SUPPLEMENT DATED MAY 15, 1996
TO PROSPECTUS DATED MAY 1, 1996
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
POLICY FORM P1143 4/94
Prior to November 23, 1995, Policyowners could allocate Premiums Payments and
Account Value to six Investment Subdivisions which are now closed to new
investment (the "Closed Investment Subdivisions"). Although no new allocations
can be made to the Closed Investment Subdivisions, existing allocations of
Account Value will be permitted to remain there. Alternatively, Policyowners may
transfer amounts from the Closed Investment Subdivisions to other Investment
Subdivisions currently available under the Policy. This supplement contains
information about the investment objective, adviser, and expenses of these
Closed Investment Subdivisions and their underlying portfolios. For more
information about the portfolios, see the individual prospectus for each
portfolio.
THE FUNDS
Oppenheimer Variable Account Funds ("OVAF")
Oppenheimer Money Fund seeks the maximum current income from investments in
"money market" securities consistent with low capital risk and the maintenance
of liquidity.
Oppenheimer Funds, Inc. ("OFI") serves as investment adviser to the OVAF.
Variable Insurance Products Fund ("VIPF")
Money Market Portfolio seeks high current income while maintaining a stable
share price by investing in a broad range of money market securities.
High Income Portfolio seeks high current income by investing mainly in
high-yielding, high-risk debt securities, with an emphasis on lower-quality
securities.
Fidelity Management & Research Company ("FMR") serves as investment advisor to
the VIPF.
Neuberger & Berman Advisers Management Trust
Each portfolio of the Advisers Management Trust invests all of its net
investable assets in its corresponding series of Advisers Managers Trust.
Balanced Portfolio has the investment objective of providing long-term capital
growth and reasonable current income without undue risk to principal. Its
corresponding series, AMT Balanced Investments, has the same investment
objective.
Limited Maturity Bond Portfolio has the investment objective of providing the
highest current income consistent with low risk to principal and liquidity; and
secondarily, total return. Its corresponding series, AMT Limited Maturity Bond
Investments, has the same investment objective.
Growth Portfolio has the investment objective of seeking capital appreciation
without regard to income. Its corresponding series, AMT Growth Investments, has
the same investment objective.
Neuberger & Berman Management Incorporated provides investment management
services to Advisers Managers Trust.
THERE IS NO ASSURANCE THAT THE STATED OBJECTIVES
AND POLICIES OF ANY OF THE FUNDS WILL BE ACHIEVED.
More detailed information concerning the investment objectives and policies of
the Funds and the investment advisory services and charges can be found in the
current prospectuses for the Funds. A prospectus for each Fund can be obtained
by writing or calling Life of Virginia's Home Office. The prospectus for each
Fund should be read carefully before any decision is made concerning the
allocation of premium payments or transfers among the investment subdivisions.
<PAGE>
FEE TABLE
The purpose of this table is to assist the Owner in understanding the various
costs and expenses that a Owner will bear, directly and indirectly. The Table
reflects charges and expenses of the portfolios for the most recent fiscal year.
For more information on the charges described in these Tables see the individual
prospectus for each portfolio.
Variable Insurance Products Fund Annual Expenses
(as a % of average net assets)
Money High
Market Income
Portfolio Portfolio
Management Fees 0.24% 0.60%
Other Expenses (after any expense reimbursement) 0.09% 0.11%
----- ------
Total Fund Annual Expenses 0.33% 0.71%
===== ======
Neuberger & Berman Advisers Management Trust Annual Expenses
(as a % of average net assets)
<TABLE>
<CAPTION>
Limited
Balanced Growth Maturity Bond
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
Annual Operating Expenses 0.85% 0.84% 0.65%
Other Expenses (after any expense reimbursement) 0.19% 0.10% 0.10%
----- ------ -----
Total Fund Annual Expenses 1.04% 0.94% 0.75%
===== ====== =====
</TABLE>
Oppenheimer Variable Account Funds Annual Expenses
(as a % of average net assets)
Opp.
Money
Fund
Management Fees .45%
Other Expenses .06%
----
Total Fund Annual Expenses .51%
====
EXAMPLES: A Policyowner would pay the following expense on a $1,000 investment,
assuming a 5% annual return on assets and the charges and expenses reflected in
the Fee Table above (including the elective death benefit rider):
(1) If you surrender* your Policy at the end of the applicable period:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Variable Insurance Products Fund
Money Market Portfolio $77.63 $126.97 $157.14 $252.17
High Income Portfolio 81.28 138.23 177.69 296.81
Neuberger & Berman Advisers Management Trust
Balanced Portfolio 84.40 147.55 193.99 329.22
Growth Portfolio 83.46 144.73 189.16 319.52
Limited Maturity Bond Portfolio 81.66 139.36 179.69 300.80
Oppenheimer Variable Account Funds
Oppenheimer Money Fund 79.34 132.09 166.23 270.43
</TABLE>
* surrender includes annuitization over a period of less than 5 years
2. If you annuitize at the end of the applicable period, or do not surrender*:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Variable Insurance Products Fund
Money Market Portfolio $22.11 $68.28 $117.14 $252.17
High Income Portfolio 25.97 80.22 137.69 296.81
Neuberger & Berman Advisers Management Trust
Balanced Portfolio 29.27 90.10 154.10 329.22
Growth Portfolio 28.27 87.11 149.16 319.52
Limited Maturity Bond Portfolio 26.37 81.42 139.69 300.80
Oppenheimer Variable Account Funds
Oppenheimer Money Fund 23.92 73.71 126.23 270.43
</TABLE>
* surrender includes annuitization over a period of less than 5 years
EXAMPLES: A Policyowner would pay the following expense on a $1,000 investment,
assuming a 5% annual return on assets and the charges and expenses reflected in
the Fee Table above (excluding the elective death benefit rider):
1. If you surrender* your Policy at the end of the applicable period:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Variable Insurance Products Fund
Money Market Portfolio $74.30 $116.86 $139.03 $214.79
High Income Portfolio 77.92 127.77 158.47 254.42
Neuberger & Berman Advisers Management Trust
Balanced Portfolio 81.04 137.13 175.04 287.54
Growth Portfolio 80.09 134.30 170.05 277.63
Limited Maturity Bond Portfolio 78.30 128.91 160.49 258.49
Oppenheimer Variable Account Funds
Oppenheimer Money Fund 76.01 122.04 148.29 233.76
</TABLE>
* surrender includes annuitization over a period of less than 5 years
2. If you annuitize at the end of the applicable period, or do not surrender*:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Variable Insurance Products Fund
Money Market Portfolio $18.59 $57.56 $99.03 $214.79
High Income Portfolio 22.41 69.12 118.47 254.42
Neuberger & Berman Advisers Management Trust
Balanced Portfolio 25.71 79.05 135.04 287.54
Growth Portfolio 24.71 76.05 130.05 277.63
Limited Maturity Bond Portfolio 22.81 70.33 120.49 258.49
Oppenheimer Variable Account Funds
Oppenheimer Money Fund 20.40 63.05 108.29 233.76
</TABLE>
* surrender includes annuitization over a period of less than 5 years
For purposes of these examples, the $25 Annual Policy Maintenance Charge has
been translated into an assumed charge at an annual rate of 0.10% of Account
Value. The actual amount of the policy maintenance charge attributable to a
$1,000 investment will depend on the amount of the total investment in the
Policy.
THESE EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIVE OF PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES PAID MAY BE GREATER OR LESS THAN THOSE SHOWN. THE
ASSUMED 5% ANNUAL RETURN IS HYPOTHETICAL; PAST OR FUTURE ANNUAL RETURNS MAY BE
GREATER OR LESS THAN THE ASSUMED AMOUNT.
THE LIFE INSURANCE COMPANY OF VIRGINIA
6610 West Broad Street
Richmond, Virginia 23230
(804) 281-6000
