Northwestern Mutual Life Insurance Review

Most Attentive to Customers’ Needs

Northwestern Mutual limits the amount of information about its policies online, requiring applicants to work with one of the company’s agents to get a quote. Since these policies aren’t sold online or through a broker, seniors can enjoy exclusive personal attention throughout the application process. It can be easier to ask questions and discuss benefit requirements in detail because the applicant will typically work with the same agent in each interaction. When combined with Northwestern Mutual’s high customer service scores, the company offers seniors a positive experience as they discuss their life insurance needs.

Pros and Cons of Northwestern Mutual’s Life Insurance

Pros:

• Some policies are eligible for dividends.
• Term policies can be converted into whole life policies.
• The company receives excellent customer service ratings.

Cons:

• The company lacks online applications and requires contact with an agent for quotes.
• Most death benefits start at $100,000 with no options for lower coverage.
• The company lacks transparency.

Overview of Northwestern Mutual’s Life Insurance

Ranked by U.S. News as number one in life insurance for seniors in 2022, Northwestern Mutual was established in 1857 and has a long history of providing insurance products. Life insurance products for seniors are somewhat limited, but the company offers a unique shopping experience by selling its policies exclusively through its own agents. Because the company has consistently high marks for customer service, seniors can expect a first-class experience while applying for the policy of their choice.

How Much Does Northwestern Mutual’s Life Insurance Cost?

Exact pricing for Northwestern Mutual life insurance products isn’t available without contacting an agent, and several factors can affect death benefit amount eligibility and premium payments. When reviewing an application to determine cost, the company looks at the following:

• Applicant’s age and gender
• Overall health and whether the applicant uses tobacco
• Any high-risk hobbies or activities
• Weight
• The amount of coverage requested
• Type of policy chosen
• Any optional coverage or riders

For some policies, seniors may find some flexibility with premium payments, allowing them to reduce payments for a time or all together with a change in death benefits.

Eligibility, Plan Details and Other Information

Northwestern Mutual offers several insurance plans for seniors. Each plan requires submitting an application through a company agent and completing a medical exam to determine eligibility.

Term Life Insurance

These policies can be set up with level premiums or premiums that increase annually. A term policy can be converted into a whole life policy, sometimes without fees or the need for a medical exam. Northwestern Mutual offers a waiver of premium rider for those who qualify. The plan provides investment options, and death benefit dispersal can be done in a few ways:

• Lump sum
• Installments
• Transfer to an investment account
• Some combination of these

Any money paid to beneficiaries is tax-free.

Whole Life Insurance

Northwestern Mutual’s Whole Life Plus is the only whole life policy it offers. The option is available to anyone up to the age of 85, but there are different age limits for each premium payment period. Possible payment periods include:

• 15 years
• 20 years
• 25 years
• Until age 65
• Until age 100

Coverage with this type of insurance starts at $50,000 for single coverage and $250,000 for survivorship whole life. Monthly premiums are guaranteed to be level with either option. The Whole Life Plus policy includes a living benefit that allows the policyholder to access a tax-deferred cash value when needed, and this cash value is paid out should the policy ever be canceled or surrendered. The available cash value is also added to any death benefit paid to beneficiaries. Death benefit payments are tax-free and can be offered in a few different forms, such as:

• Lump sum
• Installments
• Transfer to an investment account
• Some combination of these

Universal Life Insurance

These lifetime policies have a cash value and provide the flexibility to make adjustments to premiums and death benefits as needed. Northwestern Mutual offers three Universal Life Insurance options.

CUL Accumulator Permanent Universal Life Insurance

This standard universal policy offers lower premiums than those found with whole life insurance and allows death benefit adjustments. If policyholders need to lower their payments, reducing the death benefit is one way to accomplish this. Premiums can also be altered on their own if there’s enough cash value accrued to cover them while payments are lowered. The cash value for this policy is available for withdrawal and can often be tax-exempt.

Variable Universal Life Insurance

Variable policies work the same as standard policies, except the policyholder has more control over investment options. This allows the insured to select how much variety and risk is acceptable when looking for a cash accrual return.

Survivorship Universal Life Insurance

This policy is similar to the other universal life offerings except it covers two people instead of one. Death benefits are paid after both insured individuals have passed.

Who Should Consider Northwestern Mutual’s Life Insurance?

Seniors Who Prefer To Discuss Options in Person

Northwestern Mutual doesn’t disclose much of its life insurance details online, and quotes can only be obtained by getting in touch with a company agent. For seniors who prefer to discuss their financial needs in person, this can offer a much more pleasant experience.

Seniors Looking for a Financial Safety Net

Many of the life insurance products offered by Northwestern Mutual include investment options and a cash accrual feature. This cash value can be withdrawn to cover unexpected expenses or left in the account to increase the death benefit amount in some cases.

Seniors Who Value Consistent Customer Service

Northwestern Mutual is consistently a top-rated insurance company when it comes to its customer service standards. This may be a better experience for seniors who anticipate frequent contact, whether to make adjustments or ask questions.

Who Should Consider Northwestern Mutual’s Life Insurance?

Seniors Who Prefer To Discuss Options in Person

Northwestern Mutual doesn’t disclose much of its life insurance details online, and quotes can only be obtained by getting in touch with a company agent. For seniors who prefer to discuss their financial needs in person, this can offer a much more pleasant experience.

Seniors Looking for a Financial Safety Net

Many of the life insurance products offered by Northwestern Mutual include investment options and a cash accrual feature. This cash value can be withdrawn to cover unexpected expenses or left in the account to increase the death benefit amount in some cases.

Seniors Who Value Consistent Customer Service

Northwestern Mutual is consistently a top-rated insurance company when it comes to its customer service standards. This may be a better experience for seniors who anticipate frequent contact, whether to make adjustments or ask questions.

What Are People Saying About Northwestern Mutual’s Life Insurance?

Most consumer reviews offer high marks for the company’s excellent customer service, whether contact was through the customer’s agent or with the call center. Some mentioned that the application process can seem overly thorough, but most agreed that the experience was positive after approval. There were a few complaints about the commission-based nature of the insurance sales through Northwestern Mutual’s agents, but most reviewers understood this up-front and felt the responses to their queries were ethical and informative. In many cases, customers claimed their agents or advisors felt like old friends, assessing their evolving needs each year and making helpful suggestions to ensure their products were the right fit for their situation.

Frequently Asked Questions

How Much Life Insurance Should You Have?

Coverage amounts vary based on what benefits are intended to accomplish. Policies meant to cover burial expenses will differ from those that will be used to pay off debt or support dependents.

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What Are Life Insurance Living Benefits?

Living benefits are monetary benefits offered while the insured is still alive. This can include options like cash accrual withdrawals or long-term care payments.

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What Are the Pros and Cons of Selling Your Life Insurance Policy?

Seniors who need fast cash may receive a better offer on a sale rather than cashing out their policy. However, a replacement policy may be harder to get should they need it, due to advanced age or a change in health status.

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How Long Does It Take for Life Insurance Companies To Pay Out?

Most life insurance companies pay out benefits within 30 to 60 days of receiving a valid claim. Ensuring forms are filled out properly and all required supporting documents are included will help prevent delays.

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Can You Have Multiple Life Insurance Policies?

Yes. Individuals are free to layer as many life insurance policies as they wish as long as they qualify and pay their premiums.

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