NACO Annuity Changes
North American Announces
Annuity Changes Effective April 10, 2009
During these volatile economic times, North American remains focused on long-term value to you and your clients. Our dedication to delivering quality products, service and compensation that you have come to expect is our long-term commitment.
Today, our fixed annuity business continues to have a strong presence in the marketplace, and for this, we thank you - our valued agents - for being a key part of our success.
It’s important that we closely monitor our sales and capital to maintain our financial strength and quality ratings. We believe that it is necessary to make additional changes as our sales have exceeded our targets for the first quarter of 2009. This, combined with limited availability of capital to support higher sales levels, and our focus on long term values, leads us to make additional changes.
Effective Friday, April 10, 2009, we are making the following changes:
- Temporarily suspend sales of all variations of our Guaranteed Living Withdrawal Benefit Rider’s (GLWB’s) in all states
- Income Pay SM
- Guaranteed Income Advantage SM
- Guaranteed Income Advantage PlusSM
- Minimum premiums on all (including 2008/2009 new contributions to IRA accounts) fixed annuity applications will be raised to $25,000 for Qualified and Non-Qualified business. (We will continue to accept 403(b) salary reduction business at our current minimum premiums.)
- PLEASE NOTE: Multiple applications for the same owner/annuitant cannot be combined for the purposes of meeting the minimum premium.
- The following products will also be temporarily suspended for new sales
- North American DirectorSM
- Formula Choice®
- Formula Select ®
- North American Paramount Choice Ten SM
Important Note: Faxed applications (for Cash with App or Transfers) to hold or to apply for one of our GLWB riders or one of the above products must be faxed into the home office on Thursday, April 9, 2009 and the originals must be received in the home office by Friday, April 10, 2009 by 12:30 p.m. CST. Please no exceptions.
Fax Number: 866-322-7073.
As you may be aware, we offer competitive life insurance products that meet the needs of your clients. One of our goals in 2009 is to increase the growth of our life insurance business while managing the amount of annuity business we write. Many annuity agents, like yourself, are looking at selling more life insurance business. We strongly encourage you to take a look at the benefits of our life insurance products.