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SUPPLEMENT DATED JULY 1, 1999 TO
PROSPECTUS DATED MAY 1, 1999 FOR
DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"UNDERLYING MUTUAL FUND ANNUAL EXPENSES" TABLE AT PAGES 7 THROUGH 8 OF YOUR
PROSPECTUS, IS AMENDED AS FOLLOWS:
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND AVERAGE NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
- --------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nationwide(R)Bond Fund 0.50% 0.36% 0.00% 0.86%
- --------------------------------------------------------------------------------------------------------------------
Nationwide(R)Fund 0.56% 0.21% 0.00% 0.77%
- --------------------------------------------------------------------------------------------------------------------
Nationwide(R)Growth Fund 0.58% 0.27% 0.00% 0.85%
- --------------------------------------------------------------------------------------------------------------------
Nationwide(R)Money Market Fund Prime Shares 0.40% 0.29% 0.00% 0.69%
- --------------------------------------------------------------------------------------------------------------------
Nationwide(R)Intermediate U.S. Government Bond Fund 0.43% 0.36% 0.00% 0.79%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value to calculate the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nationwide(R)Intermediate U.S. Government Bond Fund 0.50% 0.36% 0.00% 0.86%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
2. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"EXAMPLE" CHART AT PAGES 9 THROUGH 11, IS AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under the contract assuming a $1,000 investment, 5% annual return, and
no change in expenses. These dollar figures are illustrative only and should not
be considered a representation of past or future expenses. Actual expenses may
be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects the standard 7 year CDSC schedule and the
maximum amount of variable account charges that could be assessed to a contract
(1.30%). The Contract Maintenance Charge is expressed as a percentage of the
average contract account
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size for existing contracts. Since the average contract account size is greater
than $1000, the expense effect of the Contract Maintenance Charge is reduced
accordingly. Deductions for premium taxes are not reflected but may apply.
The summary of contract expenses and example are to help contract owners
understand the expenses associated with the contract.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide(R)Bond Fund - 94 118 152 266 24 73 125 266 * 73 125 266
Class D
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R)Fund - Class D 93 115 147 257 23 70 120 257 * 70 120 257
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R)Growth Fund - 94 117 151 265 24 72 124 265 * 72 124 265
Class D
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R)Money Market Fund 92 112 143 248 22 67 116 248 * 67 116 248
Prime Shares
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R)Intermediate 93 116 148 259 23 71 121 259 * 71 121 259
U.S. Government Bond Fund
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. THE FIRST PARAGRAPH OF THE "DOLLAR COST AVERAGING" PROVISION ON PAGE 34 OF
YOUR PROSPECTUS IS AMENDED TO DELETE THE FOLLOWING SENTENCE:
"Contract owners (or annuitants if authorized) may participate in this
program if their contract value is $15,000 or more."
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