The difference between the amount received in the sale and the basis of the property.

The system utilized by Northwestern Mutual to organize its field offices. The general agency usually consists of a general agent and individual soliciting agents under contract to the general agent, plus a supporting clerical staff. Northwestern Mutual currently has 103 general agencies in cities across the United States.

An independent business person who acts under a grant of authority from a life insurance company to develop insurance business within a defined territory. The general agent is frequently an active sales person, as well as the administrator of the agency.

A flat 55 percent federal tax levied on any transfers, either during lifetime or at death, made to beneficiaries or others at least two generations below the transferor. This tax is assessed in addition to other taxes, such as estate or gift taxes.

The transfer of an asset, such as a life insurance policy, without requiring any form of payment.

State and/or federal taxes levied on the transfer of gifted property.

The transfer of property under terms that specifically limit the donee's use of the property.

The period of time between a premium's due date and the date the policy will lapse if the premium is still unpaid (usually 31 days). If the insured dies during the grace period, the unpaid premium is deducted from the policy proceeds.

A whole life policy with guaranteed annual increases in premium. Usually, the initial premium is at a very low level and increases annually by an equal amount over a 15 to 20 year period. Thereafter it remains level.

The individual who transfers property. Commonly used to describe an individual who establishes and transfers property to a trust.

A trust over which a grantor retains enough control over a period of time that the property in the trust is considered to belong to him or her for income tax purposes.

Almost everything an individual owns or controls at death including real property, personal possessions, life insurance proceeds, balances in retirement plans and so on.

The full, contracted premium amount before any dividend amount is subtracted.

Insurance written on a group basis, such as coverage under employer-sponsored plans.

Insurance purchased for a group of people which must provide coverage to all people who qualify on a class basis, regardless of individual considerations. The insurance company may refuse to renew a group contract.

A master disability insurance contract issued to an employer. It covers some or all employees, and provides long-term benefits on a group basis. Benefits are usually paid to age 65. These plans typically provide 50% to 60% of salary, and are reduced by income from other sources.

An annuity contract used exclusively for funding qualified retirement benefit plans on a group basis.

An expert in the group health or disability insurance market.

Compound annual growth rate for the number of full fiscal years shown.

If there is a negative or zero value for the first or last year, the growth is not meaningful and is marked "NM".

An historical analysis in which the rate of wealth accumulation of a particular investment instrument over a particular time range is computed.

This refers to circumstances when Northwestern Mutual will guarantee policy issue, but not the premium, on certain employer-sponsored group plans. Limitations apply for both life insurance and disability insurance coverage.

The minimum values guaranteed by the policy that will be available on surrender of the contract, assuming all required or illustrated premiums have been paid to the date of surrender.

A term used on Northwestern Mutual sales illustrations indicating that the illustrated policy loan has not been deducted from the guaranteed cash value.

For variable annuity contracts, the guarantee provides that, upon the death of the annuitant or owner during the accumulation period before age 65, the beneficiary receives at least the amount originally invested (minus withdrawals)—or—the value of the contract, whichever is greater. For fixed annuity contracts, the beneficiary receives the accumulation value if the annuitant dies before the contract matures.

The minimum death benefit that will be paid, regardless of dividend and investment experience. The benefit can be adversely affected by untimely premium payment and policy loans. Death benefits are guaranteed with traditional whole life insurance; limited guarantees apply for blended products.

A contract whereby the insurance company accepts a specified amount of money from a qualified retirement plan and agrees to refund the principal and interest at a fixed date, 1 to 15 years in the future. Interest is guaranteed for the life of the contract.

The maximum amount of insurance coverage available without submission and approval of medical evidence of insurability. The amount guaranteed could be the full policy amount, a portion thereof, or none at all.

The maximum charges the insurer will assess for mortality as specified in the contract. The tables used to base these charges are defined by law.

An individual legally appointed to manage the rights and/or property of a minor or person incapable of taking care of his or her affairs.

In universal life plans, it is the maximum premium that can be paid into the policy annually without violating IRS regulations on the required amount of pure life insurance protection.