Northwestern Mutual is a long-standing, top life insurance provider in the United States. As the name suggests, it is a “mutual” company, meaning it doesn’t have shareholders but rather policyholders who become part of the company. In some cases, policyholders may receive an annual dividend if the company is doing well financially that fiscal year. And the good news? It usually does. The company estimates that it will pay out $6 billion in dividends in 2020 — the highest payout in its history.
Northwestern has excellent customer service, and its retention level is 96 percent, which means that customers are happy enough to stick with the company for their life insurance needs. The company is financially stable and boasts an A++, or Superior, rating from A.M. Best, which indicates its ability to pay claims.
Like most life insurance companies, Northwestern Mutual offers term, whole, and universal life insurance policies. What makes this company stand above the rest, though, is the flexibility as to each type of life insurance. A range of options is available for extension, termination, and conversion, which means that your insurance policy can change with your life changes. So if your insurance needs a sudden change, the company’s cash surrender option offers an early out and term-to-permanent conversion to provide you with the chance to extend coverage beyond your original term. This option makes Northwestern a cut above its competitors.
The only aspect of the company that has some room for growth is online resources. The company’s website lacks support and learning materials that are typically seen on other life insurance provider websites. However, its high rating for customer satisfaction indicates that you’ll have a good experience when you reach out to customer service reps.
A mutual company that is not owned by shareholders, but policyholders instead
Good, solid basic policy offerings
Excellent customer satisfaction
Seniors and smokers are eligible for plans. Riskier customers welcome, though at higher premiums
Flexible payments. Depending on which policy you have, you can choose when and how to pay for your policy
Plans build cash value. Universal and whole life insurance plans build cash value that you may opt to receive as a payout, apply to your premium, or borrow against your policy (i.e., to buy a home)
No online quotes. You must get your quote directly from an agent
Most policies require a full health exam
Sold through agents. You can’t buy the policies directly online, which means that your premiums may be slightly higher to pay for the agent’s commission. While you can forward your info online, you must get a quote from a Northwestern Mutual insurance agent
As one of the largest insurance companies in the U.S., Northwestern Mutual is a strong, reputable life insurance provider. With well-rounded coverage, highly rated customer service, and reliable financials, this company is sure to have something for everyone. Its flexible policy terms, living benefits, and additional riders make this is a safe bet.