Northwestern Mutual Life Insurance Review

Overview

Northwestern Mutual Life Insurance which has headquarters in Milwaukee, Wisconsin was established in 1857. Aside from insurance products, they offer a multitude of financial services. All four major rating agencies i.e. A.M. Best, Moody’s, Standard & Poor’s and Fitch have bestowed upon Northwestern Mutual the highest ratings for insurance financial strength. The company is also the largest provider of individual life insurance policies in the U.S.A. As such, it is the industry leader in paying total individual life insurance dividends to policy holders with more than US$ 1 trillion policies in force.

Policies / Plans

Northwestern Mutual offers five life insurance plans:

Permanent Life Insurance

Northwestern Mutual has several plans under Permanent Life Insurance. Customers may opt to pay level premium payments or a single premium payment, depending on their financial preference. Customers need not worry as long as their premium payments are met, their death benefits are guaranteed with potential for tax-deferred cash value growth. All permanent life insurance plans are eligible for yearly dividends, which can be added to the policy holder’s cash value. Their permanent life insurance plans are flexible accommodating to any changes in the policy holder’s lifestyle. For single-premium permanent life insurance, customers may only pay a one-time premium which immediately earns a cash value when the policy takes effect. Single-premium life insurance policy holders are also eligible for annual dividends. Minimum coverage starts at US$ 25,000.

Term Life Insurance

Northwestern Mutual’s term life insurance plans offer coverage for a specified period of time with guaranteed death benefits. Basically, their term life insurance are either annually renewable where premium payments generally start out lower in the beginning of the policy with an annual increment or level premium term insurance where premiums are relatively higher but fixed for a specified time period i.e. 10, 20 years or until the end of the contract. Customers have an option to convert these term life insurance plans to a permanent life insurance policy within a certain given period. Northwestern Mutual’s term life insurance plans differ in terms of the age of the policy holder, amount of premium payments paid as well as how long customers would like to pay a certain premium amount and also the coverage needed, either a minimum of US$ 100,000 or US$ 250,000.

Combination Life Insurance

Northwestern Mutual offers several plans that are a combination of permanent and term life insurance features fully customizable with full flexibility to suit either businesses or individuals. Not only are customers offered permanent coverage with full death benefits with the opportunity to accumulate cash value but they are also eligible for dividends and the ease to choose their own premium payment methods and amounts. Northwestern Mutual’s combination life insurance is truly where the customer can have the best of both worlds in keeping with their budgetary or life’s needs. Minimum coverage may start from as low as US$ 25,000.

Universal Life Insurance

For customers who have sophisticated financial and insurance needs and who desire premium as well as death benefit flexibility, Northwestern Mutual has various universal life insurance plans to suit their needs. Premium payments are fully flexible, upon the first payment customers may opt not to pay subsequent premiums as they may be deducted from their cash value accrual so there is no risk of lapse. Provisions for loans are also available. Interest earned depends on the type of policy taken up. Minimum coverage starts at US$ 25,000.

Variable Life Insurance

For customers who are more risk-tolerant, Northwestern Mutual offers several plans under their variable life insurance, which offers all the benefits of a life insurance plan with the opportunity for greater cash value accrual as well as death benefit growth than the traditional life insurance plan. Customers decide where to invest their cash value in accordance with their risk appetite and needs. Northwestern Mutual offers an array of investment choices, flexibility in premium payments and the potential to withdraw funds or borrow against the policy’s cash value.

Pricing / Rates

Northwestern Mutual offers a variety of life insurance plans and because of this, their plans are affordably priced to suit every budgetary or lifestyle need.

Getting A Quote

Quotes are not readily available online but customers may easily request for an agent or representative to contact them to obtain one by filling in an online request form.

Customer Service

Customers are well taken care of as there is an ease of communication with Northwestern Mutual. Existing or new customers can easily set up their own online accounts in order to view their life insurance details. Should they face any difficulties, they can easily contact Northwestern Mutual via their online forms.

Some might say that their customer service represents their #1 selling point and while it may be debatable whether or not it is the #1, this much is certain: their customer service is excellent to say the least.

Summary

Based on the factors stated, Mutual of Omaha Life Insurance scored what it did. It is obvious why Northwestern Mutual is the largest provider of life insurance products in the U.S.A. The only downside is that their quotes are not readily available online and certain premiums for certain products may be pricey.