Incentive Life Plus(TM) (94-300)
Survivorship 2000(TM) (92-500) Issued by
EQUITABLE VARIABLE
LIFE INSURANCE COMPANY
PROSPECTUS SUPPLEMENT DATED FEBRUARY 28, 1996
This supplement updates the Incentive Life Plus prospectuses dated September 15,
1995 and May 1, 1995, and the Survivorship 2000 prospectus dated May 1, 1995.
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-515
- --------------------------------------------------------------------------------
This Supplement Should be Retained for Future Reference.
Copyright 1996
Equitable Variable Life Insurance Company
All rights reserved.
37431
<PAGE>
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.
Copyright 1996
Equitable Variable Life Insurance Company
All rights reserved.
37431
<PAGE>
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SUPPLEMENT DATED APRIL 1, 1996
TO
INCENTIVE LIFE PLUS PROSPECTUS
DATED SEPTEMBER 15, 1995
This supplement modifies certain information in the Prospectus dated September
15, 1995 (the "Prospectus") for Incentive Life Plus, a flexible premium variable
life insurance policy issued by Equitable Variable. Terms used in this
Supplement have the same meanings as in the Prospectus.
Subject to the conditions discussed below, Equitable Variable will offer an
Endorsement to the Incentive Life Plus policy that will refund or waive all or a
portion of certain policy charges if the policy is surrendered for its net cash
surrender value within a limited time period (the "Endorsement").
Under Equitable Variable's current rules, the Endorsement will be offered where
the following conditions are met:
o a minimum of five policies are issued, each on the life of a different insured
person;
o the persons proposed to be insured are deemed by us to be highly compensated
individuals;
o the policies must have an average Face Amount of at least $500,000;
o the initial premium under each of the policies must be remitted to Equitable
Variable by the employer;
o the aggregate annualized first year planned periodic premium for all policies
must be at least $150,000; and
o the policyowner is a corporation, partnership, association or other similar
entity.
The Endorsement operates to reduce the difference between premiums paid and Cash
Surrender Value upon surrender in the early policy years, which, in turn, is
expected to reduce any charge against the employers' earnings when a policy is
accounted for under generally accepted accounting principles (GAAP).
Policyowners must rely on the advice of their own accountants, however, to
determine how the purchase of a policy, as modified by the Endorsement, will
affect their GAAP financial statements.
The Endorsement reduces the difference between premiums paid and Cash Surrender
Value by refunding all or a portion of the deductions from premiums (charge for
applicable taxes and Premium Sales Charge), and waiving all or a portion of the
Surrender Charges if the policy is surrendered in the early policy years. The
percentage of charges refunded or waived under the Endorsement are as follows:
SURRENDER IN PERCENT OF PREMIUM PERCENT OF SURRENDER
POLICY YEAR DEDUCTIONS REFUNDED CHARGES WAIVED
----------------- ------------------------ -----------------------
1 100% 100%
2 67% 80%
3 33% 60%
4 0% 40%
5 0% 20%
6 and later 0% 0%
For example, if a policy subject to the Endorsement were surrendered in the
first policy year, Equitable Variable would refund 100% of the charges that had
been deducted for premium tax and the Premium Sales Charge, and would waive 100%
of the Administrative Surrender Charge and the Premium Surrender Charge
otherwise payable at that time. Once the Endorsement terminates at the end of
the fifth policy year, however, there will be no refund of prior premium
deductions and the full amount of the Surrender Charges payable under the policy
will be assessed upon surrender.
The Endorsement only operates if the policy is surrendered in full. There is no
waiver of the Surrender Charges or refund of premium deductions if the policy
terminates or if the Face Amount is reduced. Nor is there a refund of prior
premium deductions for partial withdrawals.
The Endorsement does not affect the calculation of Cash Surrender Value or Net
Cash Surrender Value for purposes of determining limitations on loans and
partial withdrawals, or for determining whether a policy will terminate. See
BORROWING FROM YOUR POLICY ACCOUNT, PARTIAL WITHDRAWALS and YOUR POLICY CAN
TERMINATE in the Prospectus. We will not approve Face Amount increases while the
Endorsement is in effect.
VM 518
<PAGE>
EQUITABLE VARIABLE LIFE INSURANCE COMPANY
SUPPLEMENT DATED APRIL 1, 1996
TO
INCENTIVE LIFE PLUS PROSPECTUS
DATED SEPTEMBER 15, 1995
This supplement modifies certain information in the Prospectus, dated September
15, 1995 (the "Prospectus") for Incentive Life Plus, a flexible premium variable
life insurance policy issued by Equitable Variable. Subject to the rules
discussed below, Equitable Variable will offer a modified version of its
Incentive Life Plus policy (the "Incentive Life COLI Policy") to qualified
offerees. This supplement describes the material differences between the
Incentive Life COLI Policy and the Incentive Life Plus policy described in the
Prospectus and is for use only in connection with offers of the Incentive Life
COLI Policy. Capitalized terms used in this Supplement have the same meanings as
in the Prospectus.
Under Equitable Variable's current rules, the Incentive Life COLI Policy will be
offered where the following conditions are met:
o a minimum of five policies are issued, each on the life of a different
eligible insured person;
o the persons proposed to be insured under the policies are deemed by us to be
highly compensated individuals;
o the minimum initial premium under each of the policies must be remitted to
Equitable Variable by the employer;
o the aggregate annualized first year planned periodic premium for all policies
must be at least $150,000;
o the policyowner is a corporation, partnership, association or other similar
entity; and
o certain undertakings, which may be required by Equitable Variable in certain
situations, have been submitted to Equitable Variable.
Set forth below are modifications to the discussion in the Prospectus which are
appropriate with respect to the Incentive Life COLI Policy.
MINIMUM FACE AMOUNT. The minimum Face Amount for the Incentive Life COLI Policy
is $100,000.
CHANGES IN INSURANCE PROTECTION. There are no face amount increases under the
Incentive Life COLI Policy.
DEDUCTIONS AND CHARGES.
Additional Benefits. The additional benefits (certain extra charge, optional
benefits) described in the Incentive Life Plus prospectus on page 11 are not
available under the Incentive Life COLI Policy.
Deductions From Premium. Rather than deducting the Premium Sales Charge from
premiums, Equitable Variable will deduct the charge from the Policy Account at
the beginning of each policy month during the first ten policy years. The amount
deducted will be 1/2% of one "sales load target premium." The total amount
deducted, however, will not exceed 6% of cumulative premiums actually paid to
the date of deduction. The sales load target premium varies by issue age, sex
and tobacco user status of the insured person and the policy's Face Amount, and
is generally 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.
Charges Against the Separate Account. There are no charges assessed against the
Separate Account under the Incentive Life COLI Policy, but a mortality and
expense risk charge is deducted from the Policy Account each month at a current
annual rate of .60% of the unloaned Policy Account value. The annual guaranteed
maximum rate is .90%.
Current cost of Insurance rates during the first two policy years are generally
lower than the current cost of insurance rates for the Incentive Life Plus
policy. This relationship between the cost of insurance rates of the two
policies is not guaranteed.
The reduction in the current cost of insurance charge that begins in the tenth
policy year will grade up to an annual rate of .60% in the twenty-fifth policy
year and later. This cost of insurance charge reduction applies on a current
basis and is not guaranteed.
Surrender Charges. There is no Administrative Surrender Charge.
Subject to a maximum described below, the Premium Surrender Charge is equal to
24% of premiums paid in the first policy year, up to one surrender charge target
premium, and 3% of additional premiums paid through the fifteenth policy year.
In each of the first five policy years, the Premium Surrender Charge is reduced
by a percentage equal to: 100% in the first policy year; 80% in the second
policy year; 60% in the third policy year; 40% in the fourth policy year; and
20% in the fifth policy year. There is no Premium Surrender Charge after the
fifteenth policy year. The surrender charge target premium is less than or equal
to the SEC Guideline Annual Premium associated with this policy. The SEC
Guideline Annual Premium is the level annual amount that would be payable in
each policy year under certain assumptions defined by the SEC. These assumptions
include cost of insurance charges based on the 1980 Commissioner's Standard
Ordinary Mortality Tables, net investment earnings at an annual rate of 5%, and
the fees and charges associated with the policy.
We guarantee that the maximum Premium Surrender Charge will never be greater
than 66% of one target premium. Before the sixth policy year, the 66% maximum is
reduced by the same percentages described above. After the ninth policy year,
the 66% maximum begins to decrease by 11% per year on a monthly basis, until it
reaches zero at the end of the fifteenth policy year. Target premiums are
actuarially determined based on the age of the insured person and the Face
Amount of the policy.
VM 519
