Risk appraisal at the Northwestern Mutual holds special significance. We are a mutual company—our policyowners share in the overall net earnings and savings of the Company. As a company we protect the value of our policyowners' insurance, maintain the financial stability of the Company and provide for their financial security.

A thorough risk appraisal process helps us fulfill this commitment, allowing us to accurately assess each individual to ensure that:

• Each eligible person pays the appropriate price for insurance.

• People with the same appraisal results (risk profile) pay the same price for insurance.

• People with less favorable risk profiles that do not fit with those of existing policyowners are not issued policies.

• The Company's financial stability is not compromised by issuing policies to people with unfavorable risk profiles.

Northwestern Mutual makes every effort to issue insurance coverage to people applying for a policy. As a result of the risk appraisal process, most people receive their insurance—and at the best possible rate. Some people pay more for their coverage because of less favorable risk profiles, but very few are not issued policies.