A true mutual insurance company, Northwestern Mutual stands to separate itself from the rest by holding true to the foundation which has made it so strong today. A truly unique carrier, they are a model for many and a trusted name.
Whether you require simple term life insurance, or advanced planning with life insurance and long term care, Northwestern has what you need. Below is our full Northwestern Life Insurance Company review, and it is based on our data.
As we suggest each and every time, seek out the best possible life insurance solution given your unique situation.
Our Northwestern Mutual Life Insurance Company Review
Northwestern Mutual is one of the longer standing life insurers in the United States today, having been in business well over 150 years. It began as the Mutual Life Insurance Company of the State of Wisconsin back in 1857. A Fortune 500 company, it has almost $220B assets under its management, and has been awarded with the highest available ratings for its financial strength and outlook.
It has earned a spot among the best life insurance companies in strength and stability by all four rating agencies, including A.M. Best, Fitch, Moody’s and Standard & Poor’s, which only a very short list of life insurance companies have been able to achieve. This is one of the crowning achievements for the insurance industry.
As a mutual life insurance company, Northwestern Mutual is owned by its policyholders only. It currently has the highest dividend payout of any of its competitors in the industry, by nearly three times. This dividend is built into the structure of its policies.
This dividend structure has been maintained annually since 1872, which the company is extremely proud of, although it is never guaranteed in the future.
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It is also unique is its formation of the Examining Committee of the Board of Trustees, which allows for policyholders, not members of the company’s board, to inspect the operations and financial actions of the company, to ensure they are strictly for the benefit of the policyholders.
Having long been a company strictly focusing on its sales of life insurance products, NW Mutual entered another product, disability income, back in 1969. Today, it operates on a full line of products including long term care insurance, financial products for retirement, employee benefits for small and large businesses, and more.
It is a pioneer in its focus on life insurance, providing products of all kinds, like:
- term life insurance
- universal life insurance
- variable life insurance
- combination life insurance products
In addition to life and long term care, they have disability insurance for those who need it.
Investments & Philanthropy
Its investment side is hosted under Russel Investments, founded in 1936. It has grown to greater than $130B in assets under its direct management, while $786B in assets can been seen under its overall advisement practice.
NW Mutual is also quite fond of philanthropy, and has its own philanthropic organization, the Northwestern Mutual Foundation, where it focuses largely on making an impact in the prevention of childhood diseases like cancer.
In addition to childhood cancer, Northwestern Mutual has partnered with the National Collegiate Athletic Association (better known as the NCAA) in supporting higher education for young adults. It is proponent of secondary education, as well as offering internships for those who are looking for real world experience.
Life Insurance Products
As a mutual company, the core product is a whole life insurance policy, but it’s not the only thing they have available.
From Northwestern Mutual, your term life options are as follows:
- Level Term 10
- Level Term 20
- Term 10
- Term 80
The Level Term 10 is, actually, a 20 year policy, but the first 10 years are level and then it resets to a new premium for the second decade of the policy. The Level Term 20 is truly a 20 year level term policy, where the premium starts and stays at one price from beginning to end.
Their Term 10 options is the cheaper way to secure a 10 year term, by allowing you to purchase a policy which will start low, and increase annually until the tenth year. In somewhat similar fashion, the Term 80 will start at the insured’s age, and increase up until their 80th birthday, where it ceases.
Within the permanent life umbrella from Northwestern, there are actually several different sub-types; combination, universal, variable universal, and whole.
The Adjustable CompLife, Estate CompLife, and Survivorship CompLife are all extremely unique products which combine both a whole life policy, as a base, with a term life insurance benefit on top.
This essentially allows you to have the best of both worlds, while growing a small, permanent death benefit, and simultaneously ensuring you’re protecting your full need with a cheaper, temporary death benefit. This can help you meet both short and long term needs with a lesser overall cost.
The Custom Universal Life (CUL) – Accumulator is the main universal life insurance option from the Northwestern Mutual Life Insurance Company. It’s the most affordable way to get a permanent death benefit, and have potentially flexible premiums along the way. There is cash growth within the policy, as well, though the guarantees aren’t quite as strong as the whole life.
If you want to pre-pay all premiums, you could utilize the Single Premium UL option, but there are different tax considerations here because it creates a Modified Endowment Contract, or MEC.
If growth is a key feature you’re looking for, consider a variable universal life insurance policy from Northwestern through the help of one of their registered representatives. The cash portion of the contract can be invested into mutual funds or other market related avenues, giving you the potential to accumulate more within the policy (assuming a level of risk, to do so).
Finally, the core products for Northwestern Mutual is its whole life. They are:
- 65 Life
- 90 Life
- Limited Pay Life
The simple goal for all three, despite their differences, is permanent insurance. The only real differences are how you, the insured, pay for them.
The 65 Life gets you a permanent death benefit, where you pay premiums up until your 65th birthday.
The 90 Life is the same, but extends your payments up until you turn 90 years of age, helping to reduce the costs per payment.
The Limited Pay Life is the most flexible, by actually letting you pick how long you’ll pay for. The shorter time frame you pick, the higher monthly cost you would incur, of course. Your selection range from as few as 10, and up to 30 years in length.
Our Final Thoughts
From a young family’s first life insurance policy to the full guidance of building a solid estate plan or business succession plan, Northwestern Mutual has thousands of agents who help individuals across the nation for the the needs of their family, their businesses and their employees and established themselves as one of the best life insurance companies in the United States for 2017.
You can find cheaper term policies elsewhere, but you’re unmatched in finding better conversion to their solid, high-performing universal and whole life insurance policies.