A government rate table for use in determining the reportable income of the economic benefit provided the employee for the death benefit under a qualified pension plan or a split dollar plan. Revenue Ruling 66-110 allows the alternate use of the insurer's published term insurance rates if available for sale to standard risks. Generally, these are used since the PS 58 rates are fairly high.

Paid-up insurance, commonly purchased under a dividend option, but may sometimes be purchased with additional premiums and/or lump sums. Since this insurance is purchased at premium rates based on the insured's original underwriting class, the right to purchase Paid-Up Additions is quite valuable. These additions have cash value as well as a death benefit.

Insurance which does not require future premiums to provide the death benefit for the life of the insured person. Limited-pay policies become paid-up after the required number of premiums have been paid. The term may also refer to the end result of a non-forfeiture option that causes a policy to convert to a smaller, but still participating, completely paid-up policy.

A physical examination the insurer may require of applicants during the underwriting process. It is generally not as thorough as a full medical examination. It is usually performed by nurses, rather than doctors.

In disability insurance, this refers to a situation in which the insured is partially disabled and unable to perform one or more of the principal duties of the job, or unable to spend as much time on the job as before the disability occurred.

Any employee or former employee who is eligible to receive benefits from an employee benefits plan or whose beneficiaries may be eligible to receive benefits from the plan.

A life insurance policy whose owners are eligible to share in the distribution of dividends paid out of the surplus earnings of the company.

In disability insurance, the amount of monthly income coverage Northwestern Mutual is willing to issue on an individual, based on annual insurable income. Total coverage on an individual (including all outside coverage and any proposed or contemplated coverage with this or any other company) will, normally, not be allowed to exceed Northwestern Mutual's published participation limits.

In an annuity, the stage at which the annuitant, or beneficiary, takes distribution of the accumulated assets plus earnings. The pay-out phase usually begins after retirement and the annuitant can elect to have the cash distributed on a regular basis over a specified period of time or for the remainder of his or her life.

Refers to the three methods of collecting payment through both the Insurance Service Account and Insurance Service Account Plus. They are: Electronic Fund Transfer, Direct Payment, and Multiple Contract Billing.

Optional modes of settlement for both life insurance proceeds and annuity plans whereby the owner, or beneficiary, can receive an installment income, rather than a single lump sum payment. The usual options are Interest Income, Installment Income, and Life Income.

An optional policy benefit that waives the payment of all premiums until the anniversary nearest the insured's 25th birthday, if the applicant dies or is disabled before the policy anniversary nearest his or her 60th birthday and prior to the insured's age 22. The applicant must be responsible for the support of the insured.

The person making premium payments on a policy.

Policies which are purchased as part of a qualified plan, trust, or other retirement arrangement which meets the requirements of IRC §401.

An employer-sponsored program to provide employees and often their spouses with a monthly retirement income payment.

Refers to the payout option on an annuity that will provide a guaranteed installment income for a specific number of years, e.g. 10 years or 20 years. If the annuitant dies during this specified time period, the beneficiary will receive the remaining payments.

A disability that will last a lifetime, or at least as far into the future as can be foreseen.

Life long, cash value coverage that provides payment of benefits upon death, such as a whole life or endowment contract.

A measurement of an insurer's retention of in-force business. It refers both to insurance that is not surrendered and has not lapsed for non-payment.

A telephone interview with an applicant or a proposed insured, conducted by a home office employee. In most cases the PHI replaces the need for an inspection report. The purpose of the PHI is to verify information submitted on an application as well as to gain additional knowledge of the applicant's financial condition and social habits.

An in-depth, customized analysis Northwestern Mutual Financial Network Representatives provide to clients and prospective clients on a complimentary basis. The analysis compares an individual's current level of financial security with his or her expectations for the future. The financial representative conducts an interview, gathers information, and develops a strategic plan to help the person realize his or her goals.

An executor or administrator of an estate.

A calendar, policy, or fiscal year on which records of a plan are kept.

The written document issued by a life insurance company to a policyowner, which expresses the insurance contract between the company and the policyowner.

Specifies when the insurance becomes effective; that is, when the insurer becomes liable to pay benefits provided under the terms of the contract.

A flat charge for policy administration expenses, usually included in the premium.

A non-recourse loan from the insurer to the policyowner secured by the policy's cash value. Loan interest, which may be set at a fixed or variable rate, must be paid or accumulated on the loan.

A dividend option whereby the annual dividend is used to reduce the balance of a policy loan.

A designation of a particular portfolio of policy contracts issued with certain specified provisions for a period of time. At Northwestern Mutual, the policy series is designated by a letter.

Applicable to survivorship (second-to-die) products. A contractual or non-contractual procedure for splitting the policy in event of divorce or repeal of the unlimited marital deduction. Evidence of insurability may be required.

A method under which the A. M. Best Co. categorizes companies by financial size based on the insurer's reported policyholder surplus, plus conditional or technical reserves.

The individual who owns an insurance policy, and who has all contractual rights. The policyowner is not necessarily the same person as the insured or the payor.

A method of distributing insurance risk whereby the individual participants share the risk with the other participants.

A process that captures the elements of a document or image in an electronic format.

A will used with a revocable living trust to "pour over" to a revocable trust any assets that are not transferred to the trust prior to death. Assets transferred in this manner do not avoid probate.

Legal document that authorizes someone else to act for an individual.

A signed form allowing Northwestern Mutual to withdraw premium payment through an Electronic Funds Transfer from the payor's checking account.

The amount set by contract to be paid to the insurance company for benefits provided under the contract.

The annual premium as charged to the Insurance Service Account or Insurance Service Account Plus.

The frequency of premium payments. For most Northwestern Mutual policies, the mode may be annual, semi-annual or quarterly. ISA Plus Accounts also allow for monthly payments.

A dividend option whereby the annual dividend is used to reduce the premium payment. Any dividend amount in excess of the full annual premium is used to purchase additional paid-up insurance. Any excess may, instead, be paid in cash or used to reduce the policy loan balance.

A gift qualifies as a present interest gift if the recipient has the unrestricted right to the immediate use, possession or enjoyment of the property transferred.

Refers to a method that applies an assumed rate of interest to compute today's value for a future payment.

In disability insurance, presumed total disability because of total and irrecoverable loss of sight, hearing, speech, or use of both hands or feet, even if the insured can still work and regular care by a doctor is not required. Under the Northwestern Mutual definition, benefits are payable from the date of disability.

The person who, upon the insured's death, has the first right to receive insurance proceeds.

The process by which a decedent's property is transferred under a will.

The net amount of money payable under the terms of a life insurance contract upon the insured's death or upon the maturity of an endowment.

A scientific approach to insurance planning which weighs a person's income-producing assets relative to perceived income needs. This may reveal deficiencies in the person's overall financial picture that includes the need for life insurance.

For the purposes of estate planning, property consists of a wide variety of assets and includes personal property, such as cars, boats and jewelry; real estate, such as a home, a vacation house or rental property; business and investment interests, such as stocks, bonds, partnerships and closely-held business interests; life insurance; and benefits, such as Social Security, employer-provided retirement benefits, individual retirement accounts (IRAs) and disability benefits.

In disability insurance, payment of a percentage of full benefits in the event of a partial disability.

The person named in a life insurance application as the person whose life is to be covered by the insurance, if the application is approved.

A legal document setting forth the complete history and current status of a security issue which must be made available to all interested purchasers in advance of a public offering under the Securities Act of 1933. The formal written document must describe the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs in order to make an informed decision. Prospectuses are used by mutual funds to describe the fund objectives, risks and other essential information.

A statement or clause, found in an insurance policy, to establish some term of the contract.

Legal term for a fiduciary's duty to manage assets. Generally, a fiduciary must manage assets as a prudent man of discretion and intelligence would.

This term refers to any investment or deposit the contract owner contributes to a variable annuity.

A contract that provides for payment only upon survival of the insured to a certain date and not as a result of that person's earlier death. This type of contract is the opposite of a term contract, which provides for payment only in the event death occurs within the specified time period.