North American Changes to ADBE Interest Rate, Variable Interest Rate Policy Loan, and Fixed Interest Participating Policy Loan rates

North American continues to make decisions for the long term to help ensure we remain strong, stable, and well-positioned to keep the commitments we’ve made to both our policyholders and distribution partners. To keep in line with this future focus, it was determined on December 31, 2023, that North American will be making the following rate changes:

New ADBE interest rate, effective April 1, 2024

For new Accelerated Death Benefit Endorsement (ADBE) accelerations beginning April 1, 2024, the ADBE interest rate will change to 5.50%.

New rate changes, effective April 1, 2024

  • The Variable Interest Rate Policy Loan (VRL) interest rate will change to 5.50%.
  • The Fixed Interest Participating Policy Loan (FPL) interest rate for Builder Plus IUL® 3 (indexed universal life) will change to 5.70%. The Interest Bonus on the Fixed Interest Participating Policy Loan will remain at 2%.
  • Sales illustrations and inforce illustrations will be limited to a minimum Variable Interest Policy Loan interest rate of 5.50% used in the Non-Guaranteed Assumptions.

New loans taken on or after April 1, 2024, on policies that do not have existing debt will use the new rates immediately. North American will notify impacted policyholders by mail 60 days prior to their rate change date with specific timing and information about which rate change is applicable to their policy. Please refer to the policy for specifics on when these changes will become effective.

Illustration Platform will reflect the new ADBE and loan interest rates on March 23, 2024.

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