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About North American
North American Company for Life and Health Insurance is a subsidiary of Sammons Financial Group. Known for a deep portfolio of fixed indexed annuities spanning accumulation, income, and principal-protection strategies, North American offers broad index crediting menus and meaningful rider options. The carrier's A+ A.M. Best rating reflects strong financial stability, making it a credible choice for long-duration contracts.
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How we scored them
Income Options85/100
Financial Strength94/100
Fees & Costs80/100
Flexibility78/100
Customer Service83/100
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The tradeoffs
What works
- Excellent A+ A.M. Best financial strength rating
- Deep FIA product portfolio with multiple tenure bands (3-14 years)
- Generous premium bonuses on accumulation products (up to 10%)
- Built-in income riders with compounded roll-ups on income products (8% annually)
- Nursing home waivers and care accelerators built into many products
What to watch
- Long surrender periods (10-14 years on flagship accumulation products)
- Market Value Adjustments add interest-rate risk on early exits
- Income rider fees (1.15-1.20%) apply whether or not income is activated
- Not available in New York; limited availability in some states
- Proprietary index strategies carry less transparent track records than benchmarks
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What you could receive
Estimated guaranteed lifetime income based on a single premium payment. Actual rates may vary.
| Investment | Age | Monthly | Annual | Guarantee |
|---|---|---|---|---|
| $100,000 | 60 | $515 | $6,180 | Lifetime |
| $250,000 | 65 | $1,425 | $17,100 | Lifetime |
| $500,000 | 65 | $2,850 | $34,200 | Lifetime |
| $1,000,000 | 70 | $6,450 | $77,400 | Lifetime |
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Fee schedule
| Fee type | Amount | Description |
|---|---|---|
| Annual Contract Fee | $0 | No annual maintenance fee on base contracts |
| Income Rider Fee | 1.15-1.20% | Annual fee on income rider value; applies whether or not income is activated |
| Surrender Charge | Varies by product | Declining schedule over 5-14 year periods; MVA applies during surrender window |
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Early withdrawal penalties
Charges apply to amounts above the annual free withdrawal (typically 10%).
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|
| 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% |
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Best fit for these buyers
Accumulators seeking long-term growth with principal protection and broad index options
Income-focused retirees valuing built-in lifetime income guarantees with care protections
Buyers comfortable with 5-10+ year commitments in exchange for strong carrier backing
Ages 50-75 planning retirement income or long-horizon accumulation
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Frequently asked questions
Is North American a good annuity company?
North American earns an average rating of 4.0/5 across the 26 products we've reviewed, with an AM Best rating of A+ and S&P rating of A. Their financial strength is rated "Excellent" with $120+ Billion in total assets. North American is particularly strong in financial strength.
How much income can I get from a North American annuity?
Income depends on your investment amount and age. For example, a $500,000 investment at age 65 could generate approximately $34,200 per year in guaranteed lifetime income. A $250,000 investment at the same age could generate about $17,100 per year.
What are the fees for North American annuities?
North American charges Annual Contract Fee: $0, Income Rider Fee: 1.15-1.20%, Surrender Charge: Varies by product. Notably, there is no annual contract fee on the base contract, which is a competitive advantage.
What is the surrender period for North American annuities?
North American annuities typically have a 10-year surrender period. Charges start at 10% in year one and decline to 1% in the final year. Most products allow 10% annual free withdrawals without penalty.