Flexible Premium Deferred Variable Annuity Contract
(Variable Annuity)
Issued by
Midland National Life Insurance Company
(through Midland National Life Separate Account C)
Supplement dated September 1, 1998
to Prospectus dated May 1, 1998
The Midland Variable Annuity now includes the following new investment
options:
MFS VIT Emerging Growth
MFS VIT Research
MFS VIT Growth With Income
MFS VIT New Discovery
Lord, Abbett VCC Growth and Income
American Century VP Income & Growth
The investment objectives of the six newly available mutual fund portfolios are
as follows:
Portfolio Objective
MFS VIT Emerging Growth Series Seeks to provide long-term growth of
capital. Dividend and interest
income from portfolio securities,
if any, is incidental to the Series
investment objective of long-term
growth of capital.
MFS VIT Research Series Seeks to provide long-term
growth of capital and future income.
MFS VIT Growth With Income Series Seeks to provide reasonable current
income and long-term growth
of capital and income.
MFS VIT New Discovery Series Seeks capital appreciation.
Lord, Abbett VCC Growth and Income Seeks long-term growth of capital
Portfolio and income without excessive
fluctuation in market value.
American Century VP Income & Growth Seeks dividend growth, current
Portfolio income and capital appreciation.
The Portfolio will seek to achieve
its investment objective by investing
in a diversified portfolio of U.S.
stocks.
The six new Investment Divisions each invest in shares of a corresponding
portfolio of one of the following mutual funds:
Mutual Fund Investment Adviser
MFS Variable Insurance Trust Massachusetts Financial Services
(MFS VIT) Company
Lord, Abbett Series Fund, Inc.
(variable contract class) Lord, Abbett & Co.
(Lord, Abbett VCC)
American Century Variable Portfolios,
Inc. American Century Investment
(American Century) Management, Inc.
The table on the following page summarizes the charges and deductions that may
be applicable to an investment in the six portfolios listed above. These
charges and deductions are explained in the prospectus for the Variable Annuity
and the prospectuses for the individual portfolios.
This Prospectus Supplement must be accompanied or preceded
by the Prospectus dated May 1, 1998 for the Variable Annuity
and by the Prospectus dated May 1, 1998 for each Fund portfolio listed above.
The Fund portfolios described above and the other Fund portfolios described in
the Prospectus dated May 1, 1998 for the Variable Annuity are not available for
purchase directly by the general public, and are not the same as the mutual
funds with very similar or nearly identical names that are sold directly to the
public. However, the investment objectives and policies of certain of the
Funds portfolios are very similar to the investment objectives and policies of
other (publicly available) mutual fund portfolios that have very similar or
nearly identical names and that are or may be managed by the same investment
adviser or manager. Nevertheless, the investment performance and results of the
Funds portfolios available under the Contracts may be lower, or higher, than
the investment results of such other (publicly available) portfolios. There can
be no assurance, and no representation is made, that the investment results of
any of the Funds portfolios will be comparable to the investment results of
any other portfolio or mutual fund, even if the other portfolio or mutual fund
has the same investment adviser or manager and the same investment objectives
and policies, and a very similar name.
This Prospectus Supplement provides very limited information about the newly
available Fund portfolios. The prospectuses for these portfolios, which
accompany this Prospectus Supplement, describe the investment objectives,
policies and risks of the portfolio. The information in this Prospectus
Supplement is qualified in its entirety by the information included in the
Prospectus for the Variable Annuity and the prospectus for the portfolios.
In addition to fees and charges deducted under the Contracts (described in the
Prospectus for the Variable Annuity), certain fees and charges are deducted by
each Fund for managing each portfolios investments and providing services to
the portfolio. The table below summarizes these portfolio expenses:
Portfolio Annual Expenses (1)
(as a percentage of Portfolio average net assets)
Management Other Total Annual
Portfolio Fees Expenses Expenses (2)
MFS VIT Emerging Growth Series 0.75% 0.12% 0.87%
MFS VIT Research Series 0.75% 0.13% 0.88%
MFS VIT Growth With Income Series (3) 0.75% 0.25% 1.00%
MFS VIT New Discovery Series (3) 0.90% 0.25% 1.15%
Lord, Abbett VCC Growth and Income Portfolio 0.50% 0.02% 0.52%
American Century VP Income & Growth Portfolio 0.70% 0.00% 0.70%
(1) The Fund data was provided by Massachusetts Financial Services Company,
Lord, Abbett Distributor LLP and American Century Investment Management,
Inc. Midland has not independently verified the accuracy of the Fund data.
(2) The annual expenses shown are based on actual expenses for 1997, except for
the MFS VIT New Discovery Series and American Century VP Income &
Growth Portfolio where they are based on estimated expenses for 1998.
(3) MFS has agreed to bear expenses for these Series, subject to reimbursement
by these Series such that each such Series Other Expenses shall not exceed
0.25%. Without this limitation on the Other Expenses, the Other Expenses and
Total Annual Expenses would be:
Other Total Annual
Series Expenses Expenses
MFS VIT Growth With Income Series 0.35% 1.10%
MFS VIT New Discovery Series 0.47% 1.37%
Expense Examples:
If You surrender or annuitize 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:
One Three Five Ten
Year Year Year Year
MFS VIT Emerging Growth Series $94 $125 $158 $274
MFS VIT Research Series 94 125 159 275
MFS VIT Growth With Income Series 96 129 165 287
MFS VIT New Discovery Series 97 133 172 301
Lord, Abbett VCC Growth and Income 91 114 140 238
American Century VP Income & Growth 93 120 149 256
If you do not surrender Your Contract, You would pay the following expenses on
a $1,000 investment, assuming 5% annual return on assets:
One Three Five Ten
Year Year Year Year
MFS VIT Emerging Growth Series $24 $75 $128 $274
MFS VIT Research Series 24 75 129 275
MFS VIT Growth With Income Series 26 79 135 287
MFS VIT New Discovery Series 27 83 142 301
Lord, Abbett VCC Growth and Income 21 64 110 238
American Century VP Income & Growth 23 70 119 256
The above examples are based on actual expenses for 1997, or estimated
expenses for 1998, as indicated above. Actual expenses are shown under the
table titled Portfolio Annual Expenses and are net of any fee waivers or
expenses reimbursements.
The examples should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown. The assumed
5% annual return is hypothetical. Past or future annual returns may be greater
or less than the assumed amount. The above examples reflect the $33 Contract
Maintenance Charge as an annual charge of 0.13% of assets. The 0.13% is based
on an average contract value of $27,000.
