<PAGE> 1
SUPPLEMENT DATED JULY 15, 1996 TO CURRENT PROSPECTUS FOR
FNAL VARIABLE ACCOUNT
Effective July 15, 1996, one new investment portfolio will be added to NASL
Series Trust (the "Trust"), the underlying investment medium for the variable
portion of your contract. The new portfolio is the Growth Trust (the
"Portfolio"). Founders Asset Management, Inc. ("Founders") will provide
investment subadvisory services to the Portfolio. Below is a brief description
of the Portfolio's investment objective and certain policies relating to that
objective and a schedule of fees applicable to the Portfolio.
INVESTMENT OBJECTIVE AND POLICIES
Growth Trust
The investment objective of the Growth Trust is to seek long term
growth of capital. Founders will pursue this objective by investing at least 65%
of the portfolio's total assets (except during temporary defensive periods) in
well-established, high-quality growth companies that Founders believes have the
potential to increase earnings faster than the rest of the market.
For more information on the Portfolios and Founders, see the NASL Series Trust
prospectus dated July 11, 1996.
FEE TABLE AND EXAMPLE
The Contract Owner or owner (collectively, "Contract Owner") Transaction
Expenses, Annual Contract Fee and Separate Account Annual Expenses are as set
forth in the current Fee Table with respect to existing portfolios. The Trust
Annual Expenses and Example are amended to include the Portfolio as follows:
TRUST ANNUAL EXPENSES
(as a percentage of Trust average net assets)
<TABLE>
<CAPTION>
Management Other Total Trust
Trust Portfolio Expenses Expenses Annual Expenses
- --------------- -------- -------- ---------------
<S> <C> <C> <C>
Growth Trust 0.85% .25%* 1.10%
</TABLE>
*Based on estimates of payments to be made during the current fiscal year.
EXAMPLE
A Contract Owner would pay the following expenses on a $1,000 investment,
assuming 5% annual return on assets, if the Contract Owner surrendered the
contract at the end of the applicable time period:
<TABLE>
<CAPTION>
Trust Portfolio 1 Year 3 Years
- --------------- ------ -------
<S> <C> <C>
Growth Trust $82 $129
</TABLE>
<PAGE> 2
A Contract Owner would pay the following expenses on a $1,000 investment,
assuming 5% annual return on assets, if the Contract Owner annuitized as
provided in the contract or did not surrender the contract at the end of the
applicable time period:
<TABLE>
<CAPTION>
Trust Portfolio 1 Year 3 Years
- --------------- ------ -------
<S> <C> <C>
Growth Trust $26 $80
</TABLE>
The example for the Portfolio does not include 5 and 10 year figures
because it is a newly formed portfolio.
V9.SUPP796
