North American relies on its best-selling NAC BenefitSolutions® Fixed Index Annuity
Product updates keep pace with today’s financial pressures
WEST OF THE MONKS, Iowa, August 9, 2022 /PRNewswire/ — More than three in four Americans are concerned about safeguarding their current savings and finding ways to secure lifetime income for their future. Today, 76% of Americans say it’s important to them to protect their nest egg and retirement account, and 77% agree they’re worried about outliving their income in retirement.1
To address these growing concerns, North American Company for Life and Health Insurance® updated one of its most successful products to include key benefits to meet today’s tough financial realities. NAC BenefitSolutions® 10 is a fixed index annuity (FIA) with, for an additional cost, a benefit rider.2 Together, the FIA and driver combination can provide security with a basic benefit that cannot drop below a floor of 125% of the premium paid. In addition, this basic benefit increases in years 5 and 103 ensuring that policyholders have a solid base of assets to use for a lifetime of guaranteed payouts or in the event of death.
“This is an incredible update to a product that has been well received in our industry since its launch in 2015,” said Bryce Bike, director of distribution for North America. “In short, this means that on day one of a policyowner’s contract, the benefit base is already 25% higher. For example, assuming a premium of $100,000the benefit base would begin at $125,000.”
The enhanced BenefitSolutions FIA also responds to changing financial concerns of a client and can better manage market volatility with its index options and credit methods. Through the benefit rider, NAC BenefitSolutions guarantees lifetime income payments to the policy owner and also includes a retirement home multiplier and a death benefit paid to the beneficiary.3
“Retirement planning is about planning for your financial security. Today, we have new solutions in place to meet the challenges head-on,” Biklen said. “Managing periods of low interest rates, targeting growth opportunities with index options from strong financial brands and weathering market downturns are priorities for finance professionals and their clients.”
North America first introduced BenefitSolutions to the market in 2015 and during that time FIA has generated over $1.4 billion bonus4 – dollars designed to help clients protect and grow their retirement nest egg.
“North American is a leader in providing financial solutions that reduce risk and address one of the biggest concerns of retirees today: outliving their money,” Biklen said. “That’s what a fixed index annuity is designed for, and there’s a reason BenefitSolutions has performed so well over the past seven years.”
About North American Life and Health Insurance Company
North American Life and Health Insurance Company® is a member of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the United States. We offer a comprehensive portfolio of universal, term and indexed universal life insurance products. North American also offers a wide variety of traditional fixed-index and fixed-index annuities and consistently ranks among the top providers of fixed-index annuities in the United States. For more information, please visit here.
1. Pensions, retirement and the pandemic, page 7 – Assessing America’s Readiness study conducted by IALC
2. This amount applies only to the Benefit Basis, which is a value used solely to determine the Lifetime Payout Amounts (LPA) and/or Death Benefit features of the Rider. The Benefit Basis is not the same as the Contract Accumulation Value and cannot be used for partial withdrawals, full surrender or as the Contract Base Death Benefit.
3. The benefits rider includes a 1.20% endorsement fee basis of the benefit, deducted as a partial surrender of the accumulation value. Other death benefit options are available. Lifetime income refers to the guaranteed payment of Lifetime Payment Amounts (LPA) as defined in the Benefits Addendum included in this Agreement. It does not refer to interest credited to the contract. Advise clients to consult their own tax advisor regarding the tax treatment of APLs, which will vary according to individual circumstances. The Nursing Home Multiplier may be paid in up to five annual installments as long as the client continues to meet the requirements on each payment date. See product brochure for details and limitations. Rider death benefit includes an option for 5 annual benefit-based payments with a one-year waiting period (2 years in some states). Rider death benefit options vary by state. The additional death benefit and other features are explained in the brochure and product disclosure. For product materials, check for variations in your state.
4. Source: North American Company Data, 2015-June 2022
CNA Benefit Solutions® 10 is issued on Form NA1006A/ICC14-NA1006A (Contract) or the appropriate state variant. Product features, endorsements and index options may not be available in all states or suitable for all consumers.
Fixed index annuities are not a direct investment in the stock market. These are long-term insurance products with guarantees backed by the issuing company. They offer the possibility of crediting interest partly on the performance of specific indices, without the risk of loss of premium due to market declines or fluctuations. Although fixed index annuities do not guarantee any premium loss due to market declines, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to credit enhanced methods could exceed the interest credited to the accumulation value, which would result in a loss of premium. . They may not be suitable for all customers. The interest credits of a fixed index annuity will not reflect the actual performance of the relevant index.
Sammons Financial® is the trading name of Sammons® Member companies of Financial Group, Inc., including North American Company for Life and Health Insurance®. Annuities and life insurance are issued by the North American Company for Life and Health Insurance, and product warranties are its sole responsibility.
SOURCE North American Life and Health Insurance Company