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?"
<TABLE>
<CAPTION>
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Investment Other Total Net
STYLE/ INVESTMENT OBJECTIVES/POLICIES Management Expenses Annual
TYPE Fee Expenses
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- ------------------- ------------------------------------------------------------------------------------------------ ---------------
<S> <C> <C> <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.
GROWTH exchanges or in the over-the-counter market. The Portfolio 0.95% 0.22% 1.23%(1)
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.
- ------------------- ------------------------------------------------------------------------------------------------ ---------------
</TABLE>
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. SUB-ACCOUNT CLOSING
AST JANUS SMALL-CAP GROWTH PORTFOLIO/SUB-ACCOUNT
American Skandia Trust is closing the AST Janus Small-Cap Growth portfolio
effective on the close of business, January 18, 2000. Except as indicated below,
the AST Janus Small-Cap Growth portfolio will no longer be offered as a
Sub-account under Policies issued after January 18, 2000. Policies issued on or
before January 18, 2000 will be allowed to allocate Account Value, make
subsequent premium payments or make transfers into the AST Janus Small-Cap
Growth Sub-account. Policies issued after January 18, 2000 on applications
received by American Skandia on or before January 18, 2000 will be allowed to
allocate initial and subsequent premium payments to the AST Janus Small-Cap
Growth Sub-account. Bank drafting, dollar cost averaging, asset allocation and
rebalancing programs that were effective on or before January 18, 2000 and
included the AST Janus Small-Cap Growth Sub-account will be allowed to continue.
However, no changes involving the AST Janus Small-Cap Growth Sub-account may be
made to such programs.
The Portfolio may be offered to new and existing Contract Owners as a
Sub-account at some future date. However, at the present time, American Skandia
has no intention to do so.
ASTr/FPVLI-SUPP. (01/03/2000)R VLI 01/03R
