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PORTFOLIO SELECT VARIABLE ANNUITY
Issued by
PFL Life Insurance Company
Supplement Dated December 29, 2000
to the
Prospectus dated May 1, 2000
Effective December 29, 2000, the following changes were made:
. Alliance Premier Growth Portfolio--Class B and Alliance Technology
Portfolio--Class B, managed by Alliance Capital Management L.P., were
added as investment choices; and
. Evergreen VA Blue Chip Fund and Evergreen VA Omega Fund, managed by
Evergreen Investment Management Company, were added as investment choices.
All defined terms used herein, which are not defined herein, shall have the
same meanings as the same terms used in the accompanying prospectus.
Alliance Premier Growth Portfolio--Class B, Alliance Technology Portfolio--
Class B, Evergreen VA Blue Chip Fund, and Evergreen VA Omega Fund may not
currently be available in all states. Please contact your financial
representative for additional information regarding the availability of these
portfolios in your state.
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The following information hereby supplements the Annuity Policy Fee Table
contained in the prospectus.
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ANNUITY POLICY FEE TABLE
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Portfolio Annual Expenses(/1/) (as a percentage of average net assets and
after expense reimbursements)
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Total
Rule Portfolio
Management Other 12b-1 Annual
Fees Expenses Fees Expenses
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Alliance Premier Growth Portfolio --
Class B................................. 1.00% 0.04% 0.25% 1.29%
Alliance Technology Portfolio -- Class
B(/2/).................................. 1.00% 0.27% 0.25% 1.52%
Evergreen VA Blue Chip Fund(/3/)(/4/).... 0.61% 0.65% -- 1.26%
Evergreen VA Omega Fund(/5/)............. 0.52% 0.44% -- 0.96%
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(/1/)The fee table information relating to the underlying funds was provided to
PFL by the underlying funds, their investment advisers or managers, and
PFL has not and cannot independently verify the accuracy or completeness
of such information. Actual future expenses of the portfolios may be
greater or less than those shown in the Table. Therefore, PFL disclaims
any and all liability for such information.
(/2/)Effective May 1, 2000, the Alliance Technology Portfolio no longer assumed
portfolio expenses. Accordingly, the table shows restated total expenses
for the fund without the assumption of expenses as of December 31, 1999.
(/3/)Estimated for the fiscal year ending 12/31/2000.
(/4/)From time to time, the Portfolio's investment advisor may, at its
discretion, reduce or waive its fees or reimburse the Fund for certain of
its expenses in order to reduce expense ratios. The Portfolios investment
advisor may cease these waivers or reimbursements at any time. The Total
Portfolio Annual Expenses do not reflect fee waivers and expense
reimbursements. Including fee waivers and expenses reimbursements, Total
Portfolio Annual Expenses are estimated to be 1.00%.
(/5/)The Total Portfolio Annual Expenses are restated for the fiscal year ended
12/31/1999 to reflect current fees.
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EXAMPLES
The following information hereby supplements the Examples contained in the
prospectus.
You would pay the following expenses The expenses reflect different
on a $1,000 investment, assuming a mortality and expense risk fees
hypothetical 5% annual return on depending on which death benefit
assets, assuming the entire policy you select:
value is in the applicable A = Return of Premium Death
subaccount, and assuming the family Benefit (1.10% charge)
income protector rider has not been B = 5% Annually Compounding Death
selected: Benefit or the Annual Step-Up
Death Benefit (1.25% charge)
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<CAPTION>
If the Policy is
annuitized at
the end of the
If the Policy is applicable time
surrendered period or if the
at the end of the Policy is still
applicable in the accumulation
time period. phase.
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3 5 10 1 3 5 10
Subaccounts Year Years Years Years Year Years Years Years
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Alliance Premier Growth A $ 80 $ 122 $ 147 $ 294 $ 26 $ 81 $ 138 $ 294
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Portfolio--Class B........... B $ 82 $ 126 $ 154 $ 308 $ 28 $ 85 $ 146 $ 308
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Alliance Technology
Portfolio--Class B.......... A $ 83 $ 129 $ 158 $ 316 $ 29 $ 88 $ 150 $ 316
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B $ 84 $ 133 $ 166 $ 330 $ 30 $ 92 $ 157 $ 330
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Evergreen VA Blue Chip Fund.. A $ 80 $ 121 $ 145 $ 291 $ 26 $ 80 $ 137 $ 291
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B $ 81 $ 125 $ 153 $ 306 $ 28 $ 85 $ 144 $ 306
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Evergreen VA Omega Fund...... A $ 77 $ 112 $ 130 $ 261 $ 23 $ 71 $ 122 $ 261
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B $ 78 $ 116 $ 138 $ 276 $ 25 $ 76 $ 129 $ 276
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The above table will assist you in understanding the costs and expenses of the
policy and the underlying funds that you will bear, directly or indirectly.
These include the 1999 expenses of the underlying fund portfolios. In addition
to the expenses listed above, premium taxes may be applicable.
The examples should not be considered a representation of past or future
expenses, and actual expenses may be greater or less than those shown. The
assumed 5% annual return is hypothetical and should not be considered a
representation of past or future annual returns, which may be greater or less
than the assumed rate.
In these examples, the annual $30 service charge is reflected as a charge of
0.0636% based on an estimated average policy value of $47,175.00.
These examples do not reflect the annual fee of 0.30% of the minimum
annuitization value for the family income protector rider. The above expense
figures would be approximately $3 per year higher if you elected that rider.
Financial Information. The Alliance Premier Growth Subaccount--Class B,
Alliance Technology Subaccount--Class B, Evergreen VA Blue Chip Fund, and
Evergreen VA Omega Fund had not commenced operations as of December 31, 1999,
therefore comparable information is not available.
2
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APPENDIX B
HISTORICAL PERFORMANCE DATA
Standardized Performance Data and Non-Standardized Performance Data
The Alliance Premier Growth Subaccount--Class B, Alliance Technology
Subaccount--Class B, Evergreen VA Blue Chip Fund and Evergreen VA Omega Fund
had not commenced operations as of December 31, 1999, therefore, comparable
data is not available.
The following Tables hereby supplement the corresponding Historical
Performance Data Tables in the prospectus.
Adjusted Historical Performance Data
TABLE 3--A Adjusted Historical Annual Total Returns(/1/) (Assuming No
Surrender Charge or Family Income Protector)
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Return of Premium Death Benefit
(Total Mutual Fund Account Annual Expenses: 1.25%)
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<TABLE>
<CAPTION>
Corresponding
10 Year Portfolio
Portfolio 1 Year 5 Year or Inception Inception Date
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<S> <C> <C> <C> <C>
Alliance Premier Growth Portfolio--
Class B(/2/)...................... 30.39% 34.05% 24.48% June 26, 1992
Alliance Technology Portfolio--
Class B(/3/)...................... 73.21% N/A 33.92% January 11, 1996
Evergreen VA Blue Chip Fund........ N/A N/A N/A April 28, 2000
Evergreen VA Omega Fund............ 45.46% N/A 26.24% March 6, 1997
TABLE 3--B
Adjusted Historical Average Annual Total Returns(/1/)
(Assuming No Surrender Charge or Family Income Protector)
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5% Annually Compounding Death Benefit
or Annual Step-Up Death Benefit
(Total Mutual Fund Account Annual Expenses: 1.40%)
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<CAPTION>
Corresponding
10 Year Portfolio
Portfolio 1 Year 5 Year or Inception Inception Date
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<S> <C> <C> <C> <C>
Alliance Premier Growth Portfolio--
Class B(/2/)...................... 30.20% 33.85% 24.29% June 26, 1992
Alliance Technology Portfolio--
Class B(/3/)...................... 72.96% N/A 33.73% January 11, 1996
Evergreen VA Blue Chip Fund........ N/A N/A N/A April 28, 2000
Evergreen VA Omega Fund............ 45.25% N/A 26.05% March 6, 1997
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(/1/)The calculation of total return performance for periods prior to inception
of the subaccounts reflects deductions for the mortality and expense risk
fee and administrative charge on a monthly basis, rather than a daily
basis. The monthly deduction is made at the beginning of each month and
generally approximates the performance that would have resulted if the
subaccounts had actually been in existence since the inception of the
portfolio.
(/2/)Returns prior to July 14, 1999 for the portfolios are based on historical
returns for Class A Shares, adjusted to reflect the Class B Share
portfolio annual expenses.
(/3/)Returns prior to September 22, 1999 for the portfolios are based on
historical returns for Class A Shares, adjusted to reflect the Class B
Share portfolio annual expenses.
3
