![]() Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries. To be used with form numbers or state equivalent. The printing, copying, redistribution or retransmission of this Content without express written permission is prohibited. Used by permission and protected by the Copyright Laws of the United States. Prepared and calculated by Northwestern Mutual.ĥ From Investor's Business Daily, September 20, 2021, ©2021 Investor's Business Daily, Inc. rank as of 2019 based on direct premiums written. Policyowners should consult with their tax advisors about the impact of using their policy's cash value.ģ ©2017–2020 and TM, NerdWallet, Inc. If loans and accrued interest reach the amount of your cash value, additional cash payments are necessary or the policy will terminate. Repaying loans from cash values (other than death benefit funds) can trigger a significant tax event, and there may be little or no cash value left to pay the tax. Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or cash values when the policy terminates, or the insured person dies. Loans are not taxable when they are taken, and can have adverse effects if not managed properly. Any money withdrawn from the policy, beyond what you paid in cumulative premiums, will be taxable. Taking money out will also affect dividends paid on the policy, if those are available. Whether you take your money in the form of a surrender, withdrawal, or loan, the policy's value and death benefit will be reduced. These different methods have advantages and disadvantages. Your policy's cash value will increase after if you pay more premium in the early years and you choose to make regular payments.Ģ There are different ways to use your policy's accumulated value. Environmental, Social & Governance Reportġ The amount and timing of your payments will directly affect your policy's cash value as well as your ability to maintain coverage in the future. ![]()
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