Traditional Fixed Annuities are Latest Addition to North American Product Portfolio
Chicago, IL | January 10, 2017
The brand new NAC FoundationChoicesm annuity from North American Company for Life and Health Insurance® has a three-year initial interest rate guarantee with annual rate declarations thereafter. The NAC FoundationChoicesm Plus annuity features an annual fixed interest rate declaration and offers two Guaranteed Lifetime Withdrawal Benefit options.
These are the highlights of what's being called the Foundation Series, the new series of traditional annuities from North American.
"Our agents have reported a strong demand for this kind of product, and we are happy to enhance our annuity portfolio with new products that will help serve consumers' needs," said Ann Hughes, vice president and chief distribution officer for Sammons Annuity Group.
Fixed annuities are appealing to investors because they offer a guaranteed minimum interest rate and tax-deferred growth. While the new Foundation Series includes some unique benefits, it still offers the traditional fixed annuity benefits of safety, stability and tax deferral.
"One fear that many retirees have is outliving their savings," said Hughes. "That makes the Foundation Series an option for those who are looking for a dependable flow of lifetime income in their retirement income planning. In addition, this series of annuities gives consumers the flexibility to withdraw money from their contracts without penalties, making it an even more attractive approach for financial protection."
ABOUT NORTH AMERICAN COMPANY
Products issued by North American Company for Life and Health Insurance®, West Des Moines, Iowa. Product features, riders and index options may not be available in all states or appropriate for all clients. See product brochures, disclosures and state availability chart for further details, limitations and information on appropriate state variations.
The NAC FoundationChoiceSM is issued on form NA1010A/ICC16-NA1010A.MVA (contract), ICC15-AE579B/AE579B, ICC15-AE577A/AE577A and ICC15-AE587A/AE587A (riders/endorsements).
The NAC FoundationChoiceSM Plus is issued on form NA1010A/ICC16-NA1010A.MVA (contract), ICC16-AE601A.OPT/AE601A.OPT, ICC16-AE602A/AE602A, ICC15-AE579B/AE579B, ICC15-AE577A/AE577A, and ICC15-AE587A/AE587A (riders/endorsements).
"Income” or "lifetime income” refers to guaranteed payment of Lifetime Payment Amounts (“LPAs”) through the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. 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.
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. Please note that neither North American, nor any agents acting on its behalf, should be viewed as providing legal, tax or investment advice. Your client should be advised to rely on their own qualified adviser.