What is Northwestern Mutual adjustable CompLife?

Adjustable CompLife provides death protection as a means to ensure that the lump sum it pays remains consistent. CompLife includes cash value accumulation. With death protection in place, the cash value is adjusted on the fly.

What is a disadvantage to a credit life insurance policy?

Disadvantages of Credit Life Insurance Credit life insurance also lacks flexibility for the death payout. A payout goes directly to the lender. Since your family doesn’t receive the money, they don’t have the option to use the funds for other purposes that might be more urgent.

What is a adjustable Comp life insurance policy?

Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.

What is the difference between adjustable life and universal life?

It is essentially a hybrid combination of universal life and ordinary level premium participating life insurance. In contrast with ordinary level premium, level death benefit policies and similar to universal life, adjustable life insurance gives the policyowner the flexibility to change the plan of insurance.

Does Northwestern Mutual have surrender fees?

For this particular policy, the premium surrender charge was up to 40 percent of the sum of the annual premium for the Minimum Guaranteed Death benefit, as well as a term life premium for the initial amount of additional protection which was provided.

Is credit life insurance decreasing?

Term coverage from a life insurance company is usually cheaper than credit life insurance for the same coverage amount. Moreover, credit life insurance drops in value over the course of the policy, since it only covers the outstanding balance on the loan; the value of a term life insurance policy stays the same.

Is the creditor the insured in credit life insurance?

Credit life insurance pays a policyholder’s debts when the policyholder dies. Unlike term or universal life insurance, it doesn’t pay out to the policyholder’s chosen beneficiaries. Instead, the policyholder’s creditors receive the value of a credit life insurance policy.

Is adjustable term insurance renewable?

The majority of term life insurance policies are renewable, but not all. The policy’s premiums are reassessed annually, and a policyholder is likely to pay more as they grow older.

What statement concerning adjustable life insurance is accurate?

Which statement concerning adjustable life insurance is accurate? The face amount and premiums can be changed simultaneously by the policyowner- Adjustable life insurance combines features of both term and whole life coverage.

For what reason would the insurance company raise the death benefit of a universal life policy?

If the cash value is growing too quickly, the insurer will increase the policy’s death benefit so the policy does not become a MEC.