North America introducing Builder Plus IUL 4

Effective: August 12, 2024

North American is pleased to announce Builder Plus IUL 4, the highly competitive next generation of our indexed universal life (IUL) insurance product, that is designed for death benefit protection and strong, long-term cash value accumulation potential. Builder Plus IUL 4 can help create more financial strategies for your client including growing their supplemental retirement income.

Builder Plus IUL® 4 highlights:

• Strong death benefit protection
• Strong long-term cash value accumulation potential
• Variable and Fixed interest participating policy loans available in year three
• Improved supplemental retirement incomes, while reducing effects of volatility and taxes
• Accelerated Death Benefit Endorsements (ADBE) for critical, chronic, and terminal illness1
• WriteAway® accelerated underwriting available for eligible cases

Product and Rider Changes

Product charges

• Reduced current percent of account value charge (from 0.104% to 0.0275% a month)
• A current floor rate above 0% for S&P 500® Annual Point-to-Point
• Increased premium load and duration

No lapse guarantee (NLG)

• Decreased NLG period

Minimum Account Value

• Guaranteed interest rate 2.0%

Index Sweeps

• Moving from daily to monthly sweeps to simplify index credits
• Holding Account and Fixed Account for this product is 4.5%
• Please refer to our Index Sweeps FAQ for more information.

Online Part 2 with Agent Assist

• You now have the option within SimpleSubmit to elect to have the link to the Online Part 2 sent directly to you to complete alongside the client. The option to use Agent Assist will replace
  the tele-interview for clients.
  Please note: Agent Assist is currently only available on Smart Builder IUL® 3 and Builder Plus IUL 4.
• Agent Assist is not available in California.

For updated current rates of all our products, please see our rates flyer.

Interest bonuses
Builder Plus IUL 4 offers several bonus opportunities, depending on how long your client’s policy has
been in force, to help increase cash value.

Starting in policy year one until the end of policy year 10:

• A 1.00% Current, 0.50% Guaranteed bonus on non-loaned funds allocated to the Fidelity
• Multifactor Yield IndexSM 5% ER PtP Index Selection

Starting in years 11+:

• The bonus on non-loaned funds allocated to the Fidelity Multifactor Yield IndexSM PtP Index
  Selection increases to 1.50% Current, 0.50% Guaranteed.
• A 0.50% Current bonus, 0.50% Guaranteed bonus is available on the index (not applied to
  loaned funds or funds allocated to the Fidelity Multifactor Yield IndexSM PtP Index Selection)

Starting in years 3+:

• A 2.00% Current, 0.50% Guaranteed bonus on loaned money backing a Fixed Interest Participating
• Policy Loan. This bonus helps the policy continue to accrue cash value, even when funds are loaned.
• Please note that loaned money using the Fixed Interest Participating Policy Loan will not receive any other bonuses. No other loan types receive an interest bonus.

Rider changes

• We’ve made some slight rider updates to help simplify and modernize our offerings.

Please see the riders’ field bulletin to learn more.

Business process changes & modernization

Enhanced Pending Business

• All Builder Plus IUL 4 cases will appear on the Enhanced Pending Business
• Enhancements to Pending Business dashboard include:
  o Status tracker for a high-level overview of case progress
  o Granular search, filter, and sorting capabilities
  o Messaging capability from the case itself
  o Smart Secure Document Upload

Submitting business

Product availability
New Builder Plus IUL 4

• Starting August 10, 2024, Builder Plus IUL 4 will be available to quote and apply for on Web-based Illustrations (North American’s illustration software), and on SimpleSubmit.
• New Business and Policy Change will be able to generate policies for the Builder Plus IUL 4 as of
  August 12, 2024.
• eDelivery for this product is available.
• Builder Plus IUL 4 is available in all states

California specific:

• WriteAway, our accelerating underwriting program, is available for the Builder Plus IUL 4 in CA,
  but the process will vary compared to other products. Instead of the client completing an
  Online Part 2 electronically, the Part 2 medical questions will be built into the eApp process and
  will be required to be completed to submit the eApp. This update also applies to the new Smart
  Builder IUL 3 announced in May.
• The updated riders referenced in the riders field bulletin are currently not available in CA.
• Prior version of riders cannot be used. Once updated riders are available, we will provide
  notification.
• Based on eligibility requirements, prior versions of the ADBE benefits will be used.

Builder Plus IUL 3

• The last day to sign and lock an eApplication for Builder Plus IUL 3 is September 27, 2024.
• All applications for Builder Plus IUL 3 must be dated September 27, 2024, or prior, and received
  in New Business/Policy Change by October 4, 2024

Current Pending Business
Existing applications that are currently being processed in New Business or Policy Change, but have not yet been placed inforce, can be changed to Builder Plus IUL 4. When changing an existing case to
Builder Plus IUL 4, note the following guidelines. (Note the third bullet point for unique date guidelines in California.)

• If the application is dated May 14, 2024, or after, the change can be made with the existing
  application and the product will be amended on delivery. The new versions of the IUL
  Supplement to Application (ICC22SA101NAC), the IUL Disclosure form (L-3190C) and an updated
  illustration will be required.
• If the application is dated May 13, 2024, or prior, a new fully completed application, the new
  IUL Supplement to Application (ICC22SA101NAC), the new version of the IUL Disclosure form (L3190C) and an updated illustration will be required.
• For California, the application must be dated June 10, 2024, or after, to change the product
  without a new application.
• You can request a product change at any time, however, the system will not be updated to
  reflect the product change until after the case has been approved.
• If the product change accompanies an increase in the face amount, (this would be common if
  you are solving for the face amount and switch from the old version to the new), that will
  require Underwriting review and could result in additional requirements.
• Due to the expected high volume of requests to change existing business to the new product,
  you may experience a longer than normal turnaround time for the product change to be fully
  processed.

Exchanges
Inforce policies outside of the free look period cannot be reissued to receive Builder Plus IUL 4 without
full exchange paperwork.

Policy dating guidelines
All Builder Plus IUL 4 policies must have an anniversary date of May 14, 2024, or later.
California only: All Builder Plus IUL 4 policies must have an anniversary date of June 10, 2024, or later.

Forms*
The supplemental forms for Builder Plus IUL 4 have been updated as follows:

Note: See Forms Factory® for state variations
*The above form updates also apply to the previously announced Smart Builder IUL 3.
Systematic Premium Allocation (SPA) is available, however the Enhanced (SPA) for additional future
premiums is not immediately available.

Manage My Account Access
Following delivery of the policy, clients can register their account online and view summary policy information. Self-service transactions will be limited for a short period while the functionality is built out. Policyowners may submit a written request or call 1-877-872-0757 to receive support in the interim.

Full bulletin