When researching any life insurance carrier, several considerations are essential to search for. One of these considerations is figuring out that you will have an adequate amount of protection because you don’t want surviving loved ones to be lacking the resources that are necessary to go on.
Additionally, you’ll want to make certain that you select the right kind of life insurance policy for your circumstances. Right now, there are many different types of coverage – so making sure that you select the right company and product is essential.
The company’s financial strength and stability can also indicate how they pay out claims. Moreover, this can help you obtain peace of mind in knowing that your beneficiary will receive the death benefit when the time comes to file a claim.
North American Life Insurance
One Sammons Plaza
Sioux Falls, SD 57193
About North American Company for Life and Health Insurance
Established in 1886, North American has remained steadfast to safeguard the futures of those who rely on them for financial reliability. In the course of two world wars, the Depression, and several recessions, North American’s non-public ownership and attention to the long term has instilled confidence and trust in individuals and families who depend on the company. At present, with nearly 125 years in the marketplace, North American maintains over $9.1 billion in assets.
Certainly, it’s essential to have a financially steadfast insurance company on your side. A major part of what enables North American to sustain its financial durability is the security that comes with its distinctive ownership.
While being part of a privately held organization, North American is not affected by short-term earnings demands that publicly held organizations face. It is an insurance company with a strategy to perpetuate itself for many decades, not just the next quarter or fiscal year. North American stays focused on the long term.
North American’s asset quality is exceptional and its net investment income delivers sufficient margins to manage contractual obligations to all of the company’s policyholders.
North American’s Financial Ratings
North American is one of the top-rated insurance providers in the country today. Given below are its current ratings.
- A.M. Best: A+ (Superior)
- Standard & Poor’s: A+ (Strong)
- Fitch: A+ (Stable)
- Comdex: 92
- Source for ratings
North American enjoys over $27 billion in assets and services over 615,000 life insurance and annuity policies. In 2018, it disbursed over $431 million in death benefits to its policyholders’ beneficiaries.
Stats from the National Association of Insurance Commissioners (NAIC) reveals that 95% of the insurance carrier’s bond investments are considered investment grade, which demonstrates sensible investment management.
North American Life Insurance Company is one of the healthiest insurance companies in terms of financial scores. This is exactly what you need when loved ones depend on your life insurance coverage.
Term Life Insurance
North American provides traditional term insurance that can take the place of your income if you die and provide for your family’s financial needs. Similar to all term life insurance, the coverage will last for a set amount of time that you choose when you apply for coverage.
The policy offers a level premium and a level death benefit. This means your premium and the death benefit will remain unchanged for the duration of the policy term.
Additionally, North American term policies include an accelerated death benefit rider. The accelerated death benefit provides for the insurance company to advance the insured a large portion of the death benefit if an illness, which is considered critical or terminal is diagnosed by a physician.
North American Universal Life Insurance
Universal life insurance is flexible and designed to accumulate cash value during the entire policy period. The growth rate of the cash value account is based on the interest rate paid by the insurer.
Your interest rate is determined by the company using several aspects and declared regularly. However, the policy contains a minimum guaranteed interest rate, that the insurance company will pay regardless of its investment performance or other considerations.
With each periodic premium you pay, the cash value account increases in value and will continue to accumulate tax-deferred interest for the duration of the policy.
Whenever your insurance policy has accumulated sufficient cash value, the policyholder can access it either by taking partial withdrawals or by using low-interest loans from the insurance company.
It’s important to remember that the policy loan needs to be repaid with interest to avoid a lapse in coverage, but it’s not mandatory as long as you have sufficient funds in the cash account.
Any outstanding loans and interest will be deducted from the death benefit if you should die while a policy loan is outstanding.
Guaranteed Universal Life Insurance from North American
This type of Universal Life Insurance policy which provides guaranteed life insurance coverage until age 120. You can, however, stop paying the premiums when you turn 100 or when there is sufficient cash value to keep the policy in force.
In contrast to traditional universal life insurance, this policy will not offer a choice of the amount premium that must be paid. The premium is established by the insurance company when the policy is issued and remains the same until your death.
Guaranteed Universal Life (GUL) provides a guaranteed death benefit that is paid tax-free to your beneficiary when you die. There is a cash value account as well, which increases at a steady rate and can be used as an emergency fund or any other reason.
North American Indexed Universal Life Insurance
Indexed Universal Life not only provides a death benefit but also features a more substantial growth potential when compared to traditional universal life insurance.
The cash value component is linked to one or more market indexes, which means that its growth rate is dependent entirely on the performance of the index or indices that your account is linked to. If the market is trending up, you can anticipate rapid cash value accumulation, however,
the policy will contain a cap or maximum limit on the amount of interest that can be credited to your cash account. Even with the interest capped, the earnings potential is much greater than a traditional universal life policy.
Moreover, North American also safeguards your cash account from volatile market risks by issuing a floor rate that prevents the account from losses.
This means that even when there is a market downturn, the interest credited to the cash account will never be lower than zero. It eradicates the risk of negative earnings as well as the possibility of losing money in your cash account.
The Cap and Floor rates are two main reasons why most people, especially those who have a low appetite for risk, opt for an indexed universal life policy over a variable policy.
A variable universal life policy offers almost limitless growth potential, but there is no risk protection for your investment. On the other hand, an indexed policy allows you to reap the benefit of a bull market and shields you from the negative outcomes of a bear market.