Life insurance doesn’t just provide financial security for your family; it also provides peace of mind. But selecting the right insurance provider can be a real headache.
There are many insurance carriers to choose from. Do you know the type of life insurance which will work best for your specific needs?
The North American Life Insurance Company offers a wide variety of life insurance products. We took an in-depth look at the entire North America Life Insurance Company including their overall financial health and line of products.
Here’s our complete North American Life Insurance review:
A North American Life Insurance Company History
North American has provided life insurance products for over 130 years. Located in Iowa, they’re a privately owned organization, which is a bit unusual for the insurance industry. However, free from short-term earning pressure, North American is able to prioritize service for long-term customers.
They’re one of the oldest insurance companies in the country. Founded in 1886, their original name was the North American Accident Association. Four years later they appointed their first agent. Shortly after, in 1918, they revolutionized the insurance industry when they introduced disability insurance for women.
Today, they offer life insurance and annuity products to customers across the U.S. They have dual headquarters. The life insurance division is run from Chicago while the annuities division is in Des Moines. They have additional offices in Sioux Falls.
They also embrace new technology. Policies are available from an agent, but more and more of their insurance products are also available for purchase online.
The company spends a fair amount of time discussing the personal responsibility they feel from selling their products. Overall, they seem very committed to personal service. The status as a private company seems to give them a slight advantage over publicly trades ones regarding their customer service.
Company Ratings and Financials
North American Life Insurance has the solid financial backing of the Sammons Financial Group. This Texas-based Group is part of Sammons Enterprises, one of the largest private companies in the country. Policy holders should have a high degree of confidence in North American Life’s financial health both today and for decades to come.
They currently have over 500,000 life insurance policies in force. Total assets for the company exceed $16 million, with life and annuity reserves of $13 billion. Over 90% of their portfolio is investment grade. Overall, the company has significant reserves and maintains a large share of the market. Their investment ratings include:
- A+ rating from A.M. Best (premier insurance rating agency)
- A+ rating from Standard & Poor’s
- Comdex score of 92
Overall, they’re in the top tier of insurance companies by rating.
Note they don’t have accreditation by the Better Business Bureau. This doesn’t particularly bother us, however. The reason they have no accreditation is because they haven’t applied for it.
The financial rating agencies provide us with enough evaluation to be comfortable with North American’s overall financial picture.
North American Life Insurance Company offers:
- Traditional Term Policy
- Universal Life Insurance
- Indexed Universal Life Insurance
Term Life Policies
The term option is called ADDvantage Term Life Insurance. This coverage is straight-forward and fairly typical. Standard available riders include children’s insurance, disability premium waivers and accelerated death benefits. Secure coverage without an exam, though it may be a slight uptick in price per thousand.
ADDvantage Term Life Insurance has 10, 15, 20 or 30-year policy options. Payment can be made by cash or even credit card, which is a bit rare for the industry. ADDvantage term policies can be converted to a permanent policy.
A quick note: Although a pioneer in the field of disability insurance, North American Life does not offer disability insurance today.
North American does not offer whole life policies. However, either of the two universal types of coverage is a low-cost, permanent substitute.
They have three coverage options for individuals:
- GrowthCV – Coverage with long-term cash value growth
- Custom Guarantee Universal Life – Guaranteed up to the age of 120
- Custom TermGUL – low cost, but with low cash growth
Universal life policies offer a guaranteed death benefit. Unlike term policies, universal policies allow for cash accumulation. Your Universal Life policy can grow in value over time.
Indexed Universal Life
An Indexed Universal Life policy is a bit different than Universal Life. The Indexed policy ties cash growth to an indexed account. You have four choices here:
- Builder IUL
- Guarantee Builder IUL
- Rapid Builder IUL
- Survivorship IUL
Survivorship allows for two people to share one policy. Payout occurs after the death of the second person.
If you’re looking to boost your retirement income, annuities are worth looking into. Annuities provide tax-deferred income. Three different types are offered:
- Immediate Annuities
- Fixed Deferred Annuities
- Fixed Traditional Annuities
Filing a Claim
Claims can be filed basically however you like. They let you file a claim by phone, email, fax, through an online form on their main site or even by U.S. mail.
Policies are sold through agents. You can also contact your agent directly to file a claim. Unfortunately, reviewing individual agents is impossible. We did have pleasant interactions with company reps via phone and email (we asked questions about various policies in order to test their customer service).
Many insurance companies give to local and national charities. Unfortunately, North American’s website doesn’t list any details about charitable giving. They might donate generously to various charities, but if so they need to publicize it better.
Charitable donations aren’t a major requirement for a successful life insurance company. Without further information, we’re reluctant to condemn them for a lack of charity giving page.
In related news, they do seem to be a great place to work. Last year they were named a Top Workplace in Iowa by the Des Moines Register.
The Final Verdict on North American Life Insurance Company
North American Life Insurance Company is one of the oldest life insurance carriers in the country. They have a long-standing commitment to providing quality financial products to adults of any age. Plus, because North American Life is a private organization, they’re able to focus on customers instead of shareholders.
Is North American Life Insurance Company for you? They’re such a large company that they likely have at least something for just about everybody. If you’re looking for extremely specialized coverage, or you’re looking for a whole life policy, then North American Life probably isn’t the best choice.
For everyone in need of general term life insurance, however, North American is definitely worth consideration. They’re a financially secure company with a wide variety of policies and a commitment to customer satisfaction. We recommend them as part of any serious search for a life insurance policy.