WRL FINANCIAL FREEDOM BUILDER(R)
SUPPLEMENT DATED JUNE 30, 1999
TO
PROSPECTUS DATED MAY 1, 1999
THE FOLLOWING INFORMATION REPLACES THE FIRST SIX PARAGRAPHS, IN THEIR ENTIRETY,
UNDER THE SECTION "THE POLICY - WHEN INSURANCE COVERAGE TAKES EFFECT" ON PAGES
21 AND 22 OF THE PROSPECTUS:
WHEN INSURANCE COVERAGE TAKES EFFECT
Insurance coverage under the Policy will take effect only if the
insured(s) is alive and in the same condition of health as described in the
application when the Policy is delivered to the owner, and if the initial
premium is paid.
CONDITIONAL INSURANCE COVERAGE. If you pay the full initial premium
listed in the conditional receipt attached to the application, and we deliver
the conditional receipt to you, you will have conditional insurance coverage
under the terms of the conditional receipt. Conditional insurance coverage is
void if the check or draft you gave us to pay the initial premium is not honored
when we first present it for payment.
THE AMOUNT OF CONDITIONAL o the specified amount applied for; or
INSURANCE COVERAGE o $300,000
IS THE LESSER OF: reduced by all amounts payable under all life
insurance applications that the insured has pending
with us.
CONDITIONAL LIFE INSURANCE o the date of your application; or
COVERAGE BEGINS ON THE o the date the insured completes all of the
LATER OF: medical tests and examinations that we
require; or
o the date of issue, if any, requested in the
application.
CONDITIONAL LIFE INSURANCE o the date we determine the insured has
COVERAGE TERMINATES satisfied our underwriting
AUTOMATICALLY ON THE requirements and the insurance applied for
EARLIEST OF: takes effect (the Policy date); or
o 60 days from the date the application was
completed; or
o the date we determine that any person
proposed for insurance in the application is
not insurable according to our rules, limits
and standards for the plan, amount and rate
class shown in the application; or
o the date we modify the plan, amount, riders
and/or the premium rate class shown in the
application, or any supplemental agreements;
or
o the date we mail notice of the ending of
coverage and we refund the first premium to
the applicant at the address shown on the
application.
SPECIAL LIMITATIONS o the conditional receipt will be VOID:
OF THE CONDITIONAL -> if not signed by an authorized agent of
RECEIPT: Western Reserve; or
-> in the event the application contains
any fraud or material misrepresentation;
or
-> if, on the date of the conditional
receipt, the proposed insured is under
15 days of age or over 80 years of age.
o the conditional receipt does not provide
benefits for disability and accidental death
benefits.
o the conditional receipt does not provide
benefits if any proposed insured commits
suicide. In this case, Western Reserve's
liability will be limited to return of the
first premium paid with the application.
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THE FOLLOWING SENTENCE REPLACES THE SECOND SENTENCE OF THE SECOND PARAGRAPH
UNDER THE SECTION "APPENDIX A-ILLUSTRATIONS" ON PAGE 77 OF THE PROSPECTUS:
The illustration on that page also assumes cost of insurance charges based on
our GUARANTEED cost of insurance rates.
THE FOLLOWING PARAGRAPH REPLACES THE THIRD PARAGRAPH UNDER THE SECTION
"APPENDIX A-ILLUSTRATIONS" ON PAGE 77 OF THE PROSPECTUS:
The illustration on page 80 is based on the same factors as those on
page 79, except that cost of insurance rates are based on the CURRENT cost
of insurance rates (based on the 1980 Commissioners Standard Ordinary Mortality
Table).
THE HEADING OF THE HYPOTHETICAL ILLUSTRATION ON PAGE 79 OF THE PROSPECTUS IS
AMENDED TO READ "USING GUARANTEED COST OF INSURANCE RATES" AND THE HEADING OF
THE HYPOTHETICAL ILLUSTRATION ON PAGE 80 OF THE PROSPECTUS IS AMENDED TO READ
"USING CURRENT COST OF INSURANCE RATES."
