Source: http://www.hoovers.com

Reviews & Ratings

nghiemr’s Full Review of Northwestern Mutual Life Insurance Company

Any one who is serious about their financial planning should consider looking at the products and services that Northwestern Mutual Life makes available. NML provides more than just life insurance; other products include disability insurance, annuities, long term care, and investment services. 

This Milwaukee-based corporation owns Robert W. Baird (a brokerage company for stocks, mutual funds, etc), the Frank Russell Company (a leader in institutional investments – your company’s retirement fund might include some Russell funds), and is in the process of acquiring a trust company to complete it’s mission of providing extensive services to its clientele. Northwestern Mutual’s services are extensive, but because this epinion is located in the life insurance section, I will focus on what Northwestern Mutual (aka “NML”) is best known for…life insurance.

As a policy owner, you want to know that in 20, 50, or however many years from now, NML will still be around when you need to access your cash values, or when your beneficiaries need to make a claim on your death. NML has been around for 143 years, is currently the 5th largest life insurance company in the U.S., with nearly $80 billion in assets, and has always received the highest ratings from the four major independent rating services: A.M. Best, Moody’s, Standard & Poor’s, and Duff and Phelps. These high ratings are based on NML’s excellent financial strength, low operating expenses, high persistency (ability to keep its policyholders for the long term), and low mortality rates (somewhat strict acceptance of risk of it’s insureds, which helps keeps claims down, and therefore, expenses down). NML has also been one of Fortune magazine’s “Most Admired” corporations for over 17 years, a distinction given to it by industry peers.

If you’re already a policyholder, your first encounter with this company was probably through a Northwestern Mutual Life agent, who you probably know personally, or was referred to by a family member, friend, or co-worker. NML does not make a practice of encouraging business through cold calls. It’s a business of building long term relationships, and what better way of doing that then to make sure that clients trust their agents enough to divulge their complete financial situation. In turn, agents are given enough information to come up with proper solutions to their clients’ needs. 

NML definitely provides its agents with continuous training opportunities to keep up with changes in the industry, and new solutions to age-old survivor income, debt coverage, or wealth accumulation needs. Maybe that’s why Sales & Marketing Management magazine’s annual survey ranks NML has having the best sales force in the life insurance industry.

Underwriting includes everything from the moment you sign the application or take the medical exam, to the moment your policy is approved. If you’re healthy, underwriting will be a breeze. If you’re not, be prepared for possible painful scrutiny of your medical history. 

Compared to other life insurance companies, NML has stricter medical requirements. Based on your age and amount of coverage applied for, another company might only ask that you complete an exam conducted by a paramed who only asks general health questions and takes blood/urine samples, but NML might require a real M.D. to complete your exam, collect blood/urine samples, AND run an EKG. 

In addition, the company will probably request your medical records from your doctor(s). The process may seem painful, but once you are an actual policyholder, you’ll truly appreciate the extra scrutiny. Scrunity means NML is trying to keep it’s risk and expenses as low as possible by insuring the best of the best. 

I hate to say it, but most of NML’s clientele is of the “upper echelon” –individuals with high net worths, high income, who hold high-level executive positions. Many top CEO’s, well-known athletes, and entertainers have policies with NML that are used for estate planning, wealth accumulation, or other business needs. They’re quality products, and you get what you pay for in service, but unfortunately – NML insurance is probably not the most affordable life insurance for the average person. 

Two of NML’s most popular policies include Variable CompLife and Term 75. Variable Comp Life is a permanent whole life policy in which additional premiums (beyond the cost of the death benefit itself) are invested into various Northwestern Mutual Series Funds or Russell Insurance Funds. This product is often used to supplement retirement planning, education planning, or to fund a trust. Term 75 (formerly Term 70) is one of NML’s most widely held term products. It provides coverage until age 75, and can be converted to a permanent insurance policy at any time until age 60 without further underwriting. 

These are just two examples of the approximately 17 types of life insurance plans that NML has to offer. Also, on April 3rd, NML introduced it’s new RS series of term insurance, making rates on various term products less expensive. On a side note, NML insurance products are sold exclusively through NML agents, meaning NML agents can sell NML products and other companies’ products, but no agents from other companies can ever sell NML products. 

It’s no question that Northwestern Mutual Life is a reputable company, with the financial security to come through for its insureds when their life insurance needs arise. It is probably one of the last of the better “mutual” companies (owned by policyholders, who receive NML’s very competitive 8.8% dividend), as more and more life insurance companies move towards stockholder ownership. If you can afford it, don’t hesitate to look into Northwestern Mutual Life for your financial planning needs. Nevertheless, you can’t afford to NOT do any planning at all.

doglover’s Full Review of Northwestern Mutual Life Insurance Company

Northwestern Mutual Life has been ranked as Fortune Magazine’s “Most Admired Insurance Company” for 15 years in a row (statistics from year ending 1998 since I do not have their 1999 annual report yet). They are at the top of all major ratings services, and their sales force is rated by Sales & Marketing Managementmagazine as the”Best Life Insurance Sales Force”. They must be good because they sold me a life insurance policy when I had just graduated from college at 24. I had no children, not married, so why was I buying a life insurance policy?

Mission Statement of Northwestern created in 1888:

The ambition of The Northwestern has been less to be large than to be safe, its aim is to rank first in benefits to policyowners rather than first in size. Valuing quality above quantity has made The Northwestern pre-eminently the Policyowner’s Company… 

1.) I have already listed their stellar reputation above. They also believe in quality over quantity, as stated in their mission statement, which I also strongly believe in.

2.) They are a mutual company which means you are a stockholder in the company, with full voting rights on the board of directors, and the best part, dividends distributes every year. 

3.) They promised that if I bought a whole life policy with them, that my cash value increases would be higher than what I paid in to it. I am here to tell you that over the years they have exceeded the projected estimates where my yearly dividend is twice my yearly expense. The dividends are used to increase the cash value and coverage so that has risen very nicely as well. 

4.) I can borrow on my accumulated cash value at a low interest rate. The cash value is the amount which the insurance company will pay in cash if the owner voluntarily terminates a life insurance policy. This already has accumulated to more than I have paid into it.

5.) The insurance amount is deducted automatically monthly from my bank account so it is hardly noticeable.

6.) There is a waiver of premium benefit that continues in force without payment of premiums in the event that the insured is disabled.

7.) I had the option to buy term insurance but since I did not have children I did not see the reason to throw away money on a policy that only paid up if I died.

I know you all are expecting me to say something wrong with this company but I honestly cannot come up with anything. I have always admired them and they practice what they preach, “The Quiet Company”, send me earnings statements at the end of the year, ask me to vote for board of directors once a year, and do not bother me for the rest of the year. That’s a company that I stay with.
hwz1’s Full Review of Northwestern Mutual Life Insurance Company 

Yeah, yeah, more boring insurance reviews. However, I would urge you to read this one since I am involved in the industry, do not work for Northwestern, but would consider them the best in the industry. Here is why: First of all, they truly are the quiet company. Many insurance companies will secure you as a client and subsequently try to sell you numerous other products. Let’s say you buy a life insurance policy from another company. I can fell fairly confident in saying that you will shortly thereafter receive a call to discuss Long Term Care or Disability Insurance. Not with Northwestern. They are truly a quiet company when it comes to soliciting business. Now, this may not be the best thing for the company’s bottom line (Although, financially they are in great shape), but for the client’s piece of mind it does wonders.   
Secondly, the agents are smart. Yes, agents at other companies may also be intelligent, but I was impressed by how they got me as a client when I was way too young to know a thing about life insurance. Essentially, what they did was show my parent’s (Who also had a policy with the company) how beneficial it would for me to have a policy shortly after I was born. The benefit? Simple, I pay $23 a year for my coverage. The agents will never make a killing this way, but they will make long term clients and they will also do fairly well if they continue to get the children of existing clients.

Thirdly, the company does not believe in nepotism. Yeah, I know, what does that have to do with insurance? Well, in our local office the manager recently retired and everyone who did not know the company thought that his son would take over- you are essentially an independent contractor and, hence, can hire along the lines that play out within your office. However, people did not realize that the son had transferred to another office months previously. He transfered because he wants the top job at an office, but he knew the nepotism policy and, therefore, knew he would never get the job in Lancaster. I feel this is important from the standpoint of getting new blood in the position and removing any bad blood from the position (Not an issue with the local office). Additionally, you can find new ideas when new management comes aboard. 

Fourthly, the company has excellent products. In another few years my policy will be paid off. Additionally, the cash value has been invested smartly and has grown considerably over the years. Just like with my other insurance epinions, I would suggest a variable universal product or term insurance. Variable life insurance will provide growth and is an excellent policy for a youngster. Term insurance, on the other hand, does not provide cash value and ends after a fixed period. However, term has a lot of uses the most important of which might be the need for additional insurance while raising a family. What I mean is you may need extra coverage during this period since the bills will be greater and a loss of a parent who is working could/would be devastating. Hence, the need to take out a term policy that ends after a certain period. The key is that the policy ends after a certain period and is much cheaper than any other type of life insurance. 

In addition to the excellent products, the agents are intelligent. I have had a number of questions and have always received answers promptly. Trust me when I say that the business can be confusing and difficult and that getting a correct and quick answer is very beneficial. Yes, the agents for Northwestern have an excellent idea of what they are talking about and I cannot say that about every agent who is in the business. 

In summary, I would recommend Northwestern to anyone who is looking to purchase life insurance. The agents are intelligent, the product is excellent, and the company can be counted on to come through when you need them to. I am a financial advisor (Yes, I do sell Insurance, but not for Northwestern) and can say with confidence that Northwestern is the class of the Insurance field. Give them a shot and you will not be disappointed.Source: http://www.epinions.com

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