The policy proceeds, or benefit that is promised to the designated beneficiary of a life insurance contract upon the insured individual's death.

Amounts levied on the property of the deceased, such as estate taxes (federal) and inheritance taxes (state).

An optional policy benefit, available only with Joint CompLife, that waives premiums after the first death occurs. The insured covered by the benefit can be either or both joint-insureds and is established, along with the duration of the benefit period, at the time of issue. The benefit period can extend to the 10th anniversary, the 15th anniversary, or the life of the policy.

A deceased individual.

Level premium term insurance with a decreasing death benefit. The death benefit may decrease according to a schedule to fit a declining need such as a loan balance.

An "accumulation" annuity product under which payments are made by the annuitant, either through a single premium or a series of periodic payments, and left to accumulate on a tax-deferred basis over a period of years. It usually begins paying an income to the annuitant at retirement.

A non-qualified benefit plan under which an employee defers current income to some future date. Under such an arrangement, the employer makes an unsecured promise to pay the employee future income. The employee is not taxed on the deferred income until it is distributed and the employer receives no tax deduction for compensation until that same time. Permanent life insurance is a popular method of Deferred Compensation Plan funding. The plan usually provides retirement benefits to the employee and/or death benefits to the employee's beneficiaries.

An additional reserve amount some states require of an insurer that sets its gross premium lower than its valuation premium.

A retirement plan in which benefits are established but the contributions may vary. The defined benefit plan can be funded by a fixed annuity or a variable annuity.

The named beneficiary, to whom death proceeds will be paid directly upon the insured's death.

A method of determining dividend amounts by considering the level of loan activity on individual whole life policies. Northwestern Mutual "recognizes" the level of loan activity in order to more fairly distribute surplus in an environment where some people borrow heavily and others do not.

A term used with the generation-skipping transfer tax. It is a transfer from an individual to a skip person that is subject to estate or gift taxes.

A product that provides a lump sum payment in the event of the insured's total disability, which, in turn, the beneficiary can use to purchase the insured's ownership interest in a business.

A form of insurance coverage that provides a portion of income lost as the result of a total or partial disability caused by either an accident or an illness.

Disability insurance that protects a business in the event of a key employee's disability.

A reimbursement plan designed to cover business expenses during the total or partial disability of a professional or business person.

Cash taken from a life insurance contract in the form of loans and/or surrenders.

A trust that allows the trustee to distribute or withhold distribution of the trust's income and/or principal to beneficiaries at his or her discretion.

The transfer of property to beneficiaries.

The probate estate, less expenses and taxes.

A Financial Representative who reports to the general agent and who is responsible for covering business in a certain district.

Spreading of risk by placing assets in several categories of investments (stocks, bonds, cash and short-term investments, mortgage loans, and real estate).

A dividend is a distribution of the Company's surplus to a policyowner. This surplus can be created when the Company's investment income, claims, expenses, and lapse rates are more favorable than what was assumed in setting the premiums. Each year, the board of trustees, in its sole discretion, determines whether a part of the Company's surplus can be distributed to policyholders in the form of a dividend. The board decides which policies should get a dividend and the amount of the dividend. There is no guaranteed method or formula for the determination or allocation of this surplus. Accordingly, the Company's approach is subject to change. Neither the existence nor the amount of a dividend is guaranteed on any policy in any given year.

A dividend option under which dividends are not withdrawn from a policy but left in an account and credited with interest.

A dividend option under which dividends purchase paid-up additional insurance. Since the paid-up additional insurance may also be participating, its growth also compounds. The growth in value is tax-deferred.

A policy's actual dividend performance over past years. Ten and twenty year dividend histories for whole life policies at issue ages 25, 35, 45 and 55 are published each year in Best's Flitcraft Compend.

The policyowner's choice for use of the dividend. In participating policies, the dividend can accumulate at interest, reduce the premium, purchase additional paid-up life insurance, or be taken in cash.

A balance sheet liability account. This is the amount the company has set aside for dividend distribution to policyowners during the next year.

A schedule of dividends being paid in a given year. The three explicit components of the dividend scale are mortality, expense and investment experience. A dividend scale is not an estimate or guarantee of future results.

The DSIR is a rate that, along with mortality and expense components of the dividend calculation, is used to determine the total dividend paid on Northwestern Mutual cash value policies. The DSIR is applied to policy values that remain after charges for mortality and expenses have been deducted. The DSIR is set annually by the company and is generally reflective of the investment performance of the company's general account assets, net of investment expenses.

The amount of divisible surplus distributed by a company to all policyowners with participating policies.

A systematic investment method that allows the investor to allocate a constant amount on a regular basis. Many investors find that such a discipline helps them budget their investment program. It works by letting the "law of averages" even out marketplace volatility. It eliminates the need for market timing. For best results, regular payments should continue through good times and bad, whether securities markets are up or down.

A company that is headquartered within the state in which it is chartered.

The party who makes a gift of a life insurance policy or premium payment.

To transfer a copy of a file to your computer.

Special power of attorney in which the maker gives another person authority to make health care decisions when the maker is unable to do so, due to injury or illness.

General power of attorney that continues to be valid after the maker becomes incapacitated or incompetent.

An irrevocable generation skipping trust that is funded with life insurance or other assets. Designed to create nontaxable transfers to several generations.