Northwestern Mutual's participating, level premium, permanent life insurance plan, based on premiums to age 90.

Investment return on a company's total investment portfolio calculated under a formula developed by the NAIC. It may not present a total picture of a company's investment performance. The yield includes income from, typically, lower-yielding policy loans. It excludes income or losses from capital gains; the impact of federal income taxes; and consideration for the diversification, maturity, and quality (risk) of the company's portfolio.

The National Assocation of Health Underwriters represents nearly 17,000 professional health insurance agents and brokers who service the health insurance needs of millions of Americans. Founded in 1930, there are now more than 200 state and local chapters throughout the United States. NAHU members embrace a strict code of ethics and constantly seek to improve their knowledge of health insurance regulations and products through continuous education.

An organization of state insurance commissioners which meets to discuss and develop insurance regulations and practices.

The oldest and largest association of its type in the world that is primarily concerned with the insurance-buying public and those engaged in life sales and sales management. Its aim is to promote a clear understanding and appreciation of life insurance and to encourage agent professionalism, competency and high ethical standards.

An association of brokers and dealers in the over-the-counter securities business. Under the supervision of the SEC, the NASD's basic purposes are to standardize field practices, establish ethical standards in securities trading, provide a representative body for consultation, establish and enforce rules of fair trading, and provide the disciplinary body to enforce these rules. All variable product information, which includes advertisement, marketing and sales material, must be reviewed by the NASD before it is shown to the public.

The common life insurance sales strategy of placing enough coverage to preserve the customary lifestyle of a family upon the death of a wage earner. The level of coverage might be planned to go beyond covering burial/funeral expenses, and also provide cash for mortgage payments, ongoing support for the spouse and children, funds for education, as well as to cover emergency and miscellaneous expenses.

(1) The net value of one share of a fund's investments. (2) For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed end fund, the market price may vary significantly from the net asset value.

A Joint CompLife dividend option that uses a portion of the dividend to reduce the premium, and bills any remaining premium amount to the payor or charges it as an Automatic Premium Loan.

On life insurance sales illustrations, the total cash value minus any policy loan balance. Other companies may refer to this as Net Equity.

A method of crediting policy interest on each new premium with an interest rate consistent with what is then available in the investment market. Since each premium falls into a separate investment pocket, long-term results should be comparable to those of a portfolio method product with investments of similar duration. When interest rates are high or rising, new money-based products tend to illustrate (but not guarantee) results that are superior to portfolio-based products, because illustrations assume the new money rate will always remain at the current level, which will be higher than the portfolio rate. In actuality, the advantage would be short-lived as the portfolio rate catches up. The reverse is the case when new money interest rates decrease below portfolio yields.

(1) A mutual fund which charges little or no commission (load charge) to the buyer of its shares. No sales organization is involved. The shares are sold directly to the public by the sponsoring firm. (2) An open-end investment company, shares of which are sold without a sales charge. There can be other distribution charges, however, such as Article 12b-1 fees. A true "no load" fund will have neither a sales charge nor a distribution fee.

An employee benefit plan under which the employer pays the entire cost of the insurance or pension benefit, sharing none of the costs with the employees.

Privileges allowed under the terms of a life insurance contract after cash value has been created. Three options exist: (1) surrender for full cash value, (2) paid-up insurance for however much the cash value, as a single premium, will buy at net rates, and (3) term insurance for the full face amount of the original policy for as long as the cash value will pay the necessary premiums.

Bonds rated below BBB by Standard & Poor's or Baa by Moody's. Sometimes referred to as "junk" or "speculative-grade" bonds.

Life insurance issued without requiring a medical or paramedical examination of the applicant. In accepting the applicant, the insurance company relies on the applicant's own answers to questions regarding his/her physical condition.

A life insurance policy which is not eligible for the distribution of dividends paid out of the surplus earnings of the company.

Refers to investments which are not yielding positive or anticipated returns.

A retirement plan arrangement that allows an employee and/or employer to make contributions to an annuity. This plan is subject to fewer restrictions and is easier to administer than a Tax-Qualified Plan.

This rate structure recognizes that non-smokers are more likely to live longer and avoid debilitating illness than are smokers. In effect, it provides better pricing for non-smokers.

The Northwestern Long Term Care Insurance Company offers quality long-term care insurance to businesses and consumers. The products are designed to reimburse the costs of receiving care in the home, community, alternative living facilities or nursing homes. Long-term care insurance from Northwestern Long Term Care Insurance Company is currently available in all states except NewYork and Maine.Strategic Employee Benefit Services

NMIS is a limited broker-dealer and distributor of Northwestern Mutual's variable life and variable annuity products. NMIS is a member of the NASD and SIPC.

The Northwestern Mutual Trust Company is a wholly-owned subsidiary of the Northwestern Mutual Life Insurance Company, offering personal trust services, investment management services, foundations and endowments, and personal financial planning. Northwestern Mutual Trust also offers professional investment management to foundations and endowments.

Founded in 1857, Northwestern Mutual is one of the most established and well-respected companies in operation today. Headquartered in Milwaukee, Wisconsin, it specializes in life, disability, and annuity products. As a mutual company, Northwestern Mutual exists to protect and benefit its policyowners. Policyowners share in the surplus of the Company through dividends, thus receiving their insurance at a minimal cost.