prepared for: personalized hypothetical illustration nac ... · owner: sandra leppelman issue...

Personalized Hypothetical Illustration

NAC VersaChoiceSM 10Modified Single Premium Deferred AnnuityNon-Qualified Contract

Prepared for:Owner: Sandra LeppelmanIssue State: CA

Agent/Representative:JAMES ALDENDate Prepared: 08/24/2020

This is an illustration only, not an offer or contract. It is not intended to predict future This illustration is not valid unless all pages are present.performance. Benefits are subject to the terms and conditions of the annuity contract. of 14


GENERAL PRODUCT TERMSListed below are some basic terms and their definitions. Please refer to theproduct brochure and disclosure for more information.

PREMIUMThe amount paid into the annuity contract.

ACCUMULATION VALUEThe sum of premiums paid and interest credited, if any, less withdrawals, anyapplicable Strategy Fees, and any applicable rider charges.

DEATH BENEFITThe Death Benefit is equal to the accumulation value, but will never be lessthan the minimum requirements set forth by state laws, at the time of issue, inthe state where the contract is delivered.

MARKET VALUE ADJUSTMENT (MVA)May be applied during the Surrender Charge period. See the MVA section atthe end of this illustration for more information.

SURRENDER VALUEThe amount that is available at the time of surrender. The surrender value isequal to the accumulation value, subject to the MVA, if any, less applicablesurrender charges, and applicable state premium taxes. The surrender valuewill never be less than the minimum requirements set forth by state laws, at thetime of issue, in the state where the contract is delivered.

SURRENDER CHARGESA surrender charge is assessed on any amount withdrawn, whether as a partialor full surrender, that exceeds the penalty-free withdrawal amount.

Surrender Charge Schedule Years 1 to 107.5%, 6.7%, 6.5%, 5.5%, 4.55%, 3.55%, 2.55%, 1.5%, 0.5%, 0.44%2

PENALTY-FREE WITHDRAWALSOnce per year, you may take a penalty-free withdrawal (also known as apenalty-free partial surrender), without surrender charges, or MVA, of up to10% of your beginning of year accumulation value.

ANNUITY PAYOUT OPTIONSOn your Maturity Date (the contract anniversary when the Annuitant is age115), the pay-out options available include: Life options, Joint and Survivoroptions and Period Certain options. By current company practice,1 additionaloptions may be available prior to the Maturity Date based on your accumulationvalue at the time the pay-out option is elected. An example of a 10 year PeriodCertain based on Guaranteed Values as shown below.

AccumulationValue at Maturity

MonthlyFactors/$1000

Monthly AnnuityIncome

Guaranteed $54,602.45 8.96 $489.23

INDEX ACCOUNTSome or all of your premium may be allocated to the Index Account, whichoffers several different indexes and crediting methods.

FIXED ACCOUNTPremium allocated to the Fixed Account will earn the current interest rate,which is credited daily.

CREDITED INTEREST RATE (INTEREST CREDIT)The rate of interest credited from the Fixed Account and Index Account(s) tothe Accumulation Value.

ANNUAL POINT-TO-POINT WITH PARTICIPATION RATEThis method measures index growth using two points in time; the beginningindex value and the ending index value. Index-linked gains are calculatedbased on the growth between these two values multiplied by a participationrate. The annual interest credit will never be less than zero.

ILLUSTRATION SNAPSHOTCovered Person (Age): Sandra Leppelman (69)Premium: $125,000.00Agent Name: JAMES ALDENState: CA

OPTIONAL RIDER DETAILSEnhanced Liquidity Benefit Rider Charge: 0.60%Annually

Illustration Date: 08/24/2020This illustration is not valid unless all pages are present.

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FOR ILLUSTRATED VALUES, GO TO PAGE 7


GENERAL PRODUCT TERMS (continued)ANNUAL POINT-TO-POINT WITH ENHANCED PARTICIPATION RATE(SUBJECT TO STRATEGY FEE)This method measures index growth using two points in time; the beginningindex value and the ending index value of each Contract year. Index-linkedgains are calculated based on the growth between these two values multipliedby a participation rate. The annual interest credit will never be less than zero.

This method includes a Strategy Fee that will be subtracted from theAccumulation Value allocated to this method once each Contract year. TheStrategy Fee will be collected once each Contract year at the earliest of anypartial withdrawal in excess of the penalty-free amount, full surrender or theend of the Contract year. The Strategy Fee is equal to the Strategy Fee AnnualPercentage times the beginning of year Accumulation Value allocated to thismethod.

The Strategy Fee results in an increase to the participation rate, resulting in anincrease in the credited interest rate when the underlying index performance ispositive.

If the underlying index performance is zero or negative, the interest creditingamount to your policy for this option will be zero and as a result of the StrategyFee assessed, the amount of your Accumulation Value allocated to this optionwill decrease.

TWO YEAR POINT-TO-POINT WITH PARTICIPATIONThis method measures index growth using two points in time; the beginningindex value and the ending index value at the end of the two-year term. Index-linked gains are calculated based on the growth between these two valuesmultiplied by a participation rate. The interest credit is credited at the end of thetwo-year term and will never be less than zero.

TWO YEAR POINT-TO-POINT WITH ENHANCED PARTICIPATION RATE(SUBJECT TO STRATEGY FEE)This method measures index growth using two points in time; the beginningindex value and the ending index value at the end of the two-year term. Index-linked gains are calculated based on the growth between these two valuesmultiplied by a participation rate. The interest credit is credited at the end of thetwo-year term and will never be less than zero.

This method includes a Strategy Fee that will be subtracted from theAccumulation Value allocated to this method once each term. The Strategy Feewill be collected once each term at the earliest of any partial withdrawal inexcess of the penalty-free amount, full surrender or the end of the term. TheStrategy Fee is equal to the Strategy Fee Annual Percentage times two timesthe beginning of term Accumulation Value allocated to this method.

The Strategy Fee results in an increase to the participation rate, resulting in anincrease in the credited interest rate when the underlying index performance ispositive.

If the underlying index performance is zero or negative, the interest creditingamount to your policy for this option will be zero and as a result of the StrategyFee assessed, the amount of your Accumulation Value allocated to this optionwill decrease.

ANNUAL POINT-TO-POINT WITH INDEX MARGINThis method measures index growth using two points in time; the beginningindex value and the ending index value. Index-linked gains are calculatedbased on the difference between these two values less an Index Margin. Theannual interest credit will never be less than zero.




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GENERAL PRODUCT TERMS (continued)MONTHLY POINT-TO-POINT WITH INDEX CAPThis method uses the monthly changes in the index, subject to a monthly IndexCap Rate, and is based on the sum of all the monthly percentage changes inthe index—which could be positive or negative. On each contract anniversary,these monthly changes, each not to exceed the monthly Index Cap Rate, areadded together to determine the interest credit for that year. Negative monthlyreturns have no downside limit and will reduce the interest credit, but theannual interest credit will never be less than zero.

ANNUAL POINT-TO-POINT WITH INDEX CAP RATEThis method measures index growth using two points in time; the beginningindex value and the ending index value. Index-linked gains are calculatedbased on the difference between these two values. The index growth, if any, isthen subject to an Index Cap Rate. The annual interest credit will never be lessthan zero.

PROJECTED ILLUSTRATED VALUESThis illustration assumes the index will repeat historical performance and thatthe annuity’s current non-guaranteed elements, such as Index Caps, IndexMargins, Participation Rates or other interest crediting adjustments, will notchange. It is likely that the index will not repeat historical performance, the non-guaranteed elements will change, and actual values will be higher or lower thanthose in this illustration but will not be less than the minimum guarantees. Thevalues in this illustration are not guarantees or even estimates of the amountsyou can expect from your annuity. The following index has existed for less thanten years: Fidelity MFY 5% ER. Because this index does not have actualhistorical values for a period of ten years or more, the performance shown isdetermined by applying the current index methodology to the underlyinghistorical financial data. Please review the disclosure document provided withyour illustration and Buyer’s Guide for more detailed information. All rates areeffective as of the date of this illustration and are subject to change at any time.




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ENHANCED LIQUIDITY BENEFIT (OPTIONAL)During the surrender charge period, for a charge of 0.60% of the AccumulationValue annually, you will receive:

Enhanced Penalty-Free Withdrawal: Beginning the second contract year,a Penalty-Free Partial Surrender will increase to 20% (maximum) if noPenalty-Free Partial Surrender was taken in the previous year.

•

Return of Premium: Upon surrender, Return of Premium is availablestarting in Contract Year 4, less any withdrawals including strategy feesor rider charges (excluding the Enhanced Liquidity Benefit charges).

•

ADL-Based Surrender Charge Waiver: Up to 100% of AccumulationValue 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 equalperiodic payments over 5 years. Once elected, all other rights andbenefits under this contract are terminated.

•

Contract Years % of Accumulation Value1 N/A2 N/A3 110 %4 115 %5 120 %

6+ 125 %

ADL BENEFIT REQUIREMENTSThe Waiting Period has expired (If applicable); and•We receive acceptable written proof from a Physician who has determined,in a manner consistent with accepted standards and practice for thediagnosis, that the Covered Person is unable to meet 2 of 6 ADLs with anexpectation of permanence; and

•

Owner notify us of owner’s election to take either Waiver of SurrenderCharges based on ADL or Enhanced ADL Income Benefit•




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ALLOCATION SELECTION INFORMATIONAllocation Option Current Declared Rate Strategy Fee Annual Percentage Allocation PercentageFidelity MFY 5% ER (2YPP) 200.00% Two-Year Participation Rate 1.50% 100%

Fidelity MFY 5% ER is the Fidelity Multifactor Yield Index 5% ER.




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GUARANTEED ANNUITY CONTRACT VALUES

Certain Index Crediting Options include a Strategy Fee, which is assessed against theAccumulation Value allocated to that option each crediting term.

You should carefully consider the potential credited interest rate benefits of these CreditingOptions and the corresponding Strategy Fees assessed.

Annual Effective Rate: 0.00%+This chart illustrates values based on 0% growth, guaranteed rider charge rates, selected withdrawals, current Strategy Fees and the initial allocation. The Accumulation Value reflects rider charges and StrategyFees.

Enhanced Liquidity Benefit(Optional rider)

END OFYEAR

YoungestCoveredPerson

Start Age/EndAge

PremiumAnnual

Withdrawals 1

(Beginning of Year)

AccumulationValue / Death

BenefitSurrender

Value ^Credited

Interest Rate*ADL-Based Payout Benefit (5 Equal

Annual Payments)q

At Issue 69 $125,000 $125,000 N/A1 69 / 70 - $0 $124,250 $109,719 0.00% N/A2 70 / 71 $0 $0 $119,755 $110,070 0.00% N/A3 71 / 72 $0 $0 $119,036 $110,453 0.00% $26,1874 72 / 73 $0 $0 $114,729 $117,657 0.00% $26,3875 73 / 74 $0 $0 $114,041 $117,657 0.00% $27,3696 74 / 75 $0 $0 $109,915 $114,215 0.00% $27,4787 75 / 76 $0 $0 $109,255 $114,215 0.00% $27,3138 76 / 77 $0 $0 $105,302 $112,615 0.00% $26,3259 77 / 78 $0 $0 $104,670 $113,109 0.00% $26,167

10 78 / 79 $0 $0 $118,124 $118,124 0.00% $29,53111 79 / 80 $0 $0 $117,416 $117,416 0.00% $29,35312 80 / 81 $0 $0 $113,167 $114,475 0.00% $28,29113 81 / 82 $0 $0 $112,488 $114,941 0.00% $28,12214 82 / 83 $0 $0 $108,418 $115,416 0.00% $27,10415 83 / 84 $0 $0 $107,768 $115,919 0.00% $26,94116 84 / 85 $0 $0 $103,869 $116,432 0.00% $25,96717 85 / 86 $0 $0 $103,245 $116,973 0.00% $25,81118 86 / 87 $0 $0 $99,510 $117,523 0.00% $24,87719 87 / 88 $0 $0 $98,913 $118,101 0.00% $24,72820 88 / 89 $0 $0 $95,334 $118,689 0.00% $23,83330 98 / 99 $0 $0 $76,941 $125,611 0.00% $19,23546 114 / 115 $0 $0 $54,602 $140,388 0.00% $13,650

TotalWithdrawals:

First 30 Yrs:Cumulative:

$0$0 0.00%+

+ Annual Effective Rate over first 10 years.^ Reflects the maximum MVA.q Must meet eligibility requirements. See page .* Credited Interest Rate does not reflect the rider charge or Strategy Fees.1 Subject to any applicable penalty-free withdrawal provisions.




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NON-GUARANTEED ANNUITY CONTRACT VALUESMOST RECENT PERIOD from 12/31/2009 to 12/31/2019

Certain Index Crediting Options include a Strategy Fee, which is assessed against theAccumulation Value allocated to that option each crediting term.

You should carefully consider the potential credited interest rate benefits of these CreditingOptions and the corresponding Strategy Fees assessed.

Annual Effective Rate: 12.83%+This chart illustrates values based on the 10 most recent years of historical index performance, current rider charge, selected withdrawals, the initial allocation, current Strategy Fees and current rates. TheAccumulation Value reflects rider charges and Strategy Fees. Please refer to page 7 for Guaranteed Annuity Contract Values.

Enhanced Liquidity Benefit(Optional rider)

END OFYEAR

YoungestCoveredPerson

Start Age/EndAge

PremiumAnnual

Withdrawals 1

(Beginning of Year)

AccumulationValue / Death

BenefitSurrender

Value ^

CreditedInterest Rate*t

ADL-Based Payout Benefit (5 EqualAnnual Payments)q

At Issue 69 $125,000 $125,000 N/A1 69 / 70 - $0 $124,250 $115,242 0.00% N/A2 70 / 71 $0 $0 $177,098 $166,720 46.43% N/A3 71 / 72 $0 $0 $176,035 $166,001 0.00% $38,7274 72 / 73 $0 $0 $211,538 $201,173 23.93% $48,6535 73 / 74 $0 $0 $210,269 $201,564 0.00% $50,4646 74 / 75 $0 $0 $236,897 $228,984 16.38% $59,2247 75 / 76 $0 $0 $235,475 $229,494 0.00% $58,8688 76 / 77 $0 $0 $295,583 $290,558 29.32% $73,8959 77 / 78 $0 $0 $293,809 $291,459 0.00% $73,452

10 78 / 79 $0 $0 $348,539 $348,539 22.38% $87,13411 79 / 80 $0 $0 $346,448 $346,448 0.00% $86,61112 80 / 81 $0 $0 $427,947 $427,947 27.31% $106,98613 81 / 82 $0 $0 $425,379 $425,379 0.00% $106,34414 82 / 83 $0 $0 $525,446 $525,446 27.31% $131,36115 83 / 84 $0 $0 $522,293 $522,293 0.00% $130,57316 84 / 85 $0 $0 $645,158 $645,158 27.31% $161,28917 85 / 86 $0 $0 $641,287 $641,287 0.00% $160,32118 86 / 87 $0 $0 $792,144 $792,144 27.31% $198,03619 87 / 88 $0 $0 $787,391 $787,391 0.00% $196,84720 88 / 89 $0 $0 $972,618 $972,618 27.31% $243,15430 98 / 99 $0 $0 $2,714,149 $2,714,149 27.31% $678,53746 114 / 115 $0 $0 $14,019,728 $14,019,728 27.31% $3,504,931

TotalWithdrawals:

First 30 Yrs:Cumulative:

$0$0 12.83%+

+ Annual Effective Rate over first 10 years.^ Reflects the maximum MVA.q Must meet eligibility requirements. See page .* Credited Interest Rate does not reflect the rider charge or Strategy Fees.t During years 11+ the annual effective rate over the first 10 years is used for the credited interest rate.1 Subject to any applicable penalty-free withdrawal provisions.




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NON-GUARANTEED ANNUITY CONTRACT VALUESINDEX GROWTH PERIOD COMPARISON - MOST RECENT, HIGH, LOW

This chart illustrates values for the most recent, most favorable and least favorable 10-year period of historical indexreturns out of the last 20 years; these periods are determined based on index returns before any application ofIndex Strategy rates.The values and annual effective rates shown reflect the current rider charge, selected withdrawals, initial allocations,and application of current Index Strategy Rates to historical index returns. The Accumulation Value reflects ridercharges and Strategy Fees. Please refer to page 7 for Guaranteed Annuity Contract Values.

Annual Effective Rate Most Recent: 12.83%+

Annual Effective Rate Highest: 12.83%+

Annual Effective Rate Lowest: 6.72%+

MOST RECENT HIGHEST LOWEST

ContractYear

CreditedInterestRate*

AccumulationValue


AccumulationValue


AccumulationValue

At Issue $125,000 $125,000 $125,0001 0.00% $124,250 0.00% $124,250 0.00% $124,2502 46.43% $177,098 46.43% $177,098 7.96% $129,5853 0.00% $176,035 0.00% $176,035 0.00% $128,8084 23.93% $211,538 23.93% $211,538 28.51% $160,6505 0.00% $210,269 0.00% $210,269 0.00% $159,6866 16.38% $236,897 16.38% $236,897 10.99% $171,3537 0.00% $235,475 0.00% $235,475 0.00% $170,3258 29.32% $295,583 29.32% $295,583 15.14% $189,7959 0.00% $293,809 0.00% $293,809 0.00% $188,656

10 22.38% $348,539 22.38% $348,539 8.06% $196,945

AnnualEffective Rate

Net AnnualEffective Rate

12.83%+

11.48%^

12.83%+

11.48%^

6.72%+

5.29%^

Index Highest Index Growth Period Lowest Index Growth PeriodFidelity MFY 5% ER 12/31/2009 to 12/31/2019 12/31/1999 to 12/31/2009

+ Annual Effective Rate over 10 years.* Credited Interest Rate does not reflect the rider charge or Strategy Fees.^ Reflects applicable Rider Charges and Strategy Fees.




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This chart shows the Interest Credited Rate for non-guaranteed contract valuesshown on the previous page. This rate does not reflect the rider charge or StrategyFees.

INDEX OPTION BASED INTEREST CREDIT

Index Return Fidelity MFY 5% ER

Fidelity MFY 5% ER 2YPPP-Rate

TotalCredited Interest

Alloc. % 100%

YEAR MOST RECENT1 11.82% 0.00% 0.00%2 10.19% 46.43% 46.43%3 7.19% 0.00% 0.00%4 4.46% 23.93% 23.93%5 10.93% 0.00% 0.00%6 -2.47% 16.38% 16.38%7 6.33% 0.00% 0.00%8 7.83% 29.32% 29.32%9 -0.53% 0.00% 0.00%

10 11.78% 22.38% 22.38%YEAR HIGHEST

1 11.82% 0.00% 0.00%2 10.19% 46.43% 46.43%3 7.19% 0.00% 0.00%4 4.46% 23.93% 23.93%5 10.93% 0.00% 0.00%6 -2.47% 16.38% 16.38%7 6.33% 0.00% 0.00%8 7.83% 29.32% 29.32%9 -0.53% 0.00% 0.00%

10 11.78% 22.38% 22.38%YEAR LOWEST

1 5.23% 0.00% 0.00%2 -1.19% 7.96% 7.96%3 3.84% 0.00% 0.00%4 10.03% 28.51% 28.51%5 6.48% 0.00% 0.00%6 -0.92% 10.99% 10.99%7 3.28% 0.00% 0.00%8 4.16% 15.14% 15.14%9 -0.35% 0.00% 0.00%

10 4.40% 8.06% 8.06%Abbreviation Definition2YPP Two Year Point-to-Point

CREDITED INTEREST RATES BY INDEX - MOST RECENT, HIGH, LOW




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Projected Accumulation Value Based on Current Rates Over a 10-year PeriodThis graph shows the projected Accumulation Values based on historical index performance determined by the three historical indexing periods, the initial allocation, current rider charge, current StrategyFees, withdrawal selections and current rates shown on page 6 of the illustration. Please refer to page 7 for Guaranteed Annuity Contract Values.




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MARKET VALUE ADJUSTMENT (MVA)When you make a withdrawal, the amount you receive may be increased ordecreased by an MVA, depending on the change in interest rates since yourannuity purchase. If interest rates on which the MVA is based go up after you buyyour annuity, the MVA will likely decrease the amount you receive. If interestrates go down, the MVA will likely increase the amount you receive.

An MVA is applied only during the surrender charge period to full surrenders andany partial surrenders in excess of the Penalty-Free Partial Surrender Allowance.Changes in the Accumulation Value due to market value adjustment are notquoted in this illustration.

The graph below shows the projected surrender value under sample MVAscenarios as described below during the surrender charge period of the Contractbased on the initial premium amount and the assumption that there are no partialsurrenders.

Hypothetical Surrender Values Reflecting MVA




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Fixed Index Annuities are not a direct investment in the stock market. They are long-term insuranceproducts with guarantees backed by the issuing company. They provide the potential for interest tobe credited based in part on the performance of specific indices, without the risk of loss of premiumdue to market downturns or fluctuation. Although Fixed Index Annuities guarantee no loss ofpremium due to market downturns, deductions from your Accumulation Value for additional optionalbenefit riders could under certain scenarios exceed interest credited to your Accumulation Value,which would result in loss of premium. They may not be appropriate for all clients. Interest credits toa fixed index annuity will not mirror the actual performance of the relevant index.

Withdrawals taken prior to age 59 1/2 may be subject to IRS penalties.

Premium taxes: Accumulation Value will be reduced for premium taxes as required by the state ofresidence. These taxes are not reflected in the illustrated values.

Based on the current interpretation of the Model Regulation adopted by AL, CO, IA, MD, ME, MO,NH, OH, RI and WV, North American is not illustrating the S&P Marc 5% ER index in these states.This illustration may not be used in those states.

The S&P® Multi-Asset Risk Control 5% Excess Return is managed to a volatility target, and as aresult the index performance will not match the performance of any other index or the markets ingeneral since volatility control tends to reduce both the rate of negative performance and positiveperformance of the underlying index, thereby creating more stabilized performance. The S&P®

Multi-Asset Risk Control 5% Excess Return has been in existence since 3/27/2017. Ending valuesin years prior to inception are determined by S&P Dow Jones Indices LLC or its affiliates (“SPDJI”)using the same methodology as used currently.

Based on the current interpretation of the Model Regulation adopted by AL, CO, IA, MD, ME, MO,NH, OH, RI and WV, North American is not illustrating the Fidelity Multifactor Yield Index 5% ER inthese states. This illustration may not be used in those states.

The "S&P Multi-Asset Risk Control 5% Excess Return", “S&P 500®”, "S&P 500® Low VolatilityDaily Risk Control 5% Index", “S&P MidCap 400®”, and “DJIA®”, Indices (“Indices”) are products ofS&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by NorthAmerican Company (“the Company”). Standard & Poor’s® and S&P® are registered trademarks ofStandard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for useby SPDJI and sublicensed for certain purposes by the Company. NAC VersaChoice 10 is notsponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliatesand none of such parties make any representation regarding the advisability of investing in suchproduct(s) nor do they have any liability for any errors, omissions, or interruptions of the Indices.

The S&P 500® Low Volatility Daily Risk Control 5% Index is managed to a volatility target, and as aresult the index performance will not match the performance of any other index or the markets ingeneral since volatility control tends to reduce both the rate of negative performance and positiveperformance of the underlying index, thereby creating more stabilized performance. The S&P 500®Low Volatility Daily Risk Control 5% Index has been in existence since Aug. 18, 2011. Endingvalues in years prior to inception are determined by S&P Dow Jones Indices LLC or its affiliates(“SPDJI”) using the same methodology as used currently.

The Fidelity Multifactor Yield Index 5% ER (the “Index”) is a multi-asset index, offering exposure tocompanies with attractive valuations, high quality profiles, positive momentum signals, lowervolatility and higher dividend yield than the broader market, as well as U.S. treasuries, which mayreduce volatility over time. Fidelity is a registered trademark of FMR LLC. Fidelity Product ServicesLLC (“FPS”) has licensed this index for use for certain purposes to North American Company forLife and Health Insurance® (the “Company”) on behalf of the NAC VersaChoiceSM . The Index isthe exclusive property of FPS and is made and compiled without regard to the needs, including, butnot limited to, the suitability needs, of the Company, the NAC VersaChoiceSM , or owners of theNAC VersaChoiceSM . The NAC VersaChoiceSM is not sold, sponsored, endorsed or promoted byFPS or any other party involved in, or related to, making or compiling the Index. The Companyexercises sole discretion in determining whether and how the NAC VersaChoiceSM will be linked tothe value of the Index. FPS does not provide investment advice to owners of the NACVersaChoiceSM , nor to any other person or entity with respect to the Index and in no event shallany NAC VersaChoiceSM contract owner be deemed to be a client of FPS.Neither FPS nor any other party involved in, or related to, making or compiling the Index has anyobligation to continue to provide the Index to the Company with respect to the NAC VersaChoiceSM

. Neither FPS nor any other party involved in, or related to, making or compiling the Index makesany representation regarding the Index, Index information, performance, annuities generally or theNAC VersaChoiceSM particularly.Fidelity Product Services LLC disclaims all warranties, express or implied, including allwarranties of merchantability or fitness for a particular purpose or use. Fidelity ProductServices LLC shall have no responsibility or liability whatsoever with respect to the NACVersaChoiceSM .The Fidelity Multifactor Yield Index 5% ER strives to create enhanced and stable returns throughinvesting in proven equity factors, while applying excess return and daily volatility controlmethodologies. The equity component of the index diversifies across six factor indices with fixedweights to each. The Fidelity Multifactor Yield Index 5% ER adds an element of risk control byallocating daily between stocks, as represented by the six equity factor indices, and a dynamicbond overlay which consists of 10-year Treasury Note futures and potentially cash. Because thisindex is managed to a volatility target, the index performance will not match the weightedunderlying performance of the six equity factor indices. Typically, the volatility control tends toreduce the rate of negative performance and positive performance of the weighted value of theunderlying indices – thus creating more stabilized performance. The Fidelity Multifactor Yield Index5% ER value is available at the following website: https://go.fidelity.com/FIDMFY




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ContinuedWe reserve the right to add, remove or revise availability of the Fidelity Multifactor Yield Index 5%ER, or to substitute a different published benchmark should the Company, in its discretion,determine that the use of the Fidelity Multifactor Yield Index 5% ER no longer is commerciallyreasonable. The Fidelity Multifactor Yield Index 5% ER does not constitute a purchase of or directinvestment in the index, or in the underlying components of the index. All references to FidelityMultifactor Yield Index 5% ER values are used with the permission of Fidelity Product Services LLCand have been provided for informational purposes only. Fidelity accepts no liability or responsibilityfor the accuracy of the prices or the underlying components to which the prices may be referenced.Sammons FinancialSM is the marketing name for Sammons® Financial Group, Inc.’s membercompanies, including North American Company for Life and Health Insurance®. Annuities and lifeinsurance are issued by, and product guarantees are solely the responsibility of, North AmericanCompany for Life and Health Insurance.

1 A feature offered "by current company practice" is not a contractual guarantee of this annuitycontract and can be removed or changed at any time.

2 The Surrender Charge Percentage in the 10th Contract Year will decrease 0.04% monthly untilthe surrender charge equals 0.00%. The decrease will occur on the same day in each month as thedate of the Contract Anniversary; if the date does not exist for a given month, the date for thatmonth will be the last calendar day of the month.




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NAC VersaChoice 10Input Summary Report

Producer

Producer JAMES ALDEN

Owner Information

Owner Information

Owner Type Same as Annuitant(s)

Annuitant Information

Annuitant Type Individual

Client Name Sandra Leppelman

Gender Female

Issue Age 69

Illustration

Period Illustrated Accumulation Only

Illustration Effective Date 08/24/2020

Market Non-Qualified

Accumulation Benefits

Guaranteed Minimum Accumulation Benefit False

Guaranteed Minimum Withdrawal Benefit False

Guaranteed Minimum Income Benefit True 5 years certain

Guaranteed Minimum Death Benefit Account Value

Initial Contribution

Amount $125,000

1035 Exchange Amount $0

1035 Exchange Basis $0

Periodic Payments

Mode Annual

Scheduled Payments Value Adjustment From - Through

$0.00 $0.00 2 - M

Withdrawals

Mode Annual

Scheduled Withdrawals Type Withdrawal Basis Value Adjustment From - Through

None Percentage 0.00% $0.00 2- M

Target Withdrawal

Target Withdrawal Not Elected

Performance Model

Illustration Based On Custom Subaccount Allocation

Subaccount Assumptions

Past Performance Duration Longest Common Period

Illustrate Dollar Cost Averaging False

Subaccount Fidelity MFY 5% ER 100.00%

Rebalance Subaccount None

Reports Options

Years to Illustrate Contract Years 1-20

prepared for: personalized hypothetical illustration nac ... · owner: sandra leppelman issue...

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