If you are a policy holder with North American Life, then you probably already know what a great company they are. If you have never heard of North American, then read on for an in depth review. We will discuss the pros and cons and give our thoughts about North American at the end.
North American is among our list of the best life insurance companies to do business with. We put this review together to give you a better idea of the company’s strong product portfolio and why you should give them a look if shopping for life insurance or annuities.
Since 1886, North American Company for Life and Health has been offering life insurance coverage along with financial products (Annuities). North American was the first insurance company to offer disability insurance to women in 1918.
North American is a privately owned company, and ranked number 77 on Forbes 2015 “List of America’s Largest Private Companies”. They are a part of the Sammons Financial Group, Inc. (SFG)- which offers a wide variety of diverse of retirement products.
In this blog will be discussing North American life insurance products in detail.
The Financial Strength
Considered a strong financial company, North American holds more than 525,000 life and annuity policies, while reporting more than 16 billion in overall assets. They have more than $105 billion of life insurance coverage inforce.
North American holds the top grades from all three rating agencies.
- A.M. Best Rating: A+
- S&P Rating: A+
- Fitch Rating: A+
With rating like those above, you can rest knowing that North American will be able to pay claims when the time comes. You are in solid financial hands if you own a policy with North American.
Insures Clients up to Age 85
This is definitely something you don’t see with a lot of insurance carriers. North American also has some of the lowest rates for seniors looking for term life or permanent life.
WriteAway Accelerated Underwriting
In early 2018, North American rolled out their WriteAway accelerated underwriting program. This continued a move for North American into the automated underwriting market.
With this program, applicants can avoid invasive labs and paramedical questions if they qualify. You must be 50 or below to qualify for this program, and can get approvals in less than 72 hours. This program is available for all of North American’s product portfolio.
If you don’t qualify for the WriteAway accelerated underwriting program, know that North American has excellent underwriting with many innovative and creative ideas.
- Applicants with cholesterol levels up to 300 can still qualify for the best rate
- Applicants who use blood pressure medicine could still qualify for the best rate if under control.
Life Insurance Portfolio
This is North American’s level term life insurance. The premiums and death benefit are level for the duration of the term period selected. The ADDvantage offers term lengths of 10-30 years depending on your age.
ADDvantage term offers competitive rates and is a great option if you need protection for a certain time frame. Some top to reasons to purchase term are:
Here are some sample rates: 50 year old-Preferred Rates
Universal Life Insurance
This is North American’s guaranteed universal life product. This policy provides a guaranteed premium and death benefit to age 120 with no premiums due after age 100.
This product offers face amounts as low as $25,000 with issue age up to age 85. The Custom Guarantee also comes with the chronic and terminal illness rider at no extra charge. Learn more about this rider here.
This policy does build up some cash value, but is designed more for the death protection.
Indexed Universal Life (IUL)
North American is one of the leading innovators when it comes to their indexed universal life product portfolio. The way interest is credited is how an indexed universal life policy differs from other universal life policies (like Custom Guarantee). Not only is a declared interest rate offered, IUL’s also offer an option linked to selected market indices (such as S&P 500 and Nasdaq).
Indexed Universal life offers a life long death protection with potentially higher cash value growth, flexible premiums, and tax advantages.
These policies come with a floor and a cap which ultimately determines your interest earned. The floor limits your losses and is usually 0-1% depending on the product. The cap will limit the amount of interest you will earn, with cap rates around 11-12%.
IUL’s are permanent products and works well when lifetime coverage is needed. Top reasons for purchasing an indexed universal life are:
North American IUL Products:
- Builder IUL
- Guarantee Builder IUL- Offers a guaranteed premium.
- Rapid Builder IUL- Cash value accumulates faster with an option to waive surrender charge.
- Survivorship IUL- Great second to die policy used for estate planning and special needs trusts.
All of North American indexed universal life policies come with the critical and terminal illness riders at no extra cost.
To be honest, North American really doesn’t have any negatives that stand out. They have excellent customer service along with competitive rates, which makes them a great company to do business with.
Anytime you are shopping for life insurance it is always recommended to look at multlple companies. While North American is a great company with excellent ratings, they may not be the right fit for everybody. Rest assure that is they do fit that you are getting a solid financial company with a great reputation. If you have any questions please don’t hesitate to give us a call.