Northwestern Mutual's permanent life insurance product, payable to age 65, that provides a 60/40 mix of whole life insurance and term insurance. The dividends earned on the whole life portion are used, over time, to convert the term portion to permanent (paid-up additions) life insurance.

One of Northwestern Mutual's participating, level premium, permanent life insurance plans. It is a limited-pay policy, based on premiums to age 65.

The maximum annual premium allowed during the first seven years in order to avoid classification as a modified endowment contract under TAMRA §7702A. The premium will vary by company and the insured's issue age, sex and underwriting class. A new 7-pay test is required after each material change of the contract.

Regular forms of life insurance sold to groups of employees with premiums collected on a monthly basis by the employer from employee wages.

Refers to the cash value component of a life insurance policy. It accumulates with interest on a tax-deferred basis and is available to the owner through policy loans. It can also be used to keep the policy in force if premium payments are stopped. The entire savings element can be withdrawn upon surrender of the policy.

Refers to planned premiums that are scheduled at the time of issue.

A type of life insurance policy that insures two lives. The death benefit is payable at the second death. Generally, this product is used as a funding vehicle for estate taxes payable at the second death when the unlimited marital deduction is utilized.

Benefits become payable upon the second insured's death, typically when estate taxes come due.

Internal Revenue Code 401(k) is an employer-sponsored, salary-reduction retirement savings program. The employee defers a percentage of current salary on a pre-tax basis and the employer often matches some portion of that amount. There is a cap on the annual contribution and a 10% penalty is levied on monies withdrawn before age 59 1/2. The accumulating funds can be borrowed by the employee and repaid with interest.

Internal Revenue Code 403(b) is a retirement program offered to employees of tax-exempt organizations, such as public schools. Subject to certain limitations, the organization pays annuity premiums on behalf of their employees and provides employees with a tax advantage by excluding the amount of the payments from their gross incomes.

Internal Revenue Code 408(k) is an individual employee retirement account, funded by either an employer or a self-employed person. The maximum contribution is the lesser of 15% of compensation or $30,000. Employees have the option of taking the employer contribution in cash, but must then pay current income taxes on it. Also known as a Simplified Employee Pension (SEP).

A federal agency created by the Securities Exchange Act of 1934 to administer the act and to help protect the interests of investors.

An investment contract containing the following elements: (1) a transaction in which money is invested: (2) the investment is in a common enterprise: (3) there is an expectation of profit resulting from the efforts of others. Examples of securities include stocks, bonds, and mutual funds.

Northwestern Mutual's best underwriting classification for unimpaired, non-smoking applicants.

Northwestern Mutual's participating, level premium, permanent life insurance plan, based on premiums to age 100. This product is available only to Select or Standard Plus issues.

The mortality charges associated with newly underwritten insureds which reflect very favorable experience.

An act of the U.S. Congress, approved in 1962, permitting self-employed people and their employees to take advantage of tax benefits similar to those offered under tax-sheltered annuities and the qualified retirement plans of large organizations.

By law, insurers are required to hold the assets on all variable plans apart from the general assets of other plans. The Separate Account is not subject to the claims of creditors during regulatory proceedings, and is perceived by some as an enhancement to the security of variable plans.

An examination that must be successfully completed to receive the Registered Representative designation. This designation is required by the NASD for all individuals who supervise, solicit, or conduct business in securities and all individuals who train people to supervise, solicit, or conduct business in securities.

Funds that are organized with separate portfolios of securities, each with its own investment objective.

Policy provisions which provide choices for the distribution of the policy's proceeds; choices include lump sum, specified number of years, or life long payment plans.

Payment of all claims against an estate and making of all distributions.

Preliminary term insurance, not to exceed 11 months, which may be attached to a policy to change the anniversary date for the purpose of more conveniently spacing premium payments.

An employer-sponsored plan than can be used by sole proprietors, partners, and corporations. Deductible contributions up to the lesser of 15% of salary, not to exceed $30,000, can be made to IRAs owned by eligible employees. No IRS filings are required.

An underwriting process that applies a less strict analysis of risk factors. Participants in group plans or charitable giving plans may qualify for this abbreviated form of underwriting.

A second-to-die life contract which changes after the first death to reflect that only one life is insured. Generally, the premium does not change, but the illustrated dividends, mortality assessments and the cash values may increase (depending on which price method is used).

Refers to the one-time payment required to cover the entire cost of a life insurance or annuity contract.

A fixed immediate annuity that is purchased with a single lump sum payment, providing income for life or for a specified period.

An insurance plan that requires only one premium and is guaranteed to remain paid-up throughout the insured's lifetime. These contracts are generally used as cash accumulators. Under current tax law, new single premium contracts are classified as modified endowment contracts. It is not a true single premium life product when a single payment sales illustration does not come with a guarantee that future payments will never be required.

Often in reference to universal life plans, this is the maximum payment that can be made to the policy at one time without causing the contract to become a modified endowment contract. (The single premium limit will change from year to year.)

A fixed deferred annuity that is purchased with a single lump sum payment.

Nearly a form of self insurance, it is money a business sets aside in case a loss occurs, rather than purchasing insurance to protect against the potential loss.

A term associated with the generation-skipping transfer tax. Skip persons are individuals who are two or more generations below the transferor.

An optional disability insurance policy benefit that provides benefits when the insured is totally or partially disabled, as defined in the DI contract, except that benefits may be reduced or may not be payable when the insured or a member of the insured's family is entitled to Social Security benefits. The SSSB is an additional benefit version of the Social Security Substitute coverage.

An organization whose members are trained in the application of actuarial mathematics; that is, statisticians who compute insurance risks and premiums. The SOA conducts the examinations for the designations of Fellow (FSA) and Associate (ASA) of the Society of Actuaries.

A full-time life insurance agent who is contracted directly with the general agent.

Using one portion of the dividend to reduce premiums while the other portion is used to purchase additions.

An arrangement in which premiums, cash values and death benefits are divided between two parties, usually an employer and employee. In business situations, this may result in the employee having to report an economic benefit cost for tax purposes.

Northwestern Mutual's underwriting classification for smokers who are unimpaired.

Northwestern Mutual's underwriting classification for non-smokers who have minor health impairments.

This document, also known as "Part B" of a prospectus, contains more detailed, supplementary information about a mutual fund. It is available upon request from the fund at no charge.

A form the Northwestern Mutual home office uses to notify the Financial Representative of Insurance Service Account (ISA)/Insurance Service Account Plus (ISA+) activity.

In disability insurance, a premium structure that permits an insured to acquire a regular DI policy at a lower than regular premium at the time of issue, until age 35. Premiums increase later at specified times.

A certificate of ownership of a corporation representing a share of its capital and surplus.

An insurance company formed and capitalized through the sale of shares of stock. Those purchasing the stock are owners and share in the company's earnings. Common stockholders vote on the company's board of directors, on matters involving company policy, and may receive a distribution of earnings through stock dividends declared by the company.

Established in 1984, Strategic Employee Benefit Services is a nationwide program which provides comprehensive employee benefit services exclusively through a Northwestern Mutual Financial Network Representative. It offers a selection of top employee benefit companies to furnish businesses with high-quality, competitively priced benefit products.

A life insurance applicant who faces a greater likelihood of early death than the group experience on which the Standard premium rates are calculated. Examples include persons in poor health and those who work in dangerous occupations.

An individual or institution that takes the place of a named trustee or executor who can no longer fulfill duties.

In the case of Northwestern Mutual, a policy provision stating that if the insured dies by suicide within one year of the date of issue, the amount payable will be limited to the total premiums paid, less any policy loans. The full benefit would be paid if suicide occurs after the first policy year. Most companies have a two year suicide clause, except where state law mandates otherwise.

Total assets minus the sum of all liabilities. Surplus originates from investment and operating gain.

Many variations are used in calculating this ratio. Usually, it compares capital and surplus plus Asset Valuation Reserve to total liabilities excluding Asset Valuation Reserve and separate accounts. A surplus ratio is one indicator of financial strength, however, since both surplus and reserve levels vary by such things as types of business and reserve requirements, other factors should also be used in evaluating a company's financial strength.

Cancellation of the policy, which involves returning the contract to the issuing company.

Withdrawing in cash that portion of the life insurance purchased through dividends (or Advance Purchases/Lump Sums with Northwestern Mutual's CompLife products), thus forfeiting a portion of the death benefit.

A general account universal life policy on the lives of two insureds. It offers a high level of death benefit and premium flexibility. It provides a benefit upon the death of the second insured that can help preserve the value of an estate or business.