Supplement to Prospectus dated May 1, 1999
Ameritas Variable Life Insurance Company ("Ameritas"), as part of its ongoing
review of product lines, has determined that a "manager of managers" product
should be able to achieve significant economies and more effective investment
management. Ameritas believes that a restructuring will put Ameritas in a better
position to take advantage of economies of scale created by the recent merger of
Ameritas's affiliated insurance holding company, Ameritas Mutual Holding
Company, with Acacia Mutual Holding Company.
To implement the proposed manager of managers structure, Ameritas plans to
organize several new investment portfolios. Each of the new portfolios
("Ameritas portfolios") will have the same investment objectives and policies as
one of nine of the funds ("Current Funds") currently available to Policy Owners.
Day-to-day portfolio management decisions will be made for each of the new
Ameritas portfolios by a subadvisor acting under the supervision of Ameritas
Investment Corp. Ameritas and certain of its affiliates have also filed an
application with the SEC that would permit Ameritas to replace each of the
Current Funds with an Ameritas portfolio. The following funds would be affected
by the proposed substitution:
Variable Insurance Products Fund (VIPF) Money Market
VIPF Index 500
MFS Variable Insurance Trust (MFS) Emerging Growth
MFS Research
MFS Growth With Income
Alger American Small Capitalization
Alger American Growth
Alger American Income and Growth
Alger American Midcap Growth
Ameritas anticipates that portfolio management services will be provided to
seven of the Ameritas portfolios by the same investment advisory organizations
that advise the Current Funds. The remaining Ameritas portfolios, which will be
designed to replace the money market and stock index funds listed above, will be
managed by different investment advisory organizations. The Ameritas portfolios
are designed, however, to assure that the investment objectives of the Policy
Owners will continue to be met following the proposed substitution. If the SEC
acts favorably on Ameritas' application - and there can be no guarantee that it
will do so - Policy Owners will be provided with complete information about the
substitution, including a prospectus relating to each of the Ameritas
portfolios.
The additional services contemplated by the manager of managers structure could
affect expenses. If the relief requested is granted, fees will be guaranteed at
current levels for one year. They may then increase, if actual expenses are
greater than the cap, to a ratio that is up to .10% greater than the prior
ratio.
The date of this Supplement is May 3, 1999.
