Northwestern Mutual has announced that it plans to pay $5.2 billion in dividends to participating policy holders next year. This represents an increase of the total payout over last year of roughly $200 million. 90% of this payout will go to whole life policy holders.
But as we know the bigger consideration is what does this mean for the dividend interest rate?
For most of the last five years the Quiet Company has very quietly dropped it's dividend interest rate. But this year they get to hold firm at 5.60%.
Northwestern has been well known for paying a very high percentage of its income to its many many policy holders, and it looks like this year will be no different. And we're sure they are mighty happy to be able to maintain their dividend interest rate from last year. All in all, not a bad announcement out of Northwestern Mutual
Brandon launched the Insurance Pro Blog in July of 2011 as a project to de-mystify the life insurance industry. Brandon was born in Northern New England, and he currently calls VT home. He attended Syracuse University and graduated with a triple major in Economics, Public Administration, and Political Science.