What your Northwestern Mutual contract says

In short

This is a life insurance policy with Northwestern Mutual, one of the oldest and highest-rated life insurers in the US. Life insurance pays a lump sum to whoever you name as beneficiary when you die. Northwestern Mutual offers both term life (coverage for a set number of years, like 10 or 20) and whole life (coverage that lasts your entire life and builds cash value over time). Whole life costs much more but acts partly like a savings account. Your premium is locked in when you buy the policy and won't go up. California's Insurance Code provides a 30-day free-look period where you can cancel and get a full refund.

What you agree to do

• You must pay your premiums on time (if you miss payments, your coverage can lapse).
• You must notify Northwestern Mutual of any beneficiary changes in writing.
• You must complete any required medical exam during the application process.

What you can ask for

• You have a 30-day free-look period after receiving your policy to cancel for a full refund.
• You can change your beneficiary at any time (unless you designated an irrevocable beneficiary).
• You can borrow against the cash value of a whole life policy at a competitive interest rate.
• You can convert a term policy to whole life without a new medical exam (during the conversion window).

Points worth knowing

• Contestability period: first 2 yearsDuring the first 2 years, Northwestern Mutual can investigate and deny a death claim if they find material misrepresentation on your application. After 2 years, the policy is generally incontestable.
• Suicide exclusion in first 2 yearsIf the insured dies by suicide within the first 2 years, the policy pays nothing (only premiums are refunded). After 2 years, the full death benefit is paid regardless of cause of death.
• Lapse risk if premiums aren't paidIf you stop paying premiums, a term policy will lapse and you lose all coverage. A whole life policy may survive for a while using cash value, but eventually it lapses too.
• Whole life dividends are not guaranteedNorthwestern Mutual's whole life policies are "participating" (they pay dividends based on company performance). But dividends are not guaranteed and can be reduced or eliminated.
• Policy loans reduce death benefitIf you borrow against your whole life cash value and don't repay the loan, the outstanding balance plus interest is subtracted from the death benefit your beneficiaries receive.

Dates and deadlines

Free-look period

30 days from receiving your policy (you can cancel for a full refund)

Contestability period

First 2 years from policy issue (insurer can investigate and deny claims)

Premium due dates

Monthly, quarterly, semi-annually, or annually (as chosen at purchase)

Term conversion deadline

Check your policy: typically must convert before age 65 or end of term, whichever comes first