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  • Written by Anna Baluch
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    Michael Santiago, CRPC™
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    Michael Santiago, CRPC™

    Senior Financial Editor

    Michael Santiago, a senior financial editor, joined RetireGuide in 2023. With over 10 years of professional writing and editing experience, he brings a wealth of expertise in creating content for diverse industries, including travel and healthcare. Having traveled to more than 40 countries across five continents and lived in Europe and Asia for several years, Michael's global perspective enriches his work. He combines his strong writing skills, editorial judgment and passion for crafting accurate and engrossing content to enhance the user experience on RetireGuide.

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  • Published: October 11, 2024
  • Updated: October 23, 2024
  • 7 min read time
  • This page features 8 Cited Research Articles
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APA Baluch, A. (2024, October 23). North American at a Glance: Rates, Products and Reviews. RetireGuide.com. Retrieved November 11, 2024, from https://www.retireguide.com/annuities/companies/north-american/

MLA Baluch, Anna. "North American at a Glance: Rates, Products and Reviews." RetireGuide.com, 23 Oct 2024, https://www.retireguide.com/annuities/companies/north-american/.

Chicago Baluch, Anna. "North American at a Glance: Rates, Products and Reviews." RetireGuide.com. Last modified October 23, 2024. https://www.retireguide.com/annuities/companies/north-american/.

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Key Principles

RetireGuide’s mission is to provide seniors with resources that will help them reach important financial decisions that affect their retirement. Our goal is to arm our readers with knowledge that will lead to a healthy and financially sound retirement.

We’re dedicated to providing thoroughly researched annuity information that guides you toward making the best possible financial decisions for you and your family.

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Key Takeaways
  • Since 1886, North American has served customers throughout the U.S. with various fixed annuities.
  • With North American’s unique rider options, you can customize your annuity to meet your needs and preferences.
  • North American’s annuities are flexible as you can choose from several payouts, including period certain only, life only, installment refund and cash refund.

Company Overview

Owned by Sammons Financial Group (SFG), North American is an Iowa-based company with roots dating back to 1886. It offers several annuity options, including fixed index annuities (FIAs), multi-year guaranteed annuities (MYGAs) and single premium immediate annuities (SPIAs).

Annuity Products Offered by North American

North American currently serves customers with three types of annuities: fixed index annuities (FIAs), multi-year guarantee annuities (MYGAs) and single premium immediate annuities (SPIAs).

Fixed Index Annuities

The company’s fixed index annuities are known as the ​​NAC Guarantee Plus Series. These products are available for three or five years and guarantee a fixed interest rate. While the minimum deposit is $20,000, you can secure a higher interest rate if you deposit $100,000 or more.

There are no caps on North American fixed index annuities. Note that you can withdraw from your account without a penalty after the first anniversary of your contract. However, you will owe a surrender charge if your withdrawal exceeds the interest earned in a year.

Single Premium Immediate Annuities

North American’s immediate annuities, which are referred to as North American Income, might be worthwhile if you want income right away. They’re available with one premium purchase of at least $25,000, and you can choose how you’d like to receive your income. Three payout options available are period certain only, single life with installment refund and joint life with survivorship.

Payout Options
Period Certain Only
With a period certain only payout option, you’ll receive income for a fixed number of years (ranging from five to 20 years). If you pass away before the end of the period, the payments will continue to your heirs.
Single Life With Installment Refund
If you choose the single life with installment refund payout option, you’ll receive payments for as long as you live. After you pass away, they’ll continue until they equate to the premium you paid originally.
Joint Life With Survivorship
With the joint life with survivorship payout option, you’ll receive income as long as you and your spouse live. After you pass away, the payments will continue for the rest of the surviving spouse’s life.

Multi-Year Guaranteed Annuities

North American Guarantee Choice is one example of North American’s MYGAs. With these products, you can enjoy tax-deferred growth, guaranteed lifetime income and a death benefit for your beneficiaries. You may choose from eight terms: three, four, five, six, seven, eight, nine and 10 years. In addition, there are several types of payouts and the option to take penalty-free withdrawals that equal the interest earned each year after the contract’s first year.

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Features and Benefits

North American offers a number of annuity products with varying options for returns, income and benefits. You can select the ideal ones for your unique retirement and future goals. If you have a large sum of money to deposit, such as $100,000 or more, you’ll qualify for the most competitive interest rates.

In addition, the company offers a number of riders that allow for higher guaranteed lifetime income, funds for nursing home care and a more substantial death benefit. With some of its products, collecting an upfront premium bonus is an option. To add, in many situations, you may access some of your funds early without paying a penalty.

Current Rates and Performance

The performance of North American’s annuities is correlated to their interest rates. If you’re interested in these products, you should contact the company directly to request the most up-to-date information. Upon finding the most up-to-date information on interest rates and performance guarantees, you can make the most informed decisions.

Financial Strength and Stability

North American, part of Sammons Financial Group, is recognized for its robust financial strength and stability. With a solid track record and strong ratings from independent agencies, the company prioritizes the long-term security of its policyholders. This commitment to financial integrity ensures peace of mind for customers investing in their future.

Credit Ratings

Credit ratings indicate a company’s financial strength and stability. AM Best, S&P and Fitch, three of the biggest credit rating agencies, rate North American well, with A+ across the board. While other, more established insurance companies may have slightly higher rankings, these scores can give annuity borrowers peace of mind that they will receive their payments.

North American Credit Ratings
Rating CompanyCredit Rating
AM BestA+
S&PA+
FitchA+

Company Stability

North American has been around for over 100 years. As of December 2022, the company has had more than 450,000 life insurance policies and over 200,000 annuities policies in place. North American’s longstanding history in the insurance industry reflects its solid commitment to its customers. Since it is part of the larger Sammons Financial Group (SFG), it has the financial backing that’s important to look for when buying annuities and other related products.

Customer Experience and Satisfaction

The National Association of Insurance Commissioners (NAIC) Complaint Index measures client satisfaction in the insurance and annuity industries through a yearly report on all companies. It compares each company’s complaints against the rest of the industry. North American scored 0.46, which means the company receives fewer complaints than the industry average for all types of insurance policies and individual annuities.

North American’s Complaint Score
Complaint Score
All Policy Types0.07
Individual Annuities0.46

Surprisingly, North American is not included in the 2022 or 2023 versions of the J.D. Power Overall Customer Satisfaction Index studies. However, this does not reflect North American’s customer service.

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Pros and Cons of North American Annuities

When considering annuities from North American, it’s essential to weigh the pros and cons to determine if they align with your financial goals. Known for its strong financial stability and customer satisfaction, North American offers a range of annuity products. However, like any investment, there are both advantages and potential drawbacks to keep in mind.

Advantages
  • Financial Stability: North American has strong financial strength ratings with A.M. Best and other reputable organizations.
  • Wide Product Selection: Three flexible annuity options allow you to customize the products to best meet your unique needs and preferences.
  • Optional Riders and Extra Perks: Some North American annuities come with riders that offer additional benefits, such as funds for nursing home care and a larger death benefit.
Disadvantages
  • Lack of Product Information: North American’s website has limited information, meaning you may need to reach out to the company directly for further details on its annuities and other products.
  • No Variable Annuities: Unlike other annuity providers, North American limits its product offerings to fixed index annuities, multi-year guaranteed annuities (MYGAs) and single premium immediate annuities (SPIAs).
  • Large Deposits Required for Best Rates: To lock in the most competitive rates for North American’s annuities, you must deposit at least $75,000 to $100,000.

North American is a stable company with an excellent reputation in the annuity industry. While it offers fewer products than other large insurance companies and product selection varies by state, its multiple payout options and riders allow customers to customize their annuities. As an added bonus, some of its annuities come with penalty-free access, meaning you may be able to retrieve some of your money before the term ends.

Frequently Asked Questions About North American Annuities

How many types of annuities does North American offer?
North American has three types of annuities including fixed index annuities (FIAs), multi-year guarantee annuities (MYGAs) and single premium immediate annuities (SPIAs). Riders are available for additional benefits and each annuity comes in various terms.
Will I be able to access funds early with annuities from North American?
Yes, depending on the annuities you choose, you may be able to withdraw funds early without facing a penalty. Liquidity may also be an option in the event of an extended nursing home stay or serious health crisis.
How old do I have to be to buy North American annuities?
The age requirements for North American vary by product. However, most annuities are available to investors between the ages of 40 and 80 years old.

Editor Norah Layne contributed to this article.

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Last Modified: October 23, 2024

8 Cited Research Articles

  1. J.D. Power. (2023, October 12). Satisfaction with Life Insurance and Annuity Products Climbs as Customers Embrace Digital, J.D. Power Finds. Retrieved from https://www.jdpower.com/business/press-releases/2023-us-individual-life-insurance-annuity-studies
  2. National Association of Insurance Commissioners. (n.d.). North American. Ins Co National Complaint Index Report. Retrieved from https://content.naic.org/cis_refined_results
  3. North American. (n.d.). Choose North American. Retrieved from https://www.northamericancompany.com/why-choose-north-american
  4. North American. (n.d.). Explore Your North American Annuity Options. Retrieved from https://www.northamericancompany.com/explore-annuities
  5. North American. (n.d). NAC Guarantee Plus SM. Retrieved from https://www.northamericancompany.com/documents/35445/36910/33779Z-B.pdf/05ba9225-06c2-f3e3-c1ca-5a5c59b91a5e
  6. North American. (n.d). North American Guarantee Choice. Retrieved from https://www.northamericancompany.com/documents/35457/1144491/19734Z-TX.pdf/10bd414d-4972-4cb7-814b-4d994e34366d?version=1.0
  7. North American. (n.d). North American Income. Retrieved from https://www.northamericancompany.com/documents/35445/8312582/28806Z/0fcb870d-63b5-8e2b-be6b-8b1cd98e36a2