Northwestern Mutual Disability Insurance Policy Review
Too often, one of your most important assets may be the one you give the least amount of thought to—your income. How would you manage living day-to-day and handling all your expenses without the promise of a steady income? A disability in the form of a severe accident, injury or illness can happen at any time.
Disability income insurance helps protect the financial security of you and your family against life’s most unexpected events. Even if you already have an income protection plan through your employer, an individual income protection plan can fill in gaps and leave you with more complete coverage and peace of mind. Northwestern Mutual offers its customers a disability income protection policy with a wide variety of policy options.
Founded in 1857, Northwestern Mutual Life Insurance Company is one of the oldest insurance companies in the United States. It is the largest direct writer of life insurance in the U.S. and as a mutual company, pays out dividends to its policy holders. Northwestern Mutual is the marketing name for Northwestern Mutual Life Insurance Company and all of its subsidiary companies. Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) is the writer of all disability insurance. The company headquarters is in Milwaukee, Wisconsin and these insurance rating organizations give Northwestern Mutual excellent financial strength ratings:
According to the National Association of Insurance Commissioners (NAIC) Life/Fraternal Market Share report which ranked companies by countrywide premium, Northwestern Mutual ranks as the 2nd largest U.S. life insurer with $10,550,806,418 in direct premiums for a 6.33 percent share of the U.S. life insurance market.
Northwestern Mutual offers its insurance products including life insurance, disability insurance, long-term care insurance employee benefit services, mutual funds and annuities through more than 330 local offices across the United States.
Northwestern Mutual Disability Plans for Individuals
Northwestern Mutual offers several different types of disability insurance plans to meet your individual and unique income protection needs including four alternative definitions of total disability and a partial disability coverage option if you are only able to work part-time.
Policy Premium Payment Options
- Non-Cancelable Guaranteed Renewable: For a higher premium, you can get guaranteed renewable coverage with a fixed policy premium and benefit options.
- Guaranteed Renewable: Your policy cost will be lower. Although your benefits cannot change with this option, premium amounts can change by class.
- Level: With a level option, your premium will remain level while the policy is in force.
- Annually Renewable Disability Income (ARDI): With this option, you will start out with lower than level premiums that will gradually increase. You have the option to upgrade this to the Level Premium Coverage option.
- Level/ARDI: This is a combination of the Level and Annually Renewable Disability Income plans.
- Additional Purchase Benefit: The additional purchase benefit will allow you to purchase additional disability insurance as long as the coverage meets Northwestern Mutual’ s underwriting guidelines.
- Future Increase Benefit: Provides inflation protection of 6% which is compounded annually.
- Indexed Income Benefit: If you’ve been disabled for twelve months, you have inflation protection of up to 6% compounded annually.
- Social Insurance Substitute Benefit: An optional benefit option to supplement social security disability benefits.
Other Available Products and Services
In addition to disability insurance, Northwestern mutual also provides financial services including retirement planning, life insurance, annuities, investment services, college savings plans, estate planning and business services.
Life and money articles and provided as a resource to consumers and cover a range of subjects including family, home, career and money basics. Financial and investment advisors are available to counsel with customers and help them find the products they need.
Pros & Cons
Northwestern Mutual Life Insurance Company has very strong financial strength ratings from all the major insurance ratings organizations as well as an excellent record in customer service. These are all things to look for when choosing an insurance company. The disability income insurance policy has many customizable policy options to fit your unique needs and life situation.
There is no ability to receive a quote online so you must contact a company representative for a quote or to purchase coverage.
You can visit the Northwestern Mutual Life Insurance Company website to learn more about purchasing a disability income insurance policy or the company’s other insurance products. You can also call 414-271-1444, 7:00 a.m. to 6:00 p.m. Central Standard Time, Monday through Friday (excluding holidays).
Naic.org. (2019). National Association of Insurance Commissioners Life and Fraternal Insurance Industry 2018 Top 25 Groups and Companies by Countrywide Premium. [online] Available at: https://www.naic.org/documents/web_market_share_190304_2018_life_lob.pdf [Accessed 29 Sep. 2019].