V4NY STKP* FRANKLIN VALUEMARKR IV
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
PREFERRED LIFE VARIABLE ACCOUNT C
SUPPLEMENT DATED AUGUST 2, 1998 TO
PROSPECTUS DATED MAY 1, 1998
I.The following replaces the information under "Section 9. Death Benefit - Upon
Your Death" under sub-paragraph 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.
(2) The guaranteed minimum death benefit (as explained below and in the
enhanced death benefit endorsement to your Contract), as of the day
that all claim proofs and payment election forms are received at the
Valuemark Service Center.
A. During the first year of all such Contracts and if you are age 81
or older at the time of purchase, 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 taken out,
B. After the first Contract year, for Contracts issued before your
81st birthday, and until you reach age 81, the greater of (a) or (b)
below will be your guaranteed minimum death benefit:
a) Purchase Payments
o payments you have made,
o less any money you have taken out,
o less any applicable charges paid on money taken out,
b) Contract Value
o highest value of the Contract on each Contract anniversary,
o plus any payments 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,
C. After your 81st birthday, the following guaranteed minimum death
benefit will apply:
o your guaranteed minimum death benefit on the Contract
anniversary prior to your 81st birthday,
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.
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II. The "Franklin Valuemark Funds' Annual Expenses," which appears in the section entitled "Fee Table" is amended by:
1) Restating certain Portfolios' expense figures as indicated below. The Portfolio Administration Fees for these
Portfolios were inadvertently included under "Other Expenses" rather than under "Management and Portfolio
Administration Fees." Please note that "Total Annual Expenses" for each Portfolio shown below are the same as in
the May 1, 1998 prospectus.
MANAGEMENT
AND PORTFOLIO OTHER TOTAL ANNUAL
PORTFOLIO ADMINISTRATION FEES EXPENSES EXPENSES
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<S> <C> <C> <C>
Mutual Discovery Securities Fund ................................... .95%* .11% 1.06%
Mutual Shares Securities Fund ...................................... .75%* .05% .80%
Templeton Global Asset Allocation Fund ............................. .80%* .14% .94%
Templeton International Smaller Companies Fund ..................... 1.00%* .06% 1.06%
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*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
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2) Adding the following language:
Franklin Advisers, Inc. and Franklin Templeton Services, Inc. have agreed
in advance to waive or limit their Management and Portfolio Administration
Fees and to assume as their own expense certain expenses otherwise payable
by the new Global Health Care Securities and Value Securities Funds as
necessary so that through at least December 31, 1998, Total Annual Expenses
of each of these portfolios do not exceed 1.00% of its average net assets.
As noted in the May 1, 1998 prospectus, estimated total annual expenses for
these portfolios are not anticipated to exceed 1.00% of their average net
assets.
