North American is a top choice for us. They are rated A+ by AM Best and have a Comdex Score of 92. Our full review is below.
You should consider North American when deciding on what life insurance policy to buy. A full portfolio to choose from including 10, 15, 20, 25 and 30 year term, indexed universal life, guaranteed universal life and survivorship life insurance also known as second-to-die policies.
The Builder Plus IUL from North American is a solid choice for anyone looking to build a tax-free retirement plan. Even if you aren’t ready to start saving for retirement in an indexed UL policy, you can start with term or GUL and convert these policies to an IUL when your are ready financially.
There are many reasons why someone may purchase life insurance. For many, knowing that loved ones and survivors will be able to move on financially is a key motivator. But for others, this financial tool may be geared towards helping them to save in a tax-advantaged manner so that there will be funds available for supplementing retirement income, paying off debts, or other needs. In this case, indexed universal life insurance is frequently considered.
Here is a quick video to help you understand what Indexed UL is about:
With indexed universal life insurance, the funds that are in the policy’s cash value are able to grow based on the performance of an underlying market index such as the S&P 500. When this index performs well during a given year, a positive return is credited to the cash value (typically up to a certain maximum, or cap).
But, if the underlying market index performs poorly during a given year, rather than incurring a negative in the cash account, the return for that year is simply credited as a 0%. Therefore, while there is no gain, there is also no loss, which allows protection of principal.
Because not all indexed universal life insurance products are exactly the same, it is important to first shop and compare several alternatives before making a purchasing decision. It can also be beneficial to review the insurance company that you’re considered buying the policy through. That way, you can be more assured of the company’s financial condition, as well as its reputation for paying out its policyholders’ claims. One company that meets these criteria quite well is the North American Company for Life and Health Insurance.
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The History of North American Company for Life and Health Insurance
The North American Company for Life and Health Insurance has been serving customers in the area of building and protecting wealth ever since 1886. The company serves individuals and families, as well as businesses.
Unlike many other insurance carriers, North American Company is privately owned – and is a part of the Sammons Financial Group, Inc., whose companies provide a wide array of life insurance, annuity, and other retirement products.
Sammons Financial Group is comprised of the North American Company for Life and Health Insurance, as well as:
- Midland National Life Insurance Company
- Sammons Retirement Solutions, Inc.
- Sammons Financial Network, LLC.
In 2016, Sammons Financial Group was named as a Top Workplace in Iowa.
The Sammons Financial Group is in turn owned by Sammons Enterprises, Inc., a diverse holding company that owns and operates businesses across a diverse range of industries. Sammons Enterprises is presently ranked among the largest privately-owned companies in the U.S.
North American Life Insurance Review
North American Company for Life and Health Insurance is considered to be a large and stable insurance and financial services entity. As of December 31, 2016, the company held over $22 billion in assets, with more than 595,000 life insurance policies and annuities on the books.
At that time, the company had roughly $117 billion of life insurance in force. And, throughout the year of 2016, North American Company paid out more than $389 million in life insurance proceeds. The related company, Sammons Annuity Group, maintained approximately $43 billion of annuity reserves during that year.
Insurer Ratings and Better Business Bureau Grade
Due mainly to its financial strength and stability, as well as to its stellar reputation for paying out policyholder claims, Sammons Financial Group – the parent company of North American – has earned high ratings from the insurer ratings agencies. These include an A+ (Superior) from A.M. Best Company and an A+ (Strong) from S&P Global Ratings.
Likewise, North American Company has also earned high marks from the ratings agencies, which is inclusive of an A+ (Superior) from A.M. Best, an A+ (Strong) from S&P Global, and an A+ from Fitch Ratings.
In addition, while North American Company for Life and Health Insurance is not an accredited business via the Better Business Bureau (BBB), the company has received a grade of A+ by this entity. (This is on an overall grade scale of A+ to F).
Throughout the past 3 years, North American Company has closed out 8 customer complaints through the BBB – of which 2 have been closed out within the past 12 months. Of these 8 total complaints, 7 dealt with problems with the company’s products and services, and the remaining one had to do with the company’s billing/collection issues.
Indexed Universal Life Insurance Offered By North American Company
North American Company offers a wide range of life insurance products to choose from – one of which is the popular indexed universal life insurance coverage. With indexed universal life – a permanent form of life insurance protection – there is both death benefit coverage, as well as a cash value component.
The return on the cash value is not based on a set interest rate, but rather in terms of the performance of an underlying market index (or indexes) such as the S&P 500. Here, should the underlying market index have a good, positive performance during a given year, then the cash value return in the policy is credited with a positive – up to a certain set maximum, or cap.
However, if the underlying index being tracked has a poor, negative performance in a given year, then the cash value will not receive a negative return, but rather it will just simply be credited with a 0% return for that time period. Because of this, indexed universal life insurance is frequently referred to as being the best of both worlds, as it allows for a market-related upward return, yet without the worry of downward market performance.
Due to the ability for obtaining a higher return than regular universal life insurance or whole life, indexed universal life insurance is often used for both death benefit protection and a savings strategy. In fact, in some cases, retirees will opt to use the cash value from an indexed universal life policy for supplementing retirement income and/or other financial needs.
The North American Company for Life and Health Insurance offers several different indexed universal life insurance policy options to choose from. These include the following:
Builder Plus IUL
New to North American in 2018 is the Builder Plus IUL and it certainly lives up to its name. North American has taken past IUL policies and improved them. They have increased caps so that you earn more interest on your policy. The addition of new caps like high participation S&P index that has a participation rate of 140%. The guaranteed interest bonus is now 1% and begins in year 11.
Here is a kicker – interest multiplier. With the interest multiplier, you get a 10% interest bonus beginning in year 6 and this is on the indexed or fixed account interest earned. This is new in 2018 and a key feature you should be looking for when you purchase an indexed universal life insurance policy.
With the Builder IUL indexed universal life insurance policy, there is solid death benefit protection, while also having the ability to build up cash value. There is access to the cash value via loans and/or withdrawals – which includes the opportunity to take net-zero cost loans in policy years six and beyond. In addition, if the insured should contract an unexpected illness, he or she may be able to have access to a portion of the death benefit in order to assist with medical and other related expenses.
Guarantee Builder IUL
The Guarantee Builder IUL plan offers long-term guarantees, along with death benefit protection for loved ones and survivors. This policy offers the potential for significant cash build up. And, there are also options for accessing cash value via loans and/or withdrawals, as well as through accelerating the death benefit if the insured contracts certain illnesses. If accessed, these funds may be used for any need that the insured sees fit.
The North American Company’s Legacy Optimizer indexed universal life insurance plan provides death benefit protection, as well as the opportunity for earning interest that is based on the movement of stock indexed such as the S&P 500. There is also a fixed account option whereby the policyholder can earn based on a set interest rate (which is, however, subject to change based on the current interest rate environment).
This policy offers different interest rate crediting options, including an annual point-to-point, and an annual point-to-point with spread. With this policy, loans are available beginning in the very first year.
Rapid Builder IUL
As a permanent life insurance policy option, the Rapid Builder offers both death benefit protection, along with cash value build up. This policy, however, is geared more for early potential cash value accumulation.
There are several ways of accessing this cash if it is needed by the policyholder, including both loans and withdrawals. With the Rapid Builder IUL, there is an option to access net zero cost loans in policy years six and later. The insured may also access a portion of the policy’s death benefit funds if he or she contracts certain qualifying illnesses.
The Survivorship GIUL policy offered via North American Company is an indexed universal life insurance plan that insures two individuals as versus just one. Here, the death benefit from the policy is paid out upon the death of the second insured. That is why this particular policy is designed for providing those who may need financial support following the passing of both of the insureds, such as children, a trust, or a company / organization.
With this policy, there is low-cost death benefit protection offered, as well as the ability to earn a nice return that is based on the performance of an underlying market index – yet without the need to worry about negative performance is the index has a negative return in a given year.
Other Products and Services Available
In addition to indexed universal life insurance coverage, the North American Company for Life and Health Insurance also offers a guaranteed universal life insurance policy, as well as term life insurance protection.
Universal life is a flexible type of life insurance coverage, which allows for the policyholder to alter their premium, based on their ongoing needs. Likewise, the amount of the death benefit may be raised or lowered if the insured’s needs should change.
Term life insurance offers death benefit protection only, without any savings or cash value build up. Because of that, term life insurance may often be less costly regarding premium.
With a term life insurance policy, the coverage protection is purchased for a set period of time, or term, such as for 5 years, 10 years, 15 years, 20 years, 25 years, or even for 30 years. Many term life insurance policies can also be converted over into a permanent form of protection in the future.
North American Company also offers retirement annuities. These products can help retirees to ensure that they will not run out of money – regardless of how long they may need it. Depending on the type of annuity purchased, these products will also allow for tax-deferred buildup of funds during the “accumulation” period. Through North American Company, purchasers can consider immediate annuities, traditional fixed annuities, and fixed indexed annuities.
How to Get the Best Rates on Life Insurance From North American
If you are looking for the best premium rate on indexed life insurance from North American Company – or from any insurance carrier – it is typically best to work with an independent insurance agent who can show you alternatives from several different insurers. The best rates are available for applicants who do not smoke tobacco and have no health issues. From there, you can choose which of the policies and premium rates works the best for you, as well as for your budget.
When you are ready to move forward, we can help. We offer life insurance coverage from many of the top-rated insurance companies in the industry today. We can provide you with an unbiased look at plans that may be right for you. And, for your convenience, we can offer you this information directly via your computer, and without the need to meet in person with a life insurance agent. If you are ready to proceed, then just simply take a moment to fill out the quote form on this page.
Should you find that you still have any additional questions or concerns regarding indexed universal life insurance, or any life insurance plan, please feel free to reach out to us directly via phone and speak with one of our life insurance experts.