North American Company Guarantee Choice Fixed Deferred Annuity Review (2026)
An independent 2026 review of the North American Company Guarantee Choice — a multi-year guaranteed annuity (MYGA) that locks a fixed rate for 3 to 10 years, with tax deferral, surrender charges, and a market value adjustment. Backed by A+-rated North American Company (Sammons Financial Group).
The North American Company Guarantee Choice is a multi-year guaranteed annuity (MYGA) that pays a fixed (learn more about massmutual stable voyage fixed deferred annuity review: independent analysis (2026 rates)) (learn more about protective life smart saver 5 annuity review: independent analysis (2026 rates)) (learn more about athene ascent 10 bonus fixed index annuity review: independent analysis (2026)) (learn more about nationwide peak 10 fixed index annuity review: independent analysis (2026)) (learn more about jackson national elite access advisory variable annuity review: independent analysis (2026)) (learn more about brighthouse shield level selector annuity review: independent analysis (2026)), guaranteed interest rate for a term you choose — typically 3 to 10 years — with the growth compounding tax-deferred until you withdraw it. It is issued by North American Company for Life and Health Insurance, part of Sammons Financial Group, and is designed for savers who want a predictable, principal-protected place to park money for a set period. This independent review covers how it works, its costs, how it compares to a CD, and who it actually fits.
What the Guarantee Choice is
The Guarantee Choice is a fixed deferred annuity in the MYGA category. You make a lump-sum premium payment, select a guarantee period (often 3, 5, 7, or 10 years depending on availability), and North American locks in a rate for that full term. At the end of the term, you can withdraw your money, renew into a new guarantee period, or move to another option. Because it is a fixed annuity, your principal is not exposed to market losses.
How the guaranteed rate works
Your rate is set at issue and guaranteed for the entire term — it does not float with the market. Longer terms generally carry higher rates, and interest compounds tax-deferred, so you owe no taxes until you take money out. That deferral can be meaningful for savers in higher brackets or those reinvesting inside a non-qualified account. Rates change frequently and vary by term and state, so confirm the current rate before committing.
Fees, surrender charges, and the market value adjustment
MYGAs like the Guarantee Choice typically have no upfront sales charge — your full premium goes to work. The trade-off is a surrender charge schedule: if you withdraw more than the allowed amount before the term ends, you pay a declining penalty. Most versions allow a penalty-free withdrawal (commonly up to 10% of the accumulation value per year) and include a market value adjustment (MVA) that can raise or lower your surrender value based on interest-rate movements. Withdrawals before age 59½ may also trigger a 10% IRS penalty on the gains.
MYGA vs. CD — how it compares
A MYGA and a bank CD both offer a fixed rate for a set term, but they differ in three ways. First, taxes: CD interest is taxed each year, while MYGA growth is tax-deferred. Second, backing: CDs are FDIC-insured, while a MYGA is backed by the claims-paying ability of the insurer — which is why North American's A+ rating from AM Best matters. Third, liquidity: MYGAs usually allow a penalty-free withdrawal band and carry surrender charges plus an MVA, whereas CDs have their own early-withdrawal penalties. For many conservative savers, the tax deferral and often-higher rate make a MYGA attractive for money they will not need for the full term.
Who the Guarantee Choice fits
This product suits conservative savers who want a guaranteed rate, principal protection, and tax deferral on money they can leave untouched for the chosen term. It is a common choice for pre-retirees and retirees building a low-risk portion of their portfolio, or for anyone wanting a CD alternative with deferral. It is not a fit if you may need full access to the funds before the term ends, or if you want market-linked upside — a different product would serve those goals better.
Strengths and drawbacks at a glance
Strengths: a rate guaranteed for the full term, principal protection from market losses, tax-deferred growth, a penalty-free withdrawal allowance, and the financial strength of an A+-rated carrier. Drawbacks: surrender charges and a market value adjustment for early withdrawals, a possible 10% IRS penalty before age 59½, rates that change frequently, and backing by the insurer rather than FDIC insurance.
Is the North American Guarantee Choice safe?
It is designed for safety of principal and is backed by North American Company, rated A+ by AM Best. Unlike a CD, it is not FDIC-insured — its guarantees rest on the insurer's claims-paying ability, which is why the company's strong rating is central to the review.
Can I lose money in the Guarantee Choice?
You will not lose money to market swings, but withdrawing more than the penalty-free amount before the term ends can trigger surrender charges and a market value adjustment, which could return less than your full accumulation value. Held to term, your principal and guaranteed interest are protected.
How is the Guarantee Choice taxed?
Growth is tax-deferred until withdrawal. When you take money out, gains are taxed as ordinary income, and withdrawals before age 59½ may face an additional 10% IRS penalty on the earnings.
This article is for educational purposes only and is not financial, tax, or insurance advice. Annuity features, rates, and surrender terms vary by state and change often — confirm current details with North American Company or a licensed advisor before purchasing.