SUPPLEMENT DATED AUGUST 4, 1997
TO PROSPECTUS DATED MAY 1, 1997 FOR
THE PRUDENTIAL
VARIABLE APPRECIABLE ACCOUNT
CUSTOM VAL (SM)
LIFE________________________
INSURANCE CONTRACTS
The purpose of this supplement is to revise the example in the CONTRACT LOANS
section and replace the hypothetical illustrations on pages T1 through T4.
The CONTRACT LOANS section begins on page 20. The last paragraph on page 20 is
revised to read:
"Consider the Contract issued on a 35 year old male insured illustrated in the
table on page T3 with a 12% gross investment return. Assume a $5,000 fixed-rate
(5.5%) loan was made under this Contract at the end of Contract year 8 and
repaid at the end of Contract year 10 and loan interest was paid when due. Upon
repayment, the cash surrender value would be $13,705.63. This amount is lower
than the cash surrender value shown on that page for the end of Contract year 10
because the loan amount was credited with the 4% assumed rate of return rather
than the 10.87% net return for the designated subaccount[s] resulting from the
12% gross return in the underlying Series Fund. If a variable interest rate
option had been chosen, the cash surrender value would have been higher."
The hypothetical illustrations on pages T1 through T4 are replaced with the
following illustrations with the same page numbers. These new illustrations
reflect changes in the cost of insurance rates that Prudential is currently
charging.
PCVAL-SUP Ed. 8-97 Catalog No. 64N094I
<PAGE>
ILLUSTRATIONS
-------------
CUSTOM VAL LIFE INSURANCE CONTRACT
FORM A -- FIXED DEATH BENEFIT
MALE SELECT PREFERRED ISSUE AGE 35
$300,000 GUARANTEED DEATH BENEFIT
RATE SCHEDULE WITH HIGH INITIAL ANNUAL
PREMIUM OF $1,987.60 RISING TO
$3,983.46 AT AGE 64, MAXIMUM PREMIUM
AGE 65 AND LATER -- $15,664.08(1)
USING CURRENT CONTRACTUAL CHARGES
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH SURRENDER VALUE (2)
--------------------------------------- ---------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED AT --------------------------------------- ---------------------------------------
POLICY ANNUAL 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PREMIUM PER YEAR (1) (-1.13% NET) (4.87% NET) (10.87% NET) (-1.13% NET) (4.87% NET) (10.87% NET)
------ ------- -------------- ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 1,988 $ 2,067 $300,000 $300,000 $ 300,000 $ 0 $ 0 $ 0
2 $ 1,997 $ 4,227 $300,000 $300,000 $ 300,000 $ 120 $ 389 $ 670
3 $ 2,010 $ 6,486 $300,000 $300,000 $ 300,000 $ 1,265 $ 1,791 $ 2,364
4 $ 2,025 $ 8,852 $300,000 $300,000 $ 300,000 $ 2,387 $ 3,258 $ 4,243
5 $ 2,039 $ 11,327 $300,000 $300,000 $ 300,000 $ 3,485 $ 4,788 $ 6,323
6 $ 2,058 $ 13,920 $300,000 $300,000 $ 300,000 $ 5,080 $ 6,910 $ 9,155
7 $ 2,078 $ 16,637 $300,000 $300,000 $ 300,000 $ 6,819 $ 9,275 $ 12,414
8 $ 2,098 $ 19,485 $300,000 $300,000 $ 300,000 $ 8,528 $ 11,716 $ 15,958
9 $ 2,121 $ 22,470 $300,000 $300,000 $ 300,000 $ 10,212 $ 14,239 $ 19,820
10 $ 2,146 $ 25,600 $300,000 $300,000 $ 300,000 $ 11,861 $ 16,838 $ 24,028
15 $ 2,311 $ 43,745 $300,000 $300,000 $ 300,000 $ 16,670 $ 28,218 $ 48,877
20 $ 2,607 $ 67,124 $303,230 $303,230 $ 303,230 $ 23,718 $ 45,952 $ 95,907
25 $ 3,107 $ 97,892 $306,458 $306,458 $ 334,540 $ 30,869 $ 68,975 $ 177,618
30 (AGE 65) $ 3,983 $139,242 $306,450 $306,450 $ 522,801 $ 33,675 $ 95,500 $ 313,514
35 $15,664 $257,645 $307,180 $307,180 $ 783,753 $ 89,244 $163,581 $ 525,651
40 $15,664 $401,699 $307,870 $340,811 $1,176,180 $138,967 $253,218 $ 868,809
45 $15,664 $576,964 $308,476 $453,871 $1,776,341 $182,460 $363,665 $1,418,296
(1) FOR A HYPOTHETICAL GROSS INVESTMENT RETURN OF 0%, THE PREMIUM AFTER AGE
65 WILL BE $15,664.08. FOR A GROSS RETURN OF 6%, THE PREMIUM AFTER AGE
65 WILL BE $9,872.50. FOR A GROSS RETURN OF 12%, THE PREMIUM AFTER
AGE 65 WILL BE $1,987.60. THE PREMIUMS ACCUMULATED IN COLUMN 3 ARE THOSE
PAYABLE IF THE GROSS INVESTMENT RETURN IS 0%. FOR AN EXPLANATION OF WHY
THE SCHEDULED PREMIUM MAY SIGNIFICANTLY INCREASE AFTER AGE 65, SEE
PREMIUMS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
</TABLE>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION
OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE
MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS
INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST
RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR
A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN
BE MADE BY PRUDENTIAL OR THE SERIES FUND THAT THESE HYPOTHETICAL RATES OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
T1
<PAGE>
CUSTOM VAL LIFE INSURANCE CONTRACT
FORM B -- VARIABLE DEATH BENEFIT
MALE SELECT PREFERRED ISSUE AGE 35
$300,000 GUARANTEED DEATH BENEFIT
RATE SCHEDULE WITH HIGH INITIAL ANNUAL
PREMIUM OF $1,987.60 RISING TO
$3,983.46 AT AGE 64, MAXIMUM PREMIUM
AGE 65 AND LATER -- $15,664.08(1)
USING CURRENT CONTRACTUAL CHARGES
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH SURRENDER VALUE (2)
--------------------------------------- ---------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED AT --------------------------------------- ---------------------------------------
POLICY ANNUAL 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PREMIUM PER YEAR (1) (-1.13% NET) (4.87% NET) (10.87% NET) (-1.13% NET) (4.87% NET) (10.87% NET)
------ ------- -------------- ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 1,988 $ 2,067 $300,086 $300,181 $ 300,275 $ 0 $ 0 $ 0
2 $ 1,997 $ 4,227 $300,121 $300,390 $ 300,670 $ 19 $ 287 $ 568
3 $ 2,010 $ 6,486 $300,105 $300,630 $ 301,201 $ 1,061 $ 1,586 $ 2,157
4 $ 2,025 $ 8,852 $300,042 $300,909 $ 301,891 $ 2,182 $ 3,049 $ 4,030
5 $ 2,039 $ 11,327 $300,000 $301,228 $ 302,756 $ 3,305 $ 4,602 $ 6,130
6 $ 2,058 $ 13,920 $300,000 $301,670 $ 303,903 $ 5,070 $ 6,889 $ 9,122
7 $ 2,078 $ 16,637 $300,000 $302,164 $ 305,281 $ 6,806 $ 9,248 $ 12,365
8 $ 2,098 $ 19,485 $300,000 $302,716 $ 306,923 $ 8,515 $ 11,680 $ 15,887
9 $ 2,121 $ 22,470 $300,000 $303,328 $ 308,857 $ 10,197 $ 14,191 $ 19,720
10 $ 2,146 $ 25,600 $300,000 $303,999 $ 311,113 $ 11,845 $ 16,775 $ 23,889
15 $ 2,311 $ 43,745 $300,000 $308,330 $ 328,556 $ 16,652 $ 28,008 $ 48,234
20 $ 2,607 $ 67,124 $303,230 $319,432 $ 367,735 $ 23,830 $ 45,560 $ 93,863
25 $ 3,107 $ 97,892 $306,458 $337,413 $ 440,588 $ 31,137 $ 67,953 $ 171,128
30 (AGE 65) $ 3,983 $139,242 $306,450 $362,167 $ 568,809 $ 34,133 $ 92,167 $ 298,809
35 $15,664 $257,645 $310,760 $391,035 $ 748,085 $ 89,363 $169,638 $ 501,838
40 $15,664 $401,699 $313,393 $440,355 $1,130,500 $138,138 $265,100 $ 835,147
45 $15,664 $576,964 $314,338 $517,809 $1,718,817 $179,424 $382,895 $1,372,421
(1) FOR A HYPOTHETICAL GROSS INVESTMENT RETURN OF 0%, THE PREMIUM AFTER AGE
65 WILL BE $15,664.08. FOR A GROSS RETURN OF 6%, THE PREMIUM AFTER AGE
65 WILL BE $12,697.32. FOR A GROSS RETURN OF 12%, THE PREMIUM AFTER
AGE 65 WILL BE $1,987.60. THE PREMIUMS ACCUMULATED IN COLUMN 3 ARE THOSE
PAYABLE IF THE GROSS INVESTMENT RETURN IS 0%. FOR AN EXPLANATION OF WHY
THE SCHEDULED PREMIUM MAY SIGNIFICANTLY INCREASE AFTER AGE 65, SEE
PREMIUMS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
</TABLE>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION
OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE
MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS
INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST
RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR
A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY PRUDENTIAL OR THE SERIES FUND THAT THESE HYPOTHETICAL RATES OF RETURN
CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
T2
<PAGE>
CUSTOM VAL LIFE INSURANCE CONTRACT
FORM A -- FIXED DEATH BENEFIT
MALE SELECT PREFERRED ISSUE AGE 35
$300,000 GUARANTEED DEATH BENEFIT
RATE SCHEDULE WITH LOW INITIAL ANNUAL
PREMIUM OF $1,371.58 RISING TO
$5,363.31 AT AGE 64, MAXIMUM PREMIUM
AGE 65 AND LATER -- $17,226.87(1)
USING CURRENT CONTRACTUAL CHARGES
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH SURRENDER VALUE (2)
--------------------------------------- ---------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED AT --------------------------------------- ---------------------------------------
POLICY ANNUAL 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PREMIUM PER YEAR (1) (-1.13% NET) (4.87% NET) (10.87% NET) (-1.13% NET) (4.87% NET) (10.87% NET)
------ ------- -------------- ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 1,372 $ 1,426 $300,000 $300,000 $ 300,000 $ 0 $ 0 $ 0
2 $ 1,390 $ 2,929 $300,000 $300,000 $ 300,000 $ 0 $ 0 $ 0
3 $ 1,417 $ 4,520 $300,000 $300,000 $ 300,000 $ 0 $ 69 $ 420
4 $ 1,446 $ 6,205 $300,000 $300,000 $ 300,000 $ 397 $ 925 $ 1,526
5 $ 1,475 $ 7,987 $300,000 $300,000 $ 300,000 $ 1,040 $ 1,829 $ 2,760
6 $ 1,512 $ 9,879 $300,000 $300,000 $ 300,000 $ 2,040 $ 3,145 $ 4,504
7 $ 1,551 $ 11,888 $300,000 $300,000 $ 300,000 $ 3,302 $ 4,784 $ 6,681
8 $ 1,593 $ 14,020 $300,000 $300,000 $ 300,000 $ 4,559 $ 6,482 $ 9,044
9 $ 1,638 $ 16,284 $300,000 $300,000 $ 300,000 $ 5,816 $ 8,245 $ 11,618
10 $ 1,688 $ 18,691 $300,000 $300,000 $ 300,000 $ 7,064 $ 10,071 $ 14,419
15 $ 2,019 $ 33,270 $300,000 $300,000 $ 300,000 $ 10,344 $ 17,416 $ 30,017
20 $ 2,610 $ 53,615 $303,115 $303,115 $ 303,115 $ 16,655 $ 30,562 $ 61,415
25 $ 3,610 $ 83,017 $306,229 $306,229 $ 306,229 $ 25,043 $ 49,727 $118,068
30 (AGE 65) $ 5,363 $126,619 $306,225 $306,225 $ 364,554 $ 32,587 $ 74,877 $219,316
35 $16,113 $244,813 $306,995 $306,995 $ 545,715 $ 90,441 $147,128 $366,666
40 $16,113 $388,614 $307,724 $326,539 $ 818,081 $142,730 $242,662 $604,884
45 $16,113 $563,570 $308,363 $452,210 $1,234,477 $189,543 $362,317 $986,152
(1) FOR A HYPOTHETICAL GROSS INVESTMENT RETURN OF 0%, THE PREMIUM AFTER AGE
65 WILL BE $16,112.52. FOR A GROSS RETURN OF 6%, THE PREMIUM AFTER AGE
65 WILL BE $11,964.71. FOR A GROSS RETURN OF 12%, THE PREMIUM AFTER
AGE 65 WILL BE $1,371.58. THE PREMIUMS ACCUMULATED IN COLUMN 3 ARE THOSE
PAYABLE IF THE GROSS INVESTMENT RETURN IS 0%. FOR AN EXPLANATION OF WHY
THE SCHEDULED PREMIUM MAY SIGNIFICANTLY INCREASE AFTER AGE 65, SEE
PREMIUMS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
</TABLE>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION
OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE
MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS
INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST
RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR
A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN
BE MADE BY PRUDENTIAL OR THE SERIES FUND THAT THESE HYPOTHETICAL RATES OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
T3
<PAGE>
CUSTOM VAL LIFE INSURANCE CONTRACT
FORM B -- VARIABLE DEATH BENEFIT
MALE SELECT PREFERRED ISSUE AGE 35
$300,000 GUARANTEED DEATH BENEFIT
RATE SCHEDULE WITH LOW INITIAL ANNUAL
PREMIUM OF $1,371.58 RISING TO
$5,363.31 AT AGE 64, MAXIMUM PREMIUM
AGE 65 AND LATER -- $17,226.87(1)
USING CURRENT CONTRACTUAL CHARGES
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH SURRENDER VALUE (2)
--------------------------------------- ---------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED AT --------------------------------------- ---------------------------------------
POLICY ANNUAL 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PREMIUM PER YEAR (1) (-1.13% NET) (4.87% NET) (10.87% NET) (-1.13% NET) (4.87% NET) (10.87% NET)
------ ------- -------------- ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 1,372 $ 1,426 $300,130 $300,190 $ 300,250 $ 0 $ 0 $ 0
2 $ 1,390 $ 2,929 $300,237 $300,403 $ 300,578 $ 0 $ 0 $ 0
3 $ 1,417 $ 4,520 $300,324 $300,645 $ 300,996 $ 0 $ 0 $ 274
4 $ 1,446 $ 6,205 $300,396 $300,923 $ 301,521 $ 155 $ 682 $ 1,279
5 $ 1,475 $ 7,987 $300,450 $301,235 $ 302,162 $ 797 $ 1,581 $ 2,508
6 $ 1,512 $ 9,879 $300,517 $301,615 $ 302,966 $ 2,030 $ 3,128 $ 4,479
7 $ 1,551 $ 11,888 $300,569 $302,041 $ 303,925 $ 3,289 $ 4,761 $ 6,645
8 $ 1,593 $ 14,020 $300,611 $302,518 $ 305,058 $ 4,544 $ 6,451 $ 8,991
9 $ 1,638 $ 16,284 $300,640 $303,047 $ 306,387 $ 5,797 $ 8,204 $ 11,544
10 $ 1,688 $ 18,691 $300,654 $303,629 $ 307,928 $ 7,042 $ 10,017 $ 14,316
15 $ 2,019 $ 33,270 $300,459 $307,393 $ 319,715 $ 10,298 $ 17,232 $ 29,554
20 $ 2,610 $ 53,615 $303,588 $317,089 $ 346,868 $ 16,652 $ 30,153 $ 59,932
25 $ 3,610 $ 83,017 $309,778 $333,388 $ 398,075 $ 25,048 $ 48,658 $ 113,345
30 (AGE 65) $ 5,363 $126,619 $317,286 $356,561 $ 489,096 $ 32,286 $ 71,561 $ 204,096
35 $16,638 $247,773 $324,903 $385,717 $ 607,652 $ 91,206 $152,020 $ 373,955
40 $16,638 $395,174 $328,307 $436,067 $ 891,479 $143,316 $251,076 $ 658,972
45 $16,638 $574,510 $329,940 $515,600 $1,403,466 $187,531 $373,191 $1,120,915
(1) FOR A HYPOTHETICAL GROSS INVESTMENT RETURN OF 0%, THE PREMIUM AFTER AGE
65 WILL BE $16,637.88. FOR A GROSS RETURN OF 6%, THE PREMIUM AFTER AGE
65 WILL BE $14,546.64. FOR A GROSS RETURN OF 12%, THE PREMIUM AFTER
AGE 65 WILL BE $7,489.52. THE PREMIUMS ACCUMULATED IN COLUMN 3 ARE THOSE
PAYABLE IF THE GROSS INVESTMENT RETURN IS 0%. FOR AN EXPLANATION OF WHY
THE SCHEDULED PREMIUM MAY SIGNIFICANTLY INCREASE AFTER AGE 65, SEE
PREMIUMS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
</TABLE>
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION
OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES OF RETURN MAY BE
MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS
INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER, PREVAILING INTEREST
RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND CASH SURRENDER VALUE FOR
A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY PRUDENTIAL OR THE SERIES FUND THAT THESE HYPOTHETICAL RATES OF RETURN
CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
T4
