Flexible Premium Variable Life Insurance Contract
(Variable Executive Universal Life 2)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account A)
Supplement dated June 15, 2000
to Prospectus dated May 1, 2000
The section in your prospectus labeled as "Contract Loans" should be replaced
with the following new section. Please refer to the wording and
descriptions given below when you are referencing any items in the
prospectus which apply to the "Contract Loans" section.
Contract Loans
You may borrow up to 92% of the cash surrender value using only your
contract as security for the loan. If you request an additional loan, then
the outstanding loan and loan interest will be added to the additional loan
amount and the original loan will be cancelled. Thus, you will only have
one outstanding loan.
A loan taken from, or secured by, a contract may have federal income tax
consequences. See "TAX EFFECTS", on page 32.
You may request a loan by contacting our executive office. You should tell us
how much of the loan you want taken from your unloaned amount in the General
Account or from the Separate Account investment divisions. If you do not
tell us how to allocate your loan, the loan will be allocated according to
your deduction allocation percentages as described under "How Cash Value
Charges Are Allocated" on page 26. If the loan cannot be allocated this way,
then we will allocate it in proportion to the unloaned amounts of
your cash value in the General Account and each investment division. The
amount of the loan allocated to the investment division will be transferred
to the General Account by redeeming units from each investment division.
Interest Credited on Contract Loans: The portion of the General Account that
is equal to the contract loan will be credited an annual interest rate of 3.5%.
Contract Loan Interest Charged: After the 10th contract year, we will offer
preferred loans. Preferred loans are guaranteed to be available for the
portion of the loan that is from earnings (the earnings are equal to the
cash value less premiums paid). The annual interest rate charged on
preferred loans is guaranteed to be 3.5% (which is the same rate
we guarantee to credit on preferred loans).
Currently the annual interest rate we charge on non-preferred loans is 5.5%.
We guarantee that the rate charged on non-preferred loans will not exceed
8% per year.
Interest is due on each contract anniversary. If you do not pay the interest
hen it is due, then it will be added to your outstanding loan and allocated
based on the deduction allocation percentages for your cash value. This means
we make an additional loan to pay the interest and will transfer amounts
from the General Account or the investment divisions to make the loan. If
we cannot allocate the interest based on these percentages, then we will
allocate it as described above.
Repaying the Loan. You may repay all or part of a contract loan while your
contract is in force. While you have a contract loan, we assume that any
money you send us is meant to repay the loan. If you wish to have any of
these payments serve as premium payments, then you must tell us in writing.
You may choose how you want us to allocate your repayments. If you do not
give us instructions, we will allocate your repayments based on your premium
allocation percentages.
The Effects Of A Contract Loan on Your Cash Value. A loan against your
contract will have a permanent effect on your cash value and benefits, even
if the loan is repaid. When you borrow on your contract, we transfer your
loan amount into our General Account where it earns a declared rate of
interest. You cannot invest that loan amount in any Separate Account
investment divisions. You may earn more or less on the loan amount,
depending on the performance of the investment divisions and whether that
performance is better or worse than the 3.5% annual interest we credit on
the portion of the General Account securing the loan.
Your Contract May Lapse. Your loan may affect the amount of time that your
contract remains in force. For example, your contract may lapse because
the loaned amount cannot be used to cover the monthly deductions that are
taken from your cash value. If these deductions are more than the net cash
surrender value of your contract, then the contract's lapse provisions may
apply. Since the contract permits loans up to 92% of the cash surrender
value, loan repayments or additional premium payments may be required
to keep the contract in force, especially if you borrow the maximum.
