Asset Allocation¹
Asset allocation is finding the right combination of asset classes – stocks, bonds and/or cash – to balance your expectations for returns with your tolerance for risk. Proper asset allocation takes into consideration your risk tolerance level and personal time horizon to help achieve consistent investment objectives. It also may help spur potential long-term growth, as well as diffuse volatility and prevent large swings in your overall variable annuity Contract Value. 

Rebalancing
When you created your portfolio, you established a "balance" of investments ... perhaps a blend of equities, bonds and mutual funds. As investment markets and trends change over time, it's recommended that you meet with a financial adviser and periodically review how your portfolio is balanced. You may find that "rebalancing" is needed ... for example, you might decide to reduce your percentage of equities and increase your percentage of bond holdings. That's rebalancing.

Many investors find that reviewing their holdings on a regular basis can help maintain a workable proportion of asset classes.

Dollar-Cost Averaging²
For investors, timing risks such as buying when the market peaks and selling when the market loses momentum can be a concern. To that end, some investors find that the investment strategy of dollar-cost averaging (DCA) works well.

 DCA strategy refers to making regular, equal purchase payments towards a particular investment over a specific time period (e.g., $200 per month). With this approach, more investment shares are purchased when prices are low and fewer when prices are high. Over time, the purchase costs are averaged out, lowering the total cost per share.|

Establishing a DCA program will automatically transfer your assets on a regularly scheduled basis from a Fixed Account or DCA Account (if available) into other investment options you select.

The initial purchase payment amount to be dollar-cost averaged is allocated to the appropriate DCA Account, and a portion of the money is moved on a monthly or quarterly basis to the selected variable portfolios over a 6- or 12-month period, until the entire amount to be dollar-cost averaged has been transferred. Because of the monthly or quarterly transfers, the stated interest rate is not earned on the entire amount allocated to the dollar-cost averaging account; therefore, the daily accrual and the effective yield will be affected. These interest rates do not reflect the performance of any portfolio option available under the contract.

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¹ Asset allocation does not ensure a gain or protect against a loss in declining markets.

² Dollar-cost averaging does not ensure a profit or protect against a loss in declining markets.

Not a deposit | Not FDIC insured | Not guaranteed by any bank | May lose value | Not insured by any government agency

Variable Annuity Issuer: National Security Life and Annuity Company
Variable Annuity Distributor: AuguStar^SM Distributors, Inc., Member FINRA

Variable annuities are sold by prospectuses, which contain more complete information including fees, surrender charges (contingent deferred sales charges) and other costs that may apply.

To obtain current prospectuses, contact your financial professional or visit nslac.com. Please read the product and fund prospectuses carefully before you invest or send money. Investors should consider the investment objectives, strategies, risk factors, charges and expenses of the underlying variable portfolios carefully before investing. The fund prospectus contains this and other information about the underlying variable portfolios.

Early withdrawals or surrenders may be subject to surrender charges. Withdrawals are also subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. For tax purposes only, withdrawals will come first from any gain in the contract. Federal and state tax laws in this area are complex and subject to change. Consult your personal tax adviser on all tax matters. Withdrawals may reduce the death benefit, cash surrender value and any living benefit amount.

There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan because these are already afforded tax-deferred status. An annuity should only be purchased in an IRA or qualified plan if the contract owner values some of the other features of the annuity and is willing to incur any additional costs associated with the annuity.

Variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining Contract Value.

Guarantees are based upon the claims-paying ability of National Security Life and Annuity Company. Guarantees do not apply to the investment performance or account value of the underlying variable portfolios. As with any investment, investing in variable portfolios involves risk, including possible loss of principal. 

National Security Life and Annuity Company is financially responsible for the products it offers. AuguStar^SM Distributors, Inc. has no responsibility for the financial condition or contractual obligations of National Security.

This material is for general use with the public and is not intended to provide investment advice for any individual.

The National Security Life and Annuity Company and its affiliates have financial interests in the sale of the products detailed within this material.