<PAGE>
SUPPLEMENT DATED JUNE 30, 2000
TO
PROSPECTUSES DATED MAY 1, 2000
This Supplement is intended to be distributed with all prospectuses dated May 1,
2000 for certain variable life insurance policies and variable annuity contracts
issued by John Hancock Life Insurance Company or John Hancock Variable Life
Insurance Company (the "Product Prospectuses"). The variable life insurance
policies involved bear the title "Medallion Variable Life", "Medallion Variable
Universal Life II", "Flex-V1", "Flex-V2", or "Annual Premium Variable Life". The
variable annuity contracts involved bear the title "Accommodator Variable
Annuity", "Accommodator 2000 Variable Annuity", "Independence Variable Annuity",
"Independence Preferred Variable Annuity", "Independence 2000 Variable Annuity",
or "Marketplace Variable Annuity." This Supplement contains amendments to the
Product Prospectuses and to the prospectus for the underlying John Hancock
Variable Series Trust I.
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GUIDE TO THIS SUPPLEMENT
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. The table on the cover page of each Product Prospectus is amended to add
Morgan Stanley Dean Witter Investment Management Inc. as an additional
manager of the Real Estate Equity investment option.
. The pages of the John Hancock Variable Series Trust I prospectus that
describe the Goal and Strategy, Subadviser, Past Performance, Main Risks and
Financial Highlights of the Real Estate Equity Fund are deleted and replaced
by the material on pages 2 and 3 of this Supplement. The material on pages 2
and 3 of this Supplement describe a new "multi-manager" approach for the Real
Estate Equity Fund.
RESupp 6/00
This supplement is to be distributed with prospectuses bearing the following
stock numbers on the back cover: S8148, S8148-M, S-8148 NY, S-8148 NY-M, S8158,
S8158 M, S8138, S8138-M, S8138UVNY, S8138UVNY-M, S8144, S8144-M, S8144NY,
S8144NY-M, H6001, H6001UVNY
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Real Estate Equity Fund
GOAL AND STRATEGY
This is a real estate stock fund that seeks above-average income and long-term
growth in capital.
The Fund invests primarily in:
. equity securities of real estate investment trusts (REITs) that own commer-
cial and multi-family residential real estate; and
. equity securities of real estate operating companies (i.e., companies with at
least 75% of revenue, income or fair asset value derived from real estate).
The Fund employs two subadvisers, each of which independently selects and con-
structs a portfolio for its portion of the Fund. Each sub-adviser employs its
own investment approach to identify securities considered attractive and to
construct and manage its portion of the Fund. On or about June 30, 2000, the
assets of the Fund were evenly divided between the subadvisers. All subsequent
investments in and redemptions from the Fund will be evenly divided between the
subadvisers.
Independence Investment Associates, Inc. ("IIA") selects real estate stocks
using a combination of proprietary, equity research and quantitative tools.
Real estate stocks are purchased that are undervalued relative to the stock's
history and the market and have improving earnings growth prospects.
IIA employs risk control techniques to maintain risk, style and industry char-
acteristics similar to the public equity real estate market. IIA will normally
invest in 40 to 60 securities in its portion of the Fund.
Morgan Stanley Dean Witter Investment Management Inc. ("MSDW") selects real
estate stocks using a combination of:
. top-down, market overview to identify undervalued property sectors and geo-
graphic regions; and
. proprietary, fundamental equity research to select companies that are attrac-
tively priced relative to the value of their underlying real estate assets.
MSDW seeks to maintain broad exposure to key property sectors (i.e., apart-
ments, retail and office/industrial). MSDW will normally invest in 30 to 50
securities in its portion of the Fund.
Each portion of the Fund normally has at least 65% (usually higher) of its
assets invested in real estate equity securities and 5% or less of its assets
in cash and cash equivalents.
Each portion of the Fund also may purchase other types of securities, for exam-
ple: American Depository Receipts (ADRs), convertible securities, and equity
securities of non-real estate businesses whose real estate holdings are signif-
icant in relation to their market capitalization.
In abnormal market conditions, each portion of the Fund may take temporary
defensive measures--such as holding unusually large amounts of cash and cash
equivalents--that are inconsistent with the Fund's primary investment strategy.
In taking those measures, the Fund may not achieve its investment goal.
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SUBADVISER
Independence Investment Associates, Inc.
53 State Street
Boston, Massachusetts 02109
Owned by John Hancock
Managing since 1982
Managed approximately $33 billion in assets at the end of 1999
Fund Managers
John F. DeSantis
-----------------
Executive Vice President of subadviser
Managed fund since 1999
Joined subadviser in 1982
Thomas D. Spicer
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Vice President of subadviser
Managed fund since 1999
Joined team in 1996
Joined subadviser in 1991
SUBADVISER
Morgan Stanley Dean Witter Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020
Managing since 1975
Managed approximately $184 billion in assets at the end of 1999
Fund Managers
Theodore R. Bigman
-----------------
Managing Director, Global Real Estate, of subadviser
Joined subadviser in 1995
Douglas A. Funke
-----------------
Vice President of subadviser
Joined subadviser in 1995
PAST PERFORMANCE
The graph shows how the fund's total return has varied from year to year, while
the table shows performance over time (along with a broad-based market index
for reference). This information may help provide an indication of the fund's
risks and potential rewards. All figures assume dividend reinvestment. Past
performance does not indicate future results. The performance figures below do
not reflect the deduction of fees and charges payable under the variable
contracts. Such fees and charges would cause the investment returns under the
contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[GRAPH]
1990 -21.00%
1991 33.50%
1992 16.00%
1993 17.29%
1994 2.86%
1995 12.31%
1996 33.07%
1997 17.22%
1998 -16.71%
1999 - 1.69%
Best quarter: up 25.82%, first quarter 1991 Worst quarter: down 17.37%, third
quarter 1990
Average annual total returns -- for periods ending 12/31/99
<TABLE>
<CAPTION>
Fund Index
<S> <C> <C>
1 year -1.69% -3.19%
5 years 7.48% 8.30%
10 years 7.73% 4.11%
Life of fund 7.71% 4.52%
</TABLE>
Index: Wilshire Real Estate Securities Index
2
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MAIN RISKS
Primary
Real Estate Securities Risk: Real estate investment trusts (REITs) or other
real estate-related equity securities may be affected by changes in the value
of the underlying property owned by the trust. Mortgage REITs may be affected
by the quality of any credit extended. Other potential risks include the possi-
bility of a REIT failing to qualify for tax-free pass-through of income under
the Internal Revenue Code or failing to maintain exemption under the Investment
Company Act of 1940.
Market Risk: The value of the securities in the Fund may go down in response to
overall stock or bond market movements. Markets tend to move in cycles, with
periods of rising prices and periods of falling prices. Stocks tend to go up
and down in value more than bonds. Because the Fund's investments are concen-
trated in the real estate sector, the Fund's performance could be worse than
the overall market.
Manager Risk: The managers and their respective strategies may fail to produce
the intended results. The Fund could underperform its peers or lose money if
the managers' investment strategies do not perform as expected.
Concentration Risk: The Fund's investment in securities of a smaller number of
issuers could produce more volatile performance relative to funds that invest
in a larger number of issuers. The more concentrated a fund's holdings are, the
more likely it is a specific security's poor performance will hurt the fund
significantly.
Small/Mid Cap Stock Risk: The Fund's investment in smaller or mid-sized compa-
nies may be subject to more erratic price movements than investment in large
established companies.
Interest Rate Risk: The Fund is subject to interest rate risk, which is the
possibility that changes in interest rates could hurt REIT performance. In gen-
eral, during periods of high interest rates, REITs may lose some of their
appeal for investors who may be able to obtain higher yields from other income-
producing investments, such as long-term bonds. Higher interest rates also mean
that financing for property purchases and improvements is more costly and dif-
ficult to obtain.
Turnover Risk: In general, the greater the volume of buying and selling by a
fund (i.e., the higher its "turnover rate"), the greater the impact that bro-
kerage commissions and other transaction costs will have on the fund's perfor-
mance. Any turnover rate in excess of 100% is considered relatively high. Nor-
mally, the Fund's turnover rate will be greater than 100%.
Secondary
None
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FINANCIAL HIGHLIGHTS (Selected data for each share interest outstanding
throughout the period indicated):
The following financial highlights have been audited by Ernst & Young LLP.
<TABLE>
<S> <C> <C> <C> <C> <C>
Period ended December 31: 1995 1996 1997 1998 1999
Net asset value, beginning of
period $11.16 $ 11.70 $ 14.64 $ 15.91 $ 12.46
Income from investment
operations:
Net investment income (loss) 0.77 0.76 0.77 0.77 0.78
Net realized and unrealized
gain (loss) on investments* 0.54 2.97 1.68 (3.38) (0.99)
Total from investment
operations 1.31 3.73 2.45 (2.61) (0.21)
Less distributions:
Distributions from net
investment income and capital
paid in (0.77) (0.76) (0.71) (0.70) (0.78)
Distributions from net realized
gain on investments sold -- (0.03) (0.41) (0.14) --
Distributions in excess of
income, capital paid in &
gains -- -- (0.06) -- --
Total distributions $(0.77) $ (0.79) $ (1.18) $ (0.84) (0.78)
Net asset value, end of period $11.70 $14.64 $ 15.91 $ 12.46 $ 11.47
Total investment return 12.31% 33.07% 17.22% (16.71)% (1.69)%
Ratios and supplemental data
Net assets, end of period (000s
omitted)($) $9,301 $10,325 $12,830 $12,263 $11,000
Ratio of expenses to average net
assets (%) 0.73% 0.69% 0.69% 0.69 % 0.70%
Ratio of net investment income
(loss) to average net assets
(%) 6.85% 6.14% 5.12% 5.48 % 6.38%
Turnover rate (%) 19.81% 18.37% 20.04% 22.69 % 12.95%
</TABLE>
* The amount shown may not accord with the change in the aggregate gains and
losses in the fund securities for the period because of the timing of pur-
chase and withdrawals of shares in relation to the fluctuation in market val-
ues of the fund.
3
