Northwestern's Life Insurance: Principal Provider?

Northwestern Mutual and Principal Financial Group are two prominent insurance companies that offer life insurance policies. Northwestern Mutual has been in the industry for over 160 years, providing individuals and families with financial security and a range of insurance products. On the other hand, Principal Financial Group, founded in 1879, offers a wide range of financial products and services, including life insurance, retirement planning, and investment solutions. This article will compare and contrast the life insurance offerings of these two companies to help individuals make informed decisions about their financial future.

Northwestern Mutual vs. Principal Financial Group: Understanding the Difference

Life insurance is a crucial financial tool that provides financial protection and peace of mind for individuals and their families. With numerous insurance providers in the market, it can be challenging to decide which company best suits your needs. Northwestern Mutual and Principal Financial Group are two prominent insurance companies with distinct offerings and approaches. Understanding their differences will help you make an informed decision.

An Overview of Northwestern Mutual

Northwestern Mutual is one of the oldest and most respected life insurance companies, with a history dating back over 160 years. The company was founded in 1857 by John C. Johnston and Samuel Daggett, driven by a vision to provide financial security and guidance to individuals and families. Over the years, Northwestern Mutual has diversified its product offerings to include disability income insurance, long-term care insurance, and investment services, establishing itself as a comprehensive financial services provider.

Northwestern Mutual's strong financial foundation has been a key factor in its success. The company maintains high levels of capital and reserves, ensuring reliable coverage for its policyholders. This financial strength has been recognised by leading credit rating agencies, consistently earning top ratings. Northwestern Mutual's commitment to its policyholders is further reflected in its focus on customer satisfaction and long-term relationships.

Life Insurance Products Offered by Northwestern Mutual

Northwestern Mutual offers a comprehensive range of life insurance products, including term life insurance, whole life insurance, and universal life insurance. Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years, making it ideal for individuals seeking financial protection during their working years or while they have outstanding debts. Whole life insurance offers lifelong coverage and builds cash value over time, serving as an investment vehicle. Universal life insurance combines the flexibility of term insurance with the cash value accumulation of whole life insurance, allowing policyholders to adjust their coverage and premium payments.

An Overview of Principal Financial Group

Principal Financial Group is a well-established insurance company offering a wide range of financial products and services, including life insurance, retirement planning, and investment solutions. Founded in 1879, the company has built a reputation for its expertise in retirement planning and asset management. Principal Financial Group provides individuals, businesses, and institutions with comprehensive financial planning options.

Life Insurance Products Offered by Principal Financial Group

Principal Financial Group offers a diverse portfolio of life insurance products, including term life insurance, universal life insurance, indexed universal life insurance, and survivorship life insurance. These policies provide flexibility and customisation options to meet the evolving needs of individuals and families. Term life insurance from Principal Financial Group offers coverage for a set period, typically ranging from 10 to 30 years, making it a cost-effective solution for temporary financial security. Indexed universal life insurance allows policyholders to accumulate cash value based on the performance of a selected stock market index. Survivorship life insurance covers two individuals, typically spouses, and pays out the death benefit after both insured parties have passed away, making it a valuable tool for estate planning.

Comparing Northwestern Mutual and Principal Financial Group

When comparing Northwestern Mutual and Principal Financial Group, it is essential to consider the types of life insurance products, coverage amounts, policy terms, premium affordability, and additional benefits offered. Both companies provide a range of options, but their unique features and specialisations may align differently with your circumstances and priorities.

Northwestern Mutual stands out for its strong financial stability and comprehensive coverage options, including term life insurance and permanent life insurance. On the other hand, Principal Financial Group is recognised for its expertise in retirement planning and investment management, offering a wider range of insurance products with a focus on customisation.

The choice between Northwestern Mutual and Principal Financial Group ultimately depends on your individual needs, preferences, and financial goals. It is important to assess their policy options, pricing, customer service, and financial strength to make an informed decision. Obtaining personalised quotes and consulting with a licensed insurance professional can help you determine which company best aligns with your unique circumstances and requirements.

Principal Financial Group's History and Background

Principal Financial Group, Inc. is an American global financial investment management and insurance company headquartered in Des Moines, Iowa. It was founded in 1879 under the name Bankers Life Insurance Company by wealthy Des Moines bankers, including Edward Temple, Simon Casady, and Phineas M. Casady. The company was founded with the idea to help bankers and their employees purchase affordable life insurance.

In its early years, Bankers Life Insurance Company had no paid staff. Temple and Casady each invested $750, and the company's board of directors included Phineas Casady, Dr. George Glick, M.S. Smalley, B.F. Elbert, and Temple. Certificates of membership cost $2,000 each, and Temple purchased the first one. The company soon hired its first paid employee, John A. Tibbs, who took over day-to-day management. As the company grew, it expanded its business to include farm loans, eventually spanning 21 states.

Over time, Bankers Life Insurance Company evolved, and in 1943, it changed its name to The Bankers Life. The company continued to diversify its offerings, including group insurance, and introduced flexible hours and an affirmative action program. In 1985, the company officially changed its name to Principal Financial Group, with the tagline, "The more things change, the more you can depend on us."

Today, Principal Financial Group has a global presence, with employees in 27 nations and territories. The company offers a wide range of financial products and services, including life insurance, retirement planning, and investment solutions. It is known for its expertise in retirement planning and asset management, providing individuals and businesses with comprehensive financial planning options. Principal Financial Group has a long history of helping people and businesses confidently reach their financial goals.

Life Insurance Products Offered by Northwestern Mutual

Northwestern Mutual offers a wide range of life insurance products to cater to the diverse needs of individuals and families. Their offerings include term life insurance, whole life insurance, universal life insurance, and variable universal life insurance. Each policy type has distinct features and benefits, allowing individuals to select the coverage that aligns with their specific goals and circumstances.

Term life insurance is designed to provide coverage for a specified duration, typically 10, 15, or 20 years. It is a popular choice for individuals seeking financial protection for their loved ones during their working years or while they have outstanding debts. Term life insurance offers affordable protection and can be converted into whole life insurance, providing permanent coverage.

Whole life insurance, on the other hand, offers lifelong coverage and helps build cash value over time. It serves as a death benefit for beneficiaries and also functions as an investment vehicle, enabling policyholders to accumulate wealth over the long term. Whole life insurance policies can earn dividends, which can be taken as cash, used to pay premiums, or purchase additional coverage.

Universal life insurance combines the benefits of term life insurance and whole life insurance. It provides permanent coverage and includes a cash value component. Policyholders have the flexibility to adjust their coverage and premium payments as their circumstances change, making it a versatile option for those seeking both protection and adaptability.

Variable universal life insurance offers lifelong protection and gives policyholders the choice to decide how their policy's cash value is invested in the markets. This option allows policyholders to potentially boost the growth of their cash value over time.

Northwestern Mutual's life insurance products offer a range of options to meet different needs, including financial protection, investment opportunities, and flexibility. The company's strong financial foundation and high credit ratings further emphasize its commitment to providing reliable coverage for its policyholders.

An Overview of Principal Financial Group Life Insurance

Principal Financial Group is a notable player in the life insurance industry, offering a wide range of financial products and services to individuals, businesses, and institutions. With a history dating back to 1879, the company has established itself as a trusted provider of life insurance, retirement planning, and investment solutions.

History and Background:

Principal Financial Group, founded in 1879 as Bankers Life Association, has a long-standing reputation for providing comprehensive financial solutions. In 1985, the company changed its name to Principal Financial Group, reflecting its expanding range of services. Over the years, Principal Financial Group has grown into a global leader, offering an extensive range of financial products to clients worldwide.

Life Insurance Products:

Principal Financial Group offers a diverse portfolio of life insurance products, including term life insurance, universal life insurance, indexed universal life insurance, and survivorship life insurance. These policies are designed to meet the evolving needs of individuals and families, providing flexible and customizable options.

Features and Benefits:

Principal's term life insurance policy offers guaranteed level monthly premiums, coverage starting at $200,000, and the option to convert to a permanent life insurance product without fees or a medical exam. Universal life insurance provides lifetime coverage, flexible premiums, and coverage starting at $25,000. Indexed universal life insurance offers the potential for interest earnings linked to stock market performance. Survivorship life insurance covers two lives and features a tax-free death benefit, making it a valuable tool for estate planning.

Additional Services:

In addition to life insurance, Principal Financial Group provides a range of other financial services. They assist clients with retirement planning, investment options, personal trusts, and benefit offerings for employers. The company acts as a one-stop shop for individuals and businesses seeking comprehensive financial solutions.

Customer Experience:

Principal Financial Group offers convenient digital tools and resources to enhance the customer experience. They provide online calculators, educational resources, and financial planning tools to help clients make informed decisions. Additionally, the company offers mobile apps and online account management capabilities, enabling customers to easily access their policies and related services.

Financial Strength:

Principal Financial Group is recognized for its financial stability, with assets totaling over $89 billion and a strong assets-to-liability ratio. This financial strength ensures reliability and peace of mind for policyholders, as evidenced by positive ratings from credit agencies.

In summary, Principal Financial Group offers a comprehensive suite of life insurance products and financial services, backed by a strong financial foundation. With a focus on flexibility, customization, and digital innovation, the company provides valuable solutions to meet the diverse needs of its clients. Principal's long-standing history, global presence, and commitment to customer satisfaction make it a trusted choice in the life insurance industry.

Principal Life Insurance: What's Covered and What's Not

Principal Life Insurance offers a range of life insurance products to cater to the diverse needs of individuals, families, and businesses. Their life insurance plans provide death benefits to beneficiaries after the death of the policyholder, covering various financial needs and obligations. While the specific coverage will depend on the type of policy chosen, here is an overview of what is typically covered and excluded under Principal Life Insurance:

What's Covered:

• Death benefits: Principal Life Insurance offers financial protection to beneficiaries in the event of the policyholder's death. The death benefit can be paid in a lump sum or through various income options, depending on the policy chosen.
• Tax-free death benefit: The death benefit provided by Principal Life Insurance is generally tax-free, providing additional financial support to beneficiaries.
• Flexible coverage options: Principal offers term life insurance, universal life insurance, and survivorship life insurance. Term life insurance is available in various term lengths, such as 10, 15, 20, or 30 years, while universal life insurance offers lifetime coverage. Survivorship life insurance covers two lives and pays the death benefit upon the death of the second person.
• Conversion options: Principal allows policyholders to convert their term policies to permanent life insurance products without paying additional fees or undergoing medical exams. This provides flexibility for those who wish to extend their coverage.
• Riders: Principal offers a range of riders, or supplemental coverage, that can be added to a life insurance policy. These riders include the Cost of Living Increase Rider, Death Benefit Guarantee Rider, Terminal Illness Death Benefit Rider, Conversion Extension Rider, and Accelerated Benefits Rider, among others.
• Online tools: Principal provides online tools such as a coverage calculator, quote estimates, customer service, and document processing, making it convenient for policyholders to manage their policies.

What's Not Covered:

• Dividends: Principal Life Insurance does not offer any policies that pay dividends.
• Certain causes of death: Like all insurance companies, Principal's coverage is subject to state laws. For example, in the case of death by suicide or drug overdose, policyholders who have held their policies for more than two years are generally eligible for a claim, but this may vary by policy type and state. It is important to carefully review the policy details and contact the company or an insurance agent for specific information.
• Borrowing against term life insurance: Term life insurance does not have a cash value, so you cannot borrow against it. However, universal life insurance policies offered by Principal allow policyholders to withdraw or borrow against the cash value.

Principal Life Insurance provides a comprehensive range of coverage options and features to meet the needs of its target market, which includes business owners, key employees, and their families. It is important to carefully review the specific terms, conditions, and exclusions of any life insurance policy before purchasing to ensure it aligns with your individual needs and requirements.

Frequently asked questions