,598
19,933
21,333
22,793
24,237
25,734
27,329
28,988
30,707
32,396
34,036
35,766
37,562
16,480
32,960
49,440
65,920
82,400
98,880
115,360
131,840
148,320
164,800
181,280
197,760
214,240
230,720
247,200
263,680
280,160
296,640
313,120
329,600
415
13,063
26,484
40,680
55,705
71,867
89,229
107,828
127,761
149,095
171,888
196,125
221,859
249,188
278,176
308,884
341,280
375,317
411,083
448,646
0
11,880
24,110
36,680
49,580
62,800
76,380
90,300
104,700
119,570
134,880
150,620
166,720
183,200
199,990
217,020
234,320
251,890
269,830
288,130
Initial Contract Premiums Annual Mo. ISA The assumed additions surrenders and policy loans used to produce
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
the outlays and benefits are shown on a separate page.
Under present tax law, the illustrated additions surrenders,
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 2 of 13
12. $1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2 3
Annual
4
Annual
Benefit
5
Net
Cash Surr.
6 7 8
Cash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance* Dividend*
Outlay
(Beg Yr)
Received
(Beg Yr)*
Value
Increase*
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
1,376,619
1,411,423
1,447,871
1,486,035
1,525,834
1,266,549
1,144,809
1,173,047
1,202,097
1,231,912
1,262,663
1,294,371
1,327,443
1,285,484
1,232,036
1,264,579
1,298,225
1,333,122
1,369,376
1,407,085
16,061
17,248
18,578
19,993
21,417
16,608
15,541
16,415
17,314
18,212
19,244
20,319
21,684
21,767
21,528
22,769
24,029
25,423
26,920
28,516
16,480
16,480
16,480
16,480
16,480
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
82,400
0
0
0
0
0
0
48,800
56,900
0
0
0
0
0
39,423
41,343
43,305
45,304
47,378
34,277
-50,779
33,050
34,522
36,064
37,649
39,258
40,931
-8,550
-17,746
40,745
42,366
44,013
45,637
47,221
346,080
362,560
379,040
395,520
412,000
412,000
329,600
329,600
329,600
329,600
329,600
329,600
329,600
280,800
223,900
223,900
223,900
223,900
223,900
223,900
488,069
529,413
572,718
618,023
665,402
699,679
648,900
681,950
716,473
752,538
790,187
829,445
870,377
861,827
844,080
884,825
927,192
971,206
1,016,843
1,064,065
306,720
325,520
344,430
363,390
382,430
392,584
402,811
413,136
423,562
434,115
444,732
455,392
465,959
476,441
486,874
497,242
507,546
517,723
527,701
537,408
Initial Contract Premiums Annual Mo. ISA The assumed additions surrenders and policy loans used to produce
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
the outlays and benefits are shown on a separate page.
Under present tax law, the illustrated additions surrenders,
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 3 of 13
12
MANAGING UNCERTAINTY
13. 13
MANAGING UNCERTAINTY
$1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2 3
Annual
4
Annual
Benefit
5
Net
Cash Surr.
6 7 8
Cash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance* Dividend*
Outlay
(Beg Yr)
Received
(Beg Yr)*
Value
Increase*
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
1,327,893
1,365,042
1,403,275
1,442,469
1,482,635
1,523,842
1,566,291
1,610,109
1,655,396
1,702,142
1,750,337
1,799,613
1,849,952
1,901,416
1,954,178
2,008,342
2,063,560
2,119,993
2,177,864
2,237,375
27,588
29,059
30,378
31,608
32,853
34,154
35,622
37,195
38,849
40,489
42,110
43,408
44,685
46,010
47,481
49,034
50,273
51,657
53,240
54,999
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
87,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-42,292
46,002
47,209
48,336
49,384
50,345
51,364
52,341
53,324
54,228
55,046
55,976
56,850
57,739
58,661
59,547
60,656
61,789
63,013
64,190
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
1,021,773
1,067,776
1,114,986
1,163,322
1,212,706
1,263,051
1,314,415
1,366,757
1,420,081
1,474,310
1,529,356
1,585,333
1,642,183
1,699,922
1,758,584
1,818,131
1,878,788
1,940,578
2,003,591
2,067,781
546,824
555,892
564,654
573,125
581,269
589,030
596,371
603,243
609,631
615,530
620,931
626,033
630,837
635,343
639,521
643,345
647,019
650,508
653,784
656,783
Initial Contract Premiums Annual Mo. ISA The assumed additions surrenders and policy loans used to produce
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
the outlays and benefits are shown on a separate page.
Under present tax law, the illustrated additions surrenders,
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 4 of 13
14. $1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2 3
Annual
4
Annual
Benefit
5
Net
Cash Surr.
6 7 8
Cash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance* Dividend*
Outlay
(Beg Yr)
Received
(Beg Yr)*
Value
Increase*
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
2,298,851
2,361,405
2,425,144
2,490,056
2,556,103
2,623,266
2,691,523
2,760,851
2,831,195
2,902,523
2,974,802
3,047,963
3,121,964
3,196,662
3,272,166
3,348,225
3,424,568
3,501,217
3,578,022
3,654,864
57,040
58,263
59,590
60,908
62,191
63,458
64,707
65,934
67,108
68,253
69,364
70,408
71,409
72,269
73,232
73,948
74,396
74,860
75,171
75,353
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
65,206
66,470
67,855
69,178
70,409
71,689
72,944
74,170
75,281
76,406
77,462
78,410
79,364
80,105
80,968
81,605
81,929
82,257
82,418
82,188
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
2,132,988
2,199,459
2,267,315
2,336,494
2,406,903
2,478,592
2,551,536
2,625,707
2,700,988
2,777,395
2,854,857
2,933,268
3,012,632
3,092,738
3,173,706
3,255,311
3,337,241
3,419,498
3,501,917
3,584,105
659,377
661,914
664,401
666,825
669,170
671,458
673,690
675,864
677,968
680,014
681,997
683,909
685,764
687,547
689,267
690,930
692,529
694,064
695,535
696,892
Initial Contract Premiums Annual Mo. ISA The assumed additions surrenders and policy loans used to produce
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
the outlays and benefits are shown on a separate page.
Under present tax law, the illustrated additions surrenders,
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 5 of 13
14
MANAGING UNCERTAINTY
15. 15
MANAGING UNCERTAINTY
$1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2 3
Annual
4
Annual
Benefit
5
Net
Cash Surr.
6 7 8
Cash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance* Dividend*
Outlay
(Beg Yr)
Received
(Beg Yr)*
Value
Increase*
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
81 120 3,712,174 57,309 0 0 128,068 136,900 3,712,174 710,651
Initial Contract Premiums Annual Mo. ISA The assumed additions surrenders and policy loans used to produce
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
the outlays and benefits are shown on a separate page.
Under present tax law, the illustrated additions surrenders,
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 6 of 13
16. $1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2
Annual
3 4 5 6
Cash Value
of Additions
7
Change
In
8
Total
9
Annual
Loan
10
Annual
IncomeCash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance*
A/T Outlay
(Beg Yr)
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
Surrendered
(Beg Yr)*
Loan
(Beg Yr)
Loan
(Beg Yr)
Interest
(Beg Yr)
Tax
(Beg Yr)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
1,001,647
1,004,534
1,008,788
1,014,309
1,021,180
1,030,315
1,041,550
1,054,832
1,069,790
1,086,442
1,104,839
1,124,751
1,146,329
1,169,576
1,194,640
1,221,664
1,250,277
1,280,192
1,311,179
1,343,262
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
32,960
49,440
65,920
82,400
98,880
115,360
131,840
148,320
164,800
181,280
197,760
214,240
230,720
247,200
263,680
280,160
296,640
313,120
329,600
415
13,063
26,484
40,680
55,705
71,867
89,229
107,828
127,761
149,095
171,888
196,125
221,859
249,188
278,176
308,884
341,280
375,317
411,083
448,646
0
11,880
24,110
36,680
49,580
62,800
76,380
90,300
104,700
119,570
134,880
150,620
166,720
183,200
199,990
217,020
234,320
251,890
269,830
288,130
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Contract Premiums Annual Mo. ISA Under present tax law, the illustrated additions surrenders,
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 7 of 13
16
MANAGING UNCERTAINTY
17. 17
MANAGING UNCERTAINTY
$1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2
Annual
3 4 5 6
Cash Value
of Additions
7
Change
In
8
Total
9
Annual
Loan
10
Annual
IncomeCash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance*
A/T Outlay
(Beg Yr)
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
Surrendered
(Beg Yr)*
Loan
(Beg Yr)
Loan
(Beg Yr)
Interest
(Beg Yr)
Tax
(Beg Yr)
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
1,376,619
1,411,423
1,447,871
1,486,035
1,525,834
1,266,549
1,144,809
1,173,047
1,202,097
1,231,912
1,262,663
1,294,371
1,327,443
1,285,484
1,232,036
1,264,579
1,298,225
1,333,122
1,369,376
1,407,085
16,480
16,480
16,480
16,480
16,480
0
82,400
0
0
0
0
0
0
48,800
56,900
0
0
0
0
0
CR
CR
CR
346,080
362,560
379,040
395,520
412,000
412,000
329,600
329,600
329,600
329,600
329,600
329,600
329,600
280,800
223,900
223,900
223,900
223,900
223,900
223,900
488,069
529,413
572,718
618,023
665,402
699,679
648,900
681,950
716,473
752,538
790,187
829,445
870,377
861,827
844,080
884,825
927,192
971,206
1,016,843
1,064,065
306,720
325,520
344,430
363,390
382,430
392,584
402,811
413,136
423,562
434,115
444,732
455,392
465,959
476,441
486,874
497,242
507,546
517,723
527,701
537,408
0
0
0
0
0
0
82,400
0
0
0
0
0
0
48,800
56,900
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Contract Premiums Annual Mo. ISA Under present tax law, the illustrated additions surrenders,
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 8 of 13
18. $1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2
Annual
3 4 5 6
Cash Value
of Additions
7
Change
In
8
Total
9
Annual
Loan
10
Annual
IncomeCash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance*
A/T Outlay
(Beg Yr)
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
Surrendered
(Beg Yr)*
Loan
(Beg Yr)
Loan
(Beg Yr)
Interest
(Beg Yr)
Tax
(Beg Yr)
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
1,327,893
1,365,042
1,403,275
1,442,469
1,482,635
1,523,842
1,566,291
1,610,109
1,655,396
1,702,142
1,750,337
1,799,613
1,849,952
1,901,416
1,954,178
2,008,342
2,063,560
2,119,993
2,177,864
2,237,375
87,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CR 136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
1,021,773
1,067,776
1,114,986
1,163,322
1,212,706
1,263,051
1,314,415
1,366,757
1,420,081
1,474,310
1,529,356
1,585,333
1,642,183
1,699,922
1,758,584
1,818,131
1,878,788
1,940,578
2,003,591
2,067,781
546,824
555,892
564,654
573,125
581,269
589,030
596,371
603,243
609,631
615,530
620,931
626,033
630,837
635,343
639,521
643,345
647,019
650,508
653,784
656,783
87,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Contract Premiums Annual Mo. ISA Under present tax law, the illustrated additions surrenders,
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 9 of 13
18
MANAGING UNCERTAINTY
19. 19
MANAGING UNCERTAINTY
$1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2
Annual
3 4 5 6
Cash Value
of Additions
7
Change
In
8
Total
9
Annual
Loan
10
Annual
IncomeCash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance*
A/T Outlay
(Beg Yr)
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
Surrendered
(Beg Yr)*
Loan
(Beg Yr)
Loan
(Beg Yr)
Interest
(Beg Yr)
Tax
(Beg Yr)
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
2,298,851
2,361,405
2,425,144
2,490,056
2,556,103
2,623,266
2,691,523
2,760,851
2,831,195
2,902,523
2,974,802
3,047,963
3,121,964
3,196,662
3,272,166
3,348,225
3,424,568
3,501,217
3,578,022
3,654,864
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
136,900
2,132,988
2,199,459
2,267,315
2,336,494
2,406,903
2,478,592
2,551,536
2,625,707
2,700,988
2,777,395
2,854,857
2,933,268
3,012,632
3,092,738
3,173,706
3,255,311
3,337,241
3,419,498
3,501,917
3,584,105
659,377
661,914
664,401
666,825
669,170
671,458
673,690
675,864
677,968
680,014
681,997
683,909
685,764
687,547
689,267
690,930
692,529
694,064
695,535
696,892
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Contract Premiums Annual Mo. ISA Under present tax law, the illustrated additions surrenders,
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 10 of 13
20. $1,000,000 Adjustable CompLife
For Dan Age 40 Male Base................................................ $1,000,000
Contract Premium $16,480.00 #
Policy changed to paid-up at the end of year 25
Non-Guaranteed Dividends used to purchase paid-up additions
End
1 2
Annual
3 4 5 6
Cash Value
of Additions
7
Change
In
8
Total
9
Annual
Loan
10
Annual
IncomeCash Surr. Values
of
Year
Age
(Beg Yr)
Net
Insurance*
A/T Outlay
(Beg Yr)
Total
Outlay
Net
Cash*
Guaranteed
W/O Loan
Surrendered
(Beg Yr)*
Loan
(Beg Yr)
Loan
(Beg Yr)
Interest
(Beg Yr)
Tax
(Beg Yr)
81 120 3,712,174 0 136,900 3,712,174 710,651 0 0 0 0 0
Initial Contract Premiums Annual Mo. ISA Under present tax law, the illustrated additions surrenders,
Base ..............
Adj. Term Prot ......
Disability Waiver .
16,000.00
.00
480.00
#
#
#
1,380.80
.00
41.42
outlays and benefits could be income tax free.
Consult tax advisor.
Assumed tax bracket 30%.
Subject to underwriting limits
# Premium included throughout
Underwriting amount is $1,000,000
Changes after issue are subject to underwriting.
TT Premier NT UB2
Illustration No. WI2830-NHBLN-164012 1182860
*Non-guaranteed illustrated values and benefits include dividends.
Dividends reflect loans as illustrated; additional loans may reduce
dividends. Illustrated dividends reflect current (2013 scale) claim,
expense and investment experience and are not estimates or
guarantees of future results. Dividends actually paid may be larger
or smaller than those illustrated. This illustration does not
recognize that, because of interest, a dollar in the future has less
value than a dollar today. 8% loan provision.
12/15/13 Submitted by Northwestern Mutual
The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 11 of 13
20
MANAGING UNCERTAINTY
21. 21
MANAGING UNCERTAINTY
ILLUSTRATION ASSUMPTIONS AND TRANSACTIONS
For Dan
POLICY
$1,000,000 Adjustable CompLife, age 40, Male, Premier NT
UNSCHEDULED POLICY CHANGES#
Year 25 Changed to paid-up at end of policy year
CONTRACT PREMIUMS - MANNER OF PAYMENT#*
Years 1 - 25 Paid in cash by policyowner
DIVIDEND USAGE#*
Years 1 - 81 Dividends purchase paid-up additions*
ANNUAL BENEFIT#*
Years 27
34
41
-
-
-
27
35
41
Surrender of additions*
Surrender of additions*
Surrender of additions*
TAXES#*
Years 1 - 81 Cash flows and benefits could be income tax free.
The illustrated (not guaranteed) surrenders and/or loan availability are based on using accrued
dividend values. Since dividends are not guaranteed, the actual amount available for surrender
and/or loans may differ from that illustrated.
#The preceding illustration is based on the above assumptions and transactions occuring and the
continuance of the dividend scale illustrated. Review your policy and insurance program
annually with your agent.
*Illustrated dividends reflect current (2013 scale) claim, expense and investment experience and
are not estimates or guarantees of future results. Dividends actually paid may be larger or
smaller than those illustrated. Illustrated dividends are based on the policy loan pattern assumed
above; additional loans may reduce dividends.
12/15/13 Submitted by Northwestern Mutual
Illustration No. WI2830-NHBLN-164012 The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information.
Page 12 of 13
ILLUSTRATION ASSUMPTIONS AND TRANSACTIONS
For Dan
POLICY
$1,000,000 Adjustable CompLife, age 40, Male, Premier NT
UNSCHEDULED POLICY CHANGES#
Year 25 Changed to paid-up at end of policy year
CONTRACT PREMIUMS - MANNER OF PAYMENT#*
Years 1 - 25 Paid in cash by policyowner
DIVIDEND USAGE#*
Years 1 - 81 Dividends purchase paid-up additions*
ANNUAL BENEFIT#*
Years 27
34
41
-
-
-
27
35
41
Surrender of additions*
Surrender of additions*
Surrender of additions*
TAXES#*
Years 1 - 81 Cash flows and benefits could be income tax free.
The illustrated (not guaranteed) surrenders and/or loan availability are based on using accrued
dividend values. Since dividends are not guaranteed, the actual amount available for surrender
and/or loans may differ from that illustrated.
#The preceding illustration is based on the above assumptions and transactions occuring and the
continuance of the dividend scale illustrated. Review your policy and insurance program
annually with your agent.
*Illustrated dividends reflect current (2013 scale) claim, expense and investment experience and
are not estimates or guarantees of future results. Dividends actually paid may be larger or
smaller than those illustrated. Illustrated dividends are based on the policy loan pattern assumed
above; additional loans may reduce dividends.
12/15/13 Submitted by Northwestern Mutual
Illustration No. WI2830-NHBLN-164012 The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information.
Page 12 of 13
22. Living Benefits of Life Insurance
Under current tax laws, the cash value in a life insurance policy accumulates on a tax-deferred basis, and the death
benefit is received income tax free. You may want to talk to your Financial Representative about the different ways
to remove cash from your policy, while keeping your policy inforce. These alternatives include surrendering
paid-up additions, receiving dividends in cash or taking policy loans.
Tax Consequences of Removing Cash Value. Each method of receiving cash value from your policy is subject to
different tax consequences and the following discussion only addresses general rules. They are subject to exceptions,
such as those for modified endowment contracts, which are discussed below. You should consider consulting a
qualified tax advisor on how the tax laws may apply to your individual circumstances.
Surrendering Paid-Up Additions. Most Northwestern Mutual policyowners use their dividends to purchase
paid-up additions, which increase the death benefit and cash value of the policy. You can remove cash by
surrendering paid-up additions. This will decrease the policy's death benefit and cash value. As a general rule, the
proceeds of these surrenders are not taxed until after you have taken out an amount equal to the premiums paid into
the policy. If you continue to surrender paid-up additions past this point, the proceeds will be taxed as ordinary
income in the year the surrenders are made.
Receiving Dividends in Cash. If you have your annual dividends paid to you in cash, your death benefit will remain
level and your guaranteed cash value will grow as specified in your contract. Dividends received in cash are taxed in
the same way as surrenders of paid-up additions.
Cash through Policy Loans. Your policy allows you to borrow money from the Company, using the policy's
cash value as collateral. Policy loan interest accrues on a daily basis. Unpaid interest is added to the loan.
Cumulative loan principal and interest, still outstanding at the time of death, are paid out of the policy's death
benefit. Policy loan proceeds are not taxed as long as the policy stays in force until the insured's death. If the policy
terminates prior to the insured's death, the amount of the loan principal, the loan interest and the remaining
unborrowed cash value is taxed as ordinary income to the extent it exceeds the amount of premiums paid. It is
possible that there will not be enough surrender value remaining in the policy to pay the tax. If the accumulated
policy loan principal and interest can no longer be supported by the cash value, a required minimum out of pocket
payment will be necessary, or the policy will terminate and trigger potentially significant taxable income. These
surrender squeeze situations can be avoided by limiting the amount of money you remove through surrenders and
loans.
Modified Endowment Contracts (MEC). Under IRS rules, certain life insurance policies may be classified as
Modified Endowment Contracts (MECs). MECs do not enjoy the same tax advantages as other life insurance
policies. Any loans (including premium loans), surrenders or other removal of cash value from the policy are taxed
in the year received, and may be subject to a 10% IRS penalty. The headings in your Basic Illustration will show
whether your policy is a MEC or might become a MEC in the future. Changes made to the premiums or insurance
benefit can produce MEC status other than as illustrated here. If you plan to take cash out of your policy, you should
be sure to determine whether the policy is a MEC, and to discuss the tax consequences with a qualified tax advisor.
Your Financial Representative can discuss ways to prevent your policy from ever becoming a MEC.
Additional Illustrations. Your Northwestern Mutual Financial Representative can give you additional
illustrations showing the impact that a lower dividend scale could have on illustrated dividends, loans, surrenders,
outlays, cash value amounts and insurance benefits. After the policy is issued the Financial Representative can
provide you with updated policy illustrations so that you continue to have a current picture of your policy's
performance, the cash values available in the policy, and the impact of loan principal and interest on the policy. For a
more conservative picture, you can also ask that these in-force illustrations be produced at a lower dividend scale
than that being paid at that time. A lower dividend scale will show reduced policy values available to support
supplemental income needs.
TT Premier NT 12/15/13 Submitted by Northwestern Mutual
Illustration No. WI2830-NHBLN-164012 The Northwestern Mutual Life - Milwaukee
See current Basic Illustration for guaranteed elements and other information. Page 13 of 13
22
MANAGING UNCERTAINTY
23. 23
MANAGING UNCERTAINTY
A Basic Life Insurance Illustration
Prepared For:
Dan
Prepared By:
Northwestern Mutual
720 E. Wisconsin Ave.
Milwaukee, WI 53202
(877) 926-1500
FAX (877) 926-1500
December 15, 2013
Narrative Summary
Insured:
Underwriting
Class:
Dividend Option:
Policy Loan Rate:
Policy Type:
Dan
Male, Age 40
Premier.
Purchase paid-up additional
insurance (100% of eligible
dividend to increase coverage)
8.00% loan provision
Adjustable CompLife
Initial Insurance
Amount:
Initial Contract
Premium:
Premium
Payable:
$1,000,000 (includes $1,000,000
Base)
$16,480.00 Annually (see
Premium Summary for other
premium frequencies)
To policy anniversary nearest
insured's 120th birthday
Assumes a policy date in 2013. Values may be different if the policy is in a different calendar year.
Adjustable CompLife - This life insurance
policy blends whole life (Base) with
Adjustable Term Protection. The amount of
the whole life and term are indicated above.
The whole life portion provides a guaranteed
insurance amount and a guaranteed cash value.
The optional Adjustable Term Protection can
be replaced over time with permanent paid-up
additional insurance. The paid-up additions
may be purchased by dividends, if paid,
Additional Premium payments, and/or Lump Sum
payments. Premiums are payable either in cash
or from policy values.
The Adjustable Term Protection has a
guaranteed period of 17 years unless this
guaranteed period is terminated sooner due
to dividend option change or surrender of
additions. After this guaranteed period
expires, the Adjustable Term Protection will
remain level as long as the Adjustable Term
Protection premium and dividend can support
it. However, if these amounts are
insufficient, the Adjustable Term Protection
amount will decrease unless a higher premium
is paid. If the higher premium is paid, a
new guaranteed period will be established.
The right to increase the Adjustable Term
Protection premium is only available prior
to the policy anniversary nearest the
insured's 80th birthday.
Additional Premiums and Lump Sums -
Additional Premiums are scheduled to be paid
each year, but you can reduce them in the
future. Lump Sums are one time payments. If
the Additional Premiums or Lump Sums are
changed, the cash value will change.
Additional Premiums and Lump Sums can be
used to replace the term insurance portion of
12/15/2013 Page 1 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
24. the coverage with paid-up insurance or they
can be used to increase the insurance amount.
Adding Additional Premiums or Lump Sums after
the policy is issued may require underwriting.
Guaranteed Amounts - These numbers are
based on the assumption that no dividends are
paid.
Non-Guaranteed Amounts - These numbers
are based on the assumption that the
non-guaranteed dividends currently
illustrated will continue unchanged under the
assumed dividend scale for all years shown.
This is not likely to occur; actual results
may be more or less favorable. Future
dividends may be larger or smaller than
illustrated as a result of changes in the
dividend scale and/or any policy changes you
make, which includes taking loans, partial
surrenders, changing the face amount, and
using future dividends.
Explanation of Terms
Cash Surrender Value - This is the amount
that the insurance company pays in cash if
the owner terminates a life insurance policy.
It is the sum of the guaranteed cash value
and the value of any non-guaranteed dividend
amounts credited, minus any policy debt.
Because mortality charges and expenses are
deducted from premiums, cash surrender values
will be less than the premiums accumulated at
the assumed interest rate. The Total Cash
Surrender Value or Total Cash Value includes
non-guaranteed dividend amounts. Net Cash
Value refers to the Total Cash Value minus
policy debt. (Note: This illustration assumes
no loans.) The Cash Value (CV) Increase
refers to the guaranteed or non-guaranteed
(Total) increase in cash value from one year
to the next.
Contract Premium - The amount required to be
paid to keep a life insurance policy in full
force. Premium amounts for future years, the
difference between the annual premium and
total payments on other frequencies in
future years, and an annual percentage rate
(APR) calculation, may be obtained from your
Financial Representative. The APR
calculation is also available through
www.northwesternmutual.com.
Disability Waiver of Premium - Under this
optional benefit, premiums are paid by
Northwestern Mutual during the insured's total
disability as defined in the provision. The
Premium Summary indicates whether this
benefit is included.
Dividends - Although an illustration may show
dividends being paid at the end of each year,
they are not guaranteed. A dividend
represents a return of premium due to
favorable mortality experience, investment
results and expense control. Depending on
the elements of the policy and personal
choice, the dividend may be used to purchase
paid-up additional insurance, reduce premium
payments, be left to accumulate at interest,
or be taken in cash. Once a dividend is
added to the policy under either the paid-up
additional insurance or accumulate at
interest option, it creates a guaranteed
value that becomes part of the cash value.
Insurance - The amount that the insurance
company pays on the death of the insured
person. Total Insurance includes the face
amount of the policy plus any dividend
accumulations or paid-up additional insurance
purchased by non-guaranteed dividends. Net
Insurance is the Insurance minus any policy
debt. (Note: This Basic Life Insurance
Illustration assumes no loans.)
Loan - This policy allows the policyowner to
borrow money from the Company using the
policy's cash value as collateral. A loan may
be either a cash loan or an automatic premium
loan used to pay the premium. Loan interest
12/15/2013 Page 2 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
24
MANAGING UNCERTAINTY
25. 25
MANAGING UNCERTAINTY
accrues on a daily basis. Unpaid interest is
added to the loan. The sum of the loans plus
any unpaid interest is policy debt that
reduces the policy's cash surrender value,
its life insurance death benefit, and may
reduce its dividends. If policy debt equals
or exceeds the cash value, a required minimum
out of pocket payment will be necessary to
keep the policy inforce. As a general rule,
if the policy is surrendered or terminated
other than as a death claim, the outstanding
policy debt plus the remaining cash surrender
value will be taxable income to the extent
their sum exceeds the life insurance premiums
paid. It is possible that there will not be
enough cash surrender value remaining in the
policy to pay the tax. This situation is
sometimes referred to as the surrender
squeeze. This Basic Illustration assumes no
loans. (See the Modified Endowment Contract
and the Taxation explanations for additional
tax information.)
Modified Endowment Contract (MEC) - Under
IRS rules, certain life insurance policies
may be classified as Modified Endowment
Contracts or MECs. Any loans, surrenders, or
other removal of cash value from a MEC are
taxed in the year received and may be subject
to a 10% IRS penalty. If, based on this
illustration, the policy is classified as a
MEC or might become one in the future, it is
indicated on page one under Policy Type.
Changes made to the illustrated premium or
insurance benefit can produce MEC status
other than as illustrated here. If the
removal of policy cash value is planned, be
sure to discuss the tax consequences with a
qualified tax advisor. Your Northwestern
Mutual Financial Representative can discuss
ways to prevent the policy from ever becoming
a MEC. MEC determination may vary based on
non-guaranteed items such as dividend changes.
(See the Loan and the Taxation explanations
for additional tax information.)
Nonforfeiture Provisions - If premiums are
not paid when due, either in cash or from
policy values, coverage may stay in force at
a reduced level (reduced paid-up insurance)
or at the same level for a limited period of
time (extended term insurance). If the
policy is surrendered for its cash surrender
value, coverage terminates.
Paid-up Insurance - Paid-up insurance is the
amount of insurance that would continue in
force after all premiums due on the policy
are paid. Paid-up insurance is also
available as one of the nonforfeiture options
that can be elected if premiums are
discontinued early. This policy has both a
guaranteed and a non-guaranteed paid-up
amount. The guaranteed paid-up is the amount
of insurance purchased by the guaranteed cash
value. The non-guaranteed paid-up includes
additional insurance purchased by dividends.
Paid-up insurance minus any policy debt is
payable at death. The cash value of paid-up
insurance minus any policy debt is payable at
surrender.
Payment Plans - The proceeds from death or
surrender benefits may be placed under a life
income or other payment plan offered by the
Company.
Supplemental Illustrations - These may
illustrate non-guaranteed dividends and
values used to pay the premium and/or to
remove cash value from the policy through
surrenders and loans. If actual dividends are
smaller than illustrated, a greater number of
premiums may have to be paid in cash than
shown and there may be less cash value
available to remove from the policy. In
addition to Supplemental Illustrations that
are based on the current dividend scale, your
Northwestern Mutual Financial Representative
can provide Supplemental Illustrations
showing the impact a lower dividend scale
could have on illustrated loans, surrenders,
outlays, cash value amounts and insurance
benefits. However, this Basic Illustration
assumes that all premiums are paid
out-of-pocket and that no surrenders or loans
are taken.
12/15/2013 Page 3 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
26. Taxation - Under current income tax law, the
following rules generally apply. Cash values
grow on a tax-deferred basis and life
insurance death benefits are received income
tax free. For non-Modified Endowment
Contracts, policy loan proceeds are not
subject to income tax as long as the policy
stays in force until the insured's death. In
addition, cumulative dividend and cash value
surrenders, up to the total premiums paid,
can be received in cash before incurring
taxable income. However, special rules apply
in the first 15 policy years during which
cash value surrenders could trigger taxable
income. A qualified tax advisor should be
consulted in how the tax laws may apply to
individual circumstances. (See the Loan and
the Modified Endowment Contract explanations
for additional tax information.)
IMPORTANT: THIS GLOSSARY GIVES ONLY A PARTIAL DESCRIPTION OF POLICY
TERMS AND PROVISIONS AND DOES NOT MODIFY POLICY PROVISION IN ANY
WAY. THE POLICY CONTRACT MUST BE REFERRED TO FOR EXACT DEFINITIONS.
12/15/2013 Page 4 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
26
MANAGING UNCERTAINTY
27. 27
MANAGING UNCERTAINTY
Premium Summary
Insured: DDan Policy Type: Adjustable CompLife
Male, Age 40 Initial Insurance: $1,000,000
Premiums may be paid directly or through an
Insurance Service Account (ISA). ISA is
Northwestern Mutual's unique billing
system, allowing customers to combine
payments for up to 15 policies on one bill.
Payments can be made automatically by using
electronic funds transfer. You have four
premium frequencies to choose from (the
monthly frequency is available only through
ISA):
Annual Semi-Annual* Quarterly* Monthly*
Initial Contract Premiums
Base
Disability Waiver
$16,000.00
480.00
$8,153.60
244.61
$4,116.80
123.50
$1,380.80
41.42
Total* $16,480.00 $8,398.21 $4,240.30 $1,422.22
Total First Year ISA Payments
Amount in Excess
$16,480.00 $16,796.42 $16,961.20 $17,066.64
of Annual Premium 0.00 316.42 481.20 586.64
Direct billings and payments are also available for non-ISA payments. You have three premium frequencies to
choose from:
Annual Semi-Annual* Quarterly*
Total Non-ISA Payments* $16,480.00 $16,796.42 $16,961.20
* The total may not be the sum of the initial individual contract premiums because the actual calculation multiplies
the total by a factor. The monthly frequency is available only through ISA.
12/15/2013 Page 5 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
28. Numeric Summary
Insured: Dan Policy Type: Adjustable CompLife
Male, Age 40 Initial Insurance: $1,000,000
Non-Guaranteed*
Guaranteed 50% Current Scale* Current Scale*
Year 5:
Year 10:
Year 20:
@Age 70:
@Age 85:
@Age 90:
Total Premiums
Cash Surr Value
Insurance
Paid Up
Total Premiums
Cash Surr Value
Insurance
Paid Up
Total Premiums
Cash Surr Value
Insurance
Paid Up
Total Premiums
Cash Surr Value
Insurance
Paid Up
Total Premiums
Cash Surr Value
Insurance
Paid Up
Total Premiums
Cash Surr Value
Insurance
Paid Up
$82,400
$49,580
$1,000,000
$171,432
$164,800
$119,570
$1,000,000
$350,070
$329,600
$288,130
$1,000,000
$616,162
$492,000
$479,680
$1,000,000
$785,240
$732,000
$756,550
$1,000,000
$924,945
$812,000
$821,020
$1,000,000
$947,895
$82,400
$52,601
$1,010,446
$181,878
$164,800
$133,899
$1,041,952
$392,022
$329,600
$362,784
$1,159,647
$775,809
$492,000
$679,417
$1,326,972
$1,112,212
$732,000
$1,302,849
$1,667,896
$1,592,841
$812,000
$1,518,438
$1,805,193
$1,753,088
$82,400
$55,705
$1,021,180
$192,612
$164,800
$149,095
$1,086,442
$436,512
$329,600
$448,646
$1,343,262
$959,424
$492,000
$935,267
$1,745,800
$1,531,040
$732,000
$2,147,701
$2,700,798
$2,625,743
$812,000
$2,671,345
$3,136,264
$3,084,159
*NON-GUARANTEED AMOUNTS REFLECT DIVIDENDS THAT ARE NOT GUARANTEED AND ARE
SUBJECT TO CHANGE BY NORTHWESTERN MUTUAL. ACTUAL RESULTS MAY BE MORE OR
LESS FAVORABLE. SEE NARRATIVE SUMMARY AND EXPLANATION OF TERMS.
I have received a copy of this illustration and understand that any non-guaranteed elements illustrated on this or any
supplemental illustration shown to me are subject to change and could be either higher or lower. The agent has told
me they are not guaranteed. I understand that if the policy is issued other than as illustrated here, the policyowner
will receive a revised illustration on or before policy delivery.
___________________________________
(Applicant's Signature)
_______________
(Date)
I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed
elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration.
___________________________________
(Agent's Signature)
_______________
(Date)
12/15/2013 Page 6 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
28
MANAGING UNCERTAINTY
29. 29
MANAGING UNCERTAINTY
Tabular Detail
Insured: Dan Policy Type: Adjustable CompLife
Male, Age 40 Initial Insurance: $1,000,000
Year
Beg of Yr
Contract
Premium
End of Yr
Guaranteed
Insurance
End of Yr
Non-Guaranteed
Insurance*
End of Yr
Guaranteed
Cash Surrender
Value
End of Yr
Non-Guaranteed
Cash Surrender
Value*
End of Yr
Guaranteed
Paid-up
End of Yr
Non-Guaranteed
Paid-up*
1
2
3
4
5
6
7
8
9
10
15
18
20
25
26
30
35
40
45
50
55
60
65
70
75
80
81
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,480
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,001,647
1,004,534
1,008,788
1,014,309
1,021,180
1,030,315
1,041,550
1,054,832
1,069,790
1,086,442
1,194,640
1,280,192
1,343,262
1,525,834
1,566,945
1,745,800
2,007,219
2,323,593
2,700,798
3,136,264
3,636,874
4,199,543
4,832,872
5,520,863
6,254,426
7,013,075
7,126,033
0
11,880
24,110
36,680
49,580
62,800
76,380
90,300
104,700
119,570
199,990
251,890
288,130
382,430
401,540
479,680
578,950
674,030
756,550
821,020
866,170
898,650
921,950
942,360
959,770
974,120
1,000,000
415
13,063
26,484
40,680
55,705
71,867
89,229
107,828
127,761
149,095
278,176
375,317
448,646
665,402
714,737
935,266
1,269,005
1,674,957
2,147,700
2,671,345
3,239,119
3,855,667
4,531,097
5,268,328
6,056,090
6,870,781
7,126,033
0
45,513
89,243
131,206
171,432
209,963
246,984
282,478
316,850
350,070
497,859
571,814
616,162
710,651
726,861
785,240
845,046
891,314
924,945
947,895
962,507
972,354
979,100
984,815
989,545
993,351
1,000,000
1,647
50,047
98,031
145,515
192,612
240,278
288,534
337,310
386,640
436,512
692,499
852,006
959,424
1,236,485
1,293,806
1,531,040
1,852,265
2,214,907
2,625,743
3,084,159
3,599,381
4,171,897
4,811,972
5,505,678
6,243,971
7,006,426
7,126,033
*Non-guaranteed benefits and values include dividends that are not guaranteed and are subject to change by Northwestern
Mutual. Dividends are based on the Company's current (2013) claim, expense, and investment experience. Actual results may
be more or less favorable. See Narrative Summary and Explanation of Terms.
12/15/2013 Page 7 of 7
Whole Life - Adjustable
Policy Form ICC12.TT.ACL.(0513) PM NT UB2
Illustration No. WI2830-NHBLN-164012 - 2013 Issue
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue, Milwaukee, WI 53202
(414) 271-1444
30. POLICY APPLICATION SUPPLEMENT FOR
WHOLE LIFE WITH ADJUSTABLE TERM PROTECTION
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
720 East Wisconsin Avenue,
Milwaukee, Wisconsin 53202
INSURED:
PLAN NAME:
Dan
Whole Life with Adjustable Term Protection
POLICY: Base Amount
Adjustable Term Protection
Scheduled Annual Additional Premium:
Reduce Term Insurance
Increase Coverage
Unscheduled Additional Premium (Lump Sum):
Reduce Term Insurance
Increase Coverage
Waiver
APB
$1,000,000
$0
$0.00
$0.00
$0.00
$0.00
Yes
No
ANNUAL DIVIDENDS: Purchase Paid-up Additions
POLICY LOAN INTEREST RATE: 8%
For Administrative Use Only
Underwriting Amount $1,000,000
Age 40, Male, Premier NT
WI ACL - $1,000,000 Total Protection
Dividend Scale Year 2013 TT UB2
Illustrated Policy Year 2013
Illustration No. WI2830-NHBLN-164012
1035 Exchange $0.00
MEC Year NA
90-1 ACL.Supp.(0608) Policy Number ________________
30
MANAGING UNCERTAINTY
31.
32. NorthwesternMutualisthemarketingnameforTheNorthwesternMutualLifeInsuranceCompany,Milwaukee,WI
(NM)(lifeanddisabilityinsurance,annuities)anditssubsidiaries.
67-0254 (0814) (REV 0315)
Policyvaluesbasedonanage40male,bestclass,allbase,$1milliondeathbenefitAdjustableCompLifenoaddedpremium,includeswaiverofpremiumbenefit,2013dividendscale,$16,480premiumpaidupatage65. Policysurrenders
basedonqualifiedaccountbalancebeginningat$1.5million,$120,000withdrawalsforincomeand33%taxrate.
TobeusedwithPolicyFormNoICC12.TT.ACL.(0513)andTT.ACL.(0513)orstateequivalent.
This publication was compiled by Northwestern Mutual and does not contain legal or tax advice. It is intended solely for the
information and education of Northwestern Mutual clients and their legal or tax advisors. It is not intended to be used and cannot
be used to avoid any federal tax penalties that may be imposed on a taxpayer. Taxpayers should seek advice regarding their
particular circumstances from an independent legal, accounting, or tax advisor. Tax and other planning developments after the
original date of publication may affect these discussions.