<PAGE>
UNITED INVESTORS LIFE INSURANCE COMPANY
ADVANTAGE I FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
Supplement dated August 31, 1998 to Prospectus dated May 1, 1998
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION IN
THE ADVANTAGE I PROSPECTUS:
The name of TMK/United Funds, Inc. has been changed to "Target/United Funds,
Inc." Accordingly, the above Prospectus is amended to (1) delete "TMK/United
Funds, Inc." and (2) substitute "Target/United Funds, Inc."
Target/United Funds, Inc. has added a "Rule 12b-1" service fee. Accordingly,
the section of the above Prospectus entitled "Fund Management and Fees" is
amended to add the following paragraph after the second paragraph:
Effective August 31, 1998, Target/United Funds, Inc. has adopted a
Service Plan (the "Plan") pursuant to Rule 12b-1 under the Investment
Company Act of 1940. Under the Plan, each Portfolio may pay monthly a
service fee to Waddell & Reed, Inc., the principal underwriter of the Fund
and the Policy, in an amount not to exceed 0.25% of the Portfolio's average
annual net assets. The fee is paid to reimburse Waddell & Reed, Inc. to
finance the provision of personal services to Policyowners and maintenance
of Policyowner accounts.
APPENDIX A of the above Prospectus entitled "ILLUSTRATION OF DEATH BENEFITS AND
POLICY VALUES" is amended to add the following sentence to the third paragraph:
The values shown also take into account the Service Fee (at an annual rate
of 0.25%) under the Service Plan adopted August 31,1998 pursuant to Rule
12b-1 under the Investment Company Act of 1940.
APPENDIX A of the above Prospectus entitled "ILLUSTRATION OF DEATH BENEFITS AND
POLICY VALUES" is amended to (1) delete the fourth paragraph, and (2) substitute
the following paragraph in its place:
Taking into account the mortality and expense risk charge of 0.60% and the
charges for investment management fees, "12b-1" service fees, and other
expenses from the Fund, the illustrated gross annual investment rates of
return of 0%, 4%, 8%, and 12% correspond to approximate net annual rates of
-1.62%, 2.38%, 6.38%, and 10.38% respectively.
APPENDIX A of the above Prospectus entitled "ILLUSTRATION OF DEATH BENEFITS AND
POLICY VALUES" is amended to (1) delete the hypothetical illustrations, and (2)
substitute the attached hypothetical illustrations in their place.
The Prospectus dated May 1, 1998 for TMK/United Funds, Inc. has been amended.
Please refer to the Prospectus Supplement dated August 31, 1998 for TMK/United
Funds, Inc.
This Supplement is dated August 31, 1998.
Please keep this Supplement with your Prospectus dated May 1, 1998
for the Advantage I Flexible Premium Variable Life Insurance Policy.
<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
FEMALE ISSUE AGE 35 STANDARD RISK CLASS
$10,000 SINGLE PREMIUM PAYMENT $62,365 MINIMUM DEATH BENEFIT
MAXIMUM COST OF INSURANCE AND ADMINISTRATIVE CHARGES (1)
<TABLE>
<CAPTION>
PREMIUM
END OF PAYMENTS ASSUMING HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF:
POLICY PLUS INTEREST -----------------------------------------------------
YEAR AT 5% PER YEAR 0% 4% 8% 12%
---------- -------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
DEATH BENEFIT (2)
1 $62,365 $62,365 $62,365 $ 62,365
2 62,365 62,365 62,365 62,365
3 62,365 62,365 62,365 62,365
4 62,365 62,365 62,365 62,365
5 62,365 62,365 62,365 62,365
10 62,365 62,365 62,365 62,365
20 62,365 62,365 62,365 89,575
30 (3) 62,365 62,365 179,934
Age 65 (3) 62,365 62,365 179,934
POLICY VALUES (2)
1 $10,500 $ 9,838 $10,238 $10,638 $ 11,038
2 11,025 9,426 10,220 11,045 11,903
3 11,576 9,015 10,195 11,473 12,852
4 12,155 8,602 10,162 11,922 13,896
5 12,763 8,188 10,121 12,392 15,041
10 16,289 6,039 9,730 15,081 22,702
20 26,533 2,103 8,857 24,304 57,054
30 43,219 (3) 5,106 40,505 147,487
Age 65 43,219 (3) 5,106 40,505 147,487
SURRENDER VALUES (2)
1 $ 9,038 $ 9,438 $ 9,838 $ 10,238
2 8,726 9,520 10,345 11,203
3 8,415 9,595 10,873 12,252
4 8,102 9,662 11,422 13,396
5 7,788 9,721 11,992 14,641
10 6,039 9,730 15,081 22,702
20 2,103 8,857 24,304 57,054
30 (3) 5,106 40,505 147,487
Age 65 (3) 5,106 40,505 147,487
</TABLE>
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(1) Current and maximum charges are the same for female standard risks.
(2) Assumes no Policy loans have been made.
(3) In the absence of an additional premium payment, the Policy would have
lapsed.
It is emphasized that 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 a Policyowner and
different rates of return of the Fund Portfolios. The Death Benefit and
Surrender Value for a Policy would be different from those shown if actual rates
of return averaged 0%, 4%, 8% and 12% over a period of years, but also
fluctuated above or below those averages for individual Policy Years. No
representations can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
A-2
<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
MALE ISSUE AGE 55 PREFERRED RISK CLASS
$50,000 SINGLE PREMIUM PAYMENT $126,599 MINIMUM DEATH BENEFIT
CURRENT COST OF INSURANCE AND ADMINISTRATIVE CHARGES
<TABLE>
<CAPTION>
PREMIUM
END OF PAYMENTS ASSUMING HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF:
POLICY PLUS INTEREST -----------------------------------------------------
YEAR AT 5% PER YEAR 0% 4% 8% 12%
---------- -------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
DEATH BENEFIT (1)
1 $126,599 $126,599 $126,599 $126,599
2 126,599 126,599 126,599 126,599
3 126,599 126,599 126,599 126,599
4 126,599 126,599 126,599 126,599
5 126,599 126,599 126,599 126,599
10 126,599 126,599 126,599 143,779
20 126,599 126,599 143,988 325,142
30 (2) (2) 254,371 832,329
Age 65 126,599 126,599 126,599 143,779
POLICY VALUES (1)
1 $52,500 $ 49,190 $ 51,190 $ 53,190 $ 55,190
2 55,125 47,275 51,258 55,402 59,706
3 57,881 45,333 51,282 57,724 64,678
4 60,775 43,360 51,259 60,166 70,163
5 63,814 41,351 51,185 62,737 76,220
10 81,445 30,446 49,771 77,859 117,851
20 132,665 3,097 42,501 134,568 303,871
30 216,097 (2) (2) 242,258 792,694
Age 65 81,445 30,446 49,771 77,859 117,851
SURRENDER VALUES (1)
1 $ 45,190 $ 47,190 $ 49,190 $ 51,190
2 43,775 47,758 51,902 56,206
3 42,333 48,282 54,724 61,678
4 40,860 48,759 57,666 67,663
5 39,351 49,185 60,737 74,220
10 30,446 49,771 77,859 117,851
20 3,097 42,501 134,568 303,871
30 (2) (2) 242,258 792,694
Age 65 30,446 49,771 77,859 117,851
</TABLE>
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(1) Assumes no Policy loans have been made.
(2) In the absence of an additional premium payment, the Policy would have
lapsed.
It is emphasized that 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 a Policyowner and
different rates of return of the Fund Portfolios. The Death Benefit and
Surrender Value for a Policy would be different from those shown if actual rates
of return averaged 0%, 4%, 8% and 12% over a period of years, but also
fluctuated above or below those averages for individual Policy Years. No
representations can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
A-3
<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
MALE ISSUE AGE 55 PREFERRED RISK CLASS
$50,000 SINGLE PREMIUM PAYMENT $129,599 MINIMUM DEATH BENEFIT
MAXIMUM COST OF INSURANCE AND ADMINISTRATIVE CHARGES
<TABLE>
<CAPTION>
PREMIUM
END OF PAYMENTS ASSUMING HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF:
POLICY PLUS INTEREST -----------------------------------------------------
YEAR AT 5% PER YEAR 0% 4% 8% 12%
---------- -------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
DEATH BENEFIT (1)
1 $126,599 $126,599 $126,599 $126,599
2 126,599 126,599 126,599 126,599
3 126,599 126,599 126,599 126,599
4 126,599 126,599 126,599 126,599
5 126,599 126,599 126,599 126,599
10 126,599 126,599 126,599 138,181
20 (2) 126,599 126,599 305,676
30 (2) (2) 214,562 768,115
Age 65 126,599 126,599 126,599 138,181
POLICY VALUES (1)
1 $52,500 $ 49,190 $ 51,190 $ 53,190 $ 55,190
2 55,125 46,956 50,935 55,074 59,376
3 57,881 44,658 50,594 57,025 63,971
4 60,775 42,288 50,160 59,047 69,031
5 63,814 39,837 49,625 61,146 74,615
10 81,445 25,771 44,873 72,936 113,264
20 132,665 (2) 18,600 115,837 285,679
30 216,097 (2) (2) 204,345 731,538
Age 65 81,445 25,771 44,873 72,936 113,264
SURRENDER VALUES (1)
1 $ 45,190 $ 47,190 $ 49,190 $ 51,190
2 43,456 47,435 51,574 55,876
3 41,658 47,594 54,025 60,971
4 39,788 47,660 56,547 66,531
5 37,837 47,625 59,146 72,615
10 25,771 44,873 72,936 113,264
20 (2) 18,600 115,837 285,679
30 (2) (2) 204,345 731,538
Age 65 25,771 44,873 72,936 113,264
</TABLE>
- ----------
(1) Assumes no Policy loans have been made.
(2) In the absence of an additional premium payment, the Policy would have
lapsed.
It is emphasized that 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 a Policyowner and
different rates of return of the Fund Portfolios. The Death Benefit and
Surrender Value for a Policy would be different from those shown if actual rates
of return averaged 0%, 4%, 8% and 12% over a period of years, but also
fluctuated above or below those averages for individual Policy Years. No
representations can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
A-4
