Northwestern Long Term Care Insurance Company says it will be paying $3.9 million in dividends to 31,000 long term care insurance policyholders in 2007.

The board of the company, a unit of Northwestern Mutual Life Insurance Company, Milwaukee, has approved the unit’s first dividend for LTC insurance policyholders because of the unit’s strong performance, according to Northwestern Mutual.

Dividends paid on LTC insurance policies will be used to reduce the cost of future premiums, Northwestern Mutual says.