The Equitable Life Assurance Society
of the United States
ACCOUNTING BENEFIT ENDORSEMENT
SUPPLEMENT DATED
MARCH 24, 2000 TO
SURVIVORSHIP INCENTIVE LIFE(SM)
PROSPECTUS DATED OCTOBER 18, 1999
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This supplement modifies certain information in the prospectus dated October 18,
1999 for the Survivorship Incentive Life flexible premium "second-to-die"
variable life insurance policies issued by Equitable Life.
Subject to the conditions discussed below, Equitable Life will offer an
Endorsement to your Survivorship Incentive Life policy (the "Endorsement")
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.
Under our current rules, the Endorsement will be offered where the following
conditions are met:
o a minimum of five policies are issued, each on the lives of different insured
persons;
o the persons proposed to be insured are deemed by us to be "highly
compensated" individuals;
o the policies have an average face amount of at least $500,000;
o the initial premium under each of the policies is remitted to Equitable
Life by the employer; and
o the aggregate annualized first year planned periodic premium for all policies
is at least $150,000.
The Endorsement reduces the difference between the premiums paid for the policy
and the amount we will pay you if the policy is surrendered in its early years.
This, in turn, is expected to reduce any charge against the employer's earnings
when the employer accounts for the policy 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 works by refunding all or a portion of the deductions from
premiums and waiving all or a portion of the surrender charges, if the policy is
surrendered in its early years. The percentage of charges refunded or waived
under the Endorsement are as follows:
----------------- ------------------ -----------------
PERCENT OF PERCENT OF
SURRENDER PREMIUM SURRENDER
IN POLICY DEDUCTION CHARGES
YEAR REFUNDED WAIVED
----------------- ------------------ -----------------
1 100% 100%
2 67% 80%
3 33% 60%
4 0% 40%
5 0% 20%
6 and later 0% 0%
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For example, if a policy subject to the Endorsement were surrendered in its
second policy year, we would refund
o 67% of the charges that had been deducted from premiums (i.e., the sales
charge and charge for taxes)
and
o 80% of the amount of surrender charges that we otherwise would have imposed
for the surrender (which includes both the premium surrender charges and the
administrative surrender charge).
Once the Endorsement terminates at the end of the fifth policy year, however,
there will be no refund of prior deductions from premiums, and the full amount
of the surrender charges otherwise payable under the policy will be assessed
upon surrender. The Endorsement operates only if the policy is surrendered in
full. There is no waiver of surrender charges or refund of premium deductions if
the policy terminates after a grace period 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 amount available for borrowing or withdrawing
from your policy. Nor does it affect the calculations to determine whether your
policy will lapse or terminate.
