Northwestern Mutual Life Insurance | Company Review

Northwestern Mutual Life Insurance – Company Review

Although life insurance is a critical step to protect your loved ones when you’re no longer there, it’s also a critical strategy to implement when planning for retirement. With tax and spend legislators growing the country’s national debt, adding a tax-exempt income stream to your planning strategy is essential.

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• About Northwestern Mutual Life Insurance Company
• Why Choose a Mutual Insurance Company?
• Northwestern Mutual Life Insurance Products
• Pros and Cons 
• Frequently Asked Questions

There are many companies in the marketplace that offer insurance products that are a good fit for retirement planning, and among these companies, Northwestern Mutual Life Insurance is one of the best.

About Northwestern Mutual Life Insurance Company

Founded in the mid-1800s, Northwestern Mutual has established itself as one of America’s leading insurers with a 96% annual renewal rate, paying out more than $4.5 billion in claims in 2018. In fact, in 1859 a train accident resulted in the company having to pay out $1,500 more than they had on hand in claims. They made good on their promise to pay because the company’s president and trustees took out personal loans to pay the claim.

Northwestern Mutual is a multi-billion-dollar insurance company, but they don’t sell their policies directly to the public. Instead, they rely on representatives to market and sell their products to potential customers. Northwestern Mutual offers various life insurance plans that feature the ability to grow cash value over time.

The company demonstrates superior financial stability and has earned the highest ratings possible from each of the national rating services:

The importance of national rating scores should not be understated since life insurance is simply a promise to pay a benefit in exchange for a premium. Using life insurance for estate or retirement planning means that the insurance company must be financially stable enough to deliver on its promise decades after the purchase.

Why Choose a Mutual Insurance Company?

When using whole life insurance or universal life insurance for retirement and estate planning, it’s essential that you choose a mutual insurer. Since mutual insurance companies are owned by policyholders rather than stockholders, each policyholder has the opportunity to share in the company’s profits.

Northwestern has a rather long very positive record of paying dividends to its qualifying policyholders and the company estimates that it will distribute over $6 billion in dividends in 2022. This will be the company’s highest dividend payout in its history of the company.

These dividend payments allow policyholders to accumulate considerable wealth over time and build the asset needed to provide tax-exempt retirement income, the money needed for estate protection and settlement, and the death benefit purchased to protect surviving loved ones.

Northwestern Mutual Life Insurance Products

When it comes to life insurance products, Northwestern is one of the few companies that believe more is better. While most companies have pruned their product portfolio, Northwestern continues to offer ten life insurance products so that all prospective customers can purchase the life insurance product that will fit their circumstances, future needs, and budget.

Northwestern offers its life insurance portfolio to residents of all the U.S. and Washington D.C., the U.S. Virgin Islands, American Samoa, Puerto Rico, Guam, and the Northern Mariana Islands.

Northwestern Mutual is also known for its Annuity products, Disability insurance, and long-term care insurance.

Pros and Cons for Northwestern Mutual

Pros:

• Northwestern offers an extensive product portfolio to meet the various needs of prospective clients.
• Unlike other mutual insurers, Northwestern is willing to pay dividends on a term, whole life, and universal life insurance.
• One of the highest-rated insurers in the U.S. and beyond.
• Term policies contain a conversion option to its universal life product
• Very positive dividend payment history
• A substantial offer of optional riders

Cons:

• All products must be sold via an approved agent or financial professional.
• Most applicants will be required to undergo a medical exam for underwriting purposes.
• Information on Northwestern’s website is limited compared to competitors’ websites.

Frequently Asked Questions about Northwestern Mutual