North American Company for Life and Health Insurance is an A+ rated carrier (AM Best, S&P, and Fitch) offering competitive IUL and term life products. They’re part of the Sammons Financial Group, have over $35 billion in assets, and have been in business since 1886. We rank their IUL products among our top 5 recommendations for cash value accumulation and retirement planning.
If you’re researching North American for life insurance, you’re looking at one of the strongest carriers in the industry. After 30+ years helping clients find the right coverage, we’ve seen plenty of insurance companies come and go. North American has stayed consistently solid.
Here’s what makes them worth considering: they offer three distinct IUL products designed for different goals, plus a fully convertible term product with competitive rates. Their financial strength ratings are excellent, and their product features (like Fixed Interest Participating Policy Loans) are genuinely innovative.
Let’s break down what North American offers and help you figure out if they’re the right fit for your situation. If you’re comparing carriers, check out our guide to the best IUL companies for a broader view.
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North American’s Financial Strength and Ratings
Before we dive into products, let’s talk about the company itself. North American Company for Life and Health Insurance has been around since 1886 and currently holds over $35 billion in assets with more than $120 billion of life insurance in force.
They’re a privately owned company, which matters. Unlike publicly traded insurers focused on quarterly earnings, North American (through Sammons Financial Group) can take a longer-term view on product development and policyholder service.
Their ratings tell the story:
A+ (Superior) from A.M. Best (affirmed August 13, 2024)
A+ (Strong) from S&P Global Ratings (affirmed May 15, 2025)
A+ (Stable) from Fitch Ratings (assigned June 17, 2025)
The Better Business Bureau has also given them an A+ grade. Over the past three years, they’ve closed out eight customer complaints through the BBB, with only two in the last 12 months. That’s a solid track record for a company of their size.
Indexed Universal Life Insurance Products
North American offers three IUL products, each designed for specific planning goals. Here’s how they compare and who they work best for.
Builder Plus IUL 4
This is North American’s flagship product for retirement income planning. If you’re looking to max-fund an IUL policy and generate tax-free retirement income, Builder Plus IUL 4 deserves serious consideration.
The policy accepts issue ages from 15 days to 75 years (age last birthday) with minimum face amounts of $50,000 for ages up to 70 and $100,000 for ages 71-75. The surrender charge period is 10 years, which is shorter than many competing products.
What sets Builder Plus apart is its multiple interest bonus opportunities. You’ll get a base bonus on fixed and index accounts starting in year 11, plus a higher current bonus from year one for allocations to the Fidelity Multifactor Yield Index. There’s also a separate bonus for funds borrowed through Fixed Interest Participating Policy Loans.
The guaranteed minimum interest rates are 1.5% on the Fixed Account and 2.0% on the Account Value. The policy matures at age 120 with an Extended Maturity Feature.
Builder Plus IUL 4 works best for retirement planning, 1035 exchanges from existing policies, college funding strategies, and business applications like buy-sell agreements and executive bonus plans.
Smart Builder IUL 3
If early cash value growth is your priority, Smart Builder IUL 3 is designed specifically for that purpose. This product features a 0% premium load on both a current and guaranteed basis, which means more of your premium goes directly into the policy’s cash value.
Issue ages run from 18 to 79 (age last birthday) with a $100,000 minimum face amount. The standard surrender charge period is 10 years, but here’s where it gets interesting: Smart Builder offers a Waiver of Surrender Charge Option Rider. When you elect this rider at application, the surrender charge drops to 0% from day one.
You’ll have access to 10% of the account value for penalty-free withdrawals starting in policy year two. If you’ve elected the Waiver of Surrender Charge, there’s no withdrawal charge on any partial withdrawals.
The guaranteed interest rates match the other products at 1.5% for the Fixed Account and 2.0% for the Account Value. Variable interest participating policy loans become available in year three.
Smart Builder IUL 3 is ideal for lump sum or short-pay scenarios, annuity maximization strategies, 1035 exchanges, and key-person coverage.
Protection Builder IUL 2
When guaranteed death benefit protection is the primary goal, Protection Builder IUL 2 delivers. This product offers an optional Premium Guarantee Rider that can extend the no-lapse guarantee period to any age up to 120.
Issue ages range from 15 days to 79 years (age nearest birthday). Minimum face amounts are $50,000 for ages up to 70 and $100,000 for ages 71-79. The surrender charge period is 15 years, longer than the other IUL products, reflecting its protection-focused design.
A unique feature is the Premium Recovery Endorsement, which provides the opportunity to recover part or all of total premiums paid within a 60-day window after the 15th, 20th, and 25th policy anniversaries upon full surrender. This endorsement is only available when you select the Premium Guarantee Rider.
The interest bonus on the Fidelity Multifactor Yield Index is 1% current with 0.50% guaranteed. Guaranteed Net Zero Cost Loans become available in years 6 and beyond.
Protection Builder IUL 2 fits best for legacy building, estate planning, retirement planning with guaranteed protection, and annuity maximization.
ADDvantage Term Life Insurance
For clients who need affordable temporary protection with the option to convert later, North American’s ADDvantage Term life insurance provides solid coverage with competitive rates.
The product comes in four term lengths: 10-year level premium guarantee, 15-year level premium guarantee, 20-year level premium guarantee, and 30-year level premium guarantee. Issue ages vary by term length. The 10-year term accepts ages 18-75, the 15-year term covers 18-70, the 20-year term runs 18-65, and the 30-year term accepts 18-55 for non-tobacco and 18-50 for tobacco users.
The minimum face amount is $100,000 with an annual policy fee of $65. Premiums are guaranteed level for the full term period, then increase annually (but never exceed the Guaranteed Annual Renewal Premium). The policy matures at age 95.
North American offers five underwriting classes: Super Preferred Non-Tobacco, Preferred Non-Tobacco, Standard Non-Tobacco, Preferred Tobacco, and Standard Tobacco. Rate bands start at $100,000-$249,999 and go up to $1,000,000+.
One of the strongest features is the conversion privilege. You can convert to any of North American’s permanent products without additional underwriting. The conversion windows are generous: 7 years or age 70 for the 10-year term, 12 years or age 70 for the 15-year term, 15 years or age 70 for the 20-year term, and 20 years or age 70 for the 30-year term. The conversion period is never less than 5 years regardless of issue age.
Available riders include the Waiver of Term Premium for Disability, Children’s Term Life Insurance Rider, and Accelerated Death Benefit Endorsements for critical, chronic, and terminal illness.
How North American’s IUL Products Work
With indexed universal life insurance, your cash value can grow based on the performance of market indices like the S&P 500, without being directly invested in the market. When the chosen index performs well, a positive return is credited to your cash value up to a cap. When the index performs poorly, your credit for that year is simply 0%. You don’t gain, but you don’t lose either.
North American offers several index options including the Fidelity Multifactor Yield Index 5% ER (exclusive to North American), S&P 500, S&P MidCap 400, and Russell 2000. Various crediting methods are available including Annual Point-to-Point, Monthly Point-to-Point, and Point-to-Point with Spread.
All three IUL products include Accelerated Death Benefit Endorsements for critical, chronic, and terminal illness, Overloan Protection Benefit Endorsement, and Protected Death Benefit Endorsement.
Frequently Asked Questions
Is North American a good company for Indexed Universal Life Insurance?
Yes, North American is one of our top recommendations for IUL policies. They offer three distinct products designed for different goals: Builder Plus IUL 4 for retirement income, Smart Builder IUL 3 for early cash value growth, and Protection Builder IUL 2 for guaranteed death benefit protection. Their A+ ratings from AM Best, S&P, and Fitch reflect strong financial stability.
How do North American’s IUL rates compare with other companies?
North American’s rates are competitive with top-tier IUL carriers. What often sets them apart isn’t just pricing but features. Their Fixed Interest Participating Policy Loans, multiple interest bonus opportunities, and the Premium Recovery Endorsement on Protection Builder IUL 2 provide value that’s hard to find elsewhere.
What interest bonuses does North American offer on IUL policies?
North American offers multiple bonus opportunities across their product line. Builder Plus IUL 4 provides bonuses on the Fidelity Multifactor Yield Index (1% current in years 1-10, 1.5% current in years 11+) plus special bonuses for Fixed Interest Participating Policy Loans. Protection Builder IUL 2 offers a 1% current bonus on the Fidelity index with 0.50% guaranteed.
Can I convert my North American term policy to permanent coverage?
Absolutely. All ADDvantage term products offer comprehensive conversion privileges to any North American permanent life product without additional underwriting. Conversion windows range from 7 to 20 years depending on your term length, and the conversion period is never less than 5 years.
What’s the minimum coverage amount for North American life insurance?
For ADDvantage Term, the minimum is $100,000. For the IUL products, minimums vary: Protection Builder IUL 2 and Builder Plus IUL 4 start at $50,000 for ages up to 70 (increasing to $100,000 for older ages), while Smart Builder IUL 3 has a flat $100,000 minimum.
Does North American offer accelerated underwriting?
Yes, North American’s WriteAway accelerated underwriting program is available on all products through their SimpleSubmit electronic application process. Eligible cases can receive faster decisions without a medical exam.
Key Takeaways
- North American’s financial strength is excellent. A+ ratings from AM Best, S&P, and Fitch, plus over $35 billion in assets and 138 years in business.
- Three IUL products serve different goals. Builder Plus IUL 4 for retirement income, Smart Builder IUL 3 for early cash value access, and Protection Builder IUL 2 for guaranteed death benefit protection.
- Unique features set them apart. Fixed Interest Participating Policy Loans, the Premium Recovery Endorsement, and multiple interest bonus opportunities aren’t common in the industry.
- ADDvantage Term offers strong conversion options. Generous conversion windows let you move to permanent coverage without new underwriting.
- Competitive for the right situations. North American works especially well for max-funded IUL strategies, retirement planning, and clients who value long-term financial stability.
Ready to see how North American’s products might fit your situation? Use our IUL calculator to estimate potential retirement income, or reach out for a personalized illustration.
