V1 *P2
Supplement Dated January 15, 1999
to the Prospectus Dated May 1, 1998
of
FRANKLIN(R) VALUEMARK(R) LIFE
Single Premium Variable Life Insurance
Allianz Life Variable Account A
I. YEAR 2000 Allianz Life has initiated programs to ensure that all of the
computer systems utilized to provide services and administer policies will
function properly in the year 2000. An assessment of the total expected costs
specifically related to the year 2000 conversion has been completed; the total
amounts to be expensed over the next two years are not expected to have a
significant effect on Allianz Life's financial position or results of
operations. Allianz Life believes it has taken steps that are reasonably
designed to address the potential failure of computer systems used by its
service providers and to ensure its year 2000 program is completed on a timely
basis.
II. The following changes are made to the section entitled "Trust Annual
Expenses":
a) The following chart restates information about certain Portfolios, as
indicated below:
Management Total
and Portfolio Other Annual
Portfolio Administration Fees Expenses Expenses
- --------------------------------------------------------------------------------
Mutual Discovery Securities Fund ... .95%* .11% 1.06%
Mutual Shares Securities Fund ......... .75%* .05% .80%
Templeton Global Asset Allocation Fund .80%* .14% .94%
Templeton International Smaller
Companies Fund ............... 1.00%* .06% 1.06%
Zero Coupon Fund - 20005 .............. .60% .03% .63%
Zero Coupon Fund - 20055 .............. .62% .03% .65%
Zero Coupon Fund - 20105 ............. .62% .03% .65%
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
b) The following footnotes are restated as follows:
4For the year ended December 31, 1997, Franklin Advisers, Inc. ("Advisers")
agreed in advance to waive a portion of its management fees and, if
necessary, to pay certain expenses of the Fund. With this reduction,
management fees and total annual expenses, including management and portfolio
administration fees, paid by the Portfolio represented .43% and .45% of the
Portfolio's average net assets, respectively. The voluntary expense reduction
was discontinued by Advisers effective January 1, 1999.
5For the year ended December 31, 1997, Advisers agreed in advance to waive a
portion of its management fees and, if necessary, to pay certain expenses of
the Fund. With this reduction, management fees and total annual expenses,
including management and portfolio administration fees, represented .37% and
.40% of each Portfolio's average net assets, respectively. The voluntary
expense reduction was discontinued by Advisers effective January 1, 1999.
III. The following replaces the first sentence under "Franklin Valuemark Funds":
Each of the Policy Sub-Accounts of the Variable Account is invested solely in
Class 1 shares of one of the Portfolios of Franklin Valuemark Funds ("Trust").
IV. The following Illustrations of Policy Values replace the illustrations on
pages 80-85, "Appendix A" to the Prospectus:
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: Jane Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life Insurance
Female Non-Smoker Standard Issue
Initial Face Amount: $448,956 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summary of end of year values assuming a 0.00% gross rate of return.
This Illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 97,547 91,247 448,956
2 0 110,250 0 95,098 89,498 448,956
3 0 115,763 0 92,648 87,748 448,956
4 0 121,551 0 90,194 85,994 448,956
5 0 127,628 0 87,733 84,233 448,956
10 0 162,889 0 75,156 75,156 448,956
15 0 207,893 0 65,327 65,327 448,956
20 0 265,330 0 53,823 53,823 448,956
25 0 338,635 0 39,632 39,632 448,956
30 0 432,194 0 20,748 20,748 448,956
Summary of end of year values assuming a 0.00% gross rate of return.
This Illustration is based on GUARANTEED mortality costs
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 97,413 91,113 448,956
2 0 110,250 0 94,822 89,222 448,956
3 0 115,763 0 92,220 87,320 448,956
4 0 121,551 0 89,603 85,403 448,956
5 0 127,628 0 86,968 83,468 448,956
10 0 162,889 0 73,291 73,291 448,956
15 0 207,893 0 61,910 61,910 448,956
20 0 265,330 0 48,117 48,117 448,956
25 0 338,635 0 30,492 30,492 448,956
30 0 432,194 0 6,178 6,178 448,956
</TABLE>
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: Jane Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life
Female Non-Smoker Standard Issue
Initial Face Amount: $448,956 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summary of end of year values assuming a 6.00% gross rate of return.
This Illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 103,453 97,153 453,463
2 0 110,250 0 107,036 101,436 457,819
3 0 115,763 0 110,749 105,849 462,039
4 0 121,551 0 114,597 110,397 466,133
5 0 127,628 0 118,583 115,083 470,113
10 0 162,889 0 140,681 140,681 488,648
15 0 207,893 0 170,785 170,785 506,428
20 0 265,330 0 206,526 206,526 525,409
25 0 338,635 0 248,768 248,768 545,660
30 0 432,194 0 298,355 298,355 567,303
Summary of end of year values assuming a 6.00% gross rate of return.
This Illustration is based on GUARANTEED mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 103,315 97,015 452,819
2 0 110,250 0 106,745 101,145 456,505
3 0 115,763 0 110,289 105,389 460,027
4 0 121,551 0 113,948 109,748 463,392
5 0 127,628 0 117,726 114,226 466,612
10 0 162,889 0 138,419 138,419 480,791
15 0 207,893 0 166,396 166,396 493,413
20 0 265,330 0 198,992 198,992 506,244
25 0 338,635 0 236,732 236,732 519,259
30 0 432,194 0 280,005 280,005 532,412
</TABLE>
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: Jane Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life
Female Non-Smoker Standard Issue
Initial Face Amount: $448,956 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summary of end of year values assuming a 12.00% gross rate of return.
This illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 109,356 103,056 481,014
2 0 110,250 0 119,636 114,036 514,687
3 0 115,763 0 130,927 126,027 550,114
4 0 121,551 0 143,325 139,125 587,431
5 0 127,628 0 156,938 153,438 626,792
10 0 162,889 0 247,624 247,624 860,107
15 0 207,893 0 396,118 396,118 1,174,608
20 0 265,330 0 631,286 631,286 1,606,018
25 0 338,635 0 1,002,296 1,002,296 2,198,486
30 0 432,194 0 1,584,838 1,584,838 3,013,475
Summary of end of year values assuming a 12.00% gross rate of return.
This illustration is based on GUARANTEED mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 448,956
1 0 105,000 0 109,212 102,912 480,344
2 0 110,250 0 119,316 113,716 513,242
3 0 115,763 0 130,390 125,490 547,771
4 0 121,551 0 142,525 138,325 584,054
5 0 127,628 0 155,821 152,321 622,229
10 0 162,889 0 243,728 243,728 846,574
15 0 207,893 0 386,149 386,149 1,145,047
20 0 265,330 0 608,737 608,737 1,548,652
25 0 338,635 0 954,833 954,833 2,094,379
30 0 432,194 0 1,489,530 1,489,530 2,832,253
</TABLE>
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: John Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life
Male Non-Smoker Standard Issue
Initial Face Amount: $400,205 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summary of end of year values assuming a 0.00% gross rate of return.
This illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 97,551 91,251 400,205
2 0 110,250 0 95,113 89,513 400,205
3 0 115,763 0 92,677 87,777 400,205
4 0 121,551 0 90,241 86,041 400,205
5 0 127,628 0 87,802 84,302 400,205
10 0 162,889 0 75,393 75,393 400,205
15 0 207,893 0 65,564 65,564 400,205
20 0 265,330 0 53,541 53,541 400,205
25 0 338,635 0 37,043 37,043 400,205
30 0 432,194 0 12,100 12,100 400,205
Summary of end of year values assuming a 0.00% gross rate of return.
This illustration is based on GUARANTEED mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 97,419 91,119 400,205
2 0 110,250 0 94,841 89,241 400,205
3 0 115,763 0 92,258 87,358 400,205
4 0 121,551 0 89,665 85,465 400,205
5 0 127,628 0 87,060 83,560 400,205
10 0 162,889 0 73,606 73,606 400,205
15 0 207,893 0 62,220 62,220 400,205
20 0 265,330 0 47,710 47,710 400,205
25 0 338,635 0 26,886 26,886 400,205
30 0 432,194 0 0 0 400,205
</TABLE>
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: John Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life
Male Non-Smoker Standard Issue
Initial Face Amount: $400,205 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summaryof end of year values assuming a 6.00% gross rate of return.
This illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 103,458 97,158 404,213
2 0 110,250 0 107,053 101,453 408,080
3 0 115,763 0 110,784 105,884 411,819
4 0 121,551 0 114,656 110,456 415,440
5 0 127,628 0 118,674 115,174 418,952
10 0 162,889 0 141,053 141,053 435,208
15 0 207,893 0 171,455 171,455 450,842
20 0 265,330 0 207,320 207,320 467,701
25 0 338,635 0 248,719 248,719 486,232
30 0 432,194 0 295,522 295,522 506,832
Summary of end of year values assuming a 6.00% gross rate of return.
This illustration is based on GUARANTEED mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 103,321 97,021 403,645
2 0 110,250 0 106,767 101,167 406,931
3 0 115,763 0 110,334 105,434 410,070
4 0 121,551 0 114,026 109,826 413,071
5 0 127,628 0 117,846 114,346 415,941
10 0 162,889 0 138,907 138,907 428,588
15 0 207,893 0 167,268 167,268 439,830
20 0 265,330 0 200,014 200,014 451,218
25 0 338,635 0 236,670 236,670 462,675
30 0 432,194 0 276,462 276,462 474,144
</TABLE>
<TABLE>
<CAPTION>
Allianz Life Insurance Company Designed For: John Doe
Minneapolis Minnesota Prepared By: Any Representative
Franklin Valuemark
Single Premium Variable Life
Male Non-Smoker Standard Issue
Initial Face Amount: $400,205 Single Premium: $100,000
Issue Age: 35 State: MN
- --------------------------------------------------------------------------------------------------------------------------
Summary of end of year values assuming a 12.00% gross rate of return.
This illustration is based on CURRENT mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 109,361 103,061 428,773
2 0 110,250 0 119,655 114,055 458,771
3 0 115,763 0 130,968 126,068 490,321
4 0 121,551 0 143,399 139,199 523,547
5 0 127,628 0 157,059 153,559 558,578
10 0 162,889 0 248,274 248,274 766,031
15 0 207,893 0 397,670 397,670 1,045,673
20 0 265,330 0 633,746 633,746 1,429,692
25 0 338,635 0 1,002,349 1,002,349 1,959,532
30 0 432,194 0 1,570,848 1,570,848 2,694,067
Summary of end of year values assuming a 12.00% gross rate of return.
This illustration is based on GUARANTEED mortality costs.
Premium Net Cash Net
Policy Accumulation Policy Account Surrender Death
Year Payment at 5.00% Loan Value Value Benefit
- --------------------------------------------------------------------------------------------------------------------------
Current 100,000 100,000 0 100,000 93,000 400,205
1 0 105,000 0 109,219 102,919 428,183
2 0 110,250 0 119,341 113,741 457,508
3 0 115,763 0 130,445 125,545 488,286
4 0 121,551 0 142,624 138,424 520,630
5 0 127,628 0 155,981 152,481 554,657
10 0 162,889 0 244,581 244,581 754,637
15 0 207,893 0 388,168 388,168 1,020,688
20 0 265,330 0 611,902 611,902 1,380,415
25 0 338,635 0 954,898 954,898 1,866,769
30 0 432,194 0 1,472,008 1,472,008 2,524,552
IT IS EMPHASIZED THAT THE ASSUMED INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE 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 AND RATES OF RETURN FOR THE FUND
PORTFOLIOS. THE DEATH BENEFIT, ACCOUNT VALUE AND CASH SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE
ACTUAL GROSS RATES OF RETURN AVERAGED THE RATES SHOWN ABOVE OVER A PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE BY THE COMPANY OR THE FUND THAT THIS ASSUMED INVESTMENT RATES OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
</TABLE>
