<PAGE>
SUPPLEMENT DATED OCTOBER 1, 1997 TO
PROSPECTUS DATED MAY 1, 1997
INDIVIDUAL MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT-II
This Supplement updates certain information contained in your Prospectus.
Please read it and keep it with your Prospectus for future reference.
1. Effective November 1, 1997, the "UNDERLYING MUTUAL FUND ANNUAL EXPENSES"
provision of the Prospectus is amended by changing the Management Fees and
Other Expenses of the following Nationwide Separate Account Trust
underlying Mutual Fund options:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Management Other Total Mutual
Fees Expenses Fund Expenses
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nationwide Separate Account Trust - Capital 0.65% 0.03% 0.68%
Appreciation Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Total 0.65% 0.02% 0.67%
Return Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - 0.55% 0.02% 0.57%
Government Bond Fund
- ---------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Money 0.45% 0.02% 0.47%
Market Fund
- ---------------------------------------------------------------------------------------------------
</TABLE>
2. Effective November 1, 1997, the "EXAMPLE" in the Prospectus is amended to
reflect the following information:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
If you surrender your If you do not surrender If you annuitize your
Contract at the end of the your Contract at the end of Contract at the end of the
applicable time period the applicable time period applicable time period
- ---------------------------------------------------------------------------------------------------------------------------
1 3 5 10 1 3 5 10 1 3 5 10
Yr. Yrs. Yrs. Yrs. Yr. Yrs. Yrs. Yrs. Yr. Yrs. Yrs. Yrs.
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide Separate Account
Trust - Capital Appreciation Fund 85 112 143 248 22 67 116 248 * 67 116 248
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account
Trust - Total Return Fund 85 112 142 247 22 67 115 247 * 67 115 247
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account
Trust - Government Bond Fund 84 109 137 236 21 64 110 236 * 64 110 236
- ---------------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account
Trust - Money Market Fund 83 106 131 225 20 61 104 225 * 61 104 225
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. The "DOLLAR COST AVERAGING" provision of the prospectus is amended
effective November 3, 1997 by replacing the first paragraph of such
provision with the following:
DOLLAR COST AVERAGING - If the Contract Value is $15,000 or more, the
Contract Owner may direct the Company to automatically transfer a specified
amount from the Nationwide Separate Account Trust (NSAT) Government Bond
Fund, NSAT Money Market Fund, the Neuberger & Berman Advisers Management
Trust (AMT) Limited Maturity Bond Portfolio or the Fixed Account to any
other Sub-Account within the Variable Account on a monthly basis or as
frequently as otherwise authorized by the Company. This service is
intended to allow the Contract Owner to utilize Dollar Cost Averaging, a
long-term investment program which provides for regular, level investments
over time. The Company makes no guarantees that Dollar Cost Averaging will
result in a profit or protect against loss in a declining market. The
minimum monthly Dollar Cost Averaging transfer is $100. In addition,
Dollar Cost Averaging monthly transfers from the Fixed Account must be
equal to 1/30th of the Fixed Account value when the Dollar Cost Averaging
program is requested. Transfers out of the Fixed Account, other
<PAGE>
than for Dollar Cost Averaging, may be subject to certain additional
restrictions (see "Transfers"). A written election of this service, on a
form provided by the Company, must be completed by the Contract Owner in
order to begin transfers. Once elected, transfers from the NSAT Government
Bond Fund, NSAT Money Market Fund, Neuberger & Berman AMT Limited Maturity
Bond Portfolio or the Fixed Account will be processed monthly or on another
approved frequency until either the value in such funds is depleted or the
Contract Owner instructs the Company in writing to cancel the transfers.
4. Effective November 3, 1997, the "SYSTEMATIC WITHDRAWALS" provision is
amended to reflect the following change in the table located on page 30 of
the Prospectus:
Contract Owner's Age Percentage of Contract Value
-------------------- ----------------------------
Under 59 1/2 5%
59 1/2 to 62 7%
62 to 65 8%
65 to 75 10%
75 and Over 13%
5. The following information is added to the "FEDERAL TAX CONSIDERATIONS"
section as the second provision:
PUERTO RICO
Under the Puerto Rico tax code, Distributions prior to Annuitization
are treated as nontaxable return of principal until the principal is fully
recovered; thereafter, all Distributions are fully taxable. Distributions
after Annuitization are treated as part taxable income and part nontaxable
return of principal. The amount excluded from gross income after
Annuitization is equal to the amount of the Distribution in excess of 3% of
the total Purchase Payments paid, until an amount equal to the total
Purchase Payments paid has been excluded; thereafter, the entire
Distribution is included in gross income. Puerto Rico does not impose an
early withdrawal penalty tax. Generally, Puerto Rico does not require
income tax to be withheld from Distributions of income. A personal tax
advisor should be consulted.
6. Effective July 11, 1997, the Van Kampen American Capital Life Investment
Trust - Real Estate Securities Portfolio (formerly, "Van Kampen American
Capital Life Investment Trust - Real Estate Securities Fund") changed its
name to the following:
VAN KAMPEN AMERICAN CAPITAL LIFE INVESTMENT TRUST -
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Accordingly, any and all references in the Prospectus are amended to
reflect this name change.
7. The portfolio manager for the Warburg Pincus Trust is changing from
Warburg, Pincus Counsellors, Inc. to Warburg Pincus Asset Management, Inc.
effective October 15, 1997. Accordingly, any and all references in the
Prospectus are amended to reflect this change.
