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Northwestern Mutual life insurance review 2023
At a glance
About Bankrate Score
Policyholders interested in universal life insurance and high customer satisfaction ratings might want to consider Northwestern Mutual life insurance policies.
Northwestern Mutual may be a good fit for customers who prioritize customer satisfaction ratings and are primarily interested in universal life insurance policies.
Why Northwestern Mutual won
Northwestern Mutual is Bankrate's 2023 winner for best universal life insurance company. The carrier offers multiple types of life insurance policies, but its universal life offering stood out for its survivorship universal life coverage option.
Northwestern Mutual life insurance
Bankrate conducted an in-depth review of carriers to find the best life insurance companies. Based on our research, Northwestern Mutual may be an excellent choice for policyholders looking for a company that has high customer satisfaction and offers a broad range of different types of life insurance policies.
Another big perk for Northwestern Mutual life insurance is the potential to earn dividends. As a mutual company, Northwestern Mutual is owned by its policyholders rather than stockholders. Each year, leftover profits are returned to policyholders in the form of dividends. They can be taken as cash, used to increase death benefit amounts or paid toward premiums. Annual dividends aren't guaranteed, but Northwestern Mutual has been paying them out every year for almost 150 years.
Northwestern Mutual offers more life insurance policy types than some of its competitors, including:
- Term life insurance: Northwestern Mutual offers term life insurance for 10 or 20 years or until you reach 80 years old. Premiums stay the same throughout the set term but may increase based on the age you are at the time of renewal if you wish to keep the policy. Companies like Northwestern Mutual allow you to convert part or all of your term death benefit into a permanent life insurance policy before the term ends. Depending on how much life insurance coverage you need, a term policy may be best for those who need coverage for a certain period of time, such as when their children are young or while they pay off their mortgage.
- Permanent life insurance: Northwestern Mutual also offers a few different types of permanent life insurance, including whole life, universal life and variable universal life. Unlike term policies, permanent life insurance is intended to cover you for as long as you live, given that you meet the policy's terms and pay your premium. Permanent life insurance also has the potential to grow in cash value over time, whereas term does not. Permanent life insurance could be a good choice for people over 50 years old or those looking to use their life insurance to leave money for their beneficiaries.
- Whole life insurance: Whole life insurance offers permanent coverage at the same price for your lifetime as long as you pay your premiums. This policy type is typically more expensive than term life insurance but also has a cash value component. You can allow the cash value to grow over time in an interest-bearing account to use tax-deferred.
- Universal life insurance: This policy type offers permanent coverage but with greater flexibility. You can typically adjust the death benefit and the premium, subject to minimums determined in your policy. Northwestern Mutual also has a survivorship universal life policy option, which covers two lives and pays out upon the second insured's death.
- Variable universal life: A Northwestern Mutual variable universal life insurance policy has flexible premiums and cash value that you can use to invest in your choice of 40 investment funds. This type of permanent life insurance may be the riskiest, as the policy's invested cash value can fluctuate with the market. You will need to speak with a licensed insurance agent or financial advisor if you're interested in a variable universal life insurance policy.
Pros and cons of Northwestern Mutual life insurance
A++ (Superior) financial strength ratings from AM Best
Ranks above average for customer satisfaction, according to J.D. Power
Many life insurance policy types and additional products are available
Quotes not available online
Medical exams may be required
No guaranteed life insurance policy is offered
Northwestern Mutual life insurance endorsements
You must speak directly with an advisor to get a life insurance quote from Northwestern Mutual, so information regarding the company's life insurance endorsements is limited. However, the company does advertise a few options, including:
- Long-term care benefit: You can combine a long-term care rider with a whole life insurance policy to create a hybrid policy that could provide coverage if you need long-term care, such as a nursing home.
- Accelerated death benefit rider: This endorsement may allow you to collect a portion of your death benefit if you are diagnosed with a terminal illness.
Please note that Northwestern Mutual may offer additional life insurance riders, but you will need to ask your advisor during this quoting process what may be available to you. Life insurance and endorsement options can be complex, so a Northwestern Mutual financial advisor may be able to provide guidance on which products and riders might help you best meet your financial goals.
Some common life insurance endorsements you may want to inquire about include child riders, return of premium riders, waiver of premium riders and accidental death benefits.
Compare Northwestern Mutual with other insurers
Based on Bankrate's research, Northwestern Mutual may be one of the best life insurance companies, but its offerings might not be the right fit for everyone. If you're interested in exploring other companies, you may want to start with these:
Northwestern Mutual vs. MassMutual
Like Northwestern Mutual, MassMutual offers many types of life insurance policies and is highly rated for customer service. The company won our 2023 Bankrate Award for best whole life insurer. Unlike Northwestern Mutual, this company lists many of its rider options on its website, which some shoppers may appreciate.
Learn more: MassMutual Insurance review
Northwestern Mutual vs. State Farm
State Farm won a 2023 Bankrate Award for best term life insurance and ranked first for customer satisfaction in the 2022 J.D. Power Life Insurance Study. Tech-savvy policyholders may be especially interested in State Farm's highly-rated mobile app for hands-on policy management.
Learn more: State Farm Insurance review
Northwestern Mutual vs. Prudential
Prudential may be a great alternative for those seeking life insurance without a medical exam. This insurer also offers 13 riders, which may allow you to customize your life insurance policy to your individual and family needs.
Learn more: Prudential Insurance review
Is Northwestern Mutual a good insurance company?
Bankrate's insurance editorial team is committed to helping you pick a company that fits your insurance needs and budget. As 2023's Bankrate Award winner for best universal life insurance company, Northwestern Mutual may be great for those looking for universal life insurance written by a company with reputable financial strength and highly-rated customer service.
However, if you prefer to request your life insurance online without speaking to an agent or need guaranteed life insurance, this company may not be suitable for you. Speaking with a licensed advisor and requesting a quote may be the best way to determine if Northwestern Mutual is the right choice for your needs.
Northwestern Mutual customer satisfaction
For many, top-notch service may be just as important as affordable premiums or coverage offerings. To evaluate customer satisfaction, Bankrate's insurance editorial team analyzes a variety of third-party scores, including those issued by J.D. Power and the National Association of Insurance Commissioners (NAIC). Additionally, we used AM Best ratings to evaluate Northwestern Mutual's financial strength, as this could indicate how reliably a company has historically paid out death benefits to beneficiaries.
In the 2022 J.D Power U.S. Individual Life Insurance Study, Northwestern Mutual ranks high in customer satisfaction for individual policies. On a 1,000-point scale, Northwestern Mutual ranks fourth with 794 points, exceeding the industry average of 774 points.
Northwestern Mutual has the highest possible financial strength rating from AM Best. An A++ (Superior) rating indicates that the company has a generally positive history of paying out claims and satisfying its financial obligations. It also has a credit rating of Aaa from Moody's and AA+ rating from Standard & Poor's (S&P).
Northwestern Mutual life complaints
The National Association of Insurance Commissioners (NAIC) reports that the company has a complaint index of 0.04 for its individual life insurance product, compared to the baseline of 1.00. That indicates that the NAIC receives far fewer complaints about Northwestern Mutual than expected about its life insurance for a company of its size.
Other Northwestern Mutual tools and benefits
In addition to life insurance products, Northwestern Mutual also offers the following:
- Annuities: Annuities from Northwestern Mutual may help bolster your retirement savings.
- Wealth management: High net worth policyholders might find Northwestern Mutual's wealth management services helpful in maintaining their finances.
- College savings plans: Northwestern Mutual may help parents save for their child's college education through 529 plans and Coverdell Education Savings Accounts (ESA).
- Online customer portal: Policyholders can view their policy details, pay bills and more with Northwestern Mutual's online portal.
- Estate Planning: Northwestern Mutual offers estate planning services to help customers determine and craft their wills, powers of attorney, living wills and trusts.
- Life Insurance guide: Northwestern Mutual offers a life insurance guide for customers new to life insurance and those wanting a review.