Flexible Premium Variable Life Insurance Contract
(Variable Universal Life 2)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account A)
Supplement dated September 1, 1998
to Prospectus dated May 1, 1997
The Midland Variable Universal Life 2 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
Universal Life 2 and the prospectuses for the individual portfolios.
This Prospectus Supplement must be read with or preceded
by the Prospectus dated May 1, 1997 for the Variable Universal Life 2
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
your Variable Universal Life 2 Prospectus 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 Universal Life 2 and the prospectus for the
portfolios.
In addition to fees and charges deducted under the Contracts (described in the
Prospectus for the Variable Universal Life 2), 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 Universal Life 2 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.
