SUPPLEMENT DATED FEBRUARY 12, 1998 TO
PROSPECTUS DATED MAY 1, 1997 FOR
INDIVIDUAL VARIABLE ANNUITY CONTRACT
ISSUED BY
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
AND
PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY
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This supplement updates certain information contained in the prospectus
and, to the extent inconsistent, it supersedes it. You should attach this
supplement to the prospectus and retain it with the prospectus for future
reference. You may obtain an additional copy of the prospectus, free of charge,
by writing or calling Phoenix Home Life Mutual Insurance Company ("Phoenix") at
the address or telephone number set out below.
The purpose of this supplement is to notify you of a proposal to
substitute shares of the Phoenix Money Market Series ("Phoenix Fund") for shares
of the Templeton Money Market Series ("Templeton") ("Substitution").
On February 12, 1998, Phoenix filed an application with the Securities
and Exchange Commission ("Commission") requesting an order approving the
Substitution. Upon obtaining the order from the Commission approving the
Substitution, and subject to any prior approval by applicable insurance
authorities, Phoenix and the Variable Accumulation Account propose to effect the
Substitution as soon as practicable.
Phoenix proposed the Substitution to provide a transfer of the assets
of the Fund that currently and in the future may be expected to be of
insufficient size to promote consistent investment performance or to reduce
operating expenses.
An Owner, prior to the date of the Substitution, may transfer their
Money Market Sub-Account value to any other sub-account of the Variable
Accumulation Account. Moreover, following the Substitution for a period of 30
days, Phoenix will permit transfers from the Money Market Sub-Account to any
other sub-account of the Variable Accumulation Account without any limitation or
charge being imposed. After the 30 days, any transfers from the Money Market
Sub-Account will be subject to the restrictions described in the prospectus.
The Eligible Funds in which the Variable Accumulation Accounts invests
are set forth in the prospectus. You may obtain a prospectus by writing or
calling Phoenix at the address or telephone number set out below.
Phoenix believes, based on its review of existing federal income tax
laws and regulations, that the Substitution by simultaneously placing an order
to redeem the shares of the Templeton Fund and an order to purchase shares of
the Phoenix Fund. Phoenix will bear the expenses attributable to the
Substitution. Phoenix will send affected Owners a notice within five days after
the Substitution.
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SERVICE CENTER: 800-243-4840
Issued by: Phoenix Home Life Mutual Insurance Company
Distributed by: W.S. Griffith & Co., Inc.
P.O. Box 5056
Hartford, CT 06102-5056
