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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 MULTI-FLEX 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 LOCATED ON PAGE 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>
NSAT Government Bond Fund 0.50% 0.22% 0.00% 0.72%
- --------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 0.40% 0.21% 0.00% 0.61%
- --------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund 0.48% 0.47% 0.00% 0.95%
- --------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 0.57% 0.21% 0.00% 0.78%
- --------------------------------------------------------------------------------------------------------------------
</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>
NSAT Government Bond Fund 0.44% 0.22% 0.00% 0.66%
- --------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 0.34% 0.21% 0.00% 0.55%
- --------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund 0.80% 0.47% 0.00% 1.27%
- --------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 0.59% 0.21% 0.00% 0.80%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
2. INFORMATION FOR THE FOLLOWING UNDERLYING MUTUAL FUNDS CONTAINED IN THE
"EXAMPLE" CHART LOCATED ON PAGES 9 THROUGH 10 OF YOUR PROSPECTUS, IS
AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this 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.
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The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects CDSC, variable account charges of 1.30%, and
the Contract Maintenance Charge, expressed as a percentage of average account
value. Since the average contract value is greater than $1,000, the expense
effect of the Contract Maintenance Charge is reduced accordingly. Deductions for
premium taxes are not reflected but may apply.
For certain contracts which are exchanged for other contracts issued by
Nationwide or an affiliate of Nationwide, the CDSC may be waived and a Contract
Exchange Fee not to exceed $40 may be assessed (see "Contract Exchange Fee").
Under such circumstances, the expenses that follow would be adjusted to reflect
the Contract Exchange Fee and the waiver of the CDSC.
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 If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
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>
NSAT Government Bond Fund 92 114 145 253 22 69 118 253 * 69 118 253
- --------------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 91 110 139 241 21 65 112 241 * 65 112 241
- --------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income 95 123 160 283 25 78 133 283 * 78 133 283
Bond Fund
- --------------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 94 117 151 265 24 72 124 265 * 72 124 265
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. THE FIRST PARAGRAPH OF THE "DOLLAR COST AVERAGING" PROVISION ON PAGE 32 OF
YOUR PROSPECTUS IS AMENDED TO DELETE THE FOLLOWING SENTENCE:
"Contract owners may participate in this program if their contract value is
$5,000 or more."
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