While you may have never heard of North American Life Insurance Company, they are well-known for their Universal Life policies and now have a more competitive pricing structure for their term live coverage.
They also unique riders and term life options which we will discuss in this blog post.
We take a good look into the company, products and other facets of business below, and help you to put together a small evaluation of pros and cons for this carrier.
Continue reading below to see if they fit your needs (and budget).
North American Life was founded in 1886, meaning they have been in business for over 125 years. They are run by Sammons Financial Group, a division of one of the largest privately owned companies in the United States, Sammons Enterprises.
North American Life is an extremely financially stable company with over $13 Billion in total assets and zero debt. This is very impressive for any privately owned company, especially one that provides insurance coverage. Standard Poor’s also rates them A+, which means that they are a financially sound company. It’s vital that you find a company that has been around for a long time and is one of the most a stable life insurance companies within the U.S.
Options for Converting Term Life Policies
North American Life offers a wide variety of term life insurance options for their customers. For consumers under the age of 69, North American allows any term life policy to be converted into a permanent life policy. They do not require any additional medical exams to convert policies from one type of coverage to another.
This is an excellent incentive because there are a lot of applicants that originally want a term insurance policy because of the cheaper premiums, but eventually, decide they want to make the switch to a more permanent protection like that of a whole life policy.
For those that do not wish to convert their term life policy to a permanent one, they may renew it yearly until their 98th birthday. While the rates will increase as you get older, this flexible option allows consumers continue their policy without having to qualify based on health.
Available Payment Options
North American Life is one of the few insurance companies that gives their customers many options when it is time to pay their monthly premiums. They can pay for their coverage with personal checks, automatic withdrawals from their bank account and even pay using a credit card.
Riders Offered with North American Coverage
Accelerated Death Benefit
In the event that someone is diagnosed with a terminal illness, North American Life allows access up to 75 percent of the death benefit while you are alive.
This is offered at no additional cost and can be used to help pay for medical bills and any other needs you have. To qualify you must be diagnosed as having less than 24 months to live and the payout cannot exceed $250,000. Because this is a free rider, it’s an excellent incentive for their policies, but you should be aware that the rider only allows you to get 75 percent of the payout. Most companies will offer accelerated death benefit at higher percentages, but very few of them offer it for free
Additional Insurance Option (AIO)
This rider is available if you are approved at the Super Preferred Non-Tobacco and Preferred Non-Tobacco health ratings. This rider allows you to purchase additional coverage in the future without having a medical exam performed.
This option is available for ages 18 to 35 on the first, second and third anniversaries of when coverage started. On the first year, you can purchase 50 percent additional coverage and 25 percent in years two and three.
For those ages 36 to 40, two chances to purchase additional coverage are available on their first and second year anniversaries. For ages 41 to 55 you can only take advantage of this option once, on their policy’s first anniversary.
AIOs are a great option to take advantage of after you have purchased a policy, especially if you are young. Life events, such as a having a new baby on the way and decreased coverage because of job loss can cause your life insurance coverage needs to change and an AIO can help.
This will allow you to purchase insurance initially, and if anything changes within those first couple of years, you don’t have to go through the medical exam. This is a rare benefit, and for most people, you won’t use it. But, it’s nice to have if you do want to take advantage of it.
Waiver of Premium
This rider helps those that can no longer perform their duties at work because of a sudden disability. North American Life will waive premiums in the event that you become disabled and can no longer work.
Chronic Illness Coverage
While this rider is not available with North American’s term life coverage, it is available with their Universal Life Insurance plan. It is similar to long term care coverage offered by other insurance companies. For customers seeking life insurance coverage over age 50, North American allows a portion of their death benefit to go towards long-term care expenses,such as nursing homes or hospice care.
Calculating your Life Insurance needs
Aside from deciding which type of policy works for you, you’ll also need to decide how much life insurance to purchase. Not having enough coverage could leave your family scrambling to pay off bills that they don’t have enough money for. There are several financial factors that you need to account for.
North American Company’s rates are competitive when compared to similar insurance companies. Prudential, Banner Life, Transamerica and American General are all companies with similar coverage at affordable rates. However, North American has many unique features that their competition does not offer.In most cases, their insurance rates are comparable to a lot of other companies. They are an experienced company that has been around for over 100 years and have provided quality insurance coverage to millions of customers. They are an excellent option for providing protection for your family.
You can compare rates by using the quote form on this page, or call us at 1-888-552-6159.