AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT V (ENCORE!)
Supplement to Prospectus dated May 1, 1997
The prospectus is amended at pages 6, 9, 21, 29 and Appendix A to disclose that
the current mortality and expense risk charge is charged at an annual rate of
.70% for policy years 1 - 4, .45% for policy years 5 - 20, and .30% for the
years thereafter; and the total daily charge for mortality and expense risks and
administrative expenses is at an annual rate of .70% for policy years 1 - 20,
and .45% for the years thereafter. The maximum charge is 1.15%.
The prospectus is further amended at page 32, under the section "Distribution of
the Policies," to disclose that during the first Policy Year, the commission may
equal an amount up to 95% of the first year target premium paid plus the first
year cost of any riders and 2% for premiums paid in excess of the first year
target premium.
Appendix A, appearing at pages 57 - 61 of the prospectus, is amended by
replacing current Appendix A, in its entirety, with the following revised
Appendix A.
<PAGE>
APPENDIX A
ILLUSTRATIONS OF DEATH BENEFITS AND CASH VALUES
The following tables illustrate how the cash values and death benefits of a
Policy may change with the investment experience of the Fund. The tables show
how the cash values and death benefits of a Policy issued to an Insured of a
given age and specified underwriting risk classification who pays the given
premium at issue would vary over time if the investment return on the assets
held in each portfolio of the Funds were a uniform, gross, after-tax annual rate
of 0%, 6%, or 12%. The tables on pages 58 through 61 illustrate a Policy issued
to a male, age 45, under a Preferred rate non-tobacco underwriting risk
classification. This policy provides for a standard tobacco use and non-tobacco
use, and preferred non-tobacco classification and different rates for certain
specified amounts. The cash values and death benefits would be different from
those shown if the gross annual investment rates of return averaged 0%, 6%, and
12% over a period of years, but fluctuated above and below those averages for
individual policy years, or if the Insured were assigned to a different
underwriting risk classification.
The second column of the tables shows the accumulated value of the premiums paid
at 5%. The following columns show the death benefits and the cash values for
uniform hypothetical rates of return shown in these tables. The tables on pages
58 and 60 are based on the current cost of insurance rates, current expense
deductions and the maximum percent of premium loads. These reflect the basis on
which AVLIC currently sells its Policies. The maximum allowable cost of
insurance rates under the Policy are based upon the 1980 Commissioner's Standard
Ordinary Smoker and Non-Smoker, Male and Female Mortality Tables (Smoker is
referenced for tobacco use rates; Non-Smoker is referenced for non-tobacco use
rates). Since these are recent tables and are split to reflect tobacco use and
sex, the current cost of insurance rates used by AVLIC are at this time equal to
the maximum cost of insurance rates for many ages. AVLIC anticipates reflecting
future improvements in actual mortality experience through adjustments in the
current cost of insurance rates actually applied. AVLIC also anticipates
reflecting any future improvements in expenses incurred by applying lower
percent of premiums of loads and other expense deductions. The death benefits
and cash values shown in the tables on pages 59 and 61 are based on the
assumption that the maximum allowable cost of insurance rates as described above
and maximum allowable expense deductions are made throughout the life of the
Policy.
The amounts shown for the death benefits, surrender values and accumulation
values reflect the fact that the net investment return of the Subaccounts is
lower than the gross, after-tax return of the assets held in the Funds as a
result of expenses paid by the Fund and charges levied against the Subaccounts.
The values shown take into account an average of the daily management fee paid
by each portfolio available for investment (the equivalent to an annual rate of
.69% of the aggregate average daily net assets of the Fund), the other expenses
incurred by the Fund (.20%), and the daily charge by AVLIC to each Subaccount
for assuming mortality and expense risks and administrative expenses (which is
equivalent to a charge at an annual rate of .70% for policy years 1-20 and .45%
thereafter on pages 58 and 60 and at an annual rate of 1.15% on pages 59 and 61
of the average net assets of the Subaccounts). The Investment Advisor or other
affiliates of the various funds have agreed to reimburse the portfolios to the
extent that the aggregate operating expenses (certain portfolio's may exclude
certain items) were in excess of an annual rate of 1.00% for the High Income,
Contrafund and Asset Manager: Growth Portfolios, 1.50% for the Equity-Income,
Growth and Overseas Portfolios, .80% for the Investment Grade Bond Portfolio,
1.25% for the Asset Manager Portfolio, .28% for the Index 500 Portfolio, 1.25%
for the Alger American Income and Growth and Alger American Balanced Portfolio;
1.50% for the Alger American Small Capitalization, Alger American Mid-Cap
Growth, Alger American Leveraged All Cap, and Alger American Growth Portfolios;
1.75% for the Morgan Stanley Emerging Markets Equity, 1.20% for the Morgan
Stanley Asian Equity, 1.15% for the Morgan Stanley Global Equity and Morgan
Stanley International Magnum, 1.10% for the Morgan Stanley U.S. Real Estate
Portfolios of daily net assets. MFS has agreed to bear expenses for each series,
subject to reimbursement by each series, such that each series "Other Expenses"
shall not exceed .25% of the average daily net assets of the series during the
current fiscal year. These agreements are expected to continue in future years
but may be terminated at any time. As long as the expense limitations continue
for a portfolio, if a reimbursement occurs, it has the effect of lowering the
portfolio's expense ratio and increasing its total return. The illustrated gross
annual investment rates of return of 0%, 6%, and 12% were computed after
deducting fund expenses and correspond to approximate net annual rates of
- -1.59%, 4.41%, and 10.41% respectively, for years 1-20 and -1.34%, 4.66%, and
10.66% for the years thereafter respectively, on pages 58 and 60 and -2.04%,
3.96%, and 9.96% respectively, on pages 59 and 61.
The hypothetical values shown in the tables do not reflect any charges for
Federal Income tax burden attributable to the Account, since AVLIC is not
currently making such charges. However, such charges may be made in the future
and, in that event, the gross annual investment rate of return would have to
exceed 0 percent, 6 percent, or 12 percent by an amount sufficient to cover the
tax charges in order to produce the death benefits and values illustrated. (See
Federal Tax Matters, page 32.)
The tables illustrate the policy values that would result based upon the
hypothetical investment rates of return if premiums are paid as indicated, if
all net premiums are allocated to the Account, and if no policy loans have been
made. The tables are also based on the assumptions that the policyowner has not
requested an increase or decrease in the initial Specified Amount, that no
partial withdrawals have been made, and that no more than fifteen transfers have
been made in any policy year so that no transfer charges have been incurred.
Illustrated values would be different if the proposed Insured were female, a
tobacco user, in substandard risk classification, or were another age, or if a
higher or lower premium was illustrated.
Upon request, AVLIC will provide comparable illustration based upon the proposed
Insured's age, sex and underwriting classification, the Specified Amount, the
death benefit option, and planned periodic premium schedule requested, and any
available riders requested. In addition, upon client request, illustrations may
be furnished reflecting allocation of premiums to specified Subaccounts. Such
illustrations will reflect the expenses of the portfolio in which the Subaccount
invests.
ENCORE! 57
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION OF POLICY VALUES
AMERITAS VARIABLE LIFE INSURANCE COMPANY
ENDOWMENT AT AGE 100
Male Issue Age: 45 Nontobacco Preferred Underwriting Class
PLANNED PERIODIC ANNUAL PREMIUM: $6000
INITIAL SPECIFIED AMOUNT: $500000
DEATH BENEFIT OPTION: A
USING CURRENT SCHEDULE OF COST OF INSURANCE RATES
0% Hypothetical Gross 6% Hypothetical Gross 12% Hypothetical Gross
Annual Investment Return Annual Investment Return Annual Investment Return
(-1.59% Net) ( 4.41% Net) (10.41% Net)
----------------------------- -------------------------- --------------------------
Accumulated
End Of Premiums At Accumu- Cash Accumu- Cash Accumu- Cash
Policy 5% Interest lation Surrender Death lation Surrender Death lation Surrender Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 6300 4416 0 500000 4722 0 500000 5028 0 500000
2 12915 8655 1940 500000 9543 2828 500000 10470 3755 500000
3 19860 12719 6004 500000 14468 7753 500000 16367 9652 500000
4 27153 16610 9895 500000 19502 12787 500000 22772 16057 500000
5 34811 20329 13614 500000 24649 17934 500000 29737 23022 500000
6 42852 23879 17836 500000 29917 23874 500000 37328 31284 500000
7 51294 27256 21884 500000 35306 29934 500000 45606 40234 500000
8 60159 30466 25766 500000 40827 36127 500000 54655 49954 500000
9 69467 33506 29477 500000 46483 42454 500000 64555 60526 500000
10 79240 36375 33017 500000 52278 48921 500000 75402 72044 500000
15 135944 48076 48076 500000 83546 83546 500000 148001 148001 500000
20 208315 54376 54376 500000 118585 118585 500000 266480 266480 500000
Ages
60 135944 48076 48076 500000 83546 83546 500000 148001 148001 500000
65 208315 54376 54376 500000 118585 118585 500000 266480 266480 500000
70 300680 49325 49325 500000 154856 154856 500000 469187 469187 544257
75 418564 22557 22557 500000 185852 185852 500000 816053 816053 873177
</TABLE>
1) Assumes an annual $6000 premium is paid at the beginning of each policy year.
Values would be different if premiums with a different frequency or in different
amounts.
2) Assumes that no policy loan has been made. Excessive loans or withdrawals may
cause this policy to lapse because of insufficient cash value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY AN OWNER, DEATH BENEFIT OPTION SELECTED,
PREVAILING INTEREST RATES AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH
VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE BY AVLIC OR THE FUNDS THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE
ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
58 ENCORE!
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION OF POLICY VALUES
AMERITAS VARIABLE LIFE INSURANCE COMPANY
ENDOWMENT AT AGE 100
Male Issue Age: 45 Nontobacco Preferred Underwriting Class
PLANNED PERIODIC ANNUAL PREMIUM: $6000
INITIAL SPECIFIED AMOUNT: $500000
DEATH BENEFIT OPTION: A
USING MAXIMUM ALLOWABLE SCHEDULE OF COST OF INSURANCE RATES
0% Hypothetical Gross 6% Hypothetical Gross 12% Hypothetical Gross
Annual Investment Return Annual Investment Return Annual Investment Return
(-2.04% Net) ( 3.96% Net) ( 9.96% Net)
----------------------------- -------------------------- --------------------------
Accumulated
End Of Premiums At Accumu- Cash Accumu- Cash Accumu- Cash
Policy 5% Interest lation Surrender Death lation Surrender Death lation Surrender Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 6300 4416 0 500000 4722 0 500000 5028 0 500000
2 12915 8042 1327 500000 8908 2193 500000 9812 3097 500000
3 19860 11491 4776 500000 13155 6440 500000 14968 8253 500000
4 27153 14734 8019 500000 17436 10721 500000 20503 13788 500000
5 34811 17758 11043 500000 21735 15020 500000 26441 19726 500000
6 42852 20559 14516 500000 26044 20001 500000 32819 26775 500000
7 51294 23110 17738 500000 30337 24965 500000 39652 34280 500000
8 60159 25384 20684 500000 34581 29881 500000 46963 42262 500000
9 69467 27360 23331 500000 38753 34724 500000 54780 50751 500000
10 79240 29002 25644 500000 42808 39451 500000 63129 59771 500000
15 135944 31280 31280 500000 60192 60192 500000 114361 114361 500000
20 208315 19566 19566 500000 67704 67704 500000 187183 187183 500000
Ages
60 135944 31280 31280 500000 60192 60192 500000 114361 114361 500000
65 208315 19566 19566 500000 67704 67704 500000 187183 187183 500000
70 300680 0* 0* 0* 51765 51765 500000 295923 295923 500000
75 418564 0* 0* 0* 0* 0* 0* 481266 481266 514954
</TABLE>
* In the absence of an additional premium the Policy would lapse.
1) Assumes an annual $6000 premium is paid at the beginning of each policy year.
Values would be different if premiums with a different frequency or in different
amounts.
2) Assumes that no policy loan has been made. Excessive loans or withdrawals may
cause this policy to lapse because of insufficient cash value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY AN OWNER, DEATH BENEFIT OPTION SELECTED,
PREVAILING INTEREST RATES AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH
VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE BY AVLIC OR THE FUNDS THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE
ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
ENCORE! 59
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION OF POLICY VALUES
AMERITAS VARIABLE LIFE INSURANCE COMPANY
ENDOWMENT AT AGE 100
Male Issue Age: 45 Nontobacco Preferred Underwriting Class
PLANNED PERIODIC ANNUAL PREMIUM: $20000
INITIAL SPECIFIED AMOUNT: $500000
DEATH BENEFIT OPTION: B
USING CURRENT SCHEDULE OF COST OF INSURANCE RATES
0% Hypothetical Gross 6% Hypothetical Gross 12% Hypothetical Gross
Annual Investment Return Annual Investment Return Annual Investment Return
(-1.59% Net) ( 4.41% Net) (10.41% Net)
----------------------------- -------------------------- --------------------------
Accumulated
End Of Premiums At Accumu- Cash Accumu- Cash Accumu- Cash
Policy 5% Interest lation Surrender Death lation Surrender Death lation Surrender Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 21000 17698 10983 517698 18814 12099 517698 19930 13215 519930
2 43050 34996 28281 534996 38335 31620 534996 41809 35094 541809
3 66202 51896 45181 551896 58590 51875 551896 65834 59119 565834
4 90512 68404 61689 568404 79610 72895 568404 92229 85514 592229
5 116038 84521 77806 584521 101426 94711 584521 121236 114521 621236
6 142840 100253 94210 600253 124070 118027 600253 153125 147081 653125
7 170982 115597 110225 615597 147571 142199 615597 188187 182815 688187
8 200531 130564 125864 630564 171971 167271 630564 226758 222057 726758
9 231557 145150 141121 645150 197300 193271 645150 269192 265163 769192
10 264135 159357 155999 659357 223592 220235 659357 315886 312529 815886
15 453149 224698 224698 724698 370863 370863 724698 630278 630278 1130278
20 694384 279670 279670 779670 547497 547497 779670 1139165 1139165 1639165
Ages
60 453149 224698 224698 724698 370863 370863 724698 630278 630278 1130278
65 694384 279670 279670 779670 547497 547497 779670 1139165 1139165 1639165
70 1002268 321188 321188 821188 769646 769646 821188 2003562 2003562 2503562
75 1395214 337185 337185 837185 1025850 1025850 837185 3426273 3426273 3926273
</TABLE>
1) Assumes an annual $20000 premium is paid at the beginning of each policy
year. Values would be different if premiums with a different frequency or in
different amounts.
2) Assumes that no policy loan has been made. Excessive loans or withdrawals may
cause this policy to lapse because of insufficient cash value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY AN OWNER, DEATH BENEFIT OPTION SELECTED,
PREVAILING INTEREST RATES AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH
VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE BY AVLIC OR THE FUNDS THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE
ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
60 ENCORE!
<PAGE>
<TABLE>
<CAPTION>
ILLUSTRATION OF POLICY VALUES
AMERITAS VARIABLE LIFE INSURANCE COMPANY
ENDOWMENT AT AGE 100
Male Issue Age: 45 Nontobacco Preferred Underwriting Class
PLANNED PERIODIC ANNUAL PREMIUM: $20000
INITIAL SPECIFIED AMOUNT: $500000
DEATH BENEFIT OPTION: B
USING MAXIMUM ALLOWABLE SCHEDULE OF COST OF INSURANCE RATES
0% Hypothetical Gross 6% Hypothetical Gross 12% Hypothetical Gross
Annual Investment Return Annual Investment Return Annual Investment Return
(-2.04% Net) ( 3.96% Net) ( 9.96% Net)
----------------------------- -------------------------- ---------------------------
Accumulated
End Of Premiums At Accumu- Cash Accumu- Cash Accumu- Cash
Policy 5% Interest lation Surrender Death lation Surrender Death lation Surrender Death
Year Per Year Value Value Benefit Value Value Benefit Value Value Benefit
---- -------- ----- ----- ------- ----- ----- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 21000 17614 10899 517614 18730 12015 518730 19847 13132 519847
2 43050 33991 27276 533991 37286 30571 537286 40717 34002 540717
3 66202 49891 43176 549891 56430 49715 556430 63515 56800 563515
4 90512 65314 58599 565314 76174 69459 576174 88420 81705 588420
5 116038 80249 73534 580249 96522 89807 596522 115624 108909 615624
6 142840 94698 88655 594698 117487 111444 617488 145343 139299 645342
7 170982 108636 103264 608636 139061 133689 639061 177791 172419 677791
8 200531 122038 117338 622038 161228 156528 661228 213204 208503 713204
9 231557 134887 130858 634887 183984 179955 683984 251846 247817 751846
10 264135 147148 143790 647148 207306 203949 707306 293991 290634 793992
15 453149 198864 198864 698864 331912 331912 831912 569354 569354 1069354
20 694384 231132 231132 731132 466728 466728 966728 993166 993166 1493166
Ages
60 453149 198864 198864 698864 331912 331912 831912 569354 569354 1069354
65 694384 231132 231132 731132 466728 466728 966728 993166 993166 1493166
70 1002268 235504 235504 735504 602030 602030 1102030 1642058 1642058 2142058
75 1395214 198788 198788 698788 719818 719818 1219818 2632615 2632615 3132615
</TABLE>
1) Assumes an annual $20000 premium is paid at the beginning of each policy
year. Values would be different if premiums with a different frequency or in
different amounts.
2) Assumes that no policy loan has been made. Excessive loans or withdrawals may
cause this policy to lapse because of insufficient cash value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE
INVESTMENT ALLOCATIONS MADE BY AN OWNER, DEATH BENEFIT OPTION SELECTED,
PREVAILING INTEREST RATES AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH
VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE BY AVLIC OR THE FUNDS THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE
ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
ENCORE! 61
