FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
115NB January 30, 2017
Uni
New IUL Products: Builder IUL
®
,
Guarantee Builder IUL
®
and Rapid
Builder IUL
®
New IUL Products Available!
North American is pleased to announce our newly revised Indexed Universal Life Insurance
products. The Builder IUL, Guarantee Builder IUL and Rapid Builder IUL products are
approved and available in all states EXCEPT CA, DE and MT. (We will inform you when these
become available).
Note: Survivorship GIUL will not be changing at this time.
What has changed?
New Index Selections
New index selections will be available for the single life IUL products, and some rarely used
selections will be discontinued. Changes include the following:
New uncapped indexed crediting strategy added- expense managed through a spread rate
New high participation rate index crediting strategy added
Daily Averaging will no longer be available as a crediting method.
Dow Jones Industrial Average
®
will no longer be available as an Index Selection.
Index selections and crediting methods now include: (new index selections highlighted)
INDEX
CREDITING METHOD
S&P 500
®
Annual Point-to-Point
S&P 500
®
Annual Point-to-Point with Spread (New Crediting Method)
High Participation S&P
500
®
(New Index)
Annual Point-to-Point
NASDAQ-100
®
Annual Point-to-Point
S&P Mid-Cap 400
®
Annual Point-to-Point
Russell 2000
®
Annual Point-to-Point
EUROSTOXX
®
50
Annual Point-to-Point
S&P 500
®
Monthly Point-to-Point
Uncapped S&P 500
®
Annual Point-to-Point
Multi-Index
Annual Point-to-Point
Learn more about the new Annual Point-to-Point with Spread Method in the updated IUL
Marketing Guide 241NM, which will be available after January 30, 2017.
For current caps and participation rates for the new index options, please see the updated
Caps and Participation Rates guide 311NM which will be available after January 30, 2017.
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
115NB January 30, 2017
Uni
Index Crediting for first month
Index crediting for payments received and applied to indexes within the first policy month of the
issue date will be modified to a shorter index maturity period (the first index credit will occur on
policy anniversary).The first annual statement will now show index credits based on index
growth for the first month’s premium. We’re excited to add this feature to help alleviate
policyholder questions about not seeing index credits on their first annual statements. Note: this
does not apply to the Monthly Point to Point Crediting Method.
Fixed Account Rate
The Fixed Account Guaranteed Interest Rate will be changing from 3% to 1.5%. We will be
crediting 3.75% on a current basis as of January 30, 2017.
Minimum Account Value
The guaranteed interest rate used for Minimum Account Value calculation will be changed from
3% to 2.5%. The Minimum Account Value True-Up period will also be changed from 8 years to
10 years, or upon death, lapse or surrender.
Variable Rate Loans
The minimum Variable Loan Rate will be reduced to 3.5%. This means the rate can vary
between 3.5% and 6%. The current rate remains 4.0% as of January 30, 2017.
Fixed Rate Loans
The loan rate charged for fixed loans will also be reduced to 2.75% in years 1-5 and 1.5% in
years 6+. The crediting rate for Standard Loans will be changing from 3% to 1.5%. The results
remain the same, with a Guaranteed Zero Net Cost Loan in years 6+.
NEW Systematic Premium Allocation
The Systematic Premium Allocation (SPA) feature will now be available on Builder IUL and
Guaranteed Builder IUL for single or recurring premiums. This feature effectively allows a
premium to be systematically spread out over 12 different index segment dates throughout the
year.
NEW Guaranteed Insurability Rider
The Guaranteed Insurability Rider will now be available on new versions of Builder IUL and
Guaranteed Builder IUL. This rider is designed to protect the future insurability of the insured
due to changes in vocation or health or to adverse factors relating to insurability.
Commission Rate Changes
The commission rates are changing on the new Indexed Universal Life products. Please ensure
you contact your upline to learn more about these changes or visit NorthAmericanCompany.com
for more information.
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
115NB January 30, 2017
Uni
Guarantee Builder IUL Premium Rate Changes
The new Guarantee Builder IUL will reflect higher premiums to guarantee the death benefit to
maturity. The magnitude of the change will depend on a number of factors including the issue
age, underwriting class, face amount, and funding pattern.
Transition Rules
Both new and old generation products will be available for issue between January 30 and
February 17, 2017. In order to receive the 'old' product versions, the applications must be
signed and received by the administrative office by February 17, 2017.
All financial professionals must be appointed or able to be appointed with the application signed
and received by February 17, 2017. If a new application is required due to the financial
professional not submitting business within the designated appointment rules, the new rates or
product will apply.
Illustration Software
The enhanced Builder IUL, Guarantee Builder IUL and Rapid Builder IUL will be available for
download on January 30, 2017 via North American’s NACIS Illustration Software (NACIS).
The old version of these products will remain on NACIS at the bottom of the product list through
March 31, 2017 for revised illustration purposes only on qualified cases.
Winflex 6.5
Effective February 6, 2017, Winflex will be introducing their upgraded platform, Winflex 6.5,
which will contain the new versions of the Builder IUL, Guarantee Builder IUL and Rapid
Builder IUL as well as the old product versions through March 31, 2017 (for revised illustration
purposes only on qualified cases). At that time, these will all be located in the product list box to
choose from. Please note that only the old generation single life IUL products will be available
on the current version of Winflex (version 6.0) before the February 6, 2017 software release.
Simple Submit
®
e-App
In order to receive the “old” versions of the Builder IUL, Guarantee Builder IUL and Rapid
Builder IUL products, be advised that regardless of signature method, the case must be locked,
signed by all signing parties, and submitted to the Administrative Office via e-app by February
17, 2017. Cases received after February 17, 2017 will receive the revised product, regardless of
the signature date.
Continued IUL Portfolio Strengths
Our indexed universal life products continue to offer the features you’ve come to appreciate.
Critical, Chronic and Terminal Accelerated Death Benefits
1
Zero Percent Floor
Index credits on full beginning of segment account value regardless of charges
Capped variable rate loans
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
115NB January 30, 2017
Uni
Guaranteed index interest rate bonus
No charges beyond age 100
Protected Death Benefit feature provides an option to guarantee
2
a portion of the death
benefit, while providing access to cash value
Application Availability & Dates
Please note the following important dates regarding the availability of new and old form kits.
Please be careful to select the correct form.
If you plan to utilize the “old” IUL products for the next few weeks, we encourage you to get
your app kits from Forms Factory or Supply Warehouse prior to February 10. As of February 10,
we will begin to update our form kits to reflect the new IUL product versions. See below for
more information.
SimpleSubmit e-app: will contain forms for the new IUL product versions as of January
30, 2017.
NACIS: Forms for the new IUL product versions will be available within the NACIS
Illustration software as of January 30, 2017.
Forms Factory: Form kits for the new IUL product versions will begin to be updated on
February 10, 2017. All kits will be updated to reflect the new IUL products on or before
February 17, 2017. Previous version of the IUL product kits will no longer be available
for states that have approved the new product versions after February 17, 2017.
Supply Warehouse: Form kits for the new IUL product versions will be available
starting February 10, 2017. Previous version of the IUL product kits will no longer be
available for states that have approved the new product versions after February 10, 2017.
Reminder: In order to receive the 'old' product versions, the applications must be signed and
received by the administrative office by February 17, 2017.
Learn More at the Webinar
If you are looking to learn more about the excellent IUL portfolio and sales concepts that we
offer, we invite you to join us for a webinar on February 1, 2017 @ 10am CST. Register now
to ensure you get all of the details on these product updates. Click HERE to register!
More Information
Want to learn more about our IUL product portfolio and the new products? View the updated
product pages on our Marketing Materials website.
Or contact Sales Development at 800-800-3656 Ext. 10411 & SalesSupport@nacolah.com.
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
115NB January 30, 2017
Uni
Disclosures
Builder IUL (issued on policy form series LS172), Guarantee Builder IUL issued on policy form series LS175), Rapid Builder IUL
(issued on policy form series LS176/LS176W with Waiver of Surrender Charge Option), Survivorship GIUL (issued on policy form
series LS171 without the Waiver of Surrender Charge and policy form series LS171W with the Waiver of Surrender Charge),
Guaranteed Insurability Rider (issued on form series LR495, or state variation ), Accidental Death Benefit Rider 2 (issued on form
series LR493), Accelerated Death Benefit Endorsement for Critical, Chronic and Terminal Illness is issued on form series LR477;
and Accelerated Death Benefit Endorsement for Terminal Illness is issued on form series LR466, and Accelerated Death Benefit
Endorsement - Chronic Illness is issued on form LR492, CA only are underwritten and issued by North American Company for Life
and Health Insurance, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products, features, endorsements, riders
or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply.
Indexed Universal Life products are not investments in the “market” or in the applicable index. They 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 Mid-Cap 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.
The EURO STOXX 50
®
is the intellectual property of (including registered trademarks) STOXX Limited, Zurich, Switzerland and/or
its licensors (“Licensors”), which is used under license. The Index Accounts for this Product based on the Index are in no way
sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect
thereto.
The NASDAQ-100
®
, NASDAQ-100 INDEX
®
and NASDAQ
®
are registered marks of the NASDAQ Stock Market Inc. (which with its
affiliates are the “Corporations”) and are licensed for use by North American Company for Life and Health Insurance Company. This
product has not been passed on by the Corporations as to their legality or suitability. This product is not issued, endorsed, sold or
promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO
THIS PRODUCT. THIS INDEX DOES NOT INCLUDE DIVIDENDS PAID BY THE UNDERLYING COMPANIES.
Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell
Indexes. Russell
®
is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or
omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or
Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without
Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.
These products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no
representation regarding the advisability of purchasing this life insurance contract. Indexed Universal Life is not sponsored,
endorsed, sold or promoted by the S&P 500
®
, S&P MidCap 400
®
, EURO STOXX 50
®
, NASDAQ-100
®
or Russell 2000
®
, and they
make no representation regarding the advisability of purchasing this policy or investing in these products.
1. 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 applies to each terminal and chronic election. There is no administrative fee for critical
illness. Critical benefit not available in Florida, California or Connecticut.
2. Some living benefits cannot be elected simultaneously. If the overloan protection benefit is elected, the accelerated death benefits and the
protected death benefit cannot be elected. If Policy has a Premium Guarantee Rider attached to it, such rider will be terminated upon the election
of the Protected Death Benefit. The Protected Death Benefit cannot be elected if the Over loan Protection Benefit is in effect.
Agents offering, marketing, or selling accelerated death benefits for chronic illness in California must be able
to describe the differences between benefits provided under an accelerated death benefit for chronic illness
and benefits provided under long-term care insurance to clients. You must provide clients with the ADBE
Consumer Brochure for California NAM-3013 that includes this comparison. Comparison is for solicitation
purpose only, not for conversions.

 

Louis G. LaBash

 

1-855-LESS-IRS

 

louis.labash@financialscenarios.net

For more information or contracting materials complete and send the form below: