<PAGE>
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE ANNUITY ACCOUNT FIVE
(PORTION RELATING TO SEASONS SELECT II VARIABLE ANNUITY)
--------------------------------------------------------------------------------
SUPPLEMENT TO THE SEASONS SELECT II PROSPECTUS DATED OCTOBER 16, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ALL PARAGRAPHS PRECEDING THE SEASONS ESTATE ADVANTAGE SECTION ON PAGE 26 OF THE
PROSPECTUS ARE REPLACED WITH THE FOLLOWING:
The term "Net Purchase Payment" is used frequently in explaining the death
benefit options. We define Net Purchase Payments as Purchase Payments less an
adjustment for each withdrawal. If you have not taken any withdrawals from your
contract, Net Purchase Payments equals total Purchase Payments into your
contract.
To calculate the adjustment amount for a withdrawal, you first determine the
percentage by which the contract value is reduced by the withdrawal, on the date
of the withdrawal. This percentage is calculated by dividing the amount of each
withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking that withdrawal. The percentage amount
is then multiplied by the amount of Net Purchase Payments immediately before the
withdrawal to get the adjustment amount. This amount is subtracted from the
amount of Net Purchase Payment(s) immediately before the withdrawal.
If Seasons Rewards is elected, any payment enhancements are not considered
Purchase Payments.
STANDARD DEATH BENEFIT
The Standard Death Benefit on your contract, if you are age 74 or younger at the
time of death, is the greater of:
1. Net Purchase Payments compounded at a 3% annual growth rate from the date of
issue until the date of death, plus any Net Purchase Payments recorded after
the date of death; or
2. The contract value at the time we receive satisfactory proof of death.
The Standard Death Benefit on your contract, if you are age 75 or older at the
time of death is the greater of:
1. Net Purchase Payments compounded at a 3% annual growth until your 75th
birthday, plus any Net Purchase Payments recorded after age 75 until the
date of death; or
2. The contract value at the time we receive satisfactory proof of death.
THE PARAGRAPH BELOW IS ADDED TO THE END OF THE FIRST PARAGRAPH OF THE SEASONS
ESTATE ADVANTAGE SECTION ON PAGE 26 OF THE PROSPECTUS:
Seasons Estate Advantage is not available if you are older than age 80 at the
time we issue your contract. If you die after the latest Annuity Date, the
available death benefit under the contract will be the Standard Death Benefit as
described on page 26 of the prospectus; your beneficiary will not receive any
benefit from Seasons Estate Advantage.
THE PARAGRAPH BELOW IS ADDED AS THE LAST PARAGRAPH ON PAGE 26 OF THE PROSPECTUS:
If you are age 90 or older at the time of death and you selected Option 2, the
death benefit will be equal to the value of the contract at the time we receive
satisfactory proof of death. Accordingly, you do not get the advantage of Option
2 if you are over the age 90 or older at the time of death.
<PAGE>
THE TABLE BELOW REPLACES THE TABLE ON PAGE 27 OF THE PROSPECTUS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONTRACT YEAR OF DEATH EARNINGS ADVANTAGE MAXIMUM
PERCENTAGE EARNINGS ADVANTAGE
PERCENTAGE
---------------------------------------------------------------------------------------------
<S> <C> <C>
Years 0-4 25% of earnings 25% of Net Purchase Payments
---------------------------------------------------------------------------------------------
Years 5-9 40% of earnings 40% of Net Purchase Payments*
---------------------------------------------------------------------------------------------
Years 10+ 50% of earnings 50% of Net Purchase Payments*
---------------------------------------------------------------------------------------------
</TABLE>
*Purchase Payments must be invested for at least six months at the time of your
death to be included as part of Net Purchase Payments for purposes of the
Maximum Earnings Advantage Percentage calculation.
THE PARAGRAPHS BELOW REPLACE THE ENTIRE SPOUSAL CONTINUATION SECTION ON PAGES
27-28 OF THE PROSPECTUS:
If you are the original owner of the contract and the Beneficiary is your
spouse, your Spouse may elect to continue the contract after your death. The
spouse becomes the new owner ("Continuing Spouse") and is subject to the same
fees, charges and expenses applicable to the original owner of the contract. The
Continuing Spouse can only elect to continue the contract upon the death of the
original owner of the contract.
Upon continuation of the contract, we will contribute to the contract value an
amount by which the death benefit that would have been paid to the beneficiary
upon the death of the original owner exceeds the contract value ("Continuation
Contribution"), if any. We calculate the Continuation Contribution as of the
date of the original owner's death. We will add the Continuation Contribution as
of the date we receive both the Continuing Spouse's written request to continue
the contract and proof of death of the original owner in a form satisfactory to
us ("Continuation Date").
Generally, the Continuing Spouse cannot change any contract provisions as the
new owner. However, on the Continuation Date, the Continuing Spouse may
terminate the original owner's election of Seasons Estate Advantage. We will
terminate Seasons Estate Advantage if the Continuing Spouse is over the age of
80 on the Continuation Date. If Seasons Estate Advantage is discontinued or if
the Continuing Spouse dies after the latest Annuity Date, the available death
benefit under the contract will be the Standard Death Benefit as described on
page 26 of the prospectus. The age of the Continuing Spouse on the Continuation
Date and on the date of the Continuing Spouse's death will be used in
determining any future death benefits under the Contract.
The term "Continuation Net Purchase Payment" is used frequently to describe the
death benefit options below. We define Continuation Net Purchase Payment as Net
Purchase Payments made as of the Continuation Date. For the purpose of
calculating Continuation Net Purchase Payments, the amount that equals the
contract value on the Continuation Date, including the Continuation Contribution
is considered a Purchase Payment. If the Continuing Spouse makes no additional
Purchase Payments or withdrawal, Continuation Net Purchase Payments equals the
contract value on the Continuation Date, including the Continuation
Contribution.
STANDARD DEATH BENEFIT PAYABLE UPON CONTINUING SPOUSE'S DEATH
If the Standard Death Benefit is applicable upon the Continuing Spouse's death
and the Continuing Spouse is age 74 or younger at the time of death, we will pay
the beneficiary the greater of:
1. Continuation Net Purchase Payments compounded at a 3% annual growth rate
until the date of death, plus any Net Purchase Payments recorded after the
date of death; or
2. The contract value at the time we receive satisfactory proof of death.
<PAGE>
If the Continuing Spouse is age 75 or older at the time of death, the Standard
Death Benefit is the greater of:
1. Continuation Net Purchase Payments compounded at a 3% annual
growth until the Continuing Spouse's 75th birthday, plus any
Net Purchase Payments recorded after age 75 until the date of
death; or
2. The contract value at the time we receive satisfactory
proof of death.
SEASONS ESTATE ADVANTAGE DEATH BENEFIT PAYABLE UPON CONTINUING SPOUSE'S DEATH
If Seasons Estate Advantage is applicable upon the Continuing Spouse's death,
we will pay the Beneficiary the sum of A plus B, where:
A. equals the amount payable under the selected enhanced death benefit
(option 1 or 2 below, as selected by the original owner); and
B. equals the amount payable, if any, under the Earnings Advantage
feature.
A. Enhanced Death Benefit Options for Spousal Continuation:
1. 5% Accumulation Option -- the death benefit is the greater of:
a. The contract value on the date we receive satisfactory
proof of the Continuing Spouse's death; or b. Net Purchase
Payments made from the original contract issue date including
the Continuation Contribution, compounded to the earlier of
the Continuing Spouse's 80th birthday or the date of death at
a 5% annual growth rate, plus any Net Purchase Payments
recorded after age 80 or the date of death, up to a maximum
benefit of two times the Net Purchase Payments.
2. Maximum Anniversary Value Option - if the Continuing Spouse is below
age 90 at the time of death, the death benefit is the greater of:
a. Continuation Net Purchase Payments; or
b. The contract value at the time we receive satisfactory
proof of the Continuing Spouse's death; or
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date prior to the earlier of
the Continuing Spouse's 81st birthday or date of death. The
anniversary value equals the value of the contract on a
contract anniversary plus any Net Purchase Payments recorded
since that anniversary. Contract anniversary is defined as any
anniversary following the full 12 month period after the
original contract issue date.
If the Continuing Spouse is age 90 or older at the time of death and
Option 2 applied, the death benefit will be equal to the value of the
contract at the time we receive satisfactory proof of death.
B. Earnings Advantage Feature for Spousal Continuation:
The Earnings Advantage feature may increase the death benefit amount. The
Earnings Advantage is only available if the original owner elected Seasons
Estate Advantage and it has not been discontinued. If the Continuing Spouse has
earnings in the contract at the time of his/her death, we will add a stated
percentage of those earnings (subject to a maximum) to the death benefit
payable, based on the number of years the Continuing Spouse has held the
contract since the Continuation Date. The Earnings Advantage amount, if any, is
added to the death benefit payable under the 5% Accumulation option or the
Maximum Anniversary Value option.
<PAGE>
The following table identifies the factors we use in determining the percentage
of earnings that will be added to the death benefit at the Continuing Spouse's
date of death:
<TABLE>
<CAPTION>
------------------------------------- ----------------------------------- ------------------------------------------------
CONTRACT YEAR OF DEATH EARNINGS ADVANTAGE PERCENTAGE MAXIMUM
EARNINGS ADVANTAGE PERCENTAGE
------------------------------------- ----------------------------------- ------------------------------------------------
<S> <C> <C>
Years 0-4 25% of earnings 25% of Continuation Net Purchase Payments
------------------------------------- ----------------------------------- ------------------------------------------------
Years 5-9 40% of earnings 40% of Continuation Net Purchase Payments*
------------------------------------- ----------------------------------- ------------------------------------------------
Years 10+ 50% of earnings 50% of Continuation Net Purchase Payments*
------------------------------------- ----------------------------------- ------------------------------------------------
</TABLE>
*PURCHASE PAYMENTS MUST BE INVESTED FOR AT LEAST SIX MONTHS AT THE TIME OF YOUR
DEATH TO BE INCLUDED AS PART OF CONTINUATION NET PURCHASE PAYMENTS FOR PURPOSES
OF THE MAXIMUM EARNINGS ADVANTAGE CALCULATION.
WHAT IS THE CONTRACT YEAR OF DEATH?
Contract Year of Death is the number of full 12 month periods starting on the
Continuation Date and ending on the Continuing Spouse's date of death.
WHAT IS THE EARNINGS ADVANTAGE AMOUNT?
We determine the Earnings Advantage amount based upon a percentage of earnings
in the contract at the time of the Continuing Spouse's death. For the purpose of
this calculation, earnings are defined as (1) minus (2) where
(1) equals the contract value on the Continuing Spouse's date of death;
(2) equals the Continuation Net Purchase Payment(s).
WHAT IS THE MAXIMUM EARNINGS ADVANTAGE AMOUNT?
The Earnings Advantage amount is subject to a maximum. The Maximum Earnings
Advantage amount is a percentage of the Continuation Net Purchase Payments.
WE RESERVE THE RIGHT TO MODIFY, SUSPEND OR TERMINATE THE SPOUSAL CONTINUATION
PROVISION (IN ITS ENTIRETY OR ANY COMPONENT) ON ANY PROSPECTIVELY ISSUED
CONTRACTS. THE TERMS OF YOUR CONTRACT, AS OF THE DATE OF ISSUE, WILL NOT BE
AFFECTED UNLESS OTHERWISE NOTED.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
Dated: December 7, 2000
