<PAGE>
SUPPLEMENT TO NEW YORK SPINNAKER PROSPECTUS
SUPPLEMENT DATED MAY 1, 1998
TO PROSPECTUS DATED JUNE 16, 1997
THE DISCLOSURE SET FORTH BELOW REPLACES THE INFORMATION UNDER THE HEADING
"EXPENSE TABLE" FOUND ON PAGES 8 THROUGH 13 OF THE NEW YORK SPINNAKER
PROSPECTUS.
FIRST SAFECO SEPARATE ACCOUNT S
The non-SAFECO Fund information in this Expense Table set forth below with
respect to the Portfolios was provided to the Separate Account by the Portfolios
and such information was not independently verified by the Separate Account.
CONTRACT OWNER TRANSACTION EXPENSES:
DEFERRED SALES LOAD: Contingent Deferred Sales Charge (as a percentage of
amount withdrawn)*: This charge applies to Withdrawals in any Contract Year
which exceed 10% of the Owner's Contract Value:
<TABLE>
<S> <C>
Contract Year 1.................................. 8% of amount withdrawn
Contract Year 2.................................. 7% of amount withdrawn
Contract Year 3.................................. 6% of amount withdrawn
Contract Year 4.................................. 5% of amount withdrawn
Contract Year 5.................................. 4% of amount withdrawn
Contract Year 6.................................. 3% of amount withdrawn
Contract Year 7.................................. 2% of amount withdrawn
Contract Year 8.................................. 1% of amount withdrawn
After Contract Year 8............................ 0% of amount withdrawn
</TABLE>
* While the Contingent Deferred Sales Charge assesses a percentage of the
amount withdrawn according to the stated schedule, total Contingent Deferred
Sales Charges collected by First SAFECO will not exceed 8.5% of the Purchase
Payments made under the Contract.
WITHDRAWAL CHARGE: Equal to the lesser of $25 or 2% of the amount withdrawn
for each Withdrawal after the first in any Contract Year. Not deducted where the
Owner is exercising a Settlement Option.
TRANSFER CHARGE: First 12 Transfers in a Contract Year are free.
Thereafter, First SAFECO reserves the right to assess a Transfer Charge which
will be equal to the lesser of $10 or 2% of the amount transferred. The charge
is not imposed under the Programs, subject to certain requirements.
ANNUAL ADMINISTRATION CHARGE
$30 per Contract per Contract Year.* Waived if Contract Value is $50,000 or
more.
SEPARATE ACCOUNT ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE ACCOUNT VALUE)
<TABLE>
<S> <C>
Mortality and Expense Risk Fees............................. 1.25%
Asset Related Administration Charge......................... 0.15%
----
Total Separate Account Annual Expenses.................. 1.40%
----
----
</TABLE>
<PAGE>
SAFECO RESOURCE SERIES TRUST ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees
SAFECO Resource Equity Portfolio.......................... .73%
SAFECO Resource Growth Portfolio.......................... .74%
SAFECO Resource Northwest Portfolio....................... .73%
SAFECO Resource Bond Portfolio............................ .74%
SAFECO Resource Money Market Portfolio.................... .64%
SAFECO Resource Small Company Stock Portfolio............. .85%
Other Expenses
SAFECO Resource Equity Portfolio.......................... .02%
SAFECO Resource Growth Portfolio.......................... .03%
SAFECO Resource Northwest Portfolio**..................... .00%
SAFECO Resource Bond Portfolio**.......................... .00%
SAFECO Resource Money Market Portfolio**.................. .00%
SAFECO Resource Small Company Stock Portfolio**........... .10%
Total Trust Annual Expenses (After Reimbursement, if
applicable)
SAFECO Resource Equity Portfolio.......................... .75%
SAFECO Resource Growth Portfolio.......................... .77%
SAFECO Resource Northwest Portfolio....................... .73%
SAFECO Resource Bond Portfolio............................ .74%
SAFECO Resource Money Market Portfolio.................... .64%
SAFECO Resource Small Company Stock Portfolio............. .95%
</TABLE>
FEDERATED INSURANCE SERIES ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees
Federated High Income Bond Portfolio...................... .51%
Federated International Equity Portfolio.................. .02%
Federated Utility Portfolio............................... .48%
Other Expenses***
Federated High Income Bond Portfolio...................... .29%
Federated International Equity Portfolio.................. 1.21%
Federated Utility Portfolio............................... .37%
Total Fund Annual Expenses*** (After Reimbursement, if
applicable)
Federated High Income Bond Portfolio...................... .80%
Federated International Equity Portfolio.................. 1.23%
Federated Utility Portfolio............................... .85%
</TABLE>
LEXINGTON EMERGING MARKETS FUND, INC. ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. .85%
Other Expenses****.......................................... .99%
----
Total Fund Annual Expenses**** (After Reimbursement, if
applicable)........................................... 1.84%
----
----
</TABLE>
<PAGE>
LEXINGTON NATURAL RESOURCES TRUST ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. 1.00%
Other Expenses*****......................................... .25%
----
Total Fund Annual Expenses***** (After Reimbursement, if
applicable)........................................... 1.25%
----
----
</TABLE>
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. ANNUAL EXPENSES:
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees
American Century VP Balanced Portfolio.................... 1.00%
American Century VP International Portfolio............... 1.50%
Other Expenses
American Century VP Balanced Portfolio.................... 0.00%
American Century VP International Portfolio............... 0.00%
Total Fund Annual Expenses (After Reimbursement, if
applicable)
American Century VP Balanced Portfolio.................... 1.00%
American Century VP International Portfolio............... 1.50%
</TABLE>
* For purposes of the Examples, the Annual Administration Maintenance Charge
is calculated as a ratio of total Annual Administration Maintenance Charges
collected during the year to the total average net assets of all
Sub-Accounts. The Annual Administration Maintenance Charge percentage will
change each year because of changes in total Annual Administration
Maintenance Charges collected during the year and the total average net
assets of all Sub-Accounts. This will result in variations in the Expense
Table each year.
** SAFECO pays all Other Expenses of the Northwest, Bond and Money Market
Portfolios until the Portfolio's assets reach $20 million. Once a
Portfolio's assets exceed $20 million, the Other Expenses of the Portfolio
will be paid by such Portfolio. Because the assets of the Northwest
Portfolio exceeded $20 million in February 1998, SAFECO does not expect to
reimburse the Other Expenses of the Portfolio going forward.
During the year ended December 31, 1997 SAFECO paid for or reimbursed all of
the Other Expenses of the Northwest, Bond and Money Market Portfolios. Expenses
before such reimbursement as a percentage of net assets were as follows:
<TABLE>
<S> <C>
SAFECO Resource Northwest Portfolio......................... .94%
SAFECO Resource Bond Portfolio.............................. .90%
SAFECO Resource Money Market Portfolio...................... .81%
</TABLE>
The amounts shown for the Small Company Portfolio are estimated expenses
based on the maximum management fee and estimated Other Expenses for fiscal year
1998. During the year ended December 31, 1997, SAFECO Asset Management Company
(SAM) paid all Other Expenses of the Small Company Portfolio in excess of .10%
of the Portfolio's average annual net assets. Expenses before such reimbursement
as a percentage of net assets were 1.24%. SAM will continue to pay all Other
Expenses of the Small Company Portfolio in excess of .10% of the Portfolio's
average annual net assets until such time as the Portfolio's net assets exceed
$20 million. Once the Portfolio's net assets exceed $20 million, all of the
Other Expenses will be paid by the Portfolio.
*** First SAFECO has entered into a Participation Agreement with the Federated
Insurance Series in connection with the Separate Account's investment in
the shares of the Federated Insurance Series. Other Participating
Insurance Companies have entered into similar Participation Agreements
with the Federated Insurance Series. For the one year ended December 31,
1997, the adviser voluntarily waived or reimbursed expenses, as follows:
Federated High Income Bond Fund II $854,860, absent
<PAGE>
reimbursement $949,935; Federated Utility Fund II $660,284, absent
reimbursement $869,168; Federated International Equity Fund II $343,570,
absent reimbursement $616,886.
**** First SAFECO has entered into a Participation Agreement with the Lexington
Emerging Markets Fund in connection with the Separate Account's investment
in the shares of the Lexington Emerging Markets Fund. Other Participating
Insurance Companies have entered into similar Participation Agreements
with the Lexington Emerging Markets Fund. For the period May 1, 1996
through April 30, 1997, the adviser voluntarily limited management and
operating expenses to a maximum of 1.75%. Beginning May 1, 1997, the
adviser will no longer reimburse the Fund to the extent that management
and operating expenses exceed 1.75%. For the one year ended December 31,
1997, the adviser voluntarily waived or reimbursed expenses, as follows:
Lexington Emerging Markets Fund $21,212, absent reimbursement $536,502.
***** First SAFECO has entered into a Participation Agreement with the Lexington
Natural Resources Trust in connection with the Separate Account's
investment in the shares of the Lexington Natural Resources Trust. Other
Participating Insurance Companies have entered into similar Participation
Agreements with the Lexington Natural Resources Trust.
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE EQUITY SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 97 $128 $161 $257
Assuming annuitization at end of period.................................. $ 23 $ 70 $120 $257
Assuming no withdrawal................................................... $ 23 $ 70 $120 $257
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE GROWTH SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 97 $129 $162 $259
Assuming annuitization at end of period.................................. $ 23 $ 70 $121 $259
Assuming no withdrawal................................................... $ 23 $ 70 $121 $259
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE MONEY MARKET SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 96 $125 $156 $246
Assuming annuitization at end of period.................................. $ 22 $ 67 $114 $246
Assuming no withdrawal................................................... $ 22 $ 67 $114 $246
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE NORTHWEST SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 96 $128 $160 $255
Assuming annuitization at end of period.................................. $ 22 $ 69 $119 $255
Assuming no withdrawal................................................... $ 22 $ 69 $119 $255
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE BOND SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 97 $128 $161 $256
Assuming annuitization at end of period.................................. $ 23 $ 70 $119 $256
Assuming no withdrawal................................................... $ 23 $ 70 $119 $256
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR SAFECO RESOURCE SMALL COMPANY STOCK SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 99 $134 $171 $277
Assuming annuitization at end of period.................................. $ 25 $ 76 $130 $277
Assuming no withdrawal................................................... $ 25 $ 76 $130 $277
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXAMPLES FOR FEDERATED HIGH INCOME BOND SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 97 $130 $163 $262
Assuming annuitization at end of period.................................. $ 23 $ 71 $122 $262
Assuming no withdrawal................................................... $ 23 $ 71 $122 $262
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR FEDERATED INTERNATIONAL EQUITY SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $101 $142 $184 $305
Assuming annuitization at end of period.................................. $ 27 $ 84 $144 $305
Assuming no withdrawal................................................... $ 27 $ 84 $144 $305
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR FEDERATED UTILITY SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 98 $131 $166 $267
Assuming annuitization at end of period.................................. $ 24 $ 73 $125 $267
Assuming no withdrawal................................................... $ 24 $ 73 $125 $267
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR LEXINGTON EMERGING MARKETS SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $107 $159 $212 $362
Assuming annuitization at end of period.................................. $ 34 $102 $173 $362
Assuming no withdrawal................................................... $ 34 $102 $173 $362
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR LEXINGTON NATURAL RESOURCES SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $101 $143 $185 $307
Assuming annuitization at end of period.................................. $ 28 $ 85 $145 $307
Assuming no withdrawal................................................... $ 28 $ 85 $145 $307
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR AMERICAN CENTURY VP BALANCED SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $ 99 $136 $173 $282
Assuming annuitization at end of period.................................. $ 25 $ 77 $132 $282
Assuming no withdrawal................................................... $ 25 $ 77 $132 $282
</TABLE>
<TABLE>
<CAPTION>
EXAMPLES FOR AMERICAN CENTURY VP INTERNATIONAL SUB-ACCOUNT YEAR 1 YEAR 3 YEAR 5 YEAR 10
- --------------------------------------------------------------------------- ------ ------ ------ -------
<S> <C> <C> <C> <C>
Assuming a 5% return on assets, you would pay the following expenses on a
$1,000 investment:
Assuming withdrawal at end of period..................................... $104 $150 $197 $330
Assuming annuitization at end of period.................................. $ 30 $ 92 $157 $330
Assuming no withdrawal................................................... $ 30 $ 92 $157 $330
</TABLE>
The information in the "Examples" is estimated and provided to assist the
potential Owner in understanding the various costs and expenses charged to an
Owner's Contract Value either directly or indirectly and reflects expenses of
the Separate Account, the Trust and Funds. The Examples do not reflect premium
taxes which may be applicable. Contingent Deferred Sales Charges may be waived
in certain circumstances. For additional information see "Charges and
Deductions".
THE INFORMATION ABOVE IS NOT INTENDED TO BE REPRESENTATIVE OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
<PAGE>
Like other insurance, mutual fund, financial and business organizations and
individuals around the world, First SAFECO and the Separate Account could be
adversely affected if the computer systems used by First SAFECO, its principal
underwriter, underlying mutual fund managers and investment advisors or other
companies that provide services to the Separate Account do not properly process
and calculate date related information from and after January 1, 2000. This is
commonly called the "Year 2000 problem." First SAFECO is taking steps it
believes are reasonably designed to address the Year 2000 problem with respect
to the computer systems that each of them uses and to obtain satisfactory
assurances that comparable steps are being taken by each of First SAFECO's
other, major service providers. It is not anticipated that the Separate Account
will incur any charges or that there will be any difficulties in accurate and
timely reporting resulting from the change in year from 1999 to 2000.
