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Annuity
Prime Path ® Pro 10 fixed index annuity Issued by North American Company for Life and Health Insurance®
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Your PrimePath® Pro 10 to retirement Planning for retirement can be overwhelming – will I have enough to retire? How much is enough? How much longer will I need to work? What happens if I have an extended illness? Will I be able to leave anything to my family? As you research options, you will be faced with various products and unfamiliar terms. Your licensed insurance professional and this brochure will provide information so you can determine if this product is a solution to help meet your needs during your retirement years. If there’s anything predictable about life, it’s that it’s unpredictable. But it’s safe to say that when you retire, a few things happen: You want to protect and grow what you worked so hard to earn. You want to know that your retirement savings are not only protected from market downturns, but that there’s opportunity for growth as you approach retirement. You need income. To travel, to start that hobby you always dreamed about, to buy a vacation home… to help pay for whatever it is that you want to do in your golden years. You may have unexpected costs. If you experience an extended illness, you may need access to additional funds. You hope to leave something for your beneficiaries. A way to offer a legacy to your loved ones. The PrimePath Pro 10 fixed index annuity could help you and your family when any of these situations take place. Read on to find out how…
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The PrimePath Pro 10 annuity is a flexible premium, fixed index annuity that offers growth potential for your retirement assets while providing protection from market downturns, as well as flexible options for taking lifetime income. None of us know the path that life has in store for us. That’s why it’s comforting to know that PrimePath Pro 10 has key features to help you on your journey: Growth Fixed and index account options offer upside potential without downside market risk to the money you worked so hard to save throughout your career. Retirement income PrimePath Pro 10 provides multiple options for taking retirement income. So you’re in the driver’s seat in determining how and when you start receiving payments. Liquidity options If you need access to funds, PrimePath Pro 10 has different liquidity provisions that can help you when you need it most. Death benefit PrimePath Pro 10 has death benefit provisions so you may be able to leave something for your loved ones. Retire confidently
With PrimePath Pro 10 fixed index annuity, you can take advantage of the benefits a fixed annuity offers, such as: Tax deferral improves growth potential Your annuity’s value grows on a tax-deferred basis, meaning more of it is working for you. Tax-deferred growth means you don’t owe taxes until you access funds, allowing more time for growth potential. Work with your tax advisor to find out how this might work for you. Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Please note that neither North American nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Consult with and rely on your own qualified advisor. May avoid probate By naming a beneficiary, you typically minimize the delays, expense and publicity often associated with probate.
Please consult with and rely on your own legal or tax advisor. Annuitization payout options
By annuitizing your contract (electing an annuity payout option) or by turning on lifetime payment amounts (LPAs), you have access to a guaranteed income stream that will last as long as you live. Issue ages Available issue ages 40-79 (qualified and non-qualified). Minimum premium Flexible premium, $20,000 at issue, qualified and non-qualified ($50/month TSA salary reduction accepted after $20,000 minimum initial premium requirement).
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Your PrimePath Pro 10 annuity To understand how your annuity works, it’s important to first understand a few basics about two values in your PrimePath Pro 10 annuity. Accumulation value The accumulation value equals 100% of premium; plus interest credited, less withdrawals and strategy fees*, if any. Your accumulation value is the value used to determine penalty-free withdrawal amounts and your surrender value, which is the amount you would receive if you surrendered your contract early. Additionally, any remaining accumulation value may be paid to your beneficiaries upon your passing. For detailed information on charges incurred if the contract is surrendered, see the surrender charge section. Benefit base Your benefit base is used to determine your lifetime payment amount (LPA) as well as the Benefits Rider death benefit. This value is never available as a lump sum withdrawal. If you should pass away, the benefit base is available as a death benefit to your beneficiaries if paid out over five annual payments, in lieu of the base contract death benefit. The Benefits Rider is included for no annual charge which is guaranteed for life of contract.
Accumulation value
Benefit base
• Premiums • Double the weighted average interest credit percentage** during the benefit base roll-up period
• Premiums • Interest credits
Increased by...
• Any withdrawals • Any strategy fees • Any LPAs
• Any withdrawal at a proportional amount • Any LPAs at a proportional amount
Decreased by...
• Calculating penalty-free withdrawals • Annuity payout options • Death benefit • Surrender value
• LPAs • Rider death benefit paid out in five equal and annual payments
Used for...
*Known as a strategy fee annual percentage in the contract. The charge is multiplied by two for the two-year crediting strategy. In exchange for a charge, the client receives an enhanced participation rate. The charge will be deducted at the end of each term, or at the time of a full surrender or a partial withdrawal that exceeds the penalty-free withdrawal amount from the accumulated value allocated to the enhanced participation rate method. The strategy charge will be deducted regardless of the interest credited to the contract and can lead to loss of premium. **The weighted average interest credit percentage is equal to the sum across all fixed and index account options of: 1) the interest credit for the account during the contract year that ends on the current anniversary less any applicable strategy fee annual percentage multiplied the number of years in the term for terms that end on the current anniversary multiplied by 2) weighted average allocation amount for that account on the prior contract anniversary divided by 3) total weighted average allocation amounts for all accounts on the prior contract anniversary.
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Enhancing your retirement
Choose your index options You choose how the initial premium is allocated between your fixed account and/or index accounts. At the end of each crediting term you have the option to transfer funds among the different options. Please refer to the “How it works-crediting methods” brochure for more information on the differences. Fixed account PrimePath Pro 10 provides a fixed account that offers a fixed interest rate that is guaranteed for the first contract year. The rate for future contract years will be declared each year at the company’s discretion thereafter, and will never be less than the minimum guaranteed rate listed in your contract. Refer to your contract for minimum guaranteed rates. Index account options While your premium is protected from downside market risk, PrimePath Pro 10 also provides the opportunity to take advantage of market growth with its indexed interest crediting options. These index crediting methods allow you to select from different indexes; each index account option may perform differently in various market scenarios. • Annual Point-to-Point with Participation Rate • Monthly Point-to-Point with Cap • Annual Point-to-Point with Cap • Annual Point-to-Point with Margin • Annual Point-to-Point with Enhanced Participation Rate (includes charge 1 ) • Two-year Point-to-Point with Participation Rate • Two-year Point-to-Point with Margin and Participation Rate • Two-year Point-to-Point with Enhanced Participation Rate (includes charge 1 ) 1. Known as a strategy fee annual percentage in your contract. See full description in the footnote on the previous page. Interest is credited on each contract anniversary for each index account option except the Two-year Point-to-Point options. For the Two-year Point-to-Point options, interest is credited at the end of each two-year term. See the following pages for details. Your financial professional will explain how the different interest crediting strategies work and which account or combination of accounts could be the best fit for your objectives.
One question people often ask themselves is: Have I saved enough for retirement? While “enough” varies by individual wants and needs, many consumers would like to have growth as they approach retirement. Fixed index annuities combine growth potential without experiencing loss of premium from market downturns or fluctuations. Interest credits in the PrimePath Pro 10 annuity will not mirror performance of the index itself, but rather the index closing prices are used as a basis for determining interest credits. PrimePath Pro 10 has unique and competitive options with the potential to grow your retirement dollars so they can work harder for you. Did you know? PrimePath Pro 10 is a flexible premium annuity. That means you may be able to continue to put funds into the contract as long as you own it. Transfer options You may elect to transfer funds between the fixed account and index account options after the first contract year for the annual index account strategies (or every two years if you choose the Two-year Point-to-Point strategy). You may also elect to transfer between strategies annually (or every two years for amounts allocated to the two-year strategy). Based on current tax laws, these transfers between options will not be taxable or subject to surrender penalties.
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Diversify your premium among the following index account options Crediting method options* (subject to factor below) Index availability* Monthly Point-to-Point (subject to an index cap rate) • S&P 500® Annual Point-to-Point (subject to an index cap rate) • S&P 500® Set your strategy In addition to the fixed account, here are your crediting methods and index options.
• S&P 500® Low Volatility Daily Risk Control 5% • S&P Multi-Asset Risk Control 5% Excess Return
Annual Point-to-Point (subject to an index margin)
Index (S&P MARC 5% ER) • S&P Maestro 5 Index ER
• S&P 500® • Morgan Stanley Dynamic Contribution • Morgan Stanley Dynamic Global Index • S&P Multi-Asset Risk Control 5% Excess Return Index (S&P MARC 5% ER) • S&P Maestro 5 Index ER • Morgan Stanley Dynamic Global Index • Morgan Stanley Dynamic Contribution • Morgan Stanley Dynamic Global Index
Annual Point-to-Point (subject to a participation rate)
Annual Point-to-Point with Enhanced Participation (subject to a participation rate and charge) ***
Two-year Point-to-Point (subject to a participation rate)
Two-year Point-to-Point (subject to an index margin and a participation rate)**
• Morgan Stanley Dynamic Contribution
• S&P Multi-Asset Risk Control 5% Excess Return Index (S&P MARC 5% ER) • S&P Maestro 5 Index ER • Morgan Stanley Dynamic Global Index
Two-year Point-to-Point with Enhanced Participation (subject to a participation rate and charge) ***
Fixed account Premium allocated to the fixed account will be credited interest at a declared fixed account interest rate and is credited daily. The initial premium interest rate is guaranteed for the first contract year. For each subsequent contract year, we will declare, at our discretion, a fixed account interest rate that will apply to the amount allocated to the fixed account as of the beginning of that contract year. A declared fixed account interest rate will never fall below the minimum guaranteed fixed account interest rate. * Index(es) and crediting methods may not be available in all states. ** The declared annual index margin is multiplied by two when it is applied at the end of each two-year term. The participation rate is applied after the index margin. *** See the footnote on page 3 for strategy charge description.
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Pick from a wide variety of index * options S&P Maestro 5 Index Excess Return (SPMAES5E)
S&P 500® Index (SPX) The S&P 500 Index is widely regarded as the best single gauge of the large cap U.S. equities market since the index was first published in 1957. The price-return index includes 500 leading companies in leading industries of the U.S. economy and does not include dividends in the index valuation. S&P Multi-Asset Risk Control 5% Excess Return Index (SPMARC5P) S&P MARC 5% ER The S&P MARC 5% ER Index (the “Index” ) is a multi-asset excess return index that strives to create more stable index performance through diversification, an excess return methodology, and volatility management (i.e. risk control). The Index applies rules to adjust allocations among multiple asset classes creating a diversified basket of these assets. The Index then adds an element of risk control by applying rules to allocate between this basket and cash. The Index is managed to a 5% volatility level. S&P 500® Low Volatility Daily Risk Control 5% Index (SPLV5UT) The S&P 500® Low Volatility Daily Risk Control 5% Index (the “Index” ) strives to create stable index performance through managing volatility (i.e. risk control) on the S&P 500 Low Volatility Index. The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500. The Index adds an element of risk control by applying rules to allocate between stocks, as represented by the S&P 500 Low Volatility Index, and cash. The Index is managed to a 5% volatility level.
The S&P Maestro 5 Index ER (the “Index” ) is a multi-asset index that strives to create more stable index performance through diversification, an excess return methodology, and by managing volatility. The Index covers major asset classes which represent equities, U.S. Treasuries, gold, and cash. Equity is represented by four factor indices (Quality, Momentum, Low Vol and High Dividend) while the U.S. Treasuries use both 5 and 10 year maturities. The Index applies established rules to allocate amongst those asset classes and also includes an equity hedge overlay, using mid-term and short-term VIX futures, which may increase performance in times of higher volatility. The Index is managed to a 5% volatility target. Morgan Stanley Dynamic Contribution Index (MSUSMSDC) The Morgan Stanley Dynamic Contribution Index (“the MSDC Index”) is a rules-based strategy that uses modern portfolio theory principles and the related concept of efficient frontier to attempt to maximize returns for a given level of risk. The MSDC Index provides access to global opportunities by investing in multiple asset classes representing global equities, government bonds and major commodities. The MSDC Index seeks to dynamically allocate to a portfolio nearest to the efficient frontier. On a daily basis, the MSDC Index computes recent returns, realized volatilities and correlations for each asset over two time horizons: short-term and long-term. All combinations are then screened to identify the highest historical return portfolio for 5% target risk level, subject to allocation constraints for each asset class and individual asset. Morgan Stanley Dynamic Global Index (MSUSMSDG) The Morgan Stanley Dynamic Global Index (MSDG) allocates across global assets with the goal of achieving diversified exposure across and within equities, fixed income and commodities. Moreover, the Index methodology includes provisions intended to address the unique risk and return characteristics of each asset class when re-allocating exposure during changing market conditions. The Index is rules-based and targets a 5% annual realized volatility with the intention of (i) reducing allocations to preserve gains during periods of high volatility and (ii) increasing leverage to capture returns when volatility decreases.
* Past index performance is not intended to predict future performance.
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Growth potential The PrimePath Pro 10 fixed index annuity has growth opportunities that you can take advantage of as you build your retirement savings. How your annuity grows Accumulation value growth The interest earned in the fixed and indexed accounts is applied to your contract’s accumulation value. Benefit base The benefits rider is included for no annual charge which is guaranteed for life of contract.
Benefit base roll-up During the benefit base roll-up period, the benefit base grows each year by the benefit base roll-up amount. The benefit base roll-up amount is double the weighted average interest credit percentage, which reflects credit rates and strategy fees if applicable, (based on allocations at the beginning of the contract year) multiplied by the benefit base. What this means is if the weighted average interest credited across all strategies is 3%, the benefit base is $100,000, the benefit base roll-up amount will be $100,000 x 2 x 3% or $6,000. The benefit base after the benefit base roll-up amount will be $106,000. The benefit base roll-up amount will never be less than zero. The benefit base roll-up period is each contract anniversary until the earlier of the 15th contract anniversary or the lifetime payment election date. The benefit base, used for purposes of calculating the death benefit, may not exceed the rider death benefit maximum. Benefit base floor The benefit base floor is equal to the premiums, less any proportional reductions for withdrawals, accumulated at the benefit base floor annual roll-up rate. When you utilize the benefit base by starting LPAs, the benefit base is guaranteed to be no less than the benefit base floor. The benefit base floor roll-up period is each contract anniversary until the
lifetime payment election date. Death benefit maximum
The rider death benefit is the greater of the benefit base and the benefit base floor as of the date of death, subject to a death benefit maximum. The rider death benefit maximum for some states is the greater of 250% multiplied by the total premium less gross partial surrenders or 125% multiplied by cash surrender value.
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Benefit base roll-up example
Hypothetical example A hypothetical example of a couple approaching retirement will help explain how all of these values work together. A couple has worked hard to save for retirement. He chose a PrimePath Pro annuity because he liked the idea of growth potential of a fixed index annuity while not being subject to market losses. He put $100,000 into his PrimePath Pro annuity and let it accumulate for ten years without taking any withdrawals or starting LPAs.
The chart below shows the benefit base floor, which increases at 1% annually. The chart also shows how the benefit base increases each year, assuming that the weighted average interest credited with strategy fees reflected if applicable was 3% each contract year. The benefit base is increased by the benefit base roll-up amount during the benefit base roll-up period. The benefit base roll-up amount is double the weighted average interest credit percentage, 2 x 3% = 6% in this example, multiplied by the benefit base. The benefit base roll-up amount will never be less than zero.
Hypothetical example Initial premium: $100,000 Benefit base floor: Increases at 1% annually Benefit base: The benefit base is increased by the benefit base roll-up amount during the benefit base roll-up period. The benefit base roll-up amount is double the weighted average interest credit percentage, 2 x 3% = 6% in this example, times the benefit base. Strategy fees: The weighted average interest credit percentage reflects interest credit rates and strategy charges. The 3% used in this example would be reflective of a credit rate of 3% on allocations to annual crediting methods without a strategy charge or 3.95% credit rate on allocations to annual crediting method with a 0.95% strategy charge.
Benefit base roll-up amount
End of year (EOY)
Benefit base floor
EOY benefit base
At Issue
$100,000
$0
$100,000
1
$101,000
$6,000
$106,000
2
$102,010
$6,360
$112,360
3
$103,030
$6,742
$119,102
4
$104,060
$7,146
$ 126,248
5
$105,101
$7,575
$133,823
6
$106,152
$8,029
$ 141,852
7
$107,214
$8,511
$ 150,363
8
$108,286
$9,022
$ 159,385
9
$109,369
$9,563
$168,948
10
$110,462
$ 10,137
$179,085
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
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Retirement income Outliving income in retirement has become a concern for many retiring consumers. PrimePath Pro 10 can provide confidence that it will be there to provide income you can’t outlive, and to provide for the possibility of increasing payments over time. Lifetime payment amounts After your 50th birthday, the PrimePath Pro 10 fixed index annuity provides you two choices for taking lifetime payments. Level lifetime payments This option provides a level payment amount for either the rest of your lifetime or the joint lifetime of you and your spouse. Any excess withdrawals that you may choose to take from your PrimePath Pro 10 annuity’s accumulation value will reduce your future lifetime payments by a proportional amount. Increasing lifetime payments This option starts at a lower initial payment amount than the level payment option, but has the possibility of increasing each year, based on the weighted average interest credit percentage.
Lifetime payment percentages (LPPs)
Level LPP
Attained age of covered person
SINGLE covered person
JOINT covered person
50 55 60 65 70 75 80
3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00%
3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50%
85+
Increasing LPP SINGLE covered person
Attained age of covered person
JOINT covered person
50 55 60 65 70 75 80
2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00%
2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%
85+ 5.50% Lifetime payment percentages increase by 10 bps for each attained age between ages 50 and 85.
When the client starts his lifetime payments, he talks with his financial professional about whether he wants a level payment amount for the higher initial LPA or if he is interested in the increasing payment option (with an initially lower payment) that may be able to help protect purchasing power of his lifetime payments.
LPA example
Level LPA
Increasing LPA
Hypothetical example Benefit base: $179,085 Age: 70 (issue age 60) Level payout: 5.50% Increasing payout: 4.50%
Initial
$9,850 $9,850 $9,850
$8,059 $9,342 $10,830
Age 75 (5 years) Age 80 (10 years)
$18000
LPAs elected
$16000
Increasing option
$14000
$12000
Level option
$10000
$8000
LPA increase percentage: LPA increase percentage is 3%, which is 100% of the hypothetical assumed weighted average interest credit percentage.
$6000
$4000
$2000
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
$0
1
Years
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
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Flexibility for unexpected paths Penalty-free withdrawals
Your annuitization payout options You can choose to receive annuity payments based on your choice of several annuity options. Once you elect an annuitization option, it cannot be changed, and all other rights and benefits under the annuity end. The payment amount and number of payments will be based on your annuity’s surrender value and the annuitization option you choose (state variations may exist). See table below for available payout options.
Like most annuities, you’ll be limited in when and how much you can withdraw from your annuity penalty-free. However, PrimePath Pro 10 is intended to be a long-term product to provide lifetime income in retirement. After the first contract anniversary, a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 7% of the accumulation value as of the beginning of the contract year may be taken each year. After the surrender charge period, surrender charges, and a market value adjustment no longer apply to any withdrawals. Withdrawals may be treated by the government as ordinary income. If taken before age 59 1/2, you may also have to pay a 10% IRS penalty. Withdrawals will reduce your accumulation value accordingly. Nursing home confinement waiver (may not be available in all states) For the rider, the term “covered individual” is the annuitant on the contract. If the covered individual becomes confined to a qualified nursing care center, as defined in the rider, up to 100% of your accumulation value without a surrender charge or MVA, if applicable, is available each year while the covered individual is confined. If 100% of the accumulation value is taken, it will be considered a full surrender. This rider is automatically included with your annuity at no additional charge. If joint annuitants are named on the annuity, waiver will apply to the first annuitant who qualifies for the benefit. Annuitization As an alternative to the lifetime payment amount, PrimePath Pro 10 annuity offers annuity payout options. Discuss with your financial professional the differences between annuitization (electing an annuity payout option) and taking LPAs.
Payout options
With the exception of life income options, income options are available from five to 20 years. Choose from:
• income for a specified period • income for a specified amount • life income with a period certain • life income • joint and survivor life income
For Florida:
You may select an annuity payout option based on the Accumulation Value at any time after the first contract year. The following options are available: • life income • life income with a 10-year or 20-Year period certain • joint and survivor life income
• joint and survivor life income with 10-year or 20-year period certain
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Market value adjustment (MVA) Your contract also includes a market value adjustment feature – which may decrease or increase your surrender value depending on the change in the index value of the market value adjustment external index since your annuity purchase. Due to the mechanics of a market value adjustment, surrender values generally decrease as the market value adjustment external index rises or remains constant. When the market value adjustment external index decreases enough over time, the surrender value generally increases. However, the market value adjustment is limited to the surrender charge or the interest credited to the accumulation value in all states except California . In California , the market value adjustment is limited to the surrender charge or 0.50% of the accumulation value at the time of surrender. This adjustment is applied only during the market value adjustment period to surrenders exceeding the applicable penalty-free allowance.
Surrender charges During the surrender charge period, a surrender charge is assessed on any amount withdrawn, as a partial or full surrender, that exceeds the penalty-free amount and may result in a loss of premium. Additional premiums deposited into existing contracts will maintain the surrender charge schedule set forth at policy issue date. Certain annuity payout options may incur a surrender charge. A surrender during the surrender charge period could result in a loss of premium. Surrender charges may vary by state.
Surrender charge schedule Contract year 10-year 1 10% 2 10% 3 10% 4 10% 5 10% 6 9% 7 8% 8 7% 9 6% 10 4% 11+ 0% Surrender charge schedule state variations
10-year AK, CT, DE, HI, ID, IL, MA, MD, MN, MO, MT, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, WA
Contract year
10-year CA*
1
9% 9% 8% 7% 6% 5% 4% 3% 2%
8%
2 3 4 5 6 7 8 9
7.45% 6.5%
5.5%
4.55% 3.55% 2.55%
1.5%
0.50% 0.44%
10
1%
11+
0%
0%
*For California: The surrender charge percentage in the 10th contract year will decrease 0.04% monthly until the surrender charge equals 0.00%. The decrease will occur on the same day in each month as the date of the contract anniversary; if the date does not exist for a given month, the date for that month will be the last calendar day of the month. A surrender during the surrender charge period could result in a loss of premium.
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What if... LPA multiplier
Here’s a hypothetical example of how this could work for you. At age 70, the client decides to turn on his level LPAs, which in our example, is $9,850 annually. If eligibility requirements are met, the LPA multiplier can then double the level LPA to $19,700 annually for up to five years of payments.
If an unpredictable event leaves the covered person unable to perform at least two of the six “Activities of Daily Living” (ADLs) as defined in the contract, the lifetime payment amount can double for up to five years of payments or until the accumulation value equals zero, as long as the covered person continues to meet the requirements on each annual payment date. To take advantage of this benefit, additional conditions have to be met as defined in the contract. Increased payments will not begin until 90 consecutive days after the lifetime payment election date. Regardless if you choose the level or increasing LPA option, your LPA multiplier benefit is double the LPA for the current year.
Age 70 • Begin single annuitant lifetime annual payment
$19,700
$9,850
Level LPA
With 2x LPA multiplier
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
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What if... Spousal continuance Before the LEPD
Death benefit Even if you purchased your annuity for lifetime payments, the PrimePath Pro 10 annuity’s death benefit provides the opportunity to leave your annuity’s value to loved ones. If you should pass away, your beneficiaries have the option to receive your Benefit Base paid out in five equal annual payments. Alternatively, your beneficiaries also have the option to receive any remaining accumulation value as a lump sum. Only one Death Benefit will be paid. Your beneficiary has the option to elect either the death benefit offered under the contract or the rider death benefit as long as the rider is not in the settlement phase.
If your spouse is your sole beneficiary, then your spouse can continue the annuity contract until he/she is ready to start taking LPAs. After the LPED, spousal continuance of the benefits rider is not available. If the annuity contract is continued, then the benefits rider will terminate. If joint income is elected on your PrimePath Pro 10 annuity, your spouse can continue taking LPAs for the rest of his/her life. LPAs cannot continue if single life withdrawals are taken.
Value at death
$220,000
Total $179,085
Hypothetical death benefit example Assumptions:
$200,000
$35,817
$180,000
$160,000
• $100,000 initial premium • No additional premium, no withdrawals
$35,817
$140,000
$120,000
• 10-year accumulation prior to death; the weighted average interest credit percentage is an assumed and hypothetical rate of 3%
$35,817
$100,000
$80,000
$134,392
$35,817
$60,000
$40,000
$35,817
$20,000
$
Or
Accumulation value lump sum
Benefit base 5-year payout
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
Sammons Financial® is the marketing name for Sammons® Financial Group, Inc.’s member companies, including North American Company for Life and Health Insurance®. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, North American Company for Life and Health Insurance. A.M. Best is a large, third-party independent reporting and rating company that rates an insurance company on the basis of the company’s financial strength, operating performance, and ability to meet its obligations to policyholders. S&P Global Ratings is an independent, third-party rating firm that rates on the basis of financial strength. Ratings shown reflect the opinions of the rating agencies and are not implied warranties of the company’s ability to meet its financial obligations. The ratings apply to North American’s financial strength and claims-paying ability. A) A.M. Best rating affirmed on August 29, 2023. For the latest rating, access ambest.com. B) Awarded to North American as part of Sammons® Financial Group Inc., which consists of Midland National® Life Insurance Company and North American Company for Life and Health Insurance®. C) S&P Global rating assigned Feb. 26, 2009 and affirmed on May 24, 2023. D) Fitch Ratings, a global leader in financial information services and credit ratings, on Nov. 30, 2023, assigned an Insurer Financial Strength rating of A+ Stable for North American. This rating is the fifth highest of 19 possible rating categories. The rating reflects the organization’s strong business profile, low financial leverage, very strong statutory capitalization and strong operating profitability supported by strong investment performance. For more information access fitchratings.com.
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This brochure is for solicitation purposes only. Please refer to your contract for any other specific information. With every contract that North American Company for Life and Health Insurance® issues there is a free-look period. This gives you the right to review your entire contract and if you are not satisfied, return it and have your premium returned. Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from the accumulation value for optional benefit riders or strategy fees or charges associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index. The PrimePath® Pro 10 is issued on form NA1008A/ICC16-NA1008A.MVA (contract), AE577A/ICC15-AE577A, ICC15-AE579B, AE581A/ICC15-AE581A, AE583A/ICC15-AE583A, AE584A/ICC15-AE584A, AE587A/ICC15-AE587A, AE589A/ICC15-AE589A, AE620A/ICC22-AE665A, AE629A/ICC19-AE629A, ICC20-AE641A, ICC20-AE642A, AE644A.2/ICC20- AE644A.2, AE645A/ICC20-AE645A, and AE665A/ICC22-AE665A (riders/endorsements) or appropriate state variation. This product, its features, and riders may not be available in all states. The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product. Premium taxes: Accumulation value and surrender value and death benefit, will be reduced for premium taxes as required by the state of residence. Special notice regarding the use of a living trust as owner or beneficiary of this annuity. The use of living trusts in connection with an annuity contract can be a valuable planning mechanism. However, a living trust is not appropriate when mass-produced in connection with the sale of an insurance product. We strongly suggest you seek the advice of your qualified legal advisor concerning the use of a trust with an annuity contract. Neither North American, nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Consult with and rely on a qualified advisor. Under current law, annuities grow tax deferred. Annuities may be subject to taxation during the income or withdrawal phase. The tax-deferred feature is not necessary for a tax-qualified plan. In such instances, you should consider whether other features, such as the death benefit, lifetime annuity payments, and any other features make the contract appropriate for your needs. Withdrawals taken prior to age 59 1/2 may be subject to IRS penalties. The “S&P 500®”, “S&P Multi-Asset Risk Control 5% Excess Return Index”, “S&P Maestro 5 Index Excess Return”, “S&P 500® Low Volatility Daily Risk Control 5% Index”Index”, (“the Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by North American Company for Life and Health Insurance® ( (“the Company”). S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). It is not possible to invest directly in an index. The Company’s Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Company’s Product or any member of the public regarding the advisability of investing in securities generally or in the Company’s Product particularly or the ability of the Indices to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to the Company with respect to the Indices is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Indices are determined, composed and calculated by S&P Dow Jones Indices without regard to the Company or the Company’s Product. S&P Dow Jones Indices has no obligation to take the needs of the Company or the owners of the Company’s Product into consideration in determining, composing or calculating the Indices. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Company’s Product. There is no assurance that investment products based on the Indices will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, “promoter” (as defined in the Investment Company Act of 1940, as amended), “expert” as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDICES OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE COMPANY, OWNERS OF THE COMPANY’S PRODUCT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDICES OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDICES HAVE ANY CONTROL OVER, THE COMPANY’S PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.. Morgan Stanley Dynamic Contribution and Morgan Stanley Dynamic Global Index (the “Index” and applicable for both) are the property of Morgan Stanley & Co. LLC. Any product that is linked to the performance of the Index is not sponsored, endorsed, sold or promoted by Morgan Stanley & Co. LLC, or any of its affiliates (collectively, “Morgan Stanley”). Neither Morgan Stanley nor any other party (including without limitation any calculation agents or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing this product. In no event shall Morgan Stanley have any liability for any special, punitive, indirect or consequential damages including lost profits, even if notified of the possibility of such damages. The Index is the exclusive property of Morgan Stanley. Morgan Stanley and the Index are service marks of Morgan Stanley and have been licensed for use for certain purposes. Neither Morgan Stanley nor any other party has or will have any obligation or liability to owners of this product in connection with the administration or marketing of this product, and neither Morgan Stanley nor any other party guarantees the accuracy and/or the completeness of the Index or any data included therein. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product, without first contacting Morgan Stanley to determine whether Morgan Stanley’s permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley. In calculating the performance of the Index, Morgan Stanley deducts, on a daily basis, a servicing cost of 0.50% per annum. This reduces the positive change or increase the negative change in the Index level and thus decreases the return of any product linked to the Index. The volatility control calculation applied by Morgan Stanley as part of the Index’s methodology may decrease the Index’s performance and thus the return of any product linked to the Index. In addition, because the volatility control calculation is expected to reduce the overall volatility of the Index, it will also reduce the cost of hedging certain products linked to the Index.
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North American is a Sammons Financial Group company. We are committed to our customers, distribution partners, employees and communities – and the deeply rooted belief that we grow stronger together. With so much change happening in the world, people are looking for companies that can stand the test of time. They need a partner that can weather life’s storms. That’s us. For over a century, we have been here for our customers and honoring our commitments. And because we’re privately owned, we don’t measure our impact by the number of years we’ve been in business, investor goals or size of the company. We are proud of our impact of the financial futures we help secure, and the legacies we help establish. We believe that we aren’t here to serve just today’s customers, but customers for generations to come. As we look ahead to our next hundred years, that fundamental principle remains rich in its vision. No matter how much change happens in the world around us, we strive to find new ways to create value for our customers. Just like always.
North American has continued to earn high ratings, based on our financial strength, operating performance, and ability to meet obligations to our policyholders and contract holders. North American currently holds the following ratings: “ A+ ” A.M. Best A,B (Superior) (Second category of 15) S&P Global Ratings B,C (Strong) (Fifth category of 22) Fitch Ratings D (Stable) (Fifth category of 19)
Ratings are subject to change.
Not FDIC/NCUA Insured Not A Deposit Of A Bank
Not Bank Guaranteed
West Des Moines, Iowa NorthAmericanCompany.com
May Lose Value
Not Insured By Any Federal Government Agency
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