SAFECO LIFE INSURANCE COMPANY
SAFECO Deferred Variable Annuity Account
Supplement to Prospectus
Supplement dated May 1, 2000
to Prospectus dated May 1, 1998
As a result of the substitution of the SAFECO Resource Series Trust ("RST")
portfolios for the Composite Deferred Series, Inc. portfolios, the Mortality and
Expense Risk Charge associated with those RST portfolios has been reduced. The
disclosure set forth below replaces the information under the sub-heading
"Charges and Deductions" found on page 2 of the prospectus and in any prior
supplements.
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<S> <C>
Variable Account Annual Expenses
(as a % of average Contract Value)
Mortality and Expense Risk Charge............1.20%*
Administrative Charge........................None
Total Variable Account Annual Expenses.......1.20% (before reduction)
*Reduction of Mortality and Expense Risk Charge:
M&E Reduction Net M&E
RST Growth Opportunities 0.13% 1.07%
RST Northwest Portfolio 0.11% 1.09%
RST Bond Portfolio 0.13% 1.07%
Fund Annual Expenses
(as a % of average account value)4
Advisory 12b-1 Other Total
Fees Fees Expenses Expenses
SAFECO Resource Series Trust (a)
RST Equity Portfolio 0.74% None 0.02% 0.76%
RST Growth Opportunities Portfolio 0.74% None 0.04% 0.78%
RST Northwest Portfolio 0.74% None 0.10% 0.84%
RST Bond Portfolio 0.74% None 0.17% 0.91%
RST Small Company Value Portfolio 0.85% None 0.10% 0.95%
Scudder Variable Life Investment Fund (a)
Scudder VLIF Capital Growth Portfolio 0.462% 0.25% 0.03% 0.74%
Scudder VLIF International Portfolio 0.852% 0.25% 0.18% 1.28%
Scudder VLIF Money Market Portfolio 0.370% None 0.06% 0.43%
(a) In some cases the fund advisers or other parties agree to waive or
reimburse all or a portion of the portfolio expenses. For the RST Small
Company Value Portfolio where such an agreement exists, the expenses absent
waiver or reimbursement would have been 1.22%. See the portfolio
prospectuses for more detailed information. We have Fund Participation
Agreements with each of the non-SAFECO fund managers that describe the
administrative practices and responsibilities of the parties. To the extent
it performs services for the Fund, SAFECO Life may receive an asset based
administrative fee from the Fund's adviser or distributor.
The above portfolio expenses were provided by the Funds. We have not
independently verified the accuracy of the information.
</TABLE>
The purpose of this Table is to assist the Owner in understanding the various
costs and expenses that an Owner will bear directly and indirectly. The Table
reflects historical charges and expenses of each portfolio for the year ended
December 31, 1999. Charges and expenses may be higher or lower in future years.
Additional deductions may be made for taxes. For more information on the charges
described in this Table, see "Charges and Deductions", pages 7 and 8, in the
Prospectus and the portfolio Prospectuses which accompany this supplement.
<PAGE>
Changes to the portfolio expenses affect the results of the expense Examples in
your Prospectus and any previous supplements. Although we have chosen not to
update the Examples here, they still generally show how expenses and charges
affect your Contract Value.
The following information replaces section (a) under the sub-heading
"Contract Maintenance Charge" in "Charges and Other Deductions" found on page 7
in the prospectus.
(a) If the Contract contains one or more Sub-Accounts of the Variable Account,
the Contract Maintenance Charge will be deducted from all active
Sub-Accounts in proportion to the value of the Sub-Account on the policy
anniversary date.
The disclosure set forth below is added to the information under the
sub-heading "The Variable Account" found on page 5 in the prospectus.
We reserve the right to combine the Variable Account with one or more of our
other separate accounts or to deregister the Variable Account under the 1940 Act
if such registration is no longer required.
All references to the address for SAFECO Life Insurance Company and WM Life
Insurance Company are hereby changed to:
SAFECO Life Insurance Company
5069 154th Place N.E.
Redmond, WA 98052
