V4NY *P1
Supplement dated January 15, 1999 to
Prospectus dated May 1, 1998, as supplemented December 7, 1998
of
FRANKLIN(R) VALUEMARK(R) IV
PREFERRED LIFE INSURANCE COMPANY OF NEW YORK
Preferred Life Variable Account C
I.The following replaces the first paragraph under Section 4 "Investment
Options" on page 2 of the Profile: You may invest in the Preferred Life fixed
option or the following Class 1 portfolios of Franklin Valuemark Funds:
II. The following chart replaces the information under Section 5 "Expenses" on
page 4 of the Profile for the Portfolios shown below:
Total Total EXAMPLES
Annual Annual Total Expenses
Insurance Portfolio Annual at the end of:
Portfolio Charges Expenses Expenses 1 Year 10 Years
- --------------------------------------------------------------------------------
Zero Coupon 2000 .. 1.59% .63% 2.22% $83 $255
Zero Coupon 2005 .. 1.59% .65% 2.24% $83 $257
Zero Coupon 2010 .. 1.59% .65% 2.24% $83 $257
III. YEAR 2000 Preferred Life has initiated programs to ensure that all of the
computer systems utilized to provide services and administer policies will
function properly in the year 2000. An assessment of the total expected costs
specifically related to the year 2000 conversion has been completed; the total
amounts to be expensed over the next two years are not expected to have a
significant effect on Preferred Life's financial position or results of
operations. Preferred Life believes it has taken steps that are reasonably
designed to address the potential failure of computer systems used by its
service providers and to ensure its year 2000 program is completed on a timely
basis.
IV. The following changes are made to the fee table under "Franklin Valuemark
Funds' Annual Expenses": a) The following chart restates information about
certain Portfolios, as indicated below.
Management Total
and Portfolio Other Annual
Portfolio Administration Fees Expenses Expenses
- --------------------------------------------------------------------------------
Zero Coupon Fund - 20004 . .60% .03% .63%
Zero Coupon Fund - 20054 . .62% .03% .65%
Zero Coupon Fund - 20104 . .62% .03% .65%
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
b) The following footnotes are restated as follows:
2The Global Health Care Securities Fund and the Value Securities Fund
commenced operations May 1, 1998. The expenses shown above for these
Portfolios are therefore estimated for 1998.
3For the year ended December 31, 1997, Franklin Advisers, Inc. ("Advisers")
agreed in advance to waive a portion of its management fees and, if
necessary, to pay certain expenses of the Fund. With this reduction,
management fees and total annual expenses, including management and portfolio
administration fees, paid by the Portfolio represented .43% and .45% of the
Portfolio's average net assets, respectively. The voluntary expense reduction
was discontinued by Advisers effective January 1, 1999.
4For the year ended December 31, 1997, Advisers agreed in advance to waive a
portion of its management fees and, if necessary, to pay certain expenses of
the Fund. With this reduction, management fees and total annual expenses,
including management and portfolio administration fees, represented .37% and
.40% of each Portfolio's average net assets, respectively. The voluntary
expense reduction was discontinued by Advisers effective January 1, 1999.
c) The Examples shown on pages 6 and 7 are restated for the Portfolios listed
below:
Examples
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on your money if you surrender your contract at the end of each
time period:
1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
Zero Coupon Fund - 2000 ... $83 $120 $153 $255
Zero Coupon Fund - 2005 ... $83 $121 $154 $257
Zero Coupon Fund - 2010 ... $83 $121 $154 $257
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on your money, if your Contract is not surrendered or is
annuitized:
1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
Zero Coupon Fund - 2000 ... $23 $69 $119 $255
Zero Coupon Fund - 2005 ... $23 $70 $120 $257
Zero Coupon Fund - 2010 ... $23 $70 $120 $257
V. The following replaces the first sentence under "Section 4. Investment
Options":
The Contract offers twenty-five Class 1 shares of the Portfolios of Franklin
Valuemark Funds and a Fixed Option of Preferred Life.
