<PAGE>
HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
SEPARATE ACCOUNT TWO (DC-II)
TAX SHELTERED ANNUITY/INDIVIDUAL RETIREMENT ANNUITY
SUPPLEMENT DATED SEPTEMBER 30, 1998 TO THE PROSPECTUS DATED MAY 1, 1998
The Annual Fund Operating Expense table, the Example table and all accompanying
footnotes of the prospectus should be deleted and replaced with the following
language:
The following table shows annual operating expenses after waivers or
reimbursements for December 31, 1997:
ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
<TABLE>
<CAPTION>
TOTAL FUND
MANAGEMENT FEES OTHER EXPENSES OPERATING EXPENSES
--------------- --------------- --------------------------
<S> <C> <C> <C>
Hartford Bond Fund.......................................... 0.515% 0.020% 0.535%
Hartford Stock Fund......................................... 0.455% 0.020% 0.475%
Hartford Money Market Fund.................................. 0.450% 0.015% 0.465%
Hartford Advisers Fund...................................... 0.635% 0.020% 0.655%
Hartford Capital Appreciation Fund.......................... 0.645% 0.020% 0.665%
Hartford Mortgage Securities Fund........................... 0.450% 0.025% 0.475%
Hartford Index Fund......................................... 0.400% 0.015% 0.415%
Hartford International Opportunities Fund................... 0.705% 0.090% 0.795%
Hartford Dividend & Growth Fund............................. 0.685% 0.020% 0.705%
Calvert Social Balanced Portfolio (1)....................... 0.690% 0.120% 0.810%
American Century VP Advantage Fund.......................... 1.000% 0.000% 1.000%
American Century VP Capital Appreciation Fund............... 1.000% 0.000% 1.000%
AMS/Fidelity VIP Growth Fund (2)............................ 0.600% 0.090% 0.690%
AMS/Fidelity VIP Overseas Fund (2).......................... 0.750% 0.170% 0.920%
AMS/Fidelity VIP II Contrafund (2).......................... 0.600% 0.110% 0.710%
AMS/Fidelity VIP II Asset Manager (2)....................... 0.550% 0.100% 0.650%
</TABLE>
- ---------
(1) The figures above for the Calvert Social Balanced Portfolio reflect expenses
for fiscal year 1997, and have been restated to reflect an increase in
transfer agency expenses of 0.01% for the Portfolio expected to be incurred
in 1998. Management and Advisory Expenses includes a performance adjustment,
which depending on performance, could cause the fee to be as high as 0.85%
or as low as 0.55%. "Other Expenses" reflect an indirect fee. Net fund
operating expenses after reductions for fees paid indirectly (again,
restated) would be 0.78%.
(2) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, certain funds have entered into
arrangements with their custodian whereby credits realized, as a result of
uninvested cash balances were used to reduce custodian expenses. Including
these reductions, the total operating expenses presented in the table would
have been 0.67% for VIP Growth Portfolio, 0.90% for VIP Overseas Portfolio,
0.76% for VIP II Asset Manager Portfolio, and 0.68% for VIP II Contrafund
Portfolio.
<PAGE>
HARTFORD LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
EXAMPLE DC-II
<TABLE>
<CAPTION>
If you surrender your Contract If you annuitize your Contract If you do not surrender your
at the end of the applicable at the end of the applicable Contract, you would pay the
time period, you would pay the time period, you would pay the following expenses on a $1,000
following expenses on a $1,000 following expenses on a $1,000 investment, assuming a 5%
investment, assuming a 5% investment, assuming a 5% annual return on assets:
annual return on assets: annual return on the assets:
SUB-ACCOUNT 1 YR. 3 YRS. 5 YRS. 10 YRS. 1 YR. 3 YRS. 5 YRS. 10 YRS. 1 YR. 3 YRS. 5 YRS. 10 YRS.
------ ------- ------- -------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bond Fund.................... $ 71 $ 115 $ 161 $ 223 $ 18 $ 59 $ 102 $ 222 $ 19 $ 60 $ 103 $ 223
Stock Fund (1)............... 70 113 158 217 18 57 99 215 19 58 100 217
Money Market Fund............ 70 113 158 216 18 57 98 214 19 58 100 216
Advisers Fund (1)............ 72 118 167 236 20 63 108 235 21 64 110 236
Capital Appreciation Fund
(1)........................ 72 119 168 237 20 63 109 236 21 64 110 237
Mortgage Securities Fund..... 70 113 158 217 18 57 99 215 19 58 100 217
Index Fund (2)............... 70 111 155 210 17 55 96 209 18 56 97 210
International Opportunities
Fund....................... 73 122 174 251 21 67 116 249 22 68 117 251
Dividend & Growth Fund....... 73 120 170 241 20 64 111 240 21 65 112 241
Calvert Social Balanced
Portfolio.................. 74 123 175 252 21 67 116 251 22 69 118 252
American Century VP Advantage
Fund....................... 75 128 184 272 23 73 126 271 24 74 127 272
American Century VP Capital
Appreciation Fund.......... 75 128 184 272 23 73 126 271 24 74 127 272
AMS/Fidelity VIP Growth
Fund....................... 72 119 169 240 20 64 110 238 21 65 111 240
AMS/Fidelity VIP Overseas
Fund....................... 75 126 180 264 22 71 122 262 23 72 123 264
AMS/Fidelity VIP II
Contrafund................. 73 120 170 242 20 64 111 240 21 66 112 242
AMS/Fidelity VIP II Asset
Manager.................... 72 118 167 236 19 62 108 234 21 64 109 236
</TABLE>
- ---------
(1) Hartford voluntarily reduces the charge for administrative undertakings with
respect to assets allocated to certain of the sub-accounts in DC-II. The
reduced total charge for mortality, expense risk and administrative
undertakings in these sub-accounts is as follows: Stock Fund, 1.24%;
Advisers Fund, 1.20%; Capital Appreciation Fund, 1.21%.
(2) With respect to the Index Fund Sub-Account, the combined total of the
applicable charge for mortality, expense risk and administrative
undertakings and expenses of the underlying Fund are voluntarily limited to
1.25%.
The purpose of this table is to assist the Contract Owner in understanding
various costs and expenses that a Contract Owner will bear directly or
indirectly. This table reflects expenses of the Separate Account and underlying
Funds. Premium taxes may also be applicable.
This EXAMPLE should not be considered a representation of past or future
expenses and actual expenses may be greater or less than those shown.
Under the section entitled "How are the contracts sold?", delete the first
sentence of the second paragraph and replace with the following language:
HSD is an affiliate of Hartford. Hartford's parent company indirectly owns
100% of HSD.
HV-2282
33-59541
