Introduction to North American
Short Answer: Yes—Founded in 1886, North American is one of the most enduring privately held insurance companies in the United States. As a member of the Sammons Financial Group, it operates with a long-term perspective, shielded from the short-term pressures of Wall Street. North American is a top-tier choice for retirees seeking high-liquidity annuities and robust life insurance solutions.
Company Overview
Choosing the right company is crucial when considering annuities or life insurance policies. North American Life Insurance Companies is a reputable option under the umbrella of Sammons Financial Group.
North American Life Insurance Ratings
- A.M. Best Rating: A+ (Superior)
- S&P Rating: A+ (Strong)
- Fitch Rating: A+ (Stable)
- Comdex Score: 89
Full List of Annuities Offered
North American offers a wide array of annuity products tailored to both accumulation and guaranteed income goals.
Core Annuity Products
- Fixed Annuities (MYGA): The Guarantee Choice series offers competitive, guaranteed interest rates for set periods of 3 to 10 years.
- Fixed Indexed Annuities (FIAs): Their flagship VersaChoice series is industry-renowned for its “Enhanced Liquidity” rider, which can allow for penalty-free withdrawals of up to 20% of the account value annually.
- Income-Focused Options: The NAC IncomeChoice provides a lifetime income guarantee for those prioritizing a predictable “paycheck” in retirement.
- Legacy Planning: Many North American products offer Enhanced Death Benefit riders, making them a preferred choice for those looking to maximize the inheritance left to beneficiaries.
Our Professional Opinion
North American is a great annuity company, and we like some of its products for guaranteed lifetime income and accumulation. We are selective, though: several contracts have fees, long commitments, or restrictions that make the details more important than the headline bonus.
North American Company for Life and Health Insurance has an A+ (Superior) rating from AM Best, comfortably above our A− minimum.
For lifetime income, we like that some riders offer contractually guaranteed growth while you wait to start withdrawals. Others depend more heavily on interest credits or require a long wait for an enhanced payout. Compare the actual guaranteed paycheck for your retirement date—not just the illustrated benefit value.
For accumulation, we like that some contracts lock their crediting terms for the selected period. However, one requires you to use a preset blend of indexes rather than putting all your indexed money in the traditional S&P 500. A rate lock is valuable, but the index choices and starting terms still need to be competitive.
What We Like
- Great financial strength: North American’s A+ rating exceeds our standard.
- Guaranteed income growth: Some riders provide a contractual roll-up before income begins.
- Locked crediting terms: Some accumulation annuities protect their rates for the selected term.
- Flexible liquidity options: Some contracts offer enhanced access, subject to rider costs and rules.
What We Don’t Like
- Long waits and commitments: Some benefits require many years before they are most useful.
- Fees and bonus recapture: A large bonus may come with charges or restrictions on early access.
- Limited MYGA liquidity: Some fixed annuities generally limit free withdrawals to interest.
- Restricted index choices: Some locked strategies require a blend that includes engineered indexes.
Explore our individual North American annuity reviews using the links below to see which products we like and which ones we would pass on.
Annuity Reviews
- North American Summit Edge Fixed Index
- NAC Guarantee Plus MYGA
- North American Income Pay Pro 10 Annuity
- North American Flexible Premium Deferred Annuity
- NAC VersaChoice 10 Fixed Index Annuity
- NAC BenefitSolutions 10 Annuity
- NAC Guaranteed Allocation Annuity
- North American Secure Horizon Annuity
Pros and Cons
The Pros
- Superior Financial Strength: Consistently ranked among the best-rated insurers in the U.S. (A+ Superior), providing high reliability for long-term contracts.
- Industry-Leading Liquidity: Unlike many competitors, North American offers an Enhanced Liquidity rider (on the VersaChoice series) that can allow for penalty-free withdrawals of up to 20% annually.
- Legacy & Estate Planning: Their annuities often feature robust Death Benefit riders, ensuring that your principal and growth are preserved for your beneficiaries.
- Living Benefits: Many contracts include Nursing Home waivers and assistance with Activities of Daily Living (ADLs), even within qualified retirement accounts.
- Principal Protection: Their fixed and indexed strategies ensure your initial investment is 100% protected from market downturns.
The Cons
- Renewal Rate Risk: Participation rates and caps are subject to change on your contract anniversary based on the prevailing interest rate environment.
- Agent-Dependent Experience: Products are only available through licensed independent agents; there is no direct online purchase option.
- Longer Commitment Periods: Most flagship products feature 10-year surrender schedules, which may not be ideal for those seeking short-term flexibility.
- Strategy Complexity: Many index options (like volatility-controlled indexes) are complex and may be difficult for the average investor to track compared to a simple S&P 500 cap.
Importance of Comparing Annuity Interest Rates and Income Payouts
The most overlooked step in annuity shopping is comparing rates. Here’s why it matters:
Fixed and MYGA Annuities
Each insurer sets its own interest rates for fixed annuities. Even a 0.25% difference in rate can result in thousands more in growth over the contract term.
- Tip: Always request current declared rates. These change frequently based on economic conditions.
Fixed Indexed Annuities
Credit rates, caps, spreads, and participation rates vary drastically across products and companies. Two FIAs may track the same index, but one might have far better growth potential depending on the insurer’s pricing.
- Compare index options: Some annuities only offer engineered indexes with no track record. Stick to transparent, traditional indexes like the S&P 500.
Guaranteed Income Riders (GLWBs)
If your goal is lifetime income, compare the income payout rates and deferral bonuses between products. North American often trails some top competitors in payout rates, even though they offer strong guarantees.
- Who needs to compare: Anyone using the annuity for retirement income must look at how much income each product can generate, especially at specific ages.
- Who doesn’t need to compare: If you’re only focused on growth and plan to take systematic withdrawals (not guaranteed), payout rates may be less important.
Compare Rates
Understanding Their Annuity Features
1-Year Fixed Account
Both companies offer a declared fixed interest rate option that resets annually. This provides stability for conservative investors who don’t want to tie their returns to an index.
Indexing Strategies
Most products offer a variety of indexes, though many are engineered or proprietary. The only traditional index they offer is the S&P 500. We don’t recommend newer, complex indexes without at least 10 years of performance history. You can’t predict what you can’t research.
GLWB Riders (Guaranteed Lifetime Withdrawal Benefit)
These riders are a core feature of their income-focused annuities.
- Your income base grows through a deferral period—either at a guaranteed rate or via index-based credits.
- Once you start income, you receive guaranteed payments for life—even if your account value hits zero.
- Income is revocable, not irreversible—you can turn off income and let the base grow again if you haven’t depleted the contract.
Liquidity Features
Most products allow 10% free withdrawals annually after the first year. Additional withdrawals beyond this amount may be subject to surrender charges and market value adjustments (MVAs) if applicable.
After the surrender period (usually 7 or 10 years), your contract is fully liquid. You can:
- Continue deferring and growing the contract
- Begin income payments
- Transfer to another annuity or financial product
Death Benefit
If you pass away, your beneficiaries will receive the full account value—regardless of market performance. If the contract has a GLWB rider and income has not started, the full benefit base may also pass on, depending on the product terms. Spousal continuation is available on most contracts.
Who Should Consider These Annuities
- Conservative retirees looking for a guaranteed income
- People without pensions who want to create their own lifetime income stream
- Clients who want protection from market losses but still want the potential for indexed growth
- Pre-retirees in their 50s and 60s who want to lock in future income now
Who Should Consider Other Options
- Investors who want aggressive market returns—FIAs limit your upside
- DIY investors who prefer fully online platforms with no agent involvement
- Shoppers focused purely on the highest payouts or rates—they are strong, but others may offer higher crediting or income in certain market environments
Bottom Line
Yes, North American is a reliable annuity provider. North American is best suited for consumers who value flexibility and accessibility. If you want a top-rated company that offers more ways to access your money without penalties, North American’s product lineup is difficult to beat.
Helpful Tip: If you’re looking at North American, ask to see Midland National’s options before you buy. You’ll likely get more value.
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