Can someone explain why Northwestern Mutual (NWM) gets so much hate? I’m from Australia, so I hadn’t even heard of them until I joined this subreddit. Just curious to know why they’re constantly getting criticized.
NWM is basically a corporate pump-and-dump scheme. They lure in new hires with promises of entrepreneurship and the ability to ‘own your career.’ Once you’re in, though, they push you to sell insurance aggressively, often to your own friends and family. It’s a tough, soul-crushing sales job, and once you burn through your network, you’re left drained. Other than that, the company is fine.
@Wes
So, basically an MLM (multi-level marketing)?
Leith said:
@Wes
So, basically an MLM (multi-level marketing)?
Yes, it’s basically an MLM disguised as a financial advisory firm. The focus is on selling insurance to your friends and family, which feels sleazy.
Their recruiters are often young and inexperienced, promising things they barely understand. It’s kind of laughable. If you ever have time to waste, go through one of their interviews—it’s more of a sales pitch for you to sell their products.
It’s essentially an MLM scam. They focus on selling high-commission life insurance policies and push new recruits to target their personal network. Once you’ve gone through your friends and family, you’re on your own.
There’s nothing inherently wrong with the company. It’s a Fortune 100 company that provides financial planning services, but their business model heavily relies on new hires selling insurance to their personal network. Many recruits don’t make it because it’s a tough industry to succeed in, and their focus on life insurance sales, which often has a bad reputation, doesn’t help.
@Roan
Why do people think life insurance is a scam?
Zev said:
@Roan
Why do people think life insurance is a scam?
It’s not life insurance itself that’s the issue; it’s the non-term life policies that come with high fees and provide little value to most people. They’re often sold to people who don’t need them.
World Financial Group (WFG) is a similar company in Canada. Here’s a funny video where a student infiltrates and exposes their sketchy practices. It’s an eye-opener!
@Chan
Just to clarify, WFG and NWM aren’t affiliated. Both have similar business models, but WFG is owned by Aegon.
I didn’t work there, but I applied to a competitor. During the second interview, they asked me to bring a list of 200 people I knew, so I could start selling life insurance. That’s when I knew this wasn’t for me.
I work at NWM and understand the criticism, especially regarding recruiting new graduates. It’s a tough job, and turnover is high. However, working behind the scenes has been a great experience for me, and they’ve covered my licensing and training.