VAN ECK WORLDWIDE INSURANCE TRUST, 497, 1996-09-18

VAN ECK WORLDWIDE INSURANCE TRUST
497, 1996-09-18

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PROSPECTUS September 3, 1996

VAN ECK WORLDWIDE BOND FUND

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99 Park Avenue, New York, New York 10016
(212) 687-5200
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Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company consisting of five separate funds. This Prospectus relates
only to Van Eck Worldwide Bond Fund (the "Fund"). Shares of the Fund are
offered only to separate accounts of various insurance companies to fund the
benefits of variable life policies and variable annuity contracts (the
"Contracts").

WORLDWIDE BOND FUND--seeks high total return through a flexible policy of
investing globally, primarily in debt securities.

Worldwide Bond Fund is managed by Van Eck Associates Corporation (the
"Adviser"), 99 Park Avenue, New York, New York 10016. See "Management." Van
Eck Securities Corporation (the "Distributor"), a wholly-owned subsidiary of
the Adviser, serves as Distributor of the Fund's shares.

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This Prospectus sets forth concisely information about the Trust and Fund that
you should know before investing. It should be read in conjunction with the
prospectus for the Contract which accompanies this Prospectus and should be
retained for future reference. For further information about the Fund, please
call the Fund or the Distributor at the above telephone number.

The Contracts involve certain expenses not described in this Prospectus and
also may involve certain restrictions or limitations on the allocation of
purchase payments or Contract values to the Fund. See the applicable Contract
prospectus for information regarding expenses of the Contract and any
applicable restrictions or limitations with respect to the Fund.

SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, A BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.

A Statement of Additional Information, dated September 3, 1996, which further
discusses the Trust and Fund, has been filed with the Securities and Exchange
Commission and is incorporated herein by reference. It is available without
charge upon request to the Fund, or the Distributor at the above address or by
calling the telephone number listed above.

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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.

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TABLE OF CONTENTS PAGE
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<TABLE>
<S> <C>
The Trust................................................................... 3
Financial Highlights........................................................ 3
Investment Objectives and Policies of the Fund.............................. 4
Risk Factors................................................................ 5
Limiting Investment Risks................................................... 12
Management.................................................................. 12
How to Buy Shares........................................................... 13
Dividends and Distributions................................................. 14
How to Redeem Shares........................................................ 14
Federal Taxation............................................................ 14
Description of the Trust.................................................... 15
Additional Information...................................................... 16
</TABLE>

2
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THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. Worldwide Bond Fund is
classified as a non-diversified fund under the Investment Company Act of 1940,
as amended (the "Act"). (See "Description of the Trust").

FINANCIAL HIGHLIGHTS

The Financial Highlights below give selected information for a share of the
Fund outstanding for the year or period indicated. The Financial Highlights
presented have been audited by Deloitte & Touche LLP, independent accountants,
for all years from commencement of operations through April 30, 1992. For all
other fiscal years, the Financial Highlights presented have been audited by
Coopers & Lybrand L.L.P., independent accountants, whose reports thereon
appear in the Fund's Annual Reports. This information should be read in
conjunction with the financial statements and related notes that also appear
in the Fund's Annual Reports. The Annual Report also contains additional
performance information that will be made available upon request and without
charge.

<TABLE>
<CAPTION>
WORLDWIDE BOND FUND
--------------------------------------------------------------------
YEAR ENDED APRIL 30,
--------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990+
-------- -------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $11.46 $10.05 $10.62 $11.57 $10.82 $10.10 $10.00
-------- -------- ------- ------- ------- ------- ------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income. 0.58 0.68(a) 0.63 0.81 0.62 1.03 0.26
Net Gains or Losses on
Securities (both
realized and
unrealized).......... (0.34) 0.77 (0.37) (0.75) 0.67 0.19 (0.16)
-------- -------- ------- ------- ------- ------- ------
Total From Investment
Operations........... 0.24 1.45 0.26 0.06 1.29 1.22 0.10
-------- -------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)... (0.82) (0.04) (0.72) (0.83) (0.53) (0.50) --
Distributions (from
capital gains)....... -- -- (0.11) (0.18) (0.01) -- --
-------- -------- ------- ------- ------- ------- ------
Total Distributions... (0.82) (0.04) (0.83) (1.01) (0.54) (0.50) 0.00
-------- -------- ------- ------- ------- ------- ------
Net Asset Value, End
of Period............ $10.88 $11.46 $10.05 $10.62 $11.57 $10.82 $10.10
======== ======== ======= ======= ======= ======= ======
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Total Return(b) ........ 2.07% 14.51% 2.49% 0.38% 12.21% 12.37% 1.00%
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RATIOS/SUPPLEMENTARY DA-
TA:
Net Assets, End of Pe-
riod (000's omitted)... $107,541 $113,466 $80,908 $66,035 $40,930 $15,046 $2,237
Ratio of Expenses to Av-
erage Net Assets(c).... 1.08%(d) 0.98%(d) 0.93% 1.01% 1.05% 0.50% --
Ratio of Net Income to
Average Net Assets..... 5.26% 6.24% 6.47% 8.47% 8.55% 9.75% 9.22%*
Portfolio Turnover Rate. 208.05% 265.87% 37.59% 248.21% 231.34% 341.01% 12.23%*
</TABLE>
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(a) Based on average shares outstanding.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total return for the period ended
April 30, 1990 was not annualized.
(c) Had the Adviser not reimbursed expenses, the expense ratios for the year
ended April 30, 1991 and for the period September 1, 1989 (commencement of
operations) to April 30, 1990 would have been 1.14% and 2.80%,
respectively. As of September 29, 1995 the effective rate of the Adviser's
management fee is 1.0%. Prior to September 29, 1995, the effective rate of
the management fee was 0.75%.
(d) Ratio would have been 1.10% and 0.99%, respectively, had there not been
directed brokerage and custodian fee arrangements.
*Annualized
+From September 1, 1989 (commencement of operations) to April 30, 1990.

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INVESTMENT OBJECTIVES AND POLICIES OF THE FUND

A description of the investment objective and policies of the Fund is set
forth below. The investment objective of the Fund may not be changed without
the affirmative vote of a majority of the outstanding voting securities of the
Fund, as defined in the Act. As a result of the market risk inherent in any
investment, there is no assurance that the Fund will achieve its objective.
For further information about the Fund's investment policies, see "Investment
Objectives and Policies" in the Statement of Additional Information.

OBJECTIVE:

The Fund seeks high total return through a flexible policy of investing
globally, primarily in debt securities.

POLICIES:

Total return is comprised of current income and capital appreciation. The Fund
attempts to achieve its investment objective by taking advantage of investment
opportunities in the United States as well as in other countries throughout
the world where opportunities may be more rewarding and may emphasize either
component of total return. Capital appreciation will result during times of
declining interest rates and, with respect to investing globally, as a result
of foreign currency fluctuations relative to a declining dollar. Normally, the
Fund will have at least 65% of its total assets invested in bonds of varying
maturities.

The Adviser believes that diversification of assets on an international basis
may reduce the risk that events in any one country, including the United
States, may adversely affect the entire portfolio. There can be no assurance
that diversification of assets will reduce this risk. The Adviser will
determine the amount of the Fund's assets to be invested in corporate and
government securities in the United States and the amount to be invested in
each country abroad based on its assessment of where opportunities for total
return are expected to be most attractive. When making this determination, the
Adviser will evaluate the political and economic risks of the principal
countries of the world, prospects for the relationship of their currencies to
the U.S. dollar, the outlook for their interest rates, credit quality and
other factors. In some countries, yields of comparable quality securities
denominated in foreign currencies may either be higher than in the United
States, or may be expected to decline faster (leading to higher bond prices),
or such currencies may be expected to appreciate against the U.S. dollar. The
long-term assets of the Fund will consist primarily of securities which are
believed by the Adviser to be high grade, that is, rated A or better by
Standard & Poor's Corporation ("S&P") or Moody's Investors Service, Inc.
("Moody's") or if unrated, to be of comparable quality in the judgment of the
Adviser. For a further discussion of debt securities see "Risk Factors."

During normal market conditions, the Fund expects to invest in debt
securities, such as obligations issued or guaranteed by a government or any of
its political subdivisions, agencies or instrumentalities, or by a
supranational organization such as the World Bank or European Economic
Community (or other organizations which are chartered to promote economic
development and are supported by various governments and government entities),
bonds, debentures, notes, commercial paper, time deposits, certificates of
deposit and repurchase agreements, as well as debt obligations which may have
a call on a common stock or commodity by means of a conversion privilege or
attached warrants. The Fund may invest in debt instruments of the U.S.
Government and its agencies having varied maturities, consisting of
obligations issued or guaranteed as to both principal and interest by the U.S.
Government or backed by the "full faith and credit" of the United States. In
addition to direct obligations of the U.S. Treasury such as Treasury bonds,
notes and bills, these include securities issued or guaranteed by different
agencies such as the Federal Housing Administration, the Government National
Mortgage Association and the Small Business Administration.

The average maturity of the debt securities in the Fund's portfolio will be
based on the Adviser's judgment as to future interest rate changes. Normally,
the average maturity will be shorter when interest rates are expected to rise
and longer when rates are expected to fall. The Adviser expects the average
maturity to be between three and ten years. In addition, when the Adviser
determines that a temporary defensive strategy is warranted, the Fund may
invest in securities maturing in 13 months or less, and most or all of its
investments may be in the United States or another country.

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The Fund may invest up to 5% of its assets at the time of purchase in
warrants. The Fund may invest up to 5% of its assets at the time of purchase
in preferred stocks and preferred stocks which may be convertible into common
stock. The Fund may invest in collateralized mortgage obligations. The Fund
may buy and sell financial futures contracts and options on financial futures
contracts and may write, purchase or sell puts and calls on foreign currencies
and securities. The Fund may invest in "when-issued" securities and securities
of foreign issuers. In addition, the Fund may lend its portfolio securities
and borrow money for investment purposes (i.e., leverage its portfolio). For a
further discussion of these investments, see "Risk Factors."

There is no limit on the amount the Fund may invest in any one country or in
securities denominated in the currency of any one country. Normally the Fund
will invest in three countries besides the United States. However, the Fund
may invest solely in the securities of one country such as the United States
when economic conditions warrant, such as an extreme undervaluation of the
currency and exceptionally high returns of that country's currency relative to
other currencies.

RISK FACTORS

Assets of the Fund are subject to market fluctuations and risks inherent in
all securities. In addition, assets of the Fund may be subject to other
special considerations, such as those listed below.

FOREIGN SECURITIES

The Fund may purchase securities of foreign issuers including foreign
investment companies. Investments in foreign securities may involve a greater
degree of risk than investments in domestic securities due to the possibility
of exchange rate fluctuations and exchange controls, less publicly available
information, more volatile or less liquid securities markets, and the
possibility of expropriation, confiscatory taxation or political, economic or
social instability. In addition, some foreign companies are not generally
subject to the same uniform accounting, auditing and financial reporting
standards as are American companies and there may be less government
supervision and regulation of foreign stock exchanges, brokers and companies.
Foreign securities may be subject to foreign taxes, higher custodian fees,
higher brokerage commissions and higher dividend collection fees which could
reduce the yield or return on such securities, although a shareholder of the
Fund may, subject to certain limitations, be entitled to claim a credit or
deduction for United States federal income tax purposes for his proportionate
share of such foreign taxes paid by the Fund. In addition, some foreign
securities in which the Fund may invest may be denominated in foreign
currencies, and since the Fund may temporarily hold funds in foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
will be affected by changes in currency exchange rates. See "Foreign Currency
and Foreign Currency Transactions" below. Transactions in the securities of
foreign issuers may be subject to settlement delays. See "Taxes" in the
Prospectus and "Risks--Foreign Securities" in the Statement of Additional
Information. However, the Adviser believes that diversification of assets on
an international basis decreases the degree to which events in any one country
will adversely affect an entire portfolio.

In addition to investing directly in the securities of United States and
foreign issuers, the Fund may also invest in American Depositary Receipts
(ADRs), European Depositary Receipts (EDRs), American Depositary Shares
(ADSs), Global Depositary Shares (GDSs) and securities of foreign investment
funds or trusts (including passive foreign investment companies). ADRs, EDRs,
ADSs and GDSs are certificates that are issued by a United States bank or
trust company representing the right to receive securities of a foreign issuer
deposited in a foreign subsidiary, branch or correspondent of that bank.
Generally, ADRs, in registered form, are designed for use in United States
securities markets.

Foreign brokerage commissions and custodial expenses are generally higher than
in the United States. Dividend collection fees on foreign securities and ADRs
are generally higher than on United States securities and dividends and
interest may be subject to foreign withholding tax at their source which may
not be permitted to be passed through to shareholders.

EMERGING MARKETS SECURITIES

5
<PAGE>

businesses, restrictions on foreign ownership, or prohibitions of repatriation
of assets, and may have less protection of property rights than more developed
countries. The economies of countries with developing markets may be highly
vulnerable to change in local or global trade conditions, and may suffer from
extreme and volatile debt burdens or inflation rates. Local securities markets
may be unable to respond effectively to increases in trading volume,
potentially making prompt liquidation of substantial holdings difficult or
impossible at times. Securities of issuers located in developing markets may
have limited marketability and may be subject to more abrupt or erratic price
movements. However, such markets have in the past provided the opportunity for
higher rates of return to investors. There is no assurance that these markets
will offer such opportunity in the future.

For example, political and social conditions in a developing country caused by
an unstable government may pose certain risks to the Fund's investments. If
aggravated by local or international developments, such risks could have an
adverse affect on investments in such developing country, including the Fund's
investments and, under certain conditions, on the liquidity of the Fund's
portfolio and its ability to meet shareholder redemption requests. The ability
of the Fund to invest or hold its investments in companies situated in
developing countries may be further affected by changes in United States or
such countries' laws or regulations.

Many of these emerging markets limit the percentage of their domestic issuers
that foreign investors, such as the Fund, may own by requiring that such
issuers issue two classes of shares--"local" and "foreign" shares. Foreign
shares may be held only by investors that are not considered nationals or
residents of that country and generally are convertible into local shares.
Foreign shares may be subject to various restrictions, including restrictions
on the right to receive dividends and other distributions and on the right to
vote. Local shares are intended for ownership by nationals or residents of the
country. The market for foreign shares is generally less liquid than the
market for local shares, although in most cases foreign shares may be
converted into local shares. In addition, foreign shares often trade at a
premium to local shares, while at other times there is no premium. If the Fund
was to purchase foreign shares at a time when there is a premium and sell when
there is a lower or no premium, the Fund could realize a loss on its
investment. Ownership by foreign investors of local shares may be illegal in
some jurisdictions and, in others, foreign owners of local shares may not be
entitled, among other things, to participate in certain corporate actions such
as stock dividends, rights and warrant offerings or to vote at stockholders'
meetings (while foreign holders of foreign shares would participate). If the
Fund was to own local shares and could not participate in a stock, warrant or
other distribution, the Fund could suffer material dilution of its interest in
that issuer and the value of its holdings could decline dramatically, causing
a loss on its investment. Generally, it is expected that the Fund will hold
foreign shares. However, because of their limited number, foreign shares may,
at times, not be available for purchase by the Fund or, if available, the
premiums may be, in the opinion of the Adviser, unjustified or prohibitively
high. In order to participate in these markets, the Fund may deem it advisable
to purchase local shares, which may expose the Fund to the additional risks
described above. The Fund will only purchase local shares where foreign shares
are not available for purchase and, when in the opinion of the Adviser, the
potential for gain in these markets outweighs the risks that issuers will take
corporate actions which may result in dilution to the Fund. Where permitted by
local law, the Fund will attempt to convert local shares to foreign shares
promptly. There can be no assurance that the Adviser will be able to assess
these risks accurately, that the Fund will be able to convert its local shares
to foreign shares or that dilution will not result.

The securities markets in the emerging markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United
States. A high proportion of the shares of many issuers may be held by a
limited number of persons and financial institutions. A limited number of
issuers may represent a disproportionately large percentage of market
capitalization and trading value and cause the securities markets to be
susceptible to influence by large investors trading significant blocks of
securities. The Fund's ability to participate fully in the markets may be
limited by its investment policy of investing not more than 10% of its total
net assets in illiquid securities. In addition, limited liquidity may impair
the Fund's ability to liquidate a position at the time and price it wishes to
do so. Many of these stock markets are undergoing a period of growth and
change which may result in trading volatility, and in difficulties in the
settlement and recording of transactions and in interpreting and applying the
relevant law and regulations. Certain developing countries do not have a
comprehensive system of laws, although substantial changes have occurred in
this regard in recent years. Even where adequate law exists in certain
developing

6
<PAGE>

countries, it may be impossible to obtain swift and equitable enforcement of
such law or to obtain enforcement of the judgment by a court of another
jurisdiction.

In addition, stockbrokers and other intermediaries in emerging markets may not
perform as well as their counterparts in the United States and other more
developed securities markets. The prices at which the Fund may acquire
investments may be affected by trading by persons with material non-public
information and by securities transactions by brokers in anticipation of
transactions by the Fund in particular securities.

FOREIGN CURRENCY AND FOREIGN CURRENCY TRANSACTIONS

Since some foreign securities in which the Fund may invest may be denominated
in foreign currencies, and since the Fund may temporarily hold foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
may be affected by changes in currency exchange rates. The Fund's performance
will be less favorable if foreign currency exchange rates move adversely,
relative to the U.S. dollar. Foreign exchange rates are affected by factors
such as actual and anticipated Balance of Payments accounts, central bank
policy, political concerns and changes in interest rates. There can be no
assurance that the Adviser will be able to anticipate currency fluctuations in
exchange rates accurately. The Fund may invest in a variety of derivatives.
The Fund may purchase and sell put and call options on, or enter into futures
contracts or forward contracts to purchase or sell, foreign currencies. The
Fund may use foreign currency contracts to hedge the U.S. dollar value of a
security which it already owns or anticipates purchasing. A forward currency
contract may thus help reduce the Fund's losses on a security when a foreign
currency's value changes. The Fund will enter into forward contracts to
duplicate a cash market transaction. However, the Fund will invest in
securities, including short-term obligations, denominated in a range of
foreign currencies and the value of the Fund will be affected by changes in
currency exchange rates. The Fund will not purchase or sell foreign currency
as an investment. See "Futures Contracts and Options on Futures Contracts" and
"Hedging Strategies" below and "Foreign Currency Transactions" and "Futures
and Options Transactions" in the Statement of Additional Information.

OPTIONS

For hedging and other purposes (such as creating synthetic positions), the
Fund may invest up to 5% of its total assets, taken at market value at the
time of investment, in premiums on call and put options on domestic and
foreign securities, foreign currencies, stock and bond indices, financial
futures contracts and commodity futures contracts. This policy may be changed
without shareholder approval.

As the holder of a call or put option, the Fund pays a premium and has the
right (for generally 3 to 9 months) to purchase (in the case of a call option)
or sell (in the case of a put option) the underlying asset at the exercise
price at any time during the option period. An option on a futures contract
gives the purchaser the right, but not the obligation, in return for the
premium paid, to assume a position in a specified underlying futures contract
(which position may be a long or short position) at a specified exercise price
during the option exercise period. If the call or put is not exercised or sold
(whether or not at a profit), it will become worthless at its expiration date
and the Fund will lose its premium payment. The Fund may, with respect to
options it has purchased, sell them, exercise them or permit them to expire.

The Fund may write call or put options. As the writer of an option, the Fund
receives a premium. The Fund keeps the premium whether or not the option is
exercised. If the call or put option is exercised, the Fund must sell (in the
case of a written call option) or buy (in the case of a written put option)
the underlying asset at the exercise price. The Fund may write only covered
put and call options. A covered call option, which is a call option with
respect to which the Fund owns the underlying asset, sold by the Fund exposes
it during the term of the option to possible loss of opportunity to realize
appreciation in the market price of the underlying asset or to possible
continued holding of an underlying asset which might otherwise have been sold
to protect against depreciation in the market price of the underlying asset. A
covered put option written by the Fund exposes it

7
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during the term of the option to a decline in price of the underlying asset. A
put option sold by the Fund is covered when, among other things, cash or
short-term liquid securities are placed in a segregated account to fulfill the
obligations undertaken. Covering a put option sold does not reduce the risk of
loss.

The Fund may invest in options which are either listed on a domestic
securities exchange or traded on a recognized foreign exchange. In addition,
the Fund may purchase or sell over-the-counter options from dealers or banks
to hedge securities or currencies as approved by the Board of Trustees. In
general, exchange traded options are third party contracts with standardized
prices and expiration dates. Over-the-counter options are two party contracts
with price and terms negotiated by the buyer and seller, are generally
considered illiquid and will be limited to 10% of total net assets of the
Fund.

FUTURES CONTRACTS

The Fund may buy and sell financial futures contracts which may include
security and interest-rate futures, stock and bond index futures contracts and
foreign currency futures contracts. A security or interest-rate futures
contract is an agreement between two parties to buy or sell a specified
security at a set price on a future date. An index futures contract is an
agreement to take or make delivery of an amount of cash based on the
difference between the value of the index at the beginning and at the end of
the contract period. A foreign currency futures contract is an agreement to
buy or sell a specified amount of a currency for a set price on a future date.

When the Fund enters into a futures contract, it must make an initial deposit,
known as "initial margin," as a partial guarantee of its performance under the
contract. As the value of the underlying asset fluctuates, either party to the
contract is required to make additional margin payments, known as "variation
margin," to cover any additional obligation it may have under the contract.
The Fund will not commit more than 5% of its total assets to initial margin
deposits on futures contracts and premiums on options on futures contracts.

The Fund may write, purchase or sell put and call options on financial futures
contracts. The Fund may write only covered put and call options. An option on
a futures contract gives the purchaser the right, but not the obligation, in
return for the premium paid, to assume a position in a specified underlying
futures contract (which position may be a long or short position) at a
specified exercise price during the option exercise period. The writer of an
option is obligated to assume a position in a specified futures contract if
the option is exercised.

HEDGING AND OTHER INVESTMENT TECHNIQUES AND STRATEGIES

Options and futures contracts can be used by the Fund as part of various
hedging techniques and strategies.

When the Fund intends to acquire securities for its portfolio, it may use call
options or futures contracts as a means of fixing the price of the security it
intends to purchase at the exercise price (in the case of an option) or
contract price (in the case of a futures contract). An increase in the
acquisition cost would be offset, in whole or part, by a gain on the option or
futures contract. Options and futures contracts requiring delivery of a
security may also be useful to the Fund in purchasing a large block of
securities that would be more difficult to acquire by direct market purchases.
If the Fund holds a call option rather than the underlying security itself,
the Fund is partially protected from any unexpected decline in the market
price of the underlying security and in such event could allow the call option
to expire, incurring a loss only to the extent of the premium paid for the
option. Using a futures contract would not offer such partial protection
against market declines and the Fund would experience a loss as if it had
owned the underlying security.

8
<PAGE>

To protect against anticipated declines in the value of the Fund's investment
holdings, the Fund may use options, forward and futures contracts, and similar
investments (commonly referred to as derivatives) as a defensive technique to
protect the value of an asset the Adviser deems desirable to hold for tax or
other considerations or for investment reasons. One defensive technique
involves selling a futures or forward contract or purchasing a put option
whose value is expected to be inversely related to the security or asset being
hedged. If the anticipated decline in the value of the asset occurs, it would
be offset, in whole or part, by a gain on the futures contract or put option.
The premium paid for the put option would reduce any capital gain otherwise
available for distribution when the security is eventually sold.

The Fund may hedge against changes in the value of the U.S. dollar in relation
to a foreign currency in which portfolio securities of the Fund may be
denominated. The Fund may employ hedging strategies with options and futures
contracts on foreign currencies before the Fund purchases a foreign security,
during the period the Fund holds the foreign security, or between the date the
foreign security is purchased or sold and the date on which payment therefore
is made or received. Hedging against a change in the value of a foreign
currency in the foregoing manner does not eliminate fluctuations in the prices
of portfolio securities or prevent losses if the prices of such securities
decline. Furthermore, such hedging transactions reduce or preclude the
opportunity for gain if the value of the hedged currency should change
relative to the U.S. dollar. Last, when the Fund uses options and futures in
anticipation of the purchase of a portfolio security to hedge against adverse
movements in the security's underlying currency, but the purchase of such
security is subsequently deemed undesirable, the Fund may incur a gain or loss
on the option or futures contract.

The Fund may use futures contracts and options, and forward contracts as part
of various investment techniques and strategies, such as creating non-
speculative "synthetic" positions or implementing "cross-hedging" strategies.
A synthetic position is deemed not to be speculative if the position is
covered by segregation of short-term liquid assets. However, since the
financial markets in the developing countries are not as developed as in the
United States, these financial investments may not be available to the Fund
and the Fund may be unable to hedge certain risks or enter into certain
transactions. A "synthetic position" is the duplication of a cash market
transaction when deemed advantageous by the Adviser for cost, liquidity or
transactional efficiency reasons. A cash market transaction is the purchase or
sale of a security or other asset for cash. For example, from time to time,
the Fund experiences large cash inflows which may be redeemed from the Fund in
a relatively short period. In this case, the Fund currently can leave the
amounts uninvested in anticipation of the redemption or invest in securities
for a relatively short period, incurring transaction costs on the purchase and
subsequent sale. Alternatively, the Fund may create a synthetic position by
investing in a futures contract on a security, such as a Deutschemark bond or
on a securities index gaining investment exposure to the relevant market while
incurring lower overall transaction costs. The Fund would enter into such
transactions if the markets for these instruments were sufficiently liquid and
there was an acceptable degree of correlation to the cash market. By
segregating cash, the Fund's futures contract position would generally be no
more leveraged or riskier than if it had invested in the cash market--i.e.,
purchased securities.

Consistent with the hedging strategy described above, the Fund may invest in
options and futures contracts and options on futures contracts on foreign
currencies for the purpose of hedging against a decline in the value of
certain U.S. dollar denominated securities or other "cross-hedging"
strategies. "Cross-hedging" involves the use of one currency to hedge against
the decline in the value of another currency. For example, the Fund could
hedge against a currency-related decline in the value of a security
denominated in deutschemark by taking a short position in the Swiss franc. The
Adviser believes that the value of certain U.S. dollar denominated debt
securities is affected by fluctuations in the value of the U.S. dollar
relative to foreign currencies. Furthermore, the Adviser believes it can
identify those currencies whose value is likely to move inversely with the
value of the U.S. dollar. By investing a portion of the Fund's assets in
options or futures contracts on those identified currencies, the Adviser
believes that it may be able to reduce the Fund's exposure to declines in the
value of U.S. dollar denominated securities attributable to currency value
fluctuations. The use of such instruments as described herein involves several
risks. First, there can be no assurance that the prices of such instruments
and the hedged security or the cash market position will move as anticipated.
If prices do not move as anticipated, the Fund may incur a loss on its
investment, may not achieve the hedging protection it anticipated and/or incur
a loss greater than if it had entered into a cash market position. Second,

9
<PAGE>

investments in such instruments may reduce the gains which would otherwise be
realized from the sale of the underlying securities or assets which are being
hedged. Third, positions in such instruments can be closed out only on an
exchange that provides a market for those instruments. There can be no
assurance that such a market will exist for a particular futures contract or
option. If the Fund cannot close out an exchange traded futures contract or
option which it holds, it would have to perform its contract obligation or
exercise its option to realize any profit and would incur transaction costs on
the sale of the underlying assets.

Over-the-counter options, together with repurchase agreements maturing in more
than seven days and other investments which do not have readily available
market quotations are, because of liquidity considerations, limited to 10% of
total net assets of the Fund.

In those situations where foreign currency options or futures contracts, or
options on futures contracts may not be readily purchased (or where such
options or contracts may be deemed illiquid) in the primary currency in which
the hedge is desired, the hedge may be obtained by purchasing or selling an
option or futures contract or forward contract on a secondary currency. The
secondary currency will be selected based upon the Adviser's belief that there
exists a significant correlation between the exchange rate movements of the
primary and secondary currencies. This strategy may be employed with respect
to other securities and assets in which the Fund may invest. However, there
can be no assurances that, in the case of foreign currencies, the exchange
rate or the primary and secondary currencies will move as anticipated or, in
the case of other securities, or generally, that the relationship between the
hedged security and the hedging instrument will continue. If they do not move
as anticipated or the relationship does not continue, a loss may result to the
Fund on its investments in the hedging positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Fund.

REPURCHASE AGREEMENTS

The Fund may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund would acquire an underlying debt
obligation for a relatively short period (usually not more than one week)
subject to an obligation of the seller to repurchase, and the Fund to resell,
the obligation at an agreed upon price and time, thereby determining the yield
during the Fund's holding period. The agreement results in a fixed rate of
return that is not subject to market fluctuations during the Fund's holding
period. The Fund will enter into repurchase agreements with respect to
securities in which it may invest with member banks of the Federal Reserve
System or certain non-bank dealers. Under each repurchase agreement the
selling institution will be required to maintain the value of the securities
subject to the repurchase agreement at not less than their repurchase price.
Repurchase agreements could involve certain risks in the event of default or
insolvency of the other party, including possible delays or restrictions upon
the Fund's ability to dispose of the underlying securities. The Adviser,
acting under the supervision of the Board of Trustees, reviews the
creditworthiness of those non-bank dealers with which the Fund enters into
repurchase agreements to evaluate these risks. See "Repurchase Agreements" in
the Statement of Additional Information.

DEBT SECURITIES

The Fund may invest in debt securities. The market value of debt securities
generally varies in response to changes in interest rates and the financial
condition of each issuer. During periods of declining interest rates, the
value of debt securities generally increases. Conversely, during periods of
rising interest rates, the value of such securities generally declines. These
changes in market value will be reflected in the Fund's net asset value.

10
<PAGE>

Debt securities with similar maturities may have different yields, depending
upon several factors, including the relative financial condition of the
issuers. For example, higher yields are generally available from securities in
the lower rating categories of S&P's or Moody's. However, the values of lower-
rated securities generally fluctuate more than those of high grade securities
and lower-rated securities present greater risk of default. A description of
debt securities ratings is contained in the Appendix to the Statement of
Additional Information. High grade means a rating of A or better by Moody's or
S&P's, or of comparable quality in the judgment of the Adviser if no rating
has been given by either service. Many securities of foreign issuers are not
rated by these services. Therefore, the selection of such issuers depends to a
large extent on the credit analysis performed by the Adviser.

New issues of certain debt securities are often offered on a when-issued
basis, that is, the payment obligation and the interest rate are fixed at the
time the buyer enters into the commitment, but delivery and payment for the
securities normally take place after the date of the commitment to purchase.
The value of when-issued securities may vary prior to and after delivery
depending on market conditions and changes in interest rate levels. However,
the Fund will not accrue any income on these securities prior to delivery. The
Fund will maintain in a segregated account with its Custodian an amount of
cash or high quality debt securities equal (on a daily marked-to-market basis)
to the amount of its commitment to purchase the when-issued securities.

ASSET-BACKED SECURITIES

The Fund may invest in asset-backed securities. Asset-backed securities
represent interests in pools of consumer loans (generally unrelated to
mortgage loans) and most often are structured as pass-through securities.
Interest and principal payments ultimately depend on payment of the underlying
loans by individuals, although the securities may be supported by letters of
credit or other credit enhancements. The value of asset-backed securities may
also depend on the creditworthiness of the servicing agent for the loan pool,
the originator of the loans, or the financial institution providing the credit
enhancement. The issuer of asset-backed securities may not, in certain
instances, be able to perfect its security interest in the underlying
collateral.

COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOs")

The Fund may invest in CMOs. CMOs are fixed-income securities which are
collateralized by pools of mortgage loans created by commercial banks, savings
and loan institutions, private mortgage insurance companies and mortgage
bankers. In effect, CMOs "pass through" the monthly payments made by
individual borrowers on their mortgage loans. Timely payment of interest and
principal (but not the market value) of these pools is supported by various
forms of insurance or guarantees issued by U.S. Government agencies, private
issuers and the mortgage poolers. The Fund may buy CMOs without insurance or
guarantees if, in the opinion of the Adviser, the pooler is creditworthy or if
rated A or better by S&P or Moody's. S&P and Moody's assign the same rating
classifications to CMOs as they do to bonds. Prepayments of the mortgages
included in the mortgage pool may influence the yield of the CMO. In addition,
prepayments usually increase when interest rates are decreasing, thereby
decreasing the life of the pool. As a result, reinvestment of prepayments may
be at a lower rate than that on the original CMO. In the event that any CMOs
are determined to be investment companies, the Fund will be subject to certain
limitations under the 1940 Act.

LOANS OF PORTFOLIO SECURITIES

The Fund may lend to broker-dealers portfolio securities with an aggregate
market value of up to one-third of its total assets. Such loans must be
secured by collateral (consisting of any combination of cash, U.S. Government
securities or irrevocable letters of credit) in an amount at least equal (on a
daily marked-to-market basis) to the current market value of the securities
loaned. The Fund may terminate the loans at any time and obtain the return of
the securities loaned within one business day. The Fund will continue to
receive any interest or dividends paid on the loaned securities and will
continue to have voting rights with respect to the securities. The Fund might
experience risk of loss if the broker-dealer with which it has engaged in a
portfolio loan transaction breaches its agreement with the Fund.

11
<PAGE>

BORROWING

The Fund may borrow up to 30% of the value of its net assets to increase its
holdings of portfolio securities. Under the Act, the Fund is required to
maintain continuous asset coverage of 300% with respect to such borrowings and
to sell (within three days) sufficient portfolio holdings to restore such
coverage if it should decline to less than 300% because of market fluctuations
or other factors, even if the sale would be disadvantageous from an investment
standpoint. Leveraging by means of borrowing will exaggerate the effect of any
increase or decrease in the value of portfolio securities on the Fund's net
asset value, and money borrowed will be subject to interest and other costs
(which may include commitment fees and/or the cost of maintaining minimum
average balances) which may or may not exceed the investment return received
from the securities purchased with borrowed funds. It is anticipated that such
borrowings would be pursuant to a negotiated loan agreement with a commercial
bank or other institutional lender.

TEMPORARY DEFENSIVE STRATEGIES

During periods of less favorable economic and/or market conditions, the Fund
may make substantial investments for temporary defensive purposes in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, time deposits, bankers' acceptances,
high grade commercial paper and repurchase agreements.

LIMITING INVESTMENT RISKS

While an investment in the Fund is not without risk, the Fund follows certain
policies in managing its investments which may help to reduce risk. These
policies may not be changed without shareholder approval. The following are
some of the more significant investment limitations:

1. The Fund will not invest more than 10% of the value of its total net
assets in securities which are "illiquid" (including repurchase
agreements which mature in more than seven days and over-the-counter
foreign currency options).

2. The Fund will not purchase more than 10% of any class of securities of
any issuer, including more than 10% of its outstanding voting
securities, except that the Fund will not invest more than 25% of the
value of its total assets in securities of any one industry.

3. The Fund will not invest more than 10% of its total assets in securities
of other investment companies.

Further information regarding these and other of the Fund's investment
policies and restrictions is provided in the Statement of Additional
Information.

MANAGEMENT

TRUSTEES

The management of the Fund's business and affairs is the responsibility of the
Board of Trustees. For information on the Trustees and Officers of the Fund,
see "Trustees and Officers" in the Statement of Additional Information.

INVESTMENT ADVISER, MANAGER AND ADMINISTRATOR

Van Eck Associates Corporation, located at 99 Park Avenue, New York, New York
10016, serves as investment adviser and manager to the Fund pursuant to an
Advisory Agreement with the Trust. The Adviser manages the investment
operations of the Fund and furnishes the Fund with a continuous investment
program which includes determining which securities should be bought, sold or
held.

Madis Senner--Portfolio Manager of the Fund is responsible for managing the
Fund's portfolio of investments. Before joining Van Eck, Mr. Senner was a
global bond manager with Chase Manhattan Private Bank. Prior to that, he was
President of Sunray Securities, Inc., an investment management firm that he
founded, and, before that, was a global fixed income manager with Clemente
Capital, Inc. in New York City. Mr. Senner has 12 years experience in the
investment business.

The Fund pays the Adviser a monthly fee at the annual rate of 1% of the first
$500 million of the average daily net assets of the Fund, .90 of 1% of the
next $250 million of the average daily net assets and .70 of 1% of the average
daily net assets in excess of $750 million. The advisory fees paid to the
Adviser with respect to the Fund are higher than the fees paid by most
investment companies because of the complexities of managing this type of fund
(such as following trends,

12
<PAGE>

industries and companies in many different countries and stock and bond
markets throughout the world) but are comparable to the fees charged to other
investment companies with similar objectives for comparable services.

With respect to the Fund, the Adviser may from time to time, at its
discretion, waive the management fee and/or agree to pay some or all expenses
of the Fund. This has the effect of increasing the yield and total return of
the Fund during this period.

The Adviser also acts as investment adviser or sub-investment adviser to other
mutual funds registered with the Securities and Exchange Commission (the
"SEC") under the Act and manages or advises managers of portfolios of pension
plans and others.

John C. van Eck, Chairman and President of the Trust, and members of his
immediate family, own 100% of the voting stock of the Adviser. At June 30,
1996, total aggregate assets under the management of Van Eck Associates
Corporation were approximately $1.7 billion.

The Fund sells its shares to various insurance company variable annuity and
variable life insurance separate accounts as a funding vehicle for such
separate accounts. The Fund currently does not foresee any disadvantages to
variable annuity and variable life contract owners arising out of the fact
that the Fund offers its shares to separate accounts of various insurance
companies to serve as the investment medium for their variable products.
Nevertheless, the Board of Trustees intends to monitor events in order to
identify any material irreconcilable conflicts which may possibly arise, and
to determine what action, if any, should be taken in response to such
conflicts. If such a conflict were to occur, one or more insurance companies'
separate accounts might be required to withdraw its/their investments in the
Fund and shares of another fund may be substituted. This might force the Fund
to sell securities at disadvantageous prices. In addition, the Board of
Trustees may refuse to sell shares of the Fund to any separate account or may
suspend or terminate the offering of shares of the Fund if such action is
required by law or regulatory authority or is in the best interests of the
shareholders of the Fund.

EXPENSES

The Fund bears all expenses of its operation other than those incurred by the
Adviser under its Advisory Agreement with the Trust. In particular, the Fund
pays: investment advisory fees, custodian fees and expenses, legal, accounting
and auditing fees, brokerage fees, taxes, expenses of preparing prospectuses
and shareholder reports for existing shareholders, registration fees and
expenses (including compensation of the Adviser's employees in relation to the
time spent on such matters), expenses of the transfer and dividend disbursing
agent, the compensation and expenses of Trustees who are not otherwise
affiliated with the Trust, the Adviser or any of its affiliates, and any
extraordinary expenses. Expenses incurred jointly by the Fund and other series
of the Trust are allocated among the Fund and such other series in a manner
determined by the Trustees to be fair and equitable. Under the Advisory
Agreement, the Adviser provides the Fund with office space, facilities and
simple business equipment and provides the services of executive and clerical
personnel for administering the affairs of the Fund. The Adviser compensates
Trustees of the Trust if such persons are employees or affiliates of the
Adviser or its affiliates. The Adviser will, pursuant to the Advisory
Agreement, require the Fund to reimburse it for its costs for trading
portfolio securities and maintaining books and records of the Fund, including
general ledger and daily net asset value accounting.

The organizational expenses which were initially paid by the Adviser, were
reimbursed to the Adviser by the Fund and are being amortized by the Fund over
sixty successive equal monthly installments.

HOW TO BUY SHARES

Shares of the Fund are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

Van Eck Securities Corporation (the "Distributor"), located at 99 Park Avenue,
New York, New York 10016, a wholly-owned subsidiary of Van Eck Associates
Corporation, has entered into a Distribution Agreement with the Trust. The
Distributor receives no compensation in connection with the sale of shares of
the Fund.

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<PAGE>

Shares of the Fund are sold at the public offering price which is net asset
value next computed after receipt of a purchase order, provided that the
purchase order is received by the Trust or the insurance company before 4:00
p.m. Eastern time. The net asset value for the Fund is computed as of the
close of business on the New York Stock Exchange which is normally 4:00 p.m.
Monday through Friday, exclusive of national business holidays. The assets of
the Fund are valued at market value or, if market value is not ascertainable,
at fair market value as determined in good faith by the Board of Trustees.

The Fund may invest in securities or futures contracts listed on foreign
exchanges which trade on Saturdays or other customary United States national
business holidays (i.e., days on which the Fund is not open for business).
Consequently, since the Fund will compute its net asset value only Monday
through Friday, exclusive of national business holidays, the net asset value
of shares of the Fund may be significantly affected on days when an investor
has no access to the Fund.

The sale of shares will be suspended during any period when the determination
of net asset value is suspended and may be suspended by the Board of Trustees
whenever the Board judges it in the Fund's best interest to do so.
Certificates for shares of the Fund will not be issued.

DIVIDENDS AND DISTRIBUTIONS

The Fund intends to distribute its net investment income in July and January
and any net realized capital gains resulting from the investment activity
annually in January.

All dividends and capital gains distributions paid on shares of the Fund are
automatically reinvested in additional shares of the Fund on the dividend
payable date at the net asset value determined at the close of business on the
reinvestment price date. The fiscal year of the Fund has ended on April 30;
however, in August 1996 the Board of Trustees changed the Fund's fiscal year
to December 31 beginning with December 31, 1996.

HOW TO REDEEM SHARES

Shares of the Fund are redeemed at their net asset value next determined after
receipt of the order to redeem without the imposition of any sales commission
or redemption charge. However, certain deferred sales charges and other
charges may apply under the terms of the Contracts, which charges are
described in the Contract prospectus. Payment for the redemption of shares is
made by the Fund to the separate account in cash within seven days after
tender in proper form, except under unusual circumstances as determined by the
SEC. The redemption price will be the net asset value next determined after
the receipt by the Trust or insurance company of a request in proper form
provided the request is received prior to 4:00 p.m. Eastern time. The market
value of the securities in the Fund is subject to daily fluctuations and the
net asset value of the Fund's shares will fluctuate accordingly. Therefore,
the redemption value may be more or less than the original purchase price for
such shares.

FEDERAL TAXATION

The Fund intends to qualify as a "regulated investment company" ("RIC") under
the Internal Revenue Code (the "Code") and will not pay federal income tax to
the extent that it distributes its net taxable investment income and capital
gains.

Section 817(h) of the Code provides that certain variable contracts, based
upon one or more segregated asset accounts of a life insurance company, will
not be treated as annuity, endowment or life insurance contracts for any
period during which the investments made by such accounts are not adequately
diversified. The regulations promulgated under Section 817(h) of the Code
specify various investment diversification requirements. In addition, the
regulations provide that an investment by a segregated asset account of a life
insurance company in a qualifying RIC is not treated as a single investment.
Instead, a pro rata portion of each asset of the RIC is treated as an asset of
the segregated asset account. The Fund intends to invest so as to enable the
Contracts to satisfy the diversification requirements imposed by Section
817(h) of the Code and the applicable regulations.

The tax treatment of payments made by a separate account to a Contract holder
is described in the Contract prospectus.

14
<PAGE>

DESCRIPTION OF THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. The Trust commenced
operations on September 7, 1989. Effective April 12, 1995, Van Eck Investment
Trust changed its name to Van Eck Worldwide Insurance Trust.

The Trustees of the Trust have authority to issue an unlimited number of
shares of beneficial interest of the Fund, $.001 par value. To date, five
series or funds of the Trust have been authorized, which shares constitute the
interests in the Gold and Natural Resources Fund, Worldwide Emerging Markets
Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund, as well as
Worldwide Bond Fund, described herein.

The Worldwide Emerging Markets Fund and the Gold and Natural Resources Fund
are classified as diversified funds and the Fund, Worldwide Hard Assets Fund
and Worldwide Balanced Fund are classified as non-diversified funds under the
Act. A diversified fund is a fund which meets the following requirements: At
least 75% of the value of its total assets is represented by cash and cash
items (including receivables), Government securities, securities of other
investment companies and other securities for the purpose of this calculation
limited in respect of any one issuer to an amount not greater than 5% of the
value of the fund's total assets and to not more than 10% of the outstanding
voting securities of such issuer. A non-diversified fund is any fund other
than a diversified fund. A "series" is a separate pool of assets of the Trust
which is separately managed and which may have different investment objectives
from those of another series. The Trustees have the authority, without the
necessity of a shareholder vote, to create any number of new series.

Each share of the Fund has equal dividend, redemption and liquidation rights
and when issued is fully paid and non-assessable by the Trust. Under the
Trust's Master Trust Agreement, no annual or regular meeting of shareholders
is required. Thus, there will ordinarily be no shareholder meetings unless
required by the Act. The Trust held an initial meeting of shareholders on
April 1, 1991, at which shareholders elected the Board of Trustees, approved
the Advisory Agreement and ratified the selection of the Trust's independent
accountants.The Trustees are a self-perpetuating body unless and until fewer
than 50% of the Trustees, then serving as Trustees, are Trustees who were
elected by shareholders. At that time another meeting of shareholders will be
called to elect additional Trustees. On any matter submitted to the
shareholders, the holder of each Trust share is entitled to one vote per share
(with proportionate voting for fractional shares). Under the Master Trust
Agreement, any Trustee may be removed by vote of two-thirds of the outstanding
Trust shares; and holders of ten percent or more of the outstanding shares of
the Trust can require Trustees to call a meeting of shareholders for purposes
of voting on the removal of one or more Trustees. Shareholders of all series
are entitled to vote on matters affecting all of the series (such as the
elections of Trustees and ratification of the selection of the Trust's
independent accountants). On matters affecting an individual series, a
separate vote of that series is required. Shareholders of the Fund are not
entitled to vote on any matter not affecting the Fund but require a separate
vote of one of the other series. In accordance with the Act, under certain
circumstances the Trust will assist shareholders in communicating with other
shareholders in connection with calling a special meeting of shareholders. The
insurance company separate accounts, as the sole shareholders of the Fund,
have the right to vote Fund shares at any meeting of shareholders. However,
the Contracts may provide that the separate accounts will vote Fund shares in
accordance with instructions received from Contract holders. See the
applicable Contract prospectus for information regarding Contract holders'
voting rights.

Under Massachusetts law, the shareholders of the Trust could, under certain
circumstances, be held personally liable for the obligations of the Trust.
However, the Master Trust Agreement of the Trust disclaims shareholder
liability for acts or obligations of the Trust and requires that notice of
such disclaimer be given in each agreement, obligation or instrument entered
into or executed by the Trust or the Trustees. The Master Trust Agreement
provides for indemnification out of the Trust's property for all losses and
expenses of any shareholder held personally liable for the obligations of the
Trust. Thus, the risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which the Trust itself
would be unable to meet its obligations. The Fund's Adviser believes that, in
view of the above, the risk of personal liability to shareholders is remote.

15
<PAGE>

ADDITIONAL INFORMATION

ADVERTISING

From time to time the Fund may use various media to advertise performance.
Past performance is not necessarily indicative of future performance.

The Fund may advertise performance in terms of 30-day yield, which is computed
by dividing the net investment income per share earned during the 30 days by
the offering price per share on the last day of the period. Yield of the Fund
is a function of the kind and quality of the instruments in the Fund's
portfolio, maturity, operating expenses and market conditions.

The Fund may advertise performance in terms of average annual total return,
which is computed by finding the average annual compounded rates of return
over a period that would equate the initial amount invested to the ending
redeemable value. The calculation assumes the maximum sales charge (currently,
the Fund does not impose a sales charge on investments) is deducted from the
initial $1,000 payment and assumes all dividends and distributions by the Fund
are reinvested on the reinvestment dates during the period, and includes all
recurring fees that are charged to all shareholder accounts. In addition, the
Fund may advertise aggregate total return for a special period of time which
is determined by ascertaining the percentage change in the net asset value of
shares of the Fund initially purchased assuming reinvestment of dividends and
capital gains distribution on such shares without giving effect to the length
of time of the investment. Sales loads and other non-recurring expenses may be
excluded from the calculation of rates of return with the result that such
rates may be higher than if such expenses and sales loads were included. All
other fees will be included in the calculation of rates of return.

The Fund may quote performance results from recognized services and
publications which monitor the performance of mutual funds and the Fund may
compare its performance to various published historical indices. Micropal,
Ltd., a worldwide mutual fund performance evaluation service, is one such
rating agency. Lipper Analytical Services is another such rating agency. The
Lipper performance analysis assumes reinvestment of capital gains and
distributions, but does not give effect to sales charges or taxes. The Fund is
rated in the "World Income Funds" category. The Morgan Stanley Capital
International Indices and the Salomon Brothers World Global Bond Index are two
indices to which the Fund may be compared. For a further discussion of
advertising see "Performance" in the Statement of Additional Information.

For further information about the Fund, please call or write to your insurance
company or call toll free (800) 221-2220 (in New York call (212) 687-5200 or
write to the Fund at the cover page address.

CUSTODIAN

The Custodian of the assets of the Trust is The Chase Manhattan Bank, N.A.,
Chase Metrotech Center, Brooklyn, New York 11245.

TRANSFER AGENT

Van Eck Associates Corporation, 99 Park Avenue, New York, New York 10016,
serves as the Fund's transfer agent.

INDEPENDENT ACCOUNTANTS

Coopers & Lybrand L.L.P., 1301 Avenue of the Americas, New York, New York
10019, provides audit services, consultation and advice with respect to
financial information in the Trust's filings with the SEC, consults with the
Trust on accounting and financial report matters and prepares the Trust's tax
return.

COUNSEL

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts serves as
Counsel for the Trust.

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<PAGE>

VAN ECK WORLDWIDE
INSURANCE TRUST

----------------------------

Worldwide Bond Fund

Shares of the Fund are offered only to separate accounts of various insurance
companies to fund the benefits of variable life policies and variable annuity
policies. This Prospectus sets forth concisely information about the Trust and
Fund that you should know before investing. It should be read in conjunction
with the prospectus for the Contract which accompanies this Prospectus and
should be retained for future reference. The Contracts involve certain expenses
not described in this Prospectus and also may involve certain restrictions or
limitations on the allocation of purchase payments or Contract values to the
Fund. In particular, the Fund may not be available in connection with a
particular Contract or in a particular state. See the applicable Contract
prospectus for information regarding expenses of the Contract and any applicable
restrictions or limitations with respect to the Fund.

VAN ECK WORLDWIDE INSURANCE TRUST
---------------------------------
99 Park Avenue, New York, NY 10016

[LOGO]VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)

================================================================================

September 3, 1996

VAN ECK
WORLDWIDE
INSURANCE TRUST
PROSPECTUS

Worldwide

Bond Fund

[LOGO]VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)

================================================================================

<PAGE>

PROSPECTUS September 3, 1996

VAN ECK GOLD AND NATURAL RESOURCES FUND

- -------------------------------------------------------------------------------

99 Park Avenue, New York, New York 10016
(212) 687-5200
- -------------------------------------------------------------------------------

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company consisting of five separate funds. This Prospectus relates
only to Van Eck Gold and Natural Resources Fund (the "Fund"). Shares of the
Fund are offered only to separate accounts of various insurance companies to
fund the benefits of variable life policies and variable annuity contracts
(the "Contracts").

GOLD AND NATURAL RESOURCES FUND--seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other
natural resources, such as strategic and other metals, minerals, forest
products, oil, natural gas and coal. Current income is not an investment
objective.

Gold and Natural Resources Fund is managed by Van Eck Associates Corporation
(the "Adviser"), 99 Park Avenue, New York, New York 10016. See "Management."
Van Eck Securities Corporation (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as Distributor of the Fund's shares.

---------------

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<PAGE>

TABLE OF CONTENTS PAGE
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<TABLE>
<S> <C>
The Trust................................................................... 3
Financial Highlights........................................................ 3
Investment Objectives and Policies of the Fund.............................. 4
Risk Factors................................................................ 5
Limiting Investment Risks................................................... 13
Management.................................................................. 13
How to Buy Shares........................................................... 14
Dividends and Distributions................................................. 15
How to Redeem Shares........................................................ 15
Federal Taxation............................................................ 15
Description of the Trust.................................................... 16
Additional Information...................................................... 17
</TABLE>

2
<PAGE>

THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. Gold and Natural Resources
Fund is classified as a diversified fund under the Investment Company Act of
1940, as amended (the "Act"). (See "Description of the Trust").

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
GOLD AND NATURAL RESOURCES FUND
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992 1991 1990+
-------- -------- ------- ------- ------ ------ ------
Net Asset Value,
Beginning of Period..... $13.49 $13.11 $10.61 $ 8.25 $ 8.85 $ 9.51 $10.00
-------- -------- ------- ------- ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income. 0.12 0.08 0.07 0.01 0.04 0.16 0.08
Net Gains or Losses on
Securities (both
realized and
unrealized).......... 3.44 0.37 2.47 2.39 (0.53) (0.69) (0.57)
-------- -------- ------- ------- ------ ------ ------
Total From Investment
Operations........... 3.56 0.45 2.54 2.40 (0.49) (0.53) (0.49)
-------- -------- ------- ------- ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)... (0.13) (0.07) (0.04) (0.04) (0.11) (0.13) --
Distributions (from
capital gains)....... -- -- -- -- -- -- --
-------- -------- ------- ------- ------ ------ ------
Total Distributions... (0.13) (0.07) (0.04) (0.04) (0.11) (0.13) 0.00
-------- -------- ------- ------- ------ ------ ------
Net Asset Value, End
of Period............ $16.92 $13.49 $13.11 $10.61 $ 8.25 $ 8.85 $ 9.51
======== ======== ======= ======= ====== ====== ======
- ---------------------------------------------------------------------------------------------
Total Return(a) ........ 26.66% 3.43% 23.96% 29.19% (5.62%) (5.67%) (4.90%)
- ---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DA-
TA:
Net Assets, End of Pe-
riod (000's omitted)... $186,370 $127,320 $81,248 $30,896 $9,836 $6,936 $3,660
Ratio of Expenses to Av-
erage Net Assets(b).... 1.08%(c) 0.96% 0.96% 1.61% 1.32% 0.52% --
Ratio of Net Income to
Average Net Assets..... 0.81% 0.71% 0.64% 0.25% 0.60% 2.10% 2.46%*
Portfolio Turnover Rate. 26.37% 23.30% 15.84% 14.61% 0.48% 21.86% 5.09%*
Average Commission Rate
Paid................... $ 0.0310
</TABLE>
- --------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total return for the period ended
April 30, 1990 was not annualized.
(b) Had the Adviser not reimbursed expenses, the expense ratios for the year
ended April 30, 1991 and for the period September 1, 1989 (commencement of
operations) to April 30, 1990 would have been 1.21% and 1.87%,
respectively. As of September 29, 1995 the effective rate of the Adviser's
management fee is 1.0%. Prior to September 29, 1995, the effective rate of
the management fee was 0.75%.
(c) The ratio was not impacted by the directed brokerage and custodian fee
rrangements.
*Annualized
+From September 1, 1989 (commencement of operations) to April 30, 1990.

3
<PAGE>

INVESTMENT OBJECTIVES AND POLICIES OF THE FUND

OBJECTIVE:

Gold and Natural Resources Fund seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other
natural resources such as strategic and other metals, minerals, forest
products, oil, natural gas and coal. Current income is not an investment
objective.

POLICIES:

During normal market conditions, the Fund will have at least 65% of its total
assets invested in securities of companies engaged in gold mining and natural
resources activities. The Fund may also invest in equity and debt securities
of companies which themselves invest in companies engaged in these activities.
The Fund also has the right to invest up to 35% of its assets in the
securities of non-precious metals and natural resources companies.

The Adviser believes that securities of precious metals companies and certain
other natural resources companies offer an opportunity to protect wealth
against eroding monetary values. Recent history indicates that the policies of
many governments seeking economic growth, particularly persistent budget
deficits and high rates of growth of monetary reserves and money supply, have
had long-term inflationary consequences. During periods of accelerating
inflationary policies, the prices of many precious metals equity securities
have risen cyclically, and the Adviser believes that they may continue to do
so in the future. The Adviser anticipates that inflation and the price of gold
will continue on a long-term upward trend with alternating cycles as credit is
over-expanded and subsequently tightened. The price of gold decreases when
inflation is not perceived as a risk. Since the market action of gold mining
shares may move against or independently of the market trend of industrial
shares, the addition of such shares to an overall portfolio may increase the
return and reduce the fluctuations of such portfolio. There can be no
assurance that an increased rate of return or a reduction in fluctuations of a
portfolio will be achieved. Thus, an investment in the Fund should be
considered part of an overall investment program rather than a complete
investment program.

The five largest gold producing countries are the Republic of South Africa,
the United States, Australia, CIS (the former U.S.S.R.) and Canada. During
normal market conditions, the Fund expects to invest at least 25% of its
assets in securities of companies in Canada, the United States, Australia and
South Africa, whose value is tied, linked or dependent upon the actual or
anticipated price of gold, such as companies which are primarily engaged in
gold mining. It is uncertain under current federal tax law the extent to which
the Fund may concentrate its investments in gold and gold related securities
without adversely affecting the federal tax status of the underlying
Contracts. Accordingly, the Fund reserves the right to alter its policy with
respect to concentration in such securities if and when such uncertainty is
resolved. This limitation is not a fundamental policy of the Fund and may be
changed at any time by the Board of Trustees without a vote of shareholders.
The Fund may invest in conglomerates whose main activity is not mining.

The Fund may invest up to 35% of the value of its total assets in: (a)
securities of companies not in the gold mining/natural resources areas; (b)
high grade corporate debt securities; and (c) obligations issued or guaranteed
by the U.S. or foreign governments and repurchase agreements. The Fund may
invest up to 5% of its assets at the time of purchase in warrants. The Fund
may also invest up to 5% of its assets at the time of purchase in preferred
stocks and preferred stocks which may be converted into common stock. The Fund
may purchase and sell financial futures and commodity futures contracts and
options on financial futures and commodity futures contracts and may write,
purchase or sell puts and calls on foreign currencies, securities, commodities
and commodity indices. The Fund may invest in "when-issued" securities and
securities of foreign issuers. For a further discussion of these investments,
see "Risk Factors."

4
<PAGE>

The Fund has reserved the right to invest up to 10% of its net assets, taken
at market value at the time of investment, in gold bullion and coins.

Since the Fund may invest substantially all of its assets in securities of
companies engaged in gold mining and natural resources activities, the Fund
may be subject to greater risks and market fluctuations than other investment
companies with less concentrated portfolios. The Fund has no restrictions on
the amount of its assets that may be invested in securities of foreign issuers
and thus the relative amount of such investments will change from time to
time. Investments by the Fund in securities of gold mining shares, coins and
gold bullion, foreign issuers, foreign currencies, and options and futures may
involve particular investment risks. In addition, the Fund may lend its
portfolio securities and borrow money for investment purposes (i.e., leverage
its portfolio). See "Risk Factors."

Although the Fund will not invest in real estate directly, it may invest a
portion of its assets not invested in the gold, precious and non-precious
metals and natural resources sectors in equity securities of real estate
investment trusts ("REITs") and other real estate industry companies or
companies with substantial real estate investments. The Fund may therefore be
subject to certain risks associated with direct ownership of real estate and
with the real estate industry in general. See "Risk Factors."

RISK FACTORS

Assets of the Fund are subject to market fluctuations and risks inherent in
all securities. In addition, assets of the Fund may be subject to other
special considerations, such as those listed below.

FOREIGN SECURITIES

The Fund may invest in South African issuers. Political and social conditions
in South Africa, due to the unsettled political conditions which could recur
in South Africa or its neighboring countries, may pose certain risks to the
Fund's investments. If aggravated by local or international developments, such
risks could have an adverse effect on investments in those countries,
including the Fund's investments and, under certain conditions, on the
liquidity of the Fund's portfolio and its ability to meet shareholder
redemption requests. The ability of the Fund to invest or hold their
investments in South African companies may be further affected by changes in
United States or South African laws or regulations.

5
<PAGE>

(GDSs) and securities of foreign investment funds or trusts (including passive
foreign investment companies). ADRs, EDRs, ADSs and GDSs are certificates that
are issued by a United States bank or trust company representing the right to
receive securities of a foreign issuer deposited in a foreign subsidiary,
branch or correspondent of that bank. Generally, ADRs, in registered form, are
designed for use in United States securities markets.

EMERGING MARKETS SECURITIES

Investments of the Fund may be made from time to time in companies in
developing countries as well as in developed countries. Shareholders should be
aware that investing in the equity and fixed income markets of developing
countries involves exposure to potentially unstable governments, economies
based on only a few industries and securities markets which trade a small
number of securities and may therefore at times be illiquid. Securities
markets of developing countries tend to be more volatile than the markets of
developed countries. Countries with developing markets may present the risk of
nationalization of businesses, restrictions on foreign ownership, or
prohibitions of repatriation of assets, and may have less protection of
property rights than more developed countries. The economies of countries with
developing markets may be highly vulnerable to change in local or global trade
conditions, and may suffer from extreme and volatile debt burdens or inflation
rates. Local securities markets may be unable to respond effectively to
increases in trading volume, potentially making prompt liquidation of
substantial holdings difficult or impossible at times. Securities of issuers
located in developing markets may have limited marketability and may be
subject to more abrupt or erratic price movements. However, such markets have
in the past provided the opportunity for higher rates of return to investors.
There is no assurance that these markets will offer such opportunity in the
future.

6
<PAGE>

Fund. Where permitted by local law, the Fund will attempt to convert local
shares to foreign shares promptly. There can be no assurance that the Adviser
will be able to assess these risks accurately, that the Fund will be able to
convert its local shares to foreign shares or that dilution will not result.

PRECIOUS METALS

The Fund may invest in precious metal coins (including gold, silver, platinum
and palladium) which have no numismatic value. The value of such coins moves
correspondingly with the price of bullion in that the value of the coins is
based primarily on their precious metal content. Since such investments do not
generate any investment income, the sole source of return from such
investments would be from gains realized on sales of the coins or bullion, and
a negative return would be realized to the extent such coins or bullion are
sold at a loss. The Fund incurs additional costs in storing gold bullion and
coins. These storage costs are generally higher than custodial costs for
securities. Although subject to substantial fluctuations in value, management
believes such investments could be beneficial to the investment performance of
the Fund and could be a potential hedge against inflation, as well as an
investment with possible growth potential. In addition, at the appropriate
time, investments in precious metal coins or bullion could help to moderate
fluctuations in the Fund's portfolio value, as at times the prices of precious
metals have tended not to fluctuate as widely as shares of issuers engaged in
the mining of such precious metals.

In view of the established world market for precious metals, the daily value
of such coins is readily ascertainable and their liquidity is assured since
they are readily saleable to dealers which maintain markets in such coins. The
Fund will maintain its precious metal coins and bullion with Wilmington Trust
Company.

Precious metal trading is a speculative activity. Prices of precious metals
are affected by factors such as cyclical economic conditions, political events
and monetary policies of various countries. Gold and other precious metals are
also subject to governmental action for political reasons. Markets are,
therefore, at times volatile and there may be sharp fluctuations in prices
even during periods of rising prices. Under current U.S. tax law, the Fund may
not receive more than 10% of its yearly income from gains resulting from the
sale of precious metals or any other physical commodity. The Fund may be
required, therefore, to hold its precious metals or sell them at a loss, or to
sell its portfolio securities at a gain, when it would not otherwise do so for
investment reasons.

FOREIGN CURRENCY AND FOREIGN CURRENCY TRANSACTIONS

7
<PAGE>

in currency exchange rates. The Fund's performance will be less favorable if
foreign currency exchange rates move adversely, relative to the U.S. dollar.
Foreign exchange rates are affected by factors such as actual and anticipated
Balance of Payments accounts, central bank policy, political concerns and
changes in interest rates. There can be no assurance that the Adviser will be
able to anticipate currency fluctuations in exchange rates accurately. The
Fund may invest in a variety of derivatives. The Fund may purchase and sell
put and call options on, or enter into futures contracts or forward contracts
to purchase or sell, foreign currencies. The Fund may use foreign currency
contracts to hedge the U.S. dollar value of a security which it already owns
or anticipates purchasing. A forward currency contract may thus help reduce
the Fund's losses on a security when a foreign currency's value changes. The
Fund will enter into forward contracts to duplicate a cash market transaction.
However, the Fund will invest in securities, including short-term obligations,
denominated in a range of foreign currencies and the value of the Fund will be
affected by changes in currency exchange rates. The Fund will not purchase or
sell foreign currency as an investment. See "Futures Contracts and Options on
Futures Contracts" and "Hedging Strategies" below and "Foreign Currency
Transactions" and "Futures and Options Transactions" in the Statement of
Additional Information.

OPTIONS

FUTURES CONTRACTS

8
<PAGE>

which may include futures contracts on gold and other natural resources and on
gold and other natural resources indices. A security or interest-rate futures
contract is an agreement between two parties to buy or sell a specified
security at a set price on a future date. An index futures contract is an
agreement to take or make delivery of an amount of cash based on the
difference between the value of the index at the beginning and at the end of
the contract period. A foreign currency futures contract is an agreement to
buy or sell a specified amount of a currency for a set price on a future date.
A commodity futures contract is an agreement to take or make delivery of a
specified amount of a commodity, such as gold, at a set price on a future
date.

The Fund may invest in commodity futures contracts and in options on commodity
futures contracts (collectively, "commodity interests"). Trading in commodity
interests involves numerous risks such as leverage, illiquidity, governmental
intervention designed to influence commodity prices and the possibility of
delivery of the commodity interests' underlying commodities. Commodity markets
are highly volatile. In the event that the Fund is required to take delivery
of a commodity, such commodity will be deemed to be illiquid and the Fund will
bear the cost of storing the commodity until such commodity is sold and may
incur substantial costs in its disposition. The Fund will not use commodity
futures contracts for leveraging purposes in excess of applicable limitations.

The Fund may write, purchase or sell put and call options on financial futures
contracts and, in addition, the Fund may write, purchase or sell put and call
options on commodity futures contracts.. The Fund may write only covered put
and call options. An option on a futures contract gives the purchaser the
right, but not the obligation, in return for the premium paid, to assume a
position in a specified underlying futures contract (which position may be a
long or short position) at a specified exercise price during the option
exercise period. The writer of an option is obligated to assume a position in
a specified futures contract if the option is exercised.

In establishing a position in a futures contract, which may be a long or short
position, cash or high quality debt instruments equal in value to the current
value of the underlying securities less the margin requirement will be
segregated, as may be required, with the Fund's Custodian to ensure that the
Fund's position is unleveraged. This segregated account will be marked-to-
market daily to reflect changes in the value of the underlying futures
contract. Certain exchanges do not permit trading in particular commodities at
prices in excess of daily price fluctuation limits set by the exchange, and
thus the Fund could be prevented from liquidating its positions and thus be
subjected to losses. Trading in futures contracts traded on foreign commodity
exchanges may be subject to the same or similar risks as trading in foreign
securities. See "Risk Factors--Foreign Securities."

HEDGING AND OTHER INVESTMENT TECHNIQUES AND STRATEGIES

Options and futures contracts can be used by the Fund as part of various
hedging techniques and strategies.

When the Fund intends to acquire securities (or gold bullion or coins) for its
portfolio, it may use call options or futures contracts as a means of fixing
the price of the security (or gold) it intends to purchase at the exercise
price (in the case of an option) or contract price (in the case of a futures
contract). An increase in the acquisition cost would be offset, in whole or
part, by a gain on the option or futures contract. Options and futures
contracts requiring delivery of a security may also be useful to the Fund in
purchasing a large block of securities that would be more difficult to acquire
by direct market purchases. If the Fund holds a call option rather than the
underlying security itself, the Fund is partially protected from any
unexpected decline in the market price of the underlying security and in such
event could allow the call option to expire, incurring a loss only to the
extent of the

9
<PAGE>

premium paid for the option. Using a futures contract would not offer such
partial protection against market declines and the Fund would experience a
loss as if it had owned the underlying security.

10
<PAGE>

In those situations where foreign currency options or futures contracts, or
options on futures contracts may not be readily purchased (or where such
options or contracts may be deemed illiquid) in the primary currency in which
the hedge is desired, the hedge may be obtained by purchasing or selling an
option or futures contract or forward contract on a secondary currency. The
secondary currency will be selected based upon the Adviser's belief that there
exists a significant correlation between the exchange rate movements of the
primary and secondary currencies. This strategy may be employed with respect
to other securities and assets in which the Fund may invest. For example,
because the Fund invests in securities whose value is related to the price of
gold or other natural resources, it may use options or futures contracts on
gold or other natural resources or an index as hedging instruments. However,
there can be no assurances that, in the case of foreign currencies, the
exchange rate or the primary and secondary currencies will move as anticipated
or, in the case of other securities, or generally, that the relationship
between the hedged security and the hedging instrument will continue. If they
do not move as anticipated or the relationship does not continue, a loss may
result to the Fund on its investments in the hedging positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Fund.

REPURCHASE AGREEMENTS

DEBT SECURITIES

11
<PAGE>

Debt securities with similar maturities may have different yields, depending
upon several factors, including the relative financial condition of the
issuers. For example, higher yields are generally available from securities in
the lower rating categories of Standard & Poor's Corporation ("S & P") or
Moody's Investors Service, Inc. ("Moody's"). However, the values of lower-
rated securities generally fluctuate more than those of high grade securities
and lower-rated securities present greater risk of default. A description of
debt securities ratings is contained in the Appendix to the Statement of
Additional Information. High grade means a rating of A or better by Moody's or
S&P's, or of comparable quality in the judgment of the Adviser if no rating
has been given by either service. Many securities of foreign issuers are not
rated by these services. Therefore, the selection of such issuers depends to a
large extent on the credit analysis performed by the Adviser.

REAL ESTATE SECURITIES

Although the Fund will not invest in real estate directly, it may invest a
percentage of its assets in equity securities of REITs and other real estate
industry companies or companies with substantial real estate investments. The
Fund is therefore subject to certain risks associated with direct ownership of
real estate and with the real estate industry in general. These risks include,
among others: possible declines in the value of real estate; possible lack of
availability of mortgage funds; extended vacancies of properties; risks
related to general and local economic conditions; overbuilding; increases in
competition, property taxes and operating expenses; changes in zoning laws;
costs resulting from the clean-up of, and liability to third parties for
damages resulting from, environmental problems; casualty or condemnation
losses; uninsured damages from floods, earthquakes or other natural disasters;
limitations on and variations in rents; and changes in interest rates.

REITs are pooled investment vehicles which invest primarily in income
producing real estate or real estate related loans or interests. REITs are
generally classified as equity REITs, mortgage REITs or hybrid REITs. Equity
REITs invest the majority of their assets directly in real property and derive
income primarily from the collection of rents. Equity REITs can also realize
capital gains by selling properties that have appreciated in value. Mortgage
REITs invest the majority of their assets in real estate mortgages and derive
income from the collection of interest payments. REITs are not taxed on income
distributed to shareholders provided they comply with several requirements of
the Internal Revenue Code of 1986, as amended (the "Code").

Investing in REITs involves certain unique risks in addition to those risk
associated with investing in the real estate industry in general. Equity REITs
may be affected by changes in the value of the underlying property owned by
the REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy
cash flow dependency, default by borrowers, self-liquidation and the
possibilities of failing to qualify for the exemption from tax for distributed
income under the Code. REITs (especially mortgage REITs) are also subject to
interest rate risk (i.e., as interest rated rise, the value of the REIT may
decline).

LOANS OF PORTFOLIO SECURITIES

12
<PAGE>

BORROWING

TEMPORARY DEFENSIVE STRATEGIES

LIMITING INVESTMENT RISKS

2. The Fund will not purchase more than 10% of any class of securities of
any issuer, including more than 10% of its outstanding voting
securities.

3. The Fund will not invest more than 10% of its total assets in securities
of other investment companies.

Further information regarding these and other of the Fund's investment
policies and restrictions is provided in the Statement of Additional
Information.

MANAGEMENT

TRUSTEES

INVESTMENT ADVISER, MANAGER AND ADMINISTRATOR

Derek S. van Eck--Portfolio Manager of the Fund is responsible for managing
the Fund's portfolio of investments. He is Director of Global Investments and
Executive Vice President of the Adviser and an officer and portfolio manager
of other mutual funds advised by the Adviser.

13
<PAGE>

EXPENSES

The organizational expenses which were initially paid by the Adviser, were
reimbursed to the Adviser by the Fund and are being amortized by the Fund over
sixty successive equal monthly installments.

HOW TO BUY SHARES

Shares of the Fund are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

14
<PAGE>

DIVIDENDS AND DISTRIBUTIONS

The Fund intends to distribute its net investment income in July and January
and any net realized capital gains resulting from the investment activity
annually in January.

HOW TO REDEEM SHARES

FEDERAL TAXATION

The tax treatment of payments made by a separate account to a Contract holder
is described in the Contract prospectus.

15
<PAGE>

DESCRIPTION OF THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. The Trust commenced
operations on September 7, 1989. Effective April 12, 1995, Van Eck Investment
Trust changed its name to Van Eck Worldwide Insurance Trust.

The Trustees of the Trust have authority to issue an unlimited number of
shares of beneficial interest of the Fund, $.001 par value. To date, five
series or funds of the Trust have been authorized, which shares constitute the
interests in the Worldwide Bond Fund, Worldwide Emerging Markets Fund,
Worldwide Hard Assets Fund and Worldwide Balanced Fund, as well as Gold and
Natural Resources Fund, described herein.

The Fund and Worldwide Emerging Markets Fund are classified as diversified
funds and the Worldwide Bond Fund, Worldwide Hard Assets Fund and Worldwide
Balanced Fund are classified as non-diversified funds under the Act. A
diversified fund is a fund which meets the following requirements: At least
75% of the value of its total assets is represented by cash and cash items
(including receivables), Government securities, securities of other investment
companies and other securities for the purpose of this calculation limited in
respect of any one issuer to an amount not greater than 5% of the value of the
fund's total assets and to not more than 10% of the outstanding voting
securities of such issuer. A non-diversified fund is any fund other than a
diversified fund. A "series" is a separate pool of assets of the Trust which
is separately managed and which may have different investment objectives from
those of another series. The Trustees have the authority, without the
necessity of a shareholder vote, to create any number of new series.

16
<PAGE>

ADDITIONAL INFORMATION

ADVERTISING

From time to time the Fund may use various media to advertise performance.
Past performance is not necessarily indicative of future performance.

The Fund may quote performance results from recognized services and
publications which monitor the performance of mutual funds and the Fund may
compare its performance to various published historical indices. Micropal,
Ltd., a worldwide mutual fund performance evaluation service, is one such
rating agency. Lipper Analytical Services is another such rating agency. The
Lipper performance analysis assumes reinvestment of capital gains and
distributions, but does not give effect to sales charges or taxes. The Fund is
rated in the "Gold Oriented Funds" category. The Fund may be compared to
indices such as the historical price of gold, the Standard & Poor's 500 or
Morgan Stanley Gold Mines Index. For a further discussion of advertising see
"Performance" in the Statement of Additional Information.

CUSTODIAN

The Custodian of the assets of the Trust is The Chase Manhattan Bank, N.A.,
Chase Metrotech Center, Brooklyn, New York 11245.

TRANSFER AGENT

Van Eck Associates Corporation, 99 Park Avenue, New York, New York 10016,
serves as the Fund's transfer agent.

INDEPENDENT ACCOUNTANTS

COUNSEL

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts serves as
Counsel for the Trust.

17
<PAGE>

VAN ECK WORLDWIDE
INSURANCE TRUST

------------------------------------

Gold and Natural Resources Fund

Van Eck Worldwide Insurance Trust
------------------------------------
99 Park Avenue, New York, NY 10016

[LOGO] VAN ECK GLOBAL
THE UNUSUAL FUNDS (SM)

================================================================================

September 3, 1996

VAN ECK
WORLDWIDE
INSURANCE TRUST
PROSPECTUS

Gold and Natural

Resources Fund

[LOGO] VAN ECK GLOBAL
THE UNUSUAL FUNDS (SM)

================================================================================
<PAGE>

PROSPECTUS September 3, 1996

VAN ECK WORLDWIDE BALANCED FUND

- -------------------------------------------------------------------------------

99 Park Avenue, New York, New York 10016
(212) 687-5200
- -------------------------------------------------------------------------------

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company consisting of five separate funds. This Prospectus relates
only to Van Eck Worldwide Balanced Fund (the "Fund"). Shares of the Fund are
offered only to separate accounts of various insurance companies to fund the
benefits of variable life policies and variable annuity contracts (the
"Contracts").

WORLDWIDE BALANCED FUND--seeks long term capital appreciation together with
current income. Fiduciary International, Inc. ("FII" or "Sub-Adviser") serves
as sub-investment adviser to the Fund.

See "Management." Van Eck Securities Corporation (the "Distributor"), a
wholly-owned subsidiary of Van Eck Associates Corporation, the Fund's
investment adviser (the "Adviser"), serves as Distributor of the Fund's
shares.

---------------

- -------------------------------------------------------------------------------
<PAGE>

TABLE OF CONTENTS PAGE
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
The Trust................................................................... 3
Financial Highlights........................................................ 3
Investment Objectives and Policies of the Fund.............................. 4
Risk Factors................................................................ 5
Limiting Investment Risks................................................... 13
Management.................................................................. 13
How to Buy Shares........................................................... 15
Dividends and Distributions................................................. 15
How to Redeem Shares........................................................ 16
Federal Taxation............................................................ 16
Description of the Trust.................................................... 16
Additional Information...................................................... 17
</TABLE>

2
<PAGE>

THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. Worldwide Balanced Fund is
classified as a non-diversified fund under the Investment Company Act of 1940,
as amended (the "Act"). (See "Description of the Trust").

FINANCIAL HIGHLIGHTS

The Financial Highlights below give selected information for a share of the
Fund outstanding for the year or period indicated. The Financial Highlights
presented have been audited by Coopers & Lybrand L.L.P., independent
accountants, whose reports thereon appear in the Fund's Annual Reports. This
information should be read in conjunction with the financial statements and
related notes that also appear in the Fund's Annual Reports. The Annual Report
also contains additional performance information that will be made available
upon request and without charge.

<TABLE>
<CAPTION>
WORLDWIDE BALANCED FUND
------------------------------
FOR THE PERIOD FROM
YEAR ENDED DECEMBER 23, 1994(degrees)
APRIL 30, 1996 TO APRIL 30, 1995
-------------- --------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period. $10.00 $10.00
------- --------------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income.............. 0.04(a) --
Net Gains or Losses on Securities
(both
realized and unrealized).......... 0.25 --
------- --------------
Total From Investment Operations... 0.29 0.00
------- --------------
LESS DISTRIBUTIONS:
Dividends (from net investment in-
come)............................. -- --
Distributions (from capital gains). -- --
------- --------------
Total Distributions................ 0.00 0.00
------- --------------
Net Asset Value, End of Period..... $10.29 $10.00
======= ==============
- --------------------------------------------------------------------------------
Total Return(b) ..................... 2.90% 0.00%
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net Assets, End of Period (000's
omitted)............................ $ 608 .14
Ratio of Expenses to Average Net As-
sets................................ 0.00%(c) 0.00%(c)
Ratio of Net Income to Average Net
Assets.............................. 0.42% 0.00%
Portfolio Turnover Rate.............. 0.00% 0.00%
Average Commission Rate Paid......... $0.0422
</TABLE>
- --------
(a) Based on average shares outstanding.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total return for the period ended
April 30, 1995 was not annualized.
(c) Had the Adviser not reimbursed expenses, and had the Fund not had a
custodian fee arrangement, the expense ratios would have been 12.61% and
78.40%, respectively.
(degrees)Commencement of operations.

3
<PAGE>

INVESTMENT OBJECTIVES AND POLICIES OF THE FUND

OBJECTIVE:

The Fund seeks long-term capital appreciation together with current income.

POLICIES:

The Fund intends to achieve its investment objective by investing its assets
in the United States and other countries throughout the world, and by
allocating its assets among equity securities, fixed-income securities and
short-term instruments.

The Adviser believes that through diversification, both on an international
basis and across various asset classes, the Fund can attempt to take advantage
of the best investment opportunities worldwide. The Adviser believes that
allocation of assets into many countries and across asset classes can, over
the long-term, provide higher returns than portfolios invested solely in bonds
with lower risk (or volatility, as measured by standard deviation of monthly
returns) or than portfolios invested entirely in stocks. Thus, the "risk-
adjusted return" of a diversified portfolio has the potential to be more
attractive than some other, more concentrated portfolios. In addition, the
balanced approach reduces the risk where events in any one country, including
the United States, may adversely affect the entire portfolio. Investors should
be aware that although the Fund diversifies across more investment types than
most mutual funds, no one mutual fund can provide a complete investment
program for all investors. There can be no assurance that allocation of assets
both globally and across asset classes will reduce these risks or that the
Fund will achieve its investment objective.

While FII does not currently serve as sub-investment adviser to the Fund, it
is expected to do so when the Fund's assets reach a level at which it is
appropriate to utilize the sub investment adviser's services. FII is a wholly-
owned subsidiary of Fiduciary Investment Corporation, which, in turn, is a
wholly-owned subsidiary of Fiduciary Trust Company International. Fiduciary
Trust Company International has more than 30 years of experience in managing
funds that invest in the international markets. The Adviser believes FII has
unique knowledge and experience in global investing.

The Fund seeks investment opportunities in the world's major stock, bond and
money markets. The Fund may invest in securities issued anywhere in the world
including the United States. Under normal conditions, the Fund will invest its
assets in at least three countries including the United States. There is no
limitation or restriction on the amount of assets to be invested in any one
asset class or country. Over the long-term, the Fund will attempt to invest a
minimum of 25% of its assets in the United States, with the balance outside
the United States and the Fund will attempt to maintain an asset allocation of
60% in equity securities and 40% in fixed-income securities and short-term
instruments. However, subsequent to the initial investment period, at least
25% of the Fund's total assets will always be invested in fixed-income senior
securities and at least 25% of the Fund's total assets will always be invested
in equities. The Adviser or FII will determine when geographic or asset class
reallocations should occur. These reallocations are not expected to be sudden,
rather such reallocations will be made gradually over time. The Fund may also
allocate a portion of its assets to gold.

The Fund will not invest more than 10% of its assets in the securities of
developing countries with emerging economies or securities markets. The Fund
may invest in asset-backed securities such as collateralized mortgage
obligations and other mortgage and non-mortgage asset-backed securities.

4
<PAGE>

The average maturity of the debt securities in the Fund's portfolio will be
based on the judgment of the Adviser or FII as to future interest rate
changes. Normally, the average maturity will be shorter when interest rates
are expected to rise and longer when interest rates are expected to fall. The
assets of the Fund invested in fixed income securities will consist of
securities which are believed by FII to be high grade, that is, rated A or
better by Standard & Poor's Corporation ("S&P") or Moody's Investors Service,
Inc. ("Moody's"), Fitch-1 by Fitch or Duff-1 by Duff & Phelps ("D&P") or if
unrated, to be of comparable high quality in the judgment of FII, subject to
the supervision of the Adviser and the Board of Trustees. The assets of the
Fund invested in short-term instruments will consist primarily of securities
rated in the highest category (for example, commercial paper rated "Prime-1"
or "A-1" by Moody's and S&P, respectively) or if unrated, in instruments that
are determined to be of comparable quality or are insured by foreign or U.S.
governments, their agencies or instrumentalities as to payment of principal
and interest.

The Adviser or FII will determine the amount of the Fund's assets to be
invested in domestic and foreign securities and the allocations to each asset
class abroad will be based on its assessment of where opportunities for long-
term capital appreciation and current income are expected to be most
attractive. When making this determination, the Adviser or FII will evaluate
the political and economic risks of the principal countries of the world, the
relationship of their currencies to the U.S. dollar, the outlook for their
interest rates, credit quality, GNP growth, inflation trends, yield
relationships between markets, sectors, and issues, demand and supply for
funds, and a variety of other factors. In managing the Fund, a "top down"
assessment approach of countries, regions and currencies and a "bottom up"
assessment approach of securities within selected sectors is used. FII's
global economic analysis is conducted in over 30 markets worldwide.

During periods of adverse or unusual economic and/or market conditions, the
Fund may, for temporary defensive purposes, make substantial investments in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, bankers' acceptances, high grade
commercial paper and repurchase agreements. For temporary defensive purposes,
the Fund can have all of its assets invested in any one country or currency.
The Adviser or FII will determine if market conditions warrant this strategy.

The Fund may invest up to 5% of its net assets in options on equity securities
and up to 5% of its net assets in warrants, including options and warrants
traded in over-the-counter markets. The Fund may buy and sell financial
futures contracts and options on financial futures contracts. The Fund may
write, purchase or sell puts and calls on foreign currencies and securities,
and invest in "when-issued" securities, "partly paid" securities (securities
paid for over a period of time), and securities of foreign issuers. The Fund
may lend its portfolio securities and borrow money for investment purposes
(i.e., leverage its portfolio). For a further discussion of these investments,
see "Risk Factors."

RISK FACTORS

Assets of the Fund are subject to market fluctuations and risks inherent in
all securities. In addition, assets of the Fund may be subject to other
special considerations, such as those listed below.

FOREIGN SECURITIES

5
<PAGE>

taxes paid by the Fund. In addition, some foreign securities in which the Fund
may invest may be denominated in foreign currencies, and since the Fund may
temporarily hold funds in foreign currencies, the value of the assets of the
Fund (and thus its net asset value) will be affected by changes in currency
exchange rates. See "Foreign Currency and Foreign Currency Transactions"
below. Transactions in the securities of foreign issuers may be subject to
settlement delays. See "Taxes" in the Prospectus and "Risks--Foreign
Securities" in the Statement of Additional Information. However, the Adviser
(or Sub-Adviser) believes that diversification of assets on an international
basis decreases the degree to which events in any one country will adversely
affect an entire portfolio.

EMERGING MARKETS SECURITIES

6
<PAGE>

some jurisdictions and, in others, foreign owners of local shares may not be
entitled, among other things, to participate in certain corporate actions such
as stock dividends, rights and warrant offerings or to vote at stockholders'
meetings (while foreign holders of foreign shares would participate). If the
Fund was to own local shares and could not participate in a stock, warrant or
other distribution, the Fund could suffer material dilution of its interest in
that issuer and the value of its holdings could decline dramatically, causing
a loss on its investment. Generally, it is expected that the Fund will hold
foreign shares. However, because of their limited number, foreign shares may,
at times, not be available for purchase by the Fund or, if available, the
premiums may be, in the opinion of the Adviser or Sub-Adviser, unjustified or
prohibitively high. In order to participate in these markets, the Fund may
deem it advisable to purchase local shares, which may expose the Fund to the
additional risks described above. The Fund will only purchase local shares
where foreign shares are not available for purchase and, when in the opinion
of the Adviser or Sub-Adviser, the potential for gain in these markets
outweighs the risks that issuers will take corporate actions which may result
in dilution to the Fund. Where permitted by local law, the Fund will attempt
to convert local shares to foreign shares promptly. There can be no assurance
that the Adviser or Sub-Adviser will be able to assess these risks accurately,
that the Fund will be able to convert its local shares to foreign shares or
that dilution will not result.

The securities markets in the emerging markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United
States. A high proportion of the shares of many issuers may be held by a
limited number of persons and financial institutions. A limited number of
issuers may represent a disproportionately large percentage of market
capitalization and trading value and cause the securities markets to be
susceptible to influence by large investors trading significant blocks of
securities. The Fund's ability to participate fully in the markets may be
limited by its investment policy of investing not more than 15% of its total
net assets in illiquid securities. In addition, limited liquidity may impair
the Fund's ability to liquidate a position at the time and price it wishes to
do so. Many of these stock markets are undergoing a period of growth and
change which may result in trading volatility, and in difficulties in the
settlement and recording of transactions and in interpreting and applying the
relevant law and regulations. Certain developing countries do not have a
comprehensive system of laws, although substantial changes have occurred in
this regard in recent years. Even where adequate law exists in certain
developing countries, it may be impossible to obtain swift and equitable
enforcement of such law or to obtain enforcement of the judgment by a court of
another jurisdiction.

FOREIGN CURRENCY AND FOREIGN CURRENCY TRANSACTIONS

Since some foreign securities in which the Fund may invest may be denominated
in foreign currencies, and since the Fund may temporarily hold foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
may be affected by changes in currency exchange rates. The Fund's performance
will be less favorable if foreign currency exchange rates move adversely,
relative to the U.S. dollar. Foreign exchange rates are affected by factors
such as actual and anticipated Balance of Payments accounts, central bank
policy, political concerns and changes in interest rates. There can be no
assurance that the Adviser will be able to anticipate currency fluctuations in
exchange rates accurately. The Fund may invest in a variety of derivatives.
The Fund may purchase and sell put and call options on, or enter into futures
contracts or forward contracts to purchase or sell, foreign currencies. The
Fund may use foreign currency contracts to hedge the U.S. dollar value of a
security which it already owns or anticipates purchasing. A forward currency
contract may thus help reduce the Fund's losses on a security when a foreign
currency's value changes. The Fund will enter into forward contracts to
duplicate a cash market transaction. However, the Fund will invest in
securities, including short-term obligations, denominated in a range of
foreign currencies and the value of the Fund will be affected by changes in
currency exchange rates. The Fund will not purchase or sell foreign currency
as an investment except that the Fund may enter into currency swaps. See
"Futures Contracts and Options on Futures Contracts" and "Hedging Strategies"
below and "Foreign Currency Transactions" and "Futures and Options
Transactions" in the Statement of Additional Information.

7
<PAGE>

CURRENCY SWAPS

The Fund may enter into currency swaps solely for hedging purposes. Currency
swaps involve the exchange of rights to make or receive payments in specified
currencies. Since currency swaps are individually negotiated, the Fund may
expect to achieve an acceptable degree of correlation between its portfolio
investments and its currency swap positions. Currency swaps usually involve
the delivery of the entire principal value of one designated currency in
exchange for the other designated currency. Therefore, the entire principal
value of a currency swap is subject to the risk that the other party to the
swap will default on its contractual delivery obligations.

The use of swaps is a highly specialized activity which involves investment
techniques and risks different from those associated with ordinary portfolio
transactions. If the Adviser or Sub-Adviser is incorrect in its forecasts of
market values and currency exchange rates, the investment performance of the
Fund would be less favorable than it would have been if this investment
technique were not used. Swaps are generally considered illiquid and will be
aggregated with other illiquid positions for purposes of the limitation on
illiquid investments.

OPTIONS

FUTURES CONTRACTS

8
<PAGE>

to take or make delivery of an amount of cash based on the difference between
the value of the index at the beginning and at the end of the contract period.
A foreign currency futures contract is an agreement to buy or sell a specified
amount of a currency for a set price on a future date.

HEDGING AND OTHER INVESTMENT TECHNIQUES AND STRATEGIES

Options and futures contracts can be used by the Fund as part of various
hedging techniques and strategies.

To protect against anticipated declines in the value of the Fund's investment
holdings, the Fund may use options, forward and futures contracts, and similar
investments (commonly referred to as derivatives) as a defensive technique to
protect the value of an asset the Adviser (or Sub-Adviser) deems desirable to
hold for tax or other considerations or for investment reasons. One defensive
technique involves selling a futures or forward contract, purchasing a put
option or entering into a swap agreement whose value is expected to be
inversely related to the security or asset being hedged. If the anticipated
decline in the value of the asset occurs, it would be offset, in whole or
part, by a gain on the futures contract, put option or swap. The premium paid
for the put option would reduce any capital gain otherwise available for
distribution when the security is eventually sold.

9
<PAGE>

options and futures in anticipation of the purchase of a portfolio security to
hedge against adverse movements in the security's underlying currency, but the
purchase of such security is subsequently deemed undesirable, the Fund may
incur a gain or loss on the option or futures contract.

The Fund may use futures contracts and options, forward contracts and swaps as
part of various investment techniques and strategies, such as creating non-
speculative "synthetic" positions or implementing "cross-hedging" strategies.
A synthetic position is deemed not to be speculative if the position is
covered by segregation of short-term liquid assets. However, since the
financial markets in the developing countries are not as developed as in the
United States, these financial investments may not be available to the Fund
and the Fund may be unable to hedge certain risks or enter into certain
transactions. A "synthetic position" is the duplication of a cash market
transaction when deemed advantageous by the Adviser (or Sub-Adviser) for cost,
liquidity or transactional efficiency reasons. A cash market transaction is
the purchase or sale of a security or other asset for cash. For example, from
time to time, the Fund experiences large cash inflows which may be redeemed
from the Fund in a relatively short period. In this case, the Fund currently
can leave the amounts uninvested in anticipation of the redemption or invest
in securities for a relatively short period, incurring transaction costs on
the purchase and subsequent sale. Alternatively, the Fund may create a
synthetic position by investing in a futures contract on a security, such as a
Deutschemark bond or on a securities index gaining investment exposure to the
relevant market while incurring lower overall transaction costs. The Fund
would enter into such transactions if the markets for these instruments were
sufficiently liquid and there was an acceptable degree of correlation to the
cash market. By segregating cash, the Fund's futures contract position would
generally be no more leveraged or riskier than if it had invested in the cash
market--i.e., purchased securities.

Consistent with the hedging strategy described above, the Fund may invest in
options and futures contracts and options on futures contracts on foreign
currencies for the purpose of hedging against a decline in the value of
certain U.S. dollar denominated securities or other "cross-hedging"
strategies. "Cross-hedging" involves the use of one currency to hedge against
the decline in the value of another currency. For example, the Fund could
hedge against a currency-related decline in the value of a security
denominated in deutschemark by taking a short position in the Swiss franc. The
Adviser (or Sub-Adviser) believes that the value of certain U.S. dollar
denominated debt securities is affected by fluctuations in the value of the
U.S. dollar relative to foreign currencies. Furthermore, the Adviser (or Sub-
Adviser) believes it can identify those currencies whose value is likely to
move inversely with the value of the U.S. dollar. By investing a portion of
the Fund's assets in options or futures contracts on those identified
currencies, the Adviser (or Sub-Adviser) believes that it may be able to
reduce the Fund's exposure to declines in the value of U.S. dollar denominated
securities attributable to currency value fluctuations. The use of such
instruments as described herein involves several risks. First, there can be no
assurance that the prices of such instruments and the hedged security or the
cash market position will move as anticipated. If prices do not move as
anticipated, the Fund may incur a loss on its investment, may not achieve the
hedging protection it anticipated and/or incur a loss greater than if it had
entered into a cash market position. Second, investments in such instruments
may reduce the gains which would otherwise be realized from the sale of the
underlying securities or assets which are being hedged. Third, positions in
such instruments can be closed out only on an exchange that provides a market
for those instruments. There can be no assurance that such a market will exist
for a particular futures contract or option. If the Fund cannot close out an
exchange traded futures contract or option which it holds, it would have to
perform its contract obligation or exercise its option to realize any profit
and would incur transaction costs on the sale of the underlying assets.

10
<PAGE>

with respect to other securities and assets in which the Fund may invest.
However, there can be no assurances that, in the case of foreign currencies,
the exchange rate or the primary and secondary currencies will move as
anticipated or, in the case of other securities, or generally, that the
relationship between the hedged security and the hedging instrument will
continue. If they do not move as anticipated or the relationship does not
continue, a loss may result to the Fund on its investments in the hedging
positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Fund.

REPURCHASE AGREEMENTS

The Fund may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund would acquire an underlying debt
obligation for a relatively short period (usually not more than one week)
subject to an obligation of the seller to repurchase, and the Fund to resell,
the obligation at an agreed upon price and time, thereby determining the yield
during the Fund's holding period. The agreement results in a fixed rate of
return that is not subject to market fluctuations during the Fund's holding
period. The Fund will enter into repurchase agreements with respect to
securities in which it may invest with member banks of the Federal Reserve
System or certain non-bank dealers. Under each repurchase agreement the
selling institution will be required to maintain the value of the securities
subject to the repurchase agreement at not less than their repurchase price.
Repurchase agreements could involve certain risks in the event of default or
insolvency of the other party, including possible delays or restrictions upon
the Fund's ability to dispose of the underlying securities. The Adviser (or
Sub-Adviser), acting under the supervision of the Board of Trustees, reviews
the creditworthiness of those non-bank dealers with which the Fund enters into
repurchase agreements to evaluate these risks. See "Repurchase Agreements" in
the Statement of Additional Information.

DEBT SECURITIES

Debt securities with similar maturities may have different yields, depending
upon several factors, including the relative financial condition of the
issuers. For example, higher yields are generally available from securities in
the lower rating categories of S&P's or Moody's. However, the values of lower-
rated securities generally fluctuate more than those of high grade securities
and lower-rated securities present greater risk of default. A description of
debt securities ratings is contained in the Appendix to the Statement of
Additional Information. High grade means a rating of A or better by Moody's or
S&P's, or of comparable quality in the judgment of the Adviser (or Sub-
Adviser) if no rating has been given by either service. Many securities of
foreign issuers are not rated by these services. Therefore, the selection of
such issuers depends to a large extent on the credit analysis performed by the
Adviser (or Sub-Adviser).

11
<PAGE>

ASSET-BACKED SECURITIES

COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOS")

The Fund may invest in CMOs. CMOs are fixed-income securities which are
collateralized by pools of mortgage loans created by commercial banks, savings
and loan institutions, private mortgage insurance companies and mortgage
bankers. In effect, CMOs "pass through" the monthly payments made by
individual borrowers on their mortgage loans. Timely payment of interest and
principal (but not the market value) of these pools is supported by various
forms of insurance or guarantees issued by U.S. Government agencies, private
issuers and the mortgage poolers. The Fund may buy CMOs without insurance or
guarantees if, in the opinion of the Adviser (or Sub-Adviser), the pooler is
creditworthy or if rated A or better by S&P or Moody's. S&P and Moody's assign
the same rating classifications to CMOs as they do to bonds. Prepayments of
the mortgages included in the mortgage pool may influence the yield of the
CMO. In addition, prepayments usually increase when interest rates are
decreasing, thereby decreasing the life of the pool. As a result, reinvestment
of prepayments may be at a lower rate than that on the original CMO. In the
event that any CMOs are determined to be investment companies, the Fund will
be subject to certain limitations under the 1940 Act.

LOANS OF PORTFOLIO SECURITIES

BORROWING

COMMERCIAL PAPER

The Fund may invest in commercial paper which is indexed to certain specific
foreign currency exchange rates. See "Risk Factors--Commercial Paper" in the
Statement of Additional Information.

12
<PAGE>

DIRECT INVESTMENTS

The Fund may invest up to 10% of its total assets in direct investments;
however, the Fund does not currently intend to invest more than 5% of its
total net assets in direct investments. For more information, see "Risk
Factors--Direct Investments" in the Statement of Additional Information.

TEMPORARY DEFENSIVE STRATEGIES

LIMITING INVESTMENT RISKS

1. The Fund will not invest more than 15% of the value of its total net
assets in securities which are "illiquid" (including repurchase
agreements which mature in more than seven days and over-the-counter
foreign currency options).

2. The Fund will not purchase more than 10% of any class of securities of
any issuer, including more than 10% of its outstanding voting
securities, except that the Fund may purchase more than 10% of any non-
voting class of securities and the Fund will not invest more than 25% of
the value of its total assets in securities of any one industry.

3. The Fund will not invest more than 10% of its total assets in securities
of other investment companies.

Further information regarding these and other of the Fund's investment
policies and restrictions is provided in the Statement of Additional
Information.

MANAGEMENT

TRUSTEES

INVESTMENT ADVISER, MANAGER AND ADMINISTRATOR

Fiduciary International Inc. ("FII"), located at Two World Trade Center, New
York, New York 10048, is expected to serve as sub-investment adviser to the
Fund pursuant to a Sub-Investment Advisory Agreement with the Trust, when the
Fund's assets reach a level at which it is appropriate to utilize the sub-
investment adviser's services. FII is expected to manage the investment
operations of the Worldwide Balanced Fund and furnish the Fund with a
continuous investment program that includes which securities should be bought,
sold or held. The Adviser manages and administers the business and affairs of
the Fund. As compensation for its services, FII will be paid a monthly fee at
an annual rate of .50% of average daily net assets by the Adviser from the
advisory fee it receives from the Fund. FII serves as an investment adviser to
other registered investment companies.

13
<PAGE>

FII is an indirect subsidiary of Fiduciary Trust Company International
("FTCI"). FTCI is a New York State chartered bank specializing in investment
and administration of assets for pensions and other institutional accounts
including individuals and families. FII has access to all of FTCI's investment
infrastructure. FTCI began investing globally in the 1960's and serves its
worldwide investment management and custody clients from offices in New York,
Los Angeles, Miami, Washington, D.C., London, Geneva and Hong Kong. FTCI has
over 60 investment professionals. FTCI has over 30 years of experience in
global management with over $16 billion managed under the global balanced
discipline. As of June 30, 1996, total assets under management by FII, its
parent organization FTCI and its subsidiaries, on behalf of all clients,
amounted to over $36 billion.

FII is expected to assign a team of managers led by a global strategist, which
includes a global equity manager and a global fixed-income manager, to manage
the Fund's portfolio of investments. The team is expected to consult with the
FTCI research department, which includes international analysts who specialize
in the equity markets of Japan, Europe, the Pacific Basin and Latin America,
when making investment decisions. FII's two primary portfolio managers, who
are expected to serve the Fund, are listed below:

Anne M. Tatlock--FII's Global Strategist of the Fund. Ms. Tatlock joined FTCI
in 1984 and is currently President of the company where she is responsible for
managing institutional investment management. Ms. Tatlock is head of the
Institutional Investment Department and a member of the Board of Directors,
the Global Investment Committee and the Investment Policy Committee at FTCI.

Steven J. Miller--FII's Portfolio Manager of the Fund. Mr. Miller joined FTCI
in 1994 after working for seven years with Vital Forsikring and Heller
Financial, Inc. Mr. Miller is responsible for managing institutional and
international portfolios. He is Vice President of FTCI as well as a member of
the Global Investment Committee and the Investment Policy Committee at FTCI.

The Fund pays the Adviser a monthly fee at the annual rate of .75 of 1% of
average daily net assets. Van Eck Associates Corporation also performs
accounting and administrative services for the Fund and is paid a fee at an
annual rate of .25 of 1% of the Fund's average daily net assets. The advisory
fees paid to the Adviser with respect to the Fund are higher than the fees
paid by most investment companies because of the complexities of managing this
type of fund (such as following trends, industries and companies in many
different countries and stock and bond markets throughout the world) but are
comparable to the fees charged to other investment companies with similar
objectives for comparable services.

With respect to the Fund, the Adviser and/or Sub-Adviser may from time to
time, at its discretion, waive the management fee and/or agree to pay some or
all expenses of the Fund. This has the effect of increasing the yield and
total return of the Fund during this period.

14
<PAGE>

EXPENSES

The Fund bears all expenses of its operation other than those incurred by the
Adviser under its Advisory Agreement with the Trust. In particular, the Fund
pays: investment advisory fees, custodian fees and expenses, legal, accounting
and auditing fees, brokerage fees, taxes, expenses of preparing prospectuses
and shareholder reports for existing shareholders, registration fees and
expenses (including compensation of the Adviser's employees in relation to the
time spent on such matters), expenses of the transfer and dividend disbursing
agent, the compensation and expenses of Trustees who are not otherwise
affiliated with the Trust, the Adviser or Sub-Adviser or any of their
affiliates, and any extraordinary expenses. Expenses incurred jointly by the
Fund and other series of the Trust are allocated among the Fund and such other
series in a manner determined by the Trustees to be fair and equitable. Under
the Advisory Agreement, the Adviser provides the Fund with office space,
facilities and simple business equipment and provides the services of
executive and clerical personnel for administering the affairs of the Fund.
The Adviser compensates Trustees of the Trust if such persons are employees or
affiliates of the Adviser or Sub-Adviser or their affiliates. The Adviser
will, pursuant to the Advisory Agreement, require the Fund to reimburse it for
its costs for trading portfolio securities and maintaining books and records
of the Fund, including general ledger and daily net asset value accounting.

The organizational expenses which were initially paid by the Adviser, were
reimbursed to the Adviser by the Fund and are being amortized by the Fund over
sixty successive equal monthly installments.

HOW TO BUY SHARES

Shares of the Fund are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

DIVIDENDS AND DISTRIBUTIONS

The Fund intends to distribute its net investment income in July and January
and any net realized capital gains resulting from the investment activity
annually in January.

15
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HOW TO REDEEM SHARES

FEDERAL TAXATION

The tax treatment of payments made by a separate account to a Contract holder
is described in the Contract prospectus.

DESCRIPTION OF THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. The Trust commenced
operations on September 7, 1989. Effective April 12, 1995, Van Eck Investment
Trust changed its name to Van Eck Worldwide Insurance Trust.

The Trustees of the Trust have authority to issue an unlimited number of
shares of beneficial interest of the Fund, $.001 par value. To date, five
series or funds of the Trust have been authorized, which shares constitute the
interests in the Gold and Natural Resources Fund, Worldwide Emerging Markets
Fund, Worldwide Hard Assets Fund and Worldwide Bond Fund, as well as Worldwide
Balanced Fund, described herein.

The Worldwide Emerging Markets Fund and the Gold and Natural Resources Fund
are classified as diversified funds and the Fund, Worldwide Hard Assets Fund
and Worldwide Bond Fund are classified as non-diversified funds under the Act.
A diversified fund is a fund which meets the following requirements: At least
75% of the value of its total assets is represented by cash and cash items
(including receivables), Government securities, securities of other investment
companies and other securities for the purpose of this calculation limited in
respect of any one issuer to an amount not greater than 5% of the value of the
fund's total assets and to not more than 10% of the outstanding voting
securities of such issuer. A non-diversified fund is any fund other than a
diversified fund. A "series" is a separate pool of assets of the Trust which
is separately managed and which may have different investment objectives from
those of another series. The Trustees have the authority, without the
necessity of a shareholder vote, to create any number of new series.

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ADDITIONAL INFORMATION

ADVERTISING

From time to time the Fund may use various media to advertise performance.
Past performance is not necessarily indicative of future performance.

17
<PAGE>

Lipper performance analysis assumes reinvestment of capital gains and
distributions, but does not give effect to sales charges or taxes. The Fund is
rated in the "Balanced Funds" category. The Morgan Stanley Capital
International Indices and the Salomon Brothers World Global Bond Index are two
indices to which the Fund may be compared. For a further discussion of
advertising see "Performance" in the Statement of Additional Information.

CUSTODIAN

The Custodian of the assets of the Trust is The Chase Manhattan Bank, N.A.,
Chase Metrotech Center, Brooklyn, New York 11245.

TRANSFER AGENT

Van Eck Associates Corporation, 99 Park Avenue, New York, New York 10016,
serves as the Fund's transfer agent.

INDEPENDENT ACCOUNTANTS

COUNSEL

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts serves as
Counsel for the Trust.

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VAN ECK WORLDWIDE
INSURANCE TRUST
---------------------------
Worldwide Balanced Fund

Van Eck Worldwide Insurance Trust
-----------------------------------
99 Park Avenue, New York, NY 10016

[LOGO]VAN ECK GLOBAL
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Van Eck Worldwide Insurance Trust . Van Eck Worldwide Insurance Trust

September 3, 1996

VAN ECK
WORLDWIDE
INSURANCE TRUST
PROSPECTUS

Worldwide
Balanced Fund

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