<PAGE> 1
SUPPLEMENT TO PROSPECTUS
THE MANUFACTURERS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT B
VENTURE LIFE
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT NON-PARTICIPATING
DATED MAY 1, 1997
CLINTON ADMINISTRATION'S FISCAL YEAR 1999 BUDGET PROPOSAL
The Clinton administration's Fiscal Year 1999 Budget Proposal dated
February 2, 1998 (the "Budget Proposal") contains proposals to change the
taxation of life insurance contracts. The Budget Proposal proposes to tax
exchanges of variable contracts for fixed contracts, exchanges of fixed
contracts for variable contracts, exchanges of variable contracts for variable
contracts and reallocation within variable contracts. Currently, owners of life
contracts may exchange their contracts for another life insurance contract
without currently incurring tax, and reallocations among investment options are
not treated as a taxable exchange. In addition, the Budget Proposal proposes
that the contract owner's basis in life insurance contracts be reduced by
certain amounts (related to the cost of insurance and possibly expenses) for
purposes of determining the taxable gain in the contract. Currently, basis in
life insurance contracts is not reduced by these amounts. The Budget Proposal
states that it generally would apply only to contracts issued after the date of
first congressional committee action, but that the new exchange and reallocation
rules would also apply to any existing contract that was materially changed.
While it is uncertain whether the Budget Proposal will become law, if the
Budget Proposal is enacted substantially as proposed, withdrawal charges will be
waived on purchase payments made on or after February 2, 1998, provided such
amounts are withdrawn within 60 days of the date that the Budget Proposal
becomes law. The Company reserves the right to terminate this withdrawal charge
waiver at any time. If the waiver is terminated, purchase payments made from
February 2, 1998 to the termination date of the waiver will not be subject to
withdrawal charge as provided above.
This waiver does not affect a contract owner's right to cancel a contract
within the ten day right to review period. See "OTHER CONTRACT PROVISIONS -- Ten
Day Right to Review."
Withdrawals may be subject to income tax to the extent of earnings under
the contract and, if the contract is a modified endowment contract and the
withdrawal is made prior to age 59 1/2, generally will be subject to a 10% IRS
penalty tax.
SUPPLEMENT DATED FEBRUARY 9, 1998
VL.Supp298
