Is the North American Charter Plus 10 a Good Annuity?
The North American Charter Plus 10 is a 10-year fixed index annuity issued by North American, designed for accumulation with a premium bonus. If your goal is lifetime income, see our North American Income Pay Pro 10 or NAC BenefitSolutions 10 review instead. The verdict: a 25% bonus and 135% Morgan Stanley participation, but a 0.95% rider fee and weak capped strategies.
- Best for: $75,000 or more of growth money you won’t touch for 10 years.
- Not for: buyers who need guaranteed lifetime income or full access to their money before year 10.
North American Charter Plus 10 at a Glance
| Feature | Details |
|---|---|
| Purpose | Accumulation with a premium bonus (no income rider) |
| Carrier | North American Company for Life and Health Insurance (AM Best A+, S&P A+, Fitch A+) |
| Surrender schedule | 10% / 10% / 9% / 9% / 8% / 8% / 7% / 6% / 4% / 2%, then 0% (varies by state) |
| Market value adjustment | Yes, during the surrender period (how an MVA works) |
| Premium | $75,000 minimum for the high band shown here; $2,000,000 maximum; added premiums allowed |
| Issue ages | 0 to 79 (owner and annuitant) |
| Free withdrawal | 10% of accumulation value a year after the first anniversary; RMDs penalty-free |
| Bonus | 25% with the Enhanced Bonus Rider (16% base plus 9% rider), on premiums in years 1 to 3; recaptured on early surrender |
| Rider | Enhanced Bonus Rider, 0.95% of accumulation value a year for 10 years |
| Waivers | Nursing home, up to 100% of value after year 1, with no bonus recapture |
| Death benefit | Full accumulation value, bonus included, no recapture |
| Guaranteed minimum value | Starts below premium: $88,413 in year 1 on $100,000 |
| Illustration basis | Illustration October 15, 2026: male, 60, Arizona, $100,000 non-qualified |
What Does the North American Charter Plus 10 Pay?
| Index strategy | 1-year | 2-year | Backtest, 1-yr / 2-yr |
|---|---|---|---|
| Morgan Stanley Dynamic Global Enhanced Par (0.95% fee) | 135% | 190% | 6.46% / 7.90% |
| Barclays Transitions 12 VC | 40% | 60% | 6.20% / 7.68% |
| Barclays Transitions 6 VC | 75% | 125% | 5.49% / 7.26% |
| Fidelity Multifactor Yield 5% ER Enhanced Par (0.95% fee) | 120% | 190% | 4.71% / 6.58% |
| S&P MARC 5% ER | 85% | 120% | 4.59% / 5.58% |
| Morgan Stanley Dynamic Global | 85% | 130% | 4.10% / 5.56% |
| Fidelity Multifactor Yield 5% ER | 85% | 120% | 3.35% / 4.25% |
| Goldman Sachs Equity TimeX | 40% | 70% | 3.52% / 5.08% |
| S&P 500 participation | 20% | 25% | 3.28% / 3.47% |
| S&P 500 annual cap | 6% cap | n/a | 4.77% |
| S&P 500 monthly sum cap | 1.4% cap | n/a | 2.85% |
| 1-year fixed account | 3.00% (0.25% minimum) | ||
North American rates via Annuities Genius, October 15, 2026 (high band with the Enhanced Bonus Rider). Backtest = 10-year average at those rates; hypothetical. Rates vary by state and change often.
What stands out:
- Best no-fee option: Barclays Transitions 12 VC at 60% on the 2-year term, backtested at 7.68%.
- Double fee on 2-year terms: the 2-year Enhanced Par strategies charge 0.95% a year, twice per term.
- Skip the caps: the 6% annual cap and 1.4% monthly cap both backtest under 4.8%.
- Built-in drag: Goldman Sachs TimeX and Morgan Stanley Dynamic Global deduct 0.50% a year inside the index.
Compare them with current fixed index annuity rates and our bonus annuity rates tracker.
Hypothetical Historical Rate of Return
Our illustration put 100% in the 1-year Morgan Stanley Dynamic Global Enhanced Par strategy at 135%. It uses 2016 to 2025 index data at October 2026 rates.
| Year | Hypothetical value | Cash surrender value | Guaranteed cash value |
|---|---|---|---|
| 1 | $131,651 | $93,486 | $88,413 |
| 5 | $190,028 | $161,346 | $92,514 |
| 10 | $194,048 | $188,055 | $109,537 |
Includes the 25% bonus, after the 0.95% rider fee. Annual effective rate 6.46%. Hypothetical, not guaranteed.
- Backtest caveat: Morgan Stanley Dynamic Global launched in March 2022, so most of this decade is simulated.
- Flat years still cost the fee: the strategy credited 0% in 2022 and 2024, and the value dipped by the rider charge.
- Our planning range is 4% to 7% a year. Participation rates reset each term and rarely stay this high.
- MYGA benchmark: At today's top 10-year rate of 6.30% (compound), $100,000 grows to about $184,218 over 10 years, a gain of $84,218. See current MYGA rates.
Hypothetical vs. guaranteed
Use our fixed annuity calculator to compare this hypothetical value to the guaranteed growth you would earn in a fixed annuity.
Get your North American Charter Plus 10 illustration for your age and state
Send us your premium amount, your state, and when you need the money. We will come back with current numbers on this contract and comparable ones from the 90+ top annuity companies on our platform, in writing.
North American Charter Plus 10 Strengths and Red Flags
What it does well
- 25% premium bonus, paid in full at death with no recapture.
- Deep menu: 20 index strategies across 7 indexes, plus a 3.00% fixed account.
- AV true-up: a one-time refund at year 10 if strategy charges exceeded interest credited.
Red flags
- No income rider: income comes only from annuitizing or from withdrawals.
- 0.95% Enhanced Bonus Rider fee cost $17,203 over 10 years in our illustration.
- Bonus recapture starts at 100% in year 1 in most states and falls 10 points a year.
- The bonus can change: North American can modify or end the bonus increase without notice.
- 87.5% floor: the guaranteed minimum value starts below your premium.
Final verdict: the North American Charter Plus 10 is built for bonus-driven accumulation. It earns our 4.25 rating for 10-year money placed in its participation-rate strategies. For lifetime income, the Income Pay Pro 10 or NAC BenefitSolutions 10 fits better than the North American Charter Plus 10.
Compare live rates on 137 fixed index annuities or visit our annuity review database.
Other North American Reviews
Also based on: North American Charter Plus 10 rates, product details and illustration via Annuities Genius, October 15, 2026; S& P Global Ratings.
This review is for educational purposes only and is not a recommendation or an offer to sell any annuity. Product features, index options, and rates can and do vary by state, and this product is not available for sale in every state. Always request a carrier illustration and work with a licensed annuity agent before you buy.
Frequently Asked Questions
Does the North American Charter Plus 10 have an income rider?
No. Income comes only from annuitizing or taking withdrawals. For a guaranteed lifetime income rider, see the North American Income Pay Pro 10.
Is the Charter Plus 10 bonus recaptured at death?
No. The bonus is not recaptured at death, on penalty-free withdrawals, on RMDs, or under the nursing home waiver.
How much is the Charter Plus 10 bonus?
25% as of October 2026: a 16% base bonus plus 9% from the Enhanced Bonus Rider. It applies to premiums paid in the first three years.
Is North American a good annuity company?
North American is rated A+ by AM Best, S&P and Fitch, and is part of Sammons Financial Group. See our North American company review.
