What is Northwestern Mutual accused of regarding its interns?

Northwestern Mutual is accused of misleading interns and recent graduates, pressuring them to sell expensive whole life insurance policies to their personal contacts.

Is Northwestern Mutual's 'financial adviser' title legally binding?

No, 'financial adviser' is a marketing term. While some Northwestern Mutual representatives hold licenses for investment advice, many are primarily qualified to sell insurance.

Why does Northwestern Mutual allegedly push whole life insurance so heavily?

Whole life insurance policies are lucrative for insurers due to high cancellation rates and the cash component which helps grow the company's dividend, a key part of its branding.

Home / Business and Economy / Students Duped into Selling 'Terrible' Insurance

Students Duped into Selling 'Terrible' Insurance

24 Nov

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Summary

Recruits were trained to sell expensive whole life insurance.
Interns harvest contacts, with many dropping out quickly.
Firm's 'financial adviser' title masks insurance sales focus.

Students Duped into Selling 'Terrible' Insurance

Northwestern Mutual is under scrutiny for its recruitment practices, with former interns alleging they were misled into selling complex and often unsuitable whole life insurance policies. The company, presented as a pathway to a lucrative financial advising career, allegedly uses student recruits to harvest contact lists, leading to high turnover rates. Many interns reportedly drop out within weeks, disillusioned by the focus on aggressive sales tactics rather than genuine financial planning.

The firm's business model, which heavily relies on whole life insurance, is criticized for being expensive for clients and profitable for the insurer due to high cancellation rates. Recruiters are accused of "gaslighting" young professionals, pushing them to sell policies to friends and family, even to their own detriment. The title of "financial adviser" is reportedly used loosely, with many representatives lacking the necessary licenses for true investment advice.