North American Life Insurance Review

Thinking about North American for your life insurance? They’ve been around for over a century, but how do they stack up?

This review breaks down their life insurance products, expertise in underwriting, and compares them to other companies.

North American Company for Life and Health Insurance (NACOLAH) is part of the Sammons Financial Group, one of the largest privately held financial services companies in the U.S.

Founded in 1886, North American has earned a reputation for stability and conservative financial management.

• AM Best: “A+”
• S&P: “A+”
• Fitch: “A+”

These ratings indicate North American’s strong ability to meet its policyholder obligations—an important factor when selecting a life insurer.

North American offers several types of life insurance products, including term life insurance and universal life. The company also offers annuities.

The ADDvantage term life insurance policy offers benefits and features that may appeal to you.

• ADDvantage
  • 10-year term: Ages 18-75
  • 15-year term: Ages 18-70
  • 20-year term: Ages 18-65
  • 30-year term: Ages 18-55 (50 for smokers)
• Policies are renewable to age 95
• Minimum Face – $100,000
• Riders:
  • Children’s Term Life Insurance Rider
  • Waiver of Term Premium for Disability Rider
  • Accelerated death benefits for critical, chronic, and terminal illness
• Conversion Privilege is never less than 5 years, regardless of issue age.

Pricing tends to be in the middle of the pack compared to other companies, such as Banner, Protective Life, or Corebridge Financial.

The ADDvantage product includes accelerated benefits for critical, chronic, and terminal illnesses, providing valuable support built into the policy. Although not available in every state, this feature can be a significant advantage.

Critical Illness: Policyholders can accelerate part of the death benefit after experiencing a critical illness such as a heart attack, stroke, or certain types of cancer.

Chronic Illness: If diagnosed with a chronic illness that prevents performing daily living activities, policyholders can access a portion of the death benefit to help cover related expenses.

Terminal Illness: Policyholders diagnosed with a terminal illness with a life expectancy of 24 months or less (12 months in some states) can receive part of the death benefit while still living.

Only one accelerated benefit can be used at a time. Similar riders are available with other companies, including Transamerica.

The Custom Guarantee is North American’s universal life insurance policy offering a no-lapse guarantee to age 120.

• Custom Guarantee Highlights:
  • Minimum face:
    • Up to age 70 = $50,000
    • Age 71-79 = $100,000
  • Level or Increasing Death Benefit Option
  • Guaranteed death benefit up to age 120
  • Premium Recovery Endorsement¹
  • Guaranteed Exchange Privilege²
  • Accelerated death benefits for critical, chronic, and terminal illness
  • Riders Available:
    • Accidental Death Benefit Rider
    • Children’s Term Insurance Rider
    • Guaranteed Insurability Rider
    • Waiver of Monthly Deductions Rider

Premium Recovery Endorsement: Allows you to fully surrender the policy on the 15th year for a 50% refund, or surrender the policy on the 20th or 25th year for a 100% recovery of premiums (subject to availability and rules). It’s a great option to have if your needs change down the road.

Guarantee Exchange Privilege: Allows you to exchange your policy for one of the index universal life insurance policies available.

Other companies that offer age 120 guaranteed universal life insurance include Pacific Life, Protective, Nationwide, Corebridge, and Mass Mutual.

The Protection Builder IUL policy provides guaranteed death benefit protection, along with the opportunity to build cash value. The policy is competitive for both individual and business life insurance cases.

• Protection Builder:
  • Minimum face:
    • 0 – 70 = $50,000
    • 71-75 = $100,000
  • Strong potential for cash value accumulation
  • Optional no lapse guarantee up to age 120
  • Premium Recovery Endorsement¹
  • Indexed interest
  • Policy loans with overloan protection
  • Accelerated death benefits for critical, chronic, terminal

The Smart Builder 3 is an index universal life insurance policy designed to build early cash value and provide access to the cash value through loans and withdrawals.

• Smart Builder IUL 3
  • Minimum face
    • 0 – 70 – $50,000
    • 71 – 75 – $100,000
  • Long term cash value accumulation
  • Return of premium death benefit endorsement
  • Waiver of Surrender Charge Option
  • Accelerated death benefit for critical, chronic, terminal
  • Policy loans
  • Indexed interest
  • Riders
    • Accidental Death Benefit Rider
    • Children’s Term Life Insurance Rider
    • Waiver of Monthly Deductions Rider
    • Guaranteed Insurability Rider

Other companies with early-cash-building policies include Guardian, Minnesota Life, and Symetra, among others.

The Builder Plus IUL 4 is designed to provide an income stream while reducing the effects of volatility and taxes on your financial portfolio. This policy is for people who will be funding the policy at a high level, versus other products paying a lower premium

• Builder Plus IUL 4:
  • Ages – 18-79
  • Minimum face – $100,000
  • Return of Premium Death Benefit Endorsement
  • Strong early cash value performance
  • Accelerated death benefits for critical, chronic, terminal
  • 10% of the account value is available for withdrawal starting in year 2.
  • Riders:
    • Overloan Protection Benefit Endorsement
    • Accidental Death Benefit Rider
    • Children’s Term Life Insurance Rider
    • Waiver of Monthly Deductions Rider
    • Guaranteed Insurability Rider

Please note that rider availability may vary by state, age, underwriting, and other factors.

When evaluating index universal life policies, compare them to those offered by Lincoln National, John Hancock, Mutual of Omaha, and Prudential.

North American offers accelerated underwriting through its WriteAway process. With this program, approval may be possible within 48-72 hours.

Criteria include:

• Issue Ages – 18-60
• Face Amounts:
  • 15-50 – Up to $2,000,000
  • 51-60 – Up to $1,000,000
• Available for term and universal life
• No major medical impairments
• Rate classes available:
  • Super Preferred
  • Preferred Non-Tobacco
  • Standard Non-Tobacco
  • Preferred Tobacco
  • Standard Tobacco
• No non-medical impairments
• Flat extras only for aviation and avocations

The process is relatively simple, involving an e-application where we submit basic information to underwriting. You will then receive an email with a link to NACOLAH’s online underwriting questions.

While we recommend the online interview process, it is possible to complete it during a phone interview instead.

If you qualify, you will be notified that you are approved. Otherwise, underwriting will let you know that a paramed exam and traditional underwriting are required.

• Phone: 877-872-0757
• Online: here
• Location: One Sammons Plaza – Sioux Falls, South Dakota 57193

North American also offers e-delivery for policies, online forms, and self-service access to policy information.

North American is a financially strong company offering well-designed products with valuable features like living benefits, no-lapse guarantees, and early cash value access.

While their term life pricing is average, their permanent policies, especially Indexed Universal Life (IUL) plans can be compelling for those seeking long-term flexibility or tax-advantaged income.

Want to see how North American compares to other top companies? Request your quote today!