Northwestern Mutual Life Insurance is a Milwaukee-based financial security company that provides insurance, annuities, and other investment products. The company was first founded as the Mutual Life Insurance Company of the State of Wisconsin. It dates back to 1857, and it was primarily focused on providing life insurance through the early years of the 20th century. It has since expanded to provide a wide variety of investment products and financial services.
Those considering purchasing from Northwestern Mutual Life Insurance should carefully review the information available about the company and the terms of its policies to determine if an investment with Northwestern Mutual is a smart option. If anyone who purchases investments or annuities believes they were misled or that the company is not living up to its promises, the San Mateo County securities fraud lawyers at Evans Law Firm, Inc. should be consulted.
Northwestern Mutual Insurance Products
Northwestern Mutual offers financial guidance, as well as products to individuals, businesses, and organizations. Available products include life insurance, disability income insurance, long-term care policies, annuities, investment products and services, and education funding.
The different life insurance products which Northwestern Mutual provides for sale include both permanent life insurance and term life insurance. Whole life policies promise guaranteed level premium payments and it is possible to pay premiums for a set number of years or until you are either 65 or 90. A death benefit is guaranteed, coverage that is paid for is guaranteed to continue for life, and policyholders may be eligible for annual dividends which can also be used to increase policy value.
Term life, variable life insurance, and universal life insurance are all product offerings as well, as is CompLife insurance, which is a hybrid between term and permanent policies.
For those interested in annuities, Northwestern Mutual also provides options. It is possible to purchase an immediate annuity which will “turn your retirement savings into a guaranteed stream of income payments,” which begin immediately. It is also possible to buy deferred annuities, which are designed for people who want to reach long-term retirement goals with guaranteed income in the future.
These are just a small sampling of the products provided by Northwestern Mutual Insurance, which has more than 5,500 employees and which had a net income of more than $679 million in 2014.
Class Actions & Regulatory Actions Against Northwestern Mutual Insurance
In March of 2016, Reuters reported that Northwestern Mutual Life Insurance Co. paid $84 million to settle a lawsuit* arising out of claims that the insurer had illegally reduced the potential payouts on annuities which had been sold. Some of the annuities affected had been purchased by consumers at least 30 years prior to the time when Northwestern Mutual allegedly acted inappropriately in regards to payouts.
The $84 million settlement was disclosed in a federal court in Milwaukee, where the insurance company is based. Approximately 4,000 current owners of annuities and 29,000 former owners of the annuities who were suing Northwestern Mutual have now had their claims resolved by the settlement. Reuters indicates that estimated compensatory damages for affected plaintiffs could have reached as high as $278 million.
Cases like this one are not the only ones arising from annuity sales or from problems with life insurance and investment products. Any consumer who has policies or investments with Northwestern Mutual Insurance or with any provider of investment products and financial services should consult with a securities fraud attorney for advice and guidance. An attorney can help consumers seek justice in their case. Call our office at (415) 441-8669 or email us at firstname.lastname@example.org today.
* Evans Law Firm, Inc. did not handle this lawsuit.