THE LIFE INSURANCE COMPANY OF VIRGINIA
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
POLICY FORM P1143
SUPPLEMENT DATED JULY 25, 1997
EFFECTIVE AUGUST 1, 1997
TO
PROSPECTUS DATED MAY 1, 1997
The prospectus for the above-referenced Policy is hereby supplemented with the
following information. This Supplement should be retained with your prospectus
for future reference.
For Policies issued after July 31, 1997 the following paragraph replaces the
paragraph in the "Death Provisions" section in the "Summary" of prospectus
information:
Subject to a number of distribution rules, certain benefits and other
policy options are available to certain persons on the death of an Owner,
Joint Owner, or Annuitant prior to the Maturity Date while the Policy is in
force. (See "Distributions Under the Policy - Death Provisions.") Owners
may also elect to purchase a Guaranteed Minimum Death Benefit Rider and/or
an Optional Death Benefit Rider. (See "Elective Guaranteed Minimum Death
Benefit Rider" and "Elective Optional Death Benefit Rider.")
The following section is hereby added to the prospectus immediately following
the "Elective Guaranteed Minimum Death Benefit Rider" section:
Elective Optional Death Benefit Rider. The elective optional death benefit
rider provides for an Annual Step-up in death benefit, as described below.
If an Annuitant dies before the Maturity Date while the Optional Death
Benefit Rider is in effect, the Designated Beneficiary may elect the Death
Benefit described below within 90 days of the date of such death. If this
Death Benefit is paid, the Policy will terminate, and Life of Virginia will
have no further obligation under the Policy. THE OPTIONAL DEATH BENEFIT
RIDER MAY NOT BE AVAILABLE IN ALL STATES OR MARKETS.
The Death Benefit under the Optional Death Benefit Rider is the greater of:
(1) the Death Benefit described above under "Death Benefit at Death of
Annuitant," and (2) the minimum Death Benefit described below.
During the first Policy year, the minimum Death Benefit under the Optional
Death Benefit Rider is the total of premiums paid, adjusted for any partial
surrenders. After the first Policy year and until the Policy anniversary
immediately preceding the Annuitant's 81st birthday, the minimum Death
Benefit is the Policy's greatest Death Benefit on any previous Policy
anniversary, plus the total Premium Payments made since that date, less
adjustments for any partial surrenders taken since that date. Beginning on
the Policy anniversary immediately preceding the Annuitant's 81st birthday,
the minimum Death Benefit is the Policy's minimum Death Benefit on that
date, plus the total Premium Payments made since that date, less
adjustments for any partial surrenders taken since that date.
<PAGE>
If the Optional Death Benefit Rider has been elected, it is effective on
the Policy Date (unless another effective date is shown on the Policy data
pages). It will remain in effect while the Policy is in force and before
income payments begin, or until the Policy Anniversary following the date
of receipt of the Owner's request to terminate the rider. There will be a
charge made each year for expenses related to the Death Benefit available
under the terms of the Optional Death Benefit Rider. (See "Annual Death
Benefit Charge.") Amounts payable under the Optional Death Benefit Rider
are subject to the distribution rules described below.
The following replaces the "Other Annual Expenses" section of the "Fee Table":
<TABLE>
<S> <C>
Other Annual Expenses:
o Annual Policy Maintenance Charge $25.00
o Maximum Annual Death Benefit Charges
- Elective Guaranteed Minimum Death Benefit (as a percentage of
average benefit amount 0.35%*
- Elective Optional Death Benefit (as a percentage of Account Value) 0.25%**
* If the Elective Guaranteed Minimum Death Benefit applies.
** If the Elective Optional Death Benefit applies
</TABLE>
The following paragraph replaces the paragraph in the "Annual Death Benefit
Charge" section of the prospectus:
There will be separate charges made each year for expenses related to
the Death Benefit available under the terms of an elected Guaranteed
Minimum Death Benefit Rider and/or Optional Death Benefit Rider. Life
of Virginia deducts these charges against the Account Value in Account
4 at each anniversary and at surrender to compensate it for the
increased risks associated with providing the enhanced Death
Benefit(s). If the Guarantee Account is available under the Policy and
the Account Value is not sufficient to cover the charge for the
Optional Death Benefit Rider, the charge will be deducted first from
the available Account Value, if any, and then from the Guarantee
Account. Each charge at full surrender will be a pro-rata portion of
the annual charge.
For the elective Guaranteed Minimum Death Benefit, Life of Virginia
guarantees that this charge will never exceed an annual rate of 0.35%
of the prior year's average Guaranteed Minimum Death Benefit. For the
elective Optional Death Benefit, Life of Virginia guarantees that this
charge will never exceed an annual rate of 0.25% of the Account Value.
The following additional Examples are added to the prospectus to reflect the
impact of the charge for the Optional Death Benefit Rider on expenses a
Policyowner could expect to pay:
<PAGE>
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 (including the elective Optional Death Benefit Rider):
<TABLE>
1. If you surrender* your policy at the end of the applicable period:
<CAPTION>
<S> <C>
Subdivision Investing In: 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Variable Insurance Products Fund
Equity-Income Portfolio 79.05 131.18 164.53 266.60
Overseas Portfolio 82.36 141.08 181.99 301.24
Growth Portfolio 80.09 134.30 170.05 277.63
Variable Insurance Products Fund II
Asset Manager Portfolio 80.57 135.72 172.55 282.56
Contrafund Portfolio 80.57 135.72 172.55 282.59
Variable Insurance Products Fund III
Growth & Income Portfolio 80.19 134.59 170.55 278.62
Growth Opportunities Portfolio 80.85 136.57 174.05 285.56
GE Investments Funds, Inc.
S&P 500 Index Fund 78.11 128.33 159.48 256.46
Government Securities Fund 79.90 133.74 169.05 275.63
Money Market Fund 74.96 118.88 142.64 222.21
Total Return Fund 79.24 131.75 165.54 268.61
International Equity Fund 87.73 156.96 209.02 354.90
Real Estate Securities Fund 83.69 145.01 188.89 314.73
Global Income Fund 82.08 140.24 180.51 298.32
Value Equity Fund 82.17 140.52 181.00 299.29
Oppenheimer Variable Account Funds
Oppenheimer Bond Fund 80.94 136.85 174.55 286.55
Oppenheimer Capital Appreciation Fund 80.66 136.00 173.05 283.59
Oppenheimer Growth Fund 81.04 137.13 175.04 287.54
Oppenheimer High Income Fund 81.23 137.70 176.04 289.51
Oppenheimer Multiple Strategies Fund 80.85 136.57 174.05 285.56
Janus Aspen Series
Growth Portfolio 80.09 134.30 170.05 277.63
Aggressive Growth Portfolio 80.75 136.29 173.55 284.58
International Growth Portfolio** 85.47 150.32 197.90 332.71
Worldwide Growth Portfolio 81.13 137.42 175.54 288.52
Balanced Portfolio 82.46 141.36 182.49 302.21
Flexible Income Portfolio 81.51 138.55 177.53 292.45
Capital Appreciation Portfolio 83.50 144.45 187.91 312.81
Federated Insurance Series
Federated American Leaders Fund II 81.61 138.83 178.03 293.43
Federated Utility Fund II 81.61 138.83 178.03 293.43
Federated High Income Bond Fund II 81.13 137.42 175.54 288.52
The Alger American Fund
Alger American Growth Portfolio 81.04 137.13 175.04 287.54
Alger American Small Capitalization Portfolio 81.89 139.67 179.52 296.37
PBHG Insurance Series Fund, Inc.
PBHG Growth II Portfolio 84.43 147.24 192.75 322.35
PBHG Large Cap Growth Portfolio 83.97 145.85 190.36 317.59
* Surrender includes annuitization for a period of less than 5 years. **
Figures for the International Growth Portfolio of the Janus Aspen Series
reflect an expense limit of 1.25% of average net assets, which became
effective on June 3, 1996.
<PAGE>
2. If you annuitize at the end of the applicable period, or do not surrender*:
<CAPTION>
Subdivision Investing In: 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Variable Insurance Products Fund
Equity-Income Portfolio 23.61 72.74 124.53 266.60
Overseas Portfolio 27.11 83.23 141.99 301.24
Growth Portfolio 24.71 76.05 130.05 277.63
Variable Insurance Products Fund II
Asset Manager Portfolio 25.21 77.55 132.55 282.59
Contrafund Portfolio 25.21 77.55 132.55 282.59
Variable Insurance Products Fund III
Growth & Income Portfolio 24.81 76.35 130.55 278.62
Growth Opportunities Portfolio 25.51 78.45 134.05 285.56
GE Investments Funds, Inc.
S&P 500 Index Fund 22.61 69.72 119.48 256.46
Government Securities Fund 24.51 75.45 129.05 275.63
Money Market Fund 19.29 59.70 102.64 222.21
Total Return Fund 23.81 73.34 125.54 268.61
International Equity Fund 32.78 100.08 169.76 354.90
Real Estate Securities Fund 28.51 87.40 148.89 314.73
Global Income Fund 26.81 82.34 140.51 298.32
Value Equity Fund 26.91 82.64 141.00 299.29
Oppenheimer Variable Account Funds
Oppenheimer Bond Fund 25.61 78.75 134.55 286.55
Oppenheimer Capital Appreciation Fund 25.31 77.85 133.05 283.59
Oppenheimer Growth Fund 25.71 79.05 135.04 287.54
Oppenheimer High Income Fund 25.91 79.65 136.04 289.51
Oppenheimer Multiple Strategies Fund 25.51 78.45 134.05 285.56
Janus Aspen Series
Growth Portfolio 24.71 76.05 130.05 277.63
Aggressive Growth Portfolio 25.41 78.15 133.55 284.58
International Growth Portfolio** 30.40 93.03 158.17 332.71
Worldwide Growth Portfolio 25.81 79.35 135.54 288.52
Balanced Portfolio 27.21 83.53 142.49 302.21
Flexible Income Portfolio 26.21 80.55 137.53 292.45
Capital Appreciation Portfolio 28.31 86.81 147.91 312.81
Federated Insurance Series
Federated American Leaders Fund II 26.31 80.85 138.03 293.43
Federated Utility Fund II 26.31 80.85 138.03 293.43
Federated High Income Bond Fund II 25.81 79.35 135.54 288.52
The Alger American Fund
Alger American Growth Portfolio 25.71 79.05 135.04 287.54
Alger American Small Capitalization Portfolio 26.61 81.74 139.52 296.37
PBHG Insurance Series Fund, Inc.
PBHG Growth II Portfolio 29.30 89.77 152.81 322.35
PBHG Large Cap Growth Portfolio 28.81 88.29 150.36 317.59
</TABLE>
* Surrender includes annuitization for a period of less than 5 years.
** Figures for the International Growth Portfolio of the Janus Aspen Series
reflect an expense limit of 1.25% of average net assets, which became
effective on June 3, 1996.
<PAGE>
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 (including the elective Guaranteed Minimum Death Benefit Rider and
Optional Death Benefit Rider):
<TABLE>
1. If you surrender* your policy at the end of the applicable period:
<CAPTION>
<S> <C>
Subdivision Investing In: 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Variable Insurance Products Fund
Equity-Income Portfolio 82.42 141.63 183.69 308.73
Overseas Portfolio 85.73 151.47 200.59 342.62
Growth Portfolio 83.46 144.73 189.16 319.52
Variable Insurance Products Fund II
Asset Manager Portfolio 83.93 146.14 191.61 324.38
Contrafund Portfolio 83.93 146.14 191.61 324.38
Variable Insurance Products Fund III
Growth & Income Portfolio 83.55 145.01 189.65 320.50
Growth Opportunities Portfolio 84.21 146.98 193.03 327.29
GE Investments Funds, Inc.
S&P 500 Index Fund 81.47 138.30 178.69 298.81
Government Securities Fund 83.27 144.17 188.16 317.57
Money Market Fund 78.30 128.96 160.69 259.31
Total Return Fund 82.61 142.19 184.68 310.70
International Equity Fund 91.08 167.26 226.99 395.10
Real Estate Securities Fund 87.04 155.38 207.15 355.82
Global Income Fund 85.44 150.63 199.18 339.77
Value Equity Fund 85.54 150.91 199.65 340.72
Oppenheimer Variable Account Funds
Oppenheimer Bond Fund 84.31 147.27 193.51 328.25
Oppenheimer Capital Appreciation Fund 84.03 146.42 192.09 325.35
Oppenheimer Growth Fund 84.40 147.55 193.99 329.22
Oppenheimer High Income Fund 84.59 148.11 194.94 331.15
Oppenheimer Multiple Strategies Fund 84.21 146.98 193.03 327.29
Janus Aspen Series
Growth Portfolio 83.46 144.73 189.16 319.52
Aggressive Growth Portfolio 84.12 146.70 192.56 326.32
International Growth Portfolio** 88.83 160.65 215.97 373.40
Worldwide Growth Portfolio 84.50 147.82 194.46 330.18
Balanced Portfolio 85.82 151.75 201.06 343.57
Flexible Income Portfolio 84.88 148.94 196.35 334.03
Capital Appreciation Portfolio 86.85 154.82 206.22 353.94
Federated Insurance Series
Federated American Leaders Fund II 84.97 149.23 196.82 334.99
Federated Utility Fund II 84.97 149.23 196.82 334.99
Federated High Income Bond Fund II 84.50 147.82 194.46 330.18
The Alger American Fund
Alger American Growth Portfolio 84.40 147.55 193.99 329.22
Alger American Small Capitalization Portfolio 85.26 150.07 198.24 337.86
PBHG Insurance Series Fund, Inc.
PBHG Growth II Portfolio 87.80 157.60 210.87 363.27
PBHG Large Cap Growth Portfolio 87.33 156.21 208.55 358.62
* Surrender includes annuitization for a period of less than 5 years. **
Figures for the International Growth Portfolio of the Janus Aspen Series
reflect an expense limit of 1.25% of average net assets, which became
effective on June 3, 1996.
<PAGE>
2. If you surrender* your policy at the end of the applicable period:
<CAPTION>
Subdivision Investing In: 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Variable Insurance Products Fund
Equity-Income Portfolio 27.17 83.82 143.69 308.73
Overseas Portfolio 30.67 94.26 160.98 342.62
Growth Portfolio 28.27 87.11 149.16 319.52
Variable Insurance Products Fund II
Asset Manager Portfolio 28.77 88.61 151.63 324.38
Contrafund Portfolio 28.77 88.61 151.63 324.38
Variable Insurance Products Fund III
Growth & Income Portfolio 28.37 87.41 149.65 320.50
Growth Opportunities Portfolio 29.07 89.50 153.11 327.29
GE Investments Funds, Inc.
S&P 500 Index Fund 26.17 80.82 138.69 298.81
Government Securities Fund 28.07 86.52 148.16 317.57
Money Market Fund 22.82 70.39 120.69 259.31
Total Return Fund 27.37 84.42 144.68 310.70
International Equity Fund 36.33 111.01 188.48 395.10
Real Estate Securities Fund 32.06 98.40 167.81 355.82
Global Income Fund 30.37 93.37 159.51 339.77
Value Equity Fund 30.47 93.66 160.00 340.72
Oppenheimer Variable Account Funds
Oppenheimer Bond Fund 29.17 89.80 153.61 328.25
Oppenheimer Capital Appreciation Fund 28.87 88.90 152.13 325.35
Oppenheimer Growth Fund 29.27 90.10 154.10 329.22
Oppenheimer High Income Fund 29.47 90.69 155.09 331.15
Oppenheimer Multiple Strategies Fund 29.07 89.50 153.11 327.29
Janus Aspen Series
Growth Portfolio 28.27 87.11 149.16 319.52
Aggressive Growth Portfolio 28.97 89.20 152.62 326.32
International Growth Portfolio** 33.95 103.99 177.00 373.40
Worldwide Growth Portfolio 29.37 90.39 154.59 330.18
Balanced Portfolio 30.77 94.55 161.47 343.57
Flexible Income Portfolio 29.77 91.58 156.56 334.03
Capital Appreciation Portfolio 31.86 97.81 166.84 353.94
Federated Insurance Series
Federated American Leaders Fund II 29.87 91.88 157.05 334.99
Federated Utility Fund II 29.87 91.88 157.05 334.99
Federated High Income Bond Fund II 29.37 90.39 154.59 330.18
The Alger American Fund
Alger American Growth Portfolio 29.27 90.10 154.10 329.22
Alger American Small Capitalization Portfolio 30.17 92.77 158.53 337.86
PBHG Insurance Series Fund, Inc.
PBHG Growth II Portfolio 32.86 100.76 171.76 363.27
PBHG Large Cap Growth Portfolio 32.36 99.28 169.27 358.62
</TABLE>
* Surrender includes annuitization for a period of less than 5 years.
** Figures for the International Growth Portfolio of the Janus Aspen Series
reflect an expense limit of 1.25% of average net assets, which became
effective on June 3, 1996.
The Life Insurance Company of Virginia
6610 West Broad Street
Richmond, Virginia 23230
