Prospectus Supplement Dated January 29, 1996 for
Lincoln National Variable Annuity Account E
(The American Legacy )
This document is a Supplement to the Prospectus dated April 1, 1995.
PAGE ONE (1), PARAGRAPH SIX (4); PAGE FOUR (4) UNDER THE TEXT LABELED,
"WHAT ARE MY INVESTMENT CHOICES"; AND PAGE EIGHT (8) UNDER THE TEXT
LABELED, "DESCRIPTION OF THE SERIES", OF THE CURRENT PROSPECTUS: These
sections are hereby amended to add the bond Fund to the listing of
portfolios within the American Variable Insurance Series (AVIS).
As a result, the number of investment options (and
subaccounts) within AVIS has increased from seven to eight.
TO BE INSERTED ON PAGE THREE (3) OF THE PROSPECTUS AFTER THE TEXT
LABELED, "Variable Account E Annual Expenses":
<TABLE>
<CAPTION>
<C> <S>
BA
Mortality and Expense Risk Fees 1.25%
TOTAL ACCOUNT E ANNUAL EXPENSES 1.25%
BA = Bond Sub-Account
</TABLE>
TO BE INSERTED ON PAGE THREE (3) OF THE CURRENT PROSPECTUS AFTER THE
TEXT LABELED, "Annual Expenses of the Funds":
<TABLE>
<CAPTION>
<C> <S>
BF*
Management Fees 0.60%
Other Expenses 0.05
TOTAL FUND ANNUAL EXPENSES 0.65%
BF = Bond Fund
</TABLE>
* These expenses are estimated amounts for the current fiscal year
ended November 30, 1995.
TO BE INSERTED ON PAGE FOUR (4) OF THE CURRENT PROSPECTUS AFTER THE
TEXT LABELED, "Examples (reflecting expenses of both the Variable Account
and of the Funds)":
A. If you surrender your contract at the end of the applicable time
period, you would pay the following expenses (1) on a $1,000
investment, assuming a 5% annual return (2) on assets:
<TABLE>
<CAPTION>
<C> <S> <S>
1 Year* 3 Years*
Bond Fund $ 79 $110
</TABLE>
B. If you do not surrender your contract (or if you annuitize)
at the end of the applicable time period, you would pay the
following expenses (1) on a $1,000
investment, assuming a 5% annual return (2) on assets:
<TABLE>
<CAPTION>
<C> <S> <S>
1 Year* 3 Years*
Bond Fund $ 19 $ 60
* These expenses are estimated amounts for the fiscal year ended November
30, 1995.
</TABLE>
TO BE INSERTED ON PAGE EIGHT (8) OF THE CURRENT PROSPECTUS AFTER THE
PARAGRAPH WHICH BEGINS WITH "High-Yield Bond Fund":
The Bond Fund seeks a high level of current income as in consistent with
the preservation of capital by investing in a broad variety of fixed
income securities including: marketable corporate debt securities,
loan participations, U.S. Government Securities, mortgage-related
securities, other asset-backed securities and cash or money market
instruments.
Please note: As of the date of this Prospectus Supplement, this fund will
not be available in Massachusetts, Montana, South Carolina, and
Vermont until necessary regulatory approvals are obtained in those states.
Please consult your investment dealer for current information about
the Bond Fund's availability.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FUTURE
REFERENCE.
