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JohnE

Northwest Mutual

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Sir

 

I can only tell you that the company has had lots of complaints. I am sure the fees are high. See below, if this doesn't scare you I am not sure what will. Please send us a list of your vendor choices and you will

get some feedback as to your best choices.

 

Personally I think you need to stay away from insurance companies for retirement investing. Keep insurance

and investments seperate.

 

Tony

 

 

The Northwestern Mutual Life Insurance Company

Deceptive and Misleading Practices of the Northwestern Mutual Life Insurance Company

 

I have been the victim of deceptive and misleading practices followed by the Northwestern Mutual Life Insurance Company (NML) and one of it’s sales agents.

 

Here’s what happened.

 

The agent:

 

Failed to make any mention of policy loans, interest costs, and the potential for taxable "phantom income."

Dishonestly exaggerated the benefits and purpose of life insurance.

Misrepresented NML's actual rate of return as being 30 to 50% higher than reality.

Told me that I could get “free” life insurance by using dividends or cash values from one policy to pay the premiums for another. I subsequently discovered that this is a fraudulent scheme known as churning.[1]

Told me that my cash value was like dividends in a savings account.

Told me that taking a policy loan would just simply reduce the amount of your life insurance.

Told me that my debt to NML from “automatic” policy loans were the result of their company “losing” my address.

Subsequently mismanaged my policies by failing to correctly transfer dividends and cash value to cover policy loans.

 

Here’s how NML responded to my complaints

 

They ignored my complaints until the State Insurance Commissioner demanded an explanation.

They told me caveat emptor. I should have understood agreements I had signed. This is despite the fact that the directions on the agreements included a statement to the effect that if you don’t understand the agreement to contact your NML financial representative. I was subsequently lied to by their representative.

Continued to ignore my complaints about agreements signed under false pretenses, and misrepresentations made by their agents when marketing their products.

Admitted that they lost my address, generating automatic policy loans that have accumulated interest, but refused to make any adjustments. This is despite the fact that the managing partner of their Baltimore office was of the opinion that NML had made a mistake, and would rectify it.

Claim no responsibility for the actions of their agents.

 

Here’s what I am doing about it.

 

· I’ve done extensive research of consumer complaint sources, and discovered that I’m not the only one who has been victimized by this company.

 

· Warn other NML policy holders and potential NML customers.

 

· Widely publicize my experience and other facts about NML’s nefarious practices.

 

· Institute a class action lawsuit against NML. To this end, I have a website detailing my experiences, along with a solicitation for additional plaintiffs.

 

The website can be found at http://www.nmlclassactionlawsuit.com.

 

· I have placed classified advertisements in several newspapers advertising the website and soliciting for plaintiffs.

 

Peter S

 

Clarksville, Maryland

 

U.S.A.

 

Peter S

 

 

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In terms of pricing and products, they are one of the lesser of the evils. However, just like every other life insurance company out there, I'd say they're guilty of overselling their annuity products within qualified plans, and "whole life = best savings platform" misguidance.

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Never, ever, ever buy a VA from an insurance company. The vast majority of insurance companies and sales staff that push VA's, do so to the wrong people, of the wrong age, for the wrong reasons and fail to disclose the hideous fees and charges they carry.

 

I realize that some of you have to pick between other bad choices and as Vince stated perhaps this company has somewhat lower fees and better product selection( I don't know) but even in that case you would be better off investing in a 403b roth and regular , taxable, mutual funds with low fees than a VA.

 

I know I sound militant about this issue but until we as consumers get it, the insurance companies will not change their tactics. It is time for a revolution!!!

 

Indeed, 99% of the people selling VA's are worse than a cross between a child molester and a terrorist.

 

 

 

 

 

 

 

Never, ever, ever buy a VA from an insurance company. The vast majority of insurance companies and sales staff that push VA's, do so to the wrong people, of the wrong age, for the wrong reasons and fail to disclose the hideous fees and charges they carry.

 

I realize that some of you have to pick between other bad choices and as Vince stated perhaps this company has somewhat lower fees and better product selection( I don't know) but even in that case you would be better off investing in a 403b roth and regular , taxable, mutual funds with low fees than a VA.

 

I know I sound militant about this issue but until we as consumers get it, the insurance companies will not change their tactics. It is time for a revolution!!!

 

Indeed, 99% of the people selling VA's are worse than a cross between a child molester and a terrorist.

 

 

 

 

Please accept my apologies for that last line. It was uncalled for. I have seen so many people hurt from these salespeople that I lost it there for a moment. I used to think it was better for people to save in something that not save at all but I realize now that there is usually a better option than a VA.

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Ahhhhh . . .fond memories . . .NW mutual was the company that motivated me to learn about investing for myeslf. I guess, ultimately, I have them to thank for that, although, not much else.

 

They were "my" bad experience of the investing world. Spent about 2.5 years "saving for my retirement" by dollar cost averaging into a whole life insurance policy with mutual fund sub accounts. Actually, nearly got into a shouting match with my "advisor" when I wanted to transfer my money out and invest elsewhere. He told me how rediculous it was for me to invest in mutual funds when I could have the "security" of whole life insurance. He just would not let me out. Finally, I had to tell him to sign the paper I needed signed or I would be filing complaints with every single authority that I could. That took care of it. I could go on, and on, and on about my "experience" - let me summarize - RUN away and look into other options you may have for investing. Use someone else's bad experience if you can, so that you don't have to make your own.

 

IRA's??

 

Other 403b/457 options that are not insurance companies?

 

403b7 account???

 

Why are you considering NW mutual???? What is the background?

 

 

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