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Northwestern Mutual Life Insurance Review
By Samuel Robert MONEY RESEARCH COLLECTIVE
Many factors require consideration when selecting the right life insurance, including your long-term needs and budget. However, knowing the correct information about any insurance company is also crucial, especially for life insurance beginners who are ready to advance their financial plans.
Northwestern Mutual Life Insurance is among the many options available, offering term life, whole life and universal life policies. Read on to learn more about Northwestern Mutual’s life insurance coverage plans, accessibility and customer satisfaction.
Northwestern Mutual Life Insurance overview
Northwestern Mutual was founded in 1857. Its headquarters are in Milwaukee, Wisconsin. According to its 2021 financial report, it has over $570 billion in combined assets and saw an increase of 20% in new client investment accounts compared to 2020.
Northwestern Mutual offers a variety of life insurance policies to protect its clients and finances. These policies include:
- Term life insurance: Coverage for a specific period
- Whole life insurance: Permanent protection that builds cash value over time
- Universal life policy: Flexibility to adjust coverage levels as needed
Northwestern Mutual Life Insurance coverage
Northwestern Mutual’s life insurance policies cover death, terminal illness and accidental death. These policies help you, as the life insurer, feel secure that your loved ones can maintain financial stability in your absence after you die. The terms and conditions of the coverage you choose will vary depending on the specific policy.
What a Northwestern Mutual Life Insurance plan offers
Northwestern Mutual offers a variety of life insurance policies that may benefit you, depending on your current financial status and goals.
Northwest Mutual policies offer the following features and details:
- Death benefit: The death benefit is the money your beneficiaries will receive when you die. These funds can cover funeral costs, outstanding debts and ongoing living expenses.
- Terminal illness benefit: This provides an early payout of death benefits if you’re diagnosed with a terminal illness that results in a life expectancy of 12 months or less.
- Accidental death benefit: This provides extra coverage if you die due to a qualifying accident.
- Cash value: Whole life and universal insurance policies build cash value over time, which you can access through policy loans or withdrawals. However, the cash value is likely not useful until you’ve made several years of premium payments.
- Flexibility: Northwestern Mutual universal life insurance policies offer flexible coverage levels and premium payments on a schedule that works for you.
- No exam life insurance: You can obtain this type of coverage without undergoing medical exams to determine your general health. However, no-exam policies may have some limits, such as limited coverage and higher rates.
What a Northwestern Mutual Life Insurance plan doesn’t offer
There are circumstances that many life insurance companies typically don’t cover, such as deaths due to pre-existing medical conditions, suicide and dangerous activities, such as skydiving.
However, Northwestern Mutual customer service states their non-coverage items are conditional. That is, what isn’t covered per policy depends on individual circumstances and what can be negotiated with an agent or advisor. For example, according to Northwestern Mutual customer service, if you were once a cancer patient but are now in remission, you may be able to purchase a policy that will cover your beneficiaries even if you die as a result of cancer returning.
It’s worth noting that Northwestern Mutual doesn’t sell its policies directly to customers, but it will connect you with a local agent or advisor to discuss your plans and intentions.
Types of coverage plan options available
There are a few different policy options that Northwestern Mutual offers. We included descriptions below to help you decide which option is best for you.
Term life insurance
Term life insurance covers you for a specific period, such as 10, 20 or 30 years. This type of life insurance policy is primarily for individuals who want temporary protection. For example, if you purchase a home, you can buy term life insurance to ensure your family is covered for the years of the mortgage.
Whole life insurance
Northwestern Mutual’s whole life insurance provides permanent protection and builds cash value over time. This type of policy is for individuals who want lifelong protection and the ability to access the cash value for financial reasons, like retirement or college tuition. Remember that the cash value of whole life insurance is only helpful after you’ve made several years of premium payments.
Universal life insurance
Universal life insurance also offers permanent coverage and cash-value opportunities. However, this life insurance option also includes flexibility in adjusting coverage levels per policy limits and premiums, along with adjustable premium payment schedules. This coverage benefits policyholders if they expect their needs to change over time, such as with the birth of a child.
Northwestern Mutual Life Insurance accessibility
Northwestern Mutual has a network of financial advisors to help determine the right life insurance policy for your current and anticipated needs. Additionally, Northwestern Mutual advisors can assist with creating an investment plan and managing your wealth.
Contact information
Call the customer service hotline at (866) 950-4644, Monday through Friday, 7 a.m. to 6 p.m. CT, for general questions. You can also log in to see your account details if you have a registered online account.
If you’re ready to move forward with your plans, you can also “get matched” with a Northwestern Mutual financial advisor via the customer service webpage. Here, you can find the best advisor based on your financial goals and what qualities you’re looking for in an advisor.
Availability
Northwestern Mutual’s products and services vary per state. You can call the customer service hotline to be connected with a local agent or adviser to discuss what’s available in your state.
Dividends
Annual dividends are the financial distribution of a company’s surplus earnings, either some or all, to shareholders. However, dividends are not guaranteed. The amount and timing of dividends vary depending on the company’s financial performance and other factors.
Because Northwestern Mutual is a mutual company, there are no shareholders; rather policyholders own the company. Life insurance dividends, then, are paid to those policyholders. However, your policy must be eligible for dividends to receive them annually, and the amount depends on the particular policy terms and conditions.
Rider options
A rider option adds or alters the coverage for a life insurance policy, providing more protection or benefits beyond the base policy. Available rider options depend on the policy you purchase. Northwestern Mutual offers several rider options you can add onto policies for an additional cost:
- Waiver of Premium Rider: This waives the policy’s premium payments if you become disabled and can’t work. This rider is available on whole life policies. A Selected Premium Amount Rider is available on universal life policies.
- Accelerated Care Benefit Rider: This rider grants you access to your death benefits while living. For example, policyholders with this rider option can use these finances if they are diagnosed with an illness requiring long-term care.
- Additional Purchase Benefit Rider: Also known as APB, this rider gives you the right to buy supplementary life insurance in the future without providing additional evidence of insurability.
Northwestern Mutual Life Insurance customer satisfaction
When choosing a life insurance company, it’s essential to check customer satisfaction. We looked into third-party ratings and customer reviews of Northwestern Mutual across various sites.
Third-party ratings
Third-party rating agencies continually evaluate Northwestern Mutual — along with other established insurance companies and life insurance startups — for financial strength and stability.
Northwestern Mutual has received the highest available ratings from three of the following credit rating industries:
- A.M. Best Company: A++
- Moody’s Investor Services: Aaa
- Fitch Group: AAA
It received the second-highest rating from S&P Global Ratings: A+
Northwestern Mutual has an A- rating from the Better Business Bureau (BBB). However, it’s not BBB-accredited.
Customer reviews and complaints
Customer reviews from the BBB currently rate Northwestern Mutual as 1.5 out of 5 stars. However, Northwestern Mutual’s client data reports that 96% of policyholders remain with the company year after year.
Giving back
The Northwestern Mutual Foundation works with community partners to give back to children and families in the areas where it operates.
- Providing financial support to non-profit organizations: Northwestern Mutual Life Insurance contributed more than $40 million to fight childhood cancer. This funding has supported over 500,000 hours of cancer research.
- Supporting neighborhoods: Northwestern Mutual is a corporate donor to the United Way of Greater Milwaukee and the United Performing Arts Fund. It has funded thousands of dollars in local education grants, such as funding the Milwaukee Public Library.
- Promoting employee volunteerism: With an employee matching gifts program and community service awards, Northwestern Mutual supports its employees’ desires to individually give back to their communities.
Northwestern Mutual Life Insurance FAQs
Summary of Northwestern Mutual Life Insurance review
Northwestern Mutual Life Insurance has much to offer through its term, whole life and universal life insurance policies, along with its flexible rider options. There may be some circumstances that a Northwestern Mutual life insurance policy won’t cover, but you may be able to negotiate certain details with an advisor or agent.
The quality of its customer service plays a significant role in the company’s reputation, as does its commitment to community support and childhood cancer research funding. Northwestern Mutual’s strong finances over the years prove its stability, and it is a solid choice to consider if you’re new to purchasing life insurance policies.
Samuel Robert is an ambitious and enterprising content writer who's constantly looking for new skills. His professional experiences have allowed him to have a broader vision of the different industries in which he has worked. Through many travels around the world, Samuel has also been able to develop adaptability to various environments and challenges. His openness to the world is an asset to his personality and allows him to broaden his sources of inspiration.