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SENTINEL ADVANTAGE VARIABLE ANNUITY CONTRACT
ISSUED BY
NATIONAL LIFE INSURANCE COMPANY
Supplement dated October 17, 1997, to Prospectus dated June 20, 1997
Effective on or about July 14, 1997, one of the investment funds available
within the Sentinel Advantage Variable Annuity Contract, Strong Special Fund
II, was renamed Strong Opportunity Fund II.
Strong Capital Management, Inc. ("Strong") has also announced that it will
voluntarily cap the expenses of the Strong Growth Fund II, another investment
fund available within the Sentinel Advantage Variable Annuity Contract, at
1.20%, effective July 24, 1997. Strong has no current intention to, but may in
the future, discontinue or modify any waiver of fees or absorption of expenses
at its discretion with appropriate notification to its shareholders.
National Life has determined that automated Portfolio Rebalancing will not be
available on a monthly basis, as indicated in the Prospectus on page 26.
Portfolio Rebalancing is available on a quarterly, semi-annual or annual basis.
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National Life will accept initial Premium Payments less than the minimums
stated on page 13 of the Prospectus, where the Owner agrees in writing to pay
subsequent Premium Payments by electronic funds transfer which equal or exceed
the applicable minimum within 12 months of the Date of Issue. In the event
that such subsequent Premium Payments are not made, National Life reserves the
right to terminate the Contract and pay the Cash Surrender Value of the
Contract to the Owner.
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Market Street Fund, Inc. has announced that on July 25, 1997, the Board of
Directors of the Market Street Fund, Inc. (the "Fund") determined to call a
Special Meeting of Shareholders of the Common Stock Portfolio for the purpose
of asking shareholders to approve or disapprove a reorganization resulting in
the combination of the Common Stock Portfolio and the Growth Portfolio of the
Fund by transferring the assets and liabilities of the Common Stock Portfolio
to the Growth Portfolio and exchanging the shares of stock representing
interest in the Common Stock Portfolio for shares of stock representing
interest in the Growth Portfolio (the "Reorganization"). The Growth Portfolio
has been since May 1, 1997 managed by Sentinel Advisors Company, which also
manages the Common Stock Portfolio. Both Portfolios are managed by the same
portfolio management teams in essentially the same style.
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The Board of Directors has authorized the Secretary of the Fund to prepare and
mail a notice of Special Meeting, proxy statement and voting instruction form
to owners of variable life insurance policies or variable annuity contracts
issued by National Life Insurance Company who have contract value invested in
the Common Stock Portfolio as of October 10, 1997, the Record Date. Such proxy
materials will be or have been forwarded to solicit the policyholders' and
contractholders' vote on whether to approve or disapprove the proposed
Reorganization, during a Special Meeting of Shareholders of the Common Stock
Portfolio to be held on December 5, 1997, or the earliest practicable date
thereafter.
The Reorganization will become effective on December 12, 1997, should
two-thirds of shareholders vote in favor of the change.
If you would like a copy of the proxy materials, please call the Variable
Product Services Unit at 1-800-537-7003.
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