How an Index Account Works
Indexed Universal Life Insurance
It provides two main advantages:
Death Benefit Protection and an Index Account that Shields You from Negative Returns through a zero percent floor and subject to a cap.
Rules of the Game
If the Index Account were a game of football and the football team an index selection in a life insurance policy, here’s a breakdown of how the Index Account works in simple terms.
It's always first down.
You can never lose yards.
Up to a 12 yard gain per play.
North American changes the rules!
Watch the Play-By-Play below.
The Play-By-Play
Take a look at what happens with these "new rules" in the play-by-play below!
BACK TO STARTClick on the "Next" button or the numbers here to view Play-By-Play!
SCROLL TO GAME SUMMARY
Under normal rules, the team would have gained a total of 19 yards (gains of 10, 8, and 19 with a loss of 18 yards) and the ball would have been spotted at the 39-yard line.
However, with the new rules, the team, gained 30 yards and the ball is spotted squarely at the 50, which is an
extra 11 yards downfield!
What does this mean for you?
Imagine if the football team was an Index Selection such as S&P 500® Annual Point-to-Point in a life insurance policy. The maximum 12-yard rule represents the cap rate, and the fact you never lose yards is similar to no downside risk. Each play is a year and the yardage gains are locked in interest crediting!
Talk to your North American financial professional for details on how you can put an Indexed Universal Life Inurance policy to work for you.
Indexed Universal Life products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.
THE S&P 500® COMPOSITE STOCK PRICE INDEX;
THE S&P 400® COMPOSITE STOCK PRICE INDEX;
These Indices do not include dividends paid by the underlying companies.
The S&P MidCap 400® and the S&P 500® Indices are products of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by North American Company for Life and Health Insurance (the Company). Standard & Poor’s®, S&P®, S&P MidCap 400® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. The Company’s Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P MidCap 400® and S&P 500® Indices.
Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. Therefore, the planned periodic premium may not be sufficient to carry the contract to maturity. The Index Accounts are subject to caps and participation rates. In no case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional detail. The policy’s death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured’s death. For costs and complete details, call or write North American Company for Life and Halth Insurance, Sioux Falls, SD 57193 Telephone (877) 872-3656.