Mutual - Life Insurance
Makes Northwestern Mutual Tick?
Mutual is widely recognized as the premier life insurance
company, building financial security for individuals and businesses.
As a mutual company, Northwestern Mutual are operated for
the benefit of their policyowners and customers. Integrity,
financial strength, and building enduring relationships by
meeting your needs is what "The Quiet Company" is
Here you'll get a glimpse of what makes Northwestern Mutual
company uniquetheir top financial ratings lead the industry,
Northwestern Mutual rate first in customer satisfaction and
their field force shares the top spot as America's best sales
force. You'll also meet Northwestern Mutual top executives
and discover ways in which Northwestern Mutual supports the
people and communities they serve.
Northwestern Mutual - Types of Policies
variety of Northwestern Mutual life insurance policies are
available that can be used in estate planning. Policies can
be purchase to insure a single life or two lives. Some policies
may better suit you than others, depending upon your needs
and life circumstances.
Policies for Individuals
A single individual has no other policy choices than a single
life policy. The policy's benefit will help pay the taxes
due on his or her estate.
Policies for Married Couples
Multiple options exist for married couples wishing to purchase
a life insurance policy. The premium of a second-to-die policy
may be less than the premium on two single life policies.
However, couples with any concern for retirement or survivor
income will purchase a single life contract inside an irrevocable
life insurance trust rather than a second-to-die policy.
there is no concern for survivor or retirement income, a second-to-die
policy may be appropriate.
Policies for Non-Citizen Spouses
A qualified domestic trust can be set up for individuals married
to citizens of other countries. The trust will hold property
for the couple so that it qualifies for the marital deduction.
Estate planning with a QDOT can be arranged to include a second-to-die
policy that will help pay taxes upon the second death. Or,
a spouse can choose an outright distribution of property upon
the first death and purchase a single life policy to provide
liquidity needed to pay for tax.
Policies for Second Marriages
Estate tax can be generated at the first death rather
than the second when the individual is married for the second
or third time. Spouses may enter into a prenuptial agreement
to keep their assets separate and not part of the property
of the marriage.
type of an estate plan generally operates as if each person
were single. If the estate's value exceeds the exemption equivalent
of the unified credit, an estate tax is generated on the first
death. A single life policy may be purchased to pay the tax.
Policies for Marriages with Age Variance
For estate planning purposes, spouses may be treated as single
if there is a large age difference between them. It is common,
in this situation, to design the estate plan so that some
or all of the assets pass to the children upon the parent's
death. A single life policy may be purchased to pay the tax
generated by this transfer.
Policies for Deferring Estate Taxes
Most wealthy married couples choose to defer the estate tax
until the second spouse's death by transferring the optimal
amount of property allowed by the marital deduction. Upon
the surviving spouse's death, if the estate is valued below
the amount of the exemption equivalent, no tax is due. If
the estate's value exceeds the exemption, a tax must be paid
and a second-to-die policy could be purchased for this.
Policies for Non-Deferred Estate Taxes
Some married couples choose not to defer the estate tax until
the second death. Instead they generate tax at the first death
to capitalize on the graduated rates of the estate tax.
type of plan is often used in community property states where
the law automatically equalizes each spouse's estate.
actual benefit of this plan depends on how long the second
spouse survives and what happens to the value of the estate
between the first and second deaths.
this type of plan, a single life policy is purchased on each
individual because it is impossible to determine which spouse
will die first. And waiting until later in life could cause
the premiums of the policies to increase.
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