WRL FREEDOM EQUITY PROTECTOR(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
14 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 INFORMATION IS ADDED FOOTNOTE (3) ON PAGE 15 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 15 OF THE
PROSPECTUS:
<TABLE>
<CAPTION>
------------------------------------- ---------------- -------------------- --------------------------
EXPENSE REIMBURSEMENT EXPENSE RATIO WITHOUT
LIMIT 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 15 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 18 - 21 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 SECOND PARAGRAPH ON PAGE 67 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 77 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), 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 79 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 84 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 86-87 OF THE
PROSPECTUS UNDER THE HEADING "APPENDIX A - ILLUSTRATIONS":
<TABLE>
<CAPTION>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
MALE ISSUE AGE 35
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
YEAR ACCUMULATED AT 0% (GROSS) 6% (GROSS) 12% (GROSS)
5% -1.84% (NET) 4.16% (NET) 10.16 (NET)
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<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) 139,522 165,000 165,000 347,113
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 253,680 165,000 165,000 822,374
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 439,631 * 246,736 2,129,741
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 742,526 * 372,900 5,309,581
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<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) 4.16% (NET) 10.16 (NET)
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 1,534 1,637 1,740
------------------- ----------------------------- --------------------------- ---------------------------
2 3,036 3,338 3,653
------------------- ----------------------------- --------------------------- ---------------------------
3 4,504 5,103 5,753
------------------- ----------------------------- --------------------------- ---------------------------
4 5,938 6,936 8,062
------------------- ----------------------------- --------------------------- ---------------------------
5 7,330 8,830 10,591
------------------- ----------------------------- --------------------------- ---------------------------
6 8,679 10,786 13,361
------------------- ----------------------------- --------------------------- ---------------------------
7 9,983 12,803 16,395
------------------- ----------------------------- --------------------------- ---------------------------
8 11,243 14,886 19,721
------------------- ----------------------------- --------------------------- ---------------------------
9 12,437 17,016 23,348
------------------- ----------------------------- --------------------------- ---------------------------
10 13,577 19,203 27,319
------------------- ----------------------------- --------------------------- ---------------------------
15 18,736 31,452 54,189
------------------- ----------------------------- --------------------------- ---------------------------
20 22,445 45,648 97,662
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 27,315 84,531 284,519
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 23,221 142,790 768,574
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 234,986 2,028,325
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 369,208 5,257,011
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
<PAGE>
<TABLE>
<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) 4.16% (NET) 10.16 (NET)
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 255 357 460
------------------- ----------------------------- --------------------------- ---------------------------
2 1,673 1,975 2,289
------------------- ----------------------------- --------------------------- ---------------------------
3 3,056 3,655 4,305
------------------- ----------------------------- --------------------------- ---------------------------
4 4,407 5,405 6,531
------------------- ----------------------------- --------------------------- ---------------------------
5 5,715 7,214 8,975
------------------- ----------------------------- --------------------------- ---------------------------
6 6,980 9,086 11,661
------------------- ----------------------------- --------------------------- ---------------------------
7 8,200 11,020 14,611
------------------- ----------------------------- --------------------------- ---------------------------
8 9,376 13,019 17,853
------------------- ----------------------------- --------------------------- ---------------------------
9 10,486 15,064 21,396
------------------- ----------------------------- --------------------------- ---------------------------
10 11,541 17,168 25,283
------------------- ----------------------------- --------------------------- ---------------------------
15 18,736 31,452 54,189
------------------- ----------------------------- --------------------------- ---------------------------
20 22,445 45,648 97,662
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 27,315 84,531 284,519
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 23,221 142,790 768,574
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 234,986 2,028,325
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 369,208 5,257,011
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
* In the absence of an additional payment, the Policy would lapse.
<TABLE>
<CAPTION>
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
HYPOTHETICAL ILLUSTRATIONS
MALE ISSUE AGE 35
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) 4.16% (NET) 10.16 (NET)
5%
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<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) 139,522 165,000 165,000 332,603
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 253,680 * 165,000 767,985
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 439,631 * 165,000 1,928,139
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 742,526 * 208,291 4,541,319
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
</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) 4.16% (NET) 10.16 (NET)
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 1,512 1,614 1,716
------------------- ----------------------------- --------------------------- ---------------------------
2 2,985 3,284 3,595
------------------- ----------------------------- --------------------------- ---------------------------
3 4,417 5,009 5,651
------------------- ----------------------------- --------------------------- ---------------------------
4 5,806 6,790 7,900
------------------- ----------------------------- --------------------------- ---------------------------
5 7,151 8,626 10,360
------------------- ----------------------------- --------------------------- ---------------------------
6 8,450 10,519 13,052
------------------- ----------------------------- --------------------------- ---------------------------
7 9,701 12,468 15,995
------------------- ----------------------------- --------------------------- ---------------------------
8 10,905 14,475 19,218
------------------- ----------------------------- --------------------------- ---------------------------
9 12,058 16,539 22,746
------------------- ----------------------------- --------------------------- ---------------------------
10 13,161 18,664 26,613
------------------- ----------------------------- --------------------------- ---------------------------
15 18,168 30,582 52,821
------------------- ----------------------------- --------------------------- ---------------------------
20 21,419 44,067 94,999
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 18,249 74,496 272,625
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 106,111 717,743
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 137,819 1,836,323
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 206,229 4,496,356
------------------- ----------------------------- --------------------------- ---------------------------
<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) 4.16% (NET) 10.16 (NET)
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 232 334 436
------------------- ----------------------------- --------------------------- ---------------------------
2 1,622 1,921 2,232
------------------- ----------------------------- --------------------------- ---------------------------
3 2,970 3,562 4,204
------------------- ----------------------------- --------------------------- ---------------------------
4 4,275 5,258 6,369
------------------- ----------------------------- --------------------------- ---------------------------
5 5,535 7,011 8,745
------------------- ----------------------------- --------------------------- ---------------------------
6 6,751 8,820 11,352
------------------- ----------------------------- --------------------------- ---------------------------
7 7,918 10,684 14,212
------------------- ----------------------------- --------------------------- ---------------------------
8 9,037 12,607 17,351
------------------- ----------------------------- --------------------------- ---------------------------
9 10,106 14,587 20,795
------------------- ----------------------------- --------------------------- ---------------------------
10 11,126 16,628 24,577
------------------- ----------------------------- --------------------------- ---------------------------
15 18,168 30,582 52,821
------------------- ----------------------------- --------------------------- ---------------------------
20 21,419 44,067 94,999
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 18,249 74,496 272,625
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 106,111 717,743
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 137,819 1,836,323
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 206,229 4,496,356
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
* In the absence of an additional payment, the Policy would lapse.
WRL00032-9/2000
