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NYLIAC VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT-I
NYLIAC VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT-II
SUPPLEMENT DATED OCTOBER 24, 1997 TO PROSPECTUS DATED MAY 1, 1997
for
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
This Supplement describes the availability of a guaranteed minimum death
benefit ("GMDB") rider and a more favorable current interest rate on your
Policy's loaned value. This Supplement provides information that a prospective
investor should know before investing. Please read it carefully and retain it
for future reference. This Supplement is not valid unless accompanied by the
current prospectus for the Policies ("Policy Prospectus"). Defined terms used
but not defined in this Supplement have the same meanings as in the Policy
Prospectus. The Policy Prospectus should be read in light of the following
additional information:
1. The following sentence is added to page 10 of the Policy Prospectus at the
end of "Question 8. How long will the Policy remain in force?" and
"Question 9. Is the level of the Death Benefit guaranteed?"
Additional provisions apply to Policies with a Guaranteed Minimum
Death Benefit rider. For details see ADDITIONAL PROVISIONS OF THE
POLICY - Additional Benefits You Can Get By Rider - Guaranteed Minimum
Death Benefit Rider at page ___.
2. The following sentence is added to page 35 of the Policy Prospectus at the
end of the first paragraph of the Section titled "Interest on Loaned
Value."
Currently, the amount in the Fixed Account which is collateral for an
outstanding loan is credited with interest at a rate no less than 2%
less than the effective annual loan interest rate during the first 10
Policy Years and 0.5% less than the effective annual loan interest
rate in subsequent Policy Years.
3. The following section is added to page 47 of the Policy Prospectus
immediately following the first paragraph of the Section titled "Additional
Benefits You Can Get By Rider."
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Important Notice Regarding Availability: The GMDB rider is subject to state
regulatory approvals and may not be available in all states. Please contact
your registered representative to determine if the GMDB rider is available in
your state. The enhanced interest rate on a Policy's loaned value is available
in all states except New York.
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New York Life Insurance and Annuity Corporation
(A Delaware Corporation)
51 Madison Avenue
New York, New York 10010
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GUARANTEED MINIMUM DEATH BENEFIT RIDER
Prior to its expiry date, this rider guarantees that the Policy will
never lapse because the Policy's Cash Surrender Value is not enough to
cover the current monthly deduction charges defined in the Policy.
Generally, this rider is available with expiry dates of the
Policyowner's age 70, 80 and, except for Policies issued with a
substandard underwriting class, 95. The Policyowner can choose any
one of the expiry dates, but the coverage period for the rider must be
at least 10 years.
In exchange for the guarantee provided by this rider, the Policyowner
is required to pay a certain amount of Premiums into the Policy. A
monthly GMDB premium is calculated for the Policy and is shown on the
Policy Data Page. This amount is expressed monthly, but Premiums do
not have to actually be paid on a monthly basis. On each Monthly
Deduction Day, a GMDB premium test is performed. The test must be
satisfied or the rider may end. The GMDB premium test is satisfied as
of a Monthly Deduction Day if the total Premiums paid to date under
the Policy, less any Partial Withdrawal made, are at least equal to
the cumulative sum of all monthly GMDB premiums from the date this
rider is issued up to that Monthly Deduction Day. The monthly GMDB
premium can change if certain changes are made to the Policy.
If on a Monthly Deduction Day, the Policy does not satisfy the GMDB
premium test and the amount by which the test is failed is more than
one monthly GMDB premium, the Policyowner will be notified that the
rider will end unless the amount necessary to pass the GMDB premium
test is paid by the next Monthly Deduction Day. However, we will
reinstate this rider if the required payment is received before the
Monthly Deduction Day which follows the date the rider ended.
In addition to the Premium requirement described above, Policyowners
must pay a charge for the rider. The charge is $0.01 per $1000 of the
sum of a Policy's base face amount plus any face amount provided by an
Other Covered Insured rider. This charge will be deducted from the
Policy's cash value on each Monthly Deduction Day.
If a loan is taken during the first two Policy Years, this rider will
end when the loan is taken. After the first two Policy Years, loans
are permitted but are restricted. In general, the Cash Surrender
Value minus the requested loan must exceed the total of the monthly
GMDB premiums, accumulated at an annual effective interest rate of 6%,
as of that date. If a Policyowner requests a loan which would cause
the GMDB rider to end, we will delay processing the request until we
receive the Policyowner's signed authorization to terminate the Rider.
Once terminated, the rider cannot be reinstated.
This rider will also end if the rider reaches its expiry date (age 70,
80 or 95, as selected by the Policyowner) or if the Policy ends or is
surrendered.
The GMDB rider also covers the monthly deduction charges due for any
other riders which may be included in the Policy. However, if monthly
deduction charges are being waived under another rider attached to the
Policy, the GMDB rider is placed on an inactive status and no benefit
under the GMDB rider is in effect. While the rider is on an inactive
status, no charge for the rider is payable and no GMDB premium testing
will be performed. However, once monthly deductions for this Policy
are no longer being waived, the GMDB rider will automatically be
restored. Beginning on the next Monthly Deduction Day, the charge for
this rider will be deducted and the GMDB premium test must again be
satisfied.
Issued by: New York Life Insurance and Annuity Corporation
Distributed by: NYLIFE Distributors Inc. (Member NASD)
