Northwestern Mutual Life Insurance

Life insurance is a simple way to protect your family’s financial future. However, getting a policy with an insurer you can trust is critical to make sure the safety net you establish is as stable as possible. Below, we review Northwestern Mutual, CNBC Select’s overall top choice for life insurance. We dive into the company’s history, look at coverage options and see how Northwest Mutual stacks up to the competition.
Northwestern Mutual life insurance review
Northwestern Mutual Life Insurance Learn More Cost The best way to estimate your costs is to request a quote
App available Yes
Policy highlights As the largest life insurer by market share in the U.S., Northwestern Mutual is an established choice with a proven record. And, it offers a number of types of policies across the country. Pros Variety of life insurance products available
Highly rated for customer satisfaction Cons Policies must be purchased through a financial professional Learn More View More
Overview
The largest provider of life insurance in the U.S., Northwestern Mutual has been issuing policies for more than 160 years. As a mutual company, it is owned by its policyholders, rather than investors or shareholders. Northwest Mutual prides itself on its financial strength: It’s earned AM Best’s highest credit rating, an “A++”, which the agency only assigns to insurers with “a superior ability to meet their ongoing insurance obligations.”
Fitch Ratings also gave Northwestern Mutual its highest score, an “AAA,” denoting its lowest expectation of defaulting. AAA ratings are only awarded “in cases of exceptionally strong capacity for payment of financial commitments,” according to Fitch. While dividends are never guaranteed, Northwestern Mutual has a strong track record of paying them to policyholders, which it’s done every year since 1872. The company expects to give back $7.3 billion to policyholders in 2024, the most in its history. The National Association of Insurance Commissioners assigned Northwest Mutual a complaint index of 0.03, indicating it receives far fewer complaints about its life insurance policies than expected for a company its size. (The NAIC’s baseline complaint index is 1.00.) In terms of customer satisfaction, Northwestern Mutual earned a 790 out of 1,000 in J.D. Power’s 2023 Individual Life Insurance Study, on par with the industry average.
Types of life insurance offered
Northwestern Mutual offers several types of life insurance, including term, whole and universal policies. Here’s what you need to know about Northwestern Mutual’s life insurance products. Term life insurance While term life insurance policies expire and don’t build cash value, they’re an affordable way to get coverage. Northwestern Mutual offers four different policies with annual renewable term life insurance and level term life insurance options: Term 80. Coverage lasts until age 80 and premiums increase every year.
Coverage lasts until age 80 and premiums increase every year. Term 10. Coverage that lasts for up to 10 years, increasing every year.
Coverage that lasts for up to 10 years, increasing every year. Level term 20. Coverage that lasts for up to 20 years with a consistent, level premium.
Coverage that lasts for up to 20 years with a consistent, level premium. Level term 10. Coverage that lasts for up to 10 years with a consistent, level premium. Northwestern Mutual’s term-life policies include a “waiver of premium” rider that, in the event of a qualifying disability, can enable you to keep your coverage without paying premiums. Whole life insurance In addition to a traditional death benefit, whole life insurance can build cash value that is accessible during the policyholder’s lifetime. This permanent coverage can also earn dividends and while these payouts are never guaranteed, Northwestern Mutual has issued dividends annually for over 150 years.
The company offers three riders for whole life insurance: a waiver of premium rider, an additional purchase benefit and an accelerated care benefit, which pays out a portion of the death benefit to cover long-term care expenses. Universal life insurance Universal life insurance offers more flexibility than a whole life policy and also has a cash value component. While universal life insurance policies don’t accumulate dividends, Northwestern Mutual does offer survivorship (second-to-die) universal life insurance for those interested in joint life insurance.
There’s also a Custom Universal Life product that builds cash value tax-deferred and allows 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 investment funds.
Since the policy’s cash value is invested, however, it can go up or down with the market.
Other products offered
While Northwestern Mutual has issued millions of life insurance policies, it’s not the only product the brand offers. Disability insurance can provide a portion of your salary if you’re injured or too ill to work.
can provide a portion of your salary if you’re injured or too ill to work. Long-term care insurance can cover the cost of care if you need help with daily tasks like bathing or getting dressed because of a disability, disease or other chronic health condition.
can cover the cost of care if you need help with daily tasks like bathing or getting dressed because of a disability, disease or other chronic health condition. Income annuities provide a fixed income stream for life, regardless of how the market performs. Beyond insurance, Northwestern Mutual also offers financial planning services that can help with retirement, saving for college, estate planning and other topics.
How it compares
Northwestern Mutual’s financial strength ratings and product variety help it stand out from the pack. Its whole life insurance policies have an enviable history of paying dividends 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 joint universal life insurance policy that pays out after both insured individuals have passed away, known as second-to-die coverage. The company doesn’t offer any guaranteed life insurance policies, which usually pay out enough to cover funeral expenses 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’ll need to connect with an agent to get a quote or apply for coverage.
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Bottom line
Northwestern Mutual’s history of financial strength and customer service make it a strong choice for permanent life insurance, whether you’re looking for a whole life, universal or variable policy.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.