re: Northwestern Mutual - Should I?

I don't think that question has a general applicable answer. I think each individual needs to value the components of return, death protection, and risk reduction individually. The answer is a sliding scale for the policy purchaser.

I can tell you that I don't expect them to pay worthwhile rates of return for a long time given the current market and economic environment. Insurance companies live and die by their ratings and their ratings are largely determined by their reserves. They want to make more money on their investments than they have to pay out in terms of returns and they want to protect their reserves. With the current interest rate environment most of the fixed income portfolios of insurance companies are looking at future returns in their fixed income investments in the neighborhood of 2-3%. This spills over directly to the policy holder returns.