ROYAL LIFE INSURANCE CO OF AMERICA SEPARATE ACCOUNT TWO
S-6/A, 1999-02-05
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<PAGE>
   
    As filed with the Securities and Exchange Commission on February 5, 1999.
                                                             File No. 333-65437
    
                       SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
   
                      PRE-EFFECTIVE AMENDMENT NO. 1 TO
                                  FORM S-6
    
             FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
              SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON
                                 FORM N-8B-2

A.   Exact name of trust:  Separate Account Two

B.   Name of depositor: Royal Life Insurance Company of America

C.   Complete address of depositor's principal executive offices:

     P.O. Box 2999
     Hartford, CT  06104-2999

D.   Name and complete address of agent for service:
   
     Thomas S. Clark, Esq.
     Royal Life Insurance Company of America
     P.O. Box 2999
     Hartford, CT  06104-2999
    
E.   Title and amount of securities being registered:  Pursuant to Rule 24f-2
     under the Investment Company Act of 1940, the Registrant will register an
     indefinite amount of securities.

F.   Proposed maximum aggregate offering price to the public of the securities
     being registered:  Not yet determined.

G.   Amount of filing fee: Not applicable.

H.   Approximate date of proposed public offering:  As soon as practicable after
     the effective date of this registration statement.

The registrant hereby amends this Registration Statement on such dates as may 
be necessary to delay its effective date until the Registrant shall file a 
further amendment which specifically states that this Registration Statement 
shall thereafter become effective in accordance with Section 8(a) of the 
Securities Act of 1933 or until the Registration Statement shall become 
effective on such date as the Commission, acting pursuant to said 
Section 8(a), may determine.

<PAGE>
                          RECONCILIATION AND TIE BETWEEN 
                             FORM N-8B-2 AND PROSPECTUS
Item No. of
FORM N-8B-2         CAPTION IN PROSPECTUS
- -----------         ---------------------

     1.             Cover page

     2.             Cover page

     3.             Not applicable

     4.             Royal Life Insurance Company of America; How We Sell Our
                    Policy

     5.             The Separate Account

     6.             The Separate Account

     7.             Not required by Form S-6

     8.             Not required by Form S-6

     9.             Legal Proceedings

     10.            Summary; The Funds; Application for a Policy; Policy
                    Benefits and Rights; Other Matters - Voting Rights,
                    Dividends

     11.            Summary; The Funds

     12.            Summary;  The Funds

     13.            Deductions and Charges; How We Sell Our Policy; Federal 
                    Tax Considerations

     14.            Application

     15.            Allocation of Premiums 

     16.            The Funds; Allocation of Premiums

     17.            Summary; Policy Benefits and Rights - Account Value and
                    Amount Payable on Surrender of the Policy, Cancellation 
                    and Exchange Rights

<PAGE>

ITEM NO. OF
FORM N-8B-2         CAPTION IN PROSPECTUS
- -----------         ---------------------
     
     18.            The Funds; Deduction and Charges; Federal Tax 
                    Considerations

     19.            Other Matters - Statements

     20.            Not applicable

     21.            Policy Benefits and Rights - Policy Loans

     22.            Not applicable

     23.            Safekeeping of Separate Account Assets

     24.            Other Matters - Assignment

     25.            Royal Life Insurance Company of America

     26.            Not applicable

     27.            Royal Life Insurance Company of America

     28.            Royal Life Insurance Company of America

     29.            Royal Life Insurance Company of America

     30.            Not applicable

     31.            Not applicable

     32.            Not applicable

     33.            Not applicable

     34.            Not applicable

     35.            How We Sell Our Policy

     36.            Not required by Form S-6

     37.            Not applicable

     38.            How We Sell Our Policy

<PAGE>

ITEM NO. OF
FORM N-8B-2         CAPTION IN PROSPECTUS
- -----------         ---------------------

     39.            Royal Life Insurance Company of America; How We Sell Our
                    Policy

     40.            Not applicable

     41.            Royal Life Insurance Company of America;  How We Sell Our
                    Policy

     42.            Not applicable

     43.            Not applicable

     44.            Allocation of Premiums

     45.            Not applicable

     46.            Policy Benefits and Rights - Account Value

     47.            The Funds

     48.            Cover Page; Royal Life Insurance Company of America

     49.            Not applicable

     50.            The Separate Account

     51.            Summary; Royal Life Insurance Company of America;  Your
                    Policy;  Policy Benefits and Rights;  Other Matters -
                    Beneficiary

     52.            The Funds, Investment Adviser

     53.            Federal Tax Considerations

     54.            Not applicable

     55.            Not applicable

     56.            Not required by Form S-6

     57.            Not required by Form S-6

     58.            Not required by Form S-6

     59.            Not required by Form S-6

<PAGE>




                                       PART I
                                          
                                          

<PAGE>
                                          6
   
ROYAL LIFE INSURANCE COMPANY OF AMERICA 
SEPARATE ACCOUNT TWO                                             
P. O. BOX 2999                                          Modified Single Premium
HARTFORD, CT  06104-2999                       Variable Life Insurance Policies
TELEPHONE (800)862-6668 
    
   
This Prospectus describes information you should know before you purchase our
variable life insurance policy.  Please read it carefully. 
    
   
The  variable life insurance policy is a contract between you and Royal Life 
Insurance Company of America where you agree to make payments to us and we 
agree to pay a death benefit to your beneficiaries. It is a modified single 
premium variable life insurance policy. It is: 
    

X    Modified single premium, because you pay one large single payment, and
     under certain circumstances you may add payments.
X    Variable, because the value of your life insurance policy will fluctuate
     with the performance of the stock market.
   
After purchase, you allocate your payments to "Sub-Accounts" or subdivisions 
of our Separate Acount, an account that keeps your life insurance policy 
assets separate from our company assets. These Sub-Accounts then purchase 
shares of mutual funds set up exclusively for variable annuity or variable 
life insurance products.  These funds are not the same mutual funds that you 
buy through your stockbroker or through a retail mutual fund, but they may 
have similar investment strategies and the same portfolio managers as retail 
mutual funds. This life insurance policy offers you funds with investment 
strategies ranging from conservative to aggressive and you may pick those 
funds that meet your investment style.  The Sub-Accounts and the funds are 
listed below: 
    
   
    
- -    Bond Sub-Account which purchases shares of Class IA of Hartford Bond HLS
     Fund, Inc. 
   
- -    High Yield Sub-Account which purchases shares of Class IA of Hartford High
     Yield HLS Fund
    
<PAGE>
                                          7

- -    Index Sub-Account which purchases shares of Class IA of Hartford Index  
     HLS Fund, Inc. 
   
    
- -    Money Market Sub-Account which purchases shares of Class IA of Hartford
     Money Market HLS Fund, Inc.
- -    Mortgage Securities Sub-Account which purchases shares of Class IA of
     Hartford Mortgage Securities HLS Fund, Inc. 
   
    
If you decide to buy this life insurance policy, you should keep this 
prospectus for your records. Although we file the Prospectus with the 
Securities and Exchange Commission, the Commission doesn't approve or 
disapprove these securities or determine if the information is truthful or 
complete.  Anyone who represents that the Securities and Exchange Commission 
does these things may be guilty of a criminal offense. 

This Prospectus can also be obtained from the Securities and Exchange
Commissions' website (HTTP://WWW.SEC.GOV).

This life insurance policy IS NOT:
- -    a bank deposit or obligation
- -    federally insured
- -    endorsed by any bank or governmental agency
- -    available for sale in all states
   
Prospectus Dated:  February 12, 1999
    
<PAGE>
                                          8
                                          
                                 TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                PAGE 
<S>                                                                             <C>
SPECIAL TERMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       10
SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       13
ABOUT US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       16
Royal Life Insurance Company of America. . . . . . . . . . . . . . . . . .       16
The Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . .       16
The Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       17
Investment Adviser . . . . . . . . . . . . . . . . . . . . . . . . . . . .       20
YOUR POLICY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       20
Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       20
Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       21
Allocation of Premiums . . . . . . . . . . . . . . . . . . . . . . . . . .       21
Accumulation Unit Values . . . . . . . . . . . . . . . . . . . . . . . . .       22
DEDUCTIONS AND CHARGES . . . . . . . . . . . . . . . . . . . . . . . . . .       22
Chart of Deduction and Charges . . . . . . . . . . . . . . . . . . . . . .       23
Cost of Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . .       24
Administrative Charge. . . . . . . . . . . . . . . . . . . . . . . . . . .       25
Annual Maintenance Fee . . . . . . . . . . . . . . . . . . . . . . . . . .       25
Surrender Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       25
Your Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       26
      Option 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       26
      Option 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       27
Other Deductions or Charges. . . . . . . . . . . . . . . . . . . . . . . .       28
POLICY BENEFITS AND RIGHTS . . . . . . . . . . . . . . . . . . . . . . . .       28
Death Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       28
Account Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       29
Transfer of Account Value. . . . . . . . . . . . . . . . . . . . . . . . .       29
Policy Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       30
Amount Payable on Surrender of the Policy. . . . . . . . . . . . . . . . .       31
Partial Surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . . .       31
Benefits at Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . .       32
Lapse and Reinstatement. . . . . . . . . . . . . . . . . . . . . . . . . .       32
Cancellation and Exchange Rights . . . . . . . . . . . . . . . . . . . . .       32
Suspension of Valuation, Payments and Transfers. . . . . . . . . . . . . .       33
LAST SURVIVOR POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . .       33
OTHER MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       34
Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       34
Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       34
Limit on Right to Contest. . . . . . . . . . . . . . . . . . . . . . . . .       35
Misstatement as to Age and Sex . . . . . . . . . . . . . . . . . . . . . .       35
Settlement Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . .       35
Beneficiary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       37
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       38
</TABLE>

<PAGE>
                                          9

<TABLE>
<S>                                                                             <C>
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       38
EXECUTIVE OFFICERS AND DIRECTORS . . . . . . . . . . . . . . . . . . . . .       38
HOW WE SELL OUR POLICY . . . . . . . . . . . . . . . . . . . . . . . . . .       40
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS . . . . . . . . . . . . . . .       41
FEDERAL TAX CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . .       42
General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       42
Taxation of Royal and the Separate Account . . . . . . . . . . . . . . . .       42
Income Taxation of Policy Benefits . . . . . . . . . . . . . . . . . . . .       42
Last Survivor Policies . . . . . . . . . . . . . . . . . . . . . . . . . .       43
Modified Endowment Policies. . . . . . . . . . . . . . . . . . . . . . . .       43
Estate and Generation Skipping Taxes . . . . . . . . . . . . . . . . . . .       44
Diversification Requirements . . . . . . . . . . . . . . . . . . . . . . .       44
Ownership of the Assets in the Separate Account. . . . . . . . . . . . . .       45
Life Insurance Purchased for Use in Split Dollar Arrangements. . . . . . .       46
Federal Income Tax Withholding . . . . . . . . . . . . . . . . . . . . . .       46
Non-Individual Ownership of Policies . . . . . . . . . . . . . . . . . . .       46
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       46
Life Insurance Purchases by Nonresident Aliens and Foreign Corporations. .       46
LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .       46
LEGAL MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       47
YEAR 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       47
EXPERTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       48
REGISTRATION STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . .       48
APPENDIX A -- SPECIAL INFORMATION FOR POLICIES PURCHASED IN NEW YORK . . .       49
APPENDIX B -- ILLUSTRATIONS OF BENEFITS. . . . . . . . . . . . . . . . . .       52
</TABLE>

<PAGE>
                                         10
                                          
                                   SPECIAL TERMS
                                          
As used in this Prospectus, the following terms have the indicated meanings:

ACCOUNT VALUE:  The current value of the Sub-Accounts plus the value of the 
Loan Account under the Policy.

ACCUMULATION UNIT:  A unit of measure we use to calculate the value of a 
Sub-Account.

ANNUAL WITHDRAWAL AMOUNT:  The amount that can be withdrawn in any Policy 
Year before we charge you a surrender charge.

ANNUITY UNIT:  A unit of measure we use to calculate the amount of annuity 
payments. 

ATTAINED AGE:  The Issue Age plus the number of fully completed Policy Years.
  
CASH SURRENDER VALUE:  The Cash Value less all Indebtedness.

CASH VALUE: The Account Value less any Surrender Charge and any Unamortized 
Tax charge due upon surrender.  

CODE:  The Internal Revenue Code of 1986, as amended.

COVERAGE AMOUNT:  The Death Benefit less the Account Value.

DEATH BENEFIT:  The greater of (1) the Face Amount specified in the Policy or 
(2) the Account Value on the date of death multiplied by a stated percentage 
as specified in the Policy.

DEATH PROCEEDS:  The amount that Royal will pay on the death of the Insured. 
This equals the Death Benefit less any Indebtedness.

DEDUCTION AMOUNT:  A deduction on the Policy Date and on each Monthly 
Activity Date for the cost of insurance, Tax Expense charges under Option 1, 
an administrative charge and a mortality and expense risk charge.   

FACE AMOUNT:  On the Policy Date, the Face Amount is the amount shown on the 
Policy's Specifications page.  Thereafter, the Face Amount is reduced in 
proportion to any partial surrenders.
   
FUNDS:  The registered management investment companies in which assets of the 
Separate Account may be invested.
    
GUIDELINE SINGLE PREMIUM:  The "Guideline Single Premium" as defined in 
Section 7702 of the Code.

<PAGE>
                                         11

HOME OFFICE:  Currently located at 200 Hopmeadow Street, Simsbury, 
Connecticut; however, the mailing address is P.O. Box 2999, Hartford, 
Connecticut 06104-2999.

INDEBTEDNESS:  All monies owed to Royal by the Policy Owner, including all 
outstanding loans on the Policy, any interest due or accrued and any unpaid 
Deduction Amount or annual maintenance fee arising during a grace period.

INSURED:  The person on whose life the Policy is issued.

ISSUE AGE: As of the Policy Date, the Insured's age on Insured's last 
birthday.

LOAN ACCOUNT:  An account in Royal's General Account, established for any 
amounts transferred from the Sub-Accounts for requested loans.  The Loan 
Account credits a fixed rate of interest that is not based on the investment 
experience of the Separate Account.

MONTHLY ACTIVITY DATE:  The day of each month on which any deductions or 
charges are subtracted from the Account Value of the Policy.  Monthly 
Activity Dates occur on the same day of the month as the Policy Date.

POLICY: The Policy is the individual Policy and any endorsements or riders.  
If you are enrolled under a group Policy, the Policy is a certificate.
 
POLICY ANNIVERSARY:   The anniversary of the Policy Date.  

POLICY DATE:  The date from which Policy Anniversaries and Policy Years are 
measured.

POLICY LOAN RATE: The interest rate charged on Policy loans.

POLICY OWNER OR YOU: The owner of the Policy

POLICY OWNER OPTIONS: You may elect one of two options offered by Royal to 
pay Mortality and Expense Risk charges and certain tax related charges.  You 
must elect the option at the time the Policy is issued and the option cannot 
be changed once the Policy is issued.  The following options are available: 

         OPTION 1: ASSET BASED CHARGES: Under this option you elect to pay a 
         Mortality and Expense Risk charge that is deducted monthly from 
         Account Value at an annual rate of .90% in Policy Years 1 through 
         10 and at an annual rate of .50% in Policy Years 11 and beyond; a 
         Tax Expense charge that is also deducted monthly at an annual rate 
         of .40% for the first 10 Policy Years and an Unamortized Tax charge 
         that is imposed during the first 9 Policy Years on surrenders or 
         partial surrenders according to the rate set forth in "Deductions 
         and Charges - Policy Owner Options - Unamortized Tax Charge." See 
         "Deductions and Charges - Policy Owner Options."

<PAGE>
                                         12

         OPTION 2: FRONTED CHARGES: Under this option you elect to pay a 
         Mortality and Expense Risk charge that is deducted monthly from 
         Account Value at an annual rate of .65% in Policy Years 1 through 
         10 and an annual rate of .50% in Policy Years 11 and beyond and a 
         Tax Expense charge that is deducted from any Premium payment in all 
         Policy Years at an annual rate of 4.0%.  This option is not 
         available in all states.  See "Deductions and Charges - Policy 
         Owner Options."

POLICY YEAR: The twelve months between Policy Anniversaries.

ROYAL OR US:  Royal Life Insurance Company of America.

SEPARATE ACCOUNT:  For this life insurance policy, the separate acccount is 
Royal Life Insurance Company of America Separate Account Two.
 
SUB-ACCOUNT:  The subdivisions of the Separate Account.

SURRENDER CHARGE: A charge which may be assessed upon surrender of the Policy 
or partial surrenders in excess of the Annual Withdrawal Amount.

VALUATION DAY: The date on which the Sub-Account is valued.  The Valuation 
Day is every day the New York Stock Exchange is open for trading.  The value 
of the Separate Account is determined at the close of the New York Stock 
Exchange (generally 4:00 p.m. Eastern Time) on such days.

VALUATION PERIOD:  The period between the close of business on successive 
Valuation Days.

<PAGE>
                                         13
                                          
                                      SUMMARY
                                          
HOW DO I PURCHASE THE LIFE INSURANCE POLICY?


You apply for life insurance by completing an application.  If you are 
between the age of 35 and 80, you may be eligible for simplified underwriting 
without a medical examination.  If you are accepted, you pay one large single 
premium. Under certain circumstances you may be able to add additional 
premiums. 
   
For a limited time, at least 10 days after you receive your life insurance 
policy, you may cancel it without paying a surrender charge.  A longer period
is provided in certain cases.
    

WHAT IS THE DEATH BENEFIT?

 
You designate a beneficiary who will receive the death benefit if you die 
while the policy is in force. The policy pays a minimum death benefit, called 
the "face amount."  The actual death benefit may be larger than the face 
amount if the underlying investments of the policy perform well.


DOES THE POLICY HAVE CASH VALUES?


Yes.  The value of your life insurance policy will fluctuate with the 
performance of the underlying investments.  You may transfer amounts among 
your investment options, subject to restrictions.

   
WHAT TYPE OF SURRENDER CHARGE WILL I PAY?
    
   
You don't pay a sales charge when you purchase your policy.  We may charge 
you deferred sales charge when you terminate or withdraw amounts invested in 
your policy. We assess a surrender charge on amounts withdrawn that exceed 
10% of the total amounts you have paid into your policy if these amounts have 
been in your policy for less than seven years. The surrender charge is 
applied to amounts withdrawn that exceed 10% of the total amounts paid in and 
will depend on the length of time the payment you made has been in your 
policy. If the amount you paid has been in your policy:
    
X    For less than three years, the charge is 7.5%.
X    For more than three years and less than five years, the charge is 6%.
X    For more than five years and less than seven years, the charge is 4%.
X    For more than seven years and less than nine years, the charge is 2%.
   
You won't be charged a surrender charge on:
X    Payments that have been in your policy for more than nine years.
X    distributions made due to death 
    
<PAGE>
                                         14

X    most payments we make to you as part of an annuity option
   
See "Surrender Charge" for a complete description of how sales charges are 
assessed. 
    

WHAT INSURANCE CHARGES ARE ASSESSED UNDER THE POLICY?


We will deduct an amount from your policy each month to cover certain 
charges. These charges include a cost of insurance charge, a tax expense 
charge under Option 1, an administrative charge and a mortality and expense 
risk charge.  If your policy is worth less than $50,000, or if you terminate 
your policy, we will deduct an annual maintenance fee of $30.
 
You may choose to pay these charges under one of two options.  Once chosen, 
you cannot change your option:


     UNDER OPTION 1:
     X    We will deduct a mortality and expense risk charge each month at an
          annual rate of .90% during the first 10 years of your policy, and 
          thereafter at an annual rate of .50%.
     X    We will deduct a tax expense charge each month at an annual rate of 
          .40% during the first 10 years of your policy.
     X    We will deduct an unamortized tax charge during the first 9 years on
          withdrawals, according to a schedule of rates described in 
          "Deductions and Charges- Policy Owner Options - Unamortized Tax 
          Charge."

     UNDER OPTION 2: (May not be available in all states)
     X    We will deduct a mortality and expense risk charge each month at an
          annual rate of .65% during the first 10 years of your policy, and 
          thereafter at an annual rate of .50%.
     X    We will deduct a tax expense charge from your premium at an annual 
          rate of 4.0%.


WHAT FEES DO I PAY TO THE UNDERLYING INVESTMENT PORTFOLIOS?

                                          
                           ANNUAL FUND OPERATING EXPENSES
                          (as a percentage of net assets)
   
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
                                                                                              Other Expenses
                                                                        Management            (before any        Total Fund
                                                                        Fees (before any      expense            Operating
                                                                        fee waivers)          reimbursements)    Expenses (1)
- -------------------------------------------------------------------------------------------------------------------------------
 <S>                                                                    <C>                   <C>                <C>
 Hartford Bond HLS Fund                                                 0.505%                0.017%             0.522%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
    
<PAGE>
                                         15
   
<TABLE>
 <S>                                                                    <C>                   <C>                <C>
- -------------------------------------------------------------------------------------------------------------------------------
 Hartford Money Market HLS Fund                                         0.450%                0.017%             0.467%
- -------------------------------------------------------------------------------------------------------------------------------
 Hartford Mortgage Securities HLS Fund                                  0.450%                0.030%             0.480%
- -------------------------------------------------------------------------------------------------------------------------------
 Hartford Index HLS Fund                                                0.400%                0.015%             0.415%
- -------------------------------------------------------------------------------------------------------------------------------
 Hartford High Yield HLS Fund (2)                                       0.775%                0.150%             0.925%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
    
(1)  Management Fees generally represent the fees paid to the investment
     adviser or its affiliate for investment and administrative services 
     provided. Other Expenses are expenses (other than Management Fees) 
     which are deducted from the fund including legal, accounting and 
     custodian fees. For a complete description of the nature of the 
     services provided in consideration of the operating expenses deducted, 
     please see the Fund prospectuses.
   
(2)  Hartford High Yield HLS Fund is a new Fund.  "Total Fund Operating 
     Expenses" are based on annualized estimates of such expenses to be incurred
     in the current  fiscal year.  HL Investment Advisors, LLC has agreed to 
     waive its fee until the assets of the Fund (excluding assets contributed 
     by companies affiliated with HL Investments Advisors, LLC) reach $20 
     million.  After this waiver, the Management Fee would be 0.200%, Other 
     Expenses would be 0.150%, and Total Fund Operating Expenses would be 
     0.350%.
    

   
    

CAN I TAKE OUT ANY OF MY MONEY?

X    You may withdraw all or part of amounts available in your policy at
     any time.

X    Each year you may withdraw up to 10% of your payments without having
     to pay a sales charge. 

<PAGE>
                                         16

You may have to pay tax on the money you take out and, if you take money out 
before you are 59 1/2 you may have to pay a tax penalty. 
   
You may choose to convert your surrender into one of our payment options, 
without a sales charge.
    

MAY I TAKE A LOAN ON THE POLICY?


Yes.  The policy provides for two types of cash loans.  The policy secures 
the loans.  Loans may not exceed 90% of the policy's cash value.


IS IT POSSIBLE FOR THE POLICY TO TERMINATE?


Your policy could terminate if the value of the policy becomes too low to 
support the policy's monthly charges and fees.  If this occurs, Royal will 
notify you in writing.  You will then have a 61-day grace period in order for 
you to pay additional amounts to prevent the policy from terminating.

 
WHAT ABOUT TAXES?


Under current tax law, your beneficiaries will receive the death benefit free 
of federal income tax. However, you will subject to income tax if you receive 
any loans, withdrawals or other amounts from the policy, and you may be 
subject to a 10% penalty tax.  

                                          
                                          
                                      ABOUT US
                                      --------
                                          
                      ROYAL LIFE INSURANCE COMPANY OF AMERICA

   
Royal Life Insurance Company of America ("Royal") is a stock life insurance 
company engaged in the business of writing life insurance in all states of 
the United States and the District of Columbia.  Royal was originally 
incorporated under the laws of Connecticut on September 16, 1963.  Its 
offices are located in Simsbury, Connecticut; however, its mailing address is 
P.O. Box 5085, Hartford, CT  06104-5085. Royal is a wholly owned subsidiary 
of Hartford Life Insurance Company. On December 31, 1997, all of the common 
stock of Royal was purchased from Royal Maccabees Life Insurance Company.  
Royal is ultimately controlled by Hartford Financial Services Group, Inc., 
one of the largest financial service providers in the United States.
    

                                THE SEPARATE ACCOUNT
                                          
Separate Account Two ("Separate Account") is a separate account of Royal 
established on September 1, 1998 pursuant to the insurance laws of the State 
of Connecticut and it is organized as a unit investment trust registered with 
the Securities and Exchange Commission under the 

<PAGE>
                                         17

Investment Company Act of 1940. The Separate Account meets the definition of 
"separate account" under federal securities law.  Under Connecticut law, the 
assets of the Separate Account are held exclusively for the benefit of Policy 
Owners and persons entitled to payments under the Policies.  The assets of 
the Separate Account are not chargeable with liabilities arising out of any 
other business which Royal may conduct.


THE FUNDS

   
The assets of each Sub-Account are invested exclusively in shares of Class IA 
of one of the Funds. You may allocate premiums among the Funds.  We do not 
guarantee the investment results of any of the underlying Funds.  Since each 
underlying Fund has different investment objectives, each is subject to 
different risks.  These risks and the Funds' expenses are more fully 
described in the accompanying Funds' prospectus and Statement of Additional 
Information, which may be ordered from us.  The Funds' prospectus should be 
read in conjunction with this Prospectus before investing.
    
   
The Funds may not be available in all states.
    
   
The investment goals of each of the Funds are as follows:
    
   
    
HARTFORD BOND HLS FUND
   
     Seeks maximum current income consistent with preservation of capital by 
investing primarily in investment grade fixed-income securities. Up to 20% of 
the total assets of this Fund may be invested in debt securities rated in the 
highest category below investment grade ("Ba" by Moody's Investor Services, 
Inc. or "BB" by Standard & Poor's) or, if unrated, are determined to be of 
comparable quality by the Fund's investment adviser. Securities rated below 
investment grade are commonly referred to as "high yield-high risk 
securities" or "junk bonds." For more information concerning the risks 
associated with investing in such securities, please refer to the section in 
the accompanying prospectus for the Funds entitled "Hartford Bond Fund - 
Investment Policies."
    
   
    
<PAGE>
                                         18
   
    
HARTFORD HIGH YIELD HLS FUND
   
     Seeks high current income by investing in non-investment grade 
fixed-income securities.  Growth of capital is a secondary objective.  
Securities rated below investment grade are commonly referred to as 
"high yield-high risk securities" or "junk bonds."  For more information 
concerning the risks associated with investing in such securities, please 
refer to the section in the accompanying prospectus for the Funds entitled 
"Hartford High Yield HLS Fund."
    
HARTFORD INDEX HLS FUND

     Seeks to provide investment results which approximate the price and 
yield performance of publicly-traded common stocks in the aggregate, as 
represented by the Standard & Poor's 500 Composite Stock Price Index.* 
   
    
HARTFORD MORTGAGE SECURITIES HLS FUND

     Seeks maximum current income consistent with safety of principal and 
maintenance of liquidity by investing primarily in mortgage-related 
securities, including securities issued by the Government National Mortgage 
Association. 
   
    
<PAGE>
                                         19
   
    
HARTFORD MONEY MARKET HLS FUND

     Seeks maximum current income consistent with liquidity and preservation 
of capital.

*"Standard & Poor's-Registered Trademark-", "S&P-Registered Trademark-", "S&P 
500-Registered Trademark-", "Standard & Poor's 500", and "500" are trademarks 
of The McGraw-Hill Companies, Inc. and have been licensed for use by Royal.  
The Hartford Index Fund is not sponsored, endorsed, sold or promoted by 
Standard & Poor's and Standard & Poor's makes no representation regarding the 
advisability of investing in the Hartford Index Fund.
   
Each Fund continually issues an unlimited number of full and fractional 
shares of beneficial interest in the Fund.  Such shares are offered to 
separate accounts, including the Separate Account, established by Royal or 
one of its affiliated companies specifically to fund the Policies and other 
policies or contracts issued by Royal or its affiliates, as permitted by the 
Investment Company Act of 1940.
    
It is conceivable that in the future it may be disadvantageous for variable 
life insurance separate accounts and variable annuity separate accounts to 
invest in the Funds simultaneously.  Although neither Royal nor the Funds 
currently foresee any such disadvantages either to variable life insurance 
Policy Owners or variable annuity contract owners, the Funds' Board of 
Directors intends to monitor events in order to identify any material 
conflicts between variable life Policy Owners and variable annuity contract 
owners and to determine what action, if any, should be taken in response 
thereto.  If the Board of Directors were to conclude that separate funds 
should be established for variable life insurance and variable annuity 
separate accounts, Royal will bear the attendant expenses.

All investment income of, and other distributions to, each Sub-Account  
arising from the applicable Fund are reinvested in shares of that Fund at net 
asset value.  The income and both realized gains or losses on the assets of 
each Sub-Account are therefore separate and are credited to or charged 
against the Sub-Account without regard to income, gains or losses from any 
other Sub-Account or from any other business of Royal.  Royal will purchase 
shares in the Funds in connection with premiums allocated to the applicable 
Sub-Account in accordance with Policy Owners' directions and will redeem 
shares in the Funds to meet Policy  obligations or make adjustments in 
reserves, if any.  The Funds are required to redeem Fund shares at net asset 
value and to make payment within seven days.

Royal reserves the right, subject to compliance with the law as then in 
effect, to make additions to, 

<PAGE>
                                         20

deletions from, or substitutions for the Separate Account and its 
Sub-Accounts which fund the Policies.  No substitution of securities will 
take place without notice to and consent of Policy Owners and without prior 
approval of the Securities and Exchange Commission to the extent required by 
the Investment Company Act of 1940.  Subject to Policy Owner approval, Royal 
also reserves the right to end the registration under the Investment Company 
Act of 1940 of the Separate Account or any other separate accounts of which 
it is the depositor and which may fund the Policies.

Each Fund is subject to investment restrictions which may not be changed 
without the approval of a majority of the shareholders of the Fund.  See the 
Funds' prospectuses accompanying this Prospectus.


INVESTMENT ADVISER

   
    

   
HL Investment Advisors, LLC ("HL Advisors") serves as the investment adviser 
to each of the Funds.  The Hartford Investment Management Company ("HIMCO") 
serves as sub-investment advisor and provide day to day investment services.
    
   
Each Fund, except for the Hartford High Yield HLS Fund, is a separate 
Maryland corporation registered with the Securities and Exchange Commisssion 
as an open-end management investment company.  The Hartford High Yield HLS 
Fund is a diversified series of Hartford Series Fund, Inc., a Maryland 
corporation, also registered with the Securities and Exchange Commission as 
an open-end management investment company.  The shares of each Fund have been 
divided into Class IA and Class IB.  Only Class IA shares are available in 
this Annuity.
    

A full description of the Funds, their investment policies and restrictions, 
risks, charges and expenses and all other aspects of their operation is 
contained in the accompanying Funds' prospectuses which should be read in 
conjunction with this Prospectus before investing and in the Funds' Statement 
of Additional Information which may be ordered from Royal.


                                    YOUR POLICY
                                          
APPLICATION

If you wish to purchase a Policy, you must submit an application to Royal.  A 
Policy will be issued only on the lives of Insureds age 90 and under who 
supply evidence of insurability satisfactory to Royal.  Acceptance is subject 
to Royal's underwriting rules and Royal reserves the right to reject an 
application for any reason.  IF AN APPLICATION FOR A POLICY IS REJECTED, THEN 
YOUR INITIAL PREMIUM WILL BE RETURNED ALONG WITH AN ADDITIONAL AMOUNT FOR 
INTEREST, BASED ON THE CURRENT RATE BEING CREDITED BY ROYAL.  No change 
in the terms or conditions of a Policy will be made without your consent.


<PAGE>
                                         21

The Policy will be effective on the Policy Date only after Royal has received 
all outstanding delivery requirements and received the initial premium.  The 
Policy Date is the date used to determine all future cyclical transactions on 
the Policy, E.G., Monthly Activity Date, Policy Months and Policy Years.  The 
Policy Date may be prior to, or the same as, the date the Policy is issued 
("Issue Date"). 

If the Coverage Amount is over then current limits established by Royal, the 
initial payment will not be accepted with the application.  In other cases 
where Royal receives the initial payment with the application, Royal will 
provide fixed conditional insurance during underwriting according to the 
terms of conditional receipt established by Royal.  The fixed conditional 
insurance will be the insurance applied for, up to a maximum that varies by 
age.  If no fixed conditional insurance was in effect, on Policy delivery, 
Royal will require a sufficient payment to place the insurance in force.


PREMIUMS

The Policy permits you to pay a large single premium and, subject to 
restrictions, additional premiums.  You may choose a minimum initial premium 
of 80%, 90% or 100% of the Guideline Single Premium (based on the Face 
Amount). Under current underwriting rules, which are subject to change, 
applicants between ages 35 and 80 may be eligible for simplified underwriting 
without a medical examination if they meet simplified underwriting standards 
as evidenced in their responses in the application.  For applicants who are 
below age 35 or above age 80, or who do not meet simplified underwriting 
eligibility, full underwriting applies, except that substandard underwriting 
applies only in those cases that represent substandard risks according to 
customary underwriting guidelines.  

Additional premiums are allowed if they do not cause the Policy to fail to 
meet the definition of a life insurance Policy under Section 7702 of the 
Code.  The amount and frequency of additional premium payments will affect 
the Cash Value and the amount and duration of insurance.  Royal may require 
evidence of insurability for any additional premiums which increase the 
Coverage Amount. Generally, the minimum initial premium Royal will accept is 
$10,000.  Royal may accept less than $10,000 under certain circumstances. 
Premium which does not meet the tax qualification guidelines for life 
insurance under the Code will not be applied to the Policy.


ALLOCATION OF PREMIUMS

Within three business days of receipt of a completed application and the 
initial premium payment at Royal's Home Office, Royal will allocate the 
entire premium payment to the Hartford Money Market Sub-Account.  After the 
expiration of the right to cancel period, the Account Value in Hartford Money 
Market Sub-Account will be allocated among the Funds in whole percentages to 
purchase Accumulation Units in the applicable Sub-Accounts as you direct in 
the application.  Premiums received on or after the expiration of the right 
to cancel period will be allocated among the Sub-Accounts to purchase 
Accumulation Units in such Sub-Accounts as directed by you or, in the absence 
of directions, as specified in the original application.  The number of 
Accumulation 

<PAGE>
                                         22

Units in each Sub-Account to be credited to a Policy (including the initial 
allocation to Hartford Money Market Sub-Account) will be determined first by 
multiplying the premium payment by the percentage to be allocated to each 
Fund to determine the portion to be invested in the Sub-Account.  Each 
portion to be invested in each Sub-Account is then divided by the 
Accumulation Unit Value of that particular Sub-Account next computed after 
receipt of the premium payment. 


ACCUMULATION UNIT VALUES

The Accumulation Unit Value for each Sub-Account will vary to reflect the 
investment experience of the applicable Fund and will be determined on each 
Valuation Day by multiplying the Accumulation Unit Value of the particular 
Sub-Account on the preceding Valuation Day by a "Net Investment Factor" for 
that Sub-Account for the Valuation Period then ended.  The Net Investment 
Factor for each Sub-Account is the net asset value per share of the 
corresponding Fund at the end of the Valuation Period (plus the per share 
dividends or capital gains by that Fund if the ex-dividend date occurs in the 
Valuation Period then ended) divided by the net asset value per share of the 
corresponding Fund at the beginning of the Valuation Period.  Refer to the 
Funds' prospectuses accompanying this Prospectus for a description of how the 
assets of each Fund are valued, since such determination has a direct bearing 
on the Accumulation Unit Value of the Sub-Account and therefore the Account 
Value of a Policy.  See, also, "Policy Benefits and Rights -- Account Value."

All valuations in connection with a Policy, E.G., with respect to determining 
Account Value and Cash Surrender Value and in connection with Policy Loans, 
or calculation of Death Benefits, or with respect to determining the number 
of Accumulation Units to be credited to a Policy with each premium, other 
than the initial premium, will be made on the date the request or payment is 
received by Royal at its Home Office if such date is a Valuation Day; 
otherwise such determination will be made on the next succeeding date which 
is a Valuation Day.



                               DEDUCTIONS AND CHARGES
                                          
The deduction or charges associated with this Policy are subtracted, 
depending on the type of deduction or charge, from Premium payments as they 
are made, upon surrender or partial surrender of the Policy, on the Policy 
Anniversary Date or on a monthly pro rated basis from each Sub-Account 
("Deduction Amount").  

Deductions are taken from Premium payments before allocations to the 
Sub-Accounts are made.  Monthly Deduction Amounts are subtracted on the 
Policy Date and on each Monthly Activity Date after the Policy Date to cover 
charges and expenses incurred in connection with a Policy.  Each Deduction 
Amount will be subtracted pro rata from each Sub-Account such that the 
proportion of Account Value of the Policy attributable to each Sub-Account 
remains the same before and after the deduction.  The Deduction Amount will 
vary from month to month.   If the Cash Surrender Value is not sufficient to 
cover a Deduction Amount due on any Monthly Activity Date, the Policy may 
lapse.  See "Policy Benefits and Rights -- Lapse and Reinstatement." 

<PAGE>
                                         23

The Policy Owner may elect one of two options offered by Royal to pay the 
Mortality and Expense Risk charge, the Tax Expense charge and any Unamortized 
Tax charge.  Once selected, the option may not be changed.  Option 2 may not 
be available in all states.

The following chart illustrates the charges and deductions associated with 
this Policy.  For a more detailed discussion see the descriptions below:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
 DEDUCTION OR        DEDUCTED FROM ALL   WHEN DEDUCTION IS   AMOUNT DEDUCTED
 CHARGE              POLICIES            MADE
- -------------------------------------------------------------------------------
 <S>                 <C>                 <C>                 <C>
 Cost of Insurance           Yes               Monthly       Individualized
                                                             depending on age,
                                                             sex and other
                                                             factors
- -------------------------------------------------------------------------------
 Administrative              Yes               Monthly       .25% of amounts
 Charge                                                      allocated to the
                                                             Separate Account
- -------------------------------------------------------------------------------
 Annual Maintenance  Only Policies with  On the Policy       $30.00
 Fee                 an Account Value    Anniversary Date
                     of less than        or upon surrender
                     $50,000 on the      of the Policy
                     Policy Anniversary
                     Date or date of
                     surrender
- -------------------------------------------------------------------------------
 Surrender Charge    Yes                 Upon surrender or   A percentage of
                                         partial surrender   the amount
                                         of the Policy       surrendered,
                                                             depending on the
                                                             Policy Year, which
                                                             is attributable to
                                                             premiums paid
- -------------------------------------------------------------------------------
 Tax Expense Charge          Yes         Under Option 1:     Under Option 1:
                                         Monthly             .40% of Account
                                                             Value for Policy
                                         Under Option 2:     Years 1-10
                                         Receipt of premium
                                         payment             Under Option 2: 4%
                                                             of each premium
                                                             payment in all
                                                             Policy Years
- -------------------------------------------------------------------------------
 Mortality and               Yes              Monthly        Under Option 1:
 Expense Risk                                                .90% of Account
 Charge                                                      Value in Policy
                                                             Years 1-10 and
                                                             .50% 
- -------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                         24
<TABLE>
 <S>                 <C>                 <C>                 <C>
- -------------------------------------------------------------------------------
                                                             for Policy Years
                                                             11 and beyond.  
- -------------------------------------------------------------------------------
                                                             Under Option 2:
                                                             .65% of Account
                                                             Value in Policy
                                                             Years 1-10 and
                                                             .50% for Policy
                                                             years 11 and
                                                             beyond 
- -------------------------------------------------------------------------------
 Unamortized Tax     No, only under      Upon surrender or   A percentage of
 Charge              Option 1            partial surrender   the Account Value
                                         of the Policy       depending on the
                                                             Policy Year the
                                                             surrender takes
                                                             place.
- -------------------------------------------------------------------------------
</TABLE>
   
COST OF INSURANCE CHARGE:  The cost of insurance charge covers Royal's 
anticipated mortality costs for standard and substandard risks.  Current cost 
of insurance rates are lower after the tenth Policy Year and are based on 
whether 100%, 90% or 80% of the Guideline Single Premium has been paid at 
issue.  The current cost of insurance charge will not exceed the guaranteed 
cost of insurance charge.  This charge is a guaranteed maximum monthly rate 
multiplied by the Coverage Amount on the Policy Date or any Monthly Activity 
Date.  For Policies eligible for simplified underwriting, standard risks have 
a guaranteed cost of insurance rate is 125% of the 1980 Commissioners 
Standard Ordinary Smoker/Non-Smoker Mortality Table through age 90, grading 
down to 100% of the 1980 Commissioners Standard Ordinary Smoker/Non-Smoker 
Mortality Table at age 100 (age last birthday).  For Policies not eligible 
for simplified underwriting, standard risks have a guaranteed cost of 
insurance of 100% of the 1980 Commissioners Standard Ordinary 
Smoker/Non-Smoker Mortality Table. (Unisex rates may be required in some 
states.)  A table of guaranteed cost of insurance rates per $1,000 will be 
included in each Policy; however, Royal reserves the right to use rates 
less than those shown in the Table.  Substandard risks and Policies issued 
employing simplified underwriting procedures will be charged at a higher cost 
of insurance rate that will not exceed rates based on a multiple of the 1980 
Commissioners Standard Ordinary Smoker/Non-Smoker Mortality Table (age last 
birthday).  The multiple will be based on the Insured's substandard rating.
    
The Coverage Amount is first set on the Policy Date and then on each Monthly 
Activity Date.  On such days, it is the Face Amount less the Account Value 
subject to a Minimum Coverage Amount.  The Coverage Amount remains level 
between the Monthly Activity Dates.  The Coverage Amount may be adjusted to 
continue to qualify the Policies as life insurance Policies under the current 
federal tax law.  Under that law, the Minimum Coverage Amount is a stated 
percentage of the Account Value of the Policy determined on each Monthly 
Activity Date.  The percentages vary according to the attained age of the 
Insured.

<PAGE>
                                         25

EXAMPLE:

Face Amount = $100,000

Account Value on the Monthly Activity Date = $70,000
Insured's attained age = 60
Minimum Coverage Amount percentage for age 60 = 30%

On the Monthly Activity Date, the Coverage Amount is $30,000.  This is 
calculated by subtracting the Account Value on the Monthly Activity Date 
($70,000) from the Face Amount ($100,000), subject to a possible Minimum 
Coverage Amount adjustment.  This Minimum Coverage Amount is determined by 
taking a percentage of the Account Value on the Monthly Activity Date.  In 
this case, the Minimum Coverage Amount is $21,000 (30% of $70,000).  Since 
$21,000 is less than the Face Amount less the Account Value ($30,000), no 
adjustment is necessary.  Therefore, the Coverage Amount will be $30,000.

Assume that the Account Value in the above example was $90,000.  The Minimum 
Coverage Amount would be $27,000 (30% of $90,000).  Since this is greater 
than the Face Amount less the Account Value ($10,000), the Coverage Amount 
for the Policy Month is $27,000.  (For an explanation of the Death Benefit, 
see "Policy Benefits and Rights -- Death Benefit.")

Because the Account Value and, as a result, the Coverage Amount under a 
Policy may vary from month to month, the cost of insurance charge may also 
vary on each Monthly Activity Date.

ADMINISTRATIVE CHARGE:  Royal will deduct monthly from the Account Value 
attributable to the Separate Account an administrative charge equal to an 
annual rate of 0.25%.  This charge compensates Royal for administrative 
expenses incurred in the administration of  the Separate Account and the 
Policies.


ANNUAL MAINTENANCE FEE  

If the Account Value on a Policy Anniversary or on the date the Policy is 
surrendered is less than $50,000, Royal will deduct on such date an annual 
maintenance fee of $30.  This fee will help reimburse Royal for 
administrative and maintenance costs of the Policies.  The sum of the monthly 
administrative charges and the annual maintenance fee will not exceed the 
cost Royal incurs in providing administrative services under the Policies.  
Royal reserves the right to waive the Annual Maintenance Fee under certain 
conditions.


SURRENDER CHARGE

Upon surrender of the Policy or partial surrenders in excess of the Annual 
Withdrawal Amount, a Surrender Charge may be assessed.  In Policy Years 1 
through 3, this charge is 7.5% of surrendered Account Value attributable to 
premiums paid.  In Policy Years 4 through 5, this charge is 6%.  In Policy 
Years 6 through 7, this charge is 4%.   In Policy Years 8 through 9, this 
charge is 2%.  After the ninth Policy Year, there is no charge.


<PAGE>
                                         26

In determining the Surrender Charge and any Unamortized Tax charge discussed 
below, any surrender or partial surrender during the first ten Policy Years 
will be deemed first from premiums paid and then from earnings.  If an amount 
equal to all premiums paid has been withdrawn, no charge will be assessed on 
a surrender of the remaining Account Value.

The Surrender Charge is imposed to cover a portion of the sales expense 
incurred by Royal in distributing the Policies.  This expense includes agents 
commissions, advertising and the printing of prospectuses.  See "Policy 
Benefits and Rights -- Amount Payable on Surrender of the Policy."


YOUR OPTIONS

In addition to the deductions and charges described above, you, at the time 
the Policy is issued, will elect one of two options described below to pay 
charges relating to certain taxes and mortality and expense risk charges.  
The option you select may affect Policy Value. 

     OPTION 1:  ASSET-BASED CHARGES:  Under this payment option, you will pay:

MORTALITY AND EXPENSE RISK CHARGE: Royal will deduct monthly from the Account 
Value attributable to the Separate Account for Policy Years 1 through 10 a 
charge equal to an annual rate of 0.90% for the mortality risks and expense 
risks Royal assumes in relation to the variable portion of the Policies.  In 
Policy Years 11 and beyond, the charge drops to an annual rate of 0.50% for 
the mortality risks and expense risks Royal assumes in relation to the 
variable portion of the Policies.  The mortality risk assumed is that the 
cost of insurance charges specified in the Policy will be insufficient to 
meet claims. Royal also assumes a risk that the Face Amount (the minimum 
Death Benefit) will exceed the Coverage Amount on the date of death plus the 
Account Value on the date Royal receives written notice of death.  The 
expense risk assumed is that expenses incurred in issuing and administering 
the Policies will exceed the administrative charges set in the Policy.  Royal 
may profit from the mortality and expense risk charge and may use any profits 
for any proper purpose, including any difference between the cost it incurs 
in distributing the Policies and the proceeds of the Surrender Charge.  The 
mortality and expense risk charge is deducted while the Policy is in force, 
including the duration of a payment option.

TAX EXPENSE CHARGE:  Royal will deduct monthly from the Account Value a 
charge equal to an annual rate of 0.40% for the first ten Policy Years.  This 
charge compensates Royal for premium taxes imposed by various states and 
local jurisdictions and for the cost of the capitalization of certain policy 
acquisition expenses under Section 848 of the Code.  The charge includes a 
premium tax deduction of 0.25% and Section 848 costs of 0.15%.  The 0.25% 
premium tax deduction over ten Policy Years approximates Royal's average 
expenses for state and local premium taxes (2.5%).  Premium taxes vary, 
ranging from zero to more than 4.0%.  The premium tax deduction is made 
whether or not any premium tax applies.  The deduction may be higher or lower 
than the premium tax imposed.  However, Royal does not expect to make a 
profit from this deduction.  The 0.15% charge helps reimburse Royal for 
approximate expenses incurred under Section 848 of the Code. 

UNAMORTIZED TAX CHARGE:  Under this option, during the first nine Policy 
Years, an Unamortized Tax 

<PAGE>
                                         27

charge will be imposed on surrender or partial surrenders. The Unamortized 
Tax charge is shown below, as a percentage of Account Value, at the end of 
each Policy Year:

   POLICY
    YEAR          RATE
   ------         ----
     1            2.25%
     2            2.00%
     3            1.75%
     4            1.50%
     5            1.25%
     6            1.00%
     7            0.75%
     8            0.50%
     9            0.25%
     10+          0.00%

After the ninth Policy Year, no Unamortized Tax charge will be imposed. 

     OPTION 2:  FRONTED CHARGES:  Under this option, you will pay:

MORTALITY AND EXPENSE RISK CHARGE: In Policy Years 1 through 10, Royal will 
deduct monthly from the Account Value attributable to the Separate Account a 
charge equal to an annual rate of 0.65% for the mortality risks and expense 
risks Royal assumes in relation to the variable portion of the Policies.  In 
Policy Years 11 and beyond, the charge drops to an annual rate of 0.50%.  The 
mortality risk assumed is that the cost of insurance charges specified in the 
Policy will be insufficient to meet claims.  Royal also assumes a risk that 
the Face Amount (the minimum Death Benefit) will exceed the Coverage Amount 
on the date of death plus the Account Value on the date Royal receives 
written notice of death.  The expense risk assumed is that expenses incurred 
in issuing and administering the Policies will exceed the administrative 
charges set in the Policy.  Royal may profit from the mortality and expense 
risk charge and may use any profits for any proper purpose, including any 
difference between the cost it incurs in distributing the Policies and the 
proceeds of the Surrender Charge. The mortality and expense risk charge is 
deducted while the Policy is in force, including the duration of a payment 
option.

TAX EXPENSE CHARGE: Royal will deduct from Premium payments a tax expense 
charge equal to an annual rate of 4.0% for all Policy Years.  This charge 
compensates Royal for premium taxes imposed by various states and local 
jurisdictions and for the  cost of capitalization of certain policy 
acquisition expenses under Section 848 of the Code.  The charge includes a 
premium tax deduction of 2.5% and a Section 848 cost  of 1.5%.  The premium 
tax deduction approximates Royal's average expenses for state and local 
premium taxes.  Premium taxes vary, ranging from zero to more than 4.0%.  The 
premium tax deduction is made whether or not any premium tax applies.  The 
deduction may be higher or lower than the premium tax imposed.  However, 
Royal does not expect to make a profit from this deduction.  The 0.15% charge 
helps reimburse Royal for approximate expenses incurred under Section 848 of 
the Code. 

<PAGE>

                                         28

This Option may not be available in all states.

OTHER DEDUCTIONS OR CHARGES

CHARGES AGAINST THE FUNDS

The Separate Account purchases shares of the Funds at net asset value.  The 
net asset value of the Fund shares reflects investment advisory fees and 
administrative expenses already deducted from the assets of the Funds.  These 
charges are described in the Funds' prospectuses accompanying this Prospectus.


TAXES CHARGED AGAINST THE SEPARATE ACCOUNT

Currently, no charge is made to the Separate Account for federal income taxes 
that may be attributable to the Separate Account.  Royal may, however, make 
such a charge in the future.  Charges for other taxes, if any, attributable 
to the Separate Account may also be made.

                             POLICY BENEFITS AND RIGHTS
                                          
DEATH BENEFIT

While in force, the Policy provides for the payment of the Death Proceeds to 
the named beneficiary when the Insured under the Policy dies.  The Death 
Proceeds payable to the beneficiary equal the Death Benefit less any loans 
outstanding. The Death Benefit equals the greater of (1) the Face Amount or 
(2) the Account Value multiplied by a specified percentage.  The percentages 
vary according to the attained age of the Insured and are specified in the 
Policy.  Therefore, an increase in Account Value may increase the Death 
Benefit.  However, because the Death Benefit will never be less than the Face 
Amount, a decrease in Account Value may decrease the Death Benefit but never 
below the Face Amount.

     EXAMPLES:
- --------------------------------------------------------------------------
                                         A                         B
- --------------------------------------------------------------------------
 Face Amount                          $100,000                  $100,000
- --------------------------------------------------------------------------
 Insured's Age                           40                        40
- --------------------------------------------------------------------------
 Account Value on Date of Death       $46,500                   $34,000
- --------------------------------------------------------------------------
 Specified Percentage                   250%                      250%
- --------------------------------------------------------------------------


In Example A, the Death Benefit equals $116,250, I.E., the greater of 
$100,000 (the Face Amount) or $116,250 (the Account Value at the Date of 
Death of $46,500, multiplied by the specified 

<PAGE>
                                         29

percentage of 250%).  This amount less any outstanding loans constitutes the 
Death Proceeds which Royal would pay to the beneficiary.

In Example B, the death benefit is $100,000, I.E., the greater of $100,000 
(the Face Amount) or $85,000 (the Account Value of $34,000, multiplied by the 
specified percentage of 250%).

All or part of the Death Proceeds may be paid in cash or applied under a 
"Payment Option."  See "Other Matters -- Settlement Provisions."


ACCOUNT VALUE

The Account Value of a Policy will be computed on each Valuation Day.  The 
Account Value will vary to reflect the investment experience of the Funds, 
the value of the Loan Account and the monthly Deduction Amounts.  There is no 
minimum guaranteed Account Value.

The Account Value of a particular Policy is related to the net asset value of 
the Funds to which premiums on the Policy have been allocated.  The Account 
Value on any Valuation Day is calculated by multiplying the number of 
Accumulation Units credited to the Policy in each Sub-Account as of the 
Valuation Day by the Accumulation Unit Value of that Sub-Account, and then 
summing the result for all the Sub-Accounts credited to the Policy and the 
value of the Loan Account.  See "The Policy -- Accumulation Unit Values."


TRANSFER OF ACCOUNT VALUE
   
While the Policy remains in force, and subject to Royal's transfer rules then 
in effect, the Policy Owner may request that part or all of the Account Value 
of a particular Sub-Account be transferred to other Sub-Accounts.  Royal 
reserves the right to restrict the number of such transfers to no more than 
12 per Policy Year, with no two transfers being made on consecutive Valuation 
Days.  However, there are no restrictions on the number of transfers at the 
present time. Transfers may be made by written request or by calling toll 
free 1-800-862-6668 Transfers by telephone may be made by the agent of 
record or by the attorney-in-fact pursuant to a power of attorney.  Telephone 
transfers may not be permitted in some states.  The policy of Royal and its 
agents and affiliates is that they will not be responsible for losses 
resulting from acting upon telephone requests reasonably believed to be 
genuine.  Royal will employ reasonable procedures to confirm that 
instructions communicated by telephone are genuine; otherwise, Royal may be 
liable for any losses due to unauthorized or fraudulent instructions.  The 
procedures Royal follows for transactions initiated by telephone include 
requirements that callers provide certain information for identification 
purposes.  All transfer instructions by telephone are tape recorded.  Royal 
will send the Policy Owner a confirmation of the transfer within five days 
from the date of any instruction. IT IS THE RESPONSIBILITY OF THE POLICY 
OWNER TO VERIFY THE ACCURACY OF ALL CONFIRMATIONS OF TRANSFERS AND TO 
PROMPTLY ADVISE ROYAL OF ANY INACCURACIES WITHIN 30 DAYS OF RECEIPT OF THE 
CONFIRMATION.
    
Royal may modify the right to reallocate Account Value among the Sub-Accounts 
if Royal 

<PAGE>
                                         30

determines, in its sole discretion, that the exercise of that right by one or 
more Policy Owners is, or would be, to the disadvantage of other Policy 
Owners.  Any modification could be applied to transfers to or from some or 
all of the Sub-Accounts and could include, but not be limited to, the 
requirement of a minimum period between each transfer, not accepting transfer 
requests of an agent acting under the power of attorney on behalf of more 
than one Policy Owner, or limiting the dollar amount that may be transferred 
among the Sub-Accounts at one time.  These restrictions may be applied in any 
manner reasonably designed to prevent any use of the transfer right that 
Royal considers to be disadvantageous to other Policy Owners. 

As a result of a transfer, the number of Accumulation Units credited to the 
Sub-Account from which the transfer is made will be reduced by the number 
obtained by dividing the amount transferred by the Accumulation Unit Value of 
that Sub-Account on the Valuation Day Royal receives the transfer request.  
The number of Accumulation Units credited to the Sub-Account to which the 
transfer is made will be increased by the number obtained by dividing the 
amount transferred by the Accumulation Unit Value of that Sub-Account on the 
Valuation Day Royal receives the transfer request.


POLICY LOANS 

While the Policy is in effect, a Policy Owner may obtain, without the consent 
of the beneficiary (provided the designation of beneficiary is not 
irrevocable), one or both of two types of cash loans from Royal.  Both types 
of loans are secured by the Policy.  The aggregate loans (including the 
currently applied for loan) may not exceed, at the time a loan is requested, 
90% of the Cash Value.

The loan amount will be transferred pro rata from each Sub-Account 
attributable to the Policy (unless the Policy Owner specifies otherwise) to 
the Loan Account. The amounts allocated to the Loan Account will earn 
interest at a rate of 4% per annum (6% for "Preferred Loans").  The amount of 
the Loan Account that equals the difference between the Cash Value and the 
total of all premiums paid under the Policy is considered a "Preferred Loan." 
 For exchanges which take place according to IRC Section 1035(a) that have an 
outstanding loan at the time of transfer, the difference between the Account 
Value and the total of all premiums paid under the Policy is considered a 
Preferred Loan.  The loan interest rate that Royal will charge on all loans 
is 6% per annum.  The difference between the value of the Loan Account and 
the Indebtedness will be transferred on a pro-rata basis from the 
Sub-Accounts to the Loan Account on each Monthly Activity Date. The proceeds 
of a loan will be delivered to the Policy Owner within seven business days of 
Royal's receipt of the loan request.

If the aggregate outstanding loan(s) secured by the Policy exceeds the 
Account Value of the Policy less any Surrender Charges and due and unpaid 
Deduction Amount, Royal will give written notice to the Policy Owner that, 
unless Royal receives an additional payment within 61 days to reduce the 
aggregate outstanding loan(s) secured by the Policy, the Policy may lapse.

All or any part of any loan secured by a Policy may be repaid while the 
Policy is still in effect.

<PAGE>
                                         31

When loan repayments or interest payments are made, they will be allocated 
among the Sub-Account(s) in the same percentage as premiums are allocated 
(unless the Policy Owner requests a different allocation) and an amount equal 
to the payment will be deducted from the Loan Account.  Any outstanding loan 
at the end of a grace period must be repaid before the Policy will be 
reinstated.  See "Policy Benefits and Rights -- Lapse and Reinstatement."

A loan, whether or not repaid, will have a permanent effect on the Account 
Value because the investment results of each Sub-Account will apply only to 
the amount remaining in such Sub-Accounts.  The longer a loan is outstanding, 
the greater the effect is likely to be.  The effect could be favorable or 
unfavorable.  If the Sub-Accounts earn more than the annual interest rate for 
amounts held in the Loan Account, a Policy Owner's Account Value will not 
increase as rapidly as it would have had no loan been made.  If the 
Sub-Accounts earn less than the annual interest rate for amounts held in the 
Loan Account, the Policy Owner's Account Value will be greater than it would 
have been had no loan been made.  Also, if not repaid, the aggregate 
outstanding loan(s) will reduce the Death Proceeds and Cash Surrender Value 
otherwise payable.


AMOUNT PAYABLE ON SURRENDER OF THE POLICY

While the Policy is in force, you may elect, without the consent of the 
beneficiary (provided the designation of beneficiary is not irrevocable), to 
fully surrender the Policy.  Upon surrender, you will receive the Cash 
Surrender Value determined as of the day Royal receives your written request 
or the date you request whichever is later.  The Cash Surrender Value equals 
the Account Value less any Surrender Charges and any Unamortized Tax charge 
and all Indebtedness.  Royal will pay the Cash Surrender Value of the Policy 
within seven days of receipt by Royal of the written request or on the 
effective surrender date you request, whichever is later.  The Policy will 
terminate on the date of receipt of the written request, or the date you 
request the surrender to be effective, whichever is later.  For a discussion 
of the tax consequences of surrendering the Policy, see "Federal Tax 
Considerations." 

If you choose to apply the surrender proceeds to a payment option (see "Other 
Matters -- Settlement Provisions."), the Surrender Charge will not be 
imposed to the surrender proceeds applied to the option.  In other words, the 
surrender proceeds will equal the Cash Surrender Value without reduction for 
the Surrender Charge.  However, any Unamortized Tax charge, if applicable, 
will be deducted from the surrender proceeds to be applied.  In addition, 
amounts withdrawn from payment  Option 1, Option 5 or Option 6 will be 
subject to any applicable Surrender Charge.

PARTIAL SURRENDERS

While the Policy is in force, you may elect, by written request, to make 
partial surrenders from the Cash Surrender Value.  The Cash Surrender Value, 
after partial surrender, must at least equal Royal's minimum amount rules 
then in effect; otherwise, the request will be treated as a request for full 
surrender. The partial surrender will be deducted pro rata from each 
Sub-Account, unless you instruct otherwise.  The Face Amount will be reduced 
proportionate to the reduction in the Account 

<PAGE>
                                         32

Value due to the partial surrender. Partial surrenders in excess of the 
Annual Withdrawal Amount will be subject to the Surrender Charge and any 
Unamortized Tax charges.  See "Deductions and Charges --Surrender Charge," 
and "Deductions and Charges -- Policy Owner Option 1."  For a discussion of 
the tax consequences of partial surrenders, see "Federal Tax Considerations."

BENEFITS AT MATURITY

If the Insured is living on the "Maturity Date" (the anniversary of the 
Policy Date on which the Insured is age 100), on surrender of the Policy to 
Royal, Royal will pay you the Cash Surrender Value.  In such case, the Policy 
will terminate and Royal will have no further obligations under the Policy.  
(The Maturity Date may be extended by rider where approved, but see "Federal 
Tax Considerations -- Income Taxation of Policy Benefits.")

LAPSE AND REINSTATEMENT

The Policy will remain in force until the Cash Surrender Value is 
insufficient to cover the Deduction Amount due on a Monthly Activity Date.  
Royal will notify you of the deficiency in writing and will provide a 61-day 
grace period to pay an amount sufficient to cover the Deduction Amounts due 
as well as three.  The notice will indicate the amount that must be paid.

The Policy will continue through the grace period, but if no additional 
premium payment is made, it will terminate at the end of the grace period.  
If the person insured under the Policy dies during the grace period, the 
Death Proceeds payable under the Policy will be reduced by the Deduction 
Amount(s) due and unpaid.  See "Policy Benefits and Rights -- Death Benefit."

If the Policy lapses, you may apply for reinstatement of the Policy by 
payment of the reinstatement premium shown in the Policy and any applicable 
charges.  A request for reinstatement may be made within five years of lapse. 
If a loan was outstanding at the time of lapse, Royal will require repayment 
of the loan before permitting reinstatement.  In addition, Royal reserves the 
right to require evidence of insurability satisfactory to Royal.

CANCELLATION AND EXCHANGE RIGHTS

You have a limited right to return a Policy for cancellation.  If the Policy 
is returned, by mail or personal delivery to Royal or to the agent who sold 
the Policy, to be canceled within ten days after delivery of the Policy to 
you (a longer free-look period is provided in certain cases), Royal will 
return to you, within seven days, the greater of premiums paid for the Policy 
less Indebtedness or the sum of (1) the Account Value less any Indebtedness 
on the date the returned Policy is received by Royal or its agent and (2) any 
deductions under Policy or by the Funds for taxes, charges or fees.

Once the Policy is in effect, it may be exchanged, during the first 24 months 
after its issuance, for a non-variable flexible premium adjustable life 
insurance Policy offered by Royal (or an affiliated company) on the life of 
the Insured.  No evidence of insurability will be required.  The new Policy 

<PAGE>
                                         33

will have, at your election, either the same Coverage Amount as under the 
exchanged Policy on the date of exchange or the same Death Benefit.  The 
effective date, issue date and issue age will be the same as existed under 
the exchanged Policy. If a Policy loan was outstanding, the entire loan must 
be repaid.  There may be a cash adjustment required on the exchange.

SUSPENSION OF VALUATION, PAYMENTS AND TRANSFERS

Royal will suspend all procedures requiring valuation (including transfers, 
surrenders and loans) on any day a national stock exchange is closed or 
trading is restricted due to an existing emergency, as defined by the 
Securities and Exchange Commission, or on any day the Securities and Exchange 
Commission has ordered that the right of surrender of the Policies be 
suspended for the protection of Policy Owners, until such condition has ended.


                               LAST SURVIVOR POLICIES

The Policies are offered on both a single life and a "last survivor" basis. 
Policies sold on a last survivor basis operate in a manner almost identical 
to the single life version.  The most important difference is that the last 
survivor version involves two Insureds and the Death Proceeds are paid on the 
death of the last surviving Insured.  The other significant differences 
between the last survivor and single life versions are listed below.

     1.   The cost of insurance charges under the last survivor Policies are 
determined in a manner that reflects the anticipated mortality of the two 
Insureds and the fact that the Death Benefit is not payable until the death 
of the second Insured.  See the last survivor illustrations in "Appendix B."

     2.   To qualify for simplified underwriting under a last survivor 
Policy, both Insureds must meet the simplified underwriting standards.

     3.   For a last survivor Policy to be reinstated, both Insureds must be 
alive on the date of reinstatement.

     4.   The Policy provisions regarding misstatement of age or sex, suicide 
and incontestability apply to either Insured.
   
     5.   Additional tax disclosures applicable to last survivor Policies are 
provided in "Federal Tax Considerations." 
    
<PAGE>
                                         34

                                   OTHER MATTERS
                                          
VOTING RIGHTS

In accordance with its interpretation of presently applicable law, Royal will 
vote the shares of the Funds at regular and special meetings of the 
shareholders of the Funds in accordance with instructions from Policy Owners 
(or the assignee of the Policy, as the case may be) having a voting interest 
in the Separate Account.  The number of shares held in the Separate Account 
which are attributable to each Policy Owner is determined by dividing the 
Policy Owner's interest in each Sub-Account by the net asset value of the 
applicable shares of the Funds.  Royal will vote shares for which no 
instructions have been given and shares which are not attributable to Policy 
Owners (I.E., shares owned by Royal) in the same proportion as it votes 
shares for which it has received instructions.  However, if the Investment 
Company Act of 1940 or any rule promulgated thereunder should be amended, or 
if Royal's present interpretation should change and, as a result, Royal 
determines it is permitted to vote the shares of the Funds in its own right, 
it may elect to do so.

The voting interests of the Policy Owner (or the assignee) in the Funds will 
be determined as follows:  Policy Owners may cast one vote for each full or 
fractional Accumulation Unit owned under the Policy and allocated to a 
Sub-Account, the assets of which are invested in the particular Fund on the 
record date for the shareholder meeting for that Fund.  If, however, a Policy 
Owner has taken a loan secured by the Policy, amounts transferred from the 
Sub-Account(s) to the Loan Account  in connection with the loan (see "Policy 
Benefits and Rights -- Policy Loans.") will not be considered in determining 
the voting interests of the Policy Owner.  Policy Owners should review the 
Funds prospectus accompanying this Prospectus to determine matters  on which 
shareholders may vote.

Royal may, when required by state insurance regulatory authorities, disregard 
Policy Owners' voting instructions if such instructions require that the 
shares be voted so as to cause a change in the sub-classification or 
investment objective of one or more of the Funds or to approve or disapprove 
an investment advisory Policy for the Funds. 

In addition, Royal itself may disregard Policy Owners' voting instructions in 
favor of changes initiated by a Policy Owner in the investment policy or the 
investment adviser of the Funds if Royal reasonably disapproves of such 
changes. A change would be disapproved only if the proposed change is 
contrary to state law or prohibited by state regulatory authorities.  If 
Royal does disregard voting instructions, a summary of that action and the 
reasons for such action will be included in the next periodic report to 
Policy Owners.

STATEMENTS

Royal will maintain all records relating to the Separate Account and the 
Sub-Accounts.  At least once each Policy Year, Royal will send you a 
statement showing the Coverage Amount and the Account Value of the Policy 
(indicating the number of Accumulation Units credited to the Policy in each 
Sub-Account and the corresponding Accumulation Unit Value) and any 
outstanding loan secured by the Policy as of the date of the statement.  The 
statement will also show premium paid, and Deduction Amounts under the Policy 
since the last statement, and any other information required by any 
applicable law or regulation.

<PAGE>
                                         35

LIMIT ON RIGHT TO CONTEST

Royal may not contest the validity of the Policy after it has been in force 
during the Insured's lifetime for two years from the Issue Date.  If the 
Policy is reinstated, the two-year period is measured from the date of 
reinstatement. Any increase in the Coverage Amount as a result of a premium 
payment is contestable for two years from its effective date.  In addition, 
if the Insured commits suicide in the two year period, or such period as 
specified in state law, the benefit payable will be limited to the Account 
Value less any Indebtedness.

MISSTATEMENT AS TO AGE AND SEX

If the age or sex of the Insured is incorrectly stated, the Death Benefit 
will be appropriately adjusted as specified in the Policy.

SETTLEMENT PROVISIONS
   
The surrender proceeds or Death Proceeds under the Policies may be paid in a 
lump sum or may be applied to one of Royal's payment options.  The minimum 
amount that may be applied under a settlement option is $5,000, unless Royal 
consents to a lesser amount.  UNDER PAYMENT OPTIONS 2, 3 AND 4, NO SURRENDER 
OR PARTIAL SURRENDERS ARE PERMITTED AFTER PAYMENTS COMMENCE.  FULL SURRENDER 
OR PARTIAL SURRENDERS MAY BE MADE FROM PAYMENT OPTION 1 OR OPTION 6.  ONLY A 
FULL SURRENDER IS ALLOWED FROM PAYMENT OPTION 5.
    
Royal will pay interest of at least 3 1/2% per year on the Death Proceeds 
from the date of the Insured's death to the date payment is made or a payment 
option is elected.  At such times, the proceeds are not subject to the 
investment experience of the Separate Account.  

The following options are available under the Policies (Royal may offer other 
payment options):

Option 1:  Interest Income

This option offers payments of interest, at the rate Royal declares, on the 
amount applied under his option.  The interest rate will never be less than 3 
1/2% per year.

Option 2:  Life Annuity

A life annuity is an annuity payable during the lifetime of the payee and 
terminating with the last payment preceding the death of the payee.  This 
option offers the largest payment amount of any of the life annuity options, 
since there is no guarantee of a minimum number of payments nor a provision 
for a death benefit payable to a beneficiary.

<PAGE>
                                         36

It would be possible under this option for a payee to receive only one 
annuity payment if he died prior to the due date of the second annuity 
payment, two annuity payments if he died before the date of the third annuity 
payment, etc.

Option 3:  Life Annuity with 120, 180 or 240 Monthly Payments Certain

This annuity option is an annuity payable monthly during the lifetime of the 
payee with the provision that payments will be made for a minimum of 120, 180 
or 240 months, as elected.  If, at the death of the payee, payments have been 
made for less than the minimum elected number of months, then the present 
value (as of the date of the payee's death) of any remaining guaranteed 
payments will be paid in one sum to the beneficiary or beneficiaries 
designated, unless other provisions have been made and approved by Royal.

Option 4:  Joint and Last Survivor Annuity

An annuity payable monthly during the joint lifetime of the payee and a 
designated second person, and thereafter during the remaining lifetime of the 
survivor, ceasing with the last payment prior to the death of the survivor. 
Based on the options currently offered by Royal, the payee may elect that the 
payment to the survivor be less than the payment made during the joint 
lifetime of the payee and a designated second person.

It would be possible under this option for a payee and designated second 
person to receive only one payment in the event of the common or simultaneous 
death of the parties prior to the due date for the second payment and so on.

Option 5:  Payments for a Designated Period

An amount payable monthly for the number of years selected, which may be from 
five to 30 years.  Under this option, you may, at any time, request a full 
surrender and receive, within seven days, the termination value of the Policy 
as determined by Royal.

In the event of the payee's death prior to the end of the designated period, 
the present value (as of the date of the payee's death) of any remaining 
guaranteed payments will be paid in one sum to the beneficiary or 
beneficiaries designated unless other provisions have been made and approved 
by Royal.  

Option 5 is an option that does not involve life contingencies.

Option 6:  Policy Proceeds Settlement Option

Proceeds from the Death Benefit left with Royal.  These proceeds will remain 
in the Sub-Accounts to which they were allocated at the time of death, unless 
the beneficiary elects to reallocate them.

<PAGE>
                                         37

Full or partial surrenders may be made at any time.

VARIABLE AND FIXED ANNUITY PAYMENTS:  When an Annuity  is effected, unless 
otherwise specified, the surrender proceeds or Death Proceeds held in the 
Sub-Accounts will be applied to provide a variable annuity based on the pro 
rata amount in the various Sub-Accounts.  Fixed annuities options are also 
available. YOU SHOULD CONSIDER WHETHER THE ALLOCATION OF PROCEEDS AMONG 
SUB-ACCOUNTS OF THE SEPARATE ACCOUNT FOR YOUR ANNUITY PAYMENTS ARE BASED ON 
THE INVESTMENT ALTERNATIVE BEST SUITED TO YOUR  RETIREMENT NEEDS.

VARIABLE ANNUITY:  The Policy contains tables indicating the minimum dollar 
amount of the first monthly payment under the optional variable forms of 
annuity for each $1,000 of value of a Sub-Account.  The first monthly payment 
varies according to the form and type of variable payment annuity selected.  
The Policy contains variable payment annuity tables derived from the 1983(a) 
Individual Annuity Mortality Table, with ages set back one year and with an 
assumed investment rate ("A.I.R.") of 5% per annum.  The total first monthly 
variable annuity payment is determined by multiplying the proceeds value 
(expressed in thousands of dollars) of a Sub-Account by the amount of the 
first monthly payment per $1,000 of value obtained from the tables in the 
Policy.

The amount of the first monthly variable annuity payment is divided by the 
value of an annuity unit (an accounting unit of measure used to calculate the 
value of annuity payments) for the appropriate Sub-Account no earlier than 
the close of business on the fifth Valuation Day preceding the day on which 
the payment is due in order to determine the number of annuity units 
represented by the first payment.  This number of annuity units remains fixed 
during the annuity payment period and in each subsequent month the dollar 
amount of the variable annuity payment is determined by multiplying this 
fixed number of annuity units by the current annuity unit value.

LEVEL VARIABLE ANNUITY PAYMENTS WOULD BE PRODUCED IF THE INVESTMENT RATE 
REMAINED CONSTANT AND EQUAL TO THE A.I.R.  IN FACT, PAYMENTS WILL VARY UP OR 
DOWN AS THE INVESTMENT RATE VARIES UP OR DOWN RELATIVE TO THE A.I.R.

FIXED ANNUITY:  Fixed annuity payments are determined by multiplying the 
amount applied to the annuity by a rate (to be determined by Royal) which is 
no less than the rate specified in the fixed payment annuity tables in the 
Policy.  The annuity payment will remain level for the duration of the 
annuity.

Royal will make any other arrangements for income payments as may be agreed 
on.

BENEFICIARY

You name the beneficiary in the application for the Policy.  You may change 
the beneficiary (unless irrevocably named) during the Insured's lifetime by 
written request to us.  If no beneficiary is living 

<PAGE>
                                         38

when the Insured dies, the Death Proceeds will be paid to you if living; 
otherwise to your estate.

ASSIGNMENT

The Policy may be assigned as collateral for a loan or other obligation.  
Royal is not responsible for any payment made or action taken before receipt 
of written notice of such assignment.  Proof of interest must be filed with 
any claim under a collateral assignment.

DIVIDENDS

No dividends will be paid under the Policies.



                           EXECUTIVE OFFICERS AND DIRECTORS 

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
                                                   OTHER BUSINESS PROFESSION,
                          POSITION WITH ROYAL,     VOCATION OR EMPLOYMENT FOR
 NAME, AGE                YEAR OF ELECTION         PAST FIVE YEARS; OTHER
                                                   DIRECTORSHIPS
- -------------------------------------------------------------------------------
 <S>                      <C>                      <C>
 Gregory A. Boyko, 47     Senior Vice President,   Vice President and
                          1998                     Controller (1995-1997),
                          Treasurer                Hartford Life Insurance
                          Director                 Company ("Hartford");
                                                   Director (1997-Present);
                                                   Senior Vice President
                                                   (1997-Present), Chief
                                                   Financial Officer &
                                                   Treasurer (1997-1998); Vice
                                                   President & Controller
                                                   (1995-1997), Hartford Life
                                                   and Accident Insurance
                                                   Company; Senior Vice
                                                   President, Chief Financial
                                                   Officer & Treasurer (1997-
                                                   Present), Hartford Life,
                                                   Inc.; Chief Financial
                                                   Officer (1994-1995), IMG
                                                   American Life; Senior Vice
                                                   President (1992-1994),
                                                   Connecticut Mutual Life
                                                   Insurance Company.
- -------------------------------------------------------------------------------
 Lynda Godkin, 44         Senior Vice President,   Associate General Counsel
                          1998                     (1995-1996); Assistant
                          Corporate Secretary      General Counsel and
                          Director                 Secretary (1994-1995);
                                                   Counsel (1990-1994),
                                                   Hartford; Director (1997-
                                                   Present); Senior Vice
                                                   President (1997-Present);
                                                   General Counsel (1996-
                                                   Present); Corporate
                                                   Secretary (1995-Present);
                                                   Associate General Counsel
                                                   (1995-1996); Assistant
                                                   General Counsel and
                                                   Secretary (1994-1995);
                                                   Counsel (1990-1994),
                                                   Hartford Life and Accident
                                                   Insurance Company; Vice
                                                   President and General
                                                   Counsel (1997 - Present),
                                                   Hartford Life, Inc.
- -------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                         39
   
<TABLE>
 <S>                      <C>                      <C>
- -------------------------------------------------------------------------------
 Thomas M. Marra, 39      Director, 1998           Senior Vice President
                                                   (1994-1995); Vice President
                                                   (1989-1994); Actuary (1987-
                                                   1995), Hartford; Director
                                                   (1994-Present); Executive
                                                   Vice President (1995-
                                                   Present); Senior Vice
                                                   President (1994-1995);
                                                   Director, Individual Life
                                                   and Annuity Division (1994-
                                                   Present); Actuary (1987-
                                                   1997), Hartford Life and
                                                   Accident Insurance Company;
                                                   Executive Vice President,
                                                   Individual Life and
                                                   Annuities (1997-Present),
                                                   Hartford Life, Inc.
- -------------------------------------------------------------------------------
 Charles F. Shabunia, 51  Vice President, 1998     Assistant Vice President,
                          Controller               Hartford (1987-Present)
- -------------------------------------------------------------------------------
 Lowndes A. Smith, 58     President, 1998          Chief Operating Officer
                          Director                 (1989-1997), Hartford;
                                                   Director (1981-Present);
                                                   President (1989-Present);
                                                   Chief Executive Officer
                                                   (1997-Present); Chief
                                                   Operating Officer (1989-
                                                   1997), Hartford Life and
                                                   Accident Insurance Company;
                                                   Chief Executive Officer and
                                                   President and Director
                                                   (1997-Present), Hartford
                                                   Life, Inc.
- -------------------------------------------------------------------------------
 Raymond P. Welnicki, 49  Director, 1998           Vice President (1993-1994),
                                                   Hartford; Director (1994-
                                                   Present); Senior Vice
                                                   President (1995-Present);
                                                   Director, Employee Benefit
                                                   Division (1997-Present);
                                                   Vice President (1993-1995),
                                                   Hartford Life and Accident
                                                   Insurance Company;  Senior
                                                   Vice President, Employee
                                                   Benefits (1997-Present),
                                                   Hartford Life, Inc.; Board
                                                   of Directors, Ethix Corp.
- -------------------------------------------------------------------------------
 Lizabeth Zlatkus, 39     Director, 1998           Vice President (1994-1997);
                                                   Assistant Vice President
                                                   (1992-1994), Hartford;
                                                   Director (1994-Present);
                                                   Senior Vice President
                                                   (1997-Present); Vice
                                                   President (1994-1997);
                                                   Assistant Vice President
                                                   (1992-1994), Hartford Life
                                                   and Accident Insurance
                                                   Company; Vice President,
                                                   Group Life and Disability
                                                   (1997-Present), Hartford
                                                   Life, Inc.
- -------------------------------------------------------------------------------
</TABLE>
    
<PAGE>
                                         40

<TABLE>
 <S>                      <C>                      <C>
- -------------------------------------------------------------------------------
 Craig R. Raymond, 37     Senior Vice President,   Vice President (1993-1997);
                          1998                     Assistant Vice President
                          Chief Actuary            (1992-1993); Actuary (1990-
                                                   1994), Hartford; Senior
                                                   Vice President (1997-
                                                   Present); Chief Actuary
                                                   (1995-Present); Vice
                                                   President (1993-1997);
                                                   Actuary (1990-1995),
                                                   Hartford Life and Accident
                                                   Insurance Company; Vice
                                                   President and Chief Actuary
                                                   (1997-Present), Hartford
                                                   Life, Inc.
- -------------------------------------------------------------------------------
</TABLE>

Unless otherwise indicated, the principal business address of each the above 
individuals is P.O. Box 2999, Hartford, CT  06104-2999.

- ------------------------------
 * Denotes date of election to Board of Directors.
** The Hartford Financial Services Group, Inc. Affiliated Company

HOW WE SELL OUR POLICY
- ----------------------

Royal intends to sell the Policies in all jurisdictions where it is licensed 
to do business.  The Policies will be sold by life insurance sales 
representatives who represent Royal and who are registered representatives of 
Hartford Securities Distribution Company, Inc. ("HSD") or certain other 
independent, registered broker-dealers.  Any sales representative or employee 
will have been qualified to sell variable life insurance Policies under 
applicable federal and state laws.  Each broker-dealer is registered with the 
Securities and Exchange Commission under the Securities Exchange Act of 1934 
and all are members of the National Association of Securities Dealers, Inc.

HSD serves as Principal Underwriter for the securities issued with respect to 
the Separate Account.  HSD is an affiliate of Royal.  The principal business 
address of HSD is the same as that of Royal.

   
<TABLE>
<CAPTION>
The following table shows officers and directors of HSD:

NAME AND PRINCIPAL BUSINESS ADDRESS             POSITION AND OFFICES
<S>                                             <C>
Lowndes A. Smith                                President and Chief Executive Officer, Director
Thomas M. Marra                                 Executive Vice President, Director
Peter W. Cummins                                Senior Vice President
Lynda Godkin                                    Senior Vice President, General Counsel and
                                                Corporate Secretary
Donald E. Waggaman, Jr.                         Treasurer
George R. Jay                                   Controller
</TABLE>
    

The maximum sales commission payable to Royal agents, independent registered 
insurance brokers, and other registered broker-dealers is 7.0% of initial and 
subsequent premiums. 

Broker-dealers or financial institutions are compensated according to a 
schedule set forth by HSD and any applicable rules or regulations for 
variable insurance compensation.   Compensation is generally based on premium 
payments made by policyholders or contract owners.  This compensation is 
usually paid from the sales charges described in this Prospectus.

In addition, a  broker-dealer or financial institution may also receive 
additional compensation for, among other things, training, marketing or other 
services provided. HSD, its affiliates or Royal may also make compensation 
arrangements with certain broker-dealers or financial institutions based on 
total sales by the broker-dealer or financial institution of insurance 
products. These payments, which may be different for different broker-dealers 
or financial institutions, will be made by HSD, its affiliates or Royal out 
of their own assets and will not effect the amounts paid by the policyholders 
or contract owners to purchase, hold or surrender variable insurance products.

Royal may provide information on various topics to you and prospective Policy 
Owners in advertising, sales literature or other materials.  These topics may 
include the relationship between sectors of the economy and the economy as a 
whole and its effect on various securities markets, 

<PAGE>

                                         41

investment strategies and techniques (such as value investing, dollar cost 
averaging and asset allocation), the advantages and disadvantages of 
investing in tax-advantaged and taxable instruments, customer profiles and 
hypothetical purchase scenarios, financial management and tax and retirement 
planning, and variable annuities and other investment alternatives, including 
comparisons between the Policies and the characteristics of, and market for, 
such alternatives.  

SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS
- --------------------------------------------

The assets of the Separate Account are held by Royal.  The assets of the 
Separate Account are kept physically segregated and held separate and apart 
from the General Account of Royal.  Royal maintains records of all purchases 
and redemptions of shares of the Fund.  Additional protection for the assets 
of the Separate Account is afforded by Royal's blanket fidelity bond, issued 
by Aetna Casualty and Surety Company, in the aggregate of $50 million, 
covering all of the officers and employees of Royal.

<PAGE>
                                         42
                                          
                             FEDERAL TAX CONSIDERATIONS
                             --------------------------

GENERAL

SINCE THE TAX LAW IS COMPLEX AND SINCE TAX CONSEQUENCES WILL VARY ACCORDING 
TO THE ACTUAL STATUS OF THE POLICY OWNER INVOLVED, LEGAL AND TAX ADVICE MAY 
BE NEEDED BY A PERSON, EMPLOYER OR OTHER ENTITY CONTEMPLATING THE PURCHASE OF 
A POLICY DESCRIBED HEREIN.

It should be understood that any detailed description of the federal income 
tax consequences regarding the purchase of these Policies cannot be made in 
this Prospectus and that special tax rules may be applicable with respect to 
certain purchase situations not discussed herein.  In addition, no attempt is 
made here to consider any applicable state or other tax laws.  For detailed 
information, a qualified tax adviser should always be consulted.  This 
discussion of federal tax considerations is based upon Royal's understanding 
of existing Federal income tax laws as they are currently interpreted.

TAXATION OF ROYAL AND THE SEPARATE ACCOUNT

The Separate Account is taxed as a part of Royal which is taxed as a life 
insurance company under Subchapter L of the Internal Revenue Code of 1986, as 
amended (the "Code").  Accordingly, the Separate Account will not be taxed as 
a "regulated investment company" under Subchapter M of the Code.  Investment 
income and realized capital gains on the assets of the Separate Account (the 
underlying Funds) are reinvested and are taken into account in determining 
the value of the Accumulation Units (see "Policy Benefits and Right - Account 
Value").  As a result, such investment income and realized capital gains are 
automatically applied to increase reserves under the Policy.

ROYAL does not expect to incur any federal income tax on the earnings or 
realized capital gains attributable to the Separate Account.  Based upon this 
expectation, no charge is currently being made to the Separate Account for 
federal income taxes.  If Royal incurs income taxes attributable to the 
Separate Account or determines that such taxes will be incurred, it may 
assess a charge for such taxes against the Separate Account.

INCOME TAXATION OF POLICY BENEFITS

For federal income tax purposes, the Policies should be treated as life 
insurance contracts under Section 7702 of the Code.  The death benefit under 
a life insurance contract is generally excluded from the gross income of the 
beneficiary.  Also, a life insurance Policy Owner is generally not taxed on 
increments in the contract value until the Policy is partially or completely 
surrendered.  Section 7702 limits the amount of premiums that may be invested 
in a Policy that is treated as life insurance.  Royal intends to monitor 
premium levels to assure compliance with the Section 7702 requirements.

<PAGE>
                                         43

During the first fifteen Policy Years, an "income first" rule generally 
applies to distributions of cash required to be made under Code Section 7702 
because of a reduction in benefits under the Policy.

The Maturity Date Extension Rider allows a Policy Owner to extend the 
Maturity Date to the date of the Insured's death.  If the Maturity Date of 
the Policy is extended by rider, Royal believes that the Policy will continue 
to be treated as a life insurance contract for federal income tax purposes 
after the scheduled Maturity Date.  However, due to the lack of specific 
guidance on this issue, the result is not certain.  If the Policy is not 
treated as a life insurance contract for federal income tax purposes after 
the scheduled Maturity Date, among other things, the Death Proceeds may be 
taxable to the recipient.  The Policy Owner should consult a qualified tax 
adviser regarding the possible adverse tax consequences resulting from an 
extension of the scheduled Maturity Date.

LAST SURVIVOR POLICIES

Although Royal believes that the last survivor Policies are in compliance 
with Section 7702 of the Code, the manner in which Section 7702 should be 
applied to certain features of a joint survivorship life insurance contract 
is not directly addressed by Section 7702.  In the absence of final 
regulations or other guidance issued under Section 7702, there is necessarily 
some uncertainty whether a last survivor Contract will meet the Section 7702 
definition of a life insurance contract.

MODIFIED ENDOWMENT CONTRACTS

A life insurance contract is treated as a "modified endowment contract" under 
Section 7702A of the Code if it meets the definition of life insurance in 
Section 7702 but fails the "seven-pay" test of Section 7702A.  The seven-pay 
test provides that premiums cannot be paid at a rate more rapidly than that 
allowed by the payment of seven annual premiums using specified computational 
rules provided in Section 7702A(c).  The large single premium permitted under 
the Policy does not meet the specified computational rules for the "seven-pay 
test" under Section 7702A(c).  Therefore, the Policy will generally be 
treated as a modified endowment contract for federal income tax purposes.  
However, an exchange under Section 1035 of the Code of a life insurance 
contract issued before June 21, 1988 will not cause the new Policy to be 
treated as a modified endowment contract if no additional premiums are paid 
and there is no change in the death benefit as the result of the exchange.

A contract that is classified as modified endowment contract is generally 
eligible for the beneficial tax treatment accorded to life insurance.  That 
is, the death benefit is excluded from income and increments in value are not 
subject to current taxation.  However, loans, distributions or other amounts 
received from a modified endowment contract during the life of the Insured 
will be taxed to the extent of any accumulated income in the contract 
(generally, the excess of account value over premiums paid).  Amounts that 
are taxable withdrawals will be subject to a 10% additional tax, with certain 
exceptions.

<PAGE>
                                         44

All modified endowment contracts that are issued within any calendar year to 
the same Policy Owner by one company or its affiliates shall be treated as 
one modified endowment contract in determining the taxable portion of any 
loan or distributions.

ESTATE AND GENERATION SKIPPING TAXES

When the Insured dies, the Death Proceeds will generally be includible in the 
Policy Owner's estate for purposes of federal estate tax if the last 
surviving Insured owned the Policy.  If the Policy Owner was not the last 
surviving Insured, the fair market value of the Policy would be included in 
the Policy Owner's estate upon the Policy Owner's death.  Nothing would be 
includible in the last surviving Insured's estate if he or she neither 
retained incidents of ownership at death nor had given up ownership within 
three years before death.
   
The federal estate tax is integrated with the federal gift tax under a 
unified rate schedule and unified credit which shelters up to $650,000 (1999) 
from the estate and gift tax.  The Taxpayer Relief Act of 1997 gradually 
raises the credit over the next seven years to $1,000,000.  In addition, an 
unlimited marital deduction may be available for federal estate and gift tax 
purposes. The unlimited marital deduction permits the deferral of taxes until 
the death of the surviving spouse (when the Death Proceeds would be available 
to pay taxes due and other expenses incurred).
    
   
If the Policy Owner (whether or not he or she is an Insured) transfers 
ownership of the Policy to someone two or more generations younger, the 
transfer may be subject to the generation-skipping transfer tax, the taxable 
amount being the value of the Policy.  The generation-skipping transfer tax 
provisions generally apply to transfers which would be subject to the gift 
and estate tax rules. Individuals are generally allowed an aggregate 
generation skipping transfer exemption of $1 million as adjusted for 
inflation.  Because these rules are complex, the Policy Owner should consult 
with a qualified tax adviser for specific information if ownership is passing 
to younger generations. 
    
DIVERSIFICATION REQUIREMENTS

Section 817 of the Code provides that a variable life insurance contract 
(other than a pension plan policy) will not be treated as a life insurance 
contract for any period during which the investments made by the separate 
account or underlying fund are not adequately diversified in accordance with 
regulations prescribed by the Treasury Department. If a Policy is not treated 
as a life insurance contract, the Policy Owner will be subject to income tax 
on the annual increases in cash value.

The Treasury Department has issued diversification regulations which 
generally require, among other things, that no more than 55% of the value of 
the total assets of the segregated asset account underlying a variable 
contract is represented by any one investment, no more than 70% is 
represented by any two investments, no more than 80% is represented by any 
three investments, and no more than 90% is represented by any four 
investments.  In determining whether the diversification standards are met, 
all securities of the same issuer, all interests in the same real 

<PAGE>
                                         45

property project, and all interests in the same commodity are each treated as 
a single investment.  In addition, in the case of government securities, each 
government agency or instrumentality shall be treated as a separate issuer. 

A separate account must be in compliance with the diversification standards 
on the last day of each calendar quarter or within 30 days after the quarter 
ends. If an insurance company inadvertently fails to meet the diversification 
requirements, the company may comply within a reasonable period and avoid the 
taxation of policy income on an ongoing basis.   However, either the company 
or the Policy Owner must agree to pay the tax due for the period during which 
the diversification requirements were not met.

Royal monitors the diversification of investments in the separate accounts 
and tests for diversification as required by the Code.  Royal intends to 
administer all contracts subject to the diversification requirements in a 
manner that will maintain adequate diversification.

OWNERSHIP OF THE ASSETS IN THE SEPARATE ACCOUNT

In order for a variable life insurance contract to qualify for tax deferral, 
assets in the segregated asset accounts supporting the variable contract must 
be considered to be owned by the insurance company and not by the variable 
contract owner.  The Internal Revenue Service ("IRS") has issued several 
rulings which discuss investor control.  The IRS has ruled that certain 
incidents of ownership by the contract owner, such as the ability to select 
and control investments in a separate account, will cause the contract owner 
to be treated as the owner of the assets for tax purposes.  Further, in the 
explanation to the temporary Section 817 diversification regulations, the 
Treasury Department noted that the temporary regulations "do not provide 
guidance concerning the circumstances in which investor control of the 
investments of a segregated asset account may cause the investor, rather than 
the insurance company, to be treated as the owner of the assets in the 
account."  The explanation further indicates that "the temporary regulations 
provide that in appropriate cases a segregated asset account may include 
multiple sub-accounts, but do not specify the extent to which policyholders 
may direct their investments to particular sub-accounts without being treated 
as the owners of the underlying assets.  Guidance on this and other issues 
will be provided in regulations or revenue rulings under section 817(d), 
relating to the definition of variable contract."  The final regulations 
issued under Section 817 did not provide guidance regarding investor control, 
and as of the date of this Prospectus, no other such guidance has been 
issued.  Further, Royal does not know if or in what form such guidance will 
be issued.  In addition, although regulations are generally issued with 
prospective effect, it is possible that regulations may be issued with 
retroactive effect.  Due to the lack of specific guidance regarding the issue 
of investor control, there is necessarily some uncertainty regarding whether 
a Policy Owner could be considered the owner of the assets for tax purposes.  
Royal reserves the right to modify the contracts, as necessary, to prevent 
Policy Owners from being considered the owners of the assets in the separate 
accounts.

<PAGE>
                                         46

LIFE INSURANCE PURCHASED FOR USE IN SPLIT DOLLAR ARRANGEMENTS

On January 26, 1996, the IRS released a technical advice memorandum ("TAM") 
on the taxability of life insurance policies used in certain split dollar 
arrangements.  A TAM, issued by the National Office of the IRS, provides 
advice as to the internal revenue laws, regulations, and related statutes 
with respect to a specific set of facts and a specific taxpayer.  In the TAM, 
among other things, the IRS concluded that an employee was subject to current 
taxation on the excess of the cash surrender value of the policy over the 
premiums to be returned to the employer.  Purchasers of life insurance 
policies to be used in split dollar arrangements are strongly advised to 
consult with a qualified tax adviser to determine the tax treatment resulting 
from such an arrangement.

FEDERAL INCOME TAX WITHHOLDING

If any amounts are deemed to be current taxable income to the Policy Owner, 
such amounts will be subject to federal income tax withholding and reporting, 
pursuant to the Code.

NON-INDIVIDUAL OWNERSHIP OF POLICIES

In certain circumstances, the Code limits the application of specific tax 
advantages to individual owners of life insurance contracts.  Prospective 
Policy Owners which are not individuals should consult a qualified tax 
adviser to determine the potential impact on the purchaser.

OTHER

Federal estate tax, state and local estate, inheritance and other tax 
consequences of ownership, or receipt of Policy proceeds depend on the 
circumstances of each Policy Owner or beneficiary.  A tax adviser should be 
consulted to determine the impact of these taxes.

LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

The discussion above provides general information regarding U.S. federal 
income tax consequences to life insurance purchasers that are U.S. citizens 
or residents.  Purchasers that are not U.S. citizens or residents will 
generally be subject to U.S. federal income tax and withholding on taxable 
distributions from life insurance policies at a 30% rate, unless a lower 
treaty rate applies.  In addition, purchasers may be subject to state and/or 
municipal taxes and taxes that may be imposed by the purchaser's country of 
citizenship or residence. Prospective purchasers are advised to consult with 
a qualified tax adviser regarding U.S. state, and foreign taxation with 
respect to a life insurance policy purchase.
                                          
                                 LEGAL PROCEEDINGS
                                 -----------------

There are no material legal proceedings pending to which the Separate Account 
is a party.

<PAGE>
                                         47

                                   LEGAL MATTERS
                                   -------------

Legal matters in connection with the issue and sale of flexible premium 
variable life insurance Policies described in this Prospectus and the 
organization of Royal, its authority to issue the Policies under Connecticut 
law and the validity of the forms of the Policies under Connecticut law and 
legal matters relating to the federal securities and income tax laws have 
been passed on by Lynda Godkin, Senior Vice President, General Counsel and 
Corporate Secretary of Royal.

                                     YEAR 2000
                                     ---------

Many existing computer programs were originally designed without considering 
the impact of the year 2000 and currently use only two digits to identify the 
year in the date field.  Therefore, on January 1, 2000, unless the software 
is corrected or replaced, most computers with time-sensitive software 
programs will read the "00" to be the year "1900."  This issue affects nearly 
all companies and organizations and could cause computer applications and 
systems to fail or create erroneous results for any transaction with a date 
of January 1, 2000 or later.

As a result, many companies must undertake major projects to address the year 
2000 issue and each company's costs and uncertainties will depend on a number 
of factors, including its software and hardware and the nature of the 
industry. Companies must also coordinate with other entities with which they 
electronically interact, including investment advisers, brokers, transfer 
agents, customers, creditors and other financial services institutions.  

In 1988, Royal's ultimate parent company, Hartford Financial Services Group, 
Inc. ("Hartford"), recognized the importance of the year 2000 problem and the 
potential material adverse consequences it could have on its business and 
clients.  By 1990, Hartford was addressing this problem with the aim of 
making its computer systems Year 2000 compliant by December 31, 1998.  
Hartford has replaced many of its older systems with new, state-of-the-art 
systems that are Year 2000 compliant.  Currently, many of its legacy systems 
are already processing "2000" dates.  Costs associated with these changes 
have been expensed by the company annually as they are incurred to avoid a 
significant financial impact to the company in any one year or in the future. 
 Such amounts have not been and are not expected to be material to the 
company's business, operations or financial condition. 

Royal, (through Hartford), is monitoring how other companies with which it 
does business are responding to the year 2000 problem through surveys, 
regular mailings.  In addition, it is in the process of developing a 
comprehensive contingency plan.  This plan will be fundamental if Royal or a 
company with which it conducts business experiences year 2000 difficulties 
after December 31, 1999. The failure by Royal or one its suppliers of 
financial services to achieve timely and complete compliance could have a 
material adverse effect on Royal's ability to conduct its business, including 
its ability to accurately and timely respond to customers' surrender and 
annuitization requests.

<PAGE>
                                         48

                                       EXPERTS
                                       -------
   
The audited financial statements included in this registration statement have 
been audited by PricewaterhouseCoopers LLP, independent public accountants, 
as indicated in their report with respect thereto, and are included herein 
in reliance upon the authority of said firm as experts in giving said 
reports. The principal business address of PricewaterhouseCoopers LLP, is 400 
Renaissance Center, Detroit, Michigan 48243-1507.
    
The hypothetical Policy illustrations included in this Prospectus and the 
registration statement with respect to the Separate Account have been 
approved by Michael Winterfield, FSA, MAAA, Assistant Vice President and 
Director, Individual Annuity Product Management, for ROYAL, and are included 
in reliance upon his opinion as to their reasonableness.

                               REGISTRATION STATEMENT
                               ----------------------

A registration statement has been filed with the Securities and Exchange 
Commission under the Securities Act of 1933 as amended.  This Prospectus does 
not contain all information set forth in the registration statement, its 
amendments and exhibits, to all of which reference is made for further 
information concerning the Separate Account, the Funds,  Royal, and the 
Policies.

<PAGE>
                                         49

                                     APPENDIX A
                                          
               SPECIAL INFORMATION FOR POLICIES PURCHASED IN NEW YORK
                                          

If the Policy is purchased in the State of New York, the following provisions 
of the Prospectus are amended as follows:

In the Special Terms subsection of the Prospectus, the definition of Account 
Value is deleted and the following definition is substituted:

     Account Value:  The current value of Accumulation Units plus the value 
of the Loan Account under the Policy.  In the case of a Policy Owner who 
purchases the Policy in the State of New York (the "New York Policy Owner") 
and who elects to transfer into the Fixed Account, Account Value is the 
current value of the Fixed Account plus the value of the Loan Account under 
the Policy.

The following definition is added:

     Fixed Account:  Part of the General Account of Royal to which a New York 
Policy Owner may allocate the entire Account Value.

The definition of Loan Account is deleted and the following definition is 
substituted:

     Loan Account:  An account in Royal's General Account, established for 
any amounts transferred from the Sub-Accounts or, if a New York Policy Owner, 
from the Fixed Account for requested loans.  The Loan Account credits a fixed 
rate of interest of 4% per annum that is not based on the investment 
experience of the Separate Account. 

The following is added to the Prospectus as a separate section following the 
section entitled "The Separate Account":

                                 THE FIXED ACCOUNT

THAT PORTION OF THE POLICY RELATING TO THE FIXED ACCOUNT IS NOT REGISTERED 
UNDER THE SECURITIES ACT OF 1933 ("1933 ACT") AND THE FIXED ACCOUNT IS NOT 
REGISTERED AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 
("1940 ACT"). ACCORDINGLY, NEITHER THE FIXED ACCOUNT NOR ANY INTERESTS 
THEREIN ARE SUBJECT TO THE PROVISIONS OR RESTRICTIONS OF THE 1933 ACT OR THE 
1940 ACT, AND THE DISCLOSURE REGARDING THE FIXED ACCOUNT HAS NOT BEEN 
REVIEWED BY THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION.  THE 
FOLLOWING DISCLOSURE ABOUT THE 

<PAGE>
                                         50

FIXED ACCOUNT MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF 
THE FEDERAL SECURITIES LAWS REGARDING THE ACCURACY AND COMPLETENESS OF 
DISCLOSURE.

Under the circumstances described under the heading "Transfer of Entire 
Account Value to the Fixed Account," New York Policy Owners may transfer no 
less than the entire Account Value to the Fixed Account.  Account Value 
transferred to the Fixed Account becomes part of the general assets of Royal. 
 Royal invests the assets of the General Account in accordance with 
applicable laws governing the investment of insurance company general 
accounts.

Royal currently credits interest to the Account Value transferred to the 
Fixed Account under the Policy at the Minimum Credited Rate of 3% per year, 
compounded annually.  Royal reserves the right to credit a lower minimum 
interest rate according to state law.  Royal may also credit interest at 
rates greater than the minimum Fixed Account interest rate.  There is no 
specific formula for determining the interest credited to the Account Value 
in the Fixed Account.

The following language is added to the section of the Prospectus entitled 
"Deductions and Charges -- Administrative Charges":

     No Administrative Charge is deducted from Account Value in the Fixed 
Account.

The following language is added to the section of the Prospectus entitled 
"Deductions and Charges -- Mortality and Expense Risk Charge":

     No Mortality and Expense Risk Charge is deducted from Account Value in 
the Fixed Account.

The following separate sections are added to the section of the Prospectus 
entitled "Policy Benefits":

TRANSFER OF ENTIRE ACCOUNT VALUE TO THE FIXED ACCOUNT

New York Policy Owners may transfer no less than the entire Account Value 
into the Fixed Account under the following circumstances:  (i) during the 
first 18 months following the Date of Issue, (ii) within 30 days following a 
Policy Anniversary, or (iii) within 60 days following the effective date of a 
material change in the investment policy of the Separate Account which the 
New York Policy Owner objects to.

A TRANSFER TO THE FIXED ACCOUNT MUST BE FOR THE ENTIRE ACCOUNT VALUE AND ONCE 
THE ACCOUNT VALUE HAS BEEN TRANSFERRED TO THE FIXED ACCOUNT, IT MAY NOT, 
UNDER ANY CIRCUMSTANCES, BE TRANSFERRED BACK TO THE SEPARATE ACCOUNT.

<PAGE>
                                         51

For New York Policy Owners who elect to invest in the Fixed Account, Royal 
will transfer the entire Account Value from the Separate Account to the Fixed 
Account on the Monthly Activity Date next following the date on which Royal 
received the transfer request.  The Account Value in the Fixed Account on the 
date of transfer equals the entire Account Value; plus the value of the Loan 
Account; minus the Monthly Deduction Amount applicable to the Fixed Account 
and minus the Annual Maintenance Fee, if applicable.  On each subsequent 
Monthly Activity Date, the Account Value in the Fixed Account equals the 
Account Value on the previous Monthly Activity Date; plus any premiums 
received since the last Monthly Activity Date; plus interest credited since 
the last Monthly Activity Date; minus the Monthly Deduction Amount applicable 
to the Fixed Account; minus any partial surrenders taken since the last 
Monthly Activity Date and minus any Surrender Charges deducted since the last 
Monthly Deduction Date.  On each Valuation Date (other than a Monthly 
Activity Date), the Account Value of the Fixed Account equals the Account 
Value on the previous Monthly Activity Date; plus any premiums received since 
the last Monthly Activity Date; plus any interest credited since the last 
Monthly Activity Date; minus any partial surrenders taken since the last 
Monthly Activity Date and minus any Surrender Charges deducted since the last 
Monthly Activity Date.

DEFERRED PAYMENTS

Royal reserves the right to defer payment of any Cash Surrender Values and 
loan amounts which are attributable to the Fixed Account for up to six months 
from the date of request.  If payment is deferred for more than ten days, 
Royal will pay interest at the Fixed Account Minimum Credited Interest Rate. 

<PAGE>
                                         52
                                          
                                     APPENDIX B
                                          
                             ILLUSTRATIONS OF BENEFITS
                                          
The tables in Appendix B illustrate the way in which a Policy operates.  They 
show how the death benefit and surrender value could vary over an extended 
period of time assuming hypothetical gross rates of return equal to constant 
after tax annual rates of 0%, 6% and 12%.  The tables are based on an initial 
premium of $10,000.  A male age 45, a female age 55 and a male age 65 with 
Face Amounts of $44,053, $34,014 and $20,001, respectively, are illustrated 
for the single life preferred Policy for both Policy Owner Option 1 and 
Policy Owner Option 2.  The illustrations for the last survivor preferred 
Policy assume male and female of equal ages, including age 55 and 65 for Face 
Amounts of $45,872 and $28,491.  

The death benefit and surrender value for a Policy would be different from 
those shown if the rates of return averaged 0%, 6% and 12% over a period of 
years, but also fluctuated above or below those averages for individual 
Policy Years.  They would also differ if any Policy loan were made during the 
period of time illustrated.

The tables reflect the deductions of current Policy charges for Policy Owner 
Option 1 and Policy Owner Option 2 and guaranteed Policy charges for a single 
gross interest rate.  The death benefits and surrender values would change if 
the current cost of insurance charges change.

The amounts shown for the death benefit and surrender value as of the end of 
each Policy Year take into account an average daily charge equal to an annual 
charge of 0.60% of the average daily net assets of the Funds for investment 
advisory and administrative services fees.  The gross annual investment 
return rates of 0%, 6% and 12% on the Fund's assets are equal to net annual 
investment return rates (net of the annual charge of 0.60% described above) 
of -0.60%, 5.40% and 11.40%, respectively.

The hypothetical returns shown in the tables are without any tax charges that 
may be attributable to the Separate Account in the future.  In order to 
produce after tax returns of 0%, 6%, and 12%, the Separate Account would have 
to earn a sufficient amount in excess of 0% or 6% or 12% to cover any tax 
charges (see "Deductions and Charges -- Taxes Charged Against the Separate 
Account").

The "Premium Paid Plus Interest" column of each table shows the amount which 
would accumulate if the initial premium was invested to earn interest, after 
taxes of 5% per year, compounded annually.

Royal will furnish upon request, a comparable illustration reflecting the 
proposed Insureds age, risk classification, Face Amount or initial premium 
requested, and reflecting guaranteed cost of insurance rates.  Royal will 
also furnish an additional similar illustration reflecting current cost of 
insurance rates which may be less than, but never greater than, the 
guaranteed cost of insurance rates.

<PAGE>
                                                                              53
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,897       9,872        44,053       10,816       9,792        44,053
      2            11,025          11,843      10,826        44,053       11,669      10,655        44,053
      3            11,576          12,872      11,867        44,053       12,596      11,596        44,053
      4            12,155          13,995      13,155        44,053       13,605      12,771        44,053
      5            12,763          15,218      14,398        44,053       14,704      13,890        44,053
 
      6            13,401          16,551      15,955        44,053       15,900      15,311        44,053
      7            14,071          18,003      17,438        44,053       17,204      16,645        44,053
      8            14,775          19,586      19,258        44,053       18,625      18,302        44,053
      9            15,513          21,311      21,028        44,053       20,176      19,896        44,053
     10            16,289          23,191      23,161        44,053       21,870      21,840        44,053
 
     11            17,103          25,442      25,412        44,053       23,917      23,887        44,053
     12            17,959          27,915      27,885        44,053       26,182      26,152        44,053
     13            18,856          30,641      30,611        44,053       28,695      28,665        44,053
     14            19,799          33,663      33,633        46,454       31,490      31,460        44,053
     15            20,789          36,997      36,967        49,575       34,598      34,568        46,360
 
     16            21,829          40,670      40,640        52,870       38,030      38,000        49,439
     17            22,920          44,704      44,674        57,220       41,801      41,771        53,504
     18            24,066          49,134      49,104        61,908       45,941      45,911        57,885
     19            25,270          53,999      53,999        66,959       50,488      50,488        62,605
     20            26,533          59,377      59,377        72,439       55,516      55,516        67,729
 
     25            33,864          95,181      95,181       110,409       88,983      88,983       103,220
     35            55,160         244,173     244,173       258,822      228,122     228,122       241,809
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
54
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,310       9,298       44,053        10,228       9,218       44,053
      2            11,025          10,600       9,608       44,053        10,423       9,434       44,053
      3            11,576          10,898       9,927       44,053        10,613       9,647       44,053
      4            12,155          11,205      10,407       44,053        10,797      10,005       44,053
      5            12,763          11,522      10,748       44,053        10,973      10,206       44,053
 
      6            13,401          11,848      11,300       44,053        11,140      10,599       44,053
      7            14,071          12,185      11,664       44,053        11,295      10,780       44,053
      8            14,775          12,533      12,240       44,053        11,434      11,147       44,053
      9            15,513          12,891      12,628       44,053        11,553      11,295       44,053
     10            16,289          13,260      13,230       44,053        11,650      11,620       44,053
 
     11            17,103          13,750      13,720       44,053        11,815      11,785       44,053
     12            17,959          14,260      14,230       44,053        11,955      11,925       44,053
     13            18,856          14,790      14,760       44,053        12,066      12,036       44,053
     14            19,799          15,340      15,310       44,053        12,143      12,113       44,053
     15            20,789          15,913      15,883       44,053        12,178      12,148       44,053
 
     16            21,829          16,507      16,477       44,053        12,165      12,135       44,053
     17            22,920          17,125      17,095       44,053        12,095      12,065       44,053
     18            24,066          17,768      17,738       44,053        11,953      11,923       44,053
     19            25,270          18,436      18,406       44,053        11,727      11,697       44,053
     20            26,533          19,130      19,100       44,053        11,402      11,372       44,053
 
     25            33,864          23,031      23,001       44,053         7,575       7,545       44,053
     35            55,160          33,502      33,472       44,053            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                            55
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,724       8,745       44,053         9,641       8,671       44,053
      2            11,025           9,425       8,500       44,053         9,247       8,338       44,053
      3            11,576           9,136       8,261       44,053         8,846       7,998       44,053
      4            12,155           8,854       8,160       44,053         8,437       7,774       44,053
      5            12,763           8,580       7,928       44,053         8,019       7,407       44,053
 
      6            13,401           8,313       7,868       44,053         7,588       7,179       44,053
      7            14,071           8,054       7,642       44,053         7,143       6,774       44,053
      8            14,775           7,802       7,577       44,053         6,680       6,483       44,053
      9            15,513           7,557       7,357       44,053         6,193       6,024       44,053
     10            16,289           7,319       7,289       44,053         5,681       5,651       44,053
 
     11            17,103           7,145       7,115       44,053         5,181       5,151       44,053
     12            17,959           6,974       6,944       44,053         4,641       4,611       44,053
     13            18,856           6,806       6,776       44,053         4,059       4,029       44,053
     14            19,799           6,641       6,611       44,053         3,428       3,398       44,053
     15            20,789           6,480       6,450       44,053         2,739       2,709       44,053
 
     16            21,829           6,322       6,292       44,053         1,985       1,955       44,053
     17            22,920           6,168       6,138       44,053         1,155       1,125       44,053
     18            24,066           6,016       5,986       44,053           235         205       44,053
     19            25,270           5,867       5,837       44,053            --          --           --
     20            26,533           5,721       5,691       44,053            --          --           --
 
     25            33,864           5,035       5,005       44,053            --          --           --
     35            55,160           3,852       3,822       44,053            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
56
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,530       9,750        44,053       10,443       9,663        44,053
      2            11,025          11,517      10,737        44,053       11,333      10,553        44,053
      3            11,576          12,599      11,819        44,053       12,307      11,527        44,053
      4            12,155          13,787      13,157        44,053       13,373      12,743        44,053
      5            12,763          15,089      14,459        44,053       14,543      13,913        44,053
 
      6            13,401          16,517      16,087        44,053       15,827      15,397        44,053
      7            14,071          18,084      17,654        44,053       17,235      16,805        44,053
      8            14,775          19,803      19,573        44,053       18,783      18,553        44,053
      9            15,513          21,688      21,458        44,053       20,485      20,255        44,053
     10            16,289          23,756      23,726        44,053       22,358      22,328        44,053
 
     11            17,103          26,063      26,033        44,053       24,462      24,432        44,053
     12            17,959          28,598      28,568        44,053       26,792      26,762        44,053
     13            18,856          31,400      31,370        44,588       29,377      29,347        44,053
     14            19,799          34,504      34,474        47,614       32,255      32,225        44,511
     15            20,789          37,922      37,892        50,814       35,446      35,416        47,497
 
     16            21,829          41,687      41,657        54,193       38,963      38,933        50,652
     17            22,920          45,823      45,793        58,653       42,827      42,797        54,818
     18            24,066          50,365      50,365        63,460       47,070      47,040        59,307
     19            25,270          55,386      55,386        68,679       51,729      51,729        64,144
     20            26,533          60,902      60,902        74,300       56,881      56,881        69,394
 
     25            33,864          97,625      97,625       113,245       91,170      91,170       105,757
     35            55,160         250,445     250,445       265,471      233,729     233,729       247,753
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             57
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,963       9,185       44,053         9,876       9,105       44,053
      2            11,025          10,308       9,528       44,053        10,122       9,342       44,053
      3            11,576          10,666       9,886       44,053        10,367       9,587       44,053
      4            12,155          11,038      10,408       44,053        10,610       9,980       44,053
      5            12,763          11,424      10,794       44,053        10,849      10,219       44,053
 
      6            13,401          11,824      11,394       44,053        11,084      10,654       44,053
      7            14,071          12,240      11,810       44,053        11,310      10,880       44,053
      8            14,775          12,671      12,441       44,053        11,526      11,296       44,053
      9            15,513          13,118      12,888       44,053        11,727      11,497       44,053
     10            16,289          13,583      13,553       44,053        11,911      11,881       44,053
 
     11            17,103          14,086      14,056       44,053        12,091      12,061       44,053
     12            17,959          14,609      14,579       44,053        12,246      12,216       44,053
     13            18,856          15,152      15,122       44,053        12,375      12,345       44,053
     14            19,799          15,717      15,687       44,053        12,470      12,440       44,053
     15            20,789          16,304      16,274       44,053        12,526      12,496       44,053
 
     16            21,829          16,914      16,884       44,053        12,535      12,505       44,053
     17            22,920          17,549      17,519       44,053        12,489      12,459       44,053
     18            24,066          18,208      18,178       44,053        12,374      12,344       44,053
     19            25,270          18,893      18,863       44,053        12,178      12,148       44,053
     20            26,533          19,605      19,575       44,053        11,885      11,855       44,053
 
     25            33,864          23,607      23,577       44,053         8,293       8,263       44,053
     35            55,160          34,349      34,319       44,053            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
58
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 45 MALE PREFERRED
                          INITIAL FACE AMOUNT: $44,053
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,396       8,661       44,053         9,309       8,581       44,053
      2            11,025           9,166       8,449       44,053         8,979       8,275       44,053
      3            11,576           8,941       8,241       44,053         8,639       7,961       44,053
      4            12,155           8,722       8,168       44,053         8,288       7,761       44,053
      5            12,763           8,506       7,966       44,053         7,925       7,419       44,053
 
      6            13,401           8,296       7,934       44,053         7,546       7,214       44,053
      7            14,071           8,090       7,736       44,053         7,149       6,833       44,053
      8            14,775           7,888       7,700       44,053         6,730       6,565       44,053
      9            15,513           7,691       7,507       44,053         6,285       6,129       44,053
     10            16,289           7,497       7,467       44,053         5,810       5,780       44,053
 
     11            17,103           7,319       7,289       44,053         5,310       5,280       44,053
     12            17,959           7,145       7,115       44,053         4,770       4,740       44,053
     13            18,856           6,974       6,944       44,053         4,188       4,158       44,053
     14            19,799           6,806       6,776       44,053         3,556       3,526       44,053
     15            20,789           6,642       6,612       44,053         2,868       2,838       44,053
 
     16            21,829           6,481       6,451       44,053         2,114       2,084       44,053
     17            22,920           6,323       6,293       44,053         1,285       1,255       44,053
     18            24,066           6,168       6,138       44,053           366         336       44,053
     19            25,270           6,016       5,986       44,053            --          --           --
     20            26,533           5,867       5,837       44,053            --          --           --
 
     25            33,864           5,167       5,137       44,053            --          --           --
     35            55,160           3,960       3,930       44,053            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             59
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,897       9,872        34,014       10,770       9,748        34,014
      2            11,025          11,843      10,826        34,014       11,575      10,563        34,014
      3            11,576          12,872      11,867        34,014       12,452      11,454        34,014
      4            12,155          13,995      13,155        34,014       13,410      12,579        34,014
      5            12,763          15,218      14,398        34,014       14,458      13,647        34,014
 
      6            13,401          16,551      15,955        34,014       15,603      15,017        34,014
      7            14,071          18,003      17,438        34,014       16,857      16,300        34,014
      8            14,775          19,586      19,258        34,014       18,228      17,906        34,014
      9            15,513          21,311      21,028        34,014       19,729      19,449        34,014
     10            16,289          23,191      23,161        34,014       21,376      21,346        34,014
 
     11            17,103          25,443      25,413        34,014       23,380      23,350        34,014
     12            17,959          27,944      27,914        34,014       25,617      25,587        34,014
     13            18,856          30,739      30,709        36,272       28,126      28,096        34,014
     14            19,799          33,820      33,790        39,569       30,935      30,905        36,194
     15            20,789          37,209      37,179        43,162       34,033      34,003        39,478
 
     16            21,829          40,937      40,907        47,077       37,439      37,409        43,055
     17            22,920          45,049      45,019        50,905       41,197      41,167        46,552
     18            24,066          49,587      49,557        55,042       45,345      45,315        50,332
     19            25,270          54,603      54,603        59,517       49,928      49,898        54,421
     20            26,533          60,135      60,135        65,546       54,953      54,953        59,899
 
     25            33,864          97,305      97,305       103,143       88,921      88,921        94,256
     35            55,160         250,325     250,325       262,841      225,387     225,387       236,656
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
60
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,310       9,298       34,014        10,183       9,174       34,014
      2            11,025          10,600       9,608       34,014        10,330       9,343       34,014
      3            11,576          10,898       9,927       34,014        10,469       9,506       34,014
      4            12,155          11,205      10,407       34,014        10,602       9,813       34,014
      5            12,763          11,522      10,748       34,014        10,726       9,962       34,014
 
      6            13,401          11,848      11,300       34,014        10,838      10,299       34,014
      7            14,071          12,185      11,664       34,014        10,933      10,421       34,014
      8            14,775          12,533      12,240       34,014        11,006      10,721       34,014
      9            15,513          12,891      12,628       34,014        11,049      10,792       34,014
     10            16,289          13,260      13,230       34,014        11,057      11,027       34,014
 
     11            17,103          13,750      13,720       34,014        11,117      11,087       34,014
     12            17,959          14,260      14,230       34,014        11,138      11,108       34,014
     13            18,856          14,790      14,760       34,014        11,117      11,087       34,014
     14            19,799          15,340      15,310       34,014        11,051      11,021       34,014
     15            20,789          15,913      15,883       34,014        10,929      10,899       34,014
 
     16            21,829          16,507      16,477       34,014        10,741      10,711       34,014
     17            22,920          17,125      17,095       34,014        10,465      10,435       34,014
     18            24,066          17,768      17,738       34,014        10,077      10,047       34,014
     19            25,270          18,436      18,406       34,014         9,546       9,516       34,014
     20            26,533          19,130      19,100       34,014         8,839       8,809       34,014
 
     25            33,864          23,031      23,001       34,014           937         907       34,014
     35            55,160          33,502      33,472       35,177            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             61
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,724       8,745       34,014         9,597       8,631       34,014
      2            11,025           9,425       8,500       34,014         9,155       8,255       34,014
      3            11,576           9,136       8,261       34,014         8,705       7,870       34,014
      4            12,155           8,854       8,160       34,014         8,246       7,598       34,014
      5            12,763           8,580       7,928       34,014         7,777       7,183       34,014
 
      6            13,401           8,313       7,868       34,014         7,292       6,898       34,014
      7            14,071           8,054       7,642       34,014         6,788       6,436       34,014
      8            14,775           7,802       7,577       34,014         6,258       6,071       34,014
      9            15,513           7,557       7,357       34,014         5,692       5,534       34,014
     10            16,289           7,319       7,289       34,014         5,085       5,055       34,014
 
     11            17,103           7,145       7,115       34,014         4,470       4,440       34,014
     12            17,959           6,974       6,944       34,014         3,799       3,769       34,014
     13            18,856           6,806       6,776       34,014         3,068       3,038       34,014
     14            19,799           6,641       6,611       34,014         2,273       2,243       34,014
     15            20,789           6,480       6,450       34,014         1,402       1,372       34,014
 
     16            21,829           6,322       6,292       34,014           440         410       34,014
     17            22,920           6,168       6,138       34,014            --          --           --
     18            24,066           6,016       5,986       34,014            --          --           --
     19            25,270           5,867       5,837       34,014            --          --           --
     20            26,533           5,721       5,691       34,014            --          --           --
 
     25            33,864           5,035       5,005       34,014            --          --           --
     35            55,160           3,852       3,822       34,014            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
62
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,530       9,750        34,014       10,396       9,616        34,014
      2            11,025          11,517      10,737        34,014       11,235      10,455        34,014
      3            11,576          12,599      11,819        34,014       12,156      11,376        34,014
      4            12,155          13,787      13,157        34,014       13,169      12,539        34,014
      5            12,763          15,089      14,459        34,014       14,284      13,654        34,014
 
      6            13,401          16,517      16,087        34,014       15,513      15,083        34,014
      7            14,071          18,084      17,654        34,014       16,867      16,437        34,014
      8            14,775          19,803      19,573        34,014       18,359      18,129        34,014
      9            15,513          21,688      21,458        34,014       20,007      19,777        34,014
     10            16,289          23,756      23,726        34,014       21,830      21,800        34,014
 
     11            17,103          26,068      26,038        34,014       23,890      23,860        34,014
     12            17,959          28,648      28,618        34,091       26,193      26,163        34,014
     13            18,856          31,520      31,490        37,193       28,776      28,746        34,014
     14            19,799          34,680      34,650        40,575       31,657      31,627        37,038
     15            20,789          38,156      38,126        44,261       34,827      34,797        40,399
 
     16            21,829          41,980      41,950        48,276       38,314      38,284        44,061
     17            22,920          46,197      46,167        52,202       42,160      42,130        47,641
     18            24,066          50,852      50,852        56,446       46,406      46,376        51,510
     19            25,270          56,030      56,030        61,072       51,097      51,097        55,696
     20            26,533          61,706      61,706        67,259       56,274      56,274        61,338
 
     25            33,864          99,848      99,848       105,838       91,058      91,058        96,521
     35            55,160         256,866     256,866       269,709      230,803     230,803       242,343
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             63
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,963       9,185       34,014         9,830       9,062       34,014
      2            11,025          10,308       9,528       34,014        10,026       9,246       34,014
      3            11,576          10,666       9,886       34,014        10,218       9,438       34,014
      4            12,155          11,038      10,408       34,014        10,408       9,778       34,014
      5            12,763          11,424      10,794       34,014        10,592       9,962       34,014
 
      6            13,401          11,824      11,394       34,014        10,768      10,338       34,014
      7            14,071          12,240      11,810       34,014        10,932      10,502       34,014
      8            14,775          12,671      12,441       34,014        11,078      10,848       34,014
      9            15,513          13,118      12,888       34,014        11,200      10,970       34,014
     10            16,289          13,583      13,553       34,014        11,291      11,261       34,014
 
     11            17,103          14,086      14,056       34,014        11,366      11,336       34,014
     12            17,959          14,609      14,579       34,014        11,403      11,373       34,014
     13            18,856          15,152      15,122       34,014        11,401      11,371       34,014
     14            19,799          15,717      15,687       34,014        11,355      11,325       34,014
     15            20,789          16,304      16,274       34,014        11,256      11,226       34,014
 
     16            21,829          16,914      16,884       34,014        11,092      11,062       34,014
     17            22,920          17,549      17,519       34,014        10,844      10,814       34,014
     18            24,066          18,208      18,178       34,014        10,487      10,457       34,014
     19            25,270          18,893      18,863       34,014         9,993       9,963       34,014
     20            26,533          19,605      19,575       34,014         9,326       9,296       34,014
 
     25            33,864          23,607      23,577       34,014         1,772       1,742       34,014
     35            55,160          34,349      34,319       36,066            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
64
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                         ISSUE AGE: 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $34,014
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,396       8,661       34,014         9,263       8,538       34,014
      2            11,025           9,166       8,449       34,014         8,884       8,188       34,014
      3            11,576           8,941       8,241       34,014         8,494       7,827       34,014
      4            12,155           8,722       8,168       34,014         8,091       7,576       34,014
      5            12,763           8,506       7,966       34,014         7,674       7,184       34,014
 
      6            13,401           8,296       7,934       34,014         7,239       6,920       34,014
      7            14,071           8,090       7,736       34,014         6,781       6,480       34,014
      8            14,775           7,888       7,700       34,014         6,293       6,137       34,014
      9            15,513           7,691       7,507       34,014         5,766       5,621       34,014
     10            16,289           7,497       7,467       34,014         5,194       5,164       34,014
 
     11            17,103           7,319       7,289       34,014         4,580       4,550       34,014
     12            17,959           7,145       7,115       34,014         3,909       3,879       34,014
     13            18,856           6,974       6,944       34,014         3,179       3,149       34,014
     14            19,799           6,806       6,776       34,014         2,385       2,355       34,014
     15            20,789           6,642       6,612       34,014         1,516       1,486       34,014
 
     16            21,829           6,481       6,451       34,014           555         525       34,014
     17            22,920           6,323       6,293       34,014            --          --           --
     18            24,066           6,168       6,138       34,014            --          --           --
     19            25,270           6,016       5,986       34,014            --          --           --
     20            26,533           5,867       5,837       34,014            --          --           --
 
     25            33,864           5,167       5,137       34,014            --          --           --
     35            55,160           3,960       3,930       34,014            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             65
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,897       9,872        20,001       10,684       9,664        20,001
      2            11,025          11,843      10,826        20,001       11,394      10,386        20,001
      3            11,576          12,872      11,867        20,001       12,169      11,176        20,001
      4            12,155          13,995      13,155        20,001       13,020      12,195        20,001
      5            12,763          15,218      14,398        20,001       13,963      13,158        20,001
 
      6            13,401          16,551      15,955        20,001       15,014      14,434        20,001
      7            14,071          18,003      17,438        20,343       16,197      15,645        20,001
      8            14,775          19,592      19,264        21,747       17,541      17,224        20,001
      9            15,513          21,336      21,053        23,256       19,080      18,802        20,796
     10            16,289          23,223      23,193        25,313       20,764      20,734        22,632
 
     11            17,103          25,486      25,456        27,525       22,783      22,753        24,605
     12            17,959          27,979      27,949        29,937       25,008      24,978        26,758
     13            18,856          30,702      30,672        32,850       27,437      27,407        29,357
     14            19,799          33,705      33,675        35,727       30,117      30,087        31,923
     15            20,789          36,992      36,962        39,211       33,043      33,013        35,026
 
     16            21,829          40,618      40,588        42,649       36,279      36,249        38,093
     17            22,920          44,586      44,556        46,815       39,812      39,782        41,802
     18            24,066          48,945      48,915        51,392       43,663      43,633        45,846
     19            25,270          53,734      53,734        56,420       47,854      47,824        50,247
     20            26,533          59,026      59,026        61,977       52,410      52,410        55,030
 
     25            33,864          94,418      94,418        99,138       81,777      81,777        85,866
     35            55,160         241,783     241,783       244,201      203,041     203,041       205,071
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
66
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,310       9,298       20,001        10,095       9,088       20,001
      2            11,025          10,600       9,608       20,001        10,134       9,151       20,001
      3            11,576          10,898       9,927       20,001        10,143       9,185       20,001
      4            12,155          11,205      10,407       20,001        10,117       9,335       20,001
      5            12,763          11,522      10,748       20,001        10,050       9,294       20,001
 
      6            13,401          11,848      11,300       20,001         9,932       9,406       20,001
      7            14,071          12,185      11,664       20,001         9,752       9,259       20,001
      8            14,775          12,533      12,240       20,001         9,494       9,226       20,001
      9            15,513          12,891      12,628       20,001         9,138       8,902       20,001
     10            16,289          13,260      13,230       20,001         8,662       8,632       20,001
 
     11            17,103          13,750      13,720       20,001         8,110       8,080       20,001
     12            17,959          14,260      14,230       20,001         7,383       7,353       20,001
     13            18,856          14,790      14,760       20,001         6,439       6,409       20,001
     14            19,799          15,340      15,310       20,001         5,222       5,192       20,001
     15            20,789          15,913      15,883       20,001         3,654       3,624       20,001
 
     16            21,829          16,507      16,477       20,001         1,627       1,597       20,001
     17            22,920          17,125      17,095       20,001            --          --           --
     18            24,066          17,768      17,738       20,001            --          --           --
     19            25,270          18,436      18,406       20,001            --          --           --
     20            26,533          19,130      19,100       20,086            --          --           --
 
     25            33,864          23,031      23,001       24,183            --          --           --
     35            55,160          33,530      33,500       33,865            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             67
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,724       8,745       20,001         9,505       8,549       20,001
      2            11,025           9,425       8,500       20,001         8,946       8,066       20,001
      3            11,576           9,136       8,261       20,001         8,345       7,543       20,001
      4            12,155           8,854       8,160       20,001         7,694       7,087       20,001
      5            12,763           8,580       7,928       20,001         6,985       6,449       20,001
 
      6            13,401           8,313       7,868       20,001         6,204       5,863       20,001
      7            14,071           8,054       7,642       20,001         5,332       5,049       20,001
      8            14,775           7,802       7,577       20,001         4,347       4,209       20,001
      9            15,513           7,557       7,357       20,001         3,222       3,120       20,001
     10            16,289           7,319       7,289       20,001         1,925       1,895       20,001
 
     11            17,103           7,145       7,115       20,001           428         398       20,001
     12            17,959           6,974       6,944       20,001            --          --       20,001
     13            18,856           6,806       6,776       20,001            --          --       20,001
     14            19,799           6,641       6,611       20,001            --          --       20,001
     15            20,789           6,480       6,450       20,001            --          --       20,001
 
     16            21,829           6,322       6,292       20,001            --          --       20,001
     17            22,920           6,168       6,138       20,001            --          --       20,001
     18            24,066           6,016       5,986       20,001            --          --       20,001
     19            25,270           5,867       5,837       20,001            --          --       20,001
     20            26,533           5,721       5,691       20,001            --          --       20,001
 
     25            33,864           5,035       5,005       20,001            --          --       20,001
     35            55,160           3,852       3,822       20,001            --          --       20,001
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
68
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,530       9,750        20,001       10,302       9,522        20,001
      2            11,025          11,517      10,737        20,001       11,035      10,255        20,001
      3            11,576          12,599      11,819        20,001       11,841      11,061        20,001
      4            12,155          13,787      13,157        20,001       12,732      12,102        20,001
      5            12,763          15,089      14,459        20,001       13,724      13,094        20,001
 
      6            13,401          16,517      16,087        20,001       14,840      14,410        20,001
      7            14,071          18,084      17,654        20,435       16,104      15,674        20,001
      8            14,775          19,809      19,579        21,988       17,551      17,321        20,001
      9            15,513          21,714      21,484        23,667       19,216      18,986        20,945
     10            16,289          23,789      23,759        25,930       21,049      21,019        22,943
 
     11            17,103          26,108      26,078        28,196       23,097      23,067        24,944
     12            17,959          28,662      28,632        30,668       25,353      25,323        27,127
     13            18,856          31,452      31,422        33,653       27,816      27,786        29,762
     14            19,799          34,530      34,500        36,601       30,534      30,504        32,365
     15            20,789          37,898      37,868        40,171       33,501      33,471        35,511
 
     16            21,829          41,614      41,584        43,694       36,782      36,752        38,621
     17            22,920          45,680      45,650        47,964       40,364      40,334        42,382
     18            24,066          50,147      50,147        52,654       44,269      44,239        46,482
     19            25,270          55,086      55,086        57,840       48,519      48,489        50,945
     20            26,533          60,513      60,513        63,538       53,139      53,139        55,795
 
     25            33,864          96,795      96,795       101,634       82,914      82,914        87,060
     35            55,160         247,871     247,871       250,349      205,864     205,864       207,922
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             69
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,963       9,185       20,001         9,733       8,973       20,001
      2            11,025          10,308       9,528       20,001         9,812       9,046       20,001
      3            11,576          10,666       9,886       20,001         9,864       9,094       20,001
      4            12,155          11,038      10,408       20,001         9,883       9,260       20,001
      5            12,763          11,424      10,794       20,001         9,864       9,242       20,001
 
      6            13,401          11,824      11,394       20,001         9,797       9,375       20,001
      7            14,071          12,240      11,810       20,001         9,670       9,253       20,001
      8            14,775          12,671      12,441       20,001         9,469       9,249       20,001
      9            15,513          13,118      12,888       20,001         9,174       8,960       20,001
     10            16,289          13,583      13,553       20,001         8,764       8,734       20,001
 
     11            17,103          14,086      14,056       20,001         8,226       8,196       20,001
     12            17,959          14,609      14,579       20,001         7,515       7,485       20,001
     13            18,856          15,152      15,122       20,001         6,590       6,560       20,001
     14            19,799          15,717      15,687       20,001         5,397       5,367       20,001
     15            20,789          16,304      16,274       20,001         3,859       3,829       20,001
 
     16            21,829          16,914      16,884       20,001         1,868       1,838       20,001
     17            22,920          17,549      17,519       20,001            --          --           --
     18            24,066          18,208      18,178       20,001            --          --           --
     19            25,270          18,893      18,863       20,001            --          --           --
     20            26,533          19,605      19,575       20,584            --          --           --
 
     25            33,864          23,607      23,577       24,787            --          --           --
     35            55,160          34,378      34,348       34,721            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
70
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                               SINGLE LIFE OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
                          ISSUE AGE: 65 MALE PREFERRED
                          INITIAL FACE AMOUNT: $20,001
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,396       8,661       20,001         9,164       8,447       20,001
      2            11,025           9,166       8,449       20,001         8,659       7,980       20,001
      3            11,576           8,941       8,241       20,001         8,110       7,471       20,001
      4            12,155           8,722       8,168       20,001         7,507       7,027       20,001
      5            12,763           8,506       7,966       20,001         6,841       6,401       20,001
 
      6            13,401           8,296       7,934       20,001         6,099       5,825       20,001
      7            14,071           8,090       7,736       20,001         5,261       5,021       20,001
      8            14,775           7,888       7,700       20,001         4,306       4,190       20,001
      9            15,513           7,691       7,507       20,001         3,205       3,111       20,001
     10            16,289           7,497       7,467       20,001         1,923       1,893       20,001
 
     11            17,103           7,319       7,289       20,001           427         397       20,001
     12            17,959           7,145       7,115       20,001            --          --           --
     13            18,856           6,974       6,944       20,001            --          --           --
     14            19,799           6,806       6,776       20,001            --          --           --
     15            20,789           6,642       6,612       20,001            --          --           --
 
     16            21,829           6,481       6,451       20,001            --          --           --
     17            22,920           6,323       6,293       20,001            --          --           --
     18            24,066           6,168       6,138       20,001            --          --           --
     19            25,270           6,016       5,986       20,001            --          --           --
     20            26,533           5,867       5,837       20,001            --          --           --
 
     25            33,864           5,167       5,137       20,001            --          --           --
     35            55,160           3,960       3,930       20,001            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                            71
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,965       9,939        45,872       10,965       9,939        45,872
      2            11,025          11,985      10,965        45,872       11,985      10,965        45,872
      3            11,576          13,095      12,086        45,872       13,095      12,086        45,872
      4            12,155          14,304      13,459        45,872       14,304      13,459        45,872
      5            12,763          15,620      14,795        45,872       15,620      14,795        45,872
 
      6            13,401          17,053      16,453        45,872       17,053      16,453        45,872
      7            14,071          18,612      18,043        45,872       18,612      18,043        45,872
      8            14,775          20,309      19,978        45,872       20,309      19,978        45,872
      9            15,513          22,155      21,870        45,872       22,155      21,870        45,872
     10            16,289          24,164      24,134        45,872       24,164      24,134        45,872
 
     11            17,103          26,566      26,536        45,872       26,566      26,536        45,872
     12            17,959          29,211      29,181        45,872       29,211      29,181        45,872
     13            18,856          32,130      32,100        45,872       32,130      32,100        45,872
     14            19,799          35,362      35,332        45,872       35,362      35,332        45,872
     15            20,789          38,952      38,922        45,872       38,952      38,922        45,872
 
     16            21,829          42,939      42,909        49,380       42,939      42,909        49,380
     17            22,920          47,337      47,307        53,490       47,337      47,307        53,490
     18            24,066          52,186      52,186        57,926       52,186      52,186        57,926
     19            25,270          57,570      57,570        62,750       57,570      57,570        62,750
     20            26,533          63,480      63,480        69,193       63,480      63,480        69,193
 
     25            33,864         103,143     103,143       109,331      103,143     103,143       109,331
     35            55,160         268,360     268,360       281,778      261,693     261,693       274,777
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
72
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,375       9,361       45,872        10,375       9,361       45,872
      2            11,025          10,726       9,731       45,872        10,726       9,731       45,872
      3            11,576          11,082      10,108       45,872        11,082      10,108       45,872
      4            12,155          11,442      10,640       45,872        11,442      10,640       45,872
      5            12,763          11,804      11,027       45,872        11,804      11,027       45,872
 
      6            13,401          12,167      11,615       45,872        12,167      11,615       45,872
      7            14,071          12,532      12,008       45,872        12,526      12,002       45,872
      8            14,775          12,910      12,615       45,872        12,880      12,585       45,872
      9            15,513          13,299      13,036       45,872        13,222      12,959       45,872
     10            16,289          13,702      13,672       45,872        13,547      13,517       45,872
 
     11            17,103          14,231      14,201       45,872        13,961      13,931       45,872
     12            17,959          14,782      14,752       45,872        14,354      14,324       45,872
     13            18,856          15,355      15,325       45,872        14,720      14,690       45,872
     14            19,799          15,952      15,922       45,872        15,049      15,019       45,872
     15            20,789          16,573      16,543       45,872        15,333      15,303       45,872
 
     16            21,829          17,220      17,190       45,872        15,558      15,528       45,872
     17            22,920          17,893      17,863       45,872        15,706      15,676       45,872
     18            24,066          18,593      18,563       45,872        15,753      15,723       45,872
     19            25,270          19,322      19,292       45,872        15,669      15,639       45,872
     20            26,533          20,081      20,051       45,872        15,419      15,389       45,872
 
     25            33,864          24,368      24,338       45,872         9,959       9,929       45,872
     35            55,160          36,008      35,978       45,872            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             73
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,784       8,800       45,872         9,784       8,800       45,872
      2            11,025           9,537       8,601       45,872         9,537       8,601       45,872
      3            11,576           9,286       8,397       45,872         9,286       8,397       45,872
      4            12,155           9,031       8,323       45,872         9,031       8,323       45,872
      5            12,763           8,768       8,103       45,872         8,768       8,103       45,872
 
      6            13,401           8,509       8,054       45,872         8,496       8,042       45,872
      7            14,071           8,257       7,835       45,872         8,212       7,792       45,872
      8            14,775           8,012       7,782       45,872         7,910       7,682       45,872
      9            15,513           7,773       7,568       45,872         7,584       7,384       45,872
     10            16,289           7,540       7,510       45,872         7,229       7,199       45,872
 
     11            17,103           7,372       7,342       45,872         6,893       6,863       45,872
     12            17,959           7,207       7,177       45,872         6,509       6,479       45,872
     13            18,856           7,046       7,016       45,872         6,067       6,037       45,872
     14            19,799           6,887       6,857       45,872         5,559       5,529       45,872
     15            20,789           6,731       6,701       45,872         4,969       4,939       45,872
 
     16            21,829           6,578       6,548       45,872         4,282       4,252       45,872
     17            22,920           6,428       6,398       45,872         3,472       3,442       45,872
     18            24,066           6,280       6,250       45,872         2,506       2,476       45,872
     19            25,270           6,135       6,105       45,872         1,344       1,314       45,872
     20            26,533           5,993       5,963       45,872            --          --           --
 
     25            33,864           5,321       5,291       45,872            --          --           --
     35            55,160           4,150       4,120       45,872            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
74
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,595       9,815        45,872       10,595       9,815        45,872
      2            11,025          11,654      10,874        45,872       11,654      10,874        45,872
      3            11,576          12,816      12,036        45,872       12,816      12,036        45,872
      4            12,155          14,089      13,459        45,872       14,089      13,459        45,872
      5            12,763          15,485      14,855        45,872       15,485      14,855        45,872
 
      6            13,401          17,015      16,585        45,872       17,015      16,585        45,872
      7            14,071          18,692      18,262        45,872       18,692      18,262        45,872
      8            14,775          20,530      20,300        45,872       20,530      20,300        45,872
      9            15,513          22,545      22,315        45,872       22,545      22,315        45,872
     10            16,289          24,755      24,725        45,872       24,755      24,725        45,872
 
     11            17,103          27,223      27,193        45,872       27,223      27,193        45,872
     12            17,959          29,942      29,912        45,872       29,942      29,912        45,872
     13            18,856          32,945      32,915        45,872       32,945      32,915        45,872
     14            19,799          36,273      36,243        45,872       36,273      36,243        45,872
     15            20,789          39,971      39,941        46,366       39,971      39,941        46,366
 
     16            21,829          44,066      44,036        50,675       44,066      44,036        50,675
     17            22,920          48,580      48,550        54,894       48,580      48,550        54,894
     18            24,066          53,557      53,557        59,447       53,557      53,557        59,447
     19            25,270          59,082      59,082        64,399       59,082      59,082        64,399
     20            26,533          65,148      65,148        71,010       65,148      65,148        71,010
 
     25            33,864         105,853     105,853       112,204      105,853     105,853       112,204
     35            55,160         275,411     275,411       289,181      268,568     268,568       281,995
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             75
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,025       9,245       45,872        10,025       9,245       45,872
      2            11,025          10,430       9,650       45,872        10,430       9,650       45,872
      3            11,576          10,845      10,065       45,872        10,845      10,065       45,872
      4            12,155          11,269      10,639       45,872        11,269      10,639       45,872
      5            12,763          11,701      11,071       45,872        11,701      11,071       45,872
 
      6            13,401          12,138      11,708       45,872        12,138      11,708       45,872
      7            14,071          12,585      12,155       45,872        12,579      12,149       45,872
      8            14,775          13,048      12,818       45,872        13,019      12,789       45,872
      9            15,513          13,531      13,301       45,872        13,455      13,225       45,872
     10            16,289          14,032      14,002       45,872        13,881      13,851       45,872
 
     11            17,103          14,574      14,544       45,872        14,312      14,282       45,872
     12            17,959          15,139      15,109       45,872        14,724      14,694       45,872
     13            18,856          15,727      15,697       45,872        15,109      15,079       45,872
     14            19,799          16,339      16,309       45,872        15,461      15,431       45,872
     15            20,789          16,976      16,946       45,872        15,769      15,739       45,872
 
     16            21,829          17,639      17,609       45,872        16,021      15,991       45,872
     17            22,920          18,329      18,299       45,872        16,199      16,169       45,872
     18            24,066          19,048      19,018       45,872        16,279      16,249       45,872
     19            25,270          19,795      19,765       45,872        16,234      16,204       45,872
     20            26,533          20,574      20,544       45,872        16,028      15,998       45,872
 
     25            33,864          24,970      24,940       45,872        10,942      10,912       45,872
     35            55,160          36,906      36,876       45,872            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
76
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 55 MALE PREFERRED / 55 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $45,872
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,454       8,715       45,872         9,454       8,715       45,872
      2            11,025           9,274       8,548       45,872         9,274       8,548       45,872
      3            11,576           9,087       8,376       45,872         9,087       8,376       45,872
      4            12,155           8,894       8,330       45,872         8,894       8,330       45,872
      5            12,763           8,691       8,140       45,872         8,691       8,140       45,872
 
      6            13,401           8,489       8,120       45,872         8,476       8,107       45,872
      7            14,071           8,291       7,930       45,872         8,245       7,886       45,872
      8            14,775           8,098       7,906       45,872         7,995       7,805       45,872
      9            15,513           7,908       7,720       45,872         7,719       7,534       45,872
     10            16,289           7,721       7,691       45,872         7,410       7,380       45,872
 
     11            17,103           7,550       7,520       45,872         7,073       7,043       45,872
     12            17,959           7,382       7,352       45,872         6,687       6,657       45,872
     13            18,856           7,217       7,187       45,872         6,245       6,215       45,872
     14            19,799           7,055       7,025       45,872         5,735       5,705       45,872
     15            20,789           6,896       6,866       45,872         5,146       5,116       45,872
 
     16            21,829           6,740       6,710       45,872         4,458       4,428       45,872
     17            22,920           6,587       6,557       45,872         3,649       3,619       45,872
     18            24,066           6,437       6,407       45,872         2,684       2,654       45,872
     19            25,270           6,289       6,259       45,872         1,524       1,494       45,872
     20            26,533           6,144       6,114       45,872           122          92       45,872
 
     25            33,864           5,459       5,429       45,872            --          --           --
     35            55,160           4,264       4,234       45,872            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             77
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,959       9,933        28,491       10,959       9,933        28,491
      2            11,025          11,958      10,939        28,491       11,958      10,939        28,491
      3            11,576          13,032      12,024        28,491       13,032      12,024        28,491
      4            12,155          14,190      13,347        28,491       14,187      13,344        28,491
      5            12,763          15,454      14,631        28,491       15,431      14,608        28,491
 
      6            13,401          16,833      16,235        28,491       16,774      16,176        28,491
      7            14,071          18,339      17,771        28,491       18,227      17,660        28,491
      8            14,775          19,982      19,652        28,491       19,804      19,475        28,491
      9            15,513          21,775      21,490        28,491       21,525      21,241        28,491
     10            16,289          23,732      23,702        28,491       23,417      23,387        28,491
 
     11            17,103          26,092      26,062        28,491       25,726      25,696        28,491
     12            17,959          28,737      28,707        30,748       28,328      28,298        30,310
     13            18,856          31,641      31,611        33,855       31,190      31,160        33,373
     14            19,799          34,839      34,809        36,929       34,343      34,313        36,403
     15            20,789          38,344      38,314        40,644       37,796      37,766        40,064
 
     16            21,829          42,208      42,178        44,318       41,605      41,575        43,685
     17            22,920          46,437      46,407        48,758       45,773      45,743        48,061
     18            24,066          51,058      51,058        53,610       50,328      50,328        52,844
     19            25,270          56,172      56,172        58,980       55,329      55,329        58,095
     20            26,533          61,798      61,798        64,887       60,777      60,777        63,815
 
     25            33,864          99,595      99,595       104,575       95,804      95,804       100,594
     35            55,160         258,688     258,688       261,274      238,971     238,971       241,361
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
78
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,368       9,355       28,491        10,368       9,355       28,491
      2            11,025          10,699       9,705       28,491        10,699       9,705       28,491
      3            11,576          11,017      10,044       28,491        11,017      10,044       28,491
      4            12,155          11,345      10,545       28,491        11,319      10,519       28,491
      5            12,763          11,684      10,908       28,491        11,599      10,824       28,491
 
      6            13,401          12,034      11,483       28,491        11,851      11,302       28,491
      7            14,071          12,395      11,872       28,491        12,066      11,545       28,491
      8            14,775          12,768      12,474       28,491        12,233      11,942       28,491
      9            15,513          13,153      12,890       28,491        12,339      12,078       28,491
     10            16,289          13,551      13,521       28,491        12,365      12,335       28,491
 
     11            17,103          14,074      14,044       28,491        12,397      12,367       28,491
     12            17,959          14,618      14,588       28,491        12,319      12,289       28,491
     13            18,856          15,185      15,155       28,491        12,106      12,076       28,491
     14            19,799          15,774      15,744       28,491        11,728      11,698       28,491
     15            20,789          16,388      16,358       28,491        11,145      11,115       28,491
 
     16            21,829          17,027      16,997       28,491        10,299      10,269       28,491
     17            22,920          17,693      17,663       28,491         9,109       9,079       28,491
     18            24,066          18,385      18,355       28,491         7,460       7,430       28,491
     19            25,270          19,106      19,076       28,491         5,195       5,165       28,491
     20            26,533          19,856      19,826       28,491         2,092       2,062       28,491
 
     25            33,864          24,093      24,063       28,491            --          --           --
     35            55,160          35,596      35,566       35,952            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                             79
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
 
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 1
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,778       8,795       28,491         9,778       8,795       28,491
      2            11,025           9,510       8,576       28,491         9,510       8,576       28,491
      3            11,576           9,231       8,347       28,491         9,220       8,337       28,491
      4            12,155           8,960       8,258       28,491         8,904       8,206       28,491
      5            12,763           8,696       8,036       28,491         8,554       7,904       28,491
 
      6            13,401           8,439       7,987       28,491         8,163       7,724       28,491
      7            14,071           8,189       7,770       28,491         7,717       7,321       28,491
      8            14,775           7,945       7,717       28,491         7,203       6,993       28,491
      9            15,513           7,708       7,505       28,491         6,601       6,422       28,491
     10            16,289           7,477       7,447       28,491         5,887       5,857       28,491
 
     11            17,103           7,310       7,280       28,491         5,078       5,048       28,491
     12            17,959           7,147       7,117       28,491         4,094       4,064       28,491
     13            18,856           6,986       6,956       28,491         2,896       2,866       28,491
     14            19,799           6,828       6,798       28,491         1,438       1,408       28,491
     15            20,789           6,673       6,643       28,491            --          --           --
 
     16            21,829           6,521       6,491       28,491            --          --           --
     17            22,920           6,372       6,342       28,491            --          --           --
     18            24,066           6,226       6,196       28,491            --          --           --
     19            25,270           6,082       6,052       28,491            --          --           --
     20            26,533           5,941       5,911       28,491            --          --           --
 
     25            33,864           5,273       5,243       28,491            --          --           --
     35            55,160           4,110       4,080       28,491            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
80
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 12% (11.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,589       9,809        28,491       10,589       9,809        28,491
      2            11,025          11,627      10,847        28,491       11,627      10,847        28,491
      3            11,576          12,750      11,970        28,491       12,750      11,970        28,491
      4            12,155          13,973      13,343        28,491       13,968      13,338        28,491
      5            12,763          15,317      14,687        28,491       15,289      14,659        28,491
 
      6            13,401          16,793      16,363        28,491       16,726      16,296        28,491
      7            14,071          18,414      17,984        28,491       18,294      17,864        28,491
      8            14,775          20,195      19,965        28,491       20,010      19,780        28,491
      9            15,513          22,151      21,921        28,491       21,899      21,669        28,491
     10            16,289          24,301      24,271        28,491       23,995      23,965        28,491
 
     11            17,103          26,735      26,705        28,873       26,385      26,355        28,495
     12            17,959          29,450      29,420        31,511       29,063      29,033        31,097
     13            18,856          32,427      32,397        34,696       32,000      31,970        34,239
     14            19,799          35,706      35,676        37,848       35,236      35,206        37,349
     15            20,789          39,298      39,268        41,655       38,780      38,750        41,106
 
     16            21,829          43,259      43,229        45,421       42,688      42,658        44,822
     17            22,920          47,594      47,564        49,973       46,966      46,936        49,314
     18            24,066          52,331      52,331        54,947       51,640      51,640        54,222
     19            25,270          57,573      57,573        60,451       56,772      56,772        59,610
     20            26,533          63,339      63,339        66,505       62,362      62,362        65,480
 
     25            33,864         102,079     102,079       107,183       98,303      98,303       103,217
     35            55,160         265,140     265,140       267,790      245,203     245,203       247,655
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 12%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
                                                                            81
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
     ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 6% (5.40% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500          10,018       9,238       28,491        10,018       9,238       28,491
      2            11,025          10,402       9,622       28,491        10,402       9,622       28,491
      3            11,576          10,780      10,000       28,491        10,779       9,999       28,491
      4            12,155          11,173      10,543       28,491        11,143      10,513       28,491
      5            12,763          11,581      10,951       28,491        11,490      10,860       28,491
 
      6            13,401          12,006      11,576       28,491        11,814      11,384       28,491
      7            14,071          12,447      12,017       28,491        12,108      11,678       28,491
      8            14,775          12,905      12,675       28,491        12,359      12,129       28,491
      9            15,513          13,382      13,152       28,491        12,555      12,325       28,491
     10            16,289          13,877      13,847       28,491        12,680      12,650       28,491
 
     11            17,103          14,413      14,383       28,491        12,737      12,707       28,491
     12            17,959          14,972      14,942       28,491        12,688      12,658       28,491
     13            18,856          15,553      15,523       28,491        12,509      12,479       28,491
     14            19,799          16,158      16,128       28,491        12,173      12,143       28,491
     15            20,789          16,787      16,757       28,491        11,641      11,611       28,491
 
     16            21,829          17,442      17,412       28,491        10,856      10,826       28,491
     17            22,920          18,125      18,095       28,491         9,743       9,713       28,491
     18            24,066          18,835      18,805       28,491         8,193       8,163       28,491
     19            25,270          19,574      19,544       28,491         6,054       6,024       28,491
     20            26,533          20,343      20,313       28,491         3,115       3,085       28,491
 
     25            33,864          24,688      24,658       28,491            --          --           --
     35            55,160          36,485      36,455       36,849            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 6%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>
82
- --------------------------------------------------------------------------------
 
                MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
                              LAST SURVIVOR OPTION
                             POLICY OWNER OPTION: 2
                            $10,000 INITIAL PREMIUM
              ISSUE AGES: 65 MALE PREFERRED / 65 FEMALE PREFERRED
                          INITIAL FACE AMOUNT: $28,491
 
    ASSUMING HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN OF 0% (-0.60% NET)
 
<TABLE>
<CAPTION>
                                         CURRENT CHARGES*                     GUARANTEED CHARGES**
                PREMIUMS       ------------------------------------   ------------------------------------
  END OF      ACCUMULATED                      CASH                                   CASH
  POLICY     AT 5% INTEREST      ACCOUNT     SURRENDER     DEATH        ACCOUNT     SURRENDER     DEATH
   YEAR         PER YEAR          VALUE        VALUE      BENEFIT        VALUE        VALUE      BENEFIT
  -------   ----------------   -----------   ---------   ----------   -----------   ---------   ----------
  <S>       <C>                <C>           <C>         <C>          <C>           <C>         <C>
      1            10,500           9,448       8,709       28,491         9,448       8,709       28,491
      2            11,025           9,246       8,522       28,491         9,246       8,522       28,491
      3            11,576           9,033       8,326       28,491         9,020       8,313       28,491
      4            12,155           8,825       8,265       28,491         8,764       8,208       28,491
      5            12,763           8,620       8,073       28,491         8,472       7,934       28,491
 
      6            13,401           8,420       8,053       28,491         8,135       7,780       28,491
      7            14,071           8,223       7,864       28,491         7,742       7,402       28,491
      8            14,775           8,031       7,840       28,491         7,276       7,101       28,491
      9            15,513           7,842       7,655       28,491         6,719       6,555       28,491
     10            16,289           7,657       7,627       28,491         6,047       6,017       28,491
 
     11            17,103           7,487       7,457       28,491         5,241       5,211       28,491
     12            17,959           7,320       7,290       28,491         4,261       4,231       28,491
     13            18,856           7,157       7,127       28,491         3,068       3,038       28,491
     14            19,799           6,996       6,966       28,491         1,617       1,587       28,491
     15            20,789           6,838       6,808       28,491            --          --           --
 
     16            21,829           6,683       6,653       28,491            --          --           --
     17            22,920           6,531       6,501       28,491            --          --           --
     18            24,066           6,381       6,351       28,491            --          --           --
     19            25,270           6,235       6,205       28,491            --          --           --
     20            26,533           6,091       6,061       28,491            --          --           --
 
     25            33,864           5,410       5,380       28,491            --          --           --
     35            55,160           4,224       4,194       28,491            --          --           --
</TABLE>
 
<TABLE>
 <C>  <S>
   *  THESE VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
  **  THESE VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF INSURANCE
      RATES, ADMINISTRATIVE FEES, AND MORTALITY AND EXPENSE RISK RATES.
</TABLE>
 
    THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS
THAN THOSE SHOWN. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR
A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN
APPLICABLE TO THE POLICY AVERAGE 0% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE DEATH BENEFIT,
ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD ALSO BE DIFFERENT FROM
THOSE SHOWN, DEPENDING ON THE INVESTMENT ALLOCATIONS MADE TO THE SEPARATE
ACCOUNTS AND THE RATES OF RETURN OF THE SEPARATE ACCOUNT IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, BUT VARIED ABOVE OR
BELOW THAT AVERAGE FOR THE SEPARATE ACCOUNT. NO REPRESENTATION CAN BE MADE THAT
THIS HYPOTHETICAL RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
<PAGE>

                     Royal Life Insurance Company of America
                             Statutory Balance Sheet
                                    ($000's)

<TABLE>
<CAPTION>
                                                     September 30,  December 31,
                                                          1998         1997
                                                       ----------   ----------
                                                       (unaudited)
<S>                                                  <C>            <C>

Assets
   Bonds                                               $    5,728   $    5,583
   Cash and short-terms                                     4,604        4,311
                                                       ----------   ----------
      Total invested assets                                10,332        9,894

   Investment income due or accrued                           125          106
   Other assets                                                 2           --
                                                       ----------   ----------

      Total assets                                     $   10,459   $   10,000
                                                       ==========   ==========

Liabilities and Capital and Surplus
   Taxes, licenses and fees payable                    $       12   $       --
   Federal income tax payable                                 130           --
   Other liabilities                                            8           --
                                                       ----------   ----------
      Total Liabilities                                       150           --

   Capital Stock                                            2,500        2,500
   Gross paid-in and contributed surplus                    7,569        7,500
   Unassigned Funds                                           240           --
                                                       ----------   ----------

      Total Surplus                                        10,309       10,000
                                                       ----------   ----------

      Total Liabilties and Capital and Surplus         $   10,459   $   10,000
                                                       ==========   ==========
</TABLE>
<PAGE>

                     Royal Life Insurance Company of America
                  Statutory Statement of Summary of Operations
                                    ($000's)

<TABLE>
<CAPTION>
                                                               September 30,
                                                               1998       1997
                                                            -------------------
                                                                 (unaudited)
<S>                                                         <C>        <C>
Revenues
   Premiums and annuity considerations                      $     --   $ 17,456
   Net investment income                                         429     16,799
   Other revenues                                                 10        222
                                                            --------   --------

      Total revenues                                             439     34,477

Expenses
   Death benefits                                                 --        716
   Annuity benefits                                               --      3,939
   Disability benefits                                            --         48
   Surrender benefits and other fund withdrawals                  --     33,512
   Change in reserve for life and accident and
      health policies and contracts                               --     (8,620)
   Commissions                                                    10        474
   General insurance expenses                                     --      1,169
   Taxes, licenses and fees                                       56        252
   Other expenses                                                 --         18
                                                            --------   --------

      Total expenses                                              66     31,508

   Net gain from operations before federal income tax            373      2,969

   Federal income tax                                            130        876
                                                            --------   --------

   Net gain from operations                                      243      2,093

   Net realized losses                                            --       (565)
                                                            --------   --------

   Net income                                               $    243   $  1,528
                                                            ========   ========
</TABLE>
<PAGE>

                     Royal Life Insurance Company of America
              Statutory Statement of Changes in Capital and Surplus
                                    ($000's)

<TABLE>
<CAPTION>
                                                   September 30,   December 31,
                                                        1998           1997
                                                    -----------    -----------
                                                    (unaudited)
<S>                                                 <C>            <C>

Capital and Surplus - Beginning of Period           $    10,000    $    66,723
                                                    -----------    -----------

Net income                                                  243          2,112
Change in net unrealized losses                              --        (11,295)
Change in Asset Valuation Reserve                            (3)         3,036
Change in non-admitted assets                                --             51
Paid In capital                                              69        (46,850)
Net effect of recapitalization                               --         (3,777)
                                                    -----------    -----------

Change in Capital and Surplus                               309        (56,723)
                                                    -----------    -----------

Capital and Surplus - End of Period                 $    10,309    $    10,000
                                                    ===========    ===========

</TABLE>

<PAGE>

                     Royal Life Insurance Company of America
                        Statutory Statements of Cashflow
                                    ($000's)

<TABLE>
<CAPTION>

                                                     September 30,  December 31,
                                                         1998           1997
                                                      -----------   -----------
                                                      (unaudited)
<S>                                                   <C>           <C>

Operations
   Premiums, annuity considerations and fund deposits  $        --  $    19,737
   Investment income                                           434       26,814
   Other income                                                 10          173
                                                       -----------  -----------
      Total Income                                             444       46,724
                                                       -----------  -----------

   Benefits paid                                                --       49,832
   Federal income taxes paid on operations                      --        1,155
   Other expenses                                               54        2,172
                                                       -----------  -----------
      Total benefits and expenses                               54       53,159
                                                       -----------  -----------

      Net cash from operations                                 390       (6,435)
                                                       -----------  -----------

Proceeds from investments
   Bonds                                                        --      290,444
   Common stocks                                                --       29,001
   Mortgage loans                                               --          206
   Real estate                                                  --        1,187
                                                       -----------  -----------

      Net investment proceeds                                   --      320,838
                                                       -----------  -----------

Other cash provided
   Paid-in Capital                                              69      (46,850)
   Reserves transferred                                         --     (267,772)
   Other sources                                             2,119        7,986
                                                       -----------  -----------

      Total proceeds                                         2,578        7,767
                                                       -----------  -----------

Cost of investments acquired
   Bonds                                                     2,283        4,843
   Decrease in policy loans                                     --       (3,802)
   Other                                                         2        5,321
                                                       -----------  -----------
      Total investments acquired                             2,285        6,362
                                                       -----------  -----------

Net Change in Cash and Short-Term Investments                  293        1,405

Cash and Short-Term Investments, Beginning of Year           4,311        2,906
                                                       -----------  -----------

Cash and Short-Term Investments, End of Period         $     4,604  $     4,311
                                                       ===========  ===========
</TABLE>

<PAGE>


                      ROYAL LIFE INSURANCE COMPANY OF AMERICA
                           NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 1998 (UNAUDITED)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements of Royal Life
Insurance Company of America ("Company") have been prepared in conformity with
statutory accounting practices of the National Association of Insurance
Commissioners ("NAIC") as prescribed or permitted by the Insurance Department of
the State of Connecticut.  Prescribed statutory accounting practices include a
variety of publications of the NAIC, as well as state laws, regulations and
general administrative rules.  Permitted statutory accounting practices
encompass accounting practices not so prescribed.  Certain information and note
disclosures which are normally included in statutory financial statements have
been condensed or omitted pursuant to rules and regulations of the Securities
and Exchange Commission.  The Company believes that the disclosures made are
adequate to make the information presented not misleading.  In the opinion of
management, these statements include all adjustments which were normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows for the periods presented.  For a description of
significant accounting policies, see Note A of Notes to Financial Statements in
the Company's 1997 audited financial statements.

The Company is a wholly owned subsidiary of Hartford Life Insurance Company.
Effective December 31, 1997, all of the common stock of the Company was
purchased from Royal Maccabees Life Insurance Company ("RMLIC").  Prior to the
sale, the insurance business of the Company was transferred to RMLIC as part of
a coinsurance/assumption reinsurance agreement.  Accordingly, the assets and
liabilities of the Company were transferred to RMLIC at book value.

The Company sold principally annuity contracts and certain other life insurance
products throughout most of the United States, and as of December 31, 1997 the
Company is not writing any new business.

<PAGE>

[Letterhead of PricewaterhouseCoopers LLP]

- --------------------------------------------------------------------------------

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                                   ---------

                     REPORT ON AUDIT OF FINANCIAL STATEMENTS

                         (statutory basis of accounting)

                       for the year ended December 31, 1997 

- --------------------------------------------------------------------------------

PricewaterhouseCoopers LLP


<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                                    CONTENTS
                                     ------

                                                         Pages:
                                                         ------

Report of Independent Accountants                           1

Financial Statements:

      Statement of Admitted Assets, Liabilities, Capital
        and Surplus                                         2

       Statement of Operations                              3

       Statement of Capital and Surplus                     4

       Statement of Cash Flows                              5

       Notes to Financial Statements                       6-15




<PAGE>

                      [Letterhead of PricewaterhouseCoopers LLP]

                        REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Stockholder of
Royal Life Insurance Company of America:

We have audited the accompanying statement of admitted assets, liabilities, 
capital and surplus (statutory basis of accounting) of Royal Life Insurance 
Company of America and Subsidiaries as of December 31, 1997, and the related 
statements of operations, capital and surplus and cash flows (statutory basis 
of accounting) for the year then ended. These financial statements are the 
responsibility of the Company's management. Our responsibility is to express 
an opinion on these financial statements based on our audit.


We conducted our audit in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit includes examining, on a test basis, 
evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and 
significant estimates made by management, as well as evaluating the overall 
financial statement presentation. We believe that our audit provides a 
reasonable basis for our opinion.

As described more fully in Note A to the financial statements, the Company 
prepared these financial statements using accounting practices prescribed or 
permitted by the Insurance Department of the State of Connecticut, which 
practices differ from generally accepted accounting principles. The effects 
on the financial statements of the variances between the statutory basis of 
accounting and generally accepted accounting principles, although not 
reasonably determinable, are presumed to be material.

In our opinion, because of the effects of the matter discussed in the 
preceding paragraph, the financial statements referred to above do not 
present fairly, in conformity with generally accepted accounting principles, 
the financial position of Royal Life Insurance Company of America and 
Subsidiaries as of December 31, 1997, or the results of its operations or its 
cash flows for the year then ended.


In our opinion, the financial statements referred to above present fairly, in 
all material respects, the admitted assets, liabilities, capital and surplus 
of Royal Life Insurance Company of America and Subsidiaries as of December 
31, 1997, and the results of its operations and its cash flows for the year 
then ended, on the basis of accounting described in Note A.






/s/ PricewaterhouseCoopers LLP

Detroit, Michigan
February 6, 1998


                                         1
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES
         STATEMENT OF ADMITTED ASSETS, LIABILITIES, CAPITAL AND SURPLUS
                         (statutory basis of accounting)

                             as of December 31, 1997 
                             (dollars in thousands)
                                    --------



<TABLE>
<CAPTION>
                                                                 1997  
                                                                 ----  
<S>                                                              <C>   

                          ADMITTED ASSETS

Cash and invested assets:
  Bonds                                                       $  5,583 
  Cash and short-term investments                                4,311 
                                                              -------- 
      Total cash and invested assets                             9,894 

Investment income due and accrued                                  106 
                                                              -------- 
      Total admitted assets                                   $ 10,000 
                                                              ======== 

                 LIABILITIES, CAPITAL AND SURPLUS


Liabilities, Capital and Surplus:
  Common stock, par value $100; 50,000 shares authorized,
      25,000 issued and outstanding                           $  2,500  
  Additional paid-in capital                                     7,500  
  Retained earnings                                                 --  
                                                              --------  
      Total capital and surplus                                 10,000  
                                                              --------  
      Total liabilities, capital and surplus                  $ 10,000  
                                                              ========  
</TABLE>

                     The accompanying notes are an integral
                       part of the financial statements.


                                         2
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES
                             STATEMENT OF OPERATIONS
                         (statutory basis of accounting)

                       for the year ended December 31, 1997
                             (dollars in thousands)
                                    --------


<TABLE>
<CAPTION>
                                                             1997    
                                                             ----    
<S>                                                       <C>        
Revenue:
  Premiums and annuity considerations                     $  19,492  
  Investment income, net of expenses of $375                 22,209  
  Amortization of interest maintenance reserve                  127  
                                                          ---------  
      Total revenue                                          41,828  
                                                          ---------  

Benefits and reserve changes, net:
   Decrease in future policy benefit reserves              (280,477) 
   Reserves transferred                                     267,772  
   Annuity benefits                                           5,516  
   Surrender benefits                                        43,049  
   Death benefits                                               846  
   Other benefits to policyholders and beneficiaries             61  
                                                          ---------  
      Total benefits and reserve changes                     36,767  
                                                          ---------  

Other operating expenses (income):
   Commissions, net                                             373  
   General and administrative expenses                        1,671  
   Taxes, licenses and fees                                  (1,116) 
   Other expense, net                                            65  
                                                          ---------  
      Total other operating expenses                            993  
                                                          ---------  

      Income from operations before federal
        income taxes and net realized capital losses          4,068  

Federal income tax expense                                    1,390  
                                                          ---------  
      Income before net realized capital losses               2,678  

Net realized capital losses, net of transfers to the
   interest maintenance reserve of $122, and income 
   tax benefit of $305                                         (566) 
                                                          ---------  
   Net income                                             $   2,112  
                                                          ---------  
                                                          ---------  
</TABLE>

                     The accompanying notes are an integral
                       part of the financial statements.


                                         3
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES
                        STATEMENT OF CAPITAL AND SURPLUS
                         (statutory basis of accounting)

                      for the year ended December 31, 1997 
                             (dollars in thousands)
                                    --------


<TABLE>
<CAPTION>
                                                             1997     
                                                             ----     
<S>                                                       <C>         

Common stock, beginning and end of year                   $  2,500    
                                                          --------    

Additional paid-in capital:
   Balance, beginning of year                             $ 54,350    
   Net transfer to parent                                  (46,850)   
                                                          --------    
   Balance, end of year                                      7,500    
                                                          --------    

Retained earnings:
   Balance, beginning of year                                9,029    
   Net income                                                2,112    
   Net unrealized capital losses                           (10,452)   
   Decrease in asset valuation reserve                       3,037    
   Decrease in nonadmitted assets                               51    
   Net transfer to parent                                   (3,777)   
                                                          --------    
   Balance, end of year                                         --    
                                                          --------    
       Total capital and surplus, end of year             $ 10,000    
                                                          ========    
</TABLE>

                     The accompanying notes are an integral
                       part of the financial statements.


                                       4
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES
                             STATEMENT OF CASHFLOWS
                         (statutory basis of accounting)

                      for the year ended December 31, 1997
                             (dollars in thousands)
                                    --------


<TABLE>
<CAPTION>

                                                             1997    
                                                             ----    
<S>                                                      <C>         
          Cash from Operations
Premiums and annuity considerations                      $  19,910   
Investment income                                           26,814   
Policy claims                                              (49,832)  
Commissions and other expenses                              (2,172)  
Federal income tax payments                                 (1,155)  
Reserves transferred                                      (267,772)  
                                                         ---------   
      Net cash used for operations                        (274,207)  
                                                         ---------   

          Cash from Investments
Proceeds from investments sold, matured or repaid:
  Bonds                                                    290,444   
  Stocks                                                    29,001   
  Mortgage loans                                               206   
  Real estate                                                1,187   
  Net decrease in policy loans                              (3,802)  
  Tax on capital losses / (gains)                                5   
                                                         ---------   
     Total cash provided                                   324,645   
                                                         ---------   

Cost of investments acquired:
   Bonds                                                     4,845   
                                                         ---------   
     Total investments acquired                              4,845
                                                         ---------   
      Net cash from investments                            319,800   
                                                         ---------   

          Cash from Financing and Miscellaneous Sources
Net transfer to parent                                     (50,627)  
Other sources                                                7,986   
Other applications                                          (1,547)  
                                                         ---------   
     Net cash from financing and miscellaneous sources     (44,188)  
                                                         ---------   
Net change in cash and short term investments                1,405   
                                                         ---------   
Cash and short term investments;
  Balance, beginning of year                                 2,906   
                                                         ---------   
  Balance, end of year                                   $   4,311   
                                                         =========   
</TABLE>

                     The accompanying notes are an integral
                       part of the financial statements.


                                        5
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                          NOTES TO FINANCIAL STATEMENTS
                             (dollars in thousands)
                                    ---------

A.    Summary of Significant Accounting Policies:

      Basis of Presentation

      Royal Life Insurance Company of America (the "Company") is a wholly owned
      subsidiary of Hartford Life Insurance Company. Effective December 31,
      1997, all of the common stock of the Company was purchased from Royal
      Maccabees Life Insurance Company ("RMLIC"). Prior to the sale, the
      insurance business of the Company was transferred to RMLIC as part of a
      coinsurance/assumption reinsurance agreement. Accordingly, the assets and
      liabilities of the Company were transferred to RMLIC at book value.

      The Company sold principally annuity contracts and certain other life
      insurance products throughout most of the United States, and as of
      December 31, 1997 the Company is not writing any new business.

      In accordance with the National Association of Insurance Commissioners'
      ("NAIC") securities valuation guidelines, the common stock of the
      Company's subsidiaries are valued using the equity method. Any changes in
      the surplus of the subsidiaries are reflected through the Company's
      surplus as unrealized capital gain or loss.

      The accompanying statutory financial statements have been prepared in
      conformity with statutory accounting practices of the National Association
      of Insurance Commissioners ("NAIC") as prescribed or permitted by the
      Insurance Department of the State of Connecticut. Prescribed statutory
      accounting practices include a variety of publications of the NAIC, as
      well as state laws, regulations and general administrative rules.
      Permitted statutory accounting practices encompass accounting practices
      nor so prescribed. The significant differences, the effects of which have
      not been determined, between statutory accounting practices and generally
      accepted accounting principles are:

            (1) costs directly related to generating new premium revenues are
            charged to operations as incurred, rather than being deferred and
            amortized; (2) future policy benefit reserves are based on statutory
            mortality and interest requirements without the consideration of
            lapses or surrenders; (3) certain assets, described as nonadmitted,
            are excluded from the statutory statement of admitted assets,
            liabilities, capital and surplus by direct charges to surplus; (4)
            unrealized capital gains and losses are recorded as charges or
            credits to surplus, without provision for federal income taxes; (5)
            changes in certain reserve valuations are charged against surplus;
            (6) equity in earnings of the Company's unconsolidated subsidiaries
            is recorded directly to surplus, and the equity in net assets is
            included as an investment rather than the individual accounts being
            consolidated in the financial statements; (7) the asset valuation
            reserve is included in liabilities rather than being restored to
            surplus; (8) adjustments for prior years' income taxes are charged
            or credited to surplus; (9) deferred federal income taxes are not
            provided for temporary differences between book and tax bases of
            assets and liabilities; (10) the interest maintenance reserve defers
            certain realized capital gains and losses rather than being included
            in the statement of operations; (11) the Statement of Cash Flows is
            prepared in accordance with NAIC guidelines as opposed to Statement
            of Financial Accounting Standards No. 95; (12) certain reinsurance
            amounts are reported on a net rather than on a gross basis; (13)
            bonds and stocks are recorded in accordance with rules promulgated
            by the NAIC, as opposed to the standards established in Statement of
            Financial Accounting Standards No. 115; and (14) amounts received as
            consideration for annuity contracts are accounted for as premiums
            received as opposed to deposits.


                                        6
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

A.    Summary of Significant Accounting Policies, continued:

      Investments

      Investments are recorded in accordance with rules promulgated by the NAIC.
      Bonds eligible for amortization under such rules are stated at amortized
      cost. Short-term investments consist of money market funds and are stated
      at cost, which approximates fair value.

      Policy and mortgage loans are stated at their aggregate unpaid balances.
      The maximum percentage of any one mortgage loan to the value of collateral
      at the time of the loan is 75 percent. Property insurance is required on
      all properties covered by mortgage loans. Mortgage loans are
      collateralized by real estate located primarily in the midwestern United
      States. From time to time, the Company acquires real estate holdings
      through foreclosures of commercial mortgages. Real estate held for sale is
      recorded at the lower of cost or its market value at the date of
      foreclosure.

      Realized gains or losses on sales of investments are determined on a
      specific-identification basis and are either included in the interest
      maintenance reserve calculation or are recognized as a component of
      operations. Unrealized losses on real estate at the date of foreclosure
      are recorded directly to surplus, as permitted by the Insurance Department
      of the State of Connecticut.

      Investment Reserves

      The interest maintenance reserve ("IMR") and asset valuation reserve
      ("AVR") are computed in accordance with NAIC guidelines and are recorded
      as liabilities. The IMR defers realized gains and losses, net of income
      tax effects, arising from interest rate sales which are amortized over the
      remaining years to maturity of the assets sold. The AVR is designed to
      provide a standardized reserve process for realized and unrealized losses
      due to the default and equity risks associated with invested assets.
      Amortization of the IMR is recorded in the statement of operations while
      the change in the AVR is recorded directly to surplus.

      Federal Income Taxes

      Federal income taxes are charged to operations, net of the amount
      allocated to the IMR, based on income that is currently taxable. Deferred
      income taxes are not provided for temporary differences between the book
      and tax bases of assets and liabilities.

      Nonadmitted Assets

      Certain assets designated as "nonadmitted assets", principally agents'
      debit balances, have been excluded from the statutory statement of
      admitted assets, liabilities, capital and surplus by direct charges to
      surplus.

      Recognition of Premium Revenue

      Annuity and universal life considerations are recognized when received.
      Other premium income is earned over the lives of the related insurance
      contracts.


                                        7
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

A.    Summary of Significant Accounting Polices, continued:

      Acquisition Costs

      Costs and expenses incurred in generating new premium revenue are charged
      to expense when incurred. 

      Estimates

      The preparation of financial statements in conformity with prescribed or
      permitted statutory accounting practices requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the
      date of the financial statements and the reported amounts of revenues and
      expenses during the reporting period. Actual results could differ from
      those estimates.

B.    Investment in Bonds:

      The estimated fair value of bonds was determined by the Company primarily
      using independent pricing services. For securities not actively traded,
      the estimated fair value was determined using a Company-derived matrix
      pricing method. The carrying value and estimated fair value of investments
      in bonds, by category, as of December 31, 1997 are as follows:


<TABLE>
<CAPTION>
                                                    
                              -------------------------------------------------
                                             Gross        Gross       Estimated
                               Carrying    Unrealized   Unrealized      Fair
                                 Value       Gains        Losses       Values
                                 -----       -----        ------       ------
<S>                            <C>         <C>          <C>           <C>

      U.S. Treasury securities
       and obligations of U.S.
       government corporations
       and agencies              $5,583      $  74        $   --       $5,657
                                 ------      -----        ------       ------

                    Totals       $5,583      $  74        $   --       $5,657
                                 ------      -----        ------       ------
                                 ------      -----        ------       ------

</TABLE>




                                        8
<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

B.    Investment in Bonds, continued:

      The market value of bonds, as indicated in the Company's annual statement,
      column 7 of Schedule D, Part 1, is determined on the basis of market
      values listed by the NAIC, or amortized cost if no market quotation is
      available. Such market values were $5,654 at December 31, 1997.


      The carrying value and estimated fair value of bonds at December 31, 
      1997 by contractual maturity is shown below. Expected maturities will 
      differ from contractual maturities because borrowers may have the right 
      to call or prepay obligations with or without call or prepayment 
      penalties. Actual maturities may differ from both expected and 
      contractual maturities.


<TABLE>
<CAPTION>
                                                             Estimated
                                               Carrying        Fair
                                                 Value         Value
                                                 -----         -----
               <S>                             <C>            <C>

               Due in one year or less          $2,159        $2,181

               Due after one year
                through five years               3,424         3,476
                                                ------        ------
                                                $5,583        $5,657
                                                ------        ------
                                                ------        ------
</TABLE>


      Proceeds from sales and calls of investments in bonds that resulted in
      gains and losses were $11,108 in 1997.  Gross gains of $215 and gross 
      losses of $28 and $33 were realized on those sales in 1997.

      Bonds with a carrying value of $5,583 were on deposit as of December 31,
      1997 with various regulatory authorities as required.

      Net realized gains of $187 less taxes of $65 were credited to the IMR 
      during 1997.  Also, $703 of IMR was transferred to RMLIC in the current
      year as a result of the coinsurance/assumption reinsurance agreement.


                                        9


<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

C.    Investment in Unconsolidated Subsidiaries


      On December 31, 1997, the Company sold its investment in subsidiaries to
      RMLIC. The results of operations for the year ended December 31, 1997 of 
      the Company's unconsolidated subsidiaries are summarized as follows:


<TABLE>
<CAPTION>
       <S>                                              <C>                       
       Premium and annuity considerations                $  90,424    
       Investment income, net                               53,103    
       Benefits and reserve changes                        130,370    
       Other expenses                                        9,884    
                                                         ---------    

         Net income                                          3,273    

       Other charges to surplus, net                       (43,569)   
                                                         ---------    

         Change in capital and surplus
           for the year                                  $ (40,296)   
                                                         =========    
</TABLE>


                                       10

<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

D.    Federal Income Taxes:

      The Company will file a consolidated federal income tax return with RMLIC
      and other subsidiaries for the period through the date of sale, December
      31, 1997. Income tax expense or benefit was allocated to the Company on a
      separate return basis. The Company paid or recovered from RMLIC the amount
      of the expense or benefit.

      The Company will be included in the consolidated federal income tax 
      return of the affiliated Hartford Group for activity beginning on 
      January 1, 1998.

      Federal taxable income differs from financial statement income primarily
      due to bond discounts not being accreted currently for tax, the
      capitalization of certain policy acquisition costs for tax purposes and
      differences between statutory and tax reporting of future policy benefit
      reserves.



E.    Dividend Restriction:

      The Connecticut State Insurance Law limits the payment of dividends to
      stockholders. Accordingly, the Company may pay no dividends in 1998
      without prior approval.


                                       11

<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

F.    Reinsurance:

      The Company reinsured portions of certain policies that it underwrites to
      limit disproportionate risks. The Company had standard coinsurance and
      yearly renewable term reinsurance agreements with several companies. A
      summary of reinsurance information for 1997 follows:

<TABLE>
<CAPTION>
                                               Gross        Ceded        Net
                                             --------      -------    --------
         <S>                                 <C>           <C>        <C>
         Premiums                            $ 20,253      $   761    $ 19,492
         Benefits                              50,755        1,283      49,472
         Future policy benefit reserves        86,749       86,749          --
         Policy and contract claim reserves         5            5          --

</TABLE>

      As part of the sales agreement of the Company to Hartford Life Insurance
      Company, the company ceded 100% of all business to RMLIC which was not
      otherwise ceded through a standard coinsurance agreement. This
      coinsurance/assumption agreement will remain in effect until all existing
      business is novated to RMLIC.

      The Company is contingently liable with respect to reinsurance in the
      event assuming reinsurers are unable to meet their obligations.

G.    Transactions with Affiliates:


      Approximately $1,196 of general expenses incurred by the Company in 
      1997, represented direct and indirect expenses allocated from RMLIC and 
      RLNY. Direct expenses are based on bills specifically paid for expenses 
      of the Company. The indirect expenses are costs incurred by RMLIC and 
      RLNY for the benefit of the Company and are billed based on internal 
      time studies or studies of other services provided. Additionally, $150 
      of the Company's investment expenses in 1997, represent charges from 
      Royal Investment Management Company.


                                       12

<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA
                                AND SUBSIDIARIES

                    NOTES TO FINANCIAL STATEMENTS, Continued
                             (dollars in thousands)
                                    ---------

H.    Contingencies:

      In the normal course of its business operations, the Company is involved
      in litigation from time to time with claimants, beneficiaries and others,
      and a number of lawsuits were pending as of December 31, 1997. There are
      pending legal proceedings within the ordinary course of business which,
      under the terms of the coinsurance/assumption reinsurance agreement, are
      the responsibility of RMLIC.

      The Company participates in the various guaranty funds existing in the
      states in which the Company writes business. The Company is not aware of
      any liabilities for future assessments as of December 31, 1997.




                                       13

<PAGE>






                                      PART II


<PAGE>

                         CONTENTS OF REGISTRATION STATEMENT


This Registration Statement comprises the following papers and documents:

     The facing sheet.

     The prospectus consisting of 82 pages.

     The undertaking to file reports.

     The Rule 484 undertaking.

     The signatures.

(1)  The following exhibits included herewith correspond to those required by
     paragraph A of  the instructions for exhibits to Form N-8B-2.

     (A1)   Resolution of Board of Directors of Royal Life Insurance Company of
            America  ("Royal") authorizing the establishment of the Separate 
            Account.

     (A2)   Not applicable.
   
     (A3a)  Principal Underwriting Agreement.

     (A3b)  Form of Selling Agreement.
    
     (A3c)  Not applicable.

     (A4)   Not applicable.
   
     (A5)   Form of Modified Single Premium Variable Life Insurance Policy. (1)

     (A6a)  Charter of Royal. (1)

     (A6b)  Bylaws of Royal. (1)
    
      (A7)  Not applicable.

     (A8)   Not applicable.

     (A9)   Not applicable.
   
     (A10)  Form of Application for Modified Single Premium Variable Life
            Insurance Policies. (1)
    
   
- -------------------------
     (1)    Incorporated by reference to the initial filing of Registration 
            No.  333-65437 filed on October 8, 1998.
    
<PAGE>
   
     (A11)  Memorandum describing transfer and redemption procedures.
    
(2)  Opinion and consent of Lynda Godkin, Senior Vice President, General 
     Counsel and Corporate Secretary.

(3)  No financial statement will be omitted from the Prospectus pursuant to
     Instruction 1 (b) or (c) of Part I.

(4)  Not Applicable.
   
(5)  Opinion and Consent of Michael Winterfield, FSA, MAAA. (1)
    
   
(6)  Consent of PricewaterhouseCoopers LLP
    
(7)  Power of Attorney. 

(8)  Not applicable.

<PAGE>

                      REPRESENTATION OF REASONABLENESS OF FEES

Royal Life Insurance Company of America ("Royal") hereby represents that the 
aggregate fees and charges under the Policy are reasonable in relation to the 
services rendered, the expenses expected to be incurred, and the risks 
assumed by Royal.

                           UNDERTAKING TO FILE REPORTS

Subject to the terms and conditions of Section 15(d) of the Securities 
Exchange Act of 1934, the undersigned registrant hereby undertakes to file 
with the Securities and Exchange Commission such supplementary and periodic 
information, documents, and reports as may be prescribed by any rule or 
regulation of the Commission heretofore or hereafter duly adopted pursuant to 
authority conferred in that section.

            UNDERTAKINGS AND REPRESENTATIONS AS REQUIRED BY RULE 6e-3(T)

1.   Separate Account Two meets the definition of "Separate Account" under 
     Rule 6e-3(T).

2.   Royal undertakes to keep and make available to the Commission upon 
     request any documents used to support any representation as to the 
     reasonableness of fees.

                           UNDERTAKING ON INDEMNIFICATION

Under Section 33-772 of the Connecticut General Statutes, unless limited by 
its certificate of incorporation, the Registrant must indemnify a director 
who was wholly successful, on the merits or otherwise, in the defense of any 
proceeding to which he was a party because he is or was a director of the 
corporation against reasonable expenses incurred by him in connection with 
the proceeding.

The Registrant may indemnify an individual made a party to a proceeding 
because he is or was a director against liability incurred in the proceeding 
if he acted in good faith and in a manner he reasonably believed to be in or 
not opposed to the best interests of the Registrant, and, with respect to any 
criminal proceeding, had no reason to believe his conduct was unlawful. Conn. 
Gen. Stat. 33-771(a). Additionally, pursuant to Conn. Gen. Stat. 33-776, the 
Registrant may indemnify officers and employees or agents for liability 
incurred and for any expenses to which they become subject by reason of being 
or having been an employee or officer of the Registrant.  Connecticut law 
does not prescribe standards for the indemnification of officers, employees 
and agents and expressly states that their indemnification may be broader 
than the right of indemnification granted to directors. 

The foregoing statements are specifically made subject to the detailed 
provisions of Section 33-770 et seq.

Notwithstanding the fact that Connecticut law obligates the Registrant to 
indemnify only a director that was successful on the merits in a suit, the 
Registrant's bylaws, provide under Article X: 

          "The Company shall indemnify to the full extent authorized or
          permitted by law any 

<PAGE>

          person made, or threatened to be made a party to an action, suit or 
          proceeding (whether civil, criminal, administrative or 
          investigative) by reason of the fact that he, his testator or 
          intestate is or was a Director, Officer or employee of the company 
          or serves or served any other enterprise at the request of the 
          corporation. The foregoing right of indemnification shall not be 
          deemed exclusive of any other rights to which those seeking 
          indemnification may be entitled under any By-Laws, agreement, vote 
          of Shareholders or disinterested Directors or otherwise, and shall 
          continue as to a person who has ceased to be a Director, Officer, 
          employee or agent shall inure to the benefit or the heirs, 
          executors and administrators of such a person."

Additionally, the directors and officers of Royal and Hartford Securities 
Distribution Company, Inc. ("HSD") are covered under a directors and officers 
liability insurance policy issued to The Hartford Financial Services Group, 
Inc. and its subsidiaries.  Such policy will reimburse the Registrant for any 
payments that it shall make to directors and officers pursuant to law and 
will, subject to certain exclusions contained in the policy, further pay any 
other costs, charges and expenses and settlements and judgments arising from 
any proceeding involving any director or officer of the Registrant in his 
past or present capacity as such, and for which he may be liable, except as 
to any liabilities arising from acts that are deemed to be uninsurable.

Insofar as indemnification for liabilities arising under the Securities Act 
of 1933 may be permitted to directors, officers and controlling persons of 
the Registrant pursuant to the foregoing provisions, or otherwise, the 
Registrant has been advised that in the opinion of the Securities and 
Exchange Commission such indemnification is against public policy as 
expressed in the Act and is, therefore, unenforceable.  In the event that a 
claim for indemnification against such liabilities (other than the payment by 
the Registrant of expenses incurred or paid by a director, officer or 
controlling person of the Registrant in the successful defense of any action, 
suit or proceeding) is asserted by such director, officer or controlling 
person in connection with the securities being registered, the Registrant 
will, unless in the opinion of its counsel the matter has been settled by 
controlling precedent, submit to a court of appropriate jurisdiction the 
question whether such indemnification by it is against public policy as 
expressed in the Act and will be governed by the final adjudication of such 
issue.

INFORMATION REGARDING CERTAIN SALES LOADS, ADMINISTRATIVE, 
MANAGEMENT AND OTHER FEES

Not applicable.

<PAGE>
                               OFFICERS AND DIRECTORS

The principal underwriter for Royal Life Insurance Company of America Separate
Account Two is Hartford Securities Distribution Company, Inc.  The following is
a list of Officers and Directors:

               Name and Principal       Positions and Offices
                Business Address          With Underwriter  

     Lowndes A. Smith         President and Chief Executive Officer, Director
   
    
     Thomas M. Marra          Executive Vice President, Director
     Peter W. Cummins         Senior Vice President
     Lynda Godkin             Senior Vice President, General Counsel and 
                                   Corporate Secretary
     Donald E. Waggaman, Jr.  Treasurer
     George R. Jay            Controller

     Unless otherwise indicated, the principal business address of each the
     above individuals is P.O. Box 2999, Hartford, Connecticut 06104-2999.

<PAGE>

                                     SIGNATURES
   

Pursuant to the requirements of the Securities Act of 1933, the Registrant 
has duly caused this Registration Statement to be signed on its behalf by the 
undersigned thereunto duly authorized, and attested, all in the Town of 
Simsbury, and State of Connecticut, on the 5th day of February, 1999.


SEPARATE ACCOUNT TWO
      (Registrant)

By:   Lynda Godkin
     -------------------------
      Lynda Godkin, Senior Vice President,
      General Counsel and Corporate Secretary*     *By:  /s/ Marianne O'Doherty
                                                         ----------------------
                                                         Marianne O'Doherty
                                                         Attorney-in-Fact

ROYAL LIFE INSURANCE COMPANY OF AMERICA
      (Depositor)

By:   Lynda Godkin
     -------------------------
      Lynda Godkin, Senior Vice President, 
      General Counsel and Corporate Secretary*

Pursuant to the requirements of the Securities Act of 1933, as amended, this 
Registration Statement has been signed below by the following persons and in 
the capacity and on the date indicated.


<TABLE>
<S>                                                    <C>
Gregory A. Boyko, Senior Vice President,
    & Treasurer, Director*
Lynda Godkin, Senior Vice President, 
    General Counsel & Corporate Secretary, Director*   *By: /s/ Thomas S. Clark
Thomas M. Marra, Director*                                  ----------------------
Lowndes A. Smith, President, Director                       Thomas S. Clark
Raymond P. Welnicki, Director*                              Attorney-In-Fact
Lizabeth H. Zlatkus, Senior Vice President,            
    Director*                                              Dated:  February 5, 1999
</TABLE>
    


<PAGE>

                                   EXHIBIT INDEX

(1)(A1)   Resolution of Board of Directors of Royal Life Insurance Company of
          America ("Royal") authorizing the establishment of the Separate 
          Account.
   
(1)(A3a)  Principal Underwriter Agreement.

(1)(A3b)  Form of Selling Agreement.

(1)(A11)  Memorandum describing transfer and redemption procedures.
    

   
    

(2)       Opinion and Consent of Lynda Godkin, Senior Vice President, General 
          Counsel, and Corporate Secretary.
   
(6)       Consent of PricewaterhouseCoopers LLP
    
(7)       Power of Attorney.


<PAGE>

                     ROYAL LIFE INSURANCE COMPANY OF AMERICA

                              CONSENT OF DIRECTORS

The undersigned, being all of the Directors of Royal Life Insurance Company of
America (the "Company"), hereby consent to and ratify the following action, such
action to have the same force and effect as if taken at a meeting of the Board
of Directors duly called and held for such purpose.

ESTABLISHMENT OF SEPARATE ACCOUNT TWO - VARIABLE LIFE

WHEREAS, Section 38a-433 of Connecticut General Statutes permits a domestic life
insurance company to establish one or more separate accounts; and

WHEREAS, the Company desires to establish a separate account pursuant to the
aforementioned Section 38a-433 in connection with the offer and sale of modified
single premium variable life insurance contracts (the "Contracts").

NOW, THEREFORE, BE IT

RESOLVED, that the Company hereby establishes a separate account, to be
initially designated "Separate Account Two" (hereinafter, the "Separate
Account"), to which the Company will allocate such amounts as may be required in
connection with the Contracts in accordance with Section 38a-433 and such other
law and regulations as may be applicable; and be it further

RESOLVED, that consistent with the provisions of Section 38a-433, the income,
gains and losses, realized or unrealized, from assets allocated to the Separate
Account shall be credited to or charged against the Separate Account, without
regard to income, gains or losses of the Company; and be it further

RESOLVED, that each Contract issued by the Company shall provide, in effect,
that the portion of the assets of the Separate Account equal to the reserves and
other Contract liabilities with respect to such account shall not be chargeable
with liabilities arising out of any other business the Company may conduct; and
be it further

RESOLVED, that the appropriate officers of the Company, and each of them, with
full power to act without the others, be and hereby are severally authorized and
directed to take all actions that, in their sole discretion, may be necessary or
desirable from time to time (i) to establish and designate one or more
investment divisions of the Separate Account, (ii) to redesignate or eliminate
any such investment division, (iii) to change or modify the designation of the
Separate Account to any other desirable and appropriate designation, (iv) to
establish, amend, modify or change in accordance with applicable law and
regulation the terms and conditions pursuant to which interests in the Separate
Account will be sold to contract owners, (v) to establish, amend, modify or
change such procedures, standards and other arrangements as may be necessary or
appropriate for the operation of the Separate Account, and (vi) with advice of
counsel, to comply with the requirements of such laws and regulations as may be
applicable to the establishment and operation of the Separate Account; and be it
further

RESOLVED, that the appropriate officers of the Company, and each of them, with
full power to act without the others, be and hereby are severally authorized and
directed to execute and deliver such papers,

<PAGE>

documents and instruments and to take such further action as they may deem 
necessary or desirable to carry out the purposes and intent of the foregoing 
resolutions.

 /s/ Gregory A. Boyko                       /s/ John P. Ginnetti
- -------------------------------            ------------------------------
Gregory A. Boyko                           John P. Ginnetti
                                        
                                        
 /s/ Lynda Godkin                           /s/ Thomas M. Marra
- -------------------------------            ------------------------------
Lynda Godkin                               Thomas M. Marra
                                        
                                        
 /s/ Lowndes A. Smith                       /s/ Raymond P. Welnicki
- -------------------------------            ------------------------------
Lowndes A. Smith                           Raymond P. Welnicki
                            

 /s/  Lizabeth H. Zlatkus
- -------------------------------
Lizabeth H. Zlatkus



Dated as of:  September 1, 1998

<PAGE>

                         PRINCIPAL UNDERWRITER AGREEMENT

THIS AGREEMENT, dated as of November 3, 1998, made by and between ROYAL LIFE
INSURANCE COMPANY OF AMERICA ("ROYAL" or the "Sponsor"), a corporation organized
and existing under the laws of the State of Connecticut, and HARTFORD SECURITIES
DISTRIBUTION COMPANY, INC. ("HSD"), a corporation organized and existing under
the laws of the State of Connecticut,

                                   WITNESSETH:

WHEREAS, the Board of Directors of ROYAL has made provision for the
establishment of a separate account within ROYAL in accordance with the laws of
the State of Connecticut, which separate account was organized and is
established and registered as a unit investment trust type investment company
with the Securities and Exchange Commission under the Investment Company Act of
1940 ("1940 Act"), as amended, and which is designated Separate Account Two of
ROYAL LIFE INSURANCE COMPANY OF AMERICA (referred to as the "UIT"); and

WHEREAS, HSD offers to the public a certain Modified Single Premium Variable
Life Insurance Contract (the "Contract") issued by ROYAL with respect to the UIT
units of interest thereunder which are registered under the Securities Act of
1933 ("1933 Act"), as amended; and

WHEREAS, HSD is agreeing to act as distributor in connection with offers and
sales of the Contract under the terms and conditions set forth in this Principal
Underwriter Agreement.

NOW THEREFORE, in consideration of the mutual agreements made herein, ROYAL and
HSD agree as follows:

                                       I.

                                  HSD'S DUTIES

1.   HSD, will use its best efforts to effect offers and sales of the Contract
     through registered representatives that are members of the National
     Association of Securities Dealers, Inc. and who are duly licensed as
     insurance agents of ROYAL. HSD is responsible for compliance with all
     applicable requirements of the 1933 Act, as amended, the Securities
     Exchange Act of 1934 ("1934 Act"), as amended, and the 1940 Act, as
     amended, and the rules and regulations relating to the sales and
     distribution of the Contract, the need for which arises out of its duties
     as principal underwriter of said Contract and relating to the creation of
     the UIT.

2.   HSD agrees that it will not use any prospectus, sales literature, or any
     other printed matter or material or offer for sale or sell the Contract if
     any of the foregoing in any way

                                      1

<PAGE>

     represent the duties, obligations, or liabilities of ROYAL as being greater
     than, or different from, such duties, obligations and liabilities as are 
     set forth in this Agreement, as it may be amended from time to time.

3.   HSD agrees that it will utilize the then currently effective prospectus
     relating to the UIT's Contracts in connection with its selling efforts.

     As to the other types of sales materials, HSD agrees that it will use only
     sales materials which conform to the requirements of federal and state
     insurance laws and regulations and which have been filed, where necessary,
     with the appropriate regulatory authorities.

4.   HSD agrees that it or its duly designated agent shall maintain records of
     the name and address of, and the securities issued by the UIT and held by,
     every holder of any security issued pursuant to this Agreement, as required
     by the Section 26(a)(4) of the 1940 Act, as amended.

5.   HSD's services pursuant to this Agreement shall not be deemed to be
     exclusive, and it may render similar services and act as an underwriter,
     distributor, or dealer for other investment companies in the offering of
     their shares.

6.   In the absence of willful misfeasance, bad faith, gross negligence, or
     reckless disregard of its obligations and duties hereunder on the part of
     HSD, HSD shall not be subject to liability under a Contract for any act or
     omission in the course, or connected with, rendering services hereunder.

                                       II.

1.   The UIT reserves the right at any time to suspend or limit the public
     offering of the Contracts upon 30 days' written notice to HSD, except where
     the notice period may be shortened because of legal action taken by any
     regulatory agency.

2.   The UIT agrees to advice HSD immediately:

     (a)  Of any request by the Securities and Exchange Commission for amendment
          of its 1933 Act registration statement or for additional information;

     (b)  Of the issuance by the Securities and Exchange Commission of any stop
          order suspending the effectiveness of the 1933 Act registration
          statement relating to units of interest issued with respect to the UIT
          or of the initiation of any proceedings for that purpose;

     (c)  Of the happening of any material event, if known, which makes untrue
          any statement in said 1933 Act registration statement or which
          requires a change therein in order to make any statement therein not
          misleading.

                                      2

<PAGE>

     ROYAL will furnish to HSD such information with respect to the UIT and the
     Contracts in such form and signed by such of its officers and directors and
     HSD may reasonably request and will warrant that the statements therein
     contained when so signed will be true and correct. ROYAL will also furnish,
     from time to time, such additional information regarding the UIT's
     financial condition as HSD may reasonably request.

                                      III.

                                  COMPENSATION

ROYAL is obligated to reimburse HSD for all operating expenses associated with
the services provided on behalf of the UIT under this Principal Underwriter
Agreement.

                                       IV.

                RESIGNATION AND REMOVAL OF PRINCIPAL UNDERWRITER

HSD may resign as a Principal Underwriter hereunder, upon 120 days' prior
written notice to ROYAL. However, such resignation shall not become effective
until either the UIT has been completely liquidated and the proceeds of the
liquidation distributed through ROYAL to the Contract owners or a successor
Principal Underwriter has been designated and has accepted its duties.

                                       V.

                                  MISCELLANEOUS

1.   This Agreement may not be assigned by any of the parties hereto without the
     written consent of the other party.

2.   All notices and other communications provided for hereunder shall be in
     writing and shall be delivered by hand or mailed first class, postage
     prepaid, addressed as follows:

     (a)  If to ROYAL - Royal Life Insurance Company of America P.O. Box 2999,
          Hartford, Connecticut 06104.

     (b)  If to HSD - Hartford Securities Distribution Company, Inc., P.O. Box
          2999, Hartford, Connecticut 06104.

     or to such other address as HSD or ROYAL shall designate by written notice
     to the other.

                                      3

<PAGE>

3.   This Agreement may be executed in any number of counterparts, each of which
     shall be deemed an original and all of which shall be deemed one
     instrument, and an executed copy of this Agreement and all amendments
     hereto shall be kept on file by the Sponsor and shall be open to inspection
     any time during the business hours of the Sponsor.

4.   This Agreement shall inure to the benefit of and be binding upon the
     successor of the parties hereto.

5.   This Agreement shall be construed and governed by and according to the laws
     of the State of Connecticut.

6.   This Agreement may be amended from time to time by the mutual agreement and
     consent of the parties hereto.

7.   (a)  This Agreement shall become effective November 3, 1998 and shall
          continue in effect for a period of two years from that date and, 
          unless sooner terminated in accordance with 7(b) below, shall 
          continue in effect from year to year thereafter provided that its
          continuance is specifically approved at least annually by a 
          majority of the members of the Board of Directors of ROYAL.

     (b)  This Agreement (1) may be terminated at any time, without the payment
          of any penalty, either by a vote of a majority of the members of the
          Board of Directors of ROYAL on 60 days' prior written notice to HSD;
          (2) shall immediately terminate in the event of its assignment and (3)
          may be terminated by HSD on 60 days' prior written notice to ROYAL,
          but such termination will not be effective until ROYAL shall have an
          agreement with one or more persons to act as successor principal
          underwriter of the Contracts. HSD hereby agrees that it will continue
          to act as successor principal underwriter until its successor or
          successors assume such undertaking.

                                      4

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.


                               ROYAL LIFE INSURANCE COMPANY
                               OF AMERICA



                               BY:        /s/ Charles F. Shabunia
                                      -----------------------------------
                                             Charles F. Shabunia
                                        Vice President and Controller



                               HARTFORD SECURITIES DISTRIBUTION COMPANY, INC.



                               BY:         /s/ George Jay
                                      -----------------------------------
                                               George Jay
                                               Controller

(SEAL)

Attest:


 /s/ Jeanette Toce
- -------------------------


 <PAGE>

                                                                    Exhibit 3(b)

                               BROKER-DEALER SALES AND
                                SUPERVISION AGREEMENT


This Broker-Dealer Sales and Supervision Agreement ("Agreement") is made by and
between [DISTRIBUTORS] ("Distributors"), each a broker-dealer registered with
the Securities and Exchange Commission ("SEC") under the Securities and Exchange
Act of 1934 ("1934 Act") and a member of the National Association of Securities
Dealers, Inc. ("NASD"), [INSURANCE COMPANIES] (referred to collectively as
"Companies"), and ___________________________ [BROKER-DEALER], an independent
broker-dealer registered with the SEC under the 1934 Act and a member of the
NASD ("Broker-Dealer"), or a bank as defined by Section 3(a)(6) of the 1934 Act
and Article I(b) of the NASD By-Laws, and any and all undersigned insurance
agency affiliates ("Affiliates") of Broker-Dealer.  Distributors and Companies
are sometimes collectively referred to as "Hartford Life".

WHEREAS, Companies offer certain variable life insurance policies and variable
and modified guaranteed annuity contracts which are deemed to be securities
under the Securities Act of 1933 (the "Registered Products") and other
nonregistered life policies and annuity contracts ("Nonregistered Products, and
with the "Registered Products, collectively the "Products"); and

WHEREAS, Companies wish to appoint the Broker-Dealer and Affiliates as agents of
the Companies for the solicitation and procurement of applications for those
specific Products listed on the lines of business page(s) hereto, as the same
may be amended from time to time; and

WHEREAS, Distributors are the principal underwriters of the Products; and

WHEREAS, Distributors anticipate having representatives who are associated with
Broker-Dealer, who are NASD registered and are duly licensed under applicable
state insurance law and who are, where required, appointed as insurance agents
of Companies to solicit and sell the Registered and Nonregistered Products
("Registered Representatives"); and

WHEREAS, Distributors and the Companies acknowledge that Broker-Dealer will
provide certain supervisory and administrative services to Registered
Representatives who are associated with the Broker-Dealer in connection with the
solicitation, service and sale of the Registered and Nonregistered Products; and

WHEREAS, Broker-Dealer agrees to provide the aforementioned supervisory and
administrative services to its Registered Representatives who have been
appointed by the Companies to sell the Registered and Nonregistered Products.

NOW THEREFORE, in consideration of the mutual covenants contained in this
Agreement, the parties agree to the following:

1.     APPOINTMENT OF THE BROKER-DEALER

       Companies hereby appoint, effective upon compliance with individual state
       requirements, Broker-Dealer and Affiliates, if any, as an agent of the
       Companies for the solicitation and procurement of applications for the
       Products offered by the Companies, as outlined in the lines of business
       page(s) attached herein, in all states in which the Companies are
       authorized to do business and in which Broker-Dealer or any Affiliates
       are properly insurance licensed.  Broker-Dealer shall


                                          1
<PAGE>

       supervise Registered Representatives in the solicitation, servicing and
       sale of the Products in accordance with all applicable securities laws.
       The Companies hereby authorize Broker-Dealer under applicable state
       insurance laws to supervise Registered Representatives in connection with
       the solicitation, servicing and sale of the Companies Registered and
       Nonregistered Products.

2.     AUTHORITY OF THE BROKER-DEALER

       Broker-Dealer has the authority to represent Distributors and Companies
       only to the extent expressly granted in this Agreement.  Broker-Dealer
       and any associated Registered Representatives shall not hold themselves
       out to be employees of Companies or Distributors in any dealings with the
       public.  Broker-Dealer and any Registered Representatives shall be
       independent contractors as to Distributors or Companies.  Nothing
       contained herein is intended to create a relationship of employer and
       employee between Broker-Dealer and Distributors or Companies or between
       Registered Representatives and Distributors or Companies.

3.     BROKER-DEALER REPRESENTATION

       Broker-Dealer represents that it is either:_____ a registered
       broker-dealer under the 1934 Act, a member in good standing of the NASD,
       and a registered broker-dealer under applicable state law to the extent
       necessary to perform the duties described in this Agreement or _____ a
       bank as defined by Section 3(a)(6) of the 1934 Act.  Broker-Dealer
       represents that its Registered Representatives, who will be soliciting
       applications for the Registered Products, will be duly registered
       representatives associated with Broker-Dealer and that they will be
       representatives in good standing with accreditation as required by the
       NASD to sell the Registered Products.  Broker-Dealer agrees to abide by
       all rules and regulations of the NASD, including its Conduct Rules, and
       to comply with all applicable state and federal laws and the rules and
       regulations of authorized regulatory agencies affecting the sale of the
       Products by Broker-Dealer or any of its associated Registered
       Representatives.

4.     BROKER-DEALER OBLIGATIONS

       4.1    TRAINING AND SUPERVISION
              Broker-Dealer has full responsibility for the training and
              supervision of all Registered Representatives and any other
              persons associated with Broker-Dealer and any other persons who
              are engaged directly or indirectly in the offer or sale of the
              Products.  Broker-Dealer shall, during the term of this Agreement,
              establish and implement reasonable procedures for periodic
              inspection and supervision of sales practices of its Registered
              Representatives including all applicable continuing education
              requirements.  Companies and Distributors reserve the right to
              monitor the Broker-Dealer's Registered Representatives as to sales
              supervision and continuing education.

              If a Registered Representative ceases to be a Registered
              Representative of Broker-Dealer, is disqualified for continued
              NASD registration or has its registration suspended by the NASD or
              otherwise fails to meet the rules and standards imposed by
              Broker-Dealer, Broker-Dealer shall immediately notify such
              Registered Representative that he or she is no longer authorized
              to solicit applications for the sale of Products on behalf of the
              Companies.  Broker-Dealer shall immediately notify the Companies
              of such termination or suspension or failure to abide by he rules
              and standards of Broker-Dealer.

       4.2    SOLICITATION
              Broker-Dealer agrees to supervise its Registered Representatives
              so that they will only solicit applications in states where the
              Products are approved for sale and where the Registered
              Representatives are properly licensed and appointed in accordance
              with applicable state laws


                                          2
<PAGE>

              and Companies' rules, procedures and ethical standards then in
              effect.  Companies shall notify Broker-Dealer of the availability
              of the Products in each state.

       4.3    IMPROPER REPLACEMENT
              Broker-Dealer and its Registered Representatives shall not make
              any misrepresentation or in complete comparison of products for
              the purpose of inducing a current or potential contract owner or
              policyholder to lapse, forfeit or surrender his or her current
              insurance contract in  favor of purchasing Companies' or other
              insurer's product.  Communication with clients shall include
              sufficient information regarding the appropriateness of the
              transaction to allow the client to make an informed decision.

       4.4    PROSPECTUS DELIVERY AND SUITABILITY REQUIREMENTS
              Broker-Dealer shall ensure that its Registered Representatives
              comply with the prospectus delivery requirements under the
              Securities Act of 1933.  In addition, Broker-Dealer shall ensure
              that its Registered Representatives shall not make recommendations
              to an applicant to purchase a Product in the absence of reasonable
              grounds to believe that the purchase is suitable for such
              applicant, as required by applicable state insurance laws, the
              suitability requirements of the 1934 Act and the NASD Conduct
              Rules.  Broker-Dealer shall ensure that each application obtained
              by its Registered Representatives shall bear evidence of approval
              by one of its principals indicating that the application has been
              reviewed for suitability.

       4.5    PROMOTIONAL MATERIAL
              Broker-Dealer and its Registered Representatives are not
              authorized to provide any information or make any representation
              in connection with this Agreement or the solicitation of the
              Products other than those contained in the prospectus or in other
              promotional material produced or authorized by Companies and
              Distributors.

              Broker-Dealer agrees that if it develops any promotional material
              for sales, training, explanatory or other purposes in connection
              with the solicitation of applications for Products, including
              generic advertising, illustrations and/or training materials which
              may be used in connection with the sale of Products, it will
              obtain the prior written approval of Companies, such approval not
              to be unreasonably withheld.   Broker-Dealer agrees that it has
              full responsibility for any training or other promotional material
              it distributes to sales personnel unless the prior written
              approval of Companies has been obtained.

       4.6    RECORD KEEPING
              Broker-Dealer is responsible for maintaining the records of its
              Registered Representatives.  Broker-Dealer shall maintain such
              other records as are required of it by applicable laws and
              regulations.  The books, accounts and records maintained by
              Broker-Dealer that relate to the sale of the Products, or dealings
              with the Companies or Distributors shall be maintained so as to
              clearly and accurately disclose the nature and details of each
              transaction.

              Broker-Dealer acknowledges that all the records maintained by
              Broker-Dealer relating to the solicitation, service or sale of the
              Products subject to this Agreement, including but not limited to
              applications, authorization cards, complaint files, supervisory
              and inspection procedures and suitability reviews, shall be
              available to Companies and Distributors upon request during normal
              business hours.  Companies and Distributors may retain copies of
              any such records which Companies and Distributors, in their
              discretion, deem necessary or desirable to keep.

       4.7    REFUND OF COMPENSATION
              Broker-Dealer agrees to repay Companies the total amount of any
              compensation which may have been paid to it within thirty (30)
              business days of notice of the request for such refund should
              Companies for any reason return any premium on a Product which was
              solicited by a Registered Representative of Broker-Dealer.


                                          3
<PAGE>

       4.8    PREMIUM COLLECTION
              Broker-Dealer and Registered Representatives only have the
              authority to collect initial premiums except as specifically set
              forth in the applicable commission schedule.  Unless previously
              authorized by Distributors, neither Broker-Dealer nor any of its
              Registered Representatives shall have any right to withhold or
              deduct any part of any premium it shall receive for purposes of
              payment of commission or otherwise.

5.     COMPANIES' AND/OR DISTRIBUTORS' OBLIGATIONS

       5.1    PROSPECTUS/PROMOTIONAL MATERIAL
              Companies will provide Broker-Dealer with reasonable quantities of
              the currently effective prospectus for the Registered Products and
              appropriate sales promotional material which has been filed with
              the NASD, approved by Companies and filed as applicable with state
              insurance departments.

       5.2    COMPENSATION
              Companies will pay Broker-Dealer as full compensation for all
              services rendered by Broker-Dealer under this Agreement,
              commissions and/or service fees in the amounts, in the manner and
              for the period of time as set forth in the Commission Schedules
              attached to this Agreement or subsequently made a part hereof, and
              which are in effect at the time such Products are sold.  The
              manner of commission payments (I.E. including without limitation
              fronted or trail) is not subject to change after the effective
              date of a contract for which the compensation is payable.

              Companies may change the Commission Schedules attached to this
              Agreement at any time.  Such change shall become effective only
              when Distributors or Companies provide the Broker-Dealer with
              written notice of the change.  No such change shall affect
              first-year commissions on any contracts issued as a result of
              applications received by Companies at Companies' Home Office prior
              to the effective date of such change.

              Distributors agree to identify to Broker-Dealer, for each such
              payment, the name of the Registered Representative of
              Broker-Dealer who solicited each contract covered by the payment.
              Distributors will not compensate Broker-Dealer for any Product
              which is tendered for redemption after acceptance of the
              application.  Any chargebacks will be assessed against the
              Broker-Dealer of record at the time of the redemption.

              Distributors will only compensate Broker-Dealer or Affiliates, as
              outlined below, for those applications accepted by Companies, and
              only after receipt of the required premium by Companies at
              Companies' Home Office or at such other location as Companies may
              designate from time to time for its various lines of business, and
              compliance by Broker-Dealer with any outstanding contract and
              prospectus delivery requirements.

              In the event that this Agreement terminates due to fraudulent
              activities or a material breach of this Agreement by the
              Broker-Dealer, Distributors will only pay to Broker-Dealer or
              Affiliates commissions or other compensation earned prior to
              discovery of events requiring termination. No further commissions
              or other compensation shall thereafter be payable.

       5.3    COMPENSATION PAYABLE TO AFFILIATES
              If Broker-Dealer is unable to comply with state licensing
              requirements because of a legal impediment which prohibits a
              non-domiciliary corporation from becoming a licensed insurance
              agency or prohibits non-resident ownership of a licensed insurance
              agency, Distributors agree to pay compensation to Broker-Dealer's
              contractually affiliated insurance


                                          4
<PAGE>

              agency, a wholly-owned agency affiliate of Broker-Dealer, or a
              Registered Representative or principal of Broker-Dealer who is
              properly state licensed and/or appointed.  As appropriate, any
              reference in this Agreement to Broker-Dealer shall apply equally
              to such Affiliate. Distributors agree to pay compensation to an
              Affiliate subject to Affiliate's agreement to comply with the
              requirements of Exhibit A attached hereto.  All other obligations
              of Broker-Dealer continue to apply.

       5.4    APPOINTMENT OF AGENT/REGISTERED REPRESENTATIVES
              Companies, subject to internal standards for appointment of
              agents/Registered Representatives, shall appoint all
              agents/Registered Representatives designated by Broker-Dealer
              prior to any solicitation of Products, unless specifically allowed
              by state law.  Such appointments shall be at the Companies
              expense.  The Companies shall not terminate any designated
              agent/Registered Representative for non-production without prior
              written notice to Broker-Dealer.

6.     TERMINATION

       6.1    This Agreement may be terminated by Distributors or Broker-Dealer
              by giving sixty (60) days' notice in writing to the other parties.

       6.2    Such notice of termination shall be sent by registered mail to the
              last known address of Broker-Dealer appearing on Companies'
              records, or in the event of termination by Broker-Dealer, to the
              Home Office, Hartford Life, P.O. Box 5085, Hartford, Connecticut
              06104-5085.

       6.3    Such notice shall be an effective notice of termination of this
              Agreement as of the time the notice is deposited in the United
              States mail or the time of actual receipt of such notice if
              delivered by means other than mail.

       6.4    This Agreement shall automatically terminate without notice upon
              the occurrence of any of the events set forth below:

              6.4.1  Upon the bankruptcy or dissolution of Broker-Dealer.

              6.4.2  When and if Broker-Dealer commits fraud or gross negligence
                     in the performance of any duties imposed upon Broker-Dealer
                     by this Agreement or wrongfully withholds or
                     misappropriates, for Broker-Dealer's own use, funds of
                     Companies, its policyholders or applicants.

              6.4.3  When and if Broker-Dealer materially breaches this
                     Agreement or materially violates any applicable state or
                     federal law and/or administrative regulation in a
                     jurisdiction where Broker-Dealer transacts business.

              6.4.4  When and if Broker-Dealer fails to obtain renewal of a
                     necessary license in any jurisdiction, but only as to that
                     jurisdiction and only until Broker-Dealer renews its
                     license in such jurisdiction.

       6.5    The parties agree that on termination of this Agreement, any
              outstanding indebtedness to Companies shall become immediately due
              and payable.

7.     GENERAL PROVISIONS


                                          5
<PAGE>

       7.1    COMPLAINTS AND INVESTIGATIONS
              Broker-Dealer shall cooperate with Companies in the investigation
              and settlement of all complaints or claims against Broker-Dealer
              and/or Companies relating to the solicitation or sale of the
              Products under this Agreement.  Broker-Dealer, Distributors and
              Companies each shall promptly forward to the others any complaint,
              notice of claim or other relevant information which may come into
              its possession.  Broker-Dealer, Distributors and Companies agree
              to cooperate fully in any investigation or proceeding in order to
              attempt to achieve a prompt and equitable resolution to all
              complaints or claims and to ensure that Broker-Dealer's,
              Distributors' and Companies' procedures with respect to related
              solicitation or servicing are consistent with any applicable law
              or regulation.

              In the event any legal process or notice is served on
              Broker-Dealer in a suit or proceeding against Distributors or
              Companies, Broker-Dealer shall forward forthwith such process or
              notice to Hartford Life at its Home Office in Hartford,
              Connecticut, by registered mail.

       7.2    WAIVER
              The failure of Distributors or Companies to enforce any provisions
              of this Agreement shall not constitute a waiver of any such
              provision.  The past waiver of a provision by Distributors or
              Companies shall not constitute a course of conduct or a waiver in
              the future of that same provision.

       7.3    INDEMNIFICATION
              7.3.1  INDEMNITY DEFINITIONS.  The following definitions shall
                     apply for purposes of this Article VII (c):

                     "Claim" means any civil, administrative and/or criminal
                     action, claim, suit, and/or legal proceeding of any kind
                     that is brought against an Indemnitee by a third party (the
                     "Claimant") unaffiliated with such Indemnitee.

                     "Costs" means any damages, settlements, judgments, losses,
                     expenses interest, penalties, reasonable legal fees and
                     disbursements (including without limitation fees and costs
                     for investigators, expert witnesses and other litigation
                     advisors) and other costs incurred by an Indemnitee to
                     investigate, defend or settle a Claim, except that no
                     settlement payments shall be included in Costs unless the
                     applicable Indemnitor has given its prior express written
                     consent to the settlement, which consent shall not be
                     unreasonably withheld.  Costs shall not include any
                     expenses for any investigation or defense of a Claim
                     incurred by Indemnitee after the date on which Indemnitor
                     gives notice of its election to assume the defense of such
                     Claim.

              7.3.2  PARTIES LIABILITY.

                     (i) Broker-Dealer shall indemnify and hold Distributors and
                     Companies, and each of their respective directors,
                     officers, and employees, harmless from any Costs sustained
                     by Companies and/or the Distributors (including reasonable
                     attorneys' fees) on account of any claim, arising out of,
                     based upon, or otherwise relating to: (a) any breach of any
                     representation, warranty, covenant, agreement or other
                     obligation of Broker-Dealer or any Affiliate contained in
                     this Agreement; (b) a violation of state and/or federal
                     laws, regulations or rules, or the rules and regulations of
                     any applicable self-regulatory organizations by
                     Broker-Dealer or any Affiliate; (c) negligent, fraudulent,
                     illegal or wrongful action or inaction by Broker-Dealer or
                     any Affiliate or by persons employed or appointed by
                     Broker-Dealer.  In any of the foregoing cases Broker-Dealer
                     or any Affiliate shall be an "Indemnitor" as such term is
                     used in this Agreement and each of the Distributors and the
                     Companies, and each of their directors, officers and
                     employees, as applicable, shall be an "Indemnitee" as such
                     term is used in this Agreement.


                                          6
<PAGE>

                     (ii) Each Affiliate shall indemnify and hold Distributors
                     and Companies, and each of their respective directors,
                     officers, and employees, harmless from any Costs sustained
                     by Companies or Distributors (including reasonable
                     attorneys' fees) on account of any claim, arising out of,
                     based upon, or otherwise relating to: (a) any breach of any
                     representation, warranty, covenant, agreement or other
                     obligation of the Affiliate contained in this Agreement;
                     (b) a violation of state and/or federal laws, regulations
                     or rules, or the rules and regulations of any applicable
                     self-regulatory organizations by Affiliate; (c) negligent,
                     fraudulent, illegal or wrongful action or inaction by the
                     Affiliate or by persons employed or appointed by the
                     Affiliate.  In any of the foregoing cases the Affiliates
                     shall be an "indemnitor" as such term is used in this
                     Agreement and each of the Distributors and the Companies,
                     and each of their directors, officers and employees, as
                     applicable, shall be an "indemnitee" as such term is used
                     in this Agreement.

                     (iii) Distributors shall indemnify and hold Broker-Dealer,
                     and its directors, officers, and employees, harmless from
                     any Costs sustained by Broker-Dealer (including reasonable
                     attorneys' fees) on account of, arising out of, based upon,
                     or otherwise relating to: (a) any breach of any
                     representation, warranty, covenant, agreement or other
                     obligation of Distributors contained in this Agreement; (b)
                     a violation of state and/or federal laws, regulations or
                     rules, or the rules and regulations of any applicable
                     self-regulatory organizations by Distributors; (c)
                     negligent, fraudulent, illegal or wrongful action or
                     inaction by Distributors or by persons employed or
                     appointed by Distributors other than Broker-Dealer or its
                     employees or appointees.  In any of the foregoing cases
                     Distributors shall be an "Indemnitor" as such term is used
                     in this Agreement and Broker-Dealer, and each of its
                     directors, officers and employees, as applicable, shall be
                     an "Indemnitee" as such term is used in this Agreement.

                     (iv) Companies shall indemnify and hold Broker-Dealer, and
                     its directors, officers, and employees, harmless from any
                     Costs sustained by Broker-Dealer (including reasonable
                     attorneys' fees) on account of, arising out of any claim,
                     based upon, or otherwise relating to: (a) any breach of any
                     representation, warranty, covenant, agreement or other
                     obligation of Companies contained in this Agreement; (b) a
                     violation of state and/or federal securities or insurance
                     laws, regulations or rules, or the rules and regulations of
                     any applicable self-regulatory organizations by
                     Companies(c) negligent, fraudulent, illegal or wrongful
                     action or inaction by Companies or by persons employed or
                     appointed by Companies other than Broker-Dealer or its
                     employees or appointees.  In any of the foregoing cases
                     Companies shall be an "Indemnitor" as such term is used in
                     this Agreement and Broker-Dealer, and each of its
                     directors, officers and employees, as applicable, shall be
                     an "Indemnitee" as such term is used in this Agreement.

              7.3.3  INDEMNIFICATION CLAIM NOTICE AND CASE MANAGEMENT.
              Indemnitor shall not be liable under this indemnification
              provision with respect to any Claim made against an Indemnitee
              unless that Indemnitee shall have notified the Indemnitor in
              writing within a reasonable time after the summons or other first
              legal process giving information of the nature of the Claim shall
              have been served upon that Indemnitee (or after the Indemnitee
              shall have received notice of such service on any designated
              agent).  At any time after such notice, any Indemnitor may deliver
              to the Indemnitee its written acknowledgment that Indemnitee is
              entitled to indemnification under this Article VII (c) for all
              Costs associated with the Claim.  The Indemnitor shall thereafter
              be entitled to assume the defense of the Claim and shall bear all
              expenses associated therewith, including without limitation,
              payment on a current basis of all previous Costs incurred by the
              Indemnitee in relation to the Claim from the date the Claim was
              brought.  After notice from any Indemnitor to the Indemnitee of an
              election to assume the defense of any Claim, the Indemnitee shall
              not be liable to the Indemnitors for any Costs related to the
              Claim.  Until such time as Indemnitee receives notice of an
              Indemnitor's election to assume the defense of any Claim,
              Indemnitee may defend itself against the Claim and may


                                          7
<PAGE>

              hire counsel and other experts of its choice and Indemnitors,
              jointly and severally, shall be liable for payment of counsel and
              other expert fees on a current basis as the same are billed.

              7.3.4  COOPERATION AND UPDATES.  To the extent that an Indemnitee
              makes a claim for indemnification against an Indemnitor,
              Indemnitee and Indemnitor shall each give the other reasonable
              access during normal business hours to its books, records and
              employees and those books, records and employees within its
              control in connection with the Claim for which indemnification is
              sought hereunder and shall otherwise cooperate with one another in
              the defense of any such Claim.  Regardless of which party defends
              a particular Claim, the defending party shall give the other
              parties written notice of any significant development in the case
              as soon as practicable, but in any event within five (5) business
              days after such development.  In no event shall either Indemnitor
              or Indemnitee be required to divulge any privileged information.

              7.3.5  SETTLEMENT.  If an Indemnitee is defending a Claim and: (1)
              a settlement proposal is made by the Claimant, or (2) the
              Indemnitee desires to present a settlement proposal to the
              Claimant, then the Indemnitee promptly shall notify the
              Indemnitors of such settlement proposal together with its
              counsel's recommendation and shall request the consent of
              Indemnitor(s).  Indemnitee, in making such request, shall make
              available complete access, during normal business hours, to any
              and all discovery up to the date of such request.  If the
              Indemnitee desires to enter into the settlement and less than all
              of the Indemnitors consent within five (5) business days (unless
              such period is extended, in writing, by mutual agreement of the
              parties hereto), then Indemnitors, from the time they fail to
              consent forward, shall defend the Claim and shall further
              indemnify the Indemnitees for all Costs associated with the Claim
              which are in excess of the proposed settlement amount even if the
              same were not originally covered under this Article VII.  If an
              Indemnitor is defending a Claim and a settlement requires an
              admission of liability by Indemnitee or would require Indemnitee
              to either take action (other than purely ministerial action) or
              refrain from taking action (due to an injunction or otherwise),
              Indemnitor may agree to such settlement only after obtaining the
              express, written consent of Indemnitee.

              7.3.6  INDEMNIFICATION DISPUTES.  In the event that there is a
              dispute between an Indemnitee and an Indemnitor over whether the
              Indemnitor is liable for a Claim, then:

                     (i)   Indemnitee shall defend the Claim in accordance with
                     the provisions of Article VII(c)(3) hereof in the same
                     manner and under the same terms as though there were no
                     dispute and Indemnitor had failed to elect to defend the
                     Claim itself and Indemnitee shall have the right to settle
                     such Claim pursuant to Article VII(c)(5) hereof;

                     (ii)  In addition, Indemnitor must advise Indemnitee of
                     such a dispute and the reasons therefor, in writing, within
                     thirty (30) days after the Claim is first tendered to
                     Indemnitor, unless the Indemnitee and Indemnitor mutually
                     agree, in writing, to extend the time; and

                     (iii)  The Indemnitee and the Indemnitor shall use good
                     faith efforts to resolve any dispute as to Indemnitor's
                     indemnification obligation.  Should those efforts fail to
                     resolve the dispute, the ultimate resolution shall be
                     determined in a DE NOVO proceeding, separate and apart from
                     the underlying Claim brought by the Claimant, before a
                     court of competent jurisdiction.  No finding or judgment in
                     any litigation on the underlying Claim, except for Cost
                     amounts, shall be given any weight in the court proceedings
                     on the indemnification issue.  Either party may initiate
                     such proceedings with a court of competent jurisdiction at
                     any time following the termination of the efforts by such
                     parties to resolve the dispute (termination of such efforts
                     shall be deemed to have occurred 30 days from the
                     commencement of the same unless such time period is


                                          8
<PAGE>

                     extended by the written mutual agreement of the parties).
                     The prevailing party in such a proceeding shall be entitled
                     to recover reasonable attorneys' fees, costs and expenses.
                     From and after the date on which responsibility for a
                     disputed indemnity Claim is resolved: (I) Indemnitor shall
                     continue to pay all Costs that are determined by the
                     parties or the court, as the case may be, to be allocable
                     to any such Claim which is determined to be a Claim subject
                     to indemnity, and (II) Indemnitee shall (i) pay all future
                     Costs that are determined by the parties or the court, as
                     the case may be, to be allocable to any such Claim which is
                     determined to be a Claim not subject to indemnity and (ii)
                     reimburse Indemnitor for all Costs previously paid by
                     Indemnitor which are allocable to such Claim determined to
                     be a claim not subject to indemnity.


              Broker-Dealer and Affiliates expressly authorize Companies
              Distributors to charge against all compensation due or to become
              due to Broker-Dealer or its Affiliates under this Agreement any
              monies paid or liabilities incurred by Companies or Distributors
              under this Indemnification provision.


       7.4    ASSIGNMENT
              No assignment of this Agreement, or commissions payable hereunder,
              shall be valid unless authorized in writing by each of the
              non-assigning parties.  Every assignment shall be subject to any
              indebtedness and obligation of the assigning parties that may be
              due or become due to non-assigning parties and any applicable
              state insurance regulations pertaining to such assignments.

       7.5    OFFSET
              Broker-Dealer expressly authorizes Companies to deduct, from any
              monies due under this Agreement, every indebtedness or obligation
              of Broker-Dealer to Companies or to any of its affiliates under
              this agreement.

       7.8    CONFIDENTIALITY
              Companies, Distributors and Broker-Dealer agree that all facts or
              information received by any party related to a contract owner
              shall remain confidential, unless such facts or information is
              required to be disclosed by any regulatory authority or court of
              competent jurisdiction.

       7.9    PRIOR AGREEMENTS
              This Agreement terminates all previous agreements, if any, between
              Companies, Distributors and Broker-Dealer with respect to the
              Products set forth in the lines of business page(s).  However, the
              execution of this Agreement shall not affect any obligations which
              have already accrued under any prior agreement.

       7.10   CHOICE OF LAW
              This Agreement shall be governed by and construed in accordance
              with the laws of the State of Connecticut.

By executing this Broker-Dealer Sales and Supervision Agreement, Broker-Dealer
acknowledges that it has read this Agreement in its entirety and is in agreement
with the terms and conditions outlining the rights of Distributors, Companies
and Broker-Dealer and Affiliates under this Agreement.

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement to be
effective as set forth above, upon the effective date below.


                                          9

<PAGE>

                                     EXHIBIT A

In accordance with Section V.(c) of the Broker-Dealer-Dealer Sales and
Supervision Agreement, no compensation is payable unless Broker-Dealer and
Registered Representative have first complied with all applicable state
insurance laws, rules and regulations.  Distributors must ensure that any
Broker-Dealer with whom Distributors intend to enter into an Agreement and any
Registered Representatives meet the licensing and registration requirements of
the state(s) Broker-Dealer operates in and the NASD.

Companies are required by the Insurance Department in all 50 states to pay
compensation only to individuals and entities that are properly insurance
licensed and, in some states, appointed.  For registered products, Distributors
must also comply with NASD regulations that require Distributors to pay
compensation to an NASD registered Broker-Dealer.  Distributors must comply with
both state and NASD requirements.

Distributors require confirmation that Broker-Dealer holds current state
insurance licenses or markets insurance products through a contractual affiliate
or wholly-owned agency, which is properly insurance licensed and, if applicable,
appointed.  If Broker-Dealer is properly state licensed then compensation must
be paid to Broker-Dealer in compliance with both state and NASD requirements.

If Broker-Dealer is not state insurance licensed and relies on the licensing of
a contractual affiliate or wholly-owned agency, the SEC has issued a number of
letters indicating that, under specific limited circumstances, it will take "no
action" against insurers (Distributors) paying compensation on registered
products to Broker-Dealer's contractual affiliate or wholly-owned agency.  At
the request of Broker-Dealer, Distributors will provide copies of several of
these letters as well as a summary of their requirements.

If Broker-Dealer intends to rely on one of these "no-action" letters, legal
counsel for Broker-Dealer must confirm to Distributors in writing that all of
the circumstances of any one of the SEC no-action letters are applicable,
specifically including the jurisdictions for which Broker-Dealer does not hold
current state insurance licenses.  Broker-Dealer's counsel must summarize each
point upon which the no-action relief was granted and represent that
Broker-Dealer's method of operation is identical or meets the same criteria.
Broker-Dealer's counsel must also confirm that, to the best of counsel's
knowledge, the SEC has not rescinded or modified its no-action position since
the letter was released.

The Broker-Dealer Sales and Supervision Agreement will not be finalized and no
new applications for products will be accepted or no new compensation will be
payable unless the appropriate proof of state licensing or no-action relief is
confirmed.  In addition to a letter from Broker-Dealer's counsel, copies of the
following documentation is required:

              insurance licenses for all states in which Broker-Dealer holds
              these licenses and intends to operate and/or;

              insurance licenses for any contractual affiliate or wholly-owned
              agency; and

              the SEC No-Action Letter that will be relied upon.


                                          10


<PAGE>

EXHIBIT A.




                      ROYAL LIFE INSURANCE COMPANY OF AMERICA
               DESCRIPTION OF TRANSFER AND REDEMPTION PROCEDURES AND
                  METHOD OF COMPUTING ADJUSTMENTS IN PAYMENTS AND
                         ACCOUNT VALUES UPON CONVERSION TO
                              FIXED BENEFIT CONTRACTS

This document sets forth, as required by Rule 6e-3(T)(b)(12)(ii), the
administrative procedures that will be followed by Royal Life Insurance Company
of America ("Royal") in connection with the issuance of its modified single
premium variable life insurance Policy (the "Policy"), the transfer of assets
held thereunder, and the redemption by Policy Owners of their interests in said
Policies.  The document also describes the method that Royal will use in
adjusting the payments and cash values when a Policy is exchanged for a fixed
benefit insurance policy pursuant to Rule 6e-3(T)(b)(13)(v)(B).


TRANSFER AND REDEMPTION PROCEDURES

I.   PURCHASE AND RELATED TRANSACTIONS

     A.   PREMIUMS AND UNDERWRITING STANDARDS

     This Policy is a modified single premium policy. The Policy permits the
     Policy Owner to pay a large single premium and, subject to restrictions,
     additional premiums. The Policy Owner may choose a minimum initial premium
     of 80%, 90% or 100% of the Guideline Single Premium (based on the Face
     Amount).  Under current underwriting rules, which are subject to change,
     Applicants between the ages of 45 and 80 who pay an initial premium of 100%
     of the Guideline Single Premium are eligible for simplified underwriting
     without a medical examination if they meet simplified underwriting
     standards as evidenced in their responses in the application.  For Policy
     Owners who pay an initial premium of 80% or 90% of the Guideline Single
     Premium or who are below age 45 or above age 80, standard underwriting
     applies.  Additional premiums are allowed if they do not cause the Policy
     to fail to meet the definition of a life insurance policy under Section
     7702 of the Internal Revenue Code.  Royal may require evidence of
     insurability for any additional premiums which increase the Coverage
     Amount.  Generally, the minimum initial premium Royal will accept is
     $10,000.  Royal may accept less than $10,000 under certain circumstances.
     No premium will be accepted which does not meet the tax qualification
     guidelines for life insurance under the Code.  The Policies will be offered
     and sold pursuant to established underwriting standards and in accordance
     with state insurance laws, which prohibit unfair discrimination among
     Policy Owners, but recognize that premiums must be based upon factors such
     as age, health or occupation.
<PAGE>

     B.   APPLICATION AND INITIAL PREMIUM PROCESSING

     Upon receipt of a completed application, Royal will follow certain
     insurance underwriting (i.e., evaluation of risks) procedures designed to
     determine whether the applicant is eligible for simplified or standard
     underwriting for determining insurability.  Standard underwriting may
     involve such verification procedures as medical examinations and may
     require that further information be provided by the proposed Insured before
     a determination can be made. A Policy will not be issued, and consequently
     a Policy Issue Date established, until underwriting procedures have been
     completed.

     If a premium is submitted with the Policy application, insurance coverage
     will begin immediately if the proposed Insured is insurable at a standard
     rate under a conditional receipt agreement.  Otherwise, insurance coverage
     will not begin until the Policy's Issue Date.  In either case, the Policy
     when issued will be effective from the date Royal receives the initial
     premium at its National Service Center.

     If a premium is not paid with the application, insurance coverage will
     begin and the Policy will be effective on the later of the date the
     underwriting determination is made or on the date the premium is received.

     C.   PREMIUM ALLOCATION

     In the application for a Policy, the Policy Owner can allocate the initial
     premium among the various Sub-Accounts.  Royal will allocate the entire
     premium to the Money Market Sub-Account available under the Policy.  At a
     later date, the value of the Policy Owner's interest in the Money Market
     Sub-Account will be allocated among the Sub-Accounts of Separate Account
     Five in accordance with the Policy Owner's instructions in the application
     for insurance.

     D.   POLICY LOANS

     A Policy Owner may obtain a cash loan from Royal, which is secured by the
     Policy.  The aggregate amount of all loans (including the currently applied
     for loan) may not exceed 90% of the Cash Value at the time a loan is
     requested.

     The amount of each loan will be transferred on a Pro Rata Basis from each
     of the Sub-Accounts (unless the Policy Owner specifies otherwise) to the
     Loan Account.  The Loan Account is a mechanism used to ensure that any
     outstanding Indebtedness remains fully secured by the Policy values.

     LOAN INTEREST AND CREDITED INTEREST

     Interest will accrue daily on the indebtedness at the Policy Loan Interest
     Rate indicated in the Policy. The difference between the value of the Loan
     Account and the Indebtedness will be transferred on a Pro Rata Basis from
     the Sub-Accounts to the Loan Account on each Monthly Activity Date.



                                         -2-
<PAGE>

     The amounts allocated to the Loan Account will bear interest at a rate of
     4% per annum (6% for "Preferred Loans").  The amount of the Loan Account
     that equals the difference between the Account Value and the total of all
     premiums paid under the Policy is considered a "Preferred Loan."  The loan
     interest rate that Royal will charge on all loans is 6% per annum.

     LOAN REPAYMENTS

     Policy Owners can repay any part of or the entire loan at any time

     The amount of loan repayment will be deducted from the Loan Account and
     will be allocated among the Sub-Accounts in the same percentage as premiums
     are allocated

     TERMINATION DUE TO EXCESSIVE INDEBTEDNESS

     If total Indebtedness equals or exceeds the Cash Value, the Policy will
     terminate 61 days after we have mailed notice to the Policy Owner's last
     known address and that of any assignees of record.  If sufficient loan
     repayment if not made by the end of the Grace Period, the Policy will end
     without value.

     EFFECT OF LOANS ON ACCOUNT VALUE

     A loan, whether or not repaid, will have a permanent effect on the Account
     Value because the investment results of each Sub-Account will apply only to
     the amount remaining in such Sub-Accounts.  The longer a loan is
     outstanding, the greater the effect is likely to be.  The effect could be
     favorable or unfavorable.  If the Sub-Accounts earn more than the annual
     interest rate for funds held in the Loan Account, a Policy Owner's Account
     Value will not increase as rapidly as it would have had no loan been made.
     If the Sub-Accounts earn less than the Loan Account, the Policy Owners
     Account Value will be greater than it would have been had no loan been
     made. Also, if not repaid, the aggregate amount of the indebtedness under
     the Policy will reduce the Death Proceeds and Cash Surrender Value
     otherwise payable.

     II.  TRANSFER AMONG INVESTMENT DIVISIONS

     Each Sub-Account available under the Policies invests in shares of an
     open-end diversified management investment company registered with the
     Securities and Exchange Commission.  At any time, the Policy Owner may
     transfer value among the Funds.  We reserve the right at a future date to
     limit the size of transfers and remaining balances and to limit the number
     and frequency of transfers.

     A transfer will take effect on the date the written request (or telephone
     request) is received at Royal unless a later date is designated in the
     request for transfer.  A transfer between the Loan Account and the Separate
     Account incident to the repayment or making of a loan under the Policy will
     not be considered a transfer.  A transfer from the Money Market Sub-Account


                                         -3-
<PAGE>

     at the end of the Right to Cancel Period or a transfer arising because of a
     substitution of securities by Royal will also not be considered a transfer.

     III. "REDEMPTION" PROCEDURES: SURRENDER AND RELATED TRANSACTIONS

     A.   SURRENDER FOR CASH VALUE

     At any time before the death of the Insured and while the Policy is in
     force, the Policy Owner may completely surrender the Policy by written
     request.  The surrender payment from the Sub-Accounts will be made within
     seven days after Royal receives the written request, unless payment is
     postponed pursuant to the relevant provision of the Investment Company Act
     of 1940.

     B.   BENEFIT CLAIMS

     As long as the Policy remains in force, Royal will usually pay the Death
     Proceeds to the named Beneficiary within seven days after receipt of due
     proof of death of the Insured unless the Policy is contested.  Payment of
     the Death Proceeds may be postponed as permitted pursuant to the relevant
     provisions of the Investment Company Act of 1940.

     The Death Proceeds equal the Death Benefit under the Policy less all
     Indebtedness under the Policy.  The Death Benefit will be determined on the
     date Royal receives written notice of death and is a function of the Death
     Benefit Option chosen by the Policy Owner.

     In lieu of payment of the death proceeds in a single sum, an election may
     be made to apply all or a portion of the proceeds under one of the fixed
     and variable benefit settlement options described in the Policy and
     Prospectus or a combination of options.  The election may be made by the
     Policy Owner during the Insured's lifetime.  The Beneficiary may make or
     change an election within 90 days of the death of the Insured, unless the
     Policy Owner has made an irrevocable election.  The fixed and variable
     benefit settlement options are subject to the restrictions and limitations
     set forth in the Policy and Prospectus.

     C.   POLICY LAPSE

     The Policy will terminate 61 days after a Monthly Activity Date on which
     the Cash Surrender Value is less than zero.  The 61-day period is the Grace
     Period.  If sufficient premium is not paid by the end of the Grace Period,
     the Policy will terminate without value.  The Company will mail the Policy
     Owner and any assignee written notice of the amount of premium that will be
     required to continue the Policy in force at least 61 days before the end of
     the Grace Period.  The premiums required will be no greater than the amount
     required to pay three (3) Monthly Deduction Amounts as of the day the Grace
     Period began.  If that premium is not paid by the end of the Grace Period,
     the Policy will terminate.


                                         -4-
<PAGE>

     If the Policy lapses, the Policy Owner may reinstate the Policy by payment
     of the reinstatement premium (and any applicable charges) shown in the
     Policy.  A request for reinstatement may be made at any time within five
     years of lapse.  If a loan was outstanding at the time of lapse, Royal will
     require repayment of the loan before permitting reinstatement or the loan
     will also be reinstated.  In addition, Royal reserves the right to require
     satisfactory evidence of insurability.

     D.   POLICY LOANS

     See "Purchase and Related Transactions," Section 1. D. on page 2 of this
     Exhibit.

                       CASH ADJUSTMENT UPON EXCHANGE OF POLICY

If the Policy is in effect, the Policy Owner may exchange it any time, during
the 24 months following its Date of Issue, for a permanent life insurance policy
offered by Royal on the life of the Insured without evidence of insurability.

The new Policy will be issued by Royal with an amount at risk which equals or is
less than the amount at risk in effect on the Exchange Date and with premiums
based on the same risk classification as the Policy.

This exchange is subject to adjustments in payments and Account Values to
reflect variances, if any, in the payments and Account Values under the Policy
and the new Policy.


                                         -5-


<PAGE>

                                                                      EXHIBIT 2

                                                                         [LOGO]


   
February 5, 1999                        LYNDA GODKIN
                                        Senior Vice President, General Counsel
                                        Corporate Secretary
    

Board of Directors
Royal Life Insurance Company of America
200 Hopmeadow Street
Simsbury, CT  06089

RE:  SEPARATE ACCOUNT TWO ("Separate Account")
     ROYAL LIFE INSURANCE COMPANY OF AMERICA ("Company")

Dear Sir/Madam:

In my capacity as General Counsel of the Company, I have supervised the 
establishment of the Separate Account by the Board of Directors of the 
Company as a separate account for assets applicable to Policies offered by 
the Company pursuant to Connecticut Law.  I have participated in the 
preparation of the registration statement for the Separate Account on Form 
S-6 under the Securities Act of 1933 with respect to the Policies.

I am of the following opinion:

1.   The Separate Account is a duly authorized and existing separate account
     established pursuant to the provisions of Section 38a-433 of the
     Connecticut Statutes.


2.   To the extent so provided under the Policiess, that portion of the assets
     of the Separate Account equal to the reserves and other contract
     liabilities with respect to the Separate Account will not be chargeable
     with liabilities arising out of any other business that the Company may
     conduct.

3.   The Policies, when issued as contemplated by the Form S-6 Registration
     Statement, will constitute legal, validly issued and binding obligations 
     of the Company.

I hereby consent to the filing of this opinion as an exhibit to the Form S-6 
registration statement for the Policies and the Separate Account.

Sincerely,

/s/ Lynda Godkin

Lynda Godkin

<PAGE>


                       PricewaterhouseCoopers LLP


                     CONSENT OF INDEPENDENT AUDITOR

We agree to the inclusion in this registration statement on Form S-6 (File 
No. 333-65437) of our report, dated February 6, 1998, on our audit of the 
statutory basis financial statements of Royal Life Insurance Company of 
America and Subsidiaries as of and for the year ended December 31, 1997. We 
also consent to the reference to us under the heading "Experts" in this
registration statement.


                                       /s/ PricewaterhouseCoopers LLP

February 5, 1999
Detroit, Michigan


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