Northwestern Mutual Term 80 Review

Term 80 Northwestern Mutual Explained

Northwestern Mutual Term 80 Explained

Northwestern Mutual's Term 80 product is an annual renewable term life insurance policy that lasts until the policy holder reaches 80 years of age. The premiums increase each year and can get very expensive as the insured gets older. The policy does have a conversion option to whole life insurance without evidence of insurability. Annual renewable term life insurance is designed to cover short-term insurance needs.

Pros

  • Lower initial premium
  • Northwestern Mutual is A++ Rated
  • Conversion option to whole life
  • Available in all 50 states

Cons

  • Rates increase every year
  • Rates can get very expensive as you get older
  • NW Mutual can have strict underwriting
  • Need to speak to an agent for a quote

Is Term 80 Worth It?

The Term 80 annual renewable term life insurance policy from Northwestern Mutual is typically not worth it for most people. Instead, a level term life insurance with fixed rate is a better option.


While Northwestern Mutual is one of best life insurance companies in the United States, their Term 80 product is not a competitive policy compared to the level term life insurance policies available from other highly rated companies that also have offer a conversion option.

Term 80 Northwestern Mutual

NW Mutual Term 80 is a term life insurance policy with a rate that increases each year on the policy anniversary date.


For those in their 20's and 30's the initial rates can be affordable. However, once  the insured reaches their 40's, 50's, 60's and 70's the rate becomes very expensive.


Term 80 Life Insurance

Northwestern Mutual Term 80 is an annual renewable term life insurance policy that offers coverage until the insured reaches 80 years old. The premiums increase each year and can become very expensive as the insured gets older.

Level Term Life Insurance

Level term life insurance is a policy where the coverage amount and premiums are fixed for the term (10, 15, 20, 25, 30, 35 or 40 years) and cannot change regardless of changes in age or health. The policy can be canceled at anytime without a penalty by the policyholder.

Term 80 Life Insurance Alternatives

Below are term life insurance alternatives available on the open market compared to the NW Mutual Term 80 annual renewable policy:

  • 10 Year Level Term
  • 15 Year Level Term
  • 20 Year Level Term
  • 25 Year Level Term
  • 30 Year Level Term
  • 35 Year Level Term
  • 40 Year Level Term

Level term life insurance is defined as the coverage amount and premium are both fixed for the term selected. Also, the policy can be cancelled at anytime without a penalty.

NW Mutual Term 80 vs Level 30

Below are the sample monthly rates by age for a $500,000 30 year level (fixed) term policy from one of the largest life insurance companies in the country. Compare the premiums below to the NW Mutual Term 80 annual renewable rates.

Age

Price

Amount

Rating

Term

25

$28

$500,000

A+ Superior

30 Year

30

$29

$500,000

A+ Superior

30 Year

35

$34

$500,000

A+ Superior

30 Year

40

$50

$500,000

A+ Superior

30 Year

45

$78

$500,000

A+ Superior

30 Year

50

$127

$500,000

A+ Superior

30 Year

55

$231

$500,000

A+ Superior

30 Year

*Rates for a male in excellent health, D.O.B. 3/1 with an A+ Superior rated carrier.

NW Mutual Term 80 vs Level 20

Below are the sample monthly rates by age for a $1,000,000 20 year level (fixed) term policy from one of the largest life insurance companies in the country. Compare the premiums below to the NW Mutual Term 80 annual renewable rates.

Age

Price

Amount

Rating

Term

25

$30

$1,000,000

A+ Superior

20 Year

30

$30

$1,000,000

A+ Superior

20 Year

35

$33

$1,000,000

A+ Superior

20 Year

40

$49

$1,000,000

A+ Superior

20 Year

45

$86

$1,000,000

A+ Superior

20 Year

50

$132

$1,000,000

A+ Superior

20 Year

55

$221

$1,000,000

A+ Superior

20 Year

60

$387

$1,000,000

A+ Superior

20 Year

*Rates for a male in excellent health, D.O.B. 3/1 with an A+ Superior rated carrier.

NW Mutual Term 80 vs Level 10

Below are the sample monthly rates by age for a $250,000 10 year level (fixed) term policy from one of the largest life insurance companies in the country. Compare these rates to the NW Mutual Term 80 annual policy prices that are not fixed.

Age

Price

Amount

Rating

Term

25

$10

$250,000

A+ Superior

10 Year

30

$10

$250,000

A+ Superior

10 Year

35

$10

$250,000

A+ Superior

10 Year

40

$12

$250,000

A+ Superior

10 Year

45

$17

$250,000

A+ Superior

10 Year

50

$24

$250,000

A+ Superior

10 Year

55

$37

$250,000

A+ Superior

10 Year

60

$58

$250,000

A+ Superior

10 Year

65

$100

$250,000

A+ Superior

10 Year

70

$175

$250,000

A+ Superior

10 Year

75

$332

$250,000

A+ Superior

10 Year

*Rates for a male in excellent health, D.O.B. 3/1 with an A+ Superior rated carrier.

Conclusion

Northwestern Mutual is the largest life insurance company in the United States in 2022. NW Mutual is also the highest rated life insurance company (as well as New York Life) in the country with an A++ financial rating from A.M. Best and a perfect 100 Comdex score.

NW Mutual is an excellent choice for whole life insurance but their term life insurance rates are often more expensive then other Superior rated companies.

The Northwestern Mutual Term 80 product is an annual renewable term life insurance policy that lasts until the insured reaches the age of 80. However, the drawback of the Term 80 life insurance policy is the increasing premium each year as the rates are not fixed. This can become very expensive, especially when the insured reaches their 40’s and 50’s.

A much better option for most people is to secure a “level” term life insurance policy with a fixed term for: 10 years, 15 years, 20 years, 25 years, 30 year, 35 years or 40 years, depending on your needs and goals. Similar to the NW Mutual term policy, most companies offer a conversion option to permanent insurance as well as the option to cancel anytime without a penalty.


Frequently Asked Questions

What does “level” term life insurance mean?

Level term life insurance means the rates and coverage amount are fixed for the term selected and cannot change regardless of changes in age or health until the term expires.

Is there a penalty to cancel a level term life insurance before the term expires?

No, you can cancel a level term life insurance policy at anytime without a penalty. The insurance company will lock in the rate for the term selected and the insured can cancel at anytime.

What is the difference between Northwestern Mutual Term to Age 80 compared to Level Term 10, Level Term 20 or Level Term 30 to age 95?

The majority of level term life insurance policies allow the policy to continue up until the insured reaches the age of 90 or age 95 even after the term ends. However, the rate does typically increase significantly when the original term expires. The Northwestern Mutual Term to Age 80 policy offers coverage to 80 years old, however the rate is not fixed and increases each year.

Is term life insurance taxed?

Term life insurance proceeds are generally income tax free, unless the estate has a high-net worth and subject to estate taxes.

What is a “Superior” rating from A.M. Best mean?

A.M. Best is the preeminent rating agency for life insurance companies. The highest rating category is ‘Superior’ which includes A++ and A+ rated companies. Both are graded to have a superior ability to meet their ongoing insurance obligations to policyholders.

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