V4 *P
FRANKLIN VALUEMARK(R) IV
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
ALLIANZ LIFE VARIABLE ACCOUNT B
Supplement dated November 1, 1998 to
Prospectus dated May 1, 1998
The following replaces the information under section 9 "Death Benefit" on pages
6 and 7 of the Profile:
9. DEATH BENEFIT
If you die during the accumulation phase, the person you have selected as your
beneficiary will receive a death benefit. This death benefit will be the
greater of: 1) the current value of your Contract, less any taxes, on the day
all claim proofs and payment election forms are received by Allianz Life at
the Valuemark Service Center; or 2) (if applicable) the guaranteed minimum
death benefit, less any taxes, as of the day you die. During the first year,
the guaranteed minimum death benefit is equal to the payments you have made,
less any money you have taken out and any charges paid on the money you have
taken out. After the first year and before your 81st birthday (76th birthday
for deaths occurring before November 1, 1998), the guaranteed minimum death
benefit as of the date of death is the greater of:
A) payments you have made, less any money you have taken out and charges paid
on the money you have taken out, increased by 5% per year on each Contract
anniversary; or
B) the highest of the Contract values for each six year Contract anniversary
determined by the Contract value on such six year anniversary plus any
payments made, less any money taken out since that Contract anniversary, and
charges paid on the money you have taken out.
Different rules will apply after your 81st birthday (76th birthday for deaths
occurring before November 1, 1998).
The following replaces the information under section 9 "Death Benefit - Upon
Your Death" under sub-paragraph I on page 18 of the Prospectus :
I. CONTRACTS THAT RECEIVE AN ENHANCED DEATH BENEFIT ENDORSEMENT
Contracts that are owned individually, or jointly with another person, or as
agent for an individual person, will receive an enhanced death benefit
endorsement. For these Contracts the death benefit will be the greater of (1)
or (2) below:
(1) The current value of your Contract, less any taxes owed. This amount is
determined as of the day that all claim proofs and payment election forms are
received at the Valuemark Service Center; or
(2) The guaranteed minimum death benefit (as explained below and in the
enhanced death benefit endorsement to your Contract), as of the day you die.
A. During the first year of all such Contracts and if you are age 81 or
older (76 or older for deaths occurring before November 1, 1998) at the
time you purchase the contract, the following guaranteed minimum death
benefit will apply:
o payments you have made,
o less any money you have taken out,
o less any applicable charges paid on money you have taken out,
o less any premium taxes owed.
B. After the first Contract year, for Contracts issued before your 81st
birthday (76th birthday for deaths occurring before November 1, 1998),
and until you reach age 81 (age 76 for deaths occurring before November
1, 1998), the greater of (a) or (b) below will be your guaranteed
minimum death benefit:
a) 5% Increase
o payments you have made,
o less any money you have taken out,
o less any applicable charges paid on money you have taken out,
o plus 5% on each Contract anniversary,
o less any premium taxes owed.
b) Highest 6th Year Contract Value
o highest Contract value on any six year Contract anniversary,
o plus any payments you have made since that Contract
anniversary,
o less any money you have taken out since that
anniversary,
o less any applicable charges paid on money taken
out since that anniversary,
o less any premium taxes owed.
C. After your 81st birthday (76th birthday for deaths occurring before
November 1, 1998), the following guaranteed minimum death benefit will
apply:
o your guaranteed minimum death benefit on the Contract
anniversary prior to your 81st birthday (76th birthday for
deaths occurring before November 1, 1998),
o plus any payments you have made since then,
o less any money you have taken out since then,
o less any applicable charges paid on money taken out since
then,
o less any premium taxes owed.
