VARIABLE UNIVERSAL LIFE
COLUMBUS LIFE INSURANCE COMPANY
Supplement dated September 26, 2000
to the Prospectus dated May 1, 2000
The first paragraph under the "SURRENDER CHARGES" section on page 5 of the
prospectus is deleted and replaced with the following:
"Full Surrender
Applies during the first 14 years since your Policy Date or since the
date of any increase in Specified Amount if you surrender your Policy,
or if it terminates at the end of a Grace Period because no
continuation provision applies and we did not receive sufficient
premium to keep it in effect - an amount up to the full surrender
charge shown in your most recent Policy Schedule and in Supplement D to
this prospectus is deducted from Account Value at time of surrender
(maximum of $44.90 per $1,000 decrease in Specified Amount). The
surrender charge applicable to any given policy may be less than the
maximum surrender charge described in Supplement D."
The Second paragraph under the "SURRENDER CHARGES" section on page 5 of the
prospectus is deleted and replaced with the following:
"Other Decrease in Specified Amount (Upon Your Request or as a Result
of Partial Surrender or Withdrawal)
Applies during the first 14 years since your Policy Date or since the
date of any increase in Specified Amount if you request a decrease in
Specified Amount, or the Specified Amount decreases as a result of
partial surrender or withdrawal - a pro rata portion of an amount up to
the full surrender charge shown in your most recent Policy Schedule and
in Supplement D to this prospectus is deducted from Account Value at
time of surrender or withdrawal (maximum of $44.90 per $1,000 decrease
in Specified Amount), plus a $50 withdrawal fee for your second and
each additional withdrawal in a Policy Year. The surrender charge
applicable to any given policy may be less than the maximum surrender
charge described in Supplement D."
<PAGE>
The second row of the table under the "SUMMARY OF CHARGES" section on page 39 of
the prospectus is deleted and replaced with the following:
<TABLE>
<CAPTION>
------------------- --------------------- ------------------------------------------- -------------- -----------------
MORTALITY AND SURRENDER CHARGES TRANSFER WITHDRAWAL FEES
EXPENSE RISK CHARGE CHARGES
------------------- --------------------- ------------------------------------------- -------------- -----------------
<S> <C> <C> <C> <C>
How Much Charged? The maximum charge This charge is based on a specific dollar $10 per $50 per
is 1.00% annually. amount, which is applied to each $1,000 transfer. withdrawal.
The current decrease in the portion of the Specified
effective annual Amount subject to the charge. The charge
rate of the charge decreases on a monthly basis after the
is 0.90%. first 10 years in the applicable 14-year
period. See your Policy Schedule for
the maximum surrender charges
applicable to your Policy. The
surrender charge applicable to any
given policy may be less than the
maximum surrender charge described in
the prospectus.
------------------- --------------------- ------------------------------------------- -------------- -----------------
</TABLE>
The first paragraph under the "CONFIRMATIONS AND STATEMENTS" section on page 51
of the prospectus is deleted and replaced with the following:
"We will send you a confirmation of each premium payment, transfer,
loan and partial withdrawal. We will also send you periodic statements
showing the value of your investments in the Sub-Accounts and the Fixed
Account and listing all financial transactions made with respect to
your Policy during that period."
The sixth paragraph under the "SUPPLEMENT A - POLICY ILLUSTRATION" section on
page A-1 of the prospectus is deleted and replaced with the following:
"The tables reflect deduction of all applicable Policy charges and
deductions described in the Prospectus for the hypothetical Insured.
The Net Cash Surrender Values illustrated in the tables also reflect
deduction of the maximum applicable surrender charges. The surrender
charge applicable to any given policy may be less than the maximum
surrender charge described in the prospectus. The current Policy
charges and deductions and the higher guaranteed maximum Policy charges
and deductions Columbus Life may charge are reflected in separate
tables on each of the following pages. The amounts shown are as of the
end of each Policy Year."
2
<PAGE>
The second paragraph under "NON-GUARANTEED ELEMENTS OF THE POLICY" section of
the "COLUMBUS LIFE INSURANCE COMPANY - ILLUSTRATION #1" section on page A-4 of
the prospectus is deleted and replaced with the following:
"The cost of Insurance and the policy charges and surrender charges are
guaranteed to be no higher than the maximums stated in the policy and
prospectus. The current cost of insurance, current policy charges and
current surrender charges are not guaranteed. The Account Value will
depend on the allocation to and the performance of the various
sub-accounts as well as the non-guaranteed elements of the policy. No
minimum Account Value is guaranteed for amounts allocated to the
sub-accounts."
The second paragraph under the "IMPORTANT NOTES" section of the "COLUMBUS LIFE
INSURANCE COMPANY - ILLUSTRATION #1" section on page A-17 of the prospectus is
deleted and replaced with the following:
"The current per policy expense charge is $6.00 per month. The maximum
per policy expense charge is $7.00 per month. The current premium
expense charge is 4.75% for policy years 1-20 and 2.75% thereafter. The
maximum premium expense charge is 5.50%. The premium tax charge will
vary by state. On a current basis it will be equal to the state premium
tax rate plus .55% for the federal DAC (Deferred Acquisition Cost) tax.
The maximum tax charge is guaranteed to be no greater than 3.50%. The
Account Values, Net Cash Surrender Values and Death Benefits shown in
this illustration reflect the deduction of these charges. The Net Cash
Surrender Values also reflect the deductions of the maximum of the
applicable surrender charges. The surrender charge applicable to any
given policy may be less than the maximum surrender charge described in
the prospectus and in this illustration."
The second paragraph under "NON-GUARANTEED ELEMENTS OF THE POLICY" section of
the "COLUMBUS LIFE INSURANCE COMPANY - ILLUSTRATION #1" section on page A-19 of
the prospectus is deleted and replaced with the following:
"The cost of Insurance and the policy charges and surrender charges are
guaranteed to be no higher than the maximums stated in the policy and
prospectus. The current cost of insurance, current policy charges and
current surrender charges are not guaranteed. The Account Value will
depend on the allocation to and the performance of the various
sub-accounts as well as the non-guaranteed elements of the policy. No
minimum Account Value is guaranteed for amounts allocated to the
sub-accounts."
The second paragraph under the "IMPORTANT NOTES" section of the "COLUMBUS LIFE
INSURANCE COMPANY - ILLUSTRATION #2" section on page A-29 of the prospectus is
deleted and replaced with the following:
"The current per policy expense charge is $6.00 per month. The maximum
per policy expense charge is $7.00 per month. The current premium
expense charge is 4.75% for policy years 1-20 and 2.75% thereafter. The
maximum premium
3
<PAGE>
expense charge is 5.50%. The premium tax charge will vary by state. On
a current basis it will be equal to the state premium tax rate plus
.55% for the federal DAC (Deferred Acquisition Cost) tax. The maximum
tax charge is guaranteed to be no greater than 3.50%. The Account
Values, Net Cash Surrender Values and Death Benefits shown in this
illustration reflect the deduction of these charges. The Net Cash
Surrender Values also reflect the deductions of the maximum of the
applicable surrender charges. The surrender charge applicable to any
given policy may be less than the maximum surrender charge described
in the prospectus and in this illustration."
The title and first paragraph under the "SUPPLEMENT D - TABLE OF SURRENDER
CHARGES" section on page D-1 of the prospectus are deleted and replaced with the
following:
"SUPPLEMENT D - TABLE OF MAXIMUM SURRENDER CHARGES
The Maximum Surrender Charges per $1,000 of decrease in Specified
Amount (except for decreases caused by a change of death benefit
options) for Policy Years 1-10 are listed in the table below. The
surrender charge applicable to any given policy may be less than the
maximum surrender charge described below. Surrender charges decrease
linearly to zero between the end of year 10 and the end of year 14."
4
