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Founded in 1857, Northwestern Mutual offers insurance products like life and disability as part of their integrated approach to financial planning — including financial services like wealth management, retirement planning, investment strategies, and more.
Northwestern Mutual offers term, whole, and universal life insurance. Its clients work with a financial adviser, which means that customers can receive help evaluating life insurance options and other products from a holistic financial planning perspective for both short-term and long-term financial goals.
Headquartered in Milwaukee, Wisconsin, Northwestern Mutual is a reliable, trustworthy company. It has received high financial strength ratings from Moody’s, A.M. Best, Fitch, and S&P.
In 2018, Northwestern Mutual was recognized by Fortune as being one of the "World's Most Admired Companies." Its financial representative training program is said to be one of the country's best according to Training Magazine. Northwestern Mutual, through its foundation, has donated millions to childhood cancer research.
Moody's, A.M. Best, Fitch, and S&P have all awarded Northwestern Mutual with the highest ratings for any insurer regarding its financial strength. In 2018, Northwestern was ranked first by Fortune in financial soundness among insurance providers.
Fortune Magazine rated Northwestern Mutual number one for the quality of its life insurance products and services in 2018.
The Northwestern Mutual platform offers a number of life insurance products that help ensure financial stability. The death benefit can be used to pay for lingering debt, any final expense, or to provide financial support to the beneficiaries.
Northwestern Mutual offers three kinds of life insurance:
These are some of the most common types of life insurance policies in the industry, so most people will be able to find the kind of life policy coverage they want at Northwestern Mutual.
Clients can select from different premium payment options. The premium rates for level term life insurance policies remain the same throughout the duration of the policy. Or, they can start with a lower premium that increase over time — so you pay lower premiums for your term policy when you're younger and more as your earning potential increases.
Term life insurance can be an especially good idea for people who only need coverage for a specific number of years. For example, people who have loans, like a mortgage or student debt, can benefit because it provides financial security to beneficiaries should the insured pass away. Permanent life insurance offers similar peace of mind; however, its coverage lasts an entire life time.
No matter what policy type you choose, the death benefit can be used to finish paying off debts and to pay for funeral expenses.
Northwestern Mutual also offers its clients the ability to convert their term insurance into a permanent life insurance policy during specific periods of time, known as a conversion period.
This option makes life insurance coverage more affordable because a term life insurance policy initially tends to be significantly cheaper than permanent life insurance.
The ability to convert a term life policy into a permanent one allows a policy owner to buy more affordable life insurance with cheaper payments and convert it later on when their financial situation changes.
For those interested in a permanent policy, Northwestern Mutual offers whole, universal, and variable universal life insurance. Northwestern Mutual’s whole life policies have level premiums, which means that they will never go up — similar to level term premiums.
Its universal life insurance and variable universal life insurance policies, like whole life insurance, can provide coverage that lasts a lifetime. However, these policies also allow for more flexibility with monthly premium payments, and the coverage amount can be adjusted within certain limits once the policy is in effect.
The main difference between a universal life policy and a variable universal life policy is how the cash value accrues. The cash value of both universal and variable universal life policies has the ability to earn interest, but variable policies allow you to invest the cash value in certain funds called sub-accounts, so cash value earnings are tied to investment performance.
Both whole and universal life insurance policies accrue cash value that clients can use during their lifetime. The cash value of whole life policies is guaranteed to grow over time, is tax advantaged, and can be used or borrowed against with a policy loan, at any time and for any reason. Because whole life policies, variable universal life policies, and universal life policies have this ability to accrue cash value, they can also be viewed as a flexible asset.
Permanent life insurance policies can offer greater flexibility, provide coverage for longer periods, and can accrue cash value. Premiums for permanent policies tend to be much higher than those of term policies.
However, as a mutual company, Northwestern Mutual has historically paid dividends back to policyholders to ensure that coverage comes at the lowest possible net cost. Those dividends can also be used towards paying premiums or used to purchase additional coverage called paid-up additions, which helps a policy grow.
While dividends are not guaranteed from year-to-year, Northwestern Mutual has been known for its consistency and industry-leading dividends on whole life insurance policies.
Northwestern Mutual offers different policy options to meet your specific needs. Some policy types can offer living benefits and accrued cash value beyond a guaranteed payout when you pass away.
Northwestern Mutual also offers other products and services that can help you protect your income or plan for the future. Talking to an adviser can help you understand what options fit your needs and goals.
Northwestern Mutual focuses on financial planning services and approaches life insurance from this perspective.
Clients work with a financial adviser to determine their financial goals, assess life insurance coverage needs, evaluate insurance policy options, and receive specific advice for their circumstances and life goals. This unique, integrated approach across a variety of products and strategies ensures clients have a flexible plan designed to help them achieve their goals.
The ability to work with a financial adviser is a nice benefit of choosing Northwestern Mutual.
Some insurance companies are owned by shareholders and traded on the stock market. Northwestern Mutual is different because it is not owned by shareholders. Instead, it is owned by policyholders. This feature shows that Northwestern Mutual’s decisions are driven by what helps its policyholders and clients.
Additionally, policy owners can be eligible to receive dividend payouts from Northwestern Mutual. A dividend payout is not guaranteed. However, Northwestern Mutual has a strong history of consistently paying dividends to its life insurance policyholders.
In addition to life insurance, Northwestern Mutual offers other insurance products, like disability insurance or long-term care insurance. These additional products are especially beneficial to life insurance shoppers who need other kinds of insurance. More information about these products can be found on Northwestern Mutual's website or by contacting a representative.
Northwestern Mutual's website has a great overview of its life insurance policy offerings. It also has a life insurance calculator that helps potential clients figure out how much life insurance coverage to buy.
However, the website does not have much information regarding the underwriting process, like whether or not a medical exam is required. Some life insurers offer no exam life insurance policies. Products and options can vary based on individual situations.
For more specific information regarding eligibility for life insurance plans, the underwriting process, and specific terms of Northwestern Mutual’s plans, potential clients are encouraged to contact one of Northwestern Mutual's representatives through the website for personalized details and recommendations.
To receive life insurance quotes, interested consumers need to contact a Northwestern Mutual representative.
While it would be nice to have more information about monthly insurance premiums, these vary depending on several factors, like health history and the amount of insurance coverage purchased.
The inability to receive an online quote makes it difficult to get quick cost information, but working with a Northwestern Mutual adviser can help consumers determine what kind and how much life insurance to buy.
Amrit Nandrey Brentwood, TN
2 years ago Edited September 17, 2021