North American Launches Income Pay Pro Fixed Index Annuity

New annuity focused on guaranteed income to last a lifetime

With many people concerned about planning for income in retirement, North American Company for Life and Health Insurance® has introduced a new fixed index annuity (FIA) designed to deliver a guaranteed lifetime income stream. The Income Pay ProSM is a modified single premium FIA with an embedded guaranteed lifetime withdrawal benefit (GLWB) rider1 offering guaranteed lifetime income2.

“The three-legged stool of savings, social security, and pension income is a bit wobbly today,” said Bryce Biklen, North American’s chief distribution officer. “With the disappearance of pension plans, and potential uncertainty in the future for Social Security – plus inflation and a volatile economy – our clients need to protect their retirement nest eggs.”

Income Pay Pro offers Lifetime Payment Amounts, or LPAs, for as long as the client or, if applicable, their joint annuitant lives. This flexible FIA is a financial solution offering a fixed account and a variety of index account options from strong financial brands. In a market downturn, premium is protected from potential losses and when the market is up, the Income Pay Pro generates interest credits based on the performance of these indices.

“It’s a retirement ‘paycheck’ that lasts a lifetime. While you are working hard to save money for retirement, the Income Pay Pro fixed index annuity is too,” said Biklen.

The Income Pay Pro offers a GLWB rider, which is common in many fixed index annuities. However, the Income Pay Pro’s GLWB value initially equals 100% of premium3 and increases by a set percent roll-up rate compounded for up to ten years or until the lifetime payment election date, if earlier. The roll-up rate is a guaranteed rate applied only to the GLWB value that compounds annually during the roll-up period4, providing growth potential even if a penalty-free withdrawal is taken. However, if the LPA is started during the initial ten-year period, the roll-up rate will no longer be applied in following years.

The Lifetime Payment Amount is then calculated by multiplying the current GLWB value by the lifetime payment percentage5 based on the client’s age. Once payments begin, the owner can receive them for life, even if the accumulation value or GLWB value is reduced to zero along the way.

“This FIA adapts to changing retirement plans. The GLWB rider offers the ability to select level or increasing lifetime payments when LPAs are started. In addition, the LPA reserve6 feature allows the flexibility to customize LPAs to fit personal goals,” said Biklen. “This is important so you can be guaranteed to have access to cash when you need it most.”

While nobody likes to think about it, the potential cost of nursing home care can take a substantial bite out of retirement savings. This, in turn, can have a negative effect on ongoing retirement income. Another key benefit is the Nursing Home Multiplier7 to be used in the event the client requires an extended stay in a qualified care center. If the client meets qualifications, this feature allows the client to double their LPA when they need it most.

About North American Company for Life and Health Insurance

North American Company for Life and Health Insurance®is a member ofSammons® 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.* For more information, please visit here

*Source: Secure Retirement Institute U.S. Individual Annuity Industry Sales Report (LL Global Inc.)


1. The embedded guaranteed lifetime withdrawal benefit (GLWB) rider includes a rider charge of 1.15% of the GLWB value, deducted as a partial surrender from the accumulation value on the contract anniversary, while the rider is in effect.

2. Lifetime income refers to guaranteed payment of Lifetime Payment Amounts (LPAs) as defined in the GLWB Rider included in the contract. It does not refer to interest credited to the contract. Clients should consult with their own tax advisor regarding tax treatment of LPAs, which will vary according to individual circumstances.

3. The modified single premium period is from the issue date until the earlier of the Lifetime Payment Election Date or the end of the first Contract year.

4. Also referred to as the GLWB value increase period. An excess withdrawal would disqualify the GLWB value from a roll-up for that contract year. GLWB value is not the same as the accumulation value and is not available as a lump sum and is not available as a death benefit.

5. The lifetime payment percentages (LPPs) are based on the attained age of the covered person or persons, the LPA option elected – level or increasing, and if they are joint versus single covered persons. For joint covered persons LPPs are based on the youngest covered person.

6. The LPA reserve is subject to a maximum LPA reserve and is not available after the maturity date. See product disclosure for further details and limitations.

7. The Nursing Home Multiplier (known as the LPA Multiplier Benefit in the contract) requires a 2-year minimum wait period and can be paid out for a maximum of five annual payments as long as the client continues to meet the requirements on each payment. Confirmation that the client continues to meet the requirements will be required on an annual basis. See the contract for complete details.


The Income Pay ProSM 10 is issued on contract form NA1012A/ICC17-NA1012A.MVA, or appropriate state variations are issued by North American Company for Life and Health Insurance®, West Des Moines, Iowa. Product and features/options may not be available in all states or appropriate for all clients. See product materials for further details, specific features/options, and limitations by product and state.

For purposes of this product, “Income” refers to the contractual guarantee provided by election of lifetime payment amounts (LPAs). It is not the same as and does not refer to interest credited to the annuity contract. Consult your own tax advisor regarding tax treatment of LPAs, which will vary according to your individual circumstances. Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

Neither North American, nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Consult with and rely on a qualified advisor. Under current law, annuities grow tax deferred. Annuities may be subject to taxation during the income or withdrawal phase. The tax-deferred feature is not necessary for a tax-qualified plan. In such instances, you should consider whether other features, such as the Death Benefit, lifetime annuity payments, and any other features make the Contract appropriate for your needs.

Withdrawals taken prior to age 59 1/2 may be subject to IRS penalties.