FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C
485BPOS, 1995-04-26
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<PAGE>
 
     
 As filed with the Securities and Exchange Commission on April 26, 1995      

                                                       Registration No. 33-33419
                                                                        811-6130
- --------------------------------------------------------------------------------


                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549
                              ____________________


                                 F O R M   N-4

            REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
                             
                         Post-Effective Amendment No. 7      
                                                     ---
                                     and/or

                  REGISTRATION STATEMENT UNDER THE INVESTMENT
                              COMPANY ACT OF 1940
                                    
                                Amendment No. 9      
                                             ---

                  FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C
                           (Exact Name of Registrant)

                     FIRST INVESTORS LIFE INSURANCE COMPANY
                              (Name of Depositor)

                    95 Wall Street, New York, New York 10005
              (Address of Depositor's Principal Executive Offices)

                                 (212) 858-8200
              (Depositor's Telephone Number, including Area Code)

                         Richard H. Gaebler, President
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                                 95 Wall Street
                           New York, New York  10005
                    (Name and Address of Agent For Service)


Approximate Date of Proposed Public Offering:  As soon as practicable after the
effective date of this Registration Statement.
    
It is proposed that this filing will become effective on May 1, 1994 pursuant to
paragraph (b) of Rule 485.      
   
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
previously elected to register an indefinite number of  securities under the
Securities Act of 1933.  Registrant filed a Rule 24f-2 Notice for its fiscal
year ending December 31, 1994 on February 22, 1994.      
<PAGE>
 
                  FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C

                             CROSS-REFERENCE SHEET

N-4 Item No.                                 Location
- ------------                                 --------

PART A:  PROSPECTUS

 1. Cover Page.............................  Cover Page
 2. Definitions............................  Glossary of Special Terms
 3. Synopsis...............................  Fee Table
 4. Condensed Financial Information........  Condensed Financial Information
 5. General Description of Registrant,
    Depositor, and Portfolio Companies.....  General Description
 6. Deductions and Expenses................  Purchases, Deductions, Charges and
                                             Expenses
 7. General Description of Variable
    Annuity Contracts......................  Variable Annuity Contracts
 8. Annuity Period.........................  Variable Annuity Contracts
 9. Death Benefit..........................  Variable Annuity Contracts
10. Purchases and Contract Value...........  Purchases, Deductions, Charges and
                                             Expenses; Variable Annuity 
                                             Contracts
11. Redemptions............................  Variable Annuity Contracts
12. Taxes..................................  Federal Income Tax Status
13. Legal Proceedings......................  General Description
14. Table of Contents of the Statement
    of Additional Information..............  Table of Contents of the Statement 
                                             of Additional Information

PART B:  STATEMENT OF ADDITIONAL INFORMATION

15. Cover Page.............................  Cover Page
16. Table of Contents......................  Table Of Contents
17. General Information and History........  General Description; Other
                                             Information
18. Services...............................  Services
19. Purchase of Securities Being Offered...  Purchase of Securities
20. Underwriters...........................  Services
21. Calculation of Performance Data........  Performance Information
22. Annuity Payments.......................  Annuity Payments
23. Financial Statements...................  Relevance of Financial Statements;
                                             Financial Statements

PART C:  OTHER INFORMATION

  Information required to be included in Part C is set forth under the
appropriate item so numbered, in Part C hereof.
<PAGE>
 
FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C
INDIVIDUAL VARIABLE ANNUITY CONTRACTS
OFFERED BY
FIRST INVESTORS LIFE INSURANCE COMPANY
95 Wall Street, New York, New York  10005/(212) 858-8200

   This Prospectus describes the Variable Annuity Contracts (the "Contracts")
offered by First Investors Life Insurance Company ("First Investors Life") for
(a) nonqualified retirement programs and deferred compensation plans and (b) the
following retirement plans qualified for special tax treatment under the
Internal Revenue Code of 1986, as amended: (1) individual retirement annuities
and (2) qualified corporate employee pension and profit-sharing plans.  The
Contracts offered are deferred annuity contracts under which annuity payments
will begin on a selected future date.  A PENALTY MAY BE ASSESSED ON EARLY
WITHDRAWALS (SEE "FEDERAL INCOME TAX STATUS").  THE CONTRACTS CONTAIN A 10-DAY
REVOCATION RIGHT (SEE "VARIABLE ANNUITY CONTRACTS-TEN-DAY REVOCATION RIGHT").
The Contracts provide for the accumulation of values on a variable basis.
Payment of annuity benefits will be on a variable basis, unless a fixed basis or
a combination of variable and fixed bases is selected by the Contractowner.
Unless otherwise stated, this Prospectus describes only the variable aspects of
the Contracts.  The Contracts contain information on the fixed aspects.
    
   Contractowners' purchase payments less certain deductions ("net purchase
payments") are paid into a unit investment trust, First Investors Life Variable
Annuity Fund C ("Separate Account C").  A Contractowner elects to have his or
her net purchase payments paid into any one or more of the ten subaccounts of
Separate Account C (the "Subaccounts").  The assets of each Subaccount are
invested at net asset value in shares of the related series (the "Series") of
First Investors Life Series Fund (the "Fund"), an open-end, diversified
management investment company.      
    
   This Prospectus sets forth the information about Separate Account C that a
prospective investor should know before investing and should be kept for future
reference.  A Statement of Additional Information, dated May 1, 1995, has been
filed with the Securities and Exchange Commission and is incorporated herein by
reference in its entirety.  (See page 20 of this Prospectus for the Table of
Contents of the Statement of Additional Information.)  The Statement of
Additional Information is available at no charge upon request to First Investors
Life at the address or telephone number indicated above.      

             THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
                   BY THE SECURITIES AND EXCHANGE COMMISSION
           OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION
         OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
            ADEQUACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE
                        CONTRARY IS A CRIMINAL OFFENSE.

         THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT
                PROSPECTUS OF FIRST INVESTORS LIFE SERIES FUND.
                       
                   The date of this Prospectus is May 1, 1995      
<PAGE>
 
                           GLOSSARY OF SPECIAL TERMS


   ACCUMULATED VALUE - The value of all the Accumulation Units credited to the
Contract.


   ACCUMULATION PERIOD - The period between the date of issue of a Contract and
the Annuity Commencement Date.


   ACCUMULATION UNIT - A unit used to measure the value of a Contractowner's
interest in a Subaccount of Separate Account C prior to the Annuity Commencement
Date.


   ADDITIONAL PAYMENT - A purchase payment made to First Investors Life after
issuance of a deferred annuity.


   ANNUITANT - The person designated to receive or the person who is actually
receiving annuity payments under a Contract.


   ANNUITY COMMENCEMENT DATE - The date on which annuity payments are to
commence.


   ANNUITY UNIT - A unit used to determine the amount of each annuity payment
after the first.


   BENEFICIARY - The person designated to receive any benefits under a Contract
upon the death of the Annuitant in accordance with the terms of the Contract.


   CONTRACT - An individual variable annuity contract offered by this
Prospectus.


   CONTRACTOWNER - The person or entity with legal rights of ownership of the
Contract.


   FIXED ANNUITY - An annuity with annuity payments which remain fixed as to
dollar amount throughout the payment period.


   GENERAL ACCOUNT - All assets of First Investors Life other than those
allocated to Separate Account C (or other segregated investment accounts of
First Investors Life).


   JOINT ANNUITANT - The designated second person under joint and survivor life
annuity.


   SEPARATE ACCOUNT C - The segregated investment account entitled "First
Investors Life Variable Annuity Fund C," established by First Investors Life
pursuant to applicable law and registered as a unit investment trust under the
Investment Company Act of 1940, as amended.


   SINGLE PAYMENT - A one-time purchase payment made to First Investors Life to
purchase an annuity.


   SUBACCOUNT - A segregated investment subaccount under Separate Account C
which corresponds to a Series of the Fund.  The assets of the Subaccount are
invested in shares of the corresponding Series.


   VALUATION DATE - Any date on which the New York Stock Exchange is open for
trading, and at such other times as the Directors of First Investors Life deem
necessary or when there is a sufficient degree of trading in the Subaccounts'
investments which may affect the Subaccounts' net asset value.


   VALUATION PERIOD - The period beginning on the date after any Valuation Date
and ending on the next Valuation Date.


   VARIABLE ANNUITY - An annuity with annuity payments varying in amount in
accordance with the net investment experience of the Subaccounts.

                                       2
<PAGE>
 
                                   FEE TABLE


   The following table has been prepared to assist the investor in understanding
the various costs and expenses a Contractowner will directly or indirectly bear.
The table reflects expenses of Separate Account C as well as the Fund.  The Fee
Table has been amended to reflect Fund expenses expected to be incurred in 1995.


CONTRACTOWNER TRANSACTION EXPENSES

Sales Load Imposed on Purchases (as a percentage of purchase payments)... 7.00%


SEPARATE ACCOUNT ANNUAL EXPENSES
(as a percentage of average account value)

Mortality and Expense Risk Fees............................ 1.00%

Total Separate Account Annual Expenses................................... 1.00%

<TABLE>    
<CAPTION>
FUND ANNUAL EXPENSES
(as a percentage of Series average net assets)
                                                                              TOTAL FUND
                                                  MANAGEMENT      OTHER       OPERATING
                                                   FEES(1)       EXPENSES(2)  EXPENSES(3)
                                                  ----------     --------     ----------
<S>                                               <C>            <C>          <C>
Blue Chip Series................................     0.75%         0.13%         0.88%
Cash Management Series..........................     0.35+/*/      0.20+         0.55+
Discovery Series................................     0.75          0.13          0.88
Government Series...............................     0.75          0.15          0.90
Growth Series...................................     0.75          0.15          0.90
High Yield Series...............................     0.75          0.13          0.88
International Securities Series.................     0.75          0.20+         0.95+
Investment Grade Series.........................     0.75          0.17          0.92
Target Maturity Series..........................     0.75          0.20+         0.95+
Utilities Income Series.........................     0.75          0.20          0.95
</TABLE>     

+ Net of waiver and/or reimbursement
    
(1) Management Fees have been restated for CASH MANAGEMENT SERIES, GOVERNMENT
    SERIES, INVESTMENT GRADE SERIES and UTILITIES INCOME SERIES.  Otherwise, the
    maximum Management Fees that may be incurred by those Series for the fiscal
    year ending December 31, 1995 would be 0.75%.  The Adviser will waive 0.40%
    in Management Fees for CASH MANAGEMENT SERIES for a minimum period ending
    December 31, 1995.      
    
(2) Because of its limited operating history, Other Expenses have been estimated
    for TARGET MATURITY SERIES.  The Adviser will reimburse Other Expenses for
    the TARGET MATURITY SERIES in excess of 0.20% for a minimum period ending
    December 31, 1995.  If not reimbursed, Other Expenses for the TARGET
    MATURITY SERIES would be approximately 0.25%.  Other Expenses have been
    restated for the CASH MANAGEMENT SERIES and the INTERNATIONAL SECURITIES
    SERIES.  If not, Other Expenses would have been 0.29% for the CASH
    MANAGEMENT SERIES and 0.28% for INTERNATIONAL SECURITIES SERIES.      
    
(3) If certain Management Fees or Other Expenses were not waived or reimbursed,
    Total Fund Operating Expenses would be 1.04% for CASH MANAGEMENT SERIES,
    1.03% for INTERNATIONAL SECURITIES SERIES and approximately 1.00% for TARGET
    MATURITY SERIES.      

                                       3
<PAGE>
 
    
  For more complete descriptions of the various costs and expenses shown, please
refer to "Purchases, Deductions, Charges and Expenses."  An administrative
charge may be deducted if the Accumulated Value of a Deferred Annuity Contract
is less than $1,500 (see "Administrative Charge").  In addition, premium taxes
may be applicable (see "Other Charges").      
    
EXAMPLE      
    
If you surrender your Contract at the end of the applicable time period:      
     
 You would pay the following expenses on a $1,000 investment, assuming 5% annual
 return on assets:      

<TABLE>    
<CAPTION>
                                   1 YEAR  3 YEARS  5 YEARS  10 YEARS
                                   ------  -------  -------  --------
<S>                                <C>     <C>      <C>      <C>
Blue Chip Series.................    $88     $125     $164      $275
Cash Management Series...........     85      116      149       242
Discovery Series.................     88      125      164       275
Government Series................     88      126      165       277
Growth Series....................     88      126      165       277
High Yield Series................     88      125      164       275
International Securities Series..     88      127      168       282
Investment Grade Series..........     88      120      166       279
Target Maturity Series...........     88      127      N/A       N/A
Utilities Income Series..........     88      127      168       282
</TABLE>     

          THE EXPENSES IN THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION
OF PAST OR FUTURE EXPENSES.  ACTUAL EXPENSES IN FUTURE YEARS MAY BE GREATER OR
LESS THAN THOSE SHOWN.


                        CONDENSED FINANCIAL INFORMATION

ACCUMULATION UNIT VALUES

   The following shows the accumulation unit values and the number of
accumulation units outstanding for each Subaccount of Separate Account C as of
the dates indicated from the dates when the accumulation unit value for each
Subaccount was initially set at $10.00*:

<TABLE>    
<CAPTION>
                                                                         NUMBER OF
                                                          ACCUMULATION  ACCUMULATION
             SUBACCOUNT                      AS OF         UNIT VALUE      UNITS
- -------------------------------------  -----------------  ------------  ------------
<S>                                    <C>                <C>           <C>
Blue Chip Subaccount.................  December 31, 1990   10.74931759     144,049.8
                                       December 31, 1991   13.42731580     561,758.4
                                       December 31, 1992   14.18287684   1,085,254.0
                                       December 31, 1993   15.23373431   1,529,348.1
                                       December 31, 1994   14.86290782   1,959,841.2
 
Cash Management Subaccount...........  December 31, 1990   10.07542807     571,856.9
                                       December 31, 1991   10.52748985     571,891.0
                                       December 31, 1992   10.73770189     437,185.0
                                       December 31, 1993   10.91847727     253,743.1
                                       December 31, 1994   11.21833852     235,919.5
</TABLE>      

                                       4
<PAGE>
 
<TABLE>     
<S>                                    <C>                <C>           <C>
Discovery Subaccount.................  December 31, 1990   10.91349031       8,362.1
                                       December 31, 1991   16.53848277     130,585.7
                                       December 31, 1992   18.93150000     307,107.8
                                       December 31, 1993   22.89932001     563,070.0
                                       December 31, 1994   22.07727850     867,303.8
 
Government Subaccount................  December 31, 1992   10.87670909     437,095.3
                                       December 31, 1993   11.44920392     674,512.1
                                       December 31, 1994   10.85941183     672,797.1
 
Growth Subaccount....................  December 31, 1990   10.75804081      24,176.8
                                       December 31, 1991   14.34498476     204,821.5
                                       December 31, 1992   15.59155937     567,241.7
                                       December 31, 1993   16.35977780     958,529.1
                                       December 31, 1994   15.73131059   1,347,003.7
 
High Yield Subaccount................  December 31, 1990   10.00101048      69,585.9
                                       December 31, 1991   13.25243640     220,366.3
                                       December 31, 1992   14.86894995     279,777.4
                                       December 31, 1993   17.38280181     391,036.8
                                       December 31, 1994   16.93482626     513,297.7
 
International Securities Subaccount..  December 31, 1990   10.26630533     118,091.2
                                       December 31, 1991   11.73276972     269,273.6
                                       December 31, 1992   11.46589494     463,523.6
                                       December 31, 1993   13.86795475     792,294.1
                                       December 31, 1994   13.55233761   1,383,676.5
 
Investment Grade Subaccount..........  December 31, 1992   10.77845214     395,839.5
                                       December 31, 1993   11.82065978     784,651.0
                                       December 31, 1994   11.28602521     923,445.3
 
Utilities Income Subaccount..........  December 31, 1993    9.92774964      45,091.7
                                       December 31, 1994    9.11659215     473,447.1
</TABLE>     

* The accumulation unit value for each Subaccount, other than the Government
 Subaccount, Investment Grade Subaccount and Utilities Income Subaccount, was
 set on October 16, 1990.  The accumulation unit value for the Government
 Subaccount and Investment Grade Subaccount was set on January 7, 1992.  The
 accumulation unit value for Utilities Income Subaccount was set on November 16,
 1993.


                              GENERAL DESCRIPTION
    
  FIRST INVESTORS LIFE INSURANCE COMPANY.  First Investors Life Insurance
Company, 95 Wall Street, New York, New York  10005 ("First Investors Life"), a
stock life insurance company incorporated under the laws of the State of New
York in 1962, writes life insurance, annuities and accident and health
insurance.  First Investors Consolidated Corporation ("FICC") owns all of the
voting common stock of First Investors Management Company, Inc. ("FIMCO" or
"Adviser") and all of the outstanding stock of First Investors Corporation
("FIC" or "Underwriter") and the Transfer Agent.  Mr. Glenn O. Head (and members
of his family) and Mrs. Julie W. Grayson (as executrix of      

                                       5
<PAGE>
 
    
the estate of her deceased husband, David D. Grayson) are controlling persons of
FICC and, therefore, jointly control the Adviser.     

    
  SEPARATE ACCOUNT C.  First Investors Life Variable Annuity Fund C, also known
by its proprietary name, the "Tax Tamer"  ("Separate Account C"), was
established on December 21, 1989 under the provisions of the New York Insurance
Law.  The assets of Separate Account C are held separately from the assets of
First Investors Life and are not chargeable with liabilities arising out of any
other business of First Investors Life.  Separate Account C is registered as a
unit investment trust under the Investment Company Act of 1940, as amended
("1940 Act"), but such registration does not involve any supervision of the
management or investment practices or policies of Separate Account C.      

  The assets of each Subaccount of Separate Account C are invested at net asset
value in shares of the corresponding series (the "Series") of First Investors
Life Series Fund (the "Fund").  For example, the Blue Chip Subaccount invests in
the Blue Chip Series, the Government Subaccount invests in the Government
Series, and so on.  The Fund's Prospectus describes the risks attendant to an
investment in each Series of the Fund.

  Income, gains and losses, whether or not realized, from assets allocated to
the Subaccounts of Separate Account C are, in accordance with the applicable
Contracts, credited to or charged against the Subaccounts of Separate Account C
without regard to other income, gains or losses of First Investors Life.  The
obligations under the Contracts are obligations of First Investors Life.

  Any and all distributions received from a Series will be paid in shares of the
distributing Series or if in cash, will be reinvested in shares of that Series
at net asset value for the corresponding Subaccount.  Accordingly, no cash
distributions will be made to Contractowners.  Deductions and redemptions from
any Subaccount of Separate Account C may be effected by redeeming the number of
applicable Series shares, at net asset value, necessary to satisfy the amount to
be deducted or redeemed.  Shares of the Series in the Subaccounts will be valued
at their net asset values.

  Separate Account C is divided into the following Subaccounts, each of which
corresponds to the following Series of the Fund:

<TABLE>     
<CAPTION> 
SEPARATE ACCOUNT C SUBACCOUNT           FUND SERIES
- -----------------------------           -----------
<S>                                     <C> 
Blue Chip Subaccount                    Blue Chip Series
Cash Management Subaccount              Cash Management Series
Discovery Subaccount                    Discovery Series
Government Subaccount                   Government Series
Growth Subaccount                       Growth Series
High Yield Subaccount                   High Yield Series
International Securities Subaccount     International Securities Series
Investment Grade Subaccount             Investment Grade Series
Target Maturity 2007 Subaccount         Target Maturity 2007 Series
Utilities Income Subaccount             Utilities Income Series
</TABLE>     
 
  Each Contractowner designates the Subaccount in which his or her purchase
payment (less deductions) will be invested.  That Subaccount in turn invests in
the corresponding Series of the Fund as set forth above.

                                       6
<PAGE>
 
  First Investors Life reserves the right to invest the assets of Separate
Account C in the shares of other investment companies or any other investment
permitted by law.  Such substitution would be made in accordance with the
provisions of the 1940 Act.

  YOUR CHOICE OF INVESTMENT OBJECTIVE.  When you purchase a Contract you decide
to place your purchase payment (less deductions) and any additional purchase
payments (less deductions) into at least one but not more than five of the
Subaccounts of Separate Account C, provided the allocation to any one Subaccount
is not less than 10% of the purchase payment (less deductions).  Each Subaccount
corresponds to a Series of the Fund.  The investment objectives of each Series
of the Fund is set forth below.  There is no assurance that the investment
objective of any Series of the Fund will be realized.  Because each Series of
the Fund is intended to serve a different investment objective, each is subject
to varying degrees of financial and market risks.  Twice during any Contract
year, you may transfer part or all of your cash value from the Subaccounts you
are in to other Subaccounts provided the cash value is not allocated to more
than five of the Subaccounts, and provided the allocation to any one Subaccount
is not less than 10% of the cash value of the Contract.  The cash value of the
Contract may increase or decrease depending on the investment performance of the
Subaccounts selected.

  THE FUND.  First Investors Life Series Fund is a diversified open-end
management investment company registered under the 1940 Act.  The Fund consists
of nine separate Series.  The shares of the Series are not sold directly to the
general public but are available only through the purchase of an annuity
contract or a variable life insurance policy issued by First Investors Life.

  The investment objectives of each Series of the Fund are as follows:

  BLUE CHIP SERIES.  The investment objective of Blue Chip Series is to seek
high total investment return consistent with the preservation of capital.  This
goal will be sought by investing, under normal market conditions, primarily in
equity securities of larger, well-capitalized companies with high potential
earnings growth that have shown a history of dividend payments, commonly known
as "Blue Chip" companies.

  CASH MANAGEMENT SERIES.  The objective of Cash Management Series is to seek to
earn a high rate of current income consistent with the preservation of capital
and maintenance of liquidity.  The Cash Management Series will invest in money
market obligations, including high quality securities issued or guaranteed by
the U.S. Government or its agencies and instrumentalities, bank obligations and
high grade corporate instruments.  An investment in the Series is neither
insured nor guaranteed by the U.S. Government.  There can be no assurance that
the Series will be able to maintain a stable net asset value of $1.00 per share.

  DISCOVERY SERIES.  The investment objective of Discovery Series is to seek
long-term capital appreciation, without regard to dividend or interest income,
through investment in the common stock of companies with small to medium market
capitalization that the Adviser considers to be undervalued or less well known
in the current marketplace and to have the potential for capital growth.

  GOVERNMENT SERIES.  The investment objective of Government Series is to seek
to achieve a significant level of current income which is consistent with
security and liquidity of principal by investing, under normal market
conditions, primarily in obligations issued or guaranteed as to 

                                       7
<PAGE>
 
principal and interest by the U.S. Government, its agencies or
instrumentalities, including mortgage-related securities.

  GROWTH SERIES.  The investment objective of Growth Series is to seek long-term
capital appreciation.  This goal will be sought by investing, under normal
market conditions, primarily in common stocks of companies and industries
selected for their growth potential.

  HIGH YIELD SERIES.  The primary objective of the High Yield Series is to seek
to earn a high level of current income.  Consistent with that objective, the
Series will also seek growth of capital as a secondary objective.  The High
Yield Series seeks to attain its objectives primarily through investments in
lower-grade, high-yielding, high risk debt securities.  Investments in high
yield, high risk securities, commonly referred to as "junk bonds," may entail
risks that are different or more pronounced than those involved in higher-rated
securities.  See "High Yield Securities-Risk Factors" in the Fund's Prospectus.

  INTERNATIONAL SECURITIES SERIES.  The primary objective of International
Securities Series is to seek long-term capital growth.  As a secondary
objective, the Series seeks to earn a reasonable level of current income.  These
objectives are sought, under normal market conditions, through investment in
common stocks, rights and warrants, preferred stocks, bonds and other debt
obligations issued by companies or governments of any nation, subject to certain
restrictions with respect to concentration and diversification.

  INVESTMENT GRADE SERIES.  The investment objective of the Investment Grade
Series is to seek a maximum level of income consistent with investment in
investment grade debt securities.
    
  TARGET MATURITY 2007 SERIES.  The investment objective of the Target Maturity
Series is to seek a predictable compounded investment return for investors who
hold their Series' shares until the Series' maturity, consistent with the
preservation of capital.  The Series will seek its objective by investing, under
normal market conditions, in zero coupon securities which are issued by the U.S.
Government, its agencies or instrumentalities or created by third parties using
securities issued by the U.S. Government, its agencies or instrumentalities. 
    
  UTILITIES INCOME SERIES.  The primary objective of the Utilities Income Series
is to seek high current income.  Long-term capital appreciation is a secondary
objective.  These objectives are sought, under normal market conditions, through
investment in equity and debt securities issued by companies primarily engaged
in the public utilities industry.

  For more complete information about the Fund and each of the Series, including
management fees and other expenses, see the Fund's Prospectus, which is attached
to this Prospectus.  It is important to read the Prospectus carefully before you
decide to invest.  No offer will be made of a variable annuity contract funded
by the underlying mutual fund unless a current Fund Prospectus has been
delivered.

  ADVISER.  First Investors Management Company, Inc., an affiliate of First
Investors Life, supervises and manages each Series' investments, supervises all
aspects of each Series operations and, except for INTERNATIONAL SECURITIES
SERIES and GROWTH SERIES, determines each Series' portfolio transactions.  The
Adviser is a New York corporation located at 95 Wall Street, New York, NY
10005.

                                       8
<PAGE>
 
  SUBADVISER.  Wellington Management Company has been retained by the Adviser
and the Fund, on behalf of INTERNATIONAL SECURITIES SERIES and GROWTH SERIES, as
each of those Series' investment subadviser.  The Adviser has delegated
discretionary trading authority to WMC with respect to all the assets of
INTERNATIONAL SECURITIES SERIES and GROWTH SERIES, subject to the continuing
oversight and supervision of the Adviser and the Board of Trustees.  As
compensation for its services, WMC is paid by the Adviser, and not by either
Series, a fee which is computed daily and paid monthly.
    
  WMC, located at 75 State Street, Boston, MA 02109, is a Massachusetts general
partnership of which Robert W. Doran, Duncan M. McFarland and John B. Neff are
Managing Partners.  WMC is a professional investment counseling firm which
provides investment services to investment companies, employee benefit plans,
endowment funds, foundations and other institutions and individuals.  As of
December 31, 1994, WMC held discretionary investment authority with respect to
approximately $80.0 billion of assets.  Of that amount, WMC acted as investment
adviser or subadviser to approximately 110 registered investment companies or
series of such companies, with net assets of approximately $58.3 billion as of
December 31, 1994.  WMC is not affiliated with the Adviser or any of its
affiliates.      

  UNDERWRITER.  First Investors Life and Separate Account C have entered into an
Underwriting Agreement with First Investors Corporation.  FIC, 95 Wall Street,
New York, New York  10005, is an affiliate of First Investors Life and of the
Adviser.  First Investors Life has reserved the right in the Underwriting
Agreement to sell the Contracts directly.  The Contracts are sold by insurance
agents licensed to sell variable annuities, who are registered representatives
of the Underwriter or broker-dealers who have sales agreements with the
Underwriter.

  VOTING RIGHTS.  In accordance with its view of present applicable law, First
Investors Life will vote the Series shares held in the Subaccounts at any
Special Meeting of Shareholders of the Fund in accordance with instructions
received from persons having the voting interest in the Subaccount.  However, if
the 1940 Act or any regulation thereunder should be amended or if the present
interpretation thereof should change, and as a result First Investors Life
determines that it is permitted to vote the Series shares in its own right, it
may elect to do so.  The person having the voting interest shall be the
Contractowner.

  Prior to the Annuity Commencement Date, the number of shares of each Series
held in the corresponding Subaccount which is attributable to each Contractowner
is determined by dividing the Subaccount Accumulated Value by the net asset
value of one share of the corresponding Series.  After the Annuity Commencement
Date, the number of Series shares held in the corresponding Subaccount which is
attributable to each Contract is determined by dividing the reserve held in such
Subaccount for the variable annuity payment under such Contract by the net asset
value of one share of the corresponding Series.  As this reserve fluctuates, the
number of votes fluctuates.  The number of votes which a person has the right to
cast will be determined as of the record date established by the Fund.  Voting
instructions will be solicited by written communication prior to the date of the
meeting at which votes are to be cast.  Shares of the Series held in the
Subaccounts as to which no timely instructions are received or are not otherwise
attributable to Contractowners will be voted by First Investors Life in
proportion to the voting instructions which are received with respect to all
Contracts participating in such Subaccount.  Each person having a voting
interest in Separate Account C will be sent reports and other materials relating
to the Fund.

                                       9
<PAGE>
 
                  PURCHASES, DEDUCTIONS, CHARGES AND EXPENSES

  PURCHASE PAYMENTS.  Investors in Separate Account C will be purchasing
Accumulation Units of a particular Subaccount only and not shares of the Series
in which the Subaccount invests.

  The minimum purchase payment is $2,000 for a Deferred Variable Annuity
Contract.  Additional Payments under a Deferred Variable Annuity Contract in the
minimum amount of $200 may be made at any time after the issuance of the
Contract.

  Purchase payments will be credited to a Contractowner's Account on the date of
receipt by First Investors Life of a completed application.  In the event First
Investors Life receives an incomplete application, all required information
shall be provided not later than five business days following the receipt of
such application or the purchase payment will be returned to the applicant at
the end of such five-day period.  Purchase payments, after deductions for sales
expenses and any applicable premium taxes (see "Deductions from Purchase
Payments"), will be allocated to the appropriate Subaccount or Subaccounts.

  DEDUCTIONS FROM PURCHASE PAYMENTS.  First Investors Life or FIC, as the
Underwriter, makes deductions, in accordance with the Deduction Table below,
from the purchase payment for expenses in connection with sales functions
relative to the Contracts.  Reductions in sales charges are applicable to the
total amount of the purchase payment.  In addition, any Additional Payment made
after the issuance of a Deferred Annuity Contract is subject to the sales charge
applicable to the total amount of all purchase payments previously made plus the
amount of the Additional Payment being made.  The sales charge is intended to
cover expenses relating to the sale of the Contracts, including commissions paid
to persons distributing the Contracts and costs of preparation of sales
literature.

                                DEDUCTION TABLE

<TABLE>
<CAPTION>
                                  SALES CHARGE AS % OF                 
                                ------------------------   CONCESSION TO
                                  OFFERING   NET AMOUNT   DEALERS AS % OF
     AMOUNT OF INVESTMENT           PRICE     INVESTED     OFFERING PRICE
- -------------------------------  ----------  -----------  ----------------
<S>                              <C>         <C>          <C>
Less than $25,000..............     7.00%        7.53%         5.75%
$25,000 but under $50,000......     6.25         6.67          5.17
$50,000 but under $100,000.....     4.75         4.99          3.93
$100,000 but under $250,000....     3.50         3.63          2.90
$250,000 but under $500,000....     2.50         2.56          2.19
$500,000 but under $1,000,000..     2.00         2.04          1.67
$1,000,000 or over.............     1.50         1.52          1.24
- ---------------------
</TABLE>
*   Assumes that no premium taxes have been deducted.

  Contracts may be purchased without sales charge by officers and full-time
employees of First Investors Life or its affiliates, who have been employed for
at least one year, and its agents who have been under contract for at least one
year.

  EXCHANGE PRIVILEGE.  Contractowners of First Investors Life Variable Annuity
Fund A ("Separate Account A") may exchange their Separate Account A Contracts
for Separate Account C Contracts.  The Accumulated Value of the Separate Account
A Contract will be invested at net asset value in one or more Subaccounts of
Separate Account C.  Although there is no charge for this exchange,

                                       10
<PAGE>
 
Contractowners will be required to execute a change of contract form which, in
part, states that First Investors Life deducts a daily charge equal to an annual
rate of 1.00% of the daily net asset value of the Subaccounts as a charge for
mortality and expense risk.  This exchange privilege may be modified or
terminated at any time by First Investors Life.

  MORTALITY AND EXPENSE RISK CHARGES.  Although the amount of each variable
annuity payment made to an Annuitant will vary in accordance with the investment
performance of the Subaccounts, the amount will not be affected by the mortality
experience (death rate) of persons receiving such payments or of the general
population.  First Investors Life assumes this "mortality risk" by virtue of
annuity rates incorporated in the Contracts which cannot be changed.

  The mortality risk assumed by First Investors Life arises from its obligation
to continue to make fixed or variable annuity payments, determined in accordance
with the annuity tables and other provisions of the Contracts, to each Annuitant
regardless of how long that person lives and regardless of how long all payees
as a group live.  This assures an Annuitant that neither the Annuitant's own
longevity nor an improvement in life expectancy generally will have any adverse
effect on the variable annuity payments the Annuitant will receive under the
Contract, and relieves the Annuitant of the risk that the Annuitant will outlive
the funds that the Annuitant has accumulated for retirement.

  In addition, First Investors Life assumes the risk that the charges for sales
expenses may not be adequate to cover such expenses and assures that it will not
increase the amount charged for sales expenses.  In consideration for its
assumption of these mortality and expense risks, First Investors Life deducts an
amount equal on an annual basis to 1.00% of the daily net asset value of the
Subaccounts.  Of such charge, approximately 0.6% is for assuming the mortality
risk and 0.4% is for assuming the expense risk.

  If the charge is insufficient to cover the actual cost of the mortality and
expense risks, the loss will fall on First Investors Life; conversely, if the
deduction proves more than sufficient, the excess will be a profit to First
Investors Life.  Any profits resulting to First Investors Life for over-
estimates of the actual costs of the mortality and expense risks can be used by
First Investors Life for any business purpose and will not remain in Separate
Account C.

  ADMINISTRATIVE CHARGE.  An administrative charge of $7.50 may be deducted
annually by First Investors Life from the Accumulated Value of Deferred Annuity
Contracts which have an Accumulated Value of less than $1,500 due to partial
surrenders.  These charges against Annuitant accounts are for the purpose of
compensating First Investors Life for expenses involved in administering small
dormant accounts.  If the actual expenses exceed charges, First Investors Life
will bear the loss.

  OTHER CHARGES.  Some states assess premium taxes which presently range from 0%
to 2.35% at the time Purchase Payments are made; others assess premium taxes at
the time of surrender or when annuity payments begin.  First Investors Life
currently advances any premium taxes due at the time Purchase Payments are made
and then deducts premium taxes from the Accumulated Value of the contract at the
time of surrender, upon death of the annuitant or when annuity payments begin.
First Investors Life, however, reserves the right to deduct premium taxes when
incurred.  See Appendix I for premium tax table.

                                       11
<PAGE>
 
    
  EXPENSES.  The total expenses of Separate Account C for the fiscal year ended
December 31, 1994 amounted to $1,077,119 or 1.02% of its average net assets.
There are deductions from and expenses paid out of the assets of the Series that
are described in the Fund's Prospectus.      

                           VARIABLE ANNUITY CONTRACTS

  This Prospectus offers Individual Deferred Variable Annuity Contracts under
which annuity payments will begin on a selected future date.  The Individual
Variable Annuity Contracts offered by this Prospectus are designed to provide
lifetime annuity payments to Annuitants in accordance with the plan adopted by
the Contractowner.  The amount of annuity payments will vary with the investment
performance of the Subaccounts.  The Contracts obligate First Investors Life to
make payments for the lifetime of the Annuitant in accordance with the annuity
rates contained in the Contract, regardless of actual mortality experience (see
"Annuity Period").  Upon the death of the Annuitant under a Contract before the
Annuity Commencement Date, First Investors Life will pay a death benefit to the
beneficiary designated by the Annuitant.  For a discussion of the amount and
manner of payment of this benefit, see "Death Benefit During the Accumulation
Period."

  All or a portion of the Accumulated Value may be withdrawn during the
Accumulation Period.  For a discussion on withdrawals during the Accumulation
Period, see "Surrender and Termination (Redemption) During the Accumulation
Period."  For Federal income tax consequences of a withdrawal, see "Federal
Income Tax Status."  The exercise of contract rights herein described, including
the right to make a withdrawal during the Accumulation Period, will be subject
to the terms and conditions of any qualified trust or plan under which the
Contracts are purchased.  This Prospectus contains no information concerning
such trust or plans.

  First Investors Life reserves the right to amend the Contracts to meet the
requirements of the 1940 Act or other applicable Federal or state laws or
regulations.

  Contractowners with any inquiries concerning their account should write to
First Investors Life Insurance Company at its Executive office, 95 Wall Street,
New York, New York  10005.

DEFERRED VARIABLE ANNUITIES-ACCUMULATION PERIOD

  CREDITING ACCUMULATION UNITS.  During the Accumulation Period, net purchase
payments on Deferred Annuity Contracts, after deductions for sales expenses and
any premium taxes, where applicable (see "Deductions from Purchase Payments"),
are credited to the Contractowner's Account in the form of Accumulation Units.
The number of Accumulation Units credited to a Contractowner for the Subaccounts
is determined by dividing the net purchase payment by the value of an
Accumulation Unit for the Subaccount for the Valuation Period during which the
purchase payment is received at the Executive Office of First Investors Life or
other designated office.  The value of the Contractowner's Individual Account
varies with the value of the assets of the Subaccounts.  There is no assurance
that the value of a Contractowner's Individual Account will equal or exceed
purchase payments.  The value of a Contractowner's Individual Account for a
Valuation Period can be determined by multiplying the total number of
Accumulation Units credited to the account for the Subaccount by the value of an
Accumulation Unit for the Subaccount for the Valuation Period.

                                       12
<PAGE>
 
ANNUITY PERIOD

  COMMENCEMENT DATE.  Annuity payments will begin on the Annuity Commencement
Date selected by the Contractowner.  Not later than 30 days prior to the Annuity
Commencement Date, the Contractowner may elect in writing to advance or defer
the Annuity Commencement Date.  The Annuity Commencement Date may not be
deferred beyond the first day of the calendar month following the Annuitant's
85th birthday.  If no other date is elected, annuity payments will commence on
the first day of the calendar month following the Annuitant's 85th birthday.

  If the Net Accumulated Value on the Annuity Commencement Date is less than
$2,000, First Investors Life may pay such value in one sum in lieu of annuity
payments.  If the Net Accumulated Value is not less than $2,000 but the variable
annuity payments provided for would be or become less than $20, First Investors
Life may change the frequency of annuity payments to such intervals as will
result in payments of at least $20.

  ASSUMED INVESTMENT RATE.  A 3.5% assumed investment rate is built into the
Annuity Tables in the Contract.  This is based on First Investors Life's opinion
that it is the average result to be expected from a diversified portfolio of
common stocks during a relatively stable economy.  A higher assumption would
mean a higher initial payment but more slowly rising and more rapidly falling
subsequent variable annuity payments.  A lower assumption would have the
opposite effect.  If the actual net investment rate of the respective Subaccount
is at the annual rate of 3.5%, the variable annuity payments will be level.

  ANNUITY OPTIONS.  The Contractowner may, at any time at least 30 days prior to
the Annuity Commencement Date upon written notice to First Investors Life at its
Executive Office or other designated office, elect to have payments made under
any one of the Annuity Options provided in the Contract.  If no election is in
effect on the Annuity Commencement Date, annuity payments will be made on a
variable basis only under Annuity Option 3 below, Life Annuity with 120 Monthly
Payments Guaranteed, which is the Basic Annuity.

  On the Annuity Commencement Date, First Investors Life shall apply the
Accumulated Value, reduced by any applicable premium taxes not previously
deducted, to provide the Basic Annuity or, if an Annuity Option has been
elected, to provide one of the Annuity Options described below.

  The Contracts provide for the six Annuity Options described below:

  Option 1 - LIFE ANNUITY - An annuity payable monthly during the lifetime of
the Annuitant, ceasing with the last payment due prior to the death of the
Annuitant.  If this Option is elected, annuity payments terminate automatically
and immediately on the death of the Annuitant without regard to the number or
total amount of payments received.

  Option 2a - JOINT AND SURVIVOR LIFE ANNUITY - An annuity payable monthly
during the joint lifetime of the Annuitant and the Joint Annuitant and
continuing thereafter during the lifetime of the survivor, ceasing with the last
payment due prior to the death of the survivor.

  Option 2b - JOINT AND TWO-THIRDS TO SURVIVOR LIFE ANNUITY - An annuity payable
monthly during the 

                                       13
<PAGE>
 
lifetime of the Annuitant and the Joint Annuitant and continuing thereafter
during the lifetime of the survivor at an amount equal to two-thirds of the
joint annuity payment, ceasing with the first payment due prior to the death of
the survivor.

  Option 2c - JOINT AND ONE-HALF TO SURVIVOR LIFE ANNUITY - An annuity payable
monthly during the joint lifetime of the Annuitant and the Joint Annuitant and
continuing thereafter during the lifetime of the survivor at an amount equal to
one-half of the joint annuity payment, ceasing with the last payment due prior
to the death of the survivor.

  Under Annuity Options 2a, 2b and 2c, annuity payments terminate automatically
and immediately on the deaths of both the Annuitant and the Joint Annuitant
without regard to the number or total amount of payments received.

  Option 3 - LIFE ANNUITY WITH 60, 120 OR 240 MONTHLY PAYMENTS GUARANTEED - An
annuity payable monthly during the lifetime of the Annuitant with the guarantee
that if, upon the death of the Annuitant, payments have been made for less than
60, 120 or 240 monthly periods, as elected, payments will be made as follows:

   1.  Any guaranteed annuity payments will be continued during the remainder of
 the selected period to the Beneficiary.  The Beneficiary may, at any time,
 elect to have the present value of the guaranteed number of annuity payments
 computed in the manner specified in (2) below, paid in a lump sum.

   2.  If a Beneficiary receiving annuity payments under this Option dies after
 the death of the Annuitant, the present value, computed as of the Valuation
 Period in which notice of death of the Beneficiary is received by First
 Investors Life at its Executive Office or other designated office, of the
 guaranteed number of annuity payments remaining after receipt of such notice
 and to which such deceased Beneficiary would have been entitled had the
 Beneficiary not died, computed at the effective annual interest rate, assumed
 in determining the Annuity Tables, shall be paid in a lump sum in accordance
 with the Contract.

  Option 4 - UNIT REFUND LIFE ANNUITY - An annuity payable monthly during the
lifetime of the Annuitant, terminating with the last payment due prior to the
death of the Annuitant.  An additional annuity payment will be made to the
Beneficiary equal to the Annuity Unit Value of the Subaccount or Subaccounts as
of the date that notice of death in writing is received by First Investors Life
at its Executive Office or other designated office, multiplied by the excess, if
any, of (a) over (b) where (a) is the Net Accumulated Value allocated to each
Subaccount and applied under the option at the Annuity Commencement Date,
divided by the corresponding Annuity Unit Value as of the Annuity Commencement
Date, and (b) is the product of the number of Annuity Units applicable under the
Subaccount represented by each annuity payment and the number of annuity
payments made.  (For an illustration of this calculation, see Appendix II,
Example A, in the Statement of Additional Information.)

  ALLOCATION OF ANNUITY.  The Contractowner may elect to have the Net
Accumulated Value applied at the Annuity Commencement Date to provide a Fixed
Annuity, a Variable Annuity, or any combination thereof.  After the Annuity
Commencement Date, no transfers or redemptions are allowed.  Such elections must
be made in writing to First Investors Life at its Executive Office or other
designated office, at least 30 days prior to the Annuity Commencement Date.  In
the absence 

                                       14
<PAGE>
 
of an election, annuity payments will be made on a variable basis only under
Annuity Option 3 above, Life Annuity with 120 monthly payments guaranteed, which
is the Basic Annuity.

DEATH BENEFIT DURING THE ACCUMULATION PERIOD

  If the Annuitant dies prior to the Annuity Commencement Date, First Investors
Life will pay a Death Benefit to the Beneficiary designated by the Contractowner
upon receipt of a death certificate or similar proof of the death of the
Annuitant.  The value of the Death Benefit will be determined as of the
Valuation Date on or next following the date on which written notice of death is
received by First Investors Life at its Executive Office or other designated
office.

  If payment of the Death Benefit under one of the Annuity Options was not
elected by the Contractowner prior to the Annuitant's death, the Beneficiary may
elect to have the Death Benefit paid in a single sum or applied to provide an
annuity under one of the Annuity Options or as otherwise permitted by First
Investors Life.  If a single sum settlement is requested, the proceeds will be
paid within seven days of receipt of such election and due proof of death.  If
an Annuity Option is desired, election may be made by the Beneficiary during a
ninety-day period commencing with the date of receipt of notification of death.
If such an election is not made, a single sum settlement will be made to the
Beneficiary at the end of such ninety-day period.  If any Annuity Option is
elected, the Annuity Commencement Date shall be the date specified in the
election but no later than ninety days after receipt by First Investors Life of
notification of death.

  The amount of the Death Benefit will be the greater of (1) the gross purchase
payments (prior to any deductions or charges) made under an Individual Contract
less any amount of purchase payments surrendered, or (2) the Accumulated Value.

SURRENDER AND TERMINATION (REDEMPTION) DURING THE ACCUMULATION PERIOD

  A Contractowner may elect, at any time before the earlier of the Annuity
Commencement Date or the death of the Annuitant, to surrender the Contract for
all or any part of the Contractowner's Individual Account.  In the event of a
termination of the Contract, First Investors Life will, upon due surrender of
the Contract at the Executive Office of First Investors Life or other designated
office, pay to the Contractowner the Accumulated Value of the Contract.  If only
a portion of the amount of the Contractowner's Individual Account is requested,
the amount so requested shall be deducted from the Subaccount resulting in a
corresponding reduction in the number of Accumulation Units credited to the
Contractowner in the Subaccount.  All Accumulated Values described in this
section will be determined as of the end of the Valuation Period during which
the written request is received by First Investors Life at its Executive Office
or other designated office.  First Investors Life may defer any such payment for
a period of not more than 7 days.  However, First Investors Life may postpone
such payment during any period when (a) trading on the New York Stock Exchange
is restricted as determined by the Securities and Exchange Commission or such
Exchange is closed for other than weekends and holidays, (b) the Securities and
Exchange Commission has by order permitted such suspension or (c) an emergency,
as defined by the rules of the Securities and Exchange Commission, exists during
which time the sale of portfolio securities or calculation of securities is not
reasonably practicable.  For information as to Federal tax consequences
resulting from surrenders, see "Federal Income Tax Status."  For information as
to State premium tax consequences, see "Other Charges" and "Appendix I."

                                       15
<PAGE>
 
DEATH OF CONTRACTOWNER

  If the Contractowner dies before the entire interest in the Contract has been
distributed, the value of the Contract must be distributed to the Beneficiary as
provided below so that the Contract qualifies as an annuity under Section 72(s)
of the Internal Revenue Code of 1986, as amended (the "Code").

  If the death of the Contractowner occurs on or after the Annuity Commencement
Date, the entire interest in the Contract will be distributed at least as
rapidly as under the Annuity Option in effect on the date of death.

  If the death of the Contractowner occurs prior to the Annuity Commencement
Date, the entire interest in the Contract will be (1) distributed to the
Beneficiary within five years, or (2) distributed under an Annuity Option
beginning within one year which provides that annuity payments will be made over
a period not longer than the life or life expectancy of the Beneficiary.  If the
Contract is payable to (or for the benefit of) the Contractowner's surviving
spouse, no distributions will be required and the Contract may be continued with
the surviving spouse as the new Contractowner.  If the Contractowner is also the
Annuitant, such spouse shall have the right to become the Annuitant under the
Contract.  Likewise, if the Annuitant dies and the Contractowner is not a
natural person, the Annuitant's surviving spouse shall have the right to become
the Contractowner and the Annuitant.

TEN-DAY REVOCATION RIGHT

  A Contractowner may, within ten days from the date the Contract is delivered
to the Contractowner, elect to cancel the Contract.  First Investors Life will,
upon surrender of the Contract, together with a written request for
cancellation, at the Executive Office of First Investors Life or other
designated office, pay to the Contractowner an amount equal to the Accumulated
Value of the Contract on the date of surrender plus the amount of any sales
charges deducted from the initial purchase payment.  The amount refunded to
Contractowners may be more or less than their initial purchase payment depending
on the investment results of the designated Subaccount(s).

                           FEDERAL INCOME TAX STATUS

  The Contracts are designed for use (a) by individuals in retirement plans
which will not be qualified plans under the provisions of the Code; and (b) in
the following retirement plans qualified for special tax treatment under the
Code (1) individual retirement annuities and (2) qualified corporate employee
pension and profit-sharing plans.  In general, a Contract acquired by a person
who is not an individual will be treated as one which is not an annuity to the
extent of contributions made after February 28, 1986, and any income received by
such person under the Contract will accordingly, be includable in gross income
on a current basis in accordance with that person's method of accounting.  The
preceding sentence will not apply to any annuity contract that is (i) acquired
by a decedent's estate by reason of the decedent's death, (ii) held under a
qualified pension, profit-sharing or stock bonus plan described under Section
401(a) of the Code or an employee annuity program described under Section 403(a)
of the Code (or that is purchased by an employer upon the termination of such
plan or program and that is held by the employer until all amounts under a
Contract are distributed to the employee for whom the Contract was purchased or
the employee's beneficiary), (iii) held under an individual retirement plan or
an employee annuity program described 

                                       16
<PAGE>
 
under Section 403(b) of the Code, or (iv) an immediate annuity (as defined in
Section 72(u)(4) of the Code).

  The ultimate effect of Federal income taxes on Accumulated Values, on annuity
payments and on the economic benefit to the Contractowner, Annuitant or
Beneficiary depends on the tax status of both First Investors Life and the
individual concerned.  The discussion contained herein is general in nature and
is not intended as tax advice.  No attempt is made to consider any applicable
state or other tax laws.  Moreover, the discussion herein is based upon First
Investors Life's understanding of Federal income tax laws as they are currently
interpreted.  No representation is made regarding the likelihood of continuation
of current Federal income tax laws or the current interpretations of the
Internal Revenue Service.  Prospective Contractowners should consult their tax
advisors as to the tax consequences of purchasing Contracts.

  First Investors Life is taxed as a life insurance company under the Code.
Since Separate Account C is not a separate entity from First Investors Life and
its operation forms part of First Investors Life, it will not be taxed
separately as a "regulated investment company" under Subchapter M of the Code.
Under existing Federal income tax law, investment income of the Subaccounts of
Separate Account C, to the extent that it is applied (after taking into account
the mortality risk and expense risk charges) to increase reserves under the
Contract, is not taxed and may be compounded through reinvestment without
additional tax to First Investors Life to the extent income is so applied.
Thus, the Series may realize net investment income and pay dividends and the
Subaccounts of Separate Account C may receive and reinvest them on behalf of
Contractowners, all without Federal income tax consequences for Separate Account
C or the Contractowner.

  Under current interpretations of the Code, the Contractowner is not subject to
income tax on increases in the value of the Contractowner's Individual Account
until payments are received by the Contractowner under the Contract.  Annuity
payments received after the Annuity Commencement Date will be taxed to the
Contractowner as ordinary income in accordance with Section 72 of the Code.
However, that portion of each payment which represents the Contractowner's
investment in the Contract, as defined in Section 72, will be excluded from
gross income.  The investment in the Contract, which is ordinarily the amount of
purchase payments made under the Contract with certain adjustments, is divided
by the Contractowner's life expectancy or other period for which annuity
payments are expected to be made to determine the annual exclusion.  Annuity
payments received each year in excess of this annual exclusion are taxable as
ordinary income as provided in Section 72 of the Code.

  In order that the Contracts be treated as annuities for Federal income tax
purposes, Separate Account C must satisfy certain diversification requirements
that are generally applicable to regulated investment companies under Subchapter
M of the Code.  Ownership by the Subaccounts of shares of the Series will not
fail the diversification requirements provided that the Series meet such
requirements, and all shares of the Series are owned only by the Subaccounts
(and similar accounts of First Investors Life or other insurance companies), and
access to the Series is available exclusively through the purchase of Contracts
(and additional variable annuity or life insurance products of First Investors
Life or other insurance companies).  Series shares also may be held by the
Adviser provided such shares are being held in connection with the creation or
management of the Series.  The Adviser does not intend to sell any Series shares
it owns to the general public.  It is expected that the Adviser will cause the
assets of the Series to be invested in a manner that complies with the asset
diversification requirements.

                                       17
<PAGE>
 
  With respect to withdrawals before the start of annuity payments, the Code
currently provides that: (i) withdrawals from an annuity contract are taxable as
ordinary income in the year of receipt to the extent that income from investment
has been earned, (ii) a loan under, or an assignment or pledge of an annuity
contract is treated as a distribution, and (iii) a 10 percent penalty will be
assessed on the taxable portion of withdrawals made prior to the taxpayer's
attainment of age 59 1/2.

  In determining the amount of any distribution that is includable in gross
income, all annuity contracts issued by the same company to the same
Contractowner during any 12-month period will be treated as one annuity
contract.  Contractowners should consult their tax advisors before purchasing
more than one Contract during any 12-month period.

  Under the Code, income tax must generally be withheld from all "designated
distributions."  A designated distribution includes the taxable portion of any
distribution or payment from an annuity.  A partial surrender of an annuity
contract is considered a distribution subject to withholding.

  The amount of withholding depends on the type of payment:  "periodic" or "non-
periodic."  For a periodic payment (e.g., an annuity payment), unless the
recipient files an appropriate withholding certificate, the tax withheld from
the taxable portion of the payment is based on a payroll withholding schedule
which assumes a married recipient claiming three withholding exemptions.  For a
non-periodic payment distribution (e.g., a partial surrender of an annuity
contract), the tax withheld will generally be 10 percent of the taxable portion
of the payment.

  A recipient may elect not to have the withholding rules apply. For periodic
payments, an election is effective for the calendar year for which it is made
and for each necessary year until amended or modified.  For non-periodic
distributions, an election is effective only for the distribution for which it
is made.  Payors must notify recipients of their right to elect to have taxes
withheld.

  Insurers are required to report all designated distribution payments to the
Internal Revenue Service.

  With respect to the Contracts issued in connection with retirement or deferred
compensation plans which do not meet the requirements applicable to tax
qualified plans, the tax status of the Annuitant is determined by the provisions
of the plan.  In general, the Annuitant is not taxed until the Annuitant
receives annuity payments.  The rules for taxation of payments under non-
qualified plans are, in general, similar to those for taxation of payments under
a qualified plan; however, the special income averaging treatment available for
certain lump sum payments under qualified plans is not available for similar
payments under non-qualified plans.

  The Contracts may be purchased in connection with the following types of tax-
favored retirement plans: (1) individual retirement annuities and (2) pension
and profit-sharing plans of corporations qualified under Section 401(a) or
employee annuity programs described in Section 403(a) of the Code.  The tax
rules applicable to these plans, including restrictions on contributions and
benefits, taxation of distribution and any tax penalties, vary according to the
type of plan and its terms and conditions.  Participants under such plans, as
well as Contractowners, Annuitants and Beneficiaries, should be aware that the
rights of any person to any benefits under such plans may be subject to the
terms and conditions of the plans themselves, regardless of the terms and
conditions of the Contracts.  Purchasers of Contracts for use with any qualified
plan, as well as plan participants and 

                                       18
<PAGE>
 
Beneficiaries, should consult counsel and other competent advisors as to the
suitability of the Contracts to their special needs, and as to applicable Code
limitations and tax consequences.

  It should be noted that the laws and regulations with respect to the foregoing
tax matters are subject to change at any time by Congress and the Treasury
Department, respectively, and that the interpretations of such laws and
regulations now in effect are subject to change by judicial decision or by the
Treasury Department.

                            PERFORMANCE INFORMATION

  From time to time, Separate Account C may advertise several types of
performance information for the Subaccounts.  All Subaccounts may advertise
"average annual total return" and "total return," except "average annual total
return" is not shown for the Cash Management Subaccount.  The High Yield
Subaccount, Investment Grade Subaccount and Government Subaccount may also
advertise "yield."  The Cash Management Subaccount may advertise "yield" and
"effective yield."  Each of these figures is based upon historical earnings and
is not necessarily representative of the future performance of a Subaccount.
The yield and effective yield figures include the payment of the Mortality and
Expense Risk fee of 1.00% but do not include the maximum sales charge of 7.00%.

  Average annual total return and total return calculations measure the net
income of a Subaccount plus the effect of any realized or unrealized
appreciation or depreciation of the underlying investments in a Subaccount for
the period in question.  Average annual total return will be quoted for one,
five and ten year periods, or for shorter time periods depending upon the length
of time during which the Subaccount has operated.  Average annual total return
figures are annualized and, therefore, represent the average annual percentage
change in the value of an investment in a Subaccount over the period in
question.  Total return figures are not annualized and represent the actual
percentage change over the period in question.  Average annual total return and
total return figures will include the deduction of all expenses and fees,
including the payment of the maximum sales charge of 7.00% and the payment of
the Mortality and Expense Risk fee of 1.00%.

  Yield is a measure of the net dividend and interest income earned over a
specific one month or 30-day period (seven-day period for the Cash Management
Subaccount) expressed as a percentage of the value of the Subaccount's
Accumulation Units.  Yield is an annualized figure, which means that it is
assumed that the Subaccount generates the same level of net income over a one-
year period which is compounded on a semi-annual basis.  The effective yield for
the Cash Management Subaccount is calculated similarly but includes the effect
of assumed compounding calculated under rules prescribed by the Securities and
Exchange Commission.  The Cash Management Subaccount's effective yield will be
slightly higher than its yield due to this compounding effect.

  For further information on performance calculations, see "Performance
Information" in the Statement of Additional Information.

                                       19
<PAGE>
 
                               TABLE OF CONTENTS
                         OF THE STATEMENT OF ADDITIONAL
                                  INFORMATION
<TABLE>
<CAPTION>
  Item                                                                    Page
- --------                                                                  ----
<S>                                                                       <C>
General Description......................................................   2
Services.................................................................   2
Purchase of Securities...................................................   4
Deduction Table..........................................................   4
Annuity Payments.........................................................   5
Other Information........................................................   6
Performance Information..................................................   6
Relevance of Financial Statements........................................  10
Appendices...............................................................  11
Financial Statements.....................................................  16
</TABLE>

                                   APPENDIX I

                             STATE AND LOCAL TAXES*

<TABLE>
<S>                                 <C>
Alabama..........................   1.00%
Alaska...........................     -
Arizona..........................     -
Arkansas.........................     -
California.......................   2.35
Colorado.........................     -
Connecticut......................     -
Delaware.........................     -
District of Columbia.............   2.25
Florida..........................     -
Georgia..........................     -
Illinois.........................     -
Indiana..........................     -
Iowa.............................     -
Kentucky.........................   2.00
Louisiana........................     -
Maryland.........................     -
Massachusetts....................     -
Michigan.........................     -
Minnesota........................     -
</TABLE> 

<TABLE> 
<S>                                 <C> 
Mississippi......................   2.00%
Missouri.........................     -
Nebraska.........................     -
New Jersey.......................     -
New Mexico.......................     -
New York.........................     -
North Carolina...................  1.875
Ohio.............................     -
Oklahoma.........................     -
Oregon...........................     -
Pennsylvania.....................   2.00
Rhode Island.....................     -
South Carolina...................     -
Tennessee........................     -
Texas............................     -
Utah.............................     -
Virginia.........................     -
Washington.......................     -
West Virginia....................   1.00
Wyoming..........................   1.00
</TABLE>

- ------------------
Note:  The foregoing rates are subject to amendment by legislation and the
       applicability of the stated rates may be subject to administrative
       interpretation.

       * Includes local annuity premium taxation.

                                       20
<PAGE>
 
TABLE OF CONTENTS
- -----------------

<TABLE>
<S>                                            <C>
Glossary of Special Terms....................   2
Fee Table....................................   3
Condensed Financial Information..............   4
General Description..........................   5
Purchases, Deductions, Charges and Expenses..  10
Variable Annuity Contracts...................  12
Federal Income Tax Status....................  16
Performance Information......................  19
Table of Contents of the
   Statement of Additional Information.......  20
Appendix I - State and Local Taxes...........  20
</TABLE>


Life 327


FIRST INVESTORS LIFE
VARIABLE ANNUITY
FUND C

- ---------------------------


Individual Variable
Annuity Contracts
- ---------------------------


Prospectus

- ----------------------------
    
May 1, 1995      

First Investors Logo

Logo is described as follows:  the arabic numeral one separated into seven
vertical segments followed by the words "First Investors."

Vertical line from top to bottom in center of the page about l/2 inch in
thickness.
<PAGE>
 
                  FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C

                     INDIVIDUAL VARIABLE ANNUITY CONTRACTS
                                   OFFERED BY
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                 
             STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1995      

         
     This Statement of Additional Information is not a Prospectus and should be
read in conjunction with the Prospectus for First Investors Life Variable
Annuity Fund C, dated May 1, 1995, which may be obtained at no cost by writing
to First Investors Life Insurance Company, 95 Wall Street, New York, New York
10005, or by telephoning (212) 858-8200.      


                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                          Page
                                          ----
<S>                                       <C>
     General Description................     2
     Services...........................     2
     Purchase of Securities.............     4
     Deduction Table....................     5
     Annuity Payments...................     5
     Other Information..................     6
     Performance Information............     7
     Relevance of Financial Statements..    11
     Appendices.........................    12
     Financial Statements...............    17
</TABLE>

                                       1
<PAGE>
 
                              GENERAL DESCRIPTION
    
     FIRST INVESTORS LIFE INSURANCE COMPANY.  First Investors Life Insurance
Company, 95 Wall Street, New York, New York  10005 ("First Investors Life"), a
stock life insurance company incorporated under the laws of the State of New
York in 1962, writes life insurance, annuities and accident and health
insurance.  First Investors Consolidated Corporation ("FICC") owns all of the
voting common stock of First Investors Management Company, Inc. ("FIMCO" or
"Adviser") and all of the outstanding stock of First Investors Corporation
("FIC" or "Underwriter") and the Transfer Agent.  Mr. Glenn O. Head (and members
of his family) and Mrs. Julie W. Grayson (as executrix of the estate of her
deceased husband, David D. Grayson) are controlling persons of FICC and,
therefore, jointly control the Adviser.      

     SEPARATE ACCOUNT C.  First Investors Life Variable Annuity Fund C
("Separate Account C") was established on December 21, 1989 under the provisions
of the New York Insurance Law.  The assets of Separate Account C are held
separately from the assets of First Investors Life and are not chargeable with
liabilities arising out of any other business of First Investors Life.  Separate
Account C is registered as a unit investment trust under the Investment Company
Act of 1940, as amended (the "1940 Act"), but such registration does not involve
any supervision of the management or investment practices or policies of
Separate Account C.

     The assets of each Subaccount of Separate Account C are invested at net
asset value in shares of the corresponding Series (the "Series") of First
Investors Life Series Fund (the "Fund").  For example, the Blue Chip Subaccount
invests in the Blue Chip Series, the Government Subaccount invests in the
Government Series, and so on.  The Fund's Prospectus describes the risks
attendant to an investment in each Series of the Fund.


                                    SERVICES

     CUSTODIAN.  First Investors Life, subject to applicable laws and
regulations, is the custodian of the securities of the Subaccounts of Separate
Account C.  The assets of the Subaccounts of Separate Account C are held by
United States Trust Company of New York, 114 W. 47th Street, New York, New York
10036 under a safekeeping arrangement.  Under the terms of a Safekeeping
Agreement dated December 13, 1979 between First Investors Life and United States
Trust Company of New York, securities and similar investments of the Subaccounts
of Separate Account C shall be deposited in the safekeeping of United States
Trust Company of New York.  First Investors Life is responsible for the payment
of all expenses of, and compensation to, United States Trust Company of New York
in such amounts as may be agreed upon from time to time.

     INDEPENDENT PUBLIC ACCOUNTANTS.  Tait, Weller & Baker,  Two Penn Center
Plaza, Philadelphia, PA 19102, independent certified public accountants, has
been selected as the independent accountants for Separate Account C.

     ADVISER.  Investment advisory services to each Series are provided by First
Investors Management Company, Inc., 95 Wall Street, New York, NY 10005 pursuant
to an Investment Advisory Agreement dated June 13, 1994 (the "Advisory
Agreement").  The Advisory Agreement was approved, with respect to each Series,
by the Fund's Board of Trustees, including a majority of the Trustees who are
not parties 

                                       2
<PAGE>
 
to the Advisory Agreement or "interested persons" (as defined in the 1940 Act)
of any such party, in person at a meeting called for such purpose and by the
shareholders of each Series.

     Pursuant to the Advisory Agreement, FIMCO shall supervise and manage each
Series' investments, determine each Series' portfolio transactions and supervise
all aspects of each Series' operations, subject to review by the Fund's
Trustees.  The Advisory Agreement also provides that FIMCO shall provide the
Fund and each Series with certain executive, administrative and clerical
personnel, office facilities and supplies, conduct the business and details of
the operation of each Series and assume certain expenses thereof, other than
obligations or liabilities of a Series, such as shareholder servicing fees and
expenses; custodian fees and expenses; legal and auditing fees; expenses of
communicating to existing shareholders, including preparing, printing and
mailing prospectuses and shareholder reports to such shareholders; and proxy and
shareholder meeting expenses.

     Under the Advisory Agreement, the Fund pays the Adviser an annual fee, paid
monthly, according to the following schedule:

<TABLE>
<CAPTION>
                                               Annual
Average Daily Net Assets                        Rate
- ------------------------                       ------
<S>                                            <C>
Up to $250 million............................  0.75%
In excess of $250 million up to $500 million..  0.72
In excess of $500 million up to $750 million..  0.69
Over $750 million.............................  0.66
</TABLE>

This fee is calculated separately for each Series.

     SUBADVISER.  Investment subadvisory services are provided to GROWTH SERIES
and INTERNATIONAL SECURITIES SERIES by Wellington Management Company ("WMC" or
"Subadviser") pursuant to a Subadvisory Agreement dated June 13, 1994 (the
"Subadvisory Agreement").  The Subadvisory Agreement was approved, with respect
to each Series, by the Fund's Board of Trustees, including a majority of the
Trustees who are not parties to the Subadvisory Agreement or "interested
persons" (as defined in the 1940 Act) of any such party, in person at a meeting
called for such purpose and by the shareholders of GROWTH SERIES and
INTERNATIONAL SECURITIES SERIES.  The Subadvisory Agreement provides that WMC
shall manage the investment operations of each Series subject to the oversight
and supervision of the Adviser and the Board of Trustees.

     Under the Subadvisory Agreement, the Adviser will pay to the Subadviser a
fee at an annual rate of 0.400% of the average daily net assets of each Series
allocated to WMC up to and including $50 million; 0.275% of such average daily
net assets in excess of $50 million up to and including $150 million, 0.225% of
such average daily net assets in excess of $150 million up to and including $500
million; and 0.200% of such average daily net assets in excess of $500 million.
This fee is calculated separately for each of the Series.

     WMC, located at 75 State Street, Boston, MA 02109, is a Massachusetts
general partnership of which Robert W. Doran, Duncan M. McFarland and John B.
Neff are Managing Partners.  WMC is a professional investment counseling firm
which provides investment services to investment companies, employee benefit
plans, endowment funds, foundations and other institutions and individuals.  As
of 

                                       3
<PAGE>
 
    
December 31, 1994, WMC held discretionary investment authority with respect
to approximately $80.0 billion of assets.  Of that amount, WMC acted as
investment adviser or subadviser to approximately 110 registered investment
companies or series of such companies, with net assets of approximately $58.3
billion as of December 31, 1994.  WMC is not affiliated with the Adviser or any
of its affiliates.      
    
     UNDERWRITER.  First Investors Life and Separate Account C have entered into
an Underwriting Agreement with First Investors Corporation.  FIC, an affiliate
of First Investors Life, and of the Adviser, by virtue of its 100% ownership by
FICC, their parent company, has its principal business address at 95 Wall
Street, New York, New York  10005.  For the fiscal years ended December 31,
1992, 1993 and 1994, FIC received fees of $1,660,995, $2,044,846 and $2,609,538,
respectively, in connection with the distribution of the Contracts.      

     The Contracts are sold by insurance agents licensed to sell variable
annuities, who are registered representatives of the Underwriter or broker-
dealers who have sales agreements with the Underwriter.


                             PURCHASE OF SECURITIES

     PURCHASE PAYMENTS.  Investors in Separate Account C will be purchasing
Accumulation Units of a particular Subaccount only and not shares of the Series
in which the Subaccount invests.

     The minimum purchase payment is $2,000 for a Deferred Variable Annuity
Contract.  Additional Payments under a Deferred Variable Annuity Contract in the
minimum amount of $200 may be made at any time after the issuance of the
Contract.

     Purchase payments will be credited to a Contractowner's Account on the date
of receipt by First Investors Life of a completed application.  In the event
First Investors Life receives an incomplete application, all required
information shall be provided not later than five business days following the
receipt of such application or the purchase payment will be returned to the
applicant at the end of such five-day period.  Purchase payments, after
deductions for sales expenses and any applicable premium taxes (see "Deductions
from Purchase Payments"), will be allocated to the appropriate Subaccount or
Subaccounts.

     DEDUCTIONS FROM PURCHASE PAYMENTS.  First Investors Life or FIC, as the
Underwriter, makes deductions, in accordance with the Deduction Table below,
from the purchase payment for expenses in connection with sales functions
relative to the Contracts.  Reductions in sales charges are applicable to the
total amount of the purchase payment.  In addition, any Additional Payment made
after the issuance of a Deferred Annuity Contract is subject to the sales charge
applicable to the total amount of all purchase payments previously made plus the
amount of the Additional Payment being made.  The sales charge is intended to
cover expenses relating to the sale of the Contracts, including commissions paid
to persons distributing the Contracts and costs of preparation of sales
literature.

                                       4
<PAGE>
 
                                DEDUCTION TABLE
 
<TABLE>
<CAPTION>
                                   SALES CHARGE AS % OF                 
                                 ------------------------    CONCESSION TO 
                                   OFFERING    NET AMOUNT   DEALERS AS % OF
AMOUNT OF INVESTMENT                PRICE       INVESTED    OFFERING PRICE
- -------------------------------  ------------  ----------   ---------------
<S>                              <C>           <C>          <C>
Less than $25,000..............      7.00%        7.53%          5.75%
$25,000 but under $50,000......      6.25         6.67           5.17
$50,000 but under $100,000.....      4.75         4.99           3.93
$100,000 but under $250,000....      3.50         3.63           2.90
$250,000 but under $500,000....      2.50         2.56           2.19
$500,000 but under $1,000,000..      2.00         2.04           1.67
$1,000,000 or over.............      1.50         1.52           1.24
- ---------------------
</TABLE>
* Assumes that no premium taxes have been deducted.


                                ANNUITY PAYMENTS

     VALUE OF AN ACCUMULATION UNIT. For each Subaccount of Separate Account C,
the value of an Accumulation Unit was arbitrarily initially set at $10.00. The
value of an Accumulation Unit for any subsequent Valuation Period is determined
by multiplying the value of an Accumulation Unit for the immediately preceding
Valuation Period by the Net Investment Factor for the Valuation Period for which
the Accumulation Unit Value is being calculated (see Appendix I, Example B). The
investment performance of the Series, expenses and deductions of certain charges
affect the Accumulation Unit Value. The value of an Accumulation Unit for the
Subaccounts may increase or decrease from Valuation Period to Valuation Period.

     NET INVESTMENT FACTOR. The Net Investment Factor for each Subaccount for
any Valuation Period is determined by dividing (a) by (b) and subtracting (c)
from the result, where:

(a)  is the net result of:

     (1)  the net asset value per share of the applicable Series determined at
          the end of the current Valuation Period, plus

     (2)  the per share amount of any dividend or capital gains distributions
          made by the applicable Series if the "ex-dividend" date occurs during
          the current Valuation Period.

(b)  is the net asset value per share of the applicable Series determined as of
     the end of the immediately preceding Valuation Period.

(c)  is a factor representing the charges deducted for mortality and expense
     risks.  Such factor is equal on an annual basis to 1.00% of the daily net
     asset value of the Subaccount.  This percentage represents approximately
     0.6% charge for the mortality risk assumed and 0.4% charge for the expense
     risk assumed.

     The Net Investment Factor may be greater or less than one, and therefore,
the value of an Accumulation Unit for any Subaccount may increase or decrease.
(For an illustration of this calculation, see Appendix I, Example A.)

                                       5
<PAGE>
 
     VALUE OF AN ANNUITY UNIT.  For each Subaccount of Separate Account C, the
value of an Annuity Unit was arbitrarily initially set at $10.00.  The value of
an Annuity Unit for any subsequent Valuation Period is determined by multiplying
the Annuity Unit Value for the immediately preceding Valuation Period by the Net
Investment Factor for the Valuation Period for which the Annuity Unit Value is
being calculated, and multiplying the result by an interest factor to offset the
effect of an investment earnings rate of 3.5% per annum, which is assumed in the
Annuity Tables contained in the Contract.  (For an illustration of this
calculation, see Appendix III, Example A.)

  AMOUNT OF ANNUITY PAYMENTS.  When annuity payments are to commence, the
Accumulated Value to be applied to a variable annuity option will be determined
by multiplying the value of an Accumulation Unit for the Valuation Date on or
immediately preceding the seventh day before the Annuity Commencement Date by
the number of Accumulation Units owned.  This seven day period is used to permit
calculation of amounts of annuity payments and mailing of checks in advance of
the due date.  At that time any applicable premium taxes not previously deducted
will be deducted from the Accumulated Value to determine the Net Accumulated
Value.  The resultant value is then applied to the Annuity Tables set forth in
the Contract to determine the amount of the first monthly annuity payment.  The
Contract contains Annuity Tables setting forth the amount of the first monthly
installment for each $1,000 of Accumulated Value applied.  These Annuity Tables
vary according to the Annuity Option selected by the Contractowner and according
to the sex and adjusted age of the Annuitant and any Joint Annuitant at the
Annuity Commencement Date.  The Contract contains a formula for determining the
adjusted age, and the Annuity Tables are determined from the Progressive Annuity
Table with interest at 3.5% per year and assumes births prior to 1900, adjusted
by a setback of four years of age for persons born 1900 and later and an
additional setback of one year of age for each completed 5 years by which the
year of birth is later than 1900.  Annuity Tables used by other insurers may
provide greater or less benefits to the Annuitant.

     The dollar amount of the first monthly Variable Payment, based on the
Subaccount determined as above, is divided by the value of an Annuity Unit for
the Subaccount for the Valuation Date on or immediately preceding the seventh
day before the Annuity Commencement Date to establish the number of Annuity
Units representing each monthly payment under the Subaccount.  This seven day
period is used to permit calculation of amounts of annuity payments and mailing
of checks in advance of the due date. This number of Annuity Units remains fixed
for all variable annuity payments.  The dollar amount of the second and
subsequent variable annuity payments is determined by multiplying the fixed
number of Annuity Units for the Subaccount by the applicable value of an Annuity
Value for the Valuation Date on or immediately preceding the seventh day before
the due date of the payment.  The value of an Annuity Unit will vary with the
investment performance of the Series, and, therefore, the dollar amount of the
second and subsequent variable annuity payments may change from month to month.
(For an illustration of the calculation of the first and subsequent Variable
Payments, see Appendix III, Examples B, C and D.)


                               OTHER INFORMATION

    TIME OF PAYMENTS.  All payments due under the Contracts will ordinarily be
made within seven days of the payment due date or within seven days after the
date of receipt of a request for partial surrender or termination.  However,
First Investors Life reserves the right to suspend or postpone the date of any
payment due under the Contracts (1) for any period during which the New York
Stock Exchange 

                                       6
<PAGE>
 
("NYSE") is closed (other than customary weekend and holiday closings) or during
which trading on the NYSE, as determined by the Securities and Exchange
Commission, is restricted; (2) for any period during which an emergency, as
determined by the Commission, exists as a result of which disposal of securities
held by the Series are not reasonably practical or it is not reasonably
practical to determine the value of the Series' net assets; or (3) for such
other periods as the Commission may by order permit for the protection of
security holders or as may be permitted under the 1940 Act.

     REPORTS TO CONTRACTOWNERS.  First Investors Life will mail to each
Contractowner, at the last known address of record at the Home Office of First
Investors Life, at least annually, a report containing such information as may
be required by any applicable law or regulation and a statement of the
Accumulation Units credited to the Contract for each Subaccount and the
Accumulation Unit Values.  In addition, latest available reports of the Fund
will be mailed to each Contractowner.

     ASSIGNMENT.  Any amounts payable under the Contracts may not be commuted,
alienated, assigned or otherwise encumbered before they are due.  To the extent
permitted by law, no such payments shall be subject in any way to any legal
process to subject them to payment of any claims against any Annuitant, Joint
Annuitant or Beneficiary.  The Contracts may be assigned.


                            PERFORMANCE INFORMATION

     Separate Account C may advertise the performance of the Subaccounts in
various ways.

     The yield for a Subaccount (other than the Cash Management Subaccount) is
presented for a specified thirty-day period (the "base period").  Yield is based
on the amount determined by (i) calculating the aggregate amount of net
investment income earned by the underlying Series during the base period less
expenses accrued for that period (net of reimbursement), and (ii) dividing that
amount by the product of (A) the average daily number of Accumulation Units of
the Subaccount outstanding during the base period and (B) the maximum public
offering price per Accumulation Unit on the last day of the base period.  The
result is annualized by compounding on a semi-annual basis to determine the
Subaccount's yield.  For this calculation, interest earned on debt obligations
held by the underlying Series is generally calculated using the yield to
maturity (or first expected call date) of such obligations based on their market
values (or, in the case of receivables-backed securities such as GNMA's, based
on cost).  Dividends on equity securities are accrued daily at their estimated
stated dividend rates.  For a detailed description of yield calculations for the
Cash Management Subaccount, see "Determination of Current and Effective Yield"
below.

     A Subaccount's "average annual total return" ("T") is an average annual
compounded rate of return.  The calculation produces an average annual total
return for the number of years measured.  It is the rate of return based on
factors which include a hypothetical initial investment of $1,000 ("P" in the
formula below) over a number of years ("n") with an Ending Redeemable Value
("ERV") of that investment, according to the following formula:

     T = [ (ERV/P) to the 1/nth power ] - 1

  The "total return" uses the same factors, but does not average the rate of
return on an annual basis.  Total return is determined as follows:

                                       7
<PAGE>
 
     [ERV-P]/P  = TOTAL RETURN

  In providing such performance data, each Subaccount will assume the payment of
the maximum sales charge of 7.00% (as a percentage of the purchase payment) on
the initial investment and the payment of the Mortality and Expense Risk Fee of
1.00% ("P").  Each Subaccount will assume that during the period covered all
dividends and capital gain distributions are paid at net asset value per
Accumulation Unit, and that the investment is redeemed at the end of the period.
    
  Average annual total return for each Subaccount for periods ended December 31,
1994 is as follows:      

<TABLE>    
<CAPTION>
                                                                           Life of
                                                    One Year  Five Years  Subaccount
                                                    --------  ----------  -----------
<S>                                                 <C>       <C>         <C>
     Blue Chip Subaccount/*/                         (8.35)%      N/A          6.34
     Discovery Subaccount/**/                        (9.35)     12.95         12.76
     Government Subaccount/****/                    (10.78)       N/A          1.39
     Growth Subaccount/**/                           (9.67)      7.13          8.88
     High Yield Subaccount/**/                       (8.46)      8.81          7.99
     International Securities Subaccount/***/        (8.20)       N/A          6.15
     Investment Grade Subaccount/****/              (10.25)       N/A          2.67
     Utilities Income Subaccount/*****/             (13.75)       N/A        (12.75)
</TABLE>      

     ------------------------
     /*/      Commenced operations March 8, 1990
     /**/     Commenced operations November 9, 1987
     /***/    Commenced operations April 16, 1990
     /****/   Commenced operations January 7, 1992
     /*****/  Commenced operations November 15, 1993
    
     The total return figures assume the current maximum sales charge of 7.00%.
Prior to December 30, 1991, the maximum sales charge for Separate Account C was
7.25%, which is not reflected in the total return figures.      
    
     Average annual total return and total return may also be based on
investment at reduced sales charge levels or at net asset value.  Any quotation
of return not reflecting the maximum sales charge will be greater than if the
maximum sales charge were used.  Average annual return computed at net asset
value for the period ended December 31, 1994 for each Subaccount is set forth in
the table below:      

                                       8
<PAGE>
 
<TABLE>    
<CAPTION>
                                                                           Life of
                                                    One Year  Five Years  Subaccount
                                                    --------  ----------  -----------
<S>                                                 <C>       <C>         <C>
     Blue Chip Subaccount/*/                         (1.45)%       N/A        7.95
     Discovery Subaccount/**/                        (2.53)      14.60       13.91
     Government Subaccount/****/                     (4.10)        N/A        3.87
     Growth Subaccount/**/                           (2.87)       8.10        9.99
     High Yield Subaccount/**/                       (1.57)      10.40        9.09
     International Securities Subaccount/***/        (1.29)        N/A        7.79
     Investment Grade Subaccount/****/               (3.53)        N/A        5.19
     Utilities Income Subaccount/*****/              (7.24)        N/A        6.96
</TABLE>      

- ------------------------
    
     /*/      Commenced operations March 8, 1990
     /**/     Commenced operations November 9, 1987
     /***/    Commenced operations April 16, 1990
     /****/   Commenced operations January 7, 1992
     /*****/  Commenced operations November 15, 1993      
 
    
     Some of the expenses of the underlying Series were waived from commencement
of operations through December 31, 1994.  Accordingly, average annual total
return figures for the Subaccounts are higher than they would have been had such
expenses not been waived.     

     Total return information may be useful to investors in reviewing the
Subaccount's performance.  However, the total return will fluctuate over time
and the total return for any given past period is not an indication or
representation by Separate Account C of future rates of return of any
Subaccount.

     At times, the Series' Adviser may reduce its compensation or assume
expenses of the Series in order to reduce the Series' expenses.  Any such waiver
or reimbursement would increase the corresponding Subaccount's total return and
yield during the period of the waiver or reimbursement.

     Each Subaccount may include in advertisements and sales literature,
examples, information and statistics that illustrate the effect of taxable vs.
tax-deferred compounding income at a fixed rate of return to demonstrate the
growth of an investment over a stated period of time resulting from the payment
of dividends and capital gains distributions in additional Accumulation Units.
The examples may include hypothetical returns comparing taxable versus tax-
deferred growth which would pertain to an IRA, Section 403(b)(7) Custodial
Account or other qualified retirement program.  The examples used will be for
illustrative purposes only and are not representations by any Subaccount of past
or future yield or return of any of the Subaccounts.

     From time to time, in reports and promotional literature, Separate Account
C may compare the performance of its Subaccounts to, or cite the historical
performance of, other variable annuities.  The performance rankings and ratings
of variable annuities reported in L-VIPPAS, a monthly publication for insurance
companies and money managers published by Lipper Analytical Services, Inc. and
in Morningstar Variable Annuity Performance Report, also a monthly publication
published by Morningstar, 

                                       9
<PAGE>
 
Inc., may be used. Additionally, performance rankings and ratings reported
periodically in national financial publications such as MONEY, FORBES, BUSINESS
WEEK, BARRON'S, FINANCIAL TIMES, CHANGING TIMES, FORTUNE, NATIONAL UNDERWRITER,
etc., may also be used. Quotations from articles appearing in daily newspaper
publications such as THE NEW YORK TIMES, THE WALL STREET JOURNAL and THE NEW
YORK DAILY NEWS may be cited.

     DETERMINATION OF CURRENT AND EFFECTIVE YIELD.  Separate Account C provides
current yield quotations for the Cash Management Subaccount based on the
underlying Series' daily dividends.  The underlying Series declares dividends
from net investment income daily and pays them monthly.

     For purposes of current yield quotations, dividends per Accumulation Unit
for a seven-day period are annualized (using a 365-day year basis) and divided
by the average value of an Accumulation Unit for the seven-day period.

     The current yield quoted will be for a recent seven day period.  Current
yields will fluctuate from time to time and are not necessarily representative
of future results.  The investor should remember that yield is a function of the
type and quality of the instruments in the portfolio, portfolio maturity and
operating expenses.  Current yield information is useful in reviewing the Cash
Management Subaccount's performance but, because current yield will fluctuate,
such information may not provide a basis for comparison with bank deposits or
other investments which may pay a fixed yield for a stated period of time, or
other investment companies, which may use a different method of calculating
yield.

     In addition to providing current yield quotations, Separate Account C
provides effective yield quotations for the Cash Management Subaccount for a
base period return of seven days.  An effective yield quotation is determined by
a formula which requires the compounding of the unannualized base period return.
Compounding is computed by adding 1 to the unannualized base period return,
raising the sum to a power equal to 365 divided by 7 and subtracting 1 from the
result.
    
     The following is an example, for purposes of illustration only, of the
current and effective yield calculation for the seven day period ended December
31, 1994.      

<TABLE>    
     <S>                                                         <C> 
     Dividends per accumulation unit from net investment income
     (seven calendar days ended December 31, 1994)
     (Base Period).............................................. $.001020343
     Annualized (365 day basis)................................. $.053203597 
     Average value per accumulation unit for the  
     seven calendar days ended December 31, 1994................ $1.00 
     Annualized historical yield per accumulation unit
      for the seven calendar days ended December 31, 1994....... 5.32%
     Effective Yield............................................ 5.45%
     Weighted average life to maturity of the portfolio on 
     December 31, 1994 was 28 days
</TABLE>     
 
- --------------------
   /*/ This represents the average of annualized net investment income per
       accumulation unit for the seven calendar days ended December 31, 1994
    
  /**/ Effective Yield = [(Base Period Return + 1) to the 365th power / 7] - 1
    

                                       10
<PAGE>
 
     The figures in the above example do not include the maximum sales charge of
7.00%.  Accordingly, all yield quotations are higher than they would have been
had such expense been included.

     Separate Account C's Prospectus and Statement of Additional Information may
be in use for a full year and, accordingly, it can be expected that yields will
fluctuate substantially from the example shown above.


                       RELEVANCE OF FINANCIAL STATEMENTS

     The values of the interests of Contractowners under the variable portion of
the Contracts will be affected solely by the investment results of the
Subaccounts.  The financial statements of First Investors Life as contained
herein should be considered only as bearing upon First Investors Life's ability
to meet its obligations to Contractowners under the Contracts, and they should
not be considered as bearing on the investment performance of the Subaccounts.

                                       11
<PAGE>
 
                                   APPENDICES

                                       12
<PAGE>
 
                                   APPENDIX I

                                   EXAMPLE A
                    FORMULA AND ILLUSTRATION FOR DETERMINING
                         THE NET INVESTMENT FACTOR OF A
                                SEPARATE ACCOUNT


Net Investment Factor = A + B - C
                        --------- - F
                          D - E

Where:
<TABLE>
<S>                                                                                  <C>
A = The Net Asset Value of a Fund share as of the end of the current
       Valuation Period.
     Assume.....................................................................  =  $8.51000000
B = The per share amount of any dividend or capital gains distribution
        since the end of the immediately preceding Valuation Period.
     Assume.....................................................................  =            0
C = The per share charge or credit for any taxes reserved for at the end
        of the current Valuation Period.
     Assume.....................................................................  =  $ .38560000
D = The Net Asset Value of a Fund share at the end of the immediately
        preceding Valuation Period.
     Assume.....................................................................  =  $8.39000000
E = The per share amount of any taxes reserved for at the end of the
        immediately preceding Valuation Period.
     Assume.....................................................................  =  $ .35200000
F = The daily deduction for mortality and expense risks, which totals .75%
        on an annual basis.
     On a daily basis...........................................................  =    .00002054
 
Then, the Net Investment Factor = 8.51000000 + 0 -.38560000            
                                  ------------------------- -.00002054..........  =  $1.01072840
                                   8.39000000 - .35200000
</TABLE>

                                   EXAMPLE B
                    FORMULA AND ILLUSTRATION FOR DETERMINING
                          ACCUMULATION UNIT VALUE OF A
                                SEPARATE ACCOUNT
 
Accumulation Unit Value = A x B

Where:
<TABLE>
<S>                                                                                  <C>
A = The Accumulation Unit Value for the immediately preceding Valuation
        Period.
     Assume.....................................................................  =  $1.46328760
B = The Net Investment Factor for the current Valuation Period.
     Assume.....................................................................  =   1.01072840
Then, the Accumulation Unit Value = $1.46328760 x 1.01072840....................  =   1.47898633
</TABLE>

                                       13
<PAGE>
 
                                  APPENDIX II

                                   EXAMPLE A
                    FORMULA AND ILLUSTRATION FOR DETERMINING
                          DEATH BENEFIT PAYABLE UNDER
                   ANNUITY OPTION 4-UNIT REFUND LIFE ANNUITY

Upon the death of the Annuitant the designated Beneficiary under this option
will receive under a Separate Account a lump sum death benefit of the then
dollar value of a number of Annuity Units computed using the following formula:

Annuity Units Payable = A               A
                       --- - (CxD), if --- is greater than CxD
                        B               B
Where:
<TABLE> 
<S>                                                                                  <C> 
A = The net benefit applied on the Annuity Commencement Date to
        purchase the Variable Annuity.
     Assume.....................................................................  =  $   20,000.00
 
B = The Annuity Unit Value at the Annuity Commencement Date.
     Assume.....................................................................  =  $  1.08353012
 
C = The number of Annuity Units represented by each payment made.
     Assume.....................................................................  =   116.61488844
 
D = The total number of monthly Variable Annuity Payments made prior
        to the Annuitant's death.
     Assume.....................................................................  =             30
</TABLE> 

Then the number of Annuity Units Payable:
 
                        $20,000.00
                       -----------  - (116.61488844 x 30)
                       $1.08353012
 
                  =    18,458.18554633 - 3,498.46665300
 
                  =    15,076.35378177

If the value of an Annuity Unit on the date of receipt of notification of death
was $1.12173107 then the amount of the death benefit under the Separate Account
would be:


    15,076.35378177 x $1.12173107 = $16,911.61

                                       14
<PAGE>
 
                                  APPENDIX III

                                   EXAMPLE A

                    FORMULA AND ILLUSTRATION FOR DETERMINING
                            ANNUITY UNIT VALUE OF A
                                SEPARATE ACCOUNT

Annuity Unit Value = A x B x C
 
Where:
<TABLE>
<S>                                                                                   <C>
A = Annuity Unit Value of the immediately preceding Valuation Period.
     Assume.....................................................................  =   $1.10071211
                                                                                      
B = Net Investment Factor for the Valuation Period for which the Annuity              
        Unit is being calculated.                                                     
     Assume.....................................................................  =     1.0083530
C = A factor to neutralize the assumed interest rate of 3 1/2% built into             
        the Annuity tables used.                                                      
     Daily factor equals........................................................  =    0.99990575
</TABLE>

Then, the Annuity Value is:

     $1.10071211 x 1.0053530 x 0.99990575 = $1.10152771


                                   EXAMPLE B

                    FORMULA AND ILLUSTRATION FOR DETERMINING
             AMOUNT OF FIRST MONTHLY VARIABLE ANNUITY PAYMENT FROM
                              ONE SEPARATE ACCOUNT

                                            A    
First Monthly Variable Annuity Payment = ------- x B   
                                         $1,000

Where:
<TABLE> 
<S>                                                                                   <C> 
A = The Accumulated Value allocated to a Separate Account for the
        Valuation Date on or immediately preceding the seventh day
        before the Annuity Commencement Date.
     Assume.....................................................................  =   $20,000.00

B = The Annuity purchase rate per $1,000 based upon the option
        selected, the sex and adjusted age of the Annuitant
        according to the tables contained in the Contract.
     Assume.....................................................................  =        $6.40

                                           $20,000
Then, the first Monthly Variable Payment = ------- x $6.40 = $128.00                   
                                            $1,000
</TABLE> 

                                       15
<PAGE>
 
                                   EXAMPLE C

                    FORMULA AND ILLUSTRATION FOR DETERMINING
              THE NUMBER OF ANNUITY UNITS FOR ONE SEPARATE ACCOUNT
              REPRESENTED BY EACH MONTHLY VARIABLE ANNUITY PAYMENT

 
                           A
Number of Annuity Units = ---
                           B
 
Where:
<TABLE> 
<S>                                                                        <C>  
A = The dollar amount of the first monthly Variable Annuity Payment.
     Assume............................................................  = $      128.00
 
B = The Annuity Unit Value for the Valuation Date on or immediately
       preceding the seventh day before the Annuity Commencement Date.
     Assume............................................................  = $  1.09763000
 
Then, the number of Annuity Units =   $123.00   =  116.61488844
                                    -----------
                                    $1.09763000
</TABLE>


                                   EXAMPLE D

                    FORMULA AND ILLUSTRATION FOR DETERMINING
              THE AMOUNT OF SECOND AND SUBSEQUENT MONTHLY VARIABLE
                   ANNUITY PAYMENTS FROM ONE SEPARATE ACCOUNT


Second Monthly Variable Annuity Payment = A x B

Where:
<TABLE> 
<S>                                                                        <C> 
A = The Number of Annuity Units represented by each monthly
       Variable Annuity Payment.
     Assume ...........................................................  =  116.61488844

B = The Annuity Unit Value for the Valuation Date on or immediately
       preceding the seventh day before the date on which the
       second (or subsequent) Variable Annuity Payment is due.
     Assume ..........................................................   =   $1.11834234

Then, the second monthly Variable Annuity Payment = 116.61488844 x $1.11834234 = $130.42
</TABLE> 

The above example was based upon the assumption of an increase in the Annuity
Unit Value since the initial Variable Annuity Payment due to favorable
investment results of the Separate Account and the Fund.  If the investment
results were less favorable, a decrease in the Annuity Unit Value and in the
second monthly Variable Annuity Payment could result.  Assume B above was
$1.08103230.

Then, the second monthly Variable Annuity Payment = 116.61488844 x $1.08103230 =
$126.06

                                       16
<PAGE>
 
                              FINANCIAL STATEMENTS

                                      17
<PAGE>
 
               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


The Board of Directors
First Investors Life Insurance Company
New York, New York


     We have audited the statement of assets and liabilities of First Investors
Life Variable Annuity Fund C (a separate account of First Investors Life
Insurance Company, registered as a unit investment trust under the Investment
Company Act of 1940), as of December 31, 1994, and the related statements of
operations for the year then ended and changes in net assets for each of the two
years in the period then ended.  These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

     We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of First Investors Life
Variable Annuity Fund C as of December 31, 1994, and the results of its
operations for the year then ended and the changes in its net assets for each of
the two years in the period then ended, in conformity with generally accepted
accounting principles.

                                        TAIT, WELLER & BAKER



Philadelphia, Pennsylvania
February 21, 1995

                                      18
<PAGE>
 
                              FIRST INVESTORS LIFE
                            VARIABLE ANNUITY FUND C

                      STATEMENT OF ASSETS AND LIABILITIES

                               DECEMBER 31, 1994
<TABLE>
<CAPTION>
 
 
ASSETS
<S>                                                           <C>
 Investments at net asset value (Note 3):
  First Investors Life Series Fund..........................  $121,706,424
 
LIABILITIES
 Payable to First Investors Life Insurance Company..........       103,404
                                                              ------------
 
NET ASSETS..................................................  $121,603,020
                                                              ============
 
Net assets represented by Contracts in accumulation period..  $121,603,020
                                                              ============
</TABLE>

See notes to financial statements.

                                      19
<PAGE>
 
                              FIRST INVESTORS LIFE
                            VARIABLE ANNUITY FUND C

                            STATEMENT OF OPERATIONS

                          YEAR ENDED DECEMBER 31, 1994

<TABLE>
<CAPTION>
INVESTMENT INCOME
<S>                                       <C>
 Income:
  Dividends.............................   $2,111,366
                                           ----------
 
    Total income........................    2,111,366
                                           ----------
 
 Expenses:
  Mortality and expense risks (Note 4)..    1,077,119
                                           ----------
 
    Total expenses......................    1,077,119
                                           ----------
 
NET INVESTMENT INCOME...................    1,034,247
                                           ----------
 
UNREALIZED APPRECIATION ON INVESTMENTS
 Beginning of year......................    9,627,210
 End of year............................    5,266,578
                                           ----------
Change in unrealized appreciation 
 on investments.........................   (4,360,632)
                                          ----------- 

NET DECREASE IN NET ASSETS RESULTING 
 FROM OPERATIONS........................  $(3,326,385)
                                          ===========
</TABLE>


See notes to financial statements.
                                      20
<PAGE>
 
                              FIRST INVESTORS LIFE
                            VARIABLE ANNUITY FUND C

                      STATEMENTS OF CHANGES IN NET ASSETS

                            YEARS ENDED DECEMBER 31,

<TABLE>
<CAPTION>
                                                                          1994           1993
                                                                      -------------  ------------
<S>                                                                   <C>            <C>
Increase (Decrease) in Net Assets
 From Operations
  Net investment income.............................................  $  1,034,247   $ 1,683,381
  Change in unrealized appreciation on investments..................    (4,360,632)    5,398,788
                                                                      ------------   -----------
 
  Net increase (decrease)  in net assets resulting from operations..    (3,326,385)    7,082,169
                                                                      ------------   -----------
 
 From Unit Transactions
  Net insurance premiums............................................    43,974,468    35,778,746
  Contract payments.................................................    (8,918,667)   (6,227,294)
                                                                      ------------   -----------
 
  Increase in net assets derived from unit transactions.............    35,055,801    29,551,452
                                                                      ------------   -----------
 
   Net increase in net assets.......................................    31,729,416    36,633,621
 
Net Assets
 Beginning of year..................................................    89,873,604    53,239,983
                                                                      ------------   -----------
 End of year........................................................  $121,603,020   $89,873,604
                                                                      ============   ===========
</TABLE>

See notes to financial statements.

                                      21
<PAGE>
 
                              FIRST INVESTORS LIFE
                            VARIABLE ANNUITY FUND C

                         NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 1994

Note 1 - Organization

   First Investors Life Variable Annuity Fund C (Separate Account C), a unit
investment trust registered under the Investment Company Act of 1940 (the 1940
Act), is a segregated investment account established by First Investors Life
Insurance Company (FIL).  Assets of Separate Account C have been used to
purchase shares of First Investors Life Series Fund (the Fund), an open-end
diversified management investment company registered under the 1940 Act.

Note 2 - Significant Accounting Practices

   INVESTMENTS

   Shares of the Fund held by Separate Account C are valued at net asset value
per share.  All distributions received from the Fund are reinvested to purchase
additional shares of the Fund at net asset value.

   FEDERAL INCOME TAXES

   Separate Account C is not taxed separately because its operations are part of
the total operations of FIL, which is taxed as a life insurance company under
the Internal Revenue Code.  Separate Account C will not be taxed as a regulated
investment company under Subchapter M of the Code.  Under existing Federal
income tax law, no taxes are payable on the investment income or on the capital
gains of Separate Account C.

<TABLE>
<CAPTION>
Note 3 - Investments
Investments consist of the following:
                                                 NET ASSET     MARKET
                                       SHARES      VALUE       VALUE          COST
                                     ----------  ---------  ------------  ------------
<S>                                 <C>          <C>        <C>           <C>
First Investors Life Series Fund
  Cash Management.................    2,649,936     $ 1.00  $  2,649,936  $  2,649,936
  High Yield......................      822,265      10.58     8,702,132     8,529,376
  Growth..........................    1,267,029      16.73    21,195,610    20,353,493
  Discovery.......................      965,669      19.86    19,182,194    17,692,050
  Blue Chip.......................    2,121,060      13.75    29,167,224    26,855,260
  International Securities........    1,388,057      13.51    18,751,662    17,410,946
  Government......................      754,080       9.70     7,316,650     7,807,237
  Investment Grade................    1,012,160      10.31    10,435,187    10,721,316
  Utilities Income................      468,560       9.19     4,305,829     4,420,232
                                                            ------------  ------------
                                                            $121,706,424  $116,439,846
                                                            ============  ============
</TABLE>

   The High Yield Series' investments in high yield securities whether rated or
unrated may be considered speculative and subject to greater market fluctuations
and risks of loss of income and principal than lower yielding, higher rated,
fixed income securities.

Note 4 - Mortality and Expense Risks and Deductions

   In consideration for its assumption of the mortality and expense risks
connected with the Variable Annuity Contracts, FIL deducts an amount equal on an
annual basis to 1.00% of the daily net asset value of Separate Account C.  The
deduction for the year ended December 31, 1994 was $1,077,119.  An additional
administrative charge of $7.50 may be deducted annually by FIL from the
Accumulated Value of Deferred Annuity Contracts which have an Accumulated Value
of less than $1,500 due to partial surrenders.  There was no deduction under
this provision during 1994.

                                      22
<PAGE>
 
               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

The Board of Directors
First Investors Life Insurance Company
New York, New York

  We have audited the accompanying balance sheets of First Investors Life
Insurance Company as of December 31, 1994 and 1993, and the related statements
of income, stockholder's equity and cash flows for each of the three years in
the period ended December 31, 1994. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

  We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

  In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of First Investors Life Insurance
Company as of December 31, 1994 and 1993, and the results of its operations and
its cash flows for each of the three years in the period ended December 31,
1994, in conformity with generally accepted accounting principles.

  As discussed in notes 2 and 7 to the financial statements, the Company changed
its method of accounting for investments and its method of accounting for income
taxes.

                                                TAIT, WELLER & BAKER

Philadelphia, Pennsylvania
February 21, 1995

                                      23
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                                 BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                DECEMBER 31, 1994  DECEMBER 31,1993
                                                                -----------------  ----------------
<S>                                                             <C>                <C>
Investments (note 2):
 Available-for-sale securities................................       $103,898,007      $108,821,051
 Held-to-maturity securities..................................          5,990,367         5,973,791
 Short term investments.......................................          6,964,868         6,282,689
 Policy loans.................................................         14,686,101        12,884,321
                                                                     ------------      ------------
 
   Total investments..........................................        131,539,343       133,961,852
 
Cash..........................................................            977,113         2,384,714
Premiums and other receivables, net of allowances of
 $30,000 in 1994 and 1993.....................................          3,901,489         2,895,579
Accrued investment income.....................................          2,593,771         2,357,922
Deferred policy acquisition costs (note 6)....................         19,321,891        19,006,119
Deferred Federal income taxes (note 7)........................          1,884,000                 -
Furniture, fixtures and equipment, at cost, less accumulated
 depreciation of $697,010 in 1994 and $583,419 in 1993........            243,634           290,104
Other assets..................................................            193,780           171,506
Separate account assets.......................................        232,913,278       198,746,658
                                                                     ------------      ------------
 
   Total assets...............................................       $393,568,299      $359,814,454
                                                                     ============      ============
</TABLE>

                      LIABILITIES AND STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
LIABILITIES:
<S>                                                                  <C>               <C>
Policyholder account balances (note 6)...................            $115,256,764      $112,537,306
Claims and other contract liabilities....................              10,737,716        10,234,691
Deferred Federal income taxes (note 7)...................                       -         1,322,799
Accounts payable and accrued liabilities.................               3,463,635         2,799,156
Separate account liabilities.............................             232,913,278       198,746,658
                                                                     ------------      ------------
                                                                                     
   Total liabilities.....................................             362,371,393       325,640,610
                                                                     ------------      ------------
                                                                                     
STOCKHOLDER'S EQUITY:                                                                
Common Stock, par value $4.75; authorized,                                           
 issued and outstanding 534,350 shares...................               2,538,163         2,538,163
Additional paid in capital...............................               6,496,180         6,496,180
Unrealized holding gains (losses) on available-for-sale                              
 securities (note 2).....................................              (2,486,000)        3,050,000
Retained earnings........................................              24,648,563        22,089,501
                                                                     ------------      ------------
                                                                                     
   Total stockholder's equity............................              31,196,906        34,173,844
                                                                     ------------      ------------
                                                                                     
   Total liabilities and stockholder's equity............            $393,568,299      $359,814,454
                                                                     ============      ============
</TABLE>

See accompanying notes to financial statements.

                                     24
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                              YEAR ENDED         YEAR ENDED         YEAR ENDED
                                                          DECEMBER 31, 1994   DECEMBER 31,1993   DECEMBER 31,1992
                                                          ------------------  -----------------  -----------------
<S>                                                       <C>                 <C>                <C>
REVENUES
 Policyholder fees......................................        $16,433,269        $14,825,696        $13,539,529
 Premiums...............................................          7,630,182          8,141,342          8,394,282
 Investment income (note 2).............................          8,835,356          8,470,643          7,979,295
 Realized gain (loss) on fixed securities...............           (259,987)           318,372            616,505
 Other income...........................................            701,355            654,608            740,147
                                                                -----------        -----------        -----------
 
   Total income.........................................         33,340,175         32,410,661         31,269,758
                                                                -----------        -----------        -----------
 
BENEFITS AND EXPENSES
 Benefits and increases in contract liabilities.........         14,297,499         13,118,328         14,807,734
 Dividends to policyholders.............................            910,754            985,756            792,322
 Amortization of deferred acquisition costs (note 6)....          1,573,216          1,528,876          2,020,568
 Commissions and general expenses.......................         13,513,644         13,212,536         11,860,405
                                                                -----------        -----------        -----------
 
   Total benefits and expenses..........................         30,295,113         28,845,496         29,481,029
                                                                -----------        -----------        -----------
 
Income before Federal income tax, extraordinary
 item and cumulative effect of a change in
 accounting principle...................................          3,045,062          3,565,165          1,788,729
 
Federal income tax (note 7):
 Current................................................            838,000          1,425,000            589,000
 Deferred...............................................           (352,000)          (721,000)          (388,000)
                                                                -----------        -----------        -----------
 
                                                                    486,000            704,000            201,000
                                                                -----------        -----------        -----------
 
Income before extraordinary item and cumulative
 effect of a change in accounting principle.............          2,559,062          2,861,165          1,587,729
 
Extraordinary item
 Reduction of income taxes arising from carry-
  forward of prior years' capital losses (note 7).......                  -                  -             84,000
 
Cumulative effect on prior years
 of a change in accounting principle (note 7)...........                  -            540,000                  -
                                                                -----------        -----------        -----------
 
Net Income..............................................        $ 2,559,062        $ 3,401,165        $ 1,671,729
                                                                ===========        ===========        ===========
 
Income per share, based on 534,350 shares outstanding
Income before extraordinary item and cumulative effect
 of a change in accounting principle....................              $4.79              $5.35              $2.97
Extraordinary item......................................                  -                  -               0.16
Cumulative effect of a change in accounting principle...                  -               1.01                  -
                                                                -----------        -----------        -----------
                                                                      $4.79              $6.36              $3.13
                                                               ============        ===========        ===========
</TABLE> 

See accompanying notes to financial statements.

                                      25
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                       STATEMENTS OF STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
                                                             YEAR ENDED         YEAR ENDED         YEAR ENDED
                                                         DECEMBER 31, 1994   DECEMBER 31, 1993  DECEMBER 31, 1992
                                                         ------------------  -----------------  -----------------
<S>                                                      <C>                 <C>                <C>
Balance at beginning of year........................        $34,173,844         $27,722,679        $26,050,950
Net income..........................................          2,559,062           3,401,165          1,671,729
Increase (decrease) in unrealized holding gains on
 available-for-sale securities......................         (5,536,000)          3,050,000                  -
                                                            -----------         -----------        -----------
Balance at end of year..............................        $31,196,906         $34,173,844        $27,722,679
                                                            ===========         ===========        ===========
</TABLE>
                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                             YEAR ENDED         YEAR ENDED         YEAR ENDED
                                                         DECEMBER 31, 1994   DECEMBER 31, 1993  DECEMBER 31, 1992
                                                         ------------------  -----------------  -----------------
<S>                                                      <C>                 <C>                <C>
Increase (decrease) in cash:
 Cash flows from operating activities:
 Policyholder fees received.............................    $ 16,433,269        $ 14,825,696       $ 13,348,516
 Premiums received......................................       7,366,276           7,996,528          8,762,066
 Amounts received on policyholder accounts..............      63,526,544          52,654,219         48,848,930
 Investment income received.............................       8,886,847           8,583,113          8,058,852
 Other receipts.........................................          46,581              44,193             64,286
 Benefits and contract liabilities paid.................     (75,131,594)        (61,360,490)       (55,561,535)
 Commissions and general expenses paid..................     (15,252,935)        (15,866,354)       (15,201,932)
                                                            ------------        ------------       ------------
 
  Net cash provided by (used for) operating activities..       5,874,988           6,876,905          8,319,183
                                                            ------------        ------------       ------------
                                                                                                
 Cash flows from investing activities:                                                          
 Proceeds from sale of investment securities............      36,751,082          36,063,998         63,809,981
 Purchase of investment securities......................     (42,164,770)        (39,148,690)       (71,248,339)
 Purchase of furniture, equipment and other assets......         (67,121)            (40,227)           (40,937)
 Net increase in policy loans...........................      (1,801,780)         (1,941,256)        (1,935,775)
                                                            ------------        ------------       ------------
                                                                                                
  Net cash provided by (used for) investing activities..      (7,282,589)         (5,066,175)        (9,415,070)
                                                            ------------        ------------       ------------
                                                                                                
  Net increase (decrease) in cash.......................      (1,407,601)          1,810,730         (1,095,887)
                                                                                                
Cash                                                                                            
 Beginning of year......................................       2,384,714             573,984          1,669,871
                                                            ------------        ------------       ------------
 End of year............................................    $    977,113        $  2,384,714       $    573,984
                                                            ============        ============       ============
</TABLE>

The Company paid Federal income tax of $1,368,000 in 1994, $1,265,000 in 1993
and $336,027 in 1992.

See accompanying notes to financial statements.

                                      26
<PAGE>
 
                    FIRST INVESTORS LIFE INSURANCE  COMPANY
                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                           YEAR ENDED          YEAR ENDED          YEAR ENDED
                                                       DECEMBER 31, 1994   DECEMBER 31, 1993   DECEMBER 31, 1992
                                                       ------------------  ------------------  ------------------
<S>                                                    <C>                 <C>                 <C>
Reconciliation of net income to net cash
 provided by (used for) operating activities:
 
 Net income..........................................        $ 2,559,062         $ 3,401,165         $ 1,671,729
 
 Adjustments to reconcile net income to net cash
    provided by (used for) operating activities:
  Depreciation and amortization......................            122,199             118,365             132,156
  Amortization of deferred policy acquisition costs..          1,573,216           1,528,876           2,020,568
  Realized investment (gains) losses.................            259,987            (318,372)           (616,505)
  Amortization of premiums and discounts on fixed
    maturities.......................................            287,340             299,666             237,033
  Deferred Federal income taxes......................           (352,000)           (721,000)           (388,000)
  Cumulative effect of a change in
    accounting principle.............................                  -            (540,000)                  -
  Other items not requiring cash - net...............               (149)             (1,908)             13,602
 
 (Increase) decrease in:
  Premiums and other receivables, net................         (1,055,910)          1,683,261           2,754,443
  Accrued investment income..........................           (235,849)           (187,196)           (157,476)
  Deferred policy acquisition costs, exclusive
    of amortization..................................         (1,138,988)         (1,254,547)         (2,025,766)
  Other assets.......................................            (30,882)            (13,108)            (68,169)
 
 Increase (decrease) in:
  Policyholder account balances......................          2,719,458           1,268,788           3,999,801
  Claims and other contract liabilities..............            503,025           1,903,908             532,229
  Accounts payable and accrued liabilities...........            664,479            (290,993)            213,538
                                                             -----------         -----------         -----------
                                                             $ 5,874,988         $ 6,876,905         $ 8,319,183
                                                             ===========         ===========         ===========
</TABLE>

See accompanying notes to financial statements.

                                      27
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                         NOTES TO FINANCIAL STATEMENTS

Note 1 - Basis of Financial Statements

  The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles (GAAP). Such basis of presentation
differs from statutory accounting practices permitted or prescribed by insurance
regulatory authorities primarily in that:

 (a)  policy reserves are computed according to the Company's estimates of
mortality, investment yields, withdrawals and other benefits and expenses,
rather than on the statutory valuation basis;

 (b)  certain expenditures, principally for furniture and equipment and agents'
debit balances, are recognized as assets rather than being non-admitted and
therefore charged to retained earnings;

 (c)  commissions and other costs of acquiring new business are recognized as
deferred acquisition costs and are amortized over the premium paying period of
policies and contracts, rather than charged to current operations when incurred;

 (d)  income tax effects of temporary differences, relating primarily to policy
reserves and acquisition costs, are provided;

 (e)  the statutory asset valuation and interest maintenance reserves are
reported as retained earnings rather than as liabilities;

Note 2 - Other Significant Accounting Practices

 (a)  Depreciation.  Depreciation is computed on the useful service life of the
depreciable asset using the straight line method of depreciation.

 (b)  Investments.  The Company adopted Statement of Financial Accounting
Standards No. 115, "Accounting For Certain Investments in Debt and Equity
Securities ("SFAS 115"), effective December 31, 1993.  SFAS 115 requires that
investments in equity securities that have readily determinable fair values and
all investments in debt securities be classified in three separate categories
and accounted for as follows:

HELD-TO-MATURITY SECURITIES

Debt securities the Company has the positive intent and ability to hold to
maturity are recorded at amortized cost.

TRADING SECURITIES

Debt and equity securities that are held principally for the purpose of selling
such securities in the near term are recorded at fair value with unrealized
gains and losses included in earnings.

AVAILABLE-FOR-SALE SECURITIES

Debt and equity securities not classified in the other two categories are
recorded at fair value with unrealized gains and losses excluded from earnings
and reported as "unrealized holding gains or losses on available-for-sale
securities" in stockholder's equity.

 Prior to 1993, all long-term investment securities were stated at amortized
cost.

 Short term investments are reported at market value which approximates cost.

                                      28
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)


  Gains and losses on sales of investments are determined using the specific
identification method.    Investment income for the years indicated consists of
the following:

<TABLE>
<CAPTION>
                                         YEAR ENDED         YEAR ENDED        YEAR ENDED
                                      DECEMBER 31, 1994  DECEMBER 31,1993  DECEMBER 31,1992
                                      -----------------  ----------------  ----------------
<S>                                   <C>                <C>               <C>
Interest on fixed maturities........         $8,091,627        $7,844,723        $6,835,037
Interest on short term investments..            225,682           232,244           792,479
Interest on policy loans............            886,465           771,082           645,485
Dividends on equity securities......             10,220                 -                 -
                                             ----------        ----------        ----------
 
 Total investment income............          9,213,994         8,848,049         8,273,001
 Investment expense.................            378,638           377,406           293,706
                                             ----------        ----------        ----------
 
Net investment income...............         $8,835,356        $8,470,643        $7,979,295
                                             ==========        ==========        ==========
</TABLE>

                                      29
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

  The amortized cost and estimated market values of investments at December 31,
1994 and 1993 are as follows:

<TABLE>
<CAPTION>
                                                              GROSS        GROSS      ESTIMATED
                                               AMORTIZED    UNREALIZED   UNREALIZED     MARKET
                                                  COST        GAINS        LOSSES       VALUE
                                              ------------  ----------   ----------  ------------
<S>                                           <C>           <C>          <C>         <C>
Available-For-Sale Securities                                           
- -----------------------------                                           
December 31, 1994                                                       
- -----------------                                                       
  U.S. Treasury Securities and obligations                              
   of U.S. Government Corporations                                      
   and Agencies.............................  $ 49,362,608  $    5,901   $1,541,620  $ 47,826,889
  Debt Securities issued by                                             
   States of the U.S........................     3,910,143           -      379,945     3,530,198
  Corporate Debt Securities.................    53,768,481      86,359    2,578,037    51,276,803
  Equity Securities.........................       500,000           -       15,000       485,000
  Other Debt Securities.....................       873,777       1,801       96,461       779,117
                                              ------------  ----------   ----------  ------------
                                              $108,415,009  $   94,061   $4,611,063  $103,898,007
                                              ============  ==========   ==========  ============
December 31,1993                                                        
- ----------------                                                        
  U.S. Treasury Securities and obligations                              
   of U.S. Government Corporations                                      
   and Agencies.............................  $ 49,405,229  $2,528,521   $        -  $ 51,933,750
  Debt Securities issued by                                             
   States of the U.S........................     4,085,000      26,292            -     4,111,292
  Corporate Debt Securities.................    49,330,996   2,110,508      100,808    51,340,696
  Other Debt Securities.....................     1,376,028      59,285            -     1,435,313
                                              ------------  ----------   ----------  ------------
                                              $104,197,253  $4,724,606   $  100,808  $108,821,051
                                              ============  ==========   ==========  ============
</TABLE>

          At December 31, 1994 and 1993, the Company recognized "Unrealized
Holding Gains (Losses) on Available-For-Sale Securities" of ($2,486,000) and
$3,050,000, net of applicable deferred income taxes and amortization of deferred
acquisition costs.  The change in the Unrealized Holding Gains (Losses) of
($5,536,000) and $3,050,000 for 1994 and 1993, respectively is reported as a
separate component of stockholder's equity.
<TABLE>
<CAPTION>
 
Held-To-Maturity Securities
- ---------------------------
<S>                                           <C>           <C>          <C>         <C>
December 31, 1994
- -----------------
  U.S. Treasury Securities and obligations
   of U.S. Government Corporations
   and Agencies.............................  $  3,380,367  $    4,873   $   56,807  $  3,328,433
  Corporate Debt Securities.................     2,000,000           -      324,020     1,675,980
  Other Debt Securities.....................       610,000           -            -       610,000
                                              ------------  ----------   ----------  ------------
                                              $  5,990,367  $    4,873   $  380,827  $  5,614,413
                                              ============  ==========   ==========  ============
December 31, 1993      
- -----------------
  U.S. Treasury Securities and obligations
   of U.S. Government Corporations
   and Agencies.............................  $  3,163,791  $  121,583   $      124  $  3,285,250
  Corporate Debt Securities.................     2,000,000           -            -     2,000,000
  Other Debt Securities.....................       810,000           -            -       810,000
                                              ------------  ----------   ----------  ------------
                                              $  5,973,791  $  121,583   $      124  $  6,095,250
                                              ============  ==========   ==========  ============
</TABLE>               

                                      30
<PAGE>
 
                          FIRST INVESTORS LIFE INSURANCE COMPANY
                        NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                      
                       
  The amortized cost and estimated market value of debt securities at December
31, 1994, by contractual maturity, are shown below.  Expected maturities will
differ from contractual maturities because borrowers may have the right to call
or prepay obligations with or without call or prepayment penalties.

<TABLE>                
<CAPTION>              
                                              HELD TO MATURITY          AVAILABLE FOR SALE
                                          ------------------------  --------------------------
                                          AMORTIZED    ESTIMATED     AMORTIZED     ESTIMATED
                                             COST     MARKET VALUE      COST      MARKET VALUE
                                          ----------  ------------  ------------  ------------
<S>                                       <C>         <C>           <C>           <C>
Due in one year or less.................  $1,402,857    $1,406,636  $  5,349,646  $  5,338,348
Due after one year through five years...   2,005,617     1,975,524    54,476,425    54,091,139
Due after five years through ten years..     581,893       556,273    43,764,673    40,099,497
Due after ten years.....................   2,000,000     1,675,980     4,324,265     3,884,023
                                          ----------    ----------  ------------  ------------
                                          $5,990,367    $5,614,413  $107,915,009  $103,413,007
                                          ==========    ==========  ============  ============
</TABLE>

  Proceeds from sales of investments in fixed maturities were $36,701,082,
$35,352,716 and $36,006,795 in 1994, 1993 and 1992, respectively. Gross gains of
$ 85,827 and gross losses of $345,814 were realized on those sales in 1994.
Gross gains of $397,829 and gross losses of $79,457 were realized on those sales
in 1993. Gross gains of $756,291 and gross losses of $139,786 were realized on
those sales in 1992.

  (c) Recognition of Revenue, Policyholder Account Balances and Policy Benefits

     TRADITIONAL ORDINARY LIFE AND HEALTH

          Revenues from the traditional life insurance policies represent
     premiums which are recognized as earned when due. Health insurance premiums
     are recognized as revenue over the time period to which the premiums
     relate. Benefits and expenses are associated with earned premiums so as to
     result in recognition of profits over the lives of the contracts. This
     association is accomplished by means of the provision for liabilities for
     future policy benefits and the deferral and amortization of policy
     acquisition costs.

     UNIVERSAL LIFE AND VARIABLE LIFE

          Revenues from universal life and variable life policies represent
     amounts assessed against policyholders. Included in such assessments are
     mortality charges, surrender charges and policy service fees.

          Policyholder account balances on universal life consist of the
     premiums received plus credited interest, less accumulated policyholder
     assessments. Amounts included in expense represent benefits in excess of
     policyholder account balances.  The value of policyholder accounts on
     variable life are included in separate account liabilities as discussed
     below.

     ANNUITIES

          Revenues from annuity contracts represent amounts assessed
     against contractholders. Such assessments are principally sales charges,
     administrative fees, and in the case of variable annuities, mortality and
     expense risk charges. The carrying value and fair value of fixed annuities
     are equal to the policyholder account balances, which represent the net
     premiums received plus accumulated interest.

                                      31
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                        
  (d) Separate Accounts.  Separate account assets and the related liabilities,
both of which are valued at market, represent segregated variable annuity and
variable life contracts maintained in accounts with individual investment
objectives. All investment income (gains and losses of these accounts) accrues
directly to the contractholders and therefore does not affect net income of the
Company.

  (e) Reclassifications.  Certain reclassifications have been made to the 1992
and1993 Financial Statements in order to conform to the 1994 presentation.

Note 3 - Fair Value of Financial Instruments

  The carrying amounts for cash, short-term investments and policy loans as
reported in the accompanying balance sheet approximate their fair values.  The
fair values for fixed maturities and equity-securities are based upon quoted
market prices, where  available or are estimated using values from independent
pricing services.

  The carrying amounts for the Company's liabilities under investment-type
contracts approximate their fair values because interest rates credited to
account balances approximate current rates paid on similar investments and are
generally not guaranteed beyond one year.  Fair values for the Company's
insurance contracts other than investment-type contracts are not required to be
disclosed.  However, the fair values of liabilities for all insurance contracts
are taken into consideration in the overall management of interest rate risk,
which minimizes exposure to changing interest rates.

Note 4 - Retirement Plans

  The Company has a non-contributory profit sharing plan for the benefit of its
employees which provides for retirement benefits based upon earnings.  Vesting
of benefits is based upon years of service.  The Company did not make profit
sharing contributions in 1994, 1993 and 1992.

  The Company also has a non-contributory retirement plan for the benefit of its
sales agents.  The plan provides for retirement benefits based upon commission
on first-year premiums and length of service.  The plan is unfunded.  Vesting of
benefits is based upon graduated percentages dependent upon the number of
allocations made in accordance with the plan by the Company for each
participant.  The Company charged to operations pension expenses of
approximately $312,000 in 1994, $292,000 in 1993 and $324,000 in 1992.  The
accrued liability of approximately $2,415,000 in 1994 and $2,194,000 in 1993 was
sufficient to cover the value of benefits provided by the plan.

Note 5 - Commitments and Contingent Liabilities

  The Company has agreements with affiliates and non-affiliates as follows:

  (a) The Company's maximum retention on any one life is $100,000.  The Company
reinsures a portion of its risk with other insurance companies and reserves are
reduced by the amount of reserves for such reinsured risks.  The Company is
liable for any obligations which any reinsurance company may be unable to meet.
The Company had reinsured approximately 10%, 10% and 11% of its net life
insurance in force at December 31, 1994, 1993 and 1992, respectively.  The
Company also had assumed reinsurance amounting to approximately 21%, 22% and 16%
of its net life insurance in force at the respective year ends.  None of these
transactions had any material effect on the Company's operating results.

  (b) The Company and certain affiliates share office space, data processing
facilities and management personnel.  Charges for these services are based upon
space occupied, usage of data processing facilities and time allocated to
management.  During the years ended December 31, 1994, 1993 and 1992, the
Company paid approximately $1,099,000, $1,187,000 and $1,138,000, respectively,
for these services.  In addition, the Company reimbursed an affiliate
approximately $196,000 in 1993 and $330,000  in 1992 for its share of the cost
of the branch offices and approximately $6,651,000 in 1994, $5,510,000 in 1993
and $4,054,000 in 1992 for commissions relating to the sale of its products.

                                      32
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

  (c) The Company is subject to certain claims and lawsuits arising in the
ordinary course of business.  In the opinion of management, all such claims
currently pending will not have a material adverse effect on the financial
position of the Company or its results of operations.

Note 6 - Adjustments Made to Statutory Accounting Practices

  Note 1 describes some of the common differences between statutory practices
and generally accepted accounting principles.  The effects of these differences
for the years ended December 31, 1994, 1993 and 1992 are shown in the following
table in which net income and capital shares and surplus reported therein on a
statutory basis are adjusted to a GAAP basis.
<TABLE>
<CAPTION>
                                                           NET INCOME                       CAPITAL SHARES AND SURPLUS
                                                      YEAR ENDED DECEMBER 31                       AT DECEMBER 31
                                              -------------------------------------  -------------------------------------------
                                                 1994         1993         1992          1994           1993            1992
                                              -----------  -----------  -----------  ------------  ---------------  ------------
<S>                                           <C>          <C>          <C>          <C>           <C>              <C>
Reported on a statutory basis...............  $2,205,814   $1,682,537   $  766,657   $18,020,531      $15,933,807   $14,006,335
                                              ----------   ----------   ----------   -----------      -----------   -----------
Adjustments:
Deferred policy acquisition costs (b).......    (434,228)    (274,329)       5,198    19,321,891       19,006,119    19,280,448
Future policy benefits (a)..................     727,849      669,990      507,899    (3,334,870)      (4,062,719)   (4,732,709)
Deferred income taxes.......................    352, 000    1,261,435      388,000     1,884,000       (1,322,799)   (1,010,435)
Premiums due and deferred (e)...............      70,968       11,558     (269,429)   (1,524,702)      (1,595,669)   (1,607,227)
Cost of collection and other statutory
  liabilities...............................     (32,454)       8,598       28,108        65,585           98,039        89,441
Non-admitted assets.........................           -            -            -       385,500          423,038       778,635
Asset valuation reserve.....................           -            -            -       901,041          744,264       632,129
Interest maintenance reserve................     (71,048)    (222,809)    (175,511)       (5,070)         325,965       286,062
Gross unrealized holding gains (losses) on
 available-for-sale securities..............           -            -            -    (4,517,000)       4,623,799             -
Net realized capital gains (losses).........    (259,987)     262,712      461,573             -                -             -
Other.......................................         148        1,473      (40,766)            -                -             -
                                              ----------   ----------   ----------   -----------      -----------   -----------
                                                 353,248    1,718,628      905,072    13,176,375       18,240,037    13,716,344
                                              ----------   ----------   ----------   -----------      -----------   -----------
In accordance with generally accepted
accounting principles.......................  $2,559,062   $3,401,165   $1,671,729   $31,196,906      $34,173,844   $27,722,679
                                              ==========   ==========   ==========   ===========      ===========   ===========
Per share, based on 534,350 shares
outstanding.................................       $4.79        $6.36        $3.13        $58.38           $63.95        $51.88
                                              ==========   ==========   ==========   ===========      ===========   ===========
</TABLE>
                                      33
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

  The following is a description of the significant policies used to adjust the
net income and capital shares and surplus from a statutory to a GAAP basis.

  (a) Liabilities for future policy benefits have been computed primarily by the
net level premium method with assumptions as to anticipated mortality,
withdrawals and investment yields.  The composition of the policy liabilities
and the more significant assumptions pertinent thereto are presented below:
<TABLE>
<CAPTION>
 
           DISTRIBUTION OF LIABILITIES*                                   BASIS OF ASSUMPTIONS
- --------------------------------------------------  --------------------------------------------------------------
                                        YEARS
        1994              1993         OF ISSUE       INTEREST               MORTALITY TABLE            WITHDRAWAL
- --------------------  -------------  -------------  --------------  ----------------------------------  ----------
<S>                   <C>            <C>            <C>             <C>                                 <C>
Non-par:
    $ 1,721,636         $ 1,746,952   1962-1967             4 1/2%  1955-60 Basic Select plus Ultimate  Linton B
      5,764,026           5,889,653   1968-1988             5 1/2%  1955-60 Basic Select plus Ultimate  Linton B
      2,583,886           2,551,830   1984-1988             7 1/2%  85% of 1965-70 Basic Select         Modified
                                                                    plus Ultimate                       Linton B
         62,830              51,486   1989-Present          7 1/2%  1975-80 Basic Select plus Ultimate  Linton B
         99,022              86,776   1989-Present          7 1/2%  1975-80 Basic Select plus Ultimate  Actual
         41,021              44,040   1989-Present              8%  1975-80 Basic Select plus Ultimate  Actual
     31,043,074          29,886,814   1985-Present              6%  Accumulation of Funds               -
Par:                                                       
        232,295             233,940   1966-1967             4 1/2%  1955-60 Basic Select plus Ultimate  Linton A
     13,696,383          13,238,049   1968-1988             5 1/2%  1955-60 Basic Select plus Ultimate  Linton A
      1,037,503             973,551   1981-1984             7 1/4%  90% of 1965-70 Basic Select
                                                                    plus Ultimate                       Linton B
      4,634,783           4,457,912   1983-1988             9 1/2%  80% of 1965-70 Basic Select
                                                                    plus Ultimate                       Linton B
      9,922,152           7,509,240   1990-Present              8%  66% of 1975-80 Basic Select
                                                                    plus Ultimate                       Linton B
Annuities:                                                 
     32,707,541          35,905,357   1976-Present          5 1/2%  Accumulation of Funds               -
                                      
Miscellaneous:                        
     12,776,574          11,081,764   1962-Present   2 1/2%-3 1/2%  1958-CSO                            None
</TABLE>

- ----------------
*  The above amounts are before deduction of deferred premiums of $1,065,962 in
   1994 and $1,120,058 in 1993.

  (b) The costs of acquiring new business, principally commissions and related
agency expenses, and certain costs of issuing policies, such as medical
examinations and inspection reports, all of which vary with and are primarily
related to the production of new business, have been deferred.  Costs deferred
on universal life and variable life are amortized as a level percentage of the
present value of anticipated gross profits resulting from investment yields,
mortality and surrender charges.  Costs deferred on traditional ordinary life
and health are amortized over the premium-paying period of the related policies
in proportion to the ratio of the annual premium revenue to the total
anticipated premium revenue.  Anticipated premium revenue was estimated using
the same assumptions which were used for computing liabilities for future policy
benefits.  Amortization of $1,573,216 in 1994, $1,528,876 in 1993 and $2,020,568
in 1992 was charged to operations.

                                      34
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

  (c) Participating business represented 11.9% and 12.4% of individual life
insurance in force at December 31, 1994 and 1993, respectively.

  The Board of Directors annually approves a dividend formula for calculation of
dividends to be distributed to participating policyholders.

  The portion of earnings of participating policies that can inure to the
benefit of shareholders is limited to the larger of 10% of such earnings or $.50
per thousand dollars of participating insurance in force.  Earnings in excess of
that limit must be excluded from shareholders' equity by a charge against
operations.  No such charge has been made, since participating business has
operated at a loss to date on a statutory basis.  It is anticipated, however,
that the participating lines will be profitable over the lives of the policies.

  (d) New York State insurance law prohibits the payment of dividends to
stockholders from any source other than the statutory unassigned surplus.  The
amount of said surplus was $8,235,339, $6,148,130 and $4,220,653 at December 31,
1994, 1993 and 1992, respectively.

  (e) Statutory due and deferred premiums are adjusted to conform to the
expected premium revenue used in computing future benefits and deferred policy
acquisition costs.  In this regard, the GAAP due premium is recorded as an asset
and the GAAP deferred premium is applied against future policy benefits.

Note 7 - Federal Income Taxes

  The Company joins with its parent company and other affiliated companies in
filing a consolidated Federal income tax return.  The provision for Federal
income taxes is determined on a separate company basis.

  Retained earnings at December 31, 1994 included approximately $146,000 which
is defined as "policyholders' surplus" and may be subject to Federal income tax
at ordinary corporate rates under certain future conditions, including
distributions to stockholders.

  The Company adopted Statement of Financial Accounting Standards No. 109,
"Accounting For Income Taxes" ("SFAS 109"), effective January 1, 1993.  SFAS 109
is an asset and liability approach that requires the recognition of deferred tax
assets and liabilities for the expected future tax consequences of events that
have been recognized in the Company's financial statements or tax returns.
Financial statements for the prior years have not been restated and the
cumulative effect of the accounting change as of January 1, 1993 was to increase
earnings by $540,000.  This amount is reflected in the 1993 accompanying
Statement of Income as the cumulative effect of a change in accounting
principle.  It primarily represents the impact of adjusting deferred taxes to
reflect the current tax rate of 34% as opposed to the tax rates that were in
effect when the deferred taxes were originally recorded.

  Prior to 1993, the company provided for deferred income taxes based upon
timing differences between financial statement income and taxable income.

                                      35
<PAGE>
 
                     FIRST INVESTORS LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)


 Deferred tax liabilities (assets) are comprised of the following:

<TABLE>
<CAPTION>
                                                                           1994           1993
                                                                       -------------  ------------
<S>                                                                    <C>            <C>
Policyholder dividend provision......................................   $  (309,818)  $  (317,722)
Non-qualified agents' pension plan reserve...........................      (967,466)     (890,532)
Deferred policy acquisition costs....................................     3,521,550     4,061,347
Future policy benefits...............................................    (2,862,789)   (3,111,454)
Bond discount........................................................        20,182        13,534
Unrealized holding gains  (losses) on Available-For-Sale Securities..    (1,281,000)    1,573,798
Other................................................................        (4,659)       (6,172)
                                                                        -----------   -----------
                                                                        $(1,884,000)  $ 1,322,799
                                                                        ===========   ===========
</TABLE>
  The currently payable Federal income tax provision of $838,000 for 1994 is net
of a $102,000 Federal tax benefit resulting from a capital loss carryback of
$259,987.

  A reconciliation of the Federal statutory income tax rate to the Company's
effective tax rate is as follows:

<TABLE>
<CAPTION>
                                                      1994   1993   1992
                                                      -----  -----  -----
<S>                                                   <C>    <C>    <C>
Application of statutory tax rate...................    34%    34%    34%
Special tax deduction for life insurance companies..   (18)   (16)   (18)
Other...............................................     -      2     (5)
                                                      ----   ----   ----
                                                        16%    20%    11%
                                                      ====   ====   ====
</TABLE>

          The Company utilized approximately $616,000 of capital losss carry
forwards during 1992, which resulted in tax savings of $84,000.  This tax
savings is classified as an extraordinary item in the accompanying 1992
Statement of Income.

                                      36
<PAGE>
 
                  FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C

                           PART C:  OTHER INFORMATION


ITEM 24.  Financial Statement and Exhibits

     (a)  Financial Statements:

          The financial statements for the period ending December 31, 1994 for
          First Investors Life Insurance Company and First Investors Life
          Variable Annuity Fund C are included in Part B, except Condensed
          Financial Information on Accumulation Unit Values, which is included
          in Part A.

     (b)  Exhibits:

          1./1/  Resolution of the Board of Directors of First Investors Life
                 Insurance Company creating Separate Account C
 
          2./1/  Safekeeping Agreement between First Investors Life  Insurance
                 Company and United States Trust Company of New York

          3.     Distribution Contracts:

                 (a)/1/  Underwriting Agreement between First Investors Life
                         Insurance Company and First Investors Corporation

                 (b)/1/  Specimen Variable Annuity Dealer Agreement between 
                         First Investors Corporation and dealers

                 (c)/1/  Specimen Registered Representatives Agreement between 
                         First Investors Corporation and Registered
                         Representatives

                 (d)/1/  Schedules of sales commissions

          4./1/  Specimen Individual Variable Annuity Contract issued by First
                 Investors Life Insurance Company for participation in Separate
                 Account C

          5./1/  Form of application used with Individual Variable  Annuity
                 Contracts provided in response to (4) above

          6.     (a)/2/  Declaration of Intention and Charter of First Investors
                         Life Insurance Company, together with all Amendments

                                      C-1
<PAGE>
 
                 (b)/2/  By-laws of First Investors Life Insurance Company

          7.     Not applicable

          8.     Not applicable

          9./5/  Opinion of counsel

         10.     (a)     Consent of Independent Public Accountants

                 (b)/4/  Powers of Attorney

                 (c)/3/  Exemptive Order

         11.     Not applicable

         12.     Not applicable

         13.     Performance Calculations

- ----------------
 1  Incorporated by reference from Registrant's Registration Statement (File No.
    33-33419) filed on February 9, 1990.
 2  Incorporated by reference from Pre-Effective Amendment No. 2 to Registrant's
    Registration Statement (File No. 33-33419) filed on June 28, 1990.
 3  Incorporated by reference from Post-Effective Amendment No. 1 to
    Registrant's Registration Statement (File No. 33-33419) filed on April
    26, 1991.
 4  Incorporated by reference from Post-Effective Amendment No. 4 to
    Registrant's Registration Statement (File No. 33-33419) filed on April
    30, 1993. 
    
 5  Incorporated by reference from Registrant's Rule 24f-2 Notice for its fiscal
    year ending December 31, 1994 filed on February 22, 1995.      

                                      C-2
<PAGE>
 
ITEM 25.  Directors and Officers of First Investors Life Insurance Company

<TABLE> 
<CAPTION> 
                                     Position and Office
Name and Principal                   with First Investors
Business Address                     Life Insurance Company
- -------------------------            -------------------------
<S>                                  <C> 
Lawrence M. Falcon                   Senior Vice President
95 Wall Street                       and Comptroller
New York, NY  10005

Richard H. Gaebler                   President and Director
95 Wall Street
New York, NY  10005

Jay G. Baris                         Director
919 Third Avenue
New York, NY  10022

William H. Drinkwater                First Vice President
95 Wall Street                       and Chief Actuary
New York, NY  10005

George V. Ganter                     Director
95 Wall Street
New York, NY 10005

Glenn O. Head                        Chairman and Director
95 Wall Street
New York, NY  10005

Scott Hodes                          Director
Ross & Hardies
150 N. Michigan Avenue
Chicago, IL  60601

Carol Lerner Brown                   Secretary
95 Wall Street
New York, NY  10005

F. Van S. Parr                       Director
Whitman & Ransom
522 Fifth Avenue
New York, NY  10036

Jackson Ream                         Director
NCNB Texas National Bank
P.O. Box 225961
Dallas, TX  75265

Nelson Schaenen Jr.                  Director
Weiss, Peck & Greer
One New York Plaza
New York, NY  10004
</TABLE> 

                                      C-3
<PAGE>
 
<TABLE> 
<CAPTION> 
                                     Position and Office
Name and Principal                   with First Investors
Business Address                     Life Insurance Company
- -------------------------            -------------------------
<S>                                  <C> 
Robert J. Grosso                     Director
95 Wall Street
New York, NY 10005

John T. Sullivan                     Director
95 Wall Street
New York, NY  10005

Albert J. Gretz                      Vice President
95 Wall Street
New York, NY  10005

Kathryn S. Head                      Director
10 Woodbridge Center Drive
Woodbridge, NJ  07049

Ada M. Suchow                        Vice President
95 Wall Street
New York, NY  10005

William M. Lipkus                    Chief Accounting Officer
95 Wall Street
New York, NY  10005
</TABLE> 


ITEM 26.  Persons Controlled by or Under Common Control with the Depositor or
          Registrant

     There are no persons directly or indirectly controlled by or under
common control with the Registrant.  Set forth below are all persons controlled
by or under common control with First Investors Life Insurance Company:

     Route 33 Realty Corporation (New Jersey).  Ownership: 100% by First
     ---------------------------                                        
     Investors Life Insurance Company; Principal Business: Real Estate;
     Subsidiary of First Investors Life Insurance Company.

     First Investors Consolidated Corporation (FICC) (Delaware).  Ownership:
     -----------------------------------------------                        
     Glenn O. Head and Julie W. Grayson (as executrix of the Estate of David D.
     Grayson) are controlling persons of the voting stock; Principal Business:
     Holding Company; Parent of First Investors Life Insurance Company.

     Administrative Data Management Corp. (New York).  Ownership:  100% owned by
     ------------------------------------                                       
     FICC; Principal Business: Transfer Agent;  Affiliate of First Investors
     Life Insurance Company.

                                      C-4
<PAGE>
 
     Executive Investors Management Company, Inc. (Delaware).  Ownership: 100%
     --------------------------------------------                             
     owned by FICC; Principal Business:  Investment Advisor; Affiliate of First
     Investors Life Insurance Company.

     First Investors Asset Management Company, Inc. (Delaware).  Ownership: 100%
     ----------------------------------------------                             
     owned by FICC; Principal Business:  Investment Advisor; Affiliate of First
     Investors Life Insurance Company.

     First Investors Corporation (New York).  Ownership:  100% owned by FICC;
     ---------------------------                                             
     Principal Business: Broker-Dealer; Affiliate of First Investors Life
     Insurance Company.

     First Investors Leverage Corporation (New York).  Ownership: 100% owned by
     ------------------------------------                                      
     FICC; Principal Business: Inactive; Affiliate of First Investors Life
     Insurance Company.

     First Investors Management Company, Inc. (New York).  Ownership: 100% of
     ----------------------------------------                                
     voting common stock owned by FICC; Principal Business: Investment Advisor;
     Affiliate of First Investors Life Insurance Company.

     First Investors Realty Company, Inc. (New Jersey).  Ownership: 100% owned
     ------------------------------------                                     
     by FICC; Principal Business: Real Estate; Affiliate of First Investors Life
     Insurance Company.

     First Investors Resources, Inc. (Delaware).  Ownership: 100% owned by FICC;
     -------------------------------                                            
     Principal Business: Commodity Pool Operator; Affiliate of First Investors
     Life Insurance Company.

     Executive Investors Corporation. (Delaware).  Ownership: 100% owned by
     --------------------------------                                      
     FICC; Principal Business: Broker-Dealer; Affiliate of First Investors Life
     Insurance Company.

     First Financial Savings Bank, S.L.A. (FFSB) (New Jersey).  Ownership: 100%
     -------------------------------------------                               
     owned by FICC, except Directors Qualifying Shares; Principal Business:
     Savings and Loan; Affiliate of First Investors Life Insurance Company.

     First Investors Credit Corporation (New Jersey).  Ownership:  100% owned by
     ----------------------------------                                         
     FFSB; Principal Business: Inactive; Affiliate of First Investors Life
     Insurance Company.

     N.A.K. Realty Corporation (New Jersey).  Ownership: 100% owned by FICC;
     -------------------------                                              
     Principal Business:  Real Estate; Affiliate of First Investors Life
     Insurance Company.

     Real Property Development Corporation (New Jersey).  Ownership: 100% owned
     -------------------------------------                                     
     by FICC; Principal Business: Real Estate; Affiliate of First Investors Life
     Insurance Company.

     First Investors Credit Funding Corporation (New York).  Ownership:  100%
     ------------------------------------------                              
     owned by FICC; Principal Business:  Sells

                                      C-5
<PAGE>
 
     commercial paper; Affiliate of First Investors Life Insurance Company.

     School Financial Management Services, Inc. (Ohio).  Ownership:  100% owned
     ------------------------------------------                                
     by FICC; Principal Business:  Tuition assistance program; Affiliate of
     First Investors Life Insurance Company.


ITEM 27.  Number of Contractowners
    
     As of April 7, 1995, the number of owners of variable annuity contracts
offered by First Investors Life Variable Annuity Fund C was 7,534.     

ITEM 28.  Indemnification

     Article XIV of the By-Laws of First Investors Life Insurance Company
provides as follows:

     "To the full extent authorized by law and by the Charter, the Corporation
     shall and hereby does indemnify any person who shall at any time be made,
     or threatened to be made, a party in any civil or criminal action or
     proceeding by reason of the fact that he, his testator or his intestate is
     or was a director or officer of the Corporation or served another
     corporation in any capacity at the request of the Corporation, provided,
     that the notice required by Section 62-a of the Insurance Law of the State
     of New York, as now in effect or as amended from time to time, be filed
     with the Superintendent of Insurance."

     Reference is hereby made to the New York Business Corporation Law, Sections
721 through 725.

     The general effect of this Indemnification will be to indemnify any person
made, or threatened to be made, a party to an action by or in the right of the
corporation to procure a judgment in its favor by reason of the fact that the
person, or that person's testator or intestate, is or was a director or officer
of the corporation, or is or was serving at the request of the corporation as a
director or officer of any other corporation of any type or kind, domestic or
foreign, of any partnership, joint venture, trust, employee benefit plan or
other enterprise, against amounts paid in settlement and reasonable expenses,
including attorney's fees, actually and necessarily occurred in connection with
the defense or settlement of such action, or in connection with an appeal
therein if such director or officer acted in good faith, for a purpose
reasonably believed by that person to be in, and not opposed to, the best
interests of the corporation and not otherwise knowingly unlawful.

                                      C-6
<PAGE>
 
ITEM 29.  Principal Underwriters

     (a) First Investors Corporation, Underwriter of the Registrant, is also
underwriter for:

         First Investors Cash Management Fund, Inc.
         First Investors Fund For Income, Inc.
         First Investors Series Fund
         First Investors Government Fund, Inc.
         First Investors High Yield Fund, Inc.
         First Investors Global Fund, Inc.
         First Investors Multi-State Insured Tax Free Fund
         First Investors New York Insured Tax Free Fund, Inc.
         First Investors Insured Tax Exempt Fund, Inc.
         First Investors Tax-Exempt Money Market Fund, Inc.
         First Investors U.S. Government Plus Fund
         First Investors Series Fund II, Inc.

     First Investors Corporation is Sponsor of:

     First Investors Single Payment and Periodic Payment Plans I for Investment
       in First Investors Global Fund, Inc.
     First Investors Single Payment and Periodic Payment Plans II for Investment
       in First Investors Global Fund, Inc.
     First Investors Single Payment and Periodic Payment Plans for Investment in
       First Investors Fund For Income, Inc.
     First Investors Single Payment and Periodic Payment Plans for Investment in
       First Investors Government Fund, Inc.
     First Investors Periodic Payment Plans for Investment in First Investors
       High Yield Fund, Inc.
     First Investors Single Payment and Periodic Payment Plans for the
       Accumulation of Shares of First Investors Global Fund, Inc.
     First Investors Single Payment and Periodic Payment Plans for Investment in
       First Investors Insured Tax Exempt Fund, Inc.

     (b) The following persons are the officers and directors of First Investors
Corporation:

<TABLE> 
<CAPTION> 
Name and Principal                   Position and Office with
Business Address                     First Investors Corporation
- ------------------                   --------------------------------
<C>                                  <S> 
Glenn O. Head                        Chairman of the Board and Director
95 Wall Street
New York, NY  10005

Lawrence A. Fauci                    Senior Vice President and Director
95 Wall Street
New York, NY  10005

Kathryn S. Head                      Vice President, Chief
10 Woodbridge Center                 Financial Officer and Director
Drive
Woodbridge, NJ  07095
</TABLE> 

                                      C-7
<PAGE>
 
<TABLE> 
<CAPTION> 
Name and Principal                   Position and Office with
Business Address                     First Investors Corporation
- ------------------                   --------------------------------
<C>                                  <S> 
Joseph I. Benedek                    Treasurer
10 Woodbridge Center
Drive
Woodbridge, NJ  07095

Louis Rinaldi                        Senior Vice President
10 Woodbridge Center
Drive
Woodbridge, NJ  07095

Jeremiah J. Lyons                    Director
56 Weston Avenue
Chatham, NJ 07928

Frederick Miller                     Vice President
10 Woodbridge Center
Drive
Woodbridge, NJ  07095

Larry R. Lavoie                      Secretary and General Counsel
95 Wall Street
New York, NY  10005

Marvin M. Hecker                     President
95 Wall Street
New York, NY  10005

Howard M. Factor                     Vice President
95 Wall Street
New York, NY  10005

Matthew Smith                        Vice President
10 Woodbridge Center
Drive
Woodbridge, NJ  07095

Anne Condon                          Vice President
10 Woodbridge Center
Drive
Woodbridge, NJ  07095

Kellen M. Carson                     Vice President
95 Wall Street
New York, NY  10005

John T. Sullivan                     Director
95 Wall Street
New York, NY  10005

Jane W. Kruzan                       Director
15 Norwood Avenue
Summit, NJ 07901-0493
</TABLE> 

                                      C-8
<PAGE>
 
<TABLE> 
<CAPTION> 
Name and Principal                   Position and Office with
Business Address                     First Investors Corporation
- ------------------                   --------------------------------
<C>                                  <S> 
Roger L. Grayson                     Director
95 Wall Street
New York, NY 10005
</TABLE> 

ITEM 30.  Location of Accounts and Records

     All accounts, books and other documents required to be maintained pursuant
to Section 31(a) of the Investment Company Act of 1940, as amended, are located
at the offices of First Investors Life Insurance Company, 95 Wall Street, New
York, New York 10005.


ITEM 31.  Management Services

     Not applicable.

ITEM 32.  Undertakings

     Registrant hereby makes the following undertakings:

     (a)  An undertaking to file a post-effective amendment to this registration
          statement as frequently as is necessary to ensure that the audited
          financial statements in the registration statement are never more than
          16 months old for so long as payments under the variable annuity
          contracts may be accepted;

     (b)  An undertaking to include either (1) as part of any application to
          purchase a contract offered by the prospectus, a space that an
          applicant can check to request a Statement of Additional Information
          or (2) a post card or similar written communication affixed to or
          included in the prospectus that the applicant can remove to send for a
          Statement of Additional Information;

     (c)  An undertaking to deliver any Statement of Additional Information and
          any financial statements required to be made available under this Form
          promptly upon written or oral request.

                                      C-9
<PAGE>
 
SIGNATURES
- ----------
    
     Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant represents that this Amendment
meets all the requirements for effectiveness pursuant to Rule 485(b) under the
Securities Act of 1933, and has duly caused this Post-Effective Amendment to
this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, State of New York, on the
11th day of April, 1995.      

                         FIRST INVESTORS LIFE VARIABLE
                           ANNUITY FUND C
                         (Registrant)



                         By /s/ Richard H. Gaebler
                           --------------------------------
                           Richard H. Gaebler, President
                           First Investors Life Insurance
                           Company


                         FIRST INVESTORS LIFE INSURANCE
                           COMPANY
                         (Depositor)



                         By /s/ Richard H. Gaebler
                           --------------------------------
                           Richard H. Gaebler
                           President

     As required by the Securities Act of 1933, this Amendment to this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:

<TABLE> 
<CAPTION> 
     SIGNATURE                     TITLE                 DATE
     ---------                     -----                 ----
<C>                       <C>                        <C>    
/s/ Richard H. Gaebler    President and Director     April 11, 1995
- ----------------------                                       
Richard H. Gaebler


/s/ Lawrence M. Falcon    Senior Vice President      April 11, 1995
- ----------------------     and Comptroller                                  
Lawrence M. Falcon        
 
Glenn O. Head*            Chairman and Director      April 11, 1995
Jay G. Baris*                   Director             April 11, 1995
George V. Ganter*               Director             April 11, 1995
Robert J. Grosso*               Director             April 11, 1995
Scott Hodes*                    Director             April 11, 1995
F. Van S. Parr*                 Director             April 11, 1995
Jackson Ream*                   Director             April 11, 1995
Nelson Schaenen Jr.*            Director             April 11, 1995
John T. Sullivan*               Director             April 11, 1995
Kathryn S. Head*                Director             April 11, 1995
</TABLE>


* By:/s/ Richard H. Gaebler
     -------------------------
     Richard H. Gaebler
     Attorney-In-Fact
     Pursuant to Power of
     Attorney previously filed

                                      C-10
<PAGE>
 
                               INDEX TO EXHIBITS


Exhibit
Number         Description
- -------        -----------

23             Consent of Accountants

24             Power of Attorney

27.1           Financial Data Schedule

27.2           Financial Data Schedule

27.3           Financial Data Schedule

27.4           Financial Data Schedule

27.5           Financial Data Schedule

27.6           Financial Data Schedule

27.7           Financial Data Schedule

27.8           Financial Data Schedule

27.9           Financial Data Schedule

99             Performance Calculations

<PAGE>

                                                                      EXHIBIT 23

              CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Board of Directors
First Investors Life Insurance Company
95 Wall Street
New York, NY  10005


     We hereby consent to the use in Post-Effective Amendment No. 7 to the
Registration Statement on Form N-4 (File No. 33-33419) of our report dated
February 21, 1995 relating to the December 31, 1994 financial statements of
First Investors Life Variable Annuity Fund C and our report dated February 21,
1995 relating to the December 31, 1994 financial statements of First Investors
Life Insurance Company, which are included in said Registration Statement.



                                        /s/ Tait, Weller & Baker

                                        TAIT, WELLER & BAKER


Philadelphia, Pennsylvania
April 11, 1995

<PAGE>

                                                                      EXHIBIT 24

                 FIRST INVESTORS LIFE VARIABLE ANNUITY FUND C


                               POWER OF ATTORNEY
                               -----------------

     KNOW ALL MEN BY THESE PRESENTS that the undersigned officer and/or director
of First Investors Life Insurance Company, as Depositor of First Investors Life
Variable Annuity Fund C, hereby appoints Glenn O. Head or Richard H. Gaebler,
and each of them his true and lawful attorney to execute in his name, place and
stead and on his behalf a Registration Statement on Form N-4 for the
registration pursuant to the Securities Act of 1933 and the Investment Company
Act of 1940 of variable annuity contracts, and any and all amendments to said
Registration Statement (including post-effective amendments), and all
instruments necessary or incidental in connection therewith and to file the same
with the Securities and Exchange Commission.  Said attorney shall have full
power and authority to do and perform in the name and on behalf of the
undersigned every act whatsoever requisite or desirable to be done in the
premises, as fully and to all intents and purposes as the undersigned might or
could do, the undersigned hereby ratifying and approving all such acts of said
attorney.

     IN WITNESS WHEREOF the undersigned has subscribed these presents this 6th
day of March 1995.



                                /s/ Robert J. Grosso
                                ----------------------------------
                                          Robert J. Grosso

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 3
   <NAME> BLUE CHIP SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                         26855260
<INVESTMENTS-AT-VALUE>                        29167224
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                29167224
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        24761
<TOTAL-LIABILITIES>                              24761
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      26855260
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                      (24761)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       2311964
<NET-ASSETS>                                  29142463
<DIVIDEND-INCOME>                               428282
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                  267323
<NET-INVESTMENT-INCOME>                         160959
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (822352)
<NET-CHANGE-FROM-OPS>                         (661393)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        8834765
<NUMBER-OF-SHARES-REDEEMED>                    2328624
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         5844748
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 267323
<AVERAGE-NET-ASSETS>                          26220089
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 5
   <NAME> CASH MANAGEMENT SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                          2649936
<INVESTMENTS-AT-VALUE>                         2649936
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 2649936
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         2513
<TOTAL-LIABILITIES>                               2513
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       2649936
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                       (2513)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   2647423
<DIVIDEND-INCOME>                                95493
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   25869
<NET-INVESTMENT-INCOME>                          69624
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                            69624
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         232644
<NUMBER-OF-SHARES-REDEEMED>                     425333
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                        (123065)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  25869
<AVERAGE-NET-ASSETS>                           2708956
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 2
   <NAME> DISCOVERY SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                         17692050
<INVESTMENTS-AT-VALUE>                        19182194
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                19182194
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        16282
<TOTAL-LIABILITIES>                              16282
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      17692050
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                      (16282)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       1490144
<NET-ASSETS>                                  19165912
<DIVIDEND-INCOME>                               625746
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                  163412
<NET-INVESTMENT-INCOME>                         462334
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                    (1001571)
<NET-CHANGE-FROM-OPS>                         (539237)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        8165681
<NUMBER-OF-SHARES-REDEEMED>                    1354452
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         6271992
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 163412
<AVERAGE-NET-ASSETS>                          16029916
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 4
   <NAME> GROWTH SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                         20353493
<INVESTMENTS-AT-VALUE>                        21195610
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                21195610
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        17320
<TOTAL-LIABILITIES>                              17320
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      20353493
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                      (17320)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        842117
<NET-ASSETS>                                  21178290
<DIVIDEND-INCOME>                               208485
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                  184631
<NET-INVESTMENT-INCOME>                          23854
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (677976)
<NET-CHANGE-FROM-OPS>                         (654122)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        7491534
<NUMBER-OF-SHARES-REDEEMED>                    1340444
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         5496968
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 184631
<AVERAGE-NET-ASSETS>                          18429806
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 7
   <NAME> GOVERNMENT SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                          7807237
<INVESTMENTS-AT-VALUE>                         7316650
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 7316650
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         6598
<TOTAL-LIABILITIES>                               6598
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       7807237
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                       (6598)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                      (490587)
<NET-ASSETS>                                   7310052
<DIVIDEND-INCOME>                               208453
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   73742
<NET-INVESTMENT-INCOME>                         134711
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (518843)
<NET-CHANGE-FROM-OPS>                         (384132)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         644887
<NUMBER-OF-SHARES-REDEEMED>                     673330
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                        (412575)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  73742
<AVERAGE-NET-ASSETS>                           7516339
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 1
   <NAME> HIGH YIELD SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                          8529376
<INVESTMENTS-AT-VALUE>                         8702132
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 8702132
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         7721
<TOTAL-LIABILITIES>                               7721
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       8529376
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                       (7721)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        172756
<NET-ASSETS>                                   8694411
<DIVIDEND-INCOME>                               268922
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   79466
<NET-INVESTMENT-INCOME>                         189456
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (391288)
<NET-CHANGE-FROM-OPS>                         (201832)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        2823063
<NUMBER-OF-SHARES-REDEEMED>                     724094
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         1897137
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  79466
<AVERAGE-NET-ASSETS>                           7745843
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 8
   <NAME> INVESTMENT GRADE SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                         10721316
<INVESTMENTS-AT-VALUE>                        10435187
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                10435187
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         9299
<TOTAL-LIABILITIES>                               9299
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      10721316
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                       (9299)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                      (286129)
<NET-ASSETS>                                  10425888
<DIVIDEND-INCOME>                               222638
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   99858
<NET-INVESTMENT-INCOME>                         122780
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (567423)
<NET-CHANGE-FROM-OPS>                         (444643)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        2455089
<NUMBER-OF-SHARES-REDEEMED>                     859690
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         1150756
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  99858
<AVERAGE-NET-ASSETS>                           9850510
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 6
   <NAME> INTERNATIONAL SECURTITIES SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                         17410946
<INVESTMENTS-AT-VALUE>                        18751662
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                18751662
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        15317
<TOTAL-LIABILITIES>                              15317
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      17410946
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                      (15317)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       1340716
<NET-ASSETS>                                  18736345
<DIVIDEND-INCOME>                                48185
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                  157020
<NET-INVESTMENT-INCOME>                       (108835)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (268330)
<NET-CHANGE-FROM-OPS>                         (377165)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        9198618
<NUMBER-OF-SHARES-REDEEMED>                    1072606
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         7748847
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 157020
<AVERAGE-NET-ASSETS>                          14861921
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
 
<ARTICLE> 6
<SERIES>
   <NUMBER> 9
   <NAME> UTILITIES INCOME SERIES
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<INVESTMENTS-AT-COST>                          4420232
<INVESTMENTS-AT-VALUE>                         4305829
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 4305829
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                         3593
<TOTAL-LIABILITIES>                               3593
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       4420232
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                       (3593)
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                      (114403)
<NET-ASSETS>                                   4302236
<DIVIDEND-INCOME>                                 5162
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   25798
<NET-INVESTMENT-INCOME>                        (20636)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                     (112849)
<NET-CHANGE-FROM-OPS>                         (133485)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        4128187
<NUMBER-OF-SHARES-REDEEMED>                     140094
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         3854608
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  25798
<AVERAGE-NET-ASSETS>                           2374932
<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                                  0
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<PAGE>
 
                                                                      EXHIBIT 99

NAV Only Total Returns

Average Annual Total Return and Total Return for First Investors
Funds are calculated using the following standardized formula:

Average Annual

        Total Return = ((ERV divided by P) ) - 1

        Total Return = ((ERV - P) divided by P)


WHERE:  ERV = Ending redeemable value of a hypothetical 
              $1,000 investment made at the beginning of
              1, 5, or 10 year periods (or fractional
              period thereof.)

          P = a hypothetical initial investment of $1,000

          N = number of years


The following table lists the information used to calculate the average annual
total return and total return for First Investors Life Series Fund as of
December 31, 1994.

<TABLE> 
<CAPTION> 
                                                               AVE. ANNUAL     TOTAL
                                ERV           P         N     TOTAL RETURN    RETURN
                                ---           -         -     ------------    ------
<S>                          <C>          <C>          <C>    <C>             <C>  
        Blue Chip Series
        ----------------
                 1 year:     $  985.50    $1,000.00    1.00      (1.45%)       (1.45%)

           Life of Fund:     $1,446.00    $1,000.00    4.82       7.95%        44.60%

        Discovery Series
        ----------------
                 1 year:     $  974.70    $1,000.00    1.00      (2.53%)       (2.53%)

                5 years:     $1,977.40    $1,000.00    5.00      14.60%        97.74%

           Life of Fund:     $2,537.30    $1,000.00    7.15      13.91%       153.73%

       Government Series
       -----------------
                 1 year:     $  959.00    $1,000.00    1.00      (4.10%)       (4.10%)

           Life of Fund:     $1,120.10    $1,000.00    2.98       3.87%        12.01%

           Growth Series
           -------------
                 1 year:     $  971.30    $1,000.00    1.00      (2.87%)       (2.87%)

                5 years:     $1,476.60    $1,000.00    5.00       8.10%        47.66%

           Life of Fund:     $1,975.70    $1,000.00    7.15       9.99%        97.57%

       High Yield Series
       -----------------
                 1 year:     $  984.30    $1,000.00    1.00      (1.57%)       (1.57%)

                5 years:     $1,640.30    $1,000.00    5.00      10.40%        64.03%

           Life of Fund:     $1,862.70    $1,000.00    7.15       9.09%        86.27%

International Securities
                  Series
- ------------------------
                 1 year:     $  987.10    $1,000.00    1.00      (1.29%)       (1.29%)

           Life of Fund:     $1,424.30    $1,000.00    4.71       7.79%        42.43%

 Investment Grade Series
 -----------------------
                 1 year:     $  964.70    $1,000.00    1.00      (3.53%)       (3.53%)

           Life of Fund:     $1,163.00    $1,000.00    2.98       5.19%        16.30%

 Utilities Income Series
 -----------------------
                 1 year:     $  927.60    $1,000.00    1.00      (7.24%)       (7.24%)

           Life of Fund:     $  922.00    $1,000.00    1.09      (6.96%)       (7.80%)
</TABLE> 

<PAGE>
 

SEC Standardized Total Returns

Average Annual Total Return and Total Return for First Investors
Funds are calculated using the following standardized formula:

Average Annual

        Total Return = ((ERV divided by P) ) - 1

        Total Return = ((ERV - P) divided by P)


WHERE:  ERV = Ending redeemable value of a hypothetical 
              $1,000 investment made at the beginning of
              1, 5, or 10 year periods (or fractional
              period thereof.)

          P = a hypothetical initial investment of $1,000

          N = number of years


The following table lists the information used to calculate the standardized
average annual total return and total return for First Investors Life Series
Fund as of December 31, 1994.

<TABLE> 
<CAPTION> 
                                                               AVE. ANNUAL     TOTAL
                                ERV           P         N     TOTAL RETURN    RETURN
                                ---           -         -     ------------    ------
<S>                          <C>          <C>          <C>    <C>             <C>  
        Blue Chip Series
        ----------------
                 1 year:     $  916.50    $1,000.00    1.00      (8.35%)       (8.35%)

           Life of Fund:     $1,344.80    $1,000.00    4.82       6.34%        34.48%

        Discovery Series
        ----------------
                 1 year:     $  906.50    $1,000.00    1.00      (9.35%)       (9.35%)

                5 years:     $1,838.90    $1,000.00    5.00      12.95%        83.89%

           Life of Fund:     $2,359.70    $1,000.00    7.15      12.76%       135.97%

       Government Series
       -----------------
                 1 year:     $  892.20    $1,000.00    1.00     (10.78%)      (10.78%)

           Life of Fund:     $1,041.90    $1,000.00    2.98       1.39%         4.19%

           Growth Series
           -------------
                 1 year:     $  903.30    $1,000.00    1.00      (9.67%)       (9.67%)

                5 years:     $1,411.20    $1,000.00    5.00       7.13%        41.12%

           Life of Fund:     $1,837.40    $1,000.00    7.15       8.88%        83.74%

       High Yield Series
       -----------------
                 1 year:     $  915.10    $1,000.00    1.00      (8.46%)       (8.46%)

                5 years:     $1,525.40    $1,000.00    5.00       8.81%        52.54%

           Life of Fund:     $1,732.30    $1,000.00    7.15       7.99%        73.23%

International Securities
                  Series
- ------------------------
                 1 year:     $  918.00    $1,000.00    1.00      (8.20%)       (8.20%)

           Life of Fund:     $1,324.60    $1,000.00    4.71       6.15%        32.46%

 Investment Grade Series
 -----------------------
                 1 year:     $  897.50    $1,000.00    1.00     (10.25%)      (10.25%)

           Life of Fund:     $1,081.90    $1,000.00    2.98       2.67%         8.19%

 Utilities Income Series
 -----------------------
                 1 year:     $  862.50    $1,000.00    1.00     (13.75%)      (13.75%)

           Life of Fund:     $  872.50    $1,000.00    1.09     (12.75%)      (14.23%)
</TABLE> 


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