Fixed Interest Participating Loan Rate Update Effective 04/01/23
In January this year, North American had announced a new Fixed Interest Participating Loan1 (FPL) rate of 5.75% that would go into effect on April 1, 2023. We would like to inform you that we will now be pivoting to a different FPL rate.
1 The net cost of a Fixed Interest Participating Policy Loan could be negative if the credits earned are less than the interest charged. The net cost of the loan could also be larger than under standard policy loans if the amount credited is less than the interest charged. In the extreme example, the amount credited could be zero and the net cost of the loan would equal the maximum interest rate charged less any guaranteed bonus. In brief, fixed interest rate participating loans have more uncertainty than standard policy loans in the interest rate credited.