What We Will Be Covering in this Annuity Review
In this annuity review, we will be going over the details regarding the North American Company PrimePath 12 fixed indexed annuity, such as:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been considering the purchase of an annuity because you want your money to grow on a tax-deferred basis, and you want to ensure that you have an income for life, then the North American Company PrimePath 12 fixed indexed annuity could be a good option for you – especially if you also want to make sure that your principal is safe, while at the same time having the opportunity to attain a nice, index-based, return.
However, before you commit to this – or to any other – annuity, it’s important that you have a good idea regarding how the product works, and how it could work for you. Otherwise, if you find that the annuity is not all it was initially cracked up to be, it could be difficult and costly to get out of it.
Over the past few years – in large part due to the constant volatility of the stock market – the demand for fixed indexed annuities has risen dramatically. Because of this increased demand, the number of insurance and financial advisors who are offering these products to their clients has also gone up. This, however, is not necessarily a positive thing.
For instance, as there are so many “new and improved” annuity products that are being put out into the market, a large number of them include more bells and whistles – which in turn, tend to make them more confusing, not just for consumers, but also for many financial pros, too!
Given that, unless you work with an insurance or financial rep who really knows their stuff about annuities, it is highly recommended that you do some research on your own in order to determine whether or not the annuity you are being presented will really make sense for you.
Annuity and Retirement Income Planning Advice that Can Be Trusted
If this is your very first visit to our website, then please allow us to personally welcome you to AnnuityGator.com. We are a team of annuity professionals who focus on offering comprehensive, and unbiased, annuity reviews.
We have been at this for quite a long time now – far longer than our competitors, who tend to “follow in our footsteps” when it comes to annuity reviews online. So, while they may be copycats, we think that imitation is the highest form of flattery!
If you have been in the throes of researching annuities via the Internet for a period of time now, then you may have noticed that there are many conflicting details about these products online. This, however, it not entirely shocking, as there are a lot of annuities out there, and it seems that there are just as many differing opinions!
You may also have recently attended an annuity seminar where, in return for a free dinner or lunch, the presenter went into in-depth details about the North American Company PrimePath 12 fixed indexed annuity, or some other similar financial vehicle.
And, if you happened to make a follow-up appointment with that presenter in order to discuss whether or not the annuity in question is right for you, then it is possible that you’ve landed here on our website in order to gather more details. In any case, we’re glad you’re here.
As you’ve been researching annuities online, you may also have noticed that there are many other websites that offer annuity products, and in trying to “lure” you into giving them your contact information, they will oftentimes present some pretty bold claims, such as:
- Guaranteed lifetime income
- Lowest Fees
- Top-Rated Annuity Companies
- Highest Income Payouts
- Fast, Easy Annuity Quotes
However, although these claims may sound great initially, the reality is that they may not all be true. So, it is absolutely essential that you verify these claims before moving forward with the purchase of an annuity – just like you would likely do before you commit to any high-dollar product or service.
If you’re in need of more detail on the PrimePath 12 annuity from North American, then you are definitely in the right place now. In fact, dare we state that the website you are currently viewing is the only place where you will be able to obtain all of the key details that you need.
Admittedly, this will not only include the good things about this annuity, but also items that could be considered as drawbacks. Giving you the whole picture, however, is the only way that you will be able to make a well-informed decision.
In order to be perfectly clear, here, we do want to state that we feel that annuities can offer a wide array of benefits to investors – provided that the annuity fits in with the investor’s overall short- and long-term financial goals.
With that being said, this annuity review is here to help you learn all that you need to know about the PrimePath 12 annuity. So, if you are ready to begin, let’s go ahead and dive in now!
North American Company PrimePath 12 Fixed Indexed Annuity at a Glance
|Product Name||PrimePath 12|
|Issuer||North American Company for Life and Health Insurance|
|Type of Product||Fixed Indexed Annuity|
|S&P Rating||A+ (Strong)|
|Phone Number||(866) 322-7069|
Opening Thoughts on the North American Company PrimePath 12 Fixed Indexed Annuity
As one of the leading providers of annuities and life insurance in the U.S., North American has fulfilled its commitments to its customers ever since 1886. Unlike many of the other insurance carriers in the marketplace, North American is a privately owned company. Therefore, the company is not subject to the short-term earnings pressures that are often faced by publicly traded entities.
North American is a part of the Sammons Financial Group, Inc., whose member companies offer a wide range of products, including annuities, life insurance, and retirement solutions. The parent company of Sammons Financial Group is Sammons Enterprises, Inc., a diversified holding company that owns and operates businesses across a diverse range of industries.
Over the past several years, fixed index annuities have become much more sought after by consumers as a way to obtain a guaranteed income for life, as well as an opportunity to keep principal safe regardless of what the market does.
But, even though this all might sound completely enticing, the reality is that when something sounds too good to be true, it probably is – and in this case, you probably need a bit more information in order to discover the whole story. This is particularly the case if your decision about an annuity could ultimately result in you committing a large chunk of your hard-earned retirement savings.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. North American Company for Life and Health Insurance has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How North American Company Describes the PrimePath 12 Fixed Indexed Annuity
According to North American Company, fixed indexed annuities like the PrimePath 12 can offer numerous benefits, including:
- Market-linked growth, without the risk of loss of premium
- Guaranteed lifetime income
- Tax-deferred growth
- Liquidity features
- Death benefit which can help avoid probate
This particular annuity offers a fixed interest rate option where the rate is guaranteed for one year, and it also offers several interest rate crediting options based on the performance of the following index(es):
- MS Dynamic Balance 3-Year Point-to-Point with Index Margin
- MS Dynamic Balance Annual Point-to-Point
- S&P 500 Annual Point-to-Point
- S&P 500 Annual Point-to-Point with Participation
- S&P Low Volatility Annual Point-to-Point with Index Martin
- S&P Monthly Point-to-Point
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Being that the PrimePath 12 is a fixed indexed annuity, it is likely that an insurance or financial advisor would focus in on the “best of all worlds” scenario. This refers to the annuity’s ability to obtain market index-linked returns, while at the same time keeping principal safe, no matter what occurs in the stock market.
Also, when the time comes to convert the annuity into an income stream, you (as well as your spouse, if applicable) can receive an income stream for the remainder of your life, regardless of how long that may be.
However, although the benefits on the PrimePath 12 fixed indexed annuity may sound very enticing, it is important to keep in mind any of the potential tradeoffs that may need to be made in order to get these great and wonderful things.
For example, as with many other fixed indexed annuities that are available in the market today, a cap rate could hinder your upward returns. That’s because if the underlying index that your annuity is tracking has an absolutely stellar performance in a given year (or for that matter, even if the performance percentage is any amount over the cap rate), your return will be “capped” or limited to the cap rate.
There is a somewhat similar hindrance when it comes to the participation rate. In this case, if the selected tracking option only participates in, say, 50% of the gain, then if the underlying index returns 10% in a given year, you would only receive 5%.
So much for those high-performance figures shown on many of the other annuity websites!
Yet, while this might be somewhat disappointing, its better to know right now how these components work than to find out after you have already committed a large chunk of your retirement savings to the annuity, and when it could be extremely costly for you to get out of the annuity contract due to surrender charges.
And speaking of surrender charges…
What About the Fees Associated with the PrimePath 12 Fixed Indexed Annuity?
As with most any other annuity, you need to be mindful of the various charges and fees that you can incur, as these could end up negatively impacting the overall return you end up with on this product. One of the biggies on the PrimePath 12 is the twelve full years of surrender charges. This means that if you withdraw more than 10% of your contract’s value during that time, you’ll be hit with a fee…just to take out your own money!
Plus, if you make such a withdrawal before you reach age 59 1/2, then you could also find yourself paying an additional 10% “early withdrawal” fee to the IRS.
The Annuity Gator’s End Take on the North American PrimePath 12 Fixed Indexed Annuity
Where it works the best:
This particular annuity will usually work the best for those who are looking for:
- The opportunity to obtain a higher rate of growth as versus a regular fixed annuity
- Safety of principal
- Guaranteed lifetime income
Where it works worst:
Conversely, this particular annuity may not fare so well for those who:
- Want to fully participate in market gains
- Want or need to access their funds penalty-free within the first 12 years of purchasing the annuity
- Do not intend to use the guaranteed lifetime income feature
There are many factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added fees or charges for these options).
If you are still considering the purchase of a fixed index annuity such as the North American Company PrimePath 12, then you can be assured that your principal will be safe, regardless of what occurs in the stock market, or even the economy as a whole. These annuities will also provide you with an opportunity to grow your retirement funds, and to receive a guaranteed income in the future for as long as you need it.
But even with all of the seemingly nice features that come with this financial vehicle, it could still fall somewhat short. And, there could quite frankly be something better out there that will fit your needs more appropriately.
Really the only way to know how this annuity – or for that matter, any annuity – may perform for you specifically is to have it tested. We can do this for you by running the figures through our annuity calculator. If you would like to see the figures as they relate to your particular situation, just contact us through our secure online form here.
Have Any Additional Questions? Did You Happen to See Any Mistakes in this Review?
We know that this review went a bit on the lengthy side. So for that, we thank you for staying with us. Our feeling is, though, that we would much rather provide you with “too much” detail than not nearly enough.
Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too.
Are there any other annuities that you would like to see reviewed?
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