Build an Above Average Future

Did you know that life insurance can help you while you're living?

Although the primary purpose of life insurance is to provide a death benefit to your beneficiaries after you die, life insurance can also help you while you’re living as part of a well-structured financial plan.

The Distractions

Many people are so distracted by their everyday life that their financial strategy may have suffered.

The Averages

of adults wish they had put more money away, whether for retirement, emergency expenses, or their children's education.¹

The average US household only owns enough life insurance to replace three years of income.²

There's certainly something getting in the way of planning for the future.

Read on to see how life insurance can help you build an above average future.

Planning for the Future

Let’s narrow it down to some key areas that may impact your financial future.

Would your family be able to continue their current lifestyle should you die prematurely?

of households have a life insurance coverage gap.

Did you know?

Using LIMRA’s Life Insurance Needs Model, LIMRA estimates that 48 percent of households (60 million) have a life insurance coverage gap of $200,000 on average. That’s 60 million families who need more life insurance than they currently have. Overall, 7 out of 10 households said they would have trouble covering everyday living expenses if the primary wage earner died.³

Do you know someone who has been financially impacted by a serious illness?

people have one or more chronic health conditions. One out of four adults have two or more chronic health conditions.⁴

Did you know?

People are living longer, but that doesn’t necessarily mean they are living healthier. The unexpected can and does happen. How would you pay for the costs of a serious illness?

Someone in the United States dies from stroke every four minutes.⁵
About 610,000 people die of heart disease in the United States every year – that’s one in every four deaths.⁶

Are you confident that with your current financial strategy, you'll have enough money saved away for retirement?

was the average 401(k) balance at the end of 2015.⁷

Did you know?

According to a 2015 study by the Employee Benefit Research Institute, the average 401(k) balance at the end of 2015 was $73,357.⁷ Would that be enough money to get you through retirement?

Build an Above Average Future

With Life Insurance

How can you mitigate the risks that come with these concerns and build an above average future?

Indexed universal life insurance (IUL) can help mitigate all of these risks. It can provide:

	Death benefit protection
	Opportunity for cash value growth
	A way to help supplement retirement income
	Opportunity to access a portion of the death benefit while you're living

PROTECTION
CASH VALUE
RETIREMENT
LIVING BENEFITS
CONSIDERATIONS

Death Benefit Protection

A life insurance policy can help create a self-completing plan. Most savings plans are dependent upon someone earning and contributing to the plan. But what if you die before the plan is fully funded? Does your family’s dream for the future die with you? A self-completing plan can provide the dollar amount needed to meet your retirement goal should you die prematurely. Should you die, this plan can be immediately funded and help provide for your loved ones’ current and future needs. A permanent life insurance policy provides a death benefit if you die too soon, and the opportunity to help supplement your retirement income if you live a long time. Life insurance death benefit proceeds are also generally free from income tax when passed to your beneficiaries.

Growth Opportunity

Indexed Universal Life (IUL) insurance provides death benefit protection in case of the unthinkable, and potential tax-advantaged cash value growth based on the upward movement of a stock market index.

Tax‑deferred versus Tax‑advantaged

In addition to death benefit protection, when considering the need to help supplement your future retirement income, make sure to look at all of your options. Many employers match contributions up to a certain dollar amount or percentage to a company-sponsored retirement account, which usually offers tax‑deferred growth.⁸ Take full advantage of that retirement funding resource.

When seeking additional options to help supplement your retirement income, it may be beneficial to seek out sources of tax‑advantaged retirement funds. Tax‑advantaged money is taxed up front when earned, but not taxed when withdrawn.

Hypothetical Example

Let’s assume you and your significant other are starting retirement this year and require $100,000 per year after tax for living expenses. We’ll assume the current tax brackets, the current standard deduction for Married Filed Jointly, and 6% state income tax. To access 100% of the needed funds from only tax-deferred sources, you would need to withdraw $118,275. However, balancing the portfolio with a tax-advantaged funding source, you would only need to withdraw $61,340 from the tax-deferred source. A policy loan of $45,000 from the life insurance policy’s tax-advantaged cash value makes up the difference.⁹ Withdrawing less from the tax-deferred source lowers the annual tax bill.

Tax-deferred

Withdrawal:	$118,275
Taxes:	– 18,275
	$100,000

Total annual withdrawal: $118,275

Tax-deferred & Tax-advantaged

Tax-deferred:	$61,340
Taxes:	– $6,340
Policy loan:	+ $45,000
	$100,000

Total annual withdrawal: $106,340

Tax-deferred
Withdrawal:	$118,275
Taxes:	– 18,275
	$100,000
Total annual withdrawal: $118,275

Tax-deferred & Tax-advantaged
Tax-deferred:	$61,340
Taxes:	– $6,340
Policy loan:	+ $45,000
	$100,000
Total annual withdrawal: $106,340

The information presented is hypothetical and not intended to project or predict investment results.

Using the balanced option could save about $11,935 each year during retirement! That's a difference of $238,700 over a 20-year retirement!

Accelerated Death Benefits

Did you know that a life insurance death benefit could help while you are living? An accelerated death benefit can provide access to funds for a serious illness without liquidating assets. It allows the policyowner to receive a portion of the death benefit if the insured has been diagnosed by a physician with a qualifying illness.¹⁰ Plus, it’s an unrestricted benefit — the money can be used for any purpose.

Hypothetical Examples

If you were to suffer a severe heart attack and meet the qualifications for the critical illness benefit in your policy, you may elect to accelerate a portion of the death benefit on your life insurance policy to cover medical expenses and help with the mortgage.

If you were certified by your physician as chronically ill and meet the qualifications for the chronic illness benefit in your policy, you may elect to accelerate a portion of your death benefit to help pay for your nursing home stay and other expenses.¹⁰

If you were told by your physician that you have less than two years to live, and upon qualifying for the terminal illness benefit on your life insurance policy, you may elect to access a portion of your death benefit so you can take a vacation with your family.¹⁰

THESE BENEFITS ARE NOT AVAILABLE IN CALIFORNIA FOR THIS INDEXED UNIVERSAL LIFE INSURANCE PRODUCT.

Is indexed universal life insurance right for you?

There are also some things to consider when using indexed universal life insurance, such as:

Cost of insurance charges (COIs) or other charges: Life insurance comes with charges that you need to be aware of for planning purposes.
Loss of premium: Depending on funding, life insurance may not guarantee avoiding loss of premium.
Maintaining the death benefit: Additional premiums may be necessary to continue the desired death benefit, depending on funding.
Surrender charges: Withdrawals may be subject to surrender charges and the amount available for policy loans.⁹
Speak with your agent to determine if indexed universal life insurance is right for you.

Build Your Above Average Future Today

Help mitigate risks with North American's Indexed Universal Life Insurance.

Builder Plus IUL can provide:
	Death benefit protection
	Opportunity for cash value growth
	A way to help supplement retirement income
	Opportunity to access a portion of the death benefit while you're living

Learn more about our newest product, Builder Plus IUL.

Contact your North American representative today.

Learn more about North American Company.

THIS PRODUCT AND ITS BENEFITS ARE NOT AVAILABLE IN CALIFORNIA.

1. Bankrate’s Financial Security Index, May 4-7, 2017.

2. LIMRA, Trends in Life Insurance Ownership Study, 2016.

3. LIMRA, Facts About Life 2016, September 2016. http://www.limra.com/uploadedFiles/limra.com/LIMRA_Root/ Posts/ PR/ _Media/PDFs/Facts-of-Life-2016.pdf

4. Centers for Disease Control and Prevention. June 28, 2017. http://www.cdc.gov/chronicdisease/overview/index.htm

5. Centers for Disease Control and Prevention. September 6, 2017. https://www.cdc.gov/stroke/facts.htm

6. Centers for Disease Control and Prevention. November 28, 2017. https://www.cdc.gov/heartdisease/facts.htm

7. Issue Brief, No. 436. Employee Benefit Research Institute, August 3, 2017. https://www.ebri.org/pdf/briefspdf/EBRI_IB_436_K-update.3Aug17.pdf

8. The tax-deferred feature of the indexed universal life policy is not necessary for a tax-qualified plan. In such instances, you should consider whether other features, such as the death benefit and optional riders make the policy appropriate for your needs. Before purchasing this policy, you should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.

9. Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract (MEC), as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a MEC is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59 1/2, with certain exceptions. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

10. Subject to eligibility requirements. The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. An administrative fee is required at time of election.

Indexed Universal Life products are not an investment in “the market” nor in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

North American does not give legal or tax advice. Please consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

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 up on 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 Health Insurance, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Telephone: 877-872-0757.

Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s, or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.

Builder Plus IUL is issued on policy form series LS183 and Accelerated Death Benefit Endorsement for Critical, Chronic and Terminal Illness is issued on form series LR503 by North American Company for Life and Health Insurance, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products, features, riders, endorsements, or issue ages may not be available in all jurisdictions. Restrictions or limitations may apply.

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Did you know that life insurance can help you while you're living?

Although the primary purpose of life insurance is to provide a death benefit to your beneficiaries after you die, life insurance can also help you while you’re living as part of a well-structured financial plan.

The Distractions

Many people are so distracted by their everyday life that their financial strategy may have suffered.

The Averages

There's certainly something getting in the way of planning for the future.

Read on to see how life insurance can help you build an above average future.

Let’s narrow it down to some key areas that may impact your financial future.

p.p1 {margin: 5.0px; font: 18.0px Calibri}Did you know?

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With Life Insurance

How can you mitigate the risks that come with these concerns and build an above average future?

Click to learn more!