Transamerica Seriessm Transamerica Lineagesm
Variable Life Insurance
Issued by
Transamerica Occidental Life Insurance Company
Separate Account VUL-2
Supplement Dated June 11, 1999
To
Prospectus Dated May 1, 1999
The following information supplements the Prospectus. You should read it
together with the Prospectus.
1. The second paragraph in the description of the The Fixed Income Portfolio
of the Morgan Stanley Dean Witter Universal Funds, Inc., section on page
20 is changed to read:
Adviser: Miller Anderson & Sherrerd, LLP. Management Fee: 0.40% of the
first $500 million plus 0.35% of the next $500 million plus 0.30% of
the assets over $1 billion.
2. The second paragraph in the description of the The High Yield Portfolio
of the Morgan Stanley Dean Witter Universal Funds, Inc., section on page
20 is changed to read:
Adviser: Miller Anderson & Sherrerd, LLP. Management Fee: 0.50% of the
first $500 million plus 0.45% of the next $500 million plus 0.40% of
the assets over $1 billion.
3. The first paragraph of the Federal Tax Considerations section on page 36
is changed to read:
The following description is a brief summary of some of the federal tax
considerations for U.S. citizens and residents based on our understanding
of the present federal income tax laws as they are currently interpreted.
Legislation may be proposed which, if passed, could adversely and
possibly retroactively affect the taxation of the contracts. This summary
is not exhaustive, does not purport to cover all situations, and is not
intended as tax advice. We do not address tax provisions that may apply
if the contract owner is a corporation. You should consult a qualified
tax adviser to apply the law to your circumstances.
4. The following provision is added to the Taxation of the Contracts portion
of the Federal Tax Considerations section on page 37:
Withholding. If all or part of a distribution from the contract is
includible in gross income, the Code requires us to withhold federal
income tax unless the contract owner elects, in writing, not to have tax
withholding apply. The federal income tax withholding rate is generally
10% of the taxable amount of the distribution. Withholding applies only
if the taxable amount of the distribution is at least $200. Some states
also require withholding for state income taxes.
If payments are delivered to foreign countries, however, the tax
withholding rate will generally be 10% unless you certify to us that you
are not a U.S. person residing abroad or a "tax avoidance expatriate" as
defined in Code Section 877. Such certification may result in withholding
of federal income taxes at a different rate.
