<PAGE>
PEOPLES BENEFIT LIFE INSURANCE COMPANY
SEPARATE ACCOUNT V
SUPPLEMENT DATED APRIL 2, 1999
TO THE
PROSPECTUS DATED MAY 1, 1998
AS SUPPLEMENTED OCTOBER 1, 1998
FOR THE
ADVISOR'S EDGE VARIABLE ANNUITY
OFFERED BY
PEOPLES BENEFIT LIFE INSURANCE COMPANY
(A MISSOURI STOCK COMPANY)
Advisor's Edge Variable Annuity Contract Owners may invest in the following
Portfolios, which are in addition to the seventeen Portfolios previously
available for investment (which appear on page one of the Prospectus, as
supplemented): the VA Small Value Portfolio ("DFA Small Value Portfolio"), the
VA Large Value Portfolio ("DFA Large Value Portfolio"), the VA International
Value Portfolio ("DFA International Value Portfolio"), the VA International
Small Portfolio ("DFA International Small Portfolio"), the VA Short-Term Fixed
Portfolio ("DFA Short-Term Fixed Portfolio") and the VA Global Bond Portfolio
("DFA Global Bond Portfolio") of DFA Investment Dimensions Group Inc.; and the
WRL Aggressive Growth Portfolio ("WRL Alger Aggressive Growth Portfolio"), the
WRL Global Portfolio ("WRL Janus Global Portfolio"), the WRL Growth Portfolio
("WRL Janus Growth Portfolio"), the WRL Strategic Total Return Portfolio ("WRL
LKCM Strategic Total Return Portfolio") and the WRL Real Estate Securities
Portfolio ("WRL J.P. Morgan Real Estate Securities Portfolio"), of the WRL
Series Fund, Inc. The definition of "Portfolio" appearing on Prospectus pages
four and five is hereby amended accordingly.
* * * * *
The definition of "Funds" on Prospectus page four is hereby amended to include
DFA Investment Dimensions Group Inc. and the WRL Series Fund, Inc. (advised by
WRL Investment Management, Inc.).
* * * * *
The addition of these Portfolios brings to twenty-eight the number of
Subaccounts of Peoples Benefit Insurance Company Separate Account V among which
Advisor's Edge Variable Annuity Contract Owners may allocate Net Purchase
Payments. The number of open-end, diversified investment companies offering
Portfolios to Advisor's Edge Variable Annuity Contract Owners is likewise hereby
increased from seven to nine.
* * * * *
<PAGE>
The table on Prospectus page nine showing actual expenses for fiscal year 1997
(as a percentage of each Portfolio's average net assets after fee waiver and/or
expense reimbursement, if applicable) is hereby supplemented as follows:
<TABLE>
<CAPTION>
Total
Management Portfolio
and Advisory Other Annual
Expenses Expenses Expenses
------------- ---------- ---------
<S> <C> <C> <C>
WRL Alger Aggressive
Growth Portfolio* 0.80% 0.16% 0.96%
WRL Janus Global Portfolio* 0.80% 0.20% 1.00%
WRL Janus Growth Portfolio* 0.80% 0.07% 0.87%
WRL LKCM Strategic Total
Return Portfolio* 0.80% 0.08% 0.88%
WRL J.P. Morgan Real Estate
Securities Portfolio** 0.80% 0.20% 1.00%
DFA Small Value Portfolio*** 0.50% 0.21% 0.71%
DFA Large Value Portfolio*** 0.25% 0.23% 0.48%
DFA International Value Portfolio*** 0.40% 0.36% 0.76%
DFA International Small Portfolio*** 0.50% 0.49% 0.99%
DFA Short-Term Fixed Portfolio*** 0.25% 0.18% 0.43%
DFA Global Bond Portfolio*** 0.25% 0.40% 0.65%
</TABLE>
* WRL Investment Management, Inc. has agreed, until at least April 30, 1999, to
pay Fund expenses of the WRL Alger Aggressive Growth, WRL Janus Global, WRL
Janus Growth and WRL LKCM Strategic Total Return Portfolios that exceed 1.00%.
** Expense figures represent an estimate for fiscal year 1997. WRL Investment
Management, Inc. has agreed, until at least April 30, 1999, to pay Fund expenses
of the WRL J.P. Morgan Real Estate Securities Portfolio that exceed 1.00%.
*** The fee for Management and Advisory Expenses has been reduced to reflect the
adviser's voluntary waiver of a portion of the management fee. The adviser can
terminate this waiver at any time in its sole discretion. The maximum fee for
Management and Advisory Expenses is 0.50%. Without this voluntary waiver, Total
Portfolio Annual Expenses would have been 1.00%.
* * * * *
<PAGE>
The example on Prospectus page ten illustrating expenses a Contract Owner would
incur on a $1,000 Purchase Payment over various periods, assuming (1) a 5%
annual rate of return and (2) redemption at the end of each period, is hereby
supplemented as follows:
<TABLE>
<CAPTION>
1 Yr. 3Yr. 5 Yr. 10 Yr.
--------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C>
WRL Alger Aggressive Growth $16.66 $51.66 $89.01 $193.77
Portfolio
WRL Janus Global Portfolio $17.07 $52.89 $91.09 $198.11
WRL Janus Growth Portfolio $15.75 $48.88 $84.30 $183.93
WRL LKCM Strategic Total Return $15.86 $49.19 $84.82 $185.03
Portfolio
WRL J.P. Morgan Real Estate $17.07 $52.89 $91.09 $198.11
Securities Portfolio
DFA Small Value Portfolio $14.14 $43.93 $75.87 $166.21
DFA Large Value Portfolio $11.81 $36.77 $63.65 $140.20
DFA International Value Portfolio $14.64 $45.48 $78.51 $171.78
DFA International Small Portfolio $16.97 $52.58 $90.57 $197.03
DFA Short-Term Fixed Portfolio $11.30 $35.21 $60.97 $134.46
DFA Global Bond Portfolio $13.53 $42.07 $72.70 $159.48
</TABLE>
* * * * *
The table on Prospectus page eleven showing Condensed Financial Information for
the period January 1, 1994 through December 31, 1997 is hereby supplemented as
follows:
<TABLE>
<CAPTION>
DFA
DFA DFA Short DFA
Small Large DFA Int'l DFA Int'l Term Global
Value Value Value Small Fixed Bond
---------- ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value as of:
Start Date* 10.000 10.000 10.000 10.000 10.000 10.000
12/31/95 9.948 12.034 10.524 10.145 10.104 11.300
12/31/96 12.063 14.165 11.214 10.106 10.560 12.235
12/31/97 15.633 18.187 10.893 7.708 11.089 13.103
Number of units Outstanding
as of
12/31/95 163,078 358,553 271,242 188,597 101,709 152,950
12/31/96 711.634 983,458 983,425 617,388 821,351 317,470
12/31/97 244,509 375,643 429,213 382,800 555,832 200,101
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRL WRL WRL WRL LKCM
Alger Janus Janus Strategic
Aggressive Global Growth Total Return
------------- ------------ ------------ ---------------
<C> <S> <C> <C> <C>
Accumulation unit value as of:
Start Date** N/A N/A N/A N/A
12/31/97 N/A N/A N/A N/A
Number of units Outstanding
as of
12/31/97 N/A N/A N/A N/A
</TABLE>
*Date of commencement of operations for DFA Small Value was 10/6/95; for DFA
Large Value was 1/18/95; for DFA International Value was 10/3/95; for DFA
International Small was 10/6/95; for DFA Short-Term Fixed was 10/9/95; and for
DFA Global Bond was 1/18/95.
**Portfolios had not commenced operations as of the date of this supplement.
* * * * *
The following supplements the descriptions of the Funds beginning on Prospectus
page thirteen.
DFA INVESTMENT DIMENSIONS GROUP INC. (advised by Dimensional Fund Advisors Inc.)
DFA Investment Dimensions Group Inc. is an open-end management investment
company organized under Maryland law in 1981, and is registered under the 1940
Act. The Fund issues 28 series of shares, including the DFA Small Value
Portfolio, the DFA Large Value Portfolio, the DFA International Value Portfolio,
the DFA International Small Portfolio, the DFA Short-Term Fixed Portfolio, and
the DFA Global Bond Portfolio, which are the only portfolios available as part
of the Advisor's Edge. Dimensional Fund Advisors Inc. serves as this Fund's
investment adviser.
* * * * *
WRL SERIES FUND, INC. (advised by WRL Investment Management, Inc.)
WRL Series Fund, Inc. is a diversified, open-end management investment company
that offers a selection of managed investment portfolios. Each portfolio
constitutes a separate mutual fund with its own investment objectives and
policies. The Fund is registered under the 1940 Act. The Fund currently issues
shares of eighteen portfolios, of which the WRL Alger Aggressive Growth
Portfolio, WRL Janus Global Portfolio, WRL Janus Growth, WRL LKCM Strategic
Total Return Portfolio, and WRL J.P. Morgan Real Estate Securities Portfolio are
available as part of the Advisor's Edge. WRL Investment Management, Inc. serves
as the Fund's investment adviser. Fred Alger Management, Inc. serves as the
subadviser to WRL Alger Aggressive Growth Portfolio. Janus Capital Corporation
serves as the subadviser to the WRL Janus Global Portfolio and the WRL Janus
Growth Portfolio. Luther King Capital Management Corporation serves as the
subadviser to the WRL LKCM Strategic Total Return Portfolio. J.P. Morgan
<PAGE>
Investment Management Inc. serves as the subadviser to the WRL J.P. Morgan Real
Estate Securities Portfolio.
* * * * *
The following supplements the descriptions of the Portfolios beginning on
Prospectus page fourteen. For more information concerning the risks associated
with each Portfolio's investments, please refer to the applicable underlying
Fund prospectus.
VA Small Value Portfolio ("DFA Small Value Portfolio")
The investment objective of the DFA Small Value Portfolio is to achieve long-
term capital appreciation. This Portfolio seeks to achieve its investment
objective by investing in common stocks of U.S. companies that are value stocks,
primarily because they have a high book value in relation to their market value
(a "book to market ratio"), and whose market capitalizations are smaller than
that of the company having the median market capitalization of companies whose
shares are listed on the New York Stock Exchange. A company's shares will be
considered to have a high book to market ratio if the ratio equals or exceeds
the ratios of any of the 30% of companies with the highest positive book to
market ratios whose shares are listed on the New York Stock Exchange.
VA Large Value Portfolio ("DFA Large Value Portfolio")
The investment objective of the DFA Large Value Portfolio is to achieve long-
term capital appreciation. This Portfolio seeks to achieve its investment
objective by investing in common stocks of U.S. companies that are value stocks,
primarily because they have a high book to market ratio, and whose market
capitalizations equal or exceed that of the company having the median market
capitalization of companies whose shares are listed on the New York Stock
Exchange. Pursuant to a special meeting of this Portfolio's shareholders held
on September 15, 1995, the DFA Large Value Portfolio's investment policy was
changed to permit the Portfolio to achieve its investment objective by investing
substantially all of its asset in the stock of U.S. companies and the sale of
the Portfolio's non-U.S. securities to another series of shares of DFA
Investment Dimensions Group Inc.
VA International Value Portfolio ("DFA International Value Portfolio")
The investment objective of the DFA International Value Portfolio is to achieve
long-term capital appreciation. This Portfolio seeks to achieve its investment
objective by investing in value stocks of large non-U.S. companies. Securities
are considered value stocks primarily because a company's shares at the time of
purchase have a book to market ratio that equals or exceeds the ratios of any of
the 30% of companies in that country with the highest positive book to market
ratios.
<PAGE>
VA International Small Portfolio ("DFA International Small Portfolio")
The investment objective of the DFA International Small Portfolio is to achieve
long-term capital appreciation. This Portfolio provided investors with access
to securities portfolios consisting of small Japanese, United Kingdom,
Continental and Pacific Rim companies. The Portfolio seeks to achieve its
investment objective by investing its assets in a broad and diverse group of
marketable stocks of (1) Japanese small companies which are traded in the
Japanese securities markets; (2) United Kingdom small companies which are
traded principally on the International Stock Exchange of the United Kingdom and
the Republic of Ireland; (3) small companies organized under the laws of
certain European countries; and (4) small companies located in Australia, New
Zealand and Asian countries whose shares are traded primarily on the securities
markets located in those countries.
VA Short-Term Fixed Portfolio ("DFA Short-Term Fixed Portfolio")
The investment objective of the DFA Short-Term Fixed Portfolio is to achieve a
stable real value (i.e., a return in excess of the rate of inflation) of
invested capital with a minimum of risk. This Portfolio seeks to achieve its
investment objective by investing in U.S. government obligations, U.S.
government agency obligations, dollar denominated obligations of foreign issuers
issued in the U.S., bank obligations, including U.S. subsidiaries and branches
of foreign banks, corporate obligations, commercial paper, repurchase agreements
and obligations of supranational organizations. Generally, this Portfolio will
acquire obligations which mature within one year from the date of settlement,
but substantial investments may be made in obligations maturing within two years
from the date of settlement when greater returns are available.
VA Global Bond Portfolio ("DFA Global Bond Portfolio")
The DFA Global Bond Portfolio seeks to provide a market rate of return for a
global fixed income portfolio with low relative volatility of returns. This
Portfolio will invest primarily in obligations issued or guaranteed by the U.S.
and foreign governments, their agencies and instrumentalities, obligations of
other foreign issuers rated AA or better and supranational organizations, such
as the World Bank, the European Investment Bank, European Economic Community,
and European Coal and Steel Community and corporate debt obligations.
WRL Aggressive Growth Portfolio ("WRL Alger Aggressive Growth Portfolio")
The investment objective of the WRL Alger Aggressive Growth Portfolio is long-
term capital appreciation. The portfolio invests primarily in a diversified,
actively managed portfolio of equity securities, such as common stock or
preferred stocks, or securities convertible into or exchangeable for equity
securities, including warrants and rights. The Portfolio may engage in
leveraging and options and futures transactions, which are deemed to be
speculative and which may increase fluctuations in the Portfolio's net asset
value.
<PAGE>
WRL Global Portfolio ("WRL Janus Global Portfolio")
The investment objective of the WRL Janus Global Portfolio is to achieve long-
term growth of capital in a manner consistent with preservation of capital. The
Portfolio invests primarily in common stocks of foreign and domestic issuers.
The assets of the Portfolio will normally be invested in securities of issuers
from at least five different countries, including the United States.
WRL Growth Portfolio ("WRL Janus Growth Portfolio")
The investment objective of the WRL Janus Growth Portfolio is to seek growth of
capital by investing primarily in common stocks listed on a national securities
exchange or traded on NASDAQ. The portfolio intends to buy stocks with earnings
growth potential that may not be recognized by the market.
WRL Strategic Total Return Portfolio ("WRL LKCM Strategic Total Return
Portfolio")
The investment objective of the WRL LKCM Strategic Total Return Portfolio is to
provide current income, long-term growth of income and capital appreciation.
The Portfolio seeks to achieve its investment objective by investing primarily
in a blend of equity and fixed-income securities, including common stocks,
income producing securities convertible into common stocks, and fixed-income
securities. It is anticipated that approximately 25% of the portfolio's assets
will be invested in fixed-income securities. The Portfolio may invest up to 10%
of its total assets in foreign securities not publicly traded in the United
States.
WRL Real Estate Securities Portfolio ("WRL J.P. Morgan Real Estate Securities
Portfolio")
The investment objective of the WRL J.P. Morgan Real Estate Securities Portfolio
is long-term total return from investments primarily in equity securities of
real estate companies. Equity securities include common stock, preferred stock
and securities convertible into common stock. The Portfolio, under normal
conditions, will invest at least 65% of its total assets in equity securities of
real estate companies and may invest the balance of its total assets in other
securities
* * * * *
There is no assurance that a Portfolio will achieve its stated investment
objective.
Additional information concerning the investment objectives and policies of the
Portfolios and the investment advisory services and charges can be found in the
current prospectuses for the corresponding Funds. The Funds' prospectuses
should be read carefully before any decision is made concerning the allocation
of Net Purchase Payments to a Portfolio or concerning an Exchange to or from a
Portfolio.
<PAGE>
PEOPLES BENEFIT LIFE INSURANCE COMPANY
SEPARATE ACCOUNT V
SUPPLEMENT DATED APRIL 2, 1999
TO THE
PROSPECTUS DATED AUGUST 3, 1998
AS SUPPLEMENTED OCTOBER 1, 1998
FOR THE
ADVISOR'S EDGE SELECT VARIABLE ANNUITY
OFFERED BY
PEOPLES BENEFIT LIFE INSURANCE COMPANY
(A MISSOURI STOCK COMPANY)
Advisor's Edge Select Variable Annuity Contract Owners may invest in the
following Portfolios, which are in addition to the seventeen Portfolios
previously available for investment (which appear on page one of the Prospectus,
as supplemented): WRL Aggressive Growth Portfolio ("WRL Alger Aggressive Growth
Portfolio"), the WRL Global Portfolio ("WRL Janus Global Portfolio"), the WRL
Growth Portfolio ("WRL Janus Growth Portfolio"), the WRL Strategic Total Return
Portfolio ("WRL LKCM Strategic Total Return Portfolio") and the WRL Real Estate
Securities Portfolio ("WRL J.P. Morgan Real Estate Securities Portfolio"), of
the WRL Series Fund, Inc. The definition of "Portfolio" appearing on Prospectus
pages four and five is hereby amended accordingly.
* * * * *
The definition of "Funds" on Prospectus page four is hereby amended to include
the WRL Series Fund, Inc. (advised by WRL Investment Management, Inc.).
* * * * *
The addition of these Portfolios brings to twenty-two the number of Subaccounts
of Peoples Benefit Insurance Company's Separate Account V among which Advisor's
Edge Select Variable Annuity Contract Owners may allocate Net Purchase Payments.
The number of open-end, diversified investment companies offering Portfolios to
Advisor's Edge Select Variable Annuity Contract Owners is likewise hereby
increased from seven to eight.
* * * * *
<PAGE>
The table on Prospectus page nine showing actual expenses for fiscal year 1997
(as a percentage of each Portfolio's average net assets after fee waiver and/or
expense reimbursement, if applicable) is hereby supplemented as follows:
<TABLE>
<CAPTION>
Total
Management Portfolio
and Advisory Other Annual
Expenses Expenses Expenses
------------- ---------- ---------
<S> <C> <C> <C>
WRL Alger Aggressive
Growth Portfolio* 0.80% 0.16% 0.96%
WRL Janus Global Portfolio* 0.80% 0.20% 1.00%
WRL Janus Growth Portfolio* 0.80% 0.07% 0.87%
WRL LKCM Strategic Total
Return Portfolio* 0.80% 0.08% 0.88%
WRL J.P. Morgan Real Estate
Securities Portfolio** 0.80% 0.20% 1.00%
</TABLE>
* WRL Investment Management, Inc. has agreed, until at least April 30, 1999, to
pay Fund expenses of the WRL Alger Aggressive Growth, WRL Janus Global, WRL
Janus Growth and WRL LKCM Strategic Total Return Portfolios that exceed 1.00%.
** Expense figures represent an estimate for fiscal year 1997. WRL Investment
Management, Inc. has agreed, until at least April 30, 1999, to pay Fund expenses
of the WRL J.P. Morgan Real Estate Securities Portfolio that exceed 1.00%.
* * * * *
The example on Prospectus page ten illustrating expenses a Contract Owner would
incur on a $1,000 Purchase Payment over various periods, assuming (1) a 5%
annual rate of return and (2) redemption at the end of each period, is hereby
supplemented as follows:
<TABLE>
<CAPTION>
1 Yr. 3Yr. 5 Yr. 10 Yr.
--------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C>
WRL Alger Aggressive Growth $25.20 $77.50 $132.42 $282.15
Portfolio
WRL Janus Global Portfolio $25.60 $78.70 $134.42 $286.12
WRL Janus Growth Portfolio $24.30 $74.79 $127.91 $273.17
WRL LKCM Strategic Total Return $24.40 $75.09 $128.42 $274.17
Portfolio
WRL J.P. Morgan Real Estate $25.60 $78.70 $134.42 $286.12
Securities Portfolio
</TABLE>
* * * * *
<PAGE>
The following supplements the descriptions of the Funds beginning on Prospectus
page twelve.
WRL SERIES FUND, INC. (advised by WRL Investment Management, Inc.)
WRL Series Fund, Inc. is a diversified, open-end management investment company
that offers a selection of managed investment portfolios. Each portfolio
constitutes a separate mutual fund with its own investment objectives and
policies. The Fund is registered under the 1940 Act. The Fund currently issues
shares of eighteen portfolios, of which the WRL Alger Aggressive Growth
Portfolio, WRL Janus Global Portfolio, WRL Janus Growth, WRL LKCM Strategic
Total Return Portfolio, and WRL J.P. Morgan Real Estate Securities Portfolio are
available as part of the Advisor's Edge Select. WRL Investment Management, Inc.
serves as the Fund's investment adviser. Fred Alger Management, Inc. serves as
the subadviser to WRL Alger Aggressive Growth Portfolio. Janus Capital
Corporation serves as the subadviser to the WRL Janus Global Portfolio and the
WRL Janus Growth Portfolio. Luther King Capital Management Corporation serves as
the subadviser to the WRL LKCM Strategic Total Return Portfolio. J.P. Morgan
Investment Management Inc. serves as the subadviser to the WRL J.P. Morgan Real
Estate Securities Portfolio.
* * * * *
The following supplements the descriptions of the Portfolios beginning on
Prospectus page thirteen. For more information concerning the risks associated
with each Portfolio's investments, please refer to the applicable underlying
Fund prospectus.
WRL Aggressive Growth Portfolio ("WRL Alger Aggressive Growth Portfolio")
The investment objective of the WRL Alger Aggressive Growth Portfolio is long-
term capital appreciation. The portfolio invests primarily in a diversified,
actively managed portfolio of equity securities, such as common stock or
preferred stocks, or securities convertible into or exchangeable for equity
securities, including warrants and rights. The Portfolio may engage in
leveraging and options and futures transactions, which are deemed to be
speculative and which may increase fluctuations in the Portfolio's net asset
value.
WRL Global Portfolio ("WRL Janus Global Portfolio")
The investment objective of the WRL Janus Global Portfolio is to achieve long-
term growth of capital in a manner consistent with preservation of capital. The
Portfolio invests primarily in common stocks of foreign and domestic issuers.
The assets of the Portfolio will normally be invested in securities of issuers
from at least five different countries, including the United States.
WRL Growth Portfolio ("WRL Janus Growth Portfolio")
The investment objective of the WRL Janus Growth Portfolio is to seek growth of
capital by investing primarily in common stocks listed on a national securities
exchange or traded on NASDAQ. The portfolio intends to buy stocks with earnings
growth potential that may not be recognized by the market.
<PAGE>
WRL Strategic Total Return Portfolio ("WRL LKCM Strategic Total Return
Portfolio")
The investment objective of the WRL LKCM Strategic Total Return Portfolio is to
provide current income, long-term growth of income and capital appreciation.
The Portfolio seeks to achieve its investment objective by investing primarily
in a blend of equity and fixed-income securities, including common stocks,
income producing securities convertible into common stocks, and fixed-income
securities. It is anticipated that approximately 25% of the portfolio's assets
will be invested in fixed-income securities. The Portfolio may invest up to 10%
of its total assets in foreign securities not publicly traded in the United
States.
WRL Real Estate Securities Portfolio ("WRL J.P. Morgan Real Estate Securities
Portfolio")
The investment objective of the WRL J.P. Morgan Real Estate Securities Portfolio
is long-term total return from investments primarily in equity securities of
real estate companies. Equity securities include common stock, preferred stock
and securities convertible into common stock. The Portfolio, under normal
conditions, will invest at least 65% of its total assets in equity securities of
real estate companies and may invest the balance of its total assets in other
securities
* * * * *
There is no assurance that a Portfolio will achieve its stated investment
objective.
Additional information concerning the investment objectives and policies of the
Portfolios and the investment advisory services and charges can be found in the
current prospectuses for the corresponding Funds. The Funds' prospectuses
should be read carefully before any decision is made concerning the allocation
of Net Purchase Payments to a Portfolio or concerning an Exchange to or from a
Portfolio.
