This is the acronym for Frequently Asked Questions. A common feature on the Internet, FAQs are files of answers to commonly asked questions.

Federal Deposit Insurance Corporation. An independent deposit insurance agency, created by Congress as part of the Banking Act of 1933, to maintain stability and public confidence in the US banking system. FDIC insures deposits in banks and savings associations so that customers' funds, within certain limits, would be safe and available to them on demand in the event of a bank or savings association failure. The current insurance limit is $100,000 per owner. FDIC is also responsible for identifying, monitoring, and addressing risks to deposit insurance funds.

The original death benefit on a life insurance policy. On whole life policies, dividends are often used to purchase paid-up additions, thereby increasing the death benefit.

The first page of a life insurance policy. It includes basic information such as the policy number, type of policy, and premium amount, as well as the name of the insured, the owner, and the beneficiary.

The collective term for gift taxes and estate taxes the federal government imposes on transfers of property made during life or by inheritance at death.

Established in 1932, the FLMI Program is the world's largest university-level educational program in insurance. The FLMI designation is the hallmark of professionalism for managers and technical/professional personnel in the life and health insurance and financial services industries.

A designation available to actuaries who pass a series of examinations. The designation indicates that the individual has developed a knowledge of the business environments within which financial arrangements for pensions, life insurance, and health insurance operate, including the application of mathematical concepts and other techniques to the various areas of actuarial practice. The Society of Actuaries prepares the course materials and administers the national exams.

An individual, company, or association holding assets in trust for a beneficiary. The fiduciary has the responsibility of managing the money for the benefit of the beneficiary.

A division of a life insurance company that is not part of the home office and is made up of a manager, representatives, assistants and support staff.

A dividend option in which the annual dividend is used to purchase one-year term insurance at a specified amount (equal to the guaranteed cash value, for example). Any excess can be applied under another dividend option. If the dividend is insufficient to pay the term premium, the amount of coverage will decrease. Some companies allow the policyowner to make up the shortage or reduce it with accumulated dividends. Since the coverage is one-year term, premiums can become quite expensive at older ages.

A protocol that allows the transfer of files from one system to another.

A member of the Northwestern Mutual Financial Network.

Security measures designed to protect a system from unauthorized or unwelcome access.

An insurance plan that insures two lives and pays proceeds at the time of the first death. For a limited time, usually 90 days, the insured survivor has the right to purchase new insurance, at his or her attained age, without providing evidence of insurability. Northwestern Mutual does not offer this kind of product.

An annuity plan payout option which distributes payments in "set" amounts. Fixed plans provide for the systematic liquidation of principal and interest in a series of equal periodic payments which do not fluctuate over time.

A fixed loan interest rate option for variable and increasing whole life plans. The Northwestern Mutual policyowner can switch between the fixed loan interest rate (currently 8%) and a variable rate. Change requests must be in put in writing and become effective the following January 1st.

An even-dollar amount, per $1,000 of insurance, assessed for a temporary period to cover a temporary additional risk. It may also be assessed to cover a permanent additional risk that does not increase with age.

A type of fixed deferred annuity that permits flexible premium payments after the initial payment. Both principal and earnings are guaranteed.

A company that operates in one state, but is chartered and has its headquarters in another state.

An actuarial method for pricing a survivorship life (second-to-die) product. Both insureds are treated as one unit and there are no changes in premium or cash values at the first death.

An entity organized for "fellowship." Those qualifying for membership may purchase insurance coverage. Membership is based on some common ground (such as religious belief). Their rights are based on the society's bylaws and the certificate's (policy's) provisions. Certificate values may be assessable by the society if the reserves become impaired. Certificate holders generally share in any surplus refunds (dividends).

Please see 10 Day Free Look. 

A policy that is in suspense, or locked, for a specified period of time. Records are secured so that no monetary transactions can affect values, on an exceptional basis only.

The practice of deducting a product's sales and marketing expenses from the premium before crediting the cash value of the investment.

A fully-paid policy with no outstanding premiums due.

Set of mutual funds, with different investment objectives, managed and distributed by the same company. In many cases, investors may move their assets from one fund to another within the family at little or no cost.

The final beneficiaries to receive policy proceeds that remain unpaid after the death of all direct and contingent beneficiaries.

In disability insurance, an optional policy benefit that increases the monthly benefit to keep coverage in line with inflation. In the case of Norhtwestern Mutual, increases are based on changes in the Consumer Price Index, with a minimum increase of 4% on each policy anniversary, after issue, while the insured is not disabled.

An interest in property that cannot be currently possessed, used or enjoyed.

A gift is considered a future interest gift if the recipient's use, enjoyment, or possession of, or vested or contingent interest in the property transferred does not commence until a future time.