What to do with Northwestern Mutual AC & WL policies

[Allen Trent]

Kudos to Allen Trent on this thorough response.

What is the commission or override rate on Kudos, asking for a friend-----ha ha.

In reality, I have always done a ton of pro bono work & has always come back ten fold in so many other ways through referrals, opportunities & a long line of mentored agents & peers that offer to go through brick walls for me.

I believe it to be a sin to not help when I can or be thinking of what is in it for me

 

[Loulou]

Allen, your perspective is very appreciated and inspiring!

NWM completed my request to have dividends reduce the premium on the two ACL policies effective on the next policy anniversary.

However, NWM says there is still a lot of term insurance to be converted on the WL policy. If I have dividends pay the premium now, that would reduce the death benefit by about $48,000 resulting in total coverage of $90,000 on that policy. I would lose most of the term insurance.

I assume that I should wait until 2030 to make this change to WL policy, when that term would have converted and I could keep the death benefit.

 

[PA Bill]

It's been awhile, but didn't they used to use a combination of dividends and paid up additions to turn off premiums?

 

[Allen Trent]

Allen, your perspective is very appreciated and inspiring!

NWM completed my request to have dividends reduce the premium on the two ACL policies effective on the next policy anniversary.

However, NWM says there is still a lot of term insurance to be converted on the WL policy. If I have dividends pay the premium now, that would reduce the death benefit by about $48,000 resulting in total coverage of $90,000 on that policy. I would lose most of the term insurance.

I assume that I should wait until 2030 to make this change to WL policy, when that term would have converted and I could keep the death benefit.

thank you for your kind words.

Agree waiting until 2030 on the 3rd policy is best if you are willing to continue paying premiums so that the term converts over to WL. the values & dividends will hopefully be even higher in 2030 than they are now. the best part is by delaying changing now, you are not obligating yourself at all. you can decide in 1 year or 5 years or 10 years to change the dividend option if you cannot afford premiums at any time. basically, you are leaving the door wide open so you can make those other changes later.

 

[Lloyds of Lubbock]

I will add if you do want to leverage your policies through loans (remember you can withdraw to basis tax free), use a 3rd party lender.
It will be half the interest NML charges you.
Best of luck!