North American VersaChoice 10 Fixed Indexed Annuity


North American VersaChoice 10 fixed indexed annuity provides safe wealth accumulation, extra liquidity, and helps pay for long term care. 

NAC VersaChoice 10 is a modified single premium, fixed index annuity with an optional rider for an additional fee that allows you access to more of the funds, sooner.



Key benefits of NAC VersaChoice 10

Multiple options for liquidity

When you choose the optional enhanced liquidity benefit (ELB) rider, you’ll have several ways to access more of the funds, earlier, should the need arise.

Choose a strategy that suits you NAC VersaChoice 10 offers a selection of index strategies, allowing you to find a comfortable fit, no matter your personal financial approach.

Lock-in interest credits each contract anniversary

One advantage of fixed index annuities is a reset feature, which applies to this annuity no matter which crediting method you choose.

With the reset, any interest credits are added, or credited, to your accumulation value on each contract anniversary.

For the Two-year-Point-to-Point option, this reset happens at the end of each two-year term, instead of annually.

Once credits are added, they’re locked in.

That means they can’t be taken away due to negative index performance.

At that point, they are included in your accumulation value, giving you the advantage of compounding interest in subsequent years.

Also, by resetting your starting index value at the same time, this feature can help minimize your risk if the index experiences a severe downturn.

Without it, you’d have to wait for the index value to climb up to its original level before any interest credit could be realized.

Tax deferral improves growth potential

Your annuity’s value grows on a tax-deferred basis, meaning more of it is working for you.

Tax-deferred growth means you don’t owe taxes until you access your funds, allowing more time for growth potential.

Work with your tax advisor to find out how this might work for you.

Under current law, annuities grow tax-deferred.

An annuity is not required for tax deferral in qualified plans.

Annuities may be subject to taxation during the income or withdrawal phase.

Provide a lasting legacy

Your beneficiaries will get the remaining accumulation value of your annuity as a death benefit – either in an immediate lump sum or in installments.

And, because annuities may avoid the costs and delays of probate, they may not have to wait.

Please consult with and rely on your own legal or tax advisor.

Take advantage of flexible payout options

Whether you need to start drawing income soon after purchasing your annuity or you’d prefer to wait and build your lifetime income potential, there’s an option for you.

Learn more in the payout option section.

North American Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.


How the enhanced liquidity benefit works

Through four features, the optional enhanced liquidity benefit (ELB) offers you the versatility you may need to navigate whatever life has in store.

You’ll pay an annual fee equivalent to 0.50% of your accumulation value.

Enhanced penalty-free withdrawals

After your first contract anniversary, you’ll be able to take out up to 20% of your beginning-of-year accumulation value penalty-free if no withdrawals other than ELB charges were taken in the prior year.

Return of premium

Any time after your second contract year concludes, you may terminate the contract and receive no less than your contract’s net premium paid. The net premium is equal to the total premium, reduced by all withdrawals on a dollar-for-dollar basis (excluding the rider cost).

Further flexibility when you may need it most

Potentially activate two additional features based on activities of daily living (ADLs). ADL-based benefits do not require underwriting.

ADL-based surrender charge waiver

If you’re unable to complete two of the six ADLs after the issue date and otherwise qualify*, up to 100% of your accumulation value is available immediately with no surrender charges or market value adjustment.

ADL-based payout benefit

If you’re unable to perform 2 of 6 ADLs after your second contract anniversary and otherwise qualify*, you may choose to draw an income over five years that is based on an enhanced accumulation value amount.

This accumulation value multiplier increases the longer you keep the funds in the annuity, maxing out after six years.

Check out a Long Term Care Annuity to supplement your long term care insurance needs.

ELB considerations

While there are a number of valuable benefits to NAC VersaChoice fixed index annuity and the ELB rider, there are several things to consider.

To qualify for ADL-based rider benefits At the time the rider becomes effective, you’ll have to be able to perform all six activities of daily living. The six ADLs include:

  1. Bathing – Washing yourself by sponge bath in a tub or shower, including getting in or out.
  2. Continence – Bowel and bladder control or, when unable to maintain control, the ability to perform associated personal hygiene.
  3. Dressing – Includes putting on and taking off clothing and any necessary braces, fasteners, or artificial limbs.
  4. Eating – Being able to feed yourself or manage a feeding tube or intravenous feeding.
  5. Toileting – Getting to and from the toilet, getting on and off it, and performing associated personal hygiene.
  6. Transferring – Moving into or out of a bed, chair, or wheelchair.

To take advantage of the benefits, additional conditions have to be met:

  • The waiting period for that specific benefit has to have expired.
  • You’ll have to notify us of your election to take either waiver of surrender charge based on activities of daily living or the payout benefit. We will need to receive written proof, acceptable to us, from a physician who has determined that you are unable to meet two of six ADLs with an expectation the condition(s) are permanent. For full ADL definitions, please refer to the disclosure.


How your annuity can grow

North American’s VersaChoice 10 has a strategy and index account option to suit your style:

Set your strategy

You have total control over how your initial premium is allocated between our fixed account or index accounts.

Choose from several crediting methods:

  • Monthly Point-to-Point with Index Cap Rate
  • Annual Point-to-Point with Index Cap Rate
  • Annual Point-to-Point with Index Margin
  • Annual Point-to-Point with Participation Rate
  • Two-year Point-to-Point with Participation Rate
  • Fixed Account Each crediting method and the index account options on the next page may perform differently in various market scenarios.


Options for accessing funds

How withdrawals work for the base contract

Like most annuities, the base NAC VersaChoice 10 contract (without the rider) limits when and how much you can withdraw from your annuity penalty-free.

However, it does allow you access to a portion of funds each year.

Taking out more money than what’s available penalty-free will incur a surrender charge.

A market value adjustment may also apply.

Withdrawals may be treated by the government as ordinary income.

If taken prior to age 59 1/2, a withdrawal could also be subject to a 10% IRS penalty.

Withdrawals will reduce your accumulation value accordingly.

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.

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, premium bonus recapture, and interest 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.

ELB rider provides more generous access

When you add the ELB rider, you’ll get enhanced access to funds. In some cases, the rules above are simply modified to give you more or earlier access. When you meet certain conditions, the restrictions are eliminated. 

Your annuitization payout options

You may decide to begin receiving income payments from your annuity at the end of the first contract year based on the surrender value.

These optional payouts are available in deferred annuities like NAC VersaChoice 10 but are not required.

Once a payout option is elected, however, it can’t be changed, and all other rights and benefits under the annuity ends.

In a non-qualified annuity, generally, the premium has already been taxed.

A portion of each income payout from a non-qualified plan would be considered a return of premium.

That amount would not be taxable, but any credited gains would be.

In all states except Florida, by current company practice*, you may receive an income from the accumulation value after the first contract year (without surrender charges or market value adjustment) if you choose a life income option.

You can also receive an income based on the accumulation value if your annuity has been inforce for at least five years and you elect to receive payments over at least a 5-year period.



Minimum Premium

Maximum Premium

Enhanced Benefits


Contract Length

Company Rating (A.M. Best)

Maximum Issue Age

Insurance Company

Premium Type

Annuitization Required

Annual Penalty-Free Withdrawals

Death Benefit


Surrender Charge Waivers


Annual Fees

State Availability

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Cancellation Policy

Liquidity Options


Accepted Funds

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