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North American Company for Life and Health Insurance® Launches New Premium Deposit Agreement (PDA) for Single Life Indexed Universal Life Insurance Products

Chicago | Sept. 25, 2018

North American Company for Life and Health Insurance® launched a new Premium Deposit Agreement (Agreement) for most single life Indexed Universal Life products. The new feature allows the policyowner to submit a lump sum and creates a Premium Deposit Account (PDA) for the purpose of automatically funding future annual premium payments on the policy. This provides many potential benefits including worry-free premium payments, opportunity for growth, and helping avoid creating a Modified Endowment Contract (MEC)1.

The PDA will automatically pay the policyowner’s annual premium payments, so they don’t have to worry about making future payments (as long as there are sufficient funds in the PDA).

A competitive interest rate of 3.25% (subject to change in the future) is applied to the funds taken from the PDA before it’s used to pay the premium. Therefore, more money is put into the life insurance policy, so the policyowner may have a larger death benefit, and larger cash value potential. There are zero costs to establish and maintain the Agreement.

"We are excited to offer the Premium Deposit Agreement,” said Garth Garlock, North American Company’s senior vice president and chief distribution officer. “Being able to overcome annual premium limits by accepting up to ten times the annual planned premium is one of the significant benefits of the new feature. We are optimistic that new policyowners will take advantage of the PDA’s 3.25% interest rate as well as the other features.”

All single life Indexed Universal products with the exception of the Legacy Optimizer include the Premium Deposit Agreement feature. This applies to all states except Alaska, Illinois, Kansas, New Hampshire, Oregon, and Pennsylvania.

About North American Company

North American Company for Life and Health Insurance®  is a member of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the U.S. We offer a comprehensive portfolio of term, universal life, and indexed universal life insurance products. North American also offers a wide variety of traditional fixed and fixed index annuities and consistently ranks among the top fixed index annuity carriers in the U.S. (Source: Wink Sales & Market Report, 2017). For more information, please visit

Sammons® Financial Group is comprised of Midland National® Life Insurance Company, North American Company for Life and Health Insurance®, Sammons Retirement Solutions® Inc. and Sammons Financial Network® LLC, member FINRA.

1. For most policies, withdrawals are free from federal income tax to the extent of the investment in the contract, and policy loans are also tax-free so long as the policy does not terminate before the death of the insured.  However, if the policy is a Modified Endowment Contract (MEC), a withdrawal or policy loan may be taxable upon receipt.  Further, unpaid loan interest on a MEC may be taxable.  A MEC is a contract received in exchange for a MEC or for which premiums paid during a seven-year testing period exceed prescribed premium limits (7-pay premiums).

Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

Legacy Optimizer (policy form series LS180), Premium Deposit Agreement (form series LR509) are issued by North American, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products, features, riders, endorsements, or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply.  North American is not licensed to write in New York.