Charter Plus 14 review

It depends. Charter Plus 14 is a good annuity for buyers who have a long time horizon — genuinely 14 or more years before they expect to need this money — and want a meaningful balance boost at issue. It is a poor fit for anyone who may need significant access to principal within that window. The bonus is real, but so is the lockup. If your time horizon is closer to 7 to 10 years, a shorter-duration FIA will likely serve you better even without the bonus.

The main reason someone chooses Charter Plus 14 over a shorter FIA is the premium bonus. A 17% credit to account value at issue is meaningful — it gives the contract an immediate head start that shorter-duration alternatives with lower or no bonuses may take years to match on a net basis. The secondary reason is carrier quality: North American holds an A+ from A.M. Best through Sammons Financial Group, which matters for a 14-year commitment. Buyers who are comfortable with the duration and want to maximize their starting balance in a principal-protected wrapper have a rational case for this product.

Charter Plus 14 is best suited for buyers in their mid-50s to late 60s who have a meaningful block of non-qualified or qualified retirement savings they do not expect to touch for 14 or more years, have a conservative to moderate risk profile, and want principal protection alongside some index-linked growth potential. It is a poor fit for buyers in their early 70s, anyone with a shorter time horizon, or anyone who anticipates needing more than the 10% annual free-withdrawal amount. The state availability list is also restricted — the product is approved only in California, Massachusetts, and New Hampshire as of the brochure date, which significantly limits the accessible market.

You are buying a principal-protected insurance contract with an upfront balance credit, not a market investment. The premium bonus is credited to account value at issue and vests gradually beginning in year two, with annual vesting tied to the 10% penalty-free amount. The index-linked crediting strategies determine how additional interest may accumulate over time, subject to caps and participation rates that the carrier sets each contract year. The contract value never declines due to index performance, but surrender charges and an MVA can reduce what you walk away with if you access principal above the free amount during the first 14 years.

The premium bonus is the headline feature. Deposits of $75,000 or more receive a 17% account-value bonus on premiums paid in the first three years. Deposits between $20,000 and $74,999 receive a 13% bonus. That bonus is credited to account value — not a separate benefit base — which means it participates in the same index crediting as the rest of the contract.

The bonus vests over time. Beginning in year two, vesting occurs annually, and the mechanism ties to whether excess withdrawals above the 10% penalty-free amount are taken. Buyers who hold the full surrender period capture the full bonus. Buyers who take large early withdrawals will see some of that bonus forfeited.

After the bonus is credited, growth comes from seven crediting strategies spanning the S&P 500, the S&P 500 Multi-Asset Risk Control 5% Excess Return Index, Barclays Transitions 6 VC and Transitions 12 VC Indices, Fidelity Multifactor Yield Index 5% ER, Goldman Sachs Equity TimeX Index, and Morgan Stanley Dynamic Global Index. Methods include annual and two-year point-to-point with participation rates, annual point-to-point with cap rates, monthly point-to-point with cap rates, and enhanced participation rate versions with added strategy charges. The fixed account is also available. The spec notes that cap rates range from approximately 1.45% to 6.5% and participation rates range from 20% to 195% depending on strategy — these figures are as of September 30, 2025, and will change.

The optional income rider — described in available materials as an Enhanced Bonus Rider — adds a lifetime income layer to what is otherwise an accumulation contract. The rider costs 0.95% annually during the surrender charge period and is available as an add-on, not a built-in feature. For buyers who want both the accumulation bonus and a path to eventual guaranteed income, the rider provides that option without requiring them to purchase a separate income-focused product. The rider's name in the spec was flagged as lower confidence, so verify the specific rider terms with the carrier or agent before making assumptions about its payout mechanics.

The surrender schedule is one of the most important things to understand about Charter Plus 14. The contract charges 12% in the first two years, declining gradually to 1% in year 14 and then to zero. That is not unusual for a bonus-heavy FIA — the carrier is recouping a portion of the upfront bonus cost through the surrender structure — but 14 years is a long commitment compared to the FIA category median.

The free-withdrawal provision allows 10% of account value annually beginning in year two, which is standard. A market value adjustment also applies, meaning surrender penalties can fluctuate with interest rates — in a rising-rate environment, the effective cost of early exit can exceed the stated surrender charge percentage. A nursing home waiver is available. Even with those relief features, this contract is not appropriate for money that might need to be accessible within the surrender window.

The base contract does not carry an explicit annual fee, which is consistent with most FIA designs. The tradeoffs are structural rather than line-item. The enhanced participation rate strategies add a strategy charge — described in the spec as the strategy charge multiplied by the term length — which can erode the participation rate advantage. The optional income rider adds 0.95% annually during the surrender period. And of course, the 14-year lockup itself is an implicit cost: your money is not available without penalty for an extended period.

The premium bonus partially offsets these structural costs, but the math works only for buyers who stay the course. Exiting the contract early means paying surrender charges, potentially absorbing an MVA adjustment, and forfeiting unvested bonus amounts. That combination can meaningfully reduce what you walk away with compared to what you put in.

Legal Entity: North American Company for Life and Health Insurance

Parent: Sammons Financial Group

A.M. Best Rating: A+