- Rated 5 stars out of 5 by NerdWallet.
- Ranked high in a J.D. Power customer satisfaction survey.
- Eligible customers can receive dividends.
Northwestern Mutual has been in the life insurance business for more than 160 years. It offers term, whole and universal life policies and scores well for financial strength and consumer complaints. The company sells policies through a network of agents.
Northwestern Mutual life insurance
Northwestern Mutual earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings from A.M. Best.
Based on these ratings, Northwestern Mutual is among NerdWallet’s Best Life Insurance Companies for 2021.
Northwestern Mutual life insurance policies
Northwestern Mutual offers term, whole and universal life insurance policies. The company’s universal life insurance option gives customers flexible payment and coverage choices. With whole life insurance, premiums stay level for the life of the policy.
Term life insurance policies can have level payments that don’t change over the length of your term or premiums that start low and increase each year. Northwestern Mutual’s term policies can be converted to whole life policies without a medical exam.
Additionally, Northwestern Mutual offers two types of universal life insurance: The “Single Premium” universal life policy can be purchased with a single lump-sum payment, and the “Custom Universal Life” policy lets the owner adjust the death benefit and the price for coverage as needs change.
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Northwestern Mutual customer complaints and satisfaction
Over three years, Northwestern Mutual has drawn significantly fewer complaints to state regulators than expected for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
Additionally, Northwestern Mutual ranked fourth out of 23 companies in J.D. Power’s 2020 U.S. Life Insurance Study for overall customer satisfaction.
More about Northwestern Mutual life insurance
As a mutual company, Northwestern Mutual is owned by its policyholders, some of whom are eligible to share in annual dividends when the company does well. The company expects to pay $6.2 billion in dividends in 2021, the highest payout in its history.
|Far fewer complaints to state regulators than expected for a company its size.||Company website doesn’t give specifics about coverage amounts, term lengths or riders.|
|Highly rated for customer satisfaction in J.D. Power study.||Very few term riders available.|
|Consistently pays a dividend to eligible customers.|
Methodology: Life insurance ratingsNerdWallet’s life insurance ratings are based on weighted averages of complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims. To calculate each insurer’s rating, we adjusted the NAIC and A.M. Best scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews.
Methodology: Insurer complaintsNerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.