North American Company for Life and Health is the carrier agents recommend when the goal is efficiency: competitive caps, lower internal costs, and products purpose-built for accumulation. It's also a carrier with a specific criticism floating around agent forums that you deserve to hear directly. I'll cover both.
Bottom line up front: North American offers some of the best value in the IUL market for max-funded designs — as long as you go in understanding how their crediting bonuses and cap history work. Get a North American illustration →
Company Strength
North American is part of Sammons Financial Group, an employee-owned enterprise — a structure that, like a mutual, removes quarterly shareholder pressure.
- A+ ratings from AM Best, S&P, and Fitch
- Over a century in business; IUL and annuities are core products
- WriteAway® accelerated underwriting — qualified applicants can be approved without a medical exam, often within days, up to substantial face amounts
The Current IUL Lineup
Builder Plus IUL 4 — the accumulation flagship. This is the product built for max-funded, tax-free retirement income designs. Highlights:
- Issue ages from infancy to 75, with a 10-year surrender charge period — shorter than many competitors
- Multiple interest bonuses: a base bonus on fixed and index accounts beginning in year 11, an enhanced current bonus from year one on the Fidelity Multifactor Yield Index allocation, and an additional bonus mechanism on amounts borrowed via participating loans
- Guaranteed minimums on the fixed account and account value
- Competitive S&P 500 caps — historically among the stronger caps of the A+-rated carriers
Smart Builder IUL 3 — the early-value play. Features zero premium loads and an optional waiver of surrender charges from day one, making it the pick when early liquidity matters (business planning, or buyers nervous about commitment).
Protection Builder IUL 2 — the guarantee play. Guaranteed death benefit protection to age 120 with a Premium Recovery Endorsement — a protection-first chassis rather than an accumulation design.
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GET MY SECOND OPINION →What North American Does Better Than Most
- Cost efficiency. Lower internal drag means more of each premium dollar compounds — and in stress tests at 4–5% crediting, leaner products survive where expensive ones strain.
- Loan design. Their fixed-interest participating policy loans (with a capped maximum rate) are a genuinely useful distribution feature for retirement income strategies.
- Speed. WriteAway accelerated underwriting means qualified clients can go from application to in-force in days, not months.
- Product-goal clarity. Three products, three clear jobs: Builder Plus for income, Smart Builder for early value, Protection Builder for guarantees.
The Honest Drawbacks — Including the One Agents Debate
- The in-force cap-rate criticism. The most common knock on North American in agent circles: a history of launching new product generations with attractive rates while trimming caps on older in-force blocks. Every carrier adjusts caps, but North American's pattern of successive product generations draws more scrutiny than most. My take: it's a real consideration, best managed by stress-testing at conservative rates and reviewing the policy annually.
- Bonus and index dependency. Much of Builder Plus's illustrated advantage flows through its bonuses and the proprietary Fidelity Multifactor Yield Index allocation. If you allocate purely to capped S&P strategies, the illustrated edge shrinks. Understand which allocation the illustration assumes.
- Guaranteed charges have headroom. Current charges are low; guaranteed maximum charges are meaningfully higher. That gap exists at every carrier, but it's worth seeing the guaranteed column before you sign.
- Middle-of-road term and protection pricing. If you just need a death benefit, this isn't the cheapest shop.
Who North American Is Right For
- Max-funded accumulation buyers who want cost efficiency and strong loan features for retirement income
- Buyers who want fast, no-exam underwriting
- Business owners needing early cash value (Smart Builder)
- Anyone comparing against premium-priced carriers (Allianz, Pac Life) who wants to see what a leaner chassis does in a 5% stress test
Who Should Look Elsewhere
- Buyers who want the strongest illustration-integrity track record (Pacific Life)
- Anyone chasing unique features like mid-year index locks (Allianz)
- Guarantee-first buyers might compare Protection Builder against dedicated GUL products elsewhere
FAQ
Is North American a good IUL company? Yes — A+ rated across agencies, IUL-focused, and consistently competitive on caps and internal costs. The main due-diligence item is understanding their history of cap adjustments on older blocks.
What is Builder Plus IUL 4 best for? High-funded accumulation and tax-advantaged retirement income. It's specifically designed for buyers funding well above minimum premium.
Does North American require a medical exam? Not always — the WriteAway accelerated underwriting program lets qualified applicants skip the exam with approval often in a few days.
Is North American the same as North American Life? No — North American Company for Life and Health Insurance (Sammons Financial Group) is not affiliated with other similarly named companies.
Rates, bonuses, and rider availability vary by state and change over time. Educational content, not financial advice.