SUPPLEMENT TO PROSPECTUS DATED MAY 3, 1999 AND REVISED EFFECTIVE AUGUST 27, 1999
SUPPLEMENT DATED JANUARY 3, 2000
This Supplement should be retained with the current Prospectus for your variable
life 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.
A. ADDITIONAL VARIABLE INVESTMENT OPTION
VARIABLE INVESTMENT OPTIONS
THE FOLLOWING UNDERLYING PORTFOLIO IS BEING ADDED TO THE SECTION ENTITLED "WHAT
ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE VARIABLE INVESTMENT OPTIONS?
WHAT CHARGES ARE MADE BY THE PORTFOLIOS IN WHICH THESE OPTIONS INVEST?"
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PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
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<S> <C> <C>
AST ALGER ALL-CAP GROWTH: SEEKS LONG-TERM CAPITAL GROWTH.
The Portfolio invests primarily in equity securities, such
as common or preferred stocks, that are listed on U.S. Fred Alger
GROWTH exchanges or in the over-the-counter market. The Portfolio Management, Inc.
may invest in the equity securities of companies of all
sizes, and may emphasize either larger or smaller companies
at a given time based on the Sub-advisor's assessment of
particular companies and market conditions.
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1 This Portfolio commenced operations as of December 30, 1999. "Other
expenses" shown are based on estimated amounts for the fiscal year ending
December 31, 2000. The Total Net Annual Expenses reflects an Estimated
Distribution and Service (12b-1) Fee of 0.06%. American Skandia Trust (the
"Trust") adopted a Distribution Plan (the "Distribution Plan") under Rule
12b-1 of the Investment Company Act of 1940 to permit an affiliate of the
Trust's Investment Manager to receive brokerage commissions in connection
with purchases and sales of securities held by Portfolios of the Trust, and
to use these commissions to promote the sale of shares of such Portfolios.
The staff of the Securities and Exchange Commission takes the position that
commission amounts received under the Distribution Plan should be reflected
as distribution expenses of the Portfolios. The Portfolios would pay the
same or comparable commission amounts irrespective of the Distribution Plan;
accordingly, total returns for the Portfolios are not expected to be
adversely affected. The Distribution Fee estimate is derived from data
regarding other similar Portfolio's brokerage transactions, and the
proportions of such transactions directed to selling dealers, for the period
ended June 30, 1999. However, it is not possible to determine with accuracy
actual amounts that will be received under the Distribution Plan. Such
amounts will vary based upon the level of a Portfolio's brokerage activity,
the proportion of such activity directed under the Distribution Plan, and
other factors.
B. NOTICE OF SUBSTITUTION
PROPOSED SUBSTITUTION
American Skandia has filed an application with the Securities and Exchange
Commission ("SEC") to substitute the following "Replaced Portfolio/Sub-Account"
with the "Substitute Portfolio/Sub-Account".
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REPLACED PORTFOLIO/SUB-ACCOUNT SUBSTITUTE PORTFOLIO/SUB-ACCOUNT
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<S> <C>
Alger American Growth portfolio of The Alger American Fund/AA AST MFS Growth portfolio of American Skandia Trust/AST MFS
Growth Sub-account Growth Sub-account
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Alger American MidCap Growth portfolio of The Alger American AST Alger All-Cap Growth portfolio of American Skandia
Fund/AA MidCap Growth Sub-account Trust/AST Alger All-Cap Growth Sub-account
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In the application to the SEC, American Skandia is seeking permission to allow
transfers from the Replaced Portfolio/Sub-account to any other investment
options available under the Annuity for a period of 30 days following the
substitution without the imposition of any transfer fee. Under the proposed
substitution, such transfers would not count in determining whether the maximum
number of free transfers has been exceeded. Furthermore, under the proposed
substitution, the transfer of Account Value from the Replaced
Portfolio/Sub-account to the Substitute Portfolio/Sub-account would likewise not
be subject to a transfer fee nor count in determining whether the maximum number
of free transfers have been exceeded. The proposed substitution will not affect
your rights or our obligations under the Annuity. American Skandia will bear any
expenses in connection with the proposed substitution.
CONTRACT OWNERS WITH ACCOUNT VALUE ALLOCATED TO THE REPLACED
PORTFOLIO/SUB-ACCOUNT MAY REMAIN IN THE SUB-ACCOUNT UNTIL THE EARLIEST TO OCCUR
OF: (1) THE DATE THEY TRANSFER ACCOUNT VALUE OUT OF THE REPLACED
PORTFOLIO/SUB-ACCOUNT; OR (2) THE DATE THE PROPOSED SUBSTITUTION IS COMPLETED.
ON OR AFTER THE DATE OF THE SUBSTITUTION, THE REPLACED PORTFOLIO/SUB-ACCOUNT
WILL NO LONGER EXIST. CONTRACT OWNERS WILL NO LONGER BE ABLE TO ALLOCATE ACCOUNT
VALUE TO THE REPLACED PORTFOLIO/SUB-ACCOUNT AFTER THE SUBSTITUTION DATE.
ASTr/FPVLI-SUPP. (01/03/2000) VLI 01/03
