Pros Explained

• Excellent customer satisfaction: Northwestern Mutual consistently performs strongly in nationwide customer satisfaction studies and received the third-fewest number of consumer complaints (based on size) of the 91 life insurance companies we reviewed. 
• Policies eligible for dividends: Northwestern Mutual rewards its policyholders, even its term policyholders, with dividend payments, and has done so for over 150 years. The dividend for 2023 is projected to be the company’s largest yet at $6.8 billion.
• No medical exam coverage available: Typically, when you get life insurance, you have to undergo a paramedical examination as part of the underwriting process. Northwestern Mutual has an accelerated underwriting program available for some policies without a medical exam. Just be sure to compare quotes for no-med-exam life insurance to quotes for life insurance with a medical exam—the latter policy type can be more affordable in some circumstances.
• Top-tier financial stability: Fewer than 10% of the 91 life insurance companies we reviewed received an A++ for financial strength from AM Best. Northwestern is among them. Financial strength correlates directly with how likely a company is to be able to pay its life insurance claims.

Cons Explained

• Can’t buy without an agent: Many life insurers provide the option to purchase term coverage online without an agent, but Northwestern Mutual does not. You’ll need to connect with one to buy any type of coverage.
• Online capabilities are lacking: Northwestern Mutual doesn’t offer online quotes or provide much in the way of policy information on its website. For either, you’ll have to reach out to an agent.

Complaint Index

To get an idea of how happy a life insurance company’s customers are, consider how many customer complaints the company receives.  Of the 91 life insurance companies we reviewed, Northwestern Mutual received the third-fewest number of complaints, according to the National Association of Insurance Commissioners (NAIC).

The NAIC records consumer complaints against insurance companies and uses that data to develop a complaint index. The complaint index is a way to quickly read how many complaints the company received and to compare it to other life insurance companies. If a company’s complaint index is 1.0, it received the expected number of complaints based on its size. Less than 1.0 means the company received fewer complaints than expected; greater than 1.0 means it got more than expected. Northwestern Mutual’s complaint index is exceptionally low. Averaged over the three years between 2020 and 2022, the company’s complaint index is under 0.04. 

Third-Party Ratings

Northwestern Mutual also measures up well in two other rating systems from third-party organizations. We looked to AM Best for insight into a company’s financial strength and to J.D. Power to see how companies fared with customers. 

AM Best is a credit rating agency that evaluates the financial strength of life insurance companies and ranks them on a scale of A++ to D. Northwestern Mutual is rated A++, which indicates a superior ability to honor its ongoing insurance obligations, including paying its claims. Only eight other companies of the 91 we reviewed received an A++ rating.

J.D. Power measures the experience of customers of the largest life insurance carriers in the United States. In their 2022 U.S. Individual Life Insurance Study, J.D. Power ranked Northwestern Mutual fourth out of 22 companies. Northwestern Mutual's score was significantly higher than the average.

Competition

It’s helpful to compare life insurance companies based on key factors like financial strength, customer satisfaction, and policy types available. Below we’ve compared Northwestern Mutual to two of its largest competitors.

	Northwestern Mutual	New York Life	MassMutual
Types of Coverage	Term, whole, universal, variable universal	Term, whole, universal, variable universal	Term, whole, universal, variable universal
Dividends for 2023	$6.8 billion	$2.0 billion	1.9 billion
Online Application	No	No	Yes
AM Best Rating	A++	A++	A++
Price for Term Policies	Information not available	Information not available	Better than average
NAIC Complaint Index (averaged over 2020 - 2022)	0.036	0.18	0.05
J.D. Power Ranking 2022	4 out of 22	10 out of 22	9 out of 22

Policies Available

Term Life Insurance

Term life insurance lasts for a certain number of years, usually up to 30, during which you often pay a level premium (meaning it stays the same year after year). If you want to continue coverage after the level premium period, you may be able to renew it at a higher rate. Some term policies don’t have a level premium period and the premium increases each year you renew coverage. 

Since term policies aren’t designed to be permanent, they tend to be more affordable than permanent coverage like universal or whole life insurance. Northwestern Mutual offers both level premium term and annually renewable term life insurance policies. 

• Level Term 10: Provides coverage for up to 20 years. The premium is level for the first 10 years. If you choose to continue coverage for another 10 years, the premiums will increase.
• Level Term 20: Premiums are level and coverage lasts for 20 years.
• Term 10: This coverage lasts for up to 10 years, premiums increase each year you renew.
• Term 80: With this policy, you can continue to renew coverage until you’re 80 years old, but premiums will increase annually.

You can convert some or all of your term policy with Northwestern Mutual into a whole life policy without going through medical underwriting.

Whole Life Insurance

Unlike term, whole life insurance provides lifelong protection. It incorporates a cash value account that grows as the policy ages, and you may be able to withdraw or borrow from the account if desired. Whole life insurance is more expensive than term and may also be more expensive than universal life insurance, which we discuss below. As long as premiums are paid, the coverage is guaranteed. 

If you are interested in whole life insurance and would like more details, you can speak with an agent.

Universal Life

Universal life (UL) insurance is also permanent life insurance but with more flexibility than whole life. You can adjust the frequency or duration of premium payments and may be able to adjust the death benefit as well. But if you draw down the cash value too much, you could cause the policy to lapse. And since universal life policies grow based on current interest rates, it’s possible the cash value might not grow as expected and you may have to increase premiums in the policy’s later years to avoid a lapse.

Northwestern Mutual also offers single premium and survivorship UL policies.

Variable Universal Life Insurance

Variable universal life (VUL) insurance is a permanent life insurance policy with an investing component. It’s considered the riskiest life insurance product because the cash value is directly invested in the stock market and can lose value. Plus, policy fees tend to be higher with this type of coverage. In other words, if policy investments lose value or don’t perform well enough, you may have to increase the premium to keep the policy from lapsing.

Available Riders

Riders increase or extend the coverage of your life insurance policy. Some riders, called living benefits or accelerated benefit riders, let you access part of the death benefit early, before death. Some of Northwestern Mutual’s riders are below. Most cost extra and need to be selected when the policy is issued.

• Additional Purchase Benefit: This is a guaranteed insurability rider that lets you increase your coverage at future dates without having to reapply or prove that you’re still insurable.
• Waiver of premium: If you become disabled, the company will waive your premiums for as long as you’re disabled.
• Early payment benefit: Though not a rider, per se, whole life and some term policyholders may be eligible to apply to receive a portion of the death benefit early in the event of a terminal illness (when death is expected within six months).
• Accelerated death benefit: The insured can receive part of the death benefit while still living, if they are diagnosed with certain conditions requiring long-term care.

Customer Service

You can call Northwestern Mutual’s customer service number at (866) 950-4644 between 7 a.m. and 6 p.m. Central Time from Monday through Friday. The company does not offer online chat or an online form for non-existing customers to request an email response.

Final Verdict

Without question, Northwestern Mutual is a standout company. Northwestern Mutual has a high ranking by J.D. Power and an extremely low number of complaints. Its stellar financial strength rating and long company history mean it’s likely to weather financial storms in the future just as it did in the past. However, Northwestern Mutual is trailing its peers regarding online features like quotes, applications, and policy-specific information. If you’re looking for dividends, it may be worth your while to pick up the phone to apply for a Northwestern Mutual policy, as they pay substantial dividends, and most dividend-eligible policies from any insurer cannot be purchased online anyway.

Frequently Asked Questions

Does Northwestern Mutual Pay Out?

Yes. Northwestern Mutual has an excellent reputation and financial standing. It should pay out its policies in a timely manner, assuming all the connected paperwork is in order and no outstanding payments on the premiums.

Can You Cash Out a Life Insurance From Northwestern Mutual?

Whole and universal life insurance are two forms of permanent life insurance offered by Northwestern Mutual. You can borrow or take out the cash value of a permanent life insurance policy, but your death benefit portion of an insurance policy cannot be touched until your death. Depending on how much you withdraw you may owe taxes. Interest your cash value earns is also taxable.

Can You Cancel Your Life Insurance from Northwestern Mutual?

Yes, you can cancel your life insurance policy at any time. If you cancel a whole or universal life insurance policy with a cash value attached, the funds will be returned to you. A surrender charge may be deducted from the sum you receive. Any gains made on your cash value may be considered taxable income.

Methodology

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.

In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. Metrics were grouped by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.