<PAGE>
ENDEAVOR HIGH YIELD PORTFOLIO
THE ENDEAVOR VARIABLE ANNUITY
AND
THE ENDEAVOR ML VARIABLE ANNUITY
ISSUED BY
PFL LIFE INSURANCE COMPANY
Supplement Dated June 1, 1998
To The
Prospectus Dated May 1, 1998
The Endeavor High Yield Portfolio has been added as an additional investment
option under the Endeavor Variable Annuity and the Endeavor ML Variable
Annuity. This prospectus supplement provides very limited information about
this new investment option. A separate prospectus that accompanies this
supplement provides more complete information about the Endeavor High Yield
Portfolio. The information in this supplement is qualified in its entirety by
the additional information in the prospectus for the Endeavor High Yield
Portfolio and by the information in the prospectuses for the Endeavor Variable
Annuity and the Endeavor ML Variable Annuity.
The Endeavor High Yield Portfolio seeks high current income by investing
primarily in a professionally managed diversified portfolio of fixed income
securities, some of which may involve equity features. Capital growth, if any,
is a consideration incidental to the objective of the Portfolio of high
current income. THERE IS NO ASSURANCE THAT THE PORTFOLIO WILL ACHIEVE ITS
OBJECTIVE. Read the Portfolio's prospectus carefully before investing.
The table on the following page summarizes the charges and deductions that
may be applicable to an investment in the Endeavor High Yield Portfolio
through the Mutual Fund Accounts of the Endeavor Variable Annuity and the
Endeavor ML Variable Annuity. These charges and deductions are explained in
the prospectuses for the Endeavor Variable Annuity and the Endeavor ML
Variable Annuity, and the prospectus for the Endeavor High Yield Portfolio.
This table does not include any premium taxes that may be applicable.
THIS PROSPECTUS SUPPLEMENT MUST BE ACCOMPANIED
BY THE
PROSPECTUS FOR THE ENDEAVOR VARIABLE ANNUITY DATED MAY 1, 1998
OR BY THE
PROSPECTUS FOR THE ENDEAVOR ML VARIABLE ANNUITY DATED MAY 1, 1998
AND BY THE
PROSPECTUS FOR THE ENDEAVOR HIGH YIELD PORTFOLIO DATED MAY 15, 1998
<PAGE>
ANNUITY POLICY FEE TABLE
<TABLE>
<S> <C>
POLICY OWNER TRANSACTION EXPENSES (/1/)
Sales Load On
Purchase Payments 0
Maximum Surrender Charge
(as a % of Premium
Payments
Surrendered) (/1/)(/2/) 7%
Surrender Fees 0
Annual Service Charge (/1/) $ 35 Per Policy
Transfer Fee (/1/) Currently No Fee
MUTUAL FUND ACCOUNT ANNUAL EXPENSES
(AS A PERCENTAGE OF ACCOUNT VALUE)
Mortality and Expense Risk Fees(/3/) 1.25%
Administrative Charge 0.15%
Distribution Financing Charge 0.15%
TOTAL MUTUAL FUND ACCOUNT
ANNUAL EXPENSES 1.55%
</TABLE>
ENDEAVOR HIGH YIELD PORTFOLIO ANNUAL EXPENSES
(as a percentage of average net assets and after expense reimbursements)
<TABLE>
<CAPTION>
MANAGEMENT OTHER RULE 12B-1 TOTAL PORTFOLIO
FEES EXPENSES FEES ANNUAL EXPENSES(/4/)
---------- -------- ---------- --------------------
<S> <C> <C> <C> <C>
ENDEAVOR SERIES TRUST
Endeavor High Yield 0.775% 0.525% -- 1.30%
</TABLE>
- ---------
(/1/) The Surrender Charge and Transfer Fee, if any is imposed, applies to each
Policy, regardless of how the Policy Value is allocated among the Mutual
Fund Account, the Target Account and the Fixed Account. The Service
Charge is $35 per year, but not greater than 2% of the Policy Value. The
Service Charge applies to the Fixed Account, the Mutual Fund Account, and
the Target Account and is assessed on a prorata basis relative to each
Account's Policy Value as a percentage of the Policy's total Policy
Value. The Service Charge is deducted on each Policy Anniversary and at
the time of surrender, if surrender occurs during a Policy year. There is
no fee for the first 12 transfers per year. For additional transfers PFL
may charge a fee of $10 per transfer but currently does not charge for
any transfers.
(/2/) The Surrender Charge is decreased based on the number of years since the
premium payment date in which the withdrawal is made. The charge is a
percentage of the Premium Payment: 7%, 7%, 6%, 6%, 5%, 4% and 2%; for
years one through seven, respectively, after the Premium Payment was
made. If applicable a Surrender Charge will only be applied to
withdrawals that exceed the amount available under certain listed
exceptions.
(/3/) The Mortality and Expense Risk Fees shown (1.25%) are for the 5% Annually
Compounding Death Benefit and the Double Enhanced Death Benefit. The
corresponding fee for the Return of Premium Death Benefit is 1.10% for
each Subaccount.
(/4/) The Endeavor High Yield Portfolio is expected to commence operations on or
about the date of this Supplement. The expenses shown are annualized
estimates of expenses for 1998. The Manager has agreed to limit the
Portfolio's total operating expenses for the first year of operations to
an annual rate of 1.30% of the Portfolio's average daily net assets. The
annualized operating expense ratio before waiver/reimbursement by
Endeavor Investment Advisors for the Endeavor High Yield Portfolio is
estimated to be 1.50%.
<PAGE>
EXPENSE EXAMPLES: ENDEAVOR HIGH YIELD PORTFOLIO
I. An Owner would pay the following expenses on a $1,000 investment, assuming
a 5% Annually Compounding Death Benefit or Double Enhanced Death Benefit, a
hypothetical 5% annual return on assets (a 1.25% Mortality and Expense Risk
Fee), and assuming the entire Policy Value is in the Endeavor High Yield
Subaccount:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
1. If the Policy is surrendered at the end of
theapplicable time period: $99 $144 $198 $318
2. If the Policy is annuitized at the end of
the applicable time period: $29 $90 $153 $318
3. If the Policy is not surrendered or
annuitized: $29 $90 $153 $318
</TABLE>
II. An Owner would pay the following expenses on a $1,000 investment, assuming
Return of Premium Death Benefit, a hypothetical 5% annual return on assets (a
1.10% Mortality and Expense Risk Fee), and assuming the entire Policy Value is
in the Endeavor High Yield Subaccount:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
1. If the Policy is surrendered at the end of
theapplicable time period: $98 $139 $190 $303
2. If the Policy is annuitized at the end of
the applicable time period: $28 $85 $146 $303
3. If the Policy is not surrendered or
annuitized: $28 $85 $146 $303
</TABLE>
The above tables are intended to assist the Owner in understanding the costs
and expenses that will be borne, directly or indirectly. These include the
expenses of the Endeavor High Yield Portfolio. In addition to the expenses
listed above, premium taxes may be applicable.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES, AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THE
ASSUMED 5% ANNUAL RETURN USED IN THESE EXAMPLES IS PURELY HYPOTHETICAL AND
SHOULD NOT BE CONSIDERED A GUARANTEE OF PAST OR FUTURE PERFORMANCE. The
figures and data for the Endeavor High Yield Portfolio annual expenses have
been provided by Endeavor Investment Advisers, and while PFL does not dispute
these figures, PFL has not independently verified their accuracy.
In these examples, the $35 Annual Service Charge is reflected as a charge of
.0547% based on average Policy Value of $64,005. Normally, the $35 Service
Charge would be waived if the Premium Payment(s) less partial withdrawals, or
the Policy Value is at least $50,000. However, it was included in these
examples for illustrative purposes.
