MONY VARIABLE ACCOUNT A
497, 1998-05-07
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<PAGE>   1
 
- --------------------------------------------------------------------------------
 
The MONYMaster
 
- --------------------------------------------------------------------------------
 
Prospectus Portfolio
 
- --------------------------------------------------------------------------------
Individual Flexible
 
Payment Variable
Annuity Contracts
Issued by
The Mutual Life Insurance Company of New York
 
MONY Series Fund, Inc.
Enterprise Accumulation Trust
 
May 1, 1998
- --------------------------------------------------------------------------------
<PAGE>   2
 
PROSPECTUS
 
                               DATED MAY 1, 1998
 
             INDIVIDUAL FLEXIBLE PAYMENT VARIABLE ANNUITY CONTRACTS
                                   ISSUED BY
 
                            MONY VARIABLE ACCOUNT A
                 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
 
     The Individual Flexible Payment Variable Annuity Contracts (the
"Contracts") described in this Prospectus provide for accumulation of cash value
on a variable basis and payment of annuity benefits. The Contracts are designed
for use by individuals in retirement plans that may or may not qualify for
special federal income tax treatment. The types of pension plans that may
purchase the Contracts are retirement plans which receive favorable tax
treatment under Sections 401, 403, 408, or 457 of the Internal Revenue Code.
(See "Definitions -- Qualified Plans" at page 2.)
 
     At the election of the Contractholder, purchase payments for the Contracts
will be allocated to either (i) a segregated investment account of The Mutual
Life Insurance Company of New York (the "Company"), which account has been
designated MONY Variable Account A (the "Variable Account"), or (ii) the
Guaranteed Interest Account, which is a part of the Company's General Account or
to both as the Contractholder may determine. The Variable Account invests in
shares of MONY Series Fund, Inc. and The Enterprise Accumulation Trust at their
net asset value. (See "The Funds" at page 11.) Upon the issuance of the
Contract, purchase payments for the Contracts will be allocated to the Money
Market Subaccount of the Variable Account and will be held there pending
expiration of the Free Look Period. After expiration of the Free Look Period,
the Cash Value of the Contract will automatically be transferred to one or more
of the Subaccounts of the Variable Account in accordance with the instructions
of the Contractholder. (See "PAYMENT AND ALLOCATION OF NET PURCHASE PAYMENTS" at
page 13.) Contractholders bear the complete investment risk for all amounts
allocated to the Variable Account. This Prospectus generally describes only the
variable features of the Contract. (For a summary of the Guaranteed Interest
Account, see "Guaranteed Interest Account" at page 13.) This Prospectus sets
forth the basic information that a prospective purchaser should know before
investing. Please keep this Prospectus for future reference.
 
     A Statement of Additional Information dated May 1, 1998, incorporated
herein by reference, and containing additional information about the Contracts,
has been filed with the Securities and Exchange Commission. The Statement of
Additional Information is available from the Company without charge upon written
request to the address shown on the request form on page 34 of this Prospectus
or by telephoning 1-800-487-6669. The Table of Contents of the Statement of
Additional Information can be found on page of this Prospectus.
 
     This Prospectus does not constitute an offer to sell or a solicitation of
an offer to buy the Contracts in any jurisdiction in which such may not be
lawfully made.
 
     In pursuing its investment objective, the High-Yield Bond Subaccount
purchases shares of the High Yield Bond Portfolio which may invest significantly
in lower rated bonds, commonly referred to as "Junk Bonds". Bonds of this type
are considered to be speculative with regard to the payment of interest and
return of principal. Investment in these types of securities have special risks
and therefore, may not be suitable for all investors. Investors should carefully
assess the risks associated with allocating purchase payments to this
subaccount.
 
  THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION,
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
   PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS
PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED (OR PRECEDED) BY A CURRENT PROSPECTUS
       FOR MONY SERIES FUND, INC. AND THE ENTERPRISE ACCUMULATION TRUST.
 
                 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
                                 1740 BROADWAY
                            NEW YORK, NEW YORK 10019
                                 1-800-487-6669
<PAGE>   3
 
                               TABLE OF CONTENTS
 
<TABLE>
<CAPTION>
                                                              PAGE
                                                              ----
<S>                                                           <C>
Definitions.................................................    1
Synopsis....................................................    3
The Company and the Variable Account........................   10
The Mutual Life Insurance Company of New York...............   10
Year 2000 Issue.............................................   10
MONY Variable Account A.....................................   10
The Funds...................................................   11
Guaranteed Interest Account.................................   13
Payment and Allocation of Net Purchase Payments.............   13
Issuance of the Contract....................................   13
Free Look Privilege.........................................   14
Allocation of Net Purchase Payments and Cash Value..........   15
Termination of the Contract.................................   18
Surrenders..................................................   18
Death Benefit...............................................   19
Death Benefit Provided by the Contract......................   19
Election and Effective Date of Election.....................   19
Payment of Death Benefit....................................   20
Charges and Deductions......................................   20
Deductions from Payments....................................   20
Charges Against Cash Value..................................   20
Mortality and Expense Risk Charge...........................   22
Taxes.......................................................   23
Investment Advisory Fee.....................................   23
Annuity Provisions..........................................   24
Annuity Commencement Date...................................   24
Election and Change of Settlement Option....................   24
Settlement Options..........................................   25
Frequency of Annuity Payments...............................   25
Additional Provisions.......................................   25
Other Provisions............................................   26
Ownership...................................................   26
Provision Required by Section 72(s) of the Code.............   26
Provision Required by Section 401(a)(9) of the Code.........   27
Contingent Annuitant........................................   27
Effect of Contingent Annuitant's Becoming Annuitant.........   28
Assignment..................................................   28
Change of Beneficiary.......................................   28
Substitution of Securities..................................   28
Modification of the Contracts...............................   28
Change in Operation of Variable Accounts....................   29
Voting Rights...............................................   29
Distribution of the Contracts...............................   30
Federal Tax Status..........................................   30
Introduction................................................   30
Tax Treatment of the Company................................   30
Taxation of Annuities in General............................   30
Annuity Contracts Covered by Section 403(b) of the Code.....   31
Retirement Plans............................................   32
Performance Data............................................   32
Additional Information......................................   33
Legal Proceedings...........................................   33
Financial Statements........................................   33
Table of Contents of Statement of Additional Information....   34
Calculation of Surrender Charge.............................  A-1
</TABLE>
<PAGE>   4
 
                                  DEFINITIONS
 
     ANNUITANT -- The person upon whose continuation of life any annuity payment
depends.
 
     ANNUITY COMMENCEMENT DATE -- The date on which annuity payments are to
commence.
 
     BENEFICIARY -- The party entitled to receive benefits payable at the death
of the Annuitant or (if applicable) the Contingent Annuitant.
 
     CASH VALUE -- The dollar value as of any Valuation Date of all amounts
accumulated under the Contract.
 
     COMPANY -- The Mutual Life Insurance Company of New York.
 
     CONTINGENT ANNUITANT -- The party designated by the Contractholder to
become the Annuitant, subject to certain conditions, on the death of the
Annuitant.
 
     CONTRACT -- The Flexible Payment Variable Annuity Contract offered by the
Company and described in this Prospectus.
 
     CONTRACT ANNIVERSARY -- An anniversary of the Contract Date of the
Contract.
 
     CONTRACTHOLDER -- The person so designated in the application. If a
Contract has been absolutely assigned, the assignee becomes the Contractholder.
A collateral assignee is not the Contractholder.
 
     CONTRACT DATE -- The date shown as the Contract Date in the Contract.
 
     CONTRACT YEAR -- Any period of twelve (12) months commencing with the
Contract Date and each Contract Anniversary thereafter.
 
     THE ENTERPRISE ACCUMULATION TRUST -- The Enterprise Accumulation Trust, a
Massachusetts business trust formerly Quest for Value Accumulation Trust, a
Massachusetts business trust.
 
     FREE LOOK PERIOD -- A period which follows the application for the Contract
and its issuance to the Contractholder. The period runs to the date which 10
days (or longer in certain states) after the Contractholder receives the
Contract. (The Free Look Period is referred to in the Contract as the "Right to
Return Contract" period.) During the Free Look Period, the Contractholder may
cancel the Contract and receive a refund.
 
     FUNDS -- MONY Series Fund, Inc. and The Enterprise Accumulation Trust.
 
     GUARANTEED FREE SURRENDER AMOUNT --
 
          FOR NON-QUALIFIED CONTRACT -- An amount, up to 10 percent of the
     Contract's Cash Value on the date the first partial surrender request is
     received during a Contract Year, that may be surrendered without the
     imposition of a Surrender Charge. For the purposes of the Guaranteed Free
     Surrender Amount only, Non-Qualified Contracts include Contracts issued for
     IRAs and SEP-IRAs.
 
          FOR QUALIFIED CONTRACT -- An amount, up to the greater of $10,000 (but
     not more than the Contract's Cash Value) or 10 percent of the Contract's
     Cash Value (on the date the first partial surrender request is received
     during a Contract Year), that may be surrendered without the imposition of
     a Surrender Charge. For the purposes of the Guaranteed Free Surrender
     Amount only, Qualified Contracts include Qualified Contracts issued on and
     after May 1, 1994 and exclude Contracts issued for IRAs and SEP-IRAs.
 
     GUARANTEED INTEREST ACCOUNT -- A part of the Company's general account, the
Guaranteed Interest Account pays interest at a rate declared by the Company,
which the Company guarantees will not be less than 4%. For Contracts issued on
or after May 1, 1994 (or on or after such later date as approval required in
certain states is obtained), the rate declared by the Company is guaranteed to
be not less than 3.5%.
 
     HOME OFFICE -- The Company's administrative office at 1740 Broadway, New
York, N.Y. 10019. "Home Office" also includes the Company's Operations Center at
1 MONY Plaza, Syracuse, N.Y. 13202.
 
     MONY SERIES FUND -- MONY Series Fund, Inc., a Maryland corporation.
 
                                        1
<PAGE>   5
 
     NET PURCHASE PAYMENT -- An amount equal to a Purchase Payment, less any
deduction for premium or similar taxes.
 
     NON-QUALIFIED CONTRACTS -- Contracts issued under Non-Qualified Plans.
 
     NON-QUALIFIED PLANS -- Retirement Plans that do not receive favorable tax
treatment under Sections 401, 403, or 408 of the Internal Revenue Code.
 
     OPERATIONS CENTER -- The administrative office of the Company located at 1
MONY Plaza, Syracuse, New York 13202.
 
     PORTFOLIO -- A separate investment portfolio of the Funds.
 
     PURCHASE PAYMENT (PAYMENT) -- An amount paid to the Company by the
Contractholder or on the Contractholder's behalf as consideration for the
benefits provided by the Contract.
 
     QUALIFIED CONTRACTS -- Contracts issued under Qualified Plans.
 
     QUALIFIED PLANS -- Retirement plans that receive favorable tax treatment
under Sections 401, 403, 408, or 457 of the Internal Revenue Code.
 
     SUBACCOUNT -- A subdivision of the Variable Account. Each Subaccount
invests exclusively in the shares of a corresponding Portfolio of the Funds.
 
     SUCCESSOR CONTRACTHOLDER -- The living person who, at the death of the
Contractholder, becomes the new Contractholder.
 
     SURRENDER CHARGE -- A contingent deferred sales charge that may be applied
against amounts surrendered. (See "Charges Against Cash Value -- Surrender
Charge" at page 20.)
 
     SURRENDER VALUE -- The Contract's Cash Value, less (1) any applicable
Surrender Charge and (2) any applicable Annual Contract Charge.
 
     UNIT -- The measure by which the Contract's interest in each Subaccount is
determined.
 
     VALUATION DATE -- Each day that the New York Stock Exchange is open for
trading or any other day on which there is sufficient trading in the securities
of a Portfolio of the Fund to affect materially the value of the Units of the
corresponding Subaccount.
 
     VARIABLE ACCOUNT -- A separate investment account of the Company,
designated as MONY Variable Account A, into which Net Purchase Payments will be
allocated.
 
                                        2
<PAGE>   6
 
                                    SYNOPSIS
 
THE CONTRACTS
 
     The Individual Flexible Payment Variable Annuity Contracts (the
"Contracts") described in this Prospectus provide for the accumulation of values
on a variable basis or a guaranteed interest basis or a combination of both and
the payment of annuity benefits. The Contracts are designed for use in
connection with personal retirement plans, some of which (the "Qualified Plans")
may qualify for federal income tax advantages available under Sections 401, 403,
408 and 457 of the Internal Revenue Code (the "Code").
 
     Effective January 1, 1989, the Contracts offered by this Prospectus have
been withdrawn from sale in connection with Qualified Plans which intend to
qualify for federal income tax advantages available under Section 403(b) of the
Code.
 
THE VARIABLE ACCOUNT
 
     Net Purchase Payments for the Contracts will be allocated at the
Contractholder's option to Sub-accounts, made available therefor in accordance
with the terms of the Contracts, of a segregated investment account of The
Mutual Life Insurance Company of New York (the "Company"), which account has
been designated MONY Variable Account A (the "Variable Account") or to the
Guaranteed Interest Account, which is a part of the Company's general account
and consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company, including the Variable Account.
The Sub-accounts of the Variable Account invest in shares of MONY Series Fund,
Inc. (the "MONY Series Fund") and The Enterprise Accumulation Trust (the
"Accumulation Trust") (the MONY Series Fund and the Accumulation Trust are
collectively called the "Funds") at their net asset value. (See "The Funds" at
page 11). Contractholders bear the entire investment risk for all amounts
allocated to the Variable Account. Net Purchase Payments allocated to the
Guaranteed Interest Account will be credited with interest at rates guaranteed
by the Company for specified periods. (See "Guaranteed Interest Account" at page
13.)
 
PURCHASE PAYMENTS
 
     For Non-Qualified Plans and individual retirement accounts and annuities
purchased by individuals under Section 408 of the Code (other than Simplified
Employee Pensions), the minimum initial Purchase Payment for the Contract is
$2,000, except that, on and after May 1, 1992, the minimum initial Purchase
Payment for individuals is $600 if Purchase Payments are made through automatic
checking account withdrawals. For H.R. 10 plans, certain corporate or
association retirement plans, Simplified Employee Pensions under Section 408 of
the Code, and annuity purchase plans sponsored by certain tax-exempt
organizations, governmental entities, or public school systems, the minimum
initial Purchase Payment is $600. Additional Purchase Payments of at least $100
may be made at any time. Different limits apply where certain automatic payment
plans are used. (See "Issuance of the Contract" at page 13.) The Company may
change any of these requirements in the future.
 
DEDUCTIONS FROM PURCHASE PAYMENTS
 
     Deductions may be made from Purchase Payments for premium or similar taxes.
Currently, the Company makes no such deduction, but may do so with respect to
future payments. The amount of the deduction will vary from state to state, but
will generally range from 0 percent to 3.5 percent of Payments. Residents of the
Commonwealth of Pennsylvania should be aware that a tax on Purchase Payments has
been adopted; however, the Company currently is assuming responsibility for
payment of this tax. In the event that the Company will begin to make deductions
for such tax from future Purchase Payments, it will give notice to each affected
Contractholder.
 
FREE LOOK PRIVILEGE
 
     Within ten days (or longer in certain states) of the day the Contract is
delivered to the Contractholder, it may be returned to the Company or to the
agent through whom it was purchased. When the Contract is
 
                                        3
<PAGE>   7
 
received by the Company, it will be voided as if it had never been in force.
Except for Contracts entered into in the Commonwealth of Pennsylvania, the
amount to be refunded is equal to the greater of: (i) all Purchase Payments; and
(ii) the Cash Value of the Contract (as of the date the returned Contract is
received at the Home Office or a local office of the Company, or by the agent
who sold the Contract, or, if returned by mail, upon being postmarked, properly
addressed, and postage prepaid) plus any deductions from Purchase Payments for
taxes applicable to annuity considerations that may have been deducted, any
mortality and expense risk charges deducted in determining the Unit value of the
Variable Account, and asset charges deducted in determining the share value of
the Fund. For Contracts entered into in the Commonwealth of Pennsylvania, the
amount to be refunded is described in clause (ii) of the immediately preceding
sentence.
 
SURRENDER CHARGE
 
     A contingent deferred sales charge (called a "Surrender Charge") will be
imposed upon requests for surrenders or commencement of annuity benefits where
the amount requested exceeds the amount of Net Purchase Payments during the
Contract Year when the surrender or commencement of annuity benefits is
requested and during the seven preceding Contract Years.
 
     The Surrender Charge, which otherwise would have been deducted, will not be
deducted to the extent necessary to permit the Contractholder to obtain, for
Qualified Contracts (other than Contracts issued for IRA and SEP-IRA) an amount
up to the greater of $10,000 (but not more than the Contract's Cash Value) or 10
percent of the Contract's Cash Value on the date the first partial surrender
request is received, and for Non-Qualified Contracts (and Contracts issued for
IRA and SEP-IRA and Qualified Contracts issued before May 1, 1994), an amount up
to 10% of the Cash Value of the Contract on the date the first partial surrender
request is received. The Company reserves the right to limit the number of
partial surrenders under this provision to 12 during any Contract Year. In
addition, the Contract details certain other circumstances under which a
surrender charge will not be imposed. The Surrender Charge is intended to
reimburse the Company for expenses incurred that are related to sales of the
Contract. In no event will the aggregate Surrender Charge exceed 7 percent of
the total Purchase Payments made in the Contract Year of the surrender and
during the 7 preceding Contract Years. (See "Charges Against Cash
Value -- Surrender Charge" at page 20.)
 
MORTALITY AND EXPENSE RISK CHARGE
 
     A Mortality and Expense Risk Charge is deducted daily from the net assets
of the Variable Account for mortality and expense risks assumed by the Company.
This daily charge is equal to a charge on an annual basis of 1.25 percent of the
net assets of the Variable Account. (See "Mortality and Expense Risk Charge" at
page 22.)
 
TRANSFER CHARGE
 
     Contract value may be transferred without charge as many as 4 times in any
Contract Year. For any additional transfer during a Contract Year, a transfer
charge is not currently imposed, but the Company has reserved the right to
impose a charge for each transfer in excess of 4, which will not exceed $25 per
transfer. If imposed, the transfer charge will be deducted from the Contract's
Cash Value. (See "Charges Against Cash Value -- Transfer Charge" at page 22.)
 
ANNUAL CONTRACT CHARGE
 
     On each Contract Anniversary prior to the Annuity Commencement Date, on the
Annuity Commencement Date, and on full surrender of the Contract, the Company
deducts an Annual Contract Charge from the Cash Value, to reimburse the Company
for administrative expenses relating to the maintenance of the Contract. The
charge is currently $30, but the Company may in the future change the amount of
the charge. The charge will never, however, exceed $50. For certain Qualified
Contracts (other than Contracts issued for IRA and SEP-IRA), the Annual Contract
Charge is reduced to $15 for as long as such Contracts remain Qualified
Contracts. (See "Charges Against Cash Value -- Annual Contract Charge" at page
22.)
 
                                        4
<PAGE>   8
 
DEATH BENEFIT
 
     In the event of death of the Annuitant (and the Contingent Annuitant, if
one has been named) prior to the Annuity Commencement Date, the Company will pay
a death benefit to the Beneficiary. If death of the Annuitant occurs after the
Annuity Commencement Date, no death benefit will be payable except as may be
payable under the settlement option selected. (See "Death Benefit" at page 19.)
 
TAX UPON SURRENDER
 
     Amounts withdrawn may be subject to income tax. In addition, a penalty tax
may be payable pursuant to the Internal Revenue Code on withdrawal of amounts
accumulated under any annuity contract. (See "Federal Tax Status" at page 30.)
 
THE MERGER
 
     Pursuant to an Agreement and Plan of Merger, entered into between MONY
Legacy Life Insurance Company ("MONY Legacy") and the Company, MONY Legacy was
merged ("Merger") into the Company on February 28, 1991. As a result of the
Merger, the Company became the depositor of, and became obligated under,
contracts issued by MONY Legacy ("Legacy Contracts") which are substantially
similar to the Contracts, and the assets, reserves, and other liabilities
allocated to the MONY Legacy Variable Account A (to which purchase payments made
for the Legacy Contracts were allocated prior to the Merger) became the assets,
reserves, and other liabilities of the Variable Account.
 
                 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
 
                            MONY VARIABLE ACCOUNT A
 
               TABLE OF FEES FOR THE YEAR ENDED DECEMBER 31, 1997
 
<TABLE>
<S>                                                           <C>
Contractowner Transaction Expenses:
Maximum Deferred Sales Load (Surrender Charge) (as a
  percentage of amount surrendered).........................      7%*
Annual Contract Charge......................................    $30**
Separate Account Annual Expenses:
Mortality and Expense Risk Fees.............................   1.25%***
</TABLE>
 
     Annual Expenses of MONY Series Fund, Inc. and The Enterprise Accumulation
Trust:
 
                             MONY SERIES FUND, INC.
 
         PRO FORMA ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1997
                    (AS A PERCENTAGE OF AVERAGE NET ASSETS)
 
<TABLE>
<CAPTION>
                                                INTERMEDIATE     LONG TERM     GOVERNMENT       MONEY
                                                 TERM BOND         BOND        SECURITIES      MARKET
                                                 PORTFOLIO       PORTFOLIO     PORTFOLIO      PORTFOLIO
                                                ------------     ---------     ----------     ---------
<S>                                             <C>              <C>           <C>            <C>
Expenses (After Reimbursement)****............      .16%            .12%          .25%           .09%
Management Fees...............................      .50%*****       .50%*****     .50%*****      .40%
                                                    ---             ---           ---            ---
          Total MONY Series Fund, Inc. Annual
            Expenses..........................      .66%            .62%          .75%           .49%
                                                    ===             ===           ===            ===
</TABLE>
 
                                        5
<PAGE>   9
 
                         ENTERPRISE ACCUMULATION TRUST
 
              ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1997
                    (AS A PERCENTAGE OF AVERAGE NET ASSETS)
 
<TABLE>
<CAPTION>
                                                       SMALL                     INTERNATIONAL     HIGH YIELD
                                        EQUITY          CAP         MANAGED         GROWTH            BOND
                                       PORTFOLIO     PORTFOLIO     PORTFOLIO       PORTFOLIO        PORTFOLIO
                                       ---------     ---------     ---------     -------------     -----------
<S>                                    <C>           <C>           <C>           <C>               <C>
Expenses.............................     .04%          .06%          .03%            .34%             .17%
Management Fees......................     .80%          .80%          .73%            .85%             .60%
                                          ---           ---           ---            ----              ---
          Total Accumulation Trust
            Annual Expenses After
            Reimbursement............     .84%+         .86%+         .76%+          1.19%+            .77%+
                                          ===           ===           ===            ====              ===
</TABLE>
 
- ---------------
     * The Surrender Charge percentage, which reduces to zero as shown in the
       table below, is determined by the number of Contract Anniversaries since
       a purchase payment was received.
 
                          SURRENDER CHARGE PERCENTAGE TABLE
 
<TABLE>
<CAPTION>
                           NUMBER
                        OF CONTRACT
                       ANNIVERSARIES                          SURRENDER
                       SINCE PURCHASE                           CHARGE
                      PAYMENT RECEIVED                        PERCENTAGE
- ------------------------------------------------------------  ----------
<S>                                                           <C>
       0....................................................      7%
       1....................................................      7
       2....................................................      6
       3....................................................      6
       4....................................................      5
       5....................................................      4
       6....................................................      3
       7....................................................      2
       8(or more)...........................................      0
</TABLE>
 
        The Surrender Charge may be reduced under certain circumstances which
        include reduction in order to guarantee that certain amounts may be
        received free of surrender charge. (See "Charges against Cash
        Value -- Guaranteed Free Surrender Amount" at page 21.)
 
   ** For certain Qualified Contracts, the Annual Contract Charge is reduced to
      $15. See "Charges Against Cash Value -- Annual Contract Charge", at page
      22.
 
  *** The Mortality and Expense Risk charge is deducted at a daily rate which is
      equivalent to an annual rate of 1.25 percent from the value of the net
      assets of the Separate Account.
 
 **** Fees and expenses associated with the computation of the net asset value
      of the Fund were reallocated from MONY America to the Fund effective on
      and after October 14, 1997. The table reflects the impact of the
      reallocation of fees and expenses as if the reallocation had become
      effective on and after January 1, 1997. Expenses also include custodial
      credit percentages as follows: Intermediate Term Bond -- .0080%; Long Term
      Bond -- .0043%; Government Securities -- .0169%; and Money
      Market -- .0048%.
 
***** Management Fees of .50% became effective on and after October 14, 1997.
      Prior thereto, the investment advisory fees were .40%. The table reflects
      the impact of the increase fees as if the increase had become effective on
      and after January 1, 1997. (See "CHARGES AND DEDUCTIONS -- Investment
      Advisory Fee" at page 23.)
 
   + These expenses reflect expense reimbursements in effect on May 1, 1995.
     Absent these expense reimbursements, expenses would have been as follows:
     Equity -- .84%; Small Cap -- .86%; Managed -- .76%, International
     Growth -- 1.19%; and High Yield Bond -- .77%. The Equity, Small Cap, and
     Managed Portfolio reimbursements relate to mutual fund accounting expense.
 
                                        6
<PAGE>   10
 
     The purpose of the Table of Fees beginning on page 5 is to assist the
Contractholder in understanding the various costs and expenses that the
Contractholder will bear, directly or indirectly. The table reflects the
expenses of the separate account as well as of MONY Series Fund, Inc. and The
Enterprise Accumulation Trust. MONY Series Fund, Inc. and The Enterprise
Accumulation Trust have provided information relating to their respective
operations. The expenses borne by the Separate Account are explained under the
caption "CHARGES AND DEDUCTIONS" at page 20 of this Prospectus. The expenses
borne by the MONY Series Fund, Inc. are explained under the caption "INVESTMENT
MANAGEMENT ARRANGEMENTS AND EXPENSES" at page 14 of the accompanying prospectus
for MONY Series Fund, Inc. The expenses borne by The Enterprise Accumulation
Trust assumes that the expense reimbursements in effect on and after May 1, 1990
for the Equity, Small Cap, and Managed Portfolios which limit the total annual
expenses to 1.00% of average net assets and expense reimbursements which limit
the total annual expenses of the International Growth Portfolio to 1.55% of
average net assets and the High Yield Bond Portfolio to .85% of average net
assets, will continue throughout the period shown and are explained under the
caption "MANAGEMENT OF THE FUND" at page 19 of the accompanying prospectus for
The Enterprise Accumulation Trust. Effective on and after May 1, 1996 and at
least through April 1, 1998, as a part of the increase in investment advisory
fees, the investment adviser has agreed to reimburse The Enterprise Accumulation
Trust for expenses which exceed .95% of the average daily net assets of the
Equity, Small Company Value, and Managed Portfolios of the Trust. The table does
not reflect income taxes or penalty taxes which may become payable under the
Internal Revenue Code or premium or other taxes which may be imposed under state
or local laws.
 
EXAMPLE
 
     If you surrender your Contract at the end of the time periods shown below,
you would pay the following expenses on a $1,000 investment, assuming 5% annual
return on assets:
 
<TABLE>
<CAPTION>
                                                   AFTER      AFTER      AFTER      AFTER
                   SUBACCOUNT                      1 YEAR    3 YEARS    5 YEARS    10 YEARS
                   ----------                      ------    -------    -------    --------
<S>                                                <C>       <C>        <C>        <C>
Equity...........................................   $85       $121       $161        $250
Small Company Value..............................   $85       $122       $162        $252
Managed..........................................   $84       $119       $157        $242
International Growth.............................   $88       $132       $178        $286
High Yield Bond..................................   $84       $119       $157        $243
Intermediate Term Bond...........................   $81       $111       $144        $216
Long Term Bond...................................   $81       $111       $143        $214
Government Securities............................   $82       $113       $146        $221
Money Market.....................................   $81       $110       $141        $211
</TABLE>
 
     If you annuitize at the end of the time periods shown below, you would pay
the following expenses on a $1,000 investment, assuming 5% annual return on
assets:
 
<TABLE>
<CAPTION>
                                                   AFTER      AFTER      AFTER      AFTER
                   SUBACCOUNT                      1 YEAR    3 YEARS    5 YEARS    10 YEARS
                   ----------                      ------    -------    -------    --------
<S>                                                <C>       <C>        <C>        <C>
Equity...........................................   $85       $121       $116        $250
Small Company Value..............................   $85       $122       $117        $252
Managed..........................................   $84       $119       $112        $242
International Growth.............................   $88       $132       $134        $286
High Yield Bond..................................   $84       $119       $113        $243
Intermediate Term Bond...........................   $81       $111       $100        $216
Long Term Bond...................................   $81       $111       $ 99        $214
Government Securities............................   $82       $113       $102        $221
Money Market.....................................   $81       $110       $ 97        $211
</TABLE>
 
                                        7
<PAGE>   11
 
     If you do not surrender your Contract at the end of the time periods shown
below, you would pay the following expenses on a $1,000 investment, assuming 5%
annual return on assets:
 
<TABLE>
<CAPTION>
                                                   AFTER      AFTER      AFTER      AFTER
                   SUBACCOUNT                      1 YEAR    3 YEARS    5 YEARS    10 YEARS
                   ----------                      ------    -------    -------    --------
<S>                                                <C>       <C>        <C>        <C>
Equity...........................................   $22        $68       $116        $250
Small Company Value..............................   $22        $69       $117        $252
Managed..........................................   $21        $65       $112        $242
International Growth.............................   $26        $78       $134        $286
High Yield Bond..................................   $21        $66       $113        $243
Intermediate Term Bond...........................   $19        $58       $100        $216
Long Term Bond...................................   $18        $57       $ 99        $214
Government Securities............................   $19        $59       $102        $221
Money Market.....................................   $18        $56       $ 97        $211
</TABLE>
 
     The examples above should not be considered a representation of past or
future expenses, and actual expenses may be greater or lesser than those shown.
All Variable Account expenses as well as portfolio company (MONY Series Fund and
The Enterprise Accumulation Trust) expenses, net of expense reimbursements, are
reflected in the examples. Not reflected in the examples which assume redemption
at the end of each time period are income taxes and penalty taxes which may
become payable under the Internal Revenue Code or premium or other taxes which
may be imposed under state or local laws.
 
                        CONDENSED FINANCIAL INFORMATION
                 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
                            MONY VARIABLE ACCOUNT A
                           ACCUMULATION UNIT VALUES*
<TABLE>
<CAPTION>
                                                                               UNIT VALUE**
                                          --------------------------------------------------------------------------------------
                                                      DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,
              SUB-ACCOUNT                 INCEPTION     1988       1989       1990       1991       1992       1993       1994
              -----------                 ---------   --------   --------   --------   --------   --------   --------   --------
<S>                                       <C>         <C>        <C>        <C>        <C>        <C>        <C>        <C>
Equity..................................   $10.00      $10.15     $12.30     $11.88     $15.40     $17.94     $19.11     $19.60
Small Cap...............................    10.00       10.16      11.88      10.58      15.49      18.60      21.96      21.69
Intermediate Term Bond..................    10.00       10.09      11.13      11.76      13.40      14.15      15.07      14.66
Long Term Bond..........................    10.00       10.24      11.83      12.41      14.43      15.50      17.49      16.21
Government Securities...................    10.00          --         --         --         --         --         --       9.99
High Yield Bond.........................    10.00          --         --         --         --         --         --      10.04
International Growth....................    10.00          --         --         --         --         --         --       9.91
Managed.................................    10.00       10.39      13.61      12.96      18.70      21.92      23.90      24.21
Money Market............................    10.00       10.56      11.32      12.08      12.62      12.88      13.08      13.42
 
<CAPTION>
                                                   UNIT VALUE**
                                          ------------------------------
                                          DEC. 31,   DEC. 31,   DEC. 31,
              SUB-ACCOUNT                   1995       1996       1997
              -----------                 --------   --------   --------
<S>                                       <C>        <C>        <C>
Equity..................................   $26.82     $33.18     $41.22
Small Cap...............................    24.05      26.43      37.69
Intermediate Term Bond..................    16.62      17.02      18.11
Long Term Bond..........................    20.84      20.51      22.99
Government Securities...................    10.94      11.20      11.85
High Yield Bond.........................    11.56      12.90      14.45
International Growth....................    11.22      12.48      12.98
Managed.................................    35.15      42.88      52.73
Money Market............................    14.01      14.54      15.12
</TABLE>
<TABLE>
<CAPTION>
                                          DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,   DEC. 31,    DEC. 31,    DEC. 31,    DEC. 31,
              SUB-ACCOUNT                   1988       1989       1990       1991       1992        1993        1994        1995
              -----------                 --------   --------   --------   --------   ---------   ---------   ---------   ---------
<S>                                       <C>        <C>        <C>        <C>        <C>         <C>         <C>         <C>
Equity..................................   19,831     81,273    137,731    185,946      315,372     496,795     651,102     798,552
Small Cap...............................    4,653     34,030     53,185     80,022      198,539     529,142     742,341     807,452
Intermediate Term Bond..................   31,007     84,415    129,272    186,026      243,826     354,965     398,645     398,283
Long Term Bond..........................    7,680     75,208    215,001    276,879      377,464     499,364     476,335     495,169
Government Securities...................       --         --         --         --           --          --       2,571      83,571
High Yield Bond.........................       --         --         --         --           --          --      14,621      92,358
International Growth....................       --         --         --         --           --          --      19,197     167,074
Managed.................................   42,537    471,771    813,411    972,640    1,571,876   2,941,211   3,528,618   4,253,824
Money Market............................  123,834    218,778    299,411    456,647      570,819     620,100     872,441   1,227,811
 
<CAPTION>
                                          DEC. 31,    DEC. 31,
              SUB-ACCOUNT                   1996        1997
              -----------                 ---------   ---------
<S>                                       <C>         <C>
Equity..................................  1,123,086   1,428,789
Small Cap...............................    837,807   1,042,727
Intermediate Term Bond..................    381,313     436,486
Long Term Bond..........................    503,775     604,629
Government Securities...................    162,102     302,006
High Yield Bond.........................    247,295     502,892
International Growth....................    472,752     664,152
Managed.................................  5,150,485   5,633,476
Money Market............................  1,355,274   1,543,043
</TABLE>
 
- ---------------
 * MONY Legacy Variable Account A commenced operations on December 30, 1987. The
   Intermediate Term Bond, Long Term Bond, and Money Market Subaccounts became
   available for allocation on that date, however, only the Money Market
   Subaccount had operations in 1987. The Equity, Small Cap, and Managed
   Subaccounts
 
                                        8
<PAGE>   12
 
   became available for allocation on August 1, 1988, and the Government
   Securities, International Growth, and High Yield Bond Subaccounts became
   available for allocation on November 16, 1994.
 
** This table reflects the Accumulation Unit Values for the Contracts prior to
   the merger of MONY Legacy Life Insurance Company into the Company, which
   became effective on February 28, 1991, as well as Accumulation Unit Values
   resulting from operations thereafter. As a result of the merger, all assets,
   reserves, and other liabilities, and, therefore, all Accumulation Unit
   Values, became assets, reserves, and other liabilities, and accumulation unit
   values of the MONY Variable Account A. The table reflects historical
   performance and is not indicative of future results.
 
                                        9
<PAGE>   13
 
                      THE COMPANY AND THE VARIABLE ACCOUNT
 
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
 
     The Mutual Life Insurance Company of New York (the "Company") is a mutual
life insurance company organized in the state of New York in 1842. The Company
is currently licensed to sell life insurance and annuities in all states of the
United States, the District of Columbia, Puerto Rico, the Virgin Islands, and
all Provinces of Canada. The Company's financial statements may be found in the
Statement of Additional Information. The principal offices of the Company are at
1740 Broadway, New York, New York 10019.
 
     In September 1997, the Company announced that it had begun the process of
demutualization. If completed, it is not expected that demutualization will have
any material effect on MONY Variable Account A or the Contract.
 
YEAR 2000 ISSUE
 
     The Year 2000 issue is the result of widespread use of computer programs
which use two digits (rather than four) to define the applicable year. Such
programming was a common industry practice designed to avoid the significant
costs associated with additional mainframe computer capacity which would have
been necessary to accommodate a four digit year field. As a result, any of the
Company's computer systems that have time-sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000. This could result in
a major system failure or in miscalculations.
 
     The Company has conducted a comprehensive review of its computer systems to
identify the systems that be affected by the "Year 2000" issue and has developed
and implemented a plan to resolve the issue. The Company currently believes
that, with modifications to existing software and converting to new software,
the Year 2000 problem will not pose significant operational problems for the
Company's computer systems. However, if such modifications and conversions are
not completed on a timely basis, the Year 2000 problem may have a material
impact on the operations of the Company. Further, even if the Company completes
such modifications and conversions, there can be no assurance that the failure
by vendors or other third parties to solve the Year 2000 problem will not have a
material impact on the operations of the Company.
 
     MONY Series Fund and the Accumulation Trust have reviewed with their
respective investment advisers and other suppliers of services the status of
their Year 2000 issue. MONY Series Fund and the Accumulation Trust prospectuses,
which are included in the Prospectus Portfolio, contain the results of those
status reviews. See MONY Series Fund prospectus at page 20; Accumulation Trust
prospectus at page 20.
 
MONY VARIABLE ACCOUNT A
 
     The Company established MONY Variable Account A (the "Variable Account") on
November 28, 1990, under New York law as a separate investment account. The
Variable Account holds assets that are segregated from all of the Company's
other assets and at present is used only to support individual flexible payment
variable annuity contracts. As a result of the Merger, the Variable Account
received the assets, reserves, and other liabilities of the MONY Legacy Variable
Account A, the separate account to which purchase payments made pursuant to the
Contracts were allocated prior to the Merger.
 
     The Company is the legal holder of the assets in the Variable Account and
will at all times maintain assets in the Variable Account with a total market
value at least equal to the contract liabilities for the Variable Account. The
obligations under the Contracts are obligations of the Company. Income, gains,
and losses, whether or not realized, from assets allocated to the Variable
Account, are, in accordance with the Contracts, credited to or charged against
the Variable Account without regard to other income, gains, or losses of the
Company. The assets in the Variable Account may not be charged with liabilities
which arise from any other business the Company conducts. The Variable Account's
assets may include accumulations of the charges the Company makes against
Contracts participating in the Variable Account. From time to time, any such
additional assets may be transferred in cash to the Company's General Account.
 
                                       10
<PAGE>   14
 
     The Variable Account is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940 ("1940 Act") as a
unit investment trust, which is a type of investment company. This does not
involve any supervision by the SEC of the management or investment policies or
practices of the Variable Account. For state law purposes, the Variable Account
is treated as a part or division of the Company. There are currently 14
Sub-accounts within the Variable Account. Not all Subaccounts are available to
the Contractholder.
 
THE FUNDS
 
     Each available Subaccount of the Variable Account will invest only in the
shares of a corresponding Portfolio of MONY Series Fund, Inc. (the "MONY Series
Fund") or The Enterprise Accumulation Trust (the "Accumulation Trust") (the MONY
Series Fund and the Accumulation Trust are collectively called the "Funds"). The
Funds are registered with the SEC under the 1940 Act as open-end diversified
management investment companies. These registrations do not involve supervision
by the SEC of the management or investment practices or policies of the Funds.
Shares of the MONY Series Fund are currently sold to separate accounts of the
Company and to a life insurance company affiliate of the Company that were
established to fund certain Flexible Payment Variable Annuity contracts,
individual variable annuity contracts, Flexible Premium Variable Life Insurance
contracts, and Variable Life Insurance with Additional Premium Option contracts.
Until the close of business on June 24, 1994, shares of the MONY Series Fund
were also sold to Keynote Series Account, a separate account of the Company to
fund certain group variable annuity contracts issued by the Company. Shares of
the Accumulation Trust are currently sold to separate accounts of a life
insurance company affiliate of the Company that were established to fund certain
Flexible Payment Variable Annuity contracts and Flexible Premium Variable Life
Insurance contracts. Shares of the Funds may in the future be sold to other
separate accounts, and the Funds may in the future create new Portfolios. In
addition, the Company may make available additional Subaccounts with differing
or similar investment objectives. The Funds, or either of them, may withdraw
from sale any or all of the respective Portfolios in accordance with applicable
law.
 
     The Board of Directors of the MONY Series Fund and the Board of Trustees of
the Accumulation Trust each have undertaken to monitor the respective Fund for
the existence of any material irreconcilable conflict between the interests of
variable annuity contractholders and variable life insurance contractholders and
shall report any such conflict to the boards of the Company and its affiliates.
The Boards of Directors of the Company and its affiliates have agreed to be
responsible for reporting any potential or existing conflicts to the Directors
and Trustees, respectively, of each of the Funds and, at their own cost, to
remedy such conflict up to and including establishing a new registered
management investment company and segregating the assets underlying the variable
annuity contracts and the variable life insurance contracts.
 
     The Variable Account will purchase and redeem shares from the Funds at net
asset value. Shares will be redeemed to the extent necessary for the Company to
collect charges under the Contracts, to pay Surrender Value upon full surrenders
of the Contracts, to fund partial surrenders, to provide benefits under the
Contracts, and to transfer assets from one Subaccount to another or between one
or more Subaccounts of the Variable Account and the Guaranteed Interest Account
as requested by Contractholders. Any dividend or capital gain distribution
received from a Portfolio of a Fund will be reinvested immediately at net asset
value in shares of that Portfolio and retained as assets of the corresponding
Subaccount.
 
     Investment Advisers.  The MONY Series Fund at present receives investment
advice with respect to each of its Portfolios from MONY Life Insurance Company
of America ("MONY America"), which acts as investment adviser to the MONY Series
Fund.
 
     Effective September 16, 1994, the investment adviser with respect to the
Equity, Small Cap, and Managed Portfolios of the Accumulation Trust is
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY
("Enterprise Capital"). Enterprise Capital has entered into a sub-advisory
agreement with respect to the Equity and Managed Portfolios with OpCap Advisors.
Prior to that date, OpCap Advisors, then known as Quest for Value Advisors,
served as the investment adviser to the Accumulation Trust with respect to the
Equity, Small Cap, and Managed Portfolios. Effective June 1, 1996, GAMCO
Investors, Inc.,
 
                                       11
<PAGE>   15
 
(effective May 1, 1998, GAMCO Investors, Inc. changed its name to Gabelli Asset
Management, Inc.) became the investment sub-adviser for the Small Cap Portfolio
(now known as the Small Company Value Portfolio). Enterprise Capital also acts
as investment adviser with respect to the International Growth and High Yield
Bond Portfolios. It has entered into sub-investment advisory agreements as
follows: International Growth -- Brinson Partners, and High Yield
Bond -- Caywood-Scholl Capital Corporation.
 
     Investment Objectives.  The investment objectives of the Portfolios
currently available to Contractholders through corresponding Subaccounts of the
Variable Account are set forth in the accompanying prospectus for each of the
Funds and are described briefly below. There is no assurance that these
objectives will be met.
 
     The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which, for each of the Funds means the lesser
of (1) 67 percent of the Portfolio shares represented at a meeting at which more
than 50 percent of the outstanding Portfolio shares are represented or (2) more
than 50 percent of the outstanding Portfolio shares).
 
     Each Contractholder should periodically consider the allocation among the
Subaccounts and the Guaranteed Interest Account in light of current market
conditions and the investment risks attendant to investing in each of the Funds'
various Portfolios. A full description of each of the Funds, their investment
objectives, policies and restrictions, their expenses, the risks attendant to
investing in each of the Funds' Portfolios, and other aspects of their operation
is contained in the accompanying prospectus for each of the Funds, which should
be read together with this Prospectus.
 
     The investment objectives of each of the Portfolios of the Funds and
identification of which of the Funds offers the Portfolio is as follows:
 
     Equity Portfolio:  Long term capital appreciation through investment in a
diversified portfolio of primarily equity securities selected on the basis of a
value-oriented approach to investing. The Accumulation Trust offers this
Portfolio.
 
     Small Company Value Portfolio:  Capital appreciation through investments in
a diversified portfolio of equity securities of companies with market
capitalizations of under $1 billion. Prior to May 1, 1998, the Small Company
Value Portfolio was known as the Small Cap Portfolio. No change in the operation
of this Portfolio resulted from the change in name. The Accumulation Trust
offers this Portfolio.
 
     Managed Portfolio:  Growth of capital over time through investment in a
portfolio consisting of common stocks, bonds, and cash equivalents, the
percentages of which will vary over time based on the investment manager's
assessments of relative investment values. The Accumulation Trust offers this
Portfolio.
 
     International Growth Portfolio:  Capital appreciation, primarily through a
diversified portfolio of non-United States equity securities. The Accumulation
Trust offers this Portfolio.
 
     High Yield Bond Portfolio:  Maximum current income, primarily from debt
securities that are rated BA or lower by Moody's Investors Service, Inc. or BB
or lower by Standard & Poor's Corporation. The Accumulation Trust offers this
Portfolio.
 
     Intermediate Term Bond Portfolio:  The maximum income over the intermediate
term consistent with preservation of capital, through investment in highly rated
debt securities, U.S. Government obligations, and money market instruments,
together having a dollar-weighted average life of between 4 and 8 years. The
MONY Series Fund offers this Portfolio.
 
     Long Term Bond Portfolio:  The maximum income over the longer term
consistent with preservation of capital, through investment in highly rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of more than 8 years. The MONY Series Fund
offers this Portfolio.
 
                                       12
<PAGE>   16
 
     Government Securities Portfolio:  The maximum current income over the
intermediate term consistent with preservation of capital through investment in
highly-rated debt securities of the United States Government and its agencies
and money market instruments with a dollar weighted average life of up to ten
years at the time of purchase. The MONY Series Fund offers this Portfolio.
 
     Money Market Portfolio:  The maximum current income consistent with
preservation of capital and maintenance of liquidity, through investment in
money market instruments. The MONY Series Fund offers this Portfolio.
 
GUARANTEED INTEREST ACCOUNT
 
     The Guaranteed Interest Account is a part of the Company's General Account
and consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company, including the Variable Account.
 
     Crediting of Interest.  Net Purchase Payments allocated by a Contractholder
to the Guaranteed Interest Account will be credited with interest at the rate
declared by the Company which the Company guarantees will not be less than 4%
(0.010746%, compounded daily). For Contracts issued on or after May 1, 1994 (or
on or after such later date as approval required in certain states is obtained),
the rate declared by the Company will not be less than 3.5% (0.009426%
compounded daily). Each interest rate declared by the Company will be applicable
for all Net Purchase Payments received or transfers from the Variable Account
completed within the period during which it is effective. Initial Net Purchase
Payments allocated to the Guaranteed Interest Account will be credited with
interest at the rate in effect for the date on which the Contract is issued (and
the funds transferred into the Money Market Subaccount) from and after the date
on which the Free Look Privilege expires on all funds transferred from the Money
Market Subaccount to the Guaranteed Interest Account. Amounts withdrawn from the
Guaranteed Interest Account as a result of a transfer, partial surrender, or any
charge imposed in accordance with the Contract, will be deemed to be withdrawals
of amounts (and any interest credited thereon) most recently credited to the
Guaranteed Interest Account.
 
     Prior to the expiration of the period for which a particular interest rate
was guaranteed, the Company will declare a renewal interest rate to be effective
for such succeeding period as the Company shall determine.
 
     Descriptions of the Guaranteed Interest Account are included in this
Prospectus for the convenience of the purchaser. The Guaranteed Interest Account
and the general account of the Company are not registered under the Securities
Act of 1933 or the Investment Company Act of 1940. Accordingly, neither the
general account of the Company nor the Guaranteed Interest Account are generally
subject to the provisions of these Acts; however, disclosures regarding the
Guaranteed Interest Account and the general account of the Company may be
subject to certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of statements made in
prospectuses. The staff of the Securities and Exchange Commission has not
reviewed the disclosures in this Prospectus which relate to the Guaranteed
Interest Account and the general account of the Company.
 
                PAYMENT AND ALLOCATION OF NET PURCHASE PAYMENTS
 
ISSUANCE OF THE CONTRACT
 
     Individuals wishing to purchase a Contract must complete an application and
personally deliver it to a licensed agent of the Company who is also a
registered representative of MONY Securities Corp. ("MSC"), a wholly-owned
subsidiary of the Company, which is the principal underwriter for the Contracts,
or a registered broker-dealer which has been authorized by MSC to sell the
Contract. Except where certain automatic payment plans (i.e., government
allotment, payroll deduction, or automatic checking account withdrawal plans)
are used, the minimum initial Purchase Payment for the Contract is currently
$2,000 for Non-Qualified Plans, $2,000 for individual retirement accounts and
annuities purchased by individuals under Section 408 of the Code (other than
Simplified Employee Pensions), and $600 for H.R. 10 plans (self-employed
individuals' retirement plans under Sections 401 or 403(c) of the Code),
Simplified Employee
 
                                       13
<PAGE>   17
 
Pensions under Section 408 of the Code, and annuity purchase plans sponsored by
certain tax-exempt organizations, governmental entities, or public school
systems under Section 403(b) of the Code ("Tax Sheltered Annuities") and
deferred compensation plans under Section 457 of the Code. These minimum initial
Payments must be paid with the application for the Contract. Additional Payments
may be made at any time in the minimum amount of $100. For certain automatic
payment plans, however, the minimum additional payment is $50.
 
     Effective January 1, 1989, the Contracts offered by this Prospectus have
been withdrawn from sale in connection with Qualified Plans which intend to
qualify for federal income tax advantages available under Section 403 (b) of the
Code.
 
     Different rules apply for government allotment, payroll deduction and
automatic checking account withdrawal plans. For payroll deduction and automatic
checking account withdrawal plans, Purchase Payments must be made at an
annualized rate of $600 (i.e., $600 per year, $300 semiannually, $150 for each
quarter year, or $50 per month). For government allotment plans, the minimum
Purchase Payment is $50 per month.
 
     The Company reserves the right to revise its rules from time to time to
specify different minimum Purchase Payments.
 
     In addition, the prior approval of the Company is required before it will
accept a Purchase Payment where, with that Payment, cumulative Purchase Payments
made under any one or more Contracts held by the Contractholder, less the amount
of any prior partial surrenders and their Surrender Charges, exceed $1,500,000.
The prior approval of the Company is also required before it will accept that
part of a payment (or transfer) which would cause amounts credited to the
Guaranteed Interest Account to exceed $250,000 on the date of payment (or
transfer).
 
     The Company reserves the right to reject an application for any reason
permitted by law.
 
     Net Purchase Payments received before the Contract Date will be held in the
Company's General Account and will be credited with interest at not less than
3.5 percent per annum if the Contract is issued by the Company and accepted by
the Contractholder. No interest will be paid if the Contract is not issued or if
it is declined by the Contractholder. If the application is approved and the
Contract is subsequently issued and accepted by the Contractholder, then on the
Contract Date, amounts allocable to the Contract held in the Company's General
Account will be transferred to the Money Market Subaccount of the Variable
Account. These amounts will be held in that Subaccount pending expiration of the
Free Look Period. (See "Free Look Privilege" below.) For purposes of crediting
interest on amounts held in the General Account, Purchase Payments will be
treated as received on the day of actual receipt at the Company's Operations
Center. If an application is not complete when received by the Company at its
Operations Center, and if it is not made complete within 5 days, the prospective
purchaser will be informed of the reasons for the delay and the initial Purchase
Payment will be returned in full (and the application will be declined), unless
the prospective purchaser consents to the Company's retaining the Purchase
Payment until the application is made complete.
 
FREE LOOK PRIVILEGE
 
     Within the period of 10 days (or longer in certain states) following the
day the Contract is delivered to the Contractholder (the "Free Look Period"),
the Contractholder may return the Contract to the Company or to the agent
through whom it was purchased. When the Contract is received by the Company, it
will be voided as if it had never been in force. Except for Contracts issued in
the Commonwealth of Pennsylvania, the amount to be refunded is equal to the
greater of: (i) all Purchase Payments; and (ii) the Cash Value of the Contract
(as of the date the returned Contract is received at the Home Office or a local
office of the Company, or by the agent who sold the Contract, or, if returned by
mail, upon being postmarked, properly addressed, and postage prepaid) plus any
deductions from Purchase Payments for taxes, any mortality and expense risk
charges deducted in determining the Unit value of the Variable Account, and
asset charges deducted in determining the share value of the Funds. For
Contracts entered into in the Commonwealth of Pennsylvania, the amount to be
refunded is described in clause (ii) of the immediately preceding sentence.
 
                                       14
<PAGE>   18
 
ALLOCATION OF NET PURCHASE PAYMENTS AND CASH VALUE
 
     Allocation of Net Purchase Payments.  The Contractholder may allocate on
the application Net Purchase Payments to the Subaccount(s) of the Variable
Account or to the Guaranteed Interest Account. Any Net Purchase Payments
received before the end of the Free Look Period (and any interest thereon) will
initially be allocated to the Money Market Subaccount of the Variable Account on
the later of (i) the Contract Date and (ii) the date the Payment is received at
the Company's Operations Center. Net Purchase Payments will continue to be
allocated to that Subaccount until the Free Look Period expires and, if the
allocation on the application is incomplete or incorrect, a complete and correct
allocation notification is received by the Company. (See "Free Look Privilege"
above.) After the Free Look Period has expired and, if applicable, the correct
and complete allocation notification has been received, the Contract's Cash
Value held in the Money Market Subaccount will automatically be transferred to
the Subaccount(s) of the Variable Account or to the Guaranteed Interest Account
in accordance with the Contractholder's percentage allocation.
 
     After the Free Look Period, Net Purchase Payments under a nonautomatic
payment plan will be allocated in accordance with the Contractholder's most
recent instructions on record with the Company, unless the Contractholder at the
time a Purchase Payment is made specifies the amount (not less than $10.00 per
Subaccount) or the percentage (not less than 10 percent of the Payment) of the
Net Purchase Payment to be allocated among the Subaccount(s). If the specific
allocation is incorrect or incomplete, then that Net Purchase Payment will be
made in accordance with the most recent correct payment allocation on record.
For automatic payment plans, Net Purchase Payments will be allocated in
accordance with the Contractholder's most recent instructions on record.
 
     The Contractholder may change the allocation formula specified in the
initial allocation notification, or as changed in any subsequent notification,
for future Net Purchase Payments at any time without charge by sending written
notification to the Company at the Operations Center. Prior allocation
instructions may also be changed by telephone, subject to the rules of the
Company and its right to terminate telephone allocations. The Company reserves
the right to deny any telephone allocation request. If all telephone lines are
busy (which might occur, for example, during periods of substantial market
fluctuations), contractholders might not be able to request changes in
allocation of purchase payments by telephone and would have to submit written
requests. Any such change, whether made in writing or by telephone, will be
effective not later than 7 days after notification is received. The Company has
adopted rules relating to changes of allocations by telephone, which, among
other things, outlines procedures to be followed which are designed, and which
the Company believes are reasonable, to prevent unauthorized instructions. If
these procedures are followed, the Company shall not be liable for, and the
Contractholder will therefore bear the entire risk of, any loss as a result of
the Company's following telephone instructions in the event that such
instructions prove to be fraudulent. A copy of the rules and the Company's form
for electing telephone allocation privileges is available from licensed agents
of the Company who are also registered representatives of MSC or by calling
1-800-487-6669. The Company's form must be signed and received at the Company's
Syracuse Operations Center before telephone allocation instructions will be
accepted.
 
     The minimum percentage of each Net Purchase Payment that may be allocated
to any Subaccount of the Variable Account or to the Guaranteed Interest Account
is 10 percent; all percentages must be expressed in whole numbers and must total
100 percent. The minimum amount of each Net Purchase Payment that may be
allocated to any Subaccount of the Variable Account or to the Guaranteed
Interest Account is $10.00.
 
     Upon receipt of a Purchase Payment, the Net Purchase Payments allocated to
Subaccounts of the Variable Account will be credited to the designated
Subaccount(s) in the form of Units. The number of Units to be credited to a
Subaccount is determined by dividing the dollar amount allocated to the
particular Subaccount by the Unit value for the particular Subaccount for the
Valuation Date on which the Purchase Payment is received.
 
                                       15
<PAGE>   19
 
     The Unit Value for each Subaccount was established at $10 for the first
Valuation Date. The Unit value for a Subaccount for any subsequent Valuation
Date is determined by subtracting (b) from (a) and dividing the result by (c),
where
 
          (a) is the per share net asset value on the Valuation Date of the Fund
     Portfolio in which the Subaccount invests times the number of such shares
     held in the Subaccount before the purchase or redemption of any shares on
     that Date;
 
          (b) is the mortality and expense risk charge accrued as of that
     Valuation Date (the daily mortality and expense risk charge is a percentage
     of the Subaccount's net asset value on the previous Valuation Date. If the
     previous day was not a Valuation Date, then the daily mortality and expense
     risk charge is the applicable percentage times the number of days since the
     last Valuation Date times the Subaccount's net asset value on the last
     Valuation Date); and
 
          (c) is the total number of Units held in the Subaccount on the
     Valuation Date before the purchase or redemption of any Units on that Date.
 
     The Unit Value for these Subaccounts may increase, decrease, or remain
constant from Valuation Date to Valuation Date, depending upon the investment
performance of the Portfolio of the Fund in which the Subaccount is invested and
any expenses and charges deducted from the Variable Account. The Contractholder
bears the entire investment risk. Contractholders should periodically review
their allocations of payments and values in light of market conditions and
overall financial planning requirements.
 
     Net Purchase Payments to be allocated to the Guaranteed Interest Account
will be credited to that account on the date of receipt at the Operations
Center, if that date is a Valuation Date, and, if not, on the next Valuation
Date. Interest will be credited daily. In the event that allocation of a Net
Purchase Payment would cause the amounts credited to the Guaranteed Interest
Account to exceed the $250,000 limit imposed by the Company, that part of a Net
Purchase Payment allocated to the Guaranteed Interest Account which equals the
difference between $250,000 and the amount credited to the Guaranteed Interest
Account on the date the allocation is to be made will be accepted (and credited
to the Guaranteed Interest Account) but the remainder of such allocation will be
returned to the Contractholder.
 
     Cash Value.  The Contract's Cash Value will reflect the investment
performance of the selected Subaccount(s) of the Variable Account, amounts
credited to the Guaranteed Interest Account, any Net Purchase Payments, any
partial surrenders, and all charges imposed in connection with the Contract.
There is no guaranteed minimum Cash Value, except to the extent Net Purchase
Payments have been allocated to the Guaranteed Interest Account, and because a
Contract's Cash Value at any future date will be dependent on a number of
variables, it cannot be predetermined.
 
     Determination of Cash Value.  The Cash Value of the Contract is determined
on each Valuation Date. The Cash Value will be calculated first on the Contract
Date and thereafter on each Valuation Date. On the Contract Date, the Contract's
Cash Value will be the Net Purchase Payments received plus any interest credited
on those Payments. During the period when Net Purchase Payments are held in the
General Account, interest will be credited to the Contract. (See "Issuance of
the Contract" at page 13.) After allocation of the amounts in the General
Account to the Variable Account or to the Guaranteed Interest Account, on each
Valuation Date, the Contract's Cash Value will be:
 
          (1) The aggregate of the Cash Values attributable to the Contract in
     each of the Subaccounts on the Valuation Date, determined for each
     Subaccount by multiplying the Subaccount's Unit value on that date by the
     number of Subaccount Units allocated to the Contract; plus
 
          (2) any amount credited to the Guaranteed Interest Account (which
     shall be the aggregate of all Net Purchase Payments, plus interest
     credited, if any, plus or minus amounts transferred, if any, less partial
     surrenders, if any, less any charges and deductions imposed in accordance
     with the Contract terms detailed in the Prospectus), plus
 
        (3) any Net Purchase Payment received on that Valuation Date; less
 
                                       16
<PAGE>   20
 
          (4) any partial surrender amount and its Surrender Charge made on that
     Valuation Date; less
 
          (5) any Annual Contract Charge deductible on that Valuation Date.
 
     In computing the Contract's Cash Value, the number of Subaccount Units
allocated to the Contract is determined after any transfers among Subaccounts
(and deduction of transfer charges) or between one or more of the Subaccounts
and the Guaranteed Interest Account, but before any other Contract transactions,
such as receipt of Net Purchase Payments and partial surrenders, on the
Valuation Date. If the Contract's Cash Value is to be calculated for a day that
is not a Valuation Date, the next following Valuation Date will be used.
 
     Transfers.  After the Free Look Period has expired, the value attributable
to the Contract may be transferred among the Subaccounts of the Variable
Account. There is no minimum amount that need be transferred. The Company will
effectuate transfers and determine all values in connection with transfers among
the Subaccounts on the date on which the transfer request is received at the
Operations Center, if that date is a Valuation Date and, if not, on the next
Valuation Date. Different provisions apply to transfers involving the Guaranteed
Interest Account. (See "Allocation of Net Purchase Payments and Cash Value --
Transfers Involving the Guaranteed Interest Account", below.) Transfers may be
made by sending a written request to the Operations Center or by telephone,
subject to the rules of the Company and its right to terminate telephone
transfers. The Company reserves the right to deny any telephone transfer
request. If all telephone lines are busy (which might occur, for example, during
periods of substantial market fluctuations), Contractholders might not be able
to request transfers by telephone and would have to submit written requests. If
a written transfer request is incomplete or incorrect, no transfer will be made
and the request will be returned to the Contractholder. Telephone transfer
instructions will only be accepted if complete and correct. The Company has
adopted guidelines relating to telephone transfers which, among other things,
outlines procedures to be followed which are designed, and which the Company
believes are reasonable, to prevent unauthorized transfers. If these procedures
are followed, the Company shall not be liable for, and the Contractholder will
therefore bear the entire risk of any loss as a result of the Company's,
following telephone instructions in the event that such instructions prove to be
fraudulent. A copy of the guidelines and the Company's form for electing
telephone transfer privileges is available from licensed agents of the Company
who are also registered representatives of MSC or by calling 1-800-487-6669. The
Company's form must be signed and received at the Company's Syracuse Operations
Center before telephone transfers will be accepted.
 
     A transfer charge will not be imposed on the first 4 transfers made during
any Contract Year. (See "Charges Against Cash Value -- Transfer Charge" at page
22.) For any additional transfers during a Contract Year, a transfer charge is
not currently imposed, but the Company has reserved the right to impose a charge
for each transfer in excess of 4, which will not exceed $25 per transfer. If
imposed, the transfer charge will be deducted from the Subaccount(s) or the
Guaranteed Interest Account from which the amounts are transferred. This charge
is in addition to the amount transferred. If, however, there is insufficient
Cash Value in a Subaccount or in the Guaranteed Interest Account to provide for
its proportionate share of the charge, then the entire charge will be allocated
in the same manner as the Annual Contract Charge. (See "Charges Against Cash
Value -- Annual Contract Charge" at page 22.) All transfers included in a single
request are treated as one transfer transaction. A transfer resulting from the
first reallocation of Cash Value at the expiration of the Free Look Period will
not be subject to a transfer charge, nor will it be counted against the 4
transfers allowed in each Contract Year without charge. Under present law,
transfers are not taxable transactions.
 
     Transfers Involving the Guaranteed Interest Account.  Transfers to or from
the Guaranteed Interest Account are subject to the following limitations. The
prior approval of the Company is required before it will accept that part of a
transfer which would cause amounts credited to the Guaranteed Interest Account
to exceed $250,000. The portion of any transfer which cannot be made because of
such limitation will be allocated back to the Subaccounts designated in that
transfer as the Subaccounts from which amounts were to be transferred in the
proportion that the amount requested by the Contractholder to be transferred
from each Subaccount bears to the total amount transferred. Transfers of amounts
credited to the Guaranteed Interest Account to one or more Subaccounts may be
made once during each Contract Year, and the amount which
 
                                       17
<PAGE>   21
 
may be transferred is limited to the greater of (i) 25% of the amounts credited
to the Guaranteed Interest Account of the Contractholder on the date the
transfer would take effect or (ii) $5,000. Transfer requests involving the
Guaranteed Interest Account will be effective only on an anniversary of the
Contract Date or on a Valuation Date not more than 30 days thereafter. Requests
received not more than 10 days before the anniversary of the Contract Date will
be executed on the anniversary of the Contract Date. Requests received within 30
days after the anniversary of the Contract date will be executed on the
Valuation Date which coincides with or next follows the date the request is
received. Requests received more than thirty days before or after the
anniversary of the Contract Date will be returned to the Contractholder.
 
TERMINATION OF THE CONTRACT
 
     The Contract will remain in force until the earlier of (1) the date the
Contract is surrendered in full, (2) the Annuity Commencement Date, (3) the
Contract Anniversary on which, after deduction for any Annual Contract Charge
then due, no Cash Value remains in the Contract, and (4) the date the Death
Benefit is payable under the Contract.
 
                                   SURRENDERS
 
     At any time on or before the Annuity Commencement Date and during the
lifetime of the Annuitant, the Contractholder may elect to make a surrender of
all or part of the Contract's value. Any such election shall specify the amount
of the surrender and will be effective on the date a proper request is received
by the Company at its Operations Center.
 
     The amount of the surrender may be equal to the Contract's Surrender Value,
which is its Cash Value less (1) any applicable Surrender Charge and (2) (for a
full surrender) any Annual Contract Charge. The Surrender may also be for a
lesser amount (a "partial surrender") of at least $100. If a partial surrender
is requested, and that surrender would leave a Cash Value of less than $1,000,
then that partial surrender will be treated and processed as a full surrender,
and the entire Surrender Value will be paid to the Contractholder. For a partial
surrender, any Surrender Charge will be in addition to the amount requested by
the Contractholder.
 
     A surrender will result in the cancellation of Units and the withdrawal of
amounts credited to the Guaranteed Interest Account, in accordance with the
directions of the Contractholder, with an aggregate value equal to the dollar
amount of the surrender plus, if applicable, the Annual Contract Charge and any
Surrender Charge. For a partial surrender, the Company will cancel Units of the
particular Subaccounts and withdraw amounts from the Guaranteed Interest Account
in accordance with the allocation specified by the Contractholder in written
notice to the Company at its Operations Center at the time the request for the
partial surrender is received; provided, however, that allocations by a
Contractholder against the Guaranteed Interest Account will be limited (the "GIA
Allocation Limitation") to that amount which bears the same proportion to the
total amount being surrendered as the amount credited to the Guaranteed Interest
Account of the Contractholder bears to the total of (i) all amounts credited to
the Guaranteed Interest Account of the Contractholder and (ii) the aggregate
value of Units held in all Subaccounts of the Contractholder, unless there is no
Cash Value in any Subaccount at the time the transfer request is received.
Allocations may be by either amount or percentage. Allocations by amount require
that at least $25 be allocated against the Guaranteed Interest Account or any
Subaccount designated by the Contractholder. If there is insufficient Cash Value
in the Contractholder's Guaranteed Interest Account or a Subaccount to provide
for the requested allocation against it, or if the GIA Allocation Limitation is
exceeded, or the request is incorrect, the request will not be accepted. If an
allocation is not requested, then the entire amount of the partial surrender
will be allocated against the Guaranteed Interest Account and each Subaccount in
the same proportion that the Contract's Cash Value held in the Guaranteed
Interest Account and each Subaccount bears to the Contract's Cash Value.
 
     Any Surrender Charge will be allocated against the Guaranteed Interest
Account and each Subaccount in the same proportion that the amount of a partial
surrender allocated against the Guaranteed Interest Account and each Subaccount
bears to the total amount of the partial surrender. In the event that an
 
                                       18
<PAGE>   22
 
allocation of the partial surrender is not made, or there is insufficient cash
value in the Guaranteed Interest Account or any Subaccount to provide for its
proportionate share of the Surrender Charge, then the entire Surrender Charge
will be allocated against the Guaranteed Interest Account and each Subaccount in
the same proportion that the Cash Value held in the Guaranteed Interest Account
and each Subaccount (after allocation of the partial surrender amount) bears to
the Contract's Cash Value.
 
     Any cash surrender amount will be paid within seven (7) days from the date
the election becomes effective, except as the Company may be permitted to
postpone such payment in accordance with the Investment Company Act of 1940.
Postponement is currently permissible only (1) for any period (a) during which
the New York Stock Exchange is closed other than customary weekend and holiday
closings, or (b) during which trading on the New York Stock Exchange is
restricted as determined by the Securities and Exchange Commission, (2) for any
period during which an emergency exists as a result of which (a) disposal of
securities held by the Funds is not reasonably practicable, or (b) it is not
reasonably practicable to determine the value of the net assets of the Funds, or
(3) for such other periods as the Securities and Exchange Commission may by
order permit for the protection of Contractholders. Any cash surrender involving
payment from amounts credited to the Guaranteed Interest Account may, to the
extent amounts are paid from the Guaranteed Interest Account, be postponed, at
the option of the Company, for up to 6 months from the date the request for a
surrender or proof of death is received by the Company. The Contractholder may
elect to have the amount of a surrender settled under one of the Settlement
Options of the Contract. (See "Annuity Provisions" at page 24.)
 
     Since the Contracts offered by this Prospectus may be issued in connection
with retirement plans that meet the requirements of certain sections of the
Internal Revenue Code, reference should be made to the terms of the particular
retirement plan for any limitations or restrictions on cash surrenders.
 
     The tax consequences of a cash surrender should be carefully considered
(see "FEDERAL TAX STATUS" at page 30).
 
                                 DEATH BENEFIT
 
DEATH BENEFIT PROVIDED BY THE CONTRACT
 
     In the event of the death of the Annuitant (and the Contingent Annuitant,
if one has been named) (see "Contingent Annuitant" at page 27) prior to the
Annuity Commencement Date, the Company will pay a Death Benefit to the
Beneficiary. The amount of the Death Benefit will be the greater of (a) the Cash
Value on the date of the Annuitant's death, and (b) the Purchase Payments paid,
less any partial surrenders and their Surrender Charges. If the death of the
Annuitant occurs on or after the Annuity Commencement Date, no Death Benefit
will be payable except as may be provided under the Settlement Option elected.
 
ELECTION AND EFFECTIVE DATE OF ELECTION
 
     During the lifetime of the Annuitant and prior to the Annuity Commencement
Date, the Contractholder may elect to have the Death Benefit of the Contract
applied under one or more Settlement Options to effect an annuity for the
Beneficiary as payee after the death of the Annuitant. (See "Settlement Options"
at page 25.) If no election of a Settlement Option for the Death Benefit is in
effect on the date when proceeds become payable, the Beneficiary may elect (a)
to receive the Death Benefit in the form of a cash payment; or (b) to have the
Death Benefit applied under one of the Settlement Options. (See "Settlement
Options" at page 25.) If an election by the payee is not received by the Company
within thirty (30) days following the date proceeds become payable, the payee
will be deemed to have elected a cash payment. Either election described above
may be made by filing with the Company a written election in such form as the
Company may require. Any proper election of a method of settlement of the Death
Benefit by the Contractholder will become effective on the date it is signed,
but any election will be subject to any payment made or action taken by the
Company before receipt of the notice at the Company's Operations Center.
 
                                       19
<PAGE>   23
 
     Reference should be made to the terms of any applicable retirement plan and
any applicable legislation for any limitations or restrictions on the election
of a method of settlement and payment of the Death Benefit.
 
PAYMENT OF DEATH BENEFIT
 
     If the Death Benefit is to be paid in cash to the Beneficiary, payment will
be made within seven (7) days of the date the election becomes effective or is
deemed to become effective and due proof of death is received, except as the
Company may be permitted to postpone such payment in accordance with the
Investment Company Act of 1940. If the Death Benefit is to be paid in one sum to
the Successor Beneficiary, or to the estate of the deceased Annuitant, payment
will be made within seven (7) days of the date due proof of the death of the
Annuitant and the Beneficiary is received by the Company. Interest at a rate
determined by the Company will be paid on any Death Benefit paid in one sum,
from the date of the Annuitant's (or Contingent Annuitant's, if applicable)
death to the date of payment. The interest rate will not be less than 2 3/4
percent annually.
 
                             CHARGES AND DEDUCTIONS
 
     Charges may be assessed under the Contracts as follows:
 
DEDUCTIONS FROM PAYMENTS
 
     A deduction may be made from each Purchase Payment for premium or similar
taxes prior to allocation of any Net Purchase Payment among the Subaccounts of
the Variable Account. Currently, the Company does not make such a deduction, but
may do so in the future. The Company will provide the Contractholder with
written notice of its intention to make deductions for premium or other taxes.
Any such deduction will apply only to Purchase Payments made after notice has
been sent by the Company. The amount of the deduction will vary from locality to
locality, but will generally range from 0 percent to 3.5 percent of Purchase
Payments. Residents of the Commonwealth of Pennsylvania should be aware that a
tax on Purchase Payments has been adopted; however, the Company currently is
assuming responsibility for payment of this tax. In the event that the Company
will begin to make deductions for such tax from future Purchase Payments, it
will give notice to each affected Contractholder.
 
CHARGES AGAINST CASH VALUE
 
     Surrender Charge.  The Contract imposes a contingent deferred sales charge,
called a "Surrender Charge," on full and partial surrenders and on the Annuity
Commencement Date. The Surrender Charge, which will never exceed 7 percent of
total Purchase Payments, is intended to reimburse the Company for expenses
incurred in distributing the Contract. To the extent such charge is insufficient
to cover all distribution costs, the Company will make up the difference using
funds from its General Account, which may contain funds deducted from the
Variable Account to cover mortality and expense risks borne by the Company. (See
"Mortality and Expense Risk Charge" at page 22.)
 
     If all or a portion of the Contract's Surrender Value (see "Surrenders" at
page 18) is surrendered or if the Surrender Value is received at maturity on the
Annuity Commencement Date, a Surrender Charge will be calculated at the time of
surrender and will be deducted from the Cash Value. A Surrender Charge will not
be imposed against Cash Value surrendered in a Contract Year up to an amount
equal to Net Purchase Payments made by the Contractholder prior to the Contract
Year of the surrender and the preceding 7 Contract Years. In addition, the
Surrender Charge, which otherwise would have been deducted, will not be deducted
to the extent necessary to permit the Contractholder to obtain an amount equal
to the Guaranteed Free Surrender Amount (the "Guaranteed Free Surrender
Amount"). (See "Guaranteed Free Surrender Amount" at page 21.) No Surrender
Charge will be imposed if the surrender is a full surrender and the following
conditions are met: (i) the Annuitant is age 59 1/2 or older on the date of the
full surrender; (ii) the Contract has been in force for at least 10 Contract
Years; and (iii) one or more Purchase Payments were remitted during each of at
least 7 of the 10 Contract Years immediately preceding the date of surrender. In
addition, no Surrender Charge will be imposed if the Contract is surrendered
after the third Contract Year and the
 
                                       20
<PAGE>   24
 
surrender proceeds are paid under either Settlement Option 3 or Settlement
Option 3A (See "Settlement Options" at page 25). In no event will the aggregate
Surrender Charge exceed 7 percent of the total Purchase Payments made in the
Year of the surrender and during the 7 preceding Contract Years. The Contract
Date and Contract Years shall remain unchanged as a result of the Merger.
 
     For a partial surrender, the Surrender Charge will be deducted from any
remaining Contract Value, if sufficient; otherwise, it will be deducted from the
amount surrendered. Any Surrender Charge will be allocated against the
Guaranteed Interest Account and each Subaccount of the Variable Account in the
same proportion that the amount of the partial surrender allocated against the
Guaranteed Interest Account and each Subaccount bears to the total amount of the
partial surrender. But, if there is insufficient cash value in the Guaranteed
Interest Account or any Subaccount to provide for its proportionate share of the
charge, then the entire charge will be allocated against the Guaranteed Interest
Account and each Subaccount in the same proportion that the Cash Value held in
the Guaranteed Interest Account and each Subaccount bears to the cash value in
the Guaranteed Interest Account and all Subaccounts.
 
     No Surrender Charge will be deducted from Death Benefits. (See "Death
Benefit" at page 19.)
 
     For purposes of determining the Surrender Charge, surrenders will be
attributed to payments on a first-in, first-out basis. Contractholders should
note that this is different from the allocation method that is used for
determining tax obligations. (See "FEDERAL TAX STATUS" at page 30.)
 
     Amount of Surrender Charge.  The amount of the Surrender Charge is
determined as follows:
 
     Step 1.  Allocate Purchase Payments on a first-in, first-out basis to the
amount surrendered (any Purchase Payments previously allocated to calculate a
surrender charge are unavailable for allocation to calculate any future
surrender charges); and
 
     Step 2.  Multiply each such allocated Purchase Payment by the appropriate
surrender charge percentage determined on the basis of the table below:
 
                       SURRENDER CHARGE PERCENTAGE TABLE
 
<TABLE>
<CAPTION>
                       # OF CONTRACT
                       ANNIVERSARIES                          SURRENDER
                       SINCE PURCHASE                           CHARGE
                      PAYMENT RECEIVED                        PERCENTAGE
- ------------------------------------------------------------  ----------
<S>                                                           <C>
       0....................................................      7%
       1....................................................      7
       2....................................................      6
       3....................................................      6
       4....................................................      5
       5....................................................      4
       6....................................................      3
       7....................................................      2
       8 (or more)..........................................      0
</TABLE>
 
     Step 3.  Add the products of each multiplication in Step 2 above.
 
     Guaranteed Free Surrender Amount.  The Surrender Charge may be reduced by
using the Guaranteed Free Surrender Amount provided for in the Contract. For
Non-Qualified Contracts (and Contracts issued for IRA and SEP-IRA) in certain
states which have granted approval, the Guaranteed Free Surrender Amount
provides that an amount up to 10% of the Contract's Cash Value (on the date the
first partial surrender request is received during a Contract Year) may be
surrendered without application of a surrender charge. For Qualified Contracts
issued on or after May 1, 1994 (other than Contracts issued for IRA and SEP-IRA)
in certain states which have granted approval, the Guaranteed Free Surrender
Amount provides that the greater of $10,000 (but not more than the Contract's
Cash Value) or 10% of the Contract's Cash Value (on the date the first partial
surrender request is received during a Contract Year) may be surrendered without
application
 
                                       21
<PAGE>   25
 
of surrender charge, provided no prior partial surrender was made during that
Contract year. (See a registered representative of MSC who is also a licensed
agent of the Company for which states have granted approval.) For holders of
Qualified Contracts issued before May 1, 1994 and for holders of Contracts in
those states where approval has not been granted, the Guaranteed Free Surrender
Amount provides that an amount up to 10% of the Contract's Cash Value (on the
date the partial surrender request is received) may be surrendered without the
application of a surrender charge, provided no prior partial surrender was made
during that Contract Year. The Company reserves the right to limit the number of
partial surrenders available under the Guaranteed Free Surrender Amount to 12
per Contract Year. Since Purchase Payments are allocated on a first-in,
first-out basis, the free surrender amount will not reduce surrender charges to
the extent that any Cash Value in that amount is equal to Purchase Payments
received 8 or more Contract Anniversaries ago.
 
     For illustrations of how the Surrender Charge is calculated, see Appendix A
on page A-1 of this Prospectus.
 
     Annual Contract Charge.  The Company has primary responsibility for the
administration of the Contract and the Variable Account. Ordinary administrative
expenses expected to be incurred include premium collection, recordkeeping,
processing death benefit claims and surrenders, preparing and mailing reports,
and overhead costs. In addition, the Company expects to incur certain additional
administrative expenses in connection with the issuance of the Contract,
including the review of applications and the establishment of Contract records.
 
     The Company intends to administer the Contract itself.
 
     An Annual Contract Charge will be deducted from the Contract's Cash Value
to help cover administrative expenses. Currently, for Non-Qualified Contracts
(and Contracts issued for IRA and SEP-IRA) the amount of the charge is $30, but
it may be increased to as much as $50 on 30 days' written notice to the
Contractholder. For Qualified Contracts (other than those issued for IRA and
SEP-IRA) currently the amount of the charge is reduced to $15, but it may be
increased to as much as $50 on 30 days written notice to the Contractholder, and
will be increased to $30 in the event that the Contract is no longer a Qualified
Contract. The charge will be deducted on (a) each Contract Anniversary prior to
the Annuity Commencement Date, (b) the Annuity Commencement Date, and (c) the
date of full surrender (if that date is not a Contract Anniversary). The amount
of the charge will be allocated against the Guaranteed Interest Account and each
Subaccount of the Variable Account in the same proportion that the Cash Value in
the Guaranteed Interest Account and each Subaccount bears to the Cash Value of
the Contract. The Company does not expect to make any profit from the
administrative cost deductions.
 
     Transfer Charge.  The Company has reserved the right to impose a transfer
charge, which will not exceed $25, for each transfer instructed by the
Contractholder among the Subaccounts or to or from the Guaranteed Interest
Account and one or more of the Subaccounts in excess of 4 transfers in a
Contract Year, to compensate the Company for the costs of effectuating the
transfer. Currently, the Company does not do so. The Company does not expect to
make a profit from the transfer charge. This charge will be deducted from the
Contract's Cash Value held in the Subaccount(s) from which the transfer is made,
or from the Guaranteed Interest Account if a transfer is made therefrom, and
will be allocated against these Subaccount(s) or the Guaranteed Interest Account
in the same proportion as the amounts transferred. If there is insufficient
value in a Subaccount or the Guaranteed Interest Account to provide for that
Subaccount's or the Guaranteed Interest Account's proportionate share of the
charge, then the entire charge will be allocated in the same manner as the
Annual Contract Charge. (See "Charges Against Cash Value -- Annual Contract
Charge" above.)
 
MORTALITY AND EXPENSE RISK CHARGE
 
     A daily charge will be deducted from the value of the net assets of the
Variable Account to compensate the Company for mortality and expense risks
assumed in connection with the Contract. This daily charge from the Variable
Account will be at the rate of 0.003425 percent (equivalent to an annual rate of
1.25 percent) of the average daily net assets of the Variable Account. Of the
1.25 percent charge, .80 percent is for assuming mortality risks, and .45
percent is for assuming expense risks. The daily charge will be deducted from
the net
 
                                       22
<PAGE>   26
 
asset value of the Variable Account, and therefore the Subaccounts, on each
Valuation Date. These charges will not be deducted from the Guaranteed Interest
Account. Where the previous day (or days) was not a Valuation Date, the
deduction on the Valuation Date will be 0.003425 percent multiplied by the
number of days since the last Valuation Date.
 
     The Company believes that this level of charge is within the range of
industry practice for comparable individual flexible payment variable annuity
contracts.
 
     The mortality risk assumed by the Company is that Annuitants may live for a
longer time than projected, and that an aggregate amount of annuity benefits
greater than that projected will accordingly be payable. In making this
projection, the Company has used the mortality rates from the 1983 Table "a"
(discrete functions without projections for future mortality), with 3 1/2
percent interest. The expense risk assumed is that expenses incurred in issuing
and administering the Contracts will exceed the administrative charges provided
in the Contracts.
 
     The Company does not expect to make a profit from the mortality and expense
risk charge. Should, however, the amount of the charge exceed the amount needed,
the excess will be retained by the Company in its general account. Should the
amount of the charge be inadequate, the Company will pay the difference out of
its General Account.
 
TAXES
 
     Currently, no charge will be made against the Variable Account for federal
income taxes. The Company may, however, make such a charge in the future if
income or gains within the Variable Account will incur any federal income tax
liability. Charges for other taxes, if any, attributable to the Variable Account
may also be made. (See "FEDERAL TAX STATUS" at page 30.)
 
INVESTMENT ADVISORY FEE
 
     Because the Variable Account purchases shares of the Funds, the net assets
of the Variable Account will reflect the investment advisory fee and other
expenses incurred by the Funds. MONY America, as investment adviser to the MONY
Series Fund, will receive monthly compensation with respect to the Intermediate
Term Bond, Long Term Bond, and Government Securities Portfolios that it advises
at an annual rate of 0.50 percent of the first $400 million of the aggregate
average daily net assets of each of those MONY Series Fund Portfolios, 0.35
percent of the next $400 million of the aggregate average daily net assets of
each of those MONY Series Fund Portfolios, and 0.30 percent of the aggregate
average daily net assets of each of those MONY Series Fund Portfolios in excess
of $800 million. MONY America, as investment adviser to the MONY Series Fund,
will receive monthly compensation with respect to the Money Market Portfolio
that it advises at an annual rate of 0.40 percent of the first $400 million of
the average daily net assets of the Money Market Portfolio; 0.35 percent of the
next $400 million of the average daily net assets of the Money Market Portfolio;
and 0.30 percent of the average daily net assets of the Money Market Portfolio
in excess of $800 million. Each daily charge for the fee is divided among those
Portfolios in proportion to their net assets on that date. Enterprise Capital,
as investment adviser to the Accumulation Trust, will receive from the
Accumulation Trust monthly compensation with respect to the Equity, Small
Company Value and Managed Portfolios that it advises at an annual rate of 0.80
percent of the first $400 million of the aggregate average daily net assets of
those portfolios, 0.75 percent of the next $400 million of the aggregate average
daily net assets of those portfolios, and 0.70 percent of the aggregate average
daily net assets of those portfolios which exceed $800 million. OpCap Advisors,
a subsidiary of Oppenheimer Capital, as sub-investment adviser to the Equity and
Managed Portfolios of the Accumulation Trust will receive from Enterprise
Capital and not the Accumulation Trust 0.40 percent (0.30 percent of assets in
excess of $1 billion) of the aggregate average daily net assets of the Equity,
and Managed Portfolios. Gabelli Asset Management, Inc. (formerly GAMCO
Investors, Inc.) as sub-investment adviser to the Small Company Value Portfolio
(formerly the Small Cap Portfolio) of the Accumulation Trust, will receive from
Enterprise Capital and not the Accumulation Trust, 0.40 percent (0.30 percent of
assets in excess of $1 billion) of the aggregate average daily net assets of the
Small Cap Portfolio. Enterprise Capital, as investment adviser to the
Accumulation Trust, will receive with
 
                                       23
<PAGE>   27
 
respect to the High Yield Bond Portfolio monthly compensation at an annual rate
of 0.60 percent of the aggregate average daily net assets of the High Yield Bond
Portfolio, and Caywood-Scholl Capital Corporation, as sub-investment adviser to
the High Yield Bond Portfolio, will receive from Enterprise Capital and not the
Accumulation Trust, .30 percent of the aggregate average daily net assets (.252
percent for assets in excess of $100 million) of the High Yield Bond Portfolio.
Enterprise Capital, as investment adviser to the Accumulation Trust will receive
with respect to the International Growth Portfolio monthly compensation at an
annual rate of .85 percent of the aggregate average daily net assets of the
International Growth Portfolio, and Brinson Partners, as sub-investment adviser
to the International Growth Portfolio, will receive from Enterprise Capital and
not the Accumulation Trust, .4495 percent (53% of the fee received by Enterprise
Capital; the fee paid to Brinson Partners declines as assets exceed $100
million) of the aggregate average daily net assets of the International Growth
Portfolio. The investment advisers will reimburse the Funds for the amount, if
any, by which the aggregate ordinary operating expenses of any of these
Portfolios incurred by the Funds in any calendar year exceed the most
restrictive expense limitations then in effect under any state securities law or
regulation. Currently, the most restrictive expense limitation in effect limits
expenses of each Fund Portfolio to an amount equal to 2.5 percent of the first
$30 million of average daily net assets of the Portfolio, 2.0 percent of the
next $70 million, and 1.5 percent of the average daily net assets of the
Portfolio in excess of $100 million.
 
                               ANNUITY PROVISIONS
 
ANNUITY COMMENCEMENT DATE
 
     Annuity payments under a Contract will begin on the Annuity Commencement
Date that is selected by the Contractholder at the time the Contract is applied
for. The Annuity Commencement Date chosen may be no earlier than the Contract
Anniversary nearest the Annuitant's 10th birthday, and no later than the
Contract Anniversary nearest the Annuitant's 90th (85th for Contracts issued
before October 24, 1997) birthday. The minimum number of years from the Contract
Date to the Annuity Commencement Date is 10. The Annuity Commencement Date may
be advanced to a date not earlier than the 10th Contract Anniversary or deferred
from time to time by the Contractholder by written notice to the Company,
provided that (1) notice of such deferral or advance is received by the Company
prior to the then current Annuity Commencement Date, and (2) the new Annuity
Commencement Date is a date which is not later than the Contract Anniversary
nearest the Annuitant's 90th (85th for Contracts issued before October 24, 1997)
birthday. A particular retirement plan may contain other restrictions.
 
     On the Annuity Commencement Date, the Contract's Surrender Value will be
applied to provide an annuity or any other option previously chosen by the
Contractholder and permitted by the Company. A supplementary contract will be
issued, and that contract will set forth the terms of the settlement. No
payments may be requested under the Contract's surrender provisions after the
Annuity Commencement Date, and no surrender will be permitted except as may be
available under the Settlement Option elected.
 
     For Contracts issued in connection with retirement plans, reference should
be made to the terms of the particular retirement plan for any limitations or
restrictions on the Annuity Commencement Date.
 
ELECTION AND CHANGE OF SETTLEMENT OPTION
 
     During the lifetime of the Annuitant and prior to the Annuity Commencement
Date, the Contractholder may elect one or more of the Settlement Options
described below, or such other settlement option (including a lump-sum payment)
as may be agreed to by the Company. The Contractholder may also change any
election, but written notice of an election or change of election must be
received by the Company at its Operations Center prior to the Annuity
Commencement Date. If no election is in effect on the Annuity Commencement Date,
Settlement Option 3, for a Life Annuity with 10 years certain, based on the
Annuitant's life, will be deemed to have been elected.
 
     Settlement Options may also be elected by the Contractholder or the
Beneficiary as provided in the Death Benefit and Surrender sections of this
Prospectus. (See "DEATH BENEFIT" at page 19 and "SURRENDERS" at page 18.)
 
                                       24
<PAGE>   28
 
     Where applicable, reference should be made to the terms of a particular
retirement plan and any applicable legislation for any limitations or
restrictions on the options that may be elected.
 
SETTLEMENT OPTIONS
 
     Proceeds settled under the Settlement Options listed below or otherwise
currently available will not participate in the investment experience of the
Variable Account.
 
     Settlement Option 1 -- Interest Income:  Interest on the proceeds at a rate
(not less than 2 3/4 percent per year) set by the Company each year.
 
     Settlement Option 2 -- Income for Specified Period:  Fixed monthly payments
for a specified period of time, as elected. The payments may, at the Company's
option, be increased by additional interest each year.
 
     Settlement Option 3 -- Single Life Income:  Payments for the life of the
payee and for a period certain. The period certain may be (a) 0 years, 10 years,
or 20 years, or (b) the period required for the total income payments to equal
the proceeds (refund period certain). The amount of the income will be
determined by the Company on the date the proceeds become payable.
 
     Settlement Option 3A -- Joint Life Income:  Payments during the joint
lifetime of the payee and one other person, and during the lifetime of the
survivor. The survivor's monthly income may be equal to either (a) the income
payable during the joint lifetime or (b) two-thirds of that income. If a person
for whom this option is chosen dies before the first monthly payment is made,
the survivor will receive proceeds instead under Settlement Option 3, with 10
years certain.
 
     Settlement Option 4 -- Income of Specified Amount:  Income, of an amount
chosen, for as long as the proceeds and interest last. The amount chosen to be
received as income in each year may not be less than 10 percent of the proceeds
settled. Interest will be credited annually on the amount remaining unpaid at a
rate determined annually by the Company. This rate will not be less than 2 3/4
percent per year.
 
     The Contract contains annuity payment rates for Settlement Options 3 and 3A
described in this Prospectus. The rates show, for each $1,000 applied, the
dollar amount of the monthly fixed annuity payment, when this payment is based
on minimum guaranteed interest as described above.
 
     The annuity payment rates may vary according to the Settlement Option
elected and the age of the payee. The mortality table used in determining the
annuity payment rates for Options 3 and 3A is the 1983 Table a (discrete
functions, without projections for future mortality), with 3 1/2 percent
interest.
 
     Under Settlement Option 3, if income based on the period certain elected is
the same as the income provided by another available period or periods certain,
the Company will deem the election to have been made of the longest period
certain.
 
     In Qualified Plans, settlement options available to Contractholders may be
restricted by the terms of the plans.
 
FREQUENCY OF ANNUITY PAYMENTS
 
     Annuity payments will be paid as monthly installments unless the payee
requests quarterly, semiannual, or annual installments at the time the option is
chosen. However, if the net amount available to apply under any Settlement
Option under any circumstances is less than $1,000, the Company shall have the
right to pay such amount in one lump sum. In addition, if the payments provided
for would be less than $25, the Company shall have the right to change the
frequency of payments to such intervals as will result in payments of at least
$25.
 
ADDITIONAL PROVISIONS
 
     The Company may require proof of age of the Annuitant before making any
life annuity payment provided for by the Contract. If the age of the Annuitant
has been misstated, the amount payable will be the amount that the amount
settled would have provided at the correct age. Once life income payments have
 
                                       25
<PAGE>   29
 
begun, any underpayments will be made up in one sum with the next annuity
payment; overpayments will be deducted from the future annuity payments until
the total is repaid.
 
     The Contract must be returned to the Company upon any settlement. Prior to
any settlement of a death claim, due proof of the Annuitant's death must be
submitted to the Company.
 
     Where any benefits under the Contract are contingent upon the recipient's
being alive on a given date, the Company may require proof satisfactory to it
that such condition has been met.
 
     The Contracts described in this Prospectus contain annuity payment rates
that distinguish between men and women. On July 6, 1983, the Supreme Court held
in Arizona Governing Committee v. Norris that optional annuity benefits provided
under an employer's deferred compensation plan could not, under Title VII of the
Civil Rights Act of 1964, vary between men and women on the basis of sex.
Because of this decision, the annuity payment rates applicable to Contracts
purchased under an employment-related insurance or benefit program may in some
cases not vary on the basis of the Annuitant's sex. Unisex rates to be provided
by the Company will apply for Qualified Plans and those plans where an employer
believes that the Norris decision applies.
 
     Employers and employee organizations should consider, in consultation with
legal counsel, the impact of Norris, and Title VII generally, and any comparable
state laws that may be applicable, on any employment-related plan for which a
Contract may be purchased.
 
                                OTHER PROVISIONS
 
OWNERSHIP
 
     The Contractholder has all rights and may receive all benefits under the
Contract. During the lifetime of the Annuitant (and the Contingent Annuitant if
one has been named), the Contractholder shall be the person so designated in the
application, unless changed, or unless a Successor Contractholder becomes the
Contractholder. On and after the death of the Annuitant (and the Contingent
Annuitant, if applicable), the Beneficiary shall be the Contractholder.
 
     The Contractholder may name a Successor Contractholder or a new
Contractholder at any time. If the Contractholder dies, the Successor
Contractholder, if living, becomes the Contractholder. Any request for change
must be: (1) made in writing; and (2) received at the Company. The change will
become effective as of the date the written request is signed. A new choice of
Contractholder or Successor Contractholder will not apply to any payment made or
action taken by the Company prior to the time a request for change is received.
Contractholders should consult a competent tax advisor prior to changing
Contractholders.
 
PROVISION REQUIRED BY SECTION 72(S) OF THE CODE
 
     If the Contractholder of a Non-Qualified Plan dies before the Annuity
Commencement Date and while the Annuitant is living, and if that
Contractholder's spouse is not the Successor Contractholder as of the date of
that Contractholder's death (as evidenced by proof satisfactory to the Company),
then the Contract will be surrendered as of the date of that death. If the
Successor Contractholder is the Beneficiary, the surrender proceeds may, at the
option of the Successor Contractholder, be paid over the life of the Successor
Contractholder. Such payments must begin no later than one year after such date
of death. If the Successor Contractholder is a surviving spouse, then the
surviving spouse will be treated as the new Contractholder of the Contract.
Under such circumstances, it shall not be necessary to surrender the Contract.
If the spouse is not the Successor Contractholder and there is no designated
beneficiary, the proceeds must be distributed within 5 years after the date of
death. However, under the terms of the Contract, if the spouse is not the
Successor Contractholder, the Contract will be surrendered as of the date of
death and the proceeds will be paid to the Beneficiary. This provision shall not
extend the term of the Contract beyond the date when death proceeds become
payable.
 
                                       26
<PAGE>   30
 
     Further, if the Contractholder dies on or after the Annuity Commencement
Date, then any remaining portion of the proceeds will be distributed at least as
rapidly as under the method of distribution being used as of the date of the
Contractholder's death.
 
PROVISION REQUIRED BY SECTION 401(A)(9) OF THE CODE
 
     The entire interest of a Qualified Plan Participant under the contract will
be distributed to the Contractholder or his/her Designated Beneficiary either by
or beginning not later than April 1 of the calendar year following the calendar
year in which such Participant attains age 70 1/2. The period over which such
distribution will be made is the life of such Participant or the lives of such
Participant and Designated Beneficiary.
 
     Where distributions have begun in accordance with the previous paragraph
and the Participant dies before Contractholder's entire interest has been
distributed to him/her, the remaining portion of such interest will be
distributed at least as rapidly as under the method of distribution being used
as of the date of the Participant's death. If the Participant dies before the
commencement of such distributions and there is no Designated Beneficiary, the
Contract will be surrendered as of the date of death. The surrender proceeds
must be distributed within 5 years after the date of death. But if there is a
Designated Beneficiary, the surrender proceeds may, at the option of the
Designated Beneficiary, be paid over the life of the Designated Beneficiary. In
such case, distributions will begin not later than one year after the
Participant's death. If the Designated Beneficiary is the surviving spouse of
the Participant, the date on which the distributions will begin shall not be
earlier than the date on which the Participant would have attained age 70 1/2.
If the surviving spouse dies before distributions to him/her begin, the
provisions of this paragraph shall be applied as if the surviving spouse were
the Participant. If the Plan is an IRA under Section 408 of the Code, the
surviving spouse may elect to forego distribution and treat the IRA as his/her
own Plan.
 
     Qualified Plan Contracts include those qualifying for special treatment
under Sections 401, 403, and 408 of the Code.
 
     It is the Contractholder's responsibility to assure that distribution rules
imposed by the Code will be met.
 
CONTINGENT ANNUITANT
 
     Except where the Contract is issued in connection with a Qualified Plan, a
Contingent Annuitant may be designated by the Contractholder. Such designation
may be made once before annuitization, either (1) in the application for the
Contract, or (2) after the Contract is issued, by written notice to the Company
at its Operations Center. The Contingent Annuitant may be deleted by written
notice to the Company at its Operations Center. A designation or deletion of a
Contingent Annuitant will take effect as of the date the written election was
signed. The Company, however, must first accept and record the change at its
Operations Center. The change will be subject to any payment made by the Company
or action taken by the Company before receipt of the notice at the Company's
Operations Center. The Contingent Annuitant will be deleted from the Contract
automatically by the Company as of the Contract Anniversary nearest the
Contingent Annuitant's 90th (85th for Contracts issued before October 24, 1997)
birthday.
 
     On the death of the Annuitant, the Contingent Annuitant will become the
Annuitant, under the following conditions:
 
          (1) the death of the Annuitant must have occurred before the Annuity
     Commencement Date;
 
          (2) the Contingent Annuitant is living on the date of the Annuitant's
     death;
 
          (3) if the Annuitant was the Contractholder on the date of death, the
     Successor Contractholder must have been the Annuitant's spouse; and
 
          (4) if the Annuity Commencement Date is later than the Contract
     Anniversary nearest the Contingent Annuitant's 90th (85th for Contracts
     issued before October 24, 1997) birthday, the Annuity Commencement Date
     will be automatically advanced to that Contract Anniversary.
 
                                       27
<PAGE>   31
 
EFFECT OF CONTINGENT ANNUITANT'S BECOMING THE ANNUITANT
 
     If the Contingent Annuitant becomes the Annuitant at the death of the
Annuitant, in accordance with the conditions specified above, the Death Benefit
proceeds of the Contract will be paid to the Beneficiary only on the death of
the Contingent Annuitant. If the Contingent Annuitant was the Beneficiary on the
Annuitant's death, the Beneficiary will be changed automatically to the person
who was the Successor Beneficiary on the date of death. If there was no
Successor Beneficiary, then the Contingent Annuitant's executors or
administrators, unless the Contractholder directed otherwise, will become the
Beneficiary. All other rights and benefits under the Contract will continue in
effect during the lifetime of the Contingent Annuitant as if the Contingent
Annuitant were the Annuitant.
 
ASSIGNMENT
 
     The Company will not be bound by any assignment until the assignment (or a
copy) is received by the Company at its Home Office. The Company is not
responsible for assessing the validity or effect of any assignment. The Company
shall not be liable as to any payment or other settlement made by the Company
before receipt of the assignment.
 
     If the Contract is issued pursuant to certain retirement plans, then it may
not be assigned, pledged or otherwise transferred except under such conditions
as may be allowed under applicable law.
 
     Because an assignment may be a taxable event, a Contractholder should
consult a competent tax advisor before assigning the Contract.
 
CHANGE OF BENEFICIARY
 
     So long as the Contract is in force, the Beneficiary or Successor
Beneficiary may be changed by written request to the Company at its Operations
Center in a form acceptable to the Company. The Contract need not be returned
unless requested by the Company. The change will take effect as of the date the
request is signed, whether or not the Annuitant is living when the request is
received by the Company. The Company will not, however, be liable for any
payment made or action taken before receipt and acknowledgement of the request
at its Operations Center.
 
SUBSTITUTION OF SECURITIES
 
     If the shares of any Portfolio of the Funds should no longer be available
for investment by the Variable Account or, if in the judgment of the Company's
Board of Trustees, further investment in shares of one or more of the Portfolios
of the Funds should become inappropriate in view of the purposes of the
Contract, the Company may substitute shares of another mutual fund for shares of
the Funds already purchased or to be purchased in the future by Purchase
Payments under the Contract. A substitution of securities in any Subaccount will
take place only with prior approval of the Securities and Exchange Commission
and under such requirements as it may impose.
 
MODIFICATION OF THE CONTRACTS
 
     Upon notice to the Contractholder, the Contract may be modified by the
Company, but only if such modification (1) is necessary to make the Contract or
the Variable Account comply with any law or regulation issued by a governmental
agency to which the Company is subject or (2) is necessary to assure continued
qualification of the Contract under the Internal Revenue Code or other federal
or state laws relating to retirement annuities or annuity contracts or (3) is
necessary to reflect a change in the operation of the Variable Account or the
Subaccounts or the Guaranteed Interest Account or (4) provides additional
Settlement Options or fixed accumulation options. In the event of any
modification, the Company may make appropriate endorsement in the Contract to
reflect such modification.
 
                                       28
<PAGE>   32
 
CHANGE IN OPERATION OF VARIABLE ACCOUNTS
 
     At the Company's election and subject to any necessary vote by persons
having the right to give instructions with respect to the voting of shares of
the Funds held by the Subaccounts, the Variable Account may be operated as a
management company under the Investment Company Act of 1940 or it may be
deregistered under the Investment Company Act of 1940 in the event registration
is no longer required. Deregistration of the Variable Account requires an order
by the Securities and Exchange Commission. In the event of any change in the
operation of the Variable Account pursuant to this provision, the Company may
make appropriate endorsement to the Contract to reflect the change and take such
other action as may be necessary and appropriate to effect the change.
 
                                 VOTING RIGHTS
 
     All of the assets held in the Subaccounts of the Variable Account will be
invested in shares of the corresponding Portfolios of the Funds. The Company is
the legal holder of those shares and as such has the right to vote to elect the
Board of Directors of MONY Series Fund and the Board of Trustees of the
Accumulation Trust, to vote upon certain matters that are required by the 1940
Act to be approved or ratified by the shareholders of a mutual fund, and to vote
upon any other matter that may be voted upon at a shareholder's meeting. To the
extent required by law, the Company will vote the shares of each of the Funds
held in the Variable Account (whether or not attributable to Contractholders) at
shareholder meetings of each of the Funds in accordance with the instructions
received from Contractholders. The number of votes will be determined as of the
record date selected by the Board of Directors or Board of Trustees of the
respective Fund. The Company will furnish Contractholders with the proper forms
to enable them to give it these instructions. Currently, the Company may
disregard voting instructions under the circumstances described in the following
paragraph.
 
     The Company may, if required by state insurance officials, disregard voting
instructions if those instructions would require shares to be voted to cause a
change in the subclassification or investment objectives or policies of one or
more of the Portfolios of either or both of the Funds, or to approve or
disapprove an investment adviser or principal underwriter for either or both of
the Funds. In addition, the Company itself may disregard voting instructions
that would require changes in the investment objectives or policies of any
Portfolio or in an investment adviser or principal underwriter for either or
both of the Funds, if the Company reasonably disapproves those changes in
accordance with applicable federal regulations. If the Company does disregard
voting instructions, it will advise Contractholders of that action and its
reasons for the action in the next semiannual report to Contractholders.
 
     Each Contractholder will have the equivalent of one vote per $100 of value
attributable to the Contract held in each Subaccount of the Variable Account,
with fractional votes for amounts less than $100. For voting purposes, this
value attributable to the Contract is equal to the Cash Value. These votes,
represented as votes per $100 of value in each Subaccount of the Variable
Account, are converted into a proportionate number of votes in shares of the
corresponding Portfolio of each of the Funds. Shares of each of the Funds held
in each Subaccount for which no timely instructions from Contractholders are
received will be voted by the Company in the same proportion as those shares in
that Subaccount for which instructions are received. Should applicable federal
securities laws or regulations permit, the Company may elect to vote shares of
each of the Funds in its own right.
 
     The number of shares of the corresponding Portfolio of one of the Funds in
a Subaccount for which instructions may be given by a Contractholder is
determined by dividing the portion of the value attributable to the Contract
held in that Subaccount by the net asset value of one share in the corresponding
Portfolio of the respective Fund. In other words, if the value attributable to
the Contract held in the Subaccount were $540 and the net asset value of the
respective Fund's shares of the Portfolio held in that Subaccount were $20 per
share on the record date, then the Contractholder could issue instructions on
5.4 votes (representing votes per $100 of value attributable to the Contract
held in the Subaccount), which would be converted into instructions on 27 shares
of the respective Fund.
 
                                       29
<PAGE>   33
 
     Matters on which Contractholders may give voting instructions include the
following: (1) approval of any change in the Investment Advisory Agreement and
Services Agreement for the Portfolio(s) of the Fund corresponding to the
Contractholder's selected Subaccount(s); (2) any change in the fundamental
investment policies of the Portfolio(s) corresponding to the Contractholder's
selected Subaccount(s); and (3) any other matter requiring a vote of the
shareholders of either of the Funds. With respect to approval of the Investment
Advisory Agreement or any change in a Portfolio's fundamental investment
policies, Contractholders participating in that Portfolio will vote separately
on the matter pursuant to the requirements of Rule 18f-2 under the 1940 Act.
 
                         DISTRIBUTION OF THE CONTRACTS
 
     MONY Securities Corp. ("MSC"), a New York corporation which is a
wholly-owned subsidiary of the Company, will act as the principal underwriter of
the Contracts, pursuant to an underwriting agreement with the Company. MSC is
registered as a broker-dealer under the Securities Exchange Act of 1934 and is a
member of the National Association of Securities Dealers. The Contracts are sold
by individuals who are registered representatives of MSC and who are also
licensed as life insurance agents for the Company. The Contracts may also be
sold through other broker-dealers authorized by MSC and applicable law to do so.
Commissions and other expenses directly related to the sale of the Contract will
not exceed 6.0 percent of Purchase Payments. Additional compensation may be paid
for other services not directly related to the sale of the Contract. Such
services include the training of personnel and the production of promotional
literature.
 
                               FEDERAL TAX STATUS
 
INTRODUCTION
 
     The Contracts described in this Prospectus are designed for use by
retirement plans that may or may not qualify for favorable tax treatment under
the provisions of Section 401, 403 (other than 403(b)), 408(b), and 457 of the
Code. The ultimate effect of federal income taxes on the value of the Contract's
Cash Value, on annuity payments, and on the economic benefit to the
Contractholder, the Annuitant, and the Beneficiary may depend upon the type of
retirement plan for which the Contract is purchased and upon the tax and
employment status of the individual concerned.
 
     The following discussion of the treatment of the Contracts and of the
Company under the federal income tax laws is general in nature, is based upon
the Company's understanding of current federal income tax laws, and is not
intended as tax advice. Any person contemplating the purchase of a Contract
should consult a qualified tax adviser. A more detailed description of the
treatment of the Contract under federal income tax laws is contained in the
Statement of Additional Information. THE COMPANY DOES NOT MAKE ANY GUARANTEE
REGARDING ANY TAX STATUS, FEDERAL, STATE, OR LOCAL, OF ANY CONTRACT OR ANY
TRANSACTION INVOLVING THE CONTRACTS.
 
TAX TREATMENT OF THE COMPANY
 
     Under existing federal income tax laws, the income of the Variable
Accounts, to the extent that it is applied to increase reserves under the
Contracts, is substantially nontaxable to the Company.
 
TAXATION OF ANNUITIES IN GENERAL
 
     The Contracts offered by this Prospectus are designed for use in connection
with Qualified Plans and Non-Qualified Plans. All or a portion of the
contributions to such plans will be used to make Purchase Payments under the
Contracts. In general, contributions to Qualified Plans and income earned on
contributions to all plans are tax-deferred until distributed to plan
participants or their beneficiaries. Such tax deferral is not, however,
available for Non-Qualified Plans if the Contractholder is other than a natural
person unless the Contract is held as an agent for a natural person. Annuity
payments made as retirement distributions under a Contract, except to the extent
of employee (in the case of Qualified Plans) or Contractholder (in the
 
                                       30
<PAGE>   34
 
case of Non-Qualified Plans) contributions, are generally taxable to the
annuitant as ordinary income. Contractholders, Annuitants, and Beneficiaries
should seek qualified advice about the tax consequences of distributions,
withdrawals, and payments under the retirement plans in connection with which
the Contracts are purchased.
 
     The Company will withhold and remit to the United States Government and,
where applicable, to state governments part of the taxable portion of each
distribution made under a Contract unless the Contractholder or Annuitant
provides his or her taxpayer identification number to the Company and notifies
the Company that he or she chooses not to have amounts withheld.
 
     Under the Technical and Miscellaneous Revenue Act of 1988 ("TAMRA"), for
purposes of determining the amount includible in gross income with respect to
distributions not received as an annuity, including deemed distributions
resulting from gratuitous transfers, all annuity contracts issued by the same
company to the same Contractholder during any 12 month period, other than those
issued to qualified retirement plans, will be treated as one annuity contract.
The IRS is given power to prescribe rules to prevent avoidance of this rule
through special purchases of contracts or otherwise. None of these rules is
expected to affect taxbenefitted plans.
 
     Effective January 1, 1993, distributions of plan benefits from qualified
retirement plans, other than individual retirement arrangements ("IRAs"),
generally will be subject to mandatory federal income tax withholding unless
they either are:
 
          1. Part of a series of substantially equal periodic payments (at least
     annually) for the participant's life or life expectancy, the joint lives or
     life expectancies of the participant and his/her beneficiary, or a period
     certain of not less than 10 years; or
 
          2. Required by the Code upon the participant's attainment of age
    70 1/2 or death.
 
     Such withholding will apply even if the distribution is rolled over into
another qualified plan, including an IRA. The withholding can be avoided if the
participant's interest is directly transferred by the old plan to another
eligible qualified plan, including an IRA. A direct transfer to the new plan can
be made only in accordance with the terms of the old plan. If withholding is not
avoided, the amount withheld may be subject to income tax and excise tax
penalties.
 
     Under the generation skipping transfer tax, the Company may be liable for
payment of this tax under certain circumstances. In the event that the Company
determines that such liability exists, an amount necessary to pay the generation
skipping transfer tax may be subtracted from the death benefit proceeds.
 
ANNUITY CONTRACTS GOVERNED BY SECTION 403(B) OF THE CODE
 
     An annuity contract will not be treated as a Qualified Contract under
Section 403(b) of the Code unless distributions which are attributable to a
contribution made pursuant to a salary reduction agreement may be paid only: (1)
when the Contractholder attains age 59 1/2; (2) when the Contractholder
separates from the service of his employer; (3) when the Contractholder dies;
(4) when the Contractholder becomes permanently disabled within the meaning of
Section 72(m) of the Code; or (5) in the case of hardship. These restrictions
generally apply to contributions made after December 31, 1988 and to any
increase in Cash Value of the Contract after December 31, 1988. Therefore
effective January 1, 1989 and thereafter, any contributions made, or increase in
Cash Value, on or after January 1, 1989 will be restricted from withdrawal
except upon attainment of age 59 1/2, separation from service, death, disability
or hardship (hardship withdrawals are to be limited to the amount of the
Contractholder's Purchase Payments). However, any Purchase Payments that reflect
employer contributions and the earnings thereon will not be restricted unless
specifically provided for by the applicable employer's plan.
 
     Effective January 1, 1989, the Contracts offered by this Prospectus have
been withdrawn from sale in connection with Qualified Plans which intend to
qualify for federal income tax advantages available under Section 403(b) of the
Code.
 
                                       31
<PAGE>   35
 
RETIREMENT PLANS
 
     The Contracts described in this Prospectus are designed for use with the
following types of retirement plans:
 
          (1) Pension and Profit-Sharing Plans established by business employers
     and certain associations, as permitted by Sections 401(a) and 401(k) of the
     Code, including those purchasers who would have been covered under the
     rules governing H.R. 10 (Keogh) Plans;
 
          (2) Individual Retirement Annuities permitted by Sections 219 and
     408(b) of the Code, including Simplified Employee Pensions established by
     employers pursuant to Section 408(k);
 
          (3) Tax-Sheltered Annuity Plans established by certain educational and
     tax-exempt organizations under Section 403(b) of the Code (effective
     January 1, 1989, the Contracts offered by this Prospectus have been
     withdrawn from sale in all states in connection with Qualified Plans which
     intend to qualify for federal income tax advantages available under Section
     403(b) of the Code);
 
          (4) Deferred compensation plans provided by certain governmental
     entities under Section 457 of the Code; and
 
          (5) Non-Qualified Plans.
 
     The tax rules applicable to participants in such retirement plans vary
according to the type of plan and its terms and conditions. Therefore, no
attempt is made herein to provide more than general information about the use of
Contracts with the various types of retirement plans. Participants in such plans
as well as Contractholders, Annuitants, and Beneficiaries are cautioned that the
rights of any person to any benefits under these plans are subject to the terms
and conditions of the plans themselves, regardless of the terms and conditions
of the Contracts. The Company will provide purchasers of Contracts used in
connection with Individual Retirement Annuities with such supplementary
information as may be required by the Internal Revenue Service or other
appropriate agency. Any person contemplating the purchase of a Contract should
consult a qualified tax adviser.
 
                                PERFORMANCE DATA
 
     From time to time the performance of one or more of the Subaccounts may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Subaccount reflects the results of the corresponding Portfolio of the Fund
and recurring charges and deductions borne by or imposed on the Portfolio and
the Subaccount. Set forth below for each Subaccount is the manner in which the
data contained in such advertisements will be calculated.
 
     Money Market Subaccount.  The performance data for this Subaccount will
reflect the "yield" and "effective yield". The "yield" of the Subaccount refers
to the income generated by an investment in the Subaccount over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Subaccount is assumed to be
reinvested. The "effective yield" will be slightly higher than the "yield"
because of the compounding effect of this assumed reinvestment.
 
     Subaccounts other than the Money Market Subaccount.  The performance data
for these Subaccounts will reflect the "yield" and "total return". The "yield"
of each of these Subaccounts refers to the income generated by an investment in
that Subaccount over the 30 day period stated in the advertisement and is the
result of dividing that income by the value of the Subaccount. The value of each
Subaccount is the average daily number of Units outstanding multiplied by the
Unit Value on the last day of the period. The "yield" reflects deductions for
all charges, expenses, and fees of both the Funds and the Variable Account other
than the Surrender Charge. "Total return" for each of these Subaccounts refers
to the return a Contractholder
 
                                       32
<PAGE>   36
 
would receive during the period indicated if a $1,000 Purchase Payment was made
the indicated number of years ago. It reflects historical investment results
less charges and deductions of both the Funds and the Variable Account,
including any Surrender Charge imposed as a result of the full Surrender, with
the distribution being made in cash rather than in the form of one of the
settlement options, at the close of the period for which the "total return" data
is given.
 
     Returns for periods exceeding one year reflect the average annual total
return for such period. Total return data may also be shown assuming that the
Contract continues in force (i.e., was not surrendered) beyond the close of the
periods indicated in which case that data would reflect all charges and
deductions of both the Funds and the Variable Account other than the Surrender
Charge. In addition to the total return data described above based upon a $1,000
investment, comparable data may also be shown for an investment equal to the
amount of the average purchase payment made by a purchase of a Contract during
the prior year.
 
     Non-Standardized Performance Data.  From time to time, average annual total
return or other performance data may also be advertised in non-standardized
formats. Non-standard performance data will be accompanied by standard
performance data, and the period covered or other non-standard features will be
disclosed.
 
     In addition, reference in advertisements may be made to various indices,
including without limitation, the Standard & Poor's Indices and the Lehman
Brothers, Shearson, CDA/Wiesenberger, Russell, Merrill Lynch, and Wilshire
indices, and to various ranking services, including, without limitation, the
Lipper Annuity and Closed End Survey compiled by Lipper Analytical Services and
the VARDS report compiled by Variable Annuity Research and Data Service in order
to provide the reader a basis for comparison.
 
                             ADDITIONAL INFORMATION
 
     This prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
 
     For further information with respect to the Company and the Contracts
offered by this prospectus, including the Statement of Additional Information
(which includes financial statements relating to the Company), Contractholders
and prospective investors may also contact the Company at its address or phone
number set forth on the cover of this Prospectus for requesting such statement.
The Statement of Additional Information is available from the Company without
charge.
 
                               LEGAL PROCEEDINGS
 
     There are no legal proceedings to which the Variable Account or the
principal underwriter is a party. The Company is engaged in various kinds of
routine litigation which, in the opinion of the Company, are not of material
importance in relation to the total capital and surplus of the Company.
 
                              FINANCIAL STATEMENTS
 
     The financial statements for the Company, included in the Statement of
Additional Information should be considered only as bearing on the ability of
the Company to meet its obligations under the Contracts. The financial
statements of the Company should not be considered as bearing on the investment
performance of the assets held in the Variable Account. The financial statements
of the Company and the Variable Account are included in the Statement of
Additional Information.
 
                                       33
<PAGE>   37
 
                               TABLE OF CONTENTS
 
                                       OF
 
                      STATEMENT OF ADDITIONAL INFORMATION
 
                                  MAY 1, 1998
 
<TABLE>
<CAPTION>
                            ITEM                              PAGE
                            ----                              ----
<S>                                                           <C>
The Mutual Life Insurance Company of New York...............     1
Legal Opinion...............................................     1
Independent Accountants.....................................     1
Federal Tax Status..........................................     2
Performance Data............................................     5
Financial Statements........................................   F-1
</TABLE>
 
     If you would like to receive a copy of the MONY Variable Account A
Statement of Additional Information, please return this request to:
 
     The Mutual Life Insurance Company of New York
     Mail Drop 8-27
     1740 Broadway
     New York, New York 10019
 
Your name
- --------------------------------------------------------------------------------
 
Address
- --------------------------------------------------------------------------------
 
City
- ---------------------------------------------------------------
                                                 State
        ------------------------------------------------------------------------
                                                                 Zip
        ------------------------------------------------------------------------
 
     Please send me a copy of the MONY Variable Account A Statement of
Additional Information.
Policy C3-88
FORM NO. 13456SL (5/98)                                                #33-37722
 
                                       34
<PAGE>   38
 
                                   APPENDIX A
                        CALCULATION OF SURRENDER CHARGE
 
ILLUSTRATION 1
 
     Suppose an initial Purchase Payment of $15,000 is the only payment made,
and no taxes are deducted from this payment. At the beginning of the third
Contract Year, the Cash Value of the Contract has grown to $18,000 and the
Contractholder requests a partial surrender of $2,000.
 
     The Surrender Charge is determined as follows:
 
     Step 1:  Purchase Payments are allocated to the surrender amount, as
follows:
 
<TABLE>
<CAPTION>
ANNIVERSARIES SINCE                           AMOUNT       AMOUNT AVAILABLE
 PURCHASE PAYMENT       CONTRACT YEAR       ALLOCATED      FOR ALLOCATION TO
  RECEIVED BY US       PAYMENT RECEIVED    TO SURRENDER    FUTURE SURRENDER
- -------------------    ----------------    ------------    -----------------
<S>                    <C>                 <C>             <C>
       0...........           3               $    0            $     0
       1...........           2                    0                  0
       2...........           1                2,000             13,000
</TABLE>
 
     If the Contract is a Non-Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as 10% of the
Cash Value ($1,800). Reduce the resulting amount allocated to surrender ($2,000)
by the Guaranteed Free Surrender Amount ($1,800), and apply the Surrender Charge
Percentages as follows:
 
<TABLE>
<CAPTION>
                                                                          AMOUNT OF
NUMBER OF CONTRACT                                                        SURRENDER
ANNIVERSARIES SINCE                           AMOUNT       SURRENDER       CHARGE
 PURCHASE PAYMENT       CONTRACT YEAR       ALLOCATED        CHARGE        (AMT X
  RECEIVED BY US       PAYMENT RECEIVED    TO SURRENDER    PERCENTAGE       PCT)
- -------------------    ----------------    ------------    ----------    -----------
<S>                    <C>                 <C>             <C>           <C>
       0...........           3                $  0            7%            $ 0
       1...........           2                   0            7               0
       2...........           1                 200            6              12
</TABLE>
 
     Step 3:  Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $12.
 
     The Surrender Charge, plus the amount of the surrender is then deducted
from the remaining Cash Value of the Non-Qualified Contract, for a total
withdrawal of $2,012.
 
     If the Contract is a Qualified Contract--
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($1,800) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 (although it
is greater than 10 percent), there is no Surrender Charge.
 
     Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
 
     Assuming that in the middle of the tenth Contract Year, a full surrender is
requested. The Cash Value at the time of full surrender is $28,000. Since this
is a full surrender, the Annual Contract Charge (currently $30) is deducted from
the Cash Value, leaving a remaining Cash Value balance of $27,970. For this
calculation, there is $13,000 of Purchase Payments made in the first Contract
Year.
 
                                       A-1
<PAGE>   39
 
     The Surrender Charge is determined as follows:
 
     Step 1:  Purchase Payments are allocated to the surrender amount, as
follows:
 
<TABLE>
<CAPTION>
                  NUMBER OF CONTRACT
                  ANNIVERSARIES SINCE                                             AMOUNT
                   PURCHASE PAYMENT                         CONTRACT YEAR       ALLOCATED
                    RECEIVED BY US                         PAYMENT RECEIVED    TO SURRENDER
- -------------------------------------------------------    ----------------    ------------
<S>                                                        <C>                 <C>
       0...............................................             10           $     0
       1...............................................              9                 0
       2...............................................              8                 0
       3...............................................              7                 0
       4...............................................              6                 0
       5...............................................              5                 0
       6...............................................              4                 0
       7...............................................              3                 0
       8 (or more).....................................        1 and 2            13,000
</TABLE>
 
     If the Contract is a Non-Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to 10% of
the Cash Value ($2,800) of the Non-Qualified Contract. Reduce the resulting
amount allocated to surrender ($13,000) by the Guaranteed Free Surrender Amount
($2,800), and apply the Surrender Charge Percentages as follows:
 
<TABLE>
<CAPTION>
                                                                                     AMOUNT OF
      NUMBER OF CONTRACT                                                             SURRENDER
     ANNIVERSARIES SINCE                                 AMOUNT       SURRENDER       CHARGE
       PURCHASE PAYMENT            CONTRACT YEAR       ALLOCATED        CHARGE        (AMT X
        RECEIVED BY US            PAYMENT RECEIVED    TO SURRENDER    PERCENTAGE       PCT)
- ------------------------------    ----------------    ------------    ----------    -----------
<S>                               <C>                 <C>             <C>           <C>
       0......................             10           $     0           7%            $0
       1......................              9                 0           7              0
       2......................              8                 0           6              0
       3......................              7                 0           6              0
       4......................              6                 0           5              0
       5......................              5                 0           4              0
       6......................              4                 0           3              0
       7......................              3                 0           2              0
       8 or more..............        1 and 2            10,200           0              0
</TABLE>
 
     Step 3:  Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
 
                                       A-2
<PAGE>   40
 
     If the Contract is a Qualified Contract
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($2,800) of the Qualified Contract or up to
$10,000. Reduce the resulting amount allocated to surrender ($13,000) by the
Guaranteed Free Surrender Amount ($10,000), and apply the Surrender Charge
Percentages as follows:
 
<TABLE>
<CAPTION>
      NUMBER OF CONTRACT                                                             AMOUNT OF
     ANNIVERSARIES SINCE                                 AMOUNT       SURRENDER      SURRENDER
       PURCHASE PAYMENT            CONTRACT YEAR       ALLOCATED        CHARGE         CHARGE
        RECEIVED BY US            PAYMENT RECEIVED    TO SURRENDER    PERCENTAGE    (AMT X PCT)
     -------------------          ----------------    ------------    ----------    ------------
<S>                               <C>                 <C>             <C>           <C>
       0......................             10            $    0           7%             $0
       1......................              9                 0           7               0
       2......................              8                 0           6               0
       3......................              7                 0           6               0
       4......................              6                 0           5               0
       5......................              5                 0           4               0
       6......................              4                 0           3               0
       7......................              3                 0           2               0
       8 or more..............        1 and 2             3,000           0               0
</TABLE>
 
     Step 3:  Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
 
     Since there are no Purchase Payments such that 7 or less policy
anniversaries had passed since they were received, no part of the surrender
proceeds are subject to a Surrender Charge. Hence, no Surrender Charge is
assessed on this full surrender.
 
ILLUSTRATION 2
 
     Suppose Purchase Payments of $2,000 are made at the beginning of every
Contract Year. No taxes are deducted from these Payments. In the middle of the
third Contract Year, a partial surrender of $500 is requested. Suppose the Cash
Value has grown to $7,000 at the time of the partial surrender request.
 
     The Surrender Charge is determined as follows:
 
     Step 1:  Purchase Payments are allocated to the surrender amount, as
follows:
 
<TABLE>
<CAPTION>
           NUMBER OF CONTRACT
          ANNIVERSARIES SINCE                                    AMOUNT       AMOUNT AVAILABLE
            PURCHASE PAYMENT               CONTRACT YEAR       ALLOCATED      FOR ALLOCATION TO
             RECEIVED BY US               PAYMENT RECEIVED    TO SURRENDER    FUTURE SURRENDERS
          -------------------             ----------------    ------------    -----------------
<S>                                       <C>                 <C>             <C>
       0................................         3                $  0             $2,000
       1................................         2                   0              2,000
       2................................         1                 500              1,500
</TABLE>
 
     If the Contract is a Non-Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to 10% of
the Cash Value ($700) of the Non-Qualified Contract. Reduce the resulting amount
allocated to surrender ($500) by the Guaranteed Free Surrender Amount ($700),
and apply the Surrender Charge Percentages as follows:
 
<TABLE>
<CAPTION>
       NUMBER OF CONTRACT                                                            AMOUNT OF
      ANNIVERSARIES SINCE                                AMOUNT       SURRENDER      SURRENDER
        PURCHASE PAYMENT           CONTRACT YEAR       ALLOCATED        CHARGE        CHARGE
         RECEIVED BY US           PAYMENT RECEIVED    TO SURRENDER    PERCENTAGE    (AMT X PCT)
      -------------------         ----------------    ------------    ----------    -----------
<S>                               <C>                 <C>             <C>           <C>
       0........................         3                 $0             7%            $0
       1........................         2                  0             7              0
       2........................         1                  0             6              0
</TABLE>
 
                                       A-3
<PAGE>   41
 
     Step 3:  Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $0.
 
     The partial surrender will be allocated to $500 of payments made in the
first Contract Year. But since 10 percent of the Cash Value ($700) of the
Non-Qualified Contract could be surrendered under the Guaranteed Free Surrender
Amount Provision, the partial surrender of $500 could be withdrawn without a
surrender charge.
 
     If the Contract is a Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($700) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 and less
than 10% there is no surrender charge.
 
     Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
 
     Assume that Purchase Payments of $2,000 have continually been made at the
beginning of each Contract Year, and that in the middle of the tenth Contract
Year, a partial surrender of $7,500 is requested. The Cash Value is $32,600 at
the time of the partial surrender request.
 
     The Surrender Charge is determined as follows:
 
     Step 1:  Purchase Payments are allocated to the surrender amount, as
follows:
 
<TABLE>
<CAPTION>
           NUMBER OF CONTRACT
          ANNIVERSARIES SINCE                                    AMOUNT       AMOUNT AVAILABLE
            PURCHASE PAYMENT               CONTRACT YEAR       ALLOCATED      FOR ALLOCATION TO
             RECEIVED BY US               PAYMENT RECEIVED    TO SURRENDER    FUTURE SURRENDERS
          -------------------             ----------------    ------------    -----------------
<S>                                       <C>                 <C>             <C>
       0................................           10            $    0            $2,000
       1................................            9                 0             2,000
       2................................            8                 0             2,000
       3................................            7                 0             2,000
       4................................            6                 0             2,000
       5................................            5                 0             2,000
       6................................            4             2,000                 0
       7................................            3             2,000                 0
       8 or more........................      1 and 2             3,500                 0
</TABLE>
 
     If the Contract is a Non-Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as 10% of the
Cash Value ($3,260) of the Non-Qualified Contract. Reduce the resulting amount
allocated to surrender ($3,500) in Contract Years 1 and 2 by the Guaranteed Free
Surrender Amount ($3,260), and apply the Surrender Charge Percentages as
follows:
 
<TABLE>
<CAPTION>
       NUMBER OF CONTRACT                                                            AMOUNT OF
      ANNIVERSARIES SINCE                                AMOUNT       SURRENDER      SURRENDER
        PURCHASE PAYMENT           CONTRACT YEAR       ALLOCATED        CHARGE        CHARGE
         RECEIVED BY US           PAYMENT RECEIVED    TO SURRENDER    PERCENTAGE    (AMT X PCT)
      -------------------         ----------------    ------------    ----------    -----------
<S>                               <C>                 <C>             <C>           <C>
       6........................            4            $2,000           3%            $60
       7........................            3             2,000           2              40
       8 or more................      1 and 2               240           0               0
</TABLE>
 
     Step 3:  Summing the resulting Amounts of Surrender Charge produces a total
Surrender Charge of $100.
 
     The Surrender Charge, plus the amount of the surrender is then deducted
from the remaining Cash Value of the Non-Qualified Contract, for a total
withdrawal of $7,600.
 
                                       A-4
<PAGE>   42
 
     If the Contract is a Qualified Contract --
 
     Step 2:  The Guaranteed Free Surrender Amount is calculated as up to the
greater of 10% of the Cash Value ($3,260) of the Qualified Contract or up to
$10,000. Since the partial surrender requested is less than $10,000 (although it
is greater than 10 percent), there is no surrender charge.
 
     Since there is no Surrender Charge, the entire amount requested is
available under the Guaranteed Free Surrender Amount provision of the Qualified
Contract.
 
     Assuming that in the middle of the twelfth Contract Year, a full surrender
with the full proceeds being settled under Settlement Option 3, Single Life
Income for 10 years certain and during the balance of the annuitant's lifetime,
payments of $2,000 have continuously been made at the beginning of each contract
year. The Cash Value at the time of the full surrender is $26,000. Since this
example assumes a full surrender is being made, the Annual Contract Charge
(currently $30) is deducted from the Cash Value, leaving a remaining Cash Value
of $25,970.
 
     Since the full proceeds are being applied to Settlement Option 3, the
Surrender Charge is $0. The entire remaining Cash Value of $25,970 is applied to
the settlement option.
 
                                       A-5
<PAGE>   43
 
                      [THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>   44
 
<TABLE>
<S>                                                          <C>
The Mutual Life Insurance Company of New York                     Bulk Rate
Administrative Offices                                          U.S. Postage
1740 Broadway, New York, NY 10019                                  P A I D
                                                               Permit No. 8048
                                                                  New York,
                                                                  New York
</TABLE>
 
                                                                            LOGO
Form No. 13455 SL (5/98)
- --------------------------------------------------------------------------------


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