WRL FINANCIAL FREEDOM BUILDER(R)
SUPPLEMENT DATED SEPTEMBER 1, 2000 TO
PROSPECTUS DATED MAY 1, 2000
Effective September 1, 2000, the WRL Series Fund offers two new investment
options under this Policy. Also, the WRL Janus Global portfolio and subaccount
are only available for investment to policyowners who purchased their Policy
before September 1, 2000. Pending any prior approval by a state insurance
regulatory authority, certain subaccounts and corresponding portfolios may not
be available to residents of some states.
THE FOLLOWING INFORMATION IS ADDED TO PAGE 5 OF THE PROSPECTUS UNDER THE HEADING
"INVESTMENT OPTIONS":
WRL SERIES FUND, INC.
WRL Great Companies - Global(2)
WRL Gabelli Global Growth
THE FOLLOWING INFORMATION IS ADDED TO THE PORTFOLIO ANNUAL EXPENSE TABLE ON PAGE
13 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
------------------------------------- ---------------- ----------- ------------ --------------------
MANAGEMENT OTHER RULE 12B-1 TOTAL PORTFOLIO
PORTFOLIO FEES EXPENSES FEES ANNUAL EXPENSES
------------------------------------- ---------------- ----------- ------------ --------------------
<S> <C> <C> <C> <C>
WRL Great Companies - Global(2) (10) 0.80% 0.20% N/A 1.00%
------------------------------------- ---------------- ----------- ------------ --------------------
WRL Gabelli Global Growth(10) 1.00% 0.20% N/A 1.20%
------------------------------------- ---------------- ----------- ------------ --------------------
</TABLE>
THE FOLLOWING IS ADDED TO FOOTNOTE (3) ON PAGE 14 OF THE PROSPECTUS:
Effective September 1, 2000, this portfolio is not available for investment to
new policyowners.
THE FOLLOWING IS ADDED TO THE TABLE IN FOOTNOTE (9) ON PAGE 14 OF THE
PROSPECTUS:
<TABLE>
<CAPTION>
------------------------------------- ---------------- -------------------- --------------------------
EXPENSE LIMIT REIMBURSEMENT EXPENSE RATIO WITHOUT
AMOUNT REIMBURSEMENT
------------------------------------- ---------------- -------------------- --------------------------
<S> <C> <C> <C>
WRL Great Companies - Global(2) 1.00% N/A N/A
------------------------------------- ---------------- -------------------- --------------------------
WRL Gabelli Global Growth 1.20% N/A N/A
------------------------------------- ---------------- -------------------- --------------------------
</TABLE>
THE FOLLOWING FOOTNOTE IS ADDED TO PAGE 14 OF THE PROSPECTUS:
(10) Because these portfolios did not commence operations until September 1,
2000, the percentages set forth as "Other Expenses" and "Total Annual
Expenses" reflect estimates of "Other Expenses" for the first year of
operations.
THE FOLLOWING INFORMATION IS ADDED TO PAGES 17 - 19 OF THE PROSPECTUS UNDER THE
HEADING "THE SEPARATE ACCOUNT AND THE PORTFOLIOS - THE FUNDS":
<TABLE>
<CAPTION>
PORTFOLIO SUB-ADVISER OR ADVISER INVESTMENT OBJECTIVE
<S> <C> <C>
WRL Great Companies - Global(2) Great Companies, L.L.C. Seeks long-term growth of capital
in a manner consistent with
preservation of capital.
WRL Gabelli Global Growth Gabelli Asset Management Company Seeks to provide investors with
appreciation of capital. Current
income is a secondary objective.
</TABLE>
<PAGE>
THE FOLLOWING PARAGRAPH REPLACES THE LAST PARAGRAPH ON PAGE 63 OF THE PROSPECTUS
UNDER THE HEADING "PERFORMANCE DATA - RATES OF RETURN":
Because the WRL Great Companies - America(SM), WRL Great Companies -
Technology(SM), WRL Value Line Aggressive Growth, WRL Great Companies -
Global(2), WRL Gabelli Global Growth portfolios, Fidelity VIP Equity-Income
Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service
Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2
had not commenced operations as of December 31, 1999, the above chart does not
reflect rates of return for these portfolios.
THE FOLLOWING PARAGRAPH REPLACES THE LAST PARAGRAPH ON PAGE 73 OF THE PROSPECTUS
UNDER THE HEADING "PERFORMANCE DATA - HYPOTHETICAL ILLUSTRATIONS BASED ON
SUBACCOUNT PERFORMANCE":
Because the WRL Goldman Sachs Growth, WRL Goldman Sachs Small Cap, WRL
T. Rowe Price Dividend Growth, WRL T. Rowe Price Small Cap, WRL Salomon All Cap,
WRL Pilgrim Baxter Mid Cap Growth and WRL Dreyfus Mid Cap subaccounts did not
commence operations until May 3, 1999, and the Fidelity VIP Equity-Income
Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service
Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2,
WRL Great Companies - America(SM), WRL Great Companies - Technology(SM), and WRL
Value Line Aggressive Growth subaccounts did not commence operations until May
1, 2000, and the WRL Great Companies - Global(2) and WRL Gabelli Global Growth
subaccounts did not commence operations until September 1, 2000, there are no
hypothetical illustrations for these subaccounts.
THE FOLLOWING PARAGRAPH REPLACES THE FIFTH PARAGRAPH ON PAGE 75 UNDER THE
HEADING "ADDITIONAL INFORMATION - LEGAL PROCEEDINGS":
Western Reserve, like other life insurance companies, is involved in
lawsuits, including class action lawsuits. In some lawsuits involving insurers,
substantial damages have been sought and/or material settlement payments have
been made. Although the outcome of any litigation cannot be predicted with
certainty, at the present time, it appears that there are no pending or
threatened lawsuits that are likely to have a material adverse impact on the
separate account, on AFSG's ability to perform under its principal underwriting
agreement, or on Western Reserve's ability to meet its obligations under the
Policy.
THE FOLLOWING REPLACES THE FIFTH PARAGRAPH ON PAGE 79 OF THE PROSPECTUS UNDER
THE HEADING "APPENDIX A - ILLUSTRATIONS":
Because the WRL Great Companies - America(SM), WRL Great Companies -
Technology(SM), WRL Value Line Aggressive Growth, WRL Great Companies -
Global(2), WRL Gabelli Global Growth portfolios, Fidelity VIP Equity-Income
Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service
Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2
had not commenced operations as of December 31, 1999, the estimated average
annual portfolio expense level reflects estimated expenses for each of these
portfolios for 2000.
<PAGE>
THE FOLLOWING INFORMATION REPLACES THE INFORMATION ON PAGES 81-82 OF THE
PROSPECTUS UNDER THE HEADING "APPENDIX A - ILLUSTRATIONS":
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
MALE ISSUE AGE 35
<TABLE>
<CAPTION>
Specified Amount $165,000 Ultimate Select Class
Annual Premium $2,000 Option Type A
Using Current Cost of Insurance Rates
------------------- ----------------- -------------------------------------------------------------------------------------
DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- ----------------- -------------------------------------------------------------------------------------
END OF POLICY PREMIUM 0% (GROSS) 6% (GROSS) 12% (GROSS)
YEAR ACCUMULATED AT -1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
5% -1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<S> <C> <C> <C> <C>
1 2,100 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
2 4,305 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
3 6,620 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
4 9,051 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
5 11,604 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
6 14,284 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
7 17,098 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
8 20,053 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
9 23,156 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
10 26,414 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
15 45,315 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
20 69,439 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
30 (AGE 65) 139,522 165,000 165,000 353,523
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 253,680 165,000 165,000 848,172
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 439,631 * 258,164 2,225,344
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 742,526 * 394,553 5,622,222
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<CAPTION>
------------------- -------------------------------------------------------------------------------------
CASH VALUE
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- ----------------------------- --------------------------- ---------------------------
END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS)
YEAR -1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
-1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 1,533 1,636 1,739
------------------- ----------------------------- --------------------------- ---------------------------
2 3,034 3,336 3,650
------------------- ----------------------------- --------------------------- ---------------------------
3 4,501 5,100 5,749
------------------- ----------------------------- --------------------------- ---------------------------
4 5,935 6,932 8,057
------------------- ----------------------------- --------------------------- ---------------------------
5 7,326 8,824 10,584
------------------- ----------------------------- --------------------------- ---------------------------
6 8,674 10,779 13,352
------------------- ----------------------------- --------------------------- ---------------------------
7 9,977 12,795 16,384
------------------- ----------------------------- --------------------------- ---------------------------
8 11,236 14,877 19,708
------------------- ----------------------------- --------------------------- ---------------------------
9 12,429 17,004 23,333
------------------- ----------------------------- --------------------------- ---------------------------
10 13,568 19,191 27,301
------------------- ----------------------------- --------------------------- ---------------------------
15 18,723 31,431 54,152
------------------- ----------------------------- --------------------------- ---------------------------
20 22,588 45,932 98,247
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 27,819 86,160 289,773
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 24,104 147,727 792,685
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 245,870 2,119,375
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 390,647 5,566,556
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------- -------------------------------------------------------------------------------------
NET SURRENDER VALUE
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- ----------------------------- --------------------------- ---------------------------
END OF POLICY YEAR 0% (GROSS) 6% (GROSS) 12% (GROSS)
-1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
-1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 0 0 0
------------------- ----------------------------- --------------------------- ---------------------------
2 474 775 1,089
------------------- ----------------------------- --------------------------- ---------------------------
3 1,940 2,539 3,188
------------------- ----------------------------- --------------------------- ---------------------------
4 3,374 4,371 5,496
------------------- ----------------------------- --------------------------- ---------------------------
5 4,765 6,263 8,023
------------------- ----------------------------- --------------------------- ---------------------------
6 6,369 8,474 11,048
------------------- ----------------------------- --------------------------- ---------------------------
7 7,928 10,746 14,335
------------------- ----------------------------- --------------------------- ---------------------------
8 9,443 13,084 17,915
------------------- ----------------------------- --------------------------- ---------------------------
9 10,893 15,468 21,796
------------------- ----------------------------- --------------------------- ---------------------------
10 12,287 17,910 26,020
------------------- ----------------------------- --------------------------- ---------------------------
15 18,723 31,431 54,152
------------------- ----------------------------- --------------------------- ---------------------------
20 22,588 45,932 98,247
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 27,819 86,160 289,773
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 24,104 147,727 792,685
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 245,870 2,119,375
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 390,647 5,566,556
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
* In the absence of an additional payment, the Policy would lapse.
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
MALE ISSUE AGE 35
<TABLE>
<CAPTION>
Specified Amount $165,000 Ultimate Select Class
Annual Premium $2,000 Option Type A
Using Guaranteed Cost of Insurance Rates
------------------- ----------------- -------------------------------------------------------------------------------------
DEATH BENEFIT
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
END OF POLICY PREMIUM 0% (GROSS) 6% (GROSS) 12% (GROSS)
YEAR ACCUMULATED AT -1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
5% -1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<S> <C> <C> <C> <C>
1 2,100 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
2 4,305 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
3 6,620 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
4 9,051 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
5 11,604 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
6 14,284 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
7 17,098 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
8 20,053 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
9 23,156 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
10 26,414 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
15 45,315 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
20 69,439 165,000 165,000 165,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
30 (AGE 65) 139,522 165,000 165,000 339,271
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 253,680 * 165,000 793,211
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 439,631 * 170,894 2,017,430
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 742,526 * 254,782 4,815,026
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------- -------------------------------------------------------------------------------------
CASH VALUE
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- ----------------------------- --------------------------- ---------------------------
END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS)
YEAR -1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
-1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 1,533 1,636 1,739
------------------- ----------------------------- --------------------------- ---------------------------
2 3,006 3,306 3,620
------------------- ----------------------------- --------------------------- ---------------------------
3 4,436 5,031 5,677
------------------- ----------------------------- --------------------------- ---------------------------
4 5,824 6,812 7,928
------------------- ----------------------------- --------------------------- ---------------------------
5 7,167 8,648 10,389
------------------- ----------------------------- --------------------------- ---------------------------
6 8,465 10,541 13,083
------------------- ----------------------------- --------------------------- ---------------------------
7 9,715 12,490 16,028
------------------- ----------------------------- --------------------------- ---------------------------
8 10,917 14,497 19,253
------------------- ----------------------------- --------------------------- ---------------------------
9 12,069 16,561 22,784
------------------- ----------------------------- --------------------------- ---------------------------
10 13,172 18,685 26,654
------------------- ----------------------------- --------------------------- ---------------------------
15 18,173 30,603 52,882
------------------- ----------------------------- --------------------------- ---------------------------
20 21,574 44,397 95,731
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 18,722 76,185 278,091
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 111,721 741,318
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 162,756 1,921,361
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 252,260 4,767,353
------------------- ----------------------------- --------------------------- ---------------------------
<CAPTION>
------------------- -------------------------------------------------------------------------------------
NET SURRENDER VALUE
ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF
------------------- -------------------------------------------------------------------------------------
END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS)
YEAR -1.84% (NET) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
-1.69% (NET) YEARS 16+ 4.31% (NET) YEARS 16+ 10.31% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 0 0 0
------------------- ----------------------------- --------------------------- ---------------------------
2 445 745 1,059
------------------- ----------------------------- --------------------------- ---------------------------
3 1,875 2,470 3,116
------------------- ----------------------------- --------------------------- ---------------------------
4 3,263 4,251 5,367
------------------- ----------------------------- --------------------------- ---------------------------
5 4,606 6,088 7,828
------------------- ----------------------------- --------------------------- ---------------------------
6 6,161 8,237 10,778
------------------- ----------------------------- --------------------------- ---------------------------
7 7,666 10,441 13,980
------------------- ----------------------------- --------------------------- ---------------------------
8 9,125 12,704 17,461
------------------- ----------------------------- --------------------------- ---------------------------
9 10,533 15,024 21,248
------------------- ----------------------------- --------------------------- ---------------------------
10 11,891 17,405 25,373
------------------- ----------------------------- --------------------------- ---------------------------
15 18,173 30,603 52,882
------------------- ----------------------------- --------------------------- ---------------------------
20 21,574 44,397 95,731
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 18,722 76,185 278,091
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 111,721 741,318
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 162,756 1,921,361
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 252,260 4,767,353
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
* In the absence of an additional payment, the Policy would lapse.
WRL00033-9/2000
