Life insurance - State Farm vs Northwestern Mutual

[Henry]

I'm considering dropping my current term life insurance with State
Farm and go with Northwestern Mutual. Please share any experiences
with Northwestern Mutual (good or bad) that might help make my
decision. The reason why I'm considering switching is simple,
Northwestern has a cheaper monthly rate.

Thanks

[TTRoberts]

avil...@email.msn.com (Henry), you wrote:

<< <I>I'm considering dropping my current term life insurance with State Farm

and go with Northwestern Mutual. Please share any experiences with Northwestern
Mutual (good or bad) that might help make my decision. The reason why I'm

considering switching is simple, Northwestern has a cheaper monthly rate.</I>
>>

First of all, you didn't say just what type of policy you're talking about.
Without that little information, you've got any ready of your post looking into
a VERY dark corner.

If it's term insurance coverage you're looking at, then you can probably find
even cheaper monthly rates through companies other than Sate Farm or
Northwestern. If you're talking about a Whole Life contract, then there's much
more to consider than just "cheaper monthly rates".

With whole life contracts, one should do a detailed analysis comparing things
like cash values after certain period of time from this date forward. With
whole life contracts one needs to consider the dividends that may or may not be
paid and how that balances the "cheaper monthly rate". With a whole life
contract, one should get an "in-force illustration" to help compare a current
policy (like getting one from State Farm) with that of some other company's new
"cheaper" policy. Just because there may be a "cheaper monthly rate" doesn't
necessarily mean that it'll cost less over the long term. If you've got a good
experienced Northwestern agent, that agent should be able and willing to help
you with such a detailed analysis. State Farm has had a great dividend history
as has Northwestern Mutual. If you've had a State Farm contract for some time,
it most likely is worth keeping the contract and changing the dividend option
to lower the monthly premium payments . . . . ???

[cal-lester]

There is so much missing from your post, that it is truly
impossible to give you an answer. However, I would like
to give you some guidance..........

a) are they the same coverage (years, renewably
conversion ability and or credits)
b) what medical requirements are involved
c) are the proposed premiums GUARANTEED,
and if so, for How Long?
d) what is the face amount. (many companies
offer discounts at higher levels)

Neither State Farm nor NML are considered to be in
the category of "INEXPENSIVE TERM INS." There are
a number of companies that can offer lower rates than either.
And there are a number of "different types" of Term Ins. that
have different premium structures.

Cal Lester CLU

--
Life is like a role of toilet paper.
The closer you get to the end, the faster it goes.
"Henry" <avil...@email.msn.com> wrote in message
news:cca46c2a.0207...@posting.google.com...

[Cover Me]

The reponses I've seen are on target. There is far too little info in your
post for a thoughtful and well-considered repsponse. Policy term, policy
type, interest rate assumptions, and a million other things have to be
considered. It's probably not practical for you to post enough info for the
proper analysis.

Two items, though . . .

1. As Cal said, if you've had the policy in force a while, one usually
needs a rather compelling reason to make a change.

2. As a life company, NML is a better outfit, IMO. Better history, better
expertise, as far as I'm concerned.

Trey Hutt, CPCU

[Ben Skversky]

Why is NML a better life company then State Farm?? Enquiring minds want to
know.

"Cover Me" <trey...@tiggercity.com> wrote in message
news:uipbi7h...@corp.supernews.com...

[cal-lester]

this is my PERSONAL opinion, NOT to be taken as an endorsement
of one, nor a castigation of the other ! ! ! ! !

Primarily due to the fact that State Farm is basically a
Casualty company, rather than a Life Insurance company.
Their cost of operation differ, and there projections for
the Insured are different.
Cal Lester CLU

"Ben Skversky" <bskv...@comcast.net> wrote in message
news:O3JX8.64069$iX5.2...@bin3.nnrp.aus1.giganews.com...

[TTRoberts]

"Ben Skversky" bskv...@comcast.net, you asked:

<< <i>Why is NML a <b>better</b> life company then State Farm?? Enquiring minds
want to
know.</i> >>

I would tend to agree with Cal in the general sense. In surveys past that I
have read, NML has had the highest consumer satisfaction rating as well as
employee satisfaction. This is not to say that State Farm is particularly
"bad" in comparison. In fact, State Farm's participating whole life contract
as been known to be even "better" than NML's as the net costs of their policies
have tend to be less. This too doesn't mean that NML's whole life contracts
aren't good either.

So . . . I would argue (as I so often do <grin>) that what is "better" or
"best" DEPENDS on just what we're talking about. Well, I feel that was your
point to start with since "better" or "best" is really a relitive term, huh?
;-)

[Ben Skversky]

State Farm is the 6th largest life insurance company in the US.

"cal-lester" <cal-l...@attbi.com> wrote in message
news:wHXX8.344671$R61.3...@rwcrnsc52.ops.asp.att.net...

[Lori in Oregon]

I would have to beg to differ. State Farm has a separate company for Life insurance. The State Farm Group ranked 3rd in paid-for volume for ordinary life insurance among all U.S. companies in 2000. Our Life companies have consistently received high financial strength and claims paying ability ratings from five major industry rating agencies.

State Farm Life Insurance Company and State Farm Life and Accident Assurance Company ratings:
a.. Standard & Poor's -- Very Strong, AA+
b.. A.M. Best's -- Superior, A++
c.. Moody's -- Exceptional, Aaa
d.. Weiss -- Excellent, A+
e.. FitchRatings -- Exceptionally Strong, AAA
Just my opinion. :)

Lori

"cal-lester" <cal-l...@attbi.com> wrote in message news:wHXX8.344671$R61.3...@rwcrnsc52.ops.asp.att.net...