A sales ledger or proposal showing a product's guaranteed and non-guaranteed future payments, cash values and death benefits. Non-guaranteed values are based on the company's current rates of interest, mortality and expenses. The illustration is simply an example of how the policy might perform under one specific set of assumptions. It is neither an estimate or guarantee of future results. While illustrations may be helpful in showing how a policy might perform, they are not a prediction of policy performance.

An annuity product under which life income or specified period payments begin at the start of the next period following premium payment (for example, one month or one year).

An individual designated to receive distributions of trust income.

Payments to mutual fund investors of dividends, interest, and/or short-term capital gains earned on the fund's portfolio securities after deducting operating expenses.

Amount a decedent was entitled to receive as income, but which was not includable in his taxable income for the year of his death.

A life insurance contract provision which states that after the policy has been in force for a specified period of time (usually two years), the company cannot rescind or deny a claim based on a material misrepresentation in the application.

One of Northwestern Mutual's blended CompLife policies. The ICL death benefit consists of a fixed 90 Life component, outside additions purchased by dividends, Additional Premiums and a Lump Sum at issue. Unlike Adjustable CompLife, Increasing CompLife has no Term with Insurance Benefit (TIB) and no adjustable components after issue.

The agreement to compensate or reimburse for possible damage or loss.

A premium subject to future change based on the company's then current experience. Indeterminate premium products have a guaranteed maximum to which the premium can be raised.

A fund (or account) composed of securities intended to replicate (or substantially replicate) a designated securities index with the objective of achieving a similar return.

In disability insurance, this benefit provides that benefit amounts will be increased with the rate of inflation on each anniversary of the date of disability.

An optional policy benefit that provides an increase in death benefit in years 2 through 10. The increase is based on the Consumer Price Index, and has a yearly cap of 8%.

Common in the early 1900s, small amounts of life insurance in exchange for premiums collected by agents on a weekly or monthly basis at the insured's home or place of employment.

An option available on Adjustable CompLife plans allowing the amount of coverage to keep pace with increases in the Consumer Price Index. Increases as high as 8% will occur automatically and the premium will be increased without further proof of insurability.

Existing insurance policies.

An illustration showing future (non-guaranteed) values, benefits and payments on an existing policy, usually based on the current dividend scale.

In disability insurance, the time during which the insured may be considered to be totally disabled, even though engaged in another occupation, provided the insured is unable to perform the principal duties of the original occupation.

Documentation of an application or proposed insured's occupation, residence, health history, manner of living, and general financial status, which is made by an investigating agency for consideration in the underwriting process.

The settlement option, or payment plan, which provides that the proceeds of a life insurance policy or annuity contract will be paid in a fixed amount at regular intervals for as long as the proceeds last or for a fixed number of months or years.

A type of annuity policy that guarantees that, should an annuitant die before receiving payments equivalent to the amount paid to establish the annuity, the difference will be refunded to the beneficiary in equal installments.

Those qualifications of age, health, occupation, etc., which enable the applicant to meet the requirements of an insurance company for the issuance of insurance.

The fact that the person effecting the insurance must suffer a financial loss at the death of the proposed insured. For the policy to be issued, both the owner and beneficiary must have an insurable interest.

A system whereby individuals and companies who are concerned about the potential for loss pay premiums to an insurance company which, in turn, will reimburse those individuals and companies in the event the loss occurs.

IMSA is an independent market conduct organization. Member companies adhere to a uniform set of standards and ethical market conduct principles that apply to the sale and service of individually sold life insurance and annuity products. Effective April 1, 1998, Northwestern Mutual became a member of IMSA.

This NAIC program consists of a series of ratios calculated from figures shown in company annual statements and is designed to give state regulators a prompt indication of possible financial problems.

Northwestern Mutual's unique billing system, allowing customers to combine payments for up to 15 policies on one bill. Billings can be quarterly, semi-annual or annual. Premiums and loan payments can be paid and EFT (electronic funds transfer) is available.

Same as the ISA except excess money earns interest and monthly installments are available on EFT (electronic funds transfer). To avoid commingling of money, payments on variable and annuity products cannot be combined with payments on other products.

The person whose life is covered by the insurance contract.

A trust established during the grantor's life; also called a living trust.

One of the settlement options, or payment plans, under which the proceeds of a life insurance policy are held by the company to earn interest that is paid periodically to the beneficiary. The total insurance benefit is not paid out until some specified date in the future, but there are limits as to the length of time a principal sum may be held.

The rate of interest credited on a policy's cash or account value. The stated rate includes the policy's guaranteed interest rate and the excess interest currently being paid by the insurance company. The declared rate may be net of any expenses or taxes that the company deducts from its gross rate of return.

A method of determining a policy's annual net cost by incorporating an interest factor into the calculation to reflect the time value of money.

An index of the average annual net payment (premium minus the equivalent annual dividend), which incorporates the time value of money.

This index is the average annual cost of insurance upon surrender, which incorporates the time value of money.

In disability insurance, it is coverage to replace a portion of income lost because of total or partial disability, occurring during a specified period. The Northwestern Mutual contract refers to it as "Disability Insurance Renewable for Specified Period."

If an individual dies without having a valid will, the person is said to be intestate. The state laws then determine who will receive property that would have passed by will.

Dying without a valid will.

Bonds with a Standard & Poor's rating of BBB or above (Baa or above on Moody's rating service). NAIC considers bonds in classes 1 and 2 as investment grade bonds (classes 3-6 are categorized as non-investment grade bonds).

This ratio measures the impact on capital and surplus of a 20% drop in common stock prices and a 2% rise in interest rates. This ratio is deficient in that it does not include the AVR in calculating total capital and surplus.

The combined holdings (stocks, bonds, real estate investment, cash and short-term investment, or other assets) of an individual or institutional investor.

A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets similarly to corporate stocks. The market price may exceed the net asset value per share, in which case it is considered at a "premium." When the market price falls below the NAV/share, it is at a "discount." Many closed end funds are of a specialized nature, with the portfolio representing a particular industry, country, etc. These funds are usually listed on US and foreign exchanges.

A beneficiary whose interest cannot be canceled without his or her consent.

A trust that cannot be revoked or amended by the party who establishes it. This type of trust is often established when life insurance is purchased to protect an estate.

The date from which suicide and incontestability periods are calculated.