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PACIFIC SELECT CHOICE
Flexible Premium Variable Universal Life Insurance Policy
Issued by Pacific Life Insurance Company
Supplement dated December 17, 1999 to
Prospectus dated May 1, 1999
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This supplement changes the Prospectus to reflect the following effective
January 1, 2000:
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Two New Variable Investment The two new Variable Investment Options are added to the list on page 1 of the
Options Are Available Prospectus and the definition of Variable Account on page 3 of the Prospectus.
References to the 18 Variable Investment Options throughout the Prospectus are
. Diversified Research changed to refer to 20 Variable Investment Options.
. International Large-Cap
--------------------------------------------------------------------------------
The Names of Two Variable The Growth Variable Investment Option is now called the Small-Cap Equity
Investment Options Are Changed Variable Investment Option.
The International Variable Investment Option is now called the International
Value Variable Investment Option.
These new names reflect the change in name of the underlying Portfolios of
Pacific Select Fund. Throughout the Prospectus or supplement thereof, any
reference to the Growth or International Portfolio, Variable Account or
Variable Investment Option is changed to refer to the Small-Cap Equity or
International Value Portfolio, Variable Account or Variable Investment Option,
respectively.
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An Overview of Pacific Select Choice The following is added to the chart under Fees and Expenses Paid by the Pacific
Is Amended Select Fund:
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Portfolio Advisory Fee Other Expenses Total Expenses+
-------------------------------------------------------------------------------
Diversified Research* 0.90% 0.05% 0.95%
International Large-Cap* 1.05% 0.15% 1.20%
* Expenses are estimated. There were no actual advisory fees or other expenses
for these Portfolios in 1998 because the Portfolios started on January 3,
2000. See page 13 of the Prospectus for information about expense caps
through December 31, 2000 for these Portfolios.
+ Effective January 1, 2000, the Fund will implement a brokerage enhancement
12b-1 plan, under which brokerage transactions may be placed with broker-
dealers in return for credits that may be used to help promote distribution
of Fund shares. There are no fees or charges to any Portfolio under this
plan, although the Fund's Distributor may defray expenses which it would
otherwise incur for distribution. If you assume the credits are a direct Fund
expense, the expense would have no effect on Other Expenses shown above.
The expenses for Equity Index in the chart under Fees and Expenses Paid by the
Pacific Select Fund are replaced with the following:
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Portfolio Advisory Fee Other Expenses Total Expenses+
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Equity Index 0.25% 0.05% 0.30%
1
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The Following Portfolios Have New Alliance Capital Management L.P. is the Portfolio Manager of the Emerging
Portfolio Managers Markets Portfolio.
Mercury Asset Management US is the Portfolio Manager of the Equity Index and
Small-Cap Index Portfolios.
--------------------------------------------------------------------------------
Your Investment Options Is The chart on page 14 of the Prospectus is replaced with the chart on page 3 of
Amended this supplement.
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Illustrations Is Amended The seventh and eighth bullet points under Assumptions are replaced:
. Illustrations 1 through 6 assume total annual advisory fees and expenses of
.80% of total average daily net assets of the Fund. This reflects average
advisory fees of .72% and average expenses of .08% based upon fees and
expenses of Portfolios available as Investment Options under the Policy.
. Illustrations 7 and 8 assume total annual advisory fees and expenses of .68%
of total average daily net assets of the Fund. This reflects weighted average
advisory fees of .61% and weighted average expenses of .07% based upon fees
and expenses of Portfolios available as Investment Options under the Policy.
The second bullet point under Things to keep in mind is replaced:
. After we've deducted the charges and fund expenses described in the
assumptions above, the illustrated gross annual investment rates of return of
0%, 6% and 12% correspond to approximate net annual rates of return of -.80%,
5.15%, and 11.10% for illustrations 1 through 6 and -.68%, 5.28%, and 11.24%
for illustrations 7 and 8.
Illustrations 1 through 8 are replaced with pages 4 through 11 of this
supplement.
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2
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THE FUND'S PROSPECTUS ACCOMPANIES THIS PROSPECTUS AND SHOULD BE READ
CAREFULLY BEFORE INVESTING.
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Primary Investments
Portfolio Objective (under normal circumstances) Portfolio Manager
- -----------------------------------------------------------------------------------------------------------------------
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Aggressive Equity Capital appreciation. Equity securities of small Alliance Capital
emerging-growth companies Management L.P.
and medium-sized
companies.
- -----------------------------------------------------------------------------------------------------------------------
Emerging Markets Long-term growth of capital. Equity securities of Alliance Capital
companies that are located Management L.P.
in countries generally
regarded as "emerging
market" countries.
- -----------------------------------------------------------------------------------------------------------------------
Diversified Re- Long-term growth of capital. Equity securities of U.S. Capital Guardian
search companies and securities Trust Company
whose principal markets
are in the U.S.
- -----------------------------------------------------------------------------------------------------------------------
Small-Cap Equity Growth of capital. Equity securities of Capital Guardian
(formerly called smaller and medium-sized Trust Company
Growth) companies.
- -----------------------------------------------------------------------------------------------------------------------
International Long-term growth of capital. Equity securities of non- Capital Guardian
Large-Cap U.S. companies and Trust Company
securities whose principal
markets are outside of the
U.S.
- -----------------------------------------------------------------------------------------------------------------------
Bond and Income Total return and income A wide range of fixed Goldman Sachs
consistent with prudent income securities with Asset Management
investment management. varying terms to maturity,
with an emphasis on long-
term bonds.
- -----------------------------------------------------------------------------------------------------------------------
Equity Capital appreciation. Equity securities of large Goldman Sachs
Current income is of U.S. growth-oriented Asset Management
secondary importance. companies.
- -----------------------------------------------------------------------------------------------------------------------
Multi-Strategy High total return. A mix of equity and fixed J.P. Morgan
income securities. Investment Management
Inc.
- -----------------------------------------------------------------------------------------------------------------------
Equity Income Long-term growth of capital Equity securities of large J.P. Morgan
and income. and medium-sized dividend- Investment Management
paying U.S. companies. Inc.
- -----------------------------------------------------------------------------------------------------------------------
Growth LT Long-term growth of capital Equity securities of a Janus Capital
consistent with the large number of companies Corporation
preservation of capital. of any size.
- -----------------------------------------------------------------------------------------------------------------------
Mid-Cap Value Capital appreciation. Equity securities of Lazard Asset
medium-sized U.S. Management
companies believed to be
undervalued.
- -----------------------------------------------------------------------------------------------------------------------
Equity Index Investment results that Equity securities of Mercury Asset
correspond to the total companies that are Management US
return of common stocks included in the Standard &
publicly traded in the U.S. Poor's 500 Composite Stock
Price Index.
- -----------------------------------------------------------------------------------------------------------------------
Small-Cap Index Investment results that Equity securities of Mercury Asset
correspond to the total companies that are Management US
return of an index of small included in the Russell
capitalization companies. 2000 Small Stock Index.
- -----------------------------------------------------------------------------------------------------------------------
REIT Current income and long-term Equity securities of real Morgan Stanley Asset
capital appreciation. estate investment trusts. Management
- -----------------------------------------------------------------------------------------------------------------------
International Long-term capital Equity securities of Morgan Stanley Asset
Value appreciation primarily companies of any size Management
(formerly called through investment in equity located in developed
International) securities of corporations countries outside of the
domiciled in countries other U.S.
than the United States.
- -----------------------------------------------------------------------------------------------------------------------
Government Maximize total return Fixed income securities Pacific Investment
Securities consistent with prudent that are issued or Management Company
investment management. guaranteed by the U.S.
government, its agencies
or government-sponsored
enterprises.
- -----------------------------------------------------------------------------------------------------------------------
Managed Bond Maximize total return Medium and high-quality Pacific Investment
consistent with prudent fixed income securities Management Company
investment management. with varying terms to
maturity.
- -----------------------------------------------------------------------------------------------------------------------
Money Market Current income consistent Highest quality money Pacific Life
with preservation of market instruments
capital. believed to have limited
credit risk.
- -----------------------------------------------------------------------------------------------------------------------
High Yield Bond High level of current Fixed income securities Pacific Life
income. with lower and medium-
quality credit ratings and
intermediate to long terms
to maturity.
- -----------------------------------------------------------------------------------------------------------------------
Large-Cap Value Long-term growth of capital. Equity securities of large Salomon Brothers
Current income is of U.S. companies. Asset Management Inc
secondary importance.
- -----------------------------------------------------------------------------------------------------------------------
3
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ILLUSTRATIONS
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Illustration 1
Death benefit Option A and guideline premium test at current cost of
insurance rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION A
GUIDELINE PREMIUM TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
ANNUAL PREMIUM:$10,000
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Flexible premium variable universal life Total
Illustration of death benefits, Accumulated premiums
Values and Net Cash Surrender values. End of paid plus End of year DEATH BENEFIT assuming
Policy interest at hypothetical gross annual investment return of
All premium payments are illustrated as if Year 5% 0% 6% 12%
made at the beginning of the Policy Year. ------------------------------------------------------------------------------
1 $10,500 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 2 $21,525 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 3 $33,101 $559,458 $559,458 $559,458
4 $45,256 $559,458 $559,458 $559,458
The death benefits, Accumulated Values 5 $58,019 $559,458 $559,458 $559,458
and Net Cash Surrender Values will differ if 6 $71,420 $559,458 $559,458 $559,458
premiums are paid in different amounts or 7 $85,491 $559,458 $559,458 $559,458
frequencies. 8 $100,266 $559,458 $559,458 $559,458
9 $115,779 $559,458 $559,458 $559,458
The hypothetical investment rates shown 10 $132,068 $559,458 $559,458 $559,458
above and elsewhere in this prospectus are 15 $226,575 $559,458 $559,458 $559,458
illustrative only and should not be 20 $347,192 $559,458 $559,458 $672,046
interpreted as a representation of past or 25 $501,134 $559,458 $559,458 $1,103,363
future investment results. Actual rates of 30 $697,607 $559,458 $586,012 $1,831,418
return may be more or less than those shown 35 $948,362 $559,458 $747,824 $2,904,204
and will depend on a number of factors, ------------------------------------------------------------------------------
including the investment allocations made End of year End of year
to Variable Accounts by the Owner and the ACCUMULATED VALUE NET CASH SURRENDER VALUE
experience of the Accounts. No End of assuming hypothetical gross assuming hypothetical gross
representation can be made by us, the Policy annual investment return of annual investment return of
Separate Account or the Fund that these Year 0% 6% 12% 0% 6% 12%
hypothetical rates of return can be ------------------------------------------------------------------------------
achieved for any one year or sustained over 1 $5,308 $5,678 $6,050 $3,350 $3,720 $4,092
any period of time. 2 $10,818 $11,899 $13,026 $10,113 $11,195 $12,322
3 $16,967 $19,162 $21,537 $15,009 $17,204 $19,579
This is an illustration only. An 4 $24,364 $28,169 $32,434 $22,406 $26,211 $30,476
illustration is not intended to predict 5 $31,649 $37,577 $44,466 $29,690 $35,619 $42,508
actual performance. Interest rates, 6 $38,776 $47,357 $57,704 $37,209 $45,791 $56,138
dividends, and values set forth in the 7 $45,742 $57,523 $72,275 $44,567 $56,348 $71,100
illustration are not guaranteed. 8 $52,564 $68,107 $88,336 $51,780 $67,323 $87,552
9 $59,266 $79,156 $106,075 $58,874 $78,763 $105,683
10 $65,992 $90,843 $125,833 $65,992 $90,843 $125,833
15 $98,906 $160,124 $265,891 $98,906 $160,124 $265,891
20 $126,119 $245,518 $501,527 $126,119 $245,518 $501,527
25 $147,742 $357,386 $904,396 $147,742 $357,386 $904,396
30 $162,065 $505,183 $1,578,808 $162,065 $505,183 $1,578,808
35 $167,974 $698,901 $2,714,209 $167,974 $698,901 $2,714,209
------------------------------------------------------------------------------
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4
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Illustration 2
Death benefit Option A and guideline premium test at guaranteed cost of
insurance rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION A
GUIDELINE PREMIUM TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
ANNUAL PREMIUM:$10,000
---------------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if ---------------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans or 3 $33,101 $559,458 $559,458 $559,458
Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
*Additional payment will be required to 6 $71,420 $559,458 $559,458 $559,458
prevent Policy termination. 7 $85,491 $559,458 $559,458 $559,458
8 $100,266 $559,458 $559,458 $559,458
The death benefits, Accumulated Values 9 $115,779 $559,458 $559,458 $559,458
and Net Cash Surrender Values will differ 10 $132,068 $559,458 $559,458 $559,458
if premiums are paid in different amounts 15 $226,575 $559,458 $559,458 $559,458
or frequencies. 20 $347,192 $559,458 $559,458 $592,497
25 $501,134 $559,458 $559,458 $969,748
The hypothetical investment rates shown 30 $697,607 $559,458 $559,458 $1,594,216
above and elsewhere in this prospectus 35 $948,362 $0* $559,458 $2,496,976
are illustrative only and should not be ---------------------------------------------------------------------------------
interpreted as a representation of past End of year End of year
or future investment results. Actual rates ACCUMULATED VALUE NET CASH SURRENDER VALUE
of return may be more or less than those End of assuming hypothetical gross assuming hypothetical gross
shown and will depend on a number of Policy annual investment return of annual investment return of
factors, including the investment Year 0% 6% 12% 0% 6% 12%
allocations made to Variable Accounts by ---------------------------------------------------------------------------------
the Owner and the experience of the 1 $5,203 $5,570 $5,939 $3,245 $3,612 $3,981
Accounts. No representation can be made by 2 $10,374 $11,435 $12,542 $9,670 $10,731 $11,838
us, the Separate Account or the Fund that 3 $16,066 $18,200 $20,511 $14,108 $16,241 $18,552
these hypothetical rates of return can be 4 $22,871 $26,542 $30,663 $20,913 $24,584 $28,705
achieved for any one year or sustained over 5 $29,429 $35,110 $41,727 $27,471 $33,152 $39,769
any period of time. 6 $35,727 $43,901 $53,786 $34,161 $42,334 $52,220
7 $41,767 $52,924 $66,952 $40,591 $51,749 $65,777
This is an illustration only. An 8 $47,539 $62,185 $81,338 $46,756 $61,401 $80,555
illustration is not intended to predict 9 $53,077 $71,727 $97,119 $52,685 $71,334 $96,726
actual performance. Interest rates, 10 $58,491 $81,686 $114,581 $58,491 $81,686 $114,581
dividends, and values set forth in the 15 $82,331 $138,300 $236,623 $82,331 $138,300 $236,623
illustration are not guaranteed. 20 $95,422 $203,174 $442,162 $95,422 $203,174 $442,162
25 $93,990 $282,009 $794,875 $93,990 $282,009 $794,875
30 $64,669 $378,489 $1,374,324 $64,669 $378,489 $1,374,324
35 $0* $510,942 $2,333,623 $0* $510,942 $2,333,623
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5
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ILLUSTRATIONS
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Illustration 3
Death benefit Option B and guideline premium test at current cost of insurance
rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION B
GUIDELINE PREMIUM TEST
FACE AMOUNT:$172,202
MALE NONSMOKER ISSUE AGE 40
PREMIUM:$10,000
-----------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if -----------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $178,083 $178,458 $178,833
2 $21,525 $185,479 $186,682 $187,930
This illustration assumes no Policy loans 3 $33,101 $193,938 $196,514 $199,281
or Partial Withdrawals have been made. 4 $45,256 $202,261 $206,768 $211,791
5 $58,019 $210,474 $217,490 $225,608
The death benefits, Accumulated Values and 6 $71,420 $218,710 $228,839 $241,014
Net Cash Surrender Values will differ if 7 $85,491 $226,795 $240,660 $257,976
premiums are paid in different amounts or 8 $100,266 $234,735 $252,975 $276,660
frequencies. 9 $115,779 $242,528 $265,803 $297,238
10 $132,068 $250,181 $279,170 $319,908
The hypothetical investment rates shown 15 $226,575 $288,559 $358,769 $482,816
above and elsewhere in this prospectus are 20 $347,192 $323,171 $457,712 $766,507
illustrative only and should not be 25 $501,134 $355,315 $585,157 $1,246,689
interpreted as a representation of past or 30 $697,607 $383,079 $745,341 $2,058,943
future investment results. Actual rates of 35 $948,362 $405,954 $947,089 $3,255,816
return may be more or less than those shown -----------------------------------------------------------------------------
and will depend on a number of factors, End of year End of year
including the investment allocations made ACCUMULATED VALUE NET CASH SURRENDER VALUE
to Variable Accounts by the Owner and the End of assuming hypothetical gross assuming hypothetical gross
experience of the accounts. No Policy annual investment return of annual investment return of
representation can be made by us, the Year 0% 6% 12% 0% 6% 12%
Separate Account or the Fund that these -----------------------------------------------------------------------------
hypothetical rates of return can be achieved 1 $5,881 $6,256 $6,631 $5,713 $6,088 $6,463
for any one year or sustained over any 2 $13,277 $14,480 $15,728 $13,755 $14,958 $16,206
period of time. 3 $21,736 $24,312 $27,079 $21,134 $23,709 $26,476
4 $30,059 $34,566 $39,589 $29,456 $33,963 $38,987
This is an illustration only. An 5 $38,271 $45,287 $53,406 $37,669 $44,685 $52,803
illustration is not intended to predict 6 $46,508 $56,637 $68,811 $46,026 $56,155 $68,329
actual performance. Interest rates, 7 $54,593 $68,458 $85,774 $54,231 $68,096 $85,412
dividends, and values set forth in the 8 $62,533 $80,773 $104,458 $62,292 $80,532 $104,217
illustration are not guaranteed. 9 $70,326 $93,601 $125,036 $70,205 $93,480 $124,915
10 $77,979 $106,968 $147,706 $77,979 $106,968 $147,706
15 $116,357 $186,567 $307,526 $116,357 $186,567 $307,526
20 $150,969 $285,509 $572,020 $150,969 $285,509 $572,020
25 $183,113 $412,955 $1,021,876 $183,113 $412,955 $1,021,876
30 $210,877 $573,139 $1,774,951 $210,877 $573,139 $1,774,951
35 $233,751 $774,887 $3,042,819 $233,751 $774,887 $3,042,819
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6
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Illustration 4
Death benefit Option B and guideline premium test at guaranteed cost of
insurance rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION B
GUIDELINE PREMIUM TEST
FACE AMOUNT:$172,202
MALE NONSMOKER ISSUE AGE 40
GUIDELINE SINGLE PREMIUM:$10,000
-----------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if -----------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $178,051 $178,424 $178,798
2 $21,525 $185,318 $186,514 $187,755
This illustration assumes no Policy loans 3 $33,101 $193,611 $196,164 $198,908
or Partial Withdrawals have been made. 4 $45,256 $201,724 $206,182 $211,152
5 $58,019 $209,682 $216,606 $224,623
The death benefits, Accumulated Values and 6 $71,420 $217,628 $227,605 $239,606
Net Cash Surrender Values will differ if 7 $85,491 $225,389 $239,020 $256,062
premiums are paid in different amounts or 8 $100,266 $232,962 $250,863 $274,136
frequencies. 9 $115,779 $240,347 $263,149 $293,991
10 $132,068 $247,538 $275,889 $315,801
The hypothetical investment rates shown 15 $226,575 $282,690 $350,731 $468,412
above and elsewhere in this prospectus are 20 $347,192 $312,249 $441,405 $731,979
illustrative only and should not be 25 $501,134 $336,424 $554,537 $1,179,482
interpreted as a representation of past or 30 $697,607 $350,037 $689,030 $1,922,856
future investment results. Actual rates of 35 $948,362 $347,760 $844,592 $2,997,479
return may be more or less than those shown -----------------------------------------------------------------------------
and will depend on a number of factors, End of year End of year
including the investment allocations made ACCUMULATED VALUE NET CASH SURRENDER VALUE
to Variable Accounts by the Owner and the End of assuming hypothetical gross assuming hypothetical gross
experience of the Accounts. No Policy annual investment return of annual investment return of
representation can be made by us, the Year 0% 6% 12% 0% 6% 12%
Separate Account or the Fund that these -----------------------------------------------------------------------------
hypothetical rates of return can be achieved 1 $5,849 $6,222 $6,596 $5,681 $6,054 $6,428
for any one year or sustained over any 2 $13,116 $14,312 $15,553 $13,594 $14,790 $16,030
period of time. 3 $21,409 $23,962 $26,706 $20,807 $23,359 $26,104
4 $29,522 $33,979 $38,950 $28,919 $33,377 $38,347
This is an illustration only. An 5 $37,480 $44,404 $52,421 $36,877 $43,801 $51,818
illustration is not intended to predict 6 $45,426 $55,403 $67,404 $44,944 $54,921 $66,922
actual performance. Interest rates, 7 $53,187 $66,818 $83,860 $52,825 $66,456 $83,498
dividends, and values set forth in the 8 $60,760 $78,661 $101,934 $60,519 $78,419 $101,692
illustration are not guaranteed. 9 $68,145 $90,947 $121,789 $68,024 $90,826 $121,668
10 $75,336 $103,687 $143,599 $75,336 $103,687 $143,599
15 $110,488 $178,529 $296,210 $110,488 $178,529 $296,210
20 $140,047 $269,203 $546,253 $140,047 $269,203 $546,253
25 $164,222 $382,335 $966,789 $164,222 $382,335 $966,789
30 $177,835 $516,828 $1,657,634 $177,835 $516,828 $1,657,634
35 $175,558 $672,390 $2,801,382 $175,558 $672,390 $2,801,382
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7
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ILLUSTRATIONS
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Illustration 5
Cash value accumulation test at current cost of insurance rates
Based on average annual advisory fees and expenses of the Portfolios
CASH VALUE ACCUMULATION TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
PREMIUM:$10,000
-----------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if -----------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 3 $33,101 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
The death benefits, Accumulated Values and 6 $71,420 $559,458 $559,458 $559,458
Net Cash Surrender Values will differ if 7 $85,491 $559,458 $559,458 $559,458
premiums are paid in different amounts or 8 $100,266 $559,458 $559,458 $559,458
frequencies. 9 $115,779 $559,458 $559,458 $559,458
10 $132,068 $559,458 $559,458 $559,458
The hypothetical investment rates shown 15 $226,575 $559,458 $559,458 $585,400
above and elsewhere in this prospectus are 20 $347,192 $559,458 $559,458 $950,218
illustrative only and should not be 25 $501,134 $559,458 $605,808 $1,475,838
interpreted as a representation of past or 30 $697,607 $559,458 $747,867 $2,221,367
future investment results. Actual rates of 35 $948,362 $559,458 $890,437 $3,278,308
return may be more or less than those shown -----------------------------------------------------------------------------
and will depend on a number of factors, End of year End of year
including the investment allocations made to ACCUMULATED VALUE NET CASH SURRENDER VALUE
Variable Accounts by the Owner and the End of assuming hypothetical gross assuming hypothetical gross
experience of the Accounts. No Policy annual investment return of annual investment return of
representation can be made by us, the Year 0% 6% 12% 0% 6% 12%
Separate Account or the Fund that these -----------------------------------------------------------------------------
hypothetical rates of return can be achieved 1 $5,308 $5,678 $6,050 $3,350 $3,720 $4,092
for any one year or sustained over any 2 $10,818 $11,899 $13,026 $10,113 $11,195 $12,322
period of time. 3 $16,967 $19,162 $21,537 $15,009 $17,204 $19,579
4 $24,364 $28,169 $32,434 $22,406 $26,211 $30,476
This is an illustration only. An 5 $31,649 $37,577 $44,466 $29,690 $35,619 $42,508
illustration is not intended to predict 6 $38,776 $47,357 $57,705 $37,209 $45,791 $56,138
actual performance. Interest rates, 7 $45,742 $57,523 $72,275 $44,567 $56,348 $71,101
dividends, and values set forth in the 8 $52,564 $68,107 $88,336 $51,780 $67,324 $87,553
illustration are not guaranteed. 9 $59,266 $79,155 $106,075 $58,874 $78,764 $105,683
10 $65,992 $90,842 $125,833 $65,992 $90,842 $125,833
15 $98,906 $160,123 $265,863 $98,906 $160,123 $265,863
20 $126,119 $245,516 $494,133 $126,119 $245,516 $494,133
25 $147,742 $356,875 $869,400 $147,742 $356,875 $869,400
30 $162,065 $492,324 $1,462,336 $162,065 $492,324 $1,462,336
35 $167,974 $646,129 $2,378,844 $167,974 $646,129 $2,378,844
-----------------------------------------------------------------------------
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8
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-----------------------------------------------------------------------------
Illustration 6
Cash value accumulation test at guaranteed cost of insurance rates
Based on average annual advisory fees and expenses of the Portfolios
CASH VALUE ACCUMULATION TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
GUIDELINE SINGLE PREMIUM:$10,000
-----------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if -----------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 3 $33,101 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
*Additional payment will be required to 6 $71,420 $559,458 $559,458 $559,458
prevent Policy termination. 7 $85,491 $559,458 $559,458 $559,458
8 $100,266 $559,458 $559,458 $559,458
The death benefits, Accumulated Values and 9 $115,779 $559,458 $559,458 $559,458
Net Cash Surrender Values will differ if 10 $132,068 $559,458 $559,458 $559,458
premiums are paid in different amounts or 15 $226,575 $559,458 $559,458 $559,458
frequencies. 20 $347,192 $559,458 $559,458 $833,168
25 $501,134 $559,458 $559,458 $1,260,765
The hypothetical investment rates shown 30 $697,607 $559,458 $574,601 $1,840,815
above and elsewhere in this prospectus 35 $948,362 $0* $675,094 $2,632,765
are illustrative only and should not be -----------------------------------------------------------------------------
interpreted as a representation of past End of year End of year
or future investment results. Actual ACCUMULATED VALUE NET CASH SURRENDER VALUE
rates of return may be more or less than End of assuming hypothetical gross assuming hypothetical gross
those shown and will depend on a number of Policy annual investment return of annual investment return of
factors, including the investment Year 0% 6% 12% 0% 6% 12%
allocations made to Variable Accounts by -----------------------------------------------------------------------------
the Owner and the experience of the 1 $5,203 $5,570 $5,939 $3,245 $3,612 $3,981
accounts. No representation can be made by 2 $10,374 $11,435 $12,542 $9,670 $10,731 $11,838
us, the Separate Account or the Fund that 3 $16,066 $18,199 $20,511 $14,108 $16,241 $18,552
these hypothetical rates of return can be 4 $22,871 $26,542 $30,663 $20,913 $24,584 $28,705
achieved for any one year or sustained 5 $29,429 $35,110 $41,727 $27,471 $33,152 $39,769
over any period of time. 6 $35,727 $43,900 $53,787 $34,161 $42,334 $52,220
7 $41,767 $52,924 $66,952 $40,591 $51,749 $65,777
This is an illustration only. An 8 $47,539 $62,184 $81,338 $46,756 $61,401 $80,555
illustration is not intended to predict 9 $53,077 $71,726 $97,119 $52,685 $71,335 $96,727
actual performance. Interest rates, 10 $58,491 $81,685 $114,581 $58,491 $81,685 $114,581
dividends, and values set forth in the 15 $82,331 $138,299 $236,624 $82,331 $138,299 $236,624
illustration are not guaranteed. 20 $95,422 $203,172 $433,265 $95,422 $203,172 $433,265
25 $93,990 $282,005 $742,703 $93,990 $282,005 $742,703
30 $64,669 $378,262 $1,211,816 $64,669 $378,262 $1,211,816
35 $0* $489,869 $1,910,418 $0* $489,869 $1,910,418
-----------------------------------------------------------------------------
9
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<CAPTION>
ILLUSTRATIONS
<S> <C>
------------------------------------------------------------------------------
Illustration 7
Death benefit Option A and guideline premium test at current cost of insurance
rates
Based on a weighted average of annual advisory fees and expenses of the
Portfolios
DEATH BENEFIT OPTION A
GUIDELINE PREMIUM TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
ANNUAL PREMIUM:$10,000
-----------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if -----------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 3 $33,101 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
The death benefits, Accumulated Values and 6 $71,420 $559,458 $559,458 $559,458
Net Cash Surrender Values will differ if 7 $85,491 $559,458 $559,458 $559,458
premiums are paid in different amounts or 8 $100,266 $559,458 $559,458 $559,458
frequencies. 9 $115,779 $559,458 $559,458 $559,458
10 $132,068 $559,458 $559,458 $559,458
The hypothetical investment rates shown 15 $226,575 $559,458 $559,458 $559,458
above and elsewhere in this prospectus 20 $347,192 $559,458 $559,458 $683,117
are illustrative only and should not be 25 $501,134 $559,458 $559,458 $1,126,839
interpreted as a representation of past or 30 $697,607 $559,458 $600,746 $1,879,928
future investment results. Actual rates of 35 $948,362 $559,458 $769,632 $2,997,181
return may be more or less than those shown -----------------------------------------------------------------------------
and will depend on a number of factors, End of year End of year
including the investment allocations made ACCUMULATED VALUE NET CASH SURRENDER VALUE
to Variable Accounts by the Owner and the End of assuming hypothetical gross assuming hypothetical gross
experience of the Accounts. No Policy annual investment return of annual investment return of
representation can be made by us, the Year 0% 6% 12% 0% 6% 12%
Separate Account or the Fund that these -----------------------------------------------------------------------------
hypothetical rates of return can be 1 $5,315 $5,686 $6,058 $3,357 $3,728 $4,100
achieved for any one year or sustained 2 $10,839 $11,923 $13,052 $10,135 $11,218 $12,348
over any period of time. 3 $17,010 $19,211 $21,593 $15,052 $17,253 $19,634
4 $24,436 $28,255 $32,536 $22,478 $26,297 $30,578
This is an illustration only. An 5 $31,759 $37,714 $44,633 $29,801 $35,755 $42,675
illustration is not intended to predict 6 $38,933 $47,559 $57,961 $37,366 $45,992 $56,394
actual performance. Interest rates, 7 $45,954 $57,805 $72,648 $44,779 $56,629 $71,473
dividends, and values set forth in the 8 $52,838 $68,486 $88,857 $52,055 $67,702 $88,073
illustration are not guaranteed. 9 $59,610 $79,649 $106,781 $59,218 $79,257 $106,389
10 $66,414 $91,472 $126,769 $66,414 $91,472 $126,769
15 $99,840 $161,829 $269,016 $99,840 $161,829 $269,016
20 $127,745 $249,187 $509,789 $127,745 $249,187 $509,789
25 $150,262 $364,504 $923,638 $150,262 $364,504 $923,638
30 $165,654 $517,884 $1,620,628 $165,654 $517,884 $1,620,628
35 $172,837 $719,283 $2,801,103 $172,837 $719,283 $2,801,103
-----------------------------------------------------------------------------
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10
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<S> <C>
------------------------------------------------------------------------------
Illustration 8
Death benefit Option A and guideline premium test at guaranteed cost of
insurance rates
Based on a weighted average of annual advisory fees and expenses of the
Portfolios
DEATH BENEFIT OPTION A
GUIDELINE PREMIUM TEST
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
GUIDELINE SINGLE PREMIUM:$10,000
------------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if ------------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 3 $33,101 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
*Additional payment will be required to 6 $71,420 $559,458 $559,458 $559,458
prevent Policy termination. 7 $85,491 $559,458 $559,458 $559,458
8 $100,266 $559,458 $559,458 $559,458
The death benefits, Accumulated Values and 9 $115,779 $559,458 $559,458 $559,458
Net Cash Surrender Values will differ if 10 $132,068 $559,458 $559,458 $559,458
premiums are paid in different amounts or 15 $226,575 $559,458 $559,458 $559,458
frequencies. 20 $347,192 $559,458 $559,458 $602,973
25 $501,134 $559,458 $559,458 $991,309
The hypothetical investment rates shown 30 $697,607 $559,458 $559,458 $1,637,713
above and elsewhere in this prospectus are 35 $948,362 $0* $572,215 $2,578,617
illustrative only and should not be ------------------------------------------------------------------------------
interpreted as a representation of past or End of year End of year
future investment results. Actual rates of ACCUMULATED VALUE NET CASH SURRENDER VALUE
return may be more or less than those shown End of assuming hypothetical gross assuming hypothetical gross
and will depend on a number of factors, Policy annual investment return of annual investment return of
including the investment allocations made Year 0% 6% 12% 0% 6% 12%
to Variable Accounts by the Owner and the ------------------------------------------------------------------------------
experience of the Accounts. No 1 $5,211 $5,578 $5,947 $3,253 $3,620 $3,989
representation can be made by us, the 2 $10,395 $11,458 $12,567 $9,691 $10,754 $11,863
Separate Account or the Fund that these 3 $16,107 $18,247 $20,565 $14,149 $16,289 $18,607
hypothetical rates of return can be achieved 4 $22,941 $26,625 $30,762 $20,983 $24,667 $28,804
for any one year or sustained over any 5 $29,535 $35,241 $41,889 $27,577 $33,283 $39,931
period of time. 6 $35,877 $44,093 $54,032 $34,310 $42,526 $52,465
7 $41,967 $53,192 $67,307 $40,792 $52,016 $66,132
This is an illustration only. An 8 $47,797 $62,542 $81,833 $47,013 $61,759 $81,049
illustration is not intended to predict 9 $53,398 $72,191 $97,787 $53,006 $71,799 $97,395
actual performance. Interest rates, 10 $58,883 $82,275 $115,464 $58,883 $82,275 $115,464
dividends, and values set forth in the 15 $83,176 $139,872 $239,548 $83,176 $139,872 $239,548
illustration are not guaranteed. 20 $96,858 $206,538 $449,980 $96,858 $206,538 $449,980
25 $96,151 $288,579 $812,548 $96,151 $288,579 $812,548
30 $67,666 $390,886 $1,411,822 $67,666 $390,886 $1,411,822
35 $0* $534,780 $2,409,923 $0* $534,780 $2,409,923
------------------------------------------------------------------------------
11
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<PAGE>
Form No. 15-22030-00
<PAGE>
Supplement dated December 17, 1999 to Prospectus Dated May 1, 1999 for
Pacific Select Choice
Flexible Premium Variable Life Insurance Policies
Issued by Pacific Life Insurance Company
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In this supplement, you and your mean the This supplement provides information about four additional Variable Investment
Policyholder or Owner. Pacific Life, we, us, Options offered under this Policy. Each of these Investment Options is set up
and our refer to Pacific Life Insurance as a Variable Account under our Separate Account and invests in a corresponding
Company. M Fund refers to M Fund, Inc. Portfolio of the M Fund.
You'll find an explanation of what
capitalized terms mean in the Variable Account I: Brandes International Equity Fund
accompanying variable life insurance Variable Account II: Turner Core Growth Fund
prospectus or the M Fund prospectus. Variable Account III: Frontier Capital Appreciation Fund
Variable Account IV: Enhanced U.S. Equity Fund
The M Fund is described in detail in its
prospectus and in its Statement of You can allocate premium payments and transfer Accumulated Value to these
Additional Information (SAI). Variable Investment Options, as well as to the other Investment Options
described in the accompanying Pacific Select Choice prospectus.
Pacific Select Choice is described in detail
in the accompanying variable life insurance INFORMATION ABOUT M FUND
prospectus. Except as described below, all
features and procedures of the Policy M Fund, Inc.
described in its prospectus remain intact. M Fund is a diversified, open-end management investment company registered with
the Securities and Exchange Commission ("SEC") under the Investment Company Act
of 1940. M Fund currently offers four separate Portfolios as Investment Options
under the Policies. Each Portfolio pursues different investment objectives and
policies. The shares of each Portfolio are purchased by us for the
corresponding Variable Account at net asset value, i.e., without sales load.
All dividends and capital gains distributions received from a Portfolio are
automatically reinvested in such Portfolio at net asset value, unless we, on
behalf of the Separate Account, elect otherwise. M Fund shares may be redeemed
by us at their net asset value to the extent necessary to make payments under
the Policies.
1
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Your Policy's Accumulated The following chart is a summary of the M Fund Portfolios. You'll find detailed
Value will fluctuate descriptions of the Portfolios, including the risks associated with investing
depending on the Investment in the Portfolios, in the M Fund prospectus. There's no guarantee that a
Options you've chosen. Portfolio will achieve its investment objective. You should read the M Fund
prospectus carefully before investing.
The Portfolio's The Portfolio's Main
Portfolio Investment Goal Investments Portfolio Manager
Brandes Long-term capital Equity securities of foreign Brandes Investment
International appreciation. issuers, including common stocks, Partners, L.P.
Equity preferred stocks and securities
that are convertible into common
stocks. Focuses on stocks with
capitalizations of $1 billion
or more.
Turner Core Long-term capital Common stocks that show strong Turner Investment
Growth Fund appreciation. earnings potential and also have Partners, Inc.
reasonable valuations.
Frontier Capital Maximum capital Common stock of companies of all Frontier Capital
Appreciation appreciation. sizes with emphasis on stocks Management
companies with capitalizations of Company, Inc.
less than $3 billion.
Enhanced U.S. Above-market Common stocks of U.S. companies Franklin Portfolio
Equity total return. which the portfolio manager Associates LLC
believes have the potential for
higher rates of return than the
Standard & Poor's 500 Composite
Stock Price Index while having
risks similar to those of the
index.
We are not responsible for M Financial Investment Advisers, Inc. (MFIA) is the investment adviser for each
the operation of the M Fund or Portfolio of the M Fund, and has retained other firms to manage the Portfolios.
any of its Portfolios. We also MFIA and the M Fund's Board of Directors oversee the management of all of the M
are not responsible for ensuring Fund's Portfolios.
that the M Fund and its
Portfolios comply with any
laws that apply.
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You'll find more information about Policy Fees and Expenses Paid by the M Fund
charges in An Overview of Pacific Select The M Fund pays advisory fees and other expenses. These are deducted from the
Choice in the accompanying variable life assets of each Portfolio and may vary from year to year. They are not fixed and
insurance prospectus. are not part of the terms of your Policy. If you choose a Variable Investment
Option, these fees and expenses affect you indirectly because they reduce
You'll find more about M Fund fees and Portfolio returns.
expenses in the accompanying
M Fund prospectus. M Fund's expenses are assessed at the Fund level and are not direct charges
against the Variable Accounts or the Policy's Accumulated Value. These expenses
are taken into account in computing each Portfolio's net asset value. We in
turn use each Portfolio's net asset value to compute the corresponding Variable
Account's Accumulation Unit Value.
. Advisory fee
MFIA is the investment adviser to the M Fund. The M Fund pays an advisory fee
to MFIA for these services. The table below shows the advisory fee as an annual
percentage of each Portfolio's average daily net assets.
. Other expenses
The table also shows expenses the M Fund paid in 1998 as an annual percentage
of each Portfolio's average daily net assets. MFIA has agreed to pay operating
expenses of the M Fund (not including brokerage or other Portfolio transaction
expenses, expenses for litigation, indemnification, taxes, or other
extraordinary expenses) that exceed 0.25% of each Portfolio's average daily net
assets. MFIA does this voluntarily, but does not guarantee that it will
continue to do so after December 31, 1999.
M Fund Expenses after Expense Limitation/1/
Advisory Other Total
fee expenses expenses
-------- -------- --------
Brandes International Equity 1.05% 0.25% 1.30%
Turner Core Growth 0.45% 0.25% 0.70%
Frontier Capital Appreciation 0.90% 0.25% 1.15%
Enhanced U.S. Equity 0.55% 0.25% 0.80%
/1/ Actual expenses for 1998 were 3.57% for Brandes International Equity
Portfolio, 3.42% for Turner Core Growth Portfolio, 1.75% for Frontier Capital
Appreciation Portfolio, and 2.34% for Enhanced U.S. Equity Portfolio. MFIA paid
the difference.
Statements and reports we'll send you
We'll send you financial statements that we receive from M Fund.
The rights we describe in the Voting rights
accompanying variable life insurance We're the legal owner of the shares of the M Fund that are held by the Variable
prospectus under Disregard of Voting Accounts. The voting rights we describe in the Voting of Fund Shares section of
Instructions and Substitution of Investments the accompanying variable life insurance prospectus and how we'll exercise them
also apply to the M Fund. also apply to the M Fund.
3
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ILLUSTRATIONS
<S> <C>
--------------------------------------------------------------------------------
If you ask us, we'll provide you with Illustrations 1 and 2, which appear on the following pages, illustrate how the
different kinds of illustrations: death benefit, Accumulated Value and Net Cash Surrender Value of a hypothetical
Policy may vary over an extended period of time, based on certain hypothetical
. Illustrations similar to the ones in the rates of return.
prospectus and this supplement, but
based on information you give us about These illustrations are based on a hypothetical Policy with the following
the Age of the person to be insured by characteristics:
the Policy, their risk classes, the Face
Amount, the death benefit and . the Face Amount is $559,458
premium payments.
. the annual premium is $10,000
. Illustrations that show the allocation of
premium payments to specified Variable . on the Policy Date, the person insured by the Policy is a 40-year old male
Accounts. These will reflect the non-smoker
expenses of the Portfolio in which the
Variable Account invests. The cost of insurance rates vary by illustration, as follows:
----------------------------------------------
. Illustrations that use a hypothetical gross Cost of insurance rate
rate of return that's greater than 12%. ----------------------------------------------
These are available only to certain large Illustration 1 Current
institutional investors. Illustration 2 Guaranteed
----------------------------------------------
Assumptions
The illustrations are based on the guideline premium test. Here are the
assumptions we're using:
. The hypothetical rates of return are equal to constant gross annual rates of
0%, 6% and 12%.
. All premium payments are made at the beginning of the Policy Year.
. An amount equal to the annual premium, after taxes, is invested to earn
interest at 5% compounded annually for the second column of each table, Total
premiums paid plus interest at 5%, which shows the amount that would
accumulate.
. No Policy loans have been taken out.
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4
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. The amounts shown for the death benefits, Accumulated Values and Net Cash
Surrender Values reflect charges deducted from the Variable Accounts. This
means that the net investment return on the Variable Accounts is lower than
the gross investment return on the assets.
. The amounts shown for the death benefits, Accumulated Values and Net Cash
Surrender Values also reflect premium loads, administrative charges and
mortality and expense risk charges.
The Pacific Select Fund's investment . The Illustrations assume total annual advisory fees and expenses of .80% of
advisory fees and expenses are shown total average daily net assets of the Fund. This reflects average advisory
in An Overview of Pacific Select Choice. fees of .69% and average expenses of .11% based upon fees and expenses of
Portfolios available as Investment Options under the Policy.
The M Fund's investment advisory fees
and expenses are shown on page 3 of . There are no charges against the Variable Accounts for income taxes but we
this supplement. reserve the right to impose charges in the future.
Things to keep in mind
Here are a few things to keep in mind when reviewing the illustrations:
. The values shown would be different if, although the gross annual investment
rates of return averaged 0%, 6% or 12% over a period of years, they also rose
above or fell below those averages for individual Policy years.
. After we've deducted the charges and fund expenses described in the
assumptions above, the illustrated gross annual investment rates of return of
0%, 6% and 12% correspond to approximate net annual rates of return of -.80%,
5.15%, and 11.10%.
. The amounts shown would be different if unisex insurance rates were used or if
the person insured by the Policy was female and insurance rates for females
were used.
. For the illustration that assumes current cost of insurance rates, the amounts
shown would be different if the person insured by the Policy was a smoker and
rates for smokers were used.
. The Portfolio expenses used in the illustrations do not include foreign taxes.
Here's what foreign taxes were for the year ended December 31, 1998:
-------------------------------------------------------------
Percentage of average
Portfolio daily net assets
-------------------------------------------------------------
Pacific Select Fund:
Aggressive Equity 0.01%
Growth LT 0.01%
Equity Income 0.01%
Equity Index 0.01%
International 0.23%
Emerging Markets 0.26%
M Fund:
Brandes International Equity 0.18%
-------------------------------------------------------------
5
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<TABLE>
<S> <C>
--------------------------------------------------------------------------------
Illustration 1
Death benefit Option A at current cost of insurance rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION: A
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
ANNUAL PREMIUM:$10,000
--------------------------------------------------------------------------------
Flexible premium Total
variable universal life premiums
Illustration of death benefits, Accumulated End of paid plus End of year DEATH BENEFIT assuming
Values and Net Cash Surrender Values. Policy interest at hypothetical gross annual investment return of
Year 5% 0% 6% 12%
All premium payments are illustrated as if --------------------------------------------------------------------------------
made at the beginning of the Policy Year. 1 $10,500 $559,458 $559,458 $559,458
2 $21,525 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 3 $33,101 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 4 $45,256 $559,458 $559,458 $559,458
5 $58,019 $559,458 $559,458 $559,458
The death benefits, Accumulated Values 6 $71,420 $559,458 $559,458 $559,458
and Net Cash Surrender Values will differ 7 $85,491 $559,458 $559,458 $559,458
if premiums are paid in different amounts 8 $100,266 $559,458 $559,458 $559,458
or frequencies. 9 $115,779 $559,458 $559,458 $559,458
10 $132,068 $559,458 $559,458 $559,458
The hypothetical investment rates shown 15 $226,575 $559,458 $559,458 $559,458
above and elsewhere in this prospectus 20 $347,192 $559,458 $559,458 $669,310
are illustrative only and should not be 25 $501,134 $559,458 $559,458 $1,097,583
interpreted as a representation of past or 30 $697,607 $559,458 $582,365 $1,819,515
future investment results. Actual rates of 35 $948,362 $559,458 $742,447 $2,881,472
return may be more or less than those --------------------------------------------------------------------------------
shown and will depend on a number of End of year End of year
factors, including the investment ACCUMULATED VALUE NET CASH SURRENDER VALUE
allocations made to Variable Accounts by End of assuming hypothetical gross assuming hypothetical gross
the Owner and the experience of the Policy annual investment return of annual investment return of
Accounts. No representation can be Year 0% 6% 12% 0% 6% 12%
made by us, the Separate Account or the --------------------------------------------------------------------------------
underlying funds that these hypothetical 1 $5,306 $5,676 $6,048 $3,348 $3,718 $4,090
rates of return can be achieved for any 2 $10,812 $11,893 $13,020 $10,108 $11,189 $12,315
one year or sustained over any period of 3 $16,957 $19,150 $21,523 $14,998 $17,192 $19,565
time. 4 $24,346 $28,148 $32,409 $22,388 $26,189 $30,450
5 $31,621 $37,543 $44,424 $29,663 $35,585 $42,466
This is an illustration only. An 6 $38,736 $47,307 $57,641 $37,170 $45,740 $56,074
illustration is not intended to predict 7 $45,689 $57,452 $72,183 $44,514 $56,277 $71,007
actual performance. Interest rates, 8 $52,496 $68,012 $88,206 $51,712 $67,229 $87,423
dividends, and values set forth in the 9 $59,180 $79,032 $105,899 $58,788 $78,640 $105,507
illustration are not guaranteed. 10 $65,887 $90,686 $125,600 $65,887 $90,686 $125,600
15 $98,673 $159,699 $265,117 $98,673 $159,699 $265,117
20 $125,715 $244,606 $499,485 $125,715 $244,606 $499,485
25 $147,117 $355,622 $899,658 $147,117 $355,622 $899,658
30 $161,177 $502,039 $1,568,548 $161,177 $502,039 $1,568,548
35 $166,776 $693,875 $2,692,965 $166,776 $693,875 $2,692,965
--------------------------------------------------------------------------------
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6
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<CAPTION>
<S> <C>
--------------------------------------------------------------------------------
Illustration 2
Death benefit Option A at guaranteed cost of insurance rates
Based on average annual advisory fees and expenses of the Portfolios
DEATH BENEFIT OPTION: A
FACE AMOUNT:$559,458
MALE NONSMOKER ISSUE AGE 40
GUIDELINE SINGLE PREMIUM:$10,000
Flexible premium --------------------------------------------------------------------------------
variable universal life Total
Illustration of death benefits, Accumulated premiums
Values and Net Cash Surrender Values. End of paid plus End of year DEATH BENEFIT assuming
Policy interest at hypothetical gross annual investment return of
All premium payments are illustrated as if Year 5% 0% 6% 12%
made at the beginning of the Policy Year. --------------------------------------------------------------------------------
1 $10,500 $559,458 $559,458 $559,458
This illustration assumes no Policy loans 2 $21,525 $559,458 $559,458 $559,458
or Partial Withdrawals have been made. 3 $33,101 $559,458 $559,458 $559,458
4 $45,256 $559,458 $559,458 $559,458
*Additional payment will be required to 5 $58,019 $559,458 $559,458 $559,458
prevent Policy termination. 6 $71,420 $559,458 $559,458 $559,458
7 $85,491 $559,458 $559,458 $559,458
The death benefits, Accumulated Values 8 $100,266 $559,458 $559,458 $559,458
and Net Cash Surrender Values will differ 9 $115,779 $559,458 $559,458 $559,458
if premiums are paid in different amounts 10 $132,068 $559,458 $559,458 $559,458
or frequencies. 15 $226,575 $559,458 $559,458 $559,458
20 $347,192 $559,458 $559,458 $589,906
The hypothetical investment rates shown 25 $501,134 $559,458 $559,458 $964,437
above and elsewhere in this prospectus 30 $697,607 $559,458 $559,458 $1,583,541
are illustrative only and should not be 35 $948,362 $0* $559,458 $2,477,012
interpreted as a representation of past --------------------------------------------------------------------------------
or future investment results. Actual rates End of year End of year
of return may be more or less than those ACCUMULATED VALUE NET CASH SURRENDER VALUE
shown and will depend on a number of End of assuming hypothetical gross assuming hypothetical gross
factors, including the investment Policy annual investment return of annual investment return of
allocations made to Variable Accounts by Year 0% 6% 12% 0% 6% 12%
the Owner and the experience of the --------------------------------------------------------------------------------
Accounts. No representation can be 1 $5,201 $5,568 $5,937 $3,243 $3,610 $3,978
made by us, the Separate Account or the 2 $10,369 $11,429 $12,535 $9,665 $10,725 $11,831
underlying funds that these hypothetical 3 $16,056 $18,188 $20,497 $14,098 $16,230 $18,539
rates of return can be achieved for any 4 $22,854 $26,521 $30,639 $20,896 $24,563 $28,681
one year or sustained over any period of 5 $29,403 $35,078 $41,687 $27,445 $33,119 $39,729
time. 6 $35,690 $43,852 $53,725 $34,123 $42,286 $52,159
7 $41,716 $52,857 $66,864 $40,541 $51,682 $65,688
This is an illustration only. An 8 $47,475 $62,095 $81,215 $46,691 $61,311 $80,432
illustration is not intended to predict 9 $52,997 $71,610 $96,953 $52,604 $71,218 $96,560
actual performance. Interest rates, 10 $58,394 $81,539 $114,362 $58,394 $81,539 $114,362
dividends, and values set forth in the 15 $82,120 $137,909 $235,899 $82,120 $137,909 $235,899
illustration are not guaranteed. 20 $95,065 $202,338 $440,229 $95,065 $202,338 $440,229
25 $93,455 $280,383 $790,522 $93,455 $280,383 $790,522
30 $63,930 $375,433 $1,365,122 $63,930 $375,433 $1,365,122
35 $0* $505,053 $2,314,965 $0* $505,053 $2,314,965
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7
</TABLE>
<PAGE>
Form No. 15-21533-01
