North American Guarantee Plus MYGA – Fixed Growth with Flexible Liquidity and Strong Renewal Options
North American Guarantee Plus MYGA – Fixed Growth with Flexible Liquidity and Strong Renewal Options
At Diversified Insurance Brokers, we focus on helping clients reduce unnecessary risk while positioning retirement assets for steady, contractually guaranteed growth. For individuals who prioritize stability over speculation, the North American Guarantee Plus Multi-Year Guarantee Annuity (MYGA) offers a straightforward, transparent solution. Issued by North American Company for Life and Health Insurance, this annuity combines predictable fixed interest, tax-deferred accumulation, and early interest access into a structure that is easy to understand and straightforward to manage. North American carries an AM Best A+ (Superior) rating, an S&P A+ rating, and a Comdex score of 91 out of 100 — placing it in the top decile of all U.S. insurance carriers. It is one of the country’s top-10 sellers of both MYGAs and fixed indexed annuities, with a NAIC complaint index of 0.37, well below the 1.00 national average. For buyers who want both competitive rates and institutional quality from one of the most recognized carriers in the independent agent market, the Guarantee Plus MYGA sits at the intersection of both objectives.
The Guarantee Plus MYGA is designed for individuals seeking dependable returns without market exposure. It provides fixed interest for a selected guarantee period — 3, 5, or 7 years — allowing you to lock in a rate and protect your principal from volatility. Unlike equities, mutual funds, or bond portfolios that can fluctuate in value, this contract ensures your account does not decline due to market conditions. Our resource on how fixed annuities help protect against market volatility explains the structural mechanics behind that principal protection in more depth. For retirees repositioning maturing CDs, reallocating conservative brokerage assets, or rolling over qualified retirement funds, this annuity often serves as a stability anchor. Our guide to how to transfer a CD into an annuity covers the mechanics for buyers making that specific transition, and our comparison of fixed annuities versus CDs and how MYGAs compare to CDs show the structural and tax advantages in detail. If you are evaluating how this compares to other safe-money vehicles, reviewing Current Fixed Annuity Rates provides insight into how the Guarantee Plus stacks up in today’s competitive landscape.
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North American Guarantee Plus MYGA: Key Product Specifications
| Feature | Details |
|---|---|
| Carrier and Financial Strength | North American Company for Life and Health Insurance. AM Best: A+ (Superior). S&P: A+ (Strong). Comdex: 91/100 — top decile of all U.S. carriers. Top-10 MYGA and FIA seller. NAIC complaint index: 0.37 (well below 1.00 national average). Not FDIC insured — all guarantees backed by North American Company’s claims-paying ability. Confirm state availability at application. Issue ages: 0–90. |
| Terms and Premium Structure | Single-premium deferred MYGA. Available terms: 3, 5, and 7 years (a 10-year option may also be available — confirm at application). Declared rate fixed for the full guarantee period. Minimum premium: $20,000. Rate banding: $100,000 or more may qualify for an enhanced rate tier — confirm current tier thresholds and rate differential at application. Qualified and non-qualified funding accepted. Compare best 3-year, best 5-year, and best 7-year annuity rates to benchmark Guarantee Plus against the full A-rated market at each term. No annual fees or administrative charges apply to this product. |
| Liquidity: Interest Withdrawal and Nursing Home Waiver | The Guarantee Plus provides interest-only penalty-free access starting after just 30 days — not 10% of contract value, and not deferred to year 2. Credited interest may be withdrawn without surrender charges from the first month. This structure functions as an income provision: for a buyer whose primary goal is supplemental income from the interest, access is nearly immediate. No terminal illness waiver is available on this product — buyers who need that provision should evaluate competing MYGAs. Nursing home confinement waiver: if the owner is confined to a qualifying nursing home facility, surrender charges and MVA are waived. RMDs for qualified accounts are accommodated penalty-free. For buyers who want broader principal access (up to 10% or more annually), North American’s VersaChoice 10 offers an optional 20% annual withdrawal provision. Review how nursing home riders function across different annuity products before application. |
| Surrender Charges and MVA | Declining surrender charge schedule aligned with selected term. Market Value Adjustment applies to withdrawals that also incur surrender charges — it does not apply to nursing home waiver withdrawals, interest-only withdrawals, RMDs, or the death benefit. Understanding how surrender charges work and when the MVA does and does not apply is important for correctly evaluating the real liquidity profile of this contract across different rate environments. |
| Death Benefit and Tax Treatment | Full accumulation value paid to named beneficiaries — no surrender charges, no MVA at death. Assets generally pass outside probate with a named beneficiary. Our resource on what happens to an annuity at death covers the beneficiary distribution process. Tax-deferred accumulation — no annual 1099 during the guarantee period. Non-qualified taxation: interest distributed first as ordinary income (LIFO). Qualified accounts: full distributions taxed as ordinary income. Pre-59½ withdrawals subject to IRS 10% penalty. Full framework at how annuities are taxed. |
| RMDs and Renewal | RMDs from qualified contracts accommodated penalty-free. At end of guarantee period: renew into a new declared rate, convert to a guaranteed income stream, or withdraw penalty-free. Auto-renewal risk applies — monitor the renewal window and evaluate the new declared rate against the full MYGA market before committing to a renewal term. |
The 30-Day Interest Access Window: What Sets This Product Apart
The most structurally distinctive feature of the North American Guarantee Plus MYGA is its interest withdrawal provision: credited interest may be withdrawn without surrender charges beginning after just 30 days from contract issue. Most MYGAs defer any penalty-free access to the second contract year or later. Some offer 10% of contract value annually starting in year two. The Guarantee Plus offers a different model entirely — access to credited interest, not a percentage of the contract value, and available almost immediately from the moment the contract is issued.
The practical difference matters for buyers in specific situations. A retired teacher with $300,000 in an IRA rollover deposited into a 7-year Guarantee Plus at a 5.00% declared rate will have approximately $1,250 in credited interest after the first month. After 30 days, that amount is available without surrender charges. By the end of the first full year, roughly $15,000 in credited interest has accumulated — all of it accessible penalty-free as it accrues. For buyers who want to use the annuity as an ongoing source of monthly retirement income starting almost immediately, this structure delivers access faster than most competing MYGAs in the A+ tier. Our resource on why more retirees are choosing MYGAs explains the broader shift toward this approach as an income supplement alongside Social Security and pension income.
However, the interest-only provision has a structural limitation buyers must understand: you cannot access principal during the surrender period without incurring charges and a potential MVA. If you deposit $300,000 and need $50,000 — which exceeds the credited interest available at that point — the excess above the credited interest is subject to surrender charges. This is categorically different from the 10%-of-account-value free withdrawal that most competing MYGAs provide. A buyer who might need access to principal during the term should evaluate whether the Guarantee Plus’s interest-only access model is sufficient for their contingency needs, or whether a competing product with explicit principal access is more appropriate. Our guide to choosing the right annuity based on your retirement timeline includes liquidity needs as a primary selection criterion — the interest-only access model is correct for some buyers and incorrect for others. For broader annuity options for retirees without pensions, our comparison tool shows which products provide principal access vs. interest-only access at each term.
North American’s A+ Rating and What It Means for a Multi-Year Commitment
North American Company for Life and Health Insurance occupies the same AM Best A+ (Superior) tier as Integrity Life (Western & Southern’s subsidiary) — the two highest-rated carriers in this review series. The A+ tier is populated by a small number of carriers with sustained balance sheet strength, and North American’s Comdex score of 91 out of 100 places it among the most highly rated in its class by a composite measure across the major rating agencies. For buyers making a 5- or 7-year commitment, carrier quality at this tier provides meaningful assurance that the declared rate will be honored by a financially healthy institution through the full guarantee period.
North American is also a recognized name in the independent agent distribution market — one of the most widely appointed carriers across the country. That distribution scale matters indirectly: it means the carrier is routinely vetted, compared, and appointed by thousands of licensed agents nationally, providing a layer of competitive accountability that smaller regional carriers don’t face. The carrier is also part of Sammons Financial Group, a privately held diversified financial services company — not a publicly traded carrier whose quarterly earnings pressure can influence reserve policies or competitive rate strategies. That private ownership model is a structural parallel to the Western & Southern model at Integrity Life, and buyers who prefer carriers not subject to public equity market pressures may find both companies appealing on that basis. For buyers evaluating what makes a fixed annuity safe, the combination of A+ rating, Comdex 91, private ownership, and top-10 market volume is a strong composite signal. Comparing whether you can lose money in an annuity at an A+ carrier versus alternatives is covered in our educational resources.
Tax Deferral and the CD Alternative Case
One of the core advantages of the North American Guarantee Plus MYGA is its tax-deferred growth structure. Interest earned inside the annuity is not taxed annually, allowing gains to compound more efficiently over time. For non-qualified funds, this deferral can provide a meaningful long-term benefit compared to taxable CDs or money market accounts where interest generates a 1099-INT each year and reduces the effective compounding rate even if no withdrawal occurs. For IRA or 401(k) rollovers, the tax-deferred status continues uninterrupted, preserving retirement account integrity without adding complexity. Our resource on how annuities are taxed outlines both the qualified and non-qualified distribution frameworks in detail.
The Guarantee Plus begins with a $20,000 minimum premium, making it accessible for many savers, while larger deposits — often $100,000 or more — may qualify for enhanced interest tiers. Because the rate is declared and locked in for the full guarantee period, clients can plan confidently around predictable growth. There are no participation rates, caps, spreads, or market-linked calculations — just a clearly defined annual interest credit. For investors who prefer simplicity and transparency, this structure removes uncertainty and complexity. Buyers repositioning assets out of short-term fixed income will find the short-term MYGA comparison useful for evaluating the 3-year option alongside other short-term alternatives. Buyers who want to understand how the annuity’s tax deferral interacts with their overall retirement income picture should also review our resource on sequence-of-returns risk — isolating a portion of retirement savings in a principal-protected, tax-deferred MYGA is one of the most direct ways to reduce dependence on equity account withdrawals during market downturns.
The North American Product Family: FIA Options for Buyers Who Need More
The Guarantee Plus MYGA is the straightforward accumulation product in North American’s lineup — the right fit for buyers who want rate certainty, principal protection, and tax-deferred growth without complexity. But North American also offers a deep fixed indexed annuity lineup for buyers whose needs extend into income generation, long-term care benefits, or higher-yield growth strategies. Understanding what other North American products offer helps buyers confirm they are in the right product for their specific objectives before committing to a multi-year MYGA term.
Buyers who need guaranteed lifetime income alongside principal protection should evaluate North American Income Pay Pro, a fixed indexed annuity with a 27% income premium bonus and built-in long-term care support. Buyers who want greater liquidity than the Guarantee Plus provides — up to 20% of contract value annually through an optional enhanced liquidity rider — should evaluate North American VersaChoice 10. Buyers who want flexible growth strategies with a longer accumulation horizon should consider North American PrimePath Pro 10. Buyers who want built-in benefit riders alongside accumulation should evaluate North American BenefitSolutions 10. And buyers who want a fixed growth strategy with multiple crediting options and full control over term structure should review NAC Control X and North American Guaranteed Allocation 10. The Guarantee Plus MYGA is the correct product for buyers who want nothing more than a locked rate, no riders, no index, and immediate interest access — but it is not the right product for buyers who need income riders, long-term care multipliers, or broader principal liquidity during the term.
Rollovers, Transfers, and the Funding Process
The Guarantee Plus MYGA accepts rollovers from IRAs, 401(k)s, and other qualified retirement accounts, allowing buyers to reposition qualified savings into a guaranteed-rate structure without triggering immediate taxation through a properly executed direct transfer. Buyers transitioning from maturing employer plan accounts should review best annuities for 401(k) rollovers and our guide to rolling over a 403(b) or 401(k) into a guaranteed annuity for the specific transfer mechanics. For buyers concerned about inflation eroding purchasing power over a multi-year term, our resource on annuities with inflation protection covers which product structures address inflation risk most directly — the Guarantee Plus is a fixed-rate product that does not adjust for inflation, so buyers who elect a 7-year term should factor inflation into their overall income planning.
Legacy planning is another meaningful benefit. Should the contract owner pass away during the term, beneficiaries receive the full accumulation value without surrender penalties. Assets typically transfer directly to named beneficiaries, often avoiding probate and administrative delays. This makes the Guarantee Plus a simple and efficient tool for wealth transfer while maintaining full control during your lifetime. If you would like to see how the North American Guarantee Plus MYGA compares to other leading fixed annuities, we encourage you to request a personalized comparison. We will provide a side-by-side breakdown tailored to your timeline, deposit amount, and retirement income objectives.
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The free withdrawal is “interest only” — what exactly does that mean and how is it different from 10% access?
The distinction matters significantly for planning purposes. Most competing MYGAs offer a free withdrawal provision equal to 10% of the total contract value annually — meaning on a $200,000 deposit, $20,000 is accessible penalty-free each year regardless of how much interest has been credited. The North American Guarantee Plus provides access to credited interest only — meaning the penalty-free amount equals whatever interest has actually accumulated in the contract, not a fixed percentage of the original deposit. In year one at a 5.00% declared rate on $200,000, that’s approximately $10,000 at year end — half of what a 10% provision would provide. In later years as interest compounds on a larger base, the accessible interest grows, but it is still tied to the actual credited amount rather than a flat percentage of principal. The practical implication: the interest-only model is better suited for buyers who want a steady income stream from the interest and don’t anticipate needing access to principal. For buyers who might need $20,000–$30,000 in a single year regardless of how much interest has accrued — for a medical expense, a home repair, or a family need — the interest-only provision may not be sufficient, and a competing MYGA with explicit 10% principal access should be evaluated. Our guide on how to use an annuity in retirement covers the liquidity planning framework for matching product features to actual income and access needs.
There is no terminal illness waiver — what are my options if I’m diagnosed with a serious illness during the surrender period?
This is a meaningful gap that buyers over age 65 with any health history should evaluate honestly before committing to the Guarantee Plus — particularly at the 7-year term. The nursing home waiver addresses one qualifying scenario: if you are confined to a nursing home facility per the contract’s definition, surrender charges and MVA are waived on withdrawals. However, a terminal illness diagnosis that does not result in nursing home confinement — a buyer receiving at-home hospice care, for example, or a terminal diagnosis where the buyer is still independent — would not trigger the nursing home waiver. In that scenario, accessing principal beyond the credited interest during the surrender period would incur surrender charges and a potential MVA. For buyers who want explicit terminal illness coverage in their MYGA contract, several competing A-rated carriers include terminal illness waivers as standard base contract features. Evaluating the trade-off between North American’s A+ institutional quality and the absence of a terminal illness waiver is a legitimate selection consideration, not a minor technical point — particularly for older buyers or those with existing health conditions who are considering a 5- or 7-year commitment. Our resource on whether annuities are worth it addresses how product features like health waivers affect the overall value equation for individual buyers in different health situations.
North American is a top-10 MYGA seller — does that mean its rates are competitive or just that its distribution is wide?
Both, and the distinction is worth understanding. Top-10 MYGA sales volume reflects a combination of carrier quality, rate competitiveness, distribution breadth, and brand recognition among independent agents. North American’s A+ rating and Sammons Financial Group backing make it easy to recommend — an agent who appoints with North American has confidence in the carrier’s financial strength and can submit business without concerns about below-average financial health. Rate competitiveness varies by term and rate environment. In periods when North American’s rates are in the top tier of A+ carriers, the volume-quality combination makes it a dominant choice. In periods when PE-backed A- carriers like Athene or Aspida are outpacing A+ carriers on rate, North American’s volume advantage narrows. The most useful comparison is the live rate check at the time of application: how does the Guarantee Plus rate on your specific term and premium amount compare to Athene, Aspida, Integrity Life, and the other A-rated carriers at that moment? Our live comparison of today’s highest annuity rates benchmarks North American’s current declared rates against the full A-rated market for each term, so the carrier quality versus rate conversation is grounded in current data rather than reputation alone.
I have money in a maturing CD — is the Guarantee Plus a direct replacement, and what is the transfer process?
The Guarantee Plus is one of the most common CD replacement vehicles for buyers who want to stay in a conservative, fixed-rate structure while gaining the advantages of tax deferral and in some cases a higher declared rate. The practical difference between a maturing CD and a new MYGA at the Guarantee Plus: CD interest is taxable annually even if not withdrawn, creating a drag on effective compounding; MYGA interest compounds without a current 1099-INT until withdrawal. At similar gross rates, the MYGA produces a higher after-tax accumulation for buyers in moderate to high tax brackets on non-qualified funds. The transfer process for a maturing non-qualified CD typically involves: requesting that North American initiate a direct transfer from the bank to the annuity; confirming the CD’s maturity date aligns with the annuity application and funding timeline; and ensuring no early surrender penalty applies to the CD before the transfer. For buyers rolling qualified funds (IRA, 401(k)) into the Guarantee Plus, the transfer mechanics are covered in our guide to best annuities for 401(k) rollovers. Buyers who want a side-by-side comparison of CD rates versus MYGA rates at comparable terms will find our resource on how to get the best annuity rates helpful in structuring the evaluation.
What happens at renewal and how do I make sure I don’t auto-renew into a rate I didn’t choose?
At the end of each guarantee period, North American provides a renewal window during which you may withdraw the full contract value without surrender charges, renew into a new term at the declared rate North American offers at that time, or annuitize. If no action is taken during the window, the contract typically auto-renews into a new guarantee period at the declared renewal rate — and a new surrender schedule begins. The auto-renewal risk is identical to what applies at every MYGA in this series: missing the renewal window means being locked into a new term at a potentially below-market rate. Best practice: mark your guarantee period end date at application and begin evaluating the renewal decision at least 60 days before that date. At renewal, compare North American’s offered rate against the full A-rated MYGA market at the same term — the same live benchmarking you did at original purchase. If competing carriers offer meaningfully better rates or contract terms at renewal, the penalty-free maturity window gives you full flexibility to exit without cost. Our resource on what makes a fixed annuity safe covers the renewal and rate-lock mechanics as part of the overall safety evaluation framework for MYGA products.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, and contributions from his agency featured in Kiplinger and GoBankingRates— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Explore More Annuity Options: Browse our complete guide to What Is a Fixed Annuity? — covering fixed annuities, MYGAs, laddering strategies & conservative growth options from 100+ carriers.
Last Reviewed: June 24, 2026 |
Reviewed by: Jason Stolz, CLTC, CRPC, DIA, CAA
Chief Underwriter, Diversified Insurance Brokers, Inc. | NPN: 20471358 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
Fact Checked by: Tonia Pettitt, CMIP©
Medicare Specialist, Diversified Insurance Brokers, Inc. | NPN: 14374308 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
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