Single Premium Life Insurance Northwestern Mutual

Single Premium Life is a good choice of permanent life insurance when a lump sum of cash (from a savings or retirement account, an inheritance, an insurance payout, or even a lottery windfall) is available and permanent life insurance coverage is desired.

Depending on the age of the insured, a one-time premium payment may secure several times that amount in coverage immediately. Over time, the amount of protection may increase until it is many times greater than the amount paid into the policy.

A cash value exists as soon as your policy becomes effective.

The gains on your policy’s cash value grow on a tax-deferred basis.

Any cash value withdrawn through loan or surrender would be taxed more heavily than cash withdrawn from other kinds of permanent life insurance policies. This plan is most appropriate if you plan to keep it in force, with values intact until death.

Your beneficiaries generally receive the death proceeds income tax free (under current laws).

Single Premium Life Insurance Specifications

Features

Guaranteed death benefit.

Guaranteed minimum cash value.

Guaranteed to not require additional premiums.

Eligible to receive dividends.

Issues Ages

Ages 0-85

Policy Sizes

Minimum amounts: $25,000, Ages 0-85.

A smaller amount is allowed if the premium (including policy fee, class and flat extras) is in excess of $10,000.

Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

Original guaranteed face amount plus any dividend additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Dividend Options*

Increase policy values

Accumulate at interest

Receive in cash

*Dividends are not guaranteed.

Policy Loans

Most of the accumulated cash value in a permanent life insurance policy is available for loan.

Variable loan rate option.*

With “Direct Recognition” the percentage of cash value borrowed affects amount of dividend credited.

Any outstanding loan and accrued interest balances are deducted from the policy process upon surrender or death.

*In Arkansas, Single Premium Life policies will have 5%.

Because of the lump sum premium payment this policy is considered a Modified Endowment Contract (MEC), and therefore will be subject to different taxation issues than other life insurance policies including taxation of cash withdrawals that occur prior to age 59 1/2.

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Personal Protection with 65 Life Northwestern Mutual

65 Life is a good permanent life insurance choice for personal protection when cash value accumulation is of prime concern. A shorter premium paying period means higher premiums and cash values build faster.

On the life of a breadwinner . . . permanent life insurance protects a family’s standard of living.

On the life of a homemaker . . . it provides funds to replace lost household services and child care.

On the life of a child . . . with the Additional Purchase Benefit, it can guarantee insurability for years to come.

On the life of anyone . . . it becomes paid-up at age 65, and can be kept in force or converted to an annuity to provide retirement income.

The cash value will be available via partial surrenders or loans both for life’s emergencies and life’s opportunities. College educations may be financed, mortgages may be paid off earlier, and life during retirement may be made a little more comfortable.

Protection Is Permanent as Long as Premiums Are Paid

Permanent life insurance premiums are guaranteed level and payable to age 65 or until death, if sooner.

Dividends can increase your coverage or reduce your premium outlay – your choice.

Cash values may increase faster when dividends are used to increase policy values.

Cash values are accessible and available by either surrendering part of the coverage or via loans for emergency or opportunity.

Business Protection

For the business owner interested in providing benefits to executive employees, or when insuring a few key people, 65 Life may fit the bill.

Offers security and value during working years, and upon retirement age at 65 will be fully paid-up and can provide various options.

At age 65, the business has the option of surrendering the policy, transferring the policy or annuitizing the policy to fund retirement payments to an employee.

Deferred Compensation, Bonus, and Key Employee plans are often best funded with permanent, level premium products.

One of the best vehicles for fulfilling Buy-Sell agreements and Split-Dollar arrangements often turns out to be Northwestern Mutual’s 65 Life product especially when higher cash values are needed sooner.

65 Life Specifications

Features

Guaranteed death benefit

Guaranteed minimum cash value

Guaranteed premiums

Eligible to receive dividends

Optional additional premiums and lump sums

Issues Ages

Ages 0-55

Policy Sizes

Minimum amount: $25,000

Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

Original guaranteed face amount plus any paid-up additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Premiums

Level premiums are guaranteed and payable to age 65 or until death, if sooner.

Dividend Options*

Increase policy values.

Reduce premium payments.

Accumulate at interest.

Receive in cash.

*Dividends are not guaranteed.

Options available if premium payments are missed

Automatic Premium Loan (APL) supported by the cash value.

Remain in force as a reduced paid-up permanent life insurance plan.

Remain in force for a limited period of time as extended term insurance.

Cash surrender.

Policy Loans

Most of the accumulated cash value in a permanent life insurance policy is available for loan.

Variable loan rate option.*

With “Direct Recognition,” the percentage of cash value borrowed affects amount of dividend credited.

Any outstanding loan and accrued interest balances are deducted from the policy proceeds upon surrender or death.

*In Arkansas, 65 Life policies will have 5%.

Optional Policy Benefits**

Waiver of Premium (Ages 0-55)

Indexed Protection (Ages 0-55)

Additional Purchase (Ages 0-38)

**Subject to underwriting and/or additional cost.

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Personal Protection with 90 Life of Northwestern Mutual

90 Life is a good permanent life insurance choice when death benefit and cash value are of equal importance. A longer premium paying period means lower premiums with a longer period to build cash values.

On the life of a breadwinner . . . permanent life insurance protects a family’s standard of living.

On the life of a homemaker . . . it provides funds to replace lost household services and child care.

On the life of a child . . . with the Additional Purchase Benefit . . . it can guarantee insurability for years to come.

The cash value will be available both for life’s emergencies and life’s opportunities. College educations may be financed, mortgages may be paid off earlier, and life during retirement may be made a little more comfortable.

Permanent life insurance protection is permanent as long as premiums are paid.

Premiums are level and payable to age 90 or until death, if sooner.

Dividends can increase your coverage or reduce your premium outlay – your choice.

Cash values may increase faster when dividends are used to purchase additional insurance.

Cash values are accessible and available via loans for emergency or opportunity.

Business Protection

90 Life is an ideal permanent life insurance product to provide security and value in business situations. Whether you are interested in providing benefits to your employees, or in insuring a few executives, 90 Life may fit the bill.

Deferred Compensation, Bonus, and Key Employee plans are often best funded with permanent, level premium products. One of the best vehicles for fulfilling Buy-Sell agreements and Split Dollar arrangements often turns out to be Northwestern Mutual’s 90 Life product.

90 Life Specifications

Features

Guaranteed death benefit

Guaranteed minimum cash value

Guaranteed premiums

Eligible to receive dividends

Optional additional premiums and lump sums

Issue Ages

Ages 0-80

Policy Sizes

Minimum amounts: $25,000; $1,000 for ES-INS

Maximum amount: Based on underwriting and insurable interest limits.

Death Proceeds

Original guaranteed face amount plus any dividend additions. Any policy debt (outstanding loans and accrued interest) will be deducted from policy proceeds.

Premiums

Level premiums payable to age 90 or until death, if sooner.

Dividend Options*

Increase policy values.

Reduce premium payments.

Accumulate at interest.

Receive in cash.

*Dividends are not guaranteed.

Options Available If Premium Payments Are Missed

Automatic Premium Loan (APL) supported by the cash value.

Remain in force as a reduced paid-up permanent life insurance plan.

Remain in force for a limited period of time as extended term insurance.

Cash surrender.

Policy Loans

Most of the accumulated cash value in a permanent life insurance policy is available for loan.

Variable loan rate option.

With “Direct Recognition” the percentage of cash value borrowed affects amount of dividend credited.

Any outstanding loan and accrued interest balances are deducted from the policy proceeds upon surrender or death.

In Arkansas, 90 Life policies will have 5%.

Optional Policy Benefits*

Waiver of Premium (Ages 0-59)

Indexed Protection (Ages 0-75)

Additional Purchase (Ages 0-38)

*Subject to underwriting and/or additional cost.

This policy has exclusions. For costs and more complete information, contact your Northwestern Mutual representative.

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Top 10 Largest Life and Health Insurance company in US

Ten Largest Publicly Traded Life & Health Companies

Ranked by Asset Size as of June 30, 2006

1 MetLife, Inc. MET 500,305,000

2 Prudential Financial, Inc. PRU 440,675,000

3 Lincoln National Corporation LNC 167,380,012

4 Principal Financial Group, Inc. PFG 131,429,400

5 Nationwide Financial Services, Inc. NFS 113,083,000

6 Genworth Financial, Inc. GNW 103,646,000

7 Ameriprise Financial, Inc. AMP 96,049,000

8 Aflac Incorporated AFL 57,432,000

9 UnumProvident Corporation UNM 50,401,900

10 WellPoint, Inc. WLP 50,091,800

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Plannig to invest under Jeevan Tarang

What do I receive, if I survive the policy term I have chosen and kept the policy in force ?

You will receive Bonus accrued on the full sum insured for the full policy term you have chosen + Annual Installment @ 5.5% of the sum insured starting from second year after completion of the policy term chosen, for rest of your life.

What does my nominee get if I am no more before completion of the policy term I have chosen but kept the policy in force as on the day of my expiry ?

Sum Insured + Bonus accrued on the full insured amount for the full policy term chosen.

Is there any provision for funds during currency of the plan ?

Yes, by way of loan against surrender value after 3 years' premia have been paid at 9% simple interest per annum.

What does my nominee get if I am no more after completion of the policy term I have chosen but kept the policy in force as on the day of my expiry ?

Sum Insured + Loyalty Addition, if any.

How long I need to pay premium ?

Completion of the policy term chosen or death, should it occur earlier.

What, if I meet with fatal accident during currency of my Jeevan Tarang Plan?

Your nominee will receive an additional amount equivalent to the basic sum insured but not exceeding Rs 50,00,000 along with the policy proceeds, provided you have got Accident Benefit included in the policy by payment of additional premium.

What, if I meet with an accident and become Totally and Permanently Disabled during the currency of my Jeevan Tarang Plan?

You need not pay further premium + You will receive an additional amount equivalent to the basic isum nsured amount but not exceeding Rs 50,00,000 in monthly installments spread over next 10 years from the date of disablement, if you have Accident and Disability Rider included in your policy +All other benefits under the plan.

Can I increase my life insurance coverage ?

Yes, upto a maximum of additional Rs 25 Lakhs, provided, you have included Term Rider by payment of additional premium.

Can I cover onset of some diseases ?

No

Can I get any personal loan?

Yes, after 3 years' premia have been paid-depending on the surrender value, at 9% per annum simple interest.

Can I use Jeevan Tarang as Collateral Security for availing Housing Loan ?

Yes

What are the premium payment terms available to me under this plan ?

10,15 and 20 Years.

What are the various premium payment options available to me ?

Single, Yearly, Half-yearly, Quarterly and Monthly with 5% more.

Can I get any I.T benefit on the premium I pay ?

Yes, under section 80C of the I.T Act within Rs 1,00,000/- cap allowed for all savings covered in the section.

Is there any I.T liability on the policy proceeds received on maturity/death ?

In case of policies issued prior to 01/04/2003, Policy proceeds received by way of maturity or death are free from income-tax under Section 10(10D) of the Income-Tax Act, whatever be the accumulated bonus. In case of policies issued after 01/04/2003, if the premium paid in any year exceeds 20% of the capital sum insured, all amounts received less of the total premiums paid are subject to Income-tax in the year of receipt.

What is so special about Jeevan Tarang?

Jeevan Tarang is a permanent life insurance plan like Jeevan Anand. It offers permanent financial security to your nominee in your absence, whenever it takes place.

You are guaranteed of a regular Annuity for rest of your life (ceasing at 100) at the same rate irrespective of the market fluctuation in interest rates to take care of your various financial requirements during your old age. Your nominee under this plan is always assured of the full sum insured without any deduction towards the annual installments paid to you.

Unlike other pension plans where Annuity installments received are subject to income-tax, installments received under Jeevan Tarang are not deemed as 'salary'. As such, there is no Income-tax liability on these installments. In otherwords, you are assured of a tax-free returns @ 5.5% P.A for rest of your life once you survive the policy term you have chosen.

You can derive an additional income on the Bonus that you receive on surviving the policy term you have chosen. All these benefits viz., additional income possibility on the Bonus + tax-free 5.5% you will be getting every year + Section 80C benefit on the premium you pay + permanent life insurance coverage offered under the plan, makes Jeevan Tarang one of the best investment plans available right now.

Am I eligible to invest under Jeevan Tarang ?

Yes, if you are in the age group of 0-60 years,

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