Northwestern Mutual Life Insurance Review: Is It The Right Choice For Your Future?

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Northwestern Mutual was founded in 1857. As a mutual company, its policyholders own a stake in the company, which means it pays dividends to its whole life insurance policyholders. Northwestern Mutual has one of the highest payouts in the industry. 

Business Insider compared Northwestern Mutual Life Insurance against the best life insurance companies and found it to be a standout offering, with a wide array of policies and one of the highest whole life insurance dividend payouts. 

Northwestern Mutual Life Insurance Review

Northwestern Mutual offers a variety of life insurance types, including term, whole, universal, and variable life. 

Northwestern Mutual's policies are generally heftier than many of its competitors. Death benefits for its term life policies start at $500,000 and its whole life insurance policies max out at $80 million.

As a result, all Northwestern Mutual policies require medical exams for approval, so people looking for a policy with more relaxed standards or a quicker application process may want to look elsewhere. This is especially true for term life insurance, since many companies offer high death benefits and low premiums without requiring a medical exam.  

Northwestern Mutual also has one of the highest dividend distributions for its life insurance policyholders, estimating it will pay $7.1 billion in dividends in 2025. While dividends aren't necessarily guaranteed, the company has paid dividends every year since its founding in 1857.

Northwestern Mutual is best for healthy people looking for a heavy-duty permanent life insurance plan with high death benefits and long-term cash value growth. However, if you're looking for term life insurance, you're better off looking elsewhere.

Northwestern Mutual Life Insurance Pros and Cons

Northwestern Mutual Life Insurance Pros 

• High dividend payouts for whole life insurance policyholders
• Convertible term life insurance
• High maximum death benefit

Northwestern Mutual Life Insurance Cons 

• No online quotes available 
• All policies require medical exams
• High minimum death benefits
• Limited term options available

Northwestern Mutual Life Insurance Plans Available

Northwestern Mutual offers both term and permanent life insurance policies, all of which require medical exams to qualify.

Term Life Insurance

Term life insurance is a type of life insurance that lasts for a set amount of time before expiring. If policyholders die after their policy expires, their beneficiaries won't get a death benefit. Because term life does not guarantee a death benefit, it's one of the cheapest life insurance policies.

• Level term life insurance —This temporary policy allows you to select a term period of 10 years, 20 years, or until you turn 80. Northwestern Mutual's term life insurance is convertible, which means you can covert it to a permanent life insurance policy.
• Annually renewable term life insurance —This policy lasts until you cancel your policy or reach a certain age. Factors like age and health will be considered when you first purchase this policy, and premiums will increase over time.

Whole Life Insurance 

Whole life insurance is a permanent policy that pays a death benefit and offers tax-deferred cash value growth with annual dividends. Policyholders can use their cash value to cover expenses throughout their lives through loans or withdrawals. 

• Whole life insurance — Northwestern Mutual offers traditional whole life insurance for applicants up to 85 years old. Policies offer death benefits starting at $50,000, up to $80 million. Northwestern Mutual also pays dividends out to whole life policyholders, expecting to pay $7.1 billion in 2025.

Universal Life Insurance 

Universal life insurance is a type of permanent life insurance that offers guaranteed death benefits and cash value growth, but no annual dividends. The main difference between whole life insurance and universal life insurance is that universal life insurance premiums and death benefits can be adjusted throughout the policy's lifetime. 

• Universal life insurance —This permanent policy guarantees a death benefit and allows you to earn cash value. Unlike a whole life policy, your cash value will grow based on money market rates. You also have more flexibility regarding when and how much you pay in premiums. Policies are available for people 18 to 85, with death benefits starting at $500,000.
• Survivorship universal life insurance — This policy is similar to traditional universal life, but it covers two people under one policy. The death benefit is paid out when both policyholders die.
• Variable life insurance —This permanent policy gives you agency over your cash value by allowing you to choose where to invest. Northwestern Mutual offers 41 investment portfolios for policyholders to choose from.

Additional coverage options from Northwestern Mutual

Northwestern Mutual offers these additional policy options as well:

• Disability insurance — This policy protects you by replacing a portion of your income if you become too sick or injured to work.
• Long term care coverage — This policy covers the cost of assisted care when you are no longer able to care for yourself. This includes care provided by nursing homes, adult day care centers, or home aides.

Northwestern Mutual also offers a collection of riders that policyholders can add to their life insurance plans. 

• Waiver of Premium — This rider waives your premiums if you become disabled due to a sickness or accident.
• Additional Purchase Benefit — This rider allows you to buy more coverage at certain ages or when you have certain life events, like getting married or having a child, regardless of changes in your health.
• Accelerated Care Benefit — You can use some of your death benefit early to help pay for long-term care expenses, like assisted living or help with doing daily tasks.

How Much Does Northwestern Mutual Life Insurance Cost?

Northwestern Mutual does not offer quotes on its life insurance policies online. To obtain more information about plans and their costs, you'll have to speak directly to a Northwestern Mutual agent.

Northwestern Mutual's website says that a $500,000 term life policy that covers a policyholder up to age 80 would initially cost a 35-year-old female $21.90 monthly and a 35-year-old male $26.46 monthly. However, the cost of your life insurance will depend on your age, health, the amount of coverage you need, and the length of your policy.

How Do I File a Claim with Northwestern Mutual Life Insurance?

Northwestern Mutual allows customers to file claims online for life insurance, disability claims, and long-term care. If you need further assistance or can't find your paperwork, you can also call a Northwestern Mutual representative and file your claim over the phone at (800) 388-8123. 

Northwestern Mutual Life Insurance Customer Reviews and Ratings

Northwestern Mutual has overwhelmingly negative customer reviews, receiving an average of 1.27 out of five on its Better Business Bureau page and 1.8 on Yelp. These reviews pertain to Northwestern Mutual as a whole, not just its insurance products. Customers on Reddit also mentioned that cash value was not as accessible as they had hoped it would be.

The National Association of Insurance Commissioners' complaint index rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. Northwestern Mutual scored 0.07, indicating that it has far fewer complaints than expected.

Additionally, Northwestern Mutual placed 10th in JD Power's 2023 survey of 22 life insurance companies for customer satisfaction. It received a 790/1,000, which was also the overall average of the surveyed companies. For reference, State Farm placed first with an 843/1,000.

Northwestern Mutual's financial stability is strong, with an AM Best rating of A++ (Superior). While it's a legitimate insurance provider, it's important to do your own research to ensure Northwestern Mutual is the right insurance company for you.

How Does Northwestern Mutual Life Insurance Compare?

Let's see how Northwestern Mutual compares with some similar insurance companies. 

Northwestern Mutual vs. New York Life

Northwestern Mutual and New York Life Insurance are very similar. Both companies offer term, whole, universal, and variable life insurance. Both of their term life insurance policies can be converted to a permanent policy.

Both companies are also very similarly rated with third-party agencies. The NAIC complaint index gave New York Life a 0.24 compared to Northwestern Mutual's 0.07, where a lower score indicates fewer complaints than expected. JD Power's customer satisfaction survey gave New York Life a 794, compared to Northwestern Mutual's 790. 

It's worth mentioning that Northwestern Mutual's whole life insurance dividends are far greater than New York Life's, paying out an estimated $6.1 billion in 2024 compared to New York Life's $2.2 billion.

However, New York Life policies are slightly more flexible. Applicants applying for less than $150,000 qualify for expedited underwriting, which does not require a medical exam. On the other hand, Northwestern Mutual doesn't offer any no-exam life insurance policies. 

New York Life also offers more investment options for its variable life insurance: over 90 investments to choose from, compared to Northwestern Mutual's 41 options. 

Ultimately, New York Life offers a better variable universal life policy, but Northwestern Mutual offers better whole life insurance with its greater dividend distribution. New York Life offers more flexible term life insurance policies, but you're likely to find better term policies overall outside these two companies. 

Read our New York Life insurance review.

Northwestern Mutual vs. MassMutual

MassMutual Life Insurance and Northwestern Mutual both offer term, whole, universal, and variable life insurance. Like Northwestern Mutual, all MassMutual life insurance policies require medical exams.

Both companies are also very similarly rated by third-party agencies. The NAIC complaint index gave MassMutual a 0.03 compared to Northwestern Mutual's 0.07. JD Power's customer satisfaction survey gave MassMutual an 809, compared to Northwestern Mutual's 790. 

Northwestern Mutual's whole life insurance dividends are far greater than MassMutual's, paying out $6.1 billion in 2024 compared to MassMutual's $2.2 billion. However, MassMutual offers greater flexibility with its VUL, offering over 60 investment options compared to Northwestern Mutual's 41.

MassMutual also offers fairly decent term life insurance, offering terms from 10 to 30 years. Its minimum death benefit for term life is $100,000, which is more accessible than Northwestern Mutual's $500,000 minimum. 

MassMutual also offers a unique program called LifeBridge, which provides a free 10-year term life insurance policy for $50,000 to eligible individuals. The policy helps cover education costs for children if their parents pass away. Parents who are U.S. residents between 18 and 42 and making between $10,000 and $40,000 are eligible.

Ultimately, MassMutual is a better option for variable and term life insurance. However, MassMutual can't compete with Northwestern Mutual's dividend payouts for whole life insurance. 

Read our MassMutual life insurance review.

Northwestern Mutual Life Insurance FAQ

Where is Northwestern Mutual life insurance available?

Northwestern Mutual life insurance is available in all 50 states including the District of Columbia.

Does Northwestern Mutual life insurance offer no medical exam life insurance?

No, Northwestern Mutual does not offer no-medical exam life insurance. All Northwestern Mutual life insurance policies require medical exams to qualify.

How do I get a quote from Northwestern Mutual?

Northwestern Mutual doesn't have an online quoting tool, so you'll have to get in touch with a financial advisor. Complete Northwestern Mutual's questionnaire to get matched with an advisor, or you can search for a financial advisor if you're looking for someone specific.

Does Northwestern Mutual offer dividends for life insurance?

Yes, Northwestern Mutual offers dividends for life insurance. It estimates that it will pay $7.1 billion in dividends to whole life insurance policyholders in 2025.

Why You Should Trust Us: How We Reviewed Northwestern Mutual Life Insurance

The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.

Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.

We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.

We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.

Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.

Read more about how Business Insider rates life insurance.