<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED DECEMBER 14, 2000 TO PROSPECTUS DATED SEPTEMBER 20, 2000 AS
AMENDED BY SUPPLEMENTS DATED AUGUST 21, 2000, SEPTEMBER 20, 2000 AND
DECEMBER 14, 2000
The information in this supplement updates and amends certain information
contained in the prospectus dated September 20, 2000 and replaces
Supplement X.56297-00 dated September 20, 2000. You should read this supplement
along with the prospectus.
- The following footnote updates and replaces the footnote to Example A in the
"Hypothetical Example: If You Elect the Premium Bonus Option" for contracts
issued outside of the State of New York on page 13 of the prospectus:
* This example reflects deduction of an early withdrawal charge using the
early withdrawal charge schedule that applies to all contracts,
including Roth IRA contracts issued after September 19, 2000. This
example does not reflect the amount of any premium bonus forfeited
because of an early withdrawal during the first seven account years.
- The following footnote is added to Example A in the "Hypothetical Example: If
You Elect the Premium Bonus Option" for contracts issued in the State of New
York on page 15 of the prospectus:
** This example does not reflect the amount of any premium bonus forfeited
because of an early withdrawal during the first seven account years.
- The following information updates and replaces the subsection on
"Suitability" found on page 19 of the prospectus:
SUITABILITY. If you expect to make purchase payments to your account after
the first account year, the premium bonus option may not be right for you.
Your account will not be credited with a premium bonus for purchase payments
made after the first account year yet we will assess the premium bonus
option charge against your account value which is increased by these
additional purchase payments. Consequently, the amount of the premium bonus
option charge you would pay over time may be more than the amount of the
premium bonus we credited to your account. Also, if you anticipate that you
will need to make withdrawals from your account during the first seven
account years, you may not want to elect the premium bonus option. When you
make such a withdrawal you may forfeit part of your premium bonus, and the
amount of the premium bonus option charge you have paid may be more than the
amount of the premium bonus not forfeited. Likewise, if you make a
withdrawal during the first seven account years and the market is down, the
amount of the bonus forfeited may be greater than the then current market
value of the premium bonus. Your sales representative can help you decide if
the premium bonus option is right for you.
- The following information updates and replaces the "Systematic Distribution
Option Availability" paragraph on page 34 of the prospectus.
SYSTEMATIC DISTRIBUTION OPTION AVAILABILITY. Withdrawals under a systematic
distribution option are limited to your free withdrawal amount. See
"Fees--Early Withdrawal Charge--Free Withdrawals." If allowed by applicable
law, we may discontinue the availability of one or more of the systematic
distribution options for new elections at any time and/or to change the
terms of future elections.
- The following information updates and replaces the "Death Benefit" Section in
Appendix I--ALIAC Guaranteed Account:
DEATH BENEFIT. When a death benefit is paid under the contract within six
months of the date of death, only a positive aggregate MVA amount, if any,
is applied to the account value attributable to amounts withdrawn from the
Guaranteed Account. This provision does not apply upon the death of a
spousal beneficiary or joint contract holder who continued the account after
the first death. If a death benefit is paid more than six months from the
date of death, a positive or negative aggregate MVA amount, as applicable,
will be applied, except under certain contracts issued in the State of New
York.
X.56297-00A December 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED DECEMBER 14, 2000 TO PROSPECTUS DATED SEPTEMBER 20, 2000 AS
AMENDED BY SUPPLEMENTS DATED AUGUST 21, 2000, SEPTEMBER 20, 2000 AND
DECEMBER 14, 2000
The information in this supplement updates and amends certain information
contained in the prospectus dated September 20, 2000 and replaces
Supplement X.56297-00 dated September 20, 2000. You should read this supplement
along with the prospectus.
- The following footnote updates and replaces the footnote to Example A in the
"Hypothetical Example: If You Elect the Premium Bonus Option" for contracts
issued outside of the State of New York on page 13 of the prospectus:
* This example reflects deduction of an early withdrawal charge using the
early withdrawal charge schedule that applies to all contracts,
including Roth IRA contracts issued after September 19, 2000. This
example does not reflect the amount of any premium bonus forfeited
because of an early withdrawal during the first seven account years.
- The following footnote is added to Example A in the "Hypothetical Example: If
You Elect the Premium Bonus Option" for contracts issued in the State of New
York on page 15 of the prospectus:
** This example does not reflect the amount of any premium bonus forfeited
because of an early withdrawal during the first seven account years.
- The following information updates and replaces the subsection on
"Suitability" found on page 19 of the prospectus:
SUITABILITY. If you expect to make purchase payments to your account after
the first account year, the premium bonus option may not be right for you.
Your account will not be credited with a premium bonus for purchase payments
made after the first account year yet we will assess the premium bonus
option charge against your account value which is increased by these
additional purchase payments. Consequently, the amount of the premium bonus
option charge you would pay over time may be more than the amount of the
premium bonus we credited to your account. Also, if you anticipate that you
will need to make withdrawals from your account during the first seven
account years, you may not want to elect the premium bonus option. When you
make such a withdrawal you may forfeit part of your premium bonus, and the
amount of the premium bonus option charge you have paid may be more than the
amount of the premium bonus not forfeited. Likewise, if you make a
withdrawal during the first seven account years and the market is down, the
amount of the bonus forfeited may be greater than the then current market
value of the premium bonus. Your sales representative can help you decide if
the premium bonus option is right for you.
- The following information updates and replaces the "Systematic Distribution
Option Availability" paragraph on page 34 of the prospectus.
SYSTEMATIC DISTRIBUTION OPTION AVAILABILITY. Withdrawals under a systematic
distribution option are limited to your free withdrawal amount. See
"Fees--Early Withdrawal Charge--Free Withdrawals." If allowed by applicable
law, we may discontinue the availability of one or more of the systematic
distribution options for new elections at any time and/or to change the
terms of future elections already added to Edgar.
- The following information updates and replaces the "Death Benefit" Section in
Appendix I--ALIAC Guaranteed Account:
DEATH BENEFIT. When a death benefit is paid under the contract within six
months of the date of death, only a positive aggregate MVA amount, if any,
is applied to the account value attributable to amounts withdrawn from the
Guaranteed Account. This provision does not apply upon the death of a
spousal beneficiary or joint contract holder who continued the account after
the first death. If a death benefit is paid more than six months from the
date of death, a positive or negative aggregate MVA amount, as applicable,
will be applied, except under certain contracts issued in the State of New
York.
X.AVAMH-00 December 2000
<PAGE>
- The following information replaces the descriptions of the Mitchell Hutchins
Series Trust Growth and Income, Small Cap and Tactical Allocation Portfolios
in Appendix III--Description of Underlying Funds:
MITCHELL HUTCHINS SERIES TRUST GROWTH AND INCOME PORTFOLIO (CLASS I SHARES)
INVESTMENT OBJECTIVE
Has an investment objective of current income and capital growth.
POLICIES
Invests in a combination of securities to obtain both growth and income. To
obtain growth, the fund invests in stocks that its subadviser believes have
substantial potential for capital growth. To obtain current income, the fund
invests in dividend paying stocks and, to a lesser extent, convertible bonds
and money market instruments.
Invests generally in large capitalization companies. Some of the fund's
investments may be in U.S. dollar denominated securities of foreign issuers.
The fund may (but is not required to) use derivatives as part of its
investment strategy or to help manage portfolio risks.
In deciding which equity securities to buy and sell for the fund, the
subadviser will generally consider, among other things, a company's strength
in fundamentals, its potential for earnings growth over time, and the
current price of its securities relative to their perceived worth. In
deciding which fixed income securities to buy and sell for the fund, the
subadviser will generally consider, among other things, the strength of
certain sectors of the fixed income market relative to others, interest
rates and other general market conditions, as well as the credit quality and
financial condition of individual issuers and, where applicable, the
protection afforded by the terms of the particular obligations.
PRINCIPAL RISKS
An investment in the fund is not guaranteed; you may lose money by investing
in the fund. The principal risks presented by the fund are:
- EQUITY RISK--Stocks and other equity securities generally fluctuate in
value more than bonds. The fund could lose all of its investment in a
company's stock.
- FOREIGN INVESTING RISK--The value of the fund's investments in foreign
securities may fall due to adverse political, social and economic
development abroad.
- DERIVATIVES RISK--The fund's investments in derivatives may rise or fall
more rapidly than other investments.
INVESTMENT ADVISER: Mitchell Hutchins Asset Management Inc.
SUBADVISER: Alliance Capital Management L.P.
MITCHELL HUTCHINS SERIES TRUST SMALL CAP PORTFOLIO (CLASS I SHARES)
EFFECTIVE SEPTEMBER 15, 2000 THIS FUND IS CLOSED TO NEW INVESTORS AND TO NEW
INVESTMENTS FROM EXISTING INVESTORS.
INVESTMENT OBJECTIVE
Has an investment objective of long-term capital appreciation.
POLICIES
Invests primarily in stocks of small capitalization ("small cap") companies
that the subadviser believes have substantial potential for capital growth.
The fund considers companies that have market capitalizations of up to
$1.5 billion to be small cap.
May invest, to a lesser extent, in stocks of larger companies and in bonds
and money market instruments. Some of the fund's investments may be in U.S.
dollar denominated securities of foreign issuers. The fund may (but is not
required to) use options, futures contracts and other derivatives as part of
its investment strategy or to help manage portfolio risks. In deciding which
securities to buy and sell for the fund, the subadviser generally considers
the relevant economic and political outlook, the values of the specific
securities relative to other investments, trends in the determinants of
corporate profits, and management capability and practices.
<PAGE>
PRINCIPAL RISKS
An investment in the fund is not guaranteed; you may lose money by investing
in the fund. The principal risks presented by the fund are:
- EQUITY RISK--Stocks and other equity securities generally fluctuate in
value more than bonds. The fund could lose all of its investment in a
company's stock.
- LIMITED CAPITALIZATION RISK--Equity risk is greater for the common stocks
of small cap companies because they generally are more vulnerable than
large or mid cap companies to adverse business or economic developments
and they may have more limited resources.
- FOREIGN INVESTING RISK--The value of the fund's investments in foreign
securities may fall due to adverse political, social and economic
development abroad.
- DERIVATIVES RISK--The fund's investments in derivatives may rise or fall
more rapidly than other investments.
INVESTMENT ADVISER: Mitchell Hutchins Asset Management Inc.
SUBADVISER: Alliance Capital Management L.P.
MITCHELL HUTCHINS SERIES TRUST TACTICAL ALLOCATION PORTFOLIO (CLASS I SHARES)
INVESTMENT OBJECTIVE
Has an investment objective of total return, consisting of long-term capital
appreciation and current income.
POLICIES
Allocates its assets between a stock portion that is designed to track the
performance of the S&P 500 Composite Stock Index and a fixed income portion
that consists of either five-year U.S. Treasury notes or U.S. Treasury bills
with remaining maturities of 30 days.
The investment adviser reallocates assets in accordance with the
recommendations of its own Tactical Allocation Model on the first business
day of each month. The Model attempts to track the performance of the
S&P 500 Index in periods of strong market performance. The Model attempts to
take a more defensive posture by reallocating assets to bonds or cash when
the Model signals a potential bear market, prolonged downturn in stock
prices or significant loss in value. The Model can recommend stock
allocations of 100%, 75%, 50%, 25% or 0%.
If the Model recommends a stock allocation of less than 100%, it also
recommends a fixed income allocation for the remainder of the fund's assets.
The Model uses a bond risk premium determination to decide whether to
recommend five-year U.S. Treasury notes or 30-day U.S. Treasury bills. When
the Model recommends a more than 50% fixed income allocation, the fund must
invest in other high quality bonds or money market instruments to the extent
needed to limit the fund's investments in U.S. Treasury obligations to no
more than 55% of its assets. This limit is imposed by Internal Revenue Code
diversification requirements for segregated asset accounts used to fund
variable annuity or variable life contracts.
PRINCIPAL RISKS
An investment in the fund is not guaranteed; you may lose money by investing
in the fund. The principal risks presented by the fund are:
- ASSET ALLOCATION RISK--The Tactical Allocation Model may not correctly
predict the appropriate time to shift the funds assets from one asset
class to another.
- EQUITY RISK--Stocks and other equity securities generally fluctuate in
value more than bonds. The fund could lose all of its investment in a
company's stock.
- INDEX TRACKING RISK--the fund expects a close correlation between the
performance of its stock investments and that of the S&P 500 Index in
both rising and falling markets. The performance of the fund's stock
investments generally will not be identical to that of the index because
of the fees and expenses borne by the fund and investor purchases and
sales of fund shares, which can occur daily.
- INTEREST RATE RISK--The value of the fund's bond investments will
generally fall when interest rates rise.
- FOREIGN INVESTING RISK--The S&P 500 index includes some U.S. dollar
denominated foreign securities. The value of the fund's investments in
foreign securities may fall due to adverse political, social and economic
development abroad.
INVESTMENT ADVISER: Mitchell Hutchins Asset Management Inc.
X.AVAMH-00 December 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED DECEMBER 14, 2000 TO SEPTEMBER 20, 2000 PROSPECTUS
GENERAL DESCRIPTION OF GET L
Series L of the Aetna GET Fund (GET L) is an investment option that may be
available during the accumulation phase of the contract. Aetna Life Insurance
and Annuity Company (the Company, we, our) makes a guarantee, as described
below, when you direct money into GET L. Aeltus Investment Management, Inc.
serves as investment adviser to GET L.
We will offer GET L shares only during its offering period, which is scheduled
to run from December 14, 2000 through the close of business on March 14, 2001.
GET L may not be available under your contract, your plan or in your state.
Please read the GET L prospectus for a more complete description of GET L,
including its charges and expenses.
INVESTMENT OBJECTIVE OF GET L
GET L seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET L's guarantee period runs from March 15, 2001 through March 14, 2006. During
the offering period, all GET L assets will be invested in short-term instruments
and during the guarantee period will be invested in a combination of fixed
income and equity securities.
THE GET FUND GUARANTEE
The guarantee period for GET L will end on March 14, 2006 which is GET L's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET L subaccount under the contract on the maturity date (as valued after
the close of business on March 14, 2006) will not be less than its value as
determined after the close of business on the last day of the offering period.
If the value on the maturity date is lower than it was on the last day of the
offering period, we will transfer funds from our general account to the GET L
subaccount to make up the difference. This means that if you remain invested in
GET L until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET L as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET L subaccount. The value of dividends and
distributions made by GET L throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of your
GET L investment on the maturity date is no less than its value as of the last
day of the offering period. The guarantee does not promise that you will earn
the fund's minimum targeted return referred to in the investment objective.
If you withdraw or transfer funds from GET L before the maturity date, we will
process the transactions at the actual unit value next determined after we
receive your order. The guarantee will not apply to these amounts or to amounts
deducted as a maintenance fee, if applicable.
MATURITY DATE
Before the maturity date, we will send a notice to each contract holder who has
amounts in GET L. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET L
amounts. If you do not make a choice, on the maturity date we will transfer your
GET L amounts to another available series of the GET Fund that is accepting
deposits. If no GET Fund series is available, we will transfer your GET L
amounts to the fund or funds designated by the Company.
X.GETL56297-00 December 2000
<PAGE>
The following information supplements the "Fee Table" contained in the
prospectus:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in the
prospectus, we will make a daily deduction of a GET L Guarantee Charge, equal on
an annual basis to the percentage shown below, from the amounts allocated to the
GET L investment option:
<TABLE>
<S> <C>
GET L GUARANTEE CHARGE (deducted daily during the Guarantee
Period)................................................... 0.50%
MAXIMUM TOTAL SEPARATE ACCOUNT EXPENSES (including the
optional 0.50% Premium Bonus Option Charge (1))........... 2.40%(2)
</TABLE>
The following information supplements the "Fund Expense Table" contained in the
prospectus:
AETNA GET FUND SERIES L ANNUAL EXPENSES
(As a percentage of the average net assets.)
<TABLE>
<CAPTION>
INVESTMENT TOTAL FUND ANNUAL EXPENSES
ADVISORY FEES(3) OTHER EXPENSES(4) (AFTER EXPENSE REIMBURSEMENT)(5)
---------------- ----------------- --------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series L 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET L prospectus.
--------------------------------
<TABLE>
<C> <S>
(1) If you elect the premium bonus option, the premium bonus
option charge is assessed during the first seven account
years. After the seventh account year, or if you do not
elect the premium bonus option, the maximum total separate
account expenses you would pay is 1.90%.
(2) The total separate account expenses that apply to your
contract may be lower. Please refer to the "Fee Table"
section of your prospectus.
(3) The Investment Advisory Fee will be 0.25% during the
offering period and 0.60% during the guarantee period.
(4) "Other Expenses" include an annual fund administrative fee
of 0.075% of the average daily net assets of GET L and any
additional direct fund expenses.
(5) The investment adviser is contractually obligated through
GET L's maturity date to waive all or a portion of its
investment advisory fee and/or its administrative fee and/or
to reimburse a portion of the fund's other expenses in order
to ensure that GET L's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is
not expected that GET L's actual expenses without this
waiver or reimbursement will exceed this amount.
</TABLE>
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus:
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES L
ACCOUNT FEES YOU MAY INCUR OVER TIME. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET L
investment option under the contract (until GET L's maturity date) and assume a
5% annual return on the investment.(6)
<TABLE>
<S> <C> <C>
-- THESE EXAMPLES ARE PURELY HYPOTHETICAL. EXAMPLE A EXAMPLE B
-- THEY SHOULD NOT BE CONSIDERED A REPRESENTATION If you withdraw your entire If at the end of the periods
OF PAST OR FUTURE EXPENSES OR EXPECTED RETURNS. account value at the end of the shown you (1) leave your entire
-- ACTUAL EXPENSES AND/OR RETURNS MAY BE MORE OR periods shown, you would pay account value invested or
LESS THAN THOSE SHOWN BELOW. the following expenses, (2) select an income phase
including any applicable early payment option, you would pay
withdrawal charge: the following expenses (no
early withdrawal charge is
reflected):
</TABLE>
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 1 YEAR 3 YEARS 5 YEARS
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series L $95 $151 $202 $32 $98 $166
</TABLE>
--------------------------------
<TABLE>
<C> <S>
(6) The examples shown above reflect an annual mortality and
expense risk charge of 1.25%, an annual contract administra-
tive expense charge of 0.15%, an annual GET L guarantee
charge of 0.50%, an annual premium bonus charge of 0.50%, a
$30 annual maintenance fee that has been converted to a
percentage of assets equal to 0.022%, and all charges and
expenses of the GET L Fund. Example A reflects an early
withdrawal charge of 7% of the purchase payments at the end
of year 1, 6% at the end of year 3, and 4% at the end of
year 5. (The expenses that you would pay under your contract
may be lower. Please refer to the "Fee Table" section of
your prospectus.)
</TABLE>
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
AETNA GET FUND (SERIES L)
INVESTMENT OBJECTIVE
Seeks to achieve maximum total return without compromising a minimum targeted
return (Targeted Return) by participating in favorable equity market performance
during the guarantee period, from March 15, 2001 through March 14, 2006, the
maturity date.
POLICIES
Prior to March 15, 2001, assets are invested entirely in short-term instruments.
After that date, assets are allocated between equities and fixed income
securities. Equities consist primarily of common stocks. Fixed income securities
consist primarily of short- to intermediate-duration U.S. Government securities
and may also consist of mortgage backed securities and corporate obligations.
The investment adviser uses a proprietary computer model to determine the
percentage of assets to allocate between the fixed and the equity components. As
the value of the equity component declines, more assets are allocated to the
fixed component.
RISKS
The principal risks of investing in Series L are those generally attributable to
stock and bond investing. The success of Series L's strategy depends on the
investment adviser's skill in allocating assets between the equity and fixed
components and in selecting investments within each component. Because Series L
invests in both stocks and bonds, it may underperform stock funds when stocks
are in favor and underperform bond funds when bonds are in favor. The risks
associated with investing in stocks include sudden and unpredictable drops in
the value of the market as a whole and periods of lackluster or negative
performance. The principal risk associated with investing in bonds is that
interest rates may rise, which generally causes bond prices to fall. If at the
inception of, or any time during, the guarantee period interest rates are low,
Series L assets may be largely invested in the fixed component in order to
increase the likelihood of achieving the Targeted Return at the maturity date.
The effect of low interest rates on Series L would likely be more pronounced at
the beginning of the guarantee period as the initial allocation of assets would
include more fixed income securities. In addition, if during the guarantee
period the equity markets experienced a major decline, Series L assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Targeted Return at the maturity date. Use of the
fixed component reduces Series L's ability to participate as fully in upward
equity market movements, and therefore represents some loss of opportunity, or
opportunity cost, compared to a portfolio that is fully invested in equities.
INVESTMENT ADVISER: Aeltus Investment Management, Inc.
X.GETL56297-00 December 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED MARCH 1, 2001 TO SEPTEMBER 20, 2000 PROSPECTUS
GENERAL DESCRIPTION OF GET M
Series M of the Aetna GET Fund (GET M) is an investment option that may be
available during the accumulation phase of the contract. Aetna Life Insurance
and Annuity Company (the Company, we, our) makes a guarantee, as described
below, when you direct money into GET M. Aeltus Investment Management, Inc.
serves as investment adviser to GET M.
We will offer GET M shares only during its offering period, which is scheduled
to run from March 15, 2001 through the close of business on June 13, 2001. GET M
may not be available under your contract, your plan or in your state. Please
read the GET M prospectus for a more complete description of GET M, including
its charges and expenses.
INVESTMENT OBJECTIVE OF GET M
GET M seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET M's guarantee period runs from June 14, 2001 through June 13, 2006. During
the offering period, all GET M assets will be invested in short-term instruments
and during the guarantee period will be invested in a combination of fixed
income and equity securities.
THE GET FUND GUARANTEE
The guarantee period for GET M will end on June 13, 2006 which is GET M's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET M subaccount under the contract on the maturity date (as valued after
the close of business on June 13, 2006) will not be less than its value as
determined after the close of business on the last day of the offering period.
If the value on the maturity date is lower than it was on the last day of the
offering period, we will transfer funds from our general account to the GET M
subaccount to make up the difference. This means that if you remain invested in
GET M until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET M as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET M subaccount. The value of dividends and
distributions made by GET M throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of your
GET M investment on the maturity date is no less than its value as of the last
day of the offering period. The guarantee does not promise that you will earn
the fund's minimum targeted return referred to in the investment objective.
If you withdraw or transfer funds from GET M before the maturity date, we will
process the transactions at the actual unit value next determined after we
receive your order. The guarantee will not apply to these amounts or to amounts
deducted as a maintenance fee, if applicable.
MATURITY DATE
Before the maturity date, we will send a notice to each contract holder who has
amounts in GET M. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET M
amounts. If you do not make a choice, on the maturity date we will transfer your
GET M amounts to another available series of the GET Fund that is accepting
deposits. If no GET Fund series is available, we will transfer your GET M
amounts to the fund or funds designated by the Company.
X.GETM56297-00 March 2001
<PAGE>
The following information supplements the "Fee Table" contained in the
prospectus:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in the
prospectus, we will make a daily deduction of a GET M Guarantee Charge, equal on
an annual basis to the percentage shown below, from the amounts allocated to the
GET M investment option:
<TABLE>
<S> <C>
GET M GUARANTEE CHARGE (deducted daily during the Guarantee
Period)................................................... 0.50%
MAXIMUM TOTAL SEPARATE ACCOUNT EXPENSES (including the
optional 0.50% Premium Bonus Option Charge(1))............ 2.40%(2)
</TABLE>
The following information supplements the "Fund Expense Table" contained in the
prospectus:
AETNA GET FUND SERIES M ANNUAL EXPENSES
(As a percentage of the average net assets.)
<TABLE>
<CAPTION>
INVESTMENT TOTAL FUND ANNUAL EXPENSES
ADVISORY FEES(3) OTHER EXPENSES(4) (AFTER EXPENSE REIMBURSEMENT)(5)
---------------- ----------------- --------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series M 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET M prospectus.
--------------------------------
<TABLE>
<C> <S>
(1) If you elect the premium bonus option, the premium bonus
option charge is assessed during the first seven account
years. After the seventh account year, or if you do not
elect the premium bonus option, the maximum total separate
account expenses you would pay is 1.90%.
(2) The total separate account expenses that apply to your
contract may be lower. Please refer to the "Fee Table"
section of your prospectus.
(3) The Investment Advisory Fee will be 0.25% during the
offering period and 0.60% during the guarantee period.
(4) "Other Expenses" include an annual fund administrative fee
of 0.075% of the average daily net assets of GET M and any
additional direct fund expenses.
(5) The investment adviser is contractually obligated through
GET M's maturity date to waive all or a portion of its
investment advisory fee and/or its administrative fee and/or
to reimburse a portion of the fund's other expenses in order
to ensure that GET M's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is
not expected that GET M's actual expenses without this
waiver or reimbursement will exceed this amount.
</TABLE>
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus:
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES M
ACCOUNT FEES YOU MAY INCUR OVER TIME. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET M
investment option under the contract (until GET M's maturity date) and assume a
5% annual return on the investment.(6)
<TABLE>
<S> <C> <C>
-- THESE EXAMPLES ARE PURELY HYPOTHETICAL. EXAMPLE A EXAMPLE B
-- THEY SHOULD NOT BE CONSIDERED A REPRESENTATION If you withdraw your entire If at the end of the periods
OF PAST OR FUTURE EXPENSES OR EXPECTED RETURNS. account value at the end of the shown you (1) leave your entire
-- ACTUAL EXPENSES AND/OR RETURNS MAY BE MORE OR periods shown, you would pay account value invested or
LESS THAN THOSE SHOWN BELOW. the following expenses, (2) select an income phase
including any applicable early payment option, you would pay
withdrawal charge: the following expenses (no
early withdrawal charge is
reflected):
</TABLE>
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 1 YEAR 3 YEARS 5 YEARS
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series M $95 $151 $202 $32 $98 $166
</TABLE>
--------------------------------
<TABLE>
<C> <S>
(6) The examples shown above reflect an annual mortality and
expense risk charge of 1.25%, an annual contract administra-
tive expense charge of 0.15%, an annual GET M guarantee
charge of 0.50%, an annual premium bonus charge of 0.50%, a
$30 annual maintenance fee that has been converted to a
percentage of assets equal to 0.022%, and all charges and
expenses of the GET M Fund. Example A reflects an early
withdrawal charge of 7% of the purchase payments at the end
of year 1, 6% at the end of year 3, and 4% at the end of
year 5. (The expenses that you would pay under your contract
may be lower. Please refer to the "Fee Table" section of
your prospectus.)
</TABLE>
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
AETNA GET FUND (SERIES M)
INVESTMENT OBJECTIVE
Seeks to achieve maximum total return without compromising a minimum targeted
return (Targeted Return) by participating in favorable equity market performance
during the guarantee period, from June 14, 2001 through June 13, 2006, the
maturity date.
POLICIES
Prior to June 14, 2001, assets are invested entirely in short-term instruments.
After that date, assets are allocated between equities and fixed income
securities. Equities consist primarily of common stocks. Fixed income securities
consist primarily of short- to intermediate-duration U.S. Government securities
and may also consist of mortgage backed securities and corporate obligations.
The investment adviser uses a proprietary computer model to determine the
percentage of assets to allocate between the fixed and the equity components. As
the value of the equity component declines, more assets are allocated to the
fixed component.
RISKS
The principal risks of investing in Series M are those generally attributable to
stock and bond investing. The success of Series M's strategy depends on the
investment adviser's skill in allocating assets between the equity and fixed
components and in selecting investments within each component. Because Series M
invests in both stocks and bonds, it may underperform stock funds when stocks
are in favor and underperform bond funds when bonds are in favor. The risks
associated with investing in stocks include sudden and unpredictable drops in
the value of the market as a whole and periods of lackluster or negative
performance. The principal risk associated with investing in bonds is that
interest rates may rise, which generally causes bond prices to fall. If at the
inception of, or any time during, the guarantee period interest rates are low,
Series M assets may be largely invested in the fixed component in order to
increase the likelihood of achieving the Targeted Return at the maturity date.
The effect of low interest rates on Series M would likely be more pronounced at
the beginning of the guarantee period as the initial allocation of assets would
include more fixed income securities. In addition, if during the guarantee
period the equity markets experienced a major decline, Series M assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Targeted Return at the maturity date. Use of the
fixed component reduces Series M's ability to participate as fully in upward
equity market movements, and therefore represents some loss of opportunity, or
opportunity cost, compared to a portfolio that is fully invested in equities.
INVESTMENT ADVISER: Aeltus Investment Management, Inc.
X.GETM56297-00 March 2001
