Northwestern Mutual is one of the largest mutual insurance companies in the United States. Their top product is life insurance; however, they also offer comprehensive Long-Term Care Insurance products, often bundled with other products for clients with assets under management.

Northwestern Mutual was founded in 1857, and has over 167 years of experience providing quality products. They are currently headquartered in Milwaukee, Wisconsin.

In addition to insurance products, Northwestern Mutual also offers wealth, asset, and income protection, education, investment advisory services, financial planning, retirement planning, estate planning, business planning, and trust and private client services.

The company is highly rated and well-respected in the industry. Northwestern Mutual ranks 110 on the Fortune 500 list. In addition, they also have some of the highest ratings from multiple agencies:

• A++ from A.M. Best Company, Inc.
• Aaa from Moody's Investors Service
• AA+ from S&P Global
• AAA from Fitch Ratings

Long-Term Care Insurance with Northwestern Mutual

In LTC News's annual Long-Term Care Insurance review, Northwestern Mutual was ranked as a "neutral" Long-Term Care Insurance provider.

They received this ranking because while they offer comprehensive policies, these policies are often far more expensive than other similar products on the market today.

Northwestern Mutual offers two types of Long-Term Care Insurance:

• Standalone traditional Long-Term Care Insurance. These policies only provide coverage for long-term care needs, are often partnership program eligible, and are far more affordable than hybrid or combination products. 
• Hybrid Long-Term Care Insurance. These policies combine life insurance and Long-Term Care Insurance into one policy. Hybrid policies are more expensive than traditional LTC Insurance and may be paid upfront or in larger payments. 

Key Features & Benefits 

Northwestern Mutual is not currently the best choice for LTC Insurance because of their high prices; however, the company still offers plenty of benefits within their policies, including: 

• Monthly benefits from $1500 to $12,000 a month.
• Partnership policies. Northwestern Mutual’s standalone Long-Term Care Insurance is eligible for the partnership program. This program provides dollar-for-dollar asset protection and ensures if the policyholder ever used all their benefits and needed to cover care costs with Medicaid, their income and assets would be protected, as well as shielded from Medicaid estate recovery. 
• Pool of money benefit period of up to six years
• Elimination periods are available from 12 weeks to 52 weeks.
• Inflation options include 3%, 4%, and 5% compounded inflation or a guaranteed purchase option.
• Survivorship benefits are for spouses. If one spouse passes away, the other no longer has to pay a premium.
• Spousal discounts. Couples may receive discounts because couples are generally less risky to insure than single individuals.
• Dividends. There is a promise of dividends; however, these amounts aren't always guaranteed. 

Drawbacks to Coverage with Northwestern Mutual

The biggest drawback to coverage with Northwestern Mutual is their prices. These LTC Insurance policies are often far more expensive than competitors offering similar coverage. 

Because of these expenses, most agents and financial advisors who help select benefits and create policies opt for a Guaranteed Purchase Option (GPO) instead of traditional inflation benefits. 

Traditional inflation benefits increase the overall benefit amount by a specific percentage each year. The cost of these benefits is factored into the premium that is decided upon before starting the policy. 

Having a policy with inflation benefits can also help you qualify for a partnership policy. A partnership policy offers additional asset and income protection in the event you ever use all the benefits within your policy.

Guaranteed future purchase options do not increase the value of the policy with yearly inflation benefits. Instead, it gives policyholders the option to buy more overall benefits each year. 

The difference here is that those new benefits are priced based on the individual’s current situation. So increases in age and decline in health result in higher prices for additional benefits. 

The guaranteed purchase option essentially allows for premiums to increase if the policyholder needs or wants additional benefits. 

Another notable drawback is that Northwestern Mutual does not offer shared care spousal benefits. Spousal benefits allow couples to purchase “shared” LTC Insurance policies. 

Usually, each spouse has an individual policy, and if that policy runs out of money, there is a third pool of money shared amongst the couple that either spouse can use to cover care costs after the initial policy runs out. 

This is a common benefit with other insurance companies; however, shared spousal benefits are not available through Northwestern Mutual.

Dividends

Northwestern Mutual also offers and advertises dividend options as a way to “make up the cost of the policy.” While policyholders may get dividends, the specific dividend amount is not set in stone. 

In addition, despite advertisements, it’s unlikely that these dividends will compensate for Northwestern Mutual’s expensive LTC Insurance policies.

How Hard Is It to Qualify for a Policy with Northwestern Mutual?

Your ability to qualify for a new policy with Northwestern Mutual depends on three main factors:

• Need for long-term care: Anyone who needs long-term care will not be approved to start a new LTC Insurance policy.
• Pre-existing conditions: Having certain pre-existing conditions can impact your ability to qualify and the rate you may qualify for. Not all pre-existing conditions have the same impact, and individuals with well-managed conditions may qualify for better rates.
• Age: Older adults above the age of 79 are not considered for new insurance policies. Older adults in their 70s may also have trouble qualifying due to underwriting standards. This is because health generally declines with age, possibly resulting in higher premiums or uninsurability due to health decline. 

Long-Term Care Insurance companies use a practice called underwriting to determine the risk of insuring each applicant. Applicants who are determined to be at too high risk will be denied. Approved applicants are sorted into rate classes based on estimated risk.

Northwestern Mutual is considered to have "conservative" underwriting and offers three rate classes: standard, rate 1, and rate 2.

A Long-Term Care Insurance Specialist can assist you in applying for a policy. They'll look at your health, family history, budget, and preferences and find a company that can give you the best benefits at the best price. 

Filing a Claim with Northwestern Mutual

If you already have a policy with Northwestern Mutual, LTC News can help you file a claim. Searching for care providers and trying to get coverage from your insurance company simultaneously can be frustrating.

This is why LTC News has partnered with Amada Senior Care to provide cost-free and obligation-free help with Long-Term Care Insurance claims, regardless of the insurer.

Amada Senior Care is a leading in-home care agency with locations and connections across the United States. Their team of experts can help you process a claim and find high-quality care near you. 

Is Long-Term Care Insurance with Northwestern Mutual Safe?

Northwestern Mutual is a highly-regarded and safe provider of Long-Term Care Insurance. While the company as a whole has been involved in some lawsuits, none of the cases pertain to long-term care. 

All Long-Term Care Insurance policies in the U.S. are regulated under IRS regulation Section 7702(b), ensuring each policy meets strict requirements: 

• Regulated benefit triggers.
• Tax advantages.
• Protection against excessive premium increase.
• Clear coverage expectations.

Northwestern Mutual’s Long-Term Care Insurance products meet federal guidelines. 

Shopping for Long-Term Care Insurance: What Are Your Best Options for Coverage?

The best option for Long-Term Care Insurance depends on your needs and preferences for long-term care. The best company for you will be the one that can provide your desired benefits at the most affordable price.

Northwestern Mutual is a top-rated mutual insurance company. They offer comprehensive Long-Term Care Insurance policies. However, the drawback to coverage with Northwestern Mutual is the enormous cost.

If you currently have a policy with Northwestern Mutual and need help filing a claim, LTC News' partnership with Amada Senior Care can help. Amada Senior Care is a leading home health agency offering free, no-obligation assistance with LTC Insurance claims and help finding high-quality care providers.

LTC News also has a few more tools that can help you in your long-term care journey. These include our Cost of Care Calculator, which allows you to see the current and predicted median cost of care in cities around the country.

In addition, LTC News also has a Care Directory tool containing thousands of long-term care providers, so you can find the best one for your needs close to home. 

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