Look Into Annuity Maximization Using Life Insurance

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What is Annuity Maximization?

Annuity maximization is a leveraging technique in which annuity assets1 are used to purchase life insurance. The goal is to provide a greater death benefit for beneficiaries. Though annuities may be an excellent tax deferred growth vehicle2 , they are not generally designed to transfer wealth. Life insurance may be an ideal wealth transfer solution for your clients.


Client Profile

The following are characteristics of clients who might benefit from an annuity maximization strategy:

  • Need death benefit protection
  • Holding annuity assets

helpful Tips

There are typically two objectives in an annuity max sale:

  • Maximize the death benefit – For this objective, a client desires a low-cost, guaranteed death benefit product.3
  • Access to cash value – In this situation, both death benefit and cash value accumulation are desirable.


To help build your annuity max sales, call Sales Development today at 800-800-3656 ext. 10411 or email salessupport@nacolah.com.


The information presented is hypothetical and not intended to project or predict investment results.

1. Removing funds from an annuity may result in surrender charges and/or income taxes. North American Company nor its agents give tax advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

2. The tax-deferred feature of the indexed universal life policy is not necessary for a tax-qualified plan. In such instances, your client should consider whether other features, such as the death benefit and optional riders make the policy appropriate for your client's needs. Before purchasing this policy, your client should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.

3. Subject to premium payment requirements.

4. Available for an additional charge per $1,000 per month, depending on issue age and underwriting class. Surrender charges will be waived upon a full surrender or partial surrender. Surrender charges will not be waived if the policy is surrendered under a 1035 Exchange (except in Florida). A decrease charge will be assessed if a reduction in the policy face amount is requested during the Waiver of Surrender Charge Period. However for Rapid Builder IUL, if a partial withdrawal results in a reduction of the face amount, the withdrawal charge is waived.

Indexed Universal Life products are not an investment in the "market" or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

Please refer to the marketing guides for complete product details.

Custom Guarantee is issued on policy form series LS170; and Rapid Builder IUL is issued on policy form series LS176 and LS176W with Waiver of Surrender Charge by North American Company for Life and Health Insurance, Administrative Office, Sioux Falls, SD 57193. Products, features, issue ages, endorsements or riders may not be available in all jurisdictions. Limitations or restrictions may apply.



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