<PAGE>
Supplement to Prospectus for Metropolitan Life Separate Account E for
Preference Plus Group and Individual Annuity Contracts dated May 1, 1996.
1. The first sentence on A-PPA-1 is changed to read as follows:
This Prospectus describes individual and group non-qualified annuities,
individual retirement annuities, Savings Incentive Match Plan for Employees
individual retirement annuities and simplified employee pensions Preference
Plus Contracts ("Contracts") and individual and group non-qualified
annuities, individual retirement annuities, Savings Incentive Match Plan for
Employees individual retirement annuities and simplified employee pensions
Preference Plus Income Annuities ("Income Annuities").
2. The second sentence of the second paragraph under "WHAT ARE THE
CONTRACTS?" on A-PPA-10 is changed to read as follows:
These include contracts meeting the tax requirements under the following
provisions of the Internal Revenue Code ("Code"): (1) Individual Retirement
Annuities (IRAs) under (S)408(b); (2) Simplified Employee Pensions (SEPs)
under (S)408(k); (3) Savings Incentive Match Plan for Employees Individual
Retirement Annuities ("SIMPLE IRAs") under (S)408(p); (4) Tax Sheltered
Annuities (TSAs) under (S)403(b); (5) Public Employee Deferred Compensation
(PEDC) under (S)457; (6) Keogh plans under (S)401; (7) Qualified Annuity
Plans (403(a)) under (S)403(a); and (8) Non-Qualified Annuities under (S)72.
3. The third paragraph under "WHAT ARE THE CONTRACTS?" on A-PPA-10 is changed
to read as follows:
This Prospectus describes four types of Contracts: IRAs, SIMPLE IRAs, Non-
Qualified and SEPs.
4. The second and third sentences of the first paragraph under "PURCHASE
PAYMENTS: ARE THERE SPECIAL RULES CONCERNING THE FIRST PAYMENT AND OTHER
ADMINISTRATIVE DETAILS THAT YOU SHOULD KNOW?" on A-PPA-11 are changed to
read as follows:
All purchase payments and all requests you may have concerning the
Contracts, like a change in beneficiary, should be sent to one of our
"Designated Office(s)." We will provide you with information indicating
which Designated Office to contact regarding various matters and the
addresses for these Offices.
5. Add the following as the last paragraph under "PURCHASE PAYMENTS: ARE
THERE SPECIAL RULES CONCERNING THE FIRST PAYMENT AND OTHER ADMINISTRATIVE
DETAILS THAT YOU SHOULD KNOW?" on A-PPA-11:
Under certain circumstances, we may be able to electronically submit your
complete initial application to our Designated Office. For the purpose of
crediting and valuing any purchase payment electronically submitted with
your initial application we may, for certain Contracts, treat the electronic
purchase payment as a payment received at our Designated Office if: (1) the
electronic purchase payment is received at the Designated Office accompanied
by a correct and complete electronic application record; and (2) your actual
purchase payment, application and other documentation are received in good
order at our Designated Office within five business days following the
transmission of the electronic record. In such case, the agent or local
office will electronically transmit a record of your purchase payment and
application and then forward your actual purchase payment, application and
other documentation to our Designated Office. Generally, the electronic
record is received at our Designated Office the business day following its
transmission by the agent or local office. If, however, your purchase
payment and application are received at our Designated Office before the
electronic record, then your purchase payment will be credited and valued as
of the date it is received.
December 24, 1996
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<PAGE>
6. Add the following sentence after the second sentence of "CAN YOU MAKE
SYSTEMATIC WITHDRAWALS?" on page A-PPA-13:
Starting on or about April 1, 1997, SWIP will also be available, if
approved in your state, for SIMPLE IRAs and Non-Qualified Contracts.
7. Add the following paragraph as the last item under "WITHDRAWALS AND
TRANSFERS" on page A-PPA-14 and just before "DEDUCTIONS AND CHARGES":
CAN MINIMUM DISTRIBUTION PAYMENTS BE MADE ON A PERIODIC BASIS?
Yes. You may request that we make minimum distribution payments to you on a
periodic basis. However, you must meet certain total Account Balance
minimums at the time you request periodic minimum distribution payments.
8. Delete the sentence at section 9 under "EXEMPTIONS FROM EARLY WITHDRAWAL
CHARGES" on page A-PPA-16 and substitute the following:
9. Nursing Home or Terminal Illness: To the first withdrawal if you or your
spouse (A) is a resident in certain nursing home facilities for at least
90 consecutive days or (B) has been diagnosed as terminally ill and is
expected to die within twelve months, but only if this provision has been
approved by your state.
9. The first sentence of the second paragraph under "WHAT ARE INCOME
ANNUITIES?" on A-PPA-17 is changed to read as follows:
Income Annuities can be either group or individual and are offered as IRAs,
SIMPLE IRAs, SEPs, TSAs, PEDC, Keogh, 403(a) and Non-Qualified annuities.
10. The third paragraph under "WHAT ARE INCOME ANNUITIES?" on A-PPA-17 is
changed to read as follows:
This Prospectus describes four types of Income Annuities: IRAs, SIMPLE
IRAs, SEPs and Non-Qualified Annuities.
11. Add the following paragraph after the first complete paragraph on A-PPA-23
just before "DOES METLIFE ADVERTISE THE PERFORMANCE OF THE SEPARATE
ACCOUNT?"
We also make payments to our licensed agents based upon the total Account
Balances of the Contracts assigned to the agent. Under the program, we pay
an amount up to .21% of the total Account Balances of the Contracts, other
registered variable annuity contracts and certain mutual fund account
balances. These asset based commissions compensate the agent for servicing
the Contracts. These payments are not made for Income Annuities.
12. The third sentence of the third paragraph under "DOES METLIFE ADVERTISE
THE PERFORMANCE OF THE SEPARATE ACCOUNT?" on page A-PPA-23 is changed to
read as follows:
Under the "EQUITY GENERATOR," an amount equal to the interest earned during
a specified interval (i.e., monthly, quarterly) in the Fixed Interest
Account is transferred to the Stock Index Division or the Aggressive Growth
Division.
13. Delete the fourth sentence of the fifth paragraph under "HOW DO FEDERAL
INCOME TAXES AFFECT YOUR DEFERRED CONTRACT?" on A-PPA-24 and substitute the
following two sentences:
Under a SIMPLE IRA, the tax penalty is increased to 25% for withdrawals
during the first two years of an employee's participation in the SIMPLE IRA.
If a combination of certain payments to you from certain tax-favored plans
(which includes (S)403(a) plans, (S)403(b) arrangements, individual
retirement arrangements, SIMPLE IRAs, SEPs and tax-qualified pension and
profit sharing plans) exceeds the greater of (1) $150,000, or (2) $112,500 a
year as indexed for inflation ($155,000 for 1996), an additional penalty tax
of 15% in addition to ordinary income taxes is imposed on the excess.
December 24, 1996
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<PAGE>
14. Add the following paragraph immediately after the paragraph entitled "SEP
Contracts" on A-PPA-25:
SIMPLE IRAs. Beginning in 1997, if the employer has no more than 100
employees (who earn at least $5,000) and the SIMPLE IRA is the exclusive
tax-qualified plan of the employer, employees may make contributions on a
before-tax basis of up to $6,000 (subject to indexing) and the employer must
generally match employee contributions dollar-for-dollar up to 3% of
compensation. Under certain circumstances, the employer can elect to make a
lesser matching contribution or make a contribution equal to 2% of
compensation for all eligible employees. SIMPLE IRAs are exempt from complex
nondiscrimination, top-heavy and reporting rules. Once a contribution is
made, you (not the employer) have all rights to it. Once contributions are
made (under these SIMPLE IRA rules), your SIMPLE IRA generally operates as
if it were an IRA purchased by you under the IRA rules discussed above.
15. Add the following sentence after the first sentence of the fourth full
paragraph in the right column on A-PPA-26:
Under a SIMPLE IRA, the tax penalty is increased to 25% for withdrawals
during the first two years of an employee's participation in the SIMPLE
IRA.
16. Delete the first sentence of the last paragraph on A-PPA-26 (which
continues onto A-PPA-27) and substitute the following sentence:
If a combination of certain income payments to you from certain tax-favored
plans (which includes (S)403(a) plans, (S)403(b) arrangements, individual
retirement arrangements, SIMPLE IRAs, SEPs and tax-qualified pension and
profit sharing plans) exceeds the greater of (1) $150,000, or (2) $112,500 a
year as indexed for inflation ($155,000 for 1996), a penalty tax of 15% in
addition to ordinary income taxes is imposed on the excess .
17. Delete the first sentence of the first full paragraph in the left column
on A-PPA-27 and substitute the following:
Distributions of your entire interest under the IRA, SIMPLE IRA, and SEP
Income Annuities generally must be made beginning no later than the April 1
of the calendar year following the year in which you reach age 70 1/2 and a
tax penalty of 50% applies to payments which should have been made but were
not.
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
<PAGE>
Supplement to Prospectus for Metropolitan Life Separate Account E for
Preference Plus Group and Individual Annuity Contracts dated May 1, 1996.
1. The second and third sentences of the first paragraph under "PURCHASE
PAYMENTS: ARE THERE SPECIAL RULES CONCERNING THE FIRST PAYMENT AND OTHER
ADMINISTRATIVE DETAILS THAT YOU SHOULD KNOW?" on B-PPA-13 are changed to
read as follows:
All purchase payments and all requests you may have concerning the Contracts,
like a change in beneficiary, should be sent to one of our "Designated
Office(s)." We will provide you with information indicating which Designated
Office to contact regarding various matters and the addresses for these
Offices.
2. Add the following paragraph as the last item under "WITHDRAWALS AND
TRANSFERS" on page B-PPA-15 and just before "DEDUCTIONS AND CHARGES":
CAN MINIMUM DISTRIBUTION PAYMENTS BE MADE ON A PERIODIC BASIS?
Yes. You may request that we make minimum distribution payments to you on a
periodic basis. However, you must meet certain total Account Balance
minimums at the time you request periodic minimum distribution payments.
3. Add the following subsection (c) to section 10 under "EXEMPTIONS FROM EARLY
WITHDRAWAL CHARGES" on B-PPA-18:
(c) For certain TSA Contracts, if you retired before the TSA Contract is
purchased (including amounts transferred into the TSA Contract from other
investment vehicles on a tax free basis plus earnings on such amounts).
4. Add the following sentence at the end of section 11 under "EXEMPTIONS FROM
EARLY WITHDRAWAL CHARGES" on B-PPA-18:
For certain TSA Contracts, if you separated from service before the TSA
Contract is purchased (including amounts transferred into the TSA Contract
from other investment vehicles on a tax free basis plus earnings on such
amounts).
5. Add the following paragraph at the top of the right column on B-PPA-26 just
before "DOES METLIFE ADVERTISE THE PERFORMANCE OF THE SEPARATE ACCOUNT?"
We also make payments to our licensed agents based upon the total Account
Balances of the Contracts assigned to the agent. Under the program, we pay
an amount up to .21% of the total Account Balances of the Contracts, other
registered variable annuity contracts and certain mutual fund account
balances. These asset based commissions compensate the agent for servicing
the Contracts. These payments are not made for Income Annuities.
6. The third sentence of the first complete paragraph on page B-PPA-27 is
changed to read as follows:
Under the "EQUITY GENERATOR," an amount equal to the interest earned during
a specified interval (i.e., monthly, quarterly) in the Fixed Interest
Account is transferred to the Stock Index Division or the Aggressive Growth
Division.
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
<PAGE>
Supplement to Prospectus for Metropolitan Life Separate Account E for Enhanced
Preference Plus Group Annuity Contracts dated May 1, 1996.
1. The second and third sentences of the first paragraph under "PURCHASE
PAYMENTS: ARE THERE SPECIAL RULES CONCERNING THE FIRST PAYMENT AND OTHER
ADMINISTRATIVE DETAILS THAT YOU SHOULD KNOW?" on C-PPA-12 are changed to
read as follows:
All purchase payments and all requests you may have concerning the
Contracts, like a change in beneficiary, should be sent to one of our
"Designated Office(s)." We will provide you with information indicating
which Designated Office to contact regarding various matters and the
addresses for these Offices.
2. Add the following sentence after the second sentence of "CAN YOU MAKE
SYSTEMATIC WITHDRAWALS?" on page C-PPA-14:
Starting on or about April 1, 1997, SWIP will also be available, if
approved in your state, for the Enhanced IRA and Enhanced Non-Qualified
Contracts.
3. Add the following paragraph as the last item under "WITHDRAWALS AND
TRANSFERS" on page C-PPA-15 and just before "DEDUCTIONS AND CHARGES":
CAN MINIMUM DISTRIBUTION PAYMENTS BE MADE ON A PERIODIC BASIS?
Yes. You may request that we make minimum distribution payments to you on a
periodic basis. However, you must meet certain total Account Balance
minimums at the time you request periodic minimum distribution payments.
4. Delete the sentence at subsection 16 under "EXEMPTIONS FROM EARLY
WITHDRAWAL CHARGES" on page C-PPA-18 and substitute the following:
16. Nursing Home or Terminal Illness: For the Enhanced IRA and Non-
Qualified Contracts, to the first withdrawal if you or your spouse (A)
is a resident in certain nursing home facilities for at least 90
consecutive days or (B) has been diagnosed as terminally ill and is
expected to die within twelve months, but only if this provision has
been approved by your state.
5. Add the following paragraph at the top of the second column on C-PPA-25
just before "DOES METLIFE ADVERTISE THE PERFORMANCE OF THE SEPARATE
ACCOUNT?"
We also make payments to our licensed agents based upon the total Account
Balances of the Contracts assigned to the agent. Under the program, we pay
an amount up to .21% of the total Account Balances of the Contracts, other
registered variable annuity contracts and certain mutual fund account
balances. These asset based commissions compensate the agent for servicing
the Contracts. These payments are not made for Income Annuities.
6. The third sentence of the first complete paragraph on page C-PPA-26 is
changed to read as follows:
Under the "Equity Generator," an amount equal to the interest earned during
a specified interval (i.e., monthly, quarterly) in the Fixed Interest
Account is transferred to the Stock Index Division or the Aggressive Growth
Division.
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
<PAGE>
Supplement to Prospectus for Metropolitan Life Separate Account E for Enhanced
TSA, Enhanced Non-Qualified, Enhanced IRA and Enhanced 403(a) Preference Plus
and Financial Freedom Account Group Annuity Contracts dated May 1, 1996.
1. The figure for Accumulation Unit Value End of Year 1995 on page FFA-13
under the "ENHANCED TSA, ENHANCED NON-QUALIFIED AND ENHANCED 403(A)
PREFERENCE PLUS CONTRACTS (A)" for Fidelity Equity-Income Division is
changed to "$21.19."
2. The figure for Accumulation Unit Value End of Year 1995 on page FFA-14
under "FINANCIAL FREEDOM ACCOUNT CONTRACTS FOR FIDELITY EQUITY-INCOME
DIVISION" is changed to "$21.19."
3. The second and third sentences of the first paragraph under "PURCHASE
PAYMENTS: ARE THERE SPECIAL RULES CONCERNING THE FIRST PAYMENT AND OTHER
ADMINISTRATIVE DETAILS THAT YOU SHOULD KNOW?" on FFA-20 are changed to read
as follows:
All purchase payments and all requests you may have concerning the
Contracts, like a change in beneficiary, should be sent to one of our
"Designated Office(s)." We will provide you with information indicating
which Designated Office to contact regarding various matters and the
addresses for these Offices.
4. Add the following paragraph as the last item under "WITHDRAWALS AND
TRANSFERS" on page FFA-23 and just before "DEDUCTIONS AND CHARGES":
CAN MINIMUM DISTRIBUTION PAYMENTS BE MADE ON A PERIODIC BASIS?
Yes. You may request that we make minimum distribution payments to you on a
periodic basis. However, you must meet certain total Account Balance
minimums at the time you request periodic minimum distribution payments.
5. Add the following paragraph after the second complete paragraph on FFA-34
just before "DOES METLIFE ADVERTISE THE PERFORMANCE OF THE SEPARATE
ACCOUNT?"
We also make payments to our licensed agents based upon the total Account
Balances of the Contracts assigned to the agent. Under the program, we pay
an amount up to .21% of the total Account Balances of the Contracts, other
registered variable annuity contracts and certain mutual fund account
balances. These asset based commissions compensate the agent for servicing
the Contracts. These payments are not made for Income Annuities.
6. The third sentence of the third paragraph under "DOES METLIFE ADVERTISE THE
PERFORMANCE OF THE SEPARATE ACCOUNT?" on page FFA-35 is changed to read as
follows:
Under the "Equity Generator," an amount equal to the interest earned during a
specified interval (i.e., monthly, quarterly) in the Fixed Interest Account
is transferred to the Stock Index Division or the Aggressive Growth Division.
7. Add the following after the last paragraph of the right column on FFA-35:
"ARE THERE SPECIAL CHARGES THAT APPLY IF YOUR RETIREMENT PLAN TERMINATES
ITS CONTRACT OR TAKES OTHER ACTION?"
Under certain Enhanced TSA Preference Plus Contracts, amounts equal to some
or all of the early withdrawal charge imposed under a contract of another
issuer in connection with the transfer of money into an Enhanced TSA
Preference Plus Contract may be credited to your Account Balance. If such
amounts are credited to an Enhanced TSA Preference Plus Contract, special
termination charges may be imposed. These charges may also apply if the
plan introduces other funding vehicles provided by other carriers. Charges
are not imposed on plan participants; but rather are absorbed by the
Contractholder. Therefore, under the Contract, the participant will incur
only the
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
<PAGE>
withdrawal charges, if applicable, otherwise discussed in this prospectus.
The charges to the plan are imposed on the amount initially transferred to
MetLife for the first seven years according to the schedule in the
following table:
DURING CONTRACT YEAR
<TABLE>
<CAPTION>
8 &
1 2 3 4 5 6 7 BEYOND
---- ---- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C>
5.6% 5.0% 4.5% 4.0% 3.0% 2.0% 1.0% 0%
</TABLE>
The charge to the plan, for partial withdrawals, is determined by
multiplying the amount of the withdrawal that is subject to the charge by
the applicable percentage shown above.
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS
<PAGE>
Supplement to Metropolitan Life Separate Account E Preference Plus and
Financial Freedom Account Group and Individual Annuity Contracts Statement of
Additional Information dated May 1, 1996.
1. Add the following sentence after the sentence under "Services" on page 2:
When Metropolitan Life provides administrative services to group contracts,
such services may be provided to a group on a basis more favorable than
that otherwise made available to other groups.
2. The third sentence of the third full paragraph on the right column under
"Performance Data" on page 4 is changed to read as follows:
Under the "Equity Generator," an amount equal to the interest earned during
a specified interval (i.e., monthly, quarterly) in the Fixed Interest
Account is transferred to the Stock Index Division or the Aggressive Growth
Division.
3. Performance numbers for the Fidelity Equity-Income Division under the
heading "For the Period January 1, 1995 to December 31, 1995--Enhanced
Preference Plus Contracts (with Sales Load) (20% Free Corridor Version)" on
page 7 are changed as follows:
<TABLE>
<CAPTION>
CHANGE IN
ACCUMULATION AVERAGE ANNUAL
UNIT VALUE TOTAL RETURN
------------ --------------
<S> <C> <C>
Fidelity Equity-Income Division................ $33.78 $28.65
</TABLE>
4. Performance numbers for the Fidelity Equity-Income Division under the
heading "For the Period Inception to December 31, 1995--Enhanced Preference
Plus Contracts (With Sales Load) (20% Free Corridor Version)" on page 8 are
changed as follows:
<TABLE>
<CAPTION>
CHANGE IN
CHANGE IN ACCUMULATION
ACCUMULATION UNIT VALUE AVERAGE ANNUAL
INCEPTION UNIT VALUE ANNUALIZED TOTAL RETURN
--------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Fidelity Equity-Income
Division................ 5/1/92 $80.03 $17.38 $16.93
</TABLE>
5. Performance numbers for the Fidelity Equity-Income Division under the
heading "For the Period January 1, 1995 to December 31, 1995--Financial
Freedom Account Contracts" on page 9 are changed as follows:
<TABLE>
<CAPTION>
CHANGE IN
ACCUMULATION AVERAGE ANNUAL
UNIT VALUE TOTAL RETURN
------------ --------------
<S> <C> <C>
Fidelity Equity-Income Division................ $33.78 $33.78
</TABLE>
6. Performance numbers for the Fidelity Equity-Income Division under the
heading "For the Period Inception to December 31, 1995--Financial Freedom
Account Contracts" on page 9 are changed as follows:
<TABLE>
<CAPTION>
CHANGE IN
CHANGE IN ACCUMULATION
ACCUMULATION UNIT VALUE AVERAGE ANNUAL
INCEPTION UNIT VALUE ANNUALIZED TOTAL RETURN
--------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Fidelity Equity-Income
Division............... 5/1/92 $111.90 $18.14 $18.14
</TABLE>
December 24, 1996
KEEP THIS SUPPLEMENT WITH YOUR
STATEMENT OF ADDITIONAL INFORMATION
