Northwestern Long Term Care Insurance Company
The purpose of this communication is the solicitation of insurance. Contact will be made by an insurance agent/producer or insurance company.
Northwestern Long Term Care Insurance Company (Northwestern LTC) is a wholly owned subsidiary of The Northwestern Mutual Life Insurance Company (Northwestern Mutual). As a subsidiary of Northwestern Mutual, the long-term care benefits of Northwestern LTC policies have been 100% guaranteed by Northwestern Mutual.
- Has unsurpassed industry financial strength ratings.1
- Has a history of offering new policy features to existing policyowners whenever possible and practical.2
Financial strength is and has been integral to Northwestern LTC’s vision for policyowners. The financial strength ratings provide a professional assessment of Northwestern LTC’s financial strength and represent our promise to pay claims and meet our obligations.
Rest assured in our promise to be there for you when you need us most.
Northwestern LTC strives to offer high-quality, long-term product value by utilizing careful underwriting, vigilant expense control and prudent but productive investment practices. The result is customer loyalty, which is perhaps the truest measure of customer satisfaction as well as an indication that the products were clearly explained and fully understood in the first place. Due in part to this strong customer loyalty, Northwestern LTC prices its long-term care insurance using low lapse assumptions, which anticipate that most policyowners will keep and use their policies. Low lapse assumptions contribute to better cash flow for investments and a larger base over which to spread expenses. This enables Northwestern LTC to invest in a diversified portfolio with a long-term horizon, allowing for better stability when short–term fluctuations exist in the investment market.
Northwestern LTC is committed to providing a steady, stable and lasting value.
The Right Thing
With an ever-changing long-term care insurance landscape, one of the most valuable benefits from Northwestern LTC is the commitment to doing the right thing for policyowners. One practical example of this philosophy is Northwestern LTC’s approach to “retroactivity.” As new and enhanced benefits to long-term care insurance policies become available, existing policyowners are given the opportunity to acquire them, whenever possible and practical.
The following timeline illustrates the company’s history of “retroactivity” in which the upgrades, amendments and enhancements were made available to existing policyowners at a price consistent with what was charged for newly issued policies.
1998: QuietCare® production introduction
QuietCare® was first introduced in 1998 by Northwestern Long Term Care Insurance Company (Northwestern LTC), which shares a commitment to the same mutual values as its parent company, The Northwestern Mutual Life Insurance Company. One example is the company’s approach to “retroactivity.” Northwestern LTC has a history of offering new policy features to existing policyowners whenever possible and practical.
2002: Allowed for ability to declare dividend and offered benefit upgrades
The company made all policies, including inforce policies, participating. This enhancement offered the opportunity for policyowners to receive a reduction in premium through policy dividends if the product experience proves more favorable than pricing expectations.
Also in 2002, the company:
- Increased the alternate living facility benefit to 100% of the nursing home daily limit.
- Added caregiver training.
- Made these features available to existing policyowners through a Benefit Update Program offer.
2003: Automatic Additional Purchase Benefit (APB) amendment automatically extended to existing policyowners
The benefit was enhanced by:
- Moving the last day of exercising the increasing option to the first policy anniversary from age 75, to after age 85.
- Allowing policyowners to refuse the increases twice before no longer offering increases.
- Automatically extending enhancements to existing policyowners.
2005: Additional product enhancements
The policy was enhanced by:
- Eliminating the mental disorder exclusion.
- Allowing benefits for care received in Canada.
- Increasing the Bed Reservation Benefit and Respite Care Benefit for 30 days per calendar year.
- Adding a 15% companion discount.3
2008: Additional product enhancements
The policy was enhanced by:
- Changing from “days of service” Beginning Dates to weekly Elimination periods.
- Adding a hospice care benefit.
- Formalization of Claim Assistance Services.
- Waiver of premium starting at benefit eligibility.
2009: $8.80 million dividend announced for 2010.4
- Fourth consecutive year that a dividend has been approved.
- Expected to lead the industry in total long-term care insurance dividends paid to policyowners.
2010: Introduction of a new LTC product with:
- Enhanced benefit for home care.
- Expanded premium payment options and an additional premium discount.
- An exchange program for existing policyowners.
Northwestern LTC is committed to building long-term relationships to meet policyowner needs, and building and preserving financial strength. These are important considerations when purchasing a product that may not be needed for 20, 30 or 40 years.
1The four agencies listed base ratings on the financial strength of the insurance company. These ratings are not recommendations of specific policy provisions, rates or practices of the insurance company. A.M. Best Company A++ (highest), 5/2016; Fitch Ratings AAA (highest), 11/2016; Moody’s Investors Service Aaa (highest), 1/2017; Standard & Poor’s AA+ (second highest), 6/2016. Ratings are subject to change. Rating companies are independent rating companies and not government regulated agencies.
2QuietCare®RR Series policyowners were sent a Benefit Upgrade offer in 2002. This offer included an amendment making their policies participating (eligible to receive dividends if warranted), and an offer to increase their Assisted Living Facility Maximum Daily Limit from 75% to 100% of Nursing Home Maximum Daily Limit and to include Caregiver Training Benefit. All of these enhancements were offered to policyowners at no additional charge. NLTC policyowners automatically received the Participation Amendment, but were required to sign and return the Benefit Upgrade Acceptance Form to the NLTC Administration Office in order to receive the Benefit Upgrade Amendment.
3In approved states.
4Neither the existence nor the amount of a dividend is guaranteed in any given year. Decisions with respect to the determination and allocation of divisible surplus are left to the discretion and sound business judgment of the Board of Directors. There is no guaranteed specific method or formula for the determination and allocation of divisible surplus. Northwestern Long Term Care Insurance Company’s approach is subject to change.
Long-Term Care Insurance Policy forms UU.LTC.(1014) and UU.LTC.(0916), or state equivalent. Not all policies are available in all states.
Long-Term Care Insurance Policy forms ICC14.UU.LTC.(1014) and ICC14.UU.LTC.SN.(1014).
Northwestern Long Term Care Insurance Company, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, WI.
Northwestern Long Term Care Insurance Company’s long-term care insurance policy contains exclusions and limitations. This policy is Guaranteed Renewable. This means that rates for this product may be increased in the future.
The purpose of this material is for the marketing and solicitation of insurance.
A financial representative is a licensed insurance agent/producer.
In the state of Texas, the prospective insured may contact the Health Information Counseling and Advocacy Program (HICAP), 701 W. 51st W-352, Austin, Texas, 78751, at 1-800-252-9240 to receive counseling regarding the purchase of long-term care or other health care coverage. This program is a senior insurance counseling program provided by the Area Agency on Aging under the authority of the Texas Health and Human Services Commission.