THE LIFE INSURANCE COMPANY OF VIRGINIA
LIFE OF VIRGINIA SEPARATE ACCOUNT III
P1097 1/87
SUPPLEMENT DATED OCTOBER 12, 1998
TO
PROSPECTUS DATED MAY 1, 1998
As of the date of this supplement we are making the following changes to your
prospectus. It is important that you keep this supplement with your prospectus
for future reference.
Under GE Investments Funds, Inc., S&P 500 Index Fund, add the following
sentence:
This Fund is subadvised by State Street Global Advisors.
Under GE Investments Funds, Inc., Real Estate Securities Fund, add the following
sentence:
This Fund is subadvised by Seneca Capital Management, L.L.C.
Under GE Investments Funds, Inc., Global Income Fund, add the following
sentence:
- -
This Fund is subadvised by GE Investments (US) Limited.
Under GE Investments Funds, Inc., Value Equity Fund, add the following sentence:
This Fund is subadvised by NWQ Investment Management Company.
Effective October 12, 1998, we will be adding three additional Investment
Subdivisions in which you may invest. These Investment Subdivisions are Salomon
Brothers Variable Investors Fund, Salomon Brothers Variable Total Return Fund
and Salomon Brothers Variable Strategic Bond Fund of the Salomon Brothers
Variable Series Funds.
Insert the following as the last entry to the FUND EXPENSES section.
The fees and expenses of these Investment Subdivisions (as a percentage of
net assets) are estimates as they were not in existence as of December 31,
1997. These estimates appear below:
Management Fees Other Expenses
(after fee waiver (after reimbursement- Total Annual
Fund as applicable) as applicable) Expenses
SALOMON BROTHERS VARIABLE SERIES FUNDS
Investors Fund 0.70% 0.30% 1.00%
Total Return Fund 0.80% 0.20% 1.00%
Strategic Bond Fund 0.75% 0.25% 1.00%
Delete the second paragraph following FUND CHARGES and insert the following:
The expense information regarding the Funds was provided by those Funds. The
Variable Insurance Products Fund, Variable Insurance Products Fund II,
Variable Insurance Products Fund III, Oppenheimer Variable Account Funds,
Janus Aspen Series, Federated Insurance Series, The Alger American Fund,
PBHG Insurance Series Fund, Inc., Goldman Sachs Variable Insurance Trust,
Salomon Brothers Variable Series Funds and their investment advisers are not
affiliated with the Company. While the Company has no reason to doubt the
accuracy of these figures provided by these non-affiliated Funds, the
Company has not independently verified such information. The annual expenses
listed for all the Funds are net of certain reimbursements by the Funds'
investment advisers except for Variable Insurance Products Fund, Variable
Insurance Products Fund II and Variable Insurance Products Fund III. The
Company cannot guarantee that the reimbursements will continue.
Insert the following prior to the paragraph regarding OTHER POLICIES:
Absent certain fee waivers or reimbursements, the total annual expenses of
the portfolios of Salomon Brothers Variable Series Funds would have been
2.61% for Investors Fund, 2.71% for Total Return Fund and 2.66% for
Strategic Bond Fund. The Other Expenses listed for these Funds are estimates
provided by the Fund as these portfolios were recently organized and have no
operating history, and actual expenses may be greater or less than those
shown.
Insert the following after information regarding Goldman Sachs Variable
Insurance Trust in THE FUNDS section :
SALOMON BROTHERS VARIABLE SERIES FUNDS, INC.
Salomon Brothers Variable Series Funds, Inc. has three portfolios that
are available under this Policy: Investors Fund, Total Return Fund and
Strategic Bond Fund. These funds are not available in California at
this time. Additionally, these funds may not be available in all markets.
INVESTORS FUND'S primary objective is long-term growth of capital. Current
income is a secondary objective. The Fund seeks to achieve its objectives
primarily through investments in common stocks of well-known companies.
TOTAL RETURN FUND seeks to obtain above-average income. As a secondary
objective, the Fund seeks to take advantage of opportunities for growth of
capital and income and seeks to achieve its objectives primarily through
investments in a broad variety of securities, including equity securities,
fixed-income securities and short-term obligations. In addition, up to 20%
of the Fund's net assets may be invested in lower-rated fixed income
securities commonly known as junk bonds.
STRATEGIC BOND FUND'S primary objective is to seek a high level of current
income. As a secondary objective, the Fund will seek capital appreciation.
The Fund will seek to achieve its objectives by investing in a globally
diverse portfolio of fixed-income investments, including lower-rated fixed
income securities commonly known as junk bonds.
Salomon Brothers Asset Management, Inc. serves as investment adviser
to Salomon Brothers Variable Series Funds.
Delete the two paragraphs before "Resolving Material Conflicts," and substitute
the following.
The investment objectives and policies of certain Funds are similar to the
investment objectives and policies of other portfolios that may be managed
by the same investment adviser or manager. The investment results of the
Funds, however, may be higher or lower than the results of such other
portfolios. There can be no assurance, and no representation is made, that
the investment results of any of the Funds will be comparable to the
investment results of any other portfolio, even if the other portfolio has
the same investment adviser or manager, or if the other portfolio has a
similar name.
The Company currently is compensated by an affiliate(s) of each of the Funds
based upon an annual percentage of the average assets held in the Fund by
the Company. These percentage amounts, which vary by Fund, are intended to
reflect administrative and other services provided by the Company to the
Fund and/or affiliate(s).
More detailed information concerning the investment objectives and policies
of the Funds and their investment advisory services and charges can be found
in the current prospectuses or profiles for the Funds which accompany or
precede this Prospectus and in the Funds' current statements of additional
information. A current prospectus or profile for each Fund can be obtained
by writing or calling the Company at its Home Office. The prospectus or
profile for each Fund should be read carefully before any decision is made
concerning the allocation of Premium Payments or transfers among the
Investment Subdivisions
Delete the second paragraph under RESOLVING MATERIAL CONFLICTS and replace with
the following:
In addition, Janus Aspen Series, GE Investments Funds, The Alger American
Fund, Goldman Sachs Variable Insurance Trust and Salomon Brothers Variable
Series Funds may sell shares to certain retirement plans. As a result, there
is a possibility that a material conflict may arise between the interests of
Owners generally or certain classes of Owners, and such retirement plans or
participants in such retirement plans.
For more information regarding these funds, see the prospectus for the Fund.
The Life Insurance Company of Virginia
6610 West Broad Street
Richmond, VA 23230
