Flexible Premium Variable Life Insurance Contract
(Variable Universal Life 3)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account A)
Supplement dated September 14, 2000
to Prospectus dated May 1, 2000
The Midland Variable Universal Life 3 now includes the following five new
investment options.
- Alger American Small Capitalization Portfolio
- Alger American MidCap Growth Portfolio
- Alger American Growth Portfolio
- Alger American Leveraged AllCap Portfolio
- Fidelity Variable Insurance Products Fund Mid Cap Portfolio
The Investment Objectives of the five newly available mutual fund portfolios
are as follows:
Portfolio Objective
Alger American Small Capitalization Portfolio Seeks long term capital
appreciation by focusing on
small, fast growing companies
that offer innovative products,
services or technologies to a
rapidly expanding marketplace.
Under normal circumstances, the
Portfolio invests primarily in
the equity securities of small
capitalization companies. A
small capitalization company is
one that has a market
capitalization within the range
of the Russell 2000 Growth
Index(r) or the S&P SmallCap 600
Index(r).
Alger American MidCap Growth Portfolio Seeks long term capital
Appreciation by focusing on
midsize companies with promising
growth potential. Under normal
circumstances, the portfolio
invests primarily in the equity
securities of companies in the
S&P MidCap 400 Index(r).
Alger American Growth Portfolio Seeks long term capital
appreciation by focusing on
growing companies that generally
have broad product lines,
markets, financial resources
and depth of management. Under
normal circumstances the
portfolio invests primarily in
the equity securities of large
companies. The portfolio
considers a large company to
have a market capitalization of
$1 billion or greater.
Alger American Leveraged AllCap Portfolio Seeks long term capital
Appreciation by investing, under
normal circumstances, in the
equity securities of companies
of any size which demonstrate
promising growth potential. The
portfolio can leverage, that it,
borrow money, up to one-third
of its total assets to buy
additional securities. By
borrowing money, the portfolio
has the potential to increases
its returns if the increase in
the value of the securities
purchased exceeds the cost of
borrowing, including interest
paid on the money borrowed.
Fidelity Variable Insurance Product Seeks long term growth of
capital.
Fund Mid Cap Portfolio
The five new Investment Divisions each invest in shares of the
corresponding portfolio of the one of the following mutual funds:
Mutual Fund Investment Advisor
Alger American Fund Fred Alger Management, Inc.
Fidelity Variable Insurance Products Fund. Fidelity Management &
Research Company
The table on the following page summarizes the charges and deductions that
may be applicable to an investment in the five portfolios listed above.
These charges and deductions are explained in the prospectus for the
Variable Universal Life 3 and the prospectus for the individual portfolios.
This Prospectus Supplement must be accompanied or preceded by the Prospectus
dated May 1, 2000 for the Variable Universal Life 3 and by the Prospectus
dated May 1, 2000 for each Fund portfolio listed above.
As with all the Fund portfolios described in your May 1, 2000 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 iden
be managed by the same adviser or manager. Nevertheless, the investment
performance and results of the above two Fund Portfolios 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 inves
e 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 this
Prospectus Supplement is qualified in its entirety by the information
included in the Prospectus for the Variable Universal Life 3 and the
prospectus for the five new portfolios.
In addition to the fees and charges deducted under the contracts (described
in the prospectus for the Variable Universal Life 3), certain fees and
charges are deducted by each Fund for managing each portfolio's 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
Portfolio Fees Expenses Expenses
Alger American Small Capitalization Portfolio 0.85% 0.05% 0.90%
Alger American MidCap Growth Portfolio 0.80% 0.05% 0.85%
Alger American Growth Portfolio 0.75% 0.04% 0.79%
Alger American Leveraged AllCap Portfolio 0.85% 0.08% 0.93%
Fidelity VIP Mid Cap Portfolio (2) (3) 0.57% 0.40% 0.97 %
(1) The fund data was provided by the fund managers and Midland has not
independently verified the accuracy of the Fund data. The annual expenses
shown are based on actual expenses for 1999. The expenses shown for
Fidelity's VIP Mid Cap Portfolio are those applicable to the Initial Class.
(2) The Mid Cap Portfolio's total annual expenses reflects Fidelity
Management & Research Company's (FMR) voluntary agreement to reimburse the
class to the extent total operating expenses (excluding interest, taxes,
certain securities lending costs, brokerage commissions and extraordinary
expenses) as a percentage of average net assets, exceed a certain rate.
FMR can discontinue this reimbursement arrangement at any time. Without
this reimbursement, the other expenses and total expenses would have been:
Other Total
Expenses Expenses
VIP Mid Cap 2.77% 3.34%
(3) A portion of the brokerage commissions that the fund pays is used to
reduce this fund's expenses. In addition, through arrangements with each
fund's custodian, credits realized as a result of uninvested cash balances
are used to reduce custodian expenses
The illustrations of Contract Funds, Cash Surrender Values and Death
Benefits listed in the Appendix of your Variable Universal Life 3 prospectus
dated May 1, 2000 assume an average Portfolio Annual Expense which does not
recognize the expenses of the five new funds discussed above. The average
Portfolio Annual Expense as of December 31, 1999 which includes the five
new funds is 0.81%. The 0.81% is higher than the 0.79% average annual
expense stated in your May 1, 2000 prospectus. The use of the higher
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