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SUPPLEMENT DATED NOVEMBER 1, 1998
TO PROSPECTUS DATED MAY 1, 1998
THE FOLLOWING IS TO REPLACE THE PARAGRAPH ENTITLED "FREE-LOOK PERIOD" ON PAGE 19
OF YOUR PROSPECTUS:
The Contract provides for an initial "Free Look" period. The Owner has
the right to return the Contract within 10 days after such Owner receives the
Contract. When Providentmutual receives the returned Contract at its Home
Office, it will be canceled and depending on the State in which the Contract was
issued, Providentmutual will refund to the Owner an amount equal to either (a)
the premiums paid under the Contract; or (b) the sum of (i) the Contract Account
Value as of the earlier of the date the returned Contract is received by
Providentmutual at its Home Office or by the Providentmutual representative
through whom the Contract was purchased, plus (ii) the amount of any charges
deducted from the Variable Account except the Mortality and Expense Risk Charge,
Asset-Based Administration Charge and the Funds' advisory fees and operating
expenses.
THE FOLLOWING IS TO REPLACE THE SECOND AND THIRD PARAGRAPHS UNDER THE
"ALLOCATION OF PREMIUMS" SECTION ON PAGES 19 AND 20 OF YOUR PROSPECTUS:
At the time of application, the Owner selects how the initial Net
Premium is to be allocated among the Subaccounts and the Guaranteed Account. For
Contracts that will refund to the Owner an amount equal to the premiums paid
under the Contract following a return of the Contract (see "Free Look Period"),
as described above, when the Net Premium is allocated, the portion of the
initial Net Premium which is to be allocated to the Subaccounts of the Variable
Account will be allocated to the Money Market Subaccount for a 15-day period.
After the expiration of such 15-day period, the amount in the Money Market
Subaccount will be allocated to the chosen Subaccounts based on the portion that
the allocation percentage for such Subaccount bears to the sum of the Subaccount
allocation percentages.
For Contracts sold to residents of states where the amount returned
during the "Free-Look Period," as described above, reflects the investment
performance of the Contract, the portion of the initial Net Premium for such
Contract which is to be allocated to the Variable Account will not be
automatically allocated to the Money Market Subaccount for the 15-day period but
instead will be credited to the chosen Subaccounts of the Variable Account
within 2 or 5 business days of receipt of such premium.
