Flexible Premium Variable Life Insurance Contract
(Variable Universal Life)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account A)
Supplement dated September 1, 1999
to Prospectus dated May 1, 1999
The Midland Variable Universal Life now contains a lower premium
tax charge and includes two new investment options as explained
below:
Reduced Premium Tax Charge:
The deduction from your premium payments for the premium tax
charge has been lowered from 2.5% to 2.25%.
New Investment Options:
Lord Abbett Mid-Cap Value (hereinafter referred to as Lord
Abbett VC Mid-Cap Value)
Lord Abbett VC International (hereinafter referred to as Lord
Abbett VC International)
The Investment Objectives of the two newly available mutual fund
portfolios are as follows:
Portfolio Objective
Lord Abbett VC Mid-Cap Value Seeks capital appreciation through
investments, primarily in equity
securities which are believed to be
undervalued in the marketplace.
Lord Abbett VC International Seeks long-term capital appreciation,
by investing, primarily in equity
securities of non-U.S. issuers.
The two new portfolios each invest in shares of the corresponding
portfolio of the Lord Abbett Series Fund, Inc. (variable contract
class). The Investment Adviser of this Fund is Lord, Abbett & Co.
The table on the following page summarizes the charges and
deductions that may be applicable to an investment in the two
portfolios listed above. These charges and deductions are
explained in the prospectus for the Variable Universal Life and
the prospectus for the individual portfolios.
This Prospectus Supplement must be accompanied or preceeded by the
Prospectus dated May 1, 1999 for the Variable Universal Life and
by the Prospectus dated February 10, 1999 for each
Fund portfolio listed above.
As with all the fund portfolios described in your May 1, 1999
prospectus, the fund portfolios described above 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 the 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 Lord, Abbett & Co.
Nevertheless, the investment
performance and results of the above two fund porfolios may be
lower, or higher than the investment results of any of the other
(publicly available) available portfolios. There can be no
assurance and no representation is made, that the investment
results of any of the available 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
advisor or manager and the same investment objectives and policies
and a very similar or nearly identical name.
This Prospectus Supplement provides very limited information about
the two 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 the Prospectus Supplement is qualified in its entirety by the
information included in the prospectus for the Variable Universal
Life and the prospectus for the two new portfolios.
In addition to fees and charges deducted under the Contracts
(described in the Prospectus for the Variable Universal Life),
certain fees and charges are deducted by Lord, Abbett & Co. for
managing each portfolio's investments and providing services to
each portfolio. The table below summarizes these portfolio
expenses:
Portfolio Annual Expenses (1)
(as a percentage of Portfolio average net assets)
Management Other Total
Portfolio Fees Expenses(3) Expenses(2)
Lord Abbett VC Mid-Cap Value 0.75% 0.35% 1.10%
Lord Abbett VC International 1.00% 0.35% 1.35%
(1) The fund data was provided by Lord Abbett Distributor LLC.
Midland has not independently
verified the accuracy of the Fund data.
(2) These portfolios were not available during the prior year.
Therefore, the expenses are based on expenses anticipated to be
incurred during 1999.
(3) Lord, Abbett & Co. has entered into an expense reimbursement
agreement with Lord Abbett VC Mid-Cap Value and Lord Abbett VC
International under which Lord, Abbett & Co. will reimburse each
portfolio if and to the extent such portfolio's Other Expenses
(excluding management fees) exceed or would otherwise exceed
0.35%.
The 2.5% premium tax charge stated in your May 1, 1999 prospectus
is modified by this supplement to the lower 2.25% premium tax
charge. Midland continues to reserve the right to increase this
charge if our premium tax expenses increase and to vary the charge
by state. As stated in your prospectus, we will notify you if we
increase this charge from the 2.25% rate. The 2.25% premium tax
charge is the tax we expect to pay based on the retaliatory
provisions of most states.
All other provisions relating to the premium tax charge will
remain as they are stated in your May 1, 1999 prospectus. Please
read your prospectus for further details about the premium tax
charge.
The illustrations of Contract Funds, Cash Surrender Values and
Death Benefits listed in the Illustrations section of your
Variable Universal Life prospectus assume an average Portfolio
Annual Expense which does not recognize the expenses of the two
new portfolios discussed above nor does it recognize the lower
premium tax charge of 2.25%. The average Porfolio Annual Expense
as of December 31, 1998 which includes the two new portfolios is
0.80%. The 0.80% is higher than the 0.76% expense average annual
expense stated in your May 1, 1999 prospectus. The use of the
higher 0.80% average fund
portfolio expense and the lower 2.25% premium tax charge will
result in higher cash values in the early years of the
illustrations and lower cash values in the later years of the
illustrations relative to the cash values shown in your Variable
Universal Life prospectus dated May 1, 1999. Please contact your
agent or Midland National Life (at the address shown in your
Variable Universal Life prospectus) if you wish to receive an
illustration using the new 0.80% average portfolio expense and the
2.25% premium tax charge for your particular policy.
The two new portfolios both contain an expense reimbursement
arrangement whereby the portfolio's Other Expenses (excluding
management fees) have a limit of 0.35%. Without this arrangement,
the portfolio's Other Expense may have been anticipated to be
higher than 0.35%. This would result in an average portfolio
expense which is greater than the 0.80%. The use of an average
portfolio expense which is greater than 0.80% average portfolio
expense. Midland cannot predict whether such expense
reimbursement arrangements will continue.
In addition to fees and charges deducted under the Contracts
(described in the Prospectus for the Variable Universal Life),
certain fees and charges are deducted by Lord, Abbett & Co. for
managing each portfolio's investments and providing services to
each portfolio. The table below summarizes these portfolio
expenses:
Portfolio Annual Expenses (1)
(as a percentage of Portfolio average net assets)
Management Other Total
Portfolio Fees Expenses(3) Expenses(2)
Lord Abbett VC Mid-Cap Value 0.75% 0.35% 1.10%
Lord Abbett VC International 1.00% 0.35% 1.35%
(1) The fund data was provided by Lord Abbett Distributor LLC.
Midland has not independently
verified the accuracy of the Fund data.
(2) These portfolios were not available during the prior year.
Therefore, the expenses are based on expenses anticipated to be
incurred during 1999.
(3) Lord, Abbett & Co. has entered into an expense reimbursement
agreement with Lord Abbett VC Mid-Cap Value and Lord Abbett VC
International under which Lord, Abbett & Co. will reimburse each
portfolio if and to the extent such portfolio's Other Expenses
(excluding management fees) exceed or would otherwise exceed
0.35%.
The 2.5% premium tax charge stated in your May 1, 1999 prospectus
is modified by this supplement to the lower 2.25% premium tax
charge. Midland continues to reserve the right to increase this
charge if our premium tax expenses increase and to vary the charge
by state. As stated in your prospectus, we will notify you if we
increase this charge from the 2.25% rate. The 2.25% premium tax
charge is the tax we expect to pay based on the retaliatory
provisions of most states.
All other provisions relating to the premium tax charge will
remain as they are stated in your May 1, 1999 prospectus. Please
read your prospectus for further details about the premium tax
charge.
The illustrations of Contract Funds, Cash Surrender Values and
Death Benefits listed in the Illustrations section of your
Variable Universal Life prospectus assume an average Portfolio
Annual Expense which does not recognize the expenses of the two
new portfolios discussed above nor does it recognize the lower
premium tax charge of 2.25%. The average Porfolio Annual Expense
as of December 31, 1998 which includes the two new portfolios is
0.80%. The 0.80% is higher than the 0.76% expense average annual
expense stated in your May 1, 1999 prospectus. The use of the
higher 0.80% average fund
portfolio expense and the lower 2.25% premium tax charge will
result in higher cash values in the early years of the
illustrations and lower cash values in the later years of the
illustrations relative to the cash values shown in your Variable
Universal Life prospectus dated May 1, 1999. Please contact your
agent or Midland National Life (at the address shown in your
Variable Universal Life prospectus) if you wish to receive an
illustration using the new 0.80% average portfolio expense and the
2.25% premium tax charge for your particular policy.
The two new portfolios both contain an expense reimbursement
arrangement whereby the portfolio's Other Expenses (excluding
management fees) have a limit of 0.35%. Without this arrangement,
the portfolio's Other Expense may have been anticipated to be
higher than 0.35%. This would result in an average portfolio
expense which is greater than the 0.80%. The use of an average
portfolio expense which is greater than 0.80% average portfolio
expense. Midland cannot predict whether such expense
reimbursement arrangements will continue.
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STK99VUL.txt
