Review of Northwestern Mutual Life Insurance Company
Northwestern Mutual is one the largest life insurance companies in the U.S. with financial ratings second to none. In the following review of Northwestern Mutual, we will discuss the company’s storied history, its excellent financial strength, its superb ratings and its strong product line. Is Northwestern Mutual the right company for you?
Before we dive in, take a moment to watch this short video below that helps explains the importance having options plays when looking for Northwestern Mutual life insurance quotes in comparison to other top companies in the industry.
About Northwestern Mutual
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries. Northwestern Mutual has a great motto: Live Life Differently. They believe that financial strength and security is what enables a person to do this- and they really take heed of long-term stability.
Northwestern Mutual has been around since 1857. In that time, they’ve helped millions of people by offering their families financial protection and security.
Northwestern Mutual is one of the largest mutual life insurance companies with over 3.7 million policyowners. A mutual insurance company operates for you, its policyholders and members, rather than a stock company that has to cater to its shareholders. One of the most obvious ways this is demonstrated is through the payment of life insurance dividends to its participating policyholders.
Northwestern Mutual has paid annual dividends since 1872. That means the company has maintained a profit for policyholders for over 145 years, through the Great Depression, the Great Recession, two World Wars, and countless other major events. It is this commitment to its policyholders that truly sets Northwestern Mutual apart.
Northwestern Mutual’s Ratings
Northwestern Mutual life insurance ratings are the highest ratings in the industry, shared with only New York Life.
Northwestern Mutual’s ratings:
- A.M. Best Company rating: A++ (highest rating given out of 16) as of April 2017
- Fitch rating: AAA (highest) as of July 2017
- Moody’s Investors Service rating: Aaa (highest) as of July 2017
- S&P Global Ratings AA+ (second highest) as of June 2017
In addition to these top of the line ratings, Northwestern Mutual is a recipient of the following:
- #97 on the 2017 Fortune 500 list, honored as one of the “World’s Most Admired Companies”
- BBB rating of A+
- In 2016, J.D. Power ranked Northwestern Mutual #3 in Life Insurance Customer Satisfaction, behind State Farm and Nationwide
Life Insurance Policies offered by Northwestern Mutual
The company offers a wide array of coverage. Before making any decision it is important to understand whole life vs term life insurance, and how each type of product can best meet your specific needs.
Northwestern Mutual offers many types of life insurance policies. The main categories are term, universal and whole life.
Northwestern Mutual offers convertible term life insurance, with term lengths of 10 and 20 years. The primary benefit of the policy would be to lock into coverage while you are young. Since it is convertible, you can convert all or a portion of the coverage to permanent life insurance, such as universal or whole life.
Universal life insurance provides lifetime protection with flexible premium payments that can be adjusted up or down, as long as sufficient cash value reserves are in the policy. In addition, you can raise and lower the death benefit to accommodate changing needs, rather than get an entirely new policy.
You can also choose single premium universal life, that allows you to make a one time lump sum payment for paid up coverage.
No other life insurance product provides so many guarantees, making whole life one of the best policies to choose if you are looking for a stable “home base” to store your assets, that is non-correlated to the stock market.
In addition to all the guarantees provided, Northwestern Mutual’s participating whole life policy provides annual dividends, consistently paid every year for over 140 years. Life insurance dividends are valuable and can be used to purchase paid-up additions, pay premiums for a time, leave with the company to earn taxable interest, or cash out for whatever you like.
Another benefit of whole life insurance is the cash value can be borrowed against income tax free with a life insurance loan that uses the cash value as collateral. You can then use your loan to pay down debt, supplement retirement income, or buy passive income investments.
Individual Disability Income Insurance
Northwestern Mutual is one of the highest rated disability insurance companies around. The primary focus for NM is on long term coverage.
According to disability statistics, you have about a 1 in 4 (25%) chance over the lifetime of your career of becoming disabled. If you suffer from total disability due to sickness or injury you will suffer financially. One way to soften the blow, and maybe even come out ahead, is with long term disability insurance.
The best long term disability insurance provides a true own occupation definition of total disability. You can tailor the policy to accommodate your budget by extending the elimination period, lowering the monthly benefit amount and shortening the benefit period. Alternatively, you can increase your coverage by shortening your elimination period, raising your monthly benefit amount and lengthening your benefit period.
Northwestern Mutual has a particular focus on physicians and dentists. You have to give NM credit, that is a good market to focus on since many in that industry command a high paycheck. And there are many instances where NM is a great option. Just be aware that there are other highly competitive own occupation disability insurance companies out there that may offer something better.
So what should you do if you are interested in private disability insurance? Give us a call to speak to an independent disability insurance agent who can offer unbiased advice on which company and policy will be the right fit for you, based on your needs and goals.
Should I buy a policy from Northwestern Mutual?
If you have found your way to this page, then you probably really have one major question you’re looking to answer: Should you buy a life insurance policy or disability insurance policy from Northwestern Mutual? This is a bigger question than you may realize! And because it’s such a big question, it’s almost impossible to answer.
The reason for this is because the process of choosing a life insurance company is much more personal than you may realize. Life insurance companies decide on the price of your premium and the amount of coverage they are willing to offer you based on a lot of personal information about YOU. That means one life insurance policy may be really awesome for one person, but not so awesome for another.
If you truly want to know if a life insurance company is great for you, then you need to get personalized information. We recommend that you call Northwestern Mutual directly and see what they have to offer.
However, you can’t stop there.
In order to know if they’re offering you the best life insurance coverage, you need to know what the other guys are going to offer you. How do you do that? You call TermLife2Go.
We will provide you with our recommendations based on your specific needs, goals and objectives. After we give you our customized life insurance recommendations, you can take that information and compare it with what Northwestern Mutual has to offer.
Then you’ll know if Northwestern Mutual is offering you the best life insurance policy possible—for you, based on your unique need, health and lifestyle.
So, what are you waiting for? Give us a call today and see what we can do for you!
Thank you for reading our review of Northwestern Mutual. Please leave any questions or comments below.