northwestern mutual is one of the largest mutual insurance companies in the united states. Headquartered in Milwaukee, Wisconsin, Northwestern Mutual is ranked on the Fortune 500 Top 100 list of America’s largest corporations.
The company is well-respected and highly rated by ratings agencies, with a++ ratings from a.m. best and aa+ with standard and poor.
Reading: Northwestern mutual long term care insurance reviews
Northwestern Mutual’s primary insurance product is life insurance, but they offer long-term care insurance and often combine it with other products for clients with assets under management.
The firm offers wealth protection and asset income, education, retirement, investment advisory services, financial planning, trust and private client services, estate planning, and business planning.
expensive ltc option
northwestern mutual is one of the most expensive options for long-term care insurance, with substantially higher premiums than other companies comparing the same benefits. however, they do project dividend payments on their long-term care insurance policies. While this could offset some of the higher costs if they paid dividends, it would be doubtful that it would ever offset the much higher cost of the policy.
Product is sold exclusively by Northwest Mutual Life Agents.
ltc insurance key features and benefits
northwestern mutual key features and benefits:
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monthly benefits from $1500 to $12,000 per month
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benefit period of up to 6 years creates a pool of money
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12-52 week removal periods available
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inflation options include 3%, 4% and 5% compounded or a guaranteed call option
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survivorship benefit option
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discounts for spouses
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they do not offer spousal sharing benefits, a popular benefit offered by many companies.
watch out for inflation profits
Because this product is very expensive, many Northwest mutual financial advisors/brokers cite the product with a “guaranteed purchase option (gpo)” as the inflation benefit, or no inflation benefit at all.
The gpo option is problematic as the policyholder’s premium increases over time. benefits only grow if the policyholder purchases these additional benefits when those options become available.
be careful: your premium and benefits automatically increase unless you decline the option.
In some states, this gpo feature certifies the policy as an association plan; however, not accepting an increase would nullify the benefits of the partnership.
plus, not accepting these benefit increases may void future offers.
association
northwestern mutual offers partnership long-term care insurance policies in the partnership states. association policies provide additional asset protection dollar for dollar.
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what is a long-term care partnership policy?
long-term hybrid care
The company has a hybrid product, although it’s not a popular option compared to other hybrid policies from other insurance companies. Hybrid long-term care insurance combines life insurance with a qualified long-term care rider.
northwestern mutual also offers accelerated payment life insurance
to help pay for long-term health care expenses by taking advantage of the death benefit of a life insurance policy. however, this is not considered a real long-term health care solution.
complaints
If you have a Northwestern Mutual long-term care policy and are looking for help filing a claim, ltc news offers free, no-obligation assistance, including help finding quality caregivers and facilities.
Since most agents, especially financial advisors, have little to no experience in this area, this assistance can be beneficial to the entire family: filing a long-term care insurance claim.
federal regulation and consumer protection
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all long-term care insurance contracts are governed by irs regulations §7702b(b). Any insurance contract that meets the guidelines set forth by the Internal Revenue Service is considered long-term care. All insurance products that meet these federal guidelines contain consumer protections and regulated benefit triggers, as well as tax advantages.
northwestern mutual’s long-term care insurance products meet federal guidelines.
find state-specific information
Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information about care providers, and other important information: news care cost calculator ltc.
subscription
Long-term care insurance is medically underwritten and each company has underwriting rules that determine insurability and rate class. An experienced long-term care insurance specialist will understand these underwriting rules when she helps you select the best company and policy options.
what is subscription? How does current health affect the ability to obtain long-term care insurance?
northwestern’s mutual underwriting is generally considered “conservative.” however, the company offers three rate classes, standard, rate 1, and rate 2. A long-term care insurance specialist can help you determine insurability and what rate class you would likely fall into.
be sure to discuss your pre-existing health problems with a specialist, agent or adviser before applying with northwestern mutual or any company.
Looking for long-term care insurance?
When shopping for long-term care insurance coverage, keep in mind that many state and federal regulations affect long-term care insurance. products and premiums are regulated by each state’s department of insurance. Due to regulation, an insurance agent, agency or financial adviser cannot give a consumer a special discount that is not otherwise available.
Use all the tools and resources available at ltc news to assist you in your research: long-term care planning resources.
ltc insurance product comparison
Since your health is a primary consideration in determining your eligibility for coverage, it’s always best to start planning before you retire, when your health is usually at its best. an experienced long-term care insurance specialist will ask you various questions about your health to provide you with accurate quotes and professional recommendations.
There are more similarities than differences when it comes to features and benefits. however, options and benefits vary from company to company, and premiums can vary between companies by more than 100% when comparing like benefits.
Please note: Since each company has different underwriting rules, you may be eligible for coverage with one company and not another.
When comparing long-term care insurance, you should understand the differences between Northwestern Mutual and other companies. remember, due to regulations, long-term care insurance products are similar, but there are variations between companies.
Premiums and underwriting criteria vary dramatically between insurance companies. status variations may apply.
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