Last updated: July 21st, 2022
Reviewed by
Grant Desselle
Licensed Insurance Agent
Table of Contents
Our take
North American was founded in 1886 as the North American Accident Association. Over the years, the company underwent several changes and passed important milestones. In 1918, they became the first company to offer disability insurance to women. Today, their legacy lives on through their commitment to helping people plan for the future through their life insurance plans.
North American offers term life insurance and universal policies, as well as annuities that can be useful in planning for retirement. Their term life insurance rates are highly affordable, and some customers may wish to take advantage of their no-frills Classic Term policy, offering affordable rates without additional riders and add-ons.
Customers seeking whole or final expense insurance will have to look elsewhere. Additionally, they offer only one policy with accelerated underwriting. All other policies require a meeting with an agent, as well as a medical exam.
| North american Life Insurance Company Details | |
|---|---|
| A.M Best Rating | A+ |
| S&P Rating | A+ |
| BBB Rating | A+ |
| Customer Service Phone | 877-872-0757 |
| Website | www.northamericancompany.com |
| Address | North American Company One Sammons Plaza Sioux Falls, SD 57193 |
What we like
Affordable Term Life Insurance
North American’s term life insurance premiums are some of the most competitive in the industry. Customers willing to forgo riders and other add-ons can take advantage of their no-frills Classic Term policy.
Online Quotes Available
North American provides a remarkably simple tool that creates online quotes, offering a snapshot of the company’s rates for term life insurance.
High Coverage Amounts Available
North American provides term life coverage as high as $5 million.
What we don’t like
Insurance Can Only Be Purchased Through Agents
North American relies on insurance agents to determine coverage for the majority of their policies.
Medical Exam Required
At North American, nearly all of their policies require a medical exam. While they do have one option (LifeVue Term) that offers accelerated underwriting, there are limits for age and amount of coverage.
No Option for Whole/Final Expense Insurance
North American does not provide whole life insurance or final expense insurance products.
Products
Term
LifeVue Term
| Term Life Details | |
|---|---|
| Length of Coverage | 10, 15, 20, and 30-year periods |
| Minimum Coverage: | $50,000 |
| Maximum Coverage: | $500,000 |
| Estimated Time to Approval: | Immediate |
| Product Features: |
|
| Brochure: | Promise Term Brochure |
LifeVue provides term life insurance for those who wish to forgo a medical exam. Coverage ranges from $50,000 to a max of $500,000, though this drops to $300k for applicants in their 50s, and $200k for applicants over 60.
Classic Term
| Term Life Details | |
|---|---|
| Length of Coverage | 10 and 15 -year periods |
| Minimum Coverage: | $50,000 |
| Maximum Coverage: | $500,000 |
| Estimated Time to Approval: | One Day |
| Product Features: |
|
| Brochure: | Elite Term Brochure |
North American’s Classic Term provides term life insurance ranging from $500,000 to $5 million. It is only available in 10 and 15-year terms and offers no additional riders or policy options. It also requires a medical exam, and its prices are not locked in until you meet with an agent. But this plan does offer highly affordable “no-frills” term life coverage at competitive prices.
ADDvantage (Term Life)
| Term Life Details | |
|---|---|
| Length of Coverage | 10, 15, 20, and 30-year periods |
| Minimum Coverage: | $100,000 |
| Maximum Coverage: | $5 million |
| Estimated Time to Approval: | One Day |
| Product Features: |
|
| Brochure: | Elite Term Brochure |
North American’s ADDvantage plan provides term life insurance coverage ranging from $100,000 to $5 million. Plans are available for 10, 15, 20, or 30 years.
Their website provides initial quotes, but applicants will still need to meet with an agent and undergo a medical exam before prices can be finalized.
Universal Life
North American offers three universal life insurance plans.
Custom Growth CV
This plan provides a death benefit as well as cash value accumulation.
Custom Guarantee
This lower-cost option offers guaranteed death benefit coverage, though it’s generally a smaller benefit than other plans.
Custom TermGUL
This universal plan has a low minimum coverage amount of $25,000. Additionally, the plan includes the chronic illness accelerated rider at no additional cost.
Indexed Universal
An indexed universal life insurance plan is similar to a traditional universal plan in that it allows the policyholder to build cash value. The difference is that an indexed universal policy allows you to invest in stock market indexes such as the S&P 500 or Nasdaq. The potential for growth is higher than a traditional universal plan, but because this depends on the performance of the market, this plan also carries a higher level of financial risk.
North American provides four different indexed universal life insurance plans.
Builder IUL
This plan includes an accelerated death benefit rider as well as caps on variable interest rate loans. This plan is best for those looking for long-term cash value accumulation.
Guarantee Builder IUL
This plan includes an accelerated death benefit rider as well as a premium guarantee rider. Like the Builder plan, it also places caps on variable interest rate loans. This plan has a guaranteed death benefit up to age 120.
Rapid Builder IUL
This plan includes an accelerated death benefit rider, but its true selling point is its early cash value accumulation. This plan is best for those who want early access to cash value. It also provides an interest bonus on fixed and index accounts.
Survivorship IUL
This plan is intended to insure two people, paying a death benefit after the death of the second surviving policyholder.
Policy benefits
Riders
Accelerated Death Benefit Rider
This rider allows you to access a portion of the death benefit in the event you are diagnosed with a chronic or terminal illness.
Children’s Term Insurance
This rider allows you to add term life coverage for children between the ages of 15 days and 20 years.
Estate Preservation
This rider is available on survivorship policies, providing an additional death benefit of 125% (to a max of $10 million) if both policyholders die within four years of the issue date.
Guaranteed Insurability
Universal and indexed universal policyholders may use this rider to purchase additional insurance without an additional medical exam.
Cost
North American’s term life insurance rates are some of the most competitive in the industry, and their Classic Life plan may appeal to customers looking for basic, affordable life insurance.
North American offers excellent rates for their term life insurance policies, specifically their Classic Term. Their other policies offer more features, without adding additional expense.
Classic Term Cost
Classic term customers can expect highly-competitive rates. Here are some rates we obtained from their website’s online tool. These monthly rates are for a healthy man of varying ages and reflect a policy of $500,000:
| Age | 10-year policy | 15-year policy |
|---|---|---|
| 20-29 | $13.64 | $14.96 |
| 30-39 | $13.64 | $15.40 |
| 40-49 | $19.80 | $23.32 |
| 50-59 | $46.20 | $62.92 |
| 60-69 | $125.84 | $168.52 |
These rates fall significantly below industry averages. However, none of these estimates can be taken as final. Applicants will still need to meet with an agent and undergo a physical prior to receiving coverage. Nevertheless, this plan provides an affordable entry point to term life coverage.
ADDvanatage Term
The rates of North American’s ADDvantage term plans are similarly competitive. A healthy male in his 20s can get a 20-year, $250,000 policy for $13.64 per month. Women can receive the same policy for $12.10. Their rates go as low as $8.54 (for a healthy 20-year-old female purchasing a 10-year, $100k plan), making North American one of the most competitive in the industry.
Additionally, their rates remain consistently competitive across all age brackets. With some companies, customers can see a dramatic premium increase after they turn 50 or 60. With North American, a healthy male can receive a 20-year $500k policy starting at $83.60 per month. A 60-year-old male will receive the same policy for $242, which is a jump, but not as dramatic as other companies.
Of course, these quotes are not final. Applicants will have to meet with an agent before their rates are locked in. It’s also not clear whether these rates would increase following the mandatory medical exam. Still, these rates are highly competitive, and those looking for basic term life insurance can expect reasonable rates from North American.
Universal
North American does not provide estimates for their universal policies outside of a meeting with an agent. Due to the number of options and investment opportunities, applicants will also have to weigh the costs and benefits of these plans. Having an agent explain your options may be helpful, but some customers may prefer investing their money through traditional retirement plans and savings accounts.
Performance
North American enjoys great financial ratings from third-party sources.
Financial ratings
North American boasts of strong financial ratings:
- A.M. Best: A+ (superior)
- S&P: A+
- BBB: A+
Additionally, North American received a complaint ratio of 0.74 from the North American Insurance Commission—indicating they receive fewer customer complaints than other companies of similar size.
Customer reviews
Customer ratings
North American Life Insurance Company is rated 4.4 out of 5 based on verified True Blue Life Insurance customers.
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Brian is the founder and CEO of Insurist and carries Life, Health, and Property & Casualty licenses in all 50 U.S. states. Since 2013, Brian has been a member of Million Dollar Round Table, a designation for the top 1% of financial advisors worldwide. Brian has been featured in Yahoo! Finance, Money.com, Entrepreneur.com, Life Happens, Forbes, MSN, and Good Financial Cents. Brian’s goal is to show customers the best products, the quickest answers to their questions, and provide expert advice.
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Grant's past experience includes work as a licensed sales agent for Hagerty Insurance. He has reviewed thousands of existing auto policies across the nation and issued hundreds of new ones on everything ranging from classic cars undergoing restoration to modern exotics and motorcycles.
