Northwestern Mutual life insurance review and ratings 2024

Northwestern Mutual comes in fourth place in Insure.com’s Best Life Insurance Companies rankings, receiving 4.5 out of a possible 5 stars. All of the insurer’s customers surveyed plan to renew their policies.

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Our take

Northwestern Mutual ranks fourth in Insure.com’s Best Life Insurance Companies rankings and received a 4.50 star rating out of five. 

All of the Northwestern Mutual customers surveyed plan to renew their policies. Additionally, the insurer received a top score of A++ from third-party rating agency AM Best. In addition, the National Association of Insurance Commissioners has recorded a low number of complaints about the company. In fact, Northwestern Mutual, along with Pacific Life, had the best NAIC scores of the companies we ranked. 

Best whole life insurance ranking: In a separate Insure.com ranking of companies offering whole life insurance, Northwestern Mutual was the top company. Northwestern Mutual received 3.95 out of a possible 5 stars (which we rounded to 4 stars in our whole life ranking). The National Association of Insurance Commissioners has recorded a low number of complaints about the company. The insurer also received the highest score of the insurers we ranked for pricing stability and a 5-star rating for financial strength.

Below is Insure.com’s review of the full company and its line of life insurance products. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.

Northwestern Mutual
Northwestern Mutual Ratings
Overall Rating: 4.5
Ease of service: 3.9
NAIC: 0.03
Customer Satisfaction: 3.9
AM Best Rating: A++

Pros and Cons

Pros:
  • All customers surveyed plan to renew
  • Strong AM Best score
Cons:
  • Rates for term policies are higher than the industry average
  • Didn’t score highly for ease of service

How Northwestern Mutual scores on customer satisfaction

Several competitors scored better than Northwestern Mutual for customer satisfaction – with Pacific Life leading the category. In a separate study by J.D. Power, Northwestern Mutual came in with an average satisfaction score of 790. State Farm received the highest J.D. Power score of the insurers it ranked.

Insurance companyPercent of customers that are satisfiedJ.D. Power overall satisfaction score (out of 1,000)
Northwestern Mutual71%790
MassMutual76%809
State Farm78%843
life-insurance

QuickTake

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How much does Northwestern Mutual cost?

Northwestern Mutual’s premiums are higher than most other insurers surveyed by Insure.com. However, two companies do have higher rates – Farmers and AAA. Northwestern’s rates for 35-year-old non-smokers purchasing $500,000 in coverage for a 20-year term are $439. Meanwhile, the industry average premium is $358.

Insurance companyAverage annual premiums
Northwestern Mutual$439
New York Life$357
AAA$440

How Northwestern Mutual scores on ease of service

Policyholders don’t want a hassle when dealing with their insurance company, so ease of service is key. Seven out of 10 customers give Northwestern Mutual high marks for ease of service. Pacific Life led this category.

Insurance companyPercent of customers that are satisfied with ease of service
Northwestern Mutual68%
State Farm72%
Pacific Life86%

How Northwestern Mutual scores on policy offerings

Many policyholders expect a wide range of policy offerings from their insurance company. 

The percentage of those satisfied with Northwestern Mutual’s policy offerings is 79%, which puts it in the upper half of the companies we looked at Allstate led in this category.

Insurance companyPercent of customers satisfied with the company’s policy offerings
Northwestern Mutual79%
Mutual of Omaha80%
Allstate85%

How trustworthy is Northwestern Mutual?

Trust is essential to a good relationship between an insurer and its policyholders. Northwestern Mutual earns a 71% mark for being trustworthy. That put it in the top 10 for trust, but some other insurers received higher grades in this area. Eighty-four percent of Penn Mutual’s customers rated it highly for trustworthiness – the company led the category.

Insurance companyPercent of customers who find the company trustworthy
Northwestern Mutual71%
Mutual of Omaha80%
State Farm83%

Do Northwestern Mutual customers plan to renew?

Customer loyalty keeps policyholders with their insurance company. In all, 100% of customers plan to stick with Northwestern Mutual. Northwestern tied with Gerber Life, Lincoln Financial, and State Farm at the top of this category.

Insurance companyPercent of survey respondents who find the company best for renewing a policy
Northwestern Mutual100%
Prudential97%
Mutual of Omaha93%

Northwestern Mutual life product details

Other services offered

  • Disability insurance
  • Long-term care insurance
  • Investment services
  • Annuities

States where Northwestern Mutual offers coverage

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States where Northwestern Mutual offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
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Company background

Northwestern Mutual

Ranked highly on the Fortune 500 list, Northwestern Mutual provides financial services and is a mutual company. While the company offers life insurance services, it also provides estate planning, retirement and investment products.

Northwestern Mutual has been around for more than 160 years. Today, it is headquartered in Milwaukee. The company has paid dividends every year since 1872.

The company is also known for its network of more than 6,400 financial advisors and professionals throughout the country, who help clients with insurance protection, investments, and business and estate planning.

Resources & Methodology

Sources:

Northwestern Mutual. “Invest in your best life.” Accessed January 2024.

Northwestern Mutual. “Protection for today, and every day after.” Accessed January 2024.

Northwestern Mutual. “When people feel good about their money, good things happen.” Accessed January 2024.

J.D. Power. “Individual Life Insurance Study.” Accessed January 2024.

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 people with auto, home, life and health insurance (1003 with life insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best Life Insurance Companies ranking. Insure.com needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses. 

Respondents were first asked to grade their insurer in the following categories – customer satisfaction, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

In addition, the editors also created star rankings for each company. Respondents were asked to pick their insurer’s top three attributes out of the more than the dozen presented – again including categories such as customer satisfaction and policy offerings. The number of responses for each of those attributes was totaled and then divided by the number of each company’s customers who responded to that survey question to create the star ranking. 

Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.

They also were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The editors identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in our calculations. If more than one underwriting company was identified for a line, we used a weighted average of the NAIC complaint index scores.

The team also gathered AM Best data, which measures financial strength.

They also collected insurance rate data from Quadrant Information Services (for auto and home insurance), Compulife (for life insurance) and the public health marketplace (for health insurance).

With the help of Prof. David Marlett, Ph.D., managing director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For life insurers, we used the following weights to calculate the overall score for each company: 

  • AM Best: 25% of total score
  • NAIC: 15% of total score
  • Survey: 60% of total score (10% customer satisfaction, 10% recommended, 10% renewal rate, 10% ease of service, 10% trustworthiness and 10% policy offerings)

To find the industry average annual premium, insure.com weighed the rates from 9 companies: AAA, Farmers, Guardian Life, John Hancock, Lincoln Financial, MassMutual, New York Life, Northwestern Mutual and Transamerica. Rates are based on premiums for 35-year-old males and females who are non-smokers and in good health. Rates are for a 20-year-term policy that provides $500,000 in coverage. 

No insurer in our ranking received less than half a star and the highest possible ranking is 5 stars.

On company review pages, the editors compared the profiled insurers in various categories against the leaders in that category or against other top insurers that match up well against the profiled company in terms of size and/or coverage area.

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Nupur Gambhir
Managing Editor

 
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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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