Northwestern Mutual Life Insurance

insurancemet · 07-11-2009, 02:11 PM

LGilmore...Please explain below and while I'm at it, I'm still a bit confuse over different things I've read. First of , we are not suppose to sell whole life as an investment, right..2nd
With dividends and cash values, in the end..is that added to the face value. Because I read somewhere here, still confuse about or misread if one is insured for $100k, that is what they will get in the end..but someone else said no, that plus the cash value.

"One word of caution, if you are selling cash value policies and not explaining the concept, but rather pointing at the numbers on a "illustration" make sure your E&O is paid up.

I love Whole Life, I own it, but I would never sell it based on those numbers on a illustration. The concept is solid, the numbers will vary."

scotty · 08-01-2009, 04:58 PM

Northwest Mutual Has a broker they use. You are not captive.

mkortz · 08-06-2009, 11:50 AM

Originally Posted by scotty

Northwest Mutual Has a broker they use. You are not captive.

Do they give you decent comp on the brokerage policies? At my former semi-captive agency they kept all of the overrides.

bill3173 · 08-06-2009, 12:05 PM

Originally Posted by LGilmore

At a certain point it becomes do you prefer the hot blonde, redhead or brunet?

One word of caution, if you are selling cash value policies and not explaining the concept, but rather pointing at the numbers on a "illustration" make sure your E&O is paid up.

Oh what a tangled web we weave. Excellent point. You also may want to make sure that your life insurance is inforce. I picked up a new client who had a UL that "blew up" on him. He told me that if he could get his hands around the neck of the agent that sold it to him, it would be lights out for him.

This guy was one scary dude, I didn't blame the agent for not returning his calls, what was there for him to say? I lied, I didn't know what the heck I was talking about?

lyndell · 10-17-2009, 09:18 AM

Hey I am thinking of working for NWM but I am a little hesitant I just don't want to work for anyone else forever and this is the perfect time for me and hints on getting referrals and setting up?

CFP83 · 10-17-2009, 09:00 PM

For Someone who wants to be in this business long-term, there is no better training ground than Northwestern Mutual. I'm still in my twenties and after spending five years with NML it was time for me to leave the nest. Without the knowledge, business sense, & marketing training that I received there, I would never be able to work within the markets I currently do or have the skill set or a system to be able to produce 300k+ a year in life premium.

With that said, once you have reached that five year mark or so and have attained all the above mentioned invaluable skills, there is no logical mathmatical reason to remain in the NML system. Long-term, Northwestern's system is management focused not producer focused. It is designed to make management weathly rather than the producers, who are out there doing all the heavy-lifting and impacting peoples lives.

After year three you are at a basic 50% commission level. You are then responsable for all your office rent, staff expense, all computers and office equipment expense. Right before I left one year ago, these items for me totaled about $70,000 a year. I was writing around 250k of premium, which resulted in 125,000 of first year commission and had renewals of about 45k a year. So overall, I had a total of 170k a year of income but was only netting 100k without factoring in taxes. Especially when you are responsable for 100% of your referrals or new business generation this math just does not make sense.

So the best advice new people to the industry can ever receive is "learn the business as career, then grow your business and make money independent".

Marpol · 10-17-2009, 09:52 PM

Originally Posted by CFP83

I can jump on this one fellas as I wrote 400k of premium on corporate and estate planning cases with NML in 2008.

They are not a captive company by the way, I am a statuary employee meaning that I have exclusive access to their products (1 of 5200 reps currently nationwide) but am in no way captive. NML rep's have a fidicuary responsability to their clients first and foremost.

First of all I think you have a ethical responsibility just like all insurance agents....I am not sure that fall under fiduciary (fiduciary is a legal term)....unless you are also a trust officer.

So you placed you placed 400k in cooperate and estate planning cases with NWM WL policies???? What was the breakdown of the 400k. Also did you push cash value WL policy for estate planning purposes? Did you shop the case with other carriers.

I have not found NWM to be very competative.

The estate planning cases should probably have gone into inexpensive SULs in ILITs to maximize there death benefits not cash heavy WL policies.

CFP83 · 10-17-2009, 10:14 PM

Marpol~

I mistated those numbers, I did a total of 400k of life business in 08, a little over 100k of that premium was done outside of NML. Not well known, but as of 2008 Northwestern created a very competitive Universal life contract strictly for business and estate planning cases (has a minimum first year premium of 25,000). The current interest crediting rate is 6.15%. I haven't seen (maybe there is) another highly rated company with this high of crediting rates....Penn Mutual is the next closest with a current 6% rate. NYL, Mass, & Guardian treat there UL's like a bastard red-headed stepchild that they have to have....the rates are pathetically low.

Some of your thoughts are part of the reason that I am completely independent now and no longer an associated representative.

Franz Kafka · 10-18-2009, 12:37 AM

Originally Posted by Marpol

If they where really estate planning cases they probably should have gone into inexpensive SULs in ILITs to maximize there death benefits not cash heavy WL policies.

With due respect, you should probably join me in studying more about estate planning. There are many many different ways to set up an ILIT. E.g. Did you know that a credit shelter trust formed from a common living trust was an irrevocable trust to which surviving spouse could still access money? A similar concept can be applied to ILITs. With NLG SUL there is one option and one option only - to pay and keep paying until both spouses pass away. What if the spouse lives to 115? Would the SUL policy still be the cheapest? IMHO it's about strategy and not about particular co product. (fwiw I personally don't like nwm but that's irrelevant)

Marpol · 10-18-2009, 11:33 AM

Originally Posted by CFP83

Marpol~

I mistated those numbers, I did a total of 400k of life business in 08, a little over 100k of that premium was done outside of NML. Not well known, but as of 2008 Northwestern created a very competitive Universal life contract strictly for business and estate planning cases (has a minimum first year premium of 25,000). The current interest crediting rate is 6.15%. I haven't seen (maybe there is) another highly rated company with this high of crediting rates....Penn Mutual is the next closest with a current 6% rate. NYL, Mass, & Guardian treat there UL's like a bastard red-headed stepchild that they have to have....the rates are pathetically low.

Some of your thoughts are part of the reason that I am completely independent now and no longer an associated representative.

Sorry CFP for sounding like a dick in my last post. I really was not trying to be an ass. I edited after I re-read it. I have never done any comparisons on the NWM UL policies...didn't even know they had them. Thanks for clarifying. I am still not fond of NWM or their sales practices...but that's nothing personal ageist you.
- - - - - - - - - - - - - - - - - -

Originally Posted by Franz Kafka

With due respect, you should probably join me in studying more about estate planning.

I am always trying to learn new things.

Originally Posted by Franz Kafka

There are many many different ways to set up an ILIT.

I agree.

Originally Posted by Franz Kafka

E.g. Did you know that a credit shelter trust formed from a common living trust was an irrevocable trust to which surviving spouse could still access money?

Not sure I follow. What money are we giving access to?

Originally Posted by Franz Kafka

A similar concept can be applied to ILITs. With NLG SUL there is one option and one option only - to pay and keep paying until both spouses pass away. What if the spouse lives to 115? Would the SUL policy still be the cheapest? IMHO it's about strategy and not about particular co product. (fwiw I personally don't like nwm but that's irrelevant)

This is not correct at all. Although you can have premiums run after the first death most of the time you would design the policy so premiums stop after the first death. Of course both spouses could live to age 115 luckily after 1/1/09 all carriers are required to use the 2001 CSO tables so policies run through age 121. And yes the SUL would still be the cheapest.

The problem normally is not selecting a product. The problem most of the time when you deal with estate planning cases is funding. Even if a client uses Cristofani to the max a lot of time there just are not enough exclusions. Or the issue is a trust has already been, but it sucks and needs to be redone.