SEPARATE ACCOUNT FP OF EQUITABLE VARIABLE LIFE INSURANCE CO, 497, 1996-02-27

SEPARATE ACCOUNT FP OF EQUITABLE VARIABLE LIFE INSURANCE CO
497, 1996-02-27

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Incentive Life Plus(TM) (94-300)
Champion 2000(TM)(90-400) Issued by
Incentive Life 2000(TM)(90-300) EQUITABLE VARIABLE
Survivorship 2000(TM)(92-500) LIFE INSURANCE COMPANY
Incentive Life(TM)(85-300 & 88-300)
SP-Flex(TM)(87-500)
The Champion(TM)(85-11)
SP-1(TM)(85-09)
Basic Policy(TM)(85-01)
Expanded Policy(TM)(85-02)

PROSPECTUS SUPPLEMENT DATED FEBRUARY 28, 1996

This supplement updates the Prospectus you received for your variable life
insurance policy, as previously supplemented. Please read this supplement
carefully. This supplement should be attached to your Prospectus and you should
retain both for future reference. Terms used in this supplement have the same
meaning as in the Prospectus.

TELEPHONE TRANSFERS. Effective immediately, we are extending the deadline for
making telephone transfers to 4:00 p.m. Eastern Time. All other conditions for
making telephone transfers remain unchanged.

VM-516
- --------------------------------------------------------------------------------
This Supplement Should be Retained for Future Reference.

<PAGE>
INCENTIVE LIFE 2000

FLEXIBLE PREMIUM VARIABLE
LIFE INSURANCE POLICY

ISSUED BY
EQUITABLE VARIABLE
LIFE INSURANCE COMPANY
PROSPECTUS SUPPLEMENT DATED MAY 1, 1995

INTRODUCTION. This supplement updates certain information contained in the
product prospectus dated May 1, 1994. Please read this supplement and the
prospectus carefully. You should attach this supplement to your prospectus and
any supplements thereto and retain them for future reference. Terms used in this
supplement have the same meanings as in the prospectus, except that, from now
on, we will refer to the Guaranteed Interest Division as the Guaranteed Interest
Account and to the divisions of Separate Account FP as "Funds." Equitable
Variable will send you an additional copy of the prospectus or any supplement,
without charge, on written request.

NEW INTERNATIONAL FUND. A new Fund called the International Fund has been
available since April 3, 1995, subject to regulatory approval in your state.
This Fund will invest in a corresponding portfolio of The Hudson River Trust
(the Trust). Alliance Capital Management L.P. (Alliance) acts as investment
adviser to the new portfolio. See THE INVESTMENT ADVISER section in the Trust's
prospectus, which is attached to your product prospectus, for additional
information about Alliance and its investment advisory fees.

The investment objective of the Trust's International Portfolio is long-term
growth of capital. The Portfolio will pursue this objective by investing in
equity securities selected principally to permit participation in non-United
States companies with prospects for growth.

The advisory fee payable by the Trust to Alliance with respect to the
International Portfolio will equal .900% of daily average net assets up to $500
million, .850% of the next $1 billion, and .800% of daily average net assets
over $1.5 billion.

EQUITABLE VARIABLE. The information under the heading EQUITABLE VARIABLE is
updated as follows: Equitable Variable was organized in 1972 in New York State
as a stock life insurance company. We are licensed to do business in all 50
states, Puerto Rico, the Virgin Islands and the District of Columbia. At
December 31, 1994, we had approximately $125.8 billion face amount of variable
life insurance in force.

EQUITABLE. The information under the heading OUR PARENT, EQUITABLE is updated as
follows: Equitable is a wholly-owned subsidiary of The Equitable Companies
Incorporated (the Holding Company). The largest stockholder of the Holding
Company is AXA, a French insurance holding company. AXA beneficially owns 60.5%
of the outstanding shares of common stock of the Holding Company plus
convertible preferred stock. Under its investment arrangements with Equitable
and the Holding Company, AXA is able to exercise significant influence over the
operations and capital structure of the Holding Company, Equitable and their
subsidiaries. AXA is the principal holding company for most of the companies in
one of the largest insurance groups in Europe. The majority of AXA's stock is
controlled by a group of five French mutual insurance companies. Equitable, the
Holding Company and their subsidiaries managed approximately $174.5 billion in
assets as of December 31, 1994.

THE TRUST'S INVESTMENT ADVISER. The information about Alliance Capital
Management L.P., the Trust's investment adviser, is updated as follows: As of
December 31, 1994, Alliance was managing approximately $121.3 billion in assets.
Alliance, a publicly traded limited partnership, is indirectly majority-owned by
Equitable.

VM 505 CATALOG NUMBER 126721
- --------------------------------------------------------------------------------
THIS SUPPLEMENT SHOULD BE RETAINED FOR FUTURE REFERENCE.

HUDSON RIVER TRUST RATES OF RETURN. The information under the heading HUDSON
RIVER TRUST RATES OF RETURN in the prospectus is updated as follows. The rates
of return shown below are based on the actual investment performance of The
Hudson River Trust portfolios, after deduction for investment management fees
and direct operating expenses of the Trust, for periods ending December 31,
1994. The historical performance of the Common Stock and Money Market Portfolios
for periods prior to March 22, 1985 has been adjusted to reflect current
investment management fees of .40% per annum and estimated direct operating
expenses of the Trust of .10% per annum. The Common Stock Portfolio and its
predecessors have been in existence since 1976. No return information is
provided for the International Portfolio, since it received its initial funding
on April 3, 1995. The yields shown below are derived from the actual rate of
return of the Trust portfolio for the period, which is then adjusted to omit
capital changes in the portfolio during the period. We show the SEC standardized
7-day yield for the Money Market Portfolio and the SEC 30-day yield for the
Intermediate Government Securities, Quality Bond and High Yield Portfolios.

These rates of return and yields are not illustrative of how actual investment
performance will affect the benefits under your policy. Moreover, these rates of
return and yields are not an estimate or guarantee of future performance.

THESE RATES OF RETURN AND YIELDS ARE FOR THE TRUST ONLY AND DO NOT REFLECT THE
ADMINISTRATIVE AND COST OF INSURANCE CHARGES, SALES CHARGES, PREMIUM TAX CHARGES
AND THE MORTALITY AND EXPENSE RISK CHARGE APPLICABLE UNDER AN INCENTIVE LIFE
2000 POLICY. SUCH CHARGES WOULD REDUCE THE RETURNS AND YIELDS SHOWN. SEE
ILLUSTRATIONS OF INCENTIVE LIFE 2000 POLICY ACCOUNT AND CASH SURRENDER VALUES
BASED ON HISTORICAL INVESTMENT RESULTS BELOW.

RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994
--------------------------------------------------------------------------

PORTFOLIO YIELDS 1 YEAR 3 YEARS 5 YEARS 10 YEARS 15 YEARS SINCE INCEPTION(A)
--------- ------ ------ ------- ------- -------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market............................ 5.59% 4.02% 3.51% 4.98% 6.27% -- 7.54%
Intermediate Government Securities...... 6.35 (4.37) 3.75 -- -- -- 6.16
Quality Bond............................ 6.37 (5.10) -- -- -- -- (4.49)
High Yield.............................. 10.53 (2.79) 10.37 10.60 -- -- 9.04
Growth & Income......................... (0.58) -- -- -- -- (0.66)
Equity Index (b)........................ -- -- -- -- -- 1.08(b)
Common Stock............................ (2.14) 8.03 9.82 15.25 15.32% 13.91
Global.................................. 5.23 11.42 11.15 -- -- 10.39
Aggressive Stock........................ (3.81) 2.84 17.06 -- -- 18.78

The Asset Allocation Series:
Conservative Investors.................. (4.10) 3.97 7.46 -- -- 7.71
Balanced................................ (8.02) 0.12 7.29 -- -- 11.25
Growth Investors........................ (3.15) 5.42 14.05 -- -- 14.19
- ---------
<FN>
(a) The Equity Index Portfolio received its initial funding on March 1, 1994;
the Growth & Income and Quality Bond Portfolios on October 1, 1993; the
Intermediate Government Securities Portfolio on April 1, 1991; the
Conservative Investors and the Growth Investors Portfolios on October 2,
1989; the Global Portfolio on August 27, 1987; the High Yield Portfolio on
January 2, 1987; the Aggressive Stock and Balanced Portfolios on January 27,
1986; the predecessor of the Money Market Portfolio on July 13, 1981; and
the predecessor of the Common Stock Portfolio on January 13, 1976.

(b) Unannualized.
</FN>
</TABLE>

Additional investment performance information appears in the attached Trust
prospectus.

ILLUSTRATIONS OF POLICY ACCOUNT AND CASH SURRENDER VALUES BASED ON HISTORICAL
INVESTMENT RESULTS. The table on the next page was developed to demonstrate how
the actual investment experience of the Trust and its predecessors would have
affected the Policy Account value and Cash Surrender Value of hypothetical
Incentive Life 2000 policies held for specified periods of time. The table
illustrates premiums, Policy Account values and Cash Surrender Values of twelve
hypothetical Incentive Life 2000 policies, each with a 100% premium allocation
to a different Fund. The illustration also assumes that, in each case, the
insured is a 40-year-old male, standard risk non-smoker and that the policy has
a level death benefit, a $200,000 face amount and a $3,000 annual premium.

The table assumes that each policy was purchased on the first day of a calendar
year. For Trust portfolios whose inception dates fall before June 30, the policy
is assumed to have been purchased at the beginning of and earned the actual
return over that entire calendar year. For Trust portfolios whose inception
dates fall after June 30, the policy is assumed to have been purchased at the
beginning of the first full calendar year of that portfolio's operation. Policy
values in the "Since Inception" column are for periods ended December 31, 1994.

2
<PAGE>

<TABLE>
<CAPTION>
ILLUSTRATIONS OF INCENTIVE LIFE 2000 POLICY ACCOUNT AND CASH SURRENDER VALUES
BASED ON HISTORICAL INVESTMENT RESULTS, $200,000 OF INITIAL INSURANCE PROTECTION
AND CURRENT CHARGES

AT THE END OF THE FIRST YEAR AT THE END OF THE FIFTH YEAR
---------------------------- ----------------------------

TOTAL POLICY CASH TOTAL POLICY CASH
PREMIUM ACCOUNT SURRENDER PREMIUM ACCOUNT SURRENDER
PORTFOLIO PAID VALUE VALUE PAID VALUE VALUE
--------- ---- ----- ----- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Money Market.................. $3,000 $2,064 $1,435 $15,000 $14,162 $12,933
Int. Gov't Securities......... 3,000 2,050 1,421
Quality Bond.................. 3,000 1,644 1,016
High Yield.................... 3,000 1,871 1,242 15,000 14,666 13,437
Growth & Income............... 3,000 1,751 1,122
Equity Index..................
Common Stock.................. 3,000 1,977 1,349 15,000 21,063 19,834
Global........................ 3,000 2,018 1,390 15,000 14,872 13,643
Aggressive Stock.............. 3,000 2,576 1,947 15,000 18,008 16,779

THE ASSET ALLOCATION SERIES:
- ----------------------------
Conservative Investors........ 3,000 1,916 1,287 15,000 12,969 11,740
Balanced...................... 3,000 2,428 1,799 15,000 15,257 14,028
Growth Investors.............. 3,000 2,013 1,385 15,000 15,152 13,924

<FN>

THESE VALUES ARE NOT AN ESTIMATE OR GUARANTEE OF FUTURE PERFORMANCE.
</FN>
</TABLE>

AT THE END OF THE TENTH YEAR POLICY OWNED SINCE PORTFOLIO'S INCEPTION
---------------------------- ----------------------------------------

TOTAL POLICY CASH TOTAL POLICY CASH
PREMIUM ACCOUNT SURRENDER PREMIUM ACCOUNT SURRENDER
PORTFOLIO PAID VALUE VALUE PAID VALUE VALUE
--------- ---- ----- ----- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Money Market.................. $30,000 $34,204 $32,950 $39,000 $ 44,820 $ 44,318
Int. Gov't Securities......... 12,000 9,544 8,465
Quality Bond.................. 3,000 1,644 1,016
High Yield.................... 24,000 27,497 25,993
Growth & Income............... 3,000 1,751 1,122
Equity Index.................. 3,000 1,972 1,344
Common Stock.................. 30,000 56,059 54,805 57,000 209,312 209,312
Global........................ 21,000 26,124 24,619
Aggressive Stock.............. 27,000 48,176 46,671

THE ASSET ALLOCATION SERIES:
- ----------------------------
Conservative Investors........ 15,000 12,969 11,740
Balanced...................... 27,000 31,323 29,819
Growth Investors.............. 15,000 15,152 13,924

<FN>

THESE VALUES ARE NOT AN ESTIMATE OR GUARANTEE OF FUTURE PERFORMANCE.
</FN>
</TABLE>
3
<PAGE>

TAX CHANGES. The United States Congress may in the future enact legislation that
could change the tax treatment of life insurance policies. In addition, the
Treasury Department may amend existing regulations, issue new regulations, or
adopt new interpretations of existing laws. There is no way of predicting
whether, when or in what form any such change would be adopted. Any such change
could have retroactive effect regardless of the date of enactment. State tax
laws or, if you are not a United States resident, foreign tax laws, may affect
the tax consequences to you, the insured person or your beneficiary. These laws
may change from time to time without notice.

The discussion of the tax effects contained in your prospectus or supplements is
based on our current understanding of Federal income tax laws as currently
interpreted as they apply to U.S. resident individual taxpayers. This discussion
should not be considered tax advice. We suggest you consult your legal or tax
adviser.

DISTRIBUTION. Equico Securities, Inc. ("Equico"), a wholly-owned subsidiary of
Equitable, is the principal underwriter of the Trust under a Distribution
Agreement. Equico is also the distributor of our variable life insurance
policies and Equitable's variable annuity contracts under a Distribution and
Servicing Agreement. Equico is registered with the SEC as a broker-dealer under
the Securities Exchange Act of 1934 and is a member of the National Association
of Securities Dealers, Inc. Equico's principal business address is 1755
Broadway, New York, N.Y. 10019. Equico is paid a fee for its services as
distributor of our policies. For 1994, Equico was paid a fee of $216,920 for its
services under the Distribution and Servicing Agreement.

The amounts paid and accrued to Equitable by us under our sales and services
agreements with Equitable totalled approximately $380.5 million in 1994, $355.7
million in 1993 and $374.9 million in 1992.

LONG-TERM MARKET TRENDS. Appendix A to this supplement updates the information
contained in Appendix A to the prospectus.

MANAGEMENT. An updated list of our directors and principal officers and a brief
statement of their business experience for the past five years is contained in
Appendix B.

ACCOUNTING AND ACTUARIAL EXPERTS

The financial statements in this supplement replace those contained in the
prospectus. The financial statements of Separate Account FP and Equitable
Variable included in this supplement have been audited for the years ended
December 31, 1994 and 1993, by Price Waterhouse LLP, and for the year ended
December 31, 1992 by Deloitte & Touche LLP, as stated in their respective
reports. The financial statements of Separate Account FP and Equitable Variable
for the years ended December 31, 1994 and 1993 included in this supplement have
been so included in reliance on the reports of Price Waterhouse LLP, independent
accountants, given on the authority of such firm as experts in accounting and
auditing. The financial statements of Separate Account FP and Equitable Variable
for the year ended December 31, 1992 included in this supplement have been so
included in reliance on the reports of Deloitte & Touche LLP, independent
accountants, given upon the authority of such firm as experts in accounting and
auditing.

The financial statements of Equitable Variable contained in this supplement
should be considered only as bearing upon the ability of Equitable Variable to
meet its obligations under the Incentive Life 2000 policies. They should not be
considered as bearing upon the investment experience of the Funds of the
Separate Account.

Actuarial matters in this supplement have been examined by Barbara Fraser,
F.S.A., M.A.A.A., who is a Vice President and Actuary of Equitable. Her opinion
on actuarial matters is filed as an exhibit to the Registration Statement we
filed with the SEC.

ILLUSTRATIONS OF POLICY BENEFITS

The illustrations contained in Part 4 of the prospectus are updated as follows:

To help clarify how the key financial elements of the policy work, a series of
tables has been prepared. The tables show how death benefits, Policy Account and
Cash Surrender Values ("policy benefits") under a hypothetical Incentive Life
2000 policy could vary over time if the Funds had CONSTANT hypothetical gross
annual investment returns of 0%, 6% or 12% over the years covered by each table.
Actual policy benefits will differ from those shown in the tables if the annual
investment returns AVERAGE 0%, 6% or 12% over a period of years but go above or
below those figures in individual policy years. Actual policy benefits will also
differ, depending on your premium allocations to each Fund, if the overall
actual rates of return averaged 0%, 6% or 12%, but went above or below those
figures for an individual Fund. The tables are for a 40 year old standard risk
male non-smoker. Planned premium payments of $3,000 for an initial Face Amount
of $200,000 are assumed to be paid at the beginning of each policy year. The
difference between the Policy Account and the Cash Surrender Values in the first
fifteen years is the surrender charge. See SURRENDER CHARGE in the prospectus.

The tables illustrate cost of insurance and expense charges (policy cost
factors) at both the current rates and at the maximum rates guaranteed in the
policies. Beginning in the sixth policy year, the current tables reflect the
reduction in current cost of insurance charges. The amounts shown at the end of
each policy year reflect current daily charges against the Funds of .60% per
annum for mortality and expense risks (.70% for the guaranteed table), .51% per
annum for investment management (the average of the effective annual advisory
fees applicable to each Trust portfolio during 1994 and the maximum advisory fee
for the International Portfolio) and .03% per annum for direct Trust expenses.
The charge reflected for direct Trust expenses exceeds the aggregate actual
charges incurred by the portfolios of the Trust as a percentage of aggregate
average daily Trust net assets during 1994. The effect of these adjustments is
that on a 0% gross rate of return the net rate of return would be -1.14%, on 6%
it would be 4.80%, and on 12% it would be 10.73%. Remember, however, that
investment management fees and direct Trust expenses vary by portfolio. See THE
TRUST'S INVESTMENT ADVISER in the prospectus.

4
<PAGE>

The tables assume a first year monthly administrative charge of $55 and an
applicable tax rate of 2% of premiums for the deduction for premium taxes. There
are tables for both death benefit Option A and death benefit Option B-PLUS and
each option is illustrated using current and guaranteed policy cost factors. The
current tables assume that the monthly administrative charge remains constant at
$5 after the first policy year. The guaranteed tables assume that this monthly
charge is $8. The tables reflect the fact that no charge is currently made for
Federal taxes. If a charge is made for those taxes in the future, it will take a
higher rate of return to produce after-tax returns of 0%, 6% or 12%.

The second column of each table shows the effect of an amount equal to the
premiums invested to earn interest, after taxes, of 5% compounded annually.
These tables show that if a policy is returned in its very early years for
payment of its Cash Surrender Value, that Cash Surrender Value will be low in
comparison to the amount of the premiums accumulated with interest. Thus, the
cost of owning your policy for a relatively short time will be high.

The internal rate of return on Cash Surrender Value is equivalent to an interest
rate (after taxes) at which an amount equal to the illustrated premiums could
have been invested outside the policy to arrive at the Cash Surrender Value of
the policy. The internal rate of return on the death benefit is equivalent to an
interest rate (after taxes) at which an amount equal to the illustrated premiums
could have been invested outside the policy to arrive at the death benefit of
the policy. The internal rate of return is compounded annually, and the premiums
are assumed to be paid at the beginning of each policy year.

INDIVIDUAL ILLUSTRATIONS. On request, we will furnish you with a comparable
illustration based on the age and sex of the proposed insured person, standard
risk assumptions and an initial Face Amount and planned premium of your choice.
If you purchase a policy, we will, on request, deliver an individualized
illustration reflecting the planned premium you have chosen and the insured
person's actual risk class. Upon request after issuance, we will also provide a
comparable illustration reflecting your actual Policy Account value. If you
request illustrations more than once in any policy year, we may charge for the
illustration.

5
<PAGE>
INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION A
ASSUMING CURRENT CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- --------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
------ ----------- -------- -------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $200,000 $200,000 $200,000 $ 1,761 $ 1,895 $ 2,030 $ 1,132 $ 1,266 $ 1,401
2 6,457 200,000 200,000 200,000 4,080 4,479 4,894 3,301 3,700 4,115
3 9,930 200,000 200,000 200,000 6,356 7,170 8,050 5,428 6,241 7,121
4 13,577 200,000 200,000 200,000 8,589 9,973 11,527 7,510 8,894 10,448
5 17,406 200,000 200,000 200,000 10,777 12,891 15,361 9,548 11,663 14,132

6 21,426 200,000 200,000 200,000 12,923 15,937 19,596 11,544 14,558 18,217
7 25,647 200,000 200,000 200,000 15,027 19,115 24,278 13,522 17,610 22,773
8 30,080 200,000 200,000 200,000 17,138 22,483 29,511 15,633 20,978 28,006
9 34,734 200,000 200,000 200,000 19,273 26,072 35,380 17,768 24,567 33,875
10 39,620 200,000 200,000 200,000 21,367 29,825 41,884 20,113 28,571 40,630

15 67,972 200,000 200,000 200,000 31,050 51,254 86,776 31,050 51,254 86,776

20 104,158 200,000 200,000 219,745 39,278 78,335 163,989 39,278 78,335 163,989

25 (age 65) $150,340 $200,000 $200,000 $363,527 $46,128 $114,078 $297,973 $46,128 $114,078 $297,973
<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
------ ----------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.27% -57.79% -53.29% 6,566.67% 6,566.67% 6,566.67%
2 6,457 -33.79 -28.21 -22.65 668.03 668.03 668.03
3 9,930 -23.24 -17.22 -11.26 267.20 267.20 267.20
4 13,577 -17.89 -11.63 -5.46 153.63 153.63 153.63
5 17,406 -14.70 -8.27 -1.98 103.51 103.51 103.51

6 21,426 -12.58 -6.04 0.34 76.08 76.08 76.08
7 25,647 -11.03 -4.40 2.03 59.05 59.05 59.05
8 30,080 -9.63 -3.00 3.42 47.57 47.57 47.57
9 34,734 -8.51 -1.89 4.51 39.36 39.36 39.36
10 39,620 -7.42 0.89 5.45 33.24 33.24 33.24

15 67,972 -4.80 1.61 7.84 17.17 17.17 17.17

20 104,158 -4.24 2.48 8.84 10.46 10.46 11.22

25 (age 65) $150,340 -3.99% 3.09% 9.46% 6.90% 6.90% 10.71%

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

<PAGE>

INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION A
ASSUMING CURRENT CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- --------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
------ ----------- -------- -------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $200,000 $200,000 $200,000 $ 1,758 $ 1,893 $ 2,027 $ 1,130 $ 1,264 $ 1,399
2 6,457 200,000 200,000 200,000 3,946 4,340 4,751 3,167 3,561 3,972
3 9,930 200,000 200,000 200,000 6,078 6,873 7,735 5,149 5,945 6,806
4 13,577 200,000 200,000 200,000 8,148 9,491 11,002 7,070 8,412 9,923
5 17,406 200,000 200,000 200,000 10,160 12,199 14,585 8,931 10,970 13,356

6 21,426 200,000 200,000 200,000 12,106 14,995 18,512 10,727 13,617 17,134
7 25,647 200,000 200,000 200,000 13,984 17,882 22,820 12,480 16,377 21,315
8 30,080 200,000 200,000 200,000 15,793 20,861 27,549 14,289 19,357 26,045
9 34,734 200,000 200,000 200,000 17,531 23,937 32,746 16,026 22,432 31,241
10 39,620 200,000 200,000 200,000 19,191 27,107 38,457 17,937 25,853 37,203

15 67,972 200,000 200,000 200,000 26,094 44,363 76,902 26,094 44,363 76,902

20 104,158 200,000 200,000 200,000 29,703 63,719 140,267 29,703 63,719 140,267

25 (age 65) $150,340 $200,000 $200,000 $300,064 $28,107 $84,919 $245,954 $28,107 $84,919 $245,954

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
------ ----------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.35% -57.87% -53.38% 6,566.67% 6,566.67% 6,566.67%
2 6,457 -35.73 -30.12 -24.54 668.03 668.03 668.03
3 9,930 -25.43 -19.35 -13.33 267.20 267.20 267.20
4 13,577 -20.08 -13.71 -7.46 153.63 153.63 153.63
5 17,406 -16.81 -10.25 -3.84 103.51 103.51 103.51

6 21,426 -14.64 -7.93 -1.41 76.08 76.08 76.08
7 25,647 -13.05 -6.22 0.37 59.05 59.05 59.05
8 30,080 -11.68 -4.80 1.81 47.57 47.57 47.57
9 34,734 -10.66 -3.73 2.90 39.36 39.36 39.36
10 39,620 -9.62 -2.72 3.88 33.24 33.24 33.24

15 67,972 -7.18 -0.18 6.45 17.17 17.17 17.17

20 104,158 -7.31 0.57 7.54 10.46 10.46 10.46

25 (age 65) $150,340 -8.75% 0.94% 8.24% 6.90% 6.90% 9.51%

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

7
<PAGE>

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- --------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
------ ----------- -------- -------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $201,756 $201,890 $202,025 $ 1,756 $ 1,890 $ 2,025 $ 1,128 $ 1,262 $ 1,396
2 6,458 204,067 204,464 204,879 4,067 4,464 4,879 3,288 3,686 4,100
3 9,930 206,330 207,139 208,015 6,330 7,139 8,015 5,401 6,211 7,086
4 13,577 208,543 209,918 211,462 8,543 9,918 11,462 7,464 8,839 10,383
5 17,406 210,705 212,803 215,252 10,705 12,803 15,252 9,476 11,574 14,023

6 21,426 212,819 215,803 219,426 12,819 15,803 19,426 11,440 14,424 18,047
7 25,647 214,884 218,923 224,024 14,884 18,923 24,024 13,379 17,418 22,519
8 30,080 216,946 222,217 229,145 16,946 22,217 29,145 15,441 20,713 27,640
9 34,734 219,025 225,715 234,867 19,025 25,715 34,867 17,520 24,210 33,362
10 39,620 221,052 229,354 241,182 21,052 29,354 41,182 19,798 28,100 39,928

15 67,972 230,206 249,722 283,978 30,206 49,722 83,978 30,206 49,722 83,978

20 104,158 237,411 274,203 354,707 37,411 74,203 154,707 37,411 74,203 154,707

25 (age 65) $150,340 $242,527 $304,233 $474,554 $42,527 $104,233 $274,554 $42,527 $104,233 $274,554

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
------ ----------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.42% -57.94% -53.46% 6,625.21% 6,629.68% 6,634.17%
2 6,458 -33.98 -28.40 -22.85 676.27 677.07 677.91
3 9,930 -23.44 -17.44 -11.49 271.48 272.02 272.60
4 13,577 -18.11 -11.86 -5.70 156.72 157.21 157.76
5 17,406 -14.94 -8.52 -2.24 106.06 106.55 107.11

6 21,426 -12.83 -6.30 0.07 78.33 78.83 79.44
7 25,647 -11.29 -4.68 1.75 61.10 61.64 62.30
8 30,080 -9.91 -3.28 3.13 49.49 50.06 50.79
9 34,734 -8.80 -2.19 4.20 41.19 41.80 42.60
10 39,620 -7.72 -1.19 5.14 35.00 35.65 36.53

15 67,972 -5.17 1.24 7.47 18.70 19.59 20.99

20 104,158 -4.75 1.98 8.35 11.84 12.99 15.03

25 (age 65) $150,340 -4.71% 2.44% 8.94% 8.15% 9.59% 12.35%

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

8
<PAGE>

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- --------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
------ ----------- -------- -------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $201,754 $201,888 $202,023 $ 1,754 $ 1,888 $ 2,023 $ 1,125 $ 1,259 $ 1,394
2 6,458 203,931 204,324 204,733 3,931 4,324 4,733 3,153 3,545 3,954
3 9,930 206,046 206,837 207,694 6,046 6,837 7,694 5,117 5,908 6,765
4 13,577 208,093 209,425 210,924 8,093 9,425 10,924 7,014 8,346 9,845
5 17,406 210,073 212,092 214,543 10,073 12,092 14,453 8,844 10,863 13,224

6 21,426 211,979 214,832 218,303 11,979 14,832 18,303 10,600 13,453 16,925
7 25,647 213,807 217,645 222,506 13,807 17,645 22,506 12,302 16,140 21,001
8 30,080 215,555 220,531 227,093 15,555 20,531 27,093 14,050 19,026 25,588
9 34,734 217,220 223,488 232,102 17,220 23,488 32,102 15,715 21,983 30,597
10 39,620 218,795 226,513 237,568 18,795 26,513 37,568 17,541 25,259 36,314

15 67,972 225,013 242,380 273,253 25,013 42,380 73,253 25,013 42,380 73,253

20 104,158 227,294 258,244 327,661 27,294 58,244 127,661 27,294 58,244 127,661

25 (age 65) $150,340 $223,480 $271,363 $409,941 $23,480 $71,363 $209,941 $23,480 $71,363 $209,941

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
------ ----------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.49% -58.02% -53.54% 6,625.14% 6,629.60% 6,634.09%
2 6,458 -35.94 -30.35 -24.77 676.00 676.79 677.61
3 9,930 -25.69 -19.61 -13.61 271.29 271.82 272.39
4 13,577 -20.36 -14.01 -7.76 156.56 157.04 157.57
5 17,406 -17.12 -10.57 -4.17 105.91 106.38 106.93

6 21,426 -14.97 -8.27 -1.76 78.18 78.67 79.25
7 25,647 -13.41 -6.58 0.00 60.96 61.47 62.10
8 30,080 -12.06 -5.19 1.42 49.34 49.88 50.57
9 34,734 -11.07 -4.14 2.49 41.03 41.60 42.36
10 39,620 -10.05 -3.15 3.44 34.82 35.43 36.27

15 67,972 -7.78 -0.75 5.88 18.46 19.27 20.57

20 104,158 -8.30 -0.28 6.74 11.49 12.52 14.40

25 (age 65) $150,340 -10.74% -0.38% 7.22% 7.62% 8.87% 11.45%

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>
THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

9
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994

INTERMEDIATE
MONEY GOVERNMENT HIGH COMMON EQUITY
MARKET SECURITIES YIELD BALANCED STOCK INDEX
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ----------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of The
Hudson River Trust -- at
market value (Notes 2 and 9)
Cost: $138,079,624 .............. $138,112,384
31,003,727 .............. $28,266,864
50,877,692 .............. $50,004,589
341,928,746 .............. $339,049,871
814,398,039 .............. $812,349,390
31,724,933 .............. $31,325,647
Receivable (payable) for
policy related
transactions ................. 4,109,267 49,140 (10,836) (18,276) 622,866 21,063
------------ ----------- ----------- ------------ ------------ -----------
Total Assets .................... 142,221,651 28,316,004 49,993,753 339,031,595 812,972,256 31,346,710
------------ ----------- ----------- ------------ ------------ -----------
LIABILITIES
Payable (receivable) for
purchases (sales) of shares of
The Hudson River Trust ....... 3,997,965 52,945 15,230 122,383 705,098 21,172
Amount retained by Equitable
Variable in Separate Account
FP (Note 6) .................. 727,601 608,984 523,622 493,647 1,260,957 200,135
------------ ----------- ----------- ------------ ------------ -----------
Total Liabilities ............... 4,725,566 661,929 538,852 616,030 1,966,055 221,307
------------ ----------- ----------- ------------ ------------ -----------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS .............. $137,496,085 $27,654,075 $49,454,901 $338,415,565 $811,006,201 $31,125,403
============ =========== =========== ============ ============ ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
----------------------------
AGGRESSIVE GROWTH & QUALITY CONSERVATIVE GROWTH
GLOBAL STOCK INCOME BOND INVESTORS INVESTORS
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------ ------------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of The
Hudson River Trust -- at
market value (Notes 2 and 9)
Cost: $239,147,145 .............. $242,277,425
325,633,174 .............. $356,394,492
7,040,082 .............. $6,898,497
137,464,263 .............. $121,943,063
139,172,881 .............. $130,405,184
368,555,840 .............. $367,785,147
Receivable (payable) for
policy related
transactions ................. 693,092 (1,580,927) 191,538 (6,487) 102,625 410,514
------------ ------------ ---------- ------------ ------------ ------------
Total Assets .................... 242,970,517 354,813,565 7,090,035 121,936,576 130,507,809 368,195,661
------------ ------------ ---------- ------------ ------------ ------------
LIABILITIES
Payable (receivable) for
purchases (sales) of shares of
The Hudson River Trust ....... 592,036 (1,539,689) 191,896 (6,195) 91,960 493,712
Amount retained by Equitable
Variable in Separate Account
FP (Note 6) .................. 540,010 681,389 989,756 4,706,299 475,351 482,395
------------ ------------ ---------- ------------ ------------ ------------
Total Liabilities ............... 1,132,046 (858,300) 1,181,652 4,700,104 567,311 976,107
------------ ------------ ---------- ------------ ------------ ------------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS .............. $241,838,471 $355,671,865 $5,908,383 $117,236,472 $129,940,498 $367,219,554
============ ============ ========== ============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

FSA-1
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
MONEY MARKET DIVISION
----------------------------------------
1994 1993 1992
---------- ---------- ----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $5,368,883 $4,163,389 $4,686,996
Expenses (Note 3):
Mortality and expense risk charges ................. 826,379 834,113 778,018
---------- ---------- ----------
NET INVESTMENT INCOME ................................... 4,542,504 3,329,276 3,908,978
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments ................ 95,530 (339,754) (136,115)
Realized gain distribution from
The Hudson River Trust ........................... -- -- --
---------- ---------- ----------
NET REALIZED GAIN (LOSS) ................................ 95,530 (339,754) (136,115)
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ (14,267) (224,885) (178,161)
End of period ...................................... 32,760 (14,267) (224,885)
---------- ---------- ----------
Change in unrealized appreciation (depreciation)
during the period .................................. 47,027 210,618 (46,724)
---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 142,557 (129,136) (182,839)
---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $4,685,061 $3,200,140 $3,726,139
========== ========== ==========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES DIVISION
--------------------------------------------
1994 1993 1992
------------ ----------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 5,671,984 $14,930,827 $14,839,013
Expenses (Note 3):
Mortality and expense risk charges ................. 527,675 1,470,325 1,569,627
------------ ----------- -----------
NET INVESTMENT INCOME ................................... 5,144,309 13,460,502 13,269,386
------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments ................ (10,163,976) 3,999,846 (196,985)
Realized gain distribution from
The Hudson River Trust ........................... -- 11,449,074 4,721,432
------------ ----------- -----------
NET REALIZED GAIN (LOSS) ................................ (10,163,976) 15,448,920 4,524,447
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ (1,617,237) 1,966,231 6,448,937
End of period ...................................... (2,736,863) (1,617,237) 1,966,231
------------ ----------- -----------
Change in unrealized appreciation (depreciation)
during the period .................................. (1,119,626) (3,583,468) (4,482,706)
------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (11,283,602) 11,865,452 41,741
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ (6,139,293) $25,325,954 $13,311,127
============ =========== ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
SHORT-TERM WORLD INCOME DIVISION
---------------------------------------
1994* 1993 1992
--------- --------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 81,851 $ 504,768 $ 687,929
Expenses (Note 3):
Mortality and expense risk charges ................. 2,373 27,415 33,520
--------- --------- -----------
NET INVESTMENT INCOME ................................... 79,478 477,353 654,409
--------- --------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments ................ (115,812) (645,029) (347,915)
Realized gain distribution from
The Hudson River Trust ........................... -- -- --
--------- --------- -----------
NET REALIZED GAIN (LOSS) ................................ (115,812) (645,029) (347,915)
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ (76,633) (676,871) (5,422)
End of period ...................................... -- (76,633) (676,871)
--------- --------- -----------
Change in unrealized appreciation (depreciation)
during the period .................................. 76,633 600,238 (671,449)
--------- --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (39,179) (44,791) (1,019,364)
--------- --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 40,299 $ 432,562 $ (364,955)
========= ========= ===========
<FN>
See Notes to Financial Statements.

*For the period January 1, 1994 through February 22, 1994 (date of
substitution).
</FN>
</TABLE>

FSA-2
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
HIGH YIELD DIVISION
----------------------------------------
1994 1993 1992
----------- ---------- ----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 4,578,946 $4,488,259 $4,025,728
Expenses (Note 3):
Mortality and expense risk charges ................. 305,522 285,992 248,485
----------- ---------- ----------
NET INVESTMENT INCOME ................................... 4,273,424 4,202,267 3,777,243
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. (328,199) 107,852 (813,039)
Realized gain distribution from
The Hudson River Trust ............................. -- 1,030,687 --
----------- ---------- ----------
NET REALIZED GAIN (LOSS) ................................ (328,199) 1,138,539 (813,039)
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 4,734,999 763,746 (772,587)
End of period ...................................... (873,103) 4,734,999 763,746
----------- ---------- ----------
Change in unrealized appreciation (depreciation)
during the period .................................. (5,608,102) 3,971,253 1,536,333
----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (5,936,301) 5,109,792 723,294
----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $(1,662,877) $9,312,059 $4,500,537
=========== ========== ==========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
BALANCED DIVISION
--------------------------------------------
1994 1993 1992
------------ ----------- ------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 10,557,487 $10,062,862 $ 9,484,792
Expenses (Note 3):
Mortality and expense risk charges ................. 2,103,510 2,047,811 1,728,449
------------ ----------- ------------
NET INVESTMENT INCOME ................................... 8,453,977 8,015,051 7,756,343
------------ ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. 858,164 1,446,919 870,777
Realized gain distribution from
The Hudson River Trust ............................. -- 20,280,817 21,249,123
------------ ----------- ------------
NET REALIZED GAIN (LOSS) ................................ 858,164 21,727,736 22,119,900
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 37,960,661 30,072,900 68,832,284
End of period ...................................... (2,878,875) 37,960,661 30,072,900
------------ ----------- ------------
Change in unrealized appreciation (depreciation)
during the period .................................. (40,839,536) 7,887,761 (38,759,384)
------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (39,981,372) 29,615,497 (16,639,484)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $(31,527,395) $37,630,548 $ (8,883,141)
============ =========== ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
COMMON STOCK DIVISION
---------------------------------------------
1994 1993 1992
------------ ------------ ------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 11,755,355 $ 10,311,886 $ 8,962,566
Expenses (Note 3):
Mortality and expense risk charges ................. 4,741,008 4,005,102 3,127,993
------------ ------------ ------------
NET INVESTMENT INCOME ................................... 7,014,347 6,306,784 5,834,573
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. 292,144 4,176,629 (2,382,465)
Realized gain distribution from
The Hudson River Trust ............................. 43,936,280 85,777,775 34,335,116
------------ ------------ ------------
NET REALIZED GAIN (LOSS) ................................ 44,228,424 89,954,404 31,952,651
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 71,350,568 22,647,989 46,299,874
End of period ...................................... (2,048,649) 71,350,568 22,647,989
------------ ------------ ------------
Change in unrealized appreciation (depreciation)
during the period .................................. (73,399,217) 48,702,579 (23,651,885)
------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (29,170,793) 138,656,983 8,300,766
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $(22,156,446) $144,963,767 $ 14,135,339
============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

FSA-3
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
EQUITY
INDEX
DIVISION GLOBAL DIVISION
--------- -----------------------------------------
1994* 1994 1993 1992
--------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 596,180 $ 2,768,605 $ 1,060,406 $ 392,650
Expenses (Note 3):
Mortality and expense risk charges ................. 152,789 1,211,620 466,897 216,472
--------- ----------- ----------- ----------
NET INVESTMENT INCOME ................................... 443,391 1,556,985 593,509 176,178
--------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. (6,949) 3,347,704 1,333,766 (31,023)
Realized gain distribution from
The Hudson River Trust ............................. 134,154 4,821,242 11,642,904 267,304
--------- ----------- ----------- ----------
NET REALIZED GAIN (LOSS) ................................ 127,205 8,168,946 12,976,670 236,281
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ -- 7,062,877 2,783,724 3,523,568
End of period ...................................... (399,286) 3,130,280 7,062,877 2,783,724
--------- ----------- ----------- ----------
Change in unrealized appreciation (depreciation)
during the period .................................. (399,286) (3,932,597) 4,279,153 (739,844)
--------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (272,081) 4,236,349 17,255,823 (503,563)
--------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 171,310 $ 5,793,334 $17,849,332 $ (327,385)
========= =========== =========== ==========
<FN>
See Notes to Financial Statements.

*Commencement of operations on April 1.
</FN>
</TABLE>

<TABLE>
<CAPTION>
GROWTH & INCOME
AGGRESSIVE STOCK DIVISION DIVISION
---------------------------------------------- ---------------------
1994 1993 1992 1994 1993**
------------ ------------ ------------ --------- -------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 400,102 $ 766,228 $ 1,550,129 $ 108,492 $ 3,394
Expenses (Note 3):
Mortality and expense risk charges ................. 1,944,639 1,757,109 1,620,545 19,204 1,833
------------ ------------ ------------ --------- -------
NET INVESTMENT INCOME ................................... (1,544,537) (990,881) (70,416) 89,288 1,561
------------ ------------ ------------ --------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. (6,075,250) 35,696,507 8,236,284 (11,709) (134)
Realized gain distribution from
The Hudson River Trust ............................. -- 25,339,962 25,704,106 -- --
------------ ------------ ------------ --------- -------
NET REALIZED GAIN (LOSS) ................................ (6,075,250) 61,036,469 33,940,390 (11,709) (134)
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 35,185,988 53,885,737 96,740,910 (904) --
End of period ...................................... 30,761,318 35,185,988 53,885,737 (141,585) (904)
------------ ------------ ------------ --------- -------
Change in unrealized appreciation (depreciation)
during the period .................................. (4,424,670) (18,699,749) (42,855,173) (140,681) (904)
------------ ------------ ------------ --------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (10,499,920) 42,336,720 (8,914,783) (152,390) (1,038)
------------ ------------ ------------ --------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $(12,044,457) $ 41,345,839 $ (8,985,199) $ (63,102) $ 523
============ ============ ============ ========= =======
<FN>
See Notes to Financial Statements.

**Commencement of operations on October 1.
</FN>
</TABLE>

FSA-4
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
QUALITY BOND DIVISION
----------------------------
1994 1993*
------------ -----------
<S> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 8,123,722 $ 1,221,840
Expenses (Note 3):
Mortality and expense risk charges ................. 689,178 163,308
------------ -----------
NET INVESTMENT INCOME ................................... 7,434,544 1,058,532
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. (410,697) (106)
Realized gain distribution from
The Hudson River Trust ............................. -- 130,973
------------ -----------
NET REALIZED GAIN (LOSS) ................................ (410,697) 130,867
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ (1,886,621) --
End of period ...................................... (15,521,200) (1,886,621)
------------ -----------
Change in unrealized appreciation (depreciation)
during the period .................................. (13,634,579) (1,886,621)
------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (14,045,276) (1,755,754)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ (6,610,732) $ (697,222)
============ ===========
<FN>
See Notes to Financial Statements.

*Commencement of operations on October 1.
</FN>
</TABLE>

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
-------------------------------------------
CONSERVATIVE INVESTORS DIVISION
-------------------------------------------
1994 1993 1992
------------ ---------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 6,205,574 $4,088,977 $ 3,499,270
Expenses (Note 3):
Mortality and expense risk charges ................. 750,164 551,610 345,819
------------ ---------- -----------
NET INVESTMENT INCOME ................................... 5,455,410 3,537,367 3,153,451
------------ ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. (421,502) 91,739 (10,094)
Realized gain distribution from
The Hudson River Trust ............................. -- 4,651,717 2,200,535
------------ ---------- -----------
NET REALIZED GAIN (LOSS) ................................ (421,502) 4,743,456 2,190,441
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 1,915,037 2,223,612 4,140,474
End of period ...................................... (8,767,697) 1,915,037 2,223,612
------------ ---------- -----------
Change in unrealized appreciation (depreciation)
during the period .................................. (10,682,734) (308,575) (1,916,862)
------------ ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (11,104,236) 4,434,881 273,579
------------ ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ (5,648,826) $7,972,248 $ 3,427,030
============ ========== ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
--------------------------------------------
GROWTH INVESTORS DIVISION
--------------------------------------------
1994 1993 1992
------------ ----------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Income (Note 2):
Dividends from The Hudson River Trust .............. $ 10,663,204 $ 5,922,228 $ 3,386,842
Expenses (Note 3):
Mortality and expense risk charges ................. 1,995,747 1,274,117 670,800
------------ ----------- -----------
NET INVESTMENT INCOME ................................... 8,667,457 4,648,111 2,716,042
------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Realized gain (loss) on investments .................. 241,591 52,392 187,420
Realized gain distribution from
The Hudson River Trust ............................. -- 14,624,517 7,569,846
------------ ----------- -----------
NET REALIZED GAIN (LOSS) ................................ 241,591 14,676,909 7,757,266
Unrealized appreciation (depreciation) on investments:
Beginning of period ................................ 20,567,604 12,746,740 15,687,285
End of period ...................................... (770,693) 20,567,604 12,746,740
------------ ----------- -----------
Change in unrealized appreciation (depreciation)
during the period .................................. (21,338,297) 7,820,864 (2,940,545)
------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... (21,096,706) 22,497,773 4,816,721
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $(12,429,249) $27,145,884 $ 7,532,763
============ =========== ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

FSA-5
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
MONEY MARKET DIVISION
----------------------------------------------
1994 1993 1992
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 4,542,504 $ 3,329,276 $ 3,908,978
Net realized gain (loss) ........ 95,530 (339,754) (136,115)
Change in unrealized appreciation
(depreciation) on investments . 47,027 210,618 (46,724)
------------ ------------ ------------
Net increase (decrease)
from operations ............... 4,685,061 3,200,140 3,726,139
------------ ------------ ------------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 82,536,703 64,845,505 88,068,896
Benefits and other policy related
transactions (Note 5).......... (32,432,771) (31,747,197) (38,311,621)
Net transfers among divisions ... (25,466,044) (50,510,704) (67,793,471)
------------ ------------ ------------
Net increase (decrease) from
policy related transactions ... 24,637,888 (17,412,396) (18,036,196)
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... (24,067) 92,890 (203,598)
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .. 29,298,882 (14,119,366) (14,513,655)
NET ASSETS, BEGINNING OF PERIOD .... 108,197,203 122,316,569 136,830,224
------------ ------------ ------------
NET ASSETS, END OF PERIOD .......... $137,496,085 $108,197,203 $122,316,569
============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES DIVISION
------------------------------------------------
1994 1993 1992
------------- ------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 5,144,309 $ 13,460,502 $ 13,269,386
Net realized gain (loss) ........ (10,163,976) 15,448,920 4,524,447
Change in unrealized appreciation
(depreciation) on investments . (1,119,626) (3,583,468) (4,482,706)
------------- ------------- ------------
Net increase (decrease)
from operations ............... (6,139,293) 25,325,954 13,311,127
------------- ------------- ------------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 18,915,140 26,598,113 22,081,588
Benefits and other policy related
transactions (Note 5).......... (5,813,181) (7,539,335) (8,121,103)
Net transfers among divisions ... (125,116,319) (180,916,946) 26,878,651
------------- ------------- ------------
Net increase (decrease) from
policy related transactions ... (112,014,360) (161,858,168) 40,839,136
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... 15,335 (69,330) (127,134)
------------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS .. (118,138,318) (136,601,544) 54,023,129
NET ASSETS, BEGINNING OF PERIOD .... 145,792,393 282,393,937 228,370,808
------------- ------------- ------------
NET ASSETS, END OF PERIOD .......... $ 27,654,075 $ 145,792,393 $282,393,937
============= ============= ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
SHORT-TERM WORLD INCOME DIVISION
-------------------------------------------
1994* 1993 1992
----------- ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 79,478 $ 477,353 $ 654,409
Net realized gain (loss) ........ (115,812) (645,029) (347,915)
Change in unrealized appreciation
(depreciation) on investments . 76,633 600,238 (671,449)
----------- ----------- -----------
Net increase (decrease)
from operations ............... 40,299 432,562 (364,955)
----------- ----------- -----------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 82,255 1,240,219 2,627,349
Benefits and other policy related
transactions (Note 5).......... (139,016) (822,325) (1,006,650)
Net transfers among divisions ... (2,976,927) (2,708,004) (1,657,362)
----------- ----------- -----------
Net increase (decrease) from
policy related transactions ... (3,033,688) (2,290,110) (36,663)
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... (20,398) (234,973) 149,435
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS .. (3,013,787) (2,092,521) (252,183)
NET ASSETS, BEGINNING OF PERIOD .... 3,013,787 5,106,308 5,358,491
----------- ----------- -----------
NET ASSETS, END OF PERIOD .......... $ -- $ 3,013,787 $ 5,106,308
=========== =========== ===========
<FN>
See Notes to Financial Statements.

*For the period January 1, 1994 through February 22, 1994 (date of
substitution).
</FN>
</TABLE>

FSA-6
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
HIGH YIELD DIVISION
--------------------------------------------
1994 1993 1992
------------ ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 4,273,424 $ 4,202,267 $ 3,777,243
Net realized gain (loss) ........ (328,199) 1,138,539 (813,039)
Change in unrealized appreciation
(depreciation) on investments . (5,608,102) 3,971,253 1,536,333
------------ ----------- -----------
Net increase (decrease)
from operations ............... (1,662,877) 9,312,059 4,500,537
------------ ----------- -----------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 14,287,345 10,787,763 5,370,452
Benefits and other policy related
transactions (Note 5) ......... (7,162,537) (5,179,424) (3,291,125)
Net transfers among divisions ... (11,048,174) 1,006,671 (3,898,127)
------------ ----------- -----------
Net increase (decrease) from
policy related transactions ... (3,923,366) 6,615,010 (1,818,800)
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... 16,028 (31,889) (248,594)
------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS .. (5,570,215) 15,895,180 2,433,143
NET ASSETS, BEGINNING OF PERIOD .... 55,025,116 39,129,936 36,696,793
------------ ----------- -----------
NET ASSETS, END OF PERIOD .......... $ 49,454,901 $55,025,116 $39,129,936
============ =========== ===========
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
BALANCED DIVISION
----------------------------------------------
1994 1993 1992
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 8,453,977 $ 8,015,051 $ 7,756,343
Net realized gain (loss) ........ 858,164 21,727,736 22,119,900
Change in unrealized appreciation
(depreciation) on investments . (40,839,536) 7,887,761 (38,759,384)
------------ ------------ ------------
Net increase (decrease)
from operations ............... (31,527,395) 37,630,548 (8,883,141)
------------ ------------ ------------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 70,116,900 67,351,402 63,379,628
Benefits and other policy related
transactions (Note 5) ......... (45,655,363) (44,497,967) (40,544,283)
Net transfers among divisions ... (19,954,097) (6,834,099) 6,188,919
------------ ------------ ------------
Net increase (decrease) from
policy related transactions ... 4,507,440 16,019,336 29,024,264
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... 47,322 256,506 (357,962)
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .. (26,972,633) 53,906,390 19,783,161
NET ASSETS, BEGINNING OF PERIOD .... 365,388,198 311,481,808 291,698,647
------------ ------------ ------------
NET ASSETS, END OF PERIOD .......... $338,415,565 $365,388,198 $311,481,808
============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

<TABLE>
<CAPTION>
COMMON STOCK DIVISION
----------------------------------------------
1994 1993 1992
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 7,014,347 $ 6,306,784 $ 5,834,573
Net realized gain (loss) ........ 44,228,424 89,954,404 31,952,651
Change in unrealized appreciation
(depreciation) on investments . (73,399,217) 48,702,579 (23,651,885)
------------ ------------ ------------
Net increase (decrease)
from operations ............... (22,156,446) 144,963,767 14,135,339
------------ ------------ ------------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 171,525,812 124,210,476 108,161,996
Benefits and other policy related
transactions (Note 5) ......... (93,481,219) (77,837,895) (67,400,166)
Net transfers among divisions ... 19,730,410 (9,498,455) (7,520,965)
------------ ------------ ------------
Net increase (decrease) from
policy related transactions ... 97,775,003 36,874,126 33,240,865
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... 44,948 (124,376) (264,131)
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .. 75,663,505 181,713,517 47,112,073
NET ASSETS, BEGINNING OF PERIOD .... 735,342,696 553,629,179 506,517,107
------------ ------------ ------------
NET ASSETS, END OF PERIOD .......... $811,006,201 $735,342,696 $553,629,179
============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

FSA-7
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
EQUITY
INDEX
DIVISION GLOBAL DIVISION
----------- ---------------------------------------------
1994* 1994 1993 1992
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 443,391 $ 1,556,985 $ 593,509 $ 176,178
Net realized gain (loss) ........ 127,205 8,168,946 12,976,670 236,281
Change in unrealized appreciation
(depreciation) on investments . (399,286) (3,932,597) 4,279,153 (739,844)
----------- ------------ ------------ -----------
Net increase (decrease)
from operations ............... 171,310 5,793,334 17,849,332 (327,385)
----------- ------------ ------------ -----------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 690,540 77,766,997 25,508,452 13,671,349
Benefits and other policy related
transactions (Note 5) ......... (472,818) (23,371,745) (8,931,159) (6,376,660)
Net transfers among divisions ... 30,736,505 47,610,957 59,544,080 2,213,524
----------- ------------ ------------ -----------
Net increase (decrease) from
policy related transactions ... 30,954,227 102,006,209 76,121,373 9,508,213
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... (134) (17,737) 4,085 10,523
----------- ------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS .. 31,125,403 107,781,806 93,974,790 9,191,351
NET ASSETS, BEGINNING OF PERIOD .... -- 134,056,665 40,081,875 30,890,524
----------- ------------ ------------ -----------
NET ASSETS, END OF PERIOD .......... $31,125,403 $241,838,471 $134,056,665 $40,081,875
=========== ============ ============ ===========
<FN>
See Notes to Financial Statements.

*Commencement of operations on April 1.
</FN>
</TABLE>

<TABLE>
<CAPTION>
GROWTH & INCOME
AGGRESSIVE STOCK DIVISION DIVISION
---------------------------------------------- -----------------------
1994 1993 1992 1994 1993**
------------ ------------ ------------ ---------- --------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ (1,544,537) $ (990,881) $ (70,416) $ 89,288 $ 1,561
Net realized gain (loss) ........ (6,075,250) 61,036,469 33,940,390 (11,709) (134)
Change in unrealized appreciation
(depreciation) on investments . (4,424,670) (18,699,749) (42,855,173) (140,681) (904)
------------ ------------ ------------ ---------- --------
Net increase (decrease)
from operations ............... (12,044,457) 41,345,839 (8,985,199) (63,102) 523
------------ ------------ ------------ ---------- --------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 101,932,221 77,930,596 67,361,634 2,953,965 182,381
Benefits and other policy related
transactions (Note 5) ......... (48,604,650) (39,462,340) (33,003,929) (481,430) (6,581)
Net transfers among divisions ... 4,346,636 (73,890,214) 12,011,802 3,033,230 279,153
------------ ------------ ------------ ---------- --------
Net increase (decrease) from
policy related transactions ... 57,674,207 (35,421,958) 46,369,507 5,505,765 454,953
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE IN
SEPARATE ACCOUNT FP (Note 6) .... 35,791 (2,220) (34,456) 6,113 4,131
------------ ------------ ------------ ---------- --------
INCREASE (DECREASE) IN NET ASSETS .. 45,665,541 5,921,661 37,349,852 5,448,776 459,607
NET ASSETS, BEGINNING OF PERIOD .... 310,006,324 304,084,663 266,734,811 459,607 --
------------ ------------ ------------ ---------- --------
NET ASSETS, END OF PERIOD .......... $355,671,865 $310,006,324 $304,084,663 $5,908,383 $459,607
============ ============ ============ ========== ========
<FN>
See Notes to Financial Statements.

**Commencement of operations on October 1.
</FN>
</TABLE>

FSA-8
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
---------------------------------------------
QUALITY BOND DIVISION CONSERVATIVE INVESTORS DIVISION
----------------------------- ---------------------------------------------
1994 1993* 1994 1993 1992
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 7,434,544 $ 1,058,532 $ 5,455,410 $ 3,537,367 $ 3,153,451
Net realized gain (loss) ........ (410,697) 130,867 (421,502) 4,743,456 2,190,441
Change in unrealized appreciation
(depreciation) on investments . (13,634,579) (1,886,621) (10,682,734) (308,575) (1,916,862)
------------ ------------ ------------ ------------ -----------
Net increase (decrease)
from operations ............... (6,610,732) (697,222) (5,648,826) 7,972,248 3,427,030
------------ ------------ ------------ ------------ -----------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... (850,240) 181,283 48,492,315 43,782,002 22,620,423
Benefits and other policy related
transactions (Note 5) ......... (2,891,278) (441,626) (21,612,430) (17,644,077) (9,193,400)
Net transfers among divisions ... 25,765,197 100,786,909 (2,076,793) 6,165,330 6,845,573
------------ ------------ ------------ ------------ -----------
Net increase (decrease) from
policy related transactions ... 23,724,159 100,526,566 24,803,092 32,303,255 20,272,596
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE
IN SEPARATE ACCOUNT FP (Note 6) . 255,654 38,047 22,600 18,535 (201,980)
------------ ------------ ------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS .. 17,369,081 99,867,391 19,176,866 40,294,038 23,497,646
NET ASSETS, BEGINNING OF PERIOD .... 99,867,391 -- 110,763,632 70,469,594 46,971,948
------------ ------------ ------------ ------------ -----------
NET ASSETS, END OF PERIOD .......... $117,236,472 $ 99,867,391 $129,940,498 $110,763,632 $70,469,594
============ ============ ============ ============ ===========
<FN>
See Notes to Financial Statements.

*Commencement of operations on October 1.
</FN>
</TABLE>

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
----------------------------------------------
GROWTH INVESTORS DIVISION
----------------------------------------------
1994 1993 1992
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ........... $ 8,667,457 $ 4,648,111 $ 2,716,042
Net realized gain (loss) ........ 241,591 14,676,909 7,757,266
Change in unrealized appreciation
(depreciation) on investments . (21,338,297) 7,820,864 (2,940,545)
------------ ------------ ------------
Net increase (decrease)
from operations ............... (12,429,249) 27,145,884 7,532,763
------------ ------------ ------------
FROM POLICY RELATED TRANSACTIONS:
Net premiums (Note 4) ........... 139,140,391 105,136,825 58,021,833
Benefits and other policy related
transactions (Note 5) ......... (54,863,821) (36,431,873) (20,773,734)
Net transfers among divisions ... 20,294,785 30,908,183 21,968,817
------------ ------------ ------------
Net increase (decrease) from
policy related transactions ... 104,571,355 99,613,135 59,216,916
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE VARIABLE
IN SEPARATE ACCOUNT FP (Note 6) . 15,372 (27,455) (145,201)
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS .. 92,157,478 126,731,564 66,604,478
NET ASSETS, BEGINNING OF PERIOD .... 275,062,076 148,330,512 81,726,034
------------ ------------ ------------
NET ASSETS, END OF PERIOD .......... $367,219,554 $275,062,076 $148,330,512
============ ============ ============
<FN>
See Notes to Financial Statements.
</FN>
</TABLE>

FSA-9
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

NOTES TO FINANCIAL STATEMENTS

1. Equitable Variable Life Insurance Company (Equitable Variable), a
wholly-owned subsidiary of The Equitable Life Assurance Society of the
United States (Equitable), established Separate Account FP (Account) as a
unit investment trust registered with the Securities and Exchange Commission
under the Investment Company Act of 1940. The Account consists of twelve
investment divisions: the Money Market Division, the Intermediate Government
Securities Division, the High Yield Division, the Balanced Division, the
Common Stock Division, the Global Division, the Aggressive Stock Division,
the Conservative Investors Division, the Growth Investors Division, the
Growth & Income Division, the Quality Bond Division and the Equity Index
Division. The assets in each Division are invested in shares of a designated
portfolio (Portfolio) of a mutual fund, The Hudson River Trust (the Trust).
Each Portfolio has separate investment objectives.

The Account supports the operations of Incentive Life(TM), flexible premium
variable life insurance policies, Incentive Life 2000(TM), flexible premium
variable life insurance policies, Champion 2000(TM), modified premium
variable whole life insurance policies, Survivorship 2000(TM), flexible
premium joint survivorship variable life insurance policies and SP-Flex(TM),
variable life insurance policies with additional premium option,
collectively, the Policies, and the Incentive Life 2000, Champion 2000 and
Survivorship 2000 policies are referred to as the Series 2000 Policies. All
Policies are issued by Equitable Variable. The assets of the Account are the
property of Equitable Variable. However, the portion of the Account's assets
attributable to the Policies will not be chargeable with liabilities arising
out of any other business Equitable Variable may conduct.

Under the Policies, policyowners may allocate amounts in their individual
accounts to the Divisions of the Account. Some policies permit amounts to be
allocated to options other than the Account. Net transfers out of the
Account of $35,120,632, $125,668,098 and $4,762,639 for 1994, 1993 and 1992,
respectively, are included in Net Transfers Among Divisions. The net assets
of any Division of the Account may not be less than the aggregate of the
policyowners' accounts allocated to that Division. Additional assets are set
aside in Equitable Variable's General Account to provide for (1) the
unearned portion of the monthly charges for mortality costs, and (2) other
policy benefits, as required under the state insurance law.

2. The significant accounting policies of the Account are as follows:

Investments are made in shares of the Trust and are valued at the net asset
values per share of the respective Portfolios. The net asset value is
determined by the Trust using the market or fair value of the underlying
assets of the Portfolio.

Investment transactions are recorded on the trade date. Realized gains and
losses include gains and losses on redemptions of the Trust's shares
(determined on the identified cost basis) and Trust distributions
representing the net realized gains on Trust investment transactions.

The operations of the Account are included in the consolidated Federal
income tax return of Equitable. Under the provisions of the Policies,
Equitable Variable has the right to charge the Account for Federal income
tax attributable to the Account. No charge is currently being made against
the Account for such tax since, under current tax law, Equitable Variable
pays no tax on investment income and capital gains reflected in variable
life insurance policy reserves. However, Equitable Variable retains the
right to charge for any Federal income tax incurred which is attributable to
the Account if the law is changed. Charges for state and local taxes, if
any, attributable to the Account also may be made.

Dividends are recorded as income at the end of each quarter on the
ex-dividend date. Capital gains are distributed by the Trust at the end of
each year.

3. Under the Policies, Equitable Variable assumes mortality and expense risks
and, to cover these risks, deducts charges from the assets of the Account
currently at annual rates of 0.60% of the net assets attributable to
Incentive Life, Incentive Life 2000 and Champion 2000 policyowners, 0.90% of
net assets attributable to Survivorship 2000 policyowners, and 0.85% for
SP-Flex policyowners. Under SP-Flex, Equitable Variable also deducts charges
from the assets of the Account for mortality and administrative costs of
0.60% and 0.35%, respectively, of net assets attributable to SP-Flex
policies.

Under Incentive Life and the Series 2000 Policies, mortality and
administrative costs are charged in a different manner than SP-Flex policies
(see Notes 4 and 5).

4. Before amounts are allocated to the Account for Incentive Life and the
Series 2000 Policies, Equitable Variable deducts state and local premium
taxes and either an initial policy fee (Incentive Life) or a premium sales
charge (Series 2000 Policies) from premiums. Under SP-Flex, the entire
initial premium is allocated to the Account. However, before any additional
premiums under SP-Flex are allocated to the Account, an administrative
charge is deducted.

FSA-10
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

5. The amounts attributable to Incentive Life and the Series 2000 policyowners'
accounts are charged monthly by Equitable Variable for mortality and
administrative costs. These charges are withdrawn from the Account along
with amounts for additional benefits. Under the Policies, amounts for
certain policy-related transactions (such as policy loans and surrenders)
are transferred out of the Separate Account.

6. The amount retained by Equitable Variable in the Account arise principally
from (1) contributions from Equitable Variable, and (2) that portion,
determined ratably, of the Account's investment results applicable to those
assets in the Account in excess of the net assets for the Policies. Amounts
retained by Equitable Variable are not subject to charges for mortality and
expense risks or mortality and administrative costs.

Amounts retained by Equitable Variable in the Account may be transferred at
any time by Equitable Variable to its General Account.

The following table shows the surplus contributions (withdrawals) by
investment division:

INVESTMENT DIVISION 1994 1993
------------------- ---- ----

Common Stock -- --
Money Market -- $ 1,145,000
Balanced -- --
Aggressive Stock -- --
High Yield -- 330,000
Global -- (6,895,000)
Conservative Investors -- 575,000
Growth Investors -- 130,000
Short-Term World Income $(5,165,329) --
Intermediate Government Securities -- --
Growth & Income -- 1,000,000
Quality Bond -- 5,000,000
Equity Index 200,000 --
----------- -----------
$(4,965,329) $ 1,285,000
=========== ===========

There were net withdrawals of $14,970,000 by Equitable Variable in 1992.

7. Equitable Variable has entered into a Distribution and Servicing Agreement
with Equitable and Equico Securities Inc. (Equico), whereby registered
representatives of Equico, authorized as variable life insurance agents
under applicable state insurance laws, sell the Policies. The registered
representatives are compensated on a commission basis by Equitable.

Equitable Variable also has entered into an agreement with Equitable under
which Equitable performs the administrative services related to the
Policies, including underwriting and issuance, billings and collections, and
policyowner services. There is no charge to the Account related to this
agreement.

8. On February 22, 1994, Equitable Variable, the Account and the Trust
substituted shares of the Trust's Intermediate Government Securities
Portfolio for shares of the Trust's Short-Term World Income Portfolio. The
amount transferred to Intermediate Government Securities Portfolio was
$2,192,109. The 1994 Short-Term World Income Division statement of
operations and statement of changes in net assets relate to the period from
January 1, 1994 to February 22, 1994 (date of substitution). The Short-Term
World Income Division is not available for future investments.

9. The Separate Account rates of return attributable to Incentive Life,
Incentive Life 2000 and Champion 2000 policyowners are different to
Survivorship 2000 and to SP-Flex policyowners because asset charges are
deducted at different rates under each policy (see Note 3).

The tables on the following pages show the gross and net investment returns
with respect to the Divisions for the periods shown. The net return for each
Division is based upon net assets for a policy which commences with the
beginning date of such period and is not based on the average net assets in
the Division during such period. Gross return is equal to the total return
earned by the underlying Trust investment.

FSA-11
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

RATES OF RETURN:

INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000
- -------------------
AND CHAMPION 2000*
- -----------------
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------ JANUARY 26(a) TO
MONEY MARKET DIVISION 1994 1993 1992 1991 1990 1989 1988 1987 DECEMBER 31, 1986
- --------------------- ---- ---- ---- ---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 4.02 % 3.00 % 3.56 % 6.18 % 8.24 % 9.18 % 7.32 % 6.63 % 6.05 %
Net return................ 3.39 % 2.35 % 2.94 % 5.55 % 7.59 % 8.53 % 6.68 % 5.99 % 5.47 %
</TABLE>

INTERMEDIATE
GOVERNMENT YEARS ENDED DECEMBER 31,
SECURITIES ------------------------------- APRIL 1(a) TO
DIVISION 1994 1993 1992 DECEMBER 31, 1991
- ----------- ---- ---- ---- -----------------
Gross return..... (4.37)% 10.58 % 5.60 % 12.26 %
Net return....... (4.95)% 9.88 % 4.96 % 11.60 %

SHORT-TERM YEARS ENDED DECEMBER 31,
WORLD INCOME ------------------------------- APRIL 1(a) TO
DIVISION 1994 1993 1992 DECEMBER 31, 1991
- -------- ---- ---- ---- -----------------
Gross return... -- 4.81 % (2.96)% 3.19 %
Net return..... -- 4.14 % (3.54)% 2.74 %

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------- JANUARY 26(a) TO
HIGH YIELD DIVISION 1994 1993 1992 1991 1990 1989 1988 1987 DECEMBER 31, 1986
- ------------------- ---- ---- ---- ---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. (2.79)% 23.15 % 12.31 % 24.46 % (1.12)% 5.13 % 9.73 % 4.68 % --
Net return................ (3.37)% 22.41 % 11.64 % 23.72 % (1.71)% 4.50 % 9.08 % 4.05 % --

BALANCED DIVISION
- -----------------
Gross return.............. (8.02)% 12.28 % (2.84)% 41.26 % 0.24 % 25.83 % 13.27 % (0.85)% 29.07 %
Net return................ (8.57)% 11.64 % (3.42)% 40.42 % (0.36)% 25.08 % 12.59 % (1.45)% 28.34 %

COMMON STOCK DIVISION
- ---------------------
Gross return.............. (2.14)% 24.84 % 3.22 % 37.88 % (8.12)% 25.59 % 22.43 % 7.49 % 15.65 %
Net return................ (2.73)% 24.08 % 2.60 % 37.06 % (8.67)% 24.84 % 21.70 % 6.84 % 15.01 %
</TABLE>

MARCH 31(a) TO
EQUITY INDEX DIVISION DECEMBER 31, 1994
- --------------------- ------------------
Gross return.............. 1.08 %
Net return................ 0.58 %

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------- AUGUST 31(a) TO
GLOBAL DIVISION 1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
- --------------- ---- ---- ---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 5.23 % 32.09 % (0.50)% 30.55 % (6.07)% 26.93 % 10.88 % (13.27)%
Net return................ 4.60 % 31.33 % (1.10)% 29.77 % (6.63)% 26.17 % 10.22 % (13.45)%
</TABLE>

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------- JANUARY 26(a) TO
AGGRESSIVE STOCK DIVISION 1994 1993 1992 1991 1990 1989 1988 1987 DECEMBER 31, 1986
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. (3.81)% 16.77 % (3.16)% 86.86 % 8.17 % 43.50 % 1.17 % 7.31 % 35.88 %
Net return................ (4.39)% 16.05 % (3.74)% 85.75 % 7.51 % 42.64 % 0.53 % 6.66 % 35.13 %
</TABLE>

YEAR ENDED OCTOBER 1(a) TO
GROWTH & INCOME DIVISION DECEMBER 31, 1994 DECEMBER 31, 1993
- ------------------------ ------------------ ------------------
Gross return.............. (0.58)% (0.25)%
Net return................ (1.17)% (0.41)%

YEAR ENDED OCTOBER 1(a) TO
QUALITY BOND DIVISION DECEMBER 31, 1994 DECEMBER 31, 1993
- --------------------- ----------------- -----------------
Gross return.............. (5.10)% (0.51)%
Net return................ (5.67)% (0.66)%

<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES
- ----------------------- YEARS ENDED DECEMBER 31,
CONSERVATIVE ------------------------------------------------- OCTOBER 2(a) TO
INVESTORS DIVISION 1994 1993 1992 1991 1990 DECEMBER 31, 1989
- ------------------ ---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C>
Gross return.............. (4.10)% 10.76 % 5.72 % 19.87 % 6.37 % 3.09 %
Net return................ (4.67)% 10.15 % 5.09 % 19.16 % 5.73 % 2.94 %

GROWTH INVESTORS DIVISION
- -------------------------
Gross return.............. (3.15)% 15.26 % 4.90 % 48.89 % 10.66 % 3.98 %
Net return................ (3.73)% 14.58 % 4.27 % 48.01 % 10.00 % 3.82 %
<FN>
*Sales of Incentive Life 2000 and Champion 2000 commenced on March 2, 1992.

(a) Date as of which net premiums under the policies were first allocated to the
Division. The gross return and the net return for the periods indicated are
not annual rates of return.
</FN>
</TABLE>

FSA-12
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

RATES OF RETURN:

SP-FLEX
- -------
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------ AUGUST 31(a) TO
MONEY MARKET DIVISION 1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
- --------------------- ---- ---- ---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 4.02 % 3.00 % 3.56 % 6.17 % 8.24 % 9.18 % 7.32 % 2.15 %
Net return................ 2.17 % 1.13 % 1.71 % 4.29 % 6.30 % 7.24 % 5.41 % 1.62 %
</TABLE>

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
INTERMEDIATE GOVERNMENT ----------------------------------- APRIL 1(a) TO
SECURITIES DIVISION 1994 1993 1992 DECEMBER 31, 1991
- ------------------- ---- ---- ---- ------------------
<S> <C> <C> <C> <C>
Gross return.............. (4.37)% 10.58 % 5.60 % 12.10 %
Net return................ (6.08)% 8.57 % 3.71 % 10.59 %
</TABLE>

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
SHORT-TERM ---------------------------------- APRIL 1(a) TO
WORLD INCOME DIVISION 1994 1993 1992 DECEMBER 31, 1991
- --------------------- ---- ---- ---- ------------------
<S> <C> <C> <C> <C>
Gross return.............. -- 4.81 % (2.95)% 3.20 %
Net return................ -- 2.90 % (4.69)% 1.81 %
</TABLE>

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------- AUGUST 31(a) TO
1994 1993 1992 1991 1990 1989 1988 DECEMBER 31, 1987
---- ---- ---- ---- ---- ---- ---- -----------------
HIGH YIELD DIVISION
- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. (2.79)% 23.15 % 12.31 % 24.46 % (1.12)% 5.13 % 9.73 % 1.95 %
Net return................ (4.52)% 20.96 % 10.30 % 22.25 % (2.89)% 3.26 % 7.78 % 1.39 %

BALANCED DIVISION
- -----------------
Gross return.............. (8.02)% 12.28 % (2.83)% 41.27 % 0.24 % 25.83 % 13.27 % (20.26)%
Net return................ (9.66)% 10.31 % (4.57)% 38.75 % (1.56)% 23.59 % 11.25 % (20.71)%

COMMON STOCK DIVISION
- ---------------------
Gross return.............. (2.14)% 24.84 % 3.23 % 37.87 % (8.12)% 25.59 % 22.43 % (22.57)%
Net return................ (3.88)% 22.60 % 1.38 % 35.43 % (9.76)% 23.36 % 20.26 % (23.00)%

GLOBAL DIVISION
- ---------------
Gross return.............. 5.23 % 32.09 % (0.50)% 30.55 % (6.07)% 26.93 % 10.88 % (11.40)%
Net return................ 3.36 % 29.77 % (2.28)% 28.23 % (7.75)% 24.67 % 8.90 % (11.86)%

AGGRESSIVE STOCK DIVISION
- -------------------------
Gross return.............. (3.81)% 16.77 % (3.16)% 86.86 % 8.17 % 43.50 % 1.17 % (24.28)%
Net return................ (5.53)% 14.67 % (4.89)% 83.54 % 6.23 % 40.95 % (0.66)% (24.68)%
</TABLE>

SEPTEMBER 1(a) TO
GROWTH & INCOME DIVISION DECEMBER 31, 1994
- ------------------------ ------------------
Gross return.............. (3.40)%
Net return................ (3.55)%

QUALITY BOND DIVISION
- ---------------------
Gross return.............. (2.20)%
Net return................ (2.35)%

EQUITY INDEX DIVISION
- ---------------------
Gross return.............. (2.54)%
Net return................ (2.69)%

ASSET ALLOCATION SERIES
- ----------------------- SEPTEMBER 1(a) TO
CONSERVATIVE INVESTORS DIVISION DECEMBER 31, 1994
- ------------------------------- -------------------
Gross return.................. (1.83)%
Net return.................... (1.98)%

GROWTH INVESTORS DIVISION
- -------------------------
Gross return.................. (3.16)%
Net return.................... (3.31)%

(a) Date as of which net premiums under the policies were first allocated to the
Division. The gross return and the net return for the periods indicated are
not annual rates of return.

FSA-13
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

RATES OF RETURN:
SURVIVORSHIP 2000
- -----------------
YEARS ENDED DECEMBER 31, AUGUST 17(a) TO
------------------------- DECEMBER 31,
MONEY MARKET DIVISION 1994 1993 1992
- --------------------- ---- ---- ----
Gross return.............. 4.02 % 3.00 % 1.11 %
Net return................ 3.08 % 2.04 % 0.77 %

INTERMEDIATE GOVERNMENT
SECURITIES DIVISION
- -------------------
Gross return.............. (4.37)% 10.58 % 0.90 %
Net return................ (5.23)% 9.55 % 0.56 %

SHORT-TERM
WORLD INCOME DIVISION
- ---------------------
Gross return.............. -- 4.81 % (4.34)%
Net return................ -- 3.83 % (4.66)%

HIGH YIELD DIVISION
- -------------------
Gross return.............. (2.79)% 23.15 % 1.84 %
Net return................ (3.66)% 22.04 % 1.50 %

BALANCED DIVISION
- -----------------
Gross return.............. (8.02)% 12.28 % 5.37 %
Net return................ (8.84)% 11.30 % 5.02 %

COMMON STOCK DIVISION
- ---------------------
Gross return.............. (2.14)% 24.84 % 5.28 %
Net return................ (3.02)% 23.70 % 4.93 %

GLOBAL DIVISION
- ---------------
Gross return.............. 5.23 % 32.09 % 4.87 %
Net return................ 4.29 % 30.93 % 4.52 %

AGGRESSIVE STOCK DIVISION
- -------------------------
Gross return.............. (3.81)% 16.77 % 11.49 %
Net return................ (4.68)% 15.70 % 11.11 %

YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
GROWTH & INCOME DIVISION 1994 1993
- ------------------------ ---- ----
Gross return.............. (0.58)% (0.25)%
Net return................ (1.47)% (0.48)%

QUALITY BOND DIVISION
- ---------------------
Gross return.............. (5.10)% (0.51)%
Net return................ (5.95)% (0.73)%

MARCH 1(a) TO
DECEMBER 31,
-------------
EQUITY INDEX DIVISION 1994
- --------------------- ----
Gross return.............. 1.08 %
Net return................ 0.33 %

ASSET ALLOCATION SERIES
- ----------------------- YEARS ENDED DECEMBER 31, AUGUST 17(a) TO
CONSERVATIVE ------------------------- DECEMBER 31,
INVESTORS DIVISION 1994 1993 1992
- ------------------ ---- ---- ----
Gross return.............. (4.10)% 10.76 % 1.38 %
Net return................ (4.96)% 9.81 % 1.04 %

GROWTH INVESTORS DIVISION
- -------------------------
Gross return.............. (3.15)% 15.26 % 6.89 %
Net return................ (4.02)% 14.24 % 6.53 %

(a) Date as of which net premiums under the policies were first allocated to the
Division. The gross return and the net return for the periods indicated are
not annual rates of return.

FSA-14
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors of
Equitable Variable Life Insurance Company
and Policyowners of Separate Account FP
of Equitable Variable Life Insurance Company

In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of Money Market Division,
Intermediate Government Securities Division, High Yield Division, Balanced
Division, Common Stock Division, Equity Index Division, Global Division,
Aggressive Stock Division, Growth & Income Division, Quality Bond Division,
Conservative Investors Division and Growth Investors Division, separate
investment divisions of Equitable Variable Life Insurance Company (the
"Company") Separate Account FP at December 31, 1994 and the results of each of
their operations and the changes in each of their net assets for each of the two
years in the period then ended (for Growth & Income Division for the year then
ended and for the period October 1, 1993 (commencement of operations) through
December 31, 1993, for Short-Term World Income Division for the period January
1, 1994 through February 22, 1994 (date of substitution) and the year ended
December 31, 1993 and for Equity Index Division for the period April 1, 1994
(commencement of operations) through December 31, 1994), in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of shares in The Hudson River Trust at
December 31, 1994 with the transfer agent, provide a reasonable basis for the
opinion expressed above.

PRICE WATERHOUSE LLP

New York, NY
February 8, 1995

FSA-15
<PAGE>

INDEPENDENT AUDITORS' REPORT

Equitable Variable Life Insurance Company:

We have audited the statements of operations and changes in net assets for the
year ended December 31, 1992 of the Aggressive Stock, High Yield, Global, Common
Stock, Balanced, Money Market, Conservative Investors, Growth Investors,
Intermediate Government Securities, and Short-Term World Income Divisions of
Separate Account FP of Equitable Variable Life Insurance Company. These
financial statements are the responsibility of Equitable Variable Life Insurance
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the results of operations and the changes in net assets of the
Divisions of Separate Account FP of Equitable Variable Life Insurance Company
for the year ended December 31, 1992 in conformity with generally accepted
accounting principles.

DELOITTE & TOUCHE LLP

New York, New York
February 16, 1993

FSA-16

<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1994 AND 1993
<TABLE>
<CAPTION>
1994 1993
--------- ---------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Held to maturity, at amortized cost ...................................... $ 2,008.5 $ 2,229.9
Available for sale, at estimated fair value .............................. 2,138.8 2,402.3
Policy loans ............................................................... 1,185.2 1,087.3
Mortgage loans on real estate .............................................. 888.5 1,059.5
Equity real estate ......................................................... 641.0 613.6
Other equity investments ................................................... 239.1 307.3
Other invested assets ...................................................... 107.8 87.6
--------- ---------
Total investments ........................................................ 7,208.9 7,787.5
Cash and cash equivalents ..................................................... 182.3 98.0
Deferred policy acquisition costs ............................................. 2,077.1 1,946.7
Other assets .................................................................. 240.7 214.0
Separate Accounts assets ...................................................... 3,345.3 3,048.7
--------- ---------
TOTAL ASSETS .................................................................. $13,054.3 $13,094.9
========= =========

LIABILITIES
Policyholders' account balances ............................................... $ 7,340.0 $ 7,614.7
Future policy benefits and other policyholders' liabilities ................... 509.4 475.2
Other liabilities ............................................................. 441.1 540.7
Separate Accounts liabilities ................................................. 3,314.9 3,011.6
--------- ---------
Total liabilities ........................................................ 11,605.4 11,642.2
--------- ---------
Commitments and contingencies (Notes 7, 9, 10 and 11)

SHAREHOLDER'S EQUITY
Common stock, par value $1 per share;
5.0 million shares authorized, 1.5 million shares issued and outstanding.... 1.5 1.5
Capital in excess of par value ................................................ 1,355.7 1,305.7
Retained earnings ............................................................. 165.5 129.5
Net unrealized investment (losses) gains ...................................... (72.6) 22.3
Minimum pension liability ..................................................... (1.2) (6.3)
--------- ---------
Total shareholder's equity ............................................... 1,448.9 1,452.7
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY .................................... $13,054.3 $13,094.9
========= =========
<FN>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>

F-1
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992

<TABLE>
<CAPTION>
1994 1993 1992
-------- -------- --------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee income ........ $ 552.6 $ 485.2 $ 425.0
Premiums ............................................................ 40.1 46.9 50.8
Net investment income ............................................... 526.8 557.6 574.5
Investment (losses) gains, net ...................................... (4.6) 1.5 (54.0)
Other income ........................................................ 2.9 3.0 5.5
-------- -------- --------
Total revenues .................................................... 1,117.8 1,094.2 1,001.8
-------- -------- --------

BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances ................ 389.3 439.2 510.6
Policyholders' benefits ............................................. 242.3 251.0 247.5
Other operating costs and expenses .................................. 413.8 356.7 306.5
-------- -------- --------
Total benefits and other deductions ............................ 1,045.4 1,046.9 1,064.6
-------- -------- --------
Earnings (loss) before Federal income taxes and cumulative
effect of accounting changes ........................................ 72.4 47.3 (62.8)
Federal income tax expense (benefit) ................................... 25.0 20.5 (21.6)
-------- -------- --------
Earnings (loss) before cumulative effect of accounting changes ......... 47.4 26.8 (41.2)
Cumulative effect of accounting changes, net of Federal income taxes.... (11.4) -- (22.4)
-------- -------- --------
Net Earnings (Loss) .................................................... $ 36.0 $ 26.8 $ (63.6)
======== ======== ========

<FN>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>

F-2
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
<TABLE>
<CAPTION>
1994 1993 1992
-------- -------- --------
(IN MILLIONS)
<S> <C> <C> <C>
COMMON STOCK, AT PAR VALUE:
Beginning and end of year ...................... $ 1.5 $ 1.5 $ 1.5
-------- -------- --------

CAPITAL IN EXCESS OF PAR VALUE:
Balance, beginning of year ..................... 1,305.7 1,055.7 955.7
Additional capital in excess of par value ...... 50.0 250.0 100.0
-------- -------- --------
Balance, end of year ........................... 1,355.7 1,305.7 1,055.7
-------- -------- --------

RETAINED EARNINGS:
Balance, beginning of year ..................... 129.5 102.7 166.3
Net earnings (loss) ............................ 36.0 26.8 (63.6)
-------- -------- --------
Balance, end of year ........................... 165.5 129.5 102.7
-------- -------- --------

NET UNREALIZED INVESTMENT (LOSSES) GAINS:
Balance, beginning of year ..................... 22.3 11.1 7.7
Change in unrealized investment (losses) gains.. (94.9) 11.2 3.4
-------- -------- --------
Balance, end of year ........................... (72.6) 22.3 11.1
-------- -------- --------

MINIMUM PENSION LIABILITY:
Balance, beginning of year ..................... (6.3) --
Change in minimum pension liability ............ 5.1 (6.3)
-------- --------
Balance, end of year ........................... (1.2) (6.3)
-------- --------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR ........... $1,448.9 $1,452.7 $1,171.0
======== ======== ========

<FN>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>

F-3
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
<TABLE>
<CAPTION>
1994 1993 1992
--------- --------- ---------
(IN MILLIONS)
<S> <C> <C> <C>
NET EARNINGS (LOSS) .................................................... $ 36.0 $ 26.8 $ (63.6)

ADJUSTMENTS TO RECONCILE NET EARNINGS (LOSS) TO NET CASH (USED) PROVIDED
BY OPERATING ACTIVITIES:
Investment losses (gains), net ...................................... 4.6 (1.5) 54.0
General Account policy charges ...................................... (572.8) (496.7) (412.3)
Interest credited to policyholders' account balances ................ 389.3 439.2 510.6
Other, net .......................................................... (17.2) 117.2 (95.1)
--------- --------- ---------
Net cash (used) provided by operating activities ....................... (160.1) 85.0 (6.4)
--------- --------- ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities and repayments ........................................... 511.8 1,165.8 717.7
Sales ............................................................... 2,119.0 2,844.2 1,533.5
Return of capital from joint ventures and limited partnerships ...... 14.2 56.3 68.3
Purchases ........................................................... (2,251.7) (4,414.0) (2,584.0)
Other, net .......................................................... (102.2) (98.8) (103.5)
--------- --------- ---------
Net cash provided (used) by investing activities ....................... 291.1 (446.5) (368.0)
--------- --------- ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits .......................................................... 602.8 612.9 611.3
Withdrawals ....................................................... (697.7) (506.2) (544.4)
Capital contribution from Equitable Life ............................ 50.0 250.0 100.0
Other, net .......................................................... (1.8) 2.0 --
--------- --------- ---------
Net cash (used) provided by financing activities ....................... (46.7) 358.7 166.9
--------- --------- ---------
Change in cash and cash equivalents .................................... 84.3 (2.8) (207.5)
Cash and cash equivalents, beginning of year ........................... 98.0 100.8 308.3
--------- --------- ---------
Cash and Cash Equivalents, End of Year ................................. $ 182.3 $ 98.0 $ 100.8
========= ========= =========
Supplemental cash flow information:
Interest Paid ....................................................... $ 5.7 $ 2.1
========= =========
Income Taxes Refunded ............................................... $ 8.4 $ .3 $ 8.5
========= ========= =========

<FN>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>

F-4
<PAGE>

EQUITABLE VARIABLE LIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION

Equitable Variable Life Insurance Company ("Equitable Variable Life") was
incorporated on September 11, 1972 as a wholly owned subsidiary of The
Equitable Life Assurance Society of the United States ("Equitable Life").
Equitable Variable Life's operations consist principally of the sale of
interest-sensitive life insurance and annuity products.

In accordance with Equitable Life's plan of demutualization, Equitable Life
converted to a stock life insurance company on July 22, 1992 and became a
wholly owned subsidiary of The Equitable Companies Incorporated (the
"Holding Company").

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation--The accompanying
consolidated financial statements include the accounts of Equitable Variable
Life and its non-insurance subsidiaries (collectively "EVLICO"). After July
22, 1992, EVLICO commenced to prepare its general purpose consolidated
financial statements in conformity with generally accepted accounting
principles ("GAAP") for stock life insurance companies. Such principles have
been applied retroactively in the preparation of these consolidated
financial statements for all periods prior to conversion. All significant
intercompany transactions and balances have been eliminated in
consolidation.

Certain reclassifications have been made in the amounts presented for prior
periods to conform these periods with the 1994 presentation.

Accounting Changes--In the fourth quarter of 1994 (effective as of January
1, 1994), EVLICO adopted Statement of Financial Accounting Standards
("SFAS") No. 112, "Employers' Accounting for Postemployment Benefits," which
requires employers to recognize the obligation to provide postemployment
benefits. Implementation of this statement resulted in a charge for the
cumulative effect of accounting change of $11.4 million, net of a Federal
income tax benefit of $6.2 million. The current year impact from the
implementation of this statement had no material effect on the 1994
consolidated statement of earnings.

In the first quarter of 1993, EVLICO adopted SFAS No. 113, "Accounting and
Reporting for Reinsurance of Short-Duration and Long-Duration Contracts,"
which establishes the conditions for reinsurance accounting. With the
adoption of this statement, certain reinsurance contracts were reclassified
in 1993 and are presented on a gross basis. Implementation of this statement
had no material effect on EVLICO's consolidated financial statements.

At December 31, 1993, EVLICO adopted SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities," which expands the use of fair
value accounting for those securities that a company does not have positive
intent and ability to hold to maturity. Implementation of this statement
increased consolidated shareholder's equity by $7.2 million, net of deferred
policy acquisition costs and deferred Federal income tax.

In the fourth quarter of 1992 (effective as of January 1, 1992), EVLICO
adopted SFAS No. 109, "Accounting for Income Taxes" and SFAS No. 106,
"Employers' Accounting for Postretirement Benefits Other Than Pensions." The
cumulative effect of accounting changes of $22.4 million is comprised of a
credit of $65.0 million related to the income tax statement and a charge of
$87.4 million, net of a Federal income tax benefit of $45.0 million, related
to the postretirement benefit statement.

In 1992, effective in the fourth quarter, EVLICO changed its method of
accounting for foreclosed assets to comply with AICPA Statement of Position
No. 92-3, "Accounting for Foreclosed Assets." This change resulted in a
charge of $16.1 million which is reflected in investment (losses) gains,
net.

New Accounting Pronouncements--In the first quarter of 1995, EVLICO intends
to adopt SFAS No. 114, "Accounting by Creditors for Impairment of a Loan."
This statement applies to all creditors and addresses the accounting for
impairment of a loan by specifying how allowances for credit losses should
be determined. The statement also applies to all loans that are restructured
in a troubled debt restructuring involving a modification of terms. It
requires that impaired loans that are within the scope of this statement be
measured based on the present value of expected future cash flows discounted
at the loan's effective interest rate or, as a practical expedient, at the
loan's observable market price or the fair value of the collateral if the
loan is collateral dependent. EVLICO is currently providing for impairment
of loans through an allowance for possible losses, and the implementation of
this statement is not expected to have a significant effect on the level of
this allowance. As a result, there should be no material effect on EVLICO's
consolidated statements of earnings or shareholder's equity upon adoption.

Valuation of Investments--Fixed maturities which EVLICO has both the ability
and the intent to hold to maturity are stated principally at amortized cost.
For publicly traded fixed maturities and for directly negotiated fixed
maturities, the amortized cost is adjusted for impairments in value deemed
to be other than temporary. Fixed maturities which have been identified as
available for sale are reported at estimated fair value.

F-5
<PAGE>

Mortgage loans on real estate are stated at unpaid principal balances, net
of unamortized discounts and valuation allowances. The valuation allowances
are based on losses expected by management to be realized on transfers of
mortgage loans to real estate (upon foreclosure or in-substance
foreclosure), on the disposition or settlement of mortgage loans and on
mortgage loans which management believes may not be collectible in full. In
establishing valuation allowances, management considers, among other things,
the estimated fair value of the underlying collateral.

Policy loans are stated at unpaid principal balances.

Real estate, including real estate acquired in satisfaction of debt, is
stated at depreciated cost less valuation allowances. At the date of
foreclosure (including in-substance foreclosure), real estate acquired in
satisfaction of debt is valued at estimated fair value. Valuation allowances
on real estate held for the production of income are computed using the
forecasted cash flows of the respective properties discounted at a rate
equal to EVLICO's cost of funds; valuation allowances on real estate
available for sale are computed using the lower of estimated current fair
value or depreciated cost, net of disposition cost.

Partnerships and joint venture interests in which EVLICO does not have
control and a majority economic interest are reported on the equity basis of
accounting and are included with either equity real estate or other equity
investments, as appropriate.

Equity securities, comprised of common and non-redeemable preferred stocks,
are carried at estimated fair value and are included in other equity
investments.

Short-term investments are stated at amortized cost which approximates fair
value and are included with other invested assets.

Cash and cash equivalents include cash on hand, amounts due from banks and
highly liquid debt instruments purchased with an original maturity of three
months or less.

All securities are recorded in the consolidated financial statements on a
trade date basis.

Investment Results and Unrealized Investment Gains (Losses)--Realized
investment gains and losses are determined by specific identification and
are presented as a component of revenue. Valuation allowances are netted
against the asset categories to which they apply and changes in the
valuation allowances are included in investment gains or losses.

Unrealized investment gains and losses on fixed maturities available for
sale and equity securities are accounted for as a separate component of
shareholder's equity, net of related deferred Federal income taxes and
deferred policy acquisition costs related to universal life and
investment-type products.

Recognition of Insurance Income and Related Expenses--Premiums from
universal life and investment-type contracts are reported as deposits to
policyholders' account balances. Revenues from these contracts consist of
amounts assessed during the period against policy holders' account balances
for mortality charges, policy administration charges and surrender charges.
Policy benefits and claims that are charged to expense include benefit
claims incurred in the period in excess of related policyholders' account
balances.

Premiums from life and annuity policies with life contingencies are
recognized generally as income when due. Benefits and expenses are matched
with such income so as to result in the recognition of profits over the life
of the contracts. This match is accomplished by means of the provision for
liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.

Deferred Policy Acquisition Costs--The costs of acquiring new business,
principally commissions, underwriting, agency and policy issue expenses, all
of which vary with and are primarily related to the production of new
business, are deferred. Deferred policy acquisition costs are subject to
recoverability testing at the time of policy issue and loss recognition
testing at the end of each accounting period.

For universal life products and investment-type products, deferred policy
acquisition costs are amortized over the expected average life of the
contracts (periods ranging from 15 to 35 years and 5 to 17 years,
respectively) as a constant percentage of estimated gross profits arising
principally from investment results, mortality and expense margins and
surrender charges based on historical and anticipated future experience,
updated at the end of each accounting period. The effects of revisions to
experience on previous amortization of deferred policy acquisition costs are
reflected in earnings and change in unrealized investment gains (losses) in
the period estimated gross profits are revised.

Amortization charged to income amounted to $200.2 million, $135.5 million
and $61.8 million for the years ended December 31, 1994, 1993 and 1992,
respectively.

Policyholders' Account Balances and Future Policy Benefits--EVLICO's
insurance contracts are primarily universal life and investment-type
contracts. Policyholders' account balances are equal to the policy account
values. The policy account values represent an accumulation of gross premium
payments plus credited interest less expense and mortality charges and
withdrawals.

The future policy benefit liabilities for the remainder of EVLICO's
insurance contracts, consisting primarily of supplementary contracts with
life contingencies and various policy riders, are computed by various
valuation methods based on assumed interest rates and mortality and
morbidity assumptions reflecting EVLICO's experience and industry standards.

F-6
<PAGE>

Federal Income Taxes--EVLICO is included in a consolidated Federal income
tax return with Equitable Life and its other eligible subsidiaries. In
accordance with an agreement between EVLICO and Equitable Life, the amount
of current income taxes as determined on a separate return basis will be
paid to, or received from, Equitable Life. Benefits for losses, which are
paid to EVLICO to the extent they are utilized by Equitable Life, may not
have been received in the absence of such agreement. Effective January 1,
1992, deferred income tax assets and liabilities are recognized based on the
difference between financial statement carrying amounts and income tax bases
of assets and liabilities using the enacted income tax rates and laws.

Separate Accounts--Separate Accounts are established in conformity with the
New York State Insurance Law and are generally not chargeable with
liabilities that arise from any other business of EVLICO. Separate Accounts
assets are subject to General Account claims only to the extent the value of
such assets exceeds the Separate Accounts liabilities.

Assets and liabilities of the Separate Accounts, representing net deposits
and accumulated net investment earnings less fees, held primarily for the
benefit of contractholders, are shown as separate captions in the
consolidated balance sheets. Assets held in the Separate Accounts are
carried at quoted market values or, where quoted values are not available,
at estimated fair values as determined by management.

The investment results of Separate Accounts are reflected directly in
Separate Accounts liabilities. For the years ended December 31, 1994, 1993
and 1992, investment results of Separate Accounts were $135.9 million,
$344.1 million and $52.1 million, respectively.

Deposits to Separate Accounts are reported as increases in Separate Accounts
liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges of the Separate Accounts are included
in revenues.

F-7
<PAGE>

3. INVESTMENTS

The following tables provide additional information relating to fixed
maturities and equity securities:

<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
-------- ------- ------ ----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
December 31, 1994
-----------------
Fixed Maturities:
Held to Maturity:
Corporate ................................................. $1,812.4 $ 11.9 $ 93.1 $1,731.2
U.S. Treasury securities and U.S. government
and agency securities ................................... 180.4 -- 21.7 158.7
States and political subdivisions ......................... 14.4 -- .9 13.5
Foreign governments ....................................... 1.3 .1 -- 1.4
-------- ------ ------ --------
Total Held to Maturity ...................................... $2,008.5 $ 12.0 $115.7 $1,904.8
======== ====== ====== ========
Available for Sale:
Corporate ................................................. $1,622.3 $ 5.1 $112.6 $1,514.8
Mortgage-backed ........................................... 221.9 .5 16.4 206.0
U.S. Treasury securities and U.S. government and
agency securities ....................................... 365.4 1.4 20.7 346.1
States and political subdivisions ......................... 4.8 -- .6 4.2
Foreign governments ....................................... 14.8 .2 -- 15.0
Redeemable preferred stock ................................ 58.0 .1 5.4 52.7
-------- ------ ------ --------
Total Available for Sale .................................... $2,287.2 $ 7.3 $155.7 $2,138.8
======== ====== ====== ========
Equity Securities:
Common stock ................................................ $ 42.0 $ 10.1 $ 9.4 $ 42.7
======== ====== ====== ========

December 31, 1993
-----------------
Fixed Maturities:
Held to Maturity:
Corporate ................................................. $2,056.2 $108.4 $ 8.5 $2,156.1
Mortgage-backed ........................................... 55.3 2.1 -- 57.4
U.S. Treasury securities and U.S. government and
agency securities ....................................... 22.4 1.5 -- 23.9
States and political subdivisions ......................... 85.7 3.3 .1 88.9
Foreign governments ....................................... 10.3 1.2 -- 11.5
-------- ------ ------ --------
Total Held to Maturity ...................................... $2,229.9 $116.5 $ 8.6 $2,337.8
======== ====== ====== ========
Available for Sale:
Corporate ................................................. $1,673.1 $ 55.7 $ 7.5 $1,721.3
Mortgage-backed ........................................... 444.5 14.1 .6 458.0
U.S. Treasury securities and U.S. government and
securities agency ....................................... 73.4 1.8 .3 74.9
States and political subdivisions ......................... 119.7 4.5 .3 123.9
Foreign governments ....................................... 19.6 1.5 .1 21.0
Redeemable preferred stock ................................ 5.2 -- 2.0 3.2
-------- ------ ------ --------
Total Available for Sale .................................... $2,335.5 $ 77.6 $ 10.8 $2,402.3
======== ====== ====== ========
Equity Securities:
Common stock .............................................. $ 40.6 $ 25.9 $ .2 $ 66.3
Non-redeemable preferred stock ............................ .4 .1 .2 .3
-------- ------ ------ --------
Total Equity Securities ........................................ $ 41.0 $ 26.0 $ .4 $ 66.6
======== ====== ====== ========
</TABLE>

For publicly traded fixed maturities and equity securities, estimated fair
value is determined using quoted market prices. For fixed maturities without
a readily ascertainable market value, EVLICO has determined an estimated
fair value using a discounted cash flow approach, including provisions for
credit risk, generally based upon the assumption that such securities will
be held to maturity. Estimated fair value for equity securities,
substantially all of which do not have a readily ascertainable market value,
has been determined by EVLICO. Such estimated fair values do not necessarily
represent the values for which these securities could have been sold at the
dates of the consolidated balance sheets. At December 31, 1994 and 1993,
respectively, securities without a readily ascertainable market value having
an amortized cost of $1,529.5 million and $1,738.7 million, respectively,
had estimated fair values of $1,469.5 million and $1,835.8 million,
respectively.

F-8
<PAGE>

The contractual maturity of bonds at December 31, 1994 are shown below:

<TABLE>
<CAPTION>
HELD TO MATURITY AVAILABLE FOR SALE
------------------------ ------------------------
AMORTIZED ESTIMATED AMORTIZED ESTIMATED
COST FAIR VALUE COST FAIR VALUE
--------- ---------- --------- ----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Due in one year or less ........ $ 74.9 $ 75.3 $ 136.2 $ 137.3
Due in years two through five... 756.5 739.0 593.3 579.7
Due in years six through ten.... 795.9 743.9 798.8 724.5
Due after ten years ............ 381.2 346.6 479.0 438.6
Mortgage-backed securities ..... -- -- 221.9 206.0
-------- -------- -------- --------
Total .......................... $2,008.5 $1,904.8 $2,229.2 $2,086.1
======== ======== ======== ========
</TABLE>

Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or pre-payment penalties.

Investment valuation allowances and changes thereto are shown below:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------
1994 1993 1992
------ ------- ------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year ........................ $ 87.3 $ 147.2 $100.7
Additions charged to income ........................ 12.7 44.4 75.0
Deductions for writedowns and asset dispositions.... (31.5) (104.3) (28.5)
------ ------- ------
Balances, End of Year .............................. $ 68.5 $ 87.3 $147.2
====== ======= ======

Balances, end of year comprise:
Mortgage loans on real estate ................... $ 24.0 $ 46.7 $ 60.2
Equity real estate .............................. 44.5 40.6 25.1
Fixed maturities ................................ -- -- 61.9
------ ------- ------
Total .............................................. $ 68.5 $ 87.3 $147.2
====== ======= ======
</TABLE>

Deductions for writedowns and asset dispositions for 1993 include a $20.2
million writedown of fixed maturity investments at December 31, 1993 as a
result of adopting a new accounting statement for the valuation of these
investments that requires specific writedowns instead of valuation
allowances.

At December 31, 1994, the carrying values of investments held for the
production of income which were non-income producing for the twelve months
preceding the consolidated balance sheet date were $12.4 million of fixed
maturities and $5.4 million of mortgage loans on real estate.

EVLICO's fixed maturity investment portfolio includes corporate high yield
securities consisting of public high yield bonds, redeemable preferred
stocks and directly negotiated debt in leveraged buyout transactions. EVLICO
seeks to minimize the higher than normal credit risks associated with such
securities by monitoring the total investments in any single issuer or total
investment in a particular industry group. Certain of these corporate high
yield securities are classified as other than investment grade by the
various rating agencies, i.e., a rating below Baa or an NAIC (National
Association of Insurance Commissioners) designation of 3 (medium grade), 4
or 5 (below investment grade) or 6 (in or near default). At December 31,
1994, approximately 10.6% of the $4,127.1 million aggregate amortized cost
of bonds held by EVLICO were considered to be other than investment grade.

During 1993, EVLICO sold $250.0 million of primarily privately placed below
investment grade fixed maturities to EQ Asset Trust 1993, (the "Trust"), a
limited purpose business trust, wholly owned by the Holding Company.

In addition to its holding of corporate high yield securities, EVLICO is an
equity investor in limited partnership interests which invest primarily in
securities considered to be other than investment grade.

EVLICO has restructured or modified the terms of certain fixed maturity
investments. The fixed maturity portfolio, based on amortized cost, includes
$13.3 million and $23.1 million at December 31, 1994 and 1993, respectively,
of such restructured securities. These amounts include fixed maturities
which are in default as to principal and/or interest payments, are to be
restructured pursuant to commenced negotiations or where the borrowers went
into bankruptcy subsequent to acquisition (collectively, "problem fixed
maturities") of $5.6 million and $12.4 million at December 31, 1994 and
1993, respectively. Gross interest income that would have been recorded in
accordance with the original terms of restructured fixed maturities amounted
to $1.1 million, $2.2 million and $13.7 million in 1994, 1993 and 1992,
respectively. Gross interest income on these fixed maturities included in
net investment income aggregated $1.0 million, $1.5 million and $11.3
million in 1994, 1993 and 1992, respectively.

F-9
<PAGE>

At December 31, 1994 and 1993, mortgage loans on real estate with scheduled
payments 60 days (90 days for agricultural mortgages) or more past due or in
foreclosure (collectively, "problem mortgage loans on real estate") had an
amortized cost of $35.2 million (3.9% of total mortgage loans on real
estate) and $108.6 million (9.8% of total mortgage loans on real estate),
respectively.

The payment terms of mortgage loans on real estate may from time to time be
restructured or modified. The investment in restructured mortgage loans on
real estate, based on amortized cost, amounted to $130.8 million and $147.9
million at December 31, 1994 and 1993, respectively. These amounts include
$0.0 million and $19.8 million of problem mortgage loans on real estate at
December 31, 1994 and 1993, respectively. Gross interest income on
restructured mortgage loans on real estate that would have been recorded in
accordance with the original terms of such loans amounted to $12.3 million,
$13.9 million and $14.1 million in 1994, 1993 and 1992, respectively. Gross
interest income on these loans included in net investment income aggregated
$11.4 million, $11.5 million and $12.3 million in 1994, 1993 and 1992,
respectively.

EVLICO's investment in equity real estate is through direct ownership and
through investments in real estate joint ventures. At December 31, 1994 and
1993, the carrying value of equity real estate available for sale amounted
to $138.4 million and $92.2 million, respectively. At December 31, 1994 and
1993, EVLICO owned $230.5 million and $190.9 million, respectively, of real
estate acquired in satisfaction of debt.

Depreciation on real estate is computed using the straight-line method over
the estimated useful lives of the properties, which generally range from 40
to 50 years. Accumulated depreciation on real estate was $51.1 million and
$39.1 million at December 31, 1994 and 1993, respectively. Depreciation
expense on real estate totaled $12.7 million, $11.6 million and $5.9 million
for the years ended December 31, 1994, 1993 and 1992, respectively.

4. JOINT VENTURES AND PARTNERSHIPS

Summarized combined financial information of real estate joint ventures (12
and 14 individual ventures as of December 31, 1994 and 1993, respectively)
and of other limited partnership interests accounted for under the equity
method, in which EVLICO has an investment of $10.0 million or greater and an
equity interest of 10% or greater is as follows:

<TABLE>
<CAPTION>
DECEMBER 31,
----------------------
1994 1993
-------- --------
(IN MILLIONS)
<S> <C> <C>
FINANCIAL POSITION
Investments in real estate, at depreciated cost ................................. $1,047.0 $1,034.6
Investments in securities, generally at estimated fair value .................... 3,061.2 3,623.6
Cash and cash equivalents ....................................................... 46.4 98.1
Other assets .................................................................... 261.9 486.4
-------- --------
Total assets .................................................................... 4,416.5 5,242.7
-------- --------
Funds borrowed -- third party ................................................... 1,233.6 1,254.6
Other liabilities ............................................................... 611.0 674.8
-------- --------
Total liabilities ............................................................... 1,844.6 1,929.4
-------- --------
Partners' Capital ............................................................... $2,571.9 $3,313.3
======== ========
Equity in partners' capital included above ...................................... $ 327.3 $ 375.4
Equity in limited partnership interests not included above ...................... 50.4 57.6
Excess of equity in partners' capital over investment cost and equity earnings... 3.7 --
Negative equity in certain joint ventures presented as other liabilities ........ -- .8
-------- --------
Carrying Value .................................................................. $ 381.4 $ 433.8
======== ========
</TABLE>

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------
1994 1993 1992
------- ------- -------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures ...................................... $ 180.1 $ 136.6 $ 183.1
Revenues of other limited partnership interests ............................. 102.5 318.9 150.3
Interest expense -- third party ............................................. (88.1) (79.7) (12.1)
Other expenses .............................................................. (172.4) (132.7) (156.1)
------- ------- -------
Net Earnings ................................................................ $ 22.1 $ 243.1 $ 165.2
======= ======= =======
Equity in net earnings included above ....................................... $ 11.7 $ 34.0 $ 26.1
Equity in net earnings of limited partnership interests not included above... 6.3 12.0 15.8
Excess of earnings in joint ventures over equity ownership percentage and
amortization of differences in bases ..................................... (1.1) (.1) (.1)
------- ------- -------
Total Equity in Net Earnings ................................................ $ 16.9 $ 45.9 $ 41.8
======= ======= =======
</TABLE>

F-10
<PAGE>

5. NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)

The sources of net investment income are summarized as follows:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------
1994 1993 1992
------ ------ ------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities ..................... $331.4 $319.9 $310.1
Mortgage loans on real estate ........ 86.7 105.7 132.5
Equity real estate ................... 67.0 69.8 23.0
Policy loans ......................... 79.5 76.1 70.9
Other equity investments ............. 13.4 38.5 32.8
Other investment income .............. 24.5 17.0 36.9
------ ------ ------
Gross investment income .............. 602.5 627.0 606.2
Investment expenses .................. 75.7 69.4 31.7
------ ------ ------
Net Investment Income ................ $526.8 $557.6 $574.5
====== ====== ======
</TABLE>

Investment (losses) gains, net, including changes in valuation allowances,
are summarized as follows:

<TABLE>
<CAPTION>
1994 1993 1992
------ ------ ------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities ..................... $ (6.8) $ 45.1 $ 2.6
Mortgage loans on real estate ........ (13.3) (32.0) (38.8)
Equity real estate ................... (5.3) (13.4) (21.0)
Other equity investments ............. 20.8 1.8 3.2
------ ------ ------
Investment (Losses) Gains, Net ....... $ (4.6) $ 1.5 $(54.0)
====== ====== ======
</TABLE>

Gross gains of $42.6 million, $66.2 million and $34.3 million and gross
losses of $41.2 million, $66.5 million and $31.3 million were realized on
sales of investments in fixed maturities for the years ended December 31,
1994, 1993 and 1992, respectively. In addition, writedowns of fixed
maturities amounted to $8.2 million, $1.4 million and $5.6 million for the
years ended December 31, 1994, 1993 and 1992, respectively.

For the year ended December 31, 1994, proceeds received on sales of fixed
maturities classified as available for sale amounted to $2,065.1 million.
Gross gains of $21.2 million and gross losses of $28.1 million were realized
on these sales. The increase in unrealized investment losses related to
fixed maturities classified as available for sale for the year ended
December 31, 1994 amounted to $215.2 million.

During the year ended December 31, 1994, one security classified as held to
maturity was sold and two securities so classified were transferred to the
available for sale portfolio. These actions were taken as a result of a
significant deterioration in creditworthiness. The amortized cost of the
security sold was $9.9 million with a related investment gain of $.4 million
recognized; the aggregate amortized cost of the securities transferred was
$13.2 million with gross unrealized investment losses of $4.0 million
charged to consolidated shareholder's equity.

F-11
<PAGE>

The unrealized investment (losses) gains, included in the consolidated
balance sheets as a component of equity, and the changes for the
corresponding years are summarized as follows:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------
1994 1993 1992
------- ------ -----
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year ........................................ $ 22.3 $ 11.1 $ 7.7
Changes in unrealized investment (losses) gains ................... (241.8) 3.4 5.1
Effect of adopting SFAS No. 115 ................................... -- 72.2 --
Changes in unrealized investment (gains) losses attributable to:
Deferred policy acquisition costs .............................. 95.8 (58.2) --
Deferred Federal income taxes .................................. 51.1 (6.2) (1.7)
------- ------ -----
Balance, End of Year .............................................. $ (72.6) $ 22.3 $11.1
======= ====== =====
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities ............................................. $(148.4) $ 66.8 $(3.5)
Other equity investments ..................................... .7 25.6 20.3
Other ........................................................ (1.7) -- --
------- ------ -----
Total .......................................................... (149.4) 92.4 16.8
Amounts of unrealized investment (gains) losses attributable to:
Deferred policy acquisition costs ............................ 37.6 (58.2) --
Deferred Federal income taxes ................................ 39.2 (11.9) (5.7)
------- ------ -----
Total ............................................................. $ (72.6) $ 22.3 $11.1
======= ====== =====
</TABLE>

6. FEDERAL INCOME TAXES

A summary of the Federal income tax expense (benefit) in the consolidated
statements of earnings is shown below:

1994 1993 1992
------ ------ ------
(IN MILLIONS)
Federal income tax expense (benefit):
Current .......................... $ (1.4) $ (3.4) $(11.3)
Deferred ......................... 26.4 23.9 (10.3)
------ ------ ------
Total ............................... $(25.0) $(20.5) $(21.6)
====== ====== ======

The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings (loss)
from operations before Federal income taxes by the expected Federal income
tax rate (35% for 1994 and 1993 and 34% for 1992).

The sources of the difference and the tax effects of each are as follows:

<TABLE>
<CAPTION>
1994 1993 1992
----- ----- ------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense (benefit).... $25.3 $16.6 $(21.4)
Tax rate adjustment ............................. -- 4.0 --
Other ........................................... (.3) (.1) (.2)
----- ----- ------
Federal Income Tax Expense (Benefit) ............ $25.0 $20.5 $(21.6)
===== ===== ======
</TABLE>

The components of the net deferred income tax liability are as follows:

<TABLE>
<CAPTION>
DECEMBER 31, 1994 DECEMBER 31, 1993
----------------------- ---------------------
ASSETS LIABILITIES ASSETS LIABILITIES
------ ----------- ------ -----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Deferred policy acquisition costs, reserves and reinsurance................ $ -- $250.6 $ -- $262.0
Investments................................................................ 38.4 -- 13.4 --
Compensation and related benefits.......................................... 52.2 -- 48.8 --
Other...................................................................... 25.6 -- 37.3 --
------ ------ ----- ------
Total...................................................................... $116.2 $250.6 $99.5 $262.0
====== ====== ===== ======
</TABLE>

F-12
<PAGE>

The deferred Federal income tax expense (benefit) impacting operations
reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. The sources of these temporary
differences and the tax effects of each are as follows:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------
1994 1993 1992
------ ----- ------
(IN MILLIONS)
<S> <C> <C> <C>
Deferred policy acquisition costs, reserves and reinsurance.... $(11.4) $(6.8) $ 1.8
Investments ................................................... 26.1 11.4 (18.6)
Compensation and related benefits ............................. (2.8) 1.9 --
Other ......................................................... 14.5 17.4 6.5
------ ----- ------
Deferred Federal Income Tax Expense (Benefit) ................. $ 26.4 $23.9 $(10.3)
====== ===== ======
</TABLE>

At December 31, 1994, EVLICO had net operating loss carryforwards for tax
purposes approximating $62.7 million which expire in 2002 through 2007.
These loss carryforwards are available to offset future tax payments to
Equitable Life under the tax sharing agreement.

7. REINSURANCE AGREEMENTS

EVLICO cedes reinsurance to other insurance companies. EVLICO evaluates the
financial condition of its reinsurers to minimize its exposure to
significant losses from reinsurer insolvencies. The effect of reinsurance is
summarized as follows:

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------
1994 1993
----- -----
(IN MILLIONS)
<S> <C> <C>
Direct premiums ...................................................... $40.2 $47.0
Reinsurance ceded .................................................... (.1) (.1)
----- -----
Premiums ............................................................. $40.1 $46.9
===== =====
Universal Life and Investment-type Product Policy Fee Income Ceded.... $24.9 $26.0
===== =====
Policyholders' Benefits Ceded ........................................ $ 8.3 $14.5
===== =====
</TABLE>

EVLICO reinsures mortality risks in excess of $5.0 million on any single
life. EVLICO also reinsures the entire risk on certain substandard
underwriting risks as well as in certain other cases.

8. RELATED PARTY TRANSACTIONS

Under a cost sharing agreement, EVLICO reimburses Equitable Life for its use
of Equitable Life's personnel, property and facilities in carrying out
certain of its operations. Reimbursement for intercompany services is based
on the allocated cost of the services provided. The incurred balances of
these intercompany transactions, which are included in other operating costs
and expenses are as follows:

YEARS ENDED DECEMBER 31,
----------------------------------
1994 1993 1992
------ ------ ------
(IN MILLIONS)
Personnel and facilities .......... $257.9 $252.7 $273.7
Agent commissions and fees ........ 122.6 103.0 101.2

These cost allocations include various employee related obligations for
pensions and postretirement benefits. At December 31, 1994, EVLICO recorded
as a reduction of shareholder's equity its allocated portion of an
additional minimum pension liability of $1.2 million, net of related Federal
income taxes, representing the excess of the accumulated benefit obligation
over the fair value of plan assets and accrued pension liability.

During 1994, 1993 and 1992, Equitable Life restructured certain operations
in connection with cost reduction programs. EVLICO recorded provisions of
$6.9 million, $17.3 million and $9.5 million in 1994, 1993 and 1992,
respectively, relating primarily to allocated lease obligations (net of
sub-lease rentals) and severance liabilities.

EVLICO incurred investment advisory and asset management fee expenses of
$19.2 million, $16.0 million and $15.6 million during 1994, 1993 and 1992,
respectively.

EVLICO and Equitable Life have an agreement whereby certain Equitable Life
policyholders may purchase EVLICO's policies without presenting evidence of
insurability. Under the agreement, Equitable Life pays EVLICO a conversion
charge for the extra mortality risk associated with issuing these policies.
EVLICO received payments of $3.2 million, $3.1 million and $3.9 million in
1994, 1993 and 1992, respectively, which were reported as other income.

F-13
<PAGE>

On August 31, 1993, EVLICO sold $250.0 million of primarily privately placed
below investment grade fixed maturities to the Trust. EVLICO realized a $1.1
million gain, net of related deferred policy acquisition costs and deferred
Federal income taxes. In conjunction with this transaction, EVLICO received
$75.4 million of Class B notes issued by the Trust. These notes have
interest rates ranging from 6.85% to 9.45%. The Class B notes are classified
as other invested assets on the consolidated balance sheets.

Net amounts payable to Equitable Life were $226.7 million and $195.4 million
at December 31, 1994 and 1993, respectively.

9. DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS

Derivatives--EVLICO primarily uses derivatives for asset/liability risk
management and for hedging individual securities. Derivatives mainly are
utilized to reduce EVLICO's exposure to interest rate fluctuations.
Accounting for interest swap transactions is on an accrual basis. Gains and
losses related to hedge transactions are amortized as yield adjustments for
the remaining life of the underlying hedged item. Income and expense
resulting from derivative activities are reflected in net investment income.
The notional amount of matched interest rate swaps outstanding at December
31, 1994 was $704.7 million. The average unexpired terms at December 31,
1994 is 3.0 years. At December 31, 1994, the cost of terminating outstanding
matched swaps in a loss position was $34.2 million and the unrealized gain
on outstanding matched swaps in a gain position was $4.9 million. EVLICO has
no intention of terminating these contracts prior to maturity.

Fair Value of Financial Instruments--EVLICO defines fair value as the quoted
market prices for those instruments that are actively traded in financial
markets. In cases where quoted market prices are not available, fair values
are estimated using present value or other valuation techniques. The fair
value estimates are made at a specific point in time, based on available
market information and judgments about the financial instrument, including
estimates of timing, amount of expected future cash flows and the credit
standing of counterparties. Such estimates do not reflect any premium or
discount that could result from offering for sale at one time EVLICO's
entire holdings of a particular financial instrument, nor do they consider
the tax impact of the realization of unrealized gains or losses. In many
cases, the fair value estimates cannot be substantiated by comparison to
independent markets, nor can the disclosed value be realized in immediate
settlement of the instrument.

Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts. Fair
market value of off-balance-sheet financial instruments of EVLICO was not
material at December 31, 1994 and 1993.

Fair value for mortgage loans on real estate is estimated by discounting
future contractual cash flows using interest rates at which loans with
similar characteristics and credit quality would be made. Fair values for
foreclosed mortgage loans and problem mortgage loans are limited to the
estimated fair value of the underlying collateral if lower.

The estimated fair values for single premium deferred annuities ("SPDA") are
estimated using projected cash flows discounted at current offering rates.
The estimated fair values for supplementary contracts not involving life
contingencies ("SCNILC") and annuities certain are derived using discounted
cash flows based upon the estimated current offering rate.

The following table discloses carrying value and estimated fair value for
financial instruments not otherwise disclosed in Note 3:

<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------
1994 1993
---------------------- ----------------------
CARRYING ESTIMATED CARRYING ESTIMATED
VALUE FAIR VALUE VALUE FAIR VALUE
-------- -------- -------- --------
(IN MILLIONS)
Consolidated Financial Instruments:
----------------------------------
<S> <C> <C> <C> <C>
Mortgage loans on real estate ...... $ 888.5 $ 865.3 $1,059.5 $1,101.7
Other joint ventures ............... 196.4 196.4 240.7 240.7
Policy loans ....................... 1,185.2 1,138.7 1,087.3 1,155.3
Policyholders' account balances:
SPDA ............................ 1,744.3 1,732.7 2,129.5 2,143.0
Annuity certain and SCNILC ...... 159.0 151.3 157.4 160.6
</TABLE>

10. COMMITMENTS AND CONTINGENT LIABILITIES

EVLICO is the obligor under certain structured settlement agreements which
it has entered into with unaffiliated insurance companies and beneficiaries.
To satisfy its obligations under these agreements, EVLICO has purchased
single premium annuities from Equitable Life and directed Equitable Life to
make payments directly to the beneficiaries. A contingent liability exists
with respect to these agreements should Equitable Life be unable to meet its
obligations. Management believes the need to satisfy such obligations is
remote.

EVLICO had outstanding commitments of $1.3 million at December 31, 1994
under existing loan or loan commitment agreements.

F-14
<PAGE>

11. LITIGATION

EVLICO is a defendant in connection with various legal actions and
proceedings of a character normally incident to its business. Some of the
actions and proceedings have been brought on behalf of various alleged
classes of claimants and certain of these claimants seek damages of
unspecified amounts. While the ultimate outcome of such litigation cannot be
predicted with certainty, management believes, after consultation with
counsel responsible for such litigation, that the resolution of these
actions and proceedings will not result in losses that would have a material
effect on the consolidated financial statements.

12. STATUTORY FINANCIAL INFORMATION

EVLICO is restricted as to the amounts it may pay as dividends to Equitable
Life. Under the New York Insurance Law, the New York Superintendent has
broad discretion to determine whether the financial condition of a stock
life insurance company would support the payment of dividends to its
shareholders. The New York Insurance Department has established informal
guidelines for the Superintendent's determinations which focus upon, among
other things, the overall financial condition and profitability of the
insurer under statutory accounting practices. For the years ended December
31, 1994, 1993 and 1992, statutory earnings (loss) totaled $27.3 million,
$(88.4) million and $(32.7) million, respectively. No amounts are expected
to be available for dividends from EVLICO to Equitable Life in 1995.

At December 31, 1994, EVLICO, in accordance with various government and
state regulations, had $3.4 million of securities deposited with such
government or state agencies.

Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from GAAP. The following reconciles EVLICO's net change in
statutory surplus and capital stock and statutory surplus and capital stock
determined in accordance with accounting practices prescribed by the New
York Insurance Department with net earnings (loss) and shareholder's equity
on a GAAP basis.

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------
1994 1993 1992
-------- -------- --------
(IN MILLIONS)
<S> <C> <C> <C>
Net change in statutory surplus and capital stock ............................. $ 64.8 $ 184.4 $ 39.7
Change in asset valuation reserves ............................................ 18.5 26.0 10.6
-------- -------- --------
Net change in statutory surplus, capital stock and asset valuation reserves.... 83.3 210.4 50.3
Adjustments:
Future policy benefits and policyholders' account balances ................. (13.5) (22.5) (46.2)
Initial fee liability ...................................................... (20.3) (11.6) (13.3)
Deferred policy acquisition costs .......................................... 34.7 62.2 131.5
Deferred Federal income taxes .............................................. (20.2) (23.9) 120.3
Valuation of investments ................................................... 27.4 33.8 (27.8)
Limited risk reinsurance ................................................... .1 (5.4) (41.7)
Contribution from Equitable Life ........................................... (50.0) (250.0) (100.0)
Other, net ................................................................. (5.5) 33.8 (136.7)
-------- -------- --------
Net Earnings (Loss) ........................................................... $ 36.0 $ 26.8 $ (63.6)
======== ======== ========
Statutory surplus and capital stock ........................................... $ 777.6 $ 712.7 $ 528.3
Asset valuation reserves ...................................................... 88.3 69.8 43.8
-------- -------- --------
Statutory surplus, capital stock and asset valuation reserves ................. 865.9 782.5 572.1
Adjustments:
Future policy benefits and policyholders' account balances ................. (354.5) (341.1) (318.6)
Initial fee liability ...................................................... (200.5) (180.3) (168.7)
Deferred policy acquisition costs .......................................... 2,077.1 1,946.7 1,942.7
Deferred Federal income taxes .............................................. (134.4) (159.5) (136.0)
Valuation of investments ................................................... (156.5) 57.4 (105.3)
Limited risk reinsurance ................................................... (378.6) (378.7) (373.3)
Post retirement and other pension liabilities .............................. (105.8) (122.7) (132.4)
Other, net ................................................................. (163.8) (151.6) (109.5)
-------- -------- --------
Shareholder's Equity .......................................................... $1,448.9 $1,452.7 $1,171.0
======== ======== ========
</TABLE>

13. SUPPLEMENTAL CASH FLOW INFORMATION

For the years ended December 31, 1994, 1993 and 1992, respectively, real
estate of $59.0 million, $92.1 million and $17.5 million was acquired in
satisfaction of debt.

F-15
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of Equitable Variable Life Insurance
Company

In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and of cash flows
present fairly, in all material respects, the financial position of Equitable
Variable Life Insurance Company and its subsidiaries ("EVLICO") at December 31,
1994 and 1993, and the results of their operations and their cash flows for the
years then ended in conformity with generally accepted accounting principles.
These financial statements are the responsibility of EVLICO's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.

As discussed in Note 2 to the consolidated financial statements, EVLICO changed
its methods of accounting for postemployment benefits in 1994 and for investment
securities and for reinsurance in 1993.

PRICE WATERHOUSE LLP
New York, New York
February 8, 1995

F-16
<PAGE>

INDEPENDENT AUDITORS' REPORT

The Board of Directors of Equitable Variable Life Insurance Company:

We have audited the consolidated statements of earnings, shareholder's equity
and cash flows of Equitable Variable Life Insurance Company ("EVLICO") for the
year ended December 31, 1992. These consolidated financial statements are the
responsibility of EVLICO's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all
material respects, the consolidated results of operations and consolidated cash
flows of Equitable Variable Life Insurance Company for the year ended December
31, 1992 in conformity with generally accepted accounting principles.

As discussed in Note 2 to the consolidated financial statements, in 1992 EVLICO
changed its method of accounting for foreclosed assets, income taxes and
postretirement benefits other than pensions.

DELOITTE & TOUCHE LLP
New York, New York
February 16, 1993

F-17

<PAGE>

APPENDIX A

COMMUNICATING PERFORMANCE DATA

In reports or other communications to policyowners or in advertising material,
we may describe general economic and market conditions affecting the Separate
Account and the Trust and may compare the performance or ranking of the Separate
Account Funds and Trust portfolios with (1) that of other insurance company
separate accounts or mutual funds included in the rankings prepared by Lipper
Analytical Services, Inc., Morningstar, Inc. or similar investment services that
monitor the performance of insurance company separate accounts or mutual funds,
(2) other appropriate indices of investment securities and averages for peer
universes of funds, or (3) data developed by us derived from such indices or
averages. Advertisements or other communications furnished to present or
prospective policyowners may also include evaluations of a Separate Account Fund
or Trust portfolio by financial publications that are nationally recognized such
as Barron's, Morningstar's Variable Annuities / Life, Business Week, Forbes,
Fortune, Institutional Investor, Money, Kiplinger's Personal Finance, Financial
Planning, Investment Adviser, Investment Management Weekly, Money Management
Letter, Investment Dealers Digest, National Underwriter, Pension & Investments,
USA Today, Investor's Daily, The New York Times, The Wall Street Journal, the
Los Angeles Times and the Chicago Tribune.

Performance data for peer universes of funds with similar investment objectives
are compiled by Lipper Analytical Services, Inc. (Lipper) in its Lipper Variable
Insurance Products Performance Analysis Service (Lipper Survey) and Morningstar,
Inc. in the Morningstar Variable Annuity / Life Report (Morningstar Report).

The Lipper Survey records performance data as reported to it by over 800 funds
underlying variable annuity and life insurance products. The Lipper Survey
divides these actively managed funds into 25 categories by portfolio objectives.
The Lipper Survey contains two different universes, which differ in terms of the
types of fees reflected in performance data. The "Separate Account" universe
reports performance data net of investment management fees, direct operating
expenses and asset-based charges applicable under variable insurance and annuity
contracts. The "Mutual Fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects
asset-based charges that relate only to the underlying mutual fund.

The Morningstar Report consists of nearly 700 variable life and annuity funds,
all of which report their data net of investment management fees, direct
operating expenses and separate account level charges.

LONG-TERM MARKET TRENDS

As a tool for understanding how different investment strategies may affect
long-term results, it may be useful to consider the historical returns on
different types of assets. The following chart presents historical return trends
for various types of securities. The information presented, while not directly
related to the performance of the Funds of the Separate Account or the Trust
portfolios, may help to provide a perspective on the potential returns of
different asset classes over different periods of time. By combining this
information with your knowledge of your own financial needs, you may be able to
better determine how you wish to allocate your Incentive Life 2000 premiums.

Historically, the investment performance of common stocks over the long term has
generally been superior to that of long or short-term debt securities, although
common stocks have been subject to more dramatic changes in value over short
periods of time. The Common Stock Fund of the Separate Account may, therefore,
be a desirable selection for policyowners who are willing to accept such risks.
Policyowners who have a need to limit short-term risk, may find it preferable to
allocate a smaller percentage of their net premiums to those funds that invest
primarily in common stock. Any investment in securities, whether equity or debt,
involves varying degrees of potential risk, in addition to offering varying
degrees of potential reward.

The chart on page A-2 illustrates the average annual compound rates of return
over selected time periods between December 31, 1925 and December 31, 1994 for
common stocks, long-term government bonds, long-term corporate bonds,
intermediate-term government bonds and Treasury Bills. The Consumer Price Index
is shown as a measure of inflation for comparison purposes. The average annual
returns assume the reinvestment of dividends, capital gains and interest.

The information presented is an historical record of unmanaged groups of
securities and is neither an estimate nor a guarantee of future results. In
addition, investment management fees and expenses and charges associated with a
variable life insurance policy, are not reflected.

The rates of return illustrated do not represent returns of the Separate Account
or the Trust and do not constitute a representation that the performance of the
Separate Account Funds or the Trust portfolios will correspond to rates of
return such as those illustrated in the chart. For a comparative illustration of
performance results of The Hudson River Trust, see page A-1 of the Trust's
prospectus.

A-1
<PAGE>

AVERAGE ANNUAL RATES OF RETURN

LONG-TERM LONG-TERM INTERMEDIATE- CONSUMER
COMMON GOVERNMENT CORPORATE TERM TREASURY PRICE
STOCKS BONDS BONDS BONDS BILLS INDEX
------ ----- ----- ----- ----- -----

FOR THE
FOLLOWING
PERIODS ENDING
12/31/94:
- ---------
<S> <C> <C> <C> <C> <C> <C>
1 year................. 1.31 -7.77 -5.76 -5.14 3.90 2.78
3 years................ 6.26 5.62 5.28 4.19 3.43 2.81
5 years................ 8.69 8.34 8.36 7.46 4.73 3.51
10 years................ 14.40 11.86 11.57 9.40 5.76 3.59
20 years................ 14.58 9.42 10.00 9.25 7.29 5.45
30 years................ 9.95 6.96 7.31 7.84 6.66 5.36
40 years................ 10.66 5.62 6.14 6.58 5.63 4.40
50 years................ 11.92 4.99 5.34 5.59 4.69 4.35
60 years................ 11.48 4.81 5.21 5.19 3.92 4.10
Since 1926.............. 10.19 4.83 5.41 5.09 3.69 3.13
Inflation Adjusted
Since 1926.............. 6.85 1.65 2.22 1.91 0.55 --
- ----------
</TABLE>

*Source: Ibbotson, Roger G. and Rex A. Sinquefield, STOCKS, BONDS, BILLS, AND
INFLATION (SBBI), 1982, updated in STOCKS, BONDS, BILLS, AND INFLATION 1995
YEARBOOK (TM), Ibbotson Associates, Inc., Chicago. All rights reserved.

Common Stocks (S&P 500) -- Standard and Poor's Composite Index, an unmanaged
weighted index of the stock performance of 500 industrial, transportation,
utility and financial companies.

Long-term Government Bonds -- Measured using a one-bond portfolio constructed
each year containing a bond with approximately a twenty year maturity and a
reasonably current coupon.

Long-term Corporate Bonds -- For the period 1969-1994, represented by the
Salomon Brothers Long-Term, High-Grade Corporate Bond Index; for the period
1946-1968, the Salomon Brothers' Index was backdated using Salomon Brothers'
monthly yield data and a methodology similar to that used by Salomon for
1969-1994; for the period 1926-1945, the Standard and Poor's monthly High-Grade
Corporate Composite yield data were used, assuming a 4 percent coupon and a
twenty year maturity.

Intermediate-term Government Bonds -- Measured by a one-bond portfolio
constructed each year containing a bond with approximately a five year
maturity.

U.S. Treasury Bills -- Measured by rolling over each month a one-bill portfolio
containing, at the beginning of each month, the bill having the shortest
maturity not less than one month.

Inflation -- Measured by the Consumer Price Index for all Urban Consumers
(CPI-U), not seasonally adjusted.

A-2
<PAGE>

APPENDIX B

MANAGEMENT

Here is a list of our directors and principal officers and a brief statement of
their business experience for the past five years. Unless otherwise noted, the
following persons have been involved in the management of Equitable and its
subsidiaries in various positions for the last five years. Unless otherwise
noted, their address is 787 Seventh Avenue, New York, New York 10019.
<TABLE>
<CAPTION>

NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------- ----------------------
DIRECTORS
<S> <C>
Michel Beaulieu..................... Director of Equitable Variable since February 1992. Senior Vice President,
Equitable, since September 1991; prior thereto, Chief Life Actuary AXA group 1989 to 1991;
Managing Director Blondeau & CIE (France) 1986 to 1989. Director, Equity & Law (London).

William T. McCaffrey................ Director of Equitable Variable since February 1987. Executive Vice President,
Equitable, since February 1986 and Chief Administrative Officer since February 1988;
prior thereto, various other Equitable positions. Director, Equitable Foundation since
September 1986.

Christophe Dupont-Madinier.......... Director of Equitable Variable since February 1993. Senior Vice President, AXA
(Paris, France), since 1988. Director, Donaldson, Lufkin & Jenrette, Inc.; Alliance
Capital Management Corporation, Equitable Real Estate Investment Management, Inc.

Jose S. Suquet...................... Director of Equitable Variable since January 1995. Executive Vice President and
Chief Agency Officer, Equitable, since August 1994; prior thereto, Agency Manager, Equitable,
since February 1985.

Laurent Clamagirand................. Director of Equitable Variable since February 1995; Director of Financial
Reporting, Equitable, since November 1994; prior thereto, International Controller, AXA,
January 1990 to October 1994; Director, Equitable of Colorado, since March 1995.

OFFICERS -- DIRECTORS

James M. Benson..................... President, Equitable Variable since December, 1993; Vice Chairman of the Board,
Equitable Variable July 1993 to December 1993. President and Chief Operating Officer,
Equitable, February 1994 to present; Senior Executive Vice President, April 1993 to
February 1994. Prior thereto, President, Management Compensation Group, 1983 to February
1993. Director, Alliance Capital, October 1993 to present.

Harvey Blitz........................ Vice President, Equitable Variable since April 1995; Director of Equitable Variable
since October 1992. Senior Vice President, Equitable since September 1987. Senior Vice
President, The Equitable Companies Incorporated, since July 1992. Director, Equico
Securities, Inc., since September 1992; Equitable of Colorado, since September 1992;
Equisource and its subsidiaries since October 1992.

Gordon Dinsmore..................... Senior Vice President, Equitable Variable, since February 1991. Senior Vice
President, Equitable since September 1989; prior thereto, various other Equitable
positions. Director and Senior Vice President, March 1991 to present, Equitable of
Colorado; Director, FHJV Holdings, Inc., December 1990 to present; Director, Equitable
Distributors, Inc., August 1993 to present, and Director, Equitable Foundation, May 1991 to
present.

Jerry de St Paer.................... Senior Investment Officer, Equitable Variable since April 1995; Director of
Equitable Variable since April 1992. Executive Vice President & Chief Financial Officer,
Equitable, since April 1992; prior thereto, Executive Vice President since December
1990; Senior Vice President & Treasurer June 1990 to December 1990; Senior Vice President,
Equitable Investment Corporation January 1987 to January 1991; Executive Vice President &
Chief Financial Officer, The Equitable Companies Incorporated since May 1992; Director,
Economic Services Corporation & various Equitable subsidiaries.

James S. Kalmer..................... Senior Vice President, Equitable Variable, since February 1991. Vice President
since December 1987. Senior Vice President, Equitable, since September 1989, prior
thereto, Vice President. Director, Equisource and its subsidiaries since March 1991; and
Equitable Underwriting and Sales Agency (Bahamas) Limited since March 1994.

</TABLE>

B-1
<PAGE>

NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------- ----------------------

OFFICERS -- DIRECTORS (Continued)
<S> <C>
Joseph J. Melone.................... Chairman of the Board and Chief Executive Officer, Equitable Variable, since
November 1990; Chairman of the Board and Chief Executive Officer, Equitable, February
1994 to present; President and Chief Executive Officer, September 1992 to February 1994;
President and Chief Operating Officer from November 1990 to September 1992. President and
Chief Operating Officer of The Equitable Companies Incorporated since July 1992. Prior
thereto, President, The Prudential Insurance Company of America, since December 1984.
Director, Equity & Law (United Kingdom) and various other Equitable subsidiaries.

Brian O'Neil........................ Senior Vice President and Chief Investment Officer, Equitable Variable, since
October 1992. Executive Vice President & Chief Investment Officer, Equitable, since April
1992; prior thereto; Senior Vice President since February 1989; Vice President from
July 1988 to February 1989. Senior Vice President, Equitable Capital Management
Corporation, from November 1987 to March 1989. Director, Equitable Real Estate Investment
Management, Inc. since May 1992; Alliance since October 1993; Equitable Foundation since May
1991.

Samuel B. Shlesinger................ Senior Vice President, Equitable Variable, since February 1988. Senior Vice
President and Actuary, Equitable; prior thereto, Vice President and Actuary. Director,
Chairman and CEO, Equitable of Colorado.

Dennis D. Witte..................... Senior Vice President, Equitable Variable, since February 1991; Senior Vice
President, Equitable, since July 1990; prior thereto, various other Equitable positions.

OFFICERS

J. Thomas Liddle, Jr. .............. Senior Vice President and Chief Financial Officer, Equitable Variable, since
February 1986. Senior Vice President, Equitable since April 1991; prior thereto, Vice
President and Actuary, Equitable.

Franklin Kennedy, III............... Vice President, Equitable Variable, since August 1981. Senior Vice President,
1345 Avenue of the Americas Alliance Capital Management Corporation, July 1993 to present; Senior Vice President,
New York, New York 10105 Equitable Capital Management Corporation, March 1987 to July 1993. Vice President,
The Hudson River Trust. Managing Director and Chief Investment Officer, Equitable
Investment Management Corporation, from November 1983 to January 1987.

William A. Narducci................. Vice President and Chief Claims Officer, Equitable Variable since February 1989.
200 Plaza Drive Vice President, Equitable since February 1988; prior thereto, Assistant Vice President.
Secaucus, New Jersey 07096

John P. Natoli...................... Vice President and Chief Underwriting Officer, Equitable Variable, since February 1988.
Vice President, Equitable.

Molly K. Heines..................... Secretary, Equitable Variable, since February 1991; Vice President and Secretary,
Equitable, since July 1990; prior thereto, Vice President & Counsel.

Kevin R. Byrne...................... Treasurer, Equitable Variable, since September 1990; Vice President and Treasurer,
Equitable since September 1993; prior thereto, Vice President from March 1989 to
September 1993. Vice President and Treasurer, The Equitable Companies Incorporated,
September 1993 to present; Frontier Trust since August 1990; Equisource and its subsidiaries
October 1990 to present.

Stephen Hogan....................... Vice President and Controller, Equitable Variable, February 1994 to present. Vice
President, Equitable, January 1994 to present; prior thereto, Controller, John
Hancock subsidiaries, from 1987 to December 1993.
</TABLE>

B-2

<PAGE>

INCENTIVE LIFE 2000

PROSPECTUS

MAY 1, 1994

[EQUITABLE LOGO]

<PAGE>

INCENTIVE LIFE(TM)
2000
Prospectus Dated May 1, 1994

Incentive Life 2000 is a flexible premium variable life insurance policy issued
by Equitable Variable Life Insurance Company (Equitable Variable), a
wholly-owned subsidiary of The Equitable Life Assurance Society of the United
States (Equitable).

You may decide the amount of premiums to invest and when, within limits. Other
than the initial premium, there are no required premiums (however, under certain
conditions, additional premiums may be needed to keep the policy in effect). Net
premiums are deposited in a Policy Account.

Policy Account values increase or decrease with investment experience and
reflect certain deductions and charges. You may allocate your Policy Account
value to a guaranteed fixed return and variable return investment strategies.
The Hudson River Trust (Trust) is the mutual fund which provides the underlying
basis for the variable return investment strategies. The Trust is a series fund
with twelve different investment portfolios:

<TABLE>
<C> <C> <C>
o Money Market o Growth & Income Asset Allocation Series:
o Intermediate Government Securities o Equity Index o Conservative Investors
o Quality Bond o Common Stock o Growth Investors
o High Yield o Global
o Balanced o Aggressive Stock
</TABLE>

You may draw upon the Policy Account value through loans, partial withdrawals or
policy surrender, within limits. A charge will apply if the policy is
surrendered during the first fifteen policy years or within fifteen years after
certain Face Amount increases. This charge may also apply if you reduce the Face
Amount or if the policy terminates.

Incentive Life 2000 provides a death benefit if the insured person dies while
the policy is in effect. You may choose either a fixed benefit equal to the Face
Amount of the policy or a variable benefit equal to the Face Amount plus the
Policy Account value. You can change the Face Amount and death benefit option,
within limits. The policy will terminate if the Net Cash Surrender Value (Policy
Account value less any applicable surrender charge and any loan and accrued loan
interest) is insufficient to pay the policy's monthly deductions and you do not
make the required payment.

Ask your Equitable agent to determine if changing, or adding to, your existing
insurance coverage with Incentive Life 2000 would be to your advantage. You may
examine the policy for a limited period after your initial payment and, if you
are not satisfied for any reason, you may return the policy for a full refund of
premiums paid.

PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. THIS
PROSPECTUS CONTAINS INFORMATION THAT SHOULD BE KNOWN BEFORE INVESTING IN
INCENTIVE LIFE 2000. THIS PROSPECTUS IS NOT VALID UNLESS IT IS ATTACHED TO A
CURRENT PROSPECTUS FOR THE HUDSON RIVER TRUST.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

VM 482

<PAGE>
TABLE OF CONTENTS

PAGE
----
SUMMARY OF INCENTIVE LIFE 2000 FEATURES................................1
PART 1 -- DETAILED INFORMATION ABOUT EQUITABLE VARIABLE AND
INCENTIVE LIFE 2000 INVESTMENT CHOICES.....................4
THE COMPANY THAT ISSUES INCENTIVE LIFE 2000................4
Equitable Variable......................................4
Our Parent, Equitable...................................4
THE SEPARATE ACCOUNT AND THE TRUST.........................4
The Separate Account....................................4
The Trust...............................................4
The Trust's Investment Adviser..........................4
Investment Policies Of The Trust's Portfolios...........5
THE GUARANTEED INTEREST DIVISION...........................6
Amounts In The Guaranteed Interest Division.............6
Adding Interest In The Guaranteed Interest Division.....6
Transfers From The Guaranteed Interest Division.........6
PART 2 -- DETAILED INFORMATION ABOUT INCENTIVE LIFE 2000.............7
FLEXIBLE PREMIUMS..........................................7
DEATH BENEFITS.............................................7
CHANGES IN INSURANCE PROTECTION............................8
Changing The Face Amount................................8
Changing The Death Benefit Option.......................9
Substitution Of Insured Person..........................9
When Policy Changes Go Into Effect......................9
MATURITY BENEFITS..........................................9
LIVING BENEFIT OPTION......................................9
ADDITIONAL BENEFITS MAY BE AVAILABLE......................10
YOUR POLICY ACCOUNT VALUE.................................10
Amounts In The Separate Account........................10
How We Determine The Unit Value........................10
Transfers Of Policy Account Value......................10
Automatic Transfer Service.............................10
Telephone Transfers....................................11
Charge For Transfers...................................11
BORROWING FROM YOUR POLICY ACCOUNT........................11
How To Request A Loan..................................11
Policy Loan Interest...................................11
When Interest Is Due...................................12
Repaying The Loan......................................12
The Effects Of A Policy Loan...........................12
PARTIAL WITHDRAWALS FROM YOUR POLICY ACCOUNT..............12
Partial Withdrawal Charges.............................12
Allocation Of Partial Withdrawals And Charges..........12
The Effects Of A Partial Withdrawal....................12
Surrender For Net Cash Surrender Value.................13
DEDUCTIONS AND CHARGES....................................13
Deductions From Your Premiums..........................13
Deductions From Your Policy Account....................13
How Policy Account Charges Are Allocated...............14
Charges Against The Separate Account...................14
Trust Charges..........................................14
Surrender Charge.......................................14
ADDITIONAL INFORMATION ABOUT INCENTIVE LIFE 2000..........15
Your Policy Can Terminate..............................15
You May Restore A Policy After It Terminates...........15
Policy Periods, Anniversaries, Dates And Ages..........16
TAX EFFECTS...............................................16
Policy Proceeds........................................16
Diversification........................................18
Policy Changes.........................................18
Tax Changes............................................18
Estate And Generation Skipping Taxes...................18
Pension And Profit-Sharing Plans.......................18
Other Employee Benefit Programs........................18
Our Taxes..............................................19
When We Withhold Income Taxes..........................19
PART 3 -- ADDITIONAL INFORMATION....................................19
YOUR VOTING PRIVILEGES....................................19
Trust Voting Privileges................................19
How We Determine Your Voting Shares....................19
Separate Account Voting Rights.........................19
OUR RIGHT TO CHANGE HOW WE OPERATE........................19
OUR REPORTS TO POLICYOWNERS...............................20
LIMITS ON OUR RIGHT TO CHALLENGE THE POLICY...............20
YOUR PAYMENT OPTIONS......................................20
YOUR BENEFICIARY..........................................21
ASSIGNING YOUR POLICY.....................................21
WHEN WE PAY POLICY PROCEEDS...............................21
DIVIDENDS.................................................21
REGULATION................................................21
SPECIAL CIRCUMSTANCES.....................................21
DISTRIBUTION..............................................21
LEGAL PROCEEDINGS.........................................22
ACCOUNTING AND ACTUARIAL EXPERTS..........................22
ADDITIONAL INFORMATION....................................22
MANAGEMENT................................................23
PART 4 -- ILLUSTRATIONS OF POLICY BENEFITS..........................25
SEPARATE ACCOUNT FP FINANCIAL STATEMENTS...........................FSA-1
EQUITABLE VARIABLE FINANCIAL STATEMENTS..............................F-1
APPENDIX A -- COMMUNICATING PERFORMANCE DATA.......................A-1
LONG-TERM MARKET TRENDS..............................A-1

- --------------------------------------------------------------------------------
In this prospectus "we," "our" and "us" mean Equitable Variable Life Insurance
Company (Equitable Variable), a New York stock life insurance company. "You" and
"your" mean the owner of the policy. We refer to the person who is covered by
the policy as the "insured person" because the insured person and the
policyowner may not be the same. Unless indicated otherwise, the discussion in
this prospectus assumes that there is no policy loan outstanding and that the
policy is not in a grace period.

THE POLICY IS NOT AVAILABLE IN ALL JURISDICTIONS. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT
LAWFULLY BE MADE. EQUITABLE VARIABLE DOES NOT AUTHORIZE ANY INFORMATION OR
REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN
AS CONTAINED IN THIS PROSPECTUS OR ANY ATTACHED SUPPLEMENT THERETO OR IN ANY
SUPPLEMENTAL SALES MATERIAL AUTHORIZED BY EQUITABLE VARIABLE.

<PAGE>

WHAT IS VARIABLE LIFE INSURANCE?

Variable life insurance is one kind of permanent cash value life insurance. Like
other kinds of permanent cash value life insurance, such as whole life and
universal life insurance, variable life insurance generally provides two
benefits: an income tax-free death benefit and a cash value that grows
tax-deferred.

What sets variable life insurance apart from universal life and whole life is
that variable life insurance allows the policyowner to direct premiums to
different mutual fund options. This enables a policyowner to harness the growth
potential of, for example, the equity markets, but the policyowner also bears
the risk of investment losses. In contrast, whole life insurance provides a
minimum guaranteed cash value and universal life applies a minimum guaranteed
interest rate to premiums.

Some variable life insurance policies offer some of the other features of
universal or whole life such as premium flexibility (universal life), face
amount increases (universal life) or death benefit guarantees (whole life).
Equitable Variable and its parent, Equitable, offer an array of permanent cash
value insurance products and your Equitable agent can help you determine which
product best suits your insurance needs.

SUMMARY OF INCENTIVE LIFE 2000 FEATURES

THE FOLLOWING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY THE TERMS OF THE POLICY
WHEN ISSUED AND THE MORE DETAILED INFORMATION APPEARING ELSEWHERE IN THIS
PROSPECTUS (SEE TABLE OF CONTENTS ON OPPOSITE PAGE).

INVESTMENT FEATURES

FLEXIBLE PREMIUMS

o Premiums may be invested whenever and in whatever amount you determine,
within limits. Other than the initial premium, there are no scheduled or
required premium payments (however, under certain conditions, additional
premiums may be needed to keep a policy in effect). See FLEXIBLE PREMIUMS on
page 7.

POLICY ACCOUNT

o Net premiums are put in your Policy Account and can be allocated to a
Guaranteed Interest Division and to one or more divisions of Equitable
Variable's Separate Account FP (the Separate Account). The Separate Account
divisions invest in corresponding portfolios of the Trust. You may adjust
your allocation by changing your allocation percentages or by transfers among
the Separate Account divisions and the Guaranteed Interest Division.

o REQUESTS FOR TRANSFERS OUT OF THE GUARANTEED INTEREST DIVISION CAN ONLY BE
MADE WITHIN 30 DAYS OF A POLICY ANNIVERSARY. SUCH TRANSFERS WILL BE EFFECTIVE
AS OF THE DATE WE RECEIVE YOUR REQUEST, BUT NO EARLIER THAN THE POLICY
ANNIVERSARY; TRANSFERS INTO THE GUARANTEED INTEREST DIVISION AND AMONG ALL
SEPARATE ACCOUNT DIVISIONS MAY GENERALLY BE MADE AT ANY TIME. Transfers are
subject to the rules discussed under TRANSFERS FROM THE GUARANTEED INTEREST
DIVISION on page 6 and TRANSFERS OF POLICY ACCOUNT VALUE on page 10.

o There is no minimum guaranteed cash value for amounts allocated to the
Separate Account divisions. The value of amounts allocated to the Guaranteed
Interest Division will depend on the interest rates declared and guaranteed
each year by Equitable Variable (4% minimum).

REDEMPTION

o Loans may be taken against 90% of a policy's Cash Surrender Value (Policy
Account value less any applicable surrender charge) subject to certain
conditions. Loan interest accrues daily at a rate determined annually.
Currently, amounts set aside to secure the loan earn interest at a rate 1%
lower than the rate charged for policy loan interest. See BORROWING FROM YOUR
POLICY ACCOUNT on page 11.

o Partial Withdrawals of Net Cash Surrender Value (Cash Surrender Value less
any loan and accrued loan interest) may be taken after the first policy year,
subject to our approval and certain conditions. See PARTIAL WITHDRAWALS FROM
YOUR POLICY ACCOUNT on page 12.

o The policy may be surrendered for its Net Cash Surrender Value, less any lien
securing a Living Benefit payment, at which time insurance coverage will end.

INSURANCE PROTECTION FEATURES

DEATH BENEFITS

o Option A, a fixed benefit equal to the policy's Face Amount.

o Option B-PLUS, a variable benefit that equals the Face Amount plus the Policy
Account value.

o In some cases a higher death benefit may apply in order to meet Federal
income tax law requirements.

o After the first year, you can change the Face Amount and death benefit
option, within limits. The minimum Face Amount is generally $50,000.

MATURITY BENEFITS

o A maturity benefit equal to the amount in your Policy Account, less any
policy loan, any lien securing a Living Benefit payment and accrued interest,
is payable on the policy anniversary nearest the insured person's 100th
birthday (Final Policy Date), if the insured person is still living on that
date.

LIVING BENEFIT

o The Living Benefit rider enables the policyowner to receive a portion of the
policy's death benefit (excluding death benefits payable under certain
riders) if the insured person has a terminal illness. The Living Benefit
rider will be added to most policies at issue for no additional cost.

ADDITIONAL BENEFITS

o Disability waiver, accidental death, term insurance on an additional insured
person, children's term insurance, substitution of insured person, designated
insured option riders are available.

1
<PAGE>

DEDUCTIONS AND CHARGES

FROM PREMIUMS

o Applicable charges for taxes imposed by states and other jurisdictions. Such
taxes currently range between .75% and 5% (Virgin Islands).

o Premium sales charge of 4% of premiums paid. Equitable Variable currently
intends to stop deducting this charge once the aggregate amount collected
equals a specified amount. See DEDUCTIONS FROM YOUR PREMIUMS on page 13.

FROM THE POLICY ACCOUNT

o Administrative charge during the first policy year of $25 per month for
policies with Face Amounts of $500,000 and over and $55 per month for
policies with Face Amounts below $500,000 and, during subsequent years, $5
per month regardless of Face Amount (subject to $8 per month maximum).

o Monthly cost of insurance charge and monthly charge for any additional
benefits.

o Transaction charges (for partial withdrawals, Face Amount increases and
certain investment division transfers).

o During the first fifteen policy years, a contingent deferred sales charge
called the Surrender Charge applies if the policy terminates or is
surrendered for its Net Cash Surrender Value or if the Face Amount is
reduced. The maximum charge is equal to 66% of one "target premium." After
the first nine policy years, the charge declines on a monthly basis until it
reaches zero at the end of the fifteenth policy year. If you increase the
policy's Face Amount, an additional Surrender Charge will generally apply to
the amount of the increase for fifteen years commencing on the effective date
of increase. See SURRENDER CHARGE on page 14 for a detailed discussion,
including an explanation of "target premium."

FROM THE SEPARATE ACCOUNT

o Current charge for certain mortality and expense risks equal to .60% per
annum (guaranteed not to exceed .70% per annum).

FROM THE TRUST

o Trust shares are purchased at net asset value which reflects investment
management fees and other direct expenses. Investment management fees are
charged at the maximum annual rates of .35% of net assets for the Equity
Index Portfolio, .40% for Common Stock, Money Market and Balanced Portfolios;
.50% for Aggressive Stock and Intermediate Government Securities Portfolios;
and .55% for High Yield, Global, Conservative Investors, Growth Investors,
Quality Bond and the Growth & Income Portfolios.

VARIATIONS

o Equitable Variable is subject to the insurance laws and regulations in every
jurisdiction in which Incentive Life 2000 is sold. As a result, the terms of
Incentive Life 2000 may vary from jurisdiction to jurisdiction. The terms of
Incentive Life 2000 may also vary where special circumstances result in a
reduction in our costs.

o A modified version of our First Series Incentive Life policy may be offered
where certain conditions are met.

ADDITIONAL INFORMATION

CANCELLATION RIGHT

o You have a right to examine the policy. If for any reason you are not
satisfied with it, you may cancel the policy within the time limits described
below. You may cancel the policy by sending it to our Administrative Office
with a written request to cancel. Insurance coverage ends when you send your
request.

o Your request to cancel the policy must be postmarked no later than the latest
of the following three dates: (i) 10 days after you receive the policy, (ii)
10 days after we mail or personally deliver a written notice telling you
about your rights to cancel (Notice of Withdrawal Right), or (iii) 45 days
after you sign Part I of the policy application.

o If you cancel the policy, we will refund the premiums you paid. In certain
cases where the policy was purchased as a result of an exchange of an
existing life insurance policy, we may reinstate the prior policy. The
cancellation right may vary in certain states. There may be income tax and
withholding implications associated with cancellation.

POLICY TERMINATION

o The policy will terminate if the Net Cash Surrender Value is insufficient to
cover monthly charges. If this occurs, you will be notified and given the
opportunity to maintain the policy in force by making additional payments.
You may be able to restore a terminated policy within a limited time period,
but this will require additional evidence of insurability.

TAX EFFECTS

o Generally, under current Federal income tax law, death benefits are not
subject to income tax and Policy Account earnings are not subject to income
tax as long as they remain in the Policy Account. Loans, partial withdrawals,
surrender, maturity, policy termination, or a substitution of insured may
result in recognition of income for tax purposes.

2
<PAGE>

HUDSON RIVER TRUST RATES OF RETURN

The rates of return shown below are based on the actual investment performance
of The Hudson River Trust portfolios, after deduction for investment management
fees and direct operating expenses of the Trust, for periods ending December 31,
1993. The historical performance of the Common Stock and Money Market Portfolios
for periods prior to March 22, 1985 has been adjusted to reflect current
investment management fees of .40% per annum and estimated direct operating
expenses of the Trust of .10% per annum. The Common Stock Portfolio and its
predecessors have been in existence since 1976. No return information is
provided for the Equity Index Portfolio since it received its initial funding on
March 1, 1994.

These rates of return are not illustrative of how actual investment performance
will affect the benefits under your policy. Moreover, these rates of return are
not an estimate or guarantee of future performance.

THESE RATES OF RETURN ARE FOR THE TRUST ONLY AND DO NOT REFLECT THE
ADMINISTRATIVE AND COST OF INSURANCE CHARGES, SALES CHARGES AND THE MORTALITY
AND EXPENSE RISK CHARGE APPLICABLE UNDER AN INCENTIVE LIFE 2000 POLICY.

<TABLE>
<CAPTION>
PERIODS ENDING 12/31/93
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS 15 YEARS SINCE INCEPTION(a)
--------- ------ ------- ------- -------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Money Market.................................. 3.00% 4.23% 6.00% 6.95% -- 7.83%
Intermediate Government Securities............ 10.58 -- -- -- -- 10.25
Quality Bond (b).............................. -- -- -- -- -- (0.51)
High Yield.................................... 23.15 19.85 12.35 -- -- 10.84
Balanced...................................... 12.28 15.52 14.22 -- -- 13.95
Growth & Income (b)........................... -- -- -- -- -- (0.25)
Common Stock.................................. 24.84 21.12 15.44 15.27 17.52% 14.87
Global........................................ 32.09 19.73 15.36 -- -- 11.22
Aggressive Stock.............................. 16.77 28.32 26.81 -- -- 21.97

The Asset Allocation Series:
Conservative Investors...................... 10.76 11.98 -- -- -- 10.69
Growth Investors............................ 15.26 21.67 -- -- -- 18.69

<FN>
- ----------
(a) The Growth & Income and Quality Bond Portfolios received their initial
funding on October 1, 1993; the Intermediate Government Securities Portfolio
on April 1, 1991; the Conservative Investors and the Growth Investors
Portfolios on October 2, 1989; the Global Portfolio on August 27, 1987; the
High Yield Portfolio on January 2, 1987; the Aggressive Stock and Balanced
Portfolios on January 27, 1986; the predecessor of the Money Market
Portfolio on July 13, 1981; and the predecessor of the Common Stock
Portfolio on January 13, 1976.

(b) Unannualized.
</FN>
</TABLE>

Additional investment performance information appears in the attached Trust
prospectus.

ILLUSTRATIONS OF POLICY ACCOUNT AND CASH SURRENDER VALUES BASED ON HISTORICAL
INVESTMENT RESULTS. The illustrations on the next page were developed to
demonstrate how the actual investment experience of the Trust and its
predecessors would have affected the Policy Account Value and Cash Surrender
Value of a hypothetical Incentive Life 2000 policy held through December 31,
1993. Each chart illustrates Premiums, Policy Account Values and Cash Surrender
Values of a hypothetical Incentive Life 2000 policy, assuming 100% allocation to
a different Separate Account investment division. The illustration also assumes
that the insured is a 40-year-old male, non-smoker and that the policy has a
level death benefit, a $200,000 face amount and a $3,000 annual premium.

Illustrations have been prepared only for portfolios of the Trust that have been
in existence for five or more years. The other portfolios have been in existence
for a shorter time period and any demonstration of how their investment
performance would have affected policy values would be less meaningful.

For portfolios whose inception dates fall before June 30, the columns reflect
actual, unannualized returns for the portion of the first year the portfolio was
in existence. When a portfolio's inception date falls after June 30, the columns
do not reflect partial year results, but show results based on the first full
calendar year of operation.

Policy values reflect all charges assessed under the policy and by the Trust.
Where applicable, current charges have been used to determine policy values; if
guaranteed charges were used, the results would be lower. The historical
performance of the Common Stock and Money Market portfolios for periods prior to
March 22, 1985 has been adjusted to reflect current investment management fees
of .40% per annum and .10% per annum for direct Trust expenses. These values are
not an estimate or guarantee of future performance.

3
<PAGE>

ILLUSTRATIONS OF INCENTIVE LIFE 2000 POLICY ACCOUNT AND CASH SURRENDER VALUES
BASED ON HISTORICAL INVESTMENT RESULTS AND $200,000
OF INITIAL INSURANCE PROTECTION

[THE FOLLOWING DATA WAS REPRESENTED IN 3-D VERTICAL BAR GRAPHS
IN THE PRINTED PROSPECTUS:]

COMMON STOCK DIVISION
1ST YEAR 5TH YEAR 10TH YEAR SINCE 1/13/76
Premium ............ $3,000 $15,000 $30,000 $ 54,000
Policy Account Value $1,977 $21,063 $56,059 $211,962
Cash Surrender Value $1,349 $19,834 $54,805 $211,962

MONEY MARKET DIVISION
1ST YEAR 5TH YEAR 10TH YEAR SINCE 12/31/82
Premium ............ $3,000 $15,000 $30,000 $36,000
Policy Account Value $2,064 $14,162 $34,204 $40,985
Cash Surrender Value $1,435 $12,933 $32,950 $40,233

AGGRESSIVE STOCK DIVISION
1ST YEAR 5TH YEAR SINCE 1/27/86
Premium ............ $3,000 $15,000 $24,000
Policy Account Value $2,576 $18,008 $47,915
Cash Surrender Value $1,947 $16,779 $46,410

BALANCED DIVISION
1ST YEAR 5TH YEAR SINCE 1/27/86
Premium ............ $3,000 $15,000 $24,000
Policy Account Value $2,428 $15,257 $31,868
Cash Surrender Value $1,799 $14,028 $30,363

HIGH YIELD DIVISION
1ST YEAR 5TH YEAR SINCE 1/2/87
Premium ............ $3,000 $15,000 $21,000
Policy Account Value $1,871 $14,666 $26,114
Cash Surrender Value $1,242 $13,437 $24,609

GLOBAL DIVISION
1ST YEAR 5TH YEAR SINCE 12/31/87
Premium ............ $3,000 $15,000 $18,000
Policy Account Value $2,018 $14,872 $22,650
Cash Surrender Value $1,390 $13,643 $21,271

[END OF GRAPH DATA]

3-A
<PAGE>

PART 1: DETAILED INFORMATION ABOUT EQUITABLE VARIABLE AND
INCENTIVE LIFE 2000 INVESTMENT CHOICES

THE COMPANY THAT ISSUES INCENTIVE LIFE 2000

EQUITABLE VARIABLE. Equitable Variable was organized in 1972 in New York State
as a stock life insurance company. We are a wholly-owned subsidiary of The
Equitable Life Assurance Society of the United States. We are licensed to do
business in all 50 states, Puerto Rico, the Virgin Islands and the District of
Columbia. At December 31, 1993, we had approximately $81.6 billion face amount
of variable life insurance in force.

We sell both traditional and innovative forms of life insurance designed to give
policyowners maximum choice and flexibility. Additional forms of life insurance
are available through our parent, Equitable. Your Equitable agent can provide
information about all forms of life insurance available from us and Equitable
and help you decide which may best meet your objectives.

OUR PARENT, EQUITABLE. Equitable, a New York stock life insurance company, has
been in business since 1859. Equitable and its subsidiaries managed
approximately $174 billion as of December 31, 1993. Equitable's assets do not
back the benefits that we pay under our policies. Equitable's home office is 787
Seventh Avenue, New York, New York 10019.

Equitable is a wholly-owned subsidiary of The Equitable Companies Incorporated
(the Holding Company). The largest stockholder of the Holding Company is AXA, a
French insurance holding company. AXA currently owns 49% of the outstanding
shares of common stock of the Holding Company plus convertible preferred stock
and redeemable preferred stock. Under its investment arrangements with Equitable
and the Holding Company, AXA is able to exercise significant influence over the
operations and capital structure of the Holding Company, Equitable and their
subsidiaries. After September 19, 1994 (or earlier under certain circumstances)
AXA will be able to increase its ownership of the Holding Company's common stock
by converting certain convertible securities it currently owns or through
purchases. AXA is the principal holding company for most of the companies in one
of the largest insurance groups in Europe. The majority of AXA's stock is
controlled by a group of five French mutual insurance companies.

THE SEPARATE ACCOUNT AND THE TRUST

THE SEPARATE ACCOUNT. The Separate Account was established on April 19, 1985
under the Insurance Law of the State of New York. The Separate Account is a type
of investment company called a unit investment trust and is registered with the
Securities and Exchange Commission (SEC) under the Investment Company Act of
1940. This registration does not involve any supervision by the SEC of the
management or investment policies of the Separate Account.

Under New York law, we own the assets of the Separate Account and use them to
support your policy and other variable life insurance policies. The portion of
the Separate Account's assets supporting these policies may not be used to
satisfy liabilities arising out of any other business we may conduct. This means
that the assets supporting Policy Account values maintained in the Separate
Account are not subject to the claims of our other creditors. We may also retain
in the Separate Account amounts owed to us for charges or other permitted
allocations. Because such retained amounts do not support Policy Account values,
we may transfer them from the Separate Account to our general account.

THE TRUST. The Separate Account has several divisions, each of which invests in
shares of a corresponding portfolio of the Trust. The Trust is an open-end
diversified management investment company, more commonly called a mutual fund.
As a "series" type of mutual fund, it issues several different "series" of
stock, each of which relates to a different Trust portfolio with a different
investment policy. The Trust does not impose a sales charge or "load" for buying
and selling its shares. The Trust's shares are bought and sold by our Separate
Account at net asset value. The Trust's custodian is The Chase Manhattan Bank,
N.A.

The Trust sells its shares to separate accounts of insurance companies, both
affiliated and not affiliated with Equitable. We currently do not foresee any
disadvantages to our policyowners arising out of this. However, the Trust's
Board of Trustees intends to monitor events in order to identify any material
irreconcilable conflicts that possibly may arise and to determine what action,
if any, should be taken in response. If we believe that the Trust's response to
any of those events insufficiently protects our policyowners, we will see to it
that appropriate action is taken to protect our policyowners. Also, if we ever
believe that any of the Trust's portfolios is so large as to materially impair
the investment performance of a portfolio or the Trust, we will examine other
investment options.

THE TRUST'S INVESTMENT ADVISER. The Trust is advised by Alliance Capital
Management L.P. (Alliance). Alliance is registered as an investment adviser
under the Investment Advisers Act of 1940 (the Advisers Act). Alliance, a
publicly-traded limited partnership, is indirectly majority-owned by Equitable.

Alliance acts as an investment adviser to various separate accounts and general
accounts of Equitable and other affiliated insurance companies. Alliance also
provides management and consulting services to mutual funds, endowment funds,
insurance companies, foreign entities, qualified and non-tax qualified corporate
funds, public and private pension and profit-sharing plans, foundations and
tax-exempt organizations. As of December 31, 1993, Alliance was managing
approximately $115 billion in assets.

Alliance's main office is 1345 Avenue of the Americas, New York, New York 10105.

4
<PAGE>

The advisory fee payable by the Trust is based on the following annual
percentages of the value of each portfolio's daily average net assets:

<TABLE>
<CAPTION>
DAILY AVERAGE NET ASSETS
--------------------------------------------
FIRST NEXT OVER
$350 $400 $750
PORTFOLIO MILLION MILLION MILLION
- --------- ----------- ----------- -----------
<S> <C> <C> <C>
Common Stock, Money Market and Balanced .................. .400% .375% .350%
Aggressive Stock and Intermediate Government Securities... .500% .475% .450%
High Yield, Global, Conservative Investors and
Growth Investors ...................................... .550% .525% .500%
</TABLE>

<TABLE>
<CAPTION>
FIRST NEXT
$500 $500 OVER
PORTFOLIO MILLION MILLION $1 BILLION
- --------- ----------- ----------- -----------
<S> <C> <C> <C>
Quality Bond and Growth & Income ......................... .550% .525% .500%
</TABLE>

<TABLE>
<CAPTION>
FIRST NEXT OVER
$750 $750 $1.5
PORTFOLIO MILLION MILLION BILLION
- --------- ----------- ----------- -----------
<S> <C> <C> <C>
Equity Index ............................................. .350% .300% .250%
</TABLE>

INVESTMENT POLICIES OF THE TRUST'S PORTFOLIOS. Each portfolio has a different
investment objective which it tries to achieve by following separate investment
policies. The objectives and policies of each portfolio will affect its return
and its risks. There is no guarantee that these objectives will be achieved. The
policies and objectives of the Trust's portfolios are as follows:

<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- --------- ----------------- ---------
<S> <C> <C>
MONEY MARKET............... Primarily high quality short-term money market High level of current income while
instruments. preserving assets and maintaining
liquidity.

INTERMEDIATE............... Primarily debt securities issued or guaranteed by High current income consistent with
GOVERNMENT the U.S. Government, its agencies and relative stability of principal.
SECURITIES instrumentalities. Each investment will have a
final maturity of not more than 10 years or a
duration not exceeding that of a 10-year
Treasury note.

QUALITY BOND............... Primarily investment grade fixed-income securities. High current income consistent with
preservation of capital.

HIGH YIELD................. Primarily a diversified mix of high yield, High return by maximizing current
fixed-income securities involving greater income and, to the extent consistent
volatility of price and risk of principal and with that objective, capital apprecia-
income than high quality fixed-income securities. tion.
The medium and lower quality debt securities in
which the portfolio may invest are known as "junk
bonds."

BALANCED................... Primarily common stocks, publicly-traded debt High return through a combination of
securities and high quality money market current income and capital
instruments. appreciation.

GROWTH & INCOME............ Primarily common stocks and securities convertible High return through a combination of
into common stocks. current income and capital
appreciation.

EQUITY INDEX............... Selected securities in the Standard & Poor's 500 Total return before Trust expenses
Index which the advisor believes will, in the that approximates the total return
aggregate, approximate the performance results of performance of the Standard & Poor's
the Index. 500 Index, including reinvestment of
dividends, at a risk level consistent
with that of the Index.

COMMON STOCK............... Primarily common stock and other equity-type Long-term growth of capital and
instruments. increasing income.

GLOBAL..................... Primarily equity securities of non-United States Long-term growth of capital.
as well as United States companies.

AGGRESSIVE STOCK........... Primarily common stocks and other equity-type Long-term growth of capital.
securities issued by medium and other smaller
sized companies with strong growth potential.
</TABLE>

5
<PAGE>

<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- --------- ----------------- ---------
<S> <C> <C>
ASSET ALLOCATION SERIES
- -----------------------
CONSERVATIVE............... Diversified mix of publicly-traded, fixed-income High total return without, in the
INVESTORS and equity securities; asset mix and security adviser's opinion, undue risk to
selection are primarily based upon factors principal.
expected to reduce risk.

GROWTH INVESTORS........... Diversified mix of publicly-traded, fixed-income High total return consistent with the
and equity securities; asset mix and security adviser's determination of reasonable
selection based upon factors expected to increase risk.
possibility of high long-term return.
</TABLE>

Because Policy Account values may be invested in mutual fund options, Incentive
Life 2000 offers an opportunity for the Cash Surrender Value to appreciate more
rapidly than it would under comparable fixed-benefit whole-life insurance. You
must, however, accept the risk that if investment performance is unfavorable,
the Cash Surrender Value may not appreciate as rapidly and, indeed, may decrease
in value.

More detailed information about the Trust, its investment policies, risks,
expenses and all other aspects of its operations, appears in its prospectus,
which is attached to this prospectus, and in its Statement of Additional
Information referred to therein.

THE GUARANTEED INTEREST DIVISION

YOU MAY ALLOCATE SOME OR ALL OF YOUR POLICY ACCOUNT TO THE GUARANTEED INTEREST
DIVISION, WHICH IS FUNDED BY OUR GENERAL ACCOUNT AND PAYS INTEREST AT A DECLARED
RATE GUARANTEED FOR EACH POLICY YEAR. THE PRINCIPAL, AFTER DEDUCTIONS, IS ALSO
GUARANTEED. THE GENERAL ACCOUNT SUPPORTS ALL OF OUR INSURANCE AND ANNUITY
GUARANTEES, INCLUDING THE GUARANTEED INTEREST DIVISION, AS WELL AS OUR GENERAL
OBLIGATIONS. BECAUSE OF APPLICABLE EXEMPTIVE AND EXCLUSIONARY PROVISIONS,
PARTICIPATIONS IN THE GUARANTEED INTEREST DIVISION HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AND NEITHER THE GUARANTEED INTEREST DIVISION
NOR THE GENERAL ACCOUNT HAS BEEN REGISTERED AS AN INVESTMENT COMPANY UNDER THE
INVESTMENT COMPANY ACT OF 1940. ACCORDINGLY, NEITHER THE GENERAL ACCOUNT, THE
GUARANTEED INTEREST DIVISION NOR ANY INTERESTS THEREIN ARE GENERALLY SUBJECT TO
REGULATION UNDER THESE ACTS. WE HAVE BEEN ADVISED THAT THE STAFF OF THE SEC HAS
NOT MADE A REVIEW OF THE DISCLOSURES RELATING TO THE GENERAL ACCOUNT AND THE
GUARANTEED INTEREST DIVISION. SUCH DISCLOSURES ARE INCLUDED IN THIS PROSPECTUS
FOR YOUR INFORMATION. THESE DISCLOSURES, HOWEVER, MAY BE SUBJECT TO CERTAIN
GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAW RELATING TO THE
ACCURACY AND COMPLETENESS OF STATEMENTS MADE IN PROSPECTUSES.

AMOUNTS IN THE GUARANTEED INTEREST DIVISION. You may accumulate amounts in the
Guaranteed Interest Division by allocating net premiums and loan repayments to
that Division, transferring amounts from the divisions of the Separate Account
to the Guaranteed Interest Division or earning interest on amounts you already
have in the Guaranteed Interest Division. A Living Benefit payment will also
result in amounts being transferred to the Guaranteed Interest Division. See
LIVING BENEFIT OPTION on page 9. In addition, any policy loan is secured by an
amount in your Policy Account equal to the outstanding loan. This amount remains
part of the Policy Account but is assigned to the Guaranteed Interest Division.
We refer to this amount as the loaned amount in the Guaranteed Interest
Division.

The amount you have in the Guaranteed Interest Division at any time is the sum
of all net premiums and loan repayments allocated to that Division, all
transfers into that Division (including amounts securing any policy loan or
Living Benefit payment) plus earned interest, less amounts transferred out or
withdrawn, and monthly deductions allocated to, this Division.

ADDING INTEREST IN THE GUARANTEED INTEREST DIVISION. We pay a declared interest
rate on all amounts that you have in the Guaranteed Interest Division. At policy
issuance, and prior to each policy anniversary, we declare the rates that will
apply to amounts in the Guaranteed Interest Division for the following policy
year. Different rates may apply to policies currently being issued and
previously issued policies. These annual interest rates will never be less than
the minimum guaranteed interest rate of 4%. Different rates are also paid on
unloaned and loaned amounts in the Guaranteed Interest Division. See POLICY LOAN
INTEREST on page 11. Amounts securing a Living Benefit payment are considered
unloaned amounts for purposes of crediting interest.

Interest is compounded daily at an effective annual rate that equals the
declared rate for each policy year. We credit interest on unloaned amounts in
the Guaranteed Interest Division at the end of each policy month. Interest is
credited on any loaned amount in the Guaranteed Interest Division on each policy
anniversary and any time you entirely repay a policy loan in full. Credited
interest on the loaned amount is allocated to the Separate Account divisions and
to the unloaned portion of the Guaranteed Interest Division in accordance with
your premium allocation percentages.

TRANSFERS FROM THE GUARANTEED INTEREST DIVISION. Once during each policy year,
you may request a transfer from your unloaned amount in the Guaranteed Interest
Division to one or more of the divisions of the Separate Account. If we receive
your transfer request within 30 days prior to your policy anniversary, the
transfer will be made on your policy anniversary. If we receive your request on
or within 30 days after your policy anniversary, the transfer will be made as of
the date we receive your request. You may transfer up to 25% of your unloaned
value in the Guaranteed Interest Division as of the transfer date or the

6
<PAGE>

minimum transfer amount, whichever is more. The minimum transfer amount is the
minimum transfer amount shown in the policy or your total unloaned value in the
Guaranteed Interest Division on the transfer date, whichever is less. Amounts
securing a Living Benefit payment may not be transferred from the Guaranteed
Interest Division.

PART 2: DETAILED INFORMATION ABOUT INCENTIVE LIFE 2000

FLEXIBLE PREMIUMS

You may choose the amount and frequency of premium payments, as long as they are
within the limits described below. We determine the applicable minimum initial
premium based on the age, sex, rating class and smoker/non-smoker status of the
insured person, the initial Face Amount of the policy (the initial minimum Face
Amount is $50,000 and $200,000 for insured's age 66 or over at issue) and any
additional benefits selected. In certain situations, however, no distinction is
made based on the sex of the insured person. See COST OF INSURANCE CHARGE on
page 13. You may choose to pay a higher initial premium.

The full initial premium you indicated on your application must be paid on or
before the date on which the policy is delivered to you. No insurance under your
policy will take effect (a) until a policy is delivered and the full initial
premium is paid while the person proposed to be insured is living and (b) unless
the information in the application continues to be true and complete, without
material change, as of the time the initial premium is paid.

Your first premium payment should be given to your agent or broker and must be
by check or money order drawn on a U.S. bank in U.S. dollars and made payable to
Equitable Variable. Any additional premiums must be sent directly to our
Administrative Office. We will not accept cash payments. If you have submitted
the full initial premium with your application, we may, subject to certain
conditions, provide a limited amount of temporary insurance on the proposed
insured. You may review a copy of our Temporary Insurance Agreement on request.

On your application you provide us with initial instructions as to how to
allocate your net premiums and monthly charges among the Separate Account
divisions and the Guaranteed Interest Division. Allocation percentages may be
any whole number from zero to 100, but the sum must equal 100. Allocations to
the Separate Account divisions take effect on the first business day that
follows the 20th calendar day after the Issue Date of your policy. The Issue
Date is shown on the Information Page of your policy (the Policy Information
Page), and is the date we actually issue your policy. The date your allocation
instructions take effect is called the Allocation Date. Our business days are
described in HOW WE DETERMINE THE UNIT VALUE on page 10.

Until the Allocation Date, any net premiums allocated to a Separate Account
division will be allocated to the Separate Account's Money Market Division, and
all monthly charges allocable to the Separate Account will be deducted from the
Money Market Division. On the Allocation Date, amounts in the Money Market
Division will be allocated to the Separate Account divisions in accordance with
your policy application. See TRANSFERS OF POLICY ACCOUNT VALUE on page 10 and
POLICY PERIODS, ANNIVERSARIES, DATES AND AGES on page 16. We may delay the
Allocation Date for the same reasons that we would delay effecting a transfer
request. There will be no charge for the transfer out of the Money Market
Division on the Allocation Date. See TRANSFERS OF POLICY ACCOUNT VALUE on page
10.

You may change the allocation percentages of net premiums or of monthly
deductions by writing to our Administrative Office and indicating the changes
you wish to make. These changes will go into effect as of the date your request
is received at our Administrative Office, but no earlier than the first business
day following the Allocation Date, and will affect transactions on and after
such date.

Although premiums are flexible, the Policy Information Page will show a
"planned" periodic premium. You determine the planned premium (within limits set
by us) when you apply for the policy. The planned premium is not necessarily
designed to equal the amount of premium that will keep your policy in effect.
You may make or skip a planned premium. We will send premium reminder notices if
you selected annual, semi-annual or quarterly planned premiums. We reserve the
right to limit the amount of any premium payments you make which are in addition
to your planned premium.

Generally, premiums may be paid at any time and in any amount, as long as each
payment is at least $100. (Policies issued in some states or automatic payment
plans may require different minimum premium payments.) Except for Texas
policyowners, this minimum may be increased if we give you 90 days written
notice. We may return premium payments if we determine that they would cause
your policy to become a modified endowment contract or to cease to qualify as
life insurance under Federal income tax law. We may also make such changes to
the policy as we deem necessary to continue to qualify the policy as life
insurance. See TAX EFFECTS on page 16 for an explanation of modified endowment
contracts, the special tax consequences of such contracts, and how your policy
might become a modified endowment contract.

If you stop paying premiums, your policy will remain in effect until the Net
Cash Surrender Value (the amount in your Policy Account minus the surrender
charge and any loan and accrued loan interest) can no longer cover the monthly
deductions from your Policy Account. See YOUR POLICY CAN TERMINATE on page 15.

DEATH BENEFITS

We pay a benefit to the beneficiary of the policy when the insured person dies.
This benefit will be equal to the death benefit under your policy plus any
additional benefits included in your policy and then due, less any policy loan,
any lien securing a Living Benefit payment and accrued interest. If the insured
person dies during a grace period, we will also deduct any overdue monthly
deductions.

7
<PAGE>

You may choose between two death benefit options:

o OPTION A provides a death benefit equal to the policy's Face Amount. Except
as described below, the Option A benefit is fixed.

o OPTION B-PLUS provides a death benefit equal to the policy's Face Amount PLUS
the amount in your Policy Account on the day the insured person dies. Under
Option B-PLUS, the value of the benefit is variable and fluctuates with the
amount in your Policy Account.

Policyowners who prefer to have favorable investment experience reflected in
increased insurance coverage should choose Option B-PLUS. Policyowners who
prefer to have insurance coverage that does not vary in amount and lower cost of
insurance charges should choose Option A.

Under both options, a higher death benefit may apply. This higher death benefit
is a percentage multiple of the amount in your Policy Account. The percentage is
generally based on provisions of Federal tax law which require a minimum death
benefit in relation to cash value for your policy to qualify as life insurance.
A higher percentage multiple than that required by Federal tax law will be
applied at ages 91 and over under Option A and for ages 71 and over under Option
B-PLUS. This means that when the death benefit is calculated using the
percentage multiple at those ages, the benefit will be higher than that
otherwise necessary to continue to qualify your policy as life insurance under
Federal income tax law. Since cost of insurance charges are assessed on the
difference between the Policy Account value and the death benefit, these charges
will increase if the higher death benefit takes effect.

The higher death benefit will be the amount in your Policy Account on the day
the insured person dies times the percentage for the insured person's age
(nearest birthday) at the beginning of the policy year of the insured person's
death. The percentage declines as the insured person gets older. For ages that
are not shown on the following table, the applicable percentage multiples will
decrease by a ratable portion for each full year.

TABLE OF DEATH BENEFITS AS A PERCENTAGE MULTIPLE OF POLICY ACCOUNT VALUES

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
INSURED 40 or 75 to
PERSON'S AGE under 45 50 55 60 65 70 95 100
- ------------ ----- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPTION A 250% 215% 185% 150% 130% 120% 115% 105% 100%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
INSURED 40 or 70 to
PERSON'S AGE under 45 50 55 60 65 85 90 95 100
- ------------ ----- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPTION B-PLUS 250% 215% 185% 150% 130% 120% 115% 110% 105% 100%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>

For example, if the insured person were 75 years old and your policy had a
Policy Account value of $200,000, the higher death benefit under Option A would
be 105% of $200,000 or $210,000 and the higher death benefit under Option B-PLUS
would be 115% of $200,000 or $230,000.

CHANGES IN INSURANCE PROTECTION

CHANGING THE FACE AMOUNT. You may request a change in the Face Amount any time
after the first policy year by sending a written request to our Administrative
Office. See TAX EFFECTS on page 16 for the tax consequences of changing the Face
Amount. Any change will be subject to our approval and the following conditions:

o To increase the Face Amount, you must provide satisfactory evidence that the
insured person is still insurable. The cost of insurance rate for the amount
of the increase will be based on the rating class, attained age and
smoker/non-smoker status of the insured person on the date of the increase
and on the insured person's sex. See COST OF INSURANCE CHARGE on page 13. If
the insured person has become a more expensive risk we will ask you if you
want to pay the higher cost of insurance charges before we process the
change.

o Any increase must be at least $10,000. Monthly deductions from your Policy
Account for the cost of insurance will generally increase, beginning on the
date the increase takes effect. An administrative charge of $1.50 for each
additional $1,000 of insurance (up to a maximum charge of $240) will be
deducted from your Policy Account. See HOW POLICY ACCOUNT CHARGES ARE
ALLOCATED on page 14.

o A surrender charge will generally be applicable to a Face Amount increase for
fifteen years from the effective date of the increase. Face Amount reductions
will be applied against prior Face Amount increases, if any, in the reverse
order in which such increases occurred, and then to the original Face Amount.
See SURRENDER CHARGE on page 14.

o Following the increase, a portion of each premium payment will be deemed to
be attributable to the Face Amount increase. The premium sales charge will
generally be deducted from this amount, even if we had previously stopped
deducting the charge on the premiums paid before the increase in accordance
with our current practice. See DEDUCTIONS FROM YOUR PREMIUMS--PREMIUM SALES
CHARGE on page 13.

o You will have the right to cancel the Face Amount increase within the later
of (1) 45 days after the application for the increase is signed, (2) 10 days
after receipt of a new Policy Information Page showing the increase and (3)
10 days after we mail or personally deliver a Notice of Cancellation Right.
If you cancel the increase we will reverse any charges attributable to the
increase and recalculate the Policy Account value, Cash Surrender Value and
surrender charge to what they would have been had the increase not taken
place. No surrender charge will be incurred upon cancellation.

8
<PAGE>

o You may reduce the Face Amount but not below the minimum we require to issue
this policy at the time of the reduction. Any reduction must be at least
$10,000. Monthly deductions from your Policy Account for the cost of
insurance will generally decrease, beginning on the date the decrease in Face
Amount takes effect. If you reduce the Face Amount during the first fifteen
policy years or during the first fifteen years after a Face Amount increase,
we may deduct a pro rata share of any applicable surrender charge from the
Policy Account. See SURRENDER CHARGE on page 14.

o Our current procedure is to disapprove a requested decrease if it would cause
a death benefit based on the Policy Account percentage multiple to apply. See
DEATH BENEFITS on page 7.

CHANGING THE DEATH BENEFIT OPTION. At any time after the first policy year while
your policy is in force, you may change the death benefit option by sending a
written request to our Administrative Office. We may require evidence of
insurability to make the change. See TAX EFFECTS on page 16 for the tax
consequences of changing the death benefit option.

o If you change from OPTION A TO OPTION B-PLUS, the Face Amount will be
decreased by the amount in your Policy Account on the date of the change. We
may not allow such a change if it would reduce the Face Amount below the
minimum required to issue this policy at the time of the reduction.

o If you change from OPTION B-PLUS TO OPTION A, the Face Amount of insurance
will be increased by the amount in the Policy Account on the date of the
change.

These increases and decreases in Face Amount are made so that the amount of the
death benefit remains the same on the date of the change. When the death benefit
remains the same, there is no change in the net amount at risk, which is the
amount on which cost of insurance charges are based (see COST OF INSURANCE
CHARGE on page 13). If your death benefit is determined by a percentage multiple
of the Policy Account, however, the new Face Amount will be determined
differently. No surrender charge will be incurred or established when the Face
Amount is increased or decreased as a result of a death benefit option change.

SUBSTITUTION OF INSURED PERSON. If you provide satisfactory evidence that the
person proposed to be insured is insurable then, subject to certain
restrictions, you may, after the first policy year, substitute the insured
person under your policy. If you do so, the cost of insurance charges may
change, but we will not change the surrender charge. Since substituting the
insured person is a taxable event and may have other adverse tax consequences as
well, you should consult your tax adviser prior to substituting the insured
person under your policy. As a condition to substituting the insured person we
may require you to sign a form acknowledging the tax consequences of making this
change.

WHEN POLICY CHANGES GO INTO EFFECT. A substitution of the insured person, or
change in Face Amount or death benefit option, will go into effect at the
beginning of the policy month that coincides with or follows the date we approve
the request for the change. In some cases we may not approve a change because it
might disqualify your policy as life insurance under applicable Federal tax law.
In other cases there may be adverse tax consequences as a result of the change.
See TAX EFFECTS on page 16.

MATURITY BENEFITS

If the insured person is still living on the policy anniversary nearest his or
her 100th birthday (Final Policy Date), we will pay you the amount in the Policy
Account net of any policy loan, any lien securing a Living Benefit payment and
accrued interest. The policy will then terminate. You may choose to have this
benefit paid in installments. See TAX EFFECTS on page 16 and YOUR PAYMENT
OPTIONS on page 20.

LIVING BENEFIT OPTION

Subject to regulatory approval in your state and our underwriting guidelines,
our new Living Benefit rider will be added to your policy at issue. The Living
Benefit rider enables the policyowner to receive a portion of the policy's death
benefit (excluding death benefits payable under certain riders) if the insured
person has a terminal illness. Certain eligibility requirements apply when you
submit a Living Benefit claim (for example, satisfactory evidence of less than
six month life expectancy). There is no additional charge for the rider, but we
will deduct an administrative charge of $250 from the proceeds of the Living
Benefit payment. This charge may be less in some states. In addition, if you
tell us that you do not wish to have the rider added at issue, but you later ask
to add it, additional underwriting will be required and there will be a $100
administrative charge.

When a Living Benefit claim is paid, Equitable Variable establishes a lien
against the policy. The amount of the lien is the sum of the Living Benefit
payment and any accrued interest on that payment. Interest will be charged at a
rate equal to the greater of: (i) the yield on a 90-day Treasury bill and (ii)
the maximum adjustable policy loan interest rate permitted in the state your
policy is delivered. See BORROWING FROM YOUR POLICY ACCOUNT POLICY LOAN INTEREST
on page 11.

Until a death benefit is paid, or the policy is surrendered, a portion of the
lien is allocated to the policy's Cash Surrender Value. This liened amount will
be transferred to the Guaranteed Interest Division where it will earn interest
at the same rate as unloaned amounts. See THE GUARANTEED INTEREST DIVISION on
page 6. This liened amount will not be available for loans, transfers or partial
withdrawals. Any death benefit, maturity benefit or Net Cash Surrender Value
payable upon policy surrender will be reduced by the amount of the lien.

Unlike a death benefit received by a beneficiary after the death of an insured,
receipt of a Living Benefit payment may be taxable as a distribution under the
policy. See TAX EFFECTS on page 16 for a discussion of the tax treatment of
distributions under the policy. Consult your tax advisor. Receipt of a Living
Benefit payment may also affect a policyowner's eligibility for certain
government benefits or entitlements. You should contact your Equitable agent if
you wish to make a claim under the rider.

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ADDITIONAL BENEFITS MAY BE AVAILABLE

Your policy may include additional benefits. A charge will be deducted from your
Policy Account monthly for each additional benefit you choose. These benefits
are subject to our rules and may be cancelled by you at any time. More details
will be included in your policy if you choose any of these benefits. The
following additional benefits are currently available: disability waiver
benefit, accidental death benefit, children's term insurance, term insurance on
an additional insured person and designated insured option rider.

The designated insured option rider permits the policyowner, upon the death of
the insured person, to purchase insurance on the life of a "designated insured
person" without evidence of insurability.

If the disability waiver goes into effect we will not permit Face Amount
increases or decreases and the death benefit will be changed to Option B-PLUS.

YOUR POLICY ACCOUNT VALUE

The amount in your Policy Account is the sum of the amounts you have in the
Guaranteed Interest Division and in the various divisions of the Separate
Account. Your Policy Account also reflects various charges. See DEDUCTIONS AND
CHARGES on page 13.

AMOUNTS IN THE SEPARATE ACCOUNT. Amounts allocated, transferred or added to a
Separate Account division are used to purchase units of that division. Units are
redeemed from a Separate Account division when amounts are withdrawn,
transferred or deducted for charges or capitalized loan interest. The number of
units purchased or redeemed in a division of the Separate Account is calculated
by dividing the dollar amount of the transaction by the division's unit value
calculated after the close of business that day. On any given day, the value you
have in a division of the Separate Account is the unit value for that division
times the number of units credited to you in that division.

HOW WE DETERMINE THE UNIT VALUE. We determine unit values for the divisions of
the Separate Account at the end of each business day. Generally, a business day
is any day we are open and the New York Stock Exchange is open for trading. We
are closed for national business holidays, including Martin Luther King, Jr.
Day, and also on the Friday after Thanksgiving. Additionally, we may choose to
close on the day immediately preceding or following a national business holiday
or due to emergency conditions. We will not process any policy transactions
received as of such days other than a policy anniversary report, monthly charge
deduction and the payment of death benefit proceeds. The unit value for any
business day is equal to the unit value for the preceding business day
multiplied by the net investment factor for that division on that business day.

A net investment factor is determined for each division of the Separate Account
every business day as follows: first, we take the net asset value of a share in
the corresponding Trust portfolio at the close of business that day, as reported
by the Trust, and we add the per share amount of any dividends or capital gains
distributions paid by the Trust on that day. We divide this amount by the per
share net asset value on the preceding business day. Then, we subtract a daily
asset charge for each calendar day between business days (for example, a Monday
calculation may include charges for Saturday, Sunday and Monday). The daily
charge is currently at an effective annual rate of .60% and is guaranteed not to
exceed an effective annual rate of .70%. See CHARGES AGAINST THE SEPARATE
ACCOUNT on page 14. Finally, we reserve the right to subtract any daily charge
for taxes or amounts set aside as a reserve for taxes. For current Incentive
Life 2000 unit values, call (212) 714-5015.

TRANSFERS OF POLICY ACCOUNT VALUE. You may request a transfer of amounts from
any division of the Separate Account to any other division of the Separate
Account or to the Guaranteed Interest Division. Special rules apply to transfers
out of the Guaranteed Interest Division. See TRANSFERS FROM THE GUARANTEED
INTEREST DIVISION on page 6. You may make a transfer by telephone or by
submitting a written transfer request to our Administrative Office. Transfer
request forms are available from your Equitable agent or from our Administrative
Office. Special rules apply to telephone transfers. See TELEPHONE TRANSFERS on
page 11.

The minimum amount which may be transferred on any date will be shown on the
Policy Information Page and is usually $500. This minimum need not come from any
one division or be transferred to any one division as long as the total amount
transferred that day, including any amounts transferred to or from the
Guaranteed Interest Division, is at least equal to the minimum. However, we will
transfer the entire amount in any division of the Separate Account even if it is
less than the minimum specified in your policy. A lower minimum amount applies
to our Automatic Transfer Service which is described below.

Transfers take effect on the date we receive your request, but no earlier than
the first business day following the Allocation Date. When part of a transfer
request cannot be processed, we will not process any part of the request. This
could occur, for example, where the request does not comply with our transfer
limitations, or where the request is for a transfer from a division of an amount
greater than currently allocated to that division. We may delay making a
transfer if the New York Stock Exchange is closed or the SEC has declared that
an emergency exists. In addition, we may delay transfers where permitted under
applicable law.

AUTOMATIC TRANSFER SERVICE. The Automatic Transfer Service enables you to make
automatic monthly transfers out of the Money Market Division into the other
Separate Account divisions.

To start using this service you must first complete a special election form that
is available from your agent or our Administrative Office. You must also have a
minimum of $5,000 in the Money Market Division on the date the Automatic
Transfer Service is scheduled to begin. You can elect up to eight Separate
Account investment divisions for monthly transfers, but the minimum amount that
may be transferred to each division each month is $50.

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If you elect the Automatic Transfer Service with your policy application, the
automatic transfers will begin in the second policy month following the
Allocation Date. If you elect the Automatic Transfer Service after your
application has been submitted, automatic transfers will begin on the next
monthly processing date after we receive your election form at our
Administrative Office. See POLICY PERIODS, ANNIVERSARIES, DATES AND AGES on page
16.

The Automatic Transfer Service will remain in effect until the earliest of the
following events: (1) the funds in the Money Market Division are insufficient to
cover the automatic transfer amount; (2) the policy is in a grace period; (3) we
receive at our Administrative Office your written instruction to cancel the
Automatic Transfer Service; or (4) we receive notice of death under the policy.

Using the Automatic Transfer Service does not guarantee a profit or protect
against loss in a declining market.

TELEPHONE TRANSFERS. In order to make transfers by telephone, you must first
complete and return an authorization form. Authorization forms can be obtained
from your Equitable agent or our Administrative Office. The completed form MUST
be returned to our Administrative Office before requesting a telephone transfer.

Telephone transfers may be requested on each day we are open to transact
business. You will receive the division's unit values as of the close of
business on the day you call. We do not accept telephone transfer requests after
3:00 p.m. Eastern Time. Only one telephone transfer request is permitted per day
and it may not be revoked at any time. The telephone transfer requests are
automatically recorded and are invalid if incomplete information is given,
portions of the request are inaudible, no authorization form is on file, or the
request does not comply with the transfer limitations described above.

Procedures have been established by Equitable Variable that are considered to be
reasonable and are designed to confirm that instructions communicated by
telephone are genuine. Such procedures include requiring certain personal
identification information prior to acting on telephone instructions and
providing written confirmation of instructions communicated by telephone. If
Equitable Variable does not employ reasonable procedures to confirm that
instructions communicated by telephone are genuine, it may be liable for any
losses arising out of any action on its part or any failure or omission to act
as a result of its own negligence, lack of good faith, or willful misconduct. In
light of the procedures established, Equitable Variable will not be liable for
following telephone instructions that it reasonably believes to be genuine.

During times of extreme market activity it may be impossible to contact us to
make a telephone transfer. If this occurs, you should submit a written transfer
request to our Administrative Office. Our rules on telephone transfers are
subject to change and we reserve the right to discontinue telephone transfers in
the future.

CHARGE FOR TRANSFERS. We have reserved the right under your policy to make a
charge of up to $25 for transfers of Policy Account value. You will be able to
make 12 free transfers in any policy year, but we will charge $25 per transfer
after the twelfth transfer. All transfers made on one transfer request form will
count as one transfer, and all transfers made in one telephone request will
count as one transfer. Transfers made through the Automatic Transfer Service or
on the Allocation Date will not count toward the twelve free transfers. No
charge will ever apply to the transfer of all of your amounts in the Separate
Account to the Guaranteed Interest Division.

BORROWING FROM YOUR POLICY ACCOUNT

You may borrow up to 90% of your policy's Cash Surrender Value using only your
policy as security for the loan. Any new loan must be at least the minimum
amount shown on the Policy Information Page, usually $500. If you request an
additional loan, the additional amount requested will be added to the amount of
any outstanding loan and accrued loan interest. Any amount that secures a loan
remains part of your Policy Account but is assigned to the Guaranteed Interest
Division. This loaned amount earns an interest rate expected to be different
from the interest rate for unloaned amounts. Amounts securing a Living Benefit
payment are not available for policy loans.

HOW TO REQUEST A LOAN. You may request a loan by writing to our Administrative
Office. You should tell us how much of the loan you want taken from your
unloaned amount in the Guaranteed Interest Division and how much you want taken
from your amounts in the divisions of the Separate Account. If you request a
loan from a division of the Separate Account, we will redeem units sufficient to
cover that part of the loan and transfer the amount to the loaned portion of the
Guaranteed Interest Division. The amounts you have in each division will be
determined as of the day your request for a loan is received at our
Administrative Office.

If you do not indicate how you wish to allocate it, the loan will be allocated
according to the deduction allocation percentages applicable to your Policy
Account. If the loan cannot be allocated based on these percentages, it will be
allocated based on the proportions of your unloaned amounts in the Guaranteed
Interest Division and your value in each division of the Separate Account to the
unloaned value of your Policy Account.

POLICY LOAN INTEREST. Interest on a policy loan accrues daily at an adjustable
interest rate. We determine the rate at the beginning of each policy year. The
same rate applies to any outstanding policy loans and any new amounts you borrow
during the year. You will be notified of the current rate when you apply for a
loan. The maximum rate is the greater of 5%, or the "Published Monthly Average"
for the month that ends two months before the interest rate is set. The
"Published Monthly Average" is the Monthly Average Corporates yield shown in
Moody's Corporate Bond Yield Averages published by Moody's Investors Service,
Inc. If this average is no longer published, we will use any successor or the
average established by the insurance supervisory official of the jurisdiction in
which the policy is delivered. We will not charge more than the maximum rate
permitted by applicable law. We may also set a rate lower than the maximum.

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Any change in the rate from one year to the next will be at least 1/2%. Your
maximum loan interest rate will only change, therefore, if the Published Monthly
Average differs from the previous interest rate by at least 1/2 of 1%. You will
be notified in advance of any increase in the interest rate on any loan you have
outstanding.

When you borrow on your policy, the amount of your loan is set aside in the
Guaranteed Interest Division where it earns a declared rate for loaned amounts.
Loaned amounts will earn interest at a lower rate than the rate you are charged
for policy loan interest. Currently, for the first twenty policy years, the rate
we credit on loaned amounts is 1% less than the rate we charge for policy loan
interest. Beginning in the twenty-first policy year, the rate we currently
credit on loaned amounts is 1/2 of 1% less than the rate we charge for policy
loan interest. Because Incentive Life 2000 was offered for the first time in
1992, no reduction in the loan spread in the twenty-first policy year has yet
been attained. These loan spreads are those currently in effect and are not
guaranteed. However, the interest credited on loaned amounts will never be less
than 4%.

WHEN INTEREST IS DUE. Interest is due on each policy anniversary. If you do not
pay the interest when it is due, it will be added to your outstanding loan and
allocated based on the deduction allocation percentages for your Policy Account
which are then in effect. This means an additional loan is made to pay the
interest and amounts are transferred from the investment divisions to make the
loan. If the interest cannot be allocated on this basis, it will be allocated as
described above for allocating your loan.

REPAYING THE LOAN. You may repay all or part of a policy loan at any time. While
you have a policy loan and your policy is not in grace, we assume that any money
you send us is meant to repay the loan. If you wish to have any of these
payments applied as premium payments, you must specifically so indicate in
writing. Any amount not needed to repay a loan and accrued loan interest will be
applied as a premium payment. We will first allocate loan repayments to our
Guaranteed Interest Division until the amount of any loans originally allocated
to that division have been repaid. After you have repaid this amount, you may
choose how you want us to allocate the balance of any additional repayments. If
you do not provide specific instructions, repayments will be allocated on the
basis of your premium allocation percentages.

THE EFFECTS OF A POLICY LOAN. A loan will have a permanent effect on the value
of your Policy Account and, therefore, on the benefits under your policy, even
if the loan is repaid. The loaned amount set aside in the Guaranteed Interest
Division will not be available for investment in the divisions of the Separate
Account or in the unloaned portion of the Guaranteed Interest Division. Whether
you earn more or less with the loaned amount set aside depends on the investment
experience of the divisions of the Separate Account and the rates declared for
the unloaned portion of the Guaranteed Interest Division. The amount of any
policy loan and accrued loan interest will reduce the proceeds paid from your
policy upon the death of the insured person, policy maturity or policy
surrender. In addition, a loan will reduce the amount available for you to
withdraw from your policy. See TAX EFFECTS on page 16 for the tax consequences
of a policy loan. A loan may also affect the length of time that your insurance
remains in force because the amount set aside to secure your loan cannot be used
to cover the monthly deductions. See YOUR POLICY CAN TERMINATE on page 15.

PARTIAL WITHDRAWALS FROM YOUR POLICY ACCOUNT

At any time after the first policy year while the insured person is living, you
may request a partial withdrawal of your Net Cash Surrender Value by writing to
our Administrative Office. Any such withdrawal is subject to our approval and to
certain conditions. Amounts securing a Living Benefit payment are not available
for partial withdrawals. In addition, we reserve the right to decline a request
for a partial withdrawal. Under our current rules, a withdrawal must:

o be at least $500,

o not cause the death benefit to fall below the minimum Face Amount for which
we would issue the policy at the time, and

o not cause the policy to fail to qualify as life insurance under applicable
tax law.

PARTIAL WITHDRAWAL CHARGES. When you make a partial withdrawal, an expense
charge of $25 or 2% of the amount requested, whichever is less, will be deducted
from your Policy Account.

ALLOCATION OF PARTIAL WITHDRAWALS AND CHARGES. You may specify how much of the
withdrawal you want taken from amounts you have in each division of the Separate
Account and the unloaned portion of the Guaranteed Interest Division. The
related expense charge will also be deducted from these divisions. If you do not
specifically indicate, we will make the withdrawal and deduct the related
expense charge on the basis of your deduction allocation percentages. If we
cannot make the withdrawal and deduct the expense charge in the manner discussed
above, we will make the withdrawal and deduction based on the proportions of
your unloaned amounts in the Guaranteed Interest Division and the divisions of
the Separate Account to the total unloaned value of your Policy Account.

THE EFFECTS OF A PARTIAL WITHDRAWAL. A partial withdrawal reduces the amount you
have in your Policy Account and Cash Surrender Value. Normally, it also reduces
the death benefit on a dollar-for-dollar basis, but does not affect the net
amount at risk, which is the difference between the current death benefit and
the amount in your Policy Account. If you selected death benefit Option A, the
Face Amount of your policy will generally be reduced so that there will be no
change in the net amount at risk. However, under either option, if the death
benefit is based on the Policy Account percentage multiple, the reduction in
death benefit would be greater and the net amount at risk would be reduced. See
DEATH BENEFITS on page 7. The withdrawal and these reductions will be effective
as of the date your request is received at our Administrative Office. See TAX
EFFECTS on page 16 for the tax consequences of a partial withdrawal and for a
reduction in benefits.

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SURRENDER FOR NET CASH SURRENDER VALUE. The Cash Surrender Value is the amount
in your Policy Account minus the surrender charge described under SURRENDER
CHARGE on page 14. The Net Cash Surrender Value equals the Cash Surrender Value
minus any loan and accrued loan interest.

You may surrender your policy for its Net Cash Surrender Value at any time while
the insured person is living. See TAX EFFECTS on page 16 for the tax
consequences of a policy surrender. We will deduct from the Net Cash Surrender
Value any amount securing a Living Benefit payment. You may surrender the policy
by sending a written request and the policy to our Administrative Office. We
will compute the Net Cash Surrender Value as of the date we receive your request
and the policy at our Administrative Office. All insurance coverage under your
policy will end on that date.

DEDUCTIONS AND CHARGES

DEDUCTIONS FROM YOUR PREMIUMS. Charges for applicable taxes are deducted from
all premiums and a premium charge will be deducted from your premiums as
specified below. The balance of each premium (the net premium) is placed in your
Policy Account.

o CHARGES FOR APPLICABLE TAXES and all additional charges imposed on premium
payments by states and certain jurisdictions are deducted from each premium
payment. Such taxes currently range between .75% and 5% (Virgin Islands).
This tax is incurred by Equitable Variable, so you cannot deduct it on your
income tax return. The amount of the tax may vary depending on the
jurisdiction in which the insured person resides.

o This charge will be increased or decreased to reflect any legislative changes
in the applicable tax. In addition, if an insured person changes his or her
place of residence, you should notify us to change the charge to the tax rate
of the new jurisdiction. Any change will take effect on the next policy
anniversary.

o PREMIUM SALES CHARGE. 4% of each premium will be deducted to compensate us in
part for sales and promotional expenses in connection with selling Incentive
Life 2000, such as commissions, the cost of preparing sales literature, other
promotional activities and other direct and indirect expenses. We pay these
expenses from our own resources, including the premium sales charge, any
surrender charge we might collect and any profit we may earn on the charges
deducted under the policy. See SURRENDER CHARGE on page 14. Currently, we
deduct the premium sales charge from each premium payment until the
cumulative amount deducted equals our current maximum premium sales charge.
The current maximum premium sales charge is equal to 40% of one "sales load
target premium" established at issue. The sales load target premium varies by
issue age, sex and smoker/non-smoker status of the insured person and the
policy's Face Amount at issue, and is always less than or equal to 75% of one
annual whole life premium calculated at 4% interest and guaranteed maximum
cost of insurance and expense charges. However, if you increase the Face
Amount, we may establish a new maximum amount corresponding to the amount of
the increase. We reserve the right, however, to deduct the guaranteed maximum
charge of 4% of each premium payment at any time during the life of the
policy.

DEDUCTIONS FROM YOUR POLICY ACCOUNT. At the beginning of each policy month, the
following charges are deducted from your Policy Account:

o MONTHLY ADMINISTRATIVE CHARGE. During the first policy year, $25 per month is
deducted for policies with Face Amounts of $500,000 or more and $55 per month
is deducted for policies with Face Amounts under $500,000. During subsequent
policy years, a $5 per month charge will be deducted regardless of Face
Amount, subject to a guaranteed maximum of $8 per month. The administrative
charge is designed to cover the costs of issuing your policy and the costs of
maintaining your policy, such as billing, policy transactions and policyowner
communications. This charge is designed to reimburse us for expenses and we
do not expect to profit from it.

o COST OF INSURANCE CHARGE. The cost of insurance charge is calculated by
multiplying the net amount at risk at the beginning of the policy month by
the monthly cost of insurance rate applicable to the insured person at that
time. The net amount at risk is the difference between the current death
benefit and the amount in your Policy Account.

Your cost of insurance charge will vary from month to month with changes in
the net amount at risk. For example, if the current death benefit for the
month is increased because the death benefit is based on a percentage
multiple of the Policy Account, then the net amount at risk for the month
will increase. Assuming the percentage multiple is not in effect, increases
or decreases to the Policy Account will result in a corresponding decrease or
increase to the net amount at risk under Option A policies, but no change to
the net amount at risk under Option B-PLUS policies. Increases or decreases
to the Policy Account can result from making premium payments, investment
experience or the deduction of charges.

The monthly cost of insurance rate applicable to your policy will be based on
our current monthly cost of insurance rates. After the first policy year, the
current monthly cost of insurance rates may be changed from time to time.
However, the current rates will never be more than the guaranteed maximum
rates set forth in your policy. The guaranteed rates are based on the
Commissioner's 1980 Standard Ordinary Male and Female Smoker and Non-Smoker
Mortality Tables. The current and guaranteed monthly cost of insurance rates
are determined based on the sex, age, rating class and smoker/non-smoker
status of the insured person. In addition, the current rates also vary
depending on the duration of the policy (i.e., the length of time since a
policy has been issued).

Beginning in the sixth policy year, current monthly cost of insurance charges
are reduced by an amount equal to a percentage of your unloaned Policy
Account Value on the date such charges are assessed. These percentages begin
at an annual effective rate of .05% and increase annually. This cost of
insurance charge reduction applies on a current basis and is not guaranteed.
Because Incentive Life 2000 was offered for the first time in 1992, no
reduction of cost of insurance charges in the sixth policy year has yet been
attained.

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Lower current cost of insurance rates apply at most ages for insured persons
who qualify as non-smokers. To qualify, an insured person must meet
additional requirements that relate to smoking habits. In addition, the
insured person must be age twenty or over. Insured persons who are under
twenty years of age may ask us to review their current smoking habits when
they reach the policy anniversary nearest their twentieth birthday.

There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life 2000 policies sold in Massachusetts and Montana. Policyowners
in these states should disregard the references to sex in this prospectus.
Cost of insurance rates applicable to a policy issued in these states will
not be greater than the comparable male rates set forth or illustrated in
this prospectus. Similarly, illustrated policy values in Part 4 would be no
less favorable for comparable policies issued in these states. The guaranteed
cost of insurance rates for Incentive Life 2000 policies in these states are
based on the Commissioner's 1980 Standard Ordinary SB Smoker and NB
Non-Smoker Mortality Table.

Congress and the legislatures of various states have from time to time
considered legislation that would require insurance rates to be the same for
males and females of the same age, rating class and smoker/non-smoker status.
In addition, employers and employee organizations should consider, in
consultation with counsel, the impact of Title VII of the Civil Rights Act of
1964 on the purchase of Incentive Life 2000 in connection with an
employment-related insurance or benefit plan. The United States Supreme Court
held, in a 1983 decision, that, under Title VII, optional annuity benefits
under a deferred compensation plan could not vary on the basis of sex.

o CHARGES FOR ADDITIONAL BENEFITS. The cost of any additional benefits you
choose will be deducted monthly. Your policy contains tables showing the
guaranteed maximum rates for all of these insurance costs.

Any changes in the cost of insurance rates, charges for additional benefits,
premium sales charge, mortality and expense risk charge or administrative
charges will be by class of insured person and will be based on changes in
future expectations about such factors as investment earnings, mortality, the
length of time policies will remain in effect, expenses and taxes.

In addition to the monthly deductions from your Policy Account described above,
we charge fees for certain policy transactions: see PARTIAL WITHDRAWALS FROM
YOUR POLICY ACCOUNT on page 12, CHANGES IN INSURANCE PROTECTION on page 8,
TRANSFERS OF POLICY ACCOUNT VALUE on page 10. Also, if, after your policy is
issued, you request more than one illustration in a policy year, we may charge a
fee. See ILLUSTRATIONS OF POLICY BENEFITS on page 25.

HOW POLICY ACCOUNT CHARGES ARE ALLOCATED. Generally, deductions from your Policy
Account for monthly charges are made from the divisions of our Separate Account
and the unloaned portion of our Guaranteed Interest Division in accordance with
the deduction allocation percentages specified in your application unless you
instruct us in writing to do otherwise. See FLEXIBLE PREMIUMS on page 7. If a
deduction cannot be made in accordance with these percentages, it will be made
based on the proportions that your unloaned amounts in the Guaranteed Interest
Division and your amounts in the divisions of the Separate Account bear to the
total unloaned value of your Policy Account.

CHARGES AGAINST THE SEPARATE ACCOUNT. These charges are reflected in the unit
values for the divisions of the Separate Account. See HOW WE DETERMINE THE UNIT
VALUE on page 10.

o A charge for assuming MORTALITY AND EXPENSE RISKS will be made. The annual
current rate is .60%. The annual guaranteed rate is .70%. We are committed to
fulfilling our obligations under the policy and providing service to you over
the lifetime of your policy. Despite the uncertainty of future events, we
guarantee that monthly administrative and cost of insurance deductions from
your Policy Account will never be greater than the maximum amounts shown in
your policy. In making this guarantee, we assume the mortality risk that
insured persons will live for shorter periods than we estimated. When this
happens, we have to pay a greater amount of death benefit than we expected to
pay in relation to the cost of insurance charges we received. We also assume
the expense risk that the cost of issuing and administering policies will be
greater than we expected. If the amount collected from this charge exceeds
losses from the risks assumed, it will be to our profit.

o We reserve the right to make a charge in the future for taxes or reserves set
aside for taxes, which will reduce the investment experience of the divisions
of the Separate Account. See TAX EFFECTS on page 16.

TRUST CHARGES. Our Separate Account purchases shares of the Trust at net asset
value. That price reflects investment management fees and other direct expenses
that have already been deducted from the assets of the Trust. The Trust does not
impose a sales charge. See THE TRUST'S INVESTMENT ADVISER on page 4.

SURRENDER CHARGE. There will be a difference between the amount in your Policy
Account and the Cash Surrender Value of your policy for at least the first
fifteen policy years. This difference is the surrender charge, a contingent
deferred sales load. See also PREMIUM SALES CHARGE on page 13. It is a
contingent load because you pay it only if you surrender your policy, reduce its
Face Amount or let it terminate. It is a deferred load because we do not deduct
it from your premiums. Because the surrender charge is contingent and deferred,
the amount we might collect in a policy year is not related to the actual sales
expenses for that year. If you increase the policy's Face Amount above the
previous highest Face Amount (computed without regard to changes in Face Amount
resulting from changing the death benefit option), an additional surrender
charge will apply to the amount of the increase for fifteen years commencing on
the effective date of the increase.

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To determine surrender charges, "target" premiums are used. Target premiums are
not based on the "planned" premium you determine. See FLEXIBLE PREMIUMS on page
7. Target premiums are actuarially determined based on the age and
smoker/non-smoker status of the insured person and the Face Amount. Except in
certain circumstances, the sex of the insured person is also a factor in
determining target premiums. See COST OF INSURANCE CHARGE on page 13. Target
premiums used for surrender charge purposes are always less than or equal to a
sales load target premium described on the preceding page.

The maximum surrender charge for the initial Face Amount of your policy (the
"base policy") will be shown on the Policy Information Page and will equal 66%
of one target premium. This maximum will not vary based on the amount of
premiums you pay or when you pay them. After the first nine policy years, this
maximum surrender charge on the base policy begins to decrease by 11% per year
on a monthly basis for policy years ten through fifteen. After fifteen years,
the surrender charge attributable to the base policy expires.

Subject to the maximum, the surrender charge is calculated based on actual
premium payments. The surrender charge for the base policy equals 26% of premium
payments made during the first policy year up to the amount of one target
premium and 5% of any additional premiums paid during the first fifteen policy
years attributable to the base policy.

Attempting to structure the timing and amount of premium payments to reduce the
potential surrender charge below the maximum is not recommended. Paying small
amounts of premium in the policy's first fifteen years to reduce the potential
surrender charge could increase the risk that your policy will terminate without
value. If payments are structured in this manner, the amount in your Policy
Account would need to receive favorable investment performance for your policy
not to terminate (performance in which, as a result of the payment structure,
you would not fully participate).

If you increase the Face Amount of your policy above the previous highest Face
Amount (computed without regard to changes in Face Amount resulting from
changing the death benefit option), we will establish an additional surrender
charge corresponding to the increased amount. An additional target premium
attributable to the increase will be established and the additional surrender
charge will be subject to the same maximum percentage of 66%. This maximum will
start to decline in the tenth year after the increase in the same manner as the
surrender charge on the base policy.

A portion of each premium payment made after a Face Amount increase will be
deemed to be attributable to such increase, even if you do not increase the
amount or frequency of your premium payments. The allocation of premiums between
the base policy and Face Amount increases is actuarially determined in
accordance with SEC regulations. The additional surrender charge will equal 26%
of premium payments that are attributable to the Face Amount increase made
during the first year following such increase (up to the amount of one target
premium attributable to such increase) and 5% of any additional premiums that
are attributable to the Face Amount increase during the first fifteen years
following such increase.

If you request a Face Amount reduction, we will consider it a partial surrender
and may deduct a portion of the surrender charge. Assuming you have not made a
Face Amount increase, the pro rata surrender charge for a partial surrender will
be determined by dividing the amount of the Face Amount decrease by the initial
Face Amount and multiplying that fraction by the surrender charge. Face Amount
reductions will be applied against prior Face Amount increases, if any, in the
reverse order in which such increases occurred, and then to the original Face
Amount. See TAX EFFECTS on page 16 for a discussion of the tax consequences of
changing the Face Amount.

ADDITIONAL INFORMATION ABOUT INCENTIVE LIFE 2000

YOUR POLICY CAN TERMINATE. Your insurance coverage under Incentive Life 2000
continues as long as the Net Cash Surrender Value of the policy is enough to pay
the monthly deductions. The Net Cash Surrender Value equals the Cash Surrender
Value minus any loan and accrued loan interest. If the Net Cash Surrender Value
at the beginning of any policy month is less than the deductions for that month,
a 61-day grace period will begin. While a policy is in a grace period, you may
not transfer Policy Account value, increase or decrease the Face Amount or make
a partial withdrawal.

We will notify you, and any assignees on our records, in writing, that the grace
period has begun and indicate the payment that is needed to avoid policy
termination at the end of the grace period. The required payment will
approximate an amount which would increase the Net Cash Surrender Value to cover
total monthly deductions for three months (without regard to any investment
performance in the Policy Account). The required payment and any residual Policy
Account value will be used to cover the overdue deductions. However, if your
Policy Account has unfavorable investment experience, the required payment may
not be sufficient to cover the overdue deductions on the date we receive the
payment. In this case, a new 61-day grace period will begin.

If we do not receive payment within the 61 days, your policy will terminate
without value. We will withdraw any amount left in your Policy Account and apply
this amount to the overdue deductions, any applicable surrender charges and any
unpaid loan and accrued loan interest. We will inform you, and any assignee, at
last known addresses that your policy has ended without value. See TAX EFFECTS
on page 16 for the potential tax consequences of the termination of a policy.

YOU MAY RESTORE A POLICY AFTER IT TERMINATES. You may restore a policy within
six months after it terminates if:

o you provide evidence that the insured person (and any other person insured
under a rider) is still insurable, and

o you make the premium payment that we require to restore the policy.

The policy will be restored as of the beginning of the policy month which
coincides with or follows the date we approve your application. Previous loans
will not be reactivated.

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From the required payment we will deduct the charge for applicable taxes and the
premium sales charge. On the effective date of restoration, the Policy Account
will be equal to the balance of the required payment plus a surrender charge
credit. This credit will be equal to the amount of the surrender charge
applicable at the beginning of the grace period, but not greater than the
maximum surrender charge as of the effective date of restoration. We will start
to make monthly deductions as of the effective date of restoration. On that
date, the monthly administrative charges from the beginning of the grace period
to the effective date of restoration will be deducted from the Policy Account.
See TAX EFFECTS on page 16 for the potential tax consequences of restoring a
terminated policy. Some states may vary the time period and conditions for
policy restoration.

POLICY PERIODS, ANNIVERSARIES, DATES AND AGES. When an application for an
Incentive Life 2000 policy is completed and submitted to us, we decide whether
or not to issue the policy. This decision is made based on the information in
the application and our standards for issuing insurance and classifying risks.
If we decide not to issue a policy, any premium paid will be refunded.

The Issue Date, shown on the Policy Information Page, is the date your policy is
actually issued. Generally, contestability is measured from the Issue Date, as
is the suicide exclusion.

The Final Policy Date is the policy anniversary nearest the insured person's
100th birthday. The policy ends on that date and the maturity benefit is paid if
the insured person is still alive.

The Register Date, also shown on the Policy Information Page, is used to measure
policy years and policy months. Charges and deductions are first made as of the
Register Date. As to when coverage under the policy begins, see FLEXIBLE
PREMIUMS on page 7.

Generally, we determine the Register Date based upon when we receive your full
initial premium. In most cases:

o If you submit the full initial premium to your Equitable agent at the time
you sign the application, and we issue the policy as it was applied for, then
the Register Date will be the later of (a) the date part I of the policy
application was signed or, (b) the date part II of the policy application was
signed by a medical professional.

o If we do not receive your full initial premium at our Administrative Office
before the Issue Date or, if the policy is not issued as applied for, the
Register Date will be the same as the Issue Date.

We may permit corporate policyowners to backdate a Register Date (up to six
months) in order to coordinate a single premium payment date for all employees.
We may also permit policyowners to advance a Register Date (up to three months)
in employer sponsored payroll deduction cases. Backdating the Register Date (up
to six months) may also be permitted to save age.

The investment start date is the date that your initial net premium begins to
vary with the investment performance of the divisions of the Separate Account or
accrue interest in the Guaranteed Interest Division. Generally, the investment
start date will be the same as the Register Date if the full initial premium is
received at our Administrative Office before the Register Date. Otherwise, the
investment start date will be the date the full initial premium is received at
our Administrative Office. Thus, to the extent that your first premium is
received before the Register Date, there will be a period during which the
initial premium will not be invested. The investment start date for policies
with backdated Register Dates will be the date the premium is received at our
Administrative Office. Any subsequent premium payment received after the
investment start date will begin to experience investment performance as of the
date such payment is received at our Administrative Office. Remember, the amount
of your initial net premium allocated to the Separate Account divisions may be
temporarily allocated to the Money Market Division of the Separate Account prior
to allocation in accordance with your instructions. See FLEXIBLE PREMIUMS on
page 7.

Generally, when we refer to the age of the insured person, we mean his or her
age on the birthday nearest to the beginning of the particular policy year.

TAX EFFECTS

This discussion is based on our understanding of the effect of the current
Federal income tax laws as currently interpreted on Incentive Life 2000 policies
owned by U.S. resident individuals. The tax effects on corporate taxpayers
subject to the Federal alternative minimum tax, non-U.S. residents or non-U.S.
citizens, may be different. This discussion is general in nature, and should not
be considered tax advice, for which you should consult your legal or tax
adviser.

POLICY PROCEEDS. An Incentive Life 2000 policy will be treated as "life
insurance" for Federal income tax purposes if it meets the definitional
requirement of the Internal Revenue Code (the Code) and as long as the
portfolios of the Trust satisfy the diversification requirements under the Code.
We believe that Incentive Life 2000 will meet these requirements, and that under
Federal income tax law:

o the death benefit received by the beneficiary under your Incentive Life 2000
policy will not be subject to Federal income tax; and

o as long as your policy remains in force, increases in the Policy Account
value as a result of interest or investment experience will not be subject to
Federal income tax unless and until there is a distribution from your policy,
such as a loan or a partial withdrawal.

Special tax rules may apply, however, if you transfer your ownership of the
policy. Consult your tax adviser before any transfer of your policy.

The Federal income tax consequences of a distribution from your policy will
depend on whether your policy is determined to be a "modified endowment." The
character of any income recognized will be ordinary income as opposed to capital
gain.

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A MODIFIED ENDOWMENT IS a life insurance policy which fails to meet a
"seven-pay" test. In general, a policy will fail the seven-pay test if the
cumulative amount of premiums paid under the policy at any time during the first
seven policy years exceeds a calculated premium level. The calculated seven-pay
premium level is based on a hypothetical policy issued on the same insured
person and for the same initial death benefit which, under specified conditions
(which include the absence of expense, administrative and surrender charges),
would be fully paid for after seven level annual payments. Your policy will be
treated as a modified endowment unless the cumulative premiums paid under your
policy, at all times during the first seven policy years, are less than or equal
to the cumulative seven-pay premiums which would have been paid under the
hypothetical policy on or before such times.

Whenever there is a "material change" under a policy, it will generally be
treated as a new contract for purposes of determining whether the policy is a
modified endowment, and subjected to a new seven-pay period and a new seven-pay
limit. The new seven-pay limit would be determined taking into account, under a
downward adjustment formula, the Policy Account value of the policy at the time
of such change. A materially changed policy would be considered a modified
endowment if it failed to satisfy the new seven-pay limit. A material change
would occur if there was a substitution of the insured person, and could also
occur as a result of a change in death benefit option, the selection of
additional benefits, an increase in Face Amount and certain other changes.

If the benefits are reduced during the first seven policy years after entering
into the policy (or within seven years after a material change), for example, by
requesting a decrease in Face Amount or in some cases, by making a partial
withdrawal or terminating additional benefits under a rider, the calculated
seven-pay premium level will be redetermined based on the reduced level of
benefits and applied retroactively for purposes of the seven-pay test. If the
premiums previously paid are greater than the recalculated seven-pay premium
level limit, the policy will become a modified endowment. Generally, a life
insurance policy which is received in exchange for a modified endowment will
also be considered a modified endowment.

Changes made to a life insurance policy, for example, a decrease in benefits or
the termination of or restoration of a terminated policy, may have other effects
on your policy, including impacting the maximum amount of premiums that can be
paid under the policy, as well as the maximum amount of Policy Account value
that may be maintained under the policy. In some cases, this may cause us to
take action in order to assure your policy continues to qualify as life
insurance. See POLICY CHANGES on page 18.

IF YOUR INCENTIVE LIFE 2000 POLICY IS NOT A MODIFIED ENDOWMENT, as long as it
remains in force, a loan under your policy will be treated as indebtedness and
no part of the loan will be subject to current Federal income tax. Interest on
the loan will generally not be tax deductible. After the first 15 policy years,
the proceeds from a partial withdrawal will not be subject to Federal income tax
except to the extent such proceeds exceed your "Basis" in your policy. Your
Basis in your policy generally will equal the premiums you have paid less any
amounts previously recovered through tax-free policy distributions. During the
first fifteen policy years, the proceeds from a partial withdrawal could be
subject to Federal income tax to the extent your Policy Account value exceeds
your Basis in your policy. The portion subject to tax will depend upon the ratio
of your death benefit to the Policy Account value (or in some cases, the
premiums paid) under your policy and the age of the insured person at the time
of the withdrawal. In addition, if at any time your policy is surrendered, the
excess, if any, of your Cash Surrender Value (which includes the amount of
policy loan and accrued loan interest) over your Basis will be subject to
Federal income tax. In addition, if a policy terminates while there is a policy
loan, the cancellation of such loan and accrued loan interest will be treated as
a distribution and could be subject to tax under the above rules. On the Final
Policy Date, the excess of the amount of any benefit paid, not taking into
account any reduction for any loan and accrued loan interest, over your Basis in
the policy, will be subject to Federal income tax.

IF YOUR POLICY IS A MODIFIED ENDOWMENT, any distribution from your policy will
be taxed on an "income-first" basis. Distributions for this purpose include a
loan (including any increase in the loan amount to pay interest on an existing
loan or an assignment or a pledge to secure a loan) or partial withdrawal. Any
such distributions will be considered taxable income to you to the extent your
Policy Account value exceeds your Basis in the policy. For modified endowments,
your Basis would be increased by the amount of any prior loan under your policy
that was considered taxable income to you. For purposes of determining the
taxable portion of any distribution, all modified endowments issued by the same
insurer or an affiliate to the same policyowner (excluding certain qualified
plans) during any calendar year are to be aggregated. The Secretary of the
Treasury has authority to prescribe additional rules to prevent avoidance of
"income-first" taxation on distributions from modified endowments.

A 10% penalty tax will also apply to the taxable portion of a distribution from
a modified endowment. The penalty tax will not, however, apply to distributions
(i) to taxpayers 591/2 years of age or older, (ii) in the case of a disability
(as defined in the Code) or (iii) received as part of a series of substantially
equal periodic annuity payments for the life (or life expectancy) of the
taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his
beneficiary. If your policy is surrendered, the excess, if any, of your Cash
Surrender Value over your Basis will be subject to Federal income tax and,
unless one of the above exceptions applies, the 10% penalty tax. If your policy
terminates while there is a policy loan, the cancellation of such loan and
accrued loan interest will be treated as a distribution to the extent not
previously treated as such and could be subject to tax, including the penalty
tax, as described under the above rules. In addition, upon the Final Policy Date
the excess of the amount of any benefit paid, not taking into account any
reduction for any loan and accrued loan interest, over your Basis in the policy,
will be subject to Federal income tax and, unless an exception applies, a 10%
penalty tax.

If your policy becomes a modified endowment, distributions that occur during the
policy year it becomes a modified endowment and any subsequent policy year will
be taxed as described in the two preceding paragraphs. In addition distributions
from a policy within two years before it becomes a modified endowment will be
subject to tax in this manner. THIS MEANS THAT A DISTRIBUTION MADE FROM A POLICY

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THAT IS NOT A MODIFIED ENDOWMENT COULD LATER BECOME TAXABLE AS A DISTRIBUTION
FROM A MODIFIED ENDOWMENT. The Secretary of the Treasury has been authorized to
prescribe rules which would treat similarly other distributions made in
anticipation of a policy becoming a modified endowment.

DIVERSIFICATION. Under Section 817(h) of the Code, the Secretary of the Treasury
has the authority to set standards for diversification of the investments
underlying variable life insurance policies. The Treasury Department has issued
final regulations regarding the diversification requirements. Failure to meet
these requirements would disqualify your policy as a variable life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to Federal income tax on the income under the policy. The Separate
Account, through the Trust, intends to comply with these requirements.

In connection with the issuance of the then temporary diversification
regulations, the Treasury Department stated that it anticipated the issuance of
regulations or rulings prescribing the circumstances in which the ability of a
policyowner to direct his investment to particular divisions of a separate
account may cause the policyowner, rather than the insurance company, to be
treated as the owner of the assets in the account. If you were considered the
owner of the assets of the Separate Account, income and gains from the account
would be included in your gross income for Federal income tax purposes. Under
current law we believe that Equitable Variable, and not the owner of the policy,
would be considered the owner of the assets of the Separate Account.

POLICY CHANGES. For you and your beneficiary to receive the tax treatment
discussed above, your policy must initially qualify and continue to qualify as
life insurance under Sections 7702 and 817(h) of the Code. We have reserved in
the policy the right to decline to accept all or part of any premium payments,
decline to change death benefits, or decline to make partial withdrawals that
would cause your policy to fail to qualify. We may also make changes in the
policy or its riders or require additional premium payments or make
distributions from the policy to the extent we deem necessary to qualify your
policy as life insurance for tax purposes. Any such change will apply uniformly
to all policies that are affected. You will be given advance written notice of
such changes.

TAX CHANGES. The United States Congress has in the past considered, is currently
considering and may in the future consider legislation that, if enacted, could
change the tax treatment of life insurance policies. In addition, the Treasury
Department may amend existing regulations, issue new regulations, or adopt new
interpretations of existing laws. State tax laws or, if you are not a United
States resident, foreign tax laws, may affect the tax consequences to you, the
insured person or your beneficiary. These laws may change from time to time
without notice and, as a result, the tax consequences may be altered. There is
no way of predicting whether, when or in what form any such change would be
adopted. Any such change could have retroactive effect regardless of the date of
enactment. We suggest you consult your legal or tax adviser.

ESTATE AND GENERATION SKIPPING TAXES. If the insured person is the policyowner,
the death benefit under Incentive Life 2000 will generally be includable in the
policyowner's estate for purposes of Federal estate tax. If the policyowner is
not the insured person, under certain conditions only the Cash Surrender Value
of the policy would be so includable. Federal estate tax is integrated with
Federal gift tax under a unified rate schedule. In general, estates less than
$600,000 will not incur a Federal estate tax liability. In addition, an
unlimited marital deduction may be available for Federal estate tax purposes.

As a general rule, if a "transfer" is made to a person two or more generations
younger than the policyowner, a generation skipping tax may be payable at rates
similar to the maximum estate tax rate in effect at the time. The generation
skipping tax provisions generally apply to "transfers" which would be subject to
the gift and estate tax rules. Individuals are generally allowed an aggregate
generation skipping tax exemption of $1 million. Because these rules are
complex, you should consult with your tax adviser for specific information,
especially where benefits are passing to younger generations.

The particular situation of each policyowner or beneficiary will determine how
ownership or receipt of policy proceeds will be treated for purposes of Federal
estate and generation skipping taxes as well as state and local estate,
inheritance and other taxes.

PENSION AND PROFIT-SHARING PLANS. If Incentive Life 2000 policies are purchased
by a fund which forms part of a pension or profit-sharing plan qualified under
Sections 401(a) or 403 of the Code for the benefit of participants covered under
the plan, the Federal income tax treatment of such policies will be somewhat
different from that described above.

If purchased as part of a pension or profit-sharing plan, the current cost of
insurance for the net amount at risk is treated as a "current fringe benefit"
and is required to be included annually in the plan participant's gross income.
This cost (generally referred to as the "P.S. 58" cost) is reported to the
participant annually. If the plan participant dies while covered by the plan and
the policy proceeds are paid to the participant's beneficiary, then the excess
of the death benefit over the Policy Account value will not be subject to
Federal income tax. However, the Policy Account value will generally be taxable
to the extent it exceeds the sum of $5,000 plus the participant's cost basis in
the policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant had borrowed from his Policy Account or was an
owner-employee under the plan.

There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit-sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax qualified plan. You should consult your legal adviser.

OTHER EMPLOYEE BENEFIT PROGRAMS. Complex rules may apply when a policy is held
by an employer or a trust, or acquired by an employee, in connection with the
provision of employee benefits. These policyowners also must consider whether
the policy was applied for by or issued to a person having an insurable interest
under applicable state law, as the lack of insurable interest may, among other

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things, affect the qualification of the policy as life insurance for Federal
income tax purposes and the right of the beneficiary to death benefits.
Employees and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement Income Security Act of
1974 (ERISA). You should consult your legal adviser.

OUR TAXES. Under the life insurance company tax provisions of the Code, variable
life insurance is treated in a manner consistent with fixed life insurance. The
operations of the Separate Account are reported in our Federal income tax return
but we currently pay no income tax on investment income and capital gains
reflected in variable life insurance policy reserves. Therefore, no charge is
currently being made to any division of the Separate Account for taxes. We
reserve the right to make a charge in the future for taxes incurred, for
example, a charge to the Separate Account for income taxes incurred by us that
are allocable to the policy.

We may have to pay state, local or other taxes in addition to applicable taxes
based on premiums. At present, these taxes are not substantial. If they
increase, charges may be made for such taxes when they are attributable to the
Separate Account or allocable to the policy.

WHEN WE WITHHOLD INCOME TAXES. Generally, unless you provide us with a written
election to the contrary before we make the distribution, we are required to
withhold income tax from any portion of the money you receive if the withdrawal
of money from your Policy Account or the surrender or the maturity of your
policy is a taxable transaction. If you do not wish us to withhold tax from the
payment, or if enough is not withheld, you may have to pay later. You may also
have to pay penalties under the tax rules if your withholding and estimated tax
payments are insufficient. In some cases, where generation skipping taxes may
apply, we may also be required to withhold for such taxes unless we are provided
satisfactory written notification that no such taxes are due.

PART 3: ADDITIONAL INFORMATION

YOUR VOTING PRIVILEGES

TRUST VOTING PRIVILEGES. As explained in Part 1, we invest the assets in the
divisions of our Separate Account in shares of the corresponding Trust
portfolios. Equitable Variable is the legal owner of the shares and will attend,
and has the right to vote at, any meeting of the Trust's shareholders. Among
other things, we may vote on any matters described in the Trust's prospectus or
requiring a vote by shareholders under the Investment Company Act of 1940 (the
Act).

Even though we own the shares, to the extent required by the Act, you will have
the opportunity to tell us how to vote the number of shares that can be
attributed to your policy. We will vote those shares at meetings of Trust
shareholders according to your instructions. If we do not receive instructions
in time from all policyowners, we will vote shares in a portfolio for which no
instructions have been received in the same proportion as we vote shares for
which we have received instructions in that portfolio. We will vote any Trust
shares that we are entitled to vote directly due to amounts we have accumulated
in our Separate Account in the same proportions that all policyowners vote,
including those who participate in other separate accounts. If the Federal
securities laws or regulations or interpretations of them change so that we are
permitted to vote shares of the Trust in our own right or to restrict
policyowner voting, we may do so.

HOW WE DETERMINE YOUR VOTING SHARES. You may participate in voting only on
matters concerning the Trust portfolios corresponding to the Separate Account
divisions to which your Policy Account is allocated. The number of Trust shares
in each division that are attributable to your policy is determined by dividing
the amount in your Policy Account allocated to that division by the net asset
value of one share of the corresponding Trust portfolio as of the record date
set by the Trust's Board for the Trust's shareholders meeting. The record date
for this purpose must be at least 10 and no more than 90 days before the meeting
of the Trust. Fractional shares are counted.

If you are entitled to give us voting instructions, we will send you proxy
material and a form for providing voting instructions. In certain cases, we may
disregard instructions relating to changes in the Trust's adviser or the
investment policies of its portfolios. We will advise you if we do and detail
the reasons in the next semiannual report to policyowners.

SEPARATE ACCOUNT VOTING RIGHTS. Under the Act, certain actions (such as some of
those described under OUR RIGHT TO CHANGE HOW WE OPERATE, below) may require
policyowner approval. In that case, you will be entitled to one vote for every
$100 of value you have in the divisions of the Separate Account. We will cast
votes attributable to amounts we have in the divisions of the Separate Account
in the same proportions as votes cast by policyowners.

OUR RIGHT TO CHANGE HOW WE OPERATE

In addition to changing or adding investment companies, we have the right to
modify how we or the Separate Account operate. We intend to comply with
applicable law in making any changes and, if necessary, we will seek policyowner
approval. We have the right to:

o add divisions to, or remove divisions from, the Separate Account, combine two
or more divisions within the Separate Account, or withdraw assets relating to
Incentive Life 2000 from one division and put them into another;

o register or end the registration of the Separate Account under the Act;

o operate the Separate Account under the direction of a committee or discharge
such a committee at any time (the committee may be composed entirely of
persons who are "interested persons" of Equitable Variable under the Act);

o restrict or eliminate any voting rights of policyowners or other people who
have voting rights that affect the Separate Account;

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o operate the Separate Account or one or more of the divisions in any other
form the law allows, including a form that allows us to make direct
investments. Our Separate Account may be charged an advisory fee if its
investments are made directly rather than through an investment company. We
may make any legal investments we wish. In choosing these investments, we
will rely on our own or outside counsel for advice. In addition, we may
disapprove any change in investment advisers or in investment policy unless a
law or regulation provides differently.

If any changes are made that result in a material change in the underlying
investments of a division, you will be notified as required by law. We may, for
example, cause the division to invest in a mutual fund other than, or in
addition to, the Trust. If you then wish to transfer the amount you have in that
division to another division of the Separate Account or to the Guaranteed
Interest Division, you may do so, without charge, by contacting our
Administrative Office. At the same time, you may also change how your net
premiums and deductions are allocated.

OUR REPORTS TO POLICYOWNERS

Shortly after the end of each policy year you will receive a report that
includes information about your policy's current death benefit, Policy Account
value, Cash Surrender Value and policy loan. Notices will be sent to you to
confirm premium payments (except premiums paid through an automated
arrangement), transfers of amounts between investment divisions and certain
other policy transactions.

LIMITS ON OUR RIGHT TO CHALLENGE THE POLICY

We can challenge the validity of your insurance policy based on material
misstatements in your application and any application for change. However, there
are some limits on how and when we can challenge the policy.

o We cannot challenge the policy after it has been in effect, during the
insured person's lifetime, for two years from the date the policy was issued
or restored after termination. (Some states may require that we measure this
time in some other way.)

o We cannot challenge any policy change that requires evidence of insurability
(such as an increase in Face Amount or a substitution of insured person)
after the change has been in effect for two years during the insured person's
lifetime.

o We cannot challenge an additional benefit rider that provides benefits in the
event that the insured person becomes totally disabled, after two years from
the later of the Issue Date or the date as of which the additional benefit
rider became effective. We can require proof of continuing disability while
such a rider is in effect as specified in the rider.

If the insured person dies within the time that we may challenge the validity of
the policy, we may delay payment until we decide whether to challenge the
policy. If the insured person's age or sex is misstated on any application, the
death benefit and any additional benefits provided will be those which would be
purchased by the most recent deduction for the cost of insurance and the cost of
any additional benefits at the insured person's correct age and sex.

If the insured person commits suicide within two years after the date on which
the policy was issued, the death benefit will be limited to the total of all
premiums that have been paid to the time of death minus any outstanding policy
loan, accrued loan interest and any partial withdrawals of Net Cash Surrender
Value. If the insured person commits suicide within two years after the
effective date of an increase in Face Amount that you requested, we will pay the
death benefit based on the Face Amount which was in effect before the increase,
plus the monthly cost of insurance deductions for the increase (including the
transaction charge for the Face Amount increase). A new two-year suicide and
contestability period will begin on the date of substitution following a
substitution of insured. Some states require that we measure this time by some
other date.

YOUR PAYMENT OPTIONS

Policy benefits or other payments, such as the Net Cash Surrender Value, may be
paid immediately in one sum or you may choose another form of payment for all or
part of the money. Payments under these options are not affected by the
investment experience of any division of the Separate Account. Instead, interest
accrues pursuant to the options chosen.

You will make a choice of payment option (or any later changes) and your choice
will take effect in the same way as it would if you were changing a beneficiary.
(See YOUR BENEFICIARY on page 21). If you do not arrange for a specific form of
payment before the insured person dies, the beneficiary will be paid through the
Equitable Access Account. See WHEN WE PAY POLICY PROCEEDS on page 21. The
beneficiary will then have a choice of payment options. However, if you do make
an arrangement with us for how the money will be paid, the beneficiary cannot
change the choice after the insured person dies. Different payment options may
result in different tax consequences.

The beneficiary or any other person who is entitled to receive payment may name
a successor to receive any amount that we would otherwise pay to that person's
estate if that person died. The person who is entitled to receive payment may
change the successor at any time.

We must approve any arrangements that involve more than one payment option, or a
payee who is not a natural person (for example, a corporation), or a payee who
is a fiduciary. Also, the details of all arrangements will be subject to our
rules at the time the arrangements are selected and take effect. This includes
rules on the minimum amount we will pay under an option, minimum amounts for
installment payments, withdrawal or commutation rights (your rights to receive
payments over time, for which we may offer a lump sum payment), the naming of
people who are entitled to receive payment and their successors, and the ways of
proving age and survival.

20
<PAGE>

YOUR BENEFICIARY

You name your beneficiary when you apply for the policy. The beneficiary is
entitled to the insurance benefits of the policy. You may change the beneficiary
during the insured person's lifetime by writing to our Administrative Office. If
no beneficiary is living when the insured person dies, we will pay the death
benefit in equal shares to the insured person's surviving children. If there are
no surviving children, we will pay the death benefit to the insured person's
estate.

ASSIGNING YOUR POLICY

You may assign (transfer) your rights in the policy to someone else as
collateral for a loan or for some other reason, if we agree. A copy of the
assignment must be forwarded to our Administrative Office. We are not
responsible for any payment we make or any action taken before we receive notice
of the assignment or for the validity of the assignment. An absolute assignment
is a change of ownership. BECAUSE THERE MAY BE TAX CONSEQUENCES, INCLUDING THE
LOSS OF INCOME TAX-FREE TREATMENT FOR ANY DEATH BENEFIT PAYABLE TO THE
BENEFICIARY, YOU SHOULD CONSULT YOUR TAX ADVISER PRIOR TO MAKING AN ASSIGNMENT.

WHEN WE PAY POLICY PROCEEDS

We will pay any death benefits, maturity benefit, Net Cash Surrender Value or
loan proceeds within seven days after we receive the last required form or
request (and other documents that may be required for payment of death benefits)
at our Administrative Office. Death benefits are determined as of the date of
death of the insured person and will not be affected by subsequent changes in
the unit values of the divisions of the Separate Account. Death benefits will
generally be paid through the Equitable Access Account, an interest bearing
checking account. A beneficiary will have immediate access to the proceeds by
writing a check on the account. We pay interest from the date of death to the
date the Equitable Access Account is closed. If an Equitable agent helps the
beneficiary of a policy to prepare the documents that are required for payment
of the death benefit, we will send the Equitable Access Account checkbook to the
agent within seven days after we receive the required documents. The agent will
deliver the checkbook to the beneficiary.

We may, however, delay payment if we contest the policy. We may also delay
payment if we cannot determine the amount of the payment because the New York
Stock Exchange is closed, because trading in securities has been restricted by
the SEC, or because the SEC has declared that an emergency exists. In addition,
if necessary to protect our policyowners, we may delay payment where permitted
under applicable law.

We may defer payment of any Net Cash Surrender Value or loan amount (except a
loan to pay a premium to us) from the Guaranteed Interest Division for up to six
months after we receive your request. We will pay interest of at least 3% a year
from the date we receive your request if we delay more than 30 days in paying
you such amounts from the Guaranteed Interest Division.

DIVIDENDS

No dividends are paid on the policy described in this prospectus.

REGULATION

We are regulated and supervised by the New York State Insurance Department. In
addition, we are subject to the insurance laws and regulations in every
jurisdiction where we sell policies. As a result, the provisions of the
Incentive Life 2000 policy may vary somewhat from jurisdiction to jurisdiction.
State variations will be covered by a supplement to this prospectus or policy
endorsement as appropriate.

The Incentive Life 2000 policy (Plan No. 90-300) has been filed with and
approved by insurance officials in 50 states, Puerto Rico and the Virgin
Islands. No Incentive Life 2000 policy is available in the District of Columbia.
We submit annual reports on our operations and finances to insurance officials
in all the jurisdictions where we sell policies. The officials are responsible
for reviewing our reports to be sure that we are financially sound.

SPECIAL CIRCUMSTANCES

Equitable Variable may vary the charges and other terms of Incentive Life 2000
where special circumstances result in sales or administrative expenses or
mortality risks that are different than those normally associated with Incentive
Life 2000 policies.

These variations will be made only in accordance with uniform rules that we
establish.

DISTRIBUTION

Prior to May 1, 1994, we were the principal underwriter of the Trust under a
Distribution Agreement. In addition, Equitable distributed our policies under a
Sales Agreement. Effective May 1, 1994, these underwriting and distribution
responsibilities will be transferred to Equico Securities, Inc. (Equico), a
wholly-owned subsidiary of Equitable, whose principal business address is 1755
Broadway, New York, NY 10019. Equico is registered with the SEC as a
broker-dealer under the Securities Exchange Act of 1934 (the Exchange Act) and
is a member of the National Association of Securities Dealers, Inc. Equico will
be paid a fee for its services as distributor of our policies.

We sell our policies through agents who are licensed by state insurance
officials to sell our variable life policies. These agents are also registered
representatives of Equico. The agent who sells you this policy receives sales
commissions from Equitable. We reimburse Equitable from our own resources,
including the Premium Sales Charge deducted from your premium and any Surrender
Charges we might collect. Generally, during the first policy year, the agent
will receive an amount equal to a maximum of 40% of the premiums paid up to a
certain amount and 3% of the premiums paid in excess of that amount. For policy
years two through ten, the agent receives an amount up to a

21
<PAGE>

maximum of 8% of the premiums paid up to a certain amount and 3% of the premiums
paid in excess of that amount; and, for years eleven and later, the agent
receives an amount up to 3% of the premiums paid. Following a requested Face
Amount increase, commissions on a portion of the premium will be calculated
based on the same rates described above. Agents with limited years of service
may be paid differently. Commissions paid to agents based upon refunded premiums
may be recovered.

We also sell our policies through independent brokers who are licensed by state
insurance officials to sell our variable life policies. They will also be
registered representatives either of Equico or of another company registered
with the SEC as a broker-dealer under the Exchange Act. The commissions for
independent brokers will be no more than those for agents and the same policy
for recovery of commissions applies. Commissions will be paid through the
registered broker-dealer.

Equitable performs certain sales and administrative duties for us pursuant to a
written agreement which is automatically renewed each year, unless either party
terminates. Under this agreement, we pay Equitable for salary costs and other
services and an amount for indirect costs incurred through our use of Equitable
personnel and facilities. We also reimburse Equitable for sales expenses related
to business other than variable life insurance policies. The amounts paid and
accrued to Equitable by us under the sales and services agreements totalled
approximately $355.7 million in 1993, $374.9 million in 1992, and $336.6 million
in 1991.

LEGAL PROCEEDINGS

We are not involved in any material legal proceedings.

ACCOUNTING AND ACTUARIAL EXPERTS

The financial statements of Equitable Variable and of the Separate Account
included in this prospectus have been audited for the year ended December 31,
1993 by Price Waterhouse and for the years ended December 31, 1992 and 1991 by
Deloitte & Touche, as stated in their respective reports. The financial
statements of the Separate Account and Equitable Variable for the year ended
December 31, 1993 included in this prospectus have been so included in reliance
on the report of Price Waterhouse, independent accountants, given on the
authority of such firm as experts in accounting and auditing. The financial
statements of the Separate Account and Equitable Variable for the years ended
December 31, 1992 and 1991 included in this prospectus have been so included in
reliance on the reports of Deloitte & Touche, independent accountants, given
upon the authority of such firm as experts in accounting and auditing.

The financial statements of Equitable Variable contained in this prospectus
should be considered only as bearing upon the ability of Equitable Variable to
meet its obligations under the Incentive Life 2000 policies. They should not be
considered as bearing upon the investment experience of the divisions of the
Separate Account.

Actuarial matters in this prospectus have been examined by Barbara Fraser,
F.S.A., M.A.A.A., who is a Vice President and Actuary of Equitable. Her opinion
on actuarial matters is filed as an exhibit to the Registration Statement we
filed with the SEC.

ADDITIONAL INFORMATION

We have filed a Registration Statement relating to the Separate Account and the
variable life insurance policy described in this prospectus with the SEC. The
Registration Statement, which is required by the Securities Act of 1933,
includes additional information that is not required in this prospectus under
the rules and regulations of the SEC. If you would like the additional
information, you may obtain it from the SEC's main office in Washington, D.C.
You will have to pay a fee for the material.

22
<PAGE>

MANAGEMENT

<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------- ----------------------

<S> <C>
DIRECTORS

Michel Beaulieu.................. Director of Equitable Variable since February 1992. Senior Vice President, Equitable, since
September 1991; prior thereto, Chief Life Actuary AXA group 1989 to 1991; Managing Director
Blondeau & CIE (France) 1986 to 1989. Director, Equity & Law (London).

Jerry de St Paer................. Director of Equitable Variable since April 1992. Executive Vice President & Chief Financial
Officer, Equitable, since April 1992; prior thereto, Executive Vice President since December
1990; Senior Vice President & Treasurer June 1990 to December 1990; Senior Vice President,
Equitable Investment Corporation January 1987 to January 1991; Executive Vice President & Chief
Financial Officer, Equitable Companies Inc. since May 1992; Director, Economic Services
Corporation & various Equitable subsidiaries.

William T. McCaffrey............. Director of Equitable Variable since February 1987. Executive Vice President, Equitable, since
February 1986 and Chief Administrative Officer since February 1988; prior thereto, various
other Equitable positions. Director, Equitable Foundation since September 1986.

Harvey Blitz..................... Director of Equitable Variable since October 1992. Senior Vice President, Equitable since
September 1987. Senior Vice President, The Equitable Companies, Incorporated, since July 1992.
Director, Equico Securities, Inc., since September 1992; The Equitable of Colorado, since
September 1992; Traditional Equinet Business Corporation of New York and its subsidiaries since
October 1992.

Christophe Dupont-Madinier....... Director of Equitable Variable since February 1993. Senior Vice President, AXA (Paris, France),
since 1988. Director, Donaldson, Lufkin & Jenrette, Inc.; Alliance Capital Management
Corporation, Equitable Real Estate Investment Management, Inc.

Pascal Thebe..................... Director of Equitable Variable since February 1993. Vice President, Equitable, since March
1993. Prior thereto, Vice President, AXA (Paris), since March 1992; Vice President, Alpha
Assurances, since June 1989; Actuary, Drout Assurances, since 1986.

OFFICERS--DIRECTORS

James M. Benson.................. President, Equitable Variable since December, 1993; Vice Chairman of the Board, Equitable
Variable since July 1993. President and Chief Operating Officer, Equitable, February 1994 to
present; Senior Executive Vice President, April 1993 to February 1994. Prior thereto,
President, Management Compensation Group, 1983 to February 1993.

Gordon Dinsmore.................. Senior Vice President, Equitable Variable, since February 1991. Senior Vice President,
Equitable since September 1989; prior thereto, various other Equitable positions. Director and
Senior Vice President, March 1991 to present, Equitable of Colorado; Director, FHJV Holdings,
Inc., December 1990 to present; Director, Equitable Capital Securities Corporation, August 1993
to present, and Director Equitable Foundation, May 1991 to present.

Richard H. Jenrette.............. Senior Investment Officer, Equitable Variable, since September 1988; Chairman and Chief
Executive Officer, The Equitable Companies Incorporated, since May 1992; Chairman of Executive
Committee, Equitable, since February 1994. Prior thereto, Chairman since May 1987. Chairman and
Chief Executive Officer from May 1990 to September 1992. Chairman, Donaldson, Lufkin and
Jenrette, Inc., since December 1973. Director, AXA since July 1991 and various other Equitable
subsidiaries. Director, McGraw-Hill, Inc., since January 1993.

James S. Kalmer.................. Senior Vice President, Equitable Variable, since February 1991. Vice President since December
1987. Senior Vice President, Equitable, since September 1989, prior thereto, Vice President.
Director, Traditional Equinet Business Corporation of New York (TRAEBCO) and its subsidiaries
since March 1991.
</TABLE>

23
<PAGE>

<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------- ----------------------

<S> <C>
OFFICERS--DIRECTORS (Continued)

Joseph J. Melone................. Chairman of the Board and Chief Executive Officer, Equitable Variable, since November 1990;
Chairman of the Board and Chief Executive Officer, Equitable, February 1994 to present;
President and Chief Executive Officer, September 1992 to February 1994; President and Chief
Operating Officer from November 1990 to September 1992. President and Chief Operating Officer
of The Equitable Companies Incorporated since July 1992. Prior thereto, President, The
Prudential Insurance Company of America, since December 1984. Director, Equity & Law (United
Kingdom) and various other Equitable subsidiaries.

Brian O'Neil..................... Senior Vice President and Chief Investment Officer, Equitable Variable, since October 1992.
Executive Vice President & Chief Investment Officer, Equitable, since April 1992; prior
thereto; Senior Vice President since February 1989; Vice President from July 1988 to February
1989. Senior Vice President, Equitable Capital, from November 1987 to March 1989.

Samuel B. Shlesinger............. Senior Vice President, Equitable Variable, since February 1988. Senior Vice President and
Actuary, Equitable; prior thereto, Vice President and Actuary.

Dennis D. Witte.................. Senior Vice President, Equitable Variable, since February 1991; Senior Vice President,
Equitable, since July 1990; prior thereto, various other Equitable positions.

OFFICERS

J. Thomas Liddle, Jr............. Senior Vice President and Chief Financial Officer, Equitable Variable, since February 1986.
Senior Vice President, Equitable since April 1991; prior thereto, Vice President and Actuary,
Equitable.

Franklin Kennedy, III............ Vice President, Equitable Variable, since August 1981. Senior Vice President, Alliance Capital
1345 Avenue of the Americas Management Corporation, July 1993 to present; Senior Vice President, Equitable Capital
New York, New York 10105 Management Corporation, March 1987 to July 1993. Vice President, The Hudson River Trust.
Managing Director and Chief Investment Officer, Equitable Investment Management Corporation,
from November 1983 to January 1987.

William A. Narducci.............. Vice President and Chief Claims Officer, Equitable Variable since February 1989. Vice
200 Plaza Drive President, Equitable since February 1988; prior thereto, Assistant Vice President.
Secaucus, New Jersey 07096

John P. Natoli................... Vice President and Chief Underwriting Officer, Equitable Variable, since February 1988. Vice
2 Penn Plaza President, Equitable.
New York, New York 10121

Molly K. Heines.................. Secretary, Equitable Variable, since February 1991; Vice President and Secretary, Equitable,
since July 1990; prior thereto, Vice President & Counsel.

Kevin R. Byrne................... Treasurer, Equitable Variable, since September 1990; Vice President and Treasurer, Equitable
since September 1993; prior thereto, Vice President from March 1989 to September 1993. Vice
President and Treasurer, The Equitable Companies Incorporated, September 1993 to present;
Frontier Trust since August 1990; Traditional Equinet Business Corporation of New York
(TRAEBCO) and its subsidiaries October 1990 to present.

Stephen Hogan.................... Vice President and Controller, Equitable Variable, February 1994 to present. Vice President,
Equitable, January 1994 to present; prior thereto, Controller, John Hancock subsidiaries, from
1987 to December 1993.
</TABLE>

24
<PAGE>

PART 4: ILLUSTRATIONS OF POLICY BENEFITS

To help clarify how the key financial elements of the policy work, a series of
tables has been prepared. The tables show how death benefits, Policy Account and
Cash Surrender Values ("policy benefits") under a hypothetical Incentive Life
2000 policy could vary over time if the divisions of our Separate Account had
CONSTANT hypothetical gross annual investment returns of 0%, 6% or 12% over the
years covered by each table. Actual policy benefits will differ from those shown
in the tables if the annual investment returns AVERAGE 0%, 6% or 12% over a
period of years but go above or below those figures in individual policy years.
Actual policy benefits will also differ, depending on your premium allocations
to each division, if the overall actual rates of return averaged 0%, 6% or 12%,
but went above or below those figures for the individual investment divisions.
The tables are for a 40 year old standard risk male non-smoker. Planned premium
payments of $3,000 for an initial Face Amount of $200,000 are assumed to be paid
at the beginning of each policy year. The difference between the Policy Account
and the Cash Surrender Values in the first fifteen years is the surrender
charge. See SURRENDER CHARGE in the prospectus.

The tables illustrate cost of insurance and expense charges (policy cost
factors) at both the current rates and at the maximum rates guaranteed in the
policies. Beginning in the sixth policy year, the current tables reflect the
reduction in current cost of insurance charges. The amounts shown at the end of
each policy year reflect current daily charges against the Separate Account
investment divisions of .60% per annum for mortality and expense risks (.70% for
the guaranteed table), .48% per annum for investment management (the average of
the effective annual advisory fees applicable to each Trust portfolio during
1993 and the maximum advisory fee for the Equity Index Portfolio) and .03% per
annum for direct Trust expenses. The charge reflected for direct Trust expenses
exceeds the aggregate actual charges incurred by the portfolios of the Trust as
a percentage of aggregate average daily Trust net assets during 1993. The effect
of these adjustments is that on a 0% gross rate of return the net rate of return
would be 1.11%, on 6% it would be 4.83%, and on 12% it would be 10.76%.
Remember, however, that investment management fees and direct Trust expenses
vary by portfolio. See THE TRUST'S INVESTMENT ADVISER in the prospectus.

The internal rate of return on Cash Surrender Value is equivalent to an interest
rate (after taxes) at which an amount equal to the illustrated premiums could
have been invested outside the Policy to arrive at the Cash Surrender Value of
the Policy. The internal rate of return on the death benefit is equivalent to an
interest rate (after taxes) at which an amount equal to the illustrated premiums
could have been invested outside the Policy to arrive at the death benefit of
the Policy. The internal rate of return is compounded annually, and the premiums
are assumed to be paid at the beginning of each policy year.

25
<PAGE>

INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION A
ASSUMING CURRENT CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- -----------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
---- ---------- -------- -------- -------- ------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $200,000 $200,000 $200,000 $ 1,761 $ 1,896 $ 2,031 $ 1,132 $ 1,267 $ 1,402
2 6,547 200,000 200,000 200,000 4,082 4,481 4,897 3,303 3,702 4,118
3 9,930 200,000 200,000 200,000 6,360 7,174 8,055 5,432 6,246 7,126
4 13,577 200,000 200,000 200,000 8,596 9,981 11,536 7,517 8,902 10,458
5 17,406 200,000 200,000 200,000 10,786 12,904 15,376 9,558 11,675 14,147

6 21,426 200,000 200,000 200,000 12,937 15,955 19,619 11,558 14,576 18,240
7 25,647 200,000 200,000 200,000 15,046 19,139 24,311 13,541 17,634 22,806
8 30,080 200,000 200,000 200,000 17,161 22,515 29,556 15,656 21,011 28,051
9 34,734 200,000 200,000 200,000 19,302 26,115 35,441 17,798 24,610 33,936
10 39,620 200,000 200,000 200,000 21,402 29,879 41,965 20,148 28,625 40,711

15 67,972 200,000 200,000 200,000 31,126 51,396 87,039 31,126 51,396 87,039

20 104,158 200,000 200,000 220,680 39,409 78,637 164,686 39,409 78,637 164,686

25 (age 65) $150,340 $200,000 $200,000 $365,509 $46,328 $114,657 $299,598 $46,328 $114,657 $299,598

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
---- ---------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.25% -57.77% -53.27% 6,566.67% 6,566.67% 6,566.67%
2 6,547 -33.77 -28.18 -22.62 668.03 668.03 668.03
3 9,930 -23.21 -17.19 -11.23 267.20 267.20 267.20
4 13,577 -17.86 -11.60 -5.43 153.63 153.63 153.63
5 17,406 -14.66 -8.24 -1.95 103.51 103.51 103.51

6 21,426 -12.54 -6.00 0.38 76.08 76.08 76.08
7 25,647 -10.99 -4.37 2.06 59.05 59.05 59.05
8 30,080 -9.59 -2.96 3.46 47.47 47.57 47.57
9 34,734 -8.47 -1.86 4.54 39.36 39.36 39.36
10 39,620 -7.39 -0.85 5.48 33.24 33.24 33.24

15 67,972 -4.77 1.64 7.88 17.17 17.17 17.17

20 104,158 -4.20 2.51 8.87 10.46 10.46 11.26

25 (age 65) $150,340 -3.95% 3.12% 9.50% 6.90% 6.90% 10.74%

<FN>
(1) Assumes net interest of 5% compounded annually.
</FN>
</TABLE>

THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN. THE VALUES WOULD
BE DIFFERENT FROM THOSE SHOWN IF ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO
THE POLICY AVERAGED 0%, 6% OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. THE VALUES FOR A POLICY
WOULD ALSO BE DIFFERENT FROM THOSE SHOWN, DEPENDING ON THE INVESTMENT
ALLOCATIONS MADE TO THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND THE
DIFFERENT RATES OF RETURN OF THE TRUST PORTFOLIOS, IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE POLICY AVERAGED 0%, 6% OR 12%, BUT VARIED
ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL DIVISIONS. NO REPRESENTATIONS CAN BE
MADE THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.

26
<PAGE>

INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION A
ASSUMING GUARANTEED CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- -----------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
---- ---------- -------- -------- -------- ------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $200,000 $200,000 $200,000 $ 1,759 $ 1,893 $ 2,028 $ 1,130 $ 1,265 $ 1,399
2 6,457 200,000 200,000 200,000 3,948 4,342 4,754 3,169 3,564 3,975
3 9,930 200,000 200,000 200,000 6,082 6,878 7,740 5,153 5,949 6,811
4 13,577 200,000 200,000 200,000 8,155 9,499 11,011 7,076 8,420 9,932
5 17,406 200,000 200,000 200,000 10,169 12,211 14,600 8,941 10,982 13,371

6 21,426 200,000 200,000 200,000 12,119 15,012 18,534 10,740 13,634 17,155
7 25,647 200,000 200,000 200,000 14,002 17,905 22,852 12,497 16,401 21,347
8 30,080 200,000 200,000 200,000 15,816 20,893 27,593 14,311 19,388 26,088
9 34,734 200,000 200,000 200,000 17,558 23,977 32,804 16,054 22,472 31,299
10 39,620 200,000 200,000 200,000 19,224 27,158 38,533 17,970 25,904 37,279

15 67,972 200,000 200,000 200,000 26,163 44,492 77,145 26,163 44,492 77,145

20 104,158 200,000 200,000 200,000 29,815 63,985 140,901 29,815 63,985 140,901

25 (age 65) $150,340 $200,000 $200,000 $301,799 $28,268 $85,415 $247,360 $28,268 $85,415 $247,360

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
---- ---------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.33% -57.85% -53.35% 6,566.67% 6,566.67% 6,566.67%
2 6,457 -35.70 -30.09 -24.50 668.03 668.03 668.03
3 9,930 -25.40 -19.32 -13.30 267.20 267.20 267.20
4 13,577 -20.04 -13.68 -7.42 153.63 153.63 153.63
5 17,406 -16.78 -10.22 -3.81 103.51 103.51 103.51

6 21,426 -14.60 -7.89 -1.37 76.08 76.08 76.08
7 25,647 -13.01 -6.18 0.41 59.05 59.05 59.05
8 30,080 -11.64 -4.76 1.85 47.57 47.57 47.57
9 34,734 -10.62 -3.70 2.94 39.36 39.36 39.36
10 39,620 -9.58 -2.69 3.91 33.24 33.24 33.24

15 67,972 -7.15 -0.14 6.48 17.17 17.17 17.17

20 104,158 -7.27 0.61 7.57 10.46 10.46 10.46

25 (age 65) $150,340 -8.69% 0.99% 8.28% 6.90% 6.90% 9.54%

<FN>
(1) Assumes net interest of 5% compounded annually.
</FN>
</TABLE>

THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

27
<PAGE>

INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION B-PLUS
ASSUMING CURRENT CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- -----------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
---- ---------- -------- -------- -------- ------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $201,757 $201,891 $202,026 $ 1,757 $ 1,891 $ 2,026 $ 1,128 $ 1,262 $ 1,397
2 6,548 204,069 204,467 204,881 4,069 4,467 4,881 3,290 3,688 4,102
3 9,930 206,334 207,144 208,020 6,334 7,144 8,020 5,405 6,215 7,091
4 13,577 208,549 209,926 211,471 8,549 9,926 11,471 7,471 8,847 10,393
5 17,406 210,715 212,815 215,267 10,715 12,815 15,267 9,486 11,586 14,038

6 21,426 212,833 215,821 219,448 12,833 15,821 19,448 11,454 14,442 18,069
7 25,647 214,902 218,947 224,056 14,902 18,947 24,056 13,397 17,442 22,551
8 30,080 216,969 222,250 229,190 16,969 22,250 29,190 15,465 20,745 27,685
9 34,734 219,054 225,756 234,928 19,054 25,756 34,928 17,549 24,252 33,423
10 39,620 221,087 229,407 241,261 21,087 29,407 41,261 19,833 28,153 40,007

15 67,972 230,279 249,859 284,232 30,279 49,859 84,232 30,279 49,859 84,232

20 104,158 237,535 274,487 355,367 37,535 74,487 155,367 37,535 74,487 155,367

25 (age 65) $150,340 $242,709 $304,758 $476,099 $42,709 $104,758 $276,099 $42,709 $104,758 $276,099

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
---- ---------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.39% -57.92% -53.43% 6,625.23% 6,629.71% 6,634.20%
2 6,548 -33.95 -28.37 -22.82 676.27 677.08 677.91
3 9,930 -23.41 -17.40 -11.45 271.48 272.02 272.61
4 13,577 -18.08 -11.83 -5.67 156.73 157.21 157.76
5 17,406 -14.90 -8.49 -2.20 106.06 106.55 107.11

6 21,426 -12.80 -6.26 0.11 78.33 78.84 79.44
7 25,647 -11.26 -4.64 1.78 61.11 61.64 62.30
8 30,080 -9.87 -3.25 3.17 49.49 50.06 50.79
9 34,734 -8.77 -2.16 4.24 41.20 41.80 42.61
10 39,620 -7.69 -1.16 5.17 35.00 35.65 36.54

15 67,972 -5.14 1.27 7.50 18.71 19.60 21.00

20 104,158 -4.72 2.02 8.39 11.85 13.00 15.04

25 (age 65) $150,340 -4.67% 2.48% 8.98% 8.16% 9.60% 12.37%

<FN>
(1) Assumes net interest of 5% compounded annually.
</FN>
</TABLE>

THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

28
<PAGE>

INCENTIVE LIFE 2000
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

PLANNED PREMIUM $3,000 INITIAL FACE AMOUNT $200,000
MALE AGE 40
NON-SMOKER DEATH BENEFIT OPTION B-PLUS
ASSUMING GUARANTEED CHARGES

<TABLE>
<CAPTION>
DEATH BENEFIT(2) POLICY ACCOUNT(2) CASH SURRENDER VALUE(2)
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
POLICY ACCUMULATED ------------------------------ ----------------------------- -----------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12% 0% 6% 12%
---- ---------- -------- -------- -------- ------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 $201,755 $201,889 $202,023 $ 1,755 $ 1,889 $ 2,023 $ 1,126 $ 1,260 $ 1,395
2 6,458 203,933 204,326 204,736 3,933 4,326 4,736 3,155 3,547 3,957
3 9,930 206,050 206,842 207,699 6,050 6,842 7,699 5,121 5,913 6,770
4 13,577 208,099 209,433 210,933 8,099 9,433 10,933 7,021 8,354 9,854
5 17,406 210,082 212,103 214,467 10,082 12,103 14,467 8,853 10,874 13,238

6 21,426 211,992 214,849 218,325 11,992 14,849 18,325 10,613 13,470 16,946
7 25,647 213,824 217,668 222,537 13,824 17,668 22,537 12,319 16,163 21,032
8 30,080 215,577 220,561 227,135 15,577 20,561 27,135 14,072 19,056 25,631
9 34,734 217,247 223,527 232,158 17,247 23,527 32,158 15,742 22,023 30,654
10 39,620 218,828 226,562 237,642 18,828 26,562 37,642 17,574 25,308 36,388

15 67,972 225,078 242,502 273,483 25,078 42,502 73,483 25,078 42,502 73,483

20 104,158 227,396 258,486 328,234 27,396 58,486 128,234 27,396 58,486 128,234

25 (age 65) $150,340 $223,616 $271,780 $411,215 $23,616 $71,780 $211,215 $23,616 $71,780 $211,215

<FN>
(1) Assumes net interest of 5% compounded annually.
(2) Assumes no policy loan has been made.
</FN>
</TABLE>

<TABLE>
<CAPTION>
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
ON CASH SURRENDER VALUES ON DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS ASSUMING HYPOTHETICAL GROSS
END OF ANNUAL RATE OF RETURN OF ANNUAL RATE OF RETURN OF
POLICY ACCUMULATED --------------------------- ---------------------------------
YEAR PREMIUMS(1) 0% 6% 12% 0% 6% 12%
---- ---------- ------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 3,150 -62.47% -58.00% -53.51% 6,625.16% 6,629.63% 6,634.11%
2 6,458 -35.91 -30.32 -24.74 676.00 676.79 677.62
3 9,930 -25.66 -19.58 -13.58 271.29 271.82 272.39
4 13,577 -20.33 -13.97 -7.73 156.56 157.04 157.57
5 17,406 -17.09 -10.54 -4.14 105.91 106.38 106.93

6 21,426 -14.94 -8.23 -1.72 78.19 78.67 79.26
7 25,647 -13.37 -6.55 0.04 60.96 61.47 62.11
8 30,080 -12.03 -5.15 1.46 49.34 49.88 50.58
9 34,734 -11.04 -4.11 2.53 41.03 41.60 42.37
10 39,620 -10.01 -3.12 3.48 34.82 35.43 36.27

15 67,972 -7.74 -0.72 5.92 18.46 19.27 20.58

20 104,158 -8.25 -0.24 6.78 11.50 12.52 14.42

25 (age 65) $150,340 -10.67% -0.34 7.26% 7.63% 8.88% 11.47%

<FN>
(1) Assumes net interest of 5% compounded annually.
</FN>
</TABLE>

THE VALUES WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS OR FREQUENCIES.

29
<PAGE>

APPENDIX A

COMMUNICATING PERFORMANCE DATA

In reports or other communications to policyowners or in advertising material,
we may describe general economic and market conditions affecting the Separate
Account and the Trust and may compare the performance or ranking of the Separate
Account investment divisions and Trust portfolios with (1) that of other
insurance company separate accounts or mutual funds included in the rankings
prepared by Lipper Analytical Services, Inc., Morningstar, Inc. or similar
investment services that monitor the performance of insurance company separate
accounts or mutual funds, (2) other appropriate indices of investment securities
and averages for peer universes of funds, or (3) data developed by us derived
from such indices or averages. Advertisements or other communications furnished
to present or prospective policyowners may also include evaluations of a
Separate Account Division or Trust portfolio by financial publications that are
nationally recognized such as Barron's, Morningstar's Variable Annuity/Life
Sourcebook, Business Week, Forbes, Fortune, Institutional Investor, Money,
Kiplinger's Personal Finance, Financial Planning, Investment Adviser, Investment
Management Weekly, Money Management Letter, Investment Dealers Digest, National
Underwriter, Pension & Investments Age, USA Today, Investor's Daily, the New
York Times, The Wall Street Journal, the Los Angeles Times and the Chicago
Tribune.

LONG-TERM MARKET TRENDS

As a tool for understanding how different investment strategies may affect
long-term results, it may be useful to consider the historical returns on
different types of assets. The following chart presents historical return trends
for various types of securities. The information presented, while not directly
related to the performance of the investment divisions of the Separate Account
or the Trust portfolios, may help to provide a perspective on the potential
returns of different asset classes over different periods of time. By combining
this information with your knowledge of your own financial needs, you may be
able to better determine how you wish to allocate your Incentive Life 2000
premiums.

Historically, the investment performance of common stocks over the long term has
generally been superior to that of long or short-term debt securities, although
common stocks have been subject to more dramatic changes in value over short
periods of time. The Common Stock Division of the Separate Account may,
therefore, be a desirable selection for policyowners who are willing to accept
such risks. Policyowners who have a need to limit short-term risk, may find it
preferable to allocate a smaller percentage of their net premiums to those
investment divisions that invest primarily in common stock. Any investment in
securities, whether equity or debt, involves varying degrees of potential risk,
in addition to offering varying degrees of potential reward.

The chart on page A-2 illustrates the average annual compound rates of return
over selected time periods between December 31, 1925 and December 31, 1993 for
common stocks, long-term government bonds, long-term corporate bonds,
intermediate-term government bonds and Treasury Bills. The Consumer Price Index
is shown as a measure of inflation for comparison purposes. The average annual
returns assume the reinvestment of dividends, capital gains and interest.

The rates of return illustrated do not represent returns of the Separate Account
or the Trust and do not constitute a representation that the performance of the
investment divisions of the Separate Account or the Trust will correspond to
rates of return such as those illustrated in the chart. For a comparative
illustration of performance results of The Hudson River Trust, see page A-1 of
the Trust's prospectus.

A-1
<PAGE>

<TABLE>
<CAPTION>
AVERAGE ANNUAL RATES OF RETURN
----------------------------------------------------------------------------------------------
LONG-TERM LONG-TERM INTERMEDIATE- CONSUMER
COMMON GOVERNMENT CORPORATE TERM TREASURY PRICE
STOCKS BONDS BONDS BONDS BILLS INDEX
------ ---------- --------- ------------- -------- --------
FOR THE
FOLLOWING
PERIODS ENDING
12/31/93:
- --------
<S> <C> <C> <C> <C> <C> <C>
1 year ..................... 9.99% 18.24% 13.19% 11.24% 2.90% 3.00%
3 years .................... 15.63 15.08 14.07 11.25 3.99 2.99
5 years .................... 14.50 13.84 13.00 11.35 5.61 3.94
10 years .................... 14.94 14.41 14.00 11.43 6.35 3.73
20 years .................... 12.76 10.10 10.16 9.85 7.49 5.92
30 years .................... 10.46 7.37 7.69 8.17 6.65 5.32
40 years .................... 11.80 6.01 6.43 6.80 5.55 4.32
50 years .................... 12.30 5.21 5.57 5.74 4.61 4.35
60 years .................... 11.42 5.11 5.54 5.43 3.86 4.10
Since 1926 .................. 10.33 5.02 5.59 5.25 3.69 3.13
Inflation Adjusted
Since 1926 .................. 6.98 1.83 2.38 2.06 0.54
- ----------

<FN>
*Source: Ibbotson, Roger G. and Rex A. Sinquefield, STOCKS, BONDS, BILLS, AND
INFLATION (SBBI), 1982, updated in STOCKS, BONDS, BILLS, AND INFLATION 1994
YEARBOOK(TM), Ibbotson Associates, Inc., Chicago. All rights reserved.

Common Stocks (S&P 500) -- Standard and Poor's Composite Index, an unmanaged
weighted index of the stock performance of 500 industrial, transportation,
utility and financial companies.

Long-term Government Bonds -- Measured using a one-bond portfolio constructed
each year containing a bond with approximately a twenty year maturity and a
reasonably current coupon.

Long-term Corporate Bonds -- For the period 1969-1993, represented by the
Salomon Brothers Long-Term, High-Grade Corporate Bond Index; for the period
1946-1968, the Salomon Brothers' Index was backdated using Salomon Brothers'
monthly yield data and a methodology similar to that used by Salomon for
1969-1993; for the period 1926-1945, the Standard and Poor's monthly High-Grade
Corporate Composite yield data were used, assuming a 4 percent coupon and a
twenty year maturity.

Intermediate-term Government Bonds -- Measured by a one-bond portfolio
constructed each year containing a bond with approximately a five year
maturity.

U.S. Treasury Bills -- Measured by rolling over each month a one-bill portfolio
containing, at the beginning of each month, the bill having the shortest
maturity not less than one month.

Inflation -- Measured by the Consumer Price Index for all Urban Consumers
(CPI-U), not seasonally adjusted.
</FN>
</TABLE>

A-2