West Des Moines, Iowa, May 24, 2021
North American Company for Life and Health Insurance® (North American) now offers an indexed universal life (IUL) insurance product that provides the death benefit protection only life insurance can offer, while accumulating potential long-term cash value for other purposes including to help supplement retirement income. Builder Plus IUL 3 is a new addition to North American’s innovative IUL portfolio.
“Earning and growing cash value is critical as so often clients purchase protection years – or even decades – before they may need to help supplement their retirement income. In this case, time is literally money,” said Jerry Blair, North American, chief distribution officer. “This policy meets a growing consumer need – how to protect your family while also having the ability to accumulate cash value or tax advantages for your overall financial portfolio.”
This IUL insurance product helps clients seeking to plan for their financial future. Builder Plus IUL 3 is ideal for those:
in need of death benefit protection
concerned about their family’s financial needs if death occurs during working years
that have maximized 401(k) or Individual Retirement Account savings plans – or who may not qualify for an IRA
that have a high income, a large amount of assets to protect, or both
who seek the opportunity to mitigate tax implications on future retirement funds
“This product is designed to be competitive in how it offers future potential supplemental income streams,” said Blair. “That’s often necessary as policyowners face retirement. It also helps make this product to stand out in a crowded marketplace.”
The new IUL includes the Fidelity Multifactor Yield IndexSM 5% ER option which, as part of its strategy, seeks to reduce volatility. The Fidelity index is exclusive to North American1, and currently has a 125% participation rate, no cap, a 1.65 percent non-guaranteed bonus starting in its first year, and a 2.65 percent non-guaranteed bonus in year 11 and beyond with rates subject to change.
Builder Plus IUL 3 offers a Fixed Interest Participating Policy Loan2 that uses a declared interest rate and participates in the index account. Available in the first year of the policy, the loan currently receives a 2 percent interest bonus, but is not eligible for any other interest bonuses. This type of loan may allow for better management of cash value and offer an opportunity for improved financial performance.
In addition, clients can access a portion of the policy’s death benefit while living through accelerated death benefits, if diagnosed with a qualifying illness.
To simplify the application process, Builder Plus IUL 3 is available with accelerated underwriting and the possibility of no lab tests or exams, an online application, and eSignature options if a face-to-face agent meeting is not possible or preferred.
About North American Company for Life and Health Insurance
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 10 largest writers of fixed index annuities in the U.S. (Source: WINK Sales & Market Reports and LIMRA Secure Retirement Institute). For more information, please visit here.
1.Exclusive to North American as part of Sammons Financial Group. North American has licensed the Fidelity Multifactor Yield Index 5% ER for exclusive use on its IUL products.
2.The net cost of a Fixed Interest Participating Policy Loan could be negative if the credits earned are less than the interest charged. The net cost of the loan could also be larger than under standard policy loans if the amount credited is less than the interest charged. In the extreme example, the amount credited could be zero and the net cost of the loan would equal the maximum interest rate charged less any guaranteed bonus. In brief, fixed interest rate loans have more uncertainty than standard policy loans in the interest rate credited.
The Fidelity Multifactor Yield Index 5% ER (the “Index”) is a multi-asset index, offering exposure to companies with attractive valuations, high quality profiles, positive momentum signals, lower volatility and higher dividend yield than the broader market, as well as U.S. treasuries, which may reduce volatility over time. Fidelity and its related marks are service marks of FMR LLC. Fidelity Product Services LLC (“FPS”) has licensed this index for use for certain purposes to North American Company for Life and Health Insurance® (the “Company”) on behalf of the Product. The Index is the exclusive property of FPS and is made and compiled without regard to the needs, including, but not limited to, the suitability needs, of the Company, the Product, or owners of the Product. The Product is not sold, sponsored, endorsed or promoted by FPS or any other party involved in, or related to, making or compiling the Index. The Company exercises sole discretion in determining whether and how the Product will be linked to the value of the Index. FPS does not provide investment advice to owners of the Product, nor to any other person or entity with respect to the Index and in no event shall any Product contract owner be deemed to be a client of FPS.
Neither FPS nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the Product. Neither FPS nor any other party involved in, or related to, making or compiling the Index makes any representation regarding the Index, Index information, performance, annuities generally or the Product particularly.
Fidelity Product Services LLC disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. Fidelity Product Services LLC shall have no responsibility or liability whatsoever with respect to the Product.
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.
Builder Plus IUL® 3 is issued on policy form series LS191 or state version including all applicable endorsements and riders, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products, features, riders, endorsements, or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply.