As filed with the Securities and Exchange Commission on
February 29, 1996
Registration No. 33-33844
=============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X ]
Pre-Effective Amendment No. ____ [ ]
Post-Effective Amendment No. 11 [ ]
REGISTRATION STATEMENT UNDER THE INVESTMENT ACT OF 1940 [X ]
[ ] Amendment No. 11
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
Ameritas Variable Life Insurance Company
Depositor
5900 "O" Street
Lincoln, Nebraska 68510
-------------------------
NORMAN M. KRIVOSHA
Secretary
Ameritas Variable Life Insurance Company
5900 "O" Street
Lincoln, Nebraska 68510
Approximate Date of Proposed Public Offering: As soon as practicable after
effective date.
It is proposed that this filing will become effective:
[ ] immediately upon filing pursuant to paragraph b
[x] 60 days after filing pursuant to paragraph a of Rule 485
[ ] on _______________ pursuant to paragraph b of Rule 485
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the Registrant
has registered an indefinite amount of securities under the Securities Act of
1933. A notice pursuant to Rule 24f-2 for the fiscal year ending December 31,
1995 was filed on February 16, 1996.
<PAGE>
OVERTURE
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-4
PART A
FORM N-4 ITEM HEADING IN PROSPECTUS
Item 1. Cover Page...................... Cover Page
Item 2. Definitions..................... Definitions
Item 3. Synopsis or Highlights.......... Questions and Answers About the
Policy
Item 4. Condensed Financial Information Accumulation Unit Values
Item 5. General Description of Registrant,
Depositor, and Portfolio Companies
a) Depositor.................... Ameritas Variable Life Insurance
Company
b) Registrant................... Ameritas Variable Life Insurance
Company Separate Account VA-2
c) Portfolio Company............ The Fund
d) Prospectus................... The Fund
e) Voting....................... Voting Rights
f) Administrator................ N/A
Item 6. Deductions and Expenses
a) Deductions................... Questions and Answers About the
Policy; Charges and Deductions
b) Sales load................... Questions and Answers About the
Policy; Withdrawal Charge
c) Special purchase plans....... N/A
d) Commissions.................. Distribution of the Policies
e) Registrant's expenses........ N/A
f) Portfolio company deductions
and expenses................. The Fund; Fund Investment Advisory
Fees and Expenses
g) Organizational expenses...... N/A
Item 7. General Description of Variable
Annuity Contracts
a) Rights ...................... Questions and Answers About the
Policy; The Policy; Distributions
Under the Policy; General
Provisions; Voting Rights
b) Provisions and limitations... Questions and Answers About the
Policy; Allocation of Premium;
Transfers
c) Changes in contracts or
operations.................. Addition, Deletion, or
Substitution of Investments; The
Policy; Voting Rights
d) Contractowners inquiries..... Owner Inquiries
Item 8. Annuity Period
a) Level of benefits............ Questions and Answers About the
Policy; Allocation of Premium;
Election of Annuity Income Options
b) Annuity commencement date.... Questions and Answers About the
Policy; Annuity Date
c) Annuity payments............. Questions and Answers About the
Policy; Annuity Income Options
d) Assumed investment return.... N/A
e) Minimums..................... Election of Annuity Income Options
f) Rights to change options or
transfer investment base..... Annuity Income Options
Item 9. Death Benefit
a) Death benefit calculation.... Questions and Answers About the
Policy; Death of Annuitant Prior
to Annuity Date
b) Forms of benefits............ Questions and Answers About the
Policy; Death of Annuitant Prior
to Annuity Date
<PAGE>
Item 10. Purchases and Contract Values
a) Procedures for purchases..... Cover Page; Questions and Answers
About the Policy; Policy
Application and Premium Payment;
Allocation of Accumulation Units
b) Accumulation unit value...... Accumulation Value; Value of
Accumulation Units
c) Calculation of accumulation unit
value....................... Accumulation Value; Value of
Accumulation Units
d) Principal underwriter........ Distribution of the Policies
Item 11. Redemptions
a) Redemption procedures........ Questions and Answers About the
Policy; Full and Partial
Withdrawals
b) Texas Optional Retirement
Program...................... N/A
c) Delay........................ Full and Partial Withdrawals
d) Lapse........................ N/A
e) Revocation rights............ Questions and Answers About the
Policy; Refund Privilege
Item 12. Taxes
a) Tax consequences............. Questions and Answers About the
Policy; Federal Tax Matters
b) Qualified plans.............. Federal Tax Matters
c) Impact of taxes.............. Taxes
Item 13. Legal Proceedings .............. Legal Proceedings
Item 14. Table of Contents for Statement
of Additional Information....... Statement of Additional
Information
PART B
FORM N-4 ITEM HEADING IN STATEMENT OF ADDITIONAL
INFORMATION
Item 15. Cover page...................... Cover page
Item 16. Table of Contents............... Table of Contents
Item 17. General Information and History
a) Name change.................. General Information and History
b) Attribution of Assets........ N/A
c) Control of Depositor......... General Information and History
Item 18. Services
a) Fees, expenses and costs..... N/A
b) Management-related services.. AVLIC
c) Custodian and independent
public accountant............ Safekeeping of Account Assets;
Independent Accountants
d) Other custodianship.......... N/A
e) Administrative servicing agent N/A
f) Depositor as principal
underwriter.................. N/A
Item 19. Purchase of Securities Being Offered
a) Manner of Offering........... N/A
b) Sales load................... N/A
Item 20. Underwriters
a) Depositor or affiliate as
principal underwriter........ Distribution of the Policy
b) Continuous offering.......... Distribution of the Policy
c) Underwriting commissions..... N/A
d) Payments of underwriter...... N/A
Item 21. Calculation of Performance Data. Calculation of Performance Data
Item 22. Annuity Payments................ N/A
Item 23. Financial Statements
a) Registrant................... Financial Statements
b) Depositor.................... Financial Statements
<PAGE>
PROSPECTUS COMPANY LOGO
AMERITAS VARIABLE LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM One Ameritas Way / 5900 "O" Street
VARIABLE ANNUITY POLICY P.O. Box 82550 / Lincoln, NE 68501
- --------------------------------------------------------------------------------
This Prospectus describes a Variable Annuity Policy ("Policy") offered by
Ameritas Variable Life Insurance Company ("AVLIC"). The Policy is a deferred
annuity, designed to aid individuals in long-term financial planning, and
provides for the accumulation of capital on a tax deferred basis for retirement
or other long-term purposes. The Policy is offered to individuals on either a
tax qualified or non-tax qualified basis in exchange for first-year premium
payments of $2,000 or more and subsequent premium payments of $500 or more.
Smaller premium payments may be accepted on Bank-O-Matic or at AVLIC's
discretion.
Prior to the annuity date of the policy, the payments accumulate on a completely
variable basis, based on the assets supporting the Policy. The owner will
receive annuity payments on a fixed basis. The owner has significant flexibility
in determining the annuity date on which payments are scheduled to commence.
Full withdrawals may be made at any time, elective , and systematic partial
withdrawals may be made subject to certain restrictions, before the annuity
date. Withdrawals are subject to a contingent deferred sales charge and tax
penalty in certain circumstances. Any withdrawal amount may be paid in a lump
sum or, if elected, all or part may be paid out under an annuity income option.
Policy loans are available from policies purchased in 403(b) plans. The Policy
provides the flexibility necessary to permit an owner to devise an annuity that
best fits his or her needs.
Premium payments will be allocated to the Ameritas Variable Life Insurance
Company Separate Account VA-2 ("Account") or to the Fixed Account. The Account
has nineteen Subaccounts, with the assets of each invested in corresponding
portfolios of the Variable Insurance Products Fund, the Variable Insurance
Products Fund II, the Alger American Fund, and/or the MFS Variable Insurance
Trust (collectively the "Funds"). The initial premium payment will be allocated
to the Money Market Subaccount, as of the effective date, for 13 days. After the
expiration of the 13-day period (see page 17) the accumulation value will be
allocated to the Subaccounts or to the Fixed Account as selected by the
Policyowner. The Variable Insurance Products Fund is a mutual fund advised by
Fidelity Management & Research Company ("FMR") with five portfolios: the Money
Market, the High Income, the Equity-Income, the Growth and the Overseas
Portfolios. The Variable Insurance Products Fund II is a mutual fund with five
portfolios, the Asset Manager, the Investment Grade Bond, the Index 500, the
Contrafund, and the Asset Manager: Growth Portfolios. It is also advised by FMR.
The Alger American Fund is a mutual fund with six portfolios, Alger American
Income and Growth, Alger American Small Capitalization, Alger American MidCap
Growth, Alger American Growth, Alger American Leveraged AllCap, and Alger
American Balanced Portfolios. The Alger American Fund is advised by Fred Alger
Management, Inc. ("Alger Management"). MFS Variable Insurance Trust is a
Massachusetts business trust. The Trust has twelve separate portfolios or
series, of which, MFS Emerging Growth Series, MFS Utilities Series, and MFS
World Governments Series are offered. MFS Variable Insurance Trust is advised by
Massachusetts Financial Services Company ("MFS Co."). The accompanying
prospectuses of the funds describe the investment objectives, policies and risks
of each of the portfolios of the funds. The Policy accumulation value will vary
in accordance with the investment performance of the Subaccounts selected by the
owner. Therefore, the owner bears the entire investment risk of monies placed in
the Account under this Policy prior to the annuity date.
This Prospectus sets forth the information that a prospective investor should
know before investing. A Statement of Additional Information about the Policy
and the Account is available free by writing AVLIC at the address above or by
calling 1-800-745-1112. The Statement of Additional Information, which has the
same date as this Prospectus, has been filed with the Securities and Exchange
Commission and is incorporated herein by reference. The table of contents of the
Statement of Additional Information is included at the end of this Prospectus.
This Prospectus Must Be Accompanied Or Preceded By Current Prospectuses For
Variable Insurance Products Fund, Variable Insurance Products Fund II, Alger
American Fund, and MFS Variable Insurance Trust.
These securities are not deposits with, or obligations of, or guaranteed or
endorsed by, any financial institution; and the securities are not insured by
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency. These securities involve investment risk, including the possible
loss of principal.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR BY ANY STATE SECURITIES REGULATORY AUTHORITY NOR HAS THE
COMMISSION OR ANY STATE SECURITIES REGULATORY AUTHORITY PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
Please Read This Prospectus Carefully And Retain It For Future Reference.
The Date of This Prospectus is May 1, 1996.
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
Page
<S> <C>
Definitions............................................................. 3
Fee Table............................................................... 4
Questions and Answers About The Policy.................................. 7
Financial Statements ................................................... 10
Ameritas Variable Life Insurance Company and the Account........... 12
Ameritas Variable Life Insurance Company........................... 12
Ameritas Variable Life Insurance Company Separate Account VA-2..... 12
The Funds.......................................................... 12
Investment Policies and Objectives of the Funds' Portfolios........ 13
Addition, Deletion or Substitution of Investments....................... 16
The Fixed Account....................................................... 16
The Policy.............................................................. 16
Policy Application and Premium Payment............................. 17
Allocation of Premium.............................................. 17
Accumulation Value................................................. 17
Value of Accumulation Units........................................ 18
Transfers.......................................................... 18
Owner Inquiries.................................................... 18
Refund Privilege................................................... 18
Policy Loans....................................................... 18
Charges and Deductions.................................................. 19
Administrative Charges............................................. 19
Mortality and Expense Risk Charge.................................. 19
Contingent Deferred Sales Charge................................... 20
Taxes.............................................................. 20
Fund Investment Advisory Fees and Expenses......................... 21
Distributions Under the Policy.......................................... 21
Full and Partial Withdrawals....................................... 21
Critical Needs Withdrawals......................................... 21
Annuity Date....................................................... 22
Death of Annuitant Prior to Annuity Date .......................... 22
Election of Annuity Income Options................................. 22
Annuity Income Options............................................. 23
Deferment of Payment............................................... 23
General Provisions...................................................... 23
Control of Policy.................................................. 23
Beneficiary........................................................ 24
Change of Beneficiary.............................................. 24
Contestability..................................................... 24
Misstatement of Age or Sex......................................... 24
Reports and Records................................................ 24
Federal Tax Matters..................................................... 24
Introduction....................................................... 24
Taxation of Annuities in General................................... 25
Distribution of the Policies............................................ 26
Safekeeping of the Account's Assets..................................... 26
Third Party Services.................................................... 28
Voting Rights........................................................... 29
Legal Proceedings....................................................... 29
Statement of Additional Information..................................... 29
-
</TABLE>
The Policy, certain portfolios, and certain provisions are not available in all
States.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT BE LAWFULLY MADE. NO DEALER, SALESMAN, OR OTHER PERSON IS
AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION
WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN
OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
<PAGE>
DEFINITIONS
ACCOUNT - Ameritas Variable Life Insurance Company Separate Account VA-2, a
separate investment account established by AVLIC to receive and invest the
premium paid under the Policy. The investment performance of the Account is kept
separate from that of the general assets of AVLIC.
ACCUMULATION UNIT - A unit used to measure the value of the Policy prior to the
annuity date.
ACCUMULATION VALUE - The value of all amounts accumulated under the Policy prior
to the annuity date.
ANNUITANT - The person or persons upon whose life expectancy the Policy is
written. The annuitant may also be the owner of the Policy.
ANNUITY DATE - The date on which annuity payments begin.
ANNUITY INCOME OPTION - One of several ways in which annuity payments may be
made. Payments are based on the cash surrender value as of the annuity date,
less any applicable premium taxes. The dollar amount of each annuity payment
will not change over time, except in the case where the interest payment option
is selected.
ANNUITY PAYMENT - One of a series of payments made under an annuity income
option.
AVLIC ("We, Us, Our") - Ameritas Variable Life Insurance Company, a Nebraska
stock company.
BENEFICIARY - The person to whom any benefits due upon death of the annuitant
are paid. The beneficiary is designated by the owner in the application. If
changed, the beneficiary is as shown in the latest change filed and recorded
with AVLIC. If no beneficiary survives the annuitant, the owner or the owner's
estate will be the beneficiary. The interest of any beneficiary is subject to
that of any assignee.
CASH SURRENDER VALUE - The amount available for full or partial withdrawal,
which is the accumulation value less any withdrawal charge, and applicable
premium taxes and, in the case of a full withdrawal, less a pro rata amount of
the annual policy fee.
CONTINGENT DEFERRED SALES CHARGE - The charge assessed upon certain withdrawals
and annuitizations to cover certain expenses relating to the sale of the
Policies.
DECLARED RATES - AVLIC guarantees that it will credit interest in the Fixed
Account at an effective annual rate of at least 4.5%. AVLIC may, at its sole
discretion declare higher interest rates for amounts allocated or transferred to
the Fixed Account.
DUE PROOF OF DEATH - All of the following must be submitted: (1) A certified
copy of the death certificate; (2) A Claimant Statement; (3) The Policy; and (4)
Any other information that AVLIC may require to establish the validity of the
claim.
EFFECTIVE DATE - The date that the premium payment is applied to purchase a
Policy for the owner.
FIXED ACCOUNT - An account that is a part of AVLIC's general account to which
all or a portion of premium payments may be allocated for accumulation at fixed
rates of interest.
FUNDS - The Variable Insurance Products Fund ("Fidelity Fund"), Variable
Insurance Products Fund II ("Fidelity Fund II") (collectively the "Fidelity
Funds"), the Alger American Fund, ("Alger American Fund"), and the MFS Variable
Insurance Trust ("MFS Fund" or "MFS") are the funds available for investment as
of the date of this Prospectus. In the future, additional funds may be added or
subtracted by AVLIC as the available funding options. The Funds have one or more
portfolios. There is a portfolio that corresponds to each of the Subaccounts of
the Account.
JOINT ANNUITANT - The person other than the annuitant who may be designated by
the owner and on whose life annuity payments may also be based.
NET CASH SURRENDER VALUE - The cash surrender value less premium tax, if any.
NONQUALIFIED POLICIES - Policies that do not qualify for special federal income
tax treatment.
OWNER - The owner of the Policy, as designated in the application or as
subsequently changed. If a Policy has been absolutely assigned, the assignee is
the owner. A collateral assignee is not the owner.
PAYEE - The owner, annuitant, beneficiary, or any other person, estate, or legal
entity to whom benefits are to be paid.
POLICY - The variable annuity policy offered by AVLIC and described in this
Prospectus.
POLICY DATE - The date set forth in the Policy that is the date used to
determine policy anniversary dates and policy years. Policy anniversaries are
measured from the policy date.
POLICY YEAR - The period from one policy anniversary date until the next policy
anniversary date.
<PAGE>
PORTFOLIO - The separate investment portfolios of the Fidelity Fund, the
Fidelity Fund II, the Alger American Fund, and the MFS Fund . The Fidelity Fund
currently has five portfolios: The Money Market, the High Income, the
Equity-Income, the Growth, and the Overseas Portfolios. The Fidelity Fund II has
five portfolios: Asset Manager, Investment Grade Bond, Index 500, Contrafund,
and Asset Manager: Growth Portfolios. The Alger American Fund has six
portfolios: the Alger American Income and Growth ("Income and Growth"), the
Alger American Small Capitalization ("Small-Cap"), Alger American MidCap Growth
("MidCap"), Alger American Growth ("Alger American Growth"), Alger American
Leveraged AllCap ("Leveraged AllCap"), and Alger American Balanced ("Balanced")
Portfolios. MFS Variable Insurance Trust, ("MFS Fund" or "MFS"), is a
Massachusetts business trust. The Trust has twelve separate portfolios or
series, of which, MFS Emerging Growth Series ("MFS Emerging Growth"), MFS
Utilities Series ("MFS Utilities"), and MFS World Governments Series ("MFS World
Governments") are offered.
PREMIUM PAYMENT - Under the Policy, the first-year premium payment must be
$2,000 or more and subsequent payments must be $500 or more. Smaller premium
payments may be accepted on Bank-O-Matic or at AVLIC's discretion.
QUALIFIED POLICIES - Policies purchased in connection with certain plans that
qualify for special federal income tax treatment.
SUBACCOUNT - A subdivision of the Account. Each Subaccount invests exclusively
in the shares of a specified portfolio of the Fund.
SUCCESSOR OWNER - The person who may be designated by the owner and to whom
Policy ownership passes upon the owner's death.
VALUATION DATE - A valuation date is each day on which the New York Stock
Exchange is open for trading.
VALUATION PERIOD - The period between two successive valuation dates, commencing
at the close of trading on the New York Stock Exchange ("NYSE") on one valuation
date and ending at the close of trading on the NYSE on the next succeeding
valuation date.
FEE TABLE
Contract Owner Transaction Expenses
This table is to assist the Policyowner to understand the various costs and
expenses that the Policyowner will bear, directly and indirectly at both the
Separate Account and portfolio level. The table does not include possible state
premium taxes.
Sales Load Imposed on Purchases....................................... 0%
Contingent Deferred Sales Charge-on premiums paid only (Maximum)...... 6.0%
% Year % Year
6.................1 4..................5
6.................2 3..................6
6.................3 2..................7
5.................4 0..................8+
Surrender Fees........................................................ 0%
Exchange Fee.......................................................... 0%
Transfer Fee (after 12 free transfers annually)....................... $10
Annual Policy Fee (up to $50, currently $30).......................... $30
Annual Administrative Fees and Expenses............................... .20%
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE ACCOUNT VALUE).
Mortality and Expense Risk Fees....................................... 1.25%
(See "Charges and Deductions," page 19.)
<PAGE>
<PAGE>
FUND MANAGEMENT FEES
Fee information relating to the underlying funds was provided to AVLIC by the
underlying funds. AVLIC has not independently verified the information received
from the underlying funds.
Fidelity Management & Research Company (FMR) is the Manager for the Fidelity
Funds. Each portfolio pays FMR a monthly fee for managing its investment and
business affairs.
Fred Alger Management Inc. ("Alger Management") serves as the Alger American
Fund investment manager. Each portfolio pays Alger Management a separate fee
computed daily and paid monthly at annual rates based upon a percentage of the
value of the relevant portfolio's daily net assets.
Massachusetts Financial Services Company ("MFS Co."), a Delaware Corporation, is
the investment adviser to each series of the MFS Variable Insurance Trust.
EXPENSE SUMMARY
The amount of expenses borne by each portfolio for the fiscal year ended
December 31, 1995, was as follows:
<TABLE>
<CAPTION>
Investment Advisory
Portfolio and Management Other Expense Total
- ------------- ---------------------- ----------------- --------
Fidelity
- -------------
<S> <C> <C> <C>
Money Market .24% .09% .33%
High Income .60% .11% .71%(1)
Equity-Income .51% .10% .61%
Growth .61% .09% .70%
Overseas .76% .15% .91%
Asset Manager .71% .08% .79%(1)
Investment Grade Bond .45% .14% .59%
Index 500 .00% .28% .28%(2)
Contrafund .61% .11% .72%(1)
Asset Manager Growth .71% .29% 1.00%(1, 2)
Alger American (3)
- ------------------
Income and Growth .625% .125% .75%
Balanced .75% .25% 1.00%
Small Cap .85% .07% .92%
MidCap Growth .80% .10% .90%
Growth .75% .10% .85%
Leveraged AllCap .85% .71% 1.56%
MFS
- ---
Emerging Growth Series .75% .25% 1.00%(4)
Utilities Series .75% .25% 1.00%(4)
World Governments Series .75% .25% 1.00%(5)
</TABLE>
(1) A portion of the brokerage commissions the fund paid was used to reduce
its expenses. Without this reduction total operating expenses would have
been (for High Income: 0.71% (please note there were brokerage
commissions paid, but it did not affect the ratio); for Asset Manager
0.81%; for Asset Manager:
Growth 1.13% ; and for Contrafund: 0.73%)
(2) The fund's expenses were voluntarily reduced by the fund's investment
adviser. Absent reimbursement, management fee, other expenses, and total
expenses would have been (Index 500 Portfolio) 0.28%, 0.19% and 0.47%,
respectively; and (Asset Manager: Growth) 0.71%, 0.42% and 1.13%,
respectively.
(3) Alger Management has agreed to reimburse the portfolios to the extent
that the annual operating expenses (excluding interest, taxes, fees for
brokerage services and extraordinary expenses) exceed respectively; Alger
American Income and Growth, and Alger American Balanced, 1.25%; Alger
American Small-Cap, Alger American MidCap, Alger American Leveraged All
Cap, and the Alger American Growth, 1.50%. As long as the expense
limitations continue for a portfolio, if a reimbursement occurs, it has
the effect of lowering
the portfolio's expense ratio and increasing its total return.
(4) MFS Co. has agreed to bear, subject to reimbursement, expenses for each
of the Emerging Growth Series and the Utilities Series such that each
Series' aggregate operating expenses shall not exceed, on an annualized
basis, 1.00% of the average daily net assets of the Series from November
2, 1994 through December 31, 1996, provided however, that this obligation
may be terminated or revised at any time. Absent this expense
arrangement, "Other Expenses" and "Total Operating Expenses" would be
2.16% and 2.91%, respectively, for the Emerging Growth Series and 2.33%
and 3.08%, respectively, for the Utilities Series.
<PAGE>
(5) MFS Co. has agreed to bear, subject to reimbursement, expenses of the
World Governments Series such that the Series' aggregate operating
expenses do not exceed 1.00%, on an annualized basis, of its average
daily net assets. Absent this expense arrangement, "Other Expenses" and
"Total Operating Expenses" for the World Governments Series would be
1.24% and 1.99%, respectively.
EXAMPLE: If you surrender your contract at the end of the applicable time period
you would pay the following expenses on a $1,000 investment, assuming 5% annual
return on assets:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Money Market.................... $80 $120 $143 $222
High Income..................... $83 $132 $163 $261
Equity-Income................... $82 $129 $158 $251
Growth.......................... $83 $131 $162 $260
Overseas........................ $85 $138 $173 $281
Asset Manager................... $84 $134 $167 $269
Investment Grade Bond........... $82 $128 $157 $249
Index 500....................... $79 $119 $141 $217
Contrafund...................... $83 $132 $163 $262
Asset Manager: Growth........... $86 $140 $177 $290
Income and Growth .............. $84 $133 $165 $265
Balanced........................ $86 $140 $177 $290
Small Cap ...................... $85 $138 $173 $282
MidCap.......................... $85 $137 $172 $280
Alger American Growth........... $85 $136 $170 $275
Leveraged AllCap................ $92 $157 $205 $344
MFS Emerging Growth............. $86 $140 $177 $290
MFS Utilities................... $86 $140 $177 $290
MFS World Governments........... $86 $140 $177 $290
</TABLE>
EXAMPLE: If you annuitize at the end of the applicable time period you would pay
the following expenses on a $1,000 investment, assuming 5% annual return on
assets:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
----------- ------------- ------------- ----------
<S> <C> <C> <C> <C>
Money Market.................... $80 $60 $103 $222
High Income..................... $83 $72 $123 $261
Equity-Income................... $82 $69 $118 $251
Growth.......................... $83 $71 $122 $260
Overseas........................ $85 $78 $133 $281
Asset Manager................... $84 $74 $127 $269
Investment Grade Bond........... $82 $68 $117 $249
Index 500....................... $79 $59 $101 $217
Contrafund...................... $83 $72 $123 $262
Asset Manager: Growth........... $86 $80 $137 $290
Income and Growth .............. $84 $73 $125 $265
Balanced........................ $86 $80 $137 $290
Small Cap ...................... $85 $78 $133 $282
MidCap.......................... $85 $77 $132 $280
Alger American Growth........... $85 $76 $130 $275
Leveraged AllCap................ $92 $97 $165 $344
MFS Emerging Growth............. $86 $80 $137 $290
MFS Utilities................... $86 $80 $137 $290
MFS World Governments........... $86 $80 $137 $290
</TABLE>
<PAGE>
EXAMPLE: If you do not surrender your contract you would pay the following
expenses on a $1,000 investment, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
----------- ------------- ------------- ----------
<S> <C> <C> <C> <C>
Money Market.................... $20 $60 $103 $222
High Income..................... $23 $72 $123 $261
Equity-Income................... $22 $69 $118 $251
Growth.......................... $23 $71 $122 $260
Overseas........................ $25 $78 $133 $281
Asset Manager................... $24 $74 $127 $269
Investment Grade Bond........... $22 $68 $117 $249
Index 500....................... $19 $59 $101 $217
Contrafund...................... $23 $72 $123 $262
Asset Manager: Growth........... $26 $80 $137 $290
Income and Growth .............. $24 $73 $125 $265
Balanced........................ $26 $80 $137 $290
Small Cap ...................... $25 $78 $133 $282
MidCap.......................... $25 $77 $132 $280
Alger American Growth........... $25 $76 $130 $275
Leveraged AllCap................ $32 $97 $165 $344
MFS Emerging Growth............. $26 $80 $137 $290
MFS Utilities................... $26 $80 $137 $290
MFS World Governments........... $26 $80 $137 $290
</TABLE>
The examples assume an average $30,000 annuity investment. The examples should
not be considered a representation of past or future expenses. Actual expenses
may be greater or lesser than those shown and will vary according to the
portfolio(s) selected.
QUESTIONS AND ANSWERS ABOUT THE POLICY
NOTE: The following section contains brief questions and answers about the
Policy. Reference should be made to the body of this Prospectus for more
detailed information. With respect to qualified policies, it should be noted
that the requirements of a particular retirement plan, an endorsement of the
Policy, or limitations or penalties imposed by the Internal Revenue Code may
impose limits or restrictions on premiums, withdrawals, distributions, or
benefits, or on other provisions of the Policies, and this Prospectus does not
describe any such limitations or restrictions. See "Federal Tax Matters," page
24. Also "you" or "your" refers to the owner; "we," "us" or "our" refers to
Ameritas Variable Life Insurance Company.
1. WHAT IS THE PURPOSE OF THE POLICY?
The Policy seeks to allow you to accumulate funds based on the investment
experience of the assets underlying the Policy, in the Account or the Fixed
Account, on a tax-deferred basis and to receive annuity payments when
desired. Once payments commence under an annuity income option, the annuity
payments do not depend on the investment experience of the Policy's
underlying assets. Instead, the amount of the payments is set as of the
annuity date and does not change over the annuity payment period, unless an
interest payment option is selected. The Policy may be purchased on a
non-tax qualified basis ("nonqualified policy.") The Policy may also be
purchased in connection with certain plans qualifying for favorable federal
income tax treatment ("qualified policy"). The owner can allocate premium
payments to one or more Subaccounts of the Ameritas Variable Life Insurance
Company Separate Account VA-2 (the "Subaccounts"), each of which will
invest in a corresponding portfolio of the Funds, or to the Fixed Account.
Because the accumulation value depends on
<PAGE>
the investment experience of the selected Subaccounts, the owner bears the
investment risk under this Policy for monies placed in Subaccounts prior to
the annuity date.
2. WHAT IS AN ANNUITY AND WHAT ANNUITY OPTIONS ARE AVAILABLE?
An annuity provides for a series of periodic payments beginning on the
annuity date, based on the net cash surrender value on the annuity date, to
be paid to the designated payee. The owner may select from a number of
annuity income options, including annuity payments for the life of an
annuitant (or an annuitant and another person, the joint annuitant) with or
without a guaranteed number of annuity payments, or for a designated
period, for a designated amount, or for an interest payment option. The
annuity payments remain the same throughout the payment period, unless an
interest payment option is selected.
The owner also has some flexibility in choosing the annuity date; however,
without AVLIC's prior approval, payments must begin no later than the first
day of the month after the annuitant's 95th birthday (90th in Oregon). (See
"Annuity Date," page 22 and "Annuity Income Options," page 23.)
3. WHAT TYPES OF INVESTMENTS UNDERLIE THE ACCOUNT?
Currently, the assets supporting the Policies prior to the annuity date are
invested exclusively in shares of the Funds or in the Fixed Account. The
Fidelity Fund currently has five portfolios: the Money Market, High Income,
Equity-Income, Growth, and Overseas Portfolios. The Fidelity Fund II has
five portfolios: the Asset Manager, Investment Grade Bond, Index 500,
Contrafund, and Asset Manager: Growth Portfolios. The Alger American Fund
has six portfolios: the Income and Growth; Small-Cap; MidCap; Alger
American Growth, Leveraged AllCap; and Balanced Portfolios. The MFS Fund
has twelve separate portfolios or series, of which, MFS Emerging Growth,
MFS Utilities, and MFS World Governments are offered. Each of the nineteen
Subaccounts of the Account invests solely in the corresponding portfolio of
the Funds. The assets of each portfolio are held separately from the other
portfolios and each has distinct investment objectives and policies which
are described in the accompanying prospectuses for the Funds.
(See "The Funds," page 12.)
4. INVESTMENTS IN THE FIXED ACCOUNT.
Premium payments allocated to the Fixed Account are placed in the general
account of AVLIC which supports insurance and annuity obligations.
Policyowners are paid interest on the amounts placed in the Fixed Account
at guaranteed rates (4.5%) or at higher "declared rates." (See "Fixed
Account," page 16).
5. HOW DO I PURCHASE A POLICY?
You may purchase a Policy with a first-year premium payment of at least
$2,000. You may make subsequent premium payments of $500 or more. Smaller
premium payments may be accepted on Bank-O-Matic or at AVLIC's discretion.
The total of all premium payments made under annuity contracts having the
same annuitant may not exceed $1,000,000 without AVLIC's prior approval.
(See "Policy Application and Premium Payment," page 17.)
6. HOW MAY I ALLOCATE THE PREMIUM PAYMENT?
On the effective date of the Policy, the premium paid is allocated to the
Money Market Subaccount. Thirteen days after the effective date, the
accumulation value is allocated among the Subaccounts or Fixed Account in
accordance with the allocation instructions designated by the owner in the
application. (See "Allocation of Premium," page 17.)
7. CAN I TRANSFER AMOUNTS?
Transfers of the accumulation value among the Subaccounts of the Account
can be made 12 times each policy year without charge. A transfer charge may
be imposed each additional time amounts are transferred between Subaccounts
and will be deducted from the amount transferred. The maximum transfer
charge is $10.00 per transfer. Transfers must be at least $250, or, if
less, the entire value of the Subaccount from which the transfer is made.
The minimum amount which can remain in a Subaccount as a result of a
transfer is $100.00. Any amount below this minimum must be included in the
amount transferred. Transfers may also be made from the Subaccounts to the
Fixed Account. Up to one hundred percent of the amount deposited in the
Fixed Account plus interest thereon may be transferred out of the Fixed
Account during the 30 day period following the yearly anniversary of the
date of the policy. Transfers from the Fixed Account are free and will not
be considered one of the 12 free yearly transfers. (See "Transfers," page
18.)
<PAGE>
8. CAN I GET TO MY MONEY IF I NEED IT?
All or part of the accumulation value of the Policy may be withdrawn before
the earlier of the annuitant's death or the annuity date. Policy loans are
available from policies purchased in 403(b) plans. The withdrawal right may
be restricted by Section 403(b)(11) of the IRS code, if the annuity is used
in connection with a Section 403(b) retirement plan. Amounts withdrawn may
also be subject to a contingent deferred sales charge depending upon the
size of the withdrawal, the Policy accumulation value, and the time since
the Policy premiums were deposited. A policyowner may withdraw that portion
of the policy accumulation value that exceeds the total premiums deposited
without a contingent deferred sales charge. Thereafter, unless waived, a
contingent deferred sales charge is assessed only on premiums paid based
upon the number of years since the premiums withdrawn were paid, on a first
paid, first withdrawn basis. The contingent deferred sales charge is a
maximum of 6% of the premium payment withdrawn and grades to 0% after the
seventh year after the withdrawn premiums were deposited. (See "Contingent
Deferred Sales Charge," page 20.) WE GUARANTEE THAT THIS CHARGE WILL NOT BE
INCREASED. In addition, upon a full withdrawal the owner will be assessed a
pro rata portion of the annual policy fee. (See "Annual Policy Fee," page
19.) Certain withdrawals may also be subject to a federal penalty tax as
well as federal income tax. (See, "Federal Tax Matters," page 24.) Full or
partial withdrawals from the Fixed Account may be deferred for up to 6
months from the date of written request.
9. WHAT ARE THE CHARGES UNDER MY POLICY?
In order to permit investment of the entire premium payment, we currently
do not deduct sales charges at the time of investment. However, unless
waived, a contingent deferred sales charge, as described above, is imposed
on certain full or partial withdrawals of the Policies and annuitization to
cover certain expenses relating to the sale of the Policies, including
commissions to registered representatives and other promotional expenses.
(See "Contingent Deferred Sales Charge," page 20.) We will, when taxes,
including premium taxes, are imposed by state law upon the receipt of the
premium payment, deduct such taxes on receipt of the payment. If, instead,
premium taxes are imposed upon annuitization, such taxes will be deducted
at that time. (See "Taxes," page 20.) In addition, an annual administration
fee of .20% of the year end balance of the accumulation value is deducted
to cover administrative expenses, and the policyowner may be charged a
$10.00 per transfer fee after the 12 free transfers of each policy. (See
"Annual Administration Fee," and "Transfers," pages 19 and 18.) Certain
other charges are deducted under the Policy to cover administrative
expenses of operating the Policy and mortality and expense risks. These
charges include a daily charge at the annual rate of 1.25% of average daily
net assets of the Account plus an annual charge which is currently $30.00.
Mortality and expense risk charges are not charged against the Fixed
Account. (See "Mortality and Expense Risk Charge," page 19 and "Annual
Policy Fee," page 19.)
10. WHAT HAPPENS IF THE ANNUITANT DIES BEFORE THE ANNUITY DATE?
In the event that the annuitant dies prior to the annuity date, upon due
proof of death, the death benefit becomes payable. The death benefit may be
paid as either a lump sum cash benefit or under an annuity income option.
(See "Death of Annuitant Prior to Annuity Date," page 22.)
11. WHAT HAPPENS IF THE OWNER DIES BEFORE THE ANNUITY DATE?
In the event that the owner (or joint owner) dies prior to the annuity
date, his or her entire interest in the Policy will be distributed within
five years after the date of death. If the person to whom ownership passes,
the owner's designated beneficiary, chooses to take his or her interest as
an annuity, to be paid to himself or herself or for his or her benefit,
then under certain circumstances, that portion is treated as distributed on
the date distributions begin. Special rules apply where the owner's
designated beneficiary is the surviving spouse of the deceased owner.
(These provisions are described in greater detail in the Statement of
Additional Information see "IRS Required Distributions," page 7.)
12. CAN THE POLICY BE RETURNED AFTER IT IS DELIVERED?
The owner is granted a period of time to examine a Policy and return it for
a refund. The owner may cancel the Policy within the period specified on
the policy form, which is within 10 days after the owner receives the
Policy, unless the particular state in which the Policy is sold requires a
longer period. The refund will be the greater of the premiums paid or the
premiums paid adjusted by investment gains and losses. (See "Refund
Privilege," page 18.)
13. WHO DO I CALL IF I HAVE QUESTIONS ABOUT MY ANNUITY?
Any questions about procedures or your Policy will be answered by us at One
Ameritas Way, 5900 "O" Street, P.O. Box 82550, Lincoln, Nebraska, 68501, or
by calling 1-800-745-1112. All inquiries should include the policy number
and the owner's name. In addition, confirmations will be mailed to the
owner for any transactions that take place, and an annual report will be
sent once each policy year showing the accumulation value in each
Subaccount, and any charges, transfers or withdrawals during the year.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
The financial statements for AVLIC and the Account (as well as the auditors'
report thereon) are in the Statement of Additional Information.
ACCUMULATION UNIT VALUES
Following are the accumulation unit values for the Subaccounts as of October 23,
1987, when the Account commenced business; December 31, 1987, 1988, 1989, 1990,
1991, 1992, 1993, 1994 and 1995. The number of outstanding accumulation units in
each Subaccount as of December 31, 1987, 1988, 1989, 1990, 1991, 1992, 1993,
1994 and 1995 are also shown:
Accumulation Unit
as of: 10-23-87 12-31-87 12-31-88 12-31-89 12-31-90 12-31-91 12-31-92 12-31-93 12-31-94 12-31-95
-------- -------- -------- -------- -------- --------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market - - 1.020 1.099 1.173 1.000 1.262 1.286 1.325 1.385
High Income 9.500 9.742 10.750 10.167 9.797 9.550 15.910 18.938 18.414 21.896
Equity-Income - - 11.315 13.118 10.971 11.850 16.460 19.217 20.322 27.112
Growth 9.840 10.364 11.853 15.380 13.399 18.510 20.795 24.517 24.207 32.375
Overseas 9.240 9.457 10.099 12.597 12.216 13.100 11.507 15.601 15.674 16.964
Asset Manager* - - - 10.523 12.550 14.076 16.830 15.609 18.030
Inv. Grade Bond** - - - - 11.080 12.074 13.232 12.577 14.574
Index 500***** - - - - - - - - - 75.455
Contrafund***** - - - - - - - - - 13.903
Asset Manager:
Growth***** - - - - - - - - - 12.270
Income and
Growth*** - - - - - - 13.831 15.073 13.654 18.224
MidCap**** - - - - - - - 13.563 13.190 18.820
Small Cap*** - - - - - - 27.043 30.286 28.603 40.773
Balanced**** - - - - - - - 11.499 10.872 13.813
Alger American
Growth*** - - - - - - 20.017 24.209 24.259 32.678
Leveraged
AllCap***** - - - - - - - - - 17.358
MFS Emerging
Growth***** - - - - - - - - - 11.693
MFS Utilities***** - - - - - - - - - 13.345
MFS World
Governments***** - - - - - - - - - 11.184
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF ACCUMULATION UNITS
OUTSTANDING
AS OF: 12-31-87 12-31-88 12-31-89 12-31-90 12-31-91 12-31-92 12-31-93
----------- ------------ ------------ ---------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market - 157,416.729 208,280.871 11,911,544.496 15,150,911.120 23,516,860.733 24,394,597.763
High Income 155.907 15,646.599 52,878.092 75,439.485 429,942.219 404,678.129 780,485.192
Equity-Income - 15,337.513 79,609.928 536,146.361 873,089.237 1,090,217.227 1,692,367.958
Growth 1,251.918 3,944.769 4,476.273 344,241.440 832,635.695 1,058,120.400 1,930,905.248
Overseas 109.209 2,271.707 72,009.171 214,204.062 261,859.646 452,257.534 1,680,013.325
Asset Manager* - - - 187,701.160 1,037,390.785 2,461,567.482 5,540,619.649
Inv. Grade Bond** - - - - 151,044.569 799,187.033 1,220,611.462
Index 500***** - - - - - - -
Contrafund***** - - - - - -
Asset Manager:
Growth***** - - - - - - -
Income and
Growth*** - - - - - 33,407.531 98,620.982
MidCap**** - - - - - - 91,504.219
Small Cap*** - - - - - 222,600.706 539,880.302
Balanced**** - - - - - - 34,686.690
Alger American
Growth*** - - - - - 61,910.658 166,606.094
Leveraged
AllCap***** - - - - - - -
MFS Emerging
Growth***** - - - - - - -
MFS Utilities***** - - - - - -
MFS World
Governments***** - - - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
12-31-94 12-31-95
--------------- --------------
<S> <C> <C>
Money Market 48,755,227.272 41,390,848.004
High Income 1,076,076.694 1,638,820.985
Equity Income 2,332,200.380 4,341,950.825
Growth 2,448,226.330 2,680,503.815
Overseas 2,050,429.513 2,693,065.371
Asset Manager* 7,758,786.28 6,384,770.138
Inv. Grade Bond** 1,185,301.88 1,584,105.144
Index 500 - 8,789.710
Contrafund - 179,239.249
Asset Manager:
Growth***** - 18,219.455
Income and
Growth *** 172,001.664 366,345.060
MidCap**** 268,394.026 793,128.739
Small Cap*** 671,144.393 1,084,733.736
Balanced**** 94,786.818 182,890.799
Alger American
Growth*** 641,126.689 743,312.674
Leveraged
All Cap***** - 59,364.752
MFS Emerging
Growth***** - 80,881.596
MFS Utilities***** - 40,557.341
MFS World
Governments***** - 15,779.622
</TABLE>
* No activity prior to December 31, 1989.
** No activity prior to December 31, 1990.
*** No activity prior to December 31, 1991.
**** No activity prior to December 31, 1992.
***** No activity prior to December 31, 1994.
<PAGE>
AVLIC AND THE ACCOUNT
AMERITAS VARIABLE LIFE INSURANCE COMPANY
Ameritas Variable Life Insurance Company ("AVLIC") is a stock life insurance
company organized in the State of Nebraska. AVLIC was incorporated on June 22,
1983 and commenced business December 29, 1983. AVLIC is currently licensed to
sell life insurance in 46 states and the District of Columbia. AVLIC's financial
statements may be found at page 11 of the Statement of Additional Information.
AVLIC is a wholly-owned subsidiary of Ameritas Life Insurance Corp. ("Ameritas
Life"). Ameritas Life is a mutual life insurance company domiciled in Nebraska
since 1887. AVLIC, as a wholly-owned subsidiary of Ameritas Life, has a rating
of A+ (Superior) from A.M. Best Company, a firm that analyzes insurance
carriers. Ameritas Life enjoys a long standing A+ (Superior) rating from A.M.
Best. Ameritas Life also has an AA ("Excellent") rating from Standard & Poor's
for claims paying ability. The Home Offices of both AVLIC and Ameritas Life are
at One Ameritas Way, 5900 "O" Street, P.O. Box 82550, Lincoln, Nebraska 68501.
Ameritas Life and subsidiaries had total assets at December 31, 1995 of over
$2.4 billion. Ameritas Life guarantees the obligations of AVLIC. This guarantee
will continue until AVLIC is recognized by a National Rating Agency as having a
financial rating equal to or greater than Ameritas Life, or until AVLIC is
acquired by another insurance company who has a financial rating equal to or
greater than Ameritas Life and who agrees to assume the guarantee.
AVLIC voted to approve a Merger Agreement with Ameritas Life ("Agreement") at
its December 5, 1994, board meeting. The merger was scheduled to occur on May 1,
1995, or such later date as the required regulatory approvals could be obtained.
On March 31, 1995, the company determined to postpone the merger to evaluate its
options in light of the present regulatory climate. On February 27, 1996, AVLIC
determined to postpone the merger indefinitely.
AVLIC may publish in advertisements and reports to Policyowners, the ratings and
other information assigned it, by one or more independent rating services. The
purpose of the ratings is to reflect the financial strength and/or claims-paying
ability of AVLIC. The ratings do not relate to the performance of the separate
account. Further AVLIC may publish charts and other information concerning
dollar cost averaging, tax-deference and other investment methods.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
AVLIC established the Ameritas Variable Life Insurance Company Separate Account
VA-2 (the "Account") on May 28, 1987, under Nebraska law as a separate
investment account. This Account holds assets that are segregated from all of
AVLIC's other assets and are not chargeable with liabilities arising out of any
other business AVLIC may conduct. Income, gains, or losses of the Account are
credited without regard to other income, gains, or losses of AVLIC. Although the
assets maintained in the Account will not be charged with any liabilities
arising out of AVLIC's other business all obligations arising under the policies
are liabilities of AVLIC who will at all times maintain assets in the Account
with a total market value at least equal to the reserve and other contract
liabilities for the Account. The Account will at all times contain assets equal
to or greater than account values invested in the separate account.
Nevertheless, to the extent assets in the Account exceed AVLIC's liabilities in
the Account, AVLIC may, from time to time, withdraw the assets available to
cover general account obligations.
The Account is registered with the Securities and Exchange Commission ("SEC")
under the Investment Company Act of 1940 ("1940 Act") as a unit investment
trust, which is a type of investment company. This does not involve any SEC
supervision of the management or investment policies or practices of the
Account. For state law purposes, the Account is treated as a Division of AVLIC.
THE FUNDS
There are currently nineteen Subaccounts within the Account which support the
Policies, and each invests only in a corresponding portfolio of the Fidelity
Fund, the Fidelity Fund II, the Alger American Fund, and/ or the MFS Fund
(collectively the "Funds").
As of May 1, 1996, The Dreyfus Stock Index Fund is no longer an investment
option under the contract. Funds allocated to the Dreyfus Stock Index Fund as of
April 30, 1996 may remain invested in that portfolio. If transferred out of the
Dreyfus Stock Index portfolio, however, reinvestment into that portfolio will
not be an option. AVLIC eventually intends to file an application with the
Securities and Exchange Commission to substitute the shares of another portfolio
for shares of the Dreyfus Stock Index Fund.
<PAGE>
The Funds are registered with the SEC under the 1940 Act as open-end management
investment companies. The registrations do not involve SEC supervision of the
management or investment practices or policies of the Funds. The assets of each
portfolio of the Funds are held separately from the assets of the other
portfolios. Thus, each portfolio operates as a separate investment portfolio,
and the income or losses of one portfolio generally have no effect on the
investment performance of any other portfolio.
The investment objectives and policies of each portfolio are summarized below.
There is no assurance that any of the portfolios will achieve their stated
objectives. More detailed information about the Funds, including a description
of risks, charges and expenses is in the prospectuses for the Funds, which must
accompany or precede this Prospectus. All underlying fund information, including
Fund prospectuses, has been provided to AVLIC by the underlying Funds. AVLIC has
not independently verified this information. One or more of the Portfolios may
employ investment techniques that involve certain risks, including investing in
non-investment grade, high risk debt securities, entering into repurchase
agreements and reverse repurchase agreements, lending portfolio securities,
engaging in "short sales against the box," investing in instruments issued by
foreign banks, entering into firm commitment agreements and investing in
warrants and restricted securities. The Alger American Leveraged AllCap
Portfolio may employ "leverage" by borrowing money to increase its portfolio of
securities, and may purchase or sell options and enter into futures contracts on
securities indexes to increase gain or to hedge the value of the Portfolio. The
High Income, Equity-Income, Asset Manager: Growth and Asset Manager Portfolios
may invest in non-investment grade, high risk debt securities. These
Prospectuses should be read carefully together with this Prospectus and
retained.
Each owner should periodically consider the allocation among the Subaccounts in
light of current market conditions and the investment risks attendant to
investing in the Funds' various portfolios.
Since the Funds are designed to provide an investment vehicle for variable
annuity and variable life insurance contracts of various insurance companies and
will be sold to separate accounts of other insurance companies as investment
vehicles for various types of variable life insurance policies and variable
annuity contracts, there is a possibility that a material conflict may arise
between the interests of the Account and one or more of the separate accounts of
another participating insurance company. In the event of a material
irreconcilable conflict, the affected insurance companies agree to take any
necessary steps, including removing its separate accounts from the Funds, to
resolve the matter. The risks of such mixed and shared funding are described
further in the prospectuses of the Funds.
INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS' PORTFOLIOS
FIDELITY FUNDS
- --------------
PORTFOLIO INVESTMENT POLICY OBJECTIVES
- ------------------ --------------------------- -------------------------
Money Market1 High-quality U.S. dollar Seeks to obtain as high
denominated money market a level of current income
instruments of domestic and as is consistent with
foreign Issuers.(Commercial preserving capital and
Paper, Certificate of providing liquidity.
Deposit).
High Income1 At least 65% in income Seeks to obtain a high
producing debt securities level of current income
and preferred stocks, up to by investing in high
20% in common stocks and income producing lower-
other equity securities, rated debt securities
and up to 15% in securities (sometimes called "junk
subject to restriction on bonds"), preferred stocks
resale. including convertible
securities and restricted
securities.
Equity-Income1 At least 65% in income Seeks reasonable income
producing common or prefer- by investing primarily in
red stock. The remainder income producing equity
will normally be invested securities. The goal is
in convertible and non- to achieve a yield in
convertible debt obligations. excess of the composite
yield of the Standard &
Poor's 500 Composite
Stock Price Index.
Growth1 Portfolio purchases normally Seeks to achieve capital
will be common stocks of appreciation.
both well-known established
companies and smaller, less-
known companies, although
the investments are not
restricted to any one type
of security. Dividend
income will only be consid-
ered if it might have an
effect on stock values.
<PAGE>
Overseas1 At least 65% invested in Seeks long-term growth
securities of issuers of capital primarily
outside of North America. through investments in
Most issuers will be foreign securities.
located in developed coun-
tries in the Americas, the
Far East and Pacific Basin,
Scandinavia and Western
Europe. While the primary
purchases will be common
stocks, all types of
securities may be purchased.
Asset Manager2 Equities (Growth, High Div- Seeks to obtain high
idends, Utility), bonds total return with
(Government, Agency, Mort- reduced risk over the
gage backed, Convertible long term by allocating
and Zero Coupon) and money its assets among domes-
market instruments. tic and foreign stocks,
bonds, and short-term
fixed-income securities.
Investment
Grade Bond2 A portfolio of investment Seeks as high a level of
grade fixed-income secu- current income as is con-
rities with an average mat- sistent with the preser-
urity of ten years or less. vation of capital.
Index 500 2 At least 80% (65% if fund Seeks investment results
assets are below $20 that correspond to the
million) in equity secu- total return of common
rities of companies that stocks publicly traded in
compose the Standard & the United States, as
Poor's 500. Also purchases represented by the
short-term debt securities Standard & Poor's 500.
for cash management pur-
poses and uses various in-
vestment techniques, such
as futures contracts, to
adjust its exposure to the
Standard & Poor's 500.
Contrafund2 Portfolio purchases will Seeks long-term capital
normally be common stock or appreciation.
securities convertible into
common stock of companies
believed to be undervalued
due to an overly pessimis-
tic appraisal by the public.
Asset Manager:
Growth2 Focuses on stocks for high Seeks to maximize total
potential returns but also return by allocating its
purchases bonds and short- assets among stocks,
term instruments. bonds, short-term instru-
ments and other invest-
ments.
ALGER AMERICAN
- --------------
FUNDS
- -----
PORTFOLIO INVESTMENT POLICY OBJECTIVES
- ------------------ --------------------------- -------------------------
Income and The Portfolio attempts to Seeks to provide a high
Growth invest 100% of its assets, level of dividend income
except during temporary to the extent consistent
defensive periods, and it with prudent investment
is a fundamental policy of management. Capital ap-
the Portfolio to invest at preciation is a secondary
least 65% of its assets in objective of the Port-
dividend paying equity folio.
securities that are listed
on a national exchange or
in securities convertible
into dividend paying equity
securities.
Balanced The Portfolio will invest Seeks current income and
its assets in common stocks long-term capital apprec-
and investment grade pre- iation by investing in
ferred stock and debt sec- common stocks and fixed
urities as well as sec- income securities, with
urities convertible into emphasis on income pro-
common stocks. Except dur- ducing securities which
ing defensive periods, it appear to have some
is anticipated that 25% of potential for capital
the portfolio assets will appreciation.
be invested in fixed income
senior securities.
Small-Cap Except during temporary Seeks long-term capital
defensive periods, the appreciation.
Portfolio invests at least
65% of its total assets in
equity securities of
companies that, at the time
of purchase of the secur-
ities, have total market
capitalization within the
range of companies included
in the Russell 2000 Growth
Index, updated quarterly.
The Russell 2000 Growth
Index is designed to track
the performance of small
capitalization companies.
The Portfolio may invest up
to 35% of its total assets
in equity securities of
companies that, at the time
of purchase, have total
market capitalization
outside the range of com-
panies included in the
Russell 2000 Growth Index
and in excess of that amount
(up to 100% of its assets)
during temporary defensive
periods.
<PAGE>
MidCap Except during temporary Seeks long-term capital
Growth defensive periods, the appreciation.
Portfolio invests at least
65% of its total assets in
equity securities of
companies that, at the time
of purchase of the sec-
urities, have total market
capitalization within the
range of companies included
in the S&P Mid Cap 400
Index, updated quarterly.
The S&P MidCap 400 Index
is designed to track the
performance of medium cap-
italization companies. The
Portfolio may invest up to
35% of its total assets in
equity securities of com-
panies that, at the time of
purchase, have total market
capitalization outside the
range of companies included
in the S&P MidCap 400 Index
and in excess of that amount
(up to 100% of its assets)
during temporary defensive
periods.
Growth The Portfolio will invest Seeks long-term capital
its assets in companies appreciation.
whose securities are traded
on domestic stock exchange
or in the over-the-counter
market. The Portfolio will
invest at least 85% of its
net assets in equity sec-
urities and at least 65%
of its total assets in the
securities of companies
that have a total market
capitalization of $1
billion or greater.
<PAGE>
Leveraged Invests at least 85% of net Seeks long-term capital
All Cap assets in equity securities appreciation.
of companies of any size,
except during defensive
periods. May purchase put
and call options and sell
covered options to increase
gain and hedge. May enter
into futures contracts and
purchase and sell options
on these futures contracts.
May also borrow money
for purchase of additional
securities.
MFS FUNDS
- ---------
PORTFOLIO INVESTMENT POLICY OBJECTIVES
- ------------------ ---------------------------- -------------------------
Emerging Growth At least 80% normally will Seeks to provide long-
Series be invested in equity term capital growth. Div-
securities of emerging idend and interest income
growth companies. Up to 25% is incidental.
may be invested in foreign
securities not including
ADR's.
Utilities Series At least 65%, but up to Seeks capital growth and
100%, normally will be in- current income (above
vested in equity and debt that available from a
securities of both domestic portfolio invested en-
and foreign companies in tirely in equity secur-
the utilities industry. ities).
Normally, not more than 35%
will be invested in equity
and debt securities of
issuers in other industries,
including foreign securi-
ties, emerging market sec-
urities and non-dollar den-
ominated securities.
World Governments At least 80% normally will Seeks capital preser-
Series be invested in debt secur- vation and growth with
ities. May invest up to moderate current income.
100% of assets in foreign
securities, including
emerging markets secur-
ities.
1 Variable Insurance Products Fund Portfolio.
2 Variable Insurance Products Fund II Portfolio.
<PAGE>
Each portfolio pays its manager a monthly fee for managing its investments and
business affairs. In addition, each portfolio's total operating expenses will
include fees for shareholder services and other expenses, such as custodial,
legal, accounting and other miscellaneous fees. (See "Fee Table" page 4). A
complete description of the expenses, fees and charges of the portfolios is
found in the Funds' prospectuses and Statements of Additional Information.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENTS
AVLIC reserves the right, subject to applicable law, and if necessary, after
notice to and prior approval from the SEC and/or state insurance authorities, to
make additions to, deletions from, or substitutions for the shares that are held
in the Account or that the Account may purchase. The Account may, to the extent
permitted by law, purchase other securities for other Policies or permit a
conversion between Policies upon request by the owners.
AVLIC also reserves the right, in its sole discretion, to establish additional
Subaccounts of the Account, each of which would invest in shares corresponding
to a new portfolio of the Fund or in shares of another investment company having
a specified investment objective. AVLIC may, in its sole discretion, establish
new Subaccounts or eliminate one or more Subaccounts if marketing needs, tax
considerations or investment conditions warrant. Any new Subaccounts may be made
available to existing owners on a basis to be determined by AVLIC.
If any of these substitutions or changes are made, AVLIC may by appropriate
endorsement change the Policy to reflect the substitution or change. If AVLIC
deems it to be in the best interest of owners, and subject to any approvals that
may be required under applicable law, the Account may be operated as a
management company under the 1940 Act, it may be deregistered under that Act if
registration is no longer required, or it may be combined with other AVLIC
separate accounts. To the extent permitted by applicable law, AVLIC may also
transfer the assets of the Account associated with the Policies to another
separate account. In addition, AVLIC may, when permitted by law, restrict or
eliminate any voting rights of owners or other persons who have voting rights as
to the Account. The owner will be notified of any material change in the
investment policy of any portfolio in which the owner has an interest.
FIXED ACCOUNT
Owners may elect to allocate all or a portion of their premium payments to the
Fixed Account and they may also transfer monies from the Separate Account to the
Fixed Account or from the Fixed Account to the Separate Account.
Payments allocated to the Fixed Account and transfers from the Separate Account
to the Fixed Account are placed in the general account of AVLIC, which supports
insurance and annuity obligations. The general account includes all of AVLIC's
assets, except those assets segregated in the separate accounts. AVLIC has the
sole discretion to invest the assets of the general account, subject to
applicable law. AVLIC bears an investment risk for all amounts allocated or
transferred to the Fixed Account and interest credited thereto, less any
deduction for charges and expenses, whereas the owner bears the investment risk
that the declared rate described below, may fall to a lower rate after the
expiration of a declared rate period. Because of exemptive and exclusionary
provisions, interests in the general account have not been registered under the
Securities Act of 1933 (the "1933 Act") nor is the general account registered as
an investment company under the Investment Company Act of 1940 (the "1940 Act").
Accordingly, neither the general account nor any interest therein is generally
subject to the provisions of the 1933 or 1940 Act.
We understand that the staff of the SEC has not reviewed the disclosures in this
Prospectus relating to the Fixed Account portion of the Contract; however,
disclosures regarding the Fixed Account portion of the Contract may be subject
to generally applicable provisions of the federal securities laws regarding the
accuracy and completeness of statements made in prospectuses.
AVLIC guarantees that it will credit interest at an effective annual rate of at
least 4.5%. AVLIC may, at its discretion, declare higher interest rate(s) for
amounts allocated or transferred to the general account. ("Declared Rate(s)").
Each month AVLIC will establish the declared rate for the monies transferred or
allocated to the Fixed Account that month. The owner will earn interest on the
amount transferred or allocated at the rate declared for a 12-month period
effective the month of transfer or allocation. After the end of the 12-month
period, the monies will earn interest at the rate established by AVLIC for each
month.
THE POLICY
The rights and benefits under the Policy are summarized in this prospectus. The
Policy itself is what controls the rights and benefits. A copy of the Policy is
available upon request from AVLIC.
The Policy is a variable annuity policy. The rights and benefits of the Policy
are described below and in the policy form; however, AVLIC reserves the right to
make any modification to conform the Policy to, or to give the owner the benefit
of, any federal or state statute or any rule or regulation thereunder.
<PAGE>
This Policy may be purchased on a non-tax qualified basis ("nonqualified
policy"). The Policy may also be purchased in connection with certain plans
qualifying for favorable federal income tax treatment ("qualified policy").
POLICY APPLICATION AND PREMIUM PAYMENT
Individuals wishing to purchase a Policy must complete an application and submit
it to AVLIC's Home Office (One Ameritas Way, 5900 "O" Street, P.O. Box 82550,
Lincoln, Nebraska 68501). The application must be submitted with an initial
premium payment of not less than $2,000 unless other provisions for payment of
the $2,000 premium are made. Acceptance is subject to AVLIC's underwriting
rules, and AVLIC reserves the right to reject an application for any reason.
After the policy is issued, an owner may make additional premium payments of
$500 or more. Smaller premium payments may be accepted on Bank-O-Matic or at
AVLIC's discretion. Also, AVLIC has the right not to accept total premiums
greater than $1,000,000, or a premium payment where the total premium payments
made under AVLIC annuity contracts having the same annuitant exceed $1,000,000.
If the application and initial premium payment can be accepted in the form
received, the initial premium payment will be applied to the purchase of a
Policy within two business days after receipt by AVLIC at its Home Office. In
those instances where other provisions for the payment of the initial premium
are made, the initial premium will be applied after the application has been
accepted and within two business days after AVLIC has received the initial
premium in its home office in Federal Funds. The date that the initial premium
is applied to the purchase of the Policy is the effective date of the Policy.
If an incomplete application is received, AVLIC will request the information
necessary to complete the application. Once the application is completed and the
initial premium received, the initial premium payment will be applied to the
purchase of a Policy within two business days. If after five business days after
its receipt with the initial premium the application remains incomplete, AVLIC
will return the applicant's premium payment unless it obtains the applicant's
permission to retain the premium payment pending completion of the application.
The policy date for the Policy will be the same day as the effective date for
the Policy, unless it falls on the 29th, 30th or 31st of a month, in which case
the policy date will be set at the 28th day of that month. The policy date is
used to determine policy anniversary dates and policy years.
ALLOCATION OF PREMIUM
In the application for a Policy, the owner allocates the premium to one or more
Subaccounts of the Account or to the Fixed Account. The minimum percentage that
may be allocated to any one Subaccount, or to the Fixed Account, is 10% of the
premium, and fractional percentages may not be used. The allocations must total
100%.
The initial premium is allocated on the effective date of the Policy to the
Money Market Subaccount. The initial premium, less any applicable premium taxes,
will be used to purchase accumulation units of the Money Market Subaccount at
the price next computed on the effective date.
Thirteen days after the effective date, the accumulation value of the Policy
will be allocated among the Subaccounts, or to the Fixed Account, as selected by
the owner in the application.
The value of amounts allocated to Subaccounts of the Account will vary with the
investment performance of these Subaccounts and the owner bears the entire
investment risk. This will affect the Policy's cash surrender value which on the
annuity date affects the level of annuity payments payable. Owners should
periodically review their allocation of values in light of market conditions and
overall financial planning requirements.
ACCUMULATION VALUE
The accumulation value of the policy is equal to the total premiums received,
reduced by any applicable premium taxes, as affected by charges, withdrawals,
and the investment experience of the designated Subaccounts and the interest
earned in the Fixed Account.
On the effective date, the accumulation value of the Policy is equal to the
initial premium received, reduced by any applicable premium taxes. Thereafter,
the accumulation value of the Policy is determined as of the close of trading on
the New York Stock Exchange on each valuation date by multiplying the number of
accumulation units of each Subaccount credited to the Policy by the current
value of an accumulation unit for each Subaccount and by adding the accumulation
value in the Fixed Account. The current value of an accumulation unit reflects
the increase or decrease in value due to investment results of the Subaccount
and certain charges, as described below. The number of accumulation units
credited to the Policy is decreased by any annual administrative fee and the
annual policy fee, any withdrawals, and any charges upon withdrawal and, upon
annuitization, any applicable premium taxes and charges.
The accumulation value is expected to change from valuation period to valuation
period, reflecting the net investment experience of the selected portfolios of
the Funds, interest earned in the Fixed Account, additional premium payments,
partial withdrawals as well as the deduction of any applicable charges under the
Policy.
<PAGE>
VALUE OF ACCUMULATION UNITS
The accumulation units of each Subaccount are valued separately. The value of an
accumulation unit may change each valuation period according to the net
investment performance of the shares purchased by each Subaccount and the daily
charge under the Policy for mortality and expense risks and, if applicable, any
federal and state income tax charges.
TRANSFERS
Accumulation value may be transferred among the Subaccounts 12 times each policy
year without charge. A transfer charge of $10.00 may be imposed each additional
time amounts are transferred between Subaccounts and will be deducted from the
amount transferred. The total amount transferred each time must be at least
$250, or the balance of the Subaccount, if less. Accumulation values may also be
transferred from the Subaccounts of the separate account to the Fixed Account
without limitation. Transfers of up to 100% of the accumulation value may be
made from the Fixed Account to the various Subaccounts during the 30 day period
following the yearly anniversary date of the policy. Transfers from the Fixed
Account are free and will not count as one of the 12 free transfers. The minimum
amount that may remain in a Subaccount or the Fixed Account after a transfer is
$100. AVLIC will effect transfers and determine all values in connection with
transfers on the later of the date designated in the request or at the end of
the valuation period during which the transfer request is received at the Home
Office.
The privilege to initiate transactions by telephone will be made available to
Policyowners automatically. AVLIC will employ reasonable procedures to confirm
that instructions communicated by telephone are genuine, and if it does not,
AVLIC may be liable for any losses due to unauthorized or fraudulent
instructions. The procedures AVLIC follows for transactions initiated by
telephone include, but are not limited to, requiring the Policyowner to provide
the policy number at the time of giving transfer instructions; AVLIC's tape
recording of all telephone transfer instructions; and the provision, by AVLIC,
of written confirmation of telephone transactions.
Transfers may be subject to additional limitations at the fund level.
OWNER INQUIRIES
Inquiries should be addressed to Ameritas Variable Life Insurance Company, One
Ameritas Way, 5900 "O" Street, P.O. Box 82550, Lincoln, Nebraska 68501 or made
by calling 1-800-745-1112. All inquiries should include the policy number and
the owner's name.
REFUND PRIVILEGE
The owner is given a period of time to examine a Policy and return it for a
refund. The owner may cancel the Policy within the period of time stated on the
policy form, which is 10 days after receipt of the Policy, unless state law
requires a longer period of time. The refund is equal to the greater of the
premiums paid or the premiums adjusted by investment gains and losses. To cancel
the Policy, the owner should mail or deliver it to AVLIC at the Home Office. A
refund, if the premium was paid by check, may be delayed until the check has
cleared the owner's bank.
POLICY LOANS
After the first policy anniversary the policyowner of a policy purchased in a
403(b) qualified plan may borrow up to the lesser of: $50,000 (including all
loans outstanding during the preceding year); or 50% of the cash surrender value
of the policy; or 50% of the present value of the non-forfeitable accrued
benefits of the owner under the policy. One loan may be taken each year and the
minimum initial loan amount is $2,500. The loans usually are funded within 7
days of the receipt of a written request.
All loans must be repaid within five years with substantially level amortized
payments made at least quarterly. Repayment for loans to purchase a dwelling to
be used, within a reasonable time, as your principal residence may be made over
a longer period. If any repayment due under the loan is unpaid for ninety (90)
days, the balance will become due without notice. The loan will be repaid by
deducting the balance and any applicable charges and taxes from the accumulation
value, subject to distribution limitations.
The current loan interest rate will be 7.5% and is guaranteed not to exceed 8%
per annum. When a loan is made, accumulation values equal to the amount of the
loan will be transferred from the Account and/or Fixed Account to
<PAGE>
the General Account of AVLIC as security for the indebtedness. The policyowner
is currently earning 4.5% and is guaranteed to earn 4.5% on the amount securing
the indebtedness. The accumulation values transferred out of the Account will be
allocated among the subaccounts or Fixed Account as instructed by the
policyowner when the loan is requested. If no instructions are given, the
amounts will be withdrawn in proportion to the various accumulation values in
the subaccounts or the Fixed Account. Upon repayment of the loan, the transfers
back into the Account or Fixed Account will be allocated in accordance with the
allocation instructions in effect when the payments are made.
The loans to policyowners of a policy purchased in 403(b) qualified plans will
be considered distributions from the policy and subject to taxation unless the
requirements of IRS Code Section 72(p), including repayment, are met. In
addition, policies purchased in plans subject to ERISA may be subject to ERISA
requirements. AVLIC may refuse to make a loan which violates these requirements.
AVLIC may be required to report the loan as income to the policyowner if the
loan violates the IRS requirements or is not repaid according to the IRS
requirements and the loan terms. This provision is not available in all states.
CHARGES AND DEDUCTIONS
Charges will be deducted periodically from the accumulation value of the Policy
to compensate AVLIC for, among other things: (1) issuing and administering the
Policy; (2) assuming certain risks in connection with the Policy; and (3)
incurring expenses in distributing the Policy. The nature and amount of these
charges are described more fully below.
No deductions are made from the premium payments before they are allocated to
the Account or Fixed Account, unless taxes are imposed by state law upon the
receipt of a premium payment. In that case AVLIC will deduct the premium tax due
when the premiums are received. Other charges, such as transfer and contingent
deferred sales charges, may be levied upon, respectively transfers or
withdrawals or, in some cases, upon annuitization, as described more fully
below.
ADMINISTRATIVE CHARGES
Annual Policy Fee. An annual policy fee of up to $50.00 (currently $30.00) is
deducted from the accumulation value on the last valuation date of each policy
year. This charge reimburses AVLIC for the administrative costs of maintaining
the Policy on AVLIC's system.
ANNUAL ADMINISTRATION FEE. A charge of .20% of the accumulation value is
calculated and deducted from the accumulation value on the last valuation date
of each policy year. This charge, which is guaranteed not to be increased, is
designed to reimburse AVLIC for administrative expenses incurred in connection
with issuing the Policies and ongoing administrative expenses incurred in
connection with servicing and maintaining the Policies. These expenses include
the cost of processing the application and premium payments, establishing policy
records, processing and servicing owner transactions and policy changes,
recordkeeping, preparing and mailing reports, processing death benefit claims
and overhead.
AVLIC does not expect to make a profit on the charges for the annual policy and
annual administrative fees.
MORTALITY AND EXPENSE RISK CHARGE
AVLIC imposes a charge to compensate it for bearing certain mortality and
expense risks under the Policies. For assuming these risks, AVLIC makes a daily
charge equal to an annual rate of 1.25% of the value of the average daily net
assets of the Account. Of that amount, approximately .55% is charged to cover
the mortality risks and .70% is charged to cover the expense risks assumed under
the Policies. This charge is subtracted when determining the daily accumulation
unit value. AVLIC guarantees that this charge will never increase. If this
charge is insufficient to cover assumed risks, the loss will fall on AVLIC.
Conversely, if the charge proves more than sufficient, any excess will be added
to AVLIC's surplus. No mortality and risk expense charge is imposed on the Fixed
Account.
The mortality risk borne by AVLIC under the Policies, assuming the selection of
one of the forms of life annuities, is to make monthly annuity payments
(determined in accordance with the annuity tables and other provisions
<PAGE>
contained in the Policies) regardless of how long all annuitants may live. This
undertaking assures that neither an annuitant's own longevity, nor an
improvement in life expectancy greater than expected, will have any adverse
effect on the monthly annuity payments the annuitant will receive under the
Policy. It therefore relieves the annuitant from the risk that he will outlive
the funds accumulated for retirement. In addition, AVLIC bears a mortality risk
under the Policies, regardless of the annuity option selected, in that it
guarantees the purchase rates for the annuity income options available under the
Policy and it guarantees the death benefit of the Policy prior to the annuity
date to be the greater of the accumulation value or the premium payments made.
These risks are AVLIC's. The expense risk undertaken by AVLIC, with respect to
the Account, is that the deductions for administrative costs under the Policies
may be insufficient to cover the actual future costs incurred by AVLIC for
providing policy administration services.
If the contingent deferred sales charge on withdrawals is insufficient to cover
the distribution expenses, the deficiency will be met from AVLIC's general
account funds, including the amount derived from the charge levied for mortality
and expense risks.
CONTINGENT DEFERRED SALES CHARGE
Since no deduction for a sales charge is made from the premium payment, unless
waived, a contingent deferred sales charge is imposed on certain partial and
full withdrawals and upon certain annuitizations to cover certain expenses
relating to the distribution of the Policy, including commissions to registered
representatives and other promotional expenses. No charge is assessed for the
withdrawal of that portion of the policy accumulation value that exceeds the
total premiums deposited. The contingent deferred sales charge is assessed only
on premiums paid based upon the number of years since the policy year in which
the premiums withdrawn, were paid, on a first paid, first withdrawn basis. The
contingent deferred sales charge is a maximum of 6% of the premium payment
withdrawn and grades to 0% after the seventh policy year after the withdrawn
premiums were deposited.
Those annuitants whose policies have been in force for at least one year and
meet certain conditions may make withdrawals without surrender charges (See
"Critical Needs Withdrawals," page 21).
Where a partial or full withdrawal is taken or amounts are applied under an
annuity option, which are subject to a contingent deferred sales charge, the
contingent deferred sales charge will be expressed as a percentage of the
premium payments withdrawn or annuitized as follows:
% Year % Year
6........................1 4.........................5
6........................2 3.........................6
6........................3 2.........................7
5........................4 0.........................8+
In the case of a partial withdrawal or annuitization, the contingent deferred
sales charge will be deducted from the amounts remaining under the Policy. The
charge will be allocated pro rata among the Subaccounts (or the Fixed Account)
based on the accumulation value in each prior to the withdrawal or annuitization
unless an owner requests a partial withdrawal or annuitization from particular
Subaccounts or the Fixed Account in which case the charge will be allocated
among those Subaccounts or the Fixed Account in the same manner as the
withdrawal. A contingent deferred sales charge will not be assessed on premium
payments withdrawn at least two years after deposit, if withdrawn and applied
under annuity income option c or d. (See "Annuity Income Options," page 23.)
Full or partial withdrawals from the Fixed Account may be deferred for up to 6
months from the date of written request.
TAXES
AVLIC will, where such taxes are imposed by state law of the Policyowner's
residence as made known to AVLIC upon the receipt of a premium payment, deduct
premium taxes. If instead, premium taxes are imposed upon annuitization by said
state, AVLIC will deduct applicable premium taxes at that time. Applicable
premium tax rates depend upon such factors as the owner's current state of
residency, and the insurance laws and the status of AVLIC in states where
premium taxes are incurred. Currently, premium taxes range from 0% to 3.5% of
the gross premium paid. Applicable premium tax rates are subject to change by
legislation, administrative interpretations or judicial acts. The owner will be
notified of any applicable premium taxes. Owners are responsible for informing
AVLIC in writing of changes of residence.
<PAGE>
Under present laws, AVLIC will incur state or local taxes (in addition to the
premium taxes described above) in several states. At present, these taxes are
not significant; thus, AVLIC is not currently making a charge. If they increase,
however, AVLIC may make charges for such taxes. Such charges would be deducted
from the accumulation unit value.
AVLIC does not expect to incur any federal income tax liability attributable to
investment income or capital gains retained as part of the reserves under the
Policies. (See "Federal Tax Matters," page 24.) Based upon these expectations,
no charge is being made currently to the Account for corporate federal income
taxes which may be attributable to the Account.
AVLIC will periodically review the question of a charge to the Account for
corporate federal income taxes related to the Account. Such a charge may be made
in future years for any federal income taxes incurred by AVLIC. This might
become necessary if the tax treatment of AVLIC is ultimately determined to be
other than what AVLIC currently believes it to be, if there are changes made in
the federal income tax treatment of annuities at the corporate level, or if
there is a change in AVLIC's tax status. In the event that AVLIC should incur
federal income taxes attributable to investment income or capital gains retained
as part of the reserves under the Policy, the accumulation unit value would be
correspondingly adjusted by any provision or charge for such taxes.
FUND INVESTMENT ADVISORY FEES AND EXPENSES
Because the Account purchases shares of the Funds, the net assets of the Account
will reflect the value of Funds' shares and, therefore, the investment advisory
fees and other expenses incurred by the Funds. A complete description of the
expenses and deductions from the Funds' portfolios is found in the Funds'
prospectuses and Statements Of Additional Information.
AVLIC may receive administrative fees from the investment advisers of certain
funds.
DISTRIBUTIONS UNDER THE POLICY
FULL AND PARTIAL WITHDRAWALS
The owner may make partial withdrawals or a full withdrawal of the Policy to
receive part or all of the accumulation value (less any applicable charges), at
any time before the annuity date and while the annuitant is living, by sending a
written request to AVLIC. The partial withdrawals may also be established on a
predetermined, systematic basis. The withdrawal right may be restricted by
Section 403(b)(11) of the IRS Code and, should the withdrawal be an eligible
rollover distribution from a qualified plan or an annuity in a 403(b) plan, it
will be subject to a mandatory 20% withholding under the IRS Code unless the
distribution is paid directly by AVLIC into an eligible retirement plan in a
direct rollover. (See "Federal Tax Matters," page 24.) No partial or full
withdrawals may be made after the annuity date except as permitted under the
particular annuity option. The amount available for full or partial withdrawal
("cash surrender value") is the accumulation value at the end of the valuation
period during which the written request for withdrawal is received, less any
contingent deferred sales charge, any applicable premium taxes, and in the case
of a full withdrawal, less a pro rata amount of the annual policy fee that would
be due on the last valuation date of the policy year. The cash surrender value
may be paid in a lump sum to the owner, or, if elected, all or any part may be
paid out under an annuity income option. (See "Annuity Income Options," page
23.)
CRITICAL NEEDS WITHDRAWALS. Annuitants whose policies have been in force for at
least one year may, under certain conditions, make withdrawals without surrender
charges. These conditions include: the annuitant must be 65 or younger when the
policy was issued; the policy accumulation value must exceed $5,000; the
annuitant must provide a medical doctor's verification of diagnosis of terminal
illness with less than 12 months to live; or verification of 90 consecutive days
of confinement in a medical facility for an approved medical reason; and no
additional premium payments are made during the waiver period. The waiver of
withdrawal charges during confinement will continue for 90 days after release.
This waiver of withdrawal charges is not available in all states.
In the absence of specific direction from the owner, amounts will be withdrawn
from the Subaccounts and the Fixed Account on a pro rata basis. Any partial
withdrawal that would reduce the cash surrender value to less than $100 will be
considered a request for full withdrawal. Any partial annuitization will be
allocated first to earnings and then to principal.
All withdrawals of amounts held in the Account will be paid within seven days of
receipt of written request, subject to postponement in certain circumstances.
(See "Deferment of Payment," page 23.) Payments under the Policy of any amounts
derived from a premium paid by check may be delayed until such time as the check
has cleared the
<PAGE>
payor's bank. If, at the time the owner makes a partial or full withdrawal
request, he or she has not provided AVLIC with a written election not to have
federal income taxes withheld, AVLIC must by law withhold such taxes from the
taxable portion of any full or partial withdrawal and remit that amount to the
federal government. At the owner's request, AVLIC will provide a form to request
a withdrawal and to notify AVLIC of the owner's election whether to have federal
income taxes withheld. Moreover, the Internal Revenue Code provides that a 10%
penalty tax may be imposed on certain early withdrawals. (See "Federal Tax
Matters - Taxation of Annuities in General," page 25.)
Since the owner assumes the investment risk with respect to amounts held in the
Account and because certain withdrawals are subject to a contingent deferred
sales charge, the total amount paid upon withdrawals under the Policy (taking
into account any prior withdrawals) may be more or less than the premium
payments made.
ANNUITY DATE
The owner may specify an annuity date by written request, which can be no later
than the first day of the month nearest annuitant's 95th birthday (90th birthday
in Oregon) without AVLIC's prior approval. The 29th, 30th or 31st day of any
month may not be selected as the annuity date. If no annuity date is specified,
the annuity date will be the later of the fifth policy anniversary date (Seventh
policy anniversary date in Oregon) or the policy anniversary nearest the
annuitant's 85th birthday. The annuity date is the date that annuity payments
are scheduled to commence under the policy, unless the policy has been
surrendered or an amount has been paid as proceeds to the designated beneficiary
prior to that date. In selecting an annuity date, the owner may wish to consider
the applicability of a contingent deferred sales charge, which is imposed upon
an annuitization prior to the third policy year where a life annuity is selected
and prior to the seventh policy year if any other annuity option is selected.
The owner may advance or defer the annuity date; however, the annuity date may
not be advanced to a date prior to 30 days after the date of a written request,
or, without AVLIC's prior approval, deferred to a date beyond the first policy
anniversary date nearest the annuitant's 95th birthday (90th birthday in
Oregon). An annuity date may only be changed by written request during the
annuitant's lifetime. Request must be made at least 30 days before the then
scheduled annuity date. The annuity date and annuity income options available
for qualified contracts may also be controlled by endorsements, the plan or
applicable law.
DEATH OF ANNUITANT PRIOR TO ANNUITY DATE
If the annuitant dies prior to the annuity date, an amount will be paid as
proceeds to the beneficiary. Upon receipt of due proof of death of the
annuitant, the death benefit becomes payable. The death benefit paid will equal
the greater of the accumulation value or total premiums paid less withdrawals,
on the date due proof of death is received by AVLIC at its Home Office. The
death benefit is payable as a lump sum cash benefit or under one of the annuity
income options. The owner may elect an annuity income option for the
beneficiary, or if no such election was made by the owner and a cash benefit has
not been paid, the beneficiary may make this election after the annuitant's
death. Since "due proof of death" includes a "Claimant's Statement," which
specifies how the beneficiary wishes to receive the benefit (unless the owner
previously selected an option), the amount of the death benefit will continue to
reflect the investment performance of the Account until that information is
supplied to AVLIC. In order to take advantage of the favorable tax treatment
accorded to receiving the death benefit as an annuity, the beneficiary must
elect to receive the benefits under an annuity option within 60 days "after the
day on which such lump sum became payable," as defined in the Internal Revenue
Code. The death benefit will be paid to the beneficiary within seven days of
when it becomes payable.
ELECTION OF ANNUITY INCOME OPTIONS
The amounts of any annuity payments payable will be set on the annuity date
based on the net cash surrender value on that date that is applied under an
annuity income option. The net cash surrender value is equal to the cash
surrender value less any premium taxes, if applicable. Thereafter, the monthly
annuity payment will not change, except in the event option (ai), Interest
Payment, is elected in which case the payment will vary based on the rate of
interest determined by AVLIC. All or part of the net cash surrender value may be
placed under one or more annuity income options. If annuity payments are to be
paid under more than one option, AVLIC must be told what part of the net cash
surrender value is to be paid under each option.
The annuity income options are shown below. Election of an annuity income option
must be made by written request to AVLIC at least thirty (30) days in advance of
the annuity date. If no election is made, payments will be made beginning on the
annuity date as an annuity under option c, as shown below. Subject to AVLIC's
approval, the
<PAGE>
owner (or after the annuitant's death, the beneficiary) may select any other
annuity income option AVLIC then offers. Annuity income options are not
available to: (1) an assignee; or (2) any other than a natural person except
with AVLIC's consent. If an annuity option selected does not generate monthly
payments of at least $20, AVLIC reserves the right to pay the net cash surrender
value as a lump sum payment.
If an annuity income option is chosen which depends on the continuation of life
of the annuitant or of a joint annuitant, proof of birth date may be required
before annuity payments begin. For annuity income options involving life income,
the actual age of the annuitant or joint annuitant will affect the amount of
each payment. Since payments to older annuitants are expected to be fewer in
number, the amount of each annuity payment shall be greater. For annuity income
options that do not involve life income, the length of the payment period will
affect the amount of each payment, with the shorter the period, the greater the
amount of each annuity payment.
ANNUITY INCOME OPTIONS
(ai) Interest Payment. AVLIC will hold any amount applied under this option.
Interest on the unpaid balance will be paid or credited each month at a
rate determined by AVLIC.
(aii) Designated Amount Annuity. Monthly annuity payments will be for a fixed
amount. Payments continue until the amount AVLIC holds runs out.
(b) Designated Period Annuity. Monthly annuity payments are paid for a period
certain as the owner elects up to 20 years.
(c) Life Annuity. Monthly annuity payments are paid for the life of an
annuitant, ceasing with the last annuity payment due prior to his or her
death. Variations provide for guaranteed payments for a period of time.
(d) Joint and Last Survivor Annuity. Monthly annuity payments are paid based
on the lives of the two annuitants and thereafter for the life of the
survivor, ceasing with the last annuity payment due prior to the
survivor's death.
The rate of interest payable under options ai, aii or b will be guaranteed at 3%
compounded yearly. Payments under options c and d will be based on the 1983
Table "a" Annuity Table at 3 1/2% interest. AVLIC may, at any time of election
of an annuity income option, offer more favorable rates in lieu of the
guaranteed rates specified in the Annuity Tables. These rates may be based on
Annuity Tables which distinguish between males and females.
Under current administrative practice, AVLIC allows the beneficiary to transfer
amounts applied under options ai, aii, and b to either option c or d after the
annuity date. However, there is no guarantee that AVLIC will continue this
practice, which practice can be changed at any time at AVLIC's discretion.
DEFERMENT OF PAYMENT
Payment of any cash withdrawal or lump sum death benefit due from the Account
will occur within seven days from the date the amount becomes payable, except
that AVLIC may be permitted to defer such payment if:
a) the New York Stock Exchange is closed other than customary weekend and
holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
b) the SEC by order permits the postponement for the protection of owners;
or
c) an emergency exists as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable, or it is not
reasonably practicable to determine the value of the net assets of the
Account; or
d) surrenders or partial withdrawals from the Fixed Account may be deferred
for up to 6 months from the date of written request.
GENERAL PROVISIONS
The rights and benefits under the Policy are summarized in this prospectus. The
Policy itself is what controls the rights and benefits. A copy of the Policy is
available upon request from AVLIC.
CONTROL OF POLICY
The owner is as shown in the application or subsequent written endorsement.
Subject to the rights of any irrevocable beneficiary and any assignee of record,
all rights, options, and privileges belong to the owner, if living; otherwise to
any successor-owner or owners, if living; otherwise to the estate of the last
owner to die.
<PAGE>
BENEFICIARY
The owner may name both primary and contingent beneficiaries. The
beneficiary(ies) and their designated class are specified in the application.
Payments will be shared equally among beneficiaries of the same class unless
otherwise stated. If a beneficiary dies before the annuitant, payments will be
made to any surviving beneficiaries of the same class; otherwise to any
beneficiary(ies) of the next class; otherwise to the owner; otherwise to the
estate of the owner.
CHANGE OF BENEFICIARY
The owner may change the beneficiary by written request on a Change of
Beneficiary form at any time during the annuitant's lifetime unless otherwise
provided in the previous designation of beneficiary. AVLIC, at its option, may
require that the Policy be returned to the Home Office for endorsement of any
change, or that other forms be completed. The change will take effect as of the
date the change is recorded at the Home Office. AVLIC will not be liable for any
payment made or action taken before the change is recorded. No limit is placed
on the number of changes that may be made.
CONTESTABILITY
AVLIC cannot contest the validity of this Policy after the policy date, subject
to the "Misstatement of Age or Sex" provision. However, if the annuitant commits
suicide within two years of the policy date, the death benefit under the Policy
will be limited to the Cash Surrender Value of the policy.
MISSTATEMENT OF AGE OR SEX
AVLIC may require proof of age and sex before making annuity payments. If the
age or sex of the annuitant has been misstated, we will adjust the benefits and
amounts payable under this Policy.
If the misstatement of age or sex is not found until after the income payments
have started:
1. if we made any overpayments, we will add interest at the rate of 6% per
year compounded yearly and charge them against payments to be made in the
future.
2. if we made underpayments, the balance due plus interest at the rate of 6%
per year compounded yearly will be paid in a lump sum.
REPORTS AND RECORDS
AVLIC will maintain all records relating to the Account and will mail the owner,
at the last known address of record, within 30 days after each policy
anniversary, an annual report which shows the current accumulation value as
allocated among the Subaccounts or the Fixed Account, and charges made during
the policy year. The owner may ask for more frequent reports, but except for the
annual report, AVLIC reserves the right to charge a fee for each report. The
owner will also be sent confirmations of transactions under the Policy, such as
the purchase payment and transfers and withdrawals, and a periodic report for
the Fund and a list of the portfolio securities held in each portfolio of the
Fund and any other information required by the 1940 Act.
FEDERAL TAX MATTERS
INTRODUCTION
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE.
This discussion is not intended to address the tax consequences resulting from
all of the situations in which a person may be entitled to or may receive a
distribution under a contract. Any person concerned about these tax implications
should consult a competent tax adviser before making a premium payment. This
discussion is based upon AVLIC's understanding of the present federal income tax
laws as they are currently interpreted by the Internal Revenue Service.
No representation is made as to the likelihood of the continuation of the
present federal income tax laws or of the current interpretation by the Internal
Revenue Service. Moreover, no attempt has been made to consider any applicable
state or other tax laws, other than premium taxes. (See "Taxes," page 20.)
<PAGE>
The qualified policies are designed for use by individuals in connection with
retirement plans which are intended to qualify as plans qualified for special
income tax treatment under Sections 401, 403(a), 403(b), 408 or 457 of the
Internal Revenue Code (the "Code"). The ultimate effect of federal income taxes
on the contributions, on the accumulation value, on annuity payments and on the
economic benefit to the owner, the annuitant or the beneficiary depends on the
type of retirement plan, on the tax and employment status of the individual
concerned and on AVLIC's tax status. In addition, certain requirements must be
satisfied in purchasing a qualified policy in connection with a tax qualified
plan in order to receive favorable tax treatment. With respect to qualified
policies an endorsement of the policy and/or limitations or penalties imposed by
the Internal Revenue Code may impose limits on premiums, withdrawals,
distributions or benefits, or on other provisions of the policies. Therefore,
purchasers of qualified policies should seek competent legal and tax advice
regarding the suitability of the Policy for their situation, the applicable
requirements and the tax treatment of the rights and benefits of a Policy.
Section 403(b)(11) of the IRS Code requires that no distribution be made from a
plan under Section 403(b) except after age 59 1/2, separation from service,
death or disability, or in the case of hardship, except in a tax free exchange
to another qualified contract.
The following discussion assumes the qualified policies are purchased in
connection with retirement plans that qualify for the special federal income tax
treatment described above.
TAXATION OF ANNUITIES IN GENERAL
NONQUALIFIED POLICIES. The following discussion assumes that the Policy will
qualify as an annuity policy for federal income tax purposes. The Statement of
Additional Information discusses such qualifications.
Section 72 of the Code governs taxation of annuities in general. AVLIC believes
that an annuity owner generally is not taxed on increases in the value of a
Policy until distribution occurs either in the form of a lump sum received by
withdrawing all or part of the accumulation value (i.e., "withdrawals") or as
annuity payments under the annuity income option elected. The exception to this
rule is the treatment afforded to owners that are not natural persons.
Generally, an owner of a Policy who is not a natural person must include in
income any increase in the excess of the owner's cash value over the owner's
"investment in the policy" during the taxable year, even if no distribution
occurs. There are, however, exceptions to this rule which you may wish to
discuss with your tax counsel. The following discussion applies to Policies
owned by natural persons.
The taxable portion of a distribution (in the form of an annuity or lump sum
payment) is taxed as ordinary income, subject to any income averaging rules
applicable to taxpayers generally. For this purpose, the assignment, pledge, or
agreement to assign or pledge any portion of the accumulation value generally
will be treated as a distribution.
Generally, in the case of a withdrawal under a nonqualified policy, amounts
received are first treated as taxable income to the extent that the accumulation
value immediately before the withdrawal exceeds the "investment in the policy"
at that time. Any additional amount is not taxable.
Although the tax consequences may vary depending on the annuity income option
elected under the Policy, in general, only the portion of the annuity payment
that represents the amount by which the accumulation value exceeds the
"investment in the policy" will be taxed. For fixed annuity payments, in
general, there is no tax on the amount of each payment which represents the same
ratio that the "investment in the policy" bears to the total expected value of
the annuity payment for the term of the payment; however, the remainder of each
annuity payment is taxable. Any distribution received subsequent to the
investment in the policy being recovered will be fully taxable.
In the case of a distribution pursuant to a nonqualified policy, there may be
imposed a federal penalty tax equal to 10% of the amount treated as taxable
income. In general, however, there is no penalty tax on distributions: (1) made
on or after the date on which the owner is actual age 59-1/2, (2) made as a
result of death or disability of the owner, or (3) received in substantially
equal payments as a life annuity subject to Internal Revenue Service
requirements, including special "recapture" rules.
QUALIFIED POLICIES. The rules governing the tax treatment of distributions under
qualified plans vary according to the type of plan and the terms and conditions
of the plan itself. Generally, in the case of a distribution to a participant or
beneficiary under a Policy purchased in connection with these plans, only the
portion of the payment in excess of the "investment in the policy" allocated to
that payment is subject to tax. The "investment in the policy" equals the
portion of plan contributions invested in the Policy that was not excluded from
the participant's gross income, and may be zero. In general, for allowed
withdrawals, a ratable portion of the amount received is taxable, based on the
ratio of the investment in the policy to the total Policy value. The amount
excluded from a taxpayer's income will be limited to an aggregate cap equal to
the investment in the policy. The taxable portion of annuity
<PAGE>
payments is generally determined under the same rules applicable to nonqualified
policies. However, special favorable tax treatment may be available for certain
distributions (including lump sum distributions). Adverse tax consequences may
result from: distributions prior to age 59 1/2 (subject to certain exceptions),
distributions that do not conform to specified commencement and minimum
distribution rules, aggregate distributions in excess of a specified annual
amount, and in certain other circumstances. Distributions from qualified plans
are subject to specific tax withholding rules. Eligible rollover distributions
from a qualified plan or annuities used in 403(b) plans are subject to income
tax withholding at a rate of 20% unless the policyowner elects to have the
distribution paid directly by AVLIC to an eligible retirement plan in a direct
rollover. If the distribution is not an eligible rollover distribution, it is
generally subject to the same withholding rules as distributions from
non-qualified policies.
DISTRIBUTION OF THE POLICIES
Ameritas Investment Corp. ("Investment Corp."), a wholly-owned subsidiary of
Ameritas Life Insurance Corp. and an affiliated company of AVLIC, will act as
the principal underwriter of the Policies pursuant to an Underwriting Agreement
between itself and AVLIC. Investment Corp. was organized under the laws of the
State of Nebraska on December 29, 1983, and is a broker/dealer registered
pursuant to the Securities Exchange Act of 1934 and a member of the National
Association of Securities Dealers, Inc. The Policies are sold by individuals who
are registered representatives of Investment Corp. and who are licensed as life
insurance agents for AVLIC. Investment Corp. and AVLIC may authorize registered
representatives of other registered broker/dealers to sell the Policies subject
to applicable law.
Registered Representatives who sell the Policy will receive commissions based
upon a commission schedule. After issuance of the Policy, commissions will
equal, at most, 5% of premiums paid. Further, Registered Representatives who
meet certain production standards may receive additional compensation, and
managers receive override commissions with respect to the policies.
SAFEKEEPING OF THE ACCOUNT'S ASSETS
AVLIC holds the assets of the Account. The assets are kept physically segregated
and held separate and apart from the general account assets. AVLIC maintains
records of all purchases and redemptions of the Funds' shares by each of the
Subaccounts.
THIRD PARTY SERVICES
AVLIC is aware that certain third parties are offering asset allocation, money
management and timing services in connection with the contracts. In certain
cases, AVLIC has agreed to honor transfer instructions from such services where
it has received powers of attorney, in a form acceptable to it, from the
contract owners participating in the service. AVLIC does not endorse, approve or
recommend such services in any way and contract owners should be aware that fees
paid for such services are separate and in addition to fees paid under the
contracts.
VOTING RIGHTS
To the extent required by law, the portfolio shares held in the Account will be
voted by AVLIC at shareholder meetings of the Funds in accordance with
instructions received from persons having voting interests in the corresponding
Subaccount. The 1940 Act currently requires shareholder voting on matters such
as the election of the Board of Trustees of the Funds, the approval of the
investment advisory contract, changes in the fundamental investment policies of
the Funds, and approval of the independent accountants. If, however, the 1940
Act or any regulation thereunder should be amended, or if the present
interpretation thereof should change, and, as a result, AVLIC determines that it
is allowed to vote the portfolio shares in its own right, AVLIC may elect to do
so.
The number of votes which are available to an owner will be calculated
separately for each Subaccount of the Account. That number will be determined by
applying his or her percentage interest, if any, in a particular Subaccount to
the total number of votes attributable to the Subaccount. Prior to the annuity
date, the owner holds a voting interest in each Subaccount to which the
accumulation value is allocated. The number of votes which are available to an
owner will be determined by dividing the accumulation value attributable to a
Subaccount by the net asset value per share of the applicable portfolio. In
determining the number of votes, fractional shares will be recognized. The
number of votes of the portfolio which are available will be determined as of
the date coincident with the date established by that portfolio for determining
shareholders eligible to vote at the meeting of the Funds. Voting instructions
will be solicited by written communication prior to such meeting in accordance
with procedures established by the Funds.
<PAGE>
Shares of Funds as to which no timely instructions are received, or shares held
by AVLIC as to which owners have no beneficial interest will be voted in
proportion to the voting instructions which are received with respect to all
Policies participating in that Subaccount. Each person having a voting interest
in a Subaccount will receive proxy material, reports and other materials
relating to the appropriate portfolio.
LEGAL PROCEEDINGS
There are no legal proceedings to which the Account is a party or to which the
assets of the Account are subject. AVLIC is not involved in any litigation that
is of material importance in relation to its total assets or that relates to the
Account.
STATEMENT OF ADDITIONAL INFORMATION
A Statement of Additional Information is available that contains more details
concerning the subjects discussed in this Prospectus. This can be obtained by
writing to the address on the first page or by calling 1-800-745-1112. The
following is the Table of Contents for that Statement:
<TABLE>
<CAPTION>
Page
<S> <C>
GENERAL INFORMATION AND HISTORY....................... 2
THE POLICY............................................ 2
GENERAL MATTERS....................................... 6
FEDERAL TAX MATTERS................................... 8
DISTRIBUTION OF THE POLICY............................ 9
SAFEKEEPING OF ACCOUNT ASSETS......................... 9
AVLIC................................................. 9
STATE REGULATION...................................... 10
LEGAL MATTERS......................................... 10
EXPERTS............................................... 10
OTHER INFORMATION..................................... 10
FINANCIAL STATEMENTS.................................. 10
</TABLE>
<PAGE>
APPENDIX A
LONG TERM MARKET TRENDS
The information below covering the period of 1926-1995 is an examination of the
basic relationship between risk and return among the different asset classes,
and between nominal and real (inflation adjusted) returns. The information is
provided because the Policyowners have varied investment portfolios available
which have different investment objectives and policies. The chart generally
demonstrates how different classes of investments have performed during the
period. The study of asset returns provides a period long enough to include most
of the major types of events that investors have experienced in the past . This
is a historical record and is not intended as a projection of future
performance.
The graph depicts the growth of a dollar invested in common stocks, small
company stocks, long-term government bonds, Treasury bills, and a hypothetical
asset returning the inflation rate over the period from the end of 1925 to the
end of 1995. All results assume reinvestment of dividends on stocks or coupons
on bonds and no taxes. Transaction costs are not included, except in the small
stock index starting in 1982. Charges associated with a variable insurance
policy are not reflected in the chart.
Each of the cumulative index values is initiated at $1.00 at year-end 1925. The
graph illustrates that common stocks and small stocks gained the most over the
entire 70-year period: investments of one dollar would have grown to $1,113.92
and $3,822.40 respectively, by year-end 1995. This growth, however, was earned
by taking substantial risk. In contrast, long-term government bonds (with an
approximate 20-year maturity), which exposed the holder to less risk, grew to
only $34.04. Note that the return and principal value of an investment in stocks
will fluctuate with changes in market conditions. Prices of small company stocks
are generally more volatile than those of large company stocks. Government bonds
and Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and a fixed principal value.
The lowest risk strategy over the past 70 years was to buy U.S. Treasury bills.
Since Treasury bills tended to track inflation, the resulting real
(inflation-adjusted) returns were near zero for the entire 1926-1995 period.
Omitted graph illustrates long term market trends as described in the narrative
above.
Year End 1925 = $1.00
Source: Stocks, Bonds, Bills, and Inflation 1996 Yearbook
(C)Ibbotson Associates, Chicago. All Rights Reserved.
<PAGE>
APPENDIX B
STANDARD & POOR'S 500
The Standard and Poor's (S & P 500) is a weighted index of 500 widely held
stocks: 400 Industrials, 40 Financial Company Stocks, 40 Public Utilities, and
20 Transportation stocks, most of which are traded on the New York Stock
Exchange. This information is provided because the Policyowners have varied
investment options available. The investment options, except the Fixed Account
and the Money Market Account, involve investments in the stock market. The S & P
500 is generally regarded as an accurate composite of the overall stock market.
<TABLE>
<CAPTION>
PERCENT CHANGE OF TOTAL RETURN
STANDARD & POOR'S 500 INDEX
%
Year Change
- -----------------------------------------
<S> <C> <C>
1 1971 14.56 Omitted graph depicts the activity
2 1972 18.90 of the S&P 500 Index for the years
3 1973 -14.77 1971-1995.
4 1974 -26.39
5 1975 37.16
6 1976 23.57
7 1977 -7.42
8 1978 6.38
9 1979 18.20
10 1980 32.27
11 1981 -5.01
12 1982 21.44
13 1983 22.38
14 1984 6.10
15 1985 31.57
16 1986 18.56
17 1987 5.10
18 1988 16.61
19 1989 31.69
20 1990 -3.14
21 1991 30.45
22 1992 7.61
23 1993 10.08
24 1994 1.32
25 1995 37.58
</TABLE>
THE CHART ASSUMES THE RETURN EXPERIENCED BY THE STANDARD & POOR'S 500 INDEX FOR
THE LAST 25 YEARS. FUTURE RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS
MADE BY AN OWNER. THE INFORMATION IN THE CHART IS NOT NECESSARILY INDICATIVE OF
FUTURE PERFORMANCE.
INDEX PERFORMANCE IS NOT ILLUSTRATIVE OF POLICY SUBACCOUNT PERFORMANCE, AND
INVESTMENTS ARE NOT MADE IN THE INDEX.
<PAGE>
Part B Registration No. 33-33844
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
STATEMENT OF ADDITIONAL INFORMATION
FOR
MULTI-PREMIUM VARIABLE ANNUITY POLICY
Offered by
Ameritas Variable Life Insurance Company
(formerly Bankers Life Assurance Company of Nebraska)
(A Nebraska Stock Company)
5900 "O" Street
Lincoln, Nebraska 68510
---------------------
This Statement of Additional Information expands upon subjects
discussed in the current Prospectus for the Multi-Premium Variable Annuity
Policy ("Policy") offered by Ameritas Variable Life Insurance Company ("AVLIC").
You may obtain a copy of the Prospectus dated May 1, 1996, by writing Ameritas
Variable Life Insurance Company, 5900 "O" Street, Lincoln, Nebraska 68510, or
calling, 1-800-745- 1112. Terms used in the current Prospectus for the Policy
are incorporated in this Statement.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND SHOULD
BE READ ONLY IN CONJUNCTION WITH THE PROSPECTUS FOR THE POLICY.
Dated: May 1, 1996
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
PAGE
<S> <C>
GENERAL INFORMATION AND HISTORY...................................... 2
- -------------------------------
THE POLICY........................................................... 2
- ----------
Accumulation Value......................................... 2
------------------
Value of Accumulation Units................................ 3
---------------------------
CALCULATION OF PERFORMANCE DATA...................................... 3
- -------------------------------
GENERAL MATTERS...................................................... 6
- ---------------
The Policy................................................. 6
----------
Non-Participating.......................................... 7
-----------------
Assignment................................................. 7
----------
Annuity Data............................................... 7
------------
Ownership.................................................. 7
---------
Joint Annuitant............................................ 7
---------------
IRS Required Distributions................................. 7
--------------------------
FEDERAL TAX MATTERS.................................................. 8
- -------------------
Taxation of AVLIC.......................................... 8
-----------------
Tax Status of the Policies................................. 8
--------------------------
Qualified Policies......................................... 8
------------------
DISTRIBUTION OF THE POLICY........................................... 9
- --------------------------
SAFEKEEPING OF ACCOUNT ASSETS........................................ 9
- -----------------------------
AVLIC ........................................................... 9
- -----
STATE REGULATION..................................................... 10
- ----------------
LEGAL MATTERS........................................................ 10
- -------------
EXPERTS.............................................................. 10
- -------
OTHER INFORMATION.................................................... 10
- -----------------
FINANCIAL STATEMENTS................................................. 10
- --------------------
</TABLE>
<PAGE>
GENERAL INFORMATION AND HISTORY:
- --------------------------------
In order to supplement the description in the Prospectus, the following
provides additional information concerning the company and its history.
a. Name Change
-----------
Bankers Life Insurance Company of Nebraska, the parent of Bankers
Life Assurance Company of Nebraska, and certain of their
subsidiaries have changed their names as a part of an ongoing
program of changing the names of Bankers Life Insurance Company and
certain of its subsidiaries. The changes are as follows: Bankers
Life Insurance Company of Nebraska changed its name to Ameritas Life
Insurance Corp. (Ameritas Life) as of July 1, 1988; Bankers Life
Assurance Company of Nebraska to Ameritas Variable Life Insurance
Company (AVLIC) as of July 1, 1988; and BLICON, Inc. to Bankers Life
Nebraska Company (Bankers Life Nebraska) as of April 11, 1988. These
changes do not reflect any change in the relationships between the
companies or the company and the policyholders. These changes have
been made in the prospectus and elsewhere in the filings with the
Commission. These changes are incorporated by reference wherever
they may not have been physically changed.
b. AVLIC is a fully controlled subsidiary of Ameritas Life. Ameritas
Life has invested approximately $33.7 million in AVLIC to support
its insurance operation. (See page eight of the Prospectus)
c. AVLIC voted to approve a Merger Agreement with Ameritas Life
("Agreement") at its December 5, 1994, board meeting. The merger was
scheduled to occur on May 1, 1995, or such later date as the
required regulatory approvals could be obtained. On March 31, 1995,
the company determined to postpone the merger to evaluate its
options in light of the present regulatory climate. On February 27,
1996, AVLIC determined to postpone the merger indefinitely.
d. AVLIC may publish in advertisements and reports to policyowners, the
ratings and other information assigned it by one or more independent
rating services. The purpose of the ratings are to reflect the
financial strength and/or claims-paying ability of AVLIC.
THE POLICY
- ----------
In order to supplement the description in the Prospectus, the following
provides additional information about the Policy which may be of interest to the
owners.
Accumulation Value
- ------------------
The Accumulation Value of a Policy on each valuation date is equal to:
(1) the aggregate of the values attributable to the Policy in each
Subaccount on the valuation date, determined for each Subaccount by
multiplying the Subaccount's accumulation unit value by the number
of the Subaccount accumulation units allocated to the Policy and/or
the net allocation plus interest in the Fixed Account; plus;
(2) the amount deposited in the Fixed Account, plus interest; less
(3) any partial withdrawal, and its charge, made on the valuation date;
less
(4) any annual policy fee or annual administration fee deducted on that
valuation date. In computing the accumulation value, the number of
Subaccount accumulation units allocated to the Policy is determined
after any transfer among the Subaccounts.
<PAGE>
Value of Accumulation Units
- ---------------------------
The value of each Subaccount's accumulation units reflects the investment
performance of that Subaccount.
The accumulation unit value of each Subaccount shall be calculated by:
(1) multiplying the per share net asset value of the corresponding Fund
portfolio on the valuation date by the number of shares held by the
Subaccount, before the purchase or redemption of any shares on that
date; minus
(2) a daily charge of 0.003425% (equivalent to an annual rate of 1.25%
of the average daily net assets) for mortality and expense risks;
minus
(3) any applicable charge for federal and state income taxes, if any;
and
(4) dividing the result by the total number of accumulation units held
in the Subaccount on the valuation date, before the purchase or
redemption of any units on that date.
CALCULATION OF PERFORMANCE DATA
- -------------------------------
As disclosed in the prospectus, premium payments will be allocated to the
Separate Account VA-2 which has nineteen Subaccounts, with the assets of each
invested in corresponding portfolios of the Variable Insurance Products Fund or
the Variable Insurance Products Fund II, (collectively the "Fidelity Funds"),
the Alger American Fund, or the MFS Variable Insurance Trust ("The Funds"), or
to the Fixed Account. From time to time AVLIC will advertise the performance
data of the portfolios of the Funds.
Fidelity Management & Research Company (FMR) is the manager of the
Fidelity Funds. It maintains a large staff of experienced investment personnel
and a full complement of related support facilities. Alger American Funds are
managed by Fred Alger Management, Inc. It stresses proprietary research by its
large research team that follows approximately 1400 companies. MFS Variable
Insurance Trust is advised by Massachusetts Financial Services Company. MFS is
America's oldest mutual fund organization.
Performance information for any subaccount may be compared, in reports and
advertising to: (1) the Standard & Poor's 500 Stock Index ("S & P 500"). Dow
Jones Industrial Average ("DJIA"), Donahue Money Market Institutional Averages;
(2) other variable annuity separate accounts or other investment products
tracked by Lipper Analytical Services or the Variable Annuity Research and Data
Service, widely used independent research firms which rank mutual funds and
other investment companies by overall performance, investment objectives, and
assets; and (3) the Consumer Price Index (measure for inflation) to assess the
real rate of return from an investment in a contract. Unmanaged indices may
assume the reinvestment of dividends but generally do not reflect deductions for
annuity charges and investment management costs.
Total returns, yields and other performance information may be quoted
numerically or in a table, graph, or similar illustration. Reports and
advertising may also contain other information including (i) the ranking of any
subaccount derived from rankings of variable annuity separate accounts or other
investment products tracked by Lipper Analytical Series or by rating services,
companies, publications or other persons who rank separate accounts or other
investment products on overall performance or other criteria, and (ii) the
effect of tax deferred compounding on a subaccount's investment returns, or
returns in general, which may be illustrated by graphs, charts, or otherwise,
and which may include a comparison, at various points in time, of the return
from an investment in a contract (or returns in general) on a tax-deferred basis
(assuming one or more tax rates) with the return on a taxable basis.
The tables below are established to demonstrate performance results for
each underlying portfolio with charges deducted at the Separate Account level as
if the policy had been in force from the commencement of the portfolio. The
performance information is based on the historical investment experience of the
underlying portfolios and does not indicate or represent future performance.
<PAGE>
Total Return
- ------------
Total returns quoted in advertising reflect all aspects of a subaccount's
return, including the automatic reinvestment by the separate account of all
distributions and any change in the subaccount's value over the period. Average
annual returns are calculated by determining the growth or decline in value of a
hypothetical historical investment in the subaccount over a stated period, and
then calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had been
constant over the period. For example, a cumulative return of 100% over ten
years would produce an average annual return of 7.18% which is the steady rate
that would equal 100% grown on a compounded basis in ten years. While average
annual returns are a convenient means of comparing investment alternatives,
investors should realize that the subaccount's performance is not constant over
time, but changes from year to year, and that average annual returns represent
averaged figures as opposed to the actual year-to-year performance of a
subaccount.
Table 1 The subaccounts will quote average annual returns for the period
since the underlying portfolios commenced operation after deducting charges at
the Separate Account level. Table 1 shows the average annual total return on a
hypothetical investment in the subaccounts for the last year, five years, and
ten years if applicable, and/or from the date that the portfolios began
operations assuming that the contract was surrendered December 31, 1995. The
average annual total returns to be shown in Table 1 were computed by finding the
average annual compounded rates of return over the periods shown that would
equate the initial amount invested to the withdrawal value, in accordance with
the following formula: P(1+T)n = ERV where P is a hypothetical investment
payment of $25,000, T is the average annual total return, n is the number of
years, and ERV is the withdrawal value at the end of the periods shown. The
returns reflect the risk and administrative charge (1.25% on an annual basis),
annual administration fee of .20% and the annual policy fee. Since the contract
is intended as a long-term product, the table also shows the average annual
total return assuming that no money was withdrawn from the contract. The first
column shows the average annual total return if you surrender the contract at
the end of the period, the second column shows the average annual return if you
do not surrender the contract.
Table 1: Average Annual Total Return for Period Ending on 12/31/95
<TABLE>
<CAPTION>
One Year Five Year Life of Fund
Surrender Surrender Surrender
Subaccounts Contracts Continue Contracts Continue Contracts Continue
- ------------------------ ------------ ----------- ------------ ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Fidelity VIP
- ----------------
Money Market -1.76% 4.24% 2.37% 3.09% 5.21% 5.21%
High Income 12.58% 18.58% 16.85% 17.28% 9.90% 9.90%
Equity Income 27.09% 33.09% 19.28% 19.68% 11.42% 11.42%
Growth 27.42% 33.42% 18.74% 19.14% 12.88% 12.88%
Overseas 1.91% 7.91% 5.91% 6.54% 5.48% 5.48%
Fidelity VIP II
- ----------------
Asset Manager 9.19% 15.19% 10.63% 11.16% 9.09% 9.38%
Inv. Grade Bond 9.56% 15.56% 6.94% 7.54% 6.91% 7.10%
Index 500 29.16% 35.16% N/A N/A 12.39% 13.50%
Contrafund N/A N/A N/A N/A 31.34% 37.30%
Asset Manager: Growth N/A N/A N/A N/A 15.17% 21.13%
</TABLE>
Inception of Funds: Money Market, 4/1/82; High-Income, 9/19/85; Equity-Income,
10/9/86; Growth, 10/9/86; Overseas, 1/28/87; Asset Manager, 9/6/89; Investment
Grade Bond, 12/5/88; Index 500, 8/27/92; Contrafund, 1/3/95; Asset Manager:
Growth, 1/3/95.
* Money Market reflects the most recent ten-year period.
<PAGE>
<TABLE>
<CAPTION>
One Year Five Year Life of Fund
Surrender Surrender Surrender
Subaccounts Contracts Continue Contracts Continue Contracts Continue
- ------------------------ ------------ ----------- ------------ ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Alger American
- --------------
Small Captalization 36.23% 42.23% 18.43% 18.67% 20.41% 20.49%
Growth 28.38% 34.38% 19.58% 19.79% 17.30% 17.41%
Income and Growth 27.16% 33.16% 10.68% 11.09% 8.16% 8.33%
Balanced 20.73% 26.73% 6.45% 6.98% 6.24% 6.57%
Mid-Cap Growth 36.37% 42.37% N/A N/A 25.24% 26.74%
Leveraged All-Cap N/A N/A N/A N/A 70.96% 77.51%
MFS Variable Ins. Trust
- -----------------------
Emerging Growth N/A N/A N/A N/A 25.66% 41.62%
World Governments 6.65% 12.65% N/A N/A 0.60% 4.37%
Utilities 25.91% 31.91% N/A N/A 25.74% 31.69%
</TABLE>
Inception of Funds: Alger American Income-Growth Portfolio, 11/15/88; Alger
American Balanced, 9/5/89; Alger American Small Capitalization, 9/21/88; Alger
American Growth, 1/9/89; Alger American Mid-Cap, 5/1/93, Alger American
Leveraged AllCap, 1/25/95; MFS Emerging Growth, (not seeded as of 6/19/95); MFS
Utilities, 1/3/95; MFS World Governments, 6/14/94.
In addition to average annual returns, the subaccounts may quote unaveraged
or cumulative total returns reflecting the simple change in value of an
investment over a stated period. Table 2 shows the cumulative total return on a
hypothetical investment in the subaccounts for the last year, 5 years, and 10
years if applicable, and/or from the date the portfolios began operations and
assuming that the contract was surrendered December 31, 1994. The returns
reflect the risk and administrative charge (1.25% on an annual basis), annual
administrative fee of (.20%) and the policy fee. Since the contract is intended
as a long-term product, the table also shows the cumulative total returns
assuming that no money was withdrawn from contract. The first column shows the
cumulative total return if you surrender the contract at the end of the period,
the second column shows the cumulative total return if you do not surrender the
contract.
Table 2: Cumulative Total Return for Period Ending on 12/31/95
<TABLE>
<CAPTION>
One Year Five Year Life of Fund
Surrender Surrender Surrender
Subaccounts Contracts Continue Contracts Continue Contracts Continue
- ------------------------ ------------ ----------- ------------ ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Fidelity VIP
- -----------------
Money Market -1.76% 4.24% 12.43% 16.43% 103.12% 103.12%
High Income 12.58% 18.58% 117.88% 121.88% 167.79% 167.79%
Equity Income 27.09% 33.09% 141.50% 145.50% 175.10% 175.10%
Growth 27.42% 33.42% 136.00% 140.00% 210.93% 210.93%
Overseas 1.91% 7.91% 33.26% 37.26% 62.13% 62.13%
Fidelity VIP II
- -----------------
Asset Manager 9.19% 15.19% 65.73% 69.73% 74.67% 77.67%
Inv. Grade Bond 9.56% 15.56% 39.86% 43.86% 61.51% 63.51%
Index 500 29.16% 35.16% N/A N/A 48.63% 53.63%
Contrafund N/A N/A N/A N/A 31.54% 37.54%
Asset Manager: Growth N/A N/A N/A N/A 15.26% 21.26%
</TABLE>
* Money Market reflects the most recent ten-year period.
<PAGE>
<TABLE>
<CAPTION>
One Year Five Year Life of Fund
Surrender Surrender Surrender
Subaccounts Contracts Continue Contracts Continue Contracts Continue
- ------------------------ ------------ ----------- ------------ ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Alger American
- --------------
Small Captalization 36.23% 42.23% 132.99% 135.35% 293.83% 295.83%
Growth 28.38% 34.38% 144.46% 146.69% 209.22% 211.22%
Income and Growth 27.16% 33.16% 66.06% 69.18% 76.25% 78.25%
Balanced 20.73% 26.73% 36.70% 40.15% 47.37% 50.37%
Mid-Cap Growth 36.37% 42.37% N/A N/A 83.60% 89.60%
Leveraged All-Cap N/A N/A N/A N/A 65.94% 71.94%
MFS Variable Ins. Trust
- -----------------------
Emerging Growth N/A N/A N/A N/A 10.61% 16.61%
World Governments 6.65% 12.65% N/A N/A 0.94% 6.94%
Utilities 25.91% 31.91% N/A N/A 25.90% 31.90%
</TABLE>
YIELDS
- ------
Some subaccounts may also advertise yields. Yields quoted in advertising
reflect the change in value of a hypothetical investment in the subaccount over
a stated period of time, not taking into account capital gains or losses. Yields
are annualized and stated as a percentage. Yields do not reflect the impact of
any contingent deferred sales load.
Current yield for Money Market subaccount reflects the income generated by a
subaccount over a 7 day period. Current yield is calculated by determining the
net change, exclusive of capital changes, in the value of a hypothetical account
having one Accumulation Unit at the beginning of the period adjusting for the
maintenance charge, and dividing the difference by the value of the account at
the beginning of the base period to obtain the base period return, and
multiplying the base period return by (365/7). The resulting yield figure is
carried to the nearest hundredth of a percent. Effective yield for the Money
Market subaccount is calculated in a similar manner to current yield except that
investment income is assumed to be reinvested throughout the year at the 7 day
rate. Effective yield is obtained by taking the base period returns as computed
above, and then compounding the base period return by adding 1, raising the sum
to a power equal to (365/7) and subtracting one from the result, according the
formula Effective Yield = [Base Period Return + 1) 365/7] - 1. Since the
reinvestment of income is assumed in the calculation of effective yield, it will
generally be higher than current yield.
The net average yield for the 7-day period ended December 31, 1995 for the
Money Market Fund was 3.99% and the effective yield for the 7-day period ended
December 31, 1995 for the Money Market Fund was 4.07%
GENERAL MATTERS
- ---------------
THE POLICY
- ----------
The Policy, the application, any supplemental applications, and any
amendments or endorsements make up the entire contract. All statements made in
the application, in the absence of fraud, are considered representations and not
warranties. Only statements in the application that is attached to the Policy
and any supplemental applications made a part of the Policy when a change went
into effect can be used to contest a claim or the validity of the Policy. Only
the President, Vice President, Secretary or Assistant Secretary can modify the
Policy. Any changes must be made in writing, and approved by AVLIC. No agent has
the authority to alter or modify any of the terms, conditions or agreements of
the Policy or to waive any of its provisions.
<PAGE>
NON-PARTICIPATING
- -----------------
The Policies are non-participating. No dividends are payable and the Policies
will not share in the profits or surplus earnings of AVLIC.
ASSIGNMENT
- ----------
Any non-qualified policy and any qualified policy, if permitted by the plan
or by law relevant to the plan applicable to the qualified policy, may be
assigned by the owner prior to the annuity date and during the annuitant's
lifetime. AVLIC is not responsible for the validity of any assignment. No
assignment will be recognized until AVLIC receives written notice thereof. The
interest of any beneficiary which the assignor has the right to change shall be
subordinate to the interest of an assignee. Any amount paid to the assignee
shall be paid in one sum, not withstanding any settlement agreement in effect at
the time the assignment was executed. AVLIC shall not be liable as to any
payment or other settlement made by AVLIC before receipt of written notice.
ANNUITY DATA
- ------------
AVLIC will not be liable for obligations which depend on receiving
information from a payee until such information is received in a form
satisfactory to AVLIC.
OWNERSHIP
- ---------
The owner of the Policy on the policy date is the annuitant, unless otherwise
specified in the application. During the annuitant's lifetime, all rights and
privileges under this Policy may be exercised solely by the owner. Ownership
passes to the successor owner upon the death of the owner(s). If no successor
owner is designated or if no successor owner is living, the successor owner is
the owner's estate. From time to time AVLIC may require proof that the owner is
still living.
In order to change the owner of the Policy or assign Policy rights, an
assignment of the Policy must be made in writing and filed with AVLIC at its
Home Office. The change will take effect as of the date the change is recorded
at the Home Office, and AVLIC will not be liable for any payment made or action
taken before the change is recorded. The payment of proceeds is subject to the
rights of any assignee of record. A change in the owner will be valid only upon
absolute and complete assignment of the Policy. A collateral assignment is not a
change of ownership.
JOINT ANNUITANT
- ---------------
The owner may, by written request at least 30 days prior to the annuity date,
name a joint annuitant. Such joint annuitant must meet AVLIC's underwriting
requirements. If approved by AVLIC, the joint annuitant shall be named in the
Policy schedule pages or added by endorsement. An annuitant or joint annuitant
may not be replaced.
The annuity date shall be determined based on the date of birth of the
annuitant. If the annuitant or joint annuitant dies prior to the annuity date,
the survivor shall be the sole annuitant. Another joint annuitant may not be
designated. Payment to a beneficiary shall not be made until the death of the
surviving annuitant.
IRS REQUIRED DISTRIBUTIONS
- --------------------------
If the owner (or any joint owner) dies before the entire interest in the
Policy is distributed, the value of the Policy must be distributed to the
designated beneficiary as described in this section so that the Policy qualifies
as an annuity under the Code.
<PAGE>
If the death occurs on or after the annuity date, the remaining portion of
such interest will be distributed at least as rapidly as under the method of
distribution being used as of the date of death.
If the death occurs before the annuity date, the entire interest in the
Policy will be distributed within five years after date of death or be used to
purchase an immediate annuity under which payments will begin within one year of
the owner's death and will be made for the life of the owner's designated
beneficiary or for a period not extending beyond the life expectancy of that
beneficiary. The owner's designated beneficiary is the person to whom ownership
of the Policy passes by reason of death and must be a natural person. AVLIC
reserves the right to require proof of death.
If any portion of the owner's interest is payable to (or for the benefit of)
the surviving spouse of the owner, the Policy may be continued with the
surviving spouse as the new owner.
FEDERAL TAX MATTERS
- -------------------
TAXATION OF AVLIC
- -----------------
AVLIC is taxed as a life insurance company under Part I of Subchapter L of
the Code. Since the Account is not an entity separate from AVLIC and its
operations form a part of AVLIC, it will not be taxed separately as a "regulated
investment company" under Subchapter M of the Code. Investment income and
realized net capital gains on the assets of the Account are reinvested and are
taken into account in determining the Policy values. As a result, such
investment income and realized net capital gains are automatically retained as
part of the reserves under the Policy. Under existing federal income tax law,
AVLIC believes that Account investment income and realized net capital gains
should not be taxed to the extent that such income and gains are retained as
part of the reserves under the Policy.
TAX STATUS OF THE POLICIES
- --------------------------
Section 817(h) of the Code provides in substance that Section 72 of the Code
will not apply and AVLIC will not be treated as the owner of the assets of the
Account unless the investments made by the Account are "adequately diversified"
in accordance with regulations prescribed by the Secretary of Treasury (the
"Treasury"). If the segregated account is not "adequately diversified", any
increase in the value of a variable annuity contract will be taxed to the owner
currently. The Account, through the fund, intends to comply with the
diversification requirements prescribed by Treasury regulations , which affect
how the Fund's assets may be invested. Although AVLIC does not control the Fund,
it has entered into an agreement regarding participation in the Fund, which
requires the Fund to be operated in compliance with the requirements prescribed
by the Treasury.
QUALIFIED POLICIES
- ------------------
The Policies are designed for use with several types of qualified plans. The
following are brief descriptions of qualified plans with which the policies may
be used:
a. H.R. 10 Plans - Section 401 of the Code permits self-employed
individuals to establish qualified plans for themselves and their
employees. Such plans commonly are referred to as "H.R. 10" or "Keogh"
plans. Taxation of plan participants depends on the specified plan.
The Code governs such plans with respect to maximum contributions,
distribution dates, non- forfeitability of interests, and tax rates
applicable to distributions. In order to establish such a plan, a plan
document, usually in prototype form preapproved by the Internal Revenue
Service, is adopted and implemented by the employer. When issued in
connection with H.R. 10 plans, a Policy may be subject to special
requirements to conform to the requirements under such plans.
Purchasers of a Policy for such purposes will be provided with
supplemental information required by the Internal Revenue Service or
other appropriate agency.
<PAGE>
b. Individual Retirement Annuities - Section 408 of the Code permits
certain individuals to contribute to an individual retirement program
known as an "Individual Retirement Annuity" or an "IRA." IRA's are
subject to limitations on eligibility, maximum contributions, and time
of distribution. Distributions from certain other types of qualified
plans may be "rolled over" on a tax-deferred basis into an IRA. Sales
of a Policy for use with an IRA may be subject to special requirements
of the Internal Revenue Service. Purchasers of a Policy for such
purposes will be provided with supplemental information required by the
Internal Revenue Service or other appropriate agency.
c. Corporation Pension and Profit Sharing Plans -- Sections 401(a) and
403(a) of the Code permit corporate employers to establish various
types of retirement plans for employees. Such retirement plans may
permit the purchase of Policies in order to provide benefits under the
plans.
d. Plans of Public School Systems and Certain Tax Exempt Organizations -
Section 403(b) of the Code permits public school systems and certain
tax-exempt organizations to establish plans that provide retirement
benefits for employees through the purchase of annuity contracts. Such
plans may permit the purchase of the Policies in order to provide
benefits under the plans. Section 403(b)(11) of the Code became
effective January 1, 1989. 403(b)(11) provided that the policyholder
may not elect to withdraw funds from a plan under Section 403(b) before
age 59-1/2 and pay the taxes. The money may only be withdrawn as
provided by the Code. On November 28, 1988, the Division of Investment
Management issued a No Action Letter which stated that the Division
would not recommend enforcement action against registrants who followed
Section 403(b)(11) and did not allow such a withdrawal so long as the
No Action Letter is complied with. The Registrant is acting in reliance
on the November 28, 1988 No Action Letter and has complied, is
complying and/or will comply with its provisions. The policyholder
should fully review the prospectus and consult with his or her tax
consultant before purchasing this annuity as a part of a Section 403(b)
plan.
DISTRIBUTION OF THE POLICY
- --------------------------
Ameritas Investment Corp., the principal underwriter of the Policies, is
registered with the Securities and Exchange Commission under the Securities and
Exchange Act of 1934 as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc.
The Policies are offered to the public through brokers, licensed under the
federal securities laws and state insurance laws, and properly licensed banking
institutions that have entered into agreements with Ameritas Investment Corp.
The offering of the Policies is continuous and Ameritas Investment Corp. has
discontinued the offering of this policy in certain states and continues to
offer it in other states. However, Ameritas Investment Corp. does reserve the
right to discontinue the offering of the Policies.
SAFEKEEPING OF ACCOUNT ASSETS
- -----------------------------
Title to assets of the Account is held by AVLIC. The assets are kept
physically segregated and held separate and apart from AVLIC's general account
assets. Accumulation values deposited or transferred to the Fixed Account are
held in the General Account of AVLIC. Records are maintained of all purchases
and redemptions of eligible portfolio shares held by each of the Subaccounts.
AVLIC
- -----
All the stock of AVLIC is owned by Ameritas Life which is a mutual life
insurance company located in the state of Nebraska. AVLIC has entered into
Administration and Service Agreements with Ameritas Life to provide certain
services at cost to AVLIC to assist with the administration of the Policies and
the Account.
<PAGE>
STATE REGULATION
- ----------------
AVLIC is a stock life insurance company organized under the laws of Nebraska,
and is subject to regulation by the Nebraska State Department of Insurance. An
annual statement is filed with the Nebraska Commissioner of Insurance on or
before March 1 of each year covering the operations and reporting on the
financial condition of AVLIC as of December 31 of the preceding calendar year.
Periodically, the Nebraska Commissioner of Insurance examines the financial
condition of AVLIC, including the liabilities and reserves of the Account and
certifies their adequacy.
In addition, AVLIC is subject to the insurance laws and regulations of all
the states where it is licensed to operate. The availability of certain policy
rights and provisions depends on state approval and/or filing and review
process. Where required by state law or regulation, the Policy will be modified
accordingly.
LEGAL MATTERS
- -------------
All matters of Nebraska law pertaining to the validity of the Policy and
AVLIC's right to issue such Policies under Nebraska law have been passed upon by
Norman M. Krivosha, Director and Secretary.
EXPERTS
- -------
The financial statements of AVLIC as of December 31, 1995 and 1994 and for
each of the three years in the period ended December 31, 1995 and the financial
statements of the Account as of December 31, 1995 and for each of the three
years in the period then ended, included in this Statement of Additional
Information have been audited by Deloitte & Touche LLP, independent auditors as
stated in their reports appearing herein, and are included in reliance upon the
reports of such firm given upon their authority as experts in accounting and
auditing.
OTHER INFORMATION
- -----------------
A registration Statement has been filed with the Securities and Exchange
Commission, under the Securities Act of 1933, as amended, with respect to the
Policy discussed in this Statement of Additional Information. Not all of the
information set forth in the Registration Statement, amendments and exhibits
thereto has been included in this Statement of Additional Information or in the
Prospectus. Statements contained in this Statement of Additional Information and
the Prospectus concerning the content of the olicies and other legal instruments
are intended to be summaries. For a complete statement of the terms of these
documents, reference should be made to the instruments filed with the Securities
and Exchange Commission.
FINANCIAL STATEMENTS
- --------------------
The financial statements of AVLIC, which are included in this Statement of
Additional Information, should be considered only as bearing on the ability of
AVLIC to meet its obligations under the Policies. They should not be considered
as bearing on the investment performance of the assets held in the Accounts.
<PAGE>
Independent Auditors' Report
Board of Directors
Ameritas Variable Life
Insurance Company
Lincoln, Nebraska
We have audited the accompanying statement of net assets of Ameritas Variable
Life Insurance Company Separate Account VA-2 as of December 31, 1995, and the
related statements of operations and changes in net assets for each of the three
years in the period then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Ameritas Variable Life Insurance Company
Separate Account VA-2 as of December 31, 1995, and the results of its operations
and changes in its net assets for each of the three years in the period then
ended, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Lincoln, Nebraska
February 1, 1996
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
ASSETS
INVESTMENTS AT NET ASSET VALUE:
<S> <C>
Variable Insurance Products Fund:
Money Market Portfolio - 57,326,276.820 shares at
$1.00 per share (cost $57,326,277) $ 57,326,277
Equity-Income Portfolio - 6,108,926.067 shares at
$19.27 per share (cost $94,508,852) 117,719,005
Growth Portfolio - 2,971,949.855 shares at
$29.20 per share (cost $57,863,552) 86,780,936
High Income Portfolio - 2,977,840.998 shares at
$12.05 per share (cost $30,107,808) 35,882,984
Overseas Portfolio - 2,679,443.568 shares at
$17.05 per share (cost $40,129,300) 45,684,513
Variable Insurance Products Fund II:
Asset Manager Portfolio - 7,290,675.998 shares at
$15.79 per share (cost $98,674,251) 115,119,774
Investment Grade Bond Portfolio - 1,849,902.201 shares at
$12.48 per share (cost $21,290,557) 23,086,779
Contrafund Portfolio - 180,841.664 shares at
$13.78 per share (cost $2,484,527) 2,491,998
Asset Manager: Growth Portfolio - 18,976.724 shares at
$11.78 per share (cost $227,044) 223,546
Index 500 Portfolio - 8,760.127 shares at
$75.71 per share (cost $640,072) 663,229
Alger American Fund:
Small Capitalization Portfolio - 1,122,238.230 shares at
$39.41 per share (cost $33,526,841) 44,227,409
Growth Portfolio - 779,513.143 shares at
$31.16 per share (cost $19,359,618) 24,289,630
Income and Growth Portfolio - 375,290.867 shares at
$17.79 per share (cost $5,886,975) 6,676,424
Balanced Portfolio - 185,210.868 shares at
$13.64 per share (cost $2,206,036) 2,526,276
Midcap Growth Portfolio - 767,854.736 shares at
$19.44 per share (cost $12,645,906) 14,927,096
Leveraged Allcap Portfolio - 59,119.959 shares at
$17.43 per share (cost $1,013,339) 1,030,461
Dreyfus Stock Index Fund:
Stock Index Fund Portfolio - 497,239.510 shares at
$17.20 per share (cost $7,182,861) 8,552,520
MFS Variable Insurance Trust:
Emerging Growth Series Portfolio - 82,885.087 shares at
$11.41 per share (cost $954,293) 945,719
World Governments Series Portfolio - 17,352.610 shares at
$10.17 per share (cost $188,160) 176,476
Utilities Series Portfolio - 43,059.498 shares at
$12.57 per share (cost $555,844) 541,258
----------------
NET ASSETS REPRESENTING EQUITY OF POLICYOWNERS $ 588,872,310
================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
STATEMENT OF NET ASSETS (cont'd.)
DECEMBER 31, 1995
Number of Units Unit Value
--------------- ----------
<S> <C> <C> <C>
Variable Insurance Products Fund:
Money Market Portfolio 41,390,848.004 1.384999 $ 57,326,277
Equity-Income Portfolio 4,341,950.825 27.112008 117,719,005
Growth Portfolio 2,680,503.815 32.374860 86,780,936
High Income Portfolio 1,638,820.985 21.895609 35,882,984
Overseas Portfolio 2,693,065.371 16.963759 45,684,513
Variable Insurance Product Fund II:
Asset Manager Portfolio 6,384,770.138 18.030371 115,119,774
Investment Grade Bond Portfolio 1,584,105.144 14.574020 23,086,779
Contrafund Portfolio 179,239.249 13.903194 2,491,998
Asset Manager: Growth Portfolio 18,219.455 12.26962 223,546
Index 500 Portfolio 8,789.710 75.455188 663,229
Alger American Fund:
Small Capitalization Portfolio 1,084,733.736 40.772594 44,227,409
Growth Portfolio 743,312.674 32.677540 24,289,630
Income and Growth Portfolio 366,345.060 18.224413 6,676,424
Midcap Growth Portfolio 793,128.739 18.820521 14,927,096
Balanced Portfolio 182,890.799 13.813031 2,526,276
Leveraged Allcap Portfolio 59,364.752 17.358127 1,030,461
Dreyfus Stock Index Fund:
Stock Index Fund Portfolio 373,353.176 22.907317 8,552,520
MFS Variable Insurance Trust:
Emerging Growth Series Portfolio 80,881.596 11.692633 945,719
World Governments Series Portfolio 15,779.622 11.183794 176,476
Utilities Series Portfolio 40,557.341 13.345497 541,258
---------------
$ 588,872,310
===============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
1995 1994 1993
---------------- --------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividend distributions received $ 10,791,789 $ 6,905,119 $ 4,452,093
EXPENSE
Charges to policyowners for assuming
mortality and expense risk (Note B) 6,093,514 4,473,521 2,506,839
------------- ------------- -------------
INVESTMENT INCOME - NET 4,698,275 2,431,598 1,945,254
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS - NET
Capital gain distributions received 2,906,457 9,513,298 1,933,896
Unrealized increase/(decrease) 83,391,448 (18,327,838) 25,810,690
------------ ------------- ------------
NET GAIN/(LOSS) ON INVESTMENTS 86,297,905 (8,814,540) 27,744,586
------------ ------------- ------------
NET INCREASE/(DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS 90,996,180 (6,382,942) 29,689,840
NET INCREASE IN NET ASSETS RESULTING
FROM PREMIUM PAYMENTS AND OTHER
OPERATING TRANSFERS (Note B) 93,106,859 123,008,669 124,378,071
------------ ------------ -----------
TOTAL INCREASE IN NET ASSETS 184,103,039 116,625,727 154,067,911
NET ASSETS
Beginning of period 404,769,271 288,143,544 134,075,633
------------ ------------- -------------
End of period $ 588,872,310 $ 404,769,271 $ 288,143,544
============ ============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
A. ORGANIZATION AND ACCOUNTING POLICIES:
-------------------------------------
Ameritas Variable Life Insurance Company Separate Account VA-2 (the
Account) was established on May 28, 1987, under Nebraska law by Ameritas
Variable Life Insurance Company (AVLIC), a wholly-owned subsidiary of
Ameritas Life Insurance Corp. (ALIC). The assets of the Account are
segregated from AVLIC's other assets and are used only to support variable
annuity products issued by AVLIC.
The Account is registered under the Investment Company Act of 1940, as
amended, as a unit investment trust. At December 31, 1995, there are twenty
subaccounts within the Account. Five of the subaccounts invest only in a
corresponding Portfolio of the Variable Insurance Products Fund, and five
invest only in a corresponding Portfolio of Variable Insurance Products
Fund II. Both funds are diversified open-end management investment
companies and are managed by Fidelity Management and Research Company. Six
of the subaccounts invest only in a corresponding Portfolio of Alger
American Fund which is a diversified open-end management investment company
managed by Fred Alger Management, Inc. One subaccount invests only in a
corresponding Portfolio of Dreyfus Stock Index Fund which is a
non-diversified open-end management investment company managed by Dreyfus
Service Corporation. Three of the subaccounts invest only in a
corresponding Portfolio of MFS Variable Insurance Trust which is a
diversified open-end management investment company managed by Massachusetts
Financial Services Company. All five funds are registered under the
Investment Company Act of 1940, as amended. Each Portfolio pays the manager
a monthly fee for managing its investments and business affairs. The assets
of the Account are carried at the net asset value of the underlying
Portfolios of the funds, and the value of the policyowners' units
corresponds to the Account's investment in the underlying subaccounts. The
availability of investment portfolio and subaccount options may vary
between products.
AVLIC currently does not expect to incur any federal income tax liability
attributable to the Account with respect to the sale of the variable
annuity policies. If, however, AVLIC determines that it may incur such
taxes attributable to the Account, it may assess a charge for such taxes
against the account.
B. POLICYHOLDER CHARGES:
---------------------
AVLIC charges the Account for mortality and expense risks assumed. A daily
charge is made on the average daily value of the net assets representing
equity of policyowners held in each subaccount per each product's current
policy provisions. Additional charges are made at intervals and in amounts
per each product's current policy provisions. These charges are prorated
against the balance in each investment option of the policyholder,
including the Fixed Account option which is not reflected in this separate
account. The withdrawal of these charges are included as other operating
transfers.
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
C. INFORMATION BY FUND:
<TABLE>
<CAPTION>
Variable Insurance Products Fund
-------------------------------------------------------------------------------
Money Equity- High
Market Income Growth Income Overseas
-------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Balance 12-31-94 $ 64,578,099 $ 47,394,555 $ 59,264,436 $ 19,815,317 $ 32,138,329
Distributed earnings 3,385,236 4,417,946 390,703 1,473,552 241,854
Mortality risk charge (738,735) (943,916) (957,307) (415,996) (465,500)
Unrealized increase/(decrease) --- 17,850,823 20,702,655 4,685,960 3,572,714
Net premium transferred (9,898,323) 48,999,597 7,380,449 10,324,151 10,197,116
-------------- ------------- --------------- ------------ ------------
Balance 12-31-95 $ 57,326,277 $ 117,719,005 $ 86,780,936 $ 35,882,984 $ 45,684,513
============== ============= =============== ============ ============
Variable Insurance Products Fund II
------------------------------------------------------------------------------
Asset Investment Contrafund Asset Mgr.: Index 500
Manager Grade Bond (1) Growth (2) (3)
------------- ------------- ------------ -------------- -------------
Balance 12-31-94 $ 121,107,120 $ 14,907,528 $ --- $ --- $ ---
Distributed earnings 2,486,418 741,402 30,567 9,363 ---
Mortality risk charge (1,449,245) (253,150) (3,944) (266) (1,143)
Unrealized increase/(decrease) 15,665,746 2,423,519 7,472 (3,498) 23,156
Net premium transferred (22,690,265) 5,267,480 2,457,903 217,947 641,216
-------------- ------------ ------------- -------------- ------------
Balance 12-31-95 $ 115,119,774 $ 23,086,779 $ 2,491,998 $ 223,546 $ 663,229
============== ============ ============= ============== ============
Alger American Fund
------------------------------------------------------------------------------------
Small Income and Midcap Leveraged
Capitalization Growth Growth Growth Balanced Allcap(4)
--------------- ------------ ----------- ----------- ----------- -----------
Balance 12-31-94 $ 19,196,546 $ 15,553,231 $ 2,348,430 $ 3,540,066 $ 1,030,537 $ ---
Distributed earnings --- 156,976 30,164 692 24,117 ---
Mortality risk charge (390,434) (218,376) (51,556) (96,907) (20,525) (1,843)
Unrealized increase/(decrease) 8,996,789 4,297,843 848,211 2,128,071 340,663 17,122
Net premium transferred 16,424,508 4,499,956 3,501,175 9,355,174 1,151,484 1,015,182
------------ ------------ ----------- ---------- ----------- -----------
Balance 12-31-95 $ 44,227,409 $ 24,289,630 $ 6,676,424 $14,927,096 $ 2,526,276 $ 1,030,461
============ ============ =========== =========== =========== ===========
MFS Variable Insurance Trust Dreyfus
---------------------------------------------- -------------
Emerging World (6) Utilities Stock
Growth(5) Governments (7) Index Fund TOTAL
------------- --------------- ------------- ------------- --------------
Balance 12-31-94 $ --- $ --- $ --- $ 3,895,077 $ 404,769,271
Distributed earnings 25,522 16,669 33,188 233,877 13,698,246
Mortality risk charge (1,676) (481) (592) (81,922) (6,093,514)
Unrealized increase/(decrese) (8,574) (11,684) (14,585) 1,869,045 83,391,448
Net premium transferred 930,447 171,972 523,247 2,636,443 93,106,859
------------- -------------- ------------ ----------- --------------
Balance 12-31-95 $ 945,719 $ 176,476 $ 541,258 $ 8,552,520 $ 588,872,310
============= ============== ============ =========== ==============
(1) Commenced business 08/25/95. (5) Commenced business 08/25/95.
(2) Commenced business 09/15/95. (6) Commenced business 08/24/95.
(3) Commenced business 09/21/95. (7) Commenced business 09/18/95.
(4) Commenced business 08/30/95.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
C. INFORMATION BY FUND:
Alger American Fund
--------------------------------------------------------------------------------
Small Income Midcap
Capitalization Growth and Growth Growth Balanced
--------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Balance 12-31-93 $ 16,350,688 $ 4,033,279 $ 1,486,488 $ 1,241,078 $ 398,861
Distributed earnings 920,888 349,387 79,765 3,756 15,142
Mortality risk charge (191,599) (77,513) (21,926) (17,859) (8,792)
Unrealized increase/(decrease) (1,419,617) 57,051 (188,024) 73,432 (31,583)
Net premium transferred 3,536,186 11,191,027 992,127 2,239,659 656,909
--------------- ------------ ------------ ------------- ------------
Balance 12-31-94 $ 19,196,546 $ 15,553,231 $ 2,348,430 $ 3,540,066 $ 1,030,537
=============== ============ ============= ============= ============
Units Owned 12-31-94 671,144.393 641,126.689 172,001.664 268,394.026 94,786.818
Unit Value 28.602706 24.259216 13.653531 13.189810 10.872152
-------------- ------------ ------------ ------------ -------------
Fund Value $ 19,196,546 $ 15,553,231 $ 2,348,430 $ 3,540,066 $ 1,030,537
============== ============ ============ ============ =============
Variable Insurance Products Fund
--------------------------------------------------------------------------------
Money Equity- High
Market Income Growth Income Overseas
--------------- ------------- ------------- ------------- -------------
Balance 12-31-93 $ 31,379,124 $ 32,522,382 $ 47,340,345 $ 14,780,768 $ 26,209,548
Distributed earnings 2,394,455 2,724,507 3,209,519 1,502,298 154,645
Mortality risk charge (689,406) (506,822) (627,238) (226,605) (394,955)
Unrealized increase/(decrease) --- (101,881) (1,669,742) (1,667,003) (325,590)
Net premium transferred 31,493,926 12,756,369 11,011,552 5,425,859 6,494,681
-------------- ------------ -------------- ------------ -------------
Balance 12-31-94 $ 64,578,099 $ 47,394,555 $ 59,264,436 $ 19,815,317 $ 32,138,329
============== ============ ============== ============ =============
Units Owned 12-31-94 48,755,227.272 2,332,200.380 2,448,226.330 1,076,076.694 2,050,429.513
Unit Value 1.324537 20.321819 24.20709 18.41441 15.67395
---------------- ------------- -------------- -------------- --------------
Fund Value $ 64,578,099 $ 47,394,555 $ 59,264,436 $ 19,815,317 $ 32,138,329
================ ============= ============== ============== ==============
Variable Insurance
Products Fund II Dreyfus
----------------------------- -------------
Asset Investment Stock
Manager Grade Bond Index Fund TOTAL
-------------- ------------ ------------- -------------
Balance 12-31-93 $ 93,247,898 $ 16,150,701 $ 3,002,384 $ 288,143,544
Distributed earnings 4,919,949 43,054 101,052 16,418,417
Mortality risk charge (1,466,830) (201,910) (42,066) (4,473,521)
Unrealized increase/(decrease) (12,320,921) (662,594) (71,366) (18,327,838)
Net premium transferred 36,727,024 (421,723) 905,073 123,008,669
--------------- ------------ ----------- -------------
Balance 12-31-94 $ 121,107,120 $ 14,907,528 $ 3,895,077 $ 404,769,271
=============== ============ =========== =============
Units Owned 12-31-94 7,758,786.284 1,185,301.883 229,756.110
Unit Value 15.609029 12.576988 16.953095
--------------- ------------- ------------
Fund Value $ 121,107,120 $ 14,907,528 $ 3,895,077 $ 404,769,271
=============== ============= ============ =============
</TABLE>
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
C. INFORMATION BY FUND:
<TABLE>
<CAPTION>
Alger American Fund
--------------------------------------------------------------------------------
Small Income Midcap
Capitalization Growth and Growth Growth(1) Balanced(2)
--------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Balance 12-31-92 $ 6,019,803 $ 1,239,236 $ 462,046 $ --- $ ---
Distributed earnings --- 2,275 2,270 12,874 ---
Mortality risk charge (129,069) (40,709) (11,740) (2,506) (1,100)
Unrealized increase/(decrease) 2,526,576 489,862 92,877 79,687 11,161
Net premium transferred 7,933,378 2,342,615 941,035 1,151,023 388,800
--------------- ------------- ------------- -------------- ------------
Balance 12-31-93 $ 16,350,688 $ 4,033,279 $ 1,486,488 $ 1,241,078 $ 398,861
=============== ============= ============= ============== ============
Units Owned 12-31-93 539,880.302 166,606.094 98,620.982 91,504.219 34,686.690
Unit Value 30.285775 24.208502 15.072731 13.563070 11.498952
--------------- ------------- ------------- -------------- -----------
Fund Value $ 16,350,688 $ 4,033,279 $ 1,486,488 $ 1,241,078 $ 398,861
=============== ============= ============= ============== ===========
Variable Insurance Products Fund
--------------------------------------------------------------------------------
Money Equity- High
Market Income Growth Income Overseas
--------------- ------------- ------------- ------------- -------------
Balance 12-31-92 $ 29,668,140 $ 17,944,740 $ 22,003,274 $ 6,438,579 $ 5,204,318
Distributed earnings 905,971 709,393 631,581 662,288 123,355
Mortality risk charge (353,926) (327,850) (417,745) (159,048) (135,471)
Unrealized increase/(decrease) --- 3,398,207 4,791,173 1,637,298 2,845,554
Net premium transferred 1,158,939 10,797,892 20,332,062 6,201,651 18,171,792
---------------- ------------- ------------- ------------- ------------
Balance 12-31-93 $ 31,379,124 $ 32,522,382 $ 47,340,345 $ 14,780,768 $ 26,209,548
================ ============= ============== ============= =============
Units Owned 12-31-93 24,394,597.763 1,692,367.958 1,930,905.248 780,485.192 1,680,013.325
Unit Value 1.286314 19.217087 24.517177 18.937922 15.600798
---------------- ------------- ------------- ------------- --------------
Fund Value $ 31,379,124 $ 32,522,382 $ 47,340,345 $ 14,780,768 $ 26,209,548
================ ============= ============= ============= =============
Variable Insurance
Products Fund II Dreyfus
------------------------------ -------------
Asset Investment Stock
Manager Grade Bond Index Fund TOTAL
-------------- ------------- ------------- -------------
Balance 12-31-92 $ 34,649,384 $ 9,649,029 $ 797,084 $ 134,075,633
Distributed earnings 1,816,389 901,144 618,449 6,385,989
Mortality risk charge (746,442) (157,317) (23,916) (2,506,839)
Unrealized increase/(decrease) 10,105,096 274,580 (441,381) 25,810,690
Net premium transferred 47,423,471 5,483,265 2,052,148 124,378,071
--------------- ------------- ------------ --------------
Balance 12-31-93 $ 93,247,898 $ 16,150,701 $ 3,002,384 $ 288,143,544
=============== ============= ============ ==============
Units Owned 12-31-93 5,540,619.649 1,220,611.462 176,454.414
Unit Value 16.829868 13.231648 17.015069
--------------- -------------- -------------
Fund Value $ 93,247,898 $ 16,150,701 $ 3,002,384 $ 288,143,544
=============== ============== ============= ==============
(1) Commenced business 5/26/93.
(2) Commenced business 6/08/93.
</TABLE>
<PAGE>
Independent Auditors' Report
Board of Directors
Ameritas Variable Life
Insurance Company
Lincoln, Nebraska
We have audited the accompanying balance sheets of Ameritas Variable Life
Insurance Company as of December 31, 1995 and 1994, and the related statements
of operations, changes in stockholder's equity and cash flows for each of the
three years in the period ended December 31, 1995. These financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Ameritas Variable Life Insurance Company as
of December 31, 1995 and 1994, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 1995, in
conformity with statutory accounting principles which are considered generally
accepted accounting principles for mutual life insurance companies and their
insurance subsidiaries.
As discussed in Note A to the financial statements, effective December 31, 1995,
the Company changed a reserving practice.
DELOITTE & TOUCHE LLP
Lincoln, Nebraska
February 1, 1996
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
BALANCE SHEETS
(in thousands, except shares)
December 31,
---------------------------
1995 1994
------------ ------------
ASSETS
<S> <C> <C>
Investments:
Bonds, at amortized cost ( fair value of $40,344
and $34,021) (Note C) $ 38,753 $ 34,607
Short-term investments 4,289 7,714
Loans on life insurance policies 2,639 1,597
------------- -------------
Total investments 45,681 43,918
Cash 1,371 431
Accrued investment income 790 774
Reinsurance recoverable - affiliates (Note E) 57 467
Other assets 76 129
Separate Accounts (Note F) 682,482 462,886
------------- ------------
$ 730,457 $ 508,605
============= ============
LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES:
Life and annuity reserves $ 28,740 $ 30,578
Funds left on deposit with the company 87 142
Interest maintenance reserve 41 36
Accounts payables - affiliates (Note E) 1,926 884
Income tax payable-affiliates 1,221 36
Accrued professional fees 20 11
Sundry current liabilities -
Cash with applications 1,305 562
Other 662 692
Valuation reserve 193 163
Separate Accounts (Note F) 682,482 462,886
------------- -----------
716,677 495,990
------------- -----------
STOCKHOLDER'S EQUITY:
Common stock, par value $100 per share; 4,000 4,000
authorized 50,000 shares, issued and
outstanding 40,000 shares
Additional paid-in capital 29,700 29,700
Deficit (19,920) (21,085)
------------- -----------
13,780 12,615
------------- -----------
$ 730,457 $ 508,605
============ ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(in thousands)
Year Ended December 31,
--------------------------------------------------------
1995 1994 1993
-------------- --------------- ---------------
<S> <C> <C> <C>
INCOME:
Premium income $ 158,436 $ 174,085 $ 155,166
Less reinsurance: (Note E)
Yearly renewable term (5,110) (1,333) (843)
-------------- --------------- ---------------
Net premium income 153,326 172,752 154,323
Miscellaneous insurance income 4,482 1,398 459
Net investment income (Note D) 3,507 3,050 2,897
-------------- --------------- ---------------
161,315 177,200 157,679
-------------- --------------- ---------------
EXPENSES:
Increase (decrease) in reserves (296) (637) 1,717
Benefits to policyowners 31,094 19,012 8,128
Commissions 14,813 15,799 13,080
General insurance expenses (Note E) 6,641 6,403 4,216
Taxes, licenses and fees 1,275 1,183 829
Net premium transferred to
Separate Accounts (Note F) 106,053 139,974 136,451
------------- --------------- ---------------
159,580 181,734 164,421
------------- --------------- ---------------
Income(loss) before income taxes
and realized capital gains 1,735 (4,534) (6,742)
Income taxes (benefit)-current 1,752 (611) (1,501)
-------------- --------------- ---------------
(Loss) before realized capital gains (17) (3,923) (5,241)
Realized capital gains(losses) (net of tax
of $12, $11 and $19 and $18, $12 and
$32 transfers to interest maintenance
reserve for 1995, 1994 and 1993,
respectively) (2) (2) 1
-------------- --------------- ---------------
Net (loss) $ (19) $ (3,925) $ (5,240)
============== =============== ===============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands, except shares)
Additional
Common Stock Paid in
Shares Amount Capital Deficit Total
------------ ----------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
BALANCE, January 1, 1993 40,000 $ 4,000 $ 18,200 $ (11,793) $ 10,407
Transfer to valuation reserve - - - (62) (62)
Capital contribution from
Ameritas Life Insurance Corp. - - 5,500 - 5,500
Net (loss) - - - (5,240) (5,240)
------------ ----------- ------------- ------------ ------------
BALANCE, December 31, 1993 40,000 4,000 23,700 (17,095) 10,605
Increase in non-admitted assets (2) (2)
Transfer to valuation reserve - - - (63) (63)
Capital contribution from
Ameritas Life Insurance Corp. - - 6,000 - 6,000
Net (loss) - - - (3,925) (3,925)
------------ ------------ ------------- ------------ ------------
BALANCE, December 31, 1994 40,000 4,000 29,700 (21,085) 12,615
Decrease in non-admitted assets - - - 5 5
Transfer to valuation reserve - - - (30) (30)
Release of reserves (Note A) - - - 1,618 1,618
Settlement/intercompany taxes - - - (409) (409)
Net (loss) - - - (19) (19)
----------- ----------- ------------- ------------ ------------
BALANCE, December 31, 1995 40,000 $ 4,000 $ 29,700 $ (19,920) $ 13,780
=========== =========== ============= ============ ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
---------------------------------------------------------
1995 1994 1993
-------------- --------------- -----------------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net premium income received $ 153,867 $ 172,701 $ 154,408
Miscellaneous insurance income 4,201 1,398 459
Net investment income received 3,405 2,899 2,848
Net premium transferred to Separate Accounts (105,654) (140,161) (136,451)
Benefits paid to policyowners (31,200) (18,944) (8,207)
Commissions (12,343) (15,799) (13,080)
Expenses and taxes (10,664) (7,547) (4,939)
Net increase in policy loans (1,041) (576) (592)
Income taxes (987) 527 1,630
Other operating income and disbursements 1,978 (2,222) 270
-------------- --------------- -----------------
Net cash provided by (used in) operating activities 1,562 (7,724) (3,654)
-------------- --------------- -----------------
INVESTING ACTIVITIES:
Maturity of bonds 3,713 5,108 8,266
Purchase of investments (7,760) (15,673) (1,460)
-------------- --------------- -----------------
Net cash (used in) provided by investing activities (4,047) (10,565) 6,806
-------------- --------------- -----------------
FINANCING ACTIVITIES:
Capital contribution - 6,000 5,500
-------------- --------------- -----------------
NET (DECREASE) INCREASE IN CASH AND
SHORT TERM INVESTMENTS (2,485) (12,289) 8,652
CASH AND SHORT TERM INVESTMENTS -
BEGINNING OF PERIOD 8,145 20,434 11,782
-------------- --------------- -----------------
CASH AND SHORT TERM INVESTMENTS -
END OF PERIOD $ 5,660 $ 8,145 $ 20,434
============== =============== =================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
A. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
---------------------------------------------------------------------
Ameritas Variable Life Insurance Company (the Company), a stock life
insurance company domiciled in the State of Nebraska, is a wholly-owned
subsidiary of Ameritas Life Insurance Corp.(ALIC), a mutual life insurance
company. The Company began issuing variable life insurance and variable
annuity policies in 1987. The variable life and variable annuity policies
are not participating with respect to dividends.
The accompanying financial statements have been prepared in accordance with
life insurance accounting practices prescribed by the Insurance Department
of the State of Nebraska. While appropriate for mutual life insurance
companies, such accounting practices differ in certain respects from
generally accepted accounting principles followed by other business
enterprises. The Financial Accounting Standards Board (FASB) has undertaken
consideration of changing those methods constituting generally accepted
accounting principles applicable to mutual life insurance companies. In
accordance with pronouncements issued by the FASB in 1993 and 1994,
financial statements prepared on the basis of statutory accounting practices
will no longer be described as prepared in conformity with generally
accepted accounting principles for fiscal years beginning after December 15,
1995.
USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
The principal accounting and reporting practices followed are:
INVESTMENTS - Bonds and short-term investments earning interest are carried
at amortized cost which, for short-term investments, approximates market.
Separate account assets are carried at market. Realized gains and losses are
determined on the basis of specific identification.
ACQUISITION COSTS - Commissions, reinsurance ceded allowances, underwriting
and other costs of issuing new policies as well as maintenance and
settlement costs are reported as costs of insurance operations in the period
incurred.
PREMIUMS - Premiums are reported as income when collected over the premium
paying periods of the policies. Premium income consists of:
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
1995 1994 1993
-------------- -------------- --------------
<S> <C> <C>
Life $ 32,020 $ 31,980 $ 20,591
Annuity 126,416 142,105 134,575
-------------- -------------- --------------
$ 158,436 $ 174,085 $ 155,166
============== ============== ==============
</TABLE>
POLICY RESERVES - Generally, reserves for variable life and annuity policies
are established and maintained on the basis of each policyholder's interest
in the account values of Separate Accounts V and VA-2. However, reserves
established for certain annuity products are determined on the basis of the
Commissioner's Annuity Reserve Valuation Method (CARVM) reserving method
which approximates surrender values. The account values are net of
applicable cost of insurance and other expense charges. The cost of
insurance has been developed by actuarial methods. The Company uses the
mortality rates from the Commissioners 1980 Standard Ordinary Smoker and
Non- Smoker, Male and Female Mortality Tables in computing minimum values
and reserves. Policy reserves are also provided for amounts held in the
general accounts consistent with requirements of the Nebraska Department of
Insurance.
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
A. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
---------------------------------------------------------------------
(Continued)
-----------
INTEREST MAINTENANCE RESERVE - The interest maintenance reserve is
calculated based on the prescribed methods developed by the NAIC. This
reserve is used to accumulate realized gains and losses resulting from
interest rate changes on fixed income investments. These gains and losses
are then amortized into investment income over what would have been the
remaining years to maturity of the underlying investment.
VALUATION RESERVE - Valuation reserves are a required appropriation of
Stockholder's Equity to provide for possible losses that may occur on
certain investments held by the Company. The appropriation (Asset Valuation
Reserve) is based on the holdings of bonds, stocks, mortgages, real estate
and short-term investments. Realized and unrealized gains and losses, other
than those resulting from interest rate changes, are added or charged to the
reserve (subject to certain maximums).
INCOME TAXES - The Company files a consolidated life/non-life tax return
with Ameritas Life Insurance Corp. and its subsidiaries. An agreement among
the members of the consolidated group provides for distribution of
consolidated tax results as if filed on a separate return basis. The current
income tax expense or benefit (including effects of capital gains and losses
and net operating losses) is apportioned generally on a sub-group
(life/non-life) basis. As a result of differences in accounting between book
and tax purposes for certain items, primarily deferred acquisition costs and
certain reserve calculations, taxes are provided in excess of the 35%
statutory corporate rate.
CHANGE IN ACCOUNTING - Effective December 31, 1995 the Company released the
voluntary mortality fluctuation reserve through a credit to stockholder's
equity. The increase in reserve included in the statements of operations for
the years ended 1995, 1994 and 1993 were $659, $421 and $135, respectively.
B. FINANCIAL INSTRUMENTS:
----------------------
The following methods and assumptions were used to estimate the fair value
of each class of financial instrument for which it is practicable to
estimate a value:
Bonds
For publicly traded securities, fair value is determined using an
independent pricing source. For securities without a readily ascertainable
fair value, fair value has been determined using an interest rate spread
matrix based upon quality, weighted average maturity, and Treasury yields.
Short-term Investments
The carrying amount approximates fair value because of the short maturity of
these instruments.
Loans on Life Insurance Policies
Fair values for policy loans are estimated using discounted cash flow
analyses at interest rates currently offered for similar loans. Policy loans
with similar characteristics are aggregated for purposes of the
calculations.
Cash
The carrying amounts reported in the balance sheet equals fair value.
Accrued Investment Income
Fair value on accrued investment income equals book value.
Funds left on Deposit
Funds on deposit which do not have fixed maturities are carried at the
amount payable on demand at the reporting date.
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
B. FINANCIAL INSTRUMENTS: (Continued)
----------------------------------
The estimated fair values, as of December 31, 1995 and 1994, of the
Company's financial instruments are as follows:
<TABLE>
<CAPTION>
1995 1994
--------------------------------- --------------------------------
Carrying Fair Carrying Fair
Amount Value Amount Value
--------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Financial Assets:
Bonds $ 38,753 $ 40,344 $ 34,607 $ 34,021
Short-term investments 4,289 4,289 7,714 7,714
Loans on life insurance policies 2,639 2,346 1,597 1,190
Cash 1,371 1,371 431 431
Accrued investment income 790 790 774 774
Financial Liabilities:
Funds left on deposit 87 87 142 142
These fair values do not necessarily represent the value for which the financial instrument could be sold.
</TABLE>
C. BONDS:
------
The table below provides additional information relating to bonds held by
the Company as of December 31, 1995:
<TABLE>
<CAPTION>
Gross Gross
Amortized Fair Unrealized Unrealized Carrying
Cost Value Gains Losses Value
-------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
LONG TERM BONDS:
Corporate-U.S. $ 20,667 $ 21,597 $ 930 $ - $ 20,667
Mortgage-Backed 3,628 3,742 114 - 3,628
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies 14,458 15,005 551 4 14,458
-------------- ------------- ------------ ------------- ------------
$ 38,753 $ 40,344 $ 1,595 4 $ 38,753
============== ============= ============ ============= ============
</TABLE>
The comparative data as of December 31, 1994 is summarized as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Fair Unrealized Unrealized Carrying
Cost Value Gains Losses Value
-------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
LONG TERM BONDS:
Corporate-U.S. $ 19,634 $ 19,396 $ 160 $ 398 $ 19,634
Corporate-Foreign 1,000 1,008 8 - 1,000
Mortgage-Backed 1,149 1,184 35 - 1,149
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies 12,824 12,433 47 438 12,824
-------------- ------------- ------------ ------------- -------------
$ 34,607 $ 34,021 $ 250 $ 836 $ 34,607
============== ============= ============ ============= =============
</TABLE>
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
C. BONDS: (Continued)
------------------
The carrying value and fair value of bonds at December 31, 1995 by
contractual maturity are shown below:
<TABLE>
<CAPTION>
Fair Carrying
Value Value
--------------- ----------------
<S> <C> <C>
Due in one year or less $ 10,731 $ 10,429
Due after one year through five years 25,368 24,200
Due after five years through ten years 503 496
Due after ten years - -
Mortgage-Backed Securities 3,742 3,628
--------------- ----------------
$ 40,344 $ 38,753
=============== ================
Investments in securities of one issuer other than United States Government
and United States Government Agencies which exceed 10% of total
stockholder's equity as of December 31, 1995 are as follows:
</TABLE>
<TABLE>
<CAPTION>
Included in Bonds: Carrying
ISSUER Value
------ --------------
<S> <C>
Leggett & Platt Inc Medium Term Notes $ 1,500
Sears, Roebuck & Co 1,499
Included in Short-Term Investments:
ISSUER
------
GTE Northwest Inc Discount Note $ 1,500
Goldman Sachs Money Market Treasury Obligations 1,539
Investments in securities of one issuer other than United States Government
and United States Government Agencies which exceed 10% of total
stockholder's equity as of December 31, 1994 are as follows:
Included in Bonds: Carrying
ISSUER Value
------ -------------
Leggett & Platt Inc Medium Term Notes $ 1,500
Sears, Roebuck & Co 1,499
Included in Short-Term Investments:
ISSUER
------
GTE Northwest Inc Discount Note $ 1,397
Potomac Electric Power Co Disc Note 1,499
AT&T Corp Disc Note 1,299
Cargill Inc Disc Note 1,496
At December 31, 1995, the Company had securities with a market value of $3,356
on deposit with various State Insurance Departments.
</TABLE>
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
D. INVESTMENT INCOME:
------------------
Net investment income for the years ended December 31, 1995, 1994 and 1993
is comprised as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
1995 1994 1993
--------------- --------------- ----------------
<S> <C> <C> <C>
Bonds $ 2,819 $ 2,410 $ 2,384
Short-term investments 597 609 529
IMR amortization 15 5 1
Loans on life insurance policies 128 82 39
--------------- ---------------- ---------------
Gross investment income 3,559 3,106 2,953
Less investment expenses 52 56 56
--------------- ---------------- ---------------
Net investment income $ 3,507 $ 3,050 $ 2,897
=============== ================ ===============
</TABLE>
E. RELATED PARTY TRANSACTIONS:
---------------------------
Ameritas Life Insurance Corp. provides technical, financial and legal
support to the Company under an administrative service agreement. The cost
of these services to the Company for years ended December 31, 1995, 1994 and
1993 was $4,858, $4,029 and $1,915, respectively. The Company also leases
office space and furniture and equipment from Ameritas Life Insurance Corp.
The cost of these leases to the Company for the years ended December 31,
1995, 1994 and 1993 was $37, $40 and $54, respectively.
Under the terms of an investment advisory agreement, the Company paid $44,
$43 and $44 for the years ended December 31, 1995, 1994 and 1993 to Ameritas
Investment Advisors Inc., an indirect wholly-owned subsidiary of Ameritas
Life Insurance Corp.
The Company entered into a reinsurance agreement (yearly renewable term)
with Ameritas Life Insurance Corp. Under this agreement, Ameritas Life
Insurance Corp. assumes life insurance risk in excess of the Company's $50
retention limit. The Company recorded $5,085 of gross reinsurance premiums
for the year ended December 31, 1995 which includes reinsurance ceded
commission allowances of $2,805 resulting in net reinsurance ceded premiums
of $2,280. In 1994 and 1993 the Company reported reinsurance ceded premiums
net of reinsurance ceded commission allowances. The Company paid $1,333 and
$843 of net reinsurance premiums for the years ended December 31, 1994 and
1993, respectively.
The Company has entered into a guarantee agreement with Ameritas Life
Insurance Corp., whereby, Ameritas Life Insurance Corp. guarantees the full,
complete and absolute performance of all duties and obligations of the
Company.
The Company's products are distributed through Ameritas Investment Corp., an
indirect wholly-owned subsidiary of Ameritas Life Insurance Corp. The
Company received $192, $272 and $23 for the years ended December 31, 1995,
1994 and 1993, respectively, from this affiliate to partially defray the
costs of materials and prospectuses. Policies placed by this affiliate
generated commission expense of $14,028, $15,223 and $12,621 for the years
ended December 31, 1995, 1994 and 1993, respectively.
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(in thousands)
F. SEPARATE ACCOUNTS:
------------------
The Company is currently marketing variable life and variable annuity
products which have separate accounts as an investment option. Separate
Account V (Account V) was formed to receive and invest premium receipts from
variable life insurance policies issued by the Company. Separate Account
VA-2 (Account VA-2) was formed to receive and invest premium receipts from
variable annuity policies issued by the Company. Both Separate Accounts are
registered under the Investment Company Act of 1940, as amended, as unit
investment trusts. Account V and VA-2's assets and liabilities are
segregated from the other assets and liabilities of the Company.
Amounts in the Separate Accounts are:
December 31,
---------------------------
1995 1994
------------ ------------
Separate Account V $ 93,610 $ 58,117
Separate Account VA-2 588,872 404,769
------------ ------------
$ 682,482 $ 462,886
============ ============
The assets of Account V are invested in shares of the Variable Insurance
Products Fund, the Variable Insurance Products Fund II, Alger American Fund,
Dreyfus Stock Index Fund and MFS Variable Insurance Trust. Each fund is
registered with the SEC under the Investment Company Act of 1940, as
amended, as an open-end diversified management investment company.
The Variable Insurance Products Fund and the Variable Insurance Products
Fund II are managed by Fidelity Management and Research Company. Variable
Insurance Products Fund has five portfolios: the Money Market Portfolio, the
High Income Portfolio, the Equity Income Portfolio, the Growth Portfolio and
the Overseas Portfolio. The Variable Insurance Fund II has five portfolios:
the Investment Grade Bond Portfolio, Asset Manager Portfolio, Contrafund
Portfolio (effective August 25, 1995), Asset Manager Growth Portfolio(
effective September 15, 1995) and the Index 500 Portfolio (September 21,
1995). The Alger American Fund is managed by Fred Alger Management, Inc. and
has six portfolios: Income and Growth Portfolio, Small Capitalization
Portfolio, Growth Portfolio, MidCap Growth Portfolio (effective June 17,
1993), Balanced Portfolio (effective June 28, 1993) and the Leveraged Allcap
Portfolio (effective August 30, 1995). The Dreyfus Stock Index Fund is
managed by Wells Fargo Nikko Investment Advisors and has the Stock Index
Fund Portfolio. The MFS Variable Insurance Trust is managed by Massachusetts
Financial Services Company. The MFS Variable Insurance Trust has three
portfolios: the Emerging Growth Portfolio (effective August 25, 1995), World
Governments Portfolio (effective August 24, 1995) and the Utilities
Portfolio (effective September 18, 1995)
Separate Account VA-2 allows investment in the Variable Insurance Products
Fund, Variable Insurance Products Fund II, Alger American Fund, Dreyfus
Stock Index Fund and the MFS Variable Insurance Trust with the same
portfolios as described above.
<PAGE>
AMERITAS VARIABLE LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994, AND 1993
(in thousands)
G. BENEFIT PLANS:
--------------
The Company is included in the noncontributory defined-benefit pension plan
that covers substantially all full-time employees of Ameritas Life Insurance
Corp. and its subsidiaries. Pension costs include current service costs,
which are accrued and funded on a current basis, and past service costs,
which are amortized over the average remaining service life of all employees
on the adoption date. The assets and liabilities of this plan are not
segregated. The Company had no full time employees during 1995. Total
Company contributions for the years ended December 31, 1994 and 1993 were
$47 and $51, respectively.
The Company's employees also participate in a defined contribution thrift
plan that covers substantially all full-time employees of Ameritas Life
Insurance Corp. and its subsidiaries. Company matching contributions under
the plan range from 1% to 3% of the participant's compensation. The Company
had no full time employees during 1995. Total Company contributions for the
years ended December 31, 1994 and 1993 were $20 and $22, respectively.
The Company is also included in the postretirement benefit plan providing
group medical coverage to retired employees of Ameritas Life Insurance Corp.
and its subsidiaries. These benefits are a specified percentage of premium
until age 65 and a flat dollar amount thereafter. Employees become eligible
for these benefits upon the attainment of age 55, 15 years of service and
participation in the plan for the immediately preceding 5 years. Benefit
costs include the expected cost of postretirement benefits for newly
eligible employees, interest cost, and gains and losses arising from
differences between actuarial assumptions and actual experience. The assets
and liabilities of this plan are not segregated. The Company had no full
time employees during 1995. Total Company contributions for the years ended
December 31, 1994 and 1993 were $7 and $2, respectively.
Expenses for the defined benefit pension plan and postretirement group
medical plan are allocated to the Company based on a percentage of payroll.
H. REGULATORY MATTERS:
-------------------
Under statutes of the Insurance Department of the State of Nebraska, the
Company is limited in the amount of dividends it can pay to its stockholder.
No dividends are to be paid in 1996 without approval of the Insurance
Department.
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
a) Financial Statements:
The financial statements of Ameritas Variable Life Insurance Company
(formerly Bankers Life Assurance Company of Nebraska) Separate Account VA-2
and Ameritas Variable Life Insurance Company are filed in Part B.
Ameritas Variable Life Insurance Company Separate Account VA-2:
- Report of Deloitte & Touche LLP, independent auditors.
- Statement of Net Assets as of December 31, 1995.
- Statements of Operations and Changes in Net Assets for each of the three
years in the period ended December 31, 1995.
- Notes to Financial Statements for the three years in the period ended
December 31, 1995.
Ameritas Variable Life Insurance Company:
- Report of Deloitte & Touche LLP, independent auditors.
- Balance Sheets as of December 31, 1995 and 1994.
- Statements of Operations for each of the three years in the period ended
December 31, 1995.
- Statements of Changes in Stockholder's Equity for each of the three
years in the period ended December 31, 1995.
- Statements of Cash Flows for each of the three years in the period ended
December 31, 1995.
- Notes to Financial Statements for the three years in the period ended
December 31, 1995.
All schedules of the Company for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are not
required under the related instructions, are inapplicable or have been disclosed
in the Notes to the Financial Statements and therefore have been omitted.
There are no financial statements included in Part A.
<PAGE>
b) Exhibits
Exhibit Number Description of Exhibit
-------------- ----------------------
(1) Resolution of Board of Directors of Ameritas
Variable Life Insurance Company establishing
Ameritas Variable Life Insurance Company
Separate Account VA-2.*
(2) Not applicable.
(3)(a) Principal Underwriting Agreement.**
(3)(b) Form of Selling Agreement.*****
(4) Form of Variable Annuity Contract.****
(5) Form of Application for Variable Annuity
Contract.******
(6)(a) Certificate of Incorporation of Ameritas
Variable Life Insurance Company.**
(6)(b) Bylaws of Ameritas Variable Life Insurance
Company.**
(7) Not applicable.
(8)(a) Proposed Participation Agreement.***
(8)(b) Administration Agreement.*****
(8)(c) Proposed Participation Agreement*******
(9) Opinion and consent of Norman M. Krivosha.
(10)(a) Independent Auditors' Consent
(11) No financial statements are omitted from
Item 23.
(12) Not applicable
(13) Not applicable
* Incorporated by reference to the initial registration statement for
Ameritas Variable Life Insurance Company Separate Account VA-2 (File No.
33-14774), filed on June 2, 1987.
** Incorporated by reference to registration statement File No. 33-1576,
filed on November 15, 1985.
*** Variable Insurance Products Fund and Variable Insurance Products Fund
II, Incorporated by reference to registration statement File No.
33-30019, filed on July 18, 1989.
**** Incorporated by reference to registration statement File No. 33-33844,
filed in March, 1990.
***** Incorporated by reference to post-effective amendments to registration
File No. 33-14774, dated on March 26, 1992 (Alger American Fund and
Dreyfus Stock Index Fund).
****** Incorporated by reference to post-effective amendment to registration
statement File No. 33-33844, dated on March 1, 1994.
******* Incorporated by reference to post-effective amendment No. 10 to
registration statement File No. 33-33844, dated August 1, 1995.
<PAGE>
Item 25. Directors and Officers of the Depositor.
Name and Principal Position and Offices
Business Address* with Depositor
------------------ -------------------------------
Lawrence J. Arth Director, Chairman of the Board
and Chief Executive Officer
Kenneth C. Louis Director, President and Chief
Operating Officer
Norman M. Krivosha Director and Secretary
James R. Haire Director and Vice President
Wayne E. Brewster Vice President - Variable Sales
Thomas D. Higley Vice President and Actuary
JoAnn M. Martin Director and Controller
Jon C. Headrick Treasurer
Kenneth R. Jones Vice President - Corporate
Compliance and Assistant
Secretary
* The principal business address of each person listed is Ameritas Variable Life
Insurance Company, 5900 "O" Street, Lincoln, Nebraska 68510.
Item 26
The depositor, Ameritas Variable Life Insurance Company, is directly wholly
owned by Ameritas Life Insurance Corp. The Registrant is a segregated asset
account of Ameritas Variable Life Insurance Company.
The following chart indicates the persons controlled by or under common control
with Ameritas Variable Life Insurance Company:
[GRAPHIC OMITTED]
Omitted chart shows Ameritas organization. ALIC with its separate accounts is
at the uppermost tier; second tier companies are AVLIC and its separate
accounts; third tier companies are ABAC which is owned by BLN Co., and AIC, AIA,
FMA Realty, Inc., which are owned by BLN Financial Services, Inc.
<PAGE>
Item 27. Number of Contractowners
As of December 31, 1995, there were 5637 contractowners.
Item 28. Indemnification
Ameritas Variable Life Insurance Company's By-laws provide as follows:
"The Company shall indemnify any person who was, or is a party, is threatened
to be made a party, to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative by reason
of the fact that he is or was a director, officer or employee of the Company or
was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust, or other
enterprise, against expenses including attorney's fees, judgments, fines and
amounts paid in settlement actually and reasonably incurred in connection with
such action suit or proceeding to the full extent authorized by the laws of
Nebraska."
Section 21-2004 of the Nebraska Business Corporation Act, in general, allows
a corporation to indemnify any director, officer, employee or agent of the
corporation for amounts paid in settlement actually and reasonably incurred by
him or her in connection with an action, suit or proceeding, if he or she acted
in good faith and in a manner he or she reasonably believed to be in or not
opposed to the best interest of the corporation, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his or her
conduct was unlawful.
In a case of a derivative action, no indemnification shall be made in respect
of any claim, issue or matter as to which such person shall have been adjudged
to be liable for negligence or misconduct in the performance of his or her duty
to the corporation, unless a court in which the action was brought shall
determine that such person is fairly and reasonably entitled to indemnify for
such expenses which the Court shall deem proper.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Item 29. Principal Underwriters
a) Ameritas Investment Corp. which will serve as the principal
underwriter for the variable annuity contracts issued through Ameritas
Variable Life Insurance Company Separate Account VA-2, also serves as
the principal underwriter for variable life insurance contracts issued
through Ameritas Variable Life Insurance Company Separate Account V,
and serves as the principal underwriter for variable life
insurance contracts issued through Ameritas Life Insurance Corp.
Separate Account LLVL.
<PAGE>
b) The following table sets forth certain information regarding the officers
and directors of the principal underwriter, Ameritas Investment Corp.
Name and Principal Positions and Offices
Business Address* with Underwriter
------------------ ---------------------
Lawrence J. Arth Director and Chairman of the Board
Kenneth L. Louis Director
Norman M. Krivosha Director and Secretary
William R. Giovanni President, Chief Executive Officer
Jon C. Headrick Director and Treasurer
JoAnn M. Martin Director
Kenneth R. Jones Vice President-Corporate Compliance
and Assistant Secretary
James S. Sackett Vice President and Assistant
Secretary
Thomas C. Bittner Vice President-Marketing and
Administration
Janell D. Winsor Vice President-Retail Sales Manager
* The principal business address is 5900 "O" Street, Lincoln, Nebraska 68510.
Item 30. Location of Account and Records
The Books, records and other documents required to be maintained by Section
31(a) of the 1940 Act and Rules 31a-1 to 31a-3 thereunder are maintained at
Ameritas Variable Life Insurance Company, 5900 "O" Street, Lincoln, Nebraska
68510
Item 31. Management Services
Not applicable.
Item 32. Undertakings
a) Registrant undertakes to file a post-effective amendment to this
registration statement as frequently as necessary to ensure that the
audited financial statements in the registration statement are never more
than 16 months old for so long as payments under the variable annuity
contracts may be accepted.
b) Registrant undertakes to include either (1) as part of any application to
purchase a contract offered by the prospectus, a space that an applicant
can check to request a Statement of Additional Information, or (2) a post
card or similar written communication affixed to or included in the
prospectus that the applicant can remove and send for a Statement of
Additional Information.
c) Registrant undertakes to deliver any Statement of Additional Information
and any financial statements required to be made available under this
form promptly upon written or oral request.
d) The Registrant is relying upon the Division of Investment Management
(Division) no-action letter of November 28, 1988 concerning annuities
sold in 403(b) plans and represent that the requirements of the no-action
letter have been, are and/or will be complied with.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Ameritas Variable Life Insurance Company Separate Account VA-2, certifies that
it meets all the requirements for effectiveness of this Post-Effective Amendment
No. 11 to the Registration Statement pursuant to Rule 485(a) under the
Securities Act of 1933 and has duly caused this Amendment to the Registration
Statement to be signed on its behalf by the undersigned thereunto duly
authorized in the City of Lincoln, County of Lancaster, State of Nebraska on
this 29th day of February, 1996.
AMERITAS VARIABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VA-2, Registrant
AMERITAS VARIABLE LIFE INSURANCE COMPANY, Depositor
Attest: Norman M. Krivosha By: Lawrence J. Arth
---------------------- --------------------------
Secretary Chairman of the Board
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the Directors and Officers of Ameritas Variable
Life Insurance Company of Nebraska on the dates indicated.
SIGNATURE TITLE DATE
/s/ Lawrence J. Arth Director, Chairman of the Board February 29, 1996
- --------------------- and Chief Executive Officer
Lawrence J. Arth
/s/ James R. Haire Director and Vice President February 29, 1996
- ---------------------
James R. Haire
/s/ Norman M. Krivosha Director and Secretary February 29, 1996
- ----------------------
Norman M. Krivosha
/s/ Kenneth C. Louis Director, President and February 29, 1996
- ---------------------- Chief Operating Officer
Kenneth C. Louis
/s/ JoAnn M. Martin Director and Controller February 29, 1996
- ----------------------
JoAnn M. Martin
<PAGE>
As filed with the Securities and Exchange Commission on February 29, 1996
Registration No. 33-33844
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
EXHIBITS
TO
POST-EFFECTIVE AMENDMENT NO. 11
TO
FORM N-4
AMERITAS VARIABLE LIFE INSURANCE
COMPANY SEPARATE ACCOUNT VA-2
<PAGE>
Exhibit Index
Exhibit Page
------- ----
99.9 Opinion and Consent of Norman M. Krivosha
99.10(a) Independent Auditors' Consent
27 Financial Data Schedule
EXHIBIT 99.9
Opinion and Consent of Norman M. Krivosha
<PAGE>
Ameritas Variable Life Insurance Company Logo
5900 "O" Street, Lincoln, Nebraska 68510
February 29, 1996
Ameritas Variable Life Insurance Company
5900 "O" Street
P.O. Box 81889
Lincoln, Nebraska 68501
Gentlemen:
With reference to Post-Effective Amendment No. 11 on Form N-4 filed by Ameritas
Variable Life Insurance Company and Ameritas Variable Life Insurance Company
Separate Account VA-2 with the Securities & Exchange Commission covering
flexible premium annuity policies, I have examined such documents and such laws
as I considered necessary and appropriate, and on the basis of such examination,
it is my opinion that:
1. Ameritas Variable Life Insurance Company is duly organized and validly
existing under the laws of the State of Nebraska and has been duly
authorized by the Insurance Department of the State of Nebraska to
issue variable annuity policies.
2. Ameritas Variable Life Insurance Company Separate Account VA-2 is a
duly authorized and existing separate account established pursuant to
the provisions of Section 44-310.06 (subsequently repealed) and/or
44-402.01 of the Statutes of the State of Nebraska.
3. The flexible premium variable annuity policies, when issued as
contemplated by said Form N-4 Registration Statement, will constitute
legal, validly issued and binding obligations of Ameritas Variable Life
Insurance Company.
I hereby consent to the filing of this opinion as an exhibit to the
Post-Effective Amendment No. 11 to said Form N-4 Registration Statement and to
the use of my name under the caption "Legal Matters" in the Prospectus contained
in the Registration Statement.
Sincerely,
/s/ Norman Krivosha
Norman Krivosha
Secretary
EXHIBIT 99.10(a)
Independent Auditors' Consent
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 11 to Registration
Statement No. 33-33844 of Ameritas Variable Life Insurance Company Separate
Account VA-2 of our reports dated February 1, 1996 on the financial statements
of Ameritas Variable Life Insurance Company and Ameritas Variable Life Insurance
Company Separate Account VA-2 appearing in the Statement of Additional
Information, which is a part of such Registration Statement, and to the related
reference to us under the heading "Experts".
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Lincoln, Nebraska
February 27, 1996
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> VA-2 MONEY MARKET
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 57,326,277
<INVESTMENTS-AT-VALUE> 57,326,277
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 57,326,277
<SHARES-COMMON-PRIOR> 64,578,099
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 57,326,277
<DIVIDEND-INCOME> 3,385,236
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 738,735
<NET-INVESTMENT-INCOME> 2,646,500
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,646,500
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 713,278,777
<NUMBER-OF-SHARES-REDEEMED> 720,530,600
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (7,251,823)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> VA-2 EQUITY INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 94,508,852
<INVESTMENTS-AT-VALUE> 117,719,005
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 6,108,926
<SHARES-COMMON-PRIOR> 3,087,593
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,210,154
<NET-ASSETS> 117,719,005
<DIVIDEND-INCOME> 1,895,873
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 943,916
<NET-INVESTMENT-INCOME> 951,957
<REALIZED-GAINS-CURRENT> 2,522,073
<APPREC-INCREASE-CURRENT> 17,850,824
<NET-CHANGE-FROM-OPS> 21,324,853
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,674,676
<NUMBER-OF-SHARES-REDEEMED> 2,653,343
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,021,333
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> VA-2 GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 57,863,552
<INVESTMENTS-AT-VALUE> 86,780,936
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,971,950
<SHARES-COMMON-PRIOR> 2,732,339
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28,917,384
<NET-ASSETS> 86,780,936
<DIVIDEND-INCOME> 390,703
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 957,307
<NET-INVESTMENT-INCOME> (566,604)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 20,702,655
<NET-CHANGE-FROM-OPS> 20,136,051
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 17,031,324
<NUMBER-OF-SHARES-REDEEMED> 16,791,713
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 239,611
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> VA-2 - HIGH INCOME
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 30,107,808
<INVESTMENTS-AT-VALUE> 35,882,984
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,977,841
<SHARES-COMMON-PRIOR> 1,841,572
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,775,176
<NET-ASSETS> 35,882,984
<DIVIDEND-INCOME> 1,473,552
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 415,996
<NET-INVESTMENT-INCOME> 1,057,556
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 4,685,961
<NET-CHANGE-FROM-OPS> 5,743,517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,057,148
<NUMBER-OF-SHARES-REDEEMED> 7,920,879
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,136,269
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 5
<NAME> VA-2 - OVERSEAS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 40,129,300
<INVESTMENTS-AT-VALUE> 45,684,513
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,679,444
<SHARES-COMMON-PRIOR> 2,050,946
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,555,213
<NET-ASSETS> 45,684,513
<DIVIDEND-INCOME> 120,927
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 465,500
<NET-INVESTMENT-INCOME> (344,573)
<REALIZED-GAINS-CURRENT> 120,927
<APPREC-INCREASE-CURRENT> 3,572,713
<NET-CHANGE-FROM-OPS> 3,349,067
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,956,277
<NUMBER-OF-SHARES-REDEEMED> 3,327,780
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 628,497
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 6
<NAME> VA-2 - INDEX 500
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 640,072
<INVESTMENTS-AT-VALUE> 663,229
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 8,760
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,157
<NET-ASSETS> 663,229
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,143
<NET-INVESTMENT-INCOME> (1,143)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 23,157
<NET-CHANGE-FROM-OPS> 22,013
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,695
<NUMBER-OF-SHARES-REDEEMED> 7,935
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 8,760
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 7
<NAME> VA-2 - CONTRAFUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,484,527
<INVESTMENTS-AT-VALUE> 2,491,998
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 180,842
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,472
<NET-ASSETS> 2,491,998
<DIVIDEND-INCOME> 10,189
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 3,944
<NET-INVESTMENT-INCOME> 6,245
<REALIZED-GAINS-CURRENT> 20,378
<APPREC-INCREASE-CURRENT> 7,472
<NET-CHANGE-FROM-OPS> 34,095
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 191,403
<NUMBER-OF-SHARES-REDEEMED> 10,561
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 180,842
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 8
<NAME> VA-2 - ASSET MANAGER GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 227,044
<INVESTMENTS-AT-VALUE> 223,546
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 18,977
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3,498)
<NET-ASSETS> 223,546
<DIVIDEND-INCOME> 1,943
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 266
<NET-INVESTMENT-INCOME> 1,677
<REALIZED-GAINS-CURRENT> 7,419
<APPREC-INCREASE-CURRENT> (3,498)
<NET-CHANGE-FROM-OPS> 5,598
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,618
<NUMBER-OF-SHARES-REDEEMED> 642
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 18,977
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 9
<NAME> VA-2 - ASSET MANAGER
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 98,674,251
<INVESTMENTS-AT-VALUE> 115,119,774
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 7,290,676
<SHARES-COMMON-PRIOR> 8,782,242
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,445,523
<NET-ASSETS> 115,119,774
<DIVIDEND-INCOME> 2,486,418
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,449,245
<NET-INVESTMENT-INCOME> 1,037,174
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 15,665,746
<NET-CHANGE-FROM-OPS> 16,702,920
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,497,839
<NUMBER-OF-SHARES-REDEEMED> 2,989,405
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1,491,566)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAIN SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 10
<NAME> VA-2 - INVESTMENT GRADE BOND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 21,290,557
<INVESTMENTS-AT-VALUE> 23,086,779
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 1,849,902
<SHARES-COMMON-PRIOR> 1,352,770
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,796,222
<NET-ASSETS> 23,086,779
<DIVIDEND-INCOME> 741,402
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 253,150
<NET-INVESTMENT-INCOME> 488,252
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 2,423,520
<NET-CHANGE-FROM-OPS> 2,911,772
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,800,293
<NUMBER-OF-SHARES-REDEEMED> 2,303,161
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 497,132
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 11
<NAME> VA-2 - SMALL CAPITALIZATION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 33,526,841
<INVESTMENTS-AT-VALUE> 44,227,409
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 1,122,238
<SHARES-COMMON-PRIOR> 702,913
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,700,568
<NET-ASSETS> 44,227,409
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 390,434
<NET-INVESTMENT-INCOME> (390,434)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 8,996,789
<NET-CHANGE-FROM-OPS> 8,606,355
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,714,645
<NUMBER-OF-SHARES-REDEEMED> 1,295,319
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 419,326
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 12
<NAME> VA-2 ALGER GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 19,359,618
<INVESTMENTS-AT-VALUE> 24,289,630
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 779,513
<SHARES-COMMON-PRIOR> 672,427
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,930,012
<NET-ASSETS> 24,289,630
<DIVIDEND-INCOME> 34,554
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 218,376
<NET-INVESTMENT-INCOME> (183,822)
<REALIZED-GAINS-CURRENT> 122,422
<APPREC-INCREASE-CURRENT> 4,297,843
<NET-CHANGE-FROM-OPS> 4,236,442
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 946,783
<NUMBER-OF-SHARES-REDEEMED> 839,697
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 107,086
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 13
<NAME> VA-2 ALGER INCOME & GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 5,886,975
<INVESTMENTS-AT-VALUE> 6,676,425
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 375,291
<SHARES-COMMON-PRIOR> 176,574
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 789,450
<NET-ASSETS> 6,676,425
<DIVIDEND-INCOME> 30,164
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 51,556
<NET-INVESTMENT-INCOME> (21,392)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 848,212
<NET-CHANGE-FROM-OPS> 826,820
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 314,671
<NUMBER-OF-SHARES-REDEEMED> 115,954
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 198,717
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 14
<NAME> VA-2 ALGER MIDCAP GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 12,645,906
<INVESTMENTS-AT-VALUE> 14,927,096
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 767,855
<SHARES-COMMON-PRIOR> 263,006
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,281,190
<NET-ASSETS> 14,927,096
<DIVIDEND-INCOME> 692
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 96,907
<NET-INVESTMENT-INCOME> (96,216)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 2,128,072
<NET-CHANGE-FROM-OPS> 2,031,857
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 931,593
<NUMBER-OF-SHARES-REDEEMED> 426,745
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 504,848
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 15
<NAME> VA-2 ALGER BALANCED
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,206,036
<INVESTMENTS-AT-VALUE> 2,526,276
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 185,211
<SHARES-COMMON-PRIOR> 95,420
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 320,240
<NET-ASSETS> 2,526,276
<DIVIDEND-INCOME> 24,117
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 20,525
<NET-INVESTMENT-INCOME> 3,592
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 340,662
<NET-CHANGE-FROM-OPS> 344,255
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 118,495
<NUMBER-OF-SHARES-REDEEMED> 28,704
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 89,791
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 16
<NAME> VA-2 - ALGER LEVERAGED ALLCAP
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 1,013,339
<INVESTMENTS-AT-VALUE> 1,030,461
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 59,120
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,122
<NET-ASSETS> 1,030,461
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,843
<NET-INVESTMENT-INCOME> (1,843)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 17,122
<NET-CHANGE-FROM-OPS> 15,279
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 125,305
<NUMBER-OF-SHARES-REDEEMED> 66,185
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 59,120
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 17
<NAME> VA-2 MFS EMERGING GROWTH
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 954,293
<INVESTMENTS-AT-VALUE> 945,719
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 82,885
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (8,574)
<NET-ASSETS> 945,719
<DIVIDEND-INCOME> 461
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,676
<NET-INVESTMENT-INCOME> (1,215)
<REALIZED-GAINS-CURRENT> 25,061
<APPREC-INCREASE-CURRENT> (8,574)
<NET-CHANGE-FROM-OPS> 15,272
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 228,418
<NUMBER-OF-SHARES-REDEEMED> 145,533
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 82,885
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 18
<NAME> VA-2 - MFS UTILITIES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 555,844
<INVESTMENTS-AT-VALUE> 541,258
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 43,059
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (14,586)
<NET-ASSETS> 541,258
<DIVIDEND-INCOME> 9,847
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 592
<NET-INVESTMENT-INCOME> 9,256
<REALIZED-GAINS-CURRENT> 23,341
<APPREC-INCREASE-CURRENT> (14,586)
<NET-CHANGE-FROM-OPS> 18,011
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 72,400
<NUMBER-OF-SHARES-REDEEMED> 29,341
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 43,059
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERITAS
VARIABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT VA-2 FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 19
<NAME> VA-2 MFS WORLD GOVERNMENT
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 188,160
<INVESTMENTS-AT-VALUE> 176,476
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 17,353
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (11,684)
<NET-ASSETS> 176,476
<DIVIDEND-INCOME> 16,669
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 481
<NET-INVESTMENT-INCOME> 16,188
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (11,684)
<NET-CHANGE-FROM-OPS> 4,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27,535
<NUMBER-OF-SHARES-REDEEMED> 10,182
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 17,353
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
