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Whole life insurance quick quotes5/4/2023 ![]() Used by permission and protected by the Copyright Laws of the United States. Not all Northwestern Mutual representatives can sell securities (investments), only those who are registered representatives (FINRA Series 6 or 7).ĥ From Investor's Business Daily, September 20, 2021, ©2021 Investor's Business Daily, Inc. Only those representatives with the titles "Financial Advisor" or "Wealth Management Advisor" are credentialed as NMWMC representatives to provide advisory services. For universal life products, in lieu of dividends, experience is reflected through changes to nonguaranteed charges and credits.ģ Unless you cancel or stop paying your premiums.Ĥ Not all Northwestern Mutual representatives are advisors. Some policies may not receive dividends in a particular year or years even while other policies receive dividends. ![]() Policyowners should consult with their tax advisors about the potential impact of any surrenders, withdrawals or loans.Ģ Dividends are reviewed annually and are not guaranteed. If loans equal or exceed the cash value, the policy will terminate if additional cash payments are not made. Repayment of loans from policy values (other than death proceeds) can potentially trigger a significant tax liability, and there may be little or no cash value remaining in the policy to pay the tax. Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured. Loans taken against a life insurance policy can have adverse effects if not managed properly. As a general rule, surrenders and withdrawals are taxable to the extent they exceed the cost basis of the policy, while loans are not taxable when taken. Surrenders of, withdrawals from and loans against a policy will reduce the policy's cash surrender value and death benefit and may also affect any dividends paid on the policy. Each method of utilizing your policy's cash value has advantages and disadvantages and is subject to different tax consequences.
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