The ultimate goal of life insurance coverage can be as varied as the people who purchase it. For some, the purpose of a policy may be to ensure that loved ones can continue with their daily living expenses in case of the unthinkable. For others, having a policy in place may mean that final expenses will be paid, providing peace of mind to a long-time spouse and other family members.
But whatever the reason is for obtaining life insurance, there are several key factors to keep in mind before actually purchasing a policy. The certainly include the type and the amount of coverage that you are seeking – as you will want to ensure that your survivors are adequately protected.
But making sure that the insurance company through which you buy the policy is financially stable should also be a must. This is because if or when a claim needs to be filed, you will want to know that the company is there to make good on their promise to pay out. One such insurer that has been there for its policyholders for more than 160 years is Northwestern Mutual Life Insurance Company.
Northwest Mutual Life Insurance
The History of Northwestern Mutual Life Insurance Company
Northwestern Mutual Life Insurance Company is a name that is well recognized in the insurance industry. Having a long history that spans more than 160 years, this company began helping its customers to both grow and protect wealth, and it continues to do so today.
This large insurance company now has over 4 million policyholders and has paid out more than $47 billion in dividends. As a mutual insurer, throughout the year 2016, the company anticipates paying out more than $5.5 billion in total dividends to its life insurance and disability insurance policyholders. The company has its headquarters in Milwaukee, Wisconsin, and it has recently begun to build a new home office building that has in excess of 1 million square feet.
Northwestern Life Insurance Company Review
Northwestern Mutual is today one of the largest, financially stable life insurance companies in the world. It currently has more than $238 billion in assets, and it took in nearly $28 billion in 2015 revenue. This ranks the insurer as number 109 on the Fortune 500 list. The insurer has approximately $1.6 trillion worth of life insurance protection in force, with 3.7 million people insured through 5.7 million policies. The company has more than 330 local offices that are located across the United States.
Northwestern Mutual is proud of keeping its promises. Not only does it have a stellar reputation for paying out it policyholder claims, but the company is also heavily involved in the communities that it serves. It also believes in doing what is right.
It has a long-term focus, as well as prudent investment strategies – which is one of the reasons why it has held such a strong financial position in the industry – and has also been able to continuously help its clients to grow and protect their wealth.
The company also believes that a diverse and inclusive workforce attracts and engages the very best talent. Therefore, it hires and attracts a wide array of employees and associates, and it is affiliated with some diverse organizations and entities.
Just some of its corporate commitments include the following:
- The Northwestern Mutual Foundation has given nearly $170 million to communities across the nation in the past decade
- Northwestern Mutual has given more than $9 million to support urban education in Milwaukee during the past five years
- Employees of Northwestern Mutual volunteer more than 30,000 hours each year to community organizations
Because of its strong financial position, along with its mission to help its clients to succeed, Northwestern Mutual has achieved numerous accolades, such as:
- World’ Most Admired – The company is among the “World’s Most Admired” life insurance companies, according to Fortune magazine’s annual survey, published February 19, 2016;
- Giving – The company is one of the largest corporate givers in Wisconsin, donating nearly $290 million to non-profits nationwide since its foundation’s inception in 1992;
- The company’s nationwide Childhood Cancer Program is helping to accelerate the search for a cure to childhood cancer and providing support to families that are affected by the disease – and to date, more than $10 million has been donated by Northwestern Mutual, and more than 98,000 hours of research have been funded;
- Top 10 Broker-Dealer – The company ranks among the Top 10 independent broker-dealers as measured by revenues by leading investment publications: Financial Advisor magazine, April 2015; Financial Planning magazine, June 2015; and Investment Advisor magazine, June 2015;
- Guidance – The financial representative training program is recognized among the country’s best, helping the reps to guide their customers to a more secure future;
- Customer Satisfaction – The company also has a persistency rate of 96% for life insurance in force;
- Market Share – Northwestern Mutual is the largest direct provider of individual life insurance in the United States, ranking first in market share, based on 2015 data from SNL Financial;
- Total Dividends – The company expects to pay an industry-leading total dividend of $5.6 billion in the year 2016;
- Ratings – The company has the highest financial strength ratings that are awarded to any life insurer by all four of the major rating agencies.
Northwestern Mutual Life Insurance Company Ratings and Grades
Because of Northwestern Mutual Life Insurance Company’s financial strength and stability, this company has been given superior ratings by all of the insurer rating agencies. These include the following:
- A++ by A.M. Best
- AAA by Fitch Ratings
- Aaa by Moody’s
- AA+ by Standard & Poor’s
In addition, Northwestern Mutual Life Insurance Company has been an accredited member of the Better Business Bureau since October 1, 1939, and it has been given a grade of A+ on an overall grade scale of between A+ through F. This puts them on par with well known companies like Mutual of Omaha and Minnesota Life.
Throughout the past three years, Northwestern Mutual has closed out a total of 35 complaints. Of these 35 complaints, 27 have centered on issues with the company’s products and / or services. Another six had to do with billing and / or collections issues, one was regarding advertising and / or sales issues, and another one had to do with delivery issues.
Life Insurance Products Offered By Northwestern
Northwestern Mutual Life Insurance Company offers many different types of life insurance coverage. These include both term and permanent protection. These include the following options:
Term Life Insurance Coverage
With term life insurance, a policy holder will be covered with death benefit protection only. This is why term insurance is often considered to be the most basic form of life insurance coverage. Because of this, however, term insurance can be quite affordable – especially for those who are young and in good health at the time of the application and are seeking larger amounts of coverage, such as a million dollar life insurance policy.
Term life insurance, as its name suggests, can be purchased for a certain amount of time, or “term.” Northwestern Mutual Life Insurance Company offers several different term life products that provide level, guaranteed premiums throughout the term of the policy, as well as level death benefit options. These policy options are for 10, 15, 20, 25, and 30 year periods. There may also be the option of converting the policy over into a permanent life insurance policy. This can allow the insured to have coverage that lasts for the remainder of his or her lifetime, provided that the premium is paid.
A term insurance policy may be a good choice for someone who is seeking lower premiums, as well as when the insurance need is temporary – such as when they want to ensure that a mortgage balance will be paid off. Term can also be a good choice for supplementing permanent life insurance coverage. Unlike with Prime America life insurance, level term and increasing term plans are also available.
Permanent Life Insurance Coverage
Permanent life insurance offers death benefit protection and cash value build up. With this type of coverage, an insured can have life insurance for the remainder of his or her life – guaranteed, as long as the premium continues to be paid. There is also the ability to build up savings via the cash value.
Cash is allowed to grow tax-deferred. This means that there are no taxes due on this growth unless or until it is withdrawn. Because of this tax deferral, the cash can grow and compound exponentially over time. These funds are able to be either borrowed or withdrawn by the policyholder for any reason.
Northwestern Mutual Life Insurance Company offers several different types of permanent life insurance coverage, including:
Whole Life Insurance
Whole life insurance provides a death benefit that is guaranteed, as well as a premium amount that is locked in, too. This is the case, regardless of the insured’s increasing age, and even if the insured contracts an adverse health condition in the future. The cash value in a whole life insurance policy grows, based upon a set interest rate that is determined by the insurance company. Because Northwestern Mutual is a mutual company, the whole life insurance policies that are offered are also eligible for dividend payments. These dividends may be used to increase the policy’s value.
The company offers several whole life insurance policy options, including one with premium payments that will last until the insured is either age 65, or until age 90. The insured may also opt to pay premiums for a set amount of time, such as 10, 15, 20, 25, or 30 years.
Universal Life Insurance
Universal life insurance also offers a death benefit and a cash value. Here, the policy is more flexible than whole life because the premium may be adjusted – based on certain guidelines. Northwestern Mutual offers the choice of either increasing or level death benefit options on its universal life insurance policies.
Variable Life Insurance
With variable life insurance, the policyholder can choose how the premium payments are invested. While there is the ability to attain much growth in the cash component of a variable life insurance policy, there can also be more risk due to the market exposure. These policies can offer guaranteed death benefit coverage – including a lifetime option.
Northwestern Mutual Life Insurance Company also offers a CompLife Insurance plan. This is a hybrid policy that is essentially a combination of term and permanent life insurance coverage. Here, the policyholder has the ability to custom design a blend of coverage that best fits their needs and their premium budget.
Other Products Offered
In addition to life insurance coverage, Northwestern Mutual Life Insurance Company also offers other products and services, as well. These include:
- Disability insurance
- Long-term care insurance
- Mutual funds
- Individual securities
- Advisory programs
- Personal trust services
- Brokerage services
- Retirement plans
- Fixed income management
- Cash management
- Discretionary investment management
Annuities Offered by Northwestern Mutual
Just about everyone has heard the word “annuity,” but not many people understand exactly what they are and why they should have one in their investment portfolio. How does an annuity work? The concept of an annuity is simple, it’s a contract between you and an insurance company that gives you a place to put money for retirement. Once you’ve reached that stage, the annuity is a guarantee that you’ll get a paycheck after you’ve retired.
The advantages to annuities is that they grow tax-deferred until they start paying out. You can contribute to an annuity in payments over time, or you can do it all at one time if you have the money saved.
Northwestern is the second-largest provider of deferred annuities in the United States, which means that they must be doing something right. According to their website, their annuities are “backed by a history of financial strength,” which is extremely important when you’re looking at a place to invest your retirement funds. It’s important to note that Northwestern has an A++ rating from A.M. Best.
Where to Find the Best Life Insurance Premium Quotes on Coverage
When seeking life insurance coverage, it is typically best to work with an independent agency that has access to multiple carriers. That way, you can compare several insurers and from there, make the determination as to which will be the best for you. This is not only true for when seeking life insurance coverage, but when looking for other forms of coverage as well, such as the best auto insurance companies and policies.
If you are ready to move forward with researching life insurance options, we can help. We work with many of the best life insurance companies in the industry today, and we can assist you in obtaining all of the details that you require for making a purchase decision. To proceed, fill out and submit the form on the side of this page.