Reputable? Whole Life with Northwestern Mutual...

[Death Cab For Tootie]

FIO/GIO = Future Insurability Option/Guaranteed Insurability Option. This rider allows the client to increase their coverage without evidence of insurability (subject to verification of financials).

 

[NMFNMDRT]

FIO/GIO = Future Insurability Option/Guaranteed Insurability Option. This rider allows the client to increase their coverage without evidence of insurability (subject to verification of financials).

Yes. We offer what is called an Additional Purchase Benefit option or APB. It is available every 3 years to age 52. I use it with medical residents, attorney's who aren't yet a partner, and various other occupations. Honestly, it's a costly benefit that I may use on about 10% of the people I meet with.

 

[mx_599]

Northwestern just offered a new medical definition on their DI that is very similar to an own occ. The agent should be able to explain it to you.
I hope you are not overwhelmed with information, and in turn you don't take action on anything.
Good luck and welcome to the forum!

thanks, i guess this is what i get from joining a forum of experts as a lay person. i hope people at a forum like this do not mind outsiders coming in. obviously i have no intention of learning the trade, i just wanted to be better informed. boy, i think i am getting that so far!!

i dont know what OCC is
- - - - - - - - - - - - - - - - - -

I guess I am not the brightest bulb, but why would you fund a life policy prior to having disability and malpractice insurance as well as max funding retirement plan options, 6 to 12 months of forcasted living expenses, guess the agent sees a nice commission rather that what is in the client's best interest.

i am not sure i follow you. i sought this agent out for whole life myself. so he didn't steer me in this direction. i had heard about whole life for asset protection a few yrs ago and then this guy came and spoke to us residents and i jumped at the chance to discuss WL.

i don't have a ton of money to go around at the moment for a bunch of things. i know i am not right thinking this way, but i have a real hard time paying for ins that i receive nothing in return. seems like all i ever got was the short end of things in the past like if my car gets hit in a parking lot and i receive almost nothing for repair. all the hoops and hassles involved and i wonder why i pay for auto ins? why do i support everyone in the country for their health problems when i take care of myself. i get no break on my ins with increased use of the gym. so i don't have a favorable opinion of ins. i need to get over that

 

[bluemarlin08]

i have a real hard time paying for ins that i receive nothing in return

So you still pay for car, homeowner's/renters, liability and health insurance and unless you have a claim you are just managing risk.

If you think funding a WL policy is right for you, go for it, never run into ANY successful person use this startegy, and stick with it, in the past 30 years. Just my opinion.

 

[mx_599]

Why would you max fund a retirement plan before funding a WL policy? Seems to me if he needs access to that money prior to 59 1/2 the QP isn't going to do much for the client. Moreover, what happens if the client retires in a 40 or 50% (or higher) tax bracket? What happens if the client gets disabled? Will the QP get funded?

I agree the clients should have malpractice insurance and DI, but max funding QPs before WL isn't the best advice in every senario. In fact, I can make the case that max funding a QP at all is dubious advice.

QP?

i do not want my money tied up until 60.
- - - - - - - - - - - - - - - - - -

i have a real hard time paying for ins that i receive nothing in return

So you still pay for car, homeowner's/renters, liability and health insurance and unless you have a claim you are just managing risk.

If you think funding a WL policy is right for you, go for it, never run into ANY successful person use this startegy, and stick with it, in the past 30 years. Just my opinion.

this certainly is not the only thing i was going to do, just something i wanted to get going now. maybe there is no benefit to me starting the WL now as opposed to 2-3yrs from now. what do all you think?

actually, i do not pay most of those ins you listed above...just minimums required by law.
- - - - - - - - - - - - - - - - - -
i do not want to disrespect anyone here. the disability is just hard for me to swallow without knowing more statistics maybe?

out of disability policies opened, do we have any idea what percent are ever utilized? or better yet, what percent are ever utilized to a greater dollar amount than was ever put into it to begin with?

i don't mean to be asking a childish stat that is probably unrealistic or incalculable, you have to understand i am approaching this from a lay person perspective.

the gears grinding in my head are saying something to this effect, "if all the money that went into these non-returnable insurances was to be invested elsewhere, the ramifications would be staggering."

i am not saying i am right, this is just what is running through my head...
- - - - - - - - - - - - - - - - - -

never run into ANY successful person use this startegy, and stick with it, in the past 30 years. Just my opinion.

are you referring to over funding WL? this wasn't my idea...i can't believe you never heard of it in 30 yrs? or if you have it was only unsuccessful people. is this what you are saying?
- - - - - - - - - - - - - - - - - -

If you are a medical resident, it would be even more important for you to consider disability insurance to protect your future income. NML does not provide own occupation for the entire duration of the policy (although it is very hard to ascertain this on their illustrations). Get a thorough quote comparison from multiple companies before making your decision.
Since you are young and healthy now, protect your future income and your insurability.
[email protected]

i might even be getting some disability from the hospital employer, i am not sure. or is this unlikely?
- - - - - - - - - - - - - - - - - -

The assumption that one will be in a higher tax bracket at retirement isn't always true. I have seen clients that during their earning years their marginal rates went from 70% to 39%. Personally, I would never recommend this strategy, but that is just my opinion maybe it will be a better strategy.

so do i have nothing to gain by opening a whole life now as opposed to 2-3yrs from now??

 

[xrac]

The younger and better health one is when they take out life insurance the lower the premium. I wish I had taken out my WL when I was in my twenties or thirties.

 

[mx_599]

i am supposed to meet with the agent this week. i have no idea what to do. sounds like i should scrap the whole WL idea? if i got through with it, it sounds like Guardian is the clear winner. do i come out and ask the agent if he deals with Guardian? i feel like he will be pissed if i back out now :(

however, this is my future and it sounds like there are enough differences between Guardian and NWM to make a buyer beware situation. i cant make a purchase based on wanting to please the agent i met already.

i do not know what to do
- - - - - - - - - - - - - - - - - -

The younger and better health one is when they take out life insurance the lower the premium. I wish I had taken out my WL when I was in my twenties or thirties.

however, after reading my intents etc do you think 2-3 yrs matter? especially if i am already talking about taking a 2nd WL out in a couple yrs so that i can have substantially higher MEC limits. i have to ask, am i achieving anything at all by taking the current one out?
- - - - - - - - - - - - - - - - - -
thanks for everyone's time with these posts, BNTRS i am sure you spent a number of minutes on some of yours, i learned a lot....i think

 

[Death Cab For Tootie]

QP?

i do not want my money tied up until 60.

QP=Qualified Plan. This includes 401k's, 403b's, etc. Money cannot be withdrawn generally until age 59 1/2. I'm with you - I don't like the idea of locking money up for that long without a backup plan. I'm not saying QPs are bad, but a lot needs to be taken care of before one invests in one. Unfortunately, most advisors give the advice to max-fund a QP without realizing the consequences.
- - - - - - - - - - - - - - - - - -

this certainly is not the only thing i was going to do, just something i wanted to get going now. maybe there is no benefit to me starting the WL now as opposed to 2-3yrs from now. what do all you think?

If you are going to do it, start now. Premiums will be lower and insurability is fragile. You may be healthy now, but a lot can change in 2-3 years time.

actually, i do not pay most of those ins you listed above...just minimums required by law.

For someone who is concerned with liability and creditors, this is a dangerous stance to take. I would suggest talking to your P&C agent to discuss how liability coverage works in the real world. I have this conversation all the time with my clients and they wonder why they walk around so under-covered with all the lawsuit-happy people out there.
- - - - - - - - - - - - - - - - - -
i do not want to disrespect anyone here. the disability is just hard for me to swallow without knowing more statistics maybe?

Prior to age 65, you are four times more likely to become disabled than die. Imagine you're 30 years old, making $250k and you become permanently disabled. You lose out on $8.7milion of earnings (not counting raises, etc)! If you had a cash-printing machine that spit out $250k per year, how much would you pay to ensure it always spit that money out?

out of disability policies opened, do we have any idea what percent are ever utilized? or better yet, what percent are ever utilized to a greater dollar amount than was ever put into it to begin with?

You musn't look at DI as an 'invesment'. It's one of those products that, if you never file a claim, it's a waste (although it means you never became disabled!). However, if you need to file a claim, you're glad you have it.

i don't mean to be asking a childish stat that is probably unrealistic or incalculable, you have to understand i am approaching this from a lay person perspective.

the gears grinding in my head are saying something to this effect, "if all the money that went into these non-returnable insurances was to be invested elsewhere, the ramifications would be staggering."

i am not saying i am right, this is just what is running through my head...

Again, you're taking 3% of your income to ensure the other 97%. Losing that 3% because you didn't file a disablity claim will be negligable compared to the cost of losing the ability to earn a living.
- - - - - - - - - - - - - - - - - -

are you referring to over funding WL? this wasn't my idea...i can't believe you never heard of it in 30 yrs? or if you have it was only unsuccessful people. is this what you are saying?

Successful, wealthy people are owners. Successful people own WL. It's that simple.
- - - - - - - - - - - - - - - - - -

i might even be getting some disability from the hospital employer, i am not sure. or is this unlikely?

It is very likely, but chances are it will be inadeqate for protecting your income totally. Most people will have a combo of group and individual DI.
- - - - - - - - - - - - - - - - - -

so do i have nothing to gain by opening a whole life now as opposed to 2-3yrs from now??

You have a lot of questions, and very good one's at that! NML is a fine company, although there are disadvantages their DI has that other companies like Mass Mutual and Guardian don't. Likewise, there are pros and cons to their WL policy. My advice would be to buy the WL if you want it, and have your agent look at a non-NML DI policy for you.

Hope this helps.

 

[mx_599]

yes, that definitely helps.

all i have seen are cons so far for Northwestern WL. am i the only one who thinks Guardian had way more pros over the course of this discussion?

 

[Death Cab For Tootie]

All the par WL policies from the major mutuals (NWM, Guardian, Mass, NYL) are solid. I prefer non-direct recognition policies due to the fact that dividends will not be affected by having an outstanding loan from the policy. NWM is a direct recogniton policy. Mass is not. I am not sure of Guardian and NYL.