Life insurance is an easy way to protect your family’s financial future. However, purchasing a policy from an insurer you can trust is crucial to ensuring the safety net you build is as robust as possible.
Below is our evaluation of Northwestern Mutual, Select’s top life insurance choice. We dive into the company’s history, look at coverage options, and see how Northwest Mutual compares to the competition
Northwestern Mutual Life Insurance Review
Northwestern Mutual Life Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
As the largest life insurer by market share in the U.S., Northwestern Mutual is an established choice with a proven track record. And it offers a range of types of policies across the country
Advantages
- Various life insurance products available
- Highly rated for customer satisfaction
Disadvantages
- Policies must be purchased through a financial professional
Overview
The Northwestern Mutual is the largest provider of life insurance in the United States and has been issuing policies for more than 160 years. As a mutual company, it is owned by its policyholders and not by its investors or shareholders
Northwest Mutual prides itself on its financial strength: It has received AM Best’s highest credit rating, an “A++,” which the agency only assigns to insurers that have an “above average ability to meet their ongoing insurance obligations.”
Fitch Ratings also gave Northwestern Mutual its highest rating, a “AAA,” indicating the lowest expectation of default. According to Fitch, AAA ratings are only assigned “when the ability to pay financial obligations is exceptionally high.”
Although dividends are never guaranteed, Northwestern Mutual has a strong track record of paying out policyholders every year since 1872. The company expects to return $7.3 billion to policyholders in 2024, the highest amount in its history
The National Association of Insurance Commissioners has assigned Northwest Mutual a complaint index of 0.03, indicating that the company receives far fewer complaints about its life insurance policies than would be expected for a company of its size. (The NAIC’s base complaint index is 1.00.)
In terms of customer satisfaction, Northwestern Mutual scored 790 out of 1,000 in JD Power’s 2023 Individual Life Insurance Study, putting it on par with the industry average.
Types of life insurance offered
Northwestern Mutual offers several types of life insurance, including term, whole, and universal. Here’s what you need to know about Northwestern Mutual’s life insurance products
Term life insurance
While Although term life insurance expires and does not generate cash value, it is an inexpensive way to obtain coverage. Northwestern Mutual offers four different policies with annual, renewable term life insurance and term life insurance options:
- Semester 80. The insurance coverage is valid up to the age of 80 and the premiums increase every year
- Semester 10. Insurance coverage lasts up to 10 years and increases every year
- Level 20. Insurance coverage valid for up to 20 years with a consistent, consistent premium
- Level 10. Insurance coverage valid for up to 10 years with a consistent, consistent premium
Northwestern Mutual’s term life insurance policies include a premium waiver, which allows you to maintain your coverage without paying premiums in the event of a qualifying disability.
Life insurance
In addition to a traditional death benefit, life insurance can build a cash value that the policyholder can access during their lifetime. This permanent coverage can also generate dividends, and although these payouts are never guaranteed, Northwestern Mutual has issued annual dividends for over 150 years.
The company offers three life insurance riders: a rider premium waiver, an additional purchase benefit, and an accelerated care benefit that pays a portion of the death benefit to cover long-term care costs
Universal life insurance
Universal life insurance offers more flexibility than whole life insurance and also has a cash value component. While universal life insurance policies do not accumulate dividends, Northwestern Mutual offers universal survivorship life insurance for those interested in joint life insurance.
There is also a Custom Universal Life product that builds cash value on a tax-deferred basis and gives the policyholder flexibility in determining their payment schedule and death benefit.
Variable universal life insurance
Variable universal life insurance (VUL) offers flexible premiums and death benefits with some control over how your premiums are invested. Northwestern Mutual’s VUL policies allow policyholders to choose from 40 mutual funds.
However, because the policy’s cash value is invested, it can rise or fall with the market
Other products offered
Although Northwestern Mutual has issued millions of life insurance policies, that’s not the only product the brand offers
- Disability insurance can cover part of your salary if you are injured or too sick to work
- care insurance can cover the cost of care if you need help with everyday tasks such as bathing or dressing due to a disability, illness or other chronic health condition.
- income Pensions Offer a lifetime fixed income stream, regardless of market performance.
Beyond insurance, Northwestern Mutual also offers financial planning services that can help with retirement planning, saving for college, estate planning and other issues
How it looks in comparison
Northwestern Mutual’s financial strength ratings and product variety help it stand out from the crowd. The company’s life insurance policies have an enviable track record and can include riders that cover disability, long-term care and other circumstances.
Northwestern Mutual’s Universal and VUL products can be customized, and its universal life insurance policies include an option for a a joint universal life insurance policy that pays out after the death of both insured people, known as second-to-die insurance.
The company does not offer guaranteed life insurance, They typically pay out enough to cover funeral costs and typically allow you to skip health questions and medical exams.
And Northwestern Mutual doesn’t have the robust online services of some of its competitors: Policy details on the website are limited and you have to contact an agent to get a quote or apply for coverage.
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Bottom line
Northwestern Mutual’s long-standing financial strength and customer service make the company a good choice for permanent life insurance, whether you are looking for a whole life, universal or variable policy.
Editorial note: The opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial team alone and have not been reviewed, approved or otherwise endorsed by any third party.