NAC VersaChoice 10 with ELB

Premium Notes

Withdrawal Provisions

Penalty-free withdrawals Like most annuities, you’ll be limited in when and how much you can withdraw from your annuity penalty-free. After the issue date, you may choose to take a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 10% of the beginning-of-year accumulation value each year. If you withdraw more than that, a surrender charge and market value adjustment may apply and the AV true-up feature will terminate. After the surrender charge period, surrender charges and a market value adjustment will no longer apply. Withdrawals may be treated by the government as ordinary income. If taken before age 59 1/2, you may also have to pay a 10% IRS penalty. Withdrawals will reduce your accumulation value accordingly. By current company practice, we’ll waive surrender charges, and market value adjustments on any portion of an IRS-required minimum distribution that goes beyond what’s available to you penalty-free. A feature offered “by current company practice” is not a contractual guarantee of this annuity contract and can be removed or changed at any time. Enhanced Liquidity BenefitFor a charge of 0.60% of the Accumulation Value annually, you will receive: Enhanced Penalty-Free Withdrawal: Beginning the second contract year, a Penalty-Free Partial Surrender will increase to 20% (maximum) if no withdrawals other than ELB charges and strategy charges were taken in the previous year.Return of Premium: Upon surrender, Return of Premium is available starting in Contract Year 4, less any withdrawals or rider charges (excluding the Enhanced Liquidity Benefit charges).ADL-Based Surrender Charge Waiver: Up to 100% of Accumulation Value may be taken Penalty-Free when the Activities of Daily Living (ADL) Benefit Requirements are met.ADL-Based Payout Benefit: When ADL Benefit Requirements are met, A % of the Accumulation Value may be paid out in a series of equal periodic payments over 5 years. Once elected, all other rights and benefit under the contract are terminated.