Supplement to Prospectus Dated May 5, 1998
Supplement dated December 31, 1998
This Supplement should be retained with the current Prospectus for your variable
life insurance policy issued by American Skandia Life Assurance Corporation
("American Skandia"). If you do not have a current prospectus, please contact
American Skandia at 1-800-SKANDIA.
CHANGES TO VARIABLE INVESTMENT OPTIONS
1. Effective December 31, 1998 OppenheimerFunds, Inc. will be the new
portfolio sub-advisor for the Robertson Stephens Value + Growth portfolio.
In connection with this change the portfolio's name is changed to "AST
Oppenheimer Large-Cap Growth."
2. Effective January 1, 1999 Janus Capital Corporation will be the new
portfolio sub-advisor for the Founders Capital Appreciation portfolio. In
connection with this change the portfolio's name is changed to "AST Janus
Small-Cap Growth."
3. Effective January 4, 1999, the AST Kemper Small-Cap Growth portfolio of
American Skandia Trust ("AST") will be available as a variable investment
option under your Annuity.
4. The following descriptions are added to the table under the section entitled
"Variable Investment Options" on page 15 of the Prospectus:
<TABLE>
<CAPTION>
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Investment Other Total
Portfolio: Investment Objective/Policies Management Expenses Annual
Fee Expenses
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American Skandia Trust Portfolios
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<S> <C> <C> <C>
AST Janus Small-Cap Growth: seeks capital appreciation. The Portfolio pursues its
objective by normally investing at least 65% of its total assets in securities issued by
small-sized companies (those that have market capitalizations of less than $1.5 billion or 0.90% 0.23% 1.13%1
annual gross revenues of less than $500 million). The Portfolio may also invest
in stocks of larger companies with potential for capital appreciation.
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AST Oppenheimer Large-Cap Growth: seeks capital appreciation. The Portfolio does not
invest to seek current income. The Fund seeks its investment objective by emphasizing
investment in common stocks issued by established large-capitalization (those companies that 0.90% 0.23% 1.13%2
have market capitalizations greater than $3 billion, and will maintain a median market
capitalization of more than $5 billion) "growth companies" that, in the opinion of the
Sub-advisor, have above average earnings prospects but are selling at
below-normal valuations.
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AST Kemper Small-Cap Growth: seeks maximum appreciation of investors' capital from a
portfolio primarily of growth stocks of smaller companies. The Portfolio's investment 0.95% 0.40% 1.35%3
portfolio will normally consist primarily of common stocks and securities convertible into
or exchangeable for common stocks, including warrants and rights. Current income will not
be a significant factor.
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</TABLE>
(1) This Portfolio had not commenced operations as of the date of this
Prospectus. "Other expenses" shown are based on estimated amounts for the
fiscal year ending December 31, 1999.
(2) Prior to December 31, 1998, the Investment Manager had engaged Robertson,
Stephens & Company Investment Management, L.P. as Sub-advisor for the
Portfolio, and the total Investment Management fee was at the annual rate
of 1.00% of the average daily net assets of the Portfolio. As of December
31, 1998, the Investment Manager engaged OppenheimerFunds, Inc. as
Sub-advisor for the Portfolio, and the Investment Management fee is payable
at the annual rate of 0.90% of the first $1 billion of the average daily
net assets of the Portfolio, plus .85% of the Portfolio's average daily net
assets in excess of $1 billion. The Management Fee in the above chart
reflects the current Investment Management fee payable to the Investment
Manager.
(3) Prior to January 1, 1999, the Investment Manager had engaged Founders Asset
Management, LLC as Sub-advisor for the Portfolio (formerly the Founders
Capital Appreciation portfolios). The other expenses without any
reimbursement would have been 0.60%; the total annual expenses without any
waiver or reimbursement would have been 1.55%.
5. Effective December 31, 1998, the Stein Roe Venture portfolio of American
Skandia Trust and the corresponding Sub-account of the Separate Account are
no longer being offered under the Policy.
6. Effective December 31, 1998, the Small Capitalization portfolio of The
Alger American Fund and the corresponding Sub-account of the Separate
Account are no longer being offered under the Policy.
7. Effective December 31, 1998, the name of the Twentieth Century Strategic
Balanced portfolio of AST and the Twentieth Century International Growth
portfolio of AST are changed to AST American Century Strategic Balanced
portfolio and AST American Century International Growth portfolio,
respectively. The names of the respective sub-accounts are changed
accordingly. The new portfolio and sub-account names will appear on all
statements and reports for periods beginning on or after January 4, 1999.
SPVLI (12/98) VLISUPP199
8. Effective December 31, 1998, each portfolio of AST will have the prefix
"AST" added to the portfolio name. The AST prefix will appear on the
effected portfolio(s) on all statements and reports for periods beginning
on or after January 4, 1999. The names of the respective sub-accounts are
changed accordingly.
9. Effective December 31, 1998, the name of the Neuberger&Berman Mid-Cap Value
portfolio of AST and the Neuberger&Berman Mid-Cap Growth portfolio of AST
are changed to AST Neuberger Berman Mid-Cap Value portfolio and AST
Neuberger Berman Mid-Cap Growth portfolio, respectively. The names of the
respective sub-accounts are changed accordingly. The new portfolio and
sub-account names will appear on all statements and reports for periods
beginning on or after January 4, 1999.
