Protect the life you love.
You've worked hard to build a life you enjoy with the people you love, now it's time to protect it all. But it can be tough to know how much, or what type of life insurance you need. And life insurance can be more than a safety net. Depending on the type you get, it can be the foundation for a sound financial plan. At Northwestern Mutual, our recommendations are based on your priorities and what you can afford—so you get only the life insurance you need, and nothing you don't.
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Term life
A lot of people start off with term life insurance because it's the most affordable. It covers you for a set amount of time, and once that term ends, so does your policy.
More about term life -
Whole life
Whole life insurance covers you for your whole life,1 and comes with a cash value you can use to help with things like paying for your kids' college, upgrading your home, or living well in retirement.2
More about whole life -
Universal life
Universal Life also covers you for your whole life,1 but gives you more flexibility – letting you adjust premium payments and schedules to fit your life and budget, while still giving you benefits you can use during your life.2
More about universal life
| Term | Whole | Universal | |
|---|---|---|---|
| Financial benefits for your loved ones | |||
| Insurance protection for your entire lifetime (unless you cancel or stop paying your premiums) | |||
| Premiums that are guaranteed to never increase | * | ** | |
| Cash value that grows over time (taxes deferred) | |||
| The opportunity to earn dividends5 (payouts to policyholders) | |||
| Cash value that can be used at any time and for any reason during your lifetime | |||
| Lower premiums at the beginning of your policy | |||
| Flexibility to change the amount of life insurance protection you want (within limits) | |||
| Ability to control the amount and frequency of your payments (subject to policy minimums) |
*Level premium term policies provide a level premium for the life of the policy, however not all policies have guaranteed level premiums.
**Certain product designs combine term insurance and whole life insurance, and may be subject to premium increases.
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Term
- Financial benefits for loved ones
- Premiums that are guaranteed to never increase*
- The opportunity to earn dividends (payouts to policyholders)5
- Lower premiums at the beginning of your policy
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Whole
- Financial benefits for your loved ones
- Insurance protection for your entire lifetime (unless you cancel or stop paying your premiums)
- Premiums that are guaranteed to never increase**
- Cash value that grows over time (taxes deferred)
- The opportunity to earn dividends (payouts to policyholders)5
- Cash value that can be used at any time and for any reason during your lifetime
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Universal
- Financial benefits for your loved ones
- Insurance protection for your entire lifetime (unless you cancel or stop paying your premiums)
- Cash value that grows over time (taxes deferred)
- Cash value that can be used at any time and for any reason during your lifetime
- Flexibility to change the amount of life insurance protection you want (within limits)
- The opportunity to earn dividends (payouts to policyholders)5
- Ability to control the amount and frequency of your payments (subject to policy minimums)
*Level premium term policies provide a level premium for the life of the policy, however, not all term policies have level premiums.
**Certain product designs combine term insurance and whole life insurance, and may be subject to premium increases.
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The Northwestern Mutual difference
A++ financial strength rating
AAA, Aaa, and AA+ the highest financial strength ratings of any life insurer from all four major rating agencies3
No. 1 in client satisfaction
Best Life Insurance Company ranked by NerdWallet, 20204
$6.2B Six point two billion dollars
In dividends expected to
be paid in 20215
Related articles
1The claim to providing coverage for your whole life assumes that all premiums are paid. The amount of your payments will directly affect your policy's cash value, as well as your ability to maintain coverage in the future.
2Your policy's cash value typically becomes a useful source of funds only after several years of premium payments, which allows the cash value to build up. Each method of utilizing your policy's cash value has advantages and disadvantages and is subject to different tax consequences. Surrenders of, withdrawals from and loans against a policy will reduce the policy's cash surrender value and death benefit and may also affect any dividends paid on the policy. As a general rule, surrenders and withdrawals are taxable to the extent they exceed the cost basis of the policy, while loans are not taxable when taken. Loans taken against a life insurance policy can have adverse effects if not managed properly. Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured. Repayment of loans from policy values (other than death proceeds) can potentially trigger a significant tax liability, and there may be little or no cash surrender value remaining in the policy to pay the tax. If loans equal or exceed the cash value, the policy will terminate if additional cash payments are not made. Policyowners should consult with their tax advisors about the potential impact of any surrenders, withdrawals or loans.
3Northwestern Mutual continues to have the highest financial strength ratings awarded to any U.S. life insurer by all four of the major rating agencies: A.M. Best Company, A++ (highest), April 2020; Fitch Ratings, AAA (highest), August 2020; Moody's Investors Service, Aaa (highest), December 2020; S&P Global Ratings, AA+ (second highest), June 2020. Third-party ratings are subject to change. Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company.
4©2017–2020 and TM, NerdWallet, Inc. All Rights Reserved.
5Dividends are reviewed annually and are not guaranteed. Some policies may not receive dividends in a particular year or years even while other policies receive dividends. For universal life products, in lieu of dividends, experience is reflected through changes to nonguaranteed charges and credits.
All guarantees are based solely on the claims-paying ability of the insurer.
NM–LI (0719)