Northwestern Mutual - “Term To Age 80”

[VolAgent]

Term to age 80 sounds like an interesting policy.

I read that there is a 50% chance a given person will be dead at age 81.

So there is slightly less than a 50% chance that the policy will pay out.

Think of all the money you will pay out until then, and there is a 51% chance that you will get nothing!

While I don't know all the details of the policy, I doubt premiums are level till age 80. They are probably level only for 10 or 20 years. After that they hop on the elevator and go sky high. If you can stomach the premiums, you can keep it until age 80.

 

[nycagent]

they aren't even level for 10yrs, and they are only guaranteed for the first 5. if you are young and premier class, they are illustrated to be level until about age 37 or 38. Its actually not a bad deal for very young, healthy folks - early 20s.

Its also a great policy for experienced agents to replace from orphaned policyholders.

 

[VolAgent]

Just like Mass's ART then. "Buy this super cheap term so I can convert you later once you realize what the premiums are going to do."

 

[nycagent]

the best part is, in training they would use the T80 as the comparison to show why whole life was such a good deal. sort of like using a Lada to show the quality of a Yugo.

 

[dgoldenz]

I saw one of these policies that my client had. Guy was around 37 or 38 years old. By the time he was 50, the premium was around 6 times the cost of the term policy he was comparing with, and the term policy was guaranteed for 30 years. I'm sure the difference in year 30 was about 100x, but don't remember off the top of my head.

 

[BNTRS]

Yup, yrt used to make the case for WL is an old old old insurance strategy. I say use level term and look at the after level period tail, so much more dramatic.

The point of buying NML term? To convert to NML WL. So you get a crappy deal in order to guarantee another crappy deal!

 

[robert]

As clueless as the rangers are
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Greetings folks!


I am not an agent, just want to learn more about life insurance before buying a policy.

I have two questions:

1. Regarding NWM's "Term To age 80" policy, what is your opinion on this product?


2. Regarding USAA Life Insurance Co. - any opinion on this company? I like that there is an 800 number, and I don't have to be attached to a broker. But I don't see USAA Life in any of quote engines. Are they a good life insurance company? They have A++ ratings, just like Guardian and TIAA CREF.


I am debating between USAA term-30, Guardian term-30 and TIAA CREF term-30 (and possibly NWM's Term to 80)? I like USAA and TIAA because of 800 numbers and no need to be attached to a broker who sell the policy.

Thanks in advance for your advice. Your feedback is greatly appreciated!

As clueless as the rangers are

 

[2insureyou]

The T80 product works very well for younger healthy clients, as the total outlay over 10 years is typically less than a 20 Level, and only slightly more over 20 years.

Plus, it is convertible for longer. The theory is, why would you lock in higher premiums for the first 10 years when your insurance needs may well change, or rates may drop further over that time period?

Every company is different. I let my younger clients pick between T80 and L20. I get paid more for the L20, because the premium is higher, but the T80 is more flexible, in my opinion, and is my official recommendation for any term clients under 35 years old, when using a NM policy, of course.

 

[WinoBlues]

Kool Aid Spill aisle NML.

The T80 product works very well for younger healthy clients, as the total outlay over 10 years is typically less than a 20 Level, and only slightly more over 20 years.

Plus, it is convertible for longer. The theory is, why would you lock in higher premiums for the first 10 years when your insurance needs may well change, or rates may drop further over that time period?

Every company is different. I let my younger clients pick between T80 and L20. I get paid more for the L20, because the premium is higher, but the T80 is more flexible, in my opinion, and is my official recommendation for any term clients under 35 years old, when using a NM policy, of course.

 

[2insureyou]

Kool Aid Spill aisle NML.

NM-Hate Spill, aisle everyone else on the forum