WRL FREEDOM ELITE(SM)
SUPPLEMENT DATED SEPTEMBER 1, 2000 TO
PROSPECTUS DATED MAY 1, 20000
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 INFORMATION 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 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 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 PENULTIMATE 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 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 LAST PARAGRAPH ON PAGE 80 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 82-83 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 $500,000 Ultimate Select Class
Annual Premium $5,500 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% -1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<S> <C> <C> <C> <C>
1 5,775 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
2 11,839 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
3 18,206 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
4 24,891 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
5 31,911 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
6 39,281 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
7 47,020 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
8 55,146 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
9 63,678 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
10 72,637 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
15 124,616 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
20 190,956 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
30 (AGE 65) 383,684 500,000 500,000 1,097,637
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 697,619 500,000 502,726 2,732,927
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 1,208,985 * 848,516 7,454,241
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 2,041,946 * 1,342,438 19,597,364
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<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
-1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 4,582 4,885 5,189
------------------- ----------------------------- --------------------------- ---------------------------
2 9,067 9,962 10,894
------------------- ----------------------------- --------------------------- ---------------------------
3 13,448 15,228 17,158
------------------- ----------------------------- --------------------------- ---------------------------
4 17,731 20,698 24,045
------------------- ----------------------------- --------------------------- ---------------------------
5 21,886 26,347 31,584
------------------- ----------------------------- --------------------------- ---------------------------
6 25,912 32,180 39,842
------------------- ----------------------------- --------------------------- ---------------------------
7 29,801 38,197 48,885
------------------- ----------------------------- --------------------------- ---------------------------
8 33,558 44,407 58,798
------------------- ----------------------------- --------------------------- ---------------------------
9 37,117 50,753 69,606
------------------- ----------------------------- --------------------------- ---------------------------
10 40,511 57,271 81,436
------------------- ----------------------------- --------------------------- ---------------------------
15 54,843 92,526 160,014
------------------- ----------------------------- --------------------------- ---------------------------
20 66,729 136,925 294,731
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 83,556 264,438 899,703
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 73,312 469,838 2,554,138
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 808,111 7,099,277
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 1,329,146 19,403,331
------------------- ----------------------------- --------------------------- ---------------------------
</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) YEARS 1-15 4.16% (NET) YEARS 1-15 10.16 (NET) YEARS 1-15
-1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 708 1,012 1,316
------------------- ----------------------------- --------------------------- ---------------------------
2 4,732 5,626 6,559
------------------- ----------------------------- --------------------------- ---------------------------
3 8,650 10,431 12,361
------------------- ----------------------------- --------------------------- ---------------------------
4 12,472 15,439 18,785
------------------- ----------------------------- --------------------------- ---------------------------
5 16,165 20,626 25,863
------------------- ----------------------------- --------------------------- ---------------------------
6 19,728 25,997 33,659
------------------- ----------------------------- --------------------------- ---------------------------
7 23,156 31,552 42,240
------------------- ----------------------------- --------------------------- ---------------------------
8 26,451 37,300 51,691
------------------- ----------------------------- --------------------------- ---------------------------
9 29,548 43,183 62,037
------------------- ----------------------------- --------------------------- ---------------------------
10 32,480 49,239 73,404
------------------- ----------------------------- --------------------------- ---------------------------
15 54,843 92,526 160,014
------------------- ----------------------------- --------------------------- ---------------------------
20 66,729 136,925 294,731
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 83,556 264,438 899,703
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) 73,312 469,838 2,554,138
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 808,111 7,099,277
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 1,329,146 19,403,331
------------------- ----------------------------- --------------------------- ---------------------------
</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 $500,000 Ultimate Select Class
Annual Premium $5,500 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% -1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
<S> <C> <C> <C> <C>
1 5,775 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
2 11,839 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
3 18,206 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
4 24,891 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
5 31,911 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
6 39,281 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
7 47,020 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
8 55,146 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
9 63,678 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
10 72,637 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
15 124,616 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
20 190,956 500,000 500,000 500,000
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
30 (AGE 65) 383,684 500,000 500,000 1,052,238
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
40 (AGE 75) 697,619 * 500,000 2,552,688
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
50 (AGE 85) 1,208,985 * 601,947 6,748,597
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
60 (AGE 95) 2,041,946 * 920,143 16,759,035
------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
</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
-1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 4,582 4,885 5,189
------------------- ----------------------------- --------------------------- ---------------------------
2 8,980 9,872 10,801
------------------- ----------------------------- --------------------------- ---------------------------
3 13,251 15,020 16,939
------------------- ----------------------------- --------------------------- ---------------------------
4 17,395 20,335 23,652
------------------- ----------------------------- --------------------------- ---------------------------
5 21,405 25,813 30,993
------------------- ----------------------------- --------------------------- ---------------------------
6 25,279 31,460 39,024
------------------- ----------------------------- --------------------------- ---------------------------
7 29,007 37,271 47,805
------------------- ----------------------------- --------------------------- ---------------------------
8 32,592 43,254 57,419
------------------- ----------------------------- --------------------------- ---------------------------
9 36,025 49,405 67,940
------------------- ----------------------------- --------------------------- ---------------------------
10 39,309 55,736 79,471
------------------- ----------------------------- --------------------------- ---------------------------
15 53,172 90,013 156,152
------------------- ----------------------------- --------------------------- ---------------------------
20 63,592 132,166 286,923
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 55,226 233,169 862,490
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 357,920 2,385,689
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 573,283 6,427,235
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 911,033 16,593,104
------------------- ----------------------------- --------------------------- ---------------------------
<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
-1.24% (NET) YEARS 16+ 4.76% (NET) YEARS 16+ 10.76% (NET) YEARS 16+
------------------- ----------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
1 708 1,012 1,316
------------------- ----------------------------- --------------------------- ---------------------------
2 4,644 5,536 6,466
------------------- ----------------------------- --------------------------- ---------------------------
3 8,454 10,223 12,141
------------------- ----------------------------- --------------------------- ---------------------------
4 12,136 15,075 18,393
------------------- ----------------------------- --------------------------- ---------------------------
5 15,684 20,092 25,272
------------------- ----------------------------- --------------------------- ---------------------------
6 19,096 25,277 32,841
------------------- ----------------------------- --------------------------- ---------------------------
7 22,362 30,625 41,160
------------------- ----------------------------- --------------------------- ---------------------------
8 25,485 36,146 50,311
------------------- ----------------------------- --------------------------- ---------------------------
9 28,456 41,836 60,371
------------------- ----------------------------- --------------------------- ---------------------------
10 31,277 47,705 71,439
------------------- ----------------------------- --------------------------- ---------------------------
15 53,172 90,013 156,152
------------------- ----------------------------- --------------------------- ---------------------------
20 63,592 132,166 286,923
------------------- ----------------------------- --------------------------- ---------------------------
30 (AGE 65) 55,226 233,169 862,490
------------------- ----------------------------- --------------------------- ---------------------------
40 (AGE 75) * 357,920 2,385,689
------------------- ----------------------------- --------------------------- ---------------------------
50 (AGE 85) * 573,283 6,427,235
------------------- ----------------------------- --------------------------- ---------------------------
60 (AGE 95) * 911,033 16,593,104
------------------- ----------------------------- --------------------------- ---------------------------
</TABLE>
* In the absence of an additional payment, the Policy would lapse.
WRL00194-9/2000
