Northwestern Mutual Life Insurance Review: Term, Whole, Universal, Variable Life – Business Insider
Bottom line: Northwestern Mutual is a national carrier that was established in 1859. It is known for its high marks in customer satisfaction and relatively affordable rates. However, you can only get a quote through a Northwestern Mutual Life agent.
Northwestern Mutual life insurance pros and cons
Northwestern Mutual life insurance policies
JD Power Customer Satisfaction Rating
#3
AM Best Financial Strength Rating
A++ (Superior)
JD Power Customer Satisfaction Rating
#3
AM Best Financial Strength Rating
A++ (Superior)
More Information
5/5 for claims satisfaction according to JD Power
Offers whole, universal, variable universal, and term life insurance policies
Northwestern Mutual was established in 1859 by Samuel S. Daggett in Wisconsin. It ranks #3 in J.D. Power’s life insurance customer satisfaction survey. It is also one of our top picks for the best life insurance companies in 2022.
Northwestern Mutual offers both term and permanent life insurance policies. The term life policies available are level term, where you can choose a coverage period of 10 or 20 years, and annual renewable
term life insurance
. Northwestern Mutual’s term life policies are also convertible. You can switch your term life policy to a permanent one without a medical exam.
The cost of your term life insurance will depend on your age, health, the amount of coverage you need, and the length of your policy. However, Northwestern Mutual term life insurance is relatively affordable— usually less than a dollar a day. According to the insurer, a $500,000 policy covering you up to age 80 for a 35-year-old female would cost about $22 a month. A 35-year-old male would cost about $26 a month. According to Insider’s average cost of life insurance data, the cost of life insurance can range anywhere from about $40 to $50 per month.
Northwestern Mutual offers three types of permanent life insurance that pay a death benefit, build cash value, and offer the opportunity to receive dividends: whole life, universal life, and variable life insurance.
Level term life insurance — This temporary policy allows you to select a term period of 10- or 20-years. Annually renewable term life insurance — This policy lasts until you cancel your policy or reach a certain age. Factors like age and health will be considered when you first purchase this policy and will increase over time. Whole life insurance — This permanent policy pays a death benefit and offers cash value with annual dividends. You pay a fixed premium for this type of coverage. Universal life insurance — This permanent policy guarantees a death benefit and allows you to earn cash value. Unlike a whole life policy, your cash value will grow based on money market rates. You also have more flexibility regarding when and how much you pay in premiums. Variable life insurance — This permanent policy gives you agency over your cash value by allowing you to choose where to invest.
There are two types of life insurance: permanent life and term life. Term life insurance lasts for a specified period. When it’s up, you can reapply for coverage, but the premiums most likely will go up as you age.
Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.
Northwestern Mutual offers these additional policy options as well:
Disability insurance — This policy protects you by replacing a portion of your income if you become too sick or injured to work.Long term care coverage — This policy covers the cost of assisted care when you are no longer able to care for yourself. This includes care provided by nursing homes, adult day care centers, or home aides.
Learn more by visiting Northwestern Mutual’s life insurance website.
Northwestern Mutual vs. the competition
Northwestern Mutual, New York Life, and MassMutual are established life insurance carriers whose services are offered nationwide. All providers have term, whole, universal, and variable life products. Northwestern is ranked the highest among its three competitors. However, it does not have an easy online quoting tool like MassMutual does.
Is Northwestern Mutual trustworthy?
We checked the NAIC Complaint Index for complaints against Northwestern Mutual. The company has significantly fewer complaints filed against it compared to other top insurers.
Northwestern Mutual’s financial stability is strong, with an A.M. Best rating of A++ (Superior). While it’s a legitimate insurance provider, it’s important to do your own research to ensure Northwestern Mutual is the right insurance company for you.
Northwestern Mutual — Frequently asked questions (FAQ)
Where is Northwestern Mutual available?
Northwestern Mutual is available in all 50 states including the District of Columbia.
How do I register for a Northwestern Mutual account?
You can register for a Northwestern Mutual account by using its online portal. With a Northwestern Mutual account, you get access to your financial summary, you can manage your accounts, and you can make payments online.
How do I get a quote from Northwestern Mutual?
Northwestern Mutual doesn’t have an online quoting tool, so you’ll have to get in touch with a financial advisor. Complete Northwestern Mutual’s questionnaire to get matched with an advisor, or you can search for a financial advisor if you’re looking for someone specific.
Alani Asis
Personal Finance Reviews Fellow
