<PAGE>
RETIREMENT INCOME BUILDER
VARIABLE ANNUITY
Issued by
PFL LIFE INSURANCE COMPANY
Supplement Dated August 2, 2000
to the
Prospectus dated May 1, 2000
For New Jersey policies, the optional family income protector is as described in
this supplement and not as described in the prospectus.
Family Income Protector
The optional "family income protector" rider can be used to provide you a
certain level of income in the future by guaranteeing a minimum annuitization
value (discussed below). You may elect to purchase this benefit, which provides
a minimum amount you will have to apply to a family income protector payment
option and which guarantees a minimum level of those payments once you begin to
receive them. By electing this benefit, you can participate in the gains of the
underlying variable investment options you select while knowing that you are
guaranteed a minimum level of income in the future, regardless of the
performance of the underlying variable investment options.
You can annuitize under the family income protector (subject to the conditions
described below) at the greater of the policy value or the minimum annuitization
value (subject to any applicable adjustment).
Minimum Annuitization Value. If the family income protector is added when you
---------------------------
purchase the policy or in the first policy year, the minimum annuitization value
on the rider date (i.e., the date the rider is added to the policy) is the total
premium payments. If the family income protector is added after the first
policy year, the minimum annuitization value on the rider date is the policy
value.
After the rider date, the minimum annuitization value is:
. the minimum annuitization value on the rider date; plus
. any additional premium payments; minus
. an adjustment for any withdrawals made after the rider date;
. the result of which is accumulated at the annual growth rate; minus
. any premium taxes.
Please note that if you annuitize using the family income protector on any date
other than a rider anniversary, there may be a downward adjustment to your
minimum annuitization value. See "Minimum Annuitization Value Adjustment"
below.
The annual growth rate is 6% per year. Withdrawals may reduce the minimum
annuitization value on a basis greater than dollar-for-dollar. See the SAI for
more information. In addition to the immediate reduction in the minimum
annuitization value due to the withdrawal, the same withdrawal, if taken in the
rider year that you annuitize using the family income protector, may also result
in a negative minimum annuitization value adjustment. See "Minimum
Annuitization Value Adjustment" below.
The minimum annuitization value may only be used to annuitize using the family
income protector payment options and may not be used with any of the other
annuity payment options listed in the prospectus. The family income protector
payment options are:
. Life Income--An election may be made for "No Period Certain" or "10 Years
Certain". In the event of the death of the annuitant prior to the end of the
chosen period certain, the remaining period certain payments will be
continued to the beneficiary.
. Joint and Full Survivor--An election may be made for "No Period Certain" or
"10 Years Certain". Payments will be made as long as either the annuitant or
joint annuitant is living. In the event of the death of both the annuitant
and joint annuitant prior to the end of the chosen period certain, the
remaining period certain payments will be continued to the beneficiary.
Please note that if you annuitize using the family income protector before the
10th rider anniversary, the payments will be calculated with an annuity factor
age
<PAGE>
adjustment. See "Annuity Factor Age Adjustment" below.
Minimum Annuitization Value Adjustment. If you annuitize under the family
--------------------------------------
income protector on any date other than a rider anniversary, the minimum
annuitization value will be adjusted downward if your policy value has decreased
since the last rider anniversary (or the rider date for annuitizations within
the first rider year). The adjusted minimum annuitization value will equal:
. the policy value on the date you annuitize; plus
. the minimum annuitization value on the most recent rider anniversary (or the
rider date for annuitizations within the first rider year); minus
. the policy value on the most recent rider anniversary (or the rider date for
annuitizations within the first rider year).
The minimum annuitization value will not be adjusted if:
. you annuitize on a rider anniversary; or
. your policy value has increased since the last rider anniversary (or the
rider date for annuitizations within the first rider year).
Annuity Factor Age Adjustment. If you annuitize using the family income
-----------------------------
protector before the 10th rider anniversary, the first payment will be
calculated with an annuity factor age adjustment which subtracts up to 10 years
from your age resulting in all payments being lower than if an annuity factor
age adjustment was not used. See the SAI for information concerning the
calculation of the initial payment. The age adjustment is as follows:
<TABLE>
<CAPTION>
Number of Years Age Adjustment:
Since the Number of Years Subtracted
Rider Date from Your Age
-----------------------------------------------------
<S> <C>
0-1 10
-----------------------------------------------------
1-2 9
-----------------------------------------------------
2-3 8
-----------------------------------------------------
3-4 7
-----------------------------------------------------
4-5 6
-----------------------------------------------------
5-6 5
-----------------------------------------------------
6-7 4
-----------------------------------------------------
7-8 3
-----------------------------------------------------
8-9 2
-----------------------------------------------------
9-10 1
-----------------------------------------------------
(greater
than) 10 0
-----------------------------------------------------
</TABLE>
Please note that the minimum annuitization value is used solely to calculate the
family income protector annuity payments. The family income protector does not
establish or guarantee policy value or guarantee performance of any investment
option. Because this benefit is based on conservative actuarial factors, the
level of lifetime income that it guarantees may be less than the level that
would be provided by application of the policy value at otherwise applicable
adjusted annuity factors. Therefore, the family income protector should be
regarded as a safety net. The costs of annuitizing under the family income
protector include the guaranteed payment fee, and also the lower payout levels
inherent in the annuity tables used for those minimum payouts (which may also
include an annuity factor age adjustment). These costs should be balanced
against the benefits of a minimum payout level.
In addition to the annual growth rate, other benefits and fees under the rider
(the rider fee, the fee waiver threshold, guaranteed payment fee, and the
annuity factor age adjustment) are also guaranteed not to change after the rider
is added. However, all of these benefit specifications may change if you elect
to upgrade the minimum annuitization value.
Minimum Annuitization Value Upgrade. You can upgrade your minimum annuitization
-----------------------------------
value to the policy value at any time before your 95th birthday.
If you upgrade:
. the current rider will terminate and a new one will be issued with its own
specified guaranteed benefits and fees; and
<PAGE>
. the new rider's specified benefits and fees may not be as advantageous as
before.
It generally will not be to your advantage to upgrade unless your policy value
exceeds your minimum annuitization value at that time.
Conditions of Exercise of the Family Income Protector. You can annuitize using
-----------------------------------------------------
the family income protector at any time before your 95th birthday. For your
convenience, we will put the last date to annuitize using the family income
protector on page one of the rider.
Note Carefully:
--------------
. If you annuitize at any time other than a rider anniversary, there may be a
negative adjustment to your minimum annuitization value. See "Minimum
Annuitization Value Adjustment."
. If you annuitize before the 10th rider anniversary there will be an annuity
factor age adjustment. See "Annuity Factor Age Adjustment."
. If you take a withdrawal during the rider year that you annuitize, your
minimum annuitization value will be reduced to reflect the withdrawal and
will likely be subject to a negative minimum annuitization value adjustment.
Guaranteed Minimum Stabilized Payments. Annuity payments under the family income
--------------------------------------
protector are guaranteed to never be less than the initial payment. See the SAI
for information concerning the calculation of the initial payment. The payments
will also be "stabilized" or held constant during each rider year.
During the first rider year after annuitizing using the family income protector,
each stabilized payment will equal the initial payment. On each rider
anniversary thereafter, the stabilized payment will increase or decrease
depending on the performance of the investment options you selected (but will
never be less than the initial payment), and then be held constant at that
amount for that rider year. The stabilized payment on each rider anniversary
will equal the greater of the initial payment or the payment supportable by the
annuity units in the selected investment options. See the SAI for additional
information concerning stabilized payments.
Family Income Protector Rider Fee. A rider fee, currently 0.35% of the minimum
---------------------------------
annuitization value on the rider anniversary, is charged annually prior to
annuitization. We will also charge this fee upon termination. The rider fee is
deducted from each variable investment option in proportion to the amount of
policy value in each subaccount.
The rider fee on any given rider anniversary will be waived if the policy value
exceeds the fee waiver threshold. The fee waiver threshold currently is two
times the minimum annuitization value. PFL may, at its discretion, change the
fee waiver threshold in the future, but it will never be greater than two and
one-half times the minimum annuitization value.
Guaranteed Payment Fee. A guaranteed payment fee, currently equal to an
-----------------------
effective annual rate of 1.25% of the daily net asset value in the separate
account, is reflected in the amount of the variable payments you receive if you
annuitize under the family income protector rider.
Termination. The family income protector will terminate upon the earliest of the
------------
following:
. the date we receive written notice from you requesting termination of the
family income protector;
. annuitization (you will still get guaranteed minimum stabilized payments if
you annuitize using the minimum annuitization value under the family income
protector);
. upgrade of the minimum annuitization value (although a new rider will be
issued);
. termination of your policy; or
. 30 days after the last date to elect the benefit as shown on page 1 of the
rider.
<PAGE>
RETIREMENT INCOME BUILDER II
VARIABLE ANNUITY
Issued by
PFL LIFE INSURANCE COMPANY
Supplement Dated August 2, 2000
to the
Prospectus dated May 1, 2000
For New Jersey policies, the optional family income protector is as described in
this supplement and not as described in the prospectus.
Family Income Protector
The optional "family income protector" rider can be used to provide you a
certain level of income in the future by guaranteeing a minimum annuitization
value (discussed below). You may elect to purchase this benefit, which provides
a minimum amount you will have to apply to a family income protector payment
option and which guarantees a minimum level of those payments once you begin to
receive them. By electing this benefit, you can participate in the gains of the
underlying variable investment options you select while knowing that you are
guaranteed a minimum level of income in the future, regardless of the
performance of the underlying variable investment options.
You can annuitize under the family income protector (subject to the conditions
described below) at the greater of the policy value or the minimum annuitization
value (subject to any applicable adjustment).
Minimum Annuitization Value. If the family income protector is added when you
---------------------------
purchase the policy or in the first policy year, the minimum annuitization value
on the rider date (i.e., the date the rider is added to the policy) is the total
premium payments. If the family income protector is added after the first
policy year, the minimum annuitization value on the rider date is the policy
value.
After the rider date, the minimum annuitization value is:
. the minimum annuitization value on the rider date; plus
. any additional premium payments; minus
. an adjustment for any withdrawals made after the rider date;
. the result of which is accumulated at the annual growth rate; minus
. any premium taxes.
Please note that if you annuitize using the family income protector on any date
other than a rider anniversary, there may be a downward adjustment to your
minimum annuitization value. See "Minimum Annuitization Value Adjustment"
below.
The annual growth rate is 6% per year. Withdrawals may reduce the minimum
annuitization value on a basis greater than dollar-for-dollar. See the SAI for
more information. In addition to the immediate reduction in the minimum
annuitization value due to the withdrawal, the same withdrawal, if taken in the
rider year that you annuitize using the family income protector, may also result
in a negative minimum annuitization value adjustment. See "Minimum
Annuitization Value Adjustment" below.
The minimum annuitization value may only be used to annuitize using the family
income protector payment options and may not be used with any of the other
annuity payment options listed in the prospectus. The family income protector
payment options are:
. Life Income--An election may be made for "No Period Certain" or "10 Years
Certain". In the event of the death of the annuitant prior to the end of the
chosen period certain, the remaining period certain payments will be
continued to the beneficiary.
. Joint and Full Survivor--An election may be made for "No Period Certain" or
"10 Years Certain". Payments will be made as long as either the annuitant or
joint annuitant is living. In the event of the death of both the annuitant
and joint annuitant prior to the end of the chosen period certain, the
remaining period certain payments will be continued to the beneficiary.
Please note that if you annuitize using the family income protector before the
10th rider anniversary, the payments will be calculated with an annuity factor
age
<PAGE>
adjustment. See "Annuity Factor Age Adjustment" below.
Minimum Annuitization Value Adjustment. If you annuitize under the family
--------------------------------------
income protector on any date other than a rider anniversary, the minimum
annuitization value will be adjusted downward if your policy value has decreased
since the last rider anniversary (or the rider date for annuitizations within
the first rider year). The adjusted minimum annuitization value will equal:
. the policy value on the date you annuitize; plus
. the minimum annuitization value on the most recent rider anniversary (or the
rider date for annuitizations within the first rider year); minus
. the policy value on the most recent rider anniversary (or the rider date for
annuitizations within the first rider year).
The minimum annuitization value will not be adjusted if:
. you annuitize on a rider anniversary; or
. your policy value has increased since the last rider anniversary (or the
rider date for annuitizations within the first rider year).
Annuity Factor Age Adjustment. If you annuitize using the family income
-----------------------------
protector before the 10th rider anniversary, the first payment will be
calculated with an annuity factor age adjustment which subtracts up to 10 years
from your age resulting in all payments being lower than if an annuity factor
age adjustment was not used. See the SAI for information concerning the
calculation of the initial payment. The age adjustment is as follows:
<TABLE>
<CAPTION>
Number of Years Age Adjustment:
Since the Number of Years Subtracted
Rider Date from Your Age
-----------------------------------------------------
<S> <C>
0-1 10
-----------------------------------------------------
1-2 9
-----------------------------------------------------
2-3 8
-----------------------------------------------------
3-4 7
-----------------------------------------------------
4-5 6
-----------------------------------------------------
5-6 5
-----------------------------------------------------
6-7 4
-----------------------------------------------------
7-8 3
-----------------------------------------------------
8-9 2
-----------------------------------------------------
9-10 1
-----------------------------------------------------
(greater
than) 10 0
-----------------------------------------------------
</TABLE>
Please note that the minimum annuitization value is used solely to calculate the
family income protector annuity payments. The family income protector does not
establish or guarantee policy value or guarantee performance of any investment
option. Because this benefit is based on conservative actuarial factors, the
level of lifetime income that it guarantees may be less than the level that
would be provided by application of the policy value at otherwise applicable
adjusted annuity factors. Therefore, the family income protector should be
regarded as a safety net. The costs of annuitizing under the family income
protector include the guaranteed payment fee, and also the lower payout levels
inherent in the annuity tables used for those minimum payouts (which may also
include an annuity factor age adjustment). These costs should be balanced
against the benefits of a minimum payout level.
In addition to the annual growth rate, other benefits and fees under the rider
(the rider fee, the fee waiver threshold, guaranteed payment fee, and the
annuity factor age adjustment) are also guaranteed not to change after the rider
is added. However, all of these benefit specifications may change if you elect
to upgrade the minimum annuitization value.
Minimum Annuitization Value Upgrade. You can upgrade your minimum annuitization
-----------------------------------
value to the policy value at any time before your 95th birthday.
If you upgrade:
. the current rider will terminate and a new one will be issued with its own
specified guaranteed benefits and fees; and
<PAGE>
. the new rider's specified benefits and fees may not be as advantageous as
before.
It generally will not be to your advantage to upgrade unless your policy value
exceeds your minimum annuitization value at that time.
Conditions of Exercise of the Family Income Protector. You can annuitize using
-----------------------------------------------------
the family income protector at any time before your 95th birthday. For your
convenience, we will put the last date to annuitize using the family income
protector on page one of the rider.
Note Carefully:
--------------
. If you annuitize at any time other than a rider anniversary, there may be a
negative adjustment to your minimum annuitization value. See "Minimum
Annuitization Value Adjustment."
. If you annuitize before the 10th rider anniversary there will be an annuity
factor age adjustment. See "Annuity Factor Age Adjustment."
. If you take a withdrawal during the rider year that you annuitize, your
minimum annuitization value will be reduced to reflect the withdrawal and
will likely be subject to a negative minimum annuitization value adjustment.
Guaranteed Minimum Stabilized Payments. Annuity payments under the family income
--------------------------------------
protector are guaranteed to never be less than the initial payment. See the SAI
for information concerning the calculation of the initial payment. The payments
will also be "stabilized" or held constant during each rider year.
During the first rider year after annuitizing using the family income protector,
each stabilized payment will equal the initial payment. On each rider
anniversary thereafter, the stabilized payment will increase or decrease
depending on the performance of the investment options you selected (but will
never be less than the initial payment), and then be held constant at that
amount for that rider year. The stabilized payment on each rider anniversary
will equal the greater of the initial payment or the payment supportable by the
annuity units in the selected investment options. See the SAI for additional
information concerning stabilized payments.
Family Income Protector Rider Fee. A rider fee, currently 0.35% of the minimum
---------------------------------
annuitization value on the rider anniversary, is charged annually prior to
annuitization. We will also charge this fee upon termination. The rider fee is
deducted from each variable investment option in proportion to the amount of
policy value in each subaccount.
The rider fee on any given rider anniversary will be waived if the policy value
exceeds the fee waiver threshold. The fee waiver threshold currently is two
times the minimum annuitization value. PFL may, at its discretion, change the
fee waiver threshold in the future, but it will never be greater than two and
one-half times the minimum annuitization value.
Guaranteed Payment Fee. A guaranteed payment fee, currently equal to an
-----------------------
effective annual rate of 1.25% of the daily net asset value in the separate
account, is reflected in the amount of the variable payments you receive if you
annuitize under the family income protector rider.
Termination. The family income protector will terminate upon the earliest of the
------------
following:
. the date we receive written notice from you requesting termination of the
family income protector;
. annuitization (you will still get guaranteed minimum stabilized payments if
you annuitize using the minimum annuitization value under the family income
protector);
. upgrade of the minimum annuitization value (although a new rider will be
issued);
. termination of your policy; or
. 30 days after the last date to elect the benefit as shown on page 1 of the
rider.
<PAGE>
PORTFOLIO SELECT VARIABLE ANNUITYSM
Issued by
PFL LIFE INSURANCE COMPANY
Supplement Dated August 2, 2000
to the
Prospectus dated May 1, 2000
For New Jersey policies, the optional family income protector is as described in
this supplement and not as described in the prospectus.
Family Income Protector
The optional "family income protector" rider can be used to provide you a
certain level of income in the future by guaranteeing a minimum annuitization
value (discussed below). You may elect to purchase this benefit, which provides
a minimum amount you will have to apply to a family income protector payment
option and which guarantees a minimum level of those payments once you begin to
receive them. By electing this benefit, you can participate in the gains of the
underlying variable investment options you select while knowing that you are
guaranteed a minimum level of income in the future, regardless of the
performance of the underlying variable investment options.
You can annuitize under the family income protector (subject to the conditions
described below) at the greater of the policy value or the minimum annuitization
value (subject to any applicable adjustment).
Minimum Annuitization Value. If the family income protector is added when you
---------------------------
purchase the policy or in the first policy year, the minimum annuitization value
on the rider date (i.e., the date the rider is added to the policy) is the total
premium payments. If the family income protector is added after the first
policy year, the minimum annuitization value on the rider date is the policy
value.
After the rider date, the minimum annuitization value is:
. the minimum annuitization value on the rider date; plus
. any additional premium payments; minus
. an adjustment for any withdrawals made after the rider date;
. the result of which is accumulated at the annual growth rate; minus
. any premium taxes.
Please note that if you annuitize using the family income protector on any date
other than a rider anniversary, there may be a downward adjustment to your
minimum annuitization value. See "Minimum Annuitization Value Adjustment"
below.
The annual growth rate is 6% per year. Withdrawals may reduce the minimum
annuitization value on a basis greater than dollar-for-dollar. See the SAI for
more information. In addition to the immediate reduction in the minimum
annuitization value due to the withdrawal, the same withdrawal, if taken in the
rider year that you annuitize using the family income protector, may also result
in a negative minimum annuitization value adjustment. See "Minimum
Annuitization Value Adjustment" below.
The minimum annuitization value may only be used to annuitize using the family
income protector payment options and may not be used with any of the other
annuity payment options listed in the prospectus. The family income protector
payment options are:
. Life Income--An election may be made for "No Period Certain" or "10 Years
Certain". In the event of the death of the annuitant prior to the end of the
chosen period certain, the remaining period certain payments will be
continued to the beneficiary.
. Joint and Full Survivor--An election may be made for "No Period Certain" or
"10 Years Certain". Payments will be made as long as either the annuitant or
joint annuitant is living. In the event of the death of both the annuitant
and joint annuitant prior to the end of the chosen period certain, the
remaining period certain payments will be continued to the beneficiary.
Please note that if you annuitize using the family income protector before the
10th rider anniversary, the payments will be calculated with an annuity factor
age adjustment. See "Annuity Factor Age Adjustment" below.
<PAGE>
Minimum Annuitization Value Adjustment. If you annuitize under the family
--------------------------------------
income protector on any date other than a rider anniversary, the minimum
annuitization value will be adjusted downward if your policy value has decreased
since the last rider anniversary (or the rider date for annuitizations within
the first rider year). The adjusted minimum annuitization value will equal:
. the policy value on the date you annuitize; plus
. the minimum annuitization value on the most recent rider anniversary (or the
rider date for annuitizations within the first rider year); minus
. the policy value on the most recent rider anniversary (or the rider date for
annuitizations within the first rider year).
The minimum annuitization value will not be adjusted if:
. you annuitize on a rider anniversary; or
. your policy value has increased since the last rider anniversary (or the
rider date for annuitizations within the first rider year).
Annuity Factor Age Adjustment. If you annuitize using the family income
-----------------------------
protector before the 10th rider anniversary, the first payment will be
calculated with an annuity factor age adjustment which subtracts up to 10 years
from your age resulting in all payments being lower than if an annuity factor
age adjustment was not used. See the SAI for information concerning the
calculation of the initial payment. The age adjustment is as follows:
<TABLE>
<CAPTION>
Number of Years Age Adjustment:
Since the Number of Years Subtracted
Rider Date from Your Age
-----------------------------------------------------
<S> <C>
0-1 10
-----------------------------------------------------
1-2 9
-----------------------------------------------------
2-3 8
-----------------------------------------------------
3-4 7
-----------------------------------------------------
4-5 6
-----------------------------------------------------
5-6 5
-----------------------------------------------------
6-7 4
-----------------------------------------------------
7-8 3
-----------------------------------------------------
8-9 2
-----------------------------------------------------
9-10 1
-----------------------------------------------------
(greater
than) 10 0
-----------------------------------------------------
</TABLE>
Please note that the minimum annuitization value is used solely to calculate the
family income protector annuity payments. The family income protector does not
establish or guarantee policy value or guarantee performance of any investment
option. Because this benefit is based on conservative actuarial factors, the
level of lifetime income that it guarantees may be less than the level that
would be provided by application of the policy value at otherwise applicable
adjusted annuity factors. Therefore, the family income protector should be
regarded as a safety net. The costs of annuitizing under the family income
protector include the guaranteed payment fee, and also the lower payout levels
inherent in the annuity tables used for those minimum payouts (which may also
include an annuity factor age adjustment). These costs should be balanced
against the benefits of a minimum payout level.
In addition to the annual growth rate, other benefits and fees under the rider
(the rider fee, the fee waiver threshold, guaranteed payment fee, and the
annuity factor age adjustment) are also guaranteed not to change after the rider
is added. However, all of these benefit specifications may change if you elect
to upgrade the minimum annuitization value.
Minimum Annuitization Value Upgrade. You can upgrade your minimum annuitization
-----------------------------------
value to the policy value at any time before your 95th birthday.
If you upgrade:
. the current rider will terminate and a new one will be issued with its own
specified guaranteed benefits and fees; and
. the new rider's specified benefits and fees may not be as advantageous as
before.
It generally will not be to your advantage to upgrade unless your policy value
exceeds your minimum annuitization value at that time.
Conditions of Exercise of the Family Income Protector. You can annuitize using
-----------------------------------------------------
the family income protector at any time before your 95th birthday. For your
convenience, we will put the last date to annuitize using the family income
protector on page one of the rider.
<PAGE>
Note Carefully:
--------------
. If you annuitize at any time other than a rider anniversary, there may be a
negative adjustment to your minimum annuitization value. See "Minimum
Annuitization Value Adjustment."
. If you annuitize before the 10th rider anniversary there will be an annuity
factor age adjustment. See "Annuity Factor Age Adjustment."
. If you take a withdrawal during the rider year that you annuitize, your
minimum annuitization value will be reduced to reflect the withdrawal and
will likely be subject to a negative minimum annuitization value adjustment.
Guaranteed Minimum Stabilized Payments. Annuity payments under the family income
--------------------------------------
protector are guaranteed to never be less than the initial payment. See the SAI
for information concerning the calculation of the initial payment. The payments
will also be "stabilized" or held constant during each rider year.
During the first rider year after annuitizing using the family income protector,
each stabilized payment will equal the initial payment. On each rider
anniversary thereafter, the stabilized payment will increase or decrease
depending on the performance of the investment options you selected (but will
never be less than the initial payment), and then be held constant at that
amount for that rider year. The stabilized payment on each rider anniversary
will equal the greater of the initial payment or the payment supportable by the
annuity units in the selected investment options. See the SAI for additional
information concerning stabilized payments.
Family Income Protector Rider Fee. A rider fee, currently 0.35% of the minimum
---------------------------------
annuitization value on the rider anniversary, is charged annually prior to
annuitization. We will also charge this fee upon termination. The rider fee is
deducted from each variable investment option in proportion to the amount of
policy value in each subaccount.
The rider fee on any given rider anniversary will be waived if the policy value
exceeds the fee waiver threshold. The fee waiver threshold currently is two
times the minimum annuitization value. PFL may, at its discretion, change the
fee waiver threshold in the future, but it will never be greater than two and
one-half times the minimum annuitization value.
Guaranteed Payment Fee. A guaranteed payment fee, currently equal to an
-----------------------
effective annual rate of 1.25% of the daily net asset value in the separate
account, is reflected in the amount of the variable payments you receive if you
annuitize under the family income protector rider.
Termination. The family income protector will terminate upon the earliest of the
------------
following:
. the date we receive written notice from you requesting termination of the
family income protector;
. annuitization (you will still get guaranteed minimum stabilized payments if
you annuitize using the minimum annuitization value under the family income
protector);
. upgrade of the minimum annuitization value (although a new rider will be
issued);
. termination of your policy; or
. 30 days after the last date to elect the benefit as shown on page 1 of the
rider.
