Almost every indexed universal life policy was purchased on the strength of a projection. The illustration showed the account value compounding at an assumed index crediting rate, premiums ending at some point, and the policy sustaining itself for life. Years later the annual statement bears no resemblance to that projection, and the owner is left trying to work out what went wrong. Usually nothing went wrong in the sense of a breach. The illustrated rate was an assumption, and the levers that determine actual crediting, the cap, the participation rate, the spread, and the cost of insurance, sit with the carrier within contractual limits.
This page shows how to read a North American Company for Life and Health indexed universal life policy as it actually is, rather than as it was illustrated, and what your realistic choices are. Pine Lake Life Solutions is not affiliated with, endorsed by, or connected to North American Company for Life and Health Insurance or Sammons Financial Group. Pine Lake does not purchase policies. The offer here is a free, no-obligation policy review, nothing more.
In This Article
Where the Illustration and the Statement Diverge
An IUL illustration projects growth at an assumed rate built from a hypothetical index history. Your policy’s actual credit each segment is the index movement over that period, filtered through the crediting method and the carrier’s currently declared parameters.
Four mechanisms drive the gap. A cap limits the credit in a segment no matter how far the index moved. A participation rate credits only a stated percentage of the gain. A spread is subtracted before crediting. And a floor, usually zero, protects against a negative credit but does nothing to stop the monthly deductions, which continue in a flat year.
Chain a few low-credit or zero-credit years together and the account value never reaches the level the illustration assumed. Because the illustration also assumed those larger balances would absorb future charges, the shortfall compounds rather than staying constant. That mechanism, not carrier misconduct, is behind most letters informing an owner that additional premium is required on a policy sold as self-supporting.
Current Rates Are Declared, Not Fixed
Most IUL contracts guarantee a minimum cap and a minimum participation rate. Those guaranteed floors are typically far below the rates in effect when the policy was issued. Everything above the guaranteed minimum is a current declared rate, which the carrier may adjust.
The result is that an indexed policy issued during a period of higher caps can gradually become a weaker product without any term of the contract being violated. The flexibility was always in the policy language; it simply was not the focus of the sales conversation.
Ask North American for five figures for each index account: the current cap, the current participation rate, any current spread, and the guaranteed minimums for the cap and participation rate. Then ask for the guaranteed maximum cost of insurance rates. Together those define the worst outcome your contract permits, which is what a buyer models when pricing the policy.
A Four-Line Audit of Your Own Policy
Put the original illustration and the most recent annual statement side by side and compare four things.
First, the account value on the statement against the projected account value for the same policy year on the illustration. That difference is your cumulative shortfall. Second, total premiums actually paid against premiums the illustration assumed. Owners are frequently surprised to find they paid exactly as planned, which eliminates underfunding as the explanation. Third, total monthly deductions taken during the year, meaning cost of insurance plus policy and rider charges. Fourth, the interest or index credit actually applied for the year.
If deductions exceeded credits, the policy lost ground that year regardless of index performance. Repeat across three or four statements and the trajectory becomes unmistakable. Then request a current in-force illustration at current charges and crediting with no additional premium, and a second at guaranteed maximum charges with guaranteed minimum crediting. The projected year the account value hits zero under each is the number that should drive your decision, not the illustration you were shown at the point of sale.
| Figure to request | Why it matters | Guaranteed or current? |
|---|---|---|
| Index cap | Limits credit in a strong index year | Current, with a contractual minimum |
| Participation rate | Credits only part of the index gain | Current, with a contractual minimum |
| Spread or asset charge | Reduces the credit before it is applied | Current |
| Cost of insurance rates | The deduction that consumes account value | Current, with a guaranteed maximum |
| Projected lapse year | The single number that should drive the decision | Ask for both current and guaranteed scenarios |
Who Services North American IUL Policies in 2026
Indexed universal life blocks have changed hands across much of the industry, so it is reasonable to ask whether yours has. For North American, the answer is documented.
The company was founded in 1886 as the North American Accident Association in Chicago; A.E. Forest purchased it for two thousand dollars in 1890, and in 1918 it became the first company to offer disability insurance for women. It entered the brokerage marketplace in 1981 and was acquired by Sammons in 1996. It redomesticated to Iowa on September 27, 2007, for the stated purpose of simplifying regulatory compliance across the holding company system through a common regulator and reducing current and future tax costs related to anticipated annuity growth, and it is regulated by the Iowa Insurance Division under NAIC company code 66974.
North American is not in runoff. It continues to issue new individual life insurance, expressly including indexed universal life, along with annuities, through independent financial professionals. AM Best affirmed a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of aa- on August 13, 2025 with a stable outlook, the second highest of fifteen categories; S&P affirmed A+ (Strong) on May 15, 2025 and Fitch assigned A+ stable on June 17, 2025. The company reported more than 463,000 life policies in force as of December 31, 2024 and paid over 547 million dollars in life death claims during 2024. Ratings are opinions about claims-paying ability only and can change; confirm them directly.
Five Options When the Projection Has Failed
Increase premium to the level the current in-force illustration requires. This preserves the full death benefit and is right when the coverage is still needed and the cost is manageable.
Reduce the face amount. Cutting the death benefit lowers the net amount at risk and therefore the monthly cost of insurance, which can make a smaller policy sustainable. This is the most commonly overlooked option and the first one to price.
Reallocate among index accounts or into the fixed account. This changes future crediting but does not reduce charges, so it rarely rescues a policy on its own.
Surrender for the cash surrender value. Newer contracts may still carry surrender charges, and any outstanding loan is netted out. Ask for a dated figure in writing.
Seek a life settlement, in which a licensed institutional buyer purchases the policy for a lump sum, becomes the owner, and assumes all future premiums. Buyers price against the insured’s life expectancy and the projected cost of carrying the policy, so contracts with high guaranteed charges are worth less. Eligibility and value are never guaranteed and many submissions receive no offer. A free policy review puts the surrender figure, the reduced-face premium, and any offers received on one page. Pine Lake does not buy policies and does not provide legal, tax, or investment advice.
Closing at the Carrier
If you proceed with a sale, the last step belongs to North American. The carrier must record the change of ownership, and where applicable an absolute assignment, on its own books, and escrow is typically released only once that recording is confirmed in writing.
Request the current ownership change and assignment forms from North American rather than a third-party document site; carriers revise form versions and reject superseded ones. The company publishes service forms on its own website, including an Address and Name Change Request form, and the life service team can confirm which apply to your policy form number. If a trust owns the policy or sits on either side of the transfer, expect trust certification documentation.
North American’s life insurance policyholder line is 877-872-0757, or 712-847-1334 internationally, Monday through Thursday 7:30 a.m. to 5:00 p.m. and Friday 7:30 a.m. to 12:30 p.m. Central time. Correspondence goes to One Sammons Plaza, Sioux Falls, SD 57193. Verify all contact details with the carrier.
Frequently Asked Questions
Why does my IUL account value trail the original illustration so badly?
The illustrated rate was an assumption rather than a guarantee. Actual crediting passes through the current cap, participation rate, and any spread, and in flat or negative index years the credit can be zero while monthly deductions continue. Because the illustration assumed larger balances would absorb future charges, the shortfall compounds instead of staying flat.
Can North American reduce my cap or participation rate?
Current caps and participation rates are declared rates that the carrier may adjust, subject to the guaranteed minimums written into your contract. Those minimums are typically well below the rates in effect at issue. Ask the carrier for both the current and the guaranteed minimum figures for each index account so you can see the full range of outcomes.
What single document should I ask for first?
A current in-force illustration, run twice: once at current charges and current crediting with no additional premium, and once at guaranteed maximum charges with guaranteed minimum crediting. The projected year the account value reaches zero in each scenario tells you more than anything else about whether to fund, reduce, surrender, or sell.
Are indexed universal life policies bought in the secondary market?
Indexed universal life is regularly evaluated by licensed institutional buyers, because for many owners the realistic alternative is a lapse that returns nothing. Buyers weigh the insured’s life expectancy against the projected cost of carrying the policy, so contracts with high guaranteed charges are worth less to them. No offer, eligibility, or value can be guaranteed in advance.
Is Pine Lake affiliated with North American?
No. Pine Lake Life Solutions is not affiliated with, endorsed by, or connected to North American Company for Life and Health Insurance or Sammons Financial Group, and Pine Lake does not purchase policies. The policy review is free and carries no obligation, and nothing on this page is legal, tax, or investment advice.
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Related Reading
- Sell My North American Universal Life Policy
- Sell My North American Guaranteed Universal Policy
- Sell My North American Whole Life Policy
- How To Read In Force Illustration
- Evaluating Life Settlement Offer
- How To Compare Life Settlement Offers
- Life Settlement Vs 1035 Exchange
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.