Flexible Premium Variable Life Insurance Contract
(Variable Executive Universal Life)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account A)
Supplement dated September 1, 1998
to Prospectus dated May 1, 1998
The Midland Variable Executive Universal Life now includes the following new
investment options:
MFS VIT Emerging Growth
MFS VIT Research
MFS VIT Growth With Income
MFS VIT New Discovery
Lord, Abbett VCC Growth and Income
American Century VP Income & Growth
The investment objectives of the six newly available mutual fund portfolios are
as follows:
Portfolio Objective
MFS VIT Emerging Growth Series Seeks to provide long-term growth of
capital. Dividend and interest
income from portfolio securities,
if any, is incidental to the Series
investment objective of long-term
growth of capital.
MFS VIT Research Series Seeks to provide long-term growth
of capital and future income.
MFS VIT Growth With Income Series Seeks to provide reasonable current
income and long-term growth
of capital and income.
MFS VIT New Discovery Series Seeks capital appreciation.
Lord, Abbett VCC Growth and Income Seeks long-term growth of capital
Portfolio and income without excessive
fluctuation in market value.
American Century VP Income & Growth Seeks dividend growth, current
Portfolio income and capital appreciation.
The Portfolio will seek to achieve
its investment objective by
investing in a diversified
portfolio of U.S. stocks.
The six new Investment Divisions each invest in shares of a corresponding
portfolio of one of the following mutual funds:
Mutual Fund Investment Adviser
MFS Variable Insurance Trust Massachusetts Financial Services
(MFS VIT) Company
Lord, Abbett Series Fund, Inc.
(variable contract class) Lord, Abbett & Co.
(Lord, Abbett VCC)
American Century Variable Portfolios,
Inc. American Century Investment
(American Century) Management, Inc.
The table on the following page summarizes the charges and deductions that may
be applicable to an investment in the six portfolios listed above. These
charges and deductions are explained in the prospectus for the Variable
Executive Universal Life and the prospectuses for the individual portfolios.
This Prospectus Supplement must be accompanied or preceded
by the Prospectus dated May 1, 1998 for the Variable Executive Universal Life
and by the Prospectus dated May 1, 1998 for each Fund portfolio listed above.
The Fund portfolios described above and the other Fund portfolios described in
the Prospectus dated May 1, 1998 for the Variable Executive Universal Life are
not available for purchase directly by the general public, and are not the same
as the mutual funds with very similar or nearly identical names that are sold
directly to the public. However, the investment objectives and policies of
certain of the Funds portfolios are very similar to the investment objectives
and policies of other (publicly available) mutual fund portfolios that have
very similar or nearly identical names and that are or may be managed by the
same investment adviser or manager. Nevertheless, the investment performance
and results of the Funds portfolios available under the Contracts may be lower,
or higher, than the investment results of such other (publicly available)
portfolios. There can be no assurance, and no representation is made, that the
investment results of any of the Funds portfolios will be comparable to the
investment results of any other portfolio or mutual fund, even if the other
portfolio or mutual fund has the same investment adviser or manager and the
same investment objectives and policies, and a very similar name.
This Prospectus Supplement provides very limited information about the newly
available Fund portfolios. The prospectuses for these portfolios, which
accompany this Prospectus Supplement, describe the investment objectives,
policies and risks of the portfolio. The information in this Prospectus
Supplement is qualified in its entirety by the information included in the
Prospectus for the Variable Executive Universal Life and the prospectus for the
portfolios.
In addition to fees and charges deducted under the Contracts (described in the
Prospectus for the Variable Executive Universal Life), certain fees and charges
are deducted by each Fund for managing each portfolios investments and
providing services to the portfolio. The table below summarizes these portfolio
expenses:
Portfolio Annual Expenses (1)
(as a percentage of Portfolio average net assets)
Management Other Total Annual
Portfolio Fees Expenses Expenses (2)
MFS VIT Emerging Growth Series 0.75% 0.12% 0.87%
MFS VIT Research Series 0.75% 0.13% 0.88%
MFS VIT Growth With Income Series (3) 0.75% 0.25% 1.00%
MFS VIT New Discovery Series (3) 0.90% 0.25% 1.15%
Lord, Abbett VCC Growth and Income Portfolio 0.50% 0.02% 0.52%
American Century VP Income & Growth Portfolio 0.70% 0.00% 0.70%
(1) The Fund data was provided by Massachusetts Financial Services Company,
Lord, Abbett Distributor LLP and American Century Investment Management,
Inc. Midland has not independently verified the accuracy of the Fund data.
(2) The annual expenses shown are based on actual expenses for 1997, except for
the MFS VIT New Discovery Series and American Century VP Income &
Growth Portfolio where they are based on estimated expenses for 1998.
(3) MFS has agreed to bear expenses for these Series, subject to reimbursement
by these Series such that each such Series Other Expenses shall not exceed
0.25%. Without this limitation on the Other Expenses, the Other Expenses and
Total Annual Expenses would be:
Other Total Annual
Series Expenses Expenses
MFS VIT Growth With Income Series 0.35% 1.10%
MFS VIT New Discovery Series 0.47% 1.37%
The illustrations of Contract Funds, Cash Surrender Values and Death Benefits
listed in the Appendix of your Variable Executive Universal Life prospectus
assume an average Portfolio Annual Expense which does not recognize the
expenses of the six new funds discussed above. The average Portfolio Annual
Expense as of December 31, 1997 which includes the expenses of the six new
funds is 0.78%. Contract Fund Values and Cash Surrender Values derived with
the use of the 0.78% average annual expense would decrease from those shown
in your Prospectus if the average Portfolio Annual Expense stated in the
Appendix of your prospectus is lower than the new 0.78% average. Contract
Fund Values and Cash Surrender Values derived with the use of the 0.78%
average annual expense would increase from those shown in your Prospectus if
the average Portfolio Annual Expense stated in the Appendix of your prospectus
is higher than the new 0.78% average.
