You may have not heard of North American Life Insurance Company. They are more well known for their Universal Life policies, however they recently updated their term life insurance rates and now have more competitive pricing and I’d like to highlight their term life offering. In this blog post I’ll tell you a bit about the company, and some unique riders and options they offer on their term life policies. You can compare rates for term life insurance below this paragraph or keep reading for more on North American Company Term Life Insurance, AICPA Life Insurance or read our AAA Term Life Insurance reviews.
North American Company for Life and Health – Company History
North American has been in business for over 125 years – founded in 1886. The company is privately owned by Sammons Financial Group, a subsidiary of
Sammons Enterprises – which is one the largest privately owned companies in the U.S.
North American Company is rated A+ by A.M Best, and A+ by Standard and Poor’s (S&P). The company is financially strong with over $13 Billion in assets. The company also currently has zero debt which is impressive.
North American Company for Life and Health Term Options
Now that we know we are dealing with a reputable financially strong company, let’s examine what North American offers in terms of term life insurance options.
North American allows you to convert their term life policy to any of their permanent life insurance policies for the life of your policy, up until age 69. No additional medical exams or requirements are needed to convert from term to permanent coverage. If you don’t convert your term, you can renew it yearly without an exam up until age 98 (although once your initial term period expires the rate will go up each year).
North American is one of a handful of companies that allows you to pay for coverage using check, automatic bank withdrawals, and even credit card payment.
North American Company for Life and Health Insurance- Riders
Accelerated Death Benefit
This rider is included without additional cost and allows the policy holder to access up to 75% of the death benefit (up to a maximum of $250,000) without a penalty, as long as a doctor diagnoses you as being terminally ill with less than 24 months to live.
Additional Insurance Option Rider (AIO)
This rider is only available for those that get approved at Super Preferred Non Tobacco and Preferred Non Tobacco health rating. It allows you to purchase additional coverage without a medical exam. For those between age 18-35 you can exercise this option on the one year anniversary of owning the policy, or on the 2nd or 3rd year. In the first year anniversary, you can buy an additional 50% of the original death benefit, and 25% in year 2 and 3. Those between age 36-40 only have 2 chances to take advantage of this – in the first year anniversary, and the 2nd year anniversary, and between age 41-55, you can take advantage of getting additional coverage only in the first year anniversary.
This could be an excellent rider to take advantage of if after buying the policy you wanted to get more insurance – for example maybe you have a new baby on the way, or maybe you lost your job or changed jobs and no longer have a policy at work – with the Additional Options Rider you can increase your coverage without a medical exam.
Waiver of Premium
North American also offers this rider, which allows you to have your premiums waived if you become disabled and can’t perform the duties of your job. Most insurance companies offer it, and I recommend it if you have a substantial policy that requires you to work to be able to afford the premiums.
Chronic Illness Rider
North American also offers a Chronic Illness Rider – which is similar to long term care coverage. This rider is not available on their term life insurance policy, however it is available on North American’s Universal Life Insurance coverage. If you are 50 and older and have been thinking about the need for Long Term Care coverage, this rider allows you to access part of the death benefit for long term care needs.
Overall North American is competitive in pricing when you compare them to other companies with excellent rates such as SBLI, Prudential, Protective, Banner Life, American General and Transamerica. If the unique features of North American – like being able to convert your policy to a permanent policy, or the rider that allows you to increase your coverage appeal to you – then I would strongly consider North American when shopping for life insurance.
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