Why it earned this rating
Our assessment
North American Max Elite Guarantee 3-Year is a clean, no-frills MYGA from an A+ carrier with competitive tiered rates and a useful nursing home waiver that adds meaningful flexibility. It earns a Good Option rating because the rate structure and carrier quality are solid, but the combination of MVA exposure and a 9% first-year surrender charge tempers the score — the short commitment cuts both ways.
The short version
This is a 3-year guaranteed-rate annuity for people who want a CD-like commitment with tax deferral and a slightly better yield, backed by one of the higher-rated insurers in the business. The pitch is straightforward: lock in a rate for three years, earn it without drama, and roll out or move on. The MVA is the main wrinkle — it means that if rates rise and you exit early, the penalty can be larger than just the stated surrender charge.
Key facts
The full review
Is North American Max Elite Guarantee 3-Year a Good Annuity?
Yes, for the right buyer. If you want a short-term, guaranteed-rate contract from a financially strong carrier and you will not need to touch the money during the three-year term, this is a solid choice. It is less appealing if you want index-linked upside, lifetime income features, or flexibility to exit without penalty before the guarantee period ends.
Why Someone Would Buy This Annuity
The rational case for this product is straightforward: competitive guaranteed rates, a short commitment window, and a strong carrier. Someone rolling over a maturing CD or a prior fixed annuity who wants to stay in safe, guaranteed territory — and wants to do it with a carrier rated A+ by A.M. Best — would find this worth a look. The nursing home waiver adds a practical layer of protection for buyers who are older or already in declining health.
Who This Annuity Is Best For
I think this product is best suited for retirees or near-retirees in their 60s or 70s who are parking conservative dollars for three years and do not want the complexity of an FIA or the long-term commitment of a 7-10 year MYGA. It also works well for buyers with some health concerns who value the nursing home confinement waiver as a liquidity backstop. It is less compelling for someone seeking growth potential beyond a fixed rate or for someone who wants guaranteed lifetime income.
What You're Really Buying Here
You are buying a three-year contractual obligation to leave money with North American Company for Life and Health Insurance in exchange for a locked interest rate. The insurer credits interest daily at the guaranteed rate — 4.25% for deposits under $100,000, and 4.55% for $100,000 or more, as of the brochure date. At the end of three years, the full accumulation value is available without any surrender penalty. What you are not buying is index-linked upside, market participation, or any kind of income guarantee.
How the Core Feature Works
The Max Elite Guarantee is a single-rate MYGA: one fixed crediting rate, set at contract issue, guaranteed for the full three-year term, with interest credited daily. There is no cap, no participation rate, no spread — just the rate that applies on day one, applied every day until the guarantee period ends. North American offers two rate tiers: a lower band for premiums below $100,000 and a higher band for $100,000 or more. Both bands are fixed for the full term, so there are no mid-term rate resets to worry about.
After the guarantee period, the contract enters a renewal cycle. North American will offer a renewal rate, and if it is not acceptable, the full account value is available for surrender or 1035 exchange without surrender charge or MVA. That clean exit point at year three is an important feature for buyers who are already thinking about where the money goes next.
Why the Secondary Feature Matters
The nursing home confinement waiver is the most meaningful secondary feature here. After the first contract year, if the owner is confined to a qualified nursing care center, up to 100% of the account value can be withdrawn without surrender charges. For a buyer in their late 60s or 70s who has real health uncertainty, that waiver changes the risk profile of the product in a meaningful way — it means the three-year commitment is not as binding as it first appears if a medical event occurs. Note that this waiver is not available in all states, so confirming state availability before purchase matters.
Liquidity and Surrender Schedule
You are trading three years of liquidity for a locked rate. The annual 10% free-withdrawal provision is a useful pressure valve — it lets you pull some cash each year for required minimum distributions or ordinary needs without triggering a penalty. Withdrawals above that threshold are subject to the surrender schedule and an MVA — Market Value Adjustment, which means the effective penalty fluctuates with prevailing interest rates. In a rising-rate environment, MVA can increase your exit cost noticeably beyond the stated charge.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 0% |
The Minimum Guaranteed Surrender Value is 87.5% of premiums accumulated at 1% to 3%, which sets a floor on how low the surrender value can go. After the guarantee period, the surrender charge drops to zero and MVA no longer applies.
Fees and Tradeoffs
There are no explicit contract fees or rider fees on this product. The rate you see is the rate you earn, with no annual expense drag. That is a genuine advantage over products with visible fee loads.
The real tradeoffs are structural. First, the MVA: if you need to exit during the surrender period and interest rates have risen since you bought, the MVA can meaningfully increase the cost of leaving. Second, the 9% first-year surrender charge is high relative to the 3-year commitment — it reflects the commission-channel distribution model. Third, because this is a pure fixed-rate product with no index participation, there is no upside beyond the guaranteed rate. In a falling-rate environment, that locked rate looks excellent; in a rising-rate environment, it means you may be sitting on a below-market rate for part of the term.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-90 |
| Minimum Premium | $20,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | 10% of beginning-of-year accumulation value annually, penalty-free. After guarantee period, access to full value without surrender charge. |
| MGSV | 87.5% of premiums at 1% to 3% |
| Death Benefit | Accumulation value payable to beneficiaries as lump sum or installments; may avoid probate. |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not approved in ID, NY, OR. Nursing home waiver not available in all states. |
Carrier snapshot
Legal Entity: North American Company for Life and Health Insurance
Parent: Sammons Financial Group
A.M. Best Rating: A+
Final take
Max Elite Guarantee 3-Year is a well-executed short-term MYGA from a carrier with real financial strength. It fits cleanly when you want a short commitment, a locked rate, and simplicity — and when you will not need to exit early. The A+ rating from A.M. Best and the nursing home waiver give it a meaningful edge over similar products from lower-rated carriers.
Where it falls short is the MVA exposure and the steep first-year surrender charge. If there is meaningful chance you will need to exit before year three, or if you are sensitive to rising-rate scenarios that could amplify your exit cost, the MVA is a real risk to size carefully. For buyers who can stay the full three years, this is a clean, honest product that does what it says.