FLEXIBLE PREMIUM VARIABLE
LIFE INSURANCE CONTRACT
ISSUED BY
LUTHERAN BROTHERHOOD
Supplement to Prospectus Dated May 1, 1996
The general purpose of this supplement is to provide information about the
Charitability (SM) for Life benefit now available to Contract Owners for
certain Contracts. Charitability for Life is a benefit that enables Contract
Owners to increase their charitable gifts to Lutheran charitable organizations
and congregations. Charitability for Life is available for no additional
premium whenever a Contract Owner has designated a Lutheran charitable
organization or congregation as a beneficiary for at least $1,000 of Death
Benefit on his or her Contract.
Upon the death of the Insured, the Lutheran charitable organization or
congregation will receive the Death Benefit proceeds as designated, and LB
will contribute an additional 10% of that amount to the charitable
organization or congregation, up to $25,000 per insured. Any legally
incorporated nonprofit Lutheran organization that qualifies under Internal
Revenue Code Section 170(c) is eligible to receive Charitability for Life
benefits. The benefit may vary state-by-state and an LB representative should
be consulted as to whether and to what extent the benefit is available in a
particular state and on any particular Contract.
This supplement also provides information about new changes to compensation
being paid to LB Representatives for the sale of the Contracts. Accordingly,
the current references to compensation under the heading Sales and Other
Agreements contained on page 63 of the prospectus for the Contract are amended
to read as follows:
Compensation of LB Representatives. LB Representatives selling the Contracts
will receive a 3% service fee of all premiums paid on the Contract. In
addition to the service fee, commissions will be paid to the LB
Representatives based on a commission schedule summarized below. Further, LB
Representatives may be eligible to receive certain benefits based on the
account of earned commissions.
During the first Contract Year, commissions will be not more than 52% of the
Death Benefit Guarantee Premium for the Contract. In the second and third
Contract Years, commissions will equal, in general, 7% of the Death Benefit
Guarantee Premium for the Contract. The Death Benefit Guarantee Premium at
issue will include premiums attributable to riders and supplemental benefits
included in the Contract.
For the first year following an increase in Face Amount, commissions will be
not more than 47% of the Death Benefit Guarantee Premium for the increase. In
the second and third year following an increase, commissions will equal, in
general, 7% of the Death Benefit Guarantee Premium for the increase.
For Contracts with an initial Face Amount greater than or equal to $500,000
but less than $1,000,000, during the first Contract Year after issue or
following an increase in Face Amount, the commissions will be not more than
42% of the applicable Death Benefit Guarantee Premium. For Contracts with an
initial Face Amount greater than or equal to $1,000,000, during the first
Contract Year after issue or following an increase in Face Amount, the
commissions will be not more than 40% of the applicable Death Benefit
Guarantee Premium. In the second and third year after issue or following an
increase, the commissions will equal, in general, 6% of the applicable Death
Benefit Guarantee Premium.
For the first year following the addition of a spouse or child rider, the
commission will be not more than 47% of the Death Benefit Guarantee Premium
for the rider. In the second and third year following the addition of a rider,
commissions will equal, in general, 7% of the Death Benefit Guarantee Premium
for the rider.
For the first year following an increase in Face Amount of a spouse rider, the
commission will be not more than 47% of the Death Benefit Guarantee Premium
for the increase in Face Amount of the spouse rider. In the second and third
year following the increase, commissions will equal, in general, 7% of the
Death Benefit Guarantee Premium for the increase in the spouse rider.
The date of this Supplement is January 9, 1997
VP20-1 LB STK
