The Northwestern Mutual Life Insurance Company has announced its intentions to pay $5.6 billion in dividends to policyholders in 2016. This represents an increase over 2015 of $120 million.
Breakdown of Dividends Paid to Policyholders
The breakdown reported by Northwestern was per product line was:
- $4.9 billion to whole life policyholders
- $340 million to disability insurance policyholders
- $155 million to term life insurance policyholders
- $115 million to variable life insurance policyholders
- $55 million to annuity policyholders
Northwestern did not mention a dividend payment for long term care insurance policyholders.
New Whole Life Dividend Interest Rate
The press release says, “In 2016, the company's dividend scale interest rate on unborrowed funds for most traditional permanent life insurance will be 5.45 percent.”
We'll note that the $120 million increase over last year is substantially smaller than the $300 million increase year over year from last year.
You can read the press release from Northwestern here.