- 7,012
Anyone Run Across Northwestern Mutual?
- Thread starter indyagent
- Start date
- 437
It's not my only coverage. I just want to convert this policy.
Good to hear!
The acl policy is your only option for creating a u.l type contract. My advice would be to build this policy very lean by using 85k temp term and 15k of base coverage. Your agent won't like it too much because it cuts the comp way down but it juices the c.v performance
- 7,012
How will that effect it's sustainability? The CV performance is not my goal, unless I'm using that to purchase more RPU latter in life. I have more term ins to replace my income now, but i was going to have this plus other GULs to pass on after I kick the bucket no matter what.
The question is $80/mo a good price for $100K for somebody that would qualify only for table 1 or 2 now?
- 437
Since your original post discussed desiring a U.L, I am coaching you on how to build the Northwestern Adjustable CompLife policy like a UL. The more base you have the more it performs (and cost) like whole-life. The more temp term you have the lower the annual premiums and lower the internal coi's.
Sustainability is a great question, however with where we currently are with dividends and interest rates, and the fact the illustration is going to assume today rate environment continues forever, you are pretty safe.
Northwestern Mutual's dividend will be consistent, they and NYL have the highest Comdex possible at 100. The dividend in your policy will go to gradually convert the temp term to base coverage.
A policy with a 85/15 blend of temp term/base will be roughly half the premium of a NML 90-Life whole life policy.
- 7,012
Yeah it looks like he has it set up on an 85/15 blend already. So it seems like a good set up.
- 9,744
Unless it's gonna take food off the table, it sure as hell is. Convert it!
Why?..................
- 437
trustandadvice
Expert
- 91
I was at Northwestern mutual for 10 years.
You can have your client call policyowner services. This is something that you can find by using Google. And asked that they send him an in force illustration in a policy data review.
You will want to have policyowner services run a couple of scenarios.
First, you will want them to run an as is illustration with premiums being paid for 20 years or so, maybe until age 65. I don't know how old your client is.
Second have them run an illustration showing the dividends offsetting the premiums. In this scenario the premiums will go down every year as the dividends get bigger and eventually your client will not have to put any money into the contract.
Third, ask them to run a scenario showing the policy being fixed paid up at the next policy anniversary.
Fourth, have them run a final illustration that is the same as scenario one or two but taking the policy fixed paid up at age 65, or your favorite age.
This will you be able to talk with your client about how the policy can perform under different scenarios. The illustration should show the guaranteed in the nonguaranteed columns. And then your client can understand whether or not he wants to keep the policy.
Properly designed Northwestern mutual life insurance can be a tremendous asset. I own them for my family and my kids. As I mentioned I was with Northwestern mutual for 10 years, they do have some good products. The nice thing about the whole life is that you don't have to pay for forever. The dividends purchase paid-up insurance and the death benefit grows, which helps the death benefit keep pace with inflation.
Sometimes though clients don't need as much insurance as they get older because they saved a lot of money, therefore they can take it paid up. Or they were sold too much insurance in the first place.
You can have your client call policyowner services. This is something that you can find by using Google. And asked that they send him an in force illustration in a policy data review.
You will want to have policyowner services run a couple of scenarios.
First, you will want them to run an as is illustration with premiums being paid for 20 years or so, maybe until age 65. I don't know how old your client is.
Second have them run an illustration showing the dividends offsetting the premiums. In this scenario the premiums will go down every year as the dividends get bigger and eventually your client will not have to put any money into the contract.
Third, ask them to run a scenario showing the policy being fixed paid up at the next policy anniversary.
Fourth, have them run a final illustration that is the same as scenario one or two but taking the policy fixed paid up at age 65, or your favorite age.
This will you be able to talk with your client about how the policy can perform under different scenarios. The illustration should show the guaranteed in the nonguaranteed columns. And then your client can understand whether or not he wants to keep the policy.
Properly designed Northwestern mutual life insurance can be a tremendous asset. I own them for my family and my kids. As I mentioned I was with Northwestern mutual for 10 years, they do have some good products. The nice thing about the whole life is that you don't have to pay for forever. The dividends purchase paid-up insurance and the death benefit grows, which helps the death benefit keep pace with inflation.
Sometimes though clients don't need as much insurance as they get older because they saved a lot of money, therefore they can take it paid up. Or they were sold too much insurance in the first place.
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