North American Guarantee Plus 3 Year Fixed Annuity
Minimum Deposit: $20,000 | 4.10% APY
$100,000+ | 4.55%
The North American Guarantee Plus 3 Year Fixed Annuity is designed to be a high-yield retirement savings account.
A fixed annuity or MYGA may be suitable for conservative investors who are looking for a safe and steady way to grow their retirement savings.
North American Guarantee Plus 3 Details
It’s never too early to start planning for retirement. Selecting a strategy that works best involves assessing your goals, time horizon, and risk tolerance.Â
The North American Guarantee Plus 3 is a single premium, multi-year guarantee annuity. An annuity is a long-term contract issued by an insurance company. In exchange for a premium payment, the insurance company agrees to make payments to you in the future.Â
This annuity provides an accumulation value that earns interest through a fixed account with a guaranteed interest rate that is set for a 3-, 5- or 7-year period. This annuity also provides several options for accessing funds.
The North American Guarantee Plus 3 may be appropriate for individuals who:
- Want a CD alternative due to low CD rates?
- Seek to accumulate money for retirement.
- Have a conservative risk tolerance and want to invest an inheritance or other lump sum.
- Want to secure a fixed annuity payment but not immediate income?
1. Withdrawal any amount free of charges and fees.
2. If you do nothing, the contract renews for the same term at the rates available at that time. Renewal rates for guarantee periods will be based on current economic conditions and are guaranteed to be no less than the guaranteed minimum interest rate of 1.00%.
| Base rate | 4.55% |
| Rate guaranteed | 3 years |
| Guaranteed yield to surrender | 4.55% |
| Guaranteed minimum renewal rate | .10% |
| Market value adjustment | Yes |
| Return of premium | No |
| PREMIUM PAYMENTS | |
| Type | Single |
| Maximum | $1,000,000 |
| Minimum | $20,000 |
| Free Look Period | 30 Days |
| AGE RESTRICTIONS | |
| Owner | 0 – 90 |
| Annuitant | 0 – 90 |
GUARANTEED RATE LOCK PERIOD
The rate is locked in for 45 days from the date the application is signed. If the funds are received after that period the rate might be subject to change and you will receive the rate in effect at that time.
FREE-LOOK PERIOD
30 days
WITHDRAWALS
- Free Withdrawals of accumulated interest are available in years 2 and 3.
- Interest-only withdrawals: Yes
- Cumulative: No
- Market value adjustment (MVA): Yes
- Return of premium: No
By current company practice, they can elect to receive interest withdrawal payments on a monthly, quarterly, semiannual, or annual basis. Called a systematic withdrawal, these scheduled payments are penalty-free but must be at least $50 each.
Nursing Home Confinement Waiver
After your first contract year, if you become confined to a qualified nursing care facility for 90 consecutive days, you can withdraw 100% of your accumulation value without a surrender charge and without the application of a market value adjustment (MVA).
You cannot be confined at the time your contract is issued. This rider is automatically included with your annuity at no additional charge. If joint annuitants are named on the annuity, the waiver will apply to the first annuitant who qualifies for the benefit, but not both.
Death Benefit Provisions:
Should you pass away before the end of your contract, the accumulated value of the annuity, including interest, will be passed to your beneficiary without any charges or fees.
Taxes:
In general, annuities grow tax-deferred, meaning you don’t pay taxes until you withdraw your money from the annuity.
When you withdraw from your annuity the interest earned will be taxed at your ordinary-income tax rate.
Non-Qualified Annuity
Non-qualified funds are cash, checking, savings, life insurance cash value, etc. Only the interest you have earned will be taxed as ordinary income.
Qualified Annuity
Qualified funds are 401k, IRA, SEP, 403b, TSA, etc. Both principal and interest will be taxed as ordinary income as you withdraw money.
Roth IRA Annuity
Withdrawals from Roth IRA annuities are tax-free if the IRS requirements are met.
Early-Withdrawals
If you withdraw money from your annuity before you turn age 59½, you may receive a 10% IRS penalty in addition to paying ordinary income taxes.
Pros of the North American Guarantee Plus 5 Year Fixed Annuity
- Pays a guaranteed interest rate much higher than current CD Rates are paying.
- Your interest grows tax-deferred meaning you do not pay taxes on your interest until you withdraw it from your annuity.
- The death benefit is full account value and may avoid probate.
- Liquidity options provide you the access to the money that you need.
Not available in: CA, NY, PR, VI
Visit our online annuity marketplace to view and compare more Fixed Annuity Rates. If you’d like an opportunity for more upside potential while maintaining principle protection you may want to consider a fixed index annuity.
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About North American
North American Company for Life and Health Insurance offers term and permanent life insurance and annuities, including:
- fixed index annuities (FIAs)
- traditional fixed annuities
- multi-year guarantee annuities (MYGAs)
- single premium immediate annuities (SPIAs)
The company was founded in 1886 and has stood strong to help protect those who counted on the company for financial security, even through two World Wars, the Great Depression, and multiple recessions.
In 1996, North American was acquired by Sammons Financial Group. Unlike many other financial services companies, North American is not publicly traded—meaning the company is not subject to short-term earnings pressures that are often faced by its publicly traded peers.Â
The company maintains strong industry ratings that are a direct result of the efforts of its dedicated employee owners and long-term growth strategy.
North American Ratings
North American Company is rated A+ by AM Best, A+ by Standard & Poor’s, A+ by Fitch, and B by Weiss and has an 89 Comdex Score.
| Rating Agency | Rating |
|---|---|
| A.M. Best Company (Best's Ratings, 15 Ratings) | A+ (2) |
| Superior. Assigned to companies that have, in our opinion, a superior ability to meet their ongoing obligations to policyholders. | |
| Standard & Poor's (Financial Strength, 20 Ratings) | A+ (5) |
| An insurer rated 'A' has STRONG financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings. | |
| Fitch Ratings (Financial Strength, 21 Ratings) | A+ (5) |
| Strong. 'A' IFS ratings denote a low expectation of ceased or interrupted payments. They indicate strong capacity to meet policyholder and contract obligations. This capacity may, nonetheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. | |
| Weiss (Safety Rating, 16 Ratings) | B (5) |
| Good. The company offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all of our rating criteria, and is likely to remain healthy for the near future. However, in the event of a severe recession or major financial crisis, we feel that this assessment should be reviewed to make sure that the firm is still maintaining adequate financial strength. | |
| Ranking (Percentile in Rated Companies) | 89 |
| The Comdex gives the average percentile ranking of this company in relation to all other companies that have been rated by the rating services. The Comdex Ranking is the percentage of companies that are rated lower than this company. |
Learn more about what these financial ratings mean
Compare the Guarantee Choice to other 3 Year Fixed Annuities
| Term | Insurer | Annuity | Rate | AM Best | Apply Online | |
|---|---|---|---|---|---|---|
| 3 Years | 
| Upstream Life | Secure Legacy | 5.65% | ||
| 3 Years | 
| SILAC | Secure Savings Elite | 5.40% | B+ | |
| 3 Years | 
| American Life | American Classic | 5.25% | B++ |
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