Whole life is the policy type where the decision is least obvious, because you are never choosing between a settlement and nothing. A whole life contract carries a guaranteed cash surrender value and a set of nonforfeiture options, so there is always a floor. The question for a North American Company for Life and Health whole life owner is not whether the policy has value, but which way of realizing that value produces the most for your household.
This page walks through the three-way comparison, a life settlement offer against the net cash surrender value against the reduced paid-up option, and covers the company history and servicing facts that older whole life owners most often need. 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 only thing offered here is a free, no-obligation policy review so the numbers are in front of you before any decision is made.
In This Article
- An 1886 Company: Who Holds Your Policy Now
- Whole Life at North American: Mostly Legacy Business
- Financial Strength and Scale as of 2026
- The Three-Way Comparison Whole Life Owners Should Run
- How Dividends Change Every Number Above
- Change of Ownership and How to Reach the Carrier
- Frequently Asked Questions
An 1886 Company: Who Holds Your Policy Now
North American whole life contracts are frequently decades old, and the company name on the original application may not match what the owner remembers. The corporate lineage is worth knowing precisely.
The company was founded in 1886 as the North American Accident Association, a Chicago business. In 1890 A.E. Forest purchased the company for two thousand dollars and appointed its first general agent. In 1918 it became the first company to offer disability insurance for women. It expanded into the brokerage marketplace in 1981. In 1996 North American was acquired by Sammons, and it operates today as North American Company for Life and Health Insurance, a member company of Sammons Financial Group.
The important servicing fact for an in-force owner is the domicile change. North American redomesticated to Iowa on September 27, 2007, and the stated purpose was to simplify regulatory compliance for the holding company system by using a common regulator for the company and its affiliates, and to reduce current and future tax costs related to anticipated growth in the annuity business. The company is regulated by the Iowa Insurance Division under NAIC company code 66974. That was a change of regulator, not a sale of your policy. Your contract remains a North American contract administered by North American; there is no third-party runoff administrator between you and the carrier.
Whole Life at North American: Mostly Legacy Business
There is a distinction worth drawing here. North American continues to write new individual life insurance and is not in runoff. However, its currently marketed individual life lineup is described as term, universal life, and indexed universal life, alongside annuities, distributed through independent financial professionals.
For a whole life owner that suggests your contract is likely part of an older legacy block rather than a product the company sells today. Two consequences follow. First, your guarantees were priced under a different interest rate environment, and on many older whole life policies they are favorable relative to anything available now, which is a genuine argument for keeping the policy if you can afford it. Second, service representatives may need to pull the original policy form to answer detailed questions about nonforfeiture and dividend provisions, so allow time and ask for written answers.
Confirm with the carrier directly which product family your policy belongs to and whether it is participating. Do not assume from the policy name alone.
Financial Strength and Scale as of 2026
Two categories of information matter here: the rating agencies’ opinion of claims-paying ability, and the company’s actual operating scale.
On August 13, 2025, AM Best affirmed North American’s Financial Strength Rating of A+ (Superior) and its Long-Term Issuer Credit Rating of aa-, with a stable outlook, in the same action that covered Midland National and Sammons Financial Group. AM Best cited very strong balance sheet strength, strong operating performance, a favorable business profile, and appropriate enterprise risk management. A+ is the second highest of AM Best’s fifteen financial strength categories. S&P Global Ratings affirmed A+ (Strong) on May 15, 2025, and Fitch Ratings assigned A+ with a stable outlook on June 17, 2025.
On scale, North American reported more than 463,000 life insurance policies in force as of December 31, 2024, alongside more than 234,000 annuity policies, and stated that it paid over 547 million dollars in life insurance death claims during 2024. Those figures are year-stamped; confirm current numbers with the carrier. Ratings speak to the ability to pay claims and nothing more.
| Option | Cash to you | Coverage that remains | Premium going forward |
|---|---|---|---|
| Keep the policy | None | Full death benefit | Continues |
| Cash surrender | Guaranteed cash value plus dividend accumulations, less loans and charges | None | None |
| Reduced paid-up | None | Smaller, fully paid-up death benefit | None |
| Extended term | None | Full face amount for a limited number of years | None |
| Life settlement | Lump sum if an offer is made | None | Assumed by the buyer |
The Three-Way Comparison Whole Life Owners Should Run
Because whole life guarantees cash value, the settlement question has to be answered against a floor rather than against zero.
Column one is the net cash surrender value: guaranteed cash value, plus dividend accumulations if the policy is participating, minus any outstanding policy loan and accrued interest, minus any remaining surrender charge. Ask the carrier for this figure as of a specific date, in writing.
Column two is reduced paid-up, a nonforfeiture election that converts your existing cash value into a smaller death benefit that is fully paid up, with no further premium ever due. For an owner whose only problem is the premium, and who still wants coverage for a spouse or an estate, reduced paid-up is often the quietly correct answer. Extended term insurance is the other common election and keeps the full face amount for a limited number of years instead.
Column three is a life settlement, in which a licensed institutional buyer purchases the policy for a lump sum and assumes all future premium obligations. It is only worth pursuing when the offer meaningfully exceeds the net surrender value. Because whole life carries substantial guaranteed cash value relative to face amount, offers are often modest relative to death benefit, and many whole life policies receive none. Eligibility and value are never guaranteed.
How Dividends Change Every Number Above
If your North American whole life policy is participating, the dividend election you made years ago is quietly driving your current values. Dividends are not guaranteed, are declared at the company’s discretion, and can be reduced or eliminated.
If dividends purchased paid-up additions, both your death benefit and your cash value are larger than the base contract, and the additions themselves have surrender value that belongs in column one. If dividends reduced your premium, your true out-of-pocket cost is lower than the scheduled premium, which weakens the affordability case for exiting at all. If dividends accumulated at interest, that balance is payable to you on surrender and is normally recognized in a settlement valuation. If dividends bought one-year term, they added death benefit but no cash value.
Request a current in-force illustration showing guaranteed values alongside the current dividend scale, and ask specifically what your dividend option is and what it would look like if changed. Two policies with identical face amounts can produce very different exit economics because of an election made decades ago.
Change of Ownership and How to Reach the Carrier
If a settlement is the path you choose, the transaction is only complete when North American records the change of ownership, and in many structures an absolute assignment, on its books. Funds are typically held in escrow until the carrier confirms that recording in writing.
Request the current ownership change and assignment forms from North American directly rather than from a third-party document site, because 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 identify which forms your policy form number requires. If a trust is involved on either side of the transfer, expect trust certification documentation as well.
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
Was my North American whole life policy sold to another company?
North American redomesticated to Iowa on September 27, 2007, which changed its regulator rather than its ownership of your contract. The company was acquired by Sammons in 1996 and operates today as a member company of Sammons Financial Group under NAIC company code 66974. Your policy is still a North American contract administered by North American.
Is North American still selling life insurance?
Yes. The company continues to issue new individual life insurance and annuities through independent financial professionals and is not in runoff. Its currently marketed individual life lineup is described as term, universal life, and indexed universal life, which means most in-force whole life contracts are older legacy business. Confirm with the carrier which product family your policy belongs to.
Should I surrender or look at a settlement?
Get both numbers before deciding. Whole life carries a guaranteed cash surrender value, so a settlement only makes sense if an offer meaningfully exceeds that figure net of loans and any surrender charge. On many whole life policies the surrender value is competitive and surrendering is faster. Do not overlook reduced paid-up, which ends the premium while keeping some coverage.
How financially strong is North American?
AM Best affirmed a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of aa- with a stable outlook on August 13, 2025, the second highest of fifteen categories. 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 in 2024. Ratings can change, so confirm the current rating with the carrier or AM Best.
Does Pine Lake buy whole life policies?
No. Pine Lake Life Solutions does not purchase policies and is not affiliated with, endorsed by, or connected to North American Company for Life and Health Insurance. Pine Lake provides education and a free, no-obligation policy review. Nothing here is legal, tax, or investment advice, and any decision should be reviewed with your own qualified advisors.
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Related Reading
- Sell My North American Universal Life Policy
- Sell My North American Term Policy
- Sell My North American Indexed Universal Policy
- Cash Value Loan Vs Surrender
- Extended Term Nonforfeiture Option
- Keep Or Sell Policy Npv
- Is A Life Settlement Right For You
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.