The PrimePath 12 flexible premium, fixed index annuity is a 12- year retirement savings plan that offers growth potential for your retirement assets while providing protection from downside market downturns, as well as flexible options for taking lifetime income.
Benefits and Features
Growth
Fixed and index account options offer upside potential without downside market risk to the money you worked so hard to save throughout your career.
And to help along your path to retirement, PrimePath 12 also provides opportunities to receive bonuses to certain contract values to help you reach your goals.
Pick From a Wide Variety of Index Options
S&P 500 Index (SPX)
Widely regarded as the best single gauge of the large-cap U.S. equities market since the index was first published in 1957.
The index includes 500 leading companies in leading industries of the U.S. economy.
S&P Multi-Asset Risk Control 5% Excess Return Index (SPMARC5P) S&P MARC 5% ER
The S&P MARC 5% ER Index is a multi-asset excess return index that strives to create more stable index performance through diversification, an excess return methodology, and volatility management.
The index manages volatility by adjusting the allocations among multiple asset classes and by allocating to cash in certain market environments.
The Index is managed to a 5% volatility level.
S&P 500 Low Volatility Daily Risk Control 5% Index (SPLV5UT)
Strives to create stable performance through managing volatility (i.e. risk control) on the S&P 500 Low Volatility Index.
The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500.
The index adds an element of risk control by allocating between stocks, as represented by the S&P 500 Low Volatility Index, and cash.
This index is managed to a 5% volatility control.
S&P 500 Low Volatility Daily Risk Control 8% Index (SPLV8UT)
The S&P 500 Low Volatility Daily Risk Control 8% Index strives to create stable performance through managing volatility (i.e. risk control) on the S&P 500 Low Volatility Index.
The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500.
The index adds an element of risk control by applying rules to allocate between stocks, as represented by the S&P 500 Low Volatility Index, and cash.
The Index is managed to an 8% volatility level.
Lock-in interest credits
One advantage of fixed index annuities is a reset feature, which applies to this annuity no matter which crediting method you choose.
For the Two-Year Point-to-Point option, this reset happens at the end of each two-year term.
Once credits are added, they’re locked in.
That means they can’t be taken away due to negative index performance.
Also at that point, it’s added to your accumulation value, giving you the advantage of compounding interest in subsequent years.
By resetting your starting index value at the same time, this feature can help minimize your risk when the index experiences a severe downturn.
Without it, you’d have to wait for the index value to climb up to its original level before any interest credit could be realized.
Retirement income
North American’s PrimePath 12 provides multiple options for taking retirement income.
So you’re in the driver’s seat in determining how and when you start receiving payments.
Outliving income in retirement has become a concern for many retiring consumers.
PrimePath 12 can provide confidence that it will be there to provide the income you can’t outlive and to provide for the possibility of increased payments over time.
Lifetime payment amounts
After your 50th birthday, the PrimePath 12 fixed index annuity provides you two choices for taking lifetime payments.
- Level lifetime payments
This option provides a level payment amount for either the rest of your lifetime or the joint lifetime of you and your spouse. Any excess withdrawals that you may choose to take from your PrimePath 12 annuity’s accumulation value will reduce your future lifetime payments by a proportional amount. - Increasing lifetime payments
This option starts at a lower initial payment amount than the level payment option but has the possibility of increasing each year, based on the average interest credited to your fixed and index accounts.
Liquidity options
If you need access to your money, PrimePath 12 has different liquidity provisions that can help you when you need it most.
Death benefit
PrimePath 12 has death benefit provisions so you may be able to leave something for your loved ones.
North American Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Tax deferral
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be paid in taxes. If your premium earns interest, the interest compounds within the contract and the money you would have paid in taxes earns interest as well.
Under current law, annuities grow tax-deferred.
An annuity is not required for tax deferral in qualified plans.
Annuities may be subject to taxation during the income or withdrawal phase.
May avoid probate
By naming a beneficiary, you typically minimize the delays, expense, and publicity often associated with probate.
Please consult with and rely on your own legal or tax advisor.
