AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 16, 1998
REGISTRATION NO. 33-89848
811-8190
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
PRE-EFFECTIVE AMENDMENT NO. [ ]
POST-EFFECTIVE AMENDMENT NO. 4 [x]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [x]
Amendment No. 10
UNITED OF OMAHA SEPARATE ACCOUNT C
(EXACT NAME OF REGISTRANT)
UNITED OF OMAHA LIFE INSURANCE COMPANY
(NAME OF DEPOSITOR)
Mutual of Omaha Plaza, Omaha, Nebraska, 68175
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES)
DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE
(402) 351-5087
NAME AND ADDRESS OF AGENT FOR SERVICE:
Kenneth W. Reitz, Esquire
Mutual of Omaha Companies
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska, 68175-1008
It is proposed that this filing will become effective (check appropriate
box):
[ ] immediately upon filing pursuant to paragraph (b)
[x] on May 1, 1998 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on __________ pursuant to paragraph (a)(i)
If appropriate, check the following box:
[ ] This Post-Effective Amendment designates a new effective date for
a previously filed Post-Effective Amendment.
<PAGE>
CROSS REFERENCE SHEET
Pursuant to Rule 495
Showing Location in Part A (Prospectus) and
Part B (Statement of Additional Information)
of Registration Statement of Information Required by Form N-4
PART A
Item of Form N-4 Prospectus Caption
1. Cover Page..................... Cover Page
2. Definitions.................... Definitions
3. Synopsis....................... Summary; Historical Performance Data
4. Condensed Financial Information. Financial Statements
5. General
(a) Depositor....................... United of Omaha Life Insurance Company
(b) Registrant...................... The Variable Account
(c) Portfolio Company............... The Series Funds
(d) Fund Prospectus................. The Series Funds
(e) Voting Rights................... Voting Rights
6. Deductions and Expenses
(a) General......................... Charges and Deductions
(b) Sales Load %.................... Withdrawal Charge
(c) Special Purchase Plan........... N/A
(d) Commissions..................... Distributor of the Policies
(e) Expenses - Registrant........... N/A
(f) Fund Expenses................... Expenses Including Investment
Advisory Fees
(g) Organizational Expenses......... N/A
7. Policies
(a) Persons with Rights............. The Policy; Election of Annuity Option;
Determination of Annuity Payments;
Annuity Starting Date; Ownership of the
Policy; Voting Rights
(b) (i) Allocation of Premium
Payments.................. Allocation of Purchase Payments
(ii) Transfers................. Transfers
(iii) Exchanges................. N/A
(c) Changes......................... Addition, Deletion or Substitution of
Investments; Election of Annuity Option;
Annuity Starting Date; Beneficiary;
Ownership of the Policy
(d) Inquiries....................... Summary
8. Annuity Period.................. Payout Options
9. Death Benefit................... Death of Annuitant or Owner Prior to
Annuity Starting Date
10. Purchase and Policy Values
2
<PAGE>
(a) Purchases....................... Policy Application and Issuance of
Policies; Purchase Payments
(b) Valuation....................... Accumulation Value; The Variable Account
Value
(c) Daily Calculation............... The Variable Account Value
(d) Underwriter..................... Distributor of the Policies
11. Redemptions
(a) By Owners....................... Withdrawals
By Annuitant.................... N/A
(b) Texas ORP....................... Restrictions Under the Texas Optional
Retirement Program
(c) Check Delay..................... Payment not Honored by Bank
(d) Lapse........................... N/A
(e) Free Look....................... Summary
12. Taxes........................... Certain Federal Income Tax Consequences
13. Legal Proceedings............... Legal Proceedings
14. Table of Contents for the
Statement of Statement of Additional
Additional Information.............. Information
PART B
Item of Form N-4 Statement of Additional
Information Caption
15. Cover Page...................... Cover Page
16. Table of Contents............... Table of Contents
17. General Information
and History......................... (Prospectus) United of Omaha Life
Insurance Company
18. Services
(a) Fees and Expenses
of Registrant................... N/A
(b) Management Policies............. N/A
(c) Custodian....................... Custody of Assets
Independent
Auditors ...................... Independent Auditors
(d) Assets of Registrant............ Custody of Assets
(e) Affiliated Person............... N/A
(f) Principal Underwriter........... Distribution of the Policies
19. Purchase of Securities
Being Offered................... Distribution of the Policies
Offering Sales Load............. N/A
20. Underwriters.................... Distribution of the Policies;
(Prospectus) Distributor of the Policies
21. Calculation of Performance
Data Calculation of Yields and Total Returns; Other Performance Data
22. Annuity Payments................ (Prospectus) Election of Payout Option;
(Prospectus) Determination of Annuity
Payments
23. Financial Statements............ Financial Statements
3
<PAGE>
PART C -- OTHER INFORMATION
Item of Form N-4 Part C Caption
24. Financial Statements
and Exhibits......................... Financial Statements and Exhibits
(a) Financial Statements............. Financial Statements
(b) Exhibits......................... Exhibits
25. Directors and Officers of........ Directors and Officers of the
the Depositor.................... Depositor
26. Persons Controlled By or Under
Common Control with the Persons Controlled By or Under Common
Depositor or Registrant ......... Control with the Depositor or Registrant
27. Number of Policy Owners.......... Number of Policy Owners
28. Indemnification.................. Indemnification
29. Principal Underwriters........... Principal Underwriters
30. Location of Accounts
and Records.......................... Location of Accounts and Records
31. Management Services.............. Management Services
32. Undertakings..................... Undertakings
Signature Page....................... Signatures
4
<PAGE>
Prospectus May 1, 1998
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
Issued Through
UNITED OF OMAHA SEPARATE ACCOUNT C
by
UNITED OF OMAHA LIFE INSURANCE COMPANY
This Prospectus describes the Ultrannuity Series V Variable Annuity Policy (the
"Policy"), a Flexible Payment Variable Deferred Annuity offered by United of
Omaha Life Insurance Company. The Policy is designed to aid in long-term
financial planning and provides for the accumulation of capital by individuals
on a tax-deferred basis for retirement or other long-term purposes.
The Owner may allocate Net Purchase Payments to one or more of the 27
Eligible investments, which are the 25 Ultrannuity Series V Subaccounts of the
United of Omaha Separate Account C (the "Variable Account") and the Fixed
Account or Systematic Transfer Account. Assets of each Subaccount of the
Variable Account are invested in a corresponding mutual fund Portfolio. The
mutual funds offered through the Policy, while they may have the same or similar
names of retail mutual funds, are not the same as those funds. By law, the
Policy may not offer those retail mutual funds, so it offers funds whose names
and characteristics may be similar to them but whose performance is not
necessarily related to the retail funds. The Portfolios are described in
separate prospectuses that accompany this Prospectus. The Policy's available
investment options are:
ALGER AMERICAN GROWTH PORTFOLIO
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
FEDERATED PRIME MONEY FUND II ("MONEY MARKET") PORTFOLIO
FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES PORTFOLIO
FIDELITY ASSET MANAGER: GROWTH PORTFOLIO
FIDELITY EQUITY INCOME PORTFOLIO
FIDELITY CONTRAFUND PORTFOLIO
FIDELITY INDEX 500 PORTFOLIO
MFS EMERGING GROWTH PORTFOLIO
MFS HIGH INCOME FUND PORTFOLIO
MFS RESEARCH PORTFOLIO
MFS WORLD GOVERNMENT PORTFOLIO
MFS VALUE SERIES PORTFOLIO
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
MORGAN STANLEY FIXED INCOME PORTFOLIO
PIONEER CAPITAL GROWTH PORTFOLIO
PIONEER REAL ESTATE PORTFOLIO
SCUDDER GLOBAL DISCOVERY PORTFOLIO
SCUDDER GROWTH & INCOME PORTFOLIO
SCUDDER INTERNATIONAL PORTFOLIO
T. ROWE PRICE EQUITY INCOME PORTFOLIO
T. ROWE PRICE INTERNATIONAL PORTFOLIO
T. ROWE PRICE LIMITED TERM BOND PORTFOLIO
T. ROWE PRICE NEW AMERICA GROWTH PORTFOLIO
T. ROWE PRICE PERSONAL STRATEGY BALANCED PORTFOLIO
FIXED ACCOUNT
SYSTEMATIC TRANSFER ACCOUNT
The Accumulation Value in the Variable Account will vary in accordance with
the investment performance of the Subaccounts selected by the Owner. Therefore,
the Owner bears the entire investment risk under this Policy for all amounts
allocated to the Variable Account. Amounts allocated to the Fixed Account or
Systematic Transfer Account are guaranteed by United of Omaha Life Insurance
Company ("United of Omaha") and will earn a specified rate of interest declared
periodically.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN INTEREST IN THE POLICY IS NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR
ENDORSED BY ANY BANK, NOR IS THE POLICY FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. THE
POLICY INVOLVES INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
This Prospectus sets forth the information that a prospective investor should
consider before investing in a Policy. A Statement of Additional Information
about the Policy and the Variable Account, which has the same date as this
Prospectus, has been filed with the Securities and Exchange Commission and is
incorporated herein by reference. The Statement of Additional Information is
available at no cost to any person requesting a copy by writing United of Omaha
at its Service Office (United of Omaha Variable Product Service, P.O. Box 8430,
Omaha, Nebraska 68108-0430) or by calling 1-800-238-9354. The table of contents
of the Statement of Additional Information is included at the end of this
Prospectus.
1
<PAGE>
The Policy may be purchased with an initial Purchase Payment of at least
$5,000, and an Owner generally may pay additional Purchase Payments of at least
$500 each (but no additional Purchase Payments are required).
The Policy provides for periodic annuity payments to be made by United of
Omaha to the Owner, if living, for the life of the Annuitant or for some other
period, beginning on the Annuity Starting Date selected by the Owner. Prior to
the Annuity Starting Date, the Owner can transfer Accumulation Value among the
Eligible Investments, that is, among the Fixed Account or Systematic Transfer
Account and the 25 Subaccounts of the Variable Account (some prohibitions and
restrictions apply, especially on transfers out of the Fixed Account or
Systematic Transfer Account). The Owner can also elect to withdraw all or a
portion of the Cash Surrender Value; however, withdrawals may be taxable,
subject to a Withdrawal Charge and/or a tax penalty, and withdrawals from the
Fixed Account or Systematic Transfer Account may be delayed.
THIS PROSPECTUS AND THE STATEMENT OF ADDITIONAL INFORMATION GENERALLY DESCRIBE
ONLY THE POLICIES AND THE VARIABLE ACCOUNT, EXCEPT WHEN THE FIXED ACCOUNT IS
SPECIFICALLY MENTIONED.
PLEASE READ THIS PROSPECTUS CAREFULLY
AND RETAIN IT FOR FUTURE REFERENCE.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. NO DEALER, SALESPERSON OR OTHER PERSON
IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION
WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN
OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
THIS PROSPECTUS MUST BE ACCOMPANIED OR PRECEDED
BY A CURRENT PROSPECTUS FOR EACH PORTFOLIO
2
<PAGE>
TABLE OF CONTENTS
Page
DEFINITIONS .......................................................... 4
SUMMARY ............................................................. 6
FINANCIAL STATEMENTS.................................................. 13
UNITED OF OMAHA LIFE INSURANCE COMPANY................................ 15
THE ELIGIBLE INVESTMENTS.............................................. 16
The Variable Account
Historical Performance Data
Standardized Performance Data
Non-Standardized Performance Data
The Fixed Account and The Systematic Transfer Account
Transfers
Dollar Cost Averaging
Asset Allocation Program
THE POLICY............................................................ 28
Policy Application and Issuance of Policies
Purchase Payments
Accumulation Value
Telephone Transactions
DISTRIBUTIONS UNDER THE POLICY........................................ 30
Withdrawals
Systematic Withdrawal Plan
Annuity Payments
Annuity Starting Date
Election of Payout Option
Payout Options
Death Benefit
Death of Owner Prior to Annuity Starting Date
Enhanced Death Benefit
Accidental Death Benefit
Death of Owner On or After Annuity Starting Date
Beneficiary
IRS Required Distributions
Restrictions Under the Texas Optional Retirement Program
CHARGES AND DEDUCTIONS................................................ 34
Withdrawal Charge
Waiver of Withdrawal Charges
Mortality and Expense Risk Charge
Administrative Charges
Enhanced Death Benefit Charge
Transfer Fee
Premium Taxes
Federal, State and Local Taxes
Other Expenses Including Investment Advisory Fees
CERTAIN FEDERAL INCOME TAX CONSEQUENCES............................... 37
Tax Status of the Policy
Taxation of Annuities
DISTRIBUTOR OF THE POLICIES........................................... 41
VOTING RIGHTS......................................................... 41
PREPARING FOR THE YEAR 2000........................................... 41
LEGAL PROCEEDINGS..................................................... 41
STATEMENT OF ADDITIONAL INFORMATION................................... 42
3
<PAGE>
DEFINITIONS
Accumulation Unit -- An accounting unit of measure used in calculating the
Accumulation Value in the Variable Account prior to the Annuity Starting Date.
Accumulation Value -- The dollar value as of any Valuation Date prior to the
Annuity Starting Date of all amounts accumulated under the Policy.
Anniversary Value -- An amount equal to the Accumulation Value on a Policy
Anniversary.
Annuitant -- The person on whose life Annuity Payments involving life
contingencies are based. If the Annuitant is other than the Owner, the Annuitant
has no rights under the Policy.
Annuity Payment -- A payment made by United of Omaha under an annuity Payout
Option.
Annuity Purchase Value -- An amount equal to the Accumulation Value for the
Valuation Period which ends immediately preceding the Annuity Starting Date
reduced by any Withdrawal Charge, and any charge for applicable premium or
similar taxes.
Annuity Starting Date -- The date upon which Annuity Payments are to begin. The
latest Annuity Starting Date permitted is when the Annuitant attains age 95.
(Age 85 in Pennsylvania.)
Average Death Benefit Amount -- The mean of the death benefit amount on the most
recent policy anniversary and the death benefit amount on the immediately
preceding Policy Anniversary. The Average Death Benefit Amount is the basis used
to calculate the Enhanced Death Benefit Charge under Policies issued with the
Elective Death Benefit Amendment.
Beneficiary -- The person(s) or other legal entity listed by the Owner in the
Policy application and referred to in the Policy as the named beneficiary. In
the case of joint Owners, the surviving joint Owner is the primary Beneficiary
and the named Beneficiary is the contingent Beneficiary. If the named
Beneficiary does not survive the Owner, the estate of the Owner is the
Beneficiary.
Cash Surrender Value -- The Accumulation Value less any applicable Withdrawal
Charge, any applicable Policy Fee, and any applicable premium tax charge not
previously deducted, and, if the Enhanced Death Benefit is elected, the Enhanced
Death Benefit Charge.
Current Interest Rate Guarantee -- United of Omaha's guarantee to pay a declared
current interest rate on amounts under a Policy allocated to the Fixed Account
or to amounts allocated to the Systematic Transfer Account. A particular Current
Interest Rate Guarantee will be in effect for at least one year.
Date of Issue -- The date the Policy is issued, as shown on the Policy Data
Page.
Due Proof of Death -- A certified copy of a death certificate, a certified copy
of a decree of a court of competent jurisdiction as to the finding of death, a
written statement by the attending physician, or any other proof satisfactory to
United of Omaha will constitute Due Proof of Death.
Eligible Investments -- The Fixed Account and any of the Subaccounts of the
Variable Account.
Enhanced Death Benefit -- The death benefit available under Policies issued with
the Elective Death Benefit Amendment.
Enhanced Death Benefit Charge -- An amount equal to an annual rate of 0.35% of
the Average Death Benefit Amount. The Enhanced Death Benefit Charge is assessed
under each Policy issued with the Elective Death Benefit Amendment on each
Policy Anniversary or upon full surrender.
Fixed Account -- An account which consists of general account assets of United
of Omaha Life Insurance Company.
Net Purchase Payment -- A Purchase Payment less any charge for applicable
premium taxes.
4
<PAGE>
Nonqualified Policy -- A Policy other than a Qualified Policy.
Payee -- The person who receives Annuity Payments under the Policy.
Payout Option -- Any method of payment of Policy Proceeds under the Policy.
Policy -- The variable annuity policy offered by this Prospectus.
Policy Anniversary -- The same month and day as the Date of Issue in each
calendar year after the calendar year in which the Date of Issue occurs.
Policy Owner or Owner -- The person(s) who may exercise all rights and
privileges under the Policy. If there are joint Owners, the signatures of both
Owners are needed to exercise rights under the Policy. The Policy Owner may
change the ownership of the Policy or pledge it as collateral by assigning it.
Policy Year -- A Policy Year begins on the Date of Issue and each Policy
Anniversary.
Portfolio -- A Series Fund's separate investment series that is available under
the Policy.
Purchase Payment -- An amount paid to United of Omaha by the Policy Owner or on
the Policy Owner's behalf as consideration for the benefits provided by, and in
accordance with the provisions of, the Policy.
Proceeds -- The death benefit or the Annuity Purchase Value.
Qualified Policy -- A Policy that may be issued as set forth herein in
connection with a qualified plan that receives favorable tax treatment under
Section 401, 403(b), or 408 of the Internal Revenue Code of 1986, as amended.
Series Funds -- Diversified, open-end investment management companies in which
the Variable Account invests.
Service Office - United of Omaha Variable Product Service, P.O. Box 8430, Omaha,
Nebraska 68108-0430. Telephone: 1-800-238-9354.
Standard Death Benefit -- The death benefit available under Policies issued
without the Elective Death Benefit Amendment.
Subaccount -- A segregated account within the Variable Account which invests in
a specified Portfolio of one of the Series Funds.
Systematic Transfer Account -- An account which consists of general account
assets of United of Omaha Life Insurance Company and is available for use
exclusively by Owners electing to participating in the Systematic Transfer
Enrollment Program.
United of Omaha -- United of Omaha Life Insurance Company, the issuer of the
Policies.
Valuation Date -- Each day that the New York Stock Exchange is open for trading.
Valuation Period -- The period commencing at the close of business of the New
York Stock Exchange on each Valuation Date and ending at the close of business
for the next succeeding Valuation Date.
Variable Account -- United of Omaha Separate Account C, a separate account
maintained by United of Omaha in which a portion of United of Omaha's assets has
been allocated for the Policy and certain other policies.
Written Notice or Request -- Written notice, signed by the Policy Owner, that
gives United of Omaha the information it requires and is received at the Service
Office.
5
<PAGE>
SUMMARY
THE POLICY
The Ultrannuity Series V Variable Annuity is a Flexible Payment Variable
Deferred Annuity Policy. The Policy can be purchased on a non-tax qualified
basis ("Nonqualified Policy") or in connection with certain plans qualifying for
favorable federal income tax treatment ("Qualified Policy"). The Owner allocates
the Net Purchase Payments among the Eligible Investments offered under the
Policy by United of Omaha Life Insurance Company ("United of Omaha"). These
Eligible Investments are the 25 Subaccounts of United of Omaha Separate Account
C (the "Variable Account") and the Fixed Account or Systematic Transfer Account.
THE ELIGIBLE INVESTMENTS
THE VARIABLE ACCOUNT. The Variable Account is a segregated investment
account of United of Omaha. It is divided into Subaccounts, each of which
invests exclusively in shares of a corresponding mutual fund Portfolio. The
available Portfolios are: the Alger American Growth Portfolio and the Alger
American Small Capitalization Portfolio of the Alger American Fund ("Alger
Fund"); the Federated Prime Money Fund II Portfolio and the Federated Fund for
U.S. Government Securities II Portfolio of the Insurance Management Series Trust
("Insurance Management Series"); the Fidelity Equity Income Portfolio of the
Variable Insurance Products Fund ("Fidelity VIP Fund"); the Fidelity Asset
Manager: Growth Portfolio, Fidelity Contrafund Portfolio, and Fidelity Index 500
of the Variable Insurance Products Fund II ("Fidelity VIP Fund II"); the MFS
Emerging Growth Portfolio, the MFS High Income Fund Portfolio, the MFS Research
Portfolio, MFS Value Series and the MFS World Government Portfolio of the MFS
Variable Insurance Trust ("MFS Trust"); the Morgan Stanley Emerging Markets
Equity Portfolio, and the Morgan Stanley Fixed Income Portfolio of the Morgan
Stanley Universal Funds, Inc.("Morgan Stanley Fund"); the Pioneer Capital Growth
Portfolio of the Pioneer Capital Growth Fund and the Pioneer Real Estate
Portfolio of the Pioneer Real Estate Fund, (collectively "Pioneer Funds"), the
Scudder Global Discovery Portfolio, Scudder Growth & Income and the Scudder
International Portfolio of the Scudder Variable Life Investment Fund ("Scudder
Fund"); the T. Rowe Price International Stock Portfolio of T. Rowe Price
International Series, Inc. ("T. Rowe Price International Series"); the T. Rowe
Price Limited-Term Bond Portfolio of T. Rowe Price Fixed Income Series, Inc.
("T. Rowe Price Fixed Income Series"); the T. Rowe Price Personal Strategy
Balanced Portfolio, the T. Rowe Price New America Growth Portfolio and T. Rowe
Price Equity Income Portfolio of T. Rowe Price Equity Series, Inc. ("T. Rowe
Price Equity Series") (each of the Alger Fund, Insurance Management Series,
Fidelity VIP Fund, Fidelity VIP Fund II, MFS Trust, Morgan Stanley Fund, Scudder
Fund, T. Rowe Price International Series, T. Rowe Price Fixed Income Series, and
T. Rowe Price Equity Series are referred to as the "Series Funds"). Because the
Accumulation Value will increase or decrease in accordance with the investment
experience of the selected Subaccounts, the Owner bears the entire investment
risk with respect to Net Purchase Payments allocated to, and amounts transferred
to, the Variable Account.(See "THE ELIGIBLE INVESTMENTS: The Variable Account.")
THE FIXED ACCOUNT. The Fixed Account guarantees safety of principal and a
minimum 3% effective annual return on Net Purchase Payments allocated to, and
amounts transferred to, the Fixed Account. United of Omaha may, in its sole
discretion, declare a higher current interest rate. A current interest rate is
guaranteed for at least one year. (See "THE ELIGIBLE INVESTMENTS: The Fixed
Account and the Systematic Transfer Account." )
THE SYSTEMATIC TRANSFER ACCOUNT. The Systematic Transfer Account is a fixed
account to which your assets may initially be allocated if you elect to
participate in the Systematic Transfer Enrollment Program to automatically
transfer a predetermined dollar amount on a monthly basis to any of the
subaccounts chosen at the time of application. The Systematic Transfer Account
guarantees safety of principal and a minimum 3% effective annual return on Net
Purchase Payments allocated to, and amounts transferred to, the Fixed Account.
United of Omaha may, in its sole discretion, declare a higher current interest
rate. A current interest rate is guaranteed for at least one year. (See "THE
ELIGIBLE INVESTMENTS: The Fixed Account and Systematic Transfer Account.")
PURCHASE PAYMENTS
A Nonqualified Policy or a Qualified Policy may be purchased with an
Initial Purchase Payment of at least $5,000. An Owner may pay additional
Purchase Payments of at least $500 each at any time prior to the Annuity
Starting Date and up to the Policy Anniversary next following such Owner's 88th
birthday. There is no deduction from Purchase Payments for sales or
administrative expenses, although a charge for any applicable premium taxes will
be deducted from Purchase Payments, and there is a Withdrawal Charge. (See
"CHARGES AND DEDUCTIONS: Withdrawal Charge." )
Net Purchase Payments will be allocated among the Eligible Investments
(that is, among the Fixed Account or Systematic Transfer Account and/or the
Subaccounts of the Variable Account) in accordance with the allocation
percentages specified by the Owner in the Policy application. Any allocation
must be in whole percentages, and the total allocation must equal 100%. (The
Policy provides for a "Free Look Period" during which the Owner can return the
Policy for a full refund of the Accumulation Value or Purchase Payments as
determined by the law of the state of issue. In some states the Net Purchase
Payment(s) allocated to the Variable Account will be held in the Money Market
Subaccount during the Free Look Period, and then allocated among the other
Subaccounts as instructed by the Owner. See "SUMMARY: Free Look Right.")
Allocations for additional Net Purchase Payments may be changed by sending
Written Notice to United of Omaha's Service Office or by telephone (subject to
the provisions described below under "THE POLICY: Telephone Transactions.")
6
<PAGE>
TRANSFERS
An Owner can transfer Accumulation Value from one Subaccount to another
Subaccount or to the Fixed Account with certain limitations. The minimum amount
which may be transferred is the lesser of $500 or the entire Subaccount Value.
However, following a transfer out of a particular Subaccount, at least $500 must
remain in that Subaccount. Transfers out of the Variable Account currently may
be made as often as the Owner wishes either by telephone (subject to the
provisions described below under "THE POLICY: Telephone Transactions.") or by
sending Written Notice to the Service Office.
There is no charge for the first 12 transfers during any Policy Year.
However, a charge of $10 may be imposed for any transfers from Subaccounts in
excess of 12 per Policy Year. No such charge will be imposed on transfers out of
the Fixed Account or the Systematic Transfer Account.
Transfers from the Fixed Account to one or more Subaccounts of the Variable
Account may be made only once each Policy Year. The maximum amount that can be
transferred out of the Fixed Account during any Policy Year is 10% of the Fixed
Account Value on the date of the transfer. (See "THE ELIGIBLE INVESTMENTS:
Transfers.") Transfers from the Fixed Account may be delayed up to 6 months.
All funds deposited in the Systematic Transfer Account will be
automatically transferred to the subaccounts or the Fixed Account within 13
months of deposit pursuant to your instructions. These transfers do not count
toward the 12 free transfers allowed each policy year. You may not transfer
funds to the Systematic Transfer Account. No additional funds (other than funds
designated in the application to be transferred into the Policy pursuant to an
Internal Revenue Code Section 1035 transfer) may be allocated to the Systematic
Transfer Account after the Date of Policy Issue. (See "THE ELIGIBLE INVESTMENTS:
Transfers.")
WITHDRAWALS
The Owner may elect to surrender the Policy for its Cash Surrender Value,
or to withdraw a portion of the Cash Surrender Value ($500 minimum) at any time
prior to the earlier of the Owner's death or the Annuity Starting Date. The Cash
Surrender Value equals the Accumulation Value less any applicable Withdrawal
Charge, any applicable Policy Fee, any applicable premium taxes, and, if the
Enhanced Death Benefit Amendment is attached, the Enhanced Death Benefit Charge.
(See "CHARGES AND DEDUCTIONS: Enhanced Death Benefit Charge.") A surrender or
withdrawal request must be made by Written Request, and a request for a partial
withdrawal may specify the Eligible Investment(s) from which the withdrawal is
to be made, but no more than a pro-rata amount can be deducted from the Fixed
Account or Systematic Transfer Account. If the Owner does not provide specific
withdrawal instructions, the withdrawal will be made pro-rata from each Eligible
Investment. There is currently no limit on the frequency or timing of
withdrawals from the Variable Account, but surrenders and partial withdrawals
from the Fixed Account or Systematic Transfer Account may be delayed for up to
six months. Withdrawals may be taxable, and subject to a Withdrawal Charge
and/or a tax penalty. (See "CHARGES AND DEDUCTIONS: Federal, State and Local
Taxes.") If the Contract is issued pursuant to a Qualified Plan, withdrawals may
be restricted by applicable law or the terms of the Qualified Plan.
CHARGES AND DEDUCTIONS
WITHDRAWAL CHARGE. In order to permit maximum investment of Purchase
Payments, United of Omaha does not deduct sales or other charges at the time of
investment. However, Purchase Payments surrendered or withdrawn or applied to
provide Annuity Payments within seven years after they were made will be subject
to a Withdrawal Charge to partially cover sales expenses, but each Policy Year
up to 15% of the Accumulation Value may be withdrawn as of the date of the first
withdrawal that Policy Year without imposition of the Withdrawal Charge. In
addition, amounts applied to provide a death benefit or applied after the second
Policy Year to the Payout Option that provides a Lifetime Income (Option 4) will
not be subject to a Withdrawal Charge. The applicable Withdrawal Charge is
calculated separately as to each Purchase Payment based on the period of time
elapsed since the Purchase Payment was made. There will be no Charge imposed on
any Purchase Payments in connection with a withdrawal or surrender that occurs
more than seven years after the Purchase Payment was made. The Withdrawal Charge
is 7% of any Purchase Payment withdrawn within one year after the Purchase
Payment is made, and the percentage declines by 1% each year to zero after the
seventh year following the date of the Purchase Payment. For purposes of
calculating the Withdrawal Charge, the oldest Purchase Payment is deemed to be
withdrawn first (a first-in, first-out arrangement), and all Purchase Payments
are deemed to be withdrawn before any earnings. (See "CHARGES AND DEDUCTIONS:
Withdrawal Charge." )
7
<PAGE>
ACCOUNT CHARGES. United of Omaha deducts a daily charge equal to a
percentage of the net assets in the Variable Account for the mortality and
expense risks assumed by United of Omaha. The annual rate of this charge is
1.00% of the value of each Subaccount's net assets. (See "CHARGES AND
DEDUCTIONS: Mortality and Expense Risk Charge.")
United of Omaha also deducts a daily Administrative Expense Charge from the
net assets of the Variable Account to partially cover expenses incurred by
United of Omaha in connection with the administration of the Variable Account
and the Policies. The annual rate of this charge is .20% of the value of each
Subaccount's net assets. (See "CHARGES AND DEDUCTIONS: Administrative Charges.")
The account charges for mortality and expense risks and administrative
expenses are guaranteed not to increase.
In the event the Owner elects to purchase the Enhanced Death Benefit, a
charge equal to the annual rate of 0.35% of the Average Death Benefit Amount
will be for expenses related to the Death Benefit under the Amendment. For
Policies issued on or after May 1, 1998, United of Omaha deducts a daily charge
from the net assets in the Variable Account equal to the annual rate of 0.35% of
the Average Death Benefit Amount. For Policies issued prior to May 1, 1998, this
charge is assessed on each Policy Anniversary or pro rata upon full surrender.
The Enhanced Death Benefit Charge is deducted from each Subaccount on a pro-rata
basis through the cancellation of accumulation units.
(See "DISTRIBUTION UNDER THE POLICY: Death Benefit.")
ANNUAL POLICY FEE. There is also an annual Policy Fee for Policy
maintenance and related administrative expenses. This fee is $30 per year and is
deducted from the Accumulation Value on the last Valuation Date of each Policy
Year (and upon complete surrender of the Policy). This fee will be waived if the
Accumulation Value is greater than $50,000 on the last Valuation Date of the
applicable Policy Year. This fee will not be increased in the future. (See
"CHARGES AND DEDUCTIONS: Administrative Charges.")
TRANSFER FEE. No fee is imposed for transfers from the Fixed Account or for
the first 12 transfers from Subaccounts of the Variable Account in each Policy
Year. However, a $10 Transfer Fee is imposed for the thirteenth and each
subsequent request to transfer Accumulation Value from a Subaccount during a
single Policy Year. This fee will not be increased in the future. (See "CHARGES
AND DEDUCTIONS: Transfer Fee.")
TAXES. United of Omaha may incur premium taxes relating to the Policies.
United of Omaha will deduct any premium taxes related to a particular Policy
from Purchase Payments, upon surrender, upon death of any Owner, or at the
Annuity Starting Date. (See "CHARGES AND DEDUCTIONS: Premium Taxes.")
No deductions are currently made for federal, state, or local income taxes.
Should United of Omaha determine that charges for any such taxes should be
imposed with respect to any of the Accounts, United of Omaha may deduct charges
for such taxes or the economic burden thereof from Purchase Payments or from
amounts held in the relevant Account. (See "CHARGES AND DEDUCTIONS:
Federal, State and Local Taxes.")
CHARGES AGAINST THE SERIES FUNDS. The value of the net assets of the
Subaccounts of the Variable Account will reflect the investment advisory fee and
other expenses incurred by the Portfolios of the Series Funds. (See "CHARGES AND
DEDUCTIONS: Other Expenses Including Investment Advisory Fees.")
EXPENSE DATA. The charges and deductions are summarized in the following
table. The purpose of this table is to help the Owner understand the costs and
expenses that the Owner will bear directly and indirectly. This table and the
examples that follow should be considered only in conjunction with the detailed
descriptions under the heading "Charges and Deductions" of this prospectus. This
tabular information regarding expenses assumes that the entire Accumulation
Value is in the Variable Account and reflects expenses of the Variable Account
as well as of the Portfolios. In addition to the expenses listed below, a charge
for premium taxes may be applicable.
POLICY OWNER TRANSACTION EXPENSES
Maximum Withdrawal Charge (% of each Purchase Payment Surrendered) 1/ 7%
Transfer Fee - First 12 Transfers Per Year: NO FEE
- Over 12 Transfers in One Year: $10 each
VARIABLE ACCOUNT ANNUAL EXPENSES (% of account value)
Mortality and Expense Risk Fees 1.00%
Administrative Expense Charge 0.20%
TOTAL VARIABLE ACCOUNT ANNUAL EXPENSES 1.20%
1/ Each Policy Year up to fifteen percent (15%) of the Accumulation Value as of
the date of the first withdrawal that year can be withdrawn without a Withdrawal
Charge. Thereafter, the Withdrawal Charge is calculated separately for each
Purchase Payment withdrawn based on the number of years elapsed since the
Purchase Payment was made; it is 7% in the first year after a Purchase Payment
is made and then decreases by 1% in each successive year to 0% after the seventh
year.
8
<PAGE>
OTHER ANNUAL EXPENSES
Annual Policy Fee $30 Per Year
Current Annual Enhanced Death Benefit Charge (Optional)
(% of Average Death Benefit Amount) 2 0.35%
SERIES FUND ANNUAL EXPENSES3 MANAGEMENT OTHER TOTAL SERIES
(as a percentage of average net assets) FEES EXPENSES FUND ANNUAL
EXPENSES
===========================================------------ --------- =============
Portfolio:
Alger American Growth 0.75% 0.10% 0.85%
Alger American Small Capitalization 0.85% 0.07% 0.92%
Federated Prime Money Fund II * 0.30% 0.50% 0.80%
Federated Fund for U.S. Government
Securities II * 0.15% 0.65% 0.80%
Fidelity VIP II Asset Manager: Growth *** 0.65% 0.22% 0.87%
Fidelity VIP II Contrafund *** 0.61% 0.13% 0.74%
Fidelity VIP Equity Income *** 0.51% 0.07% 0.58%
Fidelity VIP II Index 500 ** 0.13% 0.15% 0.28%
MFS Emerging Growth 0.75% 0.25% 1.00%
MFS High Income Fund 0.75% 0.25% 1.00%
MFS Research 0.75% 0.25% 1.00%
MFS Value Series 0.75% 0.25% 1.00%
MFS World Government 0.75% 0.25% 1.00%
Morgan Stanley Emerging Markets Equity ** 0.00% 1.75% 1.75%
Morgan Stanley Fixed Income ** 0.00% 0.70% 0.70%
Pioneer Capital Growth 0.65% 0.60% 1.25%
Pioneer Real Estate ** 1.00% 0.25% 1.25%
Scudder Global Discovery **, ***** 0.16% 1.59% 1.75%
Scudder Growth & Income ***, ***** 0.48% 0.43% 0.91%
Scudder International 0.86% 0.44% 1.30%
T. Rowe Price Equity Income **** 0.00% 0.85% 0.85%
T. Rowe Price International **** 0.00% 1.05% 1.05%
T. Rowe Price Limited-Term Bond **** 0.00% 0.70% 0.70%
T. Rowe Price New America Growth **** 0.00% 0.85% 0.85%
T. Rowe Price Personal Strategy Balanced **** 0.00% 0.90% 0.90%
==============================================================================
* Both Federated Prime Money Fund II and Federated Fund for U.S. Government
Securities II currently bundle their fees and expenses and limit the total
charge. Absent any fee waiver or expense reimbursement, the total fees and
expenses for each fund would have been 1.00% and 1.25% respectively.
** Without fee waiver or expense reimbursement limits the following funds
would have had the charges set forth below:
MANAGEMENT OTHER TOTAL
FEES EXPENSES EXPENSES
--------------------------------------------------------------
Fidelity VIP II Index 500 0.28% 0.15% 0.43%
Morgan Stanley Emerging
Markets Equity 1.25% 2.87% 4.12%
Morgan Stanley Fixed Income 0.40% 1.31% 1.71%
Pioneer Real Estate 0.88% 0.48% 1.36%
Scudder Global Discovery 0.98% 2.00%***** 2.98%
*** These funds have voluntarily agreed to limit their total annual expenses to
the limits shown below:
Fidelity VIP II Asset Manager: Growth and Fidelity VIP II Contrafund - 1.00%
Fidelity VIP Equity Income and Scudder Growth & Income - 1.50%
**** T. Rowe Price Funds do not itemize management fees and other expenses.
***** Includes .25% 12b-1 fee assessed for payment of distribution
administration expenses.
===============================================================================
2/ If the Policy has been issued with the Enhanced Death Benefit Amendment, the
Death Benefit Charge will apply. This charge will never exceed 0.35% of the
Average Death Benefit Amount.
3/ The fee and expense data regarding each Series Fund, which are fees and
expenses for 1997, was provided to United of Omaha by the Series Fund. The
Series Funds are not affiliated with United of Omaha.
9
<PAGE>
<TABLE>
<CAPTION>
======================== ====================== =======================
EXAMPLES. 4/ 1. SURRENDER POLICY 2. ANNUITIZE POLICY 3. POLICY IS NOT
AN OWNER WOULD PAY THE FOLLOWING AT END OF THE TIME AT THE END OF THE SURRENDERED AND IS
EXPENSES ON A $1,000 INVESTMENT, PERIOD OR ANNUITIZE TIME PERIOD AND NOT ANNUITIZED
ASSUMING A 5% ANNUAL RETURN ON AND ANNUITY OPTION 4 ANNUITY OPTION 4
ASSETS (EXCLUDING THE ENHANCED (LIFETIME INCOME) IS (LIFETIME INCOME) IS
DEATH BENEFIT) IF: NOT CHOSEN CHOSEN
- ---------------------------------- ----- ----- ----- ------ ----- ---- ----- ----- ----- ---- ----- ======
Portfolio 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr
- ---------------------------------- ----- ----- ----- ------ ----- ---- ----- ----- ----- ---- ----- ======
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alger American Growth $83 115 148 260 $83 66 115 260 $21 66 115 260
Alger American Small Capitalization 84 118 153 273 84 69 120 273 22 69 120 273
Federated Prime Money Fund II 83 115 148 262 83 66 116 262 21 66 116 262
Federated Fund for U.S.
Government Securities II 83 115 148 262 83 66 116 262 21 66 116 262
Fidelity VIP II Asset Manager:Growth 84 115 152 270 84 66 119 270 21 66 119 270
Fidelity VIP II Contrafund 83 113 148 254 83 64 115 254 20 64 115 254
Fidelity VIP Equity Income 82 109 138 234 82 60 105 234 19 60 105 234
Fidelity VIP II Index 500 78 99 120 197 78 50 87 197 16 50 87 197
MFS Emerging Growth 85 122 159 287 85 72 127 287 23 72 127 287
MFS High Income Fund 85 122 159 287 85 72 127 287 23 72 127 287
MFS Research 85 122 159 287 85 72 127 287 23 72 127 287
MFS Value Series 85 122 159 287 85 72 127 287 23 72 127 287
MFS World Government 85 122 159 287 85 72 127 287 23 72 127 287
Morgan Stanley Emerging Markets
Equity 93 145 201 381 93 96 168 381 30 96 168 381
Morgan Stanley Fixed Income 82 112 142 249 82 63 110 249 20 63 110 249
Pioneer Capital Growth 83 115 148 260 83 66 115 260 21 66 115 260
Pioneer Real Estate 88 129 173 318 88 80 141 318 26 80 141 318
Scudder Global Discovery 93 145 201 381 93 96 168 381 31 96 168 381
Scudder Growth & Income 83 115 148 262 83 66 116 262 21 66 116 262
Scudder International 85 121 159 286 85 72 127 286 23 72 127 286
T. Rowe Price Equity Income 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price International 86 123 162 293 86 74 129 293 24 74 129 293
T. Rowe Price Limited-Term Bond 82 112 143 249 82 63 110 249 20 63 110 249
T. Rowe Price New America Growth 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price Personal Strategy
Balanced 84 118 154 274 84 69 121 274 22 69 121 274
================================== ===== ===== ===== ====== ===== ==== ===== ===== ===== ==== ===== ======
</TABLE>
These examples should not be considered representations of past or future
expenses. Actual expenses paid may be greater than or less than those shown,
subject to the guarantees in the Policy. The assumed 5% annual rate of return is
hypothetical and should not be considered a representation of past or future
annual returns, which may be greater or less than this assumed rate.
4/ The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
10
<PAGE>
<TABLE>
<CAPTION>
======================= ======================= =======================
EXAMPLES.5/ 1. SURRENDER POLICY 2. ANNUITIZE POLICY 3. POLICY IS NOT
AN OWNER WOULD PAY THE FOLLOWING AT END OF THE TIME AT THE END OF THE SURRENDERED AND IS
EXPENSES ON A $1,000 INVESTMENT, PERIOD OR ANNUITIZE TIME PERIOD AND NOT ANNUITIZED
ASSUMING A 5% ANNUAL RETURN ON AND ANNUITY OPTION 4 ANNUITY OPTION 4
ASSETS (INCLUDING THE ENHANCED (LIFETIME INCOME) IS (LIFETIME INCOME) IS
DEATH BENEFIT): NOT CHOSEN CHOSEN
- ---------------------------------- ----- ----- ---- ------ ----- ----- ---- ------ ----- ---- ----- ======
Portfolio 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr 1Yr 3Yr 5Yr 10Yr
- ---------------------------------- ----- ----- ---- ------ ----- ----- ---- ------ ----- ---- ----- ======
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alger American Growth $87 126 167 304 $87 77 134 304 $25 77 134 304
Alger American Small Capitalization 88 129 172 317 88 80 140 317 25 80 140 317
Federated Prime Money Fund II 87 126 167 306 87 77 135 306 25 77 135 306
Federated Fund for U.S.
Government Securities II 87 126 167 306 87 77 135 306 25 77 135 306
Fidelity VIP II Asset Manager:Growth 89 133 178 331 89 83 146 331 27 83 146 331
Fidelity VIP II Contrafund 86 124 163 296 86 75 130 296 24 75 130 296
Fidelity VIP Equity Income 85 120 157 282 85 71 124 282 23 71 124 282
Fidelity VIP II Index 500 82 110 139 240 82 61 106 240 19 61 106 240
MFS Emerging Growth 89 133 178 331 89 83 146 331 27 83 146 331
MFS High Income Fund 89 133 178 331 89 83 146 331 27 83 146 331
MFS Research 89 133 178 331 89 83 146 331 27 83 146 331
MFS Value Series 89 133 178 331 89 83 146 331 27 83 146 331
MFS World Government 89 133 178 331 89 83 146 331 27 83 146 331
Morgan Stanley Emerging Markets
Equity 96 156 220 425 96 107 187 425 34 107 187 425
Morgan Stanley Fixed Income 86 123 162 293 86 74 129 293 24 74 129 293
Pioneer Capital Growth 87 126 167 304 87 77 134 304 25 77 134 304
Pioneer Real Estate 91 140 192 362 91 91 160 362 29 91 160 362
Scudder Global Discovery 96 156 220 425 96 107 187 425 34 107 187 425
Scudder Growth & Income 87 126 167 306 87 77 135 306 25 77 135 306
Scudder International 89 133 178 331 89 83 146 331 27 83 146 331
T. Rowe Price Equity Income 87 128 170 312 87 79 128 312 25 79 128 312
T. Rowe Price International 89 134 181 337 89 85 149 337 27 85 149 337
T. Rowe Price Limited-Term Bond 86 123 162 293 86 74 129 293 24 74 129 293
T. Rowe Price New America Growth 87 128 170 312 87 79 128 312 25 79 128 312
T. Rowe Price Personal Strategy
Balanced 88 129 173 318 88 80 140 318 26 80 140 318
==================================== === ===== ==== ====== ===== ===== ==== ====== ===== ==== ===== ======
</TABLE>
These examples should not be considered representations of past or future
expenses. Actual expenses paid may be greater than or less than those shown,
subject to the guarantees in the Policy. The assumed 5% annual rate of return is
hypothetical and should not be considered a representation of past or future
annual returns, which may be greater or less than this assumed rate.
5/ The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
11
<PAGE>
DEATH BENEFIT
STANDARD DEATH BENEFIT. In the event that any Owner dies prior to the Annuity
Starting Date (and the Policy is in force), the death benefit payable to the
Beneficiary is calculated and is payable upon United of Omaha's receipt of Due
Proof of Death of any Owner, as well as an election of the method of settlement.
If any Owner dies, the death benefit will equal the greater of (a) the
Accumulation Value (without deduction of the Withdrawal Charge) on the later of
the date on which Due Proof of Death or an election of Payout Option is received
by United of Omaha's Service Office, less any applicable premium taxes; or (b)
the sum of Net Purchase Payments less partial withdrawals. No Withdrawal Charge
is imposed upon amounts paid as a death benefit. Subject to any limitations of
state or federal law, the death benefit may be paid as either a lump sum cash
benefit or as an Annuity. (See "DISTRIBUTIONS UNDER THE POLICY: Death Benefit.")
ELECTIVE DEATH BENEFIT AMENDMENT. If this Amendment is attached to the Policy
and the Owner dies prior to age 81, the Death Benefit under the Policy will
equal the greatest of: (1) the Accumulation Value as of the end of the valuation
period during which due proof of death and an election of a payout option are
received by United of Omaha's Service Office; (2) the greatest Anniversary Value
plus any subsequent purchase payments and less any subsequent partial
withdrawals; and (3) the sum of all net purchase payments, less any partial
withdrawals, accumulated at a 4.5% annual rate of interest, not exceeding a
maximum of two times each purchase payment.
If the Owner dies after attaining age 81, the Death Benefit under the Policy
will equal the greatest of: (1) the Accumulation Value as of the end of the
valuation period during which due proof of death and an election of a payout
option are received by United of Omaha's Service Office; (2) the greatest
Anniversary Value before the Owner attained age 81, plus any subsequent purchase
payments and less any subsequent partial withdrawals; and (3) the sum of all net
purchase payments paid prior to the last Policy Anniversary before the Owner
attained age 81 less any partial withdrawals, accumulated at a 4.5% annual rate
of interest not exceeding a maximum of two times each purchase payment. If the
death benefit payable equals (3), United of Omaha will add to the Death Benefit
any purchase payments paid after the last Policy Anniversary before the Owner
attained age 81. (See "DISTRIBUTIONS UNDER THE POLICY: Death Benefit.")
Any applicable premium taxes not previously deducted will be deducted from
the death benefit payable.
ACCIDENTAL DEATH BENEFIT
If the Owner dies from bodily injury sustained in a common carrier accident,
United of Omaha will pay the Standard Death Benefit or the Enhanced Death
Benefit, as applicable, multiplied by two, instead of the amount that would
otherwise be payable. (See Accidental Death Benefit, p. 30).
FREE LOOK RIGHT
The Policy Owner may, until the end of the period of time specified in the
Policy, examine the Policy and return it to United of Omaha's Service Office or
the agent from whom it was purchased for a refund. The applicable period will
depend on the state in which the Policy is issued. In most states it is ten (10)
days after the Policy is delivered to the Policy Owner. Return of the Policy is
effective upon being postmarked, properly addressed, and postage pre-paid.
United of Omaha will pay the refund within seven (7) days after it receives
written notice of cancellation and the returned Policy.
In states that permit it to do so, United of Omaha will promptly refund the
Accumulation Value calculated on the date United of Omaha receives the Policy
and refund request. This amount may be more or less than the Purchase Payments
made. In other states, United of Omaha will refund the greater of Accumulation
Value or Purchase Payments made under the Policy. (In these states, any portion
of the initial Net Purchase Payment that is allocated to the Variable Account
will be held in the Money Market Subaccount for the applicable Free Look Period
plus 5 days from the date the Policy is mailed from the Service Office, to allow
for this Free Look Right; the extra days are to provide time for mail or other
delivery of the Policy.)
FEDERAL INCOME TAX CONSEQUENCES OF INVESTMENT IN THE POLICY
With respect to Owners who are natural persons under existing tax law, there
should be no federal income tax on increases (if any) in the Accumulation Value
until a distribution under the Policy occurs (e.g., a withdrawal or Annuity
Payment) or is deemed to occur (e.g., a pledge or assignment of a Policy).
Generally, a portion of any distribution or deemed distribution will be taxable
as ordinary income. The taxable portion of certain distributions will be subject
to withholding unless the recipient (if permitted) elects otherwise. In
addition, a penalty tax of 10% of the amount withdrawn may apply to certain
distributions or deemed distributions under the Policy made prior to the Owner's
attaining age 59 1/2. (See "CERTAIN FEDERAL INCOME TAX CONSEQUENCES.")
12
<PAGE>
INQUIRIES AND WRITTEN NOTICES AND REQUESTS
Any questions about procedures or the Policy, or any Written Notice or
Written Request required to be sent to United of Omaha, should be sent to United
of Omaha's Service Office: United of Omaha Variable Product Service, P.O. Box
8430, Omaha, Nebraska 68108-0430. Telephone requests and inquiries may be made
by calling 1-800-238-9354. All inquiries, Notices and Requests should include
the Policy number, the Owner's name and the Annuitant's name.
VARIATIONS IN POLICY PROVISIONS
Certain provisions of the Policies may vary from the descriptions in this
Prospectus in order to comply with different state laws. Any such variations
will be included in the Policy itself or in riders or amendments. Policy
provisions which may vary by state include the Free Look provision and the
Waiver of Withdrawal Charge provision for nursing home/hospital confinement,
disability, terminal illness or unemployment. One or a very few number of states
also require variations in the Annuity Starting Date, Termination, and Delay of
Payments or Transfers from the Fixed Account provisions.
* * *
NOTE: THE FOREGOING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY THE DETAILED
INFORMATION IN THE REMAINDER OF THIS PROSPECTUS AND IN THE STATEMENT OF
ADDITIONAL INFORMATION AND IN THE PROSPECTUSES FOR THE SERIES FUNDS AND IN THE
POLICY, ALL OF WHICH SHOULD BE REFERRED TO FOR MORE DETAILED INFORMATION. THIS
PROSPECTUS GENERALLY DESCRIBES ONLY THE POLICY AND THE VARIABLE ACCOUNT.
SEPARATE PROSPECTUSES DESCRIBE THE SERIES FUNDS. (THERE IS NO PROSPECTUS FOR THE
FIXED ACCOUNT OR SYSTEMATIC TRANSFER ACCOUNT SINCE INTERESTS IN THE FIXED
ACCOUNT AND SYSTEMATIC TRANSFER ACCOUNT ARE NOT SECURITIES. SEE "THE ELIGIBLE
INVESTMENTS: THE FIXED ACCOUNT AND THE SYSTEMATIC TRANSFER ACCOUNT.,")
FINANCIAL STATEMENTS
The Financial Statements for United of Omaha and the Series V Subaccounts of
the Variable Account and the related independent auditors' reports are contained
in the Statement of Additional Information, which is available free upon
request. At December 31, 1997, net assets of the Series V Subaccounts of the
Variable Account were represented by the following Accumulation Unit Values and
Accumulation Units. This information should be read in conjunction with the
Variable Account's financial statements and related notes included in the
Statement of Additional Information.
SUBACCOUNT ACCUMULATION UNIT ACCUMULATION UNIT NUMBER OF
(Date of Inception) VALUE ON VALUE AT END OF CCUMULATION UNITS
COMMENCEMENT DATE YEAR AT END OF YEAR
($) (December 31) (December 31)
($)
- ------------------------------------------- ------------------------------------
ALGER AMERICAN GROWTH 10.
(6/5/95)
1995................................ 11.673 140,897.
1996................................ 13.071 1,358,882.
1997................................ 16.240 1,918,481
ALGER AMERICAN SMALL 10.
CAPITALIZATION (6/5/95)
1995................................ 12.094 148,670.
1996................................ 12.448 1,474,107.
1997................................ 13.690 2,021,476
FEDERATED PRIME MONEY 1.
FUND II (6/5/95)
1995................................ 1.023 3,065,603.
1996................................ 1.059 21,525,823.
1997................................ 1.098 19,485,025
FEDERATED FUND FOR U.S. 10.
GOVERNMENT SECURITIES II
(6/5/95)
1995................................. 10.570 122,440.
1996................................. 10.882 1,128,539.
1997................................. 11.674 1,824,790
FIDELITY VIP II ASSET 10.
MANAGER: GROWTH (6/5/95)
1995................................. 11.269 199,570
1996................................. 13.353 1,655,034
1997................................. 16.500 2,748,520
13
<PAGE>
SUBACCOUNT ACCUMULATION UNIT ACCUMULATION UNIT NUMBER OF
(Date of Inception) VALUE ON VALUE AT END OF CCUMULATION UNITS
COMMENCEMENT DATE YEAR AT END OF YEAR
($) (December 31) (December 31)
($)
- ------------------------------------------- ------------------------------------
FIDELITY VIP II CONTRAFUND 10.
(6/5/95)
1995................................. 11.740 150,364
1996................................. 14.070 1,785,274
1997................................. 17.257 2,992,115
FIDELITY VIP EQUITY INCOME 10.
(6/5/95)
1995................................. 11.596 233,679
1996................................. 13.090 2,256,678
1997................................. 16.571 3,528,096
FIDELITY VIP II INDEX 500 10.
(5/1/97)
1997................................. 12.166 829,118
MFS EMERGING GROWTH (6/5/95) 10.
1995................................. 11.659 123,460
1996................................. 13.480 1,854,145
1997................................. 16.230 2,890,806
MFS HIGH INCOME FUND 10.
(6/5/95)
1995................................. 10.452 87,378.
1996................................. 11.548 859,361
1997................................. 12.960 1,729,635
MFS RESEARCH (6/5/95) 10.
1995................................. 10.986 117,165.
1996................................. 13.277 1,381,316.
1997................................. 15.775 2,608,735
MFS VALUE SERIES (5/1/97) 10.
1997................................. 12.394 292,197
MFS WORLD GOVERNMENT 10.
(6/5/95)
1995................................. 10.243 56,393.
1996................................. 10.527 819,686.
1997................................. 10.283 1,302,843
MORGAN STANLEY EMERGING 10.
MARKETS EQUITY (5/1/98)
N/A N/A
MORGAN STANLEY FIXED INCOME 10.
(5/1/98)
N/A N/A
PIONEER CAPITAL GROWTH 10.
(5/1/97)
1997................................. 11.756 383,956
PIONEER REAL ESTATE (5/1/97) 10.
1997................................. 12.229 428,572
SCUDDER GLOBAL DISCOVERY 10.
(5/1/97)
1997................................. 11.478 194,110
SCUDDER GROWTH & INCOME 10.
(5/1/97)
1997................................. 12.190 561,594
14
<PAGE>
SUBACCOUNT ACCUMULATION UNIT ACCUMULATION UNIT NUMBER OF
(Date of Inception) VALUE ON VALUE AT END OF CCUMULATION UNITS
COMMENCEMENT DATE YEAR AT END OF YEAR
($) (December 31) (December 31)
($)
- ------------------------------------------- ------------------------------------
SCUDDER INTERNATIONAL 10.
(6/5/95)
1995................................. 10.642 99,029.
1996................................. 12.067 1,269,457.
1997................................. 13.004 2,391,655
T.ROWE PRICE EQUITY INCOME 10.
(6/5/95)
1995................................. 11.625 121,994.
1996................................. 13.731 1,861,298.
1997................................. 17.481 3,837,388
T.ROWE PRICE INTERNATIONAL 10.
(6/5/95)
1995................................. 10.569 181,399.
1996................................. 11.976 1,736,784.
1997................................. 12.200 2,857,269.
T.ROWE PRICE LIMITED-TERM 10.
BOND (6/5/95)
1995................................. 10.373 56,018.
1996................................. 10.582 631,437.
1997................................. 11.160 1,302,580
T.ROWE PRICE NEW AMERICA 10.
GROWTH (6/5/95)
1995................................. 13.061 58,555.
1996................................. 15.496 917,255.
1997................................. 18.543 1,599,824
T.ROWE PRICE PERSONAL 10.
STRATEGY (6/5/95)
1995................................. 11.272 123,287.
1996................................. 12.719 1,703,217.
1997................................. 14.833 2,792,934
* Accumulation Unit Values are rounded to the nearest hundredth of a cent.
** Accumulation Units are rounded to the nearest unit.
UNITED OF OMAHA LIFE INSURANCE COMPANY
United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha,
Nebraska, 68175, is a stock life insurance company. It was incorporated under
the name United Benefit Life Insurance Company under the laws of the State of
Nebraska on August 9, 1926. In 1981, it changed its name to United of Omaha Life
Insurance Company. It is principally engaged in the sale of life insurance,
accident and health insurance, and annuity policies, and is licensed in all
states except New York and in several foreign countries and the District of
Columbia. As of December 31, 1997, United of Omaha had assets of over $9.2
billion. United of Omaha is a wholly-owned subsidiary of Mutual of Omaha
Insurance Company.
United of Omaha may from time to time publish (in advertisements, sales
literature and reports to Owners) the ratings and other information assigned to
it by one or more independent rating organizations such as A.M. Best Company,
Moody's, Standard & Poor's, and Duff & Phelps. The purpose of the ratings is to
reflect the financial strength and/or claims-paying ability of United of Omaha,
and the ratings should not be considered as bearing on the investment
performance or safety of assets held in the Variable Account. Each year the A.M.
Best Company reviews the financial status of thousands of insurers, culminating
in the assignment of Best's Ratings. These ratings reflect A.M. Best Company's
current opinion of the relative financial strength and operating performance of
an insurance company in comparison to the norms of the life/health insurance
industry. In addition, the claims-paying ability of United of Omaha, as measured
by Moody's Insurance Credit Report, Standard and Poor's Insurance Ratings
Services, or Duff & Phelps may be referred to in such advertisements, sales
literature, or reports. These ratings are opinions regarding an operating
insurance company's financial capacity to meet the obligations of its insurance
and annuity policies in accordance with their terms. Such ratings do not reflect
the investment performance of the Variable Account or the degree of risk
associated with an investment in the Variable Account.
15
<PAGE>
THE ELIGIBLE INVESTMENTS
Net Purchase Payments made under a Policy may be allocated to one of the 25
Ultrannuity Series V Subaccounts of the Variable Account, to the Fixed Account,
or to a combination of these Eligible Investment(s).
THE VARIABLE ACCOUNT
The United of Omaha Separate Account C of United of Omaha Life Insurance
Company (the "Variable Account") was established as a separate investment
account under the laws of the State of Nebraska on December 1, 1993. The
Variable Account will receive and invest the Net Purchase Payments under the
Policies that are allocated to it for investment in shares of a Series Fund.
The Variable Account currently is divided into 25 Subaccounts. Each
Subaccount invests exclusively in shares of a Portfolio of one of the Series
Funds. Under Nebraska law, the assets of the Variable Account are owned by
United of Omaha, but they are held separately from the other assets of United of
Omaha and are not chargeable with any liabilities arising out of any other
separate investment account or any other business of United of Omaha which has
no specific and determinable relation to or dependence upon the Variable
Account. The income, gains and losses, realized or unrealized, from assets
allocated to the Variable Account are credited to or charged against the
Variable Account, without regard to other income, gains, or losses of United of
Omaha. Section 44-2212 of the Nebraska Statutes provides that "Any surplus or
deficit which may arise in the Variable Account by virtue of mortality
experience guaranteed by United of Omaha or by expense costs is adjusted by
withdrawals from or additions to the Variable Account so that the assets of the
Variable Account equal the liabilities." The investment performance of any
Subaccount should be entirely independent of the investment performance of
United of Omaha's general account assets or any other accounts maintained by
United of Omaha.
The Variable Account is registered with the Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940 as a unit
investment trust. However, the SEC does not supervise the management or the
investment practices or policies of the Variable Account or United of Omaha.
THE SERIES FUNDS. Each Subaccount of the Variable Account will invest
exclusively in shares of a specific Portfolio of one of the Series Funds, each
of which is a mutual fund registered with the SEC under the Investment Company
Act of 1940 (the "1940 Act") as an open-end, diversified investment management
company. 6/ The assets of each Portfolio of each Series Fund are held separate
from the assets of that Series Fund's other Portfolios, and each Portfolio has
its own distinct investment objectives and policies. Each Portfolio operates as
a separate investment fund, and the income or losses of one Portfolio generally
have no effect on the investment performance of any other Portfolio. Each of the
Series Funds is managed by an investment adviser registered with the SEC under
the Investment Advisers Act of 1940, as amended. Each investment manager is
responsible for selecting Portfolio investments consistent with the investment
objectives and policies of the Portfolio, and conducts securities trading for
the Portfolio.
The Variable Account Portfolios, while they may have the same or similar
names of retail mutual funds, are not the same as those funds. By law, insurance
product variable account portfolios and retail mutual funds must be separate
investment pools. A variable account portfolio and a retail mutual fund may have
similar names, the same or similar investment objective and strategy, and the
same investment manager. Even when these similarities exist, however, the
investment manager is under no obligation to ensure that the Variable Account
Portfolio and the retail mutual fund have duplicate holdings, trading activity
or performance. Any similarities in this regard are coincidental, and the
Variable Account Portfolio and retail mutual fund may differ substantially in
these areas. The investment manager's obligation is to attempt to achieve the
investment objective stated in the prospectus. For information about the
performance history of any Variable Account Portfolio, please refer to further
disclosure in this Prospectus or in the Series Fund prospectus for that
particular Variable Account Portfolio.
The Variable Account Portfolios, their investment objectives and investment
advisers are summarized as follows:
ALGER AMERICAN FUND - ALGER AMERICAN GROWTH PORTFOLIO -- seeks long-term
capital appreciation by investing in a diversified portfolio of equity
securities, primarily of companies with total market capitalization of $1
billion or greater. (1)
ALGER AMERICAN FUND - ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO --
seeks long-term capital appreciation by investing in a diversified portfolio
of equity securities, primarily of smaller, newer companies with total
market capitalization of less than $1 billion. The securities of such
companies may have limited marketability and may be subject to more abrupt
or erratic price changes than securities of larger, more established
companies or the market averages in general.(1) (*)
6/ The registration of the Series Funds does not involve supervision of the
management or investment practices or policies of the Series Funds by the SEC.
16
<PAGE>
INSURANCE MANAGEMENT SERIES - FEDERATED PRIME MONEY FUND II PORTFOLIO --
invests in money market instruments maturing in thirteen months or less to
achieve current income consistent with stability of principal and liquidity.
The Portfolio attempts to maintain a stable net asset value of $1.00 per
share, but there can be no assurance the Portfolio will be able to do so.
(2)
INSURANCE MANAGEMENT SERIES - FEDERATED FUND FOR U.S. GOVERNMENT
SECURITIES II PORTFOLIO -- seeks current income by investing in a
diversified portfolio limited to U.S. government securities. (2)
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II - FIDELITY VIP II ASSET
MANAGER: GROWTH PORTFOLIO -- seeks to obtain high total return with reduced
risk over the long-term by allocating its assets among stocks, bonds, and
short-term fixed-income instruments. Although the Portfolio seeks to reduce
its overall risk by diversifying among different types of investments, the
fund aggressively invests in a wide variety of security types, including
stocks and bonds issued in developing countries and derivative transactions.
The Portfolio spreads investment risk by limiting its holdings in any one
company or industry.(3, 4) (*)
FIDELITY VARIABLE INSURANCE PRODUCTS FUND - FIDELITY VIP EQUITY-INCOME
PORTFOLIO -- seeks reasonable income by investing mainly in income-producing
equity securities. In selecting investments, the Portfolio also considers
the potential for capital appreciation. The Portfolio seeks to achieve a
return that surpasses that of the S&P 500. The Portfolio does not expect to
invest in debt securities of companies that do not have proven earnings or
credit.(3)
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II - FIDELITY CONTRAFUND
PORTFOLIO -- seeks to increase the value of the Portfolio over the long term
by investing in securities of companies that are undervalued or
out-of-favor. This strategy can lead to investments in domestic or foreign
companies, many of which may not be well known. The stocks of small
companies often involve more risk than those of larger companies. The
Portfolio may use various investment techniques to hedge the Portfolio's
risk, but there is no guarantee that these strategies will work as
intended.(3) (*)
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II - FIDELITY INDEX 500 PORTFOLIO
-- seeks to match the total return of the S&P 500 while keeping expenses
low. The Portfolio utilizes a "passive" or "indexing" approach and tries to
allocate its assets similarly to those of the index. Normally 80% (65% if
fund assets are below $20 million) of the fund's assets are invested in
equity securities of companies that compose the S&P 500. The Standard &
Poor's Corporation is neither an affiliate nor a sponsor of the fund.
MFS VARIABLE INSURANCE TRUST - MFS EMERGING GROWTH PORTFOLIO -- seeks to
provide long-term growth of capital through investing primarily in common
stocks of emerging growth companies, which involves greater risk than is
customarily associated with investments in more established companies. The
Portfolio may invest to a limited extent in lower rated fixed income
securities or comparable unrated securities.(5) (*)
MFS VARIABLE INSURANCE TRUST - MFS HIGH INCOME PORTFOLIO -- seeks high
current income by investing primarily in a diversified portfolio of fixed
income securities, some of which may involve equity features. The Portfolio
may invest in lower rated fixed income securities or comparable unrated
securities.(5) (*)
MFS VARIABLE INSURANCE TRUST - MFS RESEARCH PORTFOLIO -- seeks to provide
long-term growth of capital and future income by investing a substantial
portion of its assets in the common stocks or securities convertible into
common stocks of companies believed to possess better than average prospects
for long-term growth. No more than 5% of the Portfolio's convertible
securities, if any, will consist of securities in lower rated categories or
securities believed to be of similar quality to lower rated securities. The
Portfolio may invest to a limited extent in lower rated fixed income
securities or comparable unrated securities.(5) (*)
MFS VARIABLE INSURANCE TRUST - MFS VALUE SERIES PORTFOLIO -- seeks capital
appreciation by investing primarily in common stocks, including to a limited
extent foreign securities which are not traded on a U.S. exchange. The
Portfolio may invest to a limited extent in lower rated fixed income
securities or comparable unrated securities. (5) (*)
17
<PAGE>
MFS VARIABLE INSURANCE TRUST - MFS WORLD GOVERNMENT PORTFOLIO -- seeks
preservation and growth of capital, together with moderate current income by
investing its assets in an internationally diversified portfolio consisting
primarily of debt securities and, to a lesser extent, equity securities. The
Portfolio investments are expected to consist primarily of securities which
are of relatively high quality and minimal credit risk. However, an error of
judgment in selecting a currency or an interest rate environment could
result in a loss of capital, and a held security whose quality deteriorates
significantly will be sold only if the Portfolio investment adviser believes
it is advantageous to do so. (5)
MORGAN STANLEY UNIVERSAL FUNDS, INC.- MORGAN STANLEY EMERGING MARKETS EQUITY
PORTFOLIO. --seeks long-term capital appreciation by investing primarily in
common and preferred stocks and other equity securities of emerging market
country issuers. The Adviser's approach is to focus the portfolio's
investments on those emerging market countries in which it believes the
economies are developing strongly and in which the markets are becoming more
sophisticated. Investing in many such countries is not feasible or may
involve unacceptable political risks. Emerging market country securities
pose greater liquidity risks and other risks than securities of companies
located in developed countries and traded in more established markets. (6)
MORGAN STANLEY UNIVERSAL FUNDS, INC. - MORGAN STANLEY FIXED INCOME
PORTFOLIO. - seeks to achieve above-average total return over a market
cycle of three to five years by investing in a diversified portfolio of
U.S. Governments and Agencies, corporate bonds, foreign bonds, mortgage
backed securities primarily of domestic issuers, and other fixed income
securities and derivatives.(7)
PIONEER VARIABLE CONTRACTS TRUST - PIONEER CAPITAL GROWTH PORTFOLIO -- seeks
capital appreciation by investing in a diversified portfolio of securities
consisting primarily of common stocks.(8)
PIONEER VARIABLE CONTRACTS TRUST - PIONEER REAL ESTATE PORTFOLIO -- seeks
long-term growth of capital by investing primarily in securities of real
estate investment trusts (REITs) and other real estate industry companies.
Current income is the Portfolio's secondary investment objective.(8)
SCUDDER VARIABLE LIFE INVESTMENT FUND - SCUDDER GLOBAL DISCOVERY PORTFOLIO
-- seeks above-average capital appreciation over the long term by investing
primarily in the equity securities of small companies located throughout the
world, including to a limited extent in lower rated fixed income securities
or comparable unrated securities. Since the Portfolio normally will invest
in both U.S. and foreign securities markets, changes in the Portfolio's unit
value may have a low correlation with movements in the U.S. markets. (9)(*)
SCUDDER VARIABLE LIFE INVESTMENT FUND - SCUDDER GROWTH & INCOME PORTFOLIO --
seeks long term growth of capital, current income and growth of income by
investing primarily in common stocks, preferred stocks, and securities
convertible into common stocks of companies which offer the prospect for
growth of earnings while paying higher than average current dividends. (9)
SCUDDER VARIABLE LIFE INVESTMENT FUND - SCUDDER INTERNATIONAL PORTFOLIO --
seeks long-term growth of capital primarily through diversified holdings of
marketable foreign equity investments. The Portfolio invests in companies,
wherever organized, which do business primarily outside the United States.
The Portfolio intends to diversify investments among several countries, and
does not intend to concentrate investments in any particular industry.
(9)
T. ROWE PRICE EQUITY SERIES, INC. - T. ROWE PRICE EQUITY INCOME PORTFOLIO
-- Seeks to provide substantial dividend income and also capital
appreciation by investing primarily in dividend-paying common stocks of
established companies.(11)
T. ROWE PRICE INTERNATIONAL SERIES, INC. - T. ROWE PRICE INTERNATIONAL
STOCK PORTFOLIO -- seeks a total return on its assets from long-term growth
of capital and income, by investing substantially all of its assets in
common stocks of established non-U.S. companies. (10)
T. ROWE PRICE FIXED INCOME SERIES, INC. - T. ROWE PRICE LIMITED-TERM BOND
PORTFOLIO -- seeks a high level of income consistent with modest price
fluctuation by investing primarily in investment grade debt securities.
(10)
18
<PAGE>
T. ROWE PRICE EQUITY SERIES, INC. - T. ROWE PRICE NEW AMERICA GROWTH
PORTFOLIO -- seeks long-term growth of capital through investments primarily
in common stocks of U.S. growth companies which operate in service
industries believed to be above-average performers in their fields. Total
return will consist primarily of capital appreciation or depreciation. (11)
T. ROWE PRICE EQUITY SERIES, INC. - T. ROWE PRICE PERSONAL STRATEGY
BALANCED PORTFOLIO -- seeks the highest total return over time consistent
with an emphasis on both capital appreciation and income. There are no
limitations on market capitalization or types of stock the Portfolio can
hold. While bond holdings are primarily investment grade, the Portfolio can
also invest in more volatile below-investment grade bonds.(11) (*)
INVESTMENT ADVISERS AND SUBADVISERS OF THE SERIES FUNDS:
(1) Fred Alger Management, Inc.
(2) Federated Advisors.
(3) Fidelity Management & Research Company.
(4) Fidelity Investment Management and Research (U.K.) Inc., and
Fidelity Management and Research Far East Inc., regarding
research and investment recommendations with respect to companies
based outside the United States.
(5) Massachusetts Financial Services Company.
(6) Morgan Stanley Asset Management, Inc.
(7) Miller Anderson & Sherrerd, LLP.
(8) Pioneer Fund Group.
(9) Scudder Kemper Investments, Inc.
(10) Rowe Price-Fleming International, Inc., a joint venture
between T. Rowe Price Associates, Inc. and Robert Fleming
Holdings Limited.
(11) T. Rowe Price Associates, Inc.
- -----------------
(*) THESE PORTFOLIOS' INVESTMENT STRATEGIES MAY PROVIDE THE OPPORTUNITY FOR
HIGHER THAN AVERAGE RETURNS BY INVESTING IN SECURITIES WITH HIGHER THAN
AVERAGE RISK, SUCH AS LOWER RATED AND UNRATED DEBT AND COMPARABLE EQUITY
INSTRUMENTS. PLEASE CONSULT EACH PORTFOLIO'S PROSPECTUS ACCOMPANYING THIS
PROSPECTUS FOR MORE INFORMATION ABOUT THE RISK ASSOCIATED WITH SUCH
INVESTMENTS.
THERE IS NO ASSURANCE THAT ANY PORTFOLIO WILL ACHIEVE ITS STATED OBJECTIVE.
MORE DETAILED INFORMATION, INCLUDING A DESCRIPTION OF EACH PORTFOLIO'S
INVESTMENT OBJECTIVE AND POLICIES AND A DESCRIPTION OF RISKS INVOLVED IN
INVESTING IN EACH OF THE PORTFOLIOS AND OF EACH PORTFOLIO'S FEES AND EXPENSES,
IS CONTAINED IN THE PROSPECTUSES FOR THE SERIES FUNDS, CURRENT COPIES OF WHICH
ACCOMPANY THIS PROSPECTUS. INFORMATION CONTAINED IN THE SERIES FUNDS'
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING IN A SUBACCOUNT OF THE
VARIABLE ACCOUNT.
An investment in the Variable Account, or in any Portfolio, including the
Money Market Portfolio, is not insured or guaranteed by the U.S. Government and
there can be no assurance that the Money Market Portfolio will be able to
maintain a stable net asset value per share.
United of Omaha may receive compensation from certain Portfolios and/or
affiliate(s) of certain of the Portfolios. The amounts may be based upon an
annual percentage of the average assets held in that Portfolio by the Variable
Account. These amounts are intended to compensate United of Omaha for
administrative and other services provided by United of Omaha.
ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS. United of Omaha does not
control the Series Funds and cannot and does not guarantee that any of the
Portfolios will always be available for Net Purchase Payments, allocations, or
transfers. United of Omaha retains the right, subject to any applicable law, to
make certain changes in the Variable Account and its investments. United of
Omaha reserves the right to eliminate the shares of any Portfolio held by a
Subaccount and to substitute shares of another Portfolio of a Series Fund, or of
another registered open-end management investment company for the shares of any
Portfolio, if the shares of the Portfolio are no longer available for investment
or if, in United of Omaha's judgment, investment in any Portfolio would be
inappropriate in view of the purposes of the Variable Account. To the extent
required by the 1940 Act, substitutions of shares attributable to an Owner's
interest in a Subaccount will not be made without prior notice to the Owner and
the prior approval of the SEC. If required, approval of or change of any
investment policy will be filed with the Insurance Department of any state in
which the Policy is sold. Nothing contained herein shall prevent the Variable
Account from purchasing other securities for other series or classes of variable
annuity policies, or from effecting an exchange between series or classes of
variable annuity policies on the basis of requests made by Owners.
19
<PAGE>
New Subaccounts may be established when, in the sole discretion of United of
Omaha, marketing, tax, investment or other conditions warrant. Any new
Subaccounts may be made available to existing Owners on a basis to be determined
by United of Omaha. Each additional Subaccount will purchase shares in a
Portfolio of a Series Fund or in another mutual fund or investment vehicle.
United of Omaha may also eliminate one or more Subaccounts if, in its sole
discretion, marketing, tax, investment or other conditions warrant such change.
In the event any Subaccount is eliminated, United of Omaha will notify Owners
and request a reallocation of the amounts invested in the eliminated Subaccount.
If no such reallocation is provided by the Owner, United of Omaha will reinvest
the amounts invested in the eliminated Subaccount in the Subaccount that invests
in the Money Market Portfolio (or in a similar portfolio of money market
instruments).
In the event of any such substitution or change, United of Omaha may, by
appropriate endorsement, make such changes in the Policies as may be necessary
or appropriate to reflect such substitution or change. Furthermore, the Variable
Account may be (i) operated as a management company under the 1940 Act or any
other form permitted by law, (ii) deregistered under the 1940 Act in the event
such registration is no longer required or (iii) combined with one or more other
separate accounts. To the extent permitted by applicable law, United of Omaha
also may transfer the assets of the Variable Account associated with the
Policies to another account or accounts.
HISTORICAL PERFORMANCE DATA
From time to time, United of Omaha may advertise or include in sales
literature yields, effective yields, and total returns for the Subaccounts of
the Variable Account. THESE FIGURES ARE BASED ON HISTORICAL PERFORMANCE AND DO
NOT INDICATE OR PROJECT FUTURE PERFORMANCE. Performance relative to certain
performance rankings and indices compiled by independent organizations may also
be advertised or included in sales literature. More detailed information as to
the calculation of performance information, as well as comparisons with
unmanaged market indices, appears in the Statement of Additional Information.
PERFORMANCE DATA. Effective yields and total returns for the Subaccounts
are based on the investment performance of the corresponding Portfolios of the
Series Funds. The Series Funds' performance in part reflects the Series Funds'
expenses. See the Prospectuses for the Series Funds.
The yield of the Money Market Subaccount refers to the annualized income
generated by an investment in the Subaccount over a specified seven-day period.
The yield is calculated by assuming that the income generated for that seven-day
period is generated each seven-day period over a 52-week period and is shown as
a percentage of the investment. The effective yield is calculated similarly but,
when annualized, the income earned by an investment in the Subaccount is assumed
to be reinvested. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment.
The yield of a Subaccount (except the Money Market Subaccount) refers to
the annualized income generated by an investment in the Subaccount over a
specified 30-day or one-month period. The yield is calculated by assuming that
the income generated by the investment during that 30-day or one-month period is
generated each period over a 12-month period and is shown as a percentage of the
investment.
Yield quotations do not reflect the Withdrawal Charge.
For the class of Policies issued with the Elective Death Benefit
Amendment, the Death Benefit Charge is included in the Subaccount yield
quotations.
The total return of a Subaccount refers to return quotations assuming
Accumulation Value has been held in the Subaccount for various periods of time
including, but not limited to, a period measured from the date the Subaccount
commenced operations. When a Subaccount has been in operation for one, five, and
ten years, respectively, the total return for these periods will be provided.
The average annual total return quotations represent the average annual
compounded rates of return that would equate an initial investment of $1,000
under a Policy to the redemption value of that investment as of the last day of
each of the periods for which total return quotations are provided. Average
annual total return information shows the average percentage change in the value
of an investment in the Subaccount from the beginning date of the measuring
period to the end of that period. This standardized version of average annual
total return reflects all historical investment results, less all charges and
deductions applied against the Subaccount (including any Withdrawal Charge that
would apply if an Owner terminated the Policy at the end of each period
indicated, but excluding any deductions for premium tax charges). For the class
of Policies issued with the Enhanced Death Benefit Amendment, the Death Benefit
Charge is included. Such average annual total return information for the
Subaccounts of Policies is as follows:
20
<PAGE>
- ---------------------------------------------- ------------ ===========
SUBACCOUNT 1 Year From
AVERAGE ANNUAL TOTAL RETURN (REFLECTS Ended Inception
WITHDRAWAL CHARGES) 12/31/97 to
Subaccount (date of inception) % 12/31/97
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95) 16.76 15.16
Alger American Small Capitalization (6/5/95) 3.42 6.52
Federated Prime Money Fund II (6/5/95) -2.58 1.71
Federated Fund for U.S. Government
Securities (6/5/95) 0.81 4.23
Fidelity VIP II Asset Manager: Growth (6/5/95) 16.13 18.03
Fidelity VIP II Contrafund (6/5/95) 15.27 18.78
Fidelity VIP Equity Income (6/5/95) 18.96 18.95
Fidelity VIP II Index 500 (5/1/97) N/A 23.57
MFS Emerging Growth (6/5/95) 13.19 18.58
MFS High Income (6/5/95) 5.49 8.67
MFS Research (6/5/95) 11.66 17.27
MFS Value Series (5/1/97) N/A 18.41
MFS World Government (6/5/95) -8.21 -0.72
Morgan Stanley Emerging Markets Equity (5/1/98) N/A N/A
Morgan Stanley Fixed Income (5/1/98)Pioneer N/A N/A
Capital Growth (5/1/97) N/A 15.87
Pioneer Real Estate (5/1/97) N/A 21.73
Scudder Global Discovery (5/1/97) N/A 8.62
Scudder Growth & Income (5/1/97) N/A 14.36
Scudder International (6/5/95) 1.26 8.58
T. Rowe Price International (6/5/95) -4.29 6.38
T. Rowe Price New America Growth (6/5/95) 12.46 21.28
T. Rowe Price Equity Income (6/5/95) 19.65 21.75
T. Rowe Price Limited-Term Bond (6/5/95) -0.91 2.48
T. Rowe Price Personal Strategy Balanced(6/5/95) 9.60 13.53
============================================== ============ ===========
1 Year From
Subaccount (date of inception ) Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/97 to
12/31/97
============================================== ============ ===========
============================================== ============ ===========
Alger American Growth (6/5/95) 16.36 14.77
Alger American Small Capitalization (6/5/95) 3.06 6.16
Federated Prime Money Fund II (6/5/95) -2.92 1.37
Federated Fund for U.S. Government
Securities (6/5/95) 0.46 3.88
Fidelity VIP II Asset Manager: Growth (6/5/95) 15.73 17.64
Fidelity VIP II Contrafund (6/5/95) 14.88 18.38
Fidelity VIP Equity Income (6/5/95) 18.55 18.55
Fidelity VIP II Index 500 (5/1/97) N/A 23.16
MFS Emerging Growth (6/5/95) 12.80 18.19
MFS High Income (6/5/95) 5.12 8.30
MFS Research (6/5/95) 11.28 16.88
MFS Value Series (5/1/97) N/A 17.99
MFS World Government (6/5/95) -8.54 -1.05
Morgan Stanley Emerging Markets Equity (5/2/98) N/A N/A
Morgan Stanley Fixed Income (5/1/98)Pioneer N/A N/A
Capital Growth (5/1/97) N/A 15.49
Pioneer Real Estate (5/1/97) N/A 21.33
Scudder Global Discovery (5/1/97) N/A 8.37
Scudder Growth & Income (5/1/97) N/A 14.10
Scudder International (6/5/95) 0.91 8.22
T. Rowe Price International (6/5/95) -4.63 6.03
T. Rowe Price New America Growth (6/5/95) 12.07 20.88
T. Rowe Price Equity Income (6/5/95) 19.24 21.34
T. Rowe Price Limited-Term Bond (6/5/95) -1.25 2.14
T. Rowe Price Personal Strategy Balanced (6/5/95) 9.22 13.15
============================================== ============ ===========
NON-STANDARDIZED PERFORMANCE DATA. In addition to the version described above,
total return performance information computed on different non-standard bases
may be used in advertisements. Average annual total return information may be
presented, computed on the same basis as described above, except deductions will
not include the Withdrawal Charge. Such non-standardized average annual total
return information for the Subaccounts of Policies is as follows:
21
<PAGE>
- ---------------------------------------------- ------------ ===========
SUBACCOUNT NON-STANDARDIZED 1 Year From
AVERAGE ANNUAL TOTAL RETURN Ended Inception
(DOES NOT REFLECT WITHDRAWAL CHARGES) 12/31/97 to
Subaccount (date of inception) % 12/31/97
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95) 24.15 17.11
Alger American Small Capitalization (6/5/95) 9.96 8.32
Federated Prime Money Fund II (6/5/95) 3.58 3.43
Federated Fund for U.S. Government
Securities (6/5/95) 7.18 6.00
Fidelity VIP II Asset Manager: Growth (6/5/95) 23.48 20.03
Fidelity VIP II Contrafund (6/5/95) 22.56 20.79
Fidelity VIP Equity Income (6/5/95) 26.48 20.97
Fidelity VIP II Index 500 (5/1/97) N/A 25.67
MFS Emerging Growth (6/5/95) 20.35 20.59
MFS High Income (6/5/95) 12.16 10.51
MFS Research (6/5/95) 18.73 19.26
MFS Value Series (5/1/97) N/A 22.99
MFS World Government (6/5/95) -2.41 0.96
Morgan Stanley Emerging Markets Equity (5/1/98) N/A N/A
Morgan Stanley Fixed Income (5/1/98) N/A N/A
Pioneer Capital Growth (5/1/97) N/A 17.84
Pioneer Real Estate (5/1/97) N/A 23.79
Scudder Global Discovery (5/1/97) N/A 15.49
Scudder Growth & Income (5/1/97) N/A 21.59
Scudder International (6/5/95) 7.67 10.42
T. Rowe Price International (6/5/95) 1.76 8.19
T. Rowe Price New America Growth (6/5/95) 19.58 23.34
T. Rowe Price Equity Income (6/5/95) 27.22 23.81
T. Rowe Price Limited-Term Bond (6/5/95) 5.36 4.22
T. Rowe Price Personal Strategy Balanced (6/5/95 16.53 15.46
============================================== ============ ===========
Subaccount (date of inception) 1 Year From
(Policy issued with Enhanced Death Benefit) Ended Inception
12/31/97 to
12/31/97
============================================== ============ ===========
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95) 23.72 16.72
Alger American Small Capitalization (6/5/95) 9.58 7.96
Federated Prime Money Fund II (6/5/95) 3.22 3.09
Federated Fund for U.S. Government
Securities (6/5/95) 6.81 5.46
Fidelity VIP II Asset Manager: Growth (6/5/95) 23.06 19.63
Fidelity VIP II Contrafund (6/5/95) 22.14 20.39
Fidelity VIP Equity Income (6/5/95) 26.05 20.56
Fidelity VIP II Index 500 (5/1/97) N/A 25.25
MFS Emerging Growth (6/5/95) 19.94 20.19
MFS High Income (6/5/95) 11.77 10.14
MFS Research (6/5/95) 18.32 18.86
MFS Value Series (5/1/97) N/A 22.55
MFS World Government (6/5/95) -2.75 0.62
Morgan Stanley Emerging Markets Equity
(5/1/98) N/A N/A
Morgan Stanley Fixed Income (5/1/98) N/A N/A
Pioneer Capital Growth (5/1/97) N/A 17.45
Pioneer Real Estate (5/1/97) N/A 23.38
Scudder Global Discovery (5/1/97) N/A 15.22
Scudder Growth & Income (5/1/97) N/A 21.32
Scudder International (6/5/95) 7.29 10.05
T. Rowe Price International (6/5/95) 1.41 7.82
T. Rowe Price New America Growth (6/5/95) 19.16 22.93
T. Rowe Price Equity Income (6/5/95) 26.79 23.40
T. Rowe Price Limited-Term Bond (6/5/95) 5.00 3.87
T. Rowe Price Personal Strategy Balanced (6/5/95) 16.13 15.07
- ---------------------------------------------- ------------ ===========
In addition, United of Omaha may from time to time disclose average annual total
return in non-standard formats and cumulative total return for Policies funded
by the Subaccounts.
22
<PAGE>
THE FIGURES ABOVE ARE AN INDICATION OF PAST, BUT NOT FUTURE, PERFORMANCE OF THE
APPLICABLE SUBACCOUNTS AVAILABLE UNDER THE POLICY.
ADJUSTED HISTORICAL PERFORMANCE DATA. United of Omaha may, from time to time,
also disclose yield, standard total returns, and non-standard total returns for
the Portfolios of the Series Funds, including such disclosure for periods prior
to the dates the Subaccounts commenced operations. For periods prior to the date
the Subaccount commenced operations, performance information for Policies will
be calculated based on the performance of the Series Fund Portfolios and the
assumption that the Subaccounts were in existence for the same periods as those
indicated for the Series Fund Portfolios, with the level of Policy charges that
are currently in effect (this is referred to as "adjusted historical"
performance data).
PORTFOLIO PERFORMANCE DATA. United of Omaha may also disclose average annual
total returns for Series Fund Portfolios (or comparable portfolios) since their
inception, including such disclosure for periods prior to the date the Variable
Account commenced operations. These figures do not reflect the Variable Account
or Policy expenses. Such average annual total return information is as follows:
- ---------------------------------------- ----------- ---------- --------- =====
SERIES FUND 1 Year 5 Years 10 Years Since
AVERAGE ANNUAL TOTAL RETURN Ended Ended Ended Inception
(date of inception) 12/31/97 12/31/97 12/31/97 to 12/31/97
% % % %
- ----------------------------------------- ---------- -------- -------- ---------
Alger American Growth (1/9/89) 24.80 17.76 N/A 19.43
Alger American Small Capitalization (9/21/88) 18.75 11.21 N/A 19.23
Federated Prime Money Fund II (11/21/94) 4.93 N/A N/A 4.95
Federated Fund for U.S. Government Securities
(3/28/94) 8.58 N/A N/A 6.40
Fidelity VIP II Asset Manager: Growth (1/3/95) 25.07 N/A N/A 22.73
Fidelity VIP II Contrafund (1/3/95) 24.14 N/A N/A 28.16
Fidelity VIP Equity Income (10/9/86) 28.11 20.16 16.72 14.66
Fidelity VIP II Index 500 (8/27/92) 32.82 19.91 N/A 19.87
MFS Emerging Growth (7/24/95) 21.90 N/A N/A 23.53
MFS High Income (7/26/95) 13.62 N/A N/A 12.66
MFS Research (7/26/95) 20.26 N/A N/A 22.13
MFS Value Series (8/14/96) 26.47 N/A N/A 25.99
MFS World Government (6/14/94) 1.13 N/A N/A 4.92
Morgan Stanley Emerging Markets Equity 0.52 N/A N/A -1.22
(10/1/96)
Morgan Stanley Fixed Income (1/2/97) N/A N/A N/A 9.93
Pioneer Capital Growth (3/1/95) 22.98 N/A N/A 18.39
Pioneer Real Estate (3/1/95) 19.50 N/A N/A 24.16
Scudder Global Discovery (5/2/97) N/A N/A N/A 14.03
Scudder Growth & Income (5/1/97) N/A N/A N/A 22.89
Scudder International (5/1/87) 9.07 13.71 11.79 9.84
T. Rowe Price International (3/31/94) 3.09 N/A N/A 8.07
T. Rowe Price New America Growth (3/31/94) 21.12 N/A N/A 23.66
T. Rowe Price Equity Income (3/31/94) 28.85 N/A N/A 23.73
T. Rowe Price Limited-Term Bond (5/13/94) 6.74 N/A N/A 6.16
T. Rowe Price Personal Strategy Balanced 18.04 N/A N/A 20.13
(12/31/94)
===================================================== ======= ======= ==========
Non-standard performance data will only be disclosed if the standard
performance data for the required periods is also disclosed. For additional
information regarding the calculation of other performance data, please refer to
the Statement of Additional Information.
In advertising and sales literature, the performance of each Subaccount
may be compared to the performance of other variable annuity issuers in general
or to the performance of particular types of variable annuities investing in
mutual funds, or mutual fund portfolios with investment objectives similar to
each of the Subaccounts. Lipper Analytical Services, Inc. ("Lipper") and the
Variable Annuity Research Data Service ("VARDS") are independent services which
monitor and rank the performance of variable annuity issuers in each of the
major categories of investment objectives on an industry-wide basis.
23
<PAGE>
Lipper's rankings include variable life insurance issuers as well as
variable annuity issuers. VARDS rankings compare only variable annuity issuers.
The performance analyses prepared by Lipper and VARDS each rank such issuers on
the basis of total return, assuming reinvestment of distributions, but do not
take sales charges, redemption fees, or certain expense deductions at the
separate account level into consideration. In addition, VARDS prepares risk
adjusted rankings, which consider the effects of market risk on total return
performance. This type of ranking provides data as to which funds provide the
highest total return within various categories of funds defined by the degree of
risk inherent in their investment objectives.
Advertising and sales literature may also compare the performance of each
Subaccount to the Standard & Poor's Index of 500 Common Stocks, a widely used
measure of stock performance. This unmanaged index assumes the reinvestment of
dividends but does not reflect any "deduction" for the expense of operating or
managing an investment portfolio. Other independent ranking services and indices
may also be used as a source of performance comparison.
United of Omaha may also report other information including the effect of
tax-deferred compounding on a Subaccount's investment returns, or returns in
general, which may be illustrated by tables, graphs, or charts. All income and
capital gains derived from Subaccount investments are reinvested and can lead to
substantial long-term accumulation of assets, provided that the underlying
portfolio's investment experience is positive.
THE FIXED ACCOUNT AND THE SYSTEMATIC TRANSFER ACCOUNT
This Prospectus is generally intended to serve as a disclosure document only
for the Policy and the Variable Account. For complete details regarding the
Fixed Account and the Systematic Transfer Account, see the Policy itself.
The Systematic Transfer Account is the fixed account option used if the
Policy Owner elects at the time of application to participate in the Systematic
Transfer Enrollment Program ("STEP program"), which is used to automatically
transfer a predetermined dollar amount on a monthly basis to any of the
subaccounts which are chosen at the time of application. The allocation and the
predetermined dollar amount may not be changed. The Policy Owner must make a
minimum allocation of $5,000 to the Systematic Transfer Account in order to
participate in the STEP program. No additional funds (other than funds
designated in the application to be transferred into the Policy pursuant to an
Internal Revenue Code Section 1035 transfer) may be allocated to the Systematic
Transfer Account after the Date of Issue.
NET PURCHASE PAYMENTS ALLOCATED TO THE SYSTEMATIC TRANSFER ACCOUNT AND NET
PURCHASE PAYMENTS ALLOCATED AND AMOUNTS TRANSFERRED TO THE FIXED ACCOUNT BECOME
PART OF THE GENERAL ACCOUNT ASSETS OF UNITED OF OMAHA. INTERESTS IN THE GENERAL
ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "1933
ACT"), NOR IS THE GENERAL ACCOUNT REGISTERED AS AN INVESTMENT COMPANY UNDER THE
1940 ACT. ACCORDINGLY, NEITHER THE GENERAL ACCOUNT NOR ANY INTERESTS THEREIN ARE
GENERALLY SUBJECT TO THE PROVISIONS OF THE 1933 OR 1940 ACTS, AND UNITED OF
OMAHA HAS BEEN ADVISED THAT THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION
HAS NOT REVIEWED THE DISCLOSURES IN THIS PROSPECTUS WHICH RELATE TO THE FIXED
ACCOUNT.
The Fixed Account and the Systematic Transfer Account includes all the assets
of United of Omaha except those segregated in the Variable Account or in any
other separate investment account. The Policy Owner may allocate Net Purchase
Payments to the Fixed Account at the time of a Purchase Payment or transfer
amounts from the Variable Account to the Fixed Account. Instead of the Policy
Owner bearing the investment risk, as is the case for Accumulation Value in the
Variable Account, United of Omaha bears the full investment risk for all
Accumulation Value in the Fixed Account. United of Omaha has sole discretion to
invest the assets of its general account, including the Fixed Account, subject
to applicable law.
United of Omaha guarantees that it will credit interest to amounts in the
Fixed Account and the Systematic Transfer Account at an effective rate of at
least 3% per year. United of Omaha may, IN ITS SOLE DISCRETION, credit amounts
in the Fixed Account and the Systematic Transfer Account with interest at a
current interest rate in excess of 3%. Once declared, a current interest rate
will be guaranteed for at least one year. Different amounts of interest may be
credited to the Systematic Transfer Account and the Fixed Account. ONE TRANSFER
OUT OF THE FIXED ACCOUNT IS ALLOWED EACH POLICY YEAR. Moreover, the maximum
amount that can be transferred out of the Fixed Account during any Policy Year
is 10% of Fixed Account Value on the date of the transfer. No charge is imposed
on such transfers. Funds allocated to the Systematic Transfer Account must be
completely transferred to subaccounts or the Fixed Account within 13 months of
deposit. Such transfers from the Systematic Transfer Account do not count toward
the 12 free transfers between subaccounts or to the Fixed Account allowed each
Policy year. You may not transfer funds to the Systematic Transfer Account.
United of Omaha reserves the right to modify transfer privileges at any time.
(See "THE ELIGIBLE INVESTMENTS: Transfers.") Partial withdrawals from the Fixed
Account are limited to a pro rata amount (with withdrawals from the Variable
Account). Withdrawals and transfers from the Fixed Account and the Systematic
Transfer Account may be delayed for up to six months, and withdrawals may be
subject to a Withdrawal Charge. (See "DISTRIBUTIONS UNDER THE POLICY:
Withdrawals." ) For purposes of crediting interest, the oldest payment or
transfer into the Fixed Account, plus interest allocable to that payment or
transfer, is considered to be withdrawn or transferred out first; the next
oldest payment plus interest is considered to be transferred out next, and so on
(this is a "first-in, first-out" procedure).
United of Omaha guarantees that, at any time prior to the Annuity Starting
Date, the amount in the Fixed Account or Systematic Transfer Account allocable
to a particular Policy will be not be less than the amount of the Net Purchase
24
<PAGE>
Payments allocated or transferred to the Fixed Account or allocated to the
Systematic Transfer Account, plus interest at an effective rate of 3% per year,
plus any excess interest credited to amounts in the Fixed Account or Systematic
Transfer Account, less any applicable premium or other taxes allocable to the
Fixed Account or Systematic Transfer Account, and less any amounts deducted from
the Fixed Account or Systematic Transfer Account in connection with partial
withdrawals (including any Withdrawal Charges) or transfers to the Variable
Account.
The current interest rates will be determined by United of Omaha in its
sole discretion.
UNITED OF OMAHA'S MANAGEMENT HAS COMPLETE AND SOLE DISCRETION TO DETERMINE
THE CURRENT INTEREST RATES IN THE FIXED ACCOUNT AND THE SYSTEMATIC TRANSFER
ACCOUNT. THE RATE OF INTEREST CREDITED TO EACH DEPOSIT INTO THE SYSTEMATIC
TRANSFER ACCOUNT IS FIXED ON THE DATE OF EACH DEPOSIT. UNITED OF OMAHA CANNOT
PREDICT OR GUARANTEE THE LEVEL OF FUTURE CURRENT INTEREST RATES, EXCEPT THAT
UNITED OF OMAHA GUARANTEES THAT FUTURE CURRENT INTEREST RATES WILL NOT BE BELOW
AN EFFECTIVE RATE OF 3% PER YEAR COMPOUNDED ANNUALLY. THE POLICY OWNER BEARS THE
RISK THAT CURRENT INTEREST RATES WILL NOT EXCEED AN EFFECTIVE RATE OF 3% PER
YEAR.
TRANSFERS
SUBJECT TO the limitations and restrictions described below, transfers out of
a Subaccount of the Variable Account may be made any time prior to the Annuity
Starting Date, by sending Written Notice, signed by the Policy Owner, to the
Service Office. Transfers also may be requested by telephone, subject to the
provisions described below under "THE POLICY: Telephone Transactions." United of
Omaha reserves the right, at any time and without notice to any party, to modify
the transfer privileges under the Policy.
An Owner can transfer Accumulation Value from one Subaccount of the Variable
Account to another, or from the Variable Account to the Fixed Account or from
the Fixed Account to any Subaccount of the Variable Account within certain
limits. The minimum amount which may be transferred is the lesser of $500 or the
entire Subaccount Value. If the Subaccount Value remaining after a transfer is
less than $500, United of Omaha will include that amount as part of the
transfer. Transfers out of a Subaccount currently may be made as often as the
Owner wishes, subject to the minimum amount specified above (United of Omaha
reserves the right to otherwise limit or restrict transfers in the future or to
eliminate the transfer privilege). United of Omaha reserves the right to
restrict transfers from the Variable Account to the Fixed Account of amounts
previously transferred from the Fixed Account, for a period of time determined
by United of Omaha.
A transfer fee of $10 may be imposed for any transfer in excess of 12 per
Policy Year. The transfer fee is deducted from the amount transferred. (See
"CHARGES AND DEDUCTIONS.")
Transfers from the Fixed Account currently may be made only once each Policy
Year. Transfers from the Fixed Account do not count toward the 12 free transfer
limit described above, and no transfer charge will be imposed on transfers from
the Fixed Account. Moreover, the maximum amount that can be transferred out of
the Fixed Account during any Policy Year is 10% of the Fixed Account Value on
the date of the transfer.
All funds allocated to the Systematic Transfer Account will be automatically
transferred to subaccounts or the Fixed Account within 13 months of deposit
pursuant to the Owner's allocation instructions but at a monthly rate of not
less than 1/12th of the amount allocated to the Systematic Transfer Account.
Transfers from the Systematic Transfer Account do not count toward the 12 free
transfer limit described above, and no transfer charge will be imposed on
transfers from the Systematic Transfer Account.
The Policy is designed as a long-term investment, for retirement or other
financial planning. The Policy is not intended for active trading or "market
timing." Excessive transfers could harm other Policy Owners by having a
detrimental effect on portfolio management (which could occur, for example, if
it caused excessive commission expense or caused the manager to keep higher cash
reserves than otherwise). Therefore, United of Omaha reserves the right to limit
the number of Transfers from the Subaccounts of the Variable Account and the
Fixed Account if United of Omaha believes that: (a) excessive trading by the
Policy Owner or a specific Transfer request would have a detrimental effect on
Accumulation Unit values or the share prices of the Portfolios; or (b) United of
Omaha is informed by one or more of the Series Funds or the Variable Account
that the purchase or redemption of shares is to be restricted because of
excessive trading or a Transfer or group of Transfers is deemed to have a
detrimental effect on share prices of one or more Portfolios or the Variable
Account.
Where permitted by law, United of Omaha may accept a Policy Owner's
authorization of third party reallocation on such Owner's behalf, subject to
United of Omaha's rules. United of Omaha may suspend or cancel such acceptance
at any time. For example, third party reallocation by "market timers" could be
suspended if they cause harm to other Policy Owners. United of Omaha will notify
the Policy Owner of any such suspension or cancellation. United of Omaha may
restrict the availability of Subaccounts and the Fixed Account for Transfers
during any period in which the Policy Owner authorizes such third party to act
on his behalf. United of Omaha will give Owners prior notification of any such
restrictions. However, United of Omaha will not enforce such restrictions if it
is provided with satisfactory evidence that: (a) such third party has been
appointed by a court of competent jurisdiction to act on the Policy Owner's
behalf; or (b) such third party has been appointed by the Policy Owner to act on
his behalf for all his financial affairs.
25
<PAGE>
DOLLAR COST AVERAGING
Under the Dollar Cost Averaging program, the Policy Owner can instruct United
of Omaha to automatically transfer, on a periodic basis, a predetermined amount
or percentage specified by the Policy Owner from any one Subaccount or the Fixed
Account to any Subaccount(s) of the Variable Account. The automatic transfers
can occur monthly, quarterly, semi-annually, or annually, and the amount
transferred each time must be at least $100 and must be $50 per Subaccount. At
the time the program begins, there must be at least $5,000 of Accumulation Value
in the applicable Subaccount or the Fixed Account. If transfers are made from
the Fixed Account, the maximum periodic transfer amount is 10% of that account's
value at the time of the first Dollar Cost Averaging transfer. There is no
maximum transfer amount requirement out of the Subaccounts of the Variable
Account.
If a percentage is specified for Dollar Cost Averaging transfers, the
percentage is calculated on the date each transfer is processed. This means the
amount of the transfer may vary with each transaction, and is dependent upon the
Accumulation Value of the Subaccount(s) or Fixed Account from which the transfer
is to be made. If a predetermined dollar amount is specified for Dollar Cost
Averaging transfers, the amount of the transfer will not vary with each
transaction regardless of changes in the Accumulation Value of the Subaccount(s)
or Fixed Account from which transfers are made. The predetermined dollar amount
may be changed by providing Written Notice to United of Omaha.
Dollar Cost Averaging results in the purchase of more Accumulation Units when
the Accumulation Unit value is low, and fewer units when the Accumulation Unit
value is high. However, there is no guarantee that the Dollar Cost Averaging
program will result in higher Accumulation Value or otherwise be successful.
The Policy Owner can request participation in the Dollar Cost Averaging
program when purchasing the Policy or at a later date. Dollar Cost Averaging
program transfers cannot begin before the end of a Policy's free look (a/k/a
"right to examine") period. Transfers will begin on the 1st through the 28th day
(or, if not a Valuation Date, the next following Valuation Date), as specified
by the Owner, following the Policy's free look period. If no date is selected,
the Dollar Cost Averaging program will begin on the next Policy monthly
anniversary following the date the Policy's free look period ends. The Owner can
specify that only a certain number of transfers will be made, in which case the
program will terminate when that number of transfers has been made. Otherwise,
the program will terminate when the amount remaining in the applicable
Subaccount or, if applicable, the Fixed Account is less than $500.
The Owner can increase or decrease the amount or percentage of the transfers
or discontinue the program by sending Written Notice to the Service Office or by
telephone, if telephone transactions are authorized. There is no charge for
participation in this program.
SYSTEMATIC TRANSFER ENROLLMENT PROGRAM ("STEP PROGRAM")
At the time of application the Policy Owner may elect to participate in the
Systematic Transfer Enrollment Program to automatically transfer funds on a
monthly basis from the Systematic Transfer Account to any of the Subaccounts of
the Variable Account or to the Fixed Account which are chosen by the Policy
Owner at the time of application. At the time the program begins, there must be
at least $5,000 of Accumulation Value in the Systematic Transfer Account, and
the monthly dollar amount to be transferred must be no less than 1/12th of the
amount sufficient to transfer the entire amount in the Systematic Transfer
Account within 13 months of deposit, and must allocate at least $50 per
Subaccount. The allocation and the dollar amount to be transferred each month
may not be changed. No new purchase payments (other than funds designated in the
application to be transferred into the Policy pursuant to an Internal Revenue
Code Section 1035 transfer) may be allocated to this account after the Policy
Issue Date. Upon receipt of funds by IRC Section 1035 transfer, the 13 month
period requirement is restarted from the date the transfer is received, and the
1/12th minimum monthly transfer amount is recalculated. No transfers may be made
into the Systematic Transfer Account. There is no charge for participation in
this program.
Like the Dollar Cost Averaging program, the STEP program results in the
purchase of more Accumulation Units when the Accumulation Unit value is low, and
fewer units when the Accumulation Unit value is high. However, there is no
guarantee that the STEP program will result in higher Accumulation Value or
otherwise be successful. The STEP program is designed for the Policy Owner who
desires to have most of the Owner's Policy funds allocated to Subaccounts of the
Variable Account within a 13 month period by using dollar cost averaging
concepts; if the Owner's desire is to move Policy funds from a guaranteed
interest fixed account into subaccounts of the Variable Account over a longer
time period using the same concepts, the Owner should use the Dollar Cost
Averaging program. Under the STEP program, all funds remaining in the Systematic
Transfer Account on the date of the 13th monthly transfer date will be
transferred to the Subaccounts designated by the Owner in a pro rata amount
consistent with the Owner's allocation instructions.
STEP program transfers cannot begin before the end of the Policy's free look
(a/k/a "right to examine") period. Transfers will begin on the 1st through the
28th day (or, if not a Valuation Date, the next following Valuation Date), as
specified by the Owner, following the free look period. If no date is selected,
the STEP program will begin on the next Policy monthly anniversary following the
date the Policy's free look period ends. The program will terminate the earlier
of the date when the amount in the Systematic Transfer Account have been fully
transferred or the date of the 13th monthly STEP program transfer.
26
<PAGE>
ASSET ALLOCATION PROGRAM
Under the Asset Allocation Program, the Policy Owner can instruct United of
Omaha to allocate purchase payments and Accumulation Value among the Subaccounts
of the Variable Account and the Fixed Account in accordance with allocation
instructions specified by the Policy Owner. United of Omaha will rebalance a
Policy Owner's investment by allocating purchase payments and transferring
Accumulation Value among the Subaccounts and the Fixed Account to ensure
conformity with current allocation instructions. Rebalancing will be performed
on a quarterly, semi-annual or annual basis as specified by the Policy Owner.
Transfers of Accumulation Value made pursuant this program will not be counted
in determining whether the Transfer Fee applies. At the time the program begins,
there must be at least $10,000 of Accumulation Value under the Policy.
........The asset allocations are divided into 5 asset allocation models, with
subaccount allocations in each. The 5 models are: Principal Preserver
(conservative), Portfolio Protector (moderately conservative), Income Builder
(moderate), Capital Accumulator (moderately aggressive), and Equity Maximizer
(aggressive). United of Omaha uses the services of Ibbotson Associates to
develop subaccount allocations for each model. Ibbotson Associates is a
Chicago-based investment consulting firm specializing in applying investment
theories and empirical findings (such as historical return data collected on the
subaccount portfolios) to quantify the benefits of diversification for
particular investment profiles. ........The current subaccount allocations for
each asset allocation model are as follows:
<TABLE>
<CAPTION>
- ------------------------------ ------------------------------------------------------------------------
ASSET ALLOCATION MODEL
ALLOCATIONS
- ------------------------------ ------------------------------------------------------------------------
- ------------------------------ -------------- -------------- ------------- -------------- -------------
PORTFOLIO PRINCIPAL PORTOLIO INCOME CAPITAL EQUITY
(LISTED AGGRESSIVE CONSERVER PROTECTOR BUILDER ACCUMULATOR MAXIMIZER
(CONSERVATIVE) (MODERATELY (MODERATE) (MODERATELY (AGGRESSIVE)
TO CONSERVATIVE) CONSERVATIVE) AGGRESSIVE)
% % % % %
- ---------------------------- ----------- -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Alger American Small
Capitalization 5 4 10 12
Pioneer Real Estate Growth 4 5 6
T.Rowe Price International 6 13 22 25
Scudder International 16
MFS High Income 4 5 5
T.Rowe Price New America
Growth 10
MFS Value Series 5 10 15 10
Fidelity VIP II Index 500 5 10 15 12 16
T.Rowe Price Equity Income 10 20
Fidelity VIP Equity Income 8 16 16
MFS World Government 3 5 5
Federated Fund for U.S.
Government Securities 5
T.Rowe Price Limited-Term 50 37 20 16
Bond
Morgan Stanley Fixed Income
Bond 5
Federated Prime Money Fund II 19 10 5
- ------------------------------ -------------- -------------- ------------- -------------- -------------
</TABLE>
The Policy Owner can request participation in the Asset Allocation Program
when purchasing the Policy or at a later date. The Owner can change his
allocation percentage or discontinue the program by sending Written Notice to
the Service Office or by calling 1-(800) 238-9354. There is no charge for
participation in this program.
27
<PAGE>
THE POLICY
The Ultrannuity Series V Variable Annuity Policy is a Flexible Payment
Variable Deferred Annuity Policy. The rights and benefits under the Policy are
summarized below; however, the description of the Policy contained in this
Prospectus is qualified in its entirety by the Policy itself, a copy of which is
available upon request from United of Omaha. The Policy may be purchased as a
Nonqualified Policy or as a Qualified Policy. The Policy will remain in force
until surrendered for its Cash Surrender Value, or all Proceeds have been paid
under a Payout Option or as a death benefit or upon termination.
POLICY APPLICATION AND ISSUANCE OF POLICIES
Before it will issue a Policy, United of Omaha must receive a completed
Policy application and a minimum initial Purchase Payment of $5,000. A
Nonqualified Policy ordinarily will be issued only in respect of Owner's Age 0
through 85, and a Qualified Policy ordinarily will be issued only in respect of
Owner's Age 0 through 70 1/2. United of Omaha reserves the right to reject any
application or Purchase Payment.
Under United of Omaha's Electronic Fund Transfer program, the Owner can
select a monthly payment schedule pursuant to which purchase payments will be
automatically deducted from a bank or credit union account or other sources. The
minimum size of an initial Purchase Payment must be at least $2,000. Each
subsequent monthly payment must be at least $100.
If the application can be accepted in the form received, the initial Net
Purchase Payment will be credited to the Accumulation Value within two business
days after the later of receipt of the application or receipt of the initial
Purchase Payment. If the initial Purchase Payment cannot be credited because the
application or other issuing requirements are incomplete, the applicant will be
contacted within five business days and given an explanation for the delay, and
the initial Purchase Payment will be returned at that time unless the applicant
consents to United of Omaha's retaining the initial Purchase Payment and
crediting it, net of any charge for applicable premium taxes, as soon as the
necessary requirements are completed.
The date on which the initial Net Purchase Payment is credited to the
Accumulation Value is the Date of Issue. The Date of Issue is the date used to
determine Policy Years and Policy anniversaries.
PURCHASE PAYMENTS
All initial Purchase Payment checks or drafts should be made payable to
United of Omaha Life Insurance Company and sent to the Service Office.
Additional Purchase Payments should be sent to the Service Office. The death
benefit will not take effect until the check or draft for the Purchase Payment
is honored.
INITIAL PURCHASE PAYMENT. The minimum initial Purchase Payment that United of
Omaha currently will accept under both a Nonqualified Policy and a Qualified
Policy is $5,000 except under the Electronic Fund Transfer Program where the
minimum initial Purchase Payment is $2,000. United of Omaha reserves the right
to increase or decrease this amount. The initial Purchase Payment is the only
Purchase Payment required to be paid under a Policy.
ADDITIONAL PURCHASE PAYMENTS. The Owner may pay additional Purchase Payments.
The minimum additional Purchase Payment under both a Nonqualified Policy and a
Qualified Policy is $500 except under the Electronic Transfer Program where the
minimum additional Purchase Payment is $100. Additional Net Purchase Payments
will be credited to the Policy and added to the Accumulation Value as of the
Valuation Date when they are received at the Service Office. United of Omaha
will not accept any additional Purchase Payments beginning on the Policy
Anniversary following the Owner's 88th birthday.
ALLOCATION OF NET PURCHASE PAYMENTS. An Owner must allocate Net Purchase
Payments to one or more of the Eligible Investments. The Owner must specify the
initial allocation in the Policy application. This allocation will be used for
additional Net Purchase Payments unless the Owner requests a change of
allocation. All allocations must be made in whole percentages and must total
100%. The minimum allocation amount is $500 ($100 under the Electronic Fund
Transfer Program). If the Owner fails to specify how Net Purchase Payments are
to be allocated, the Purchase Payment(s) cannot be accepted. In states that
permit United of Omaha to refund only the Accumulation Value upon the Owner's
cancellation of the Policy during the free look period, the initial Net Purchase
Payment will be allocated to the Owner's selected Subaccounts on the Date of
Issue. In states where at least the full Purchase Payment is refunded, the
portion of the initial Net Purchase Payment (and of any additional Purchase
Payments made during the free look period) allocated to the Variable Account
will be held in the Money Market Subaccount for the applicable Free Look period
specified by the state of issue plus 5 days, from the date that the Policy is
mailed from United of Omaha's Service Office. (Since the Free Look period is
measured from the Owner's date of receipt of the Policy, the extra 5 days is to
allow for estimated time needed for delivery of the Policy.) At the end of that
period, if the Policy has not been returned for a refund, the initial Net
Purchase Payment will be invested in the Subaccounts in accordance with the
allocation instructions provided in the Owner's application. All additional Net
Purchase Payments received after the end of the free look period will be
allocated and credited to the Owner's Policy as of the Valuation Period during
which they are received.
28
<PAGE>
The Owner may change the allocation instructions for future additional Net
Purchase Payments by sending Written Notice, signed by the Owner, to United of
Omaha's Service Office, or by telephone (subject to the provisions described
below under "THE POLICY: Telephone Transactions."). The allocation change will
apply to payments received on or after the date the Written Notice or telephone
request is received.
PAYMENT NOT HONORED BY BANK. Any payment due under the Policy which is
derived, all or in part, from any amount paid to United of Omaha by check or
draft may be postponed until such time as United of Omaha determines that such
instrument has been honored. Payment by certified check, banker's draft, or
cashier's check will be promptly applied.
ACCUMULATION VALUE
On the Date of Issue, the Accumulation Value equals the initial Purchase
Payment less any charge for applicable premium taxes. On any Valuation Date
thereafter, the Accumulation Value equals the sum of the values in the Variable
Account, the Fixed Account and the Systematic Transfer Account.
The Accumulation Value is expected to change from Valuation Period to
Valuation Period, reflecting the expenses and investment experience of (or
interest credited to) the selected Eligible Investments as well as the Variable
Account deductions for charges.
THE VARIABLE ACCOUNT VALUE. The Accumulation Value for each Subaccount is
equal to:
(a) the current number of Accumulation Units in the Subaccount for the
Policy; multiplied by
(b) the current Accumulation Unit value.
A Net Purchase Payment or transfer allocated to a Subaccount is converted
into Accumulation Units by dividing it by the Accumulation Unit value for the
Valuation Period during which the Net Purchase Payment or transfer is allocated
to the Variable Account. The initial Accumulation Unit value for each Subaccount
was set at $10 when the Subaccount was established. The Accumulation Unit value
may increase or decrease from one Valuation Date to the next.
The Accumulation Unit value for a Subaccount on any Valuation Date is
calculated as follows:
(a) The net asset value per share of the Portfolio multiplied by the
number of shares held in the Subaccount, before the purchase or
redemption of any shares on that date; minus
(b) the cumulative unpaid charge for the Mortality and Expense Risk
Charge and Administrative Expense Charge; minus
(c) any applicable charge for federal and state income taxes, if any;
the result divided by
(d) the total number of Accumulation Units held in the Subaccount on
the Valuation Date, before the purchase or redemption of any
Accumulation Units on that day.
Positive investment experience of the applicable Portfolio will increase the
Accumulation Unit values and negative investment experience will decrease the
Unit values. Expenses and deductions will have a negative effect on Unit values.
THE FIXED ACCOUNT VALUE. The Accumulation Value of the Fixed Account on
any Valuation Date is equal to:
(a) the Accumulation Value at the end of the preceding Policy Month;
plus
(b) any Net Purchase Payments credited since the end of the previous
Policy Month; plus
(c) any transfers from the Subaccounts credited to the Fixed Account
since the end of the previous Policy Month; minus
(d) any transfers from the Fixed Account to the Subaccounts since the
end of the previous Policy Month; minus
(e) any partial withdrawal and Withdrawal Charge taken from the Fixed
Account since the end of the previous Policy Month; plus
(f) interest credited on the Fixed Account balance.
United of Omaha guarantees that the Accumulation Value in the Fixed Account will
be credited with an effective annual interest rate of at least 3%.
THE SYSTEMATIC TRANSFER ACCOUNT VALUE. The Accumulation Value of the Systematic
Transfer Account on any Valuation Date is equal to:
(a) the value at the Issue Date; plus
(b) any transfers from the Systematic Transfer Account to the
Subaccounts since the end of the previous Policy Month; plus
(c) interest credited on the Systematic Account balance. United of
Omaha guarantees the Accumulation Value in the Systematic Transfer
Account will be credited with an effective interest rate of at least
3%.
TELEPHONE TRANSACTIONS
Owners can make transfers, partial withdrawals of $10,000 or less, and/or
change the allocation of subsequent Net Purchase Payments by telephone if they
have checked the "Telephone Transaction Authorization" box in the application or
if they have subsequently authorized telephone transactions in writing.
29
<PAGE>
(Requests to withdraw amounts exceeding $10,000 must be made in writing, signed
by the Owner.) United of Omaha will not be liable for following instructions
communicated by telephone that it believes to be genuine. However, United of
Omaha will employ reasonable procedures to confirm that instructions
communicated by telephone are genuine. If United of Omaha fails to do so, it may
be liable for any losses due to unauthorized or fraudulent instructions. All
telephone requests will be recorded on voice recorder equipment for the
protection of the Policy Owner. Owners making telephone requests will be
required to provide their social security number and/or other information for
identification purposes.
Telephone requests must be received at the Service Office no later than
4:00 p.m. Eastern time in order to be processed. Telephone transfer requests
will not be accepted after that time.
The telephone transaction privilege may be discontinued at any time as to
some or all Owners.
NON-PARTICIPATING POLICY
The Policy does not participate or share in the profits or surplus earnings
of United of Omaha. No dividends are payable on the Policy.
TERMINATION
If the Accumulation Value is less than $500, United of Omaha may cancel the
Policy upon 60 days' notice to the Owner. This cancellation will be considered a
full surrender of the Policy. If the Accumulation Value in any Subaccount falls
below $500, United of Omaha reserves the right to transfer the remaining
balance, without charge, to the Money Market Subaccount.
DISTRIBUTIONS UNDER THE POLICY
WITHDRAWALS
The Owner may withdraw all or a portion of the Cash Surrender Value in
exchange for a cash payment from United of Omaha. The Cash Surrender Value is
the Accumulation Value less any applicable Withdrawal Charge, any applicable
Policy Fee, any applicable premium taxes, and, if the Enhanced Death Benefit is
elected, the Enhanced Death Benefit Charge. (See "CHARGES AND DEDUCTIONS.").
The Owner may withdraw Cash Surrender Value from the Variable Account at
any time prior to the Annuity Starting Date by sending a Written Request to
United of Omaha's Service Office. The minimum amount that can be withdrawn from
any Eligible Investment is $500. After a partial withdrawal, the remaining
Accumulation Value must be at least $500. In the absence of written instructions
from the Owner, withdrawals will result in cancellation of Accumulation Units
from each applicable Subaccount and the deduction of Accumulation Value from the
Fixed Account or Systematic Transfer Account in the ratio that the value of each
such Eligible Investment bears to the total Accumulation Value of the Policy
(i.e., pro rata from each Eligible Investment). No more than a pro-rata amount
may be withdrawn from the Fixed Account or Systematic Transfer Account for any
partial withdrawal. Withdrawals from the Systematic Transfer Account will not
affect the minimum monthly transfer amount from that Account, so will cause the
total amount to be transferred to be complete in less time than originally
anticipated. If the Owner requests a surrender, the Policy must be returned to
the Service Office.
Withdrawals from the Fixed Account and Systematic Transfer Account may be
delayed for up to six months.
Each Policy Year the Owner may withdraw up to 15% of Accumulation Value as
of the date of the first withdrawal that year without deduction of a Withdrawal
Charge. The 15% amount is determined when the first withdrawal is made and
additional Purchase Payments contributed in that Policy Year will not be
included. Amounts withdrawn in excess of this free withdrawal amount may be
subject to the Withdrawal Charge of up to 7%. For a discussion of the Withdrawal
Charge, see "CHARGES AND DEDUCTIONS: Withdrawal Charge."
Withdrawals may be taxable and subject to a penalty tax. (See "CHARGES AND
DEDUCTIONS: Certain Federal Income Tax Consequences.")
Since the Owner assumes the investment risk with respect to Net Purchase
Payments allocated to the Variable Account, and because surrenders and
withdrawals are subject to a Withdrawal Charge, and possibly a charge for
premium taxes, the total amount paid upon total surrender of the Policy (taking
any prior partial withdrawals into account) may be more or less than the total
Purchase Payments made. Following a surrender of the Policy, or at any time the
Accumulation Value is zero, all rights of the Owner will terminate.
30
<PAGE>
SYSTEMATIC WITHDRAWAL PLAN
Under the Systematic Withdrawal Plan, the Policy Owner can instruct United
of Omaha to make automatic payments of a predetermined dollar amount or fixed
percentage of Accumulation Value to them monthly, quarterly, semi-annually or
annually from a specified Eligible Investment. The minimum systematic withdrawal
payment is $100. The "Request for Systematic Withdrawal" form must specify a
date for the first payment, which must be at least 30 but not more than 90 days
after the form is submitted. The Owner may specify the Eligible Investments from
which Systematic Withdrawals will be made, but no more than a pro-rata amount
can be withdrawn from the Fixed Account or Systematic Transfer Account. If the
Owner does not specify the Eligible Investments from which Systematic
Withdrawals are to be taken, Systematic Withdrawals will be taken from each
Eligible Investment in the proportion that the Accumulation Value in each
Eligible Investment bears to the total Accumulation Value of the Policy.
The Withdrawal Charge will apply in accordance with its terms.
A qualified tax adviser should be consulted before a Systematic Withdrawal
Plan is requested since distributions under such a Plan may be taxable and
subject to a penalty tax. (See "CHARGES AND DEDUCTIONS: Certain Federal Income
Tax Consequences.")
ANNUITY PAYMENTS
Payees receiving Annuity Payments under the Policy must be individuals who
receive payments in their own behalf unless otherwise agreed to by United of
Omaha. Any Payout Option chosen will be effective when United of Omaha
acknowledges it. United of Omaha may require proof of the Owner's or the
Annuitant's age or survival. The level of Annuity Payments is determined by the
Accumulation Value, the age and sex of the Annuitant, and the Payout Option
elected. Where required by law, Annuity Payments will be determined without
regard to the Annuitant's sex.
Amounts applied to Annuity Payments may be subject to an Withdrawal Charge.
(See "CHARGES AND DEDUCTIONS: Withdrawal Charge.") However, a Withdrawal Charge
will not apply on the Annuity Starting Date if the Accumulation Value is applied
after the second Policy Anniversary to provide lifetime Annuity Payments under
Payout Option 4.
ANNUITY STARTING DATE. Unless the Annuity Starting Date is changed, Annuity
Payments under a Policy will begin on the Annuity Starting Date which is
selected by the Policy Owner at the time the Policy is applied for. The latest
Annuity Starting Date permitted is when the Annuitant attains age 95 (age 85 in
Pennsylvania). An earlier Annuity Starting Date is required for Qualified
Contracts. The Annuity Starting Date may be changed from time to time by the
Policy Owner by Written Notice to United of Omaha, provided that notice of each
change is received by United of Omaha at its Service Office at least thirty (30)
days prior to the then current Annuity Starting Date.
ELECTION OF PAYOUT OPTION. The Policy Owner will choose a Payout Option, to
provide variable annuity payments or fixed annuity payments or a combination of
both, under which the Policy Proceeds will be paid to the Payee(s)shown in the
Policy application. During the lifetime of the Owner and prior to the Annuity
Starting Date, the Policy Owner may change the election, but Written Notice of
any election or change of election must be received by United of Omaha at its
Service Office at least thirty (30) days prior to the Annuity Starting Date. If
no election is made prior to the Annuity Starting Date, then the Accumulation
Value in the Variable Account will be used to provide variable Annuity Payments,
and the Accumulation Value in the Fixed Account will be used to provide fixed
Annuity Payments, and Annuity Payments will be made under Option 4 providing
lifetime income with payments guaranteed for 10 years. United of Omaha reserves
the right to pay the Proceeds in one sum when the Proceeds are less than $2,000,
or when the Payout Option chosen would result in periodic payments of less than
$20.
If the Owner dies prior to the Annuity Starting Date (and the Policy is in
force), the Beneficiary may elect to receive the death benefit under one of the
Payout Options, to the extent allowed by law and subject to the terms of any
settlement agreement. (See "DISTRIBUTIONS UNDER THE POLICY: Death Benefit.")
The longer the guaranteed or projected Payout Option period, the lower the
amount of each payment.
Unless the Policy Owner specifies otherwise, the Payee shall be the
Annuitant.
FIXED ANNUITY PAYMENTS. Fixed annuity payments are available under all six
Payout Options below. Under each fixed Payout Option the amount of each payment
will be set on the Annuity Starting Date and will not change. Annuity Payments
will begin on that date. The Annuity Purchase Value will be transferred to the
general account of United of Omaha, and the Annuity Payments will be fixed in
amount by the fixed annuity provisions selected and the age and sex (if
consideration of sex is allowed) of the Annuitant. The guaranteed effective
annual interest rate used in the Payout Options is 3%. Using a procedure
approved by its Board of Directors, United of Omaha may, at its sole discretion,
declare additional interest to be paid or credited annually for Payout Options
1, 2, 3, or 6. Current immediate annuity rates for the same class of annuities
will be used if higher than the guaranteed amounts (guaranteed amounts are based
upon the tables contained in the Policy). The guaranteed amounts are based on
the 1983 Table "A" mortality table, and 3.0% guaranteed interest rate. Current
amounts may be obtained from United of Omaha. For further information, contact
United of Omaha at its Service Office.
31
<PAGE>
VARIABLE ANNUITY PAYMENTS. Only Payout Options 2, 4, and 6 are available
for variable annuity payments. The dollar amount of the first monthly annuity
payment will be determined by applying the Annuity Purchase Value allocated to
variable annuity payments to the annuity table applicable to the Payout Option
chosen. The tables are determined from the 1983 Table "a" mortality table with
an assumed investment rate of 4%. If more than one subaccount has been selected,
the Annuity Purchase Value of each subaccount is applied separately to the
annuity table to determine the amount of the first annuity payment attributable
to that particular subaccount.
All variable annuity payments other than the first will vary in
amount according to the investment performance of the applicable subaccounts.
The amount of each subsequent payment is the sum of: the number of Variable
Annuity Units for each subaccount as determined for the first annuity payment
multiplied by the value of a Variable Annuity Unit for that subaccount 10 days
prior to the date the variable annuity payment is due. This amount may increase
or decrease from month to month.
If the net investment return of a subaccount for a payment period
is equal to the pro-rated portion of the 4% annual assumed investment rate, the
variable annuity payment attributable to that subaccount for that period will
equal the payment for the prior period. To the extent that such net investment
return exceeds an annualized rate of 4% for a payment period, the payment for
that period will be greater than the payment for the prior period and to the
extent that such return for a period falls short of an annualized rate of 4%,
the payment for that period will be less than the payment for the prior period.
TRANSFERS BETWEEN FIXED AND VARIABLE SUBACCOUNTS. After the Annuity
Starting Date the annuitant may exchange the value of a designated number of
Variable Annuity Units of a particular subaccount into other Variable Annuity
Units, the value of which would be such that the dollar amount of an annuity
payment made on the date of the exchange would be unaffected by the fact of the
exchange. No more than four (4) exchanges may be made within each account year.
Transfers may be made between subaccounts and from a subaccount to the
fixed account. No exchanges may be made from the fixed account to the variable
subaccounts. Transfers will be made using the Variable Annuity Unit values for
the Valuation Period during which any request is received by United of Omaha.
PAYOUT OPTIONS. The Policy provides six Payout Options which are described
below.
OPTION 1 -- PROCEEDS HELD ON DEPOSIT AT INTEREST. While the Proceeds
are held by United of Omaha, United of Omaha will annually:
(a) pay interest to the Payee; or
(b) add interest to the Proceeds.
OPTION 2 -- INCOME OF A SPECIFIED AMOUNT. The Proceeds will be paid in
monthly installments of a specified amount over at least a five year period
until the Proceeds, with interest, have been fully paid.
OPTION 3 -- INCOME FOR A SPECIFIED PERIOD. The Proceeds will be paid in
installments for the number of years chosen. The monthly incomes for each $1,000
of Proceeds, shown in the table set forth in the Policy, include interest.
United of Omaha will provide the income amounts for payments other than monthly
upon request.
OPTION 4 -- LIFETIME INCOME. The Proceeds will be paid as monthly
income for as long as the Annuitant lives. The following guarantees are
available:
GUARANTEED PERIOD - The monthly income will be paid for a minimum of
10 years and as long thereafter as the Annuitant lives; or
GUARANTEED AMOUNT - The monthly income will be paid until the sum of
all payments equals the Proceeds placed under this option and as
long thereafter as the Annuitant lives.
The monthly income will be the amount computed using either the Lifetime Monthly
Income Table set forth in the Policy (which is based on the 1983 Table "A"
mortality table and interest at 3%, adjusted to age last birthday) or, if more
favorable to the Annuitant, United of Omaha's then current lifetime monthly
income rates for payment of Proceeds. If a variable Payout Option is chosen, all
variable annuity payments, other than the first variable annuity payment, will
vary in amount according to the investment performance of the applicable
Subaccounts (see "DISTRIBUTIONS UNDER THE POLICY: Variable Annuity Payments.").
NOTE CAREFULLY. If no guarantee is elected, then IT WOULD BE POSSIBLE FOR
ONLY ONE ANNUITY PAYMENT TO BE MADE if the Annuitant(s) were to die before the
due date of the second annuity payment; only two Annuity Payments if the
Annuitant(s) were to die before the due date of the third annuity payment; and
so forth.
When the Annuitant dies, any remaining guaranteed Annuity Payments will be
paid to the Beneficiary. When the last Payee dies, United of Omaha will pay to
the estate of that Payee any remaining guaranteed Annuity Payments.
32
<PAGE>
OPTION 5 -- LUMP SUM. The Proceeds will be paid in one sum.
OPTION 6 -- ALTERNATIVE SCHEDULE. Upon request and if available, United
of Omaha will provide payments for other options, including joint and survivor
periods. Certain options may not be available in some states. If variable
Annuity Payments are being made under Option 2 or 6 and do not involve life
contingencies, then the Owner may surrender the Contract and receive the
commuted value of any unpaid Annuity Payments.
Additional information about any Payout Option may be obtained by contacting the
Service Office.
* * *
A portion or the entire amount of the Annuity Payments may be taxable as
ordinary income. If, at the time the Annuity Payments begin, the Policy Owner
has not provided United of Omaha with a written election not to have federal
income taxes withheld, United of Omaha must by law withhold such taxes from the
taxable portion of such annuity payments and remit that amount to the federal
government. Withholding is mandatory for certain Qualified Policies. (See
"CHARGES AND DEDUCTIONS: Certain Federal Income Tax Consequences.")
DEATH BENEFIT
DEATH OF OWNER PRIOR TO ANNUITY STARTING DATE. If any Owner or joint Owner
dies prior the Annuity Starting Date (and the Policy is in force), the Policy
will terminate, and a death benefit will be paid to the Beneficiary. The death
benefit will equal the largest of (i) the Accumulation Value (without deduction
of the Withdrawal Charge), on the later of the date on which Due Proof of Death
or an election of Payout Option is received by United of Omaha's Service Office
less any charge for applicable premium taxes; or (ii) the sum of Net Purchase
Payments, less partial withdrawals.
The death benefit is payable upon receipt of Due Proof of Death of the
first Owner to die, election of a Payout Option, and proof that such Owner died
prior to the commencement of Annuity Payments. The death benefit generally will
be paid within seven days, or as soon thereafter as United of Omaha has
sufficient information about the Beneficiary to make the payment. The
Beneficiary may receive the amount payable in a lump sum cash benefit, or,
subject to any limitation under any state or federal law, rule, or regulation,
under one of the Payout Options described above, unless a settlement agreement
is effective at the death of the Owner that prevents such election. The
Beneficiary must make such election within sixty days of the date United of
Omaha receives Due Proof of Death; otherwise a lump sum payment will be made.
If an Owner of the Policy is a corporation, trust or other nonindividual,
the primary Annuitant will be treated as an Owner of the Policy for purposes of
the death benefit. The "primary Annuitant" is that individual whose life affects
the timing or the amount of the payout under the Policy. A change in the primary
Annuitant will be treated as the death of an Owner.
If the Annuitant is an Owner or joint Owner, the death of the Annuitant
will be treated as the death of an Owner rather than of the Annuitant.
(If the Annuitant is not an Owner and the Annuitant dies before the Annuity
Starting Date, the Owner may name a new Annuitant if such Owner(s) is not a
corporation or other non-individual or if such Owner is the trustee of a Code
Sec. 401(a) retirement plan. If the Owner does not name a new Annuitant, the
Owner will become the Annuitant.)
Any applicable premium tax not previously deducted will be deducted from
the death benefit payable.
ENHANCED DEATH BENEFIT AMENDMENT. If this Amendment is attached to the
Policy and any Owner or Joint Owner dies prior to age 81, the Death Benefit will
be an Enhanced Death Benefit equal to greatest of: (1) the Accumulation Value as
of the end of the Valuation Period during which due proof of death and an
election of a payout option are received by us; (2) the greatest Anniversary
Value plus subsequent Purchase Payments and less any subsequent partial
withdrawals;7/ and (3) the sum of all Net Purchase Payments, less any partial
withdrawals, accumulated at a 4.5% annual rate of interest up to a maximum of
two times each Purchase Payment.
If any Owner or Joint Owner dies after attaining age 81, the Death Benefit
under the Amendment will equal the greatest of: (1) the Accumulation Value as of
the end of the Valuation Period during which due proof of death and an election
of a payout option are received by us; (2) the greatest Anniversary Value prior
to the last Policy Anniversary before the Owner attained age 81, plus any
subsequent Purchase Payments and less any subsequent partial withdrawals; and
(3) the sum of all net purchase payments paid prior to the last Policy
Anniversary before the Owner attained age 81, less any partial withdrawals
accumulated at a 4.5% annual rate of interest up to a maximum of two times each
purchase payment. If the death benefit payable equals (3), United of Omaha will
add to the death benefit amount, any purchase payments paid after the last
Policy Anniversary before the Owner attained age 81.
7/ The Anniversary Value equals the Accumulation Value on a Policy Anniversary
and any subsequent Purchase payments less partial withdrawals and undeducted
premium tax.
33
<PAGE>
There is a charge for the Enhanced Death Benefit which will never exceed an
annual rate of 0.35% of the Average Death Benefit Amount. (See CHARGES AND
DEDUCTIONS: Enhanced Death Benefit Charge.)
The Elective Death Benefit is only available to Owners age 80 and under,
and not available for non-person owners.
ACCIDENTAL DEATH BENEFIT. If any Owner or Joint Owner dies from bodily
injury sustained in a common carrier accident, United of Omaha will pay the
Standard Death Benefit or the Enhanced Death Benefit, as applicable, multiplied
by two, instead of the amount that would otherwise be payable.
For this benefit to be payable, bodily injury must be sustained by the
Owner while a passenger in a common carrier. Death must be independent of any
sickness or other causes and must occur within 90 days of the date of the
accident. United of Omaha will pay only the Standard Death Benefit or the
Enhanced Death Benefit, if applicable, if the Owner's death results from the
following: (a) suicide; (b) an act of declared or undeclared war; (c) an injury
received while intoxicated; (d) an injury received while the owner is under the
influence of a controlled substance, unless administered on the advice of a
physician; or (e) an injury received while committing a felony or engaged in an
illegal occupation. The Accidental Death Benefit may not be available in all
states.
DEATH OF OWNER ON OR AFTER ANNUITY STARTING DATE. If any Owner or joint
Owner dies on or after the Annuity Starting Date and before all the Proceeds
have been paid, any remaining Proceeds will be paid at least as rapidly as under
the Payout Option in effect at the time of the death.
BENEFICIARY. The Owner may change the named Beneficiary by sending Written
Notice to the Service Office unless the named Beneficiary is irrevocable. When
recorded and acknowledged by United of Omaha, the change will be effective as of
the date the Owner signed the request. The change will not apply to any payments
made or other action taken by United of Omaha before recording. If the named
Beneficiary is irrevocable, the Owner may change the named Beneficiary only by
joint written request from the Owner and the Beneficiary. If more than one named
Beneficiary is designated, and the Policy Owner fails to specify their
interests, they will share equally.
If there are joint Owners, the surviving joint Owner will be deemed the
Beneficiary, and the Beneficiary named in the Policy application or as
subsequently changed will be deemed the contingent Beneficiary. If both joint
Owners die simultaneously, the death benefit will be paid to the contingent
Beneficiary.
If the Beneficiary is the deceased Owner's surviving spouse, the spouse may
elect either to receive the death benefit, in which case the Policy will
terminate, or to continue the Policy in force with the spouse as Owner.
If the named Beneficiary does not survive the Owner, then the estate of the
Owner is the Beneficiary.
IRS REQUIRED DISTRIBUTION
Federal tax law requires that if a Policy Owner of a nonqualified Policy
dies before the Annuity Starting Date, then the entire value of the Policy must
generally be distributed within five years of the date of death of such Policy
Owner. Therefore, generally, any death benefit must be paid within five years
after the date of death. The five-year rule does not apply to that portion of
the Proceeds which (a) is payable to or for the benefit of an individual
Beneficiary; and (b) will be paid over the lifetime or the life expectancy of
that Beneficiary as long as payments begin not later than one year after the
date of the Owner's death. Special rules may apply to the spouse of the deceased
Owner. See "Federal Tax Matters" in the Statement of Additional Information for
a detailed description of these rules. Other required distribution rules apply
to Qualified Contracts. (See "CHARGES AND DEDUCTIONS: Certain Federal Income Tax
Consequences.") The Policy contains provisions designed to comply with these
requirements.
RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM
The Texas Educational Code permits participants in the Texas Optional
Retirement Program (ORP) to withdraw their interest in a variable annuity Policy
issued under the ORP only upon: (1) termination of employment in the Texas
public institutions of higher education; (2) retirement; (3) death or (4)
participant's attainment of age 70 1/2. Accordingly, a participant in the ORP
(or the participant's estate if the participant has died) will be required to
obtain a certificate of termination from the employer or a certificate of death
before the Policy can be redeemed.
CHARGES AND DEDUCTIONS
United of Omaha will make certain charges and deductions in connection with
the Policy in order to compensate it for incurring expenses in distributing the
Policy, bearing mortality and expense risks under the Policy, and administering
the Accounts and the Policies. Charges may also be made for premium taxes,
federal, state or local taxes (or the economic burden thereof), or for certain
transfers. Charges and expenses are also deducted from each Portfolio.
34
<PAGE>
WITHDRAWAL CHARGE
United of Omaha will incur expenses relating to the sale of Policies,
including commissions to registered representatives and other promotional
expenses. United of Omaha will apply a Withdrawal Charge, expressed as a
percentage of any Purchase Payment surrendered or withdrawn, in connection with
a full surrender or partial withdrawal, in order to partially cover distribution
expenses. The Withdrawal Charge may also be deducted from amounts applied to
provide Annuity Payments. The Withdrawal Charge Percentage will vary depending
upon the number of years that have elapsed since the date the Purchase Payment
was made. The amount of the Withdrawal Charge is determined by multiplying the
amount of each Purchase Payment withdrawn by the applicable Withdrawal Charge
Percentages. For purposes of determining the Withdrawal Charge, the oldest
Purchase Payment is considered to be withdrawn first; the next oldest Purchase
Payment is considered to be withdrawn next, and so on (this is a "first-in,
first-out" procedure), and all Purchase Payments are deemed to be withdrawn
before any earnings. The amount of the partial withdrawal requested plus any
Withdrawal Charge will be deducted from the Accumulation Value on the date an
Owner's Written Request is received at the Service Office. In the absence of
other instructions, partial withdrawals (including any charge) will be deducted
from the Subaccounts and the Fixed Account or the Systematic Transfer Account on
a pro-rata basis. No more than a pro-rata amount can be withdrawn from the Fixed
Account or the Systematic Transfer Account. The following is the table of
Withdrawal Charge Percentages:
Years Since Receipt of Purchase Payment 1 2 3 4 5 6 7 8+
Applicable Withdrawal Charge Percentage 7% 6% 5% 4% 3% 2% 1% 0%
United of Omaha anticipates that the Withdrawal Charge will not generate
sufficient funds to pay the cost of distributing the Policies. If this charge is
insufficient to cover the distribution expenses, the deficiency will be met from
United of Omaha's general funds, which will include amounts derived from the
charge for mortality and expense risks (described below).
Each Policy Year, the Owner can withdraw up to 15% of Accumulation Value at
the time of the first withdrawal each year without imposition of the Withdrawal
Charge. A Withdrawal Charge will also not be applied on the Annuity Starting
Date if the Accumulation Value is applied after the second Policy Anniversary to
provide lifetime Annuity Payments under Payout Option 4. (The Withdrawal Charge
will apply to Proceeds placed under Payout Options 1, 2, 3, 5, and 6.) No
Withdrawal Charge will be imposed as a result of any death benefit payment or,
under Qualified Plans, any refund of contributions paid in excess of the Owner's
deductible amounts. United of Omaha will not increase the withdrawal charge.
WAIVER OF WITHDRAWAL CHARGES
United of Omaha will waive the Withdrawal Charge upon partial withdrawals
and surrenders in the event the Owner becomes confined to a hospital or nursing
home, disabled, diagnosed with a terminal illness or unemployed. Those waivers
and any restrictions associated with such waivers are set forth below:
NURSING HOME WAIVER. The Withdrawal Charge will not be imposed as a result
of any withdrawal made pursuant to the Owner's confinement, upon the
recommendation of a licensed physician, to the following facilities for 30 or
more consecutive days: (a) a hospital licensed or recognized as a general
hospital by the state in which it is located; (b) a hospital recognized as a
general hospital by the Joint Commission on the Accreditation of Hospitals; (c)
a Medicare certified hospital; (d) a state licensed nursing home with a
registered nurse on duty 24 hours a day; and (e) a Medicare certified long term
care facility. This waiver only applies to partial withdrawals and surrenders
requested no later than 91 days of the last day of confinement to such facility.
Proof of confinement must be provided. The Nursing Home Waiver is not available
if any Owner is confined to a nursing home or hospital facility on the Date of
Issue.
United of Omaha will not accept any additional purchase payments under a
Policy once the Nursing Home Waiver has been elected. The Nursing Home Waiver
may not be available in all states.
DISABILITY WAIVER. The Withdrawal Charge will not be imposed upon any
withdrawal where the Owner is physically disabled. United of Omaha may require
proof of such disability, including written confirmation of receipt and approval
of any claim for Social Security Disability Benefits. Proof of continued
disability may be required through the date of any partial withdrawal or
surrender. United of Omaha reserves the right to have any Owner claiming such
disability examined by a licensed physician.
United of Omaha will not accept any additional purchase payments under a
Policy once the Disability Waiver has been elected. The Disability Waiver is not
available if any Owner is receiving Social Security Disability Benefits on the
Date of Issue or is age 65 or older. The Disability Waiver may not be available
in all states.
TERMINAL ILLNESS WAIVER. United of Omaha will waive the Withdrawal Charge
for any withdrawal where the Owner is diagnosed with a terminal illness. A
terminal illness is a medical condition that, with a reasonable degree of
medical certainty, will result in your death within 12 months or less. United of
Omaha may require proof of such illness including written confirmation from a
licensed physician. United of Omaha reserves the right to have an Owner
diagnosed with such illness examined by a licensed physician.
35
<PAGE>
United of Omaha will not accept any additional purchase payments under a
Policy once the Terminal Illness Waiver has been elected. The Terminal Illness
Waiver is not available if any Owner is diagnosed with a terminal illness prior
to or on the Date of Issue. The Terminal Illness Waiver may not be available in
all states.
UNEMPLOYMENT WAIVER. United of Omaha will waive the Withdrawal Charge for
any partial withdrawal or surrender in the event the Owner becomes unemployed.
The Unemployment Waiver is available upon submission of a determination letter
from a state Department of Labor indicating the Owner received unemployment
benefits for at least 60 consecutive days prior to the election of such waiver.
The Unemployment Waiver may be exercised only once and is not available if any
Owner or Annuitant is receiving unemployment benefits on the Date of Issue. The
Unemployment Waiver may not be available in all states.
TRANSPLANT WAIVER. United of Omaha will waive surrender charges if the
Owner undergoes transplant surgery as an organ donor or recipient for the
following body organs: heart, liver, lung, kidney, pancreas; or as a recipient
of a bone marrow transplant. Within 91 days of surgery, the Owner must submit a
letter from a licensed physician (who is not the Owner of this policy) stating
that the Owner underwent transplant surgery for any of these organs. United of
Omaha reserves the right to have the Owner examined by a physician of its choice
and at its expense.
This waiver may be exercised only once per transplant surgery.
RESIDENCE DAMAGE WAIVER. United of Omaha will waive surrender charges if
the Owner's primary residence suffers physical damage in the amount of $50,000
or more. To claim this waiver, submit to United of Omaha a certified copy of a
licensed appraiser's report stating the amount of the damage. This certified
copy must be submitted with 91 days of the date of the appraiser's report.
United of Omaha reserves the right to obtain a second opinion by having the
affected residence inspected by a licensed appraiser of its choice and at its
expense, and to rely upon its appraiser's opinion. This waiver may be exercised
only once per occurrence.
DEATH OF SPOUSE OR MINOR DEPENDENT WAIVER. United of Omaha will waive
surrender charges for withdrawals of the following percentage of Accumulation
Value made within six months of the Owner's spouse's or minor dependent(s)'
death: death of spouse, 50%; death of minor dependent(s), 25%. Proof of death
must be submitted to United of Omaha. This waiver may be exercised once for a
spouse and once for each minor dependent, subject to no more than 50% of the
Accumulation Value being withdrawn pursuant to this waiver each year. Subsequent
withdrawals, or withdrawals above the waiver limit, are subject to the
Withdrawal Charge.
MORTALITY AND EXPENSE RISK CHARGE
United of Omaha imposes a daily charge as compensation for bearing certain
mortality and expense risks in connection with the Policies. This charge is
equal to an annual rate of 1.00% (.0027535% daily) of the value of the net
assets in the Variable Account and it will not increase. The Mortality and
Expense Risk Charge is reflected in the accumulation unit values for each
Subaccount.
Accumulation Values and Annuity Payments are not affected by changes in
actual mortality experience or by actual expenses incurred by United of Omaha.
The mortality risks assumed by United of Omaha arise from its contractual
obligations to make Annuity Payments (determined in accordance with the Annuity
tables and other provisions contained in the Policy) and to pay death benefits
prior to the Annuity Starting Date. Thus, Owners are assured that neither an
Annuitant's own longevity nor an unanticipated improvement in general life
expectancy will adversely affect the periodic Annuity Payments that the Payee
will receive under the Policy.
The expense risk assumed by United of Omaha is the risk that United of
Omaha's actual expenses in administering the Policy will exceed the amount
recovered through the Administrative Charges.
If the Mortality and Expense Risk Charge is insufficient to cover United of
Omaha's actual costs, United of Omaha will bear the loss; conversely, if the
charge is more than sufficient to cover costs, the excess will be profit to
United of Omaha. United of Omaha expects a profit from this charge. To the
extent that the proceeds of the Withdrawal Charge are insufficient to cover the
actual cost of Policy distribution, the deficiency will be met from United of
Omaha's general corporate assets, which may include amounts, if any, derived
from the Mortality and Expense Risk Charge.
36
<PAGE>
ADMINISTRATIVE CHARGES
In order to cover the costs of administering the Policies, United of Omaha
deducts an annual Policy Fee from the Accumulation Value and also deducts a
daily Administrative Expense Charge from the assets of each Subaccount.
The annual Policy Fee is deducted from the Accumulation Value of each
Policy on the last Valuation Date of each Policy Year prior to the Annuity
Starting Date (and upon a complete surrender). This annual Policy Fee is $30,
and it will not be increased. The annual Policy Fee will be deducted from each
Subaccount of the Variable Account in the same proportion that the Accumulation
Value in each such Subaccount bears to the total Accumulation Value in the
Variable Account. The portion of the annual Policy Fee deducted from the
Subaccounts will be deducted by canceling Accumulation Units. This fee is waived
if the Accumulation Value exceeds $50,000 on the last Valuation Date of the
applicable Policy Year. The fee is also waived for sales of the Policy to
employees of United of Omaha or its affiliated companies.
United of Omaha also deducts a daily Administrative Expense Charge from the
assets of each Subaccount of the Variable Account. This charge is equal to an
annual rate of .20% (.0005485% daily) of the net assets of each Subaccount of
the Variable Account. The Administrative Expense Charge will not be increased in
the future.
ENHANCED DEATH BENEFIT CHARGE
There is a charge for expenses related to the Enhanced Death Benefit
available under the terms of the Elective Death Benefit Amendment and to
compensate it for the increased risks associated with providing the Enhanced
Death Benefit. If this Amendment is elected on or after May 1, 1998, United of
Omaha deducts a daily charge from the assets of the Variable Account. If this
Amendment was elected prior to May 1, 1998, United of Omaha deducts this charge
through the cancellation of accumulation units at each Policy Anniversary and at
surrender. United of Omaha guarantees that this charge will never exceed an
annual rate of 0.35% of the Average Death Benefit Amount.
TRANSFER FEE
There is no charge for transfers from the Fixed Account or Systematic
Transfer Account or for the first 12 transfers from Subaccounts of the Variable
Account in each Policy Year. However, there is a $10 fee for the thirteenth and
each subsequent request made by the Owner to transfer Accumulation Value from a
Subaccount during a single Policy Year. Any applicable Transfer Fee is deducted
from the amount transferred. All transfer requests made simultaneously will be
treated as a single request. No transfer fee will be imposed for any transfer
which is not at the Owner's request. The Transfer Fee will not increase.
PREMIUM TAXES
Various states and other governmental entities levy a premium tax,
currently ranging up to 3.5%, on annuity contracts issued by insurance
companies. Premium tax rates are subject to change from time to time by
legislative and other governmental action. In addition, other governmental units
within a state may levy such taxes.
The timing of tax levies varies from one taxing authority to another. If
premium taxes are applicable to a Policy, a charge for such taxes will be
deducted (except in Oregon), depending on when such taxes are paid to the taxing
authority, either (a) from Purchase Payments as they are received, (b) upon
payment in respect of a Surrender of the Policy, (c) upon death of any Owner, or
(d) upon application of the Proceeds to a Payout Option.
FEDERAL, STATE AND LOCAL TAXES
No charges are currently made for federal, state, or local taxes other than
premium taxes. However, United of Omaha reserves the right to deduct amounts
from the Subaccounts for such taxes or any other economic burden resulting from
imposition of the tax laws that United of Omaha determines to be properly
attributable to the Variable Account in the future.
OTHER EXPENSES INCLUDING INVESTMENT ADVISORY FEES
Each Portfolio of the Series Funds is responsible for all of its expenses.
The net assets of each Portfolio of the Series Funds will reflect deductions in
connection with the investment advisory fee and other expenses.
For more information concerning the investment advisory fee and other
charges against the Portfolios, see the Summary of this Prospectus and the
prospectuses for the Series Funds, current copies of which accompany this
Prospectus.
37
<PAGE>
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
THE FOLLOWING DISCUSSION IS A GENERAL DESCRIPTION OF FEDERAL TAX
CONSIDERATIONS RELATING TO THE POLICY AND IS NOT INTENDED AS TAX ADVICE. THIS
DISCUSSION IS NOT INTENDED TO ADDRESS THE TAX CONSEQUENCES RESULTING FROM ALL OF
THE SITUATIONS IN WHICH A PERSON MAY BE ENTITLED TO OR MAY RECEIVE A
DISTRIBUTION UNDER THE POLICY. ANY PERSON CONCERNED ABOUT THESE TAX IMPLICATIONS
SHOULD CONSULT A COMPETENT TAX ADVISOR BEFORE INITIATING ANY TRANSACTION. THIS
DISCUSSION IS BASED UPON UNITED OF OMAHA'S UNDERSTANDING OF THE PRESENT FEDERAL
INCOME TAX LAWS AS THEY ARE CURRENTLY INTERPRETED BY THE INTERNAL REVENUE
SERVICE. NO REPRESENTATION IS MADE AS TO THE LIKELIHOOD OF THE CONTINUATION OF
THE PRESENT FEDERAL INCOME TAX LAWS OR OF THE CURRENT INTERPRETATION BY THE
INTERNAL REVENUE SERVICE. MOREOVER, THIS SUMMARY DISCUSSES ONLY CERTAIN FEDERAL
INCOME TAX CONSEQUENCES TO "UNITED STATES PERSONS," AND NO ATTEMPT HAS BEEN MADE
TO CONSIDER ANY APPLICABLE STATE OR OTHER TAX LAWS. UNITED STATES PERSONS MEANS
CITIZENS OR RESIDENTS OF THE UNITED STATES, DOMESTIC CORPORATIONS, DOMESTIC
PARTNERSHIPS AND TRUSTS OR ESTATES THAT ARE SUBJECT TO UNITED STATES FEDERAL
INCOME TAX REGARDLESS OF THE SOURCE OF THEIR INCOME.
The Policy may be purchased on a non-tax qualified basis ("Nonqualified
Policy") or purchased and used in connection with plans qualifying for favorable
tax treatment ("Qualified Policy"). Qualified Policies are designed for use by
individuals whose Purchase Payments are comprised solely of proceeds from and/or
contributions under retirement plans which are intended to qualify as plans
entitled to special income tax treatment under Sections 401(a), 403(b), or 408A
of the Internal Revenue Code of 1986, as amended (the "Code"). The ultimate
effect of Federal income taxes on the amounts held under a Policy, on Annuity
Payments, and on the economic benefit to the Policy Owner, the Annuitant, or the
Beneficiary depends, among other things, on the type of retirement plan, on the
tax and employment status of the individual concerned and on the employer's tax
status. In addition, certain requirements must be satisfied in purchasing a
Qualified Policy with proceeds from a tax qualified plan and receiving
distributions from a Qualified Policy in order to continue receiving favorable
tax treatment. Therefore, purchasers of Qualified Policies should seek competent
legal and tax advice regarding the suitability of the Policy for their
situation, the applicable requirements, and the tax treatment of the rights and
benefits of the Policy. The following discussion assumes that a Qualified Policy
is purchased with proceeds from and/or contributions under retirement plans that
qualify for the intended special Federal income tax treatment.
TAX STATUS OF THE POLICY
The following discussion is based on the assumption that the Policy
qualifies as an annuity contract for federal income tax purposes. The Statement
of Additional Information discusses the requirements for qualifying as an
annuity.
TAXATION OF ANNUITIES
IN GENERAL. Section 72 of the Code governs taxation of annuities in
general. United of Omaha believes that the Policy Owner who is a natural person
generally is not taxed on increases (if any) in the value of a Policy until
distribution occurs by withdrawing all or part of the Accumulation Value (e.g.,
partial withdrawals, full surrenders or Annuity Payments under the Payout Option
elected). For this purpose, the assignment, pledge, or agreement to assign or
pledge any portion of the Accumulation Value (and in the case of a Qualified
Policy, any portion of an interest in the qualified plan) generally will be
treated as a distribution. The taxable portion of a distribution (in the form of
a single sum payment or an annuity) is taxable as ordinary income.
The owner of any annuity contract who is not a natural person generally
must include in income any increase in the excess of the Policy's Accumulation
Value over the "investment in the contract" (discussed below) during the taxable
year. There are some exceptions to this rule, and a prospective Policy Owner
that is not a natural person may wish to discuss these with a competent tax
adviser.
THE FOLLOWING DISCUSSION GENERALLY APPLIES TO A POLICY OWNED BY A NATURAL
PERSON.
SURRENDERS AND PARTIAL WITHDRAWALS. In the case of a surrender or partial
withdrawal (including systematic withdrawals) under a Qualified Policy, under
Section 72(e) of the Code a ratable portion of the amount received is taxable,
generally based on the ratio of the "investment in the contract" to the
individual's total accrued benefit for balance under the retirement plan. The
"investment in the contract" generally equals the amount of any purchase
payments paid by or on behalf of any individual. For a Policy issued in
connection with qualified plans, the "investment in the contract" can be zero.
Special tax rules may be available for certain distributions from a Qualified
Policy.
With respect to Nonqualified Policies, partial withdrawals (including
systematic withdrawals) are generally treated as taxable income to the extent
that the Accumulation Value immediately before the partial withdrawal exceeds
the "investment in the contract" at that time.
Full surrenders are treated as taxable income to the extent that the amount
received exceeds the "investment in the contract."
38
<PAGE>
ANNUITY PAYMENTS. Although tax consequences may vary depending on the
Payout Option elected under the Policy, in general, only the portion of the
payout that represents the amount by which the Accumulation Value exceeds the
"investment in the contract" will be taxed; after the "investment in the
contract" is recovered, the full amount of any additional payments is taxable.
In general there is no tax on the portion of each Annuity Payment which
represents the same ratio that the "investment in the contract" bears to the
total expected value of the Annuity Payments for the term of the payments;
however, the remainder of each Annuity Payment is taxable. Once the "investment
in the contract" has been fully recovered, the full amount of any additional
Annuity Payments is taxable. If Annuity Payments cease by reason of the death of
the Annuitant, the excess (if any) of the "investment in the contract" as of the
Annuity Starting Date over the aggregate amount of Annuity Payments received on
or after the Annuity Starting Date that was excluded from gross income is
allowable as a deduction for the last taxable year of the Annuitant.
PENALTY TAX. In the case of a distribution pursuant to a Nonqualified
Policy, there may be imposed a Federal penalty tax equal to 10% of the amount
treated as taxable income. In general, however, there is no penalty tax on
distributions: (a) made on or after the date on which the Policy Owner attains
age 59 1/2; (b) made as a result of death or disability of a Policy Owner; (c)
received in substantially equal periodic payments as a life annuity or a joint
and survivor annuity for the lives or life expectancies of the Policy Owner and
a "designated beneficiary"; (d) from a qualified plan; (e) allocable to
investment in the Policy before August 14, 1982; (f) under a qualified funding
asset (as defined in Code section 130(d)); (g) under an immediate annuity (as
defined in Code Section 72(u)(4)); or (h) which are purchased by an employer on
termination of certain types of qualified plans and which are held by the
employer until the employee separates from service. Other tax penalties may
apply to certain distributions under a Qualified Policy.
DEATH BENEFIT PROCEEDS. Amounts may be distributed from the Account because
of the death of a Policy Owner. Generally, such amounts are includable in the
income of the recipient as follows: (1) if distributed in a lump sum, they are
taxed in the same manner as a full surrender as described above; or (2) if
distributed under an Annuity Payout Option, they are taxed in the same manner as
Annuity Payments, as described above.
TRANSFERS, ASSIGNMENTS, OR EXCHANGES OF THE POLICY. A transfer of ownership
of a Policy, the designation of an Annuitant or Beneficiary who is not also the
Policy Owner, the selection of certain annuity starting dates, or the exchange
of a Policy may result in certain tax consequences to the Policy Owner that are
not discussed herein. Policy Owners contemplating any such transfer, assignment,
or exchange of a Policy should contact a competent tax adviser with respect to
the potential tax effects of such a transaction.
MULTIPLE POLICIES. All nonqualified deferred annuity contracts that are
issued by United of Omaha (or its affiliates) to the same Policy Owner during
any calendar year are treated as one annuity contract for purposes of
determining the amount includable in gross income under section 72(e) of the
Code. In addition, the Treasury Department has specific authority to issue
regulations that prevent the avoidance of section 72(e) through the serial
purchase of annuity contracts or otherwise. Congress has also indicated that the
Treasury Department may have authority to treat the combination purchase of an
immediate annuity contract and separate deferred annuity contract as a single
annuity contract under its general authority to prescribe rules as may be
necessary to enforce the income tax laws. Any Policy Owner or prospective Policy
Owner contemplating the purchase of more than one annuity in a calendar year
should consult a tax advisor.
WITHHOLDING. Pension and annuity distributions generally are subject to
withholding for the recipient's federal income tax liability at rates that vary
according to the type of distribution and the recipient's tax status.
Recipients, however, generally are provided the opportunity to elect not to have
tax withheld from distributions. Effective January 1, 1994, distributions from
certain qualified plans are generally subject to mandatory withholding. Certain
states also require withholding of state income taxes whenever federal income
taxes are withheld.
POSSIBLE CHANGES IN TAXATION. Legislation has been proposed in 1998 that, if
enacted, would adversely affect the federal taxation of certain insurance and
annuity contracts. For example, one proposal would tax transfers among
investment options and tax exchanges involving variable insurance contracts. A
second proposal would reduce the "investment in the contract" under Cash Value
Life insurance and certain annuity contracts by certain amounts, thereby
increasing the amount of income for purposes of computing gain. Although the
likelihood of there being any changes is uncertain, there is always the
possibility that the tax treatment of the Policies could change by legislation
or other means. Moreover, it is also possible that any change could be
retroactive (that is, effective prior to the date of the change). You should
consult a tax advisor with respect to legislative developments and their effect
on the Policy.
OTHER TAX CONSEQUENCES. As noted above, the foregoing discussion of the
Federal income tax consequences under the Policy is not exhaustive and special
rules are provided with respect to other tax situations not discussed in this
Prospectus. Further, the Federal income tax consequences discussed herein
reflect United of Omaha's understanding of current law and the law may change.
Federal estate and state and local estate, inheritance, and other tax
consequences of ownership or receipt of distributions under the Policy depend on
the individual circumstances of each Policy Owner or recipient of the
distribution. A competent tax adviser should be consulted for further
information.
39
<PAGE>
QUALIFIED PLANS
The Policy may be used with certain qualified plans as described in the
following paragraphs. The tax rules applicable to Policy Owners in qualified
plans, including restrictions on contributions and benefits, taxation of
distributions and any tax penalties, vary according to the type of plan and the
terms and condition of the plan itself. Various tax penalties may apply to
contributions in excess of specified limits, distribution that do not satisfy
specified requirements and certain other transactions with respect to qualified
plans. Therefore, no attempt is made to provide more than general information
about the use of the Policy with qualified plans. Policy Owners, Annuitants and
Beneficiaries are cautioned that the rights of any person to any benefits under
qualified plans may be subject to the terms and conditions of the plans
themselves, regardless of the provisions of the Policy. Some retirement plans
are subject to distribution and other requirements that are not incorporated in
United of Omaha's Policy provisions or administration procedures. Policy Owners,
participants and beneficiaries are responsible for determining that
contributions, distributions and other transactions with respect to the Policy
comply with applicable law. Following are brief descriptions of the
circumstances in which United of Omaha will issue the Policy in connection with
qualified plans. When issued in connection with a qualified plan, the Policy
will be amended to conform with certain requirements of the Code, and this
amendment must be approved by the applicable State Insurance Department before
the Policy is available for use with a qualified plan. The Policy may not be
available in all States for all types of qualified plans.
For qualified plans under Section 401(a) and 403(b), the Code requires that
distributions generally must commence no later than the later of April 1 of the
calendar year following the calendar year in which the Policy Owner (or plan
participant) (i) reaches age 70 1/2 or (ii) retires, and must be made in a
specified form or manner. If the plan participant is a "5 percent owner" (as
defined in the Code), distributions generally must begin no later than April 1
of the calendar year following the calendar year in which the Policy Owner (or
plan participant) reaches age 70 1/2. For IRAs described in Section 408,
distributions generally must commence no later than the later of April 1 of the
calendar year following the calendar year in which the Policy Owner (or plan
participant) reaches age 70 1/2. Roth IRAs under Section 408A do not require
distributions at any time prior to the Policy Owner's death.
QUALIFIED PENSION OR PROFIT SHARING PLANS. Section 401(a) of the Code
permits employers to establish retirement plans for employees and also permits
self-employed individuals to establish retirement plans for themselves and their
employees. Subject to the Policy's purchase payment limits, the Policy may be
issued to the trustee of such plan if the trustee is the Owner and Beneficiary
of the Policy, if the trustee or the employer selects the Policy as a plan
investment, and if the trustee arranges for plan services from a party other
than United of Omaha (unless an officer of United of Omaha agrees in writing to
perform services before the Policy is issued). If the participant directs
investments under the plan, an individual Policy must be issued for each
participant. Purchasers of a Policy for use with such plans should seek
competent advice regarding the suitability of the Policy to their specific
needs. Adverse tax or other legal consequences to the plan, the participant or
to both may result if the Policy is assigned or transferred to any individual as
a means to provide benefit payments, unless the plan establishes compliance with
all legal requirements applicable to such benefits prior to transfer of the
Policy. The Policy includes an Enhanced Death Benefit that in some cases may
exceed the greater of the Purchase Payments or the Accumulation Value. The
Enhanced Death Benefit could be characterized as an incidental benefit, the
amount of which is limited in any pension or profit-sharing plan. Because the
Enhanced Death Benefit may exceed this limitation, employers using the Policy in
connection with such plans should consult their tax adviser.
INDIVIDUAL RETIREMENT ANNUITIES. Section 408 of the Code permits eligible
individuals to contribute to an individual retirement program known as an
Individual Retirement Annuity ("IRA"). Also, distribution from certain other
types of qualified plans may be "rolled over" on a tax-deferred basis to an IRA.
The Taxpayer Relief Act of 1997 added several features to the IRA permitting
withdrawals prior to age 59 1/2 without federal tax penalty for such uses as
purchase of a first residence and education. This Act also created a new kind of
IRA, known as a "Roth IRA." Unlike the traditional IRA, deposits in a Roth IRA
are not deductible, but if certain specified conditions are met, distributions
from Roth IRA's can be tax free. Assets in a Roth IRA accumulate on a
tax-deferred, and potentially tax-free, basis. Subject to the Policy's purchase
payment limits, the Policy may be issued as an IRA or Roth IRA. Purchasers of a
Policy for use as an IRA or Roth IRA will be provided with supplemental
information required by the Internal Revenue Service. Such purchasers will have
the right to revoke their purchase within seven days of the earlier of the
establishment of the IRA/Roth IRA or their purchase. Purchasers should seek
competent advice as to the suitability of the Policy to their specific needs. An
IRA or Roth IRA cannot be assigned.
SIMPLE RETIREMENT ACCOUNTS. Certain small employers may establish Simple
Retirement Accounts as provided by Section 408(p) of the Code, under which
employees may elect to defer up to $6,000 (as increased for cost of living
adjustments) as a percentage of compensation. The sponsoring employer is
required to make a matching contribution on behalf of contributing employees.
Distributions from a Simple Retirement Account are subject to the same
restrictions that apply to IRA distributions and are taxed as ordinary income.
Subject to certain exceptions, premature distributions prior to age 59 1/2 are
subject to a 10% penalty tax, which is increased to 25% if the distribution
occurs within the first two years after the commencement of the employee's
participation in the plan. The failure of the Simple Retirement Account to meet
Code requirements may result in adverse tax consequences.
40
<PAGE>
TAX SHELTERED ANNUITIES. Section 403(b) of the Code permits public school
employees and employees of certain types of religious, charitable, educational
and scientific organizations specified in Section 501(c)(3) of the Code to
direct the purchase of annuity contracts and, subject to certain limitations,
exclude the amount of purchase payments from gross income for income tax
purposes. This Section 403(b) annuity contract is commonly referred to as a "Tax
Sheltered Annuity". Subject to the Policy's purchase payment limits, the Policy
may be issued as a Tax Sheltered Annuity if each purchase payment is a direct
transfer from another Tax Sheltered Annuity Policy. The Policy may not be issued
to accept direct purchase payments from an employer's payroll office. In
addition, the Policy prohibits withdrawals or distributions except upon the
Annuitant's death, attainment of age 59 1/2, separation from service or
disability; and the Policy does not provide for hardship withdrawals. Purchasers
of a Policy for use as a Tax Sheltered Annuity should seek competent advice as
to the suitability of the Policy to their specific needs. A Tax Sheltered
Annuity cannot be assigned. The Policy includes an Enhanced Death Benefit that
in some cases may exceed the greater of the Purchase Payments or the
Accumulation Value. The Enhanced Death Benefit could be characterized as an
incidental benefit, the amount of which is limited in any tax-sheltered annuity
under section 403(b). Because the Enhanced Death Benefit may exceed this
limitation, employers using the Policy in connection with such plans should
consult their tax adviser.
DISTRIBUTOR OF THE POLICIES
Mutual of Omaha Investor Services, Inc. ("MOIS"), Mutual of Omaha Plaza,
Omaha Nebraska 68175, is the principal underwriter of the Policies. Like United
of Omaha, MOIS is a 100% owned subsidiary of Mutual of Omaha Insurance Company.
MOIS has entered or will enter into one or more contracts with various
broker-dealers for the distribution of the Policies. MOIS is registered with the
Securities and Exchange Commission as a broker-dealer and is a member of the
National Association of Securities Dealers, Inc. Commissions paid to a
broker-dealer will be up to 7 1/2% of Purchase Payments.
VOTING RIGHTS
To the extent required by law, United of Omaha will vote Series Fund shares
held by the Variable Account at regular and special shareholder meetings of the
Series Funds in accordance with instructions received from persons having voting
interests in the portfolios. If, however, the 1940 Act or any regulation
thereunder should be amended or if the present interpretation thereof should be
amended or if the present interpretation thereof should change, and as a result
United of Omaha determines that it is permitted to vote Series Fund shares in
its own right, it may elect to do so. The Series Funds may not hold routine
annual Shareholder meetings.
The Policy Owner holds the voting interest in the selected Portfolios. The
number of votes that an Owner has the right to instruct will be calculated
separately for each Subaccount. The number of votes that an Owner has the right
to instruct for a particular Subaccount will be determined by dividing his or
her Accumulation Value in the Subaccount by the net asset value per share of the
corresponding Portfolio in which the Subaccount invests. Fractional shares will
be counted. Each Owner having a voting interest in a Subaccount will receive
proxy material, reports, and other materials relating to the appropriate
Portfolio.
PREPARING FOR YEAR 2000
Like all financial services providers, United of Omaha utilizes systems
that may be affected by Year 2000 transition issues and relies upon service
providers, including investment managers, whose own systems may also be
affected. United of Omaha has developed, and is in the process of implementing,
a Year 2000 transition plan, and is confirming that its service providers are
also so engaged. The resources that are being devoted to this effort are
substantial. It is difficult to predict with precision whether the amount of
resources ultimately devoted, or the outcome of these efforts, will have any
negative impact on United of Omaha. However, as of the date of this prospectus,
it is not anticipated that Policy Owners will experience negative effects on
their investment, or on the services provided in connection therewith, as a
result of Year 20000 transition implementation.
LEGAL PROCEEDINGS
There are no legal proceedings to which the Variable Account is a party or
to which the assets of the Variable Account are subject. United of Omaha is not
involved in any litigation that is of material importance in relation to its
total assets or that relates to the Variable Account.
41
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
A Statement of Additional Information is available (at no cost) which
contains more details concerning the subjects discussed in this Prospectus. The
following is the Table of Contents for that Statement:
TABLE OF CONTENTS
Page
The Policy-General Provisions............................................. 2
Owner and Joint Owner................................................ 2
Death of Annuitant................................................... 2
Entire Contract..................................................... 2
Deferment of Payment and Transfers................................... 2
Incontestability .................................................... 2
Misstatement of Age or Sex........................................... 2
Nonparticipating..................................................... 3
Assignment ....................................................... 3
Evidence of Age or Survival.......................................... 3
Federal Tax Matters....................................................... 3
Tax Status of the Policy............................................. 3
Taxation of United of Omaha.......................................... 4
State Regulation of United of Omaha ...................................... 4
Administration ....................................................... 5
Records and Reports ...................................................... 5
Distribution of the Policies ............................................. 5
Custody of Assets ....................................................... 5
Historical Performance Data............................................... 5
Money Market Yields ................................................. 6
Other Subaccount Yields ............................................. 6
Total Returns ....................................................... 7
Other Performance Data............................................... 7
Legal Matters ....................................................... 10
Other Information ....................................................... 10
Financial Statements...................................................... 10
42
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
THE ULTRANNUITY SERIES V VARIABLE ANNUITY
Issued through: UNITED OF OMAHA SEPARATE ACCOUNT C
Offered by: UNITED OF OMAHA LIFE INSURANCE COMPANY
Mutual of Omaha Plaza
Omaha, Nebraska 68175
This Statement of Additional information expands upon subjects discussed in
the current Prospectus for the Ultrannuity Series V Variable Annuity Policy (the
"Policy") offered by United of Omaha Life Insurance Company. You may obtain a
copy of the Prospectus dated May 1, 1998 by calling 1-800-238-9354 or by writing
to the Service Office: United of Omaha Variable Product Service, P.O. Box 8430,
Omaha, Nebraska 68108-0430. Terms used in the current Prospectus for the Policy
are incorporated in this Statement.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND
SHOULD BE READ ONLY IN CONJUNCTION WITH THE PROSPECTUSES
FOR THE POLICY AND THE SERIES FUNDS
Dated: May 1, 1998
TABLE OF CONTENTS
Page
The Policy-General Provisions .............................................2
Owner and Joint Owner.................................................2
Death of Annuitant....................................................2
Entire Contract ...........................................................2
Deferment of Payment and Transfers....................................2
Incontestability .....................................................2
Misstatement of Age or Sex............................................2
Nonparticipating......................................................3
Assignment............................................................3
Evidence of Age or Survival...........................................3
Federal Tax Matters .......................................................3
Tax Status of the Policy..............................................3
Taxation of United of Omaha...........................................4
State Regulation of United of Omaha........................................4
Administration ............................................................5
Records and Reports........................................................5
Distribution of the Policies ..............................................5
Custody of Assets..........................................................5
Historical Performance Data ...............................................5
Money Market Yields...................................................6
Other Subaccount Yields...............................................6
Total Returns.........................................................7
Other Performance Data................................................7
Legal Matters..............................................................10
Other Information..........................................................10
Financial Statements ......................................................10
(Numbers in parentheses indicate corresponding sections of the Prospectus).
<PAGE>
In order to supplement the description in the Prospectus, the following
provides additional information about United of Omaha and the Policy which may
be of interest to an Owner.
THE POLICY - GENERAL PROVISIONS
OWNER AND JOINT OWNER
While the Owner is alive, only the Owner may exercise the rights under the
Policy. Ownership may be changed as described below under "Assignment." If there
are joint Owners, the signatures of both Owners are needed to exercise rights
under the Policy. If the Annuitant is other than the Owner, the Annuitant has no
rights under the Policy.
DEATH OF ANNUITANT
If the Annuitant is an Owner or joint Owner, the death of the Annuitant
will be treated as the death of the Owner rather than of the Annuitant.
If the Annuitant is not an Owner and the Annuitant dies before the Annuity
Starting Date, the Owner may name a new Annuitant if such Owner(s) is not a
corporation or other non-individual. If the Owner does not name a new Annuitant,
the Owner will become the Annuitant.
ENTIRE CONTRACT
The entire contract is the Policy, data page, any riders and the signed
application, a copy of which will be attached to the Policy. All statements made
in the application will be deemed representations and not warranties. No
statement, unless it is in the application, will be used by United of Omaha to
contest the Policy or deny a claim.
Any change of the Policy and any riders requires the consent of the
president, vice president, assistant vice president, the secretary or assistant
secretary of United of Omaha. No agent or Registered Representative has
authority to change or waive any provision of the Policy.
United of Omaha reserves the right to amend the Policies to meet the
requirements of, or take advantage of, the Internal Revenue Code, regulations or
published rulings. A Policy Owner can refuse such a change by giving Written
Notice, but a refusal may result in adverse tax consequences.
DEFERMENT OF PAYMENT AND TRANSFERS
United of Omaha will usually pay any amounts payable from the Variable
Account as a result of a partial withdrawal or cash surrender within seven days
after receiving written request at the Service Office in a form satisfactory to
United of Omaha. United of Omaha can postpone such payments or any transfers of
amounts between Subaccounts or into the Fixed Account if:
(a) the New York Stock Exchange is closed for other than customary
weekend and holiday closings;
(b) trading on the New York Stock Exchange is restricted;
(c) an emergency exists as determined by the Securities Exchange
Commission, as a result of which it is not reasonably practical to
dispose of securities, or not reasonably practical to determine the
value of the net assets of the Variable Account; or
(d) the Securities Exchange Commission permits delay for the protection
of security holders. The applicable rules of the Securities Exchange Commission
will govern as to whether the conditions in (c) or (d) exist.
United of Omaha may defer transfers, payment of partial withdrawals or a
surrender from the Fixed Account for up to six months from the date written
request is received at the Service Office.
INCONTESTABILITY
United of Omaha will not contest the validity of the Policy after the
Date of Issue.
MISSTATEMENT OF AGE OR SEX
United of Omaha may require proof of the age of the Annuitant before
making any life annuity payment. If the age or sex of the Annuitant has been
misstated, the Annuity Starting Date and Annuity Payments will be determined
using the correct age and sex. If misstatement of age or sex results in Annuity
Payments that are too large, the overpayments will be deducted from future
Annuity Payments. If United of Omaha has made payments that are too small, the
underpayments will be added to the next payment. Adjustments for overpayments or
underpayments will include 6% interest.
2
<PAGE>
NONPARTICIPATING
No dividends will be paid. Neither the Owner nor the Beneficiary will
have the right to share in United of Omaha's surplus earnings or profits.
ASSIGNMENT
The Owner may change the ownership of the Policy or pledge it as
collateral by assigning it. No assignment will be binding on United of Omaha
until United of Omaha records and acknowledges it. The rights of any Payee will
be subject to a collateral assignment.
If the named Beneficiary is irrevocable, a change of ownership or a
collateral assignment may be made only by joint written request from the Owner
and the named Beneficiary. On the Annuity Starting Date, the Owner may select
another Payee, but the Owner retains all rights of ownership unless the Owner
signs an absolute assignment.
EVIDENCE OF AGE OR SURVIVAL
United of Omaha reserves the right to require proof of the age or
survival of any Owner, Annuitant or Payee. No payment will be made until United
of Omaha receives such proof.
VARIABLE ANNUITY UNITS.
All variable annuity payments other than the first are determined by
means of Variable Annuity Units credited to the Policy with respect to the
particular Payee. The number of Variable Annuity Units for each applicable
subaccount is the amount of the first annuity payment attributable to that
subaccount divided by the Annuity Unit Value for that subaccount as of the
Annuity Starting Date. The number of Variable Annuity Units of each particular
subaccount credited with respect to the Payee or Annuitant then remains fixed
unless a transfer of Variable Annuity Units is made as described below. The
number of Variable Annuity Units will not change as a result of investment
experience.
For any Valuation Period, the value of a Variable Annuity Unit of
a particular subaccount is the Variable Annuity Unit value during the last
Valuation Period for that particular Subaccount, multiplied by the Net
Investment Factor for that subaccount for the current Valuation Period. The
value of a subaccount may increase or decrease from one Valuation Period to the
next.
The Net Investment Factor for any subaccount for any Valuation
Period is determined by dividing (a) by (b) and then subtracting (c) from the
result where:
(a) is the net result of:
(1)the net asset value of a Portfolio share held in the subaccount
determined as of the end of the current Valuation Period, plus
(2)the per share amount of any declared and unpaid dividends or
capital gains accruing to that Portfolio, plus or minus
(3)a per share credit or charge with respect to any taxes paid or
reserved for by United of Omaha during the Valuation Period which
is determined by United of Omaha to be attributable to the
operations of the subaccount;
(b) is the net asset value per share of the Fund held in the subaccount
determined as of the end of the preceding Valuation Period plus or
minus the per share credit or charge with respect to any taxes paid
or reserved for the preceding Valuation Period; and
(c) is the asset charge factor determined by United of Omaha for the
Valuation Period to reflect the Mortality and Expense Risk Charge
and the Administrative Expense Charge deducted from the Variable
Account. This factor is equal, on an annual basis, to 1.20% of the
net asset value of the Variable Account, or 1.55% of the net asset
value of the Variable Account if the Enhanced Death Benefit is
chosen.
The result is then multiplied by a factor that offsets the Assumed Investment
Rate used to establish the Annuity Payment Rates found in the applicable
Contract, which allows the actual investment rate to be credited. For a one day
Valuation Period the factor is 0.99989255 using an Assumed Investment Rate of 4%
per year.
FEDERAL TAX MATTERS
TAX STATUS OF THE POLICY
DIVERSIFICATION REQUIREMENTS. Section 817(h) of the Internal Revenue
Code provides that in order for a variable contract which is based on a
segregated asset account to qualify as an annuity contract under the Code, the
investments made by such account must be "adequately diversified" in accordance
with Treasury regulations. The Treasury regulations issued under Section 817(h)
(Treas. Reg. ss. 1.817-5) apply a diversification requirement to each of the
Subaccounts of the Variable Account. The Variable Account, through the Series
Funds and their Portfolios, intends to comply with those diversification
requirements. United of Omaha and the Series Funds have entered into agreements
regarding participation in the Series Funds that requires the Series Funds and
their Portfolios to be operated in compliance with the Treasury regulations.
3
<PAGE>
OWNER CONTROL. In certain circumstances, owners of variable annuity
contracts may be considered the owners, for federal income tax purposes, of the
assets of the separate account used to support their contracts. In those
circumstances, income and gains from the separate account assets would be
includible in the variable contract owner's gross income. The IRS has stated in
published rulings that a variable contract owner will be considered the owner of
separate account assets if the contract owner possesses incidents of ownership
in those assets, such as the ability to exercise investment control over the
assets. The Treasury Department also announced, in connection with the issuance
of regulations concerning diversification, that those regulations "do not
provide guidance concerning the circumstances in which investor control of the
investments of a segregated asset account may cause the investor (i.e., the
Owner), rather than the insurance company, to be treated as the owner of the
assets in the account." This announcement also stated that guidance would be
issued by way of regulations or rulings on the "extent to which policyholders
may direct their investments to particular subaccounts without being treated as
owners of the underlying assets." As of the date of this prospectus, no such
guidance has been issued.
The ownership rights under the Policy are similar to, but different in
certain respects from, those described by the IRS in rulings in which it was
determined that policy owners were not owners of separate account assets. For
example, the Owner has additional flexibility in allocating premium payments and
policy values. These differences could result in an Owner being treated as the
owner of a pro-rata portion of the assets of the Separate Account. In addition,
United of Omaha does not know what standards will be set forth, if any, in the
regulations or rulings which the Treasury Department has stated it expects to
issue. United of Omaha therefore reserves the right to modify the Policy as
necessary to attempt to prevent an Owner from being considered the owner of a
pro-rata share of the assets of the Variable Account or to otherwise qualify the
Policy for favorable tax treatment.
DISTRIBUTION REQUIREMENTS. The Code also requires that Nonqualified
Policies contain specific provisions for distribution of Policy Proceeds upon
the death of an Owner. In order to be treated as an annuity contract for federal
income tax purposes, the Code requires that such Policies provide that if an
Owner dies on or after the Annuity Starting Date and before the entire interest
in the Policy has been distributed, the remaining portion must be distributed at
least as rapidly as under the method in effect on the Owner's death. If an Owner
dies before the Annuity Starting Date, the entire interest in the Policy must
generally be distributed within five years after the Owner's date of death,
these requirements are considered to be satisfied if the entire interest in the
Policy is used to purchase an immediate annuity under which payments will begin
within one year of the Owner's death and will be made for the life of the
Beneficiary or for a period not extending beyond the life expectancy of the
Beneficiary. If the Beneficiary is the deceased Owner's surviving spouse, the
Policy may be continued with the Owner's surviving spouse as the new Owner. The
Policy contains provisions intended to comply with these requirements of the
Code. No regulations interpreting these requirements of the Code have yet been
issued and thus no assurance can be given that the provisions contained in the
Policies satisfy all such Code requirements. The provisions contained in the
Policies will be reviewed and modified if necessary to assure that they comply
with the Code requirements when clarified by regulation or otherwise.
TAXATION OF UNITED OF OMAHA
United of Omaha at present is taxed as a life insurance company under
part I of Subchapter L of the Code. The Variable Account is treated as part of
United of Omaha and, accordingly, will not be taxed separately as a "regulated
investment company" under Subchapter M of the Code. United of Omaha does not
expect to incur any federal income tax liability with respect to investment
income and net capital gains arising from the activities of the Variable Account
retained as part of the reserves under the Policy. Based on this expectation, it
is anticipated that no charges will be made against the Variable Account for
federal income taxes. If, in future years, any federal income taxes or related
economic burdens are incurred by United of Omaha with respect to the Variable
Account, United of Omaha may make a charge to the Variable Account.
STATE REGULATION OF UNITED OF OMAHA
United of Omaha is subject to the laws of Nebraska governing insurance
companies and to regulation by the Nebraska Division of Insurance. An annual
statement in a prescribed form is filed with the Department of Insurance each
year covering the operation of United of Omaha for the preceding year and its
financial condition as of the end of such year. Regulation by the Department of
Insurance includes periodic examination to determine United of Omaha's contract
liabilities and reserves so that the Department may certify the items are
correct. United of Omaha's books and accounts are subject to review by the
Department of Insurance at all times and a full examination of its operations is
conducted periodically by the National Association of Insurance Commissioners.
In addition, United of Omaha is subject to regulation under the insurance laws
of other jurisdictions in which it may operate.
4
<PAGE>
ADMINISTRATION
Effective on or about March 3, 1997, United of Omaha performs all
administration for the Policies. Prior to then, United of Omaha had an
administrative services agreement with The Continuum Company, Inc. (a/k/a
Vantage Computer Systems), ("Vantage"), P.O. Box 419472, Kansas City, Missouri
64141-6472. The services provided by Vantage under the agreement included
issuance and redemption of the Policies, maintenance of records concerning the
Policies, and certain valuation services. For the fiscal year ended December 31,
1997, United of Omaha paid $ 200,000 total compensation to Vantage, in fiscal
year ended December 31, 1996 the amount was $ 650,000 and in fiscal year ended
December 31, 1995 the amount was $ 518,248 for its services.
RECORDS AND REPORTS
All records and accounts relating to the Variable Account will be
maintained by United of Omaha or by its Administrator. As presently required by
the Investment Company Act of 1940 and regulations promulgated thereunder,
United of Omaha will mail to all Policy Owners at their last known address of
record, at least annually, financial statements of the Variable Account and such
other information as may be required under that Act or by any other applicable
law or regulation. Policy Owners will also receive confirmation of each
financial transaction and any other reports required by applicable state and
federal laws, rules, and regulations.
DISTRIBUTION OF THE POLICIES
The Policies are offered to the public through brokers licensed under
the federal securities laws and state insurance laws. The offering of the
Policies is continuous and United of Omaha does not anticipate discontinuing the
offering of the Policies. However, United of Omaha reserves the right to
discontinue the offering of the Policies.
Mutual of Omaha Investor Services, Inc. ("MOIS") will be the principal
underwriter of the Policies. The Policies will be distributed by MOIS through
retail broker-dealers. Commissions payable to a broker-dealer will be up to 7.5%
of Purchase Payments. For the fiscal year ended December 31, 1997, United of
Omaha paid $17,318,698 in total compensation to MOIS; of this amount MOIS
retained $ 3,235,557 as concessions for its services as Principal Underwriter
and for distribution concessions, with the remaining amount paid to other
broker-dealers. In 1996, these amounts were $ 18,853,282 and $ 1,626,399
respectively. In 1995, these amounts were $ 2,096,354 and $ 137,803
respectively.
CUSTODY OF ASSETS
The assets of each of the Subaccounts of the Variable Account are held
by United of Omaha. The assets of the Variable Account are segregated and held
separate and apart from United of Omaha's general account assets. United of
Omaha or the Administrator maintains records of all purchases and redemptions of
shares of the Series Funds held by each of the Subaccounts. Additional
protection for the assets of the Variable Account is afforded by United of
Omaha's fidelity bond, presently in the amount of $10 million, covering the acts
of officers and employees of United of Omaha.
HISTORICAL PERFORMANCE DATA
From time to time, United of Omaha may disclose yields, total returns,
and other performance data pertaining to the Policies for a Subaccount. Such
performance data will be computed, or accompanied by performance data computed,
in accordance with the standards defined by the Securities and Exchange
Commission.
The yields and total returns of the Subaccounts of the Variable Account
normally will fluctuate over time. THEREFORE, THE DISCLOSED YIELDS AND TOTAL
RETURNS FOR ANY GIVEN PAST PERIOD ARE NOT AN INDICATION OR REPRESENTATION OF
FUTURE YIELDS OR RATES OF RETURN. A Subaccount's actual yield and total return
is affected by the types and quality of portfolio securities held by the
Portfolio and its operating expenses.
Because of the charges and deductions imposed under a Policy, the yields
and total returns for the Subaccounts will be lower than the yields and total
returns for their respective Portfolios. The yield figures will not reflect the
Withdrawal Charge. The calculations of yields, total returns, and other
performance data do not reflect the effect of any premium tax charge that may be
applicable to a particular Policy. Premium taxes currently range for 0% to 3.5%
of Purchase Payments based on the state in which the Policy is sold. For the
class of Policies issued with the Elective Death Benefit Amendment, the Death
Benefit Charge is reflected.
5
<PAGE>
MONEY MARKET YIELDS
From time to time, advertisements and sales literature may quote the
current annualized yield of the Money Market Subaccount for a seven-day period
in a manner which does not take into consideration any realized or unrealized
gains or losses on shares of the Money Market Portfolio or on its portfolio
securities. As of 12/31/97, this current annualized yield is 3.89%.
This current annualized yield is computed by determining the net change
(exclusive of realized gains and losses on the sale of securities, unrealized
appreciation and depreciation, and excluding income other than investment
income) at the end of the seven-day period in the value of a hypothetical
account under a Policy having a balance of one Accumulation Unit of the Money
Market Subaccount at the beginning of the period to determine the base period
return, and annualizing this quotient on a 365-day basis. The net change in
account value reflects: (1) net income from the Portfolio attributable to the
hypothetical account; and (2) charges and deductions imposed under the Policy
which are attributable to the hypothetical account. The charges and deductions
include the per Unit charges for the hypothetical account for: (1) the annual
Policy Fee; (2) the Administrative Expense Charge; and (3) the Mortality and
Expense Risk Charge. The $30 annual Policy Fee is reflected as an annual 0.10%
charged daily, based on an average Accumulation Value of $30,000. Yield figures
will not reflect the Withdrawal Charge.
Because of the charges and deductions imposed under the Policy, the
yield for the Money Market Subaccount will be lower than the yield for the Money
Market Portfolio.
The Securities and Exchange Commission also permits United of Omaha to
disclose the effective yield of the Money Market Subaccount for the same
seven-day period, determined on a compounded basis. The effective yield is
calculated by compounding the unannualized base period return by adding one to
the base period return, raising the sum to a power equal to 365 divided by 7,
and subtracting one from the result.
The current and effective yields on amounts held in the Money Market
Subaccount normally will fluctuate on a daily basis. THEREFORE, THE DISCLOSED
YIELD FOR ANY GIVEN PAST PERIOD IS NOT AN INDICATION OR REPRESENTATION OF FUTURE
YIELDS OR RATES OF RETURN. The Money Market Subaccount's actual yield is
affected by changes in interest rates on money market securities, average
portfolio maturity of the Money Market Portfolio, the types of quality of
portfolio securities held by the Money Market Portfolio and the Money Market
Portfolio's operating expenses. Yields figures do not reflect the effect of any
Withdrawal Charge that may be applicable to a Policy. For the class of Policies
issued with the Elective Death Benefit Amendment, the Death Benefit Charge is
included.
OTHER SUBACCOUNT YIELDS
From time to time, sales literature or advertisements may quote the
current annualized yield of one or more of the Subaccounts (except the Money
Market Subaccount) for a Policy for 30-day or one-month periods. The annualized
yield of a Subaccount refers to income generated by the Subaccount over a
specific 30-day or one-month period. Because the yield is annualized, the yield
generated by a Subaccount during a 30-day or one-month period is assumed to be
generated each period over a 12-month period.
The yield is computed by: (a) dividing the net investment income of the
Portfolio attributable to the Subaccount Accumulation Units less Subaccount
expenses for the period by the maximum offering price per Accumulation Unit on
the last day of the period times the daily average number of units outstanding
for the period; (b) compounding that yield for a six-month period; and (c)
multiplying that result by 2. Expenses attributable to the Subaccount include:
(a) the annual Policy Fee; (b) the Administrative Expense Charge; and (c) the
Mortality and Expense Risk Charge. The $30 annual Policy Fee is reflected as an
annual 0.10% charged daily in the yield calculation, based on an average
Accumulation Value of $30,000. For the class of Policies issued with the
Elective Death Benefit Amendment, the Death Benefit Charge is included. The
30-day or one-month yield is calculated according to the following formula:
Yield = [2 {a-b + 1} 6 - 1]
[ cd ]
Where:
a =-- net income of the Portfolio for the 30-day or
one-month period attributable to the Subaccount's
Accumulation Units.
b =-- expenses of the Subaccount for the 30-day or one-month period.
c =-- the average number of Accumulation Units outstanding.
d =-- the Accumulation Unit value at the close of the last day
in the 30-day or one-month period.
Because of the charges and deductions imposed under the Policies, the
yield for a Subaccount will be lower than the yield for the corresponding Series
Fund Portfolio.
6
<PAGE>
Yield calculations do not take into account the Withdrawal Charge under
the Policy (a maximum of 7% of the Purchase Payments surrendered or withdrawn).
AVERAGE ANNUAL TOTAL RETURNS
From time to time, sales literature or advertisements may also quote
average annual total returns for one or more of the Subaccounts for various
periods of time.
When a Subaccount has been in operation for 1, 5, and 10 years,
respectively, the average annual total return for these periods will be
provided. Until a Subaccount has been in operation for 10 years, United of Omaha
will always include quotes of average annual total return for the period
measured from the date the Policies were first offered for sale. Average annual
total returns for other periods of time may, from time to time, also be
disclosed.
Average annual total returns represent the average annual compounded
rates of return that would equate an initial investment of $1,000 under a Policy
to the redemption value of that investment as of the last day of each of the
periods. Average annual total returns will be calculated using Subaccount
Accumulation Unit values which United of Omaha calculates at the end of each
Valuation Period based on the performance of the Subaccount's underlying
Portfolio, the deductions for (a) the annual Policy Fee; (b) the Administrative
Expense Charge; and (c) the Mortality and Expense Risk Charge. The $30 annual
Policy Fee is reflected as an annual 0.10% charged daily in the calculation of
average annual total returns, based on an anticipated average Accumulation Value
of $30,000. The calculation also assumes surrender of the Policy at the end of
the period for the return quotation. Standard total returns will therefore
reflect a deduction of any applicable Withdrawal Charge. For the class of
Policies issued with the Elective Death Benefit Amendment, the deduction for the
Death Benefit Charge is also reflected. The total return will then be calculated
according to the following formula:
P(1+TR) n = ERV
Where:
P =-- a hypothetical initial Purchase Payment of $1,000.
TR = -- the average annual total return.
ERV = -- the ending redeemable value (net of any applicable
Withdrawal Charge) of the hypothetical account at the end
of the period.
n =-- the number of years in the period.
ADJUSTED HISTORICAL PERFORMANCE DATA. United of Omaha may, from time to
time, also disclose yield, standard total returns, and non-standard total
returns for the Portfolios of the Series Funds, including such disclosure for
periods prior to the dates the Subaccounts commenced operations. For periods
prior to the date the Subaccount commenced operations, performance information
for Policies will be calculated based on the performance of the Series Fund
Portfolios and the assumption that the Subaccounts were in existence for the
same periods as those indicated for the Series Fund Portfolios, with the level
of Policy charges that were in effect at the inception of the Subaccounts (this
is referred to as "adjusted historical" performance data). Such standardized but
"adjusted historical" average annual total return information for the
Subaccounts of Policies is as follows:
<TABLE>
<CAPTION>
------------------------------------------------ --------- --------- ------------ ===========
SUBACCOUNT 1 Year 5 Years 10 Years Since
"ADJUSTED HISTORICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/97 12/31/97 12/31/97 to
(REFLECTS WITHDRAWAL CHARGES) % % % 12/31/97
Subaccount (date of inception of corresponding %
Portfolio)
(Policy issued without Enhanced Death Benefit)
------------------------------------------------ --------- --------- ------------ ===========
<S> <C> <C> <C> <C>
Alger American Growth (1/9/89) 16.76 17.16 N/A 17.91
Alger American Small Capitalization (9/21/88) 3.42 10.63 N/A 17.71
Federated Prime Money Fund II (11/21/94) -2.58 N/A N/A 2.42
Federated Fund for U.S. Government Securities
(3/28/94) 0.81 N/A N/A 4.05
Fidelity VIP II Asset Manager: Growth (1/3/95) 16.13 N/A N/A 19.45
Fidelity VIP II Contrafund (1/3/95) 15.27 N/A N/A 24.74
Fidelity VIP Equity Income (10/9/86) 18.96 18.02 15.23 13.20
Fidelity VIP II Index 500 (8/27/92) 23.22 17.78 N/A 17.95
MFS Emerging Growth (7/24/95) 13.19 N/A N/A 19.79
MFS High Income (7/26/95) 5.49 N/A N/A 9.23
MFS Research (7/26/95) 11.66 N/A N/A 18.43
MFS Value Series (8/14/96) 17.43 N/A N/A 18.41
MFS World Government (6/14/94) -8.21 N/A N/A 2.55
Morgan Stanley Emerging Markets Equity
(10/1/96) -6.68 N/A N/A -6.50
7
<PAGE>
Morgan Stanley Fixed Income (1/2/97) 2.06 N/A N/A 2.06
Pioneer Capital Growth (3/1/95) 15.78 N/A N/A 16.76
Pioneer Real Estate (3/1/95) 12.52 N/A N/A 22.41
Scudder Global Discovery (5/2/97) N/A N/A N/A 8.62
Scudder Growth & Income (5/1/97) N/A N/A N/A 14.36
Scudder International (5/1/87) 1.26 11.67 10.36 8.44
T. Rowe Price International (3/31/94) -4.29 N/A N/A 5.71
T. Rowe Price New America Growth (3/31/94) 12.46 N/A N/A 20.98
T. Rowe Price Equity Income (3/31/94) 19.65 N/A N/A 21.05
T. Rowe Price Limited-Term Bond (5/13/94) -0.91 N/A N/A 3.79
T. Rowe Price Personal Strategy Balanced
(12/31/94) 9.60 N/A N/A 16.90
================================================ ========= ========= ============ ===========
Subaccount (date of inception of 1 Year 5 Years 10 Years Since
corresponding Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/96 12/31/96 12/31/96 to
12/31/96
================================================ ========= ========= ============ ===========
================================================ ========= ========= ============ ===========
Alger American Growth (1/9/89) 16.36 16.75 N/A 17.50
Alger American Small Capitalization (9/21/88) 3.06 10.25 N/A 17.30
Federated Prime Money Fund II (11/21/94) -2.92 N/A N/A 2.05
Federated Fund for U.S. Government Securities
(3/28/94) 0.46 N/A N/A 3.69
Fidelity VIP II Asset Manager: Growth (1/3/95) 15.73 N/A N/A 19.04
Fidelity VIP II Contrafund (1/3/95) 14.88 N/A N/A 24.32
Fidelity VIP Equity Income (10/9/86) 18.55 17.61 14.83 12.81
Fidelity VIP II Index 500 (8/27/92) 22.80 17.37 N/A 17.54
MFS Emerging Growth (7/24/95) 12.80 N/A N/A 19.37
MFS High Income (7/26/95) 5.12 N/A N/A 8.84
MFS Research (7/26/95) 11.28 N/A N/A 18.01
MFS Value Series (8/14/96) 17.03 N/A N/A 17.99
MFS World Government (6/14/94) -8.54 N/A N/A 2.19
Morgan Stanley Emerging Markets Equity
(10/1/96) -7.01 N/A N/A -6.83
Morgan Stanley Fixed Income (1/2/97) 1.71 N/A N/A 1.71
Pioneer Capital Growth (3/1/95) 15.38 N/A N/A 16.36
Pioneer Real Estate (3/1/95) 12.14 N/A N/A 21.99
Scudder Global Discovery (5/2/97) N/A N/A N/A 8.37
Scudder Growth & Income (5/1/97) N/A N/A N/A 14.10
Scudder International (5/1/87) 0.91 11.29 9.98 8.07
T. Rowe Price International (3/31/94) -4.63 N/A N/A 5.34
T. Rowe Price New America Growth (3/31/94) 12.07 N/A N/A 20.56
T. Rowe Price Equity Income (3/31/94) 19.24 N/A N/A 20.63
T. Rowe Price Limited-Term Bond (5/13/94) -1.25 N/A N/A 3.43
T. Rowe Price Personal Strategy Balanced
(12/31/94) 9.22 N/A N/A 16.50
================================================ ========= ========= ============ ===========
Such non-standardized (i.e., assuming no Withdrawal Charge) but adjusted
historical average annual total return information for the Subaccounts is as
follows:
------------------------------------------------ --------- --------- ------------ ===========
SUBACCOUNT NON-STANDARDIZED 1 Year 5 Years 10 Years Since
"ADJUSTED HISTORICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/97 12/31/97 12/31/97 to
(DOES NOT REFLECT SURRENDER CHARGES) % % % 12/31/97
Subaccount (date of inception of corresponding %
Portfolio)
(Policy issued without Enhanced Death Benefit)
------------------------------------------------ --------- --------- ------------ ===========
Alger American Growth (1/9/89) 24.15 17.76 N/A 17.91
Alger American Small Capitalization (9/21/88) 9.96 11.21 N/A 17.71
Federated Prime Money Fund II (11/21/94) 3.58 N/A N/A 3.56
Federated Fund for U.S. Government Securities 7.18 N/A N/A 5.01
(3/28/94) 23.48 N/A N/A 21.20
Fidelity VIP II Asset Manager: Growth (1/3/95) 22.56 N/A N/A 26.57
Fidelity VIP II Contrafund (1/3/95) 26.48 18.63 15.23 13.20
Fidelity VIP Equity Income (10/9/86) 31.02 18.39 N/A 18.33
Fidelity VIP II Index 500 (8/27/92) 20.35 N/A N/A 21.94
MFS Emerging Growth (7/24/95) 12.16 N/A N/A 11.20
MFS High Income (7/26/95) 18.73 N/A N/A 20.57
8
<PAGE>
MFS Research (7/26/95) 24.86 N/A N/A 22.99
MFS Value Series (8/14/96) -2.41 N/A N/A 3.56
MFS World Government (6/14/94) -0.78 N/A N/A -2.50
Morgan Stanley Emerging Markets Equity 8.52 N/A N/A 8.52
(10/1/96) 23.11 N/A N/A 18.56
Morgan Stanley Fixed Income (1/2/97) 19.64 N/A N/A 24.30
Pioneer Capital Growth (3/1/95) N/A N/A N/A 15.49
Pioneer Real Estate (3/1/95) N/A N/A N/A 21.59
Scudder Global Discovery (5/2/97) 7.67 12.25 10.36 8.44
Scudder Growth & Income (5/1/97) 1.76 N/A N/A 6.69
Scudder International (5/1/87) 19.58 N/A N/A 22.10
T. Rowe Price International (3/31/94) 27.22 N/A N/A 22.17
T. Rowe Price New America Growth (3/31/94) 5.36 N/A N/A 4.78
T. Rowe Price Equity Income (3/31/94) 16.53 N/A N/A 18.60
T. Rowe Price Limited-Term Bond (5/13/94)
T. Rowe Price Personal Strategy Balanced
(12/31/94)
================================================ ========= ========= ============ ===========
Subaccount (date of inception of 1 Year 5 Years 10 Years Since
corresponding Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/97 12/31/97 12/31/97 to
12/31/97
================================================ ========= ========= ============ ===========
================================================ ========= ========= ============ ===========
Alger American Growth (1/9/89) 23.72 17.36 N/A 17.50
Alger American Small Capitalization (9/21/88) 9.58 10.82 N/A 17.30
Federated Prime Money Fund II (11/21/94) 3.22 N/A N/A 3.19
Federated Fund for U.S. Government Securities 6.81 N/A N/A 4.64
(3/28/94) 23.06 N/A N/A 20.78
Fidelity VIP II Asset Manager: Growth (1/3/95) 22.14 N/A N/A 26.13
Fidelity VIP II Contrafund (1/3/95) 26.05 18.22 14.83 12.81
Fidelity VIP Equity Income (10/9/86) 30.57 17.98 N/A 17.92
Fidelity VIP II Index 500 (8/27/92) 19.94 N/A N/A 21.51
MFS Emerging Growth (7/24/95) 11.77 N/A N/A 10.80
MFS High Income (7/26/95) 18.32 N/A N/A 20.14
MFS Research (7/26/95) 24.44 N/A N/A 22.55
MFS Value Series (8/14/96) -2.75 N/A N/A 3.19
MFS World Government (6/14/94) -1.13 N/A N/A -2.84
Morgan Stanley Emerging Markets Equity 8.14 N/A N/A 8.14
(10/1/96) 22.68 N/A N/A 18.15
Morgan Stanley Fixed Income (1/2/97) 19.23 N/A N/A 23.87
Pioneer Capital Growth (3/1/95) N/A N/A N/A 15.22
Pioneer Real Estate (3/1/95) N/A N/A N/A 21.32
Scudder Global Discovery (5/2/97) 7.29 11.86 9.98 8.07
Scudder Growth & Income (5/1/97) 1.41 N/A N/A 6.32
Scudder International (5/1/87) 19.16 N/A N/A 21.68
T. Rowe Price International (3/31/94) 26.79 N/A N/A 21.75
T. Rowe Price New America Growth (3/31/94) 5.00 N/A N/A 4.42
T. Rowe Price Equity Income (3/31/94) 16.13 N/A N/A 18.19
T. Rowe Price Limited-Term Bond (5/13/94)
T. Rowe Price Personal Strategy Balanced
(12/31/94)
================================================ ========= ========= ============ ===========
</TABLE>
THE FIGURES ABOVE ARE NOT AN INDICATION OF PRESENT, PAST, OR FUTURE PERFORMANCE
OF THE APPLICABLE SUBACCOUNTS OR OF THE ACTUAL PORTFOLIOS AVAILABLE UNDER THE
POLICY.
United of Omaha may disclose Cumulative Total Returns in conjunction
with the standard formats described above. The Cumulative Total Returns will be
calculated using the following formula:
CTR = (ERV/P) - 1
Where:
CTR = -- The Cumulative Total Return net of Subaccount
recurring charges for the period.
ERV = -- The ending redeemable value of the hypothetical
investment at the end of the period.
P = -- A hypothetical initial Purchase Payment of $1,000.
9
<PAGE>
OTHER INFORMATION
The following is a partial list of those publications which may be cited
in the Series Funds' advertising shareholder materials which contain articles
describing investment results or other data relative to one or more of the
Subaccounts. Other publications may also be cited.
Across the Board
Advertising Age
American Banker
Barron's
Best's Review
Broker World
Business Insurance
Business Month
Business Week
Changing Times
Consumer Reports
Economist
Financial Planning
Financial World
Forbes
Fortune
Inc.
Institutional Investor
Insurance Forum
Insurance Sales
Insurance Week
Journal of Accountancy
Journal of the American Society of CLU & ChFC
Journal of Commerce
Life Association News
Life Insurance Selling
Manager's Magazine
Market Facts
Money
LEGAL MATTERS
We know of no material legal proceedings pending to which the Variable
Account is a party or which would materially affect the Variable Account. We are
not involved in any litigation of material importance to our total assets or to
the Variable Account. Legal matters in connection with the Policy have been
passed upon by our Law Staff.
OTHER INFORMATION
A Registration Statement has been filed with the Securities and Exchange
Commission, under the Securities Act of 1933 as amended, with respect to the
Policies discussed in this Statement of Additional Information. Not all of the
information set forth in the Registration Statement, amendments and exhibits
thereto has been included in the Prospectus or this Statement of Additional
Information. Statements contained in the Prospectus and this Statement of
Additional Information concerning the content of the Policies and other legal
instruments are intended to be summaries. For a complete statement of the terms
of these documents, reference should be made to the instruments filed with the
Securities and Exchange Commission.
FINANCIAL STATEMENTS
This Statement of Additional Information contains financial statements
for the Variable Account as of December 31, 1997 and for the years ended
December 31, 1997 and 1996 which have been audited by Deloitte & Touche, LLP,
independent auditors, Omaha, Nebraska, as stated in their report appearing
herein.
The Financial Statements of United of Omaha Life Insurance Company as of
and for the years ended December 31, 1997 and 1996 included in this Statement of
Additional Information have been audited by Deloitte & Touche LLP, independent
auditors, Omaha, Nebraska, as stated in their report appearing herein. The
financial statements of United of Omaha Life Insurance Company for the year
ended December 31, 1995 have been audited by Coopers & Lybrand, L.L.P.,
independent auditors, Omaha, Nebraska, as stated in their report appearing
herein. The financial statements of United of Omaha Life Insurance Company
should be considered only as bearing on the ability of United of Omaha to meet
its obligations under the Policies. They should not be considered as bearing on
the investment performance of the assets held in the Variable Account.
10
<PAGE>
- -------------------------------------------------------------------
UNITED OF OMAHA
LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL
OF OMAHA INSURANCE COMPANY)
STATUTORY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS'
REPORT
DECEMBER 31, 1997, 1996 AND 1995
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
United of Omaha Life Insurance Company
Omaha, Nebraska
We have audited the accompanying statutory statements of admitted assets,
liabilities, and surplus of United of Omaha Life Insurance Company (a
wholly-owned subsidiary of Mutual of Omaha Insurance Company) as of December 31,
1997 and 1996, and the related statutory statements of income, changes in
surplus, and cash flows for the years then ended. Our responsibility is to
express an opinion on these financial statements based on our audits. The
financial statements of United of Omaha Life Insurance Company for the year
ended December 31, 1995 were audited by other auditors whose report, dated April
9, 1997, expressed an unqualified opinion on the presentation of those financial
statements in conformity with accounting practices prescribed or permitted by
the Insurance Department of the State of Nebraska and also expressed an opinion
that the financial statements were not presented in conformity with generally
accepted accounting principles. The financial statements are the responsibility
of the Company's management.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As more fully described in Note 1 to the financial statements, the Company has
prepared these financial statements in conformity with accounting practices
prescribed or permitted by the Insurance Department of the State of Nebraska.
Those practices differ from generally accepted accounting principles. The
effects on the financial statements of the differences between the statutory
basis of accounting and generally accepted accounting principles are not
reasonably determinable, but are presumed to be material.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the financial statements referred to above do not present fairly, in
conformity with generally accepted accounting principles, the financial position
of United of Omaha Life Insurance Company as of December 31, 1997 and 1996, or
the results of its operations or its cash flows for the years then ended.
<PAGE>
In our opinion, the statutory financial statements referred to above present
fairly, in all material respects, the admitted assets, liabilities, and surplus
of United of Omaha Life Insurance Company as of December 31, 1997 and 1996, and
the results of its operations and its cash flows for the years then ended, on
the basis of accounting described in Note 1.
DELOITTE & TOUCHE LLP
February 17, 1998
<PAGE>
To the Board of Directors
United of Omaha Life Insurance Company
Omaha, Nebraska
We have audited the accompanying statements of operations, capital and surplus,
and cash flows of United of Omaha Life Insurance Company (a Nebraska Corporation
and wholly-owned subsidiary of Mutual of Omaha Insurance Company) for the year
ended December 31, 1995. These financial statements are the responsibility of
the Company's management. Our responsibility is to report on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our originally issued report dated February 23, 1996, we expressed an opinion
that the 1995 financial statements, prepared using accounting practices
prescribed or permitted by the Insurance Department of the State of Nebraska,
presented fairly, in all material respects, the results of United of Omaha Life
Insurance Company's operations and its cash flow for the year ended December 31,
1995 in conformity with generally accepted accounting principles. As described
in Note 1 to the financial statements, pursuant to the provisions of Statement
of Financial Accounting Standards Board Interpretation 40, Applicability of
Generally Accepted Accounting Principles to Mutual Life Insurance and Other
Enterprises, as amended ("FIN 40"), financial statements of mutual life
insurance enterprises for periods ending on or before December 15, 1996,
prepared using accounting practices prescribed or permitted by insurance
regulators (statutory financial statements) are no longer considered
presentations in conformity with generally accepted accounting principles.
Accordingly, our present opinion on the presentation of the 1995 financial
statements in accordance with generally accepted accounting principles, as
presented herein, is different from that expressed in our previous report.
In our opinion, because of the effects of the matter discussed in the preceding
paragraph, the financial statements referred to above do not present fairly, in
conformity with generally accepted accounting principles, the results of United
of Omaha Life Insurance Company's operations and its cash flows for the year
ended December 31, 1995.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the results of United of Omaha Life Insurance Company's
operations and its cash flows for the year ended December 31, 1995, I conformity
with accounting practices prescribed or permitted by the Insurance Department of
the State of Nebraska.
COOPERS & LYBRAND L.L.P.
Omaha, Nebraska
February 23, 1996 (except for the change in Our opinion as required by FIN 40,
for which the date is April 9, 1997)
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND SURPLUS
DECEMBER 31, 1997 AND 1996
(IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------------------------
ADMITTED ASSETS 1997 1996
Cash and invested assets:
<S> <C> <C>
Bonds 6,921,762 6,194,033
Preferred stocks 3,955 2,967
Common stocks 96,599 206,792
Mortgage loans 587,413 914,877
Real estate occupied by the Company,
net of accumulated depreciation of $55,634 in 1997 -
and $51,913 in 1996 82,536 85,958
Real estate acquired in satisfaction of debt,
net of accumulated depreciation of $2,809 in 1997
and $3,418 in 1996 24,103 47,288
Investment in real estate,
net of accumulated depreciation of
$3,836 in 1997 and $14,576 in 1996 2,426 9,930
Policy loans 125,623 118,150
Cash and short-term investments 115,195 117,502
Other invested assets 75,603 70,027
------- ------
Total cash and invested assets 8,035,215 7,767,524
Premiums deferred and uncollected 105,487 94,802
Investment income due and accrued 81,723 75,193
Electronic data processing equipment, net of accumulated depreciation
of $70,130 in 1997 and $56,352 in 1996 43,989 44,971
Receivable from parent, subsidiaries and affiliates 36,856 8,075
Other assets 55,383 47,050
Separate accounts assets 927,950 499,423
-------- -------
Total admitted assets 9,286,603 8,537,038
========== =========
LIABILITIES
Policy reserves:
Aggregate reserve for policies and contracts 5,880,532 5,427,996
Liability for premium and other deposit funds 1,527,069 1,670,294
Policy and contract claims 68,226 49,317
Other 75,725 74,171
------- ------
Total policy reserves 7,551,552 7,221,778
Interest maintenance reserve 18,902 26,872
Asset valuation reserve 94,144 114,495
General expenses and taxes due or accrued 30,843 35,147
Federal income taxes due or accrued 17,739 20,241
Other liabilities 77,148 84,293
Separate accounts liabilities 908,200 499,392
-------- -------
Total liabilities 8,698,528 8,002,218
---------- ---------
SURPLUS
Capital stock, $10 par value, 900,000 shares authorized issued and outstanding 9,000 9,000
Gross paid-in and contributed surplus 62,724 62,724
Unassigned surplus 516,351 463,096
-------- -------
Total surplus 588,075 534,820
-------- -------
Total liabilities and surplus 9,286,603 8,537,038
========== =========
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
- ----------------------------------------------------------------------------------------------------------------
1997 1996 1995
Income:
<S> <C> <C> <C>
Net premiums and annuity considerations 1,187,104 1,285,507 1,278,389
Other considerations and fund deposits 293,228 260,508 81,818
Net investment income 587,480 546,634 526,246
Other income 25,019 20,604 25,233
------- ------- ------
Total income 2,092,831 2,113,253 1,911,686
---------- ---------- ---------
Benefits and expenses:
Policyholder and beneficiary benefits 1,030,686 890,668 728,340
Increase in reserves for policyholder and beneficiary benefits 365,393 561,185 781,059
Commissions 130,343 126,692 98,132
Operating expenses 203,684 175,723 186,158
Expense realignment costs 4,442 9,099 -
Net transfers to separate accounts 278,480 277,638 41,074
-------- -------- ------
Total benefits and expenses 2,013,028 2,041,005 1,834,763
---------- ---------- ---------
Net gain from operations before federal income taxes and
net realized capital gains 79,803 72,248 76,923
Federal income taxes 37,918 41,101 30,227
------- ------- ------
Net gain from operations before net realized capital gains 41,885 31,147 46,696
Net realized capital gains 51,537 23,461 14,476
------- ------- ------
Net income 93,422 54,608 61,172
======= ======= ======
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF CHANGES IN SURPLUS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
- --------------------------------------------------------------------------------
1997 1996 1995
Capital stock:
<S> <C> <C> <C>
Balance at beginning and end of year 9,000 9,000 9,000
------ ------ -----
Gross paid-in and contributed surplus:
Balance at beginning of year 62,724 62,724 62,724
------- ------- ------
Unassigned surplus:
Balance at beginning of year 463,096 440,889 378,242
Net income 93,422 54,608 61,172
Change in net unrealized capital gains and losses (45,543) (23,064) 6,299
(Increase) decrease in:
Non-admitted assets (15,448) 2,561 1,593
Asset valuation reserve 20,352 (8,150) (6,483)
Additional pension plan contribution - (3,599) -
Change in group pension reserve valuation basis 17,437 - -
Adoption of actuarial guidelines (17,235) - -
Surplus contributed to separate account (20,000) - -
Change in surplus in separate account 20,000 - -
Other, net 270 (149) 66
---- ----- --
Balance at end of year 516,351 463,096 440,889
-------- -------- -------
Total surplus 588,075 534,820 512,613
======== ======== =======
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
- --------------------------------------------------------------------------------------------------------------
1997 1996 1995
Cash from operations:
<S> <C> <C> <C>
Premiums, considerations and other fund deposits 1,467,305 1,539,502 1,343,041
Net investment income 572,888 537,288 512,992
Other income 24,599 20,642 21,771
Benefits (1,015,334) (888,661) (728,025)
Commissions and general expenses (358,217) (314,100) (276,574)
Federal income taxes (50,033) (42,235) (23,796)
Net transfers to separate accounts (291,034) (292,935) (41,112)
--------- --------- --------
Net cash from operations 350,174 559,501 808,297
-------- -------- -------
Cash from investments:
Proceeds from investments sold, redeemed or matured:
Bonds 1,061,409 992,065 582,788
Mortgage loans 335,103 132,406 131,975
Stocks 143,363 52,062 73,863
Real estate 37,927 18,601 15,353
Other invested assets 40,376 32,150 4,391
Tax on capital gains (15,797) (9,665) (2,525)
Cost of investments acquired:
Bonds (1,774,643) (1,818,632) (1,460,824)
Mortgage loans (19,863) (22,607) (56,781)
Stocks (23,479) (25,848) (28,873)
Other invested assets (27,564) (53,150) (22,321)
Real estate (3,082) (4,205) (4,897)
Net increase in policy loans (7,474) (6,815) (6,494)
------- ------- -------
Net cash from investments (253,724) (713,638) (774,345)
--------- --------- ---------
Cash from financing and other sources:
Other cash provided 18,881 102,623 38,420
Other cash used (117,637) (6,984) (5,434)
--------- ------- -------
Net cash from financing and other sources (98,756) 95,639 32,986
-------- ------- ------
Net change in cash and short-term investments (2,307) (58,498) 66,938
Cash and short-term investments:
Beginning of year 117,502 176,000 109,062
-------- -------- -------
End of year 115,195 117,502 176,000
======== ======== =======
The accompanying notes are an integral part of these statutory financial
statements.
</TABLE>
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
NOTES TO STATUTORY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(DOLLAR AMOUNTS IN THOUSANDS)
- --------------------------------------------------------------------------------
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS - United of Omaha Life Insurance Company (the Company)
is a wholly-owned subsidiary of Mutual of Omaha Insurance Company (Mutual
of Omaha), a mutual health and accident and life insurance company
domiciled in the State of Nebraska. At December 31, 1997, the Company owned
100% of the outstanding common stock of the following entities: Companion
Life Insurance Company (Companion), United World Life Insurance Company
(United World), Mutual of Omaha Structured Settlement Company-Connecticut
(MOSSCO-CT), and Mutual of Omaha Structured Settlement Company-New York
(MOSSCO-NY). The Company has insurance licenses to operate in 49 states,
the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands.
Individual life insurance and annuity products are sold through a network
of career agents, direct mail, brokers, financial planners and banks. Group
business is produced by representatives located in Mutual of Omaha group
offices throughout the country.
BASIS OF PRESENTATION - The accompanying financial statements have been
prepared in conformity with accounting practices prescribed or permitted by
the Insurance Department of the State of Nebraska. Prescribed statutory
accounting practices are contained in a variety of publications of the
National Association of Insurance Commissioners (NAIC), as well as state
laws, regulations, and general administrative rules. Permitted statutory
accounting practices encompass all accounting practices which may not
necessarily be prescribed but are not prohibited.
The accompanying statutory financial statements vary in some respects from
those that would be presented in conformity with generally accepted
accounting principles. The most significant differences include: (a) bonds
are generally carried at amortized cost rather than being valued at either
amortized cost or fair value based on their classification according to the
Company's ability and intent to hold or trade the securities; (b)
acquisition costs, such as commissions and other costs related to acquiring
new business, are charged to operations as incurred and not deferred,
whereas premiums are taken into income on a pro rata basis over the
respective term of the policies; (c) deferred federal income taxes are not
provided for temporary differences between tax and financial reporting; (d)
no provision has been made for federal income taxes on unrealized
appreciation of investments which are carried at market value; (e) asset
valuation reserves (AVR) and interest maintenance reserves (IMR) are
established; (f) different actuarial assumptions are used for calculating
certain policy reserves; (g) changes in certain assets designated as
"non-admitted" have been charged to unassigned surplus; and (h) the change
in the underlying book value of wholly-owned subsidiaries is reported as a
change in net unrealized capital gains (losses), a component of unassigned
surplus, rather than as a component of the Company's net income/loss. The
effect of the foregoing differences on the accompanying statutory financial
statements are not reasonably determinable, but was presumed to be
material.
USE OF ESTIMATES - The preparation of financial statements in accordance
with statutory accounting principles requires management to make estimate
and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ significantly from
those estimates.
<PAGE>
INVESTMENTS - Bonds are generally stated at amortized cost. Premiums and
discounts on bonds not backed by other loans are amortized using the
scientific method. Premiums and discounts on loan-backed bonds and
structured securities are amortized using the interest method based on
anticipated prepayments at the date of purchase. Changes in estimated cash
flows from the original purchase assumptions are accounted for using the
retrospective method. Preferred stocks are stated primarily at cost. Common
stocks of unaffiliated companies are stated at estimated fair value and
stocks of affiliated companies (principally insurance companies) are valued
at underlying book value. The change in the stated value is recorded as a
change in unrealized capital gains (losses), a component of unassigned
surplus, ignoring the effect of income taxes.
Mortgage loans and policy loans are stated at the aggregate unpaid balance.
In accordance with statutory accounting practices, the Company records a
general reserve for losses on mortgage loans as part of the asset valuation
reserve.
Home office and investment real estate are valued at cost, less allowance
for depreciation. Property acquired in satisfaction of debt is initially
valued at the lower of cost or fair market value. Depreciation is provided
on the straight-line basis over the estimated useful lives of the related
assets.
Short-term investments include all investments whose maturities, at the
time of acquisition, are one year or less and are stated at cost which
approximates market.
Investment income is recorded when earned. Realized gains and losses on
sale or maturity of investments are determined on the specific
identification basis. Any portion of invested assets designated as
"non-admitted" is excluded from the statutory statements of admitted
assets, liabilities and surplus.
ASSET VALUATION AND INTEREST MAINTENANCE RESERVES - The Company establishes
certain reserves as promulgated by the NAIC. The AVR is established for the
specific risk characteristics of invested assets of the Company. The IMR is
established for the realized gains and losses on the redemption of fixed
income securities resulting from changes in interest rates, net of tax.
Gains and losses pertaining to the IMR are subsequently amortized into
investment income over the expected remaining period to maturity of the
investments sold or called.
POLICY RESERVES - Policy reserves provide amounts adequate to discharge
estimated future obligations in excess of estimated future premiums on
policies in force. Reserves for life policies are computed principally by
using the Commissioners' Reserve Valuation Method (CRVM) or the Net Level
Premium Method with assumed interest rates (2.5% to 6%) and mortality
(American Experience, 1941 CSO, 1958 CSO, 1960 CSG and 1980 CSO tables) as
prescribed by regulatory authorities. Reserves for annuities and deposit
administration contracts are computed on the basis of interest rates
ranging from 2.5% to 12.75%. Policy and contract claim liabilities include
provisions for reported claims and estimates for claims incurred but not
reported. To the extent the ultimate liability differs from the amounts
recorded, such differences are reflected in operations when additional
information becomes known.
During 1997, the Company adopted two actuarial guidelines. The total impact
of the adoption of these guidelines was a $17,235 decrease in unassigned
surplus. The Company also recorded a reduction in group pension reserves
based on a change in estimate in the calculation of these reserves. The
impact of this change in estimate was a $17,437 increase in unassigned
surplus.
PREMIUMS AND RELATED COMMISSIONS - Premiums are recognized as income over
the premium paying period of the policies. Commissions and other expenses
related to the acquisition of policies are charged to operations as
incurred.
<PAGE>
FEDERAL INCOME TAXES - The Company files a consolidated federal income tax
return with its parent and other eligible subsidiaries. The method of
allocating taxes among the companies is subject to a written agreement
approved by the Board of Directors. Each company's provision for federal
income taxes is based on a separate return calculation with each company
recognizing tax benefits of net operating loss carryforwards and tax
credits on a separate return basis.
The provision for federal income taxes is based on income which is
currently taxable. Deferred federal income taxes are not provided for
temporary differences between income tax and statutory reporting. The
Company recognizes the benefits of net operating loss, foreign tax credit,
and general business credit carryforwards when realized.
NON-ADMITTED ASSETS - Certain assets designated as "non-admitted",
principally receivables greater than ninety days due and office furniture
and equipment, are excluded from the statutory statements of admitted
assets, liabilities, and surplus. The net change in such assets is charged
or credited directly to unassigned surplus.
FAIR VALUES OF FINANCIAL INSTRUMENTS - The following methods and
assumptions were used by the Company in estimating its fair value
disclosures for financial instruments:
CASH, SHORT-TERM INVESTMENTS AND OTHER INVESTED ASSETS - The carrying
amounts for these instruments approximate their fair values.
BONDS - The fair values for bonds are based on quoted market prices,
where available. For bonds not actively traded, fair values are estimated
using values obtained from independent pricing services or based on
expected future cash flows using a current market rate applicable to the
yield, credit quality and maturity of the investments.
UNAFFILIATED COMMON STOCKS - The fair values for unaffiliated common
stocks are based on quoted market prices.
AFFILIATED COMMON STOCK - The fair values for affiliated common stocks
are based on the Company's equity in the underlying book value.
PREFERRED STOCKS - The fair values for preferred stocks are based on
quoted market prices.
MORTGAGE LOANS - The fair values for mortgage loans are estimated using
discounted cash flow calculations which are based on interest rates
currently being offered for similar loans to borrowers with similar
credit ratings, credit quality, and maturity of the investments.
POLICY LOANS - The Company does not believe an estimate of the fair value
of policy loans can be made without incurring excessive cost. Policy
loans have no stated maturities and are usually repaid by reductions to
benefits and surrenders. Because of the numerous assumptions which would
have to be made to estimate fair value, the Company believes that such
information would not be meaningful.
INVESTMENT CONTRACTS - The fair values for liabilities under
investment-type insurance contracts are estimated using discounted cash
flow calculations, which are based on interest rates currently being
offered for similar contracts with maturities consistent with those
remaining for the contracts being valued.
DERIVATIVES - The fair value of interest-rate swaps, foreign currency
swaps and interest-rate caps represents the amount at which the contracts
could be settled based upon estimates obtained from issuing brokers. The
fair value of equity linked notes represents the appreciation of the
underlying debt security based upon the accumulative return of the
designated index.
<PAGE>
DERIVATIVES - The Company utilizes derivative financial instruments as part
of an overall interest rate risk management strategy. Derivative financial
instruments utilized by the Company include interest rate swaps, interest
rate caps, foreign currency swaps and equity linked notes. The Company does
not engage in trading of the instruments.
Derivative financial instruments involve, to varying degrees, elements of
credit and market risk which are not recognized on the statutory statement
of admitted assets, liabilities, and surplus. Credit risk is defined as the
possibility that a loss may occur from the failure of another party to
perform in accordance with the terms of the contract which exceeds the
value of existing collateral, if any. Market risk is the possibility that
future changes in market conditions may make the derivative financial
instrument less valuable. The Company evaluates the risk associated with
derivatives in much the same way as the risks with on-balance sheet
financial instruments. The derivative's risk of credit loss is generally a
small fraction of the notional value of the instrument and is represented
by the fair value of the derivative financial instrument. The Company
attempts to limit its credit risk by dealing with creditworthy
counterparties and obtaining collateral where appropriate.
Interest-rate swap transactions generally involve the exchange of fixed and
floating rate interest payment obligations without the exchange of the
underlying principal amount. Net settlement amounts are reported as
adjustments to interest income on an accrual basis over the life of the
swap agreement.
Interest-rate caps represent a right to receive the excess of a referenced
interest rate over a given rate. Interest-rate cap arrangements are stated
at amortized cost. Interest-rate caps are amortized and recorded as an
adjustment to net investment income over the life of the investment using
the effective interest method.
Foreign currency swaps are stated at market value. The differences between
the amounts paid or received on foreign currency swaps are reflected in the
statutory statements of income. The change in estimated fair value is
recorded as a change in unrealized gains (losses).
The Company also invests in equity linked notes that are stated at
amortized cost. These instruments pay interest based on a very modest (or
no) semi-annual or annual coupon rate and pay at maturity all principal
plus "contingent" interest based on a coupon rate equal to the percentage
increase in a designated index. If the index has declined over the term of
the note, no contingent interest is payable, but at maturity all principal
would nevertheless be payable. The designated index is typically linked to
the performance of a known stock index or basket of indices. Interest
income is accrued at the coupon rate while "contingent" interest is
recognized upon maturity.
SEPARATE ACCOUNTS - The assets of the separate accounts shown in the
statutory statements of admitted assets, liabilities, and surplus are
carried at fair value and consist primarily of common stocks, mutual funds
and commercial paper held by the Company for the benefit of certificate
holders under specific individual and group annuity contracts. Benefits
paid to separate account certificate holders are reflected in the statutory
statements of income, but are offset by transfers from the separate
accounts. The payment of such benefits and the earning of investment income
constitute the only significant activities in the separate accounts.
RECLASSIFICATIONS - Certain reclassifications have been made to the prior
year amounts to conform with current year presentation with no changes to
unassigned surplus or net income.
<PAGE>
2. INVESTMENTS
The cost or amortized cost, gross unrealized gains, gross unrealized losses
and estimated fair value of the Company's investment securities were as
follows:
<TABLE>
<CAPTION>
COST OR GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
AT DECEMBER 31, 1997:
<S> <C> <C> <C> <C>
U.S. Governments 58,738 1,010 43 59,705
States, territories and possessions 130 3 - 133
Political subdivisions 11,068 118 1 11,185
Mortgage-backed securities 281,614 7,452 258 288,808
Special revenue 60,518 3,453 4 63,967
Public utilities 428,968 25,627 151 454,444
Industrial and miscellaneous 4,392,543 161,013 26,560 4,526,996
Collateralized mortgage obligations 1,563,787 48,341 4,982 1,607,146
Credit-tenant loans 248,796 17,543 359 265,980
-------- ------- ---- -------
Total 7,046,162 264,560 32,358 7,278,364
========== ======== ======= =========
Bonds 6,921,762
Short-term investments 124,400
7,046,162
Preferred stocks 3,955 1,937 - 5,892
====== ====== == =====
Common stocks:
Affiliated 66,086 14,609 - 80,695
Unaffiliated 435 15,546 77 15,904
---- ------- --- ------
66,521 30,155 77 96,599
======= ======= === ======
<PAGE>
COST OR GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
AT DECEMBER 31, 1996:
U.S. Governments 53,506 303 975 52,834
States, territories and possessions 1,187 46 - 1,233
Political subdivisions 11,579 21 232 11,368
Mortgage backed securities 170,463 2,684 808 172,339
Special revenue 73,681 3,139 - 76,820
Public utilities 416,189 21,892 995 437,086
Industrial and miscellaneous 3,787,554 106,623 46,452 3,847,725
Collateralized mortgage obligations 1,541,893 29,372 16,816 1,554,449
Credit-tenant loans 277,025 10,186 2,557 284,654
-------- ------- ------ -------
Total 6,333,077 174,266 68,835 6,438,508
========== ======== ======= =========
Bonds 6,194,033
Short-term investments 139,044
6,333,077
Preferred stocks 2,967 1,899 - 4,866
====== ====== == =====
Common stocks:
Affiliated 66,086 7,514 - 73,600
Unaffiliated 61,054 74,540 2,402 133,192
------- ------- ------ -------
127,140 82,054 2,402 206,792
======== ======= ====== =======
</TABLE>
<PAGE>
The amortized cost and estimated fair value of debt securities at December
31, 1997, by contractual maturity, are shown below. Expected maturities
will differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
AMORTIZED ESTIMATED
COST FAIR VALUE
Due in one year or less 231,132 231,738
Due after one year through five years 1,431,804 1,457,094
Due after five years through ten years 1,300,236 1,339,306
Due after ten years 2,237,589 2,354,273
---------- ---------
5,200,761 5,382,411
Collateralized mortgage obligations
and mortgage backed
securities 1,845,400 1,895,953
---------- ---------
- -
7,046,161 7,278,364
The sources of net investment income were as follows:
1997 1996 1995
Bonds 501,101 439,884 388,690
Preferred stocks 399 399 399
Common stocks 449 1,789 27,756
Mortgage loans 70,469 87,035 96,891
Real estate 25,531 29,860 26,860
Policy loans 7,454 6,855 6,348
Short-term investments 4,658 7,339 6,665
Other (1,239) (2,732) (1,858)
------- ------- -------
608,822 570,429 551,751
Investment expense (25,194) (28,270) (29,424)
Amortization of interest maintenance reserve 3,852 4,475 3,919
------ ------ -----
587,480 546,634 526,246
======== ======== =======
<PAGE>
Gross realized gains and losses from investment securities consist of the
following:
NET
GROSS GROSS REALIZED
REALIZED REALIZED GAINS
GAINS LOSSES (LOSSES)
YEAR ENDED DECEMBER 31, 1997:
Bonds 8,304 5,237 3,067
Common stocks 64,382 4,130 60,252
Mortgage loans 1,520 5,318 (3,798)
Real estate 2,800 5,109 (2,309)
Derivative instruments 8 8,911 (8,903)
Other 24,572 48 24,524
------- --- ------
101,586 28,753 72,833
======== =======
Capital gains tax (25,411)
Net IMR capital losses 4,116
Net realized capital gains 51,538
YEAR ENDED DECEMBER 31, 1996:
Bonds 9,290 1,489 7,801
Common stocks 41,198 351 40,847
Mortgage loans 660 7,618 (6,958)
Real estate 2,690 2,949 (259)
Other 3,830 34 3,796
------ --- -----
57,668 12,441 45,227
======= =======
Capital gains tax (15,798)
Net IMR capital gains (5,968)
Net realized capital gains 23,461
YEAR ENDED DECEMBER 31, 1995:
Bonds 4,830 158 4,672
Common stocks 36,564 663 35,901
Mortgage loans 977 8,894 (7,917)
Real estate 1,804 8,041 (6,237)
Other 1,479 185 1,294
------ ---- -----
45,654 17,941 27,713
======= =======
Capital gains tax (9,665)
Net IMR capital gains (3,572)
Net realized capital gains 14,476
Proceeds from the sale of bonds were $265,701, $197,362 and $56,355 during
1997, 1996 and 1995, respectively.
The Company invests in mortgage loans collateralized principally by
commercial real estate. The maximum and minimum lending rates for mortgage
loans during 1997 ranged from 7.57% to 8.15%. The maximum percentage of any
one loan to the value of security at the time of the loan, exclusive of
insured, guaranteed or purchase money mortgages, was 75%. The estimated
fair value of the mortgage loan portfolio was approximately $625,176 and
$928,621 at December 31, 1997 and 1996, respectively.
<PAGE>
The Company's mortgage loans finance various types of commercial properties
throughout the United States. The geographic distributions of the mortgage
loans were as follows at December 31, 1997 and 1996:
1997 1996
California 51,109 87,778
Nebraska 34,435 53,118
Missouri 26,734 49,422
Indiana 23,145 49,004
Washington 31,426 44,615
All other states 420,564 630,940
-------- -------
587,413 914,877
The following table summarizes the non-performing and restructured mortgage
loans at December 31, 1997 and 1996:
1997 1996
Non-performing 7,145 8,917
Restructured - 13,501
-- ------
7,145 22,418
At December 31, 1997, securities with an amortized cost of $5,469 were on
deposit with government agencies as required by law in various
jurisdictions in which the Company conducts business.
The Company has a securities lending program whereby securities are loaned
to third parties, primarily major brokerage firms. Company policy requires
a minimum of 102% of the fair value of the loaned securities to be
separately maintained as collateral for the loans. The collateral is
recorded in memorandum records and is not reflected in the accompanying
statutory statements of admitted assets, liabilities and surplus. To
further minimize the credit risks related to this lending program, the
Company regularly monitors the financial condition of counterparties to
these agreements and also receives an indemnification from the financial
intermediary who structures the transactions.
3. DERIVATIVE FINANCIAL INSTRUMENTS
The Company enters into interest-rate swap agreements to manage
interest-rate exposure. The primary reason for the interest-rate swap
agreements is to modify the interest-rate sensitivities of certain
investments so that they are highly correlated with the interest-rate
sensitivities of certain insurance liabilities.
The Company also uses interest-rate caps to more effectively manage
interest-rate risk associated with single premium deferred annuity
contracts. This allows the Company to limit the risk associated with an
increase in interest rates.
The Company purchases corporate bonds in the foreign bond markets. These
bonds are typically issued by U.S. corporations and denominated in a
variety of currencies. These bonds, on occasion, are available for purchase
in the secondary market at attractive yields. The Company enters into
currency swaps simultaneous with its foreign currency bond purchases so
that all future foreign currency-denominated interest and principal
payments on such bonds are swapped with high quality counterparties at the
time of purchase for known amounts of U.S. dollars.
<PAGE>
The Company uses equity linked notes to more cost effectively diversify its
exposure to equity markets and as an asset replication instrument to match
the liabilities of certain group annuity contracts where the customer seeks
equity market participation. Equity linked notes help reduce the Company's
exposure to fluctuations in equity instruments by linking a substantial
portion of their expected total return to certain market indices while
preserving the invested principal.
During 1997 the Company terminated two interest rate swap transactions with
a combined notional amount of $200,000 at a cost of approximately $8,900.
This amount was charged to IMR in accordance with statutory accounting
principles. These swaps were replaced with four other interest-rate swap
agreements with a combined notional amount of $200,000. Terms of the new
interest-rate swaps allow for more frequent repricing of the variable paid
by the Company thereby reducing their exposure.
The following table summarizes the Company's derivative financial
instruments. Notional amounts are used on certain instruments to express
the volume of these transactions, but do not represent the much smaller
amounts potentially subject to credit risk.
<TABLE>
<CAPTION>
ESTIMATED
NOTIONAL STATEMENT FAIR YEAR(S) OF INTEREST RATE
AMOUNT VALUE VALUE MATURITY PAID RECEIVED
At December 31, 1997:
<S> <C> <C> <C> <C> <C> <C>
Interest-rate swaps 202,500 - 5,399 2002 - 2003 6.97 % 6.50 %
======== == ======
Interest-rate caps 470,000 3,269 14 2000 - 2002 - -
======== ====== ===
Foreign currency swaps 6,500 (268) (268) 1998 - -
====== ===== =====
Equity linked notes 101,000 4,721 41,226 2001 - 2016 - -
======== ====== =======
At December 31, 1996:
Interest-rate swaps 202,500 - (9,259)1999 - 2003 8.45 % 6.24 %
======== == =======
Interest-rate caps 320,000 2,739 1,883 2000 - 2001 - -
======== ====== ======
Foreign currency swaps 21,503 (10,401) (10,401)1997 - 1998 - -
======= ======== ========
Equity linked notes 109,925 5,902 41,289 1997 - 2016 - -
======== ====== =======
</TABLE>
The Company has considerable experience in evaluating and managing credit
risk. Each issuer or counterparty is extensively reviewed to evaluate its
financial stability before entering into each agreement and throughout the
period that the financial instrument is owned.
The Company has commitments to fund bond investments of approximately
$60,900 and mortgage loans of approximately $1,900 as of December 31, 1997.
These commitments are legally binding and have fixed expiration dates or
other termination clauses that may require a payment of a fee. In the event
that the financial condition of a borrower deteriorates materially, the
commitment may be terminated. Since some of the commitments may expire or
terminate, the total commitments do not necessarily represent future
liquidity requirements.
4. FEDERAL INCOME TAXES
The provision for federal income taxes reflects an effective income tax
rate which differs from the prevailing federal income tax rate primarily as
a result of income and expense recognition differences between statutory
and income tax reporting. The major differences include capitalization and
amortization of certain policy acquisition amounts for tax purposes,
different methods for determining statutory and tax insurance reserves,
timing of the recognition of market discount on bonds and certain accrued
expenses, and the acceleration of depreciation for tax purposes.
<PAGE>
The Company's tax returns have been examined by the Internal Revenue
Service (IRS) through 1992. The Company is currently appealing certain
adjustments proposed by the IRS for tax years 1987 through 1992. The tax
returns for 1993 through 1995 are currently under examination. Management
believes the results of these examinations will have no material impact on
the Company's statutory financial statements.
Under federal income tax law prior to 1984, the Company accumulated
approximately $31,615 of deferred taxable income which could become subject
to income taxes in the future under certain conditions. Management believes
the chance that those conditions will exist is remote.
5. RETIREMENT BENEFITS
The Company participates with affiliated companies in a noncontributory
defined benefit plan covering all United States employees meeting certain
minimum requirements. Mutual of Omaha and certain subsidiaries
(collectively referred to as the Companies) generally make annual
contributions to the plan in an amount between the minimum ERISA required
contribution and the maximum tax deductible contribution. Funds for the
plan are held in the general and separate accounts of the Company under a
group annuity contract and in domestic equity and international common
stock funds.
Information regarding accrued benefits and net assets has not been
determined on an individual company basis. The Company's allocation of
salary expense was approximately 30% of the total Companies' salary expense
in 1997, and approximately 28% in 1996 and 1995. The Companies expensed
contributions of $7,972, $12,152 and $9,115 in 1997, 1996 and 1995,
respectively. During 1996, the Companies changed mortality tables from 1971
group annuity mortality table to the 1983 group annuity mortality table. As
a result of the table change, the actuarial present value of accrued
benefits as of January 1, 1996, increased by $21,637. The Companies made an
additional contribution of $21,637 and recorded it net of federal income
taxes of $7,573 as a direct charge to surplus.
The plan was amended effective January 1, 1997 to include a Postretirement
Medical 401(h) Account for the funding of certain postretirement medical
benefits provided by the Companies. In September 1997, the Companies
contributed approximately $2,600 to this account.
A comparison of accrued benefits and net assets for the entire plan as of
January 1, 1997 and 1996 follows:
1997 1996
Actuarial present value of accrued benefits:
Vested 380,495 352,736
Nonvested 2,204 4,036
------ -----
382,699 356,772
Net assets available for benefits 369,871 324,925
======== =======
Assumptions:
Annual investment return 9.00 % 9.00 %
Mortality table 1983 GAM 1983 GAM
Discount rate 7.37 % 7.62 %
<PAGE>
The Companies also have the Mutual of Omaha 401(k) Long-Term Savings Plan
covering all United States employees who have completed one year of service
and have reached their 21st birthday. Participants may elect to contribute
1% to 16% of their salary annually subject to plan and IRS limitations. The
Companies match at least 25% of the first 6% of the contributions made by
each participant. The Companies match up to an additional 75% of the first
6% of the contributions made by each participant if certain company-wide
performance measures are met. Contributions by the Companies were $8,428,
$5,600 and $5,775 in 1997, 1996 and 1995, respectively.
The Companies provide certain postretirement medical and life insurance
benefits. The Companies subsidize these benefits with certain limitations
to retirees and eligible employee groups. Employees retiring on or before
December 31, 1997, were eligible for the full subsidy if they were at least
age 55 with at least 10 years of service and 10 years of continuous
coverage under one of the Companies' health plans. Employees retiring after
December 31, 1997, must be at least age 60 with at least 15 years of
service and 15 years of continuous coverage under one of the Companies'
health plans. Employees hired on or after January 1, 1995, are not eligible
for a subsidy. The cost of these postretirement benefits is allocated to
the Companies based on an actuarial valuation. The Companies use the
accrual method of accounting for postretirement benefits and elected to
amortize the original transition obligation over 20 years. During the year
ended December 31, 1997, liabilities of $7,027 that were previously
recorded by the Company and certain affiliates for postretirement benefits,
were paid to Mutual of Omaha.
The following table compares the accumulated benefit obligation and the
accrued liability for the Companies' postretirement benefits at December
31, 1997 and 1996:
1997 1996
Accumulated postretirement benefits obligation:
Fully eligible actives 9,695 8,008
Retirees 76,208 76,136
------- ------
85,903 84,144
Plan assets in Postretirement Medical 401(h) Account (2,713)
Unrecognized transition obligation (60,275) (64,294)
Unrecognized gain 9,459 7,928
------ -----
Total accrued postretirement benefit liability 32,374 27,778
======= ======
Assumptions:
Discount rate 7.25 % 7.50 %
Health care cost trend rate:
First year 5.00 % 8.50 %
Ultimate 5.00 % 5.00 %
Grading period - 8 years
The Companies' net periodic postretirement benefit costs include the
following components:
997 1996 1995
Eligibility costs 1,598 1,385 1,654
Interest costs 5,986 5,909 5,567
Net amortization and deferral 55 - (683)
Amortization of transition obligation 4,018 4,018 4,101
Return on assets (55) - -
---- - -
Total benefit costs 11,602 11,312 10,639
======= ====== ======
<PAGE>
The health care cost trend rate assumption has a significant effect on the
amounts reported. To illustrate, increasing the assumed health care cost
trend rate by one percentage point in each year would increase the
Companies' accumulated postretirement benefits obligation as of December
31, 1997, by approximately $6,200 and the estimated eligibility cost and
interest cost components of the net periodic postretirement benefit costs
for 1997 by approximately $800.
6. RELATED PARTY TRANSACTIONS
The home office properties are occupied jointly by the Company, Mutual of
Omaha and certain affiliates. Because of this relationship, the Companies
incur joint operating expenses subject to allocation. Management believes
the method of allocating such expenses is fair and reasonable.
The Company received management and administrative service fees from
MOSSCO-NY and MOSSCO-CT of $106 for the year ended December 31, 1997 and
$349 and $151 from MOSSCO-NE, MOSSCO-NY and MOSSCO-CT for the years ended
December 31, 1996 and 1995, respectively.
The Company paid $427, $444 and $543 during 1997, 1996 and 1995,
respectively, to Kirkpatrick, Pettis, Smith, Polian, Inc., an affiliate,
for equity investment management services. In addition, the Company paid
assignment fees of $165 to MOSSCO-NY and MOSSCO-CT for the year ended
December 31, 1997 and $439 and $361 to MOSSCO-NE, MOSSCO-NY and MOSSCO-CT
for the years ended December 31, 1996 and 1995, respectively.
On January 2, 1996, the Company sold 7,580 shares of First National of
Nebraska, Inc. common stock to Mutual of Omaha for $27,667. The share price
was determined by the stock's publicly traded market value at the date of
the transaction. The Company recognized a realized gain of $27,632 and
related federal income taxes were $9,671.
Under the terms of a reinsurance treaty effected June 1, 1955, all health
and accident insurance written by the Company is ceded to Mutual of Omaha.
The operating results of certain lines of group health and accident and
life insurance are shared equally by the Company and Mutual of Omaha. The
amounts ceded by the Company and included in the statutory statements of
admitted assets, liabilities and surplus were as follows:
1997 1996
Aggregate reserve for policies and contracts 92,276 88,332
======= ======
Policy and contract claims 92,555 104,874
======= =======
The amounts ceded by the Company and included in the statutory statements
of income were as follows:
1997 1996 1995
Premium considerations 378,854 368,126 395,014
======== ======= =======
Policyholder and beneficiary benefits 286,033 273,576 309,876
======== ======= =======
Group reinsurance settlement expense (10,405) (2,818) 5,354
======== ======= =======
<PAGE>
The Company also assumes group and individual life insurance from
Companion. In 1997, the Company entered into a coinsurance treaty with
Companion relating to bank annuity business in which Companion cedes 75% of
the related premiums to the Company and the Company pays 75% of the related
benefits. The total amounts assumed by the Company relating to the treaties
with Companion and included in the statutory statements of admitted assets,
liabilities and surplus were as follows:
1997 1996
Aggregate reserve for policies and contracts 30,498 3,749
======= =====
Policy and contract claims 2,370 2,125
====== =====
The amounts ceded by the Company and included in the statutory statements
of income were as follows:
1997 1996 1995
Premium considerations $ 31,343 $ 2,668 $ 4,268
========= ======= =======
Policyholder and beneficiary benefits $ 3,151 $ 2,390 $ 3,061
======== ======= =======
7. REINSURANCE
In the normal course of business, the Company assumes and cedes insurance
business. The ceding of insurance business does not discharge an insurer
from its primary legal liability to a policyholder. The Company remains
liable to the extent that a reinsurer is unable to meet its obligations.
The reconciliation of total premiums to net premiums is as follows:
1997 1996 1995
Direct 1,541,126 1,641,295 1,658,506
Assumed 54,892 26,581 27,496
Ceded (408,914) (382,369) (407,613)
--------- --------- ---------
Net 1,187,104 1,285,507 1,278,389
========== ========== =========
8. CREDIT ARRANGEMENTS
The Company and Mutual of Omaha are authorized by their Boards of Directors
to borrow a maximum of $75,000 on a joint basis under certain lines of
credit. At December 31, 1997, the Company had no outstanding borrowings
against its uncommitted, uncollateralized revolving lines of credit.
Interest rates applicable to borrowings under lines of credit are
negotiated with the lender at the time of borrowing.
9. CONTINGENT LIABILITIES
Various lawsuits have arisen in the ordinary course of the Company's
business. The Company believes that its defenses are meritorious and the
eventual outcome of those lawsuits will not have a material effect on the
Company's financial position.
<PAGE>
10. DEPOSIT FUNDS
The estimated fair value and statement value of guaranteed investment and
select maturity contracts were:
1997 1996
Estimated fair value 1,118,746 1,200,031
========== =========
Statement value 1,119,540 1,247,546
========== =========
Fair values of liabilities under all insurance contracts are taken into
consideration in the Company's overall management of interest-rate risk,
which minimizes exposure to changing interest rates through the matching of
investment maturities with amounts due under insurance contracts.
At December 31, 1997 and 1996, the Company held annuity reserves and
deposit fund liabilities of $1,256,277 and $1,092,555, respectively, that
were subject to discretionary withdrawal at book value with a surrender
charge of less than 5%.
11. STOCKHOLDER DIVIDENDS
Regulatory restrictions limit the amount of dividends available for
distribution without prior approval of regulatory authorities. The maximum
amount of dividends which can be paid to the stockholder without prior
approval of the Director of Insurance of the State of Nebraska is the
greater of 10% of the insurer's surplus as of the previous December 31 or
net gain from operations for the previous twelve month period ending
December 31. Based upon these restrictions, the Company is permitted a
maximum dividend distribution of $57,907 in 1998.
12. BUSINESS RISKS
The Company is subject to regulation by state insurance departments and
undergoes periodic examinations by those departments. The following is a
description of the most significant risks facing life and health insurers
and how the Company manages those risks:
LEGAL/REGULATORY RISK is the risk that changes in the legal or regulatory
environment in which an insurer operates will occur and create additional
costs or expenses not anticipated by the insurer in pricing its products.
The Company mitigates this risk by operating throughout the United
States, thus reducing its exposure to any single jurisdiction, and by
diversifying its products.
CREDIT RISK is the risk that issuers of securities owned by the Company
will default, or that other parties, including reinsurers which owe the
Company money, will not pay. The Company minimizes this risk by adhering
to a conservative investment strategy and by maintaining sound
reinsurance, credit and collection policies.
INTEREST-RATE RISK is the risk that interest rates will change and cause
a decrease in the value of an insurer's investments. The Company
mitigates this risk by attempting to match the maturity schedule of its
assets with the expected payouts of its liabilities. To the extent that
liabilities come due more quickly than assets mature, the Company may
have to sell assets prior to maturity and recognize a gain or loss.
<PAGE>
13. EXPENSE REALIGNMENT COSTS
In March 1996, the Companies announced the elimination of approximately
1,000 positions as a part of the initiative to reduce operating costs 15%
by the end of 1997. The Companies incurred approximately $13,400 and
$27,300 of severance and related costs, consulting fees and other one-time
costs associated with expense realignment activities during 1997 and 1996,
respectively.
<PAGE>
UNITED OF OMAHA
SEPARATE ACCOUNT C
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT AS OF
DECEMBER 31, 1997 AND FOR THE TWO YEARS
ENDED DECEMBER 31, 1997 AND 1996
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
United of Omaha Life Insurance Company
We have audited the accompanying statement of net assets of United of Omaha
Separate Account C as of December 31, 1997, and the related statements of
operations and changes in net assets for the years ended December 31, 1997 and
1996. Our responsibility is to express an opinion on these financial statements
based on our audits. The financial statements are the responsibility of the
Company's management.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of United of Omaha Separate
Account C as of December 31, 1997, and the results of its operations and changes
in its net assets for the two years ended December 31, 1997 and 1996 in
conformity with generally accepted accounting principles.
March 23, 1998
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
DECEMBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES I
----------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
------------------------------- ------------------ ------------------------------
NEW LIMITED
ASSET INDEX MONEY AMERICA EQUITY TERM
ASSETS GROWTH MANAGER 500 MARKET BOND INTERN. GROWTH INCOME BOND
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio shares, at cost 829,244 546,027 308,319 118,421 312,990 564,853 423,054 481,634 62,764
======== ======== ======= ======= ========= ======= ======== ====== ======
Investments in portfolio shares, at market value 945,705 638,955 425,808 118,421 324,479 564,996 553,536 596,540 63,297
-------- -------- ------- ------- --------- -------- -------- ----- ------
Net assets 945,705 638,955 425,808 118,421 324,479 564,996 553,536 596,540 63,297
======== ======== ======= ====== ========= ======= ========= ====== ======
Accumulation units outstanding 49,383 42,522 19,599 104,050 25,593 45,421 26,178 29,193 5,363
======= ======= ====== ======== ======= ======= ======= ====== =====
Net asset value per unit 19.15 15.03 21.73 1.14 12.68 12.44 21.15 20.43 11.80
====== ====== ===== ===== ====== ====== ====== ===== =====
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIDELITY SCUDDER
-------------------------------------------------- --------------------------------------
MANAGER: EQUITY INDEX GLOBAL GROWTH &
ASSETS NTRAFUND GROWTH INCOME 500 INTERNATIONAL DISCOVERY INCOME
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio shares,
at cost 2,884,002 36,998,700 49,862,083 9,670,798 29,355,974 2,207,423 6,576,048
========== =========== =========== ========== =========== ========== ==========
Investments in portfolio shares,
at market value 1,636,492 45,351,872 58,464,437 10,087,352 31,101,079 2,228,106 6,846,075
---------- ----------- ----------- ----------- ----------- ---------- ----------
Net assets 1,636,492 45,351,872 58,464,437 10,087,352 31,101,079 2,228,106 6,846,075
========== =========== =========== =========== =========== ========== ==========
Accumulation units outstanding 2,992,115 2,748,520 3,528,096 829,118 2,391,655 194,110 561,594
========== ========== ========== ======== ========== ======== ========
Net asset value per unit $ 17.26 $ 16.50 $ 16.57 $ 12.17 $ 13.00 $ 11.48 $ 12.19
======== ======== ======== ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
SERIES V
-----------------------------------------------------------------------------------------------------------
T. ROWE PRICE ALGER FEDERATED
---------------------------------------------------------------- ---------------------- -----------------
NEW PERSONAL LIMITED AMERICAN PRIME U.S.
AMERICA STRATEGY EQUITY TERM SMALL AMERICAN MONEY GOVERNMENT
ASSETS GROWTH BALANCED INCOME INTERNATIONAL BOND APITALIZATION GROWTH FUND II SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio
shares, at cost 24,739,664 37,022,536 57,385,528 34,785,818 14,407,620 26,276,202 25,898,601 21,386,283 20,399,555
=========== =========== =========== =========== ========== =========== ========== =========== ==========
Investments in portfolio
shares, at
market value 29,666,686 41,428,123 67,084,455 34,855,396 14,536,276 27,677,690 31,156,165 21,386,283 21,301,847
----------- ----------- ----------- ----------- ---------- ----------- ---------- ----------- ----------
Net assets 29,666,686 41,428,123 67,084,455 34,855,396 14,536,276 27,677,690 31,156,165 21,386,283 21,301,847
=========== =========== =========== =========== ========== =========== ========== =========== ==========
Accumulation units
outstanding 1,599,824 2,792,934 3,837,388 2,857,269 1,302,580 2,021,476 1,918,481 19,485,024 1,824,790
========== ========== ========== ========== ========= ========== ========= =========== =========
Net asset value per unit $ 18.54 $ 14.83 $ 17.48 12.20 $ 11.16 $ 13.69 $ 16.24 $ 1.10 $ 11.67
======= ======= ======== ======== ======== ======== ======= ======= =======
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES V
---------------------------------------------------------------------------------------
MFS PIONEER
--------------------------------------------------------------------------------
HIGH
WORLD VALUE INCOME EMERGING REAL CAPITAL
ASSETS GOVERNMENT SERIES FUND RESEARCH GROWTH ESTATE GROWTH TOTAL
Investments in portfolio shares,
at cost 13,351,071 3,879,074 21,332,892 36,056,371 41,584,978 5,004,526 4,470,845 569,183,898
=========== ========== =========== ========== =========== ========== ========== ===========
Investments in portfolio shares,
at market value 13,397,416 3,621,584 22,415,278 41,154,486 46,926,255 5,241,177 4,513,971 636,310,238
----------- ---------- ----------- ---------- ----------- ---------- ---------- -----------
Net assets 13,397,416 3,621,584 22,415,278 41,154,486 46,926,255 5,241,177 4,513,971 636,310,238
=========== ========== =========== ========== =========== ========== ========== ===========
Accumulation units outstanding 1,302,843 292,197 1,729,635 2,608,735 2,890,806 428,572 383,956
========== ======== ========== ========= ========== ======== =======
Net asset value per unit $ 10.28 $ 12.39 $ 12.96 $ 15.78 $ 16.23 $ 12.23 $ 11.76
======== ======== ======== ======== ======== ======== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES I
----------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
-------------------------------- ---------------- ----------------------------------
NEW LIMITED
ASSET INDEX MONEY AMERICA EQUITY TERM
1997 GROWTH MANAGER 500 MARKET BOND INTERN. GROWTH INCOME BOND
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividends and capital gain distributions 28,533 61,409 11,589 5,069 20,453 12,584 1,295 30,857 4,337
Expense:
Mortality risk charges (10,875) (7,248) (4,933) (1,253) (3,987) (8,242) (6,326) (6,631) (917)
Administrative expenses (1,298) (865) (589) (150) (476) (983) (755) (791) (110)
------- ----- ----- ----- ----- ----- ----- ----- -----
Net investment income (expense) 16,360 53,296 6,067 3,666 15,990 3,359 (5,786) 23,435 3,310
------- ------- ------ ------ ------- ------ ------- ------- -----
Gains (losses) on investments:
Net realized gains (losses) 77,035 8,473 29,983 - 735 47,137 15,634 30,791 (778)
Net change in unrealized gains (losses) 74,772 37,964 69,782 - 6,591 (50,959) 82,137 72,058 936
------- ------- ------- -- ------ -------- ------- ------- ---
Net gains (losses) on investments 151,807 46,437 99,765 - 7,326 (3,822) 97,771 102,849 158
-------- ------- ------- -- ------ ------- ------- -------- ---
Increase (decrease) in net assets from
operations 168,167 99,733 105,832 3,666 23,316 (463) 91,985 126,284 3,468
======== ======= ======== ====== ======= ===== ======= ======== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES V
-------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
---------------------------------------------- ------------------------------------------------
ASSET NEW PERSONAL
MANAGER: EQUITY INDEX GLOBAL GROWTH & AMERICA sTRATEGY
1997 (CONTINUED) CONTRAFUND GROWTH INCOME 500 INTERN. DISCOVERY INCOME GROWTH BALANCED
Investment income:
Dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C>
distributions 833,552 37,343 3,268,324 - 415,666 - 36,878 69,250 1,697,950
Expense:
Mortality risk charges (387,501) (352,850) (443,565) (27,602) (230,224) (8,930) (21,066) (227,567) (319,689)
Administrative expenses (77,191) (70,288) (88,359) (5,487) (45,860) (1,779) (4,197) (45,331) (63,683)
-------- -------- -------- ------- -------- ------- ------- -------- --------
Net investment income
(expense) 368,860 (385,795) 2,736,400 (33,089) 139,582 (10,709) 11,615 (203,648) 1,314,578
-------- --------- ---------- -------- -------- -------- ------- --------- ----------
Gains (losses) on investments:
Net realized gains 629,484 365,565 655,557 17,387 264,676 21,330 20,076 221,401 100,725
Net change in unrealized gains 6,710,488 7,280,611 6,572,810 416,554 799,404 20,683 270,027 4,398,725 3,522,132
---------- ---------- ---------- -------- -------- ------- -------- ---------- ----------
Net gains on investments7,339,972 7,646,176 7,228,367 433,941 1,064,080 42,013 290,103 4,620,126 3,622,857
---------- ---------- ---------- -------- ---------- ------- -------- ---------- ----------
Increase in net assets from oper. 7,708,832 7,260,381 9,964,767 400,852 1,203,662 31,304 301,718 4,416,478 4,937,435
========== ========== ========== ======== ========== ======= ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------------
SERIES V
--------------------------------------------------------------------------------------
T. ROWE PRICE ALGER FEDERATED
------------------------------- -------------------------- ------------------------
LIMITED AMERICAN PRIME U.S.
EQUITY TERM SMALL AMERICAN MONEY GOVERNMENT
1997 (CONTINUED) INCOME INTERNATIONAL BOND APITALIZATION GROWTH FUND II SECURITIES
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividends and capital gain distributions 3,148,705 780,803 591,649 838,472 220,950 1,163,294 579,257
Expense:
Mortality risk charges (464,582) (315,794) (100,026) (232,871) (253,653) (241,854) (166,080)
Administrative expenses (92,545) (62,907) (19,925) (46,388) (50,528) (48,178) (33,084)
-------- -------- -------- -------- -------- -------- -------
Net investment income (expense) 2,591,578 402,102 471,698 559,213 (83,231) 873,262 380,093
---------- -------- -------- -------- -------- -------- -------
Gains (losses) on investments:
Net realized gains (losses) 389,805 751,583 (20,027) 165,014 561,387 - 38,905
Net change in unrealized gains (losses) 8,011,281 (979,177) 117,407 1,643,596 4,429,566 - 817,166
---------- --------- -------- ---------- ---------- -- -------
Net gains (losses) on investments8,401,086 (227,594) 97,380 1,808,610 4,990,953 - 856,071
---------- --------- ------- ---------- ---------- -- -------
Increase in net assets from operations 10,992,664 174,508 569,078 2,367,823 4,907,722 873,262 1,236,164
=========== ======== ======== ========== ========== ======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
SERIES V
-------------------------------------------------------------------------
PIONEER
------------------------------------------------------- --------------------
HIGH
WORLD VALUE INCOME EMERGING REAL CAPITAL
1997 (CONTINUED) GOVERNMENT SERIES FUND RESEARCH GROWTH ESTATE GROWTH TOTAL
Investment income:
<S> <C> <C> <C> <C> <C>
Dividends and capital gain distributions 229,599 466,662 - - - 73,322 3,234 14,631,036
Expense:
Mortality risk charges (110,782) (10,528) (171,729) (308,011) (396,905) (14,804) (12,367) (4,869,392)
Administrative expenses (22,068) (2,097) (34,208) (61,356) (79,064) (2,949) (2,464) (965,953)
-------- ------- -------- -------- -------- ------- ------- ---------
Net investment income (expense) 96,749 454,037 (205,937) (369,367) (475,969) 55,569 (11,597) 8,795,691
------- -------- --------- --------- --------- ------- -------- ---------
Gains (losses) on investments:
Net realized gains 20,167 4,244 1,241,723 1,073,282 1,843,154 48,987 1,476 8,624,911
Net change in unrealized gains (losses) (302,708) (257,490) 1,013,285 4,051,206 5,506,481 236,651 43,126 54,615,105
--------- --------- ---------- ---------- ---------- -------- ------- ----------
Net gains (losses) on investments (282,541) (253,246) 2,255,008 5,124,488 7,349,635 285,638 44,602 63,240,016
--------- --------- ---------- ---------- ---------- -------- ------- ----------
Increase (decrease) in net assets from operati (185,792) 200,791 2,049,071 4,755,121 6,873,666 341,207 33,005 72,035,707
========= ======== ========== ========== ========== ======== ======= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
ASSET INDEX MONEY AMERICA EQUITY TERM
1996 GROWTH MANAGER 500 MARKET BOND INTERN. GROWTH INCOME BOND
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividends and capital gain distributions 50,482 30,416 15,604 8,123 31,760 15,596 14,802 18,036 7,624
Expense:
Mortality risk charges (9,616) (6,222) (4,774) (2,104) (4,272) (8,716) (5,889) (6,270) (1,651)
Administrative expenses (1,148) (742) (570) (250) (510) (1,030) (702) (748) (197)
------- ----- ----- ----- ----- ------- ----- ----- -----
Net investment income 39,718 23,452 10,260 5,769 26,978 5,850 8,211 11,018 5,776
------- ------- ------- ------ ------- ------ ------ ------- -----
Gains (losses) on investments:
Net realized gains (losses) 63,433 28,483 65,211 - (6,984) 74,996 94,845 85,226 (1,281)
Net change in unrealized gains (losses) (14,264) 9,046 (1,854) - (13,389) 5,222 (26,737) (10,984) (3,493)
-------- ------ ------- -- -------- ------ -------- -------- -------
Net gains (losses) on investments 49,169 37,529 63,357 - (20,373) 80,218 68,108 74,242 (4,774)
------- ------- ------- -- -------- ------- ------- ------- -------
Increase in net assets from operations 88,887 60,981 73,617 5,769 6,605 86,068 76,319 85,260 1,002
======= ======= ======= ====== ====== ======= ======= ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES V
-----------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
------------------------------------- ------------- -----------------------------------------------
ASSET NEW PERSONAL LIMITED
MANAGER: EQUITY AMERICA STRATEGY EQUITY TERM
1996 (CONTINUED) CONTRAFUND GROWTH INCOME INTERNATIONAL GROWTH BALANCED INCOME INTERN. BOND
Investment income:
Dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
distributions 28,266 962,332 198,092 90,929 136,780 756,282 533,897 279,801 186,164
Expense:
Mortality risk charges (135,430) (106,908) (160,191) (90,700) (64,320) (99,611) (116,970) (109,197) (32,180)
Administrative expenses (26,978) (21,296) (31,910) (18,067) (12,813) (19,843) (23,300) (21,752) (6,410)
-------- -------- -------- -------- -------- -------- -------- -------- -------
Net investment income
(expense) (134,142) 834,128 5,991 (17,838) 59,647 636,828 393,627 148,852 147,574
--------- -------- ------ -------- ------- -------- -------- -------- -------
Gains (losses) on investments:
Net realized gains (losses) 853,257 26,270 66,968 142,614 270,938 71,841 139,631 211,865 (8,394)
Net change in unrealized gains 2,043,475 1,113,958 1,952,736 931,966 501,079 849,854 1,630,152 998,543 7,327
---------- ---------- ---------- -------- -------- -------- ---------- -------- -----
Net gains (losses) on
investments 2,896,732 1,140,228 2,019,704 1,074,580 772,017 921,695 1,769,783 1,210,408 (1,067)
---------- ---------- ---------- ---------- -------- -------- ---------- ---------- -------
Increase in net assets from oper. 2,762,590 1,974,356 2,025,695 1,056,742 831,664 1,558,523 2,163,410 1,359,260 146,507
========== ========== ========== ========== ================== ========== ========== =======
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES V
----------------------------------------------------------------------------------------------------
ALGER FEDERATED MFS
------------------------- ---------------------- -----------------------------------------------
AMERICAN PRIME U.S. HIGH
SMALL AMERICAN MONEY GOVERNMENT WORLD INCOME EMERGING
1996 (CONTINUED) CAPITALIZ. GROWTH FUND II SECURITIES GOVERNMENT FUND RESEARCH GROWTH TOTAL
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividends and capital gain
distributions 32,685 209,881 648,902 383,899 - 540,303 256,668 208,228 5,645,552
Expense:
Mortality risk charges (104,230) (94,179) (140,860) (64,766) (49,278) (59,294) (79,687) (127,116) (1,684,431)
Administrative expenses (18,557) (19,041) (28,060) (12,901) (9,816) (11,812) (15,874) (25,322) (329,649)
-------- -------- -------- -------- ------- -------- -------- -------- ---------
Net investment
income (expense) (90,102) 96,661 479,982 306,232 (59,094) 469,197 161,107 55,790 3,631,472
-------- ------- -------- -------- -------- -------- -------- ------- ---------
Gains (losses) on investments:
Net realized gains (losses) 74,642 14,309 - (49,646) (67,457) 152,606 214,289 774,322 3,291,984
Net change in unrealized gains
(losses) (226,324) 829,801 - 73,418 391,014 75,136 1,023,212 (182,142) 11,956,752
--------- -------- -- ------- -------- ------- ---------- --------- ----------
Net gains (losses) on
investments (151,682) 844,110 - 23,772 323,557 227,742 1,237,501 592,180 15,248,736
--------- -------- -- ------- -------- -------- ---------- -------- ----------
Increase (decrease) in net assets
from oper. (241,784) 940,771 479,982 330,004 264,463 696,939 1,398,608 647,970 18,880,208
========= ======== ======== ======== ======== ======== ========== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
- ---------------------------------------------------------------------------------------------------------------------------------
SERIES I
----------------------------------------------------------------------------------------
FIDELITY SCUDDER
------------------------------------------ ----------------------------
ASSET INDEX MONEY
1997 GROWTH MANAGER 500 MARKET BOND
From operations:
<S> <C> <C> <C> <C> <C>
Net investment incom
expenses 16,360 53,296 6,067 3,666 15,990
Net realized gains (77,035) 8,473 29,983 - 735
Net change in unrealized
gains 74,772 (lo37,964 69,782 - 6,591
------ ------- ------- -- ------
168,167 99,733 105,832 3,666 23,316
-------- ------- -------- ------ -------
From policyowner transactions:
Policy purchases 196,856 84,933 6,287 635,356 102,548
Policy withdrawals(282,373) (47,931) (78,917) (543,406) (205,263)
--------- -------- -------- --------- ---------
(85,517) 37,002 (72,630) 91,950 (102,715)
-------- ------- -------- ------- ---------
Increase (decrease) in
assets 82,650 136,735 33,202 95,616 (79,399)
Net assets, beginning863,055 502,220 392,606 22,805 403,878
------- -------- -------- ------- --------
Net assets, end of
year 945,705 638,955 425,808 118,421 324,479
======== ======== ======== ======== ========
Accumulation unit
purchase 11,390 6,364 316 558,453 8,629
Accumulation unit
withdrawals (16,881) (3,599) (4,351) (475,143) (17,294)
-------- ------- ------- --------- --------
Net increase (decrease
in units outstanding (5,491) 2,765 (4,035) 83,310 (8,665)
Units outstanding,
beginning of year 54,874 39,757 23,634 20,740 34,258
------ ------- ------- ------- -------
Units outstanding,
end of year 49,383 42,522 19,599 104,050 25,593
====== ======= ======= ======== =======
------------------------------------------------------------
T. ROWE PRICE
--------------------------------------------------------
NEW LIMITED
AMERICA EQUITY TERM
INTERNATIONAL GROWTH INCOME BOND
<C> <C> <C> <C>
$ 3,359.00 $ (5,786.00) $ 23,435.00 $ 3,310.00
47,137.00 15,634.00 30,791.00 (778.00
(50,959.00) 82,137.00 72,058.00 936.00
----------- ---------- ---------- ------
(463.00) 91,985.00 126,284.00 3,468.00
-------- ---------- ----------- --------
240,931.00 31,103.00 101,705.00 4,401.00
(456,332.00) (66,700.00) (178,913.00) (34,960.00
------------ ----------- ------------ ----------
(215,401.00) (35,597.00) (77,208.00) (30,559.00
------------ ----------- ----------- ----------
(215,864.00) 56,388.00 49,076.00 (27,091.00
780,860.00 497,148.00 547,464.00 90,388.00
----------- ----------- ----------- ---------
$ 564,996.00 $ 553,536.00 $ 596,540.00 $ 63,297.00
============= ============= ============= ===========
18,532.00 1,743.00 5,558.00 385.00
(36,915.00) (3,634.00) (10,394.00) (3,081.00
----------- ---------- ----------- ---------
(18,383.00) (1,891.00) (4,836.00) (2,696.00
63,804.00 28,069.00 34,029.00 8,059.00
---------- ---------- ---------- --------
45,421.00 26,178.00 29,193.00 5,363.00
========== ========== ========== ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
Series I
Fidelity Scudder T. Rowe Price
New Limited
Asset Index Money America Equity Term
1997 Growth Manager 500 Market Bond InternatioGrowth Income Bond
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net invest$16,360ome$53,296se) $6,067 $3,666 $15,990 $3,359 ($5,786) $23,435 $3,310
Net realized77,035 (los8,473 29,983 - 735 47,137 15,634 30,791 -778
Net change i74,772aliz37,964ns (l69,782 - 6,591 -50,959 82,137 72,058 936
168,167 99,733 105,832 3,666 23,316 -463 91,985 126,284 3,468
From policyowner transactions:
Policy purc196,856 84,933 6,287 635,356 102,548 240,931 31,103 101,705 4,401
Policy wit-282,373 -47,931 -78,917 -543,406 -205,263 -456,332 -66,700 -178,913 -34,960
-85,517 37,002 -72,630 91,950 -102,715 -215,401 -35,597 -77,208 -30,559
Increase (decr82,650in 136,735ets 33,202 95,616 -79,399 -215,864 56,388 49,076 -27,091
Net assets, b863,055g o502,220 392,606 22,805 403,878 780,860 497,148 547,464 90,388
Net assets, $945,705ea$638,955 $425,808 $118,421 $324,479 $564,996 $553,536 $596,540 $63,297
Accumulation u11,390rchas6,364 316 558,453 8,629 18,532 1,743 5,558 385
Accumulation -16,881thdr-3,599 -4,351 -475,143 -17,294 -36,915 -3,634 -10,394 -3,081
Net increase (-5,491se) i2,765ts ou-4,035ing 83,310 -8,665 -18,383 -1,891 -4,836 -2,696
Units outstand54,874egin39,757f yea23,634 20,740 34,258 63,804 28,069 34,029 8,059
Units outstand49,383nd o42,522 19,599 104,050 25,593 45,421 26,178 29,193 5,363
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
SERIES V
-----------------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
---------------------------------------- --------------------------------------- ------------------------
ASSET NEW PERSONAL
MANAGER: EQUITY INDEX GLOBAL ROWTH & AMERICA TRATEGY
1997 (CONTINUED) ONTRAFUND GROWTH INCOME 500 INTERNATIONAL DISCOVERY INCOME GROWTH ALANCED
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income
(expense) 368,860 (385,795) 2,736,400 (33,089) 139,582 (10,709) 11,615 (203,648) 1,314,578
Net realized gains 629,484 365,565 655,557 17,387 264,676 21,330 20,076 221,401 100,725
Net change in
unrealized gains 6,710,488 7,280,611 6,572,810 416,554 799,404 20,683 270,027 4,398,725 3,522,132
---------- ---------- ---------- -------- -------- ------- -------- ---------- ----------
7,708,832 7,260,381 9,964,767 400,852 1,203,662 31,304 301,718 4,416,478 4,937,435
---------- ---------- ---------- -------- ---------- ------- -------- ---------- ----------
From policyowner
transactions:
Policy purchases 22,379,007 17,334,055 22,761,995 9,857,232 16,095,092 2,463,504 6,650,954 12,184,226 15,294,651
Policy withdrawals (3,567,820)(1,344,564) (3,806,596) (170,732) (1,517,313) (266,702) (106,597) (1,147,692) (467,115)
---------------------- ----------- --------- ----------- --------- --------- ----------- ---------
18,811,187 15,989,491 18,955,399 9,686,500 14,577,779 2,196,802 6,544,357 11,036,534 14,827,536
---------------------- ----------- ---------- ----------- -------------------- ----------------------
Increase in net assets 26,520,019 23,249,872 28,920,166 10,087,352 15,781,441 2,228,106 6,846,075 15,453,012 19,764,971
Net assets, beginning
of year 25,116,473 22,102,000 29,544,271 - 15,319,638 - - 14,213,674 21,663,152
---------------------- ----------- -- ----------- -- -- ----------------------
Net assets, end of year 51,636,492 45,351,872 58,464,437 10,087,352 31,101,079 2,228,106 6,846,075 29,666,686 41,428,123
====================== =========== =========== =========== ==================== =========== ===========
Accumulation unit
purchases 1,465,961 1,212,666 1,553,926 846,841 1,254,739 217,515 572,374 762,008 1,148,375
Accumulation unit
withdrawals (259,120) (119,180) (282,508) (17,723) (132,541) (23,405) (10,780) (79,439) (58,658)
--------- --------- --------- -------- --------- -------- -------- -------- --------
Net increase in units
outstanding 1,206,841 1,093,486 1,271,418 829,118 1,122,198 194,110 561,594 682,569 1,089,717
Units outstanding,
beginning of year 1,785,274 1,655,034 2,256,678 - 1,269,457 - - 917,255 1,703,217
---------- ---------- ---------- -- ---------- -- -- -------- ----------
Units outstanding,
end of year 2,992,115 2,748,520 3,528,096 829,118 2,391,655 194,110 561,594 1,599,824 2,792,934
========== ========== ========== ======== ========== ======== ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of These financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
SERIES V
---------------------------------------------------------------------------------------
T. ROWE PRICE ALGER FEDERATED
-------------------------------------- --------------------------- -----------------
LIMITED AMERICAN PRIME U.S.
EQUITY TERM SMALL AMERICAN MONEY GOVERNMENT
1997 (CONTINUED) INCOME INTERNATIONAL BOND CAPITALIZATION GROWTH FUND II SECURITIES
From operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income (expense) 2,591,578 402,102 471,698 559,213 (83,231) 873,262 380,093
Net realized gains (losses) 389,805 751,583 (20,027) 165,014 561,387 38,905
Net change in unrealized gains (losses) 8,011,281 (979,177) 117,407 1,643,596 4,429,566 - 817,166
---------- --------- -------- ---------- ---------- -- -------
10,992,664 174,508 569,078 2,367,823 4,907,722 873,262 1,236,164
----------- -------- -------- ---------- ---------- -------- ---------
From policyowner transactions:
Policy purchases 31,761,358 20,600,651 8,192,864 11,476,371 11,315,296 74,848,619 9,443,646
Policy withdrawals (1,228,303) (6,720,610) (907,574) (4,517,065) (2,832,455) (77,124,634) (1,657,930)
----------- ----------- --------- ----------- ----------- ------------ ----------
30,533,055 13,880,041 7,285,290 6,959,306 8,482,841 (2,276,015) 7,785,716
----------- ----------- ---------- ---------- ---------- ----------- ---------
Increase (decrease) in net assets 41,525,719 14,054,549 7,854,368 9,327,129 13,390,563 (1,402,753) 9,021,880
Net assets, beginning of year 25,558,736 20,800,847 6,681,908 18,350,561 17,765,602 22,789,036 12,279,967
----------- ----------- ---------- ----------- ----------- ----------- ----------
Net assets, end of year 67,084,455 34,855,396 14,536,276 27,677,690 31,156,165 21,386,283 21,301,847
=========== =========== =========== =========== =========== =========== ==========
Accumulation unit purchases 2,082,909 1,684,252 763,943 906,849 767,866 69,996,486 856,007
Accumulation unit withdrawals (106,819) (563,767) (92,800) (359,479) (208,267) (72,037,285) (159,756
--------- --------- -------- --------- --------- ------------ --------
Net increase (decrease) in
units outstanding 1,976,090 1,120,485 671,143 547,370 559,599 (2,040,799) 696,251
Units outstanding, beginning of year 1,861,298 1,736,784 631,437 1,474,106 1,358,882 21,525,823 1,128,539
---------- ---------- -------- ---------- ---------- ----------- ---------
Units outstanding, end of year 3,837,388 2,857,269 1,302,580 2,021,476 1,918,481 19,485,024 1,824,790
========== ========== ========== ========== ========== =========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
SERIES V
-----------------------------------------------------------------------------------------------
MFS PIONEER
---------------------------------------------------------------- -----------------------
HIGH
WORLD VALUE INCOME EMERGING REAL CAPITAL
1997 (CONTINUED) GOVERNMENT SERIES FUND RESEARCH GROWTH ESTATE GROWTH TOTAL
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income (expense 96,749 454,037 (205,937) (369,367) (475,969) 55,569 (11,597) 8,795,691
Net realized gains 20,167 4,244 1,241,723 1,073,282 1,843,154 48,987 1,476 8,624,911
Net change in unrealized
gains (losses) (302,708) (257,490) 1,013,285 4,051,206 5,506,481 236,651 43,126 54,615,105
--------- --------- ---------- ---------- ---------- -------- ------- ----------
(185,792) 200,791 2,049,071 4,755,121 6,873,666 341,207 33,005 72,035,707
--------- -------- ---------- ---------- ---------- -------- ------- ----------
From policyowner transactions:
Policy purchases 5,546,808 3,434,948 24,758,400 22,797,803 38,214,835 5,315,096 4,483,329 398,614,860
Policy withdrawals (592,574) (14,155) (14,313,806) (4,738,734) 23,155,716) (415,126) (2,363) (152,510,971)
--------- -------- ------------ ----------- ----------- --------- ------- -------------
4,954,234 3,420,793 10,444,594 18,059,069 15,059,119 4,899,970 4,480,966 246,103,889
---------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
Increase in net assets 4,768,442 3,621,584 12,493,665 22,814,190 21,932,785 5,241,177 4,513,971 318,139,596
Net assets, beginning of year 8,628,974 - 9,921,613 18,340,296 24,993,470 - - 318,170,642
---------- -- ---------- ----------- ----------- -- -- -----------
Net assets, end of year 13,397,416 3,621,584 22,415,278 41,154,486 46,926,255 5,241,177 4,513,971 636,310,238
=========== ========== =========== =========== =========== ========== ========== ===========
Accumulation unit purchases 552,637 294,523 2,032,372 1,566,127 2,635,503 465,341 385,493
Accumulation unit withdrawals (69,480) (2,326) (1,162,098) (338,708) (1,598,843) (36,769) (1,537)
-------- ------- ----------- --------- ----------- -------- -------
Net increase in units
outstanding 483,157 292,197 870,274 1,227,419 1,036,660 428,572 383,956
Units outstanding,
beginning of year 819,686 - 859,361 1,381,316 1,854,146 - -
-------- -- -------- ---------- ---------- -- -
Units outstanding, end of year 1,302,843 292,197 1,729,635 2,608,735 2,890,806 428,572 383,956
========== ======== ========== ========== ========== ======== =======
</TABLE>
The accompanying notes are an integra. of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
SERIES I
--------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
-------------------------------- ------------------------ ------------------------------------
NEW LIMITED
ASSET INDEX MONEY AMERICA EQUITY TERM
1996 ROWTH MANAGER 500 MARKET BOND INTERNATIONAL GROWTH INCOME BOND
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income 39,718 23,452 10,260 5,769 26,978 5,850 8,211 11,018 5,776
Net realized gains (losses) 63,433 28,483 65,211 - (6,984) 74,996 94,845 85,226 (1,281)
Net change in unrealized
gains (losses) (14,264) 9,046 (1,854) - (13,389) 5,222 (26,737) (10,984) (3,493)
-------- ------ ------- -- -------- ------ -------- -------- -------
88,887 60,981 73,617 5,769 6,605 86,068 76,319 85,260 1,002
------- ------- ------- ------ ------ ------- ------- ------- -----
From policyowner transactions:
Policy purchases 576,908 225,912 318,093 1,935,551 498,979 657,977 354,624 497,476 77,168
Policy withdrawals (519,798) (227,418) (354,611) (2,164,070) (478,603) (639,384) (343,889) 558,562) (182,180)
--------- --------- --------- ----------- --------- --------- --------- -------- ---------
57,110 (1,506) (36,518) (228,519) 20,376 18,593 10,735 (61,086) (105,012)
------- ------- -------- --------- ------- ------- ------- -------- ---------
Increase (decrease) in net assets 145,997 59,475 37,099 (222,750) 26,981 104,661 87,054 24,174 (104,010)
Net assets, beginning of year 717,058 442,745 355,507 245,555 376,897 676,199 410,094 523,290 194,398
-------- -------- -------- -------- -------- -------- -------- -------- -------
Net assets, end of year 863,055 502,220 392,606 22,805 403,878 780,860 497,148 547,464 90,388
======== ======== ======== ======= ======== ======== ======== ======== ======
Accumulation unit purchases 38,413 19,583 21,578 1,798,321 43,899 57,565 21,755 34,541 7,101
Accumulation unit withdrawals (35,107) (19,435) (23,865) (2,009,547) (42,051) (56,257) (21,106) (38,862) (16,690)
-------- -------- -------- ----------- -------- -------- -------- -------- --------
Net increase (decrease) in
units outstanding 3,306 148 (2,287) (211,226) 1,848 1,308 649 (4,321) (9,589)
Units outstanding, beginning of year51,568 39,609 25,921 231,966 32,410 62,496 27,420 38,350 17,648
------- ------- ------- -------- ------- ------- ------- ------- ------
Units outstanding, end of year 54,874 39,757 23,634 20,740 34,258 63,804 28,069 34,029 8,059
======= ======= ======= ======= ======= ======= ======= ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
SERIES V
----------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
---------------------------------------- ------------- ------------------------------------------
ASSET NEW PERSONAL
MANAGER: EQUITY AMERICA STRATEGY EQUITY
1996 (CONTINUED) CONTRAFUND GROWTH INCOME INTERNATIONAL GROWTH BALANCED INCOME
From operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income (expense) (134,142) 834,128 5,991 (17,838) 59,647 636,828 393,627
Net realized gains (losses) 853,257 26,270 66,968 142,614 270,938 71,841 139,631
Net change in unrealized gains 2,043,475 1,113,958 1,952,736 931,966 501,079 849,854 1,630,152
---------- ---------- ---------- -------- -------- -------- ----------
2,762,590 1,974,356 2,025,695 1,056,742 831,664 1,558,523 2,163,410
---------- ---------- ---------- ---------- -------- ---------- ----------
From policyowner transactions:
Policy purchases 28,902,535 18,900,374 28,928,271 17,755,845 14,607,377 20,255,902 23,732,206
Policy withdrawals (8,313,477) (1,021,094) (4,118,781) (4,546,528) (1,991,381) (1,540,617) (1,754,680)
----------- ----------- ----------- ----------- ----------- ----------- -----------
20,589,058 17,879,280 24,809,490 13,209,317 12,615,996 18,715,285 21,977,526
----------- ----------- ----------- ----------- ----------- ----------- -----------
Increase in net assets 23,351,648 19,853,636 26,835,185 14,266,059 13,447,660 20,273,808 24,140,936
Net assets, beginning of year 1,764,825 2,248,364 2,709,086 1,053,579 766,014 1,389,344 1,417,800
---------- ---------- ---------- ---------- -------- ---------- ----------
Net assets, end of year 25,116,473 22,102,000 29,544,271 15,319,638 14,213,674 21,663,152 25,558,736
=========== =========== =========== =========== =========== =========== ===========
Accumulation unit purchases 2,289,226 1,547,210 2,376,936 1,580,078 997,035 1,722,222 1,892,614
Accumulation unit withdrawals (654,316) (91,746) (353,937) (409,650) (138,446) (142,292) (153,310)
--------- -------- --------- --------- --------- --------- ---------
Net increase in units outstanding 1,634,910 1,455,464 2,022,999 1,170,428 858,589 1,579,930 1,739,304
Units outstanding, beginning of year 150,364 199,570 233,679 99,029 58,666 123,287 121,994
-------- -------- -------- ------- ------- -------- --------
Units outstanding, end of year 1,785,274 1,655,034 2,256,678 1,269,457 917,255 1,703,217 1,861,298
========== ========== ========== ========== ======== ========== ==========
LIMITED
TERM
INTERNATIONAL BOND
<C> <C>
148,852 147,574
211,865 (8,394)
998,543 7,327
-------- -----
1,359,260 146,507
---------- -------
20,749,014 6,350,319
(3,224,170) (395,866)
----------- ---------
17,524,844 5,954,453
----------- ---------
18,884,104 6,100,960
1,916,743 580,948
---------- -------
20,800,847 6,681,908
=========== =========
1,853,967 616,757
(298,582) (41,338)
--------- --------
1,555,385 575,419
181,399 56,018
-------- ------
1,736,784 631,437
========== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
SERIES V
-----------------------------------------------------------------------------------------------------------
ALGER FEDERATED MFS
--------------------------- --------------------------- -------------------------------------------------
AMERICAN PRIME U.S. HIGH
SMALL AMERICAN MONEY GOVERNMENT WORLD INCOME EMERGING
1996 (CONTINUED) CAPITALIZATION GROWTH FUND II SECURITIES GOVERNMENT FUND RESEARCH GROWT TOTAL
From operations:
Net investment income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(expense) (90,102) 96,661 479,982 306,232 (59,094) 469,197 161,107 55,790 3,631,472
Net realized gains
(losses) 74,642 14,309 - (49,646) (67,457) 152,606 214,289 774,322 3,291,984
Net change in
unrealized gains ( (226,324) 829,801 - 73,418 391,014 75,136 1,023,212 (182,142) 11,956,752
--------- -------- -- ------- -------- ------- ---------- --------- ----------
(241,784) 940,771 479,982 330,004 264,463 696,939 1,398,608 647,970 18,880,208
--------- -------- ------- -------- -------- -------- ---------- -------- ---------
From policyowner
transactions:
Policy purchases 18,653,051 16,379,038 95,951,854 12,639,198 9,995,282 12,970,271 17,476,610 33,768,862 403,158,697
Policy withdrawals (1,858,776) (1,198,863)(76,778,825 (1,983,287)(2,208,387) (4,658,885) (1,822,076) (10,862,876)(133,747,084)
----------- ---------------------- ---------------------- ----------- ----------- ------------------------
16,794,275 15,180,175 19,173,029 10,655,911 7,786,895 8,311,386 15,654,534 22,905,986 269,411,613
----------- ----------- ---------- ----------- ---------- ---------- --------- ----------- -----------
Increase in net assets 16,552,491 16,120,946 19,653,011 10,985,915 8,051,358 9,008,325 17,053,142 23,553,956 288,291,821
Net assets, beginning
of year 1,798,070 1,644,656 3,136,025 1,294,052 577,616 913,288 1,287,154 1,439,514 29,878,821
--------- ---------- --------- ---------- -------- -------- ---------- ---------- ----------
Net assets, end of year 18,350,561 17,765,602 22,789,036 12,279,967 8,628,974 9,921,613 18,340,296 24,993,470 18,170,642
=========== =========== ========== =========== ========== ========== =========== =========== ==========
Accumulation unit
purchases 1,481,302 1,325,942 92,414,020 1,201,567 987,874 1,205,897 1,423,099 2,557,930
Accumulation unit
withdrawals (155,866) (107,957)(73,953,800 (195,468) (224,581) (433,914) (158,948) (827,244)
--------- -------------------- --------- --------- --------- --------- ---------
Net increase in units
outstanding 1,325,436 1,217,985 18,460,220 1,006,099 763,293 771,983 1,264,151 1,730,686
Units outstanding,
beginning of year 148,670 140,897 3,065,603 122,440 56,393 87,378 117,165 123,460
-------- -------- --------- -------- ------- ------- -------- -------
Units outstanding,
end of year 1,474,106 1,358,882 21,525,823 1,128,539 819,686 859,361 1,381,316 1,854,146
========== ========== ========== ========== ======== ======== ========== =========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
- --------------------------------------------------------------------------------
1. NATURE OF OPERATIONS
United of Omaha Separate Account C (Separate Account) was established by
United of Omaha Life Insurance Company (United of Omaha) on December 1,
1993, under procedures established by Nebraska law, and is registered as a
unit investment trust under the Investment Company Act of 1940, as amended.
The assets of the Separate Account are owned by United of Omaha. The net
assets of the Separate Account are restricted from use in the ordinary
business of United of Omaha.
2. SUB-ACCOUNTS
The Separate Account is divided into subaccounts, each of which invests
exclusively in shares of a corresponding mutual fund portfolio. The
available portfolios are:
SERIES I
FIDELITY T. ROWE PRICE
Growth International
Asset Manager New America Growth
Index 500 Equity Income
Limited Term Bond
SCUDDER
Money Market
Bond
SERIES V
FIDELITY ALGER
Contrafund American Small Capitalization
Asset Manager: Growth American Growth
Equity Income
Index 500
SCUDDER FEDERATED
International Prime Money Fund II
Global Discovery U.S. Government Securities
Growth & Income
<PAGE>
T. ROWE PRICE MFS
New America Growth World Government
Personal Strategy Balanced Value Series
Equity Income High Income Fund
International Research
Limited Term Bond Emerging Growth
PIONEER
Real Estate
Capital Growth
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
SECURITY VALUATION AND RELATED INVESTMENT INCOME - The market value of
investments is based on year end closing bid prices. Investment
transactions are accounted for on the trade date (date the order to buy or
sell is executed) and dividend income and capital gain distributions are
recorded on the ex-dividend date.
FEDERAL INCOME TAXES - Operations of the Separate Account are part of the
operations of United of Omaha and are not taxed separately; the Separate
Account is not taxed as a regulated investment company. United of Omaha
qualifies for the federal income tax treatment under Subchapter L of the
Internal Revenue Code. Under existing federal income tax law, investment
income and capital gains earned by the Separate Account on contract owner
reserves are not subject to tax.
4. ACCOUNT CHARGES
United of Omaha deducts a daily charge as compensation for the mortality
and expense risks assumed by United of Omaha. The nominal annual rate is a
percentage of the net asset value of each subaccount. United of Omaha
guarantees that the mortality and expense charge shall not increase. The
percentages are:
Series I 1.25%
Series V 1.00%
United of Omaha may incur premium taxes relating to the policies. United of
Omaha will deduct a charge for any premium taxes related to a particular
policy at the time of purchase payments, upon surrender, upon death of any
owner, or at the annuity start date.
No charges are currently deducted from the Separate Account for federal or
state income taxes, since none are currently imposed. Should such taxes be
imposed in the future, United of Omaha may make deductions from the
Separate Account to pay such taxes.
<PAGE>
United of Omaha deducts a daily administrative expense charge from the net
assets of the Separate Account. The nominal annual rate is a percentage of
the net asset value of each subaccount as follows:
Series I .15%
Series V .20%
There is also an annual policy fee of $30 that is deducted from the
accumulation value on the last valuation date of each policy year or at
complete surrender. The annual policy fee is waived if the accumulation
value is greater than $50,000 on the last valuation date of the applicable
policy year. United of Omaha guarantees that the daily administrative
expense charge and the annual policy fee will not increase.
On the Series V products, the policyowner has the option to purchase the
enhanced death benefit. A charge equal to the annual rate of .35% of the
average death benefit amount will be assessed on each policy anniversary or
pro rata upon full surrender.
A withdrawal charge will be assessed on withdrawals in excess of a
percentage of the participant's accumulation value as of the last contract
anniversary preceding the request for the withdrawal. The allowable
withdrawal percentage is as follows:
Series I 10%
Series V 15%
The amount of the charge will depend upon the period of time elapsed since
the purchase payment (first-in, first-out arrangement) was made, as
follows:
CHARGE ON WITHDRAWAL
EXCEEDING
PURCHASE PAYMENT YEAR ALLOWABLE AMOUNT
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
There is no charge for the first 12 transfers between subaccounts of the
Separate Account in each policy year. However, there is a $10 fee for the
13th and each subsequent request during a single policy year. Any
applicable transfer fee is deducted from the amount transferred. All
transfer requests made simultaneously are treated as a single request. No
transfer fee is imposed for any transfer which is not at the policyowner's
request. The transfer fee will not increase.
<PAGE>
5. NET ASSETS
Total net assets (policyowners' cumulative investment accounts) consist of
the following at December 31, 1997:
<PAGE>
<TABLE>
<CAPTION>
SERIES I
------------------------------------------------------------------------------------------------
FIDELITY SCUDDER T. ROWE PRICE
------------------------------------ ------------------------- --------------------------------
NEW LIMITED
ASSET INDEX MONEY AMERICA EQUITY TERM
GROWTH MANAGER 500 MARKET BOND INTERN. GROWTH INCOME BOND
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased 1,599,421 774,542 666,049 4,393,900 1,110,082 1,703,744 791,787 1,238,668 343,360
Shares sold (1,041,175) (364,616) (487,639) (4,298,239) (867,815)(1,303,896)(515,426) (959,681) (300,361)
Dividends and capital gain distributions 79,195 93,038 27,494 22,760 68,300 28,667 16,164 63,546 22,090
Net realized gains (losses) 191,803 43,063 102,415 - 2,423 136,337 130,530 139,101 (2,325)
Change in unrealized gains (losses) 116,461 92,928 117,489 11,489 144 130,481 114,906 533
-------- ------- -------- ------- ---- -------- -------- ---
Net assets 945,705 638,955 425,808 118,421 324,479 564,996 553,536 596,540 63,297
======== ======== ======== ======== ======== ======== ======== ======== ======
</TABLE>
<TABLE>
<CAPTION>
SERIES V
--------------------------------------------------------------------------------------------
FIDELITY SCUDDER
--------------------------------------------------------------------------------------------
ASSET
MANAGER: EQUITY INDEX GLOBAL GROWTH &
CONTRAFUND GROWTH INCOME 500 INTERNATIONAL DISCOVERY INCOME
<S> <C> <C> <C> <C> <C> <C> <C>
Shares purchased 53,110,921 38,769,377 54,415,818 9,857,232 34,960,562 2,463,504 6,650,954
Shares sold (12,593,178) (3,243,110) (8,758,768) (203,821) (6,519,770) (277,411) (131,860)
Dividends and capital gain distributions 882,870 1,087,378 3,479,179 - 506,595 - 36,878
Net realized gains 1,483,389 385,055 725,854 17,387 408,587 21,330 20,076
Change in unrealized gains 8,752,490 8,353,172 8,602,354 416,554 1,745,105 20,683 270,027
---------- ---------- ---------------------------------------- ------- -------
Net assets 51,636,492 45,351,872 58,464,437 10,087,352 31,101,079 2,228,106 6,846,075
=========== =========== =========== =========== =========== ========== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SERIES V
---------------------------------------------------------------------------------------------------------
T. ROWE PRICE ALGER FEDERATED
------------------------------------------------------------------- -----------------------------------
NEW PERSONAL LIMITED AMERICAN PRIME
AMERICA STRATEGY EQUITY INTERNATIONAL TERM SMALL AMERICAN MONEY
GROWTH BALANCED INCOME SERIES BOND CAPITALIZATION GROWTH FUND II
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased 27,641,825 36,931,559 56,848,796 43,280,703 15,134,967 32,107,829 29,489,488 177,334,606
Shares sold (3,606,552) (2,550,575) (3,689,172)(10,519,567) (1,481,360) (6,935,725) (4,595,191) (157,787,400)
Dividends and capital gain
distributions 206,030 2,467,329 3,696,286 1,060,604 782,389 871,157 430,831 1,839,077
Net realized gains (losses) 498,361 174,223 529,618 964,078 (28,376) 232,941 576,472 -
Change in unrealized gains
(losses) 4,927,022 4,405,587 9,698,927 69,578 128,656 1,401,488 5,254,565 -
-------------------------------------------------------------------------- ---------- --
Net assets 29,666,686 41,428,123 67,084,455 34,855,396 14,536,276 27,677,690 31,156,165 21,386,283
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SERIES V
-------------------------------------------------------------------------------------------------------
FEDERATED MFS PIONEER
-------------- ----------------------------------------------------------------- --------------------
U.S. HIGH
GOVERNMENT WORLD VALUE INCOME EMERGING REAL CAPITAL
SECURITIES GOVERNMENT SERIES FUND RESEARCH GROWTH ESTATE GROWTH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased 23,425,849 16,196,130 3,434,948 38,717,227 41,532,332 73,499,066 5,315,096 4,483,329
Shares sold (3,992,481) (3,078,200) (26,780) (19,341,433) (7,039,579) (34,783,898) (415,126) (2,363)
Dividends and capital gain
distributions 976,178 278,767 466,662 559,871 275,220 246,233 55,569 (11,597)
Net realized gains (losses) (9,991) (45,626) 4,244 1,397,227 1,288,398 2,623,577 48,987 1,476
Change in unrealized gains (losses)902,292 46,345 (257,490) 1,082,386 5,098,115 5,341,277 236,651 43,126
-------- ------- --------- ---------- ---------- ---------- -------- ------
Net assets 21,301,847 13,397,416 3,621,584 22,415,278 41,154,486 46,926,255 5,241,177 4,513,971
=========== =========== ========== =========== =========== =========== ========== =========
</TABLE>
<PAGE>
C - 5
PART C OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
All required financial statements are included in Part B of this
Registration Statement.
(b) Exhibits: The following exhibits are filed herewith:
Exhibit No. Description of Exhibit
(1)(a) Resolution of the Board of Directors establishing the Variable Account.
*
(2) Not applicable.
(3)(a) Principal Underwriter Agreement by and between United, on its own
behalf and on behalf of the Variable Account, and Mutual of Omaha
Investor Services. *
(b) Form of Broker/Dealer Supervision and Sales Agreement by and between
Mutual of Omaha Investor Services, Inc. and the Broker/Dealer.*
(4)(a) Form of Policy for the SERIES V variable annuity Policy.*
(b) Form of Riders to the Policy.*
(c) Systematic Transfer Enrollment Program Endorsement to the Policy. ***
(5) Form of Application to the Policy.
(6)(a) Articles of Incorporation of United of Omaha Life Insurance Company.*
(b) Bylaws of United of Omaha Life Insurance Company.*
(7) Not applicable.
(8)(a) Participation Agreement with the Alger American Fund*
(b) Participation Agreement with the Insurance Management Series*
(c) Participation Agreement with the Fidelity VIP Fund and Fidelity
VIP Fund II.*
(d) Participation Agreement with the MFS Variable Insurance Trust.*
(e) Participation Agreement with the Pioneer Variable Contracts Trust.*
(f) Participation Agreement with the Scudder Variable Life Investment Fund.*
(g) Participation Agreement with T. Rowe Price International Series, T.
Rowe Price Fixed Income Series, and T. Rowe Price Equity Series.*
(h) Administrative Services Agreement with Vantage Computer Systems.*
(i) Participation Agreement with Morgan Stanley Universal Funds, et. al. ***
(9) Opinion and Consent of Counsel.
(10) Consents of Independent Auditors
(11) Not applicable.
(12) Not applicable.
(13) Schedules of Computation of Performance Data.
(14) Powers of Attorney.**
* Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account C filed on April 24, 1997 (File No. 33-89848).
** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account B filed on June 20, 1997 (File No. 333-18881).
<PAGE>
*** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account B filed on April 7, 1998 (File No. 333-18881).
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
Our Directors and senior officers* are:
DIRECTORS*
Foggie, Samuel L. Banking and Finance Industry Executive
Plunkett III, Hugh V. Attorney (Plunkett, Schwartz & Petersen)
Sampson, Richard J. Retired Group Insurance Executive (United of
Omaha Life Insurance Company)
Straus, Oscar S. Investments; President, The Daniel and
Florence Guggenheim Foundation
Sturgeon, John A. President, Chief Operation Officer
(United of Omaha Life Insurance Company)
Wayne, Michael A. Foundation and Cancer Institute Executive
Weekly, John W. Chairman of the Board and Chief Executive Officer
(United of Omaha Life Insurance Company)
OFFICERS*
John W. Weekly Chairman of the Board, Chief Executive Officer
John A. Sturgeon President, Chief Operation Officer
G. Ronald Ames Executive Vice President (Small Group and
Information Services)
Robert B. Bogart Executive Vice President (Human Resources)
Stephen R. Booma Executive Vice President (Managed Care)
Cecil D. Bykerk Executive Vice President (Chief Actuary)
James L. Hanson Executive Vice President (Information Services)
Kim Harm Executive Vice President (Customer Services)
Lawrence F. Harr Executive Vice President (Executive Counsel)
Randall C. Horn Executive Vice President (Group Insurance)
M. Jane Huerter Executive Vice President (Corporate
Secretary; Corporate Administration)
John L. Maginn Executive Vice President (Treasurer; Chief
Investment Officer)
William C. Mattox Executive Vice President (Federal Affairs)
Thomas J. McCusker Executive Vice President (General Counsel)
Tommie D. Thompson Executive Vice President (Corporate Comptroller)
*Business address for all directors and officers is Mutual of Omaha
Plaza, Omaha, Nebraska 68175.
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
<TABLE>
<CAPTION>
Name of Corporation (where organized) Type of Corporation
<S> <C>
Mutual of Omaha Insurance Company (NE) Accident & Health Insurance
KFS Corporation (NE) Holding corporation
Kirkpatrick, Pettis, Smith, Polian Inc. (NE) Registered broker-dealer & investment advisor
KPM Investment Management, Inc. (NE) Investment advisor
Kirkpatrick Pettis Trust Company (NE) Trust company
Mutual of Omaha Health Plans, Inc. (NE) Holding corporation
Exclusive Healthcare, Inc. (NE) HMO
Mutual of Omaha of Colorado, Inc. (CO) (50%) HMO
Mutual of Omaha Health Plans of Lincoln, Inc. (NE) Staff Model HMO
Preferred Health Alliance, Inc. (NE) (51%) Joint venture w/physician hospital organization
Mutual of Omaha Dental Plans of Nebraska, Inc.(NE) Limited pre-paid DHMO
Mutual of Omaha Health Plans of Indiana, Inc. (IN) HMO
Mutual of Omaha Health Plans of Ohio, Inc. (OH) HMO
2
<PAGE>
Mutual of Omaha of South Dakota & Community Health
Plus HMO, Inc. (SD) HMO
Mutual of Omaha Tri-State Health Plans, Inc. (TN) HMO
Mutual of Omaha Holdings, Inc. (NE) Holding corporation
innowave incorporated (NE) Markets water distillation products
Mutual Asset Management Co. (NE) Asset management services
Mutual of Omaha Investor Services, Inc. (NE) Registered securities Broker-Dealer
Mutual of Omaha Marketing Corporation (NE) Markets health insurance
Omex Realty, Inc. (NE) Real estate investments
Mutual of Omaha U.K. Limited (U.K.) Insurance in United Kingdom (inactive)
The Omaha Indemnity Company (WI) Property & casualty insurance (no new business since 1986)
Omaha Property and Casualty Insurance Company (NE) Property & casualty insurance
Adjustment Services, Inc. (NE) Claims adjusting services
Tele-Trip Company, Inc. (DE) Markets travel/flight insurance in airports
United of Omaha Life Insurance Company (NE) Life, H&A insurance/annuities
Companion Life Insurance Company (NY) Life insurance/annuities
Mutual of Omaha Structured Settlement Company, Inc. (CT) Structured settlements
Mutual of Omaha Structure Settlement Company of
New York, Inc. (NY) Structured settlements
United World Life Insurance Company (NE) Accident & health and life insurance
United Properties Co. (CA) (50%) Real estate general partnership
*Subsidiaries of subsidiaries are indicated by indentations.
</TABLE>
ITEM 27. NUMBER OF POLICYOWNERS
As of December 31, 1997, there were 11,973 Owners of the Policies.
ITEM 28. INDEMNIFICATION
The Nebraska Business Corporation Act (Section 21-2004(15)) provides for
permissive indemnification in certain situations, mandatory indemnification in
other situations, and prohibits indemnification in certain situations. The
Nevada Business Corporation Act also specifies procedures for determining when
indemnification payments can be made.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of
United of Omaha pursuant to the foregoing provisions, or otherwise, United of
Omaha has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by United of Omaha of expenses
incurred or paid by a director, officer or controlling person in connection with
the securities being registered), United of Omaha will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue. With respect to indemnification, Section XI of
United of Omaha's Articles of Incorporation provides as follows:
An outside director of the Company shall not be personally liable
in the Company on its Stockholders for monetary damages for breach of
fiduciary duty as a director, except for liability for: (i) any act or
omission not in good faith which involves intentional misconduct or a
knowing violation of the law; (ii) any transaction from which the outside
director derived an improper direct or indirect financial benefit; (iii)
paying or approving a dividend which is in violation of Nebraska law; (v)
any act or omission which violates a declaratory or injunctive order
obtained by the Company or its Stockholders; and (v) any act or omission
occurring prior to the effective date of the amendments to the Articles of
Incorporation of the Company incorporating this ARTICLE XI.
For purposes of this ARTICLE XI, an outside director shall mean a
member of the Board of Directors who is not an officer or a person who may
control the conduct of the Company through management agreements, voting
trusts, directorships in related corporations, or any other device or
relationship.
If the Nebraska Business Corporation Act is amended after
approval by the Stockholders of this ARTICLE XI to authorize corporate
action further eliminating or limiting the personal liability of
directors, then the liability of a director of the Company shall be
eliminated or limited to the fullest extent permitted by the Nebraska
Business Corporation Act as so amended.
Any repeal or modification of the foregoing ARTICLE XI by the
Stockholders of the Company shall not adversely affect any right or
protection of a director of the Company existing at the time of such
repeal or modification.
3
<PAGE>
Article VII of United of Omaha's Bylaws provides as follows:
Any person made or threatened to be made a party to any action or
proceeding, whether civil or criminal, by reason of the fact that such
person then is or was a director, officer, employee, or agent of the
Company (or is or was serving at the request of the Company in any such
capacity for an other legal entity or enterprise, shall be indemnified by
the Company against expense, judgements, fines, and amounts paid in
settlement to the full extent that such persons are permitted to be
indemnified by the laws of the State of Nebraska as in effect as of any
date of determination. The provisions of this Article shall not adversely
affect any right to indemnification which any person may have apart from
the provisions of this Article.
ITEM 29. PRINCIPAL UNDERWRITER
(a) In addition to Registrant, Mutual of Omaha Investor Services is
the Principal Underwriter for policies offered by United of Omaha Life Insurance
Company through United of Omaha Separate Account B and offered by Companion Life
Insurance Company through Companion Life Separate Account C and Companion Life
Separate Account B.
(b) The directors and officers of Mutual of Omaha Investor Services,
Inc. (principal address: Mutual of Omaha Plaza, Omaha, Nebraska 68175) are as
follows:
NAME TITLE
John W. Weekly Chairman, Director
Richard A. Witt President, Director
William J. Bluvas Vice President, Finance and Treasurer
M. Jane Huerter Secretary and Director
Kimberly S. Harm Director
Lawrence F. Harr Director
Ronald W. Leach Director
John L. Maginn Director
(c) Mutual of Omaha Investor Services, Inc. ("MOIS") is the
principal underwriter of the Policies. Commissions payable to a broker-dealer
will be up to 7.5% of Purchase Payments. For the fiscal year ended December 31,
1997, United of Omaha paid $17,318,698 in total compensation to MOIS; of this
amount MOIS retained $3,235,557 as concessions for its services as Principal
Underwriter and for distribution concessions, with the remaining amount paid to
other broker-dealers.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder,
are maintained by United of Omaha Life Insurance Company at Mutual of Omaha
Plaza, Omaha, Nebraska 68175.
ITEM 31. MANAGEMENT SERVICES.
All management policies are discussed in Part A or Part B of this
registration statement.
ITEM 32. UNDERTAKINGS
(a)Registrant undertakes that it will file a post-effective
amendment to this registration statement as frequently as necessary to ensure
that the audited financial statements in the registration statement are never
more than 16 months old for so long as Purchase Payments under the Policy may be
accepted.
(b)Registrant undertakes that it will include either (i) a postcard
or similar written communication affixed to or included in the Prospectus that
the applicant can remove to send for a Statement of Additional Information or
(ii) a space in the Policy application that an applicant can check to request a
Statement of Additional Information.
(c)Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request to United of Omaha at the
address or phone number listed in the Prospectus.
(d) Registrant represents that the fees and charges under the
Policy, in the aggregate, are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by United of Omaha.
4
<PAGE>
SECTION 403(B) REPRESENTATIONS
United of Omaha represents that it is relying on a no-action letter
dated November 28, 1988, to the American Council of Life Insurance (Ref. No.
IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment
Company Act of 1940, in connection with redeemability restrictions on Section
403(b) Policies, and that paragraphs numbered (1) through (4) of that letter
will be complied with.
STATEMENT PURSUANT TO RULE 6C-7: TEXAS OPTIONAL RETIREMENT PROGRAM
United of Omaha and the Variable Account rely on 17 C.F.R. ss. 270.6c-7,
and represent that the provisions of that Rule have been or will be complied
with.
5
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it meets all of the requirements for the
effectiveness of this Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1993 and has caused this Posteffective Amendment No. 4 to the
Registration Statement to be signed on its behalf, in the City of Omaha and
State of Nebraska, on this 16th day of April, 1998.
UNITED OF OMAHA SEPARATE ACCOUNT C
UNITED OF OMAHA LIFE INSURANCE COMPANY
Depositor
/s/ Kenneth W. Reitz
---------------------------------------
By: Kenneth W. Reitz
First Vice President & Counsel
As required by the Securities Act of 1933, this Post-effective Amendment
No. 4 to the Registration Statement has been signed by the following persons in
the capacities and on the duties indicated.
Signatures Title Date
/s/ John W. Weekly
by__________________________* Chairman of the Board, 4/16/1998
4/16/1998
John W. Weekly Chief Executive Officer 4/16/1998
/s/ John A. Sturgeon
by__________________________* President, Chief Operation Officer 4/16/1998
4/16/1998
John A. Sturgeon
/s/ Tommie D. Thompson
By__________________________* Executive V.P., Corporate Comptroller 4/16/1998
4/16/1998 (Principal Financial Officer and
Principal Accounting Officer)
/s/ Samuel L. Foggie
by__________________________* Director
4/16/1998
Samuel L. Foggie
/s/ Hugh V. Plunkett, III
by__________________________ Director 4/16/1998
Hugh V. Plunkett, III
/s/ Richard J. Sampson
by__________________________* Director 4/16/1998
4/16/1998
Richard J. Sampson
/s/ Oscar S. Straus
by__________________________* Director 4/16/1998
4/16/1998
Oscar S. Straus
/s/Michael A. Wayne
by__________________________* Director 4/16/1998
4/16/1998
Michael A. Wayne
* Signed by Kenneth W. Reitz under Powers of Attorney executed on May 20, 1997.
<PAGE>
- --------------------------------------------------------------------------------
REGISTRATION NO. 33-89848
811-8910
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
UNITED OF OMAHA SEPARATE ACCOUNT C
OF
UNITED OF OMAHA LIFE INSURANCE COMPANY
- --------------------------------------------------------------------------------
EXHIBITS
- --------------------------------------------------------------------------------
TO
THE REGISTRATION STATEMENT ON FORM N-4
under
THE SECURITIES ACT OF 1933, Post-Effective Amendment No. 4
and
THE INVESTMENT COMPANY ACT OF 1940, Amendment No. 10
April 16, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
(4) (c) Systematic Transfer Enrollment Program Endorsement to the Policy.
(8) (i) Participation Agreement with Morgan Stanley Universal Fund, Inc. et.
al.
(9) Opinion and Consent of Counsel.
(10) Consents of Independent Auditors
(13) Schedules of Computation of Performance Data.
Exhibit 4 (c): Systematic Transfer Enrollment Program Endorsement to the Policy.
UNITED OF OMAHA LIFE INSURANCE COMPANY
SYSTEMATIC TRANSFER ENROLLMENT PROGRAM ENDORSEMENT
The policy is amended as follows:
THE FOLLOWING IS ADDED TO THE DEFINITIONS SECTION OF THE POLICY:
SYSTEMATIC TRANSFER ACCOUNT - A fixed account used for the Systematic Transfer
Program.
THE FOLLOWING IS ADDED TO THE PURCHASE PAYMENTS SECTION OF THE POLICY:
SYSTEMATIC TRANSFER ENROLLMENT PROGRAM
At the time of application you may elect to participate in the Systematic
Transfer Enrollment Program which is used to automatically transfer a
predetermined dollar amount on a monthly basis to any of the Subaccounts which
are chosen at the time of application. The allocation and the predetermined
dollar amount may not be changed. All funds within the Systematic Transfer
Account must be transferred within 13 months of deposit. No new purchase
payments may be allocated to this account after the issue date of the policy. No
transfers may be made into the Systematic Transfer Account.
There is no charge for participation in this program.
THE FOLLOWING SECTION IS ADDED TO THE POLICY:
SYSTEMATIC TRANSFER ACCOUNT
GENERAL DESCRIPTION
Any portion of the purchase payments allocated to the Systematic Transfer
Account become part of the general account assets of United of Omaha Life
Insurance Company. The Systematic Transfer Account includes all of our assets
except those assets segregated in separate accounts. We maintain sole discretion
to invest the assets of the Systematic Transfer Account, subject to applicable
law.
TRANSFERS FROM THE SYSTEMATIC TRANSFER ACCOUNT
You must transfer all of the funds from the Systematic Transfer Account to the
subaccounts within 13 months of deposit. These transfers do not count toward the
12 free transfers allowed each policy year.
You may not transfer funds to the Systematic Transfer Account. No additional
funds may be allocated to the Systematic Transfer Account after the date of
policy issue.
<PAGE>
THE FOLLOWING IS ADDED TO THE VALUES SECTION OF THE POLICY:
SYSTEMATIC TRANSFER ACCOUNT
The accumulation value of the Systematic Transfer Account on any valuation date
is equal to:
(a) the value at the end of the preceding policy month; plus
(b) any net purchase payments credited since the end of the previous policy
month; minus (c) any transfers from the Systematic Transfer Account to the
subaccounts since the end of
the previous policy month; plus
(d) interest credited on the balance.
We guarantee the accumulation value in the Systematic Transfer Account will be
credited with an effective interest rate of at least 3% and is set at the date
of issue.
All other policy provisions apply.
United of Omaha Life Insurance Company
[GRAPHIC OMITTED]
Corporate Secretary
Exhibit No. (8) (i) Participation Agreement with Morgan Stanley
Universal Fund, Inc. et. al.
PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into as of the 1st day of May, 1998 by
and among UNITED OF OMAHA LIFE INSURANCE COMPANY, a Nebraska Corporation,
(hereinafter the "Company"), on its own behalf and on behalf of each separate
account of the Company set forth on Schedule A hereto as may be amended from
time to time (each such account hereinafter referred to as the "Account"), and
MORGAN STANLEY UNIVERSAL FUNDS, INC. (hereinafter the "Fund"), a Maryland
corporation, and MORGAN STANLEY ASSET MANAGEMENT INC. and MILLER ANDERSON &
SHERRERD, LLP (hereinafter collectively the "Advisers" and individually the
"Adviser"), a Delaware corporation and a Pennsylvania limited liability
partnership, respectively.
WHEREAS, the Fund engages in business as an open-end management
investment company and is available to act as (i) the investment vehicle for
separate accounts established by insurance companies for individual and group
life insurance policies and annuity contracts with variable accumulation and/or
pay-out provisions (hereinafter referred to individually and/or collectively as
"Variable Insurance Products") and (ii) the investment vehicle for certain
qualified pension and retirement plans (hereinafter "Qualified Plans"); and
WHEREAS, insurance companies desiring to utilize the Fund as an
investment vehicle under their Variable Insurance Contracts enter into
participation agreements with the Fund and the Advisers (the "Participating
Insurance Companies");
WHEREAS, shares of the Fund are divided into several series of shares,
each representing the interest in a particular managed portfolio of securities
and other assets, any one or more of which may be made available under this
Agreement, as may be amended from time to time by mutual agreement of the
parties hereto (each such series hereinafter referred to as a "Portfolio"); and
WHEREAS, the Fund has obtained an order from the Securities and Exchange
Commission, dated September 19, 1996 (File No. 812-10118), granting
Participating Insurance Companies and Variable Insurance Product separate
accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and
15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940
Act"), and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent
necessary to permit shares of the Fund to be sold to and held by Variable
Annuity Product separate accounts of both affiliated and unaffiliated life
insurance companies and Qualified Plans (hereinafter the "Shared Funding
Exemptive Order"); and
WHEREAS, the Fund is registered as an open-end management investment
company under the 1940 Act and its shares are registered under the Securities
Act of 1933, as amended (hereinafter the "1933 Act"); and
WHEREAS, each Adviser is duly registered as an investment adviser under
the Investment Advisers Act of 1940, as amended, and any applicable state
securities laws; and
WHEREAS, each Adviser manages certain Portfolios of the Fund; and
WHEREAS, Morgan Stanley & Co. Incorporated (the "Underwriter") is
registered as a broker/dealer under the Securities Exchange Act of 1934, as
amended (hereinafter the "1934 Act"), is a member in good standing of the
National Association of Securities Dealers, Inc. (hereinafter "NASD") and serves
as principal underwriter of the shares of the Fund; and
WHEREAS, the Company has registered or will register certain Variable
Insurance Products under the 1933 Act; and
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution or under authority of the Board of
Directors of the Company, on the date shown for such Account on Schedule A
hereto, to set aside and invest assets attributable to the aforesaid Variable
Insurance Product; and
WHEREAS, the Company has registered or will register each Account as a
unit investment trust under the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase, on behalf of each Account, shares
in the Portfolios set forth in Schedule B attached to this Agreement, to fund
certain of the aforesaid Variable Insurance Products and the Underwriter is
authorized to sell such shares to each such Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company,
the Fund and the Underwriter agree as follows:
ARTICLE I. Purchase of Fund Shares
1.1. The Fund agrees to make available for purchase by the Company
shares of the Fund and shall execute orders placed for each Account on a daily
basis at the net asset value next computed after receipt by the Fund or its
designee of such order. For purposes of this Section 1.1, the Company shall be
the designee of the Fund for receipt of such orders from each Account and
receipt by such designee shall constitute receipt by the Fund; provided that the
Fund receives notice of such order by 10:00 a.m. Eastern time on the next
following Business Day. "Business Day" shall mean any day on which the New York
Stock Exchange is open for trading and on which the Fund calculates its net
asset value pursuant to the rules of the Securities and Exchange Commission.
1.2. The Fund, so long as this Agreement is in effect, agrees to make
its shares available indefinitely for purchase at the applicable net asset value
per share by the Company and its Accounts on those days on which the Fund
calculates its net asset value pursuant to rules of the Securities and Exchange
Commission and the Fund shall use reasonable efforts to calculate such net asset
value on each day which the New York Stock Exchange is open for trading.
Notwithstanding the foregoing, the Board of Directors of the Fund (hereinafter
the "Board") may refuse to permit the Fund to sell shares of any Portfolio to
any person, or suspend or terminate the offering of shares of any Portfolio if
such action is required by law or by regulatory authorities having jurisdiction
or is, in the sole discretion of the Board acting in good faith and in light of
their fiduciary duties under federal and any applicable state laws, necessary in
the best interests of the shareholders of such Portfolio.
1.3. The Fund agrees that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts and to certain
Qualified Plans. No shares of any Portfolio will be sold to the general public.
1.4. The Fund agrees to redeem for cash, on the Company's request, any
full or fractional shares of the Fund held by the Company, executing such
requests on a daily basis at the net asset value next computed after receipt by
the Fund or its designee of the request for redemption. For purposes of this
Section 1.4, the Company shall be the designee of the Fund for receipt of
requests for redemption from each Account and receipt by such designee shall
constitute receipt by the Fund, provided that the Fund receives notice of such
request for redemption on the next following Business Day.
1.5. The Company agrees that purchases and redemptions of Portfolio
shares offered by the then current prospectus of the Fund shall be made in
accordance with the provisions of such prospectus. The Variable Insurance
Products issued by the Company, under which amounts may be invested in the Fund
(hereinafter the "Contracts"), are listed on Schedule A attached hereto and
incorporated herein by reference, as such Schedule A may be amended from time to
time by mutual written agreement of all of the parties hereto. The Company will
give the Fund and the Adviser 45 days written notice of its intention to make
available in the future, as a funding vehicle under the Contracts, any other
investment company.
1.6. The Company shall pay for Fund shares on the next Business Day
after an order to purchase Fund shares is made in accordance with the provisions
of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire.
For purposes of Section 2.10 and 2.11, upon receipt by the Fund of the federal
funds so wired, such funds shall cease to be the responsibility of the Company
and shall become the responsibility of the Fund.
1.7. Issuance and transfer of the Fund's shares will be by book entry
only. Stock certificates will not be issued to the Company or any Account.
Shares ordered from the Fund will be recorded in an appropriate title for each
Account or the appropriate subaccount of each Account.
1.8. The Fund shall furnish same day notice (by wire or telephone,
followed by written confirmation) to the Company of any income, dividends or
capital gain distributions payable on the Fund's shares. The Company hereby
elects to receive all such income dividends and capital gain distributions as
are payable on the Portfolio shares in additional shares of that Portfolio. The
Company reserves the right to revoke this election and to receive all such
income dividends and capital gain distributions in cash. The Fund shall notify
the Company of the number of shares so issued as payment of such dividends and
distributions.
1.9. The Fund shall make the net asset value per share for each
Portfolio available to the Company on a daily basis as soon as reasonably
practical after the net asset value per share is calculated (normally by 6:30
p.m. Eastern time) and shall use its best efforts to make such net asset value
per share available by 7:00 p.m. Eastern time.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will
be registered under the 1933 Act; that the Contracts will be issued and sold in
compliance in all material respects with all applicable federal and state laws
and that the sale of the Contracts shall comply in all material respects with
state insurance suitability requirements. The Company further represents and
warrants that it is an insurance company duly organized and in good standing
under applicable law and that it has legally and validly established each
Account prior to any issuance or sale thereof as a segregated asset account
under Nebraska (for United of Omaha Life Insurance Company) separate account
laws and has registered or, prior to any issuance or sale of the Contracts, will
register each Account as a unit investment trust in accordance with the
provisions of the 1940 Act to serve as a segregated investment account for the
Contracts.
2.2. The Fund represents and warrants that Fund shares sold pursuant to
this Agreement shall be registered under the 1933 Act, duly authorized for
issuance and sold in compliance with the laws of the State of Maryland and all
applicable federal and state securities laws and that the Fund is and shall
remain registered under the 1940 Act. The Fund shall amend the registration
statement for its shares under the 1933 Act and the 1940 Act from time to time
as required in order to effect the continuous offering of its shares. The Fund
shall register and qualify the shares for sale in accordance with the laws of
the various states only if and to the extent deemed advisable by the Fund.
2.3. The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"), and that it will make every effort to maintain such
qualification (under Subchapter M or any successor or similar provision) and
that it will notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so qualify in
the future.
2.4. The Company represents that the Contracts are currently treated as
life insurance policies or annuity contracts, under applicable provisions of the
Code and that it will make every effort to maintain such treatment and that it
will notify the Fund immediately upon having a reasonable basis for believing
that the Contracts have ceased to be so treated or that they might not be so
treated in the future.
2.5. The Fund represents that to the extent that it decides to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act, the Fund
undertakes to have a board of directors, a majority of whom are not interested
persons of the Fund, formulate and approve any plan under Rule 12b-1 to finance
distribution expenses.
2.6. The Fund makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states
except that the Fund represents that the Fund's investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of the
State of Maryland and the Fund represents that their respective operations are
and shall at all times remain in material compliance with the laws of the State
of Maryland to the extent required to perform this Agreement.
2.7. The Fund represents that it is lawfully organized and validly
existing under the laws of the State of Maryland and that it does and will
comply in all material respects with the 1940 Act.
2.8. Each Adviser represents and warrants that it is and shall remain
duly registered in all material respects under all applicable federal and state
securities laws and that it will perform its obligations for the Fund in
compliance in all material respects with the laws of its state of domicile and
any applicable state and federal securities laws.
2.9. The Fund represents and warrants that its directors, officers,
employees, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all times covered by a
blanket fidelity bond or similar coverage for the benefit of the Fund in an
amount not less than the minimal coverage as required currently by Rule 17g-(1)
of the 1940 Act or related provisions as may be promulgated from time to time.
The aforesaid blanket fidelity bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.10. The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are covered by a blanket fidelity
bond or similar coverage, in an amount not less $5 million. The aforesaid
includes coverage for larceny and embezzlement is issued by a reputable bonding
company. The Company agrees to make all reasonable efforts to see that this bond
or another bond containing these provisions is always in effect, and agrees to
notify the Fund and the Underwriter in the event that such coverage no longer
applies.
ARTICLE III. Prospectuses, Reports to Shareholders and Proxy Statements; Voting
3.1. The Fund or its designee shall provide the Company with as many
printed copies of the Fund's current prospectus and statement of additional
information as the Company may reasonably request. If requested by the Company,
in lieu of providing printed copies the Fund shall provide camera-ready film or
computer diskettes containing the Fund's prospectus and statement of additional
information, and such other assistance as is reasonably necessary in order for
the Company once each year (or more frequently if the prospectus and/or
statement of additional information for the Fund is amended during the year) to
have the prospectus for the Contracts and the Fund's prospectus printed together
in one document, and to have the statement of additional information for the
Fund and the statement of additional information for the Contracts printed
together in one document. Alternatively, the Company may print the Fund's
prospectus and/or its statement of additional information in combination with
other fund companies' prospectuses and statements of additional information.
3.2. Except as provided in this Section 3.2., all expenses of printing
and distributing Fund prospectuses and statements of additional information
shall be the expense of the Company. For prospectuses and statements of
additional information provided by the Company to its existing owners of
Contracts who currently own shares of one or more of the Fund's Portfolios, in
order to update disclosure as required by the 1933 Act and/or the 1940 Act, the
cost of printing shall be borne by the Fund. If the Company chooses to receive
camera-ready film or computer diskettes in lieu of receiving printed copies of
the Fund's prospectus, the Fund will reimburse the Company in an amount equal to
the product of x and y where x is the number of such prospectuses distributed to
owners of the Contracts who currently own shares of one or more of the Fund's
Portfolios, and y is the Fund's per unit cost of typesetting and printing the
Fund's prospectus. The same procedures shall be followed with respect to the
Fund's statement of additional information. The Company agrees to provide the
Fund or its designee with such information as may be reasonably requested by the
Fund to assure that the Fund's expenses do not include the cost of printing any
prospectuses or statements of additional information other than those actually
distributed to existing owners of the Contracts.
3.3. The Fund's statement of additional information shall be obtainable
from the Fund, the Company or such other person as the Fund may designate, as
agreed upon by the parties.
3.4. The Fund, at its expense, shall provide the Company with copies of
its proxy statements, reports to shareholders, and other communications (except
for prospectuses and statements of additional information, which are covered in
section 3.1) to shareholders in such quantity as the Company shall reasonably
require for distributing to Contract owners.
3.5. If and to the extent required by law the Company shall:
(i) solicit voting instructions from Contract owners;
(ii) vote the Fund shares in accordance with instructions received from Contract
owners; and
(iii) vote Fund shares for which no instructions have been received in the same
proportion as Fund shares of such Portfolio for which instructions have been
received,
so long as and to the extent that the Securities and Exchange Commission
continues to interpret the 1940 Act to require pass-through voting privileges
for variable contract owners. The Company reserves the right to vote Fund shares
held in any segregated asset account in its own right, to the extent permitted
by law. The Fund and the Company shall follow the procedures, and shall have the
corresponding responsibilities, for the handling of proxy and voting instruction
solicitations, as set forth in Schedule C attached hereto and incorporated
herein by reference. Participating Insurance Companies shall be responsible for
ensuring that each of their separate accounts participating in the Fund
calculates voting privileges in a manner consistent with the standards set forth
on Schedule C, which standards will also be provided to the other Participating
Insurance Companies.
3.6. The Fund will comply with all provisions of the 1940 Act requiring
voting by shareholders, and in particular the Fund will either provide for
annual meetings or comply with Section 16(c) of the 1940 Act (although the Fund
is not one of the trusts described in Section 16(c) of that Act) as well as with
Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in
accordance with the Securities and Exchange Commission's interpretation of the
requirements of Section 16(a) with respect to periodic elections of directors
and with whatever rules the Commission may promulgate with respect thereto.
3.7. The Fund shall use reasonable efforts to provide Fund prospectuses,
reports to shareholders, proxy materials and other Fund communications (or
camera-ready equivalents) to the Company sufficiently in advance of the
Company's mailing dates to enable the Company to complete, at reasonable cost,
the printing, assembling and/or distribution of the communications in accordance
with applicable laws and regulations.
ARTICLE IV. Sales Material and Information
4.1. The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee, each piece of sales literature or other promotional
material in which the Fund or the Adviser(s) is named, at least ten Business
Days prior to its use. No such material shall be used if the Fund or its
designee reasonably objects to such use within ten Business Days after receipt
of such material.
4.2. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning the Fund in
connection with the sale of the Contracts other than the information or
representations contained in the registration statement or prospectus for the
Fund shares, as such registration statement and prospectus may be amended or
supplemented from time to time, or in reports or proxy statements for the Fund,
or in sales literature or other promotional material approved by the Fund or its
designee, except with the permission of the Fund.
4.3. The Fund or its designee shall furnish, or shall cause to be
furnished, to the Company or its designee, each piece of sales literature or
other promotional material in which the Company and/or its separate account(s)
is named at least ten Business Days prior to its use. No such material shall be
used if the Company or its designee reasonably objects to such use within ten
Business Days after receipt of such material.
4.4. The Fund and the Advisers shall not give any information or make
any representations on behalf of the Company or concerning the Company, each
Account, or the Contracts, other than the information or representations
contained in a registration statement or prospectus for the Contracts, as such
registration statement and prospectus may be amended or supplemented from time
to time, or in published reports for each Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the permission of the Company.
4.5. The Fund will provide to the Company at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, proxy statements, sales literature and other promotional materials,
applications for exemptions, requests for no-action letters, and all amendments
to any of the above, that relate to the Fund or its shares, which are relevant
to the Company or the Contracts.
4.6. The Company will provide to the Fund at least one complete copy of
all registration statements, prospectuses, statements of additional information,
reports, solicitations for voting instructions, sales literature and other
promotional materials, applications for exemptions, requests for no action
letters, and all amendments to any of the above, that relate to the investment
in the Fund under the Contracts.
4.7. For purposes of this Article IV, the phrase "sales literature or
other promotional material" includes, but is not limited to, any of the
following that refer to the Fund or any affiliate of the Fund: advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media), sales
literature (i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, and registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials.
ARTICLE V. Fees and Expenses
5.1. The Fund shall pay no fee or other compensation to the Company
under this Agreement, except that if the Fund or any Portfolio adopts and
implements a plan pursuant to Rule 12b-1 to finance distribution expenses, then
the Underwriter may make payments to the Company or to the underwriter for the
Contracts if and in amounts agreed to by the Underwriter in writing.
5.2. All expenses incident to performance by the Fund under this
Agreement shall be paid by the Fund. The Fund shall see to it that all its
shares are registered and authorized for issuance in accordance with applicable
federal law and, if and to the extent deemed advisable by the Fund, in
accordance with applicable state laws prior to their sale. The Fund shall bear
the expenses for the cost of registration and qualification of the Fund's
shares, preparation and filing of the Fund's prospectus and registration
statement, proxy materials and reports, setting the prospectus in type, setting
in type and printing the proxy materials and reports to shareholders (including
the costs of printing a prospectus that constitutes an annual report), the
preparation of all statements and notices required by any federal or state law,
and all taxes on the issuance or transfer of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the Fund's
prospectus, proxy materials and reports to owners of Contracts issued by the
Company.
ARTICLE VI. Diversification
6.1. The Fund will at all times invest money from the Contracts in such
a manner as to ensure that the Contracts will be treated as variable contracts
under the Code and the regulations issued thereunder. Without limiting the scope
of the foregoing, the Fund will at all times comply with Section 817(h) of the
Code and Treasury Regulation 1.817-5, relating to the diversification
requirements for variable annuity, endowment, or life insurance contracts and
any amendments or other modifications to such Section or Regulations. In the
event of a breach of this Article VI by the Fund, it will take all reasonable
steps (a) to notify Company of such breach and (b) to adequately diversify the
Fund so as to achieve compliance within the grace period afforded by Regulation
817-5.
ARTICLE VII. Potential Conflicts
7.1. The Board will monitor the Fund for the existence of any material
irreconcilable conflict between the interests of the contract owners of all
separate accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance,
tax, or securities laws or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by insurance,
tax, or securities regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the investments of
any Portfolio are being managed; (e) a difference in voting instructions given
by Variable Insurance Product owners; or (f) a decision by the Participating
Insurance Company to disregard the voting instructions of contract owners. The
Board shall promptly inform the Company if it determines that an irreconcilable
material conflict exists and the implications thereof.
7.2. The Company will report any potential or existing conflicts of
which it is aware to the Board. The Company will assist the Board in carrying
out its responsibilities under the Shared Funding Exemptive Order, by providing
the Board with all information reasonably necessary for the Board to consider
any issues raised. This includes, but is not limited to, an obligation by the
Company to inform the Board whenever contract owner voting instructions are
disregarded.
7.3. If it is determined by a majority of the Board, or a majority of
its disinterested members, that a material irreconcilable conflict exists, the
Company and other Participating Insurance Companies shall, at their expense and
to the extent reasonably practicable (as determined by a majority of the
disinterested directors), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including: (1)
withdrawing the assets allocable to some or all of the separate accounts from
the Fund or any Portfolio and reinvesting such assets in a different investment
medium, including (but not limited to) another Portfolio of the Fund, or
submitting the question whether such segregation should be implemented to a vote
of all affected Contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., annuity contract owners, life insurance policy
owners, or variable contract owners of one or more Participating Insurance
Companies) that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and (2) establishing a new
registered management investment company or managed separate account.
7.4. If a material irreconcilable conflict arises because of a decision
by the Company to disregard contract owner voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Fund's election, to withdraw the affected Account's
investment in the Fund and terminate this Agreement with respect to such Account
(at the Company's expense); provided, however that such withdrawal and
termination shall be limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the disinterested members
of the Board.
7.5. If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to the Company conflicts with
the majority of other state regulators, then the Company will withdraw the
affected Account's investment in the Fund and terminate this Agreement with
respect to such Account within six months after the Board informs the Company in
writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall
be limited to the extent required by the foregoing material irreconcilable
conflict as determined by a majority of the disinterested members of the Board.
Until the end of the foregoing six month period, the Underwriter and Fund shall
continue to accept and implement orders by the Company for the purchase (and
redemption) of shares of the Fund.
7.6. For purposes of Sections 7.3 through 7.5 of this Agreement, a
majority of the disinterested members of the Board shall determine whether any
proposed action adequately remedies any irreconcilable material conflict, but in
no event will the Fund be required to establish a new funding medium for the
Contracts. The Company shall not be required by Section 7.3 to establish a new
funding medium for the Contracts if an offer to do so has been declined by vote
of a majority of Contract owners materially adversely affected by the
irreconcilable material conflict.
7.7. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended,
or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the
1940 Act or the rules promulgated thereunder with respect to mixed or shared
funding (as defined in the Shared Funding Exemptive Order) on terms and
conditions materially different from those contained in the Shared Funding
Exemptive Order, then (a) the Fund and/or the Participating Insurance Companies,
as appropriate, shall take such steps as may be necessary to comply with Rules
6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such
rules are applicable; and (b) Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of
this Agreement shall continue in effect only to the extent that terms and
conditions substantially identical to such Sections are contained in such
Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Company
8.1(a) The Company agrees to indemnify and hold harmless the Fund and
each member of the Board and officers, and each Adviser and each director and
officer of each Adviser, and each person, if any, who controls the Fund or the
Adviser within the meaning of Section 15 of the 1933 Act (collectively, the
"Indemnified Parties" and individually, "Indemnified Party," for purposes of
this Section 8.1) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with the written consent of the Company)
or litigation (including legal and other expenses), to which the Indemnified
Parties may become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) or settlements are related to the sale or
acquisition of the Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue statements or
alleged untrue statements of any material fact contained in the registration
statement or prospectus for the Contracts or contained in the Contracts or sales
literature for the Contracts (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, provided that this
agreement to indemnify shall not apply as to any Indemnified Party if such
statement or omission or such alleged statement or omission was made in reliance
upon and in conformity with information furnished to the Company by or on behalf
of the Fund for use in the registration statement or prospectus for the
Contracts or in the Contracts or sales literature (or any amendment or
supplement) or otherwise for use in connection with the sale of the Contracts or
Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, prospectus or sales literature of the Fund not supplied by the
Company, or persons under its control and other than statements or
representations authorized by the Fund or an Adviser) or unlawful conduct of the
Company or persons under its control, with respect to the sale or distribution
of the Contracts or Fund shares; or
(iii) arise out of or as a result of any untrue statement or
alleged untrue statement of a material fact contained in a registration
statement, prospectus, or sales literature of the Fund or any amendment thereof
or supplement thereto or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading if such a statement or omission was made in reliance upon
and in conformity with information furnished to the Fund by or on behalf of the
Company; or
(iv) arise as a result of any failure by the Company to provide
the services and furnish the materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this Agreement or arise
out of or result from any other material breach of this Agreement by the
Company, as limited by and in accordance with the provisions of Sections 8.1(b)
and 8.1(c) hereof.
8.1(b). The Company shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as such may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations or duties under this Agreement.
8.1(c). The Company shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Company of any
such claim shall not relieve the Company from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Company shall be entitled to participate,
at its own expense, in the defense of such action. The Company also shall be
entitled to assume the defense thereof, with counsel satisfactory to the party
named in the action. After notice from the Company to such party of the
Company's election to assume the defense thereof, the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it, and the
Company will not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in connection
with the defense thereof other than reasonable costs of investigation.
8.1(d). The Indemnified Parties will promptly notify the Company of the
commencement of any litigation or proceedings against them in connection with
the issuance or sale of the Fund shares or the Contracts or the operation of the
Fund.
8.2. Indemnification by the Advisers
8.2(a). Each Adviser agrees, with respect to each Portfolio that it
manages, to indemnify and hold harmless the Company and each of its directors
and officers and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties"
and individually, "Indemnified Party," for purposes of this Section 8.2) against
any and all losses, claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Adviser) or litigation (including
legal and other expenses) to which the Indemnified Parties may become subject
under any statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof)
or settlements are related to the sale or acquisition of shares of the Portfolio
that it manages or the Contracts and:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the registration
statement or prospectus or sales literature of the Fund (or any amendment or
supplement to any of the foregoing), or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
provided that this agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged statement or omission was
made in reliance upon and in conformity with information furnished to the Fund
by or on behalf of the Company for use in the registration statement or
prospectus for the Fund or in sales literature (or any amendment or supplement)
or otherwise for use in connection with the sale of the Contracts or Portfolio
shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, prospectus or sales literature for the Contracts not supplied by the
Fund or persons under its control and other than statements or representations
authorized by the Company) or unlawful conduct of the Fund, Adviser(s) or
Underwriter or persons under their control, with respect to the sale or
distribution of the Contracts or Portfolio shares; or
(iii) arise out of or as a result of any untrue statement or
alleged untrue statement of a material fact contained in a registration
statement, prospectus, or sales literature covering the Contracts, or any
amendment thereof or supplement thereto, or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statement or statements therein not misleading, if such statement or
omission was made in reliance upon information furnished to the Company by or on
behalf of the Fund; or
(iv) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Adviser in this Agreement or arise
out of or result from any other material breach of this Agreement by the
Adviser; as limited by and in accordance with the provisions of Sections 8.2(b)
and 8.2(c) hereof.
8.2(b). An Adviser shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as such may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations and duties under this Agreement.
8.2(c). An Adviser shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Adviser in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Adviser of any
such claim shall not relieve the Adviser from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Adviser will be entitled to participate, at
its own expense, in the defense thereof. The Adviser also shall be entitled to
assume the defense thereof, with counsel satisfactory to the party named in the
action. After notice from the Adviser to such party of the Adviser's election to
assume the defense thereof, the Indemnified Party shall bear the fees and
expenses of any additional counsel retained by it, and the Adviser will not be
liable to such party under this Agreement for any legal or other expenses
subsequently incurred by such party independently in connection with the defense
thereof other than reasonable costs of investigation.
8.2(d). The Company agrees promptly to notify the Adviser of the
commencement of any litigation or proceedings against it or any of its officers
or directors in connection with the issuance or sale of the Contracts or the
operation of each Account.
8.3. Indemnification by the Fund
8.3(a). The Fund agrees to indemnify and hold harmless the Company, and
each of its directors and officers and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act (hereinafter
collectively, the "Indemnified Parties" and individually, "Indemnified Party,"
for purposes of this Section 8.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written consent of
the Fund) or litigation (including legal and other expenses) to which the
Indemnified Parties may become subject under any statute, regulation, at common
law or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements result from the gross
negligence, bad faith or willful misconduct of the Board or any member thereof,
are related to the operations of the Fund and:
(i) arise as a result of any failure by the Fund to
provide the services and furnish the materials under the terms of this
Agreement; or
(ii) arise out of or result from any material breach of
any representation and/or
warranty made by the Fund in this Agreement or arise out of or result from any
other material breach of this Agreement by the Fund;
8.3(b). The Fund shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations and duties under this Agreement.
8.3(c). The Fund shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Fund in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Fund of any
such claim shall not relieve the Fund from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Fund will be entitled to participate, at
its own expense, in the defense thereof. The Fund also shall be entitled to
assume the defense thereof, with counsel satisfactory to the party named in the
action. After notice from the Fund to such party of the Fund's election to
assume the defense thereof, the Indemnified Party shall bear the fees and
expenses of any additional counsel retained by it, and the Fund will not be
liable to such party under this Agreement for any legal or other expenses
subsequently incurred by such party independently in connection with the defense
thereof other than reasonable costs of investigation.
8.3(d). The Company agrees promptly to notify the Fund of the
commencement of any litigation or proceedings against it or any of its
respective officers or directors in connection with this Agreement, the issuance
or sale of the Contracts, with respect to the operation of either Account, or
the sale or acquisition of shares of the Fund.
ARTICLE IX. Applicable Law
9.1. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of New York.
9.2. This Agreement shall be subject to the provisions of the 1933, 1934
and 1940 Acts, and the rules and regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the Securities and
Exchange Commission may grant (including, but not limited to, the Shared Funding
Exemptive Order) and the terms hereof shall be interpreted and construed in
accordance therewith.
ARTICLE X. Termination
10.1. This Agreement shall continue in full force and effect until the
first to occur of:
(a) termination by any party for any reason by six months advance
written notice delivered to the other parties; or
(b) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio based upon the Company's determination
that shares of such Portfolio is not reasonably available to meet the
requirements of the Contracts; or
(c) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event any of the Portfolio's shares
are not registered, issued or sold in accordance with applicable state and/or
federal law or such law precludes the use of such shares as the underlying
investment media of the Contracts issued or to be issued by the Company; or
(d) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event that such Portfolio ceases to
qualify as a Regulated Investment Company under Subchapter M of the Code or
under any successor or similar provision, or if the Company reasonably believes
that the Fund may fail to so qualify; or
(e) termination by the Company by written notice to the Fund and the
Adviser with respect to any Portfolio in the event that such Portfolio falls to
meet the diversification requirements specified in Article VI hereof; or
(f) termination by either the Fund by written notice to the Company if
the Fund shall determine, in its sole judgment exercised in good faith, that the
Company and/or its affiliated companies has suffered a material adverse change
in its business, operations, financial condition or prospects since the date of
this Agreement or is the subject of material adverse publicity, or
(g) termination by the Company by written notice to the Fund and the
Adviser, if the Company shall determine, in its sole judgment exercised in good
faith, that either the Fund or the Adviser has suffered a material adverse
change in its business, operations, financial condition or prospects since the
date of this Agreement or is the subject of material adverse publicity; or
(h) termination by the Fund or the Adviser by written notice to the
Company, if the Company gives the Fund and the Adviser the written notice
specified in Section 1.5 hereof and at the time such notice was given there was
no notice of termination outstanding under any other provision of this
Agreement; provided, however any termination under this Section 10.1(h) shall be
effective forty five (45) days after the notice specified in Section 1.5 was
given.
10.2. Notwithstanding any termination of this Agreement, the Fund shall
at the option of the Company, continue to make available additional shares of
the Fund pursuant to the terms and conditions of this Agreement, for all
Contracts in effect on the effective date of termination of this Agreement
(hereinafter referred to as "Existing, Contracts"). Specifically, without
limitation, the owners of the Existing Contracts shall be permitted to direct
reallocation of investments in the Fund, redemption of investments in the Fund
and/or investment in the Fund upon the making of additional purchase payments
under the Existing Contracts. The parties agree that this Section 10.2 shall not
apply to any terminations under Article VII and the effect of such Article VII
terminations shall be governed by Article VII of this Agreement.
10.3. The Company shall not redeem Fund shares attributable to the
Contracts (as distinct from Fund shares attributable to the Company's assets
held in the Account) except (i) as necessary to implement Contract Owner
initiated or approved transactions, or (ii) as required by state and/or federal
laws or regulations or judicial or other legal precedent of general application
(hereinafter referred to as a "Legally Required Redemption") or (iii) as
permitted by an order of the Securities and Exchange Commission pursuant to
Section 26(b) of the 1940 Act. Upon request, the Company will promptly furnish
to the Fund the opinion of counsel for the Company (which counsel shall be
reasonably satisfactory to the Fund) to the effect that any redemption pursuant
to clause (ii) above is a Legally Required Redemption. Furthermore, except in
cases where permitted under the terms of the Contracts, the Company shall not
prevent Contract Owners from allocating payments to a Portfolio that was
otherwise available under the Contracts without first giving the Fund 90 days
prior written notice of its intention to do so.
ARTICLE XI. Notices
Any notice shall be sufficiently given when sent by registered or
certified mail to the other party at the address of such party set forth below
or at such other address as such party may from time to time specify in writing
to the other party.
If to the Fund:
Morgan Stanley Universal Funds, Inc.
c/o Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
Attention: Harold J. Schaaff, Jr., Esq.
If to Adviser:
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
Attention: Harold J. Schaaff, Jr., Esq.
If to Adviser:
Miller Anderson & Sherrerd, LLP
One Tower Bridge
West Conshohocken, Pennsylvania 19428
Attention: Lorraine Truten
If to the United of Omaha Life Insurance Company:
Law Division
United of Omaha Life Insurance Company
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska 68175-1008
Attn: Registered Insurance Products Counsel
ARTICLE XII. Miscellaneous
12.1. All persons dealing with the Fund must look solely to the property
of the Fund for the enforcement of any claims against the Fund as neither the
Board, officers, agents or shareholders assume any personal liability for
obligations entered into on behalf of the Fund.
12.2. Subject to the requirements of legal process and regulatory
authority, each party hereto shall treat as confidential the names and addresses
of the owners of the Contracts and all information reasonably identified as
confidential in writing by any other party hereto and, except as permitted by
this Agreement, shall not disclose, disseminate or utilize such names and
addresses and other confidential information until such time as it may come into
the public domain without the express written consent of the affected party.
12.3. The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
12.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
12.5. If any provision of this Agreement shall be held or made invalid
by a court decision, statute, rule or otherwise, the remainder of the Agreement
shall not be affected thereby.
12.6. Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the
Securities and Exchange Commission, the National Association of Securities
Dealers and state insurance regulators) and shall permit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated hereby.
Notwithstanding the generality of the foregoing, each party hereto further
agrees to furnish the California Insurance Commissioner with any information or
reports in connection with services provided under this Agreement which such
Commissioner may request in order to ascertain whether the insurance operations
of the Company are being conducted in a manner consistent with the California
Insurance Regulations and any other applicable law or regulations.
12.7. The rights, remedies and obligations contained in this Agreement
are cumulative and are in addition to any and all rights, remedies and
obligations at law or in equity, which the parties hereto are entitled to under
state and federal laws.
12.8. This Agreement or any of the rights and obligations hereunder may
not be assigned by any party without the prior written consent of all parties
hereto; provided, however, that an Adviser may assign this Agreement or any
rights or obligations hereunder to any affiliate of or company under common
control with the Adviser, if such assignee is duly licensed and registered to
perform the obligations of the Adviser under this Agreement.
12. 9 The Company shall furnish, or shall cause to be furnished, to the
Fund or its designee copies of the following reports:
(a) the Company's annual statement (prepared under statutory
accounting principles) and annual report (prepared under generally accepted
accounting principles ("GAAP"), if any), as soon as practical and in any event
within 90 days after the end of each fiscal year;
(b) the Company's quarterly statements (statutory) (and GAAP, if
any), as soon as practical and in any event within 45 days after the end of each
quarterly period.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed in its name and on its behalf by its duly authorized
representative and its seal to be hereunder affixed hereto as of the date
specified above.
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
By: ______________________________
Name:
Title:
MORGAN STANLEY UNIVERSAL FUNDS, INC.
By: ______________________________
Name:
Title:
MORGAN STANLEY ASSET MANAGEMENT INC.
By: ______________________________
Name:
Title:
MILLER ANDERSON & SHERRERD, LLP
By: ______________________________
Name:
Title:
<PAGE>
SCHEDULE A
SEPARATE ACCOUNTS AND CONTRACTS
Name of Separate Account and
Date Established by Board of Directors
~Form Number and Name of Contract Funded by Separate Account
~~United of Omaha Separate Account C (12/1/93)~6016l-0194, Series I Variable
Annuity 6090l-0595, Series V Variable Annuity~~United of Omaha Separate Account
B (8/27/96)~6347L-0697, Modified Single Premium Variable Universal Life
6387L-1197, Flexible Premium Variable Universal Life~~
A-1
<PAGE>
SCHEDULE B
PORTFOLIOS OF MORGAN STANLEY
UNIVERSAL FUNDS, INC.
Morgan Stanley Emerging Markets Equity Portfolio
Morgan Stanley Fixed Income Portfolio
B-1
<PAGE>
SCHEDULE C
PROXY VOTING PROCEDURES
The following is a list of procedures and corresponding responsibilities for the
handling of proxies and voting instructions relating to the Fund. The defined
terms herein shall have the meanings assigned in the Participation Agreement
except that the term "Company" shall also include the department or third party
assigned by the Company to perform the steps delineated below.
. The proxy proposals are given to the Company by the Fund as early as possible
before the date set by the Fund for the shareholder meeting to enable the
Company to consider and prepare for the solicitation of voting instructions from
owners of the Contracts and to facilitate the establishment of tabulation
procedures. At this time the Fund will inform the Company of the Record, Mailing
and Meeting dates. This will be done verbally approximately two months before
meeting.
. Promptly after the Record Date, the Company will perform a "tape run", or
other activity, which will generate the names, addresses and number of units
which are attributed to each contract owner/policyholder (the "Customer") as of
the Record Date. Allowance should be made for account adjustments made after
this date that could affect the status of the Customers' accounts as of the
Record Date.
Note: The number of proxy statements is determined by the activities described
in this Step #2. The Company will use its best efforts to call in the number of
Customers to the Fund , as soon as possible, but no later than two weeks after
the Record Date.
. The Fund's Annual Report must be sent to each Customer by the Company either
before or together with the Customers' receipt of voting, instruction
solicitation material. The Fund will provide the last Annual Report to the
Company pursuant to the terms of Section 3.3 of the Agreement to which this
Schedule relates.
. The text and format for the Voting Instruction Cards ("Cards" or "Card") is
provided to the Company by the Fund. The Company, at its expense, shall produce
and personalize the Voting Instruction Cards. The Fund or its affiliate must
approve the Card before it is printed. Allow approximately 2-4 business days for
printing information on the Cards. Information commonly found on the Cards
includes:
C-1
. name (legal name as found on account registration)
. address
. fund or account number
. coding to state number of units
. individual Card number for use in tracking and verification of
votes (already on Cards asprinted by the Fund).
(This and related steps may occur later in the chronological process due to
possible uncertainties relating to the proposals.)
. During this time, the Fund will develop, produce and pay for the Notice of
Proxy and the Proxy Statement (one document). Printed and folded notices and
statements will be sent to Company for insertion into envelopes (envelopes and
return envelopes are provided and paid for by the Company). Contents of envelope
sent to Customers by the Company will include:
. Voting Instruction Card(s)
. One proxy notice and statement (one document)
. return envelope (postage pre-paid by Company) addressed to the
Company or its tabulation agent
. "urge buckslip" - optional, but recommended. (This is a small,
single sheet of paper that requests Customers to vote as
quickly as possible and that their vote is important. One copy
will be supplied by the Fund.)
. cover letter - optional, supplied by Company and reviewed and
approved in advance by the Fund.
. The above contents should be received by the Company approximately 3-5
business days before mail date. Individual in charge at Company reviews and
approves the contents of the mailing package to ensure correctness and
completeness. Copy of this approval sent to the Fund.
. Package mailed by the Company.
* The Fund must allow at least a 15-day solicitation time to the Company as the
shareowner. (A 5-week period is recommended.) Solicitation time is calculated as
calendar days from (but not including,) the meeting, counting backwards.
. Collection and tabulation of Cards begins. Tabulation usually takes place in
another department or another vendor depending on process used. An often used
procedure is to sort Cards on arrival by proposal into vote categories of all
yes, no, or mixed replies, and to begin data entry.
C-2
Note: Postmarks are not generally needed. A need for postmark information would
be due to an insurance company's internal procedure and has not been required by
the Fund in the past.
. Signatures on Card checked against legal name on account registration which
was printed on the Card. Note: For Example, if the account registration is under
"John A. Smith, Trustee," then that is the exact legal name to be printed on the
Card and is the signature needed on the Card.
. If Cards are mutilated, or for any reason are illegible or are not signed
properly, they are sent back to Customer with an explanatory letter and a new
Card and return envelope. The mutilated or illegible Card is disregarded and
considered to be not received for purposes of vote tabulation. Any Cards that
have been "kicked out" (e.g. mutilated, illegible) of the procedure are "hand
verified," i.e., examined as to why they did not complete the system. Any
questions on those Cards are usually remedied individually.
. There are various control procedures used to ensure proper tabulation of votes
and accuracy of that tabulation. The most prevalent is to sort the Cards as they
first arrive into categories depending upon their vote; an estimate of how the
vote is progressing may then be calculated. If the initial estimates and the
actual vote do not coincide, then an internal audit of that vote should occur.
This may entail a recount.
. The actual tabulation of votes is done in units which is then converted to
shares. (It is very important that the Fund receives the tabulations stated in
terms of a percentage and the number of shares.)
The Fund must review and approve tabulation format.
. Final tabulation in shares is verbally given by the Company to the Fund on the
morning of the meeting not later than 10:00 a.m. Eastern time. The Fund may
request an earlier deadline if reasonable and if required to calculate the vote
in time for the meeting.
. A Certification of Mailing and Authorization to Vote Shares will be required
from the Company as well as an original copy of the final vote. The Fund will
provide a standard form for each Certification.
C-3
. The Company will be required to box and archive the Cards received from the
Customers. In the event that any vote is challenged or if otherwise necessary
for legal, regulatory, or accounting purposes, the Fund will be permitted
reasonable access to such Cards.
. All approvals and "signing-off' may be done orally, but must always be
followed up in writing.
Exhibit (9): Opinion and Consent of Counsel
UNITED OF OMAHA LIFE INSURANCE COMPANY
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska 68175-1008
April 16, 1998
United of Omaha Life Insurance Company
Mutual of Omaha Plaza
Omaha, NE 68175-1008
Re: Registration Statement
To Whom It May Concern:
With reference to the Registration Statement on Form N-4 as amended, filed by
United of Omaha Life Insurance Company and United of Omaha Separate Account C
with the Securities and Exchange Commission covering individual variable annuity
contracts, I have examined such documents and such laws I considered necessary
and appropriate and on the basis of such examination, it is my opinion that:
1. United of Omaha Life Insurance Company is duly organized and validly
existing under the laws of the State of Nebraska and has been duly
authorized to issue individual variable annuity contracts by the
Insurance Department of the State of Nebraska.
2. United of Omaha Separate Account C is a duly authorized and existing
separate account to establish pursuant to the provision of Nebraska
Revised Statutes ss.ss.44-2221 and 44-402.01(1991).
3. The individual variable annuity contracts, when issued as contemplated
by said Form N-4 Registration Statement, will constitute legal, validly
issued and binding obligations of United of Omaha Life Insurance
Company.
I hereby consent to the filing of this opinion as an Exhibit to said Form N-4
Registration Statement and to the use of my name under the caption "Legal
Matters" in the Registration Statement.
Sincerely,
/s/ Kenneth W. Reitz
Kenneth W. Reitz
First V.P. & Counsel
United of Omaha Life Insurance Company
Exhibit (10): Consents of Independent Auditors
Coopers & Lybrand L.L.P.
1200 Landmark Center
1299 Farnam, Suite 1000
Omaha, Nebraska 68102-1842
CONSENT OF INDEPENDENT ACCOUNTANTS
Board of Directors
United of Omaha Life Insurance Company
We consent to the inclusion in Part B of the Statement of Additional Information
filed as part of the Post-Effective Amendment No. 4 to the registration
statement of the United of Omaha Separate Account C on Form N-4 (File No.
33-89848) of our report, which includes an explanatory paragraph regarding the
change in opinion as required by Financial Accounting Standards Board
Interpretation 40, Applicability of Generally Accepted Accounting Principles to
Mutual Life Insurance and Other Enterprises, as amended (FIN 40), dated February
23, 1996 (except for the change in our opinion as required by FIN 40, for which
the date is April 9, 1997, on our audit of the financial statements of United of
Omaha Life Insurance Company (United) for the year ended December 31, 1995.
We also consent to the reference to our Firm as independent auditors for United.
/s/ Coopers & Lybrand L.L.P.
Omaha, Nebraska
April 15, 1998
<PAGE>
INDEPENDENT AUDITOR'S CONSENT
We consent to the use in this Post-Effective Amendment No. 4 to Registration
Statement No. 33-89848 of United of Omaha Separate Account C of our report dated
March 23, 1998 on the financial statements of United of Omaha Separate Account C
and our report dated February 17, 1998 on the financial statements of United of
Omaha Life Insurance Company appearing in the Statement of Additional
Information, which is a part of such Registration Statement, and to the related
reference to us under the heading ""Financial Statements."
DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 15, 1998
Exhibit (13): Schedules of Computation of Performance Data
Alger American Growth
12/1997
Assume ($10000 @ $10.00 on 1/ 9/1989)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
4/90 0.0600000000 12.18 0.493 100.492611
4/91 0.0470000000 15.77 0.300 100.792113
4/92 0.0490000000 16.96 0.291 101.083317
4/93 0.0250000000 19.63 0.129 101.212053
5/94 1.7590000000 21.45 8.300 109.511913
5/95 0.3180000000 25.96 1.341 110.853392
5/96 0.9520000000 33.02 3.196 114.049407
5/97 0.3570000000 37.31 1.091 115.140686
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12 1996 34.33 114.0494069 3915.31614 1000.00000 1000.00000
1 1997 36.86 114.0494069 4203.86114 1.08333 1072.61314 1.37503 1072.32144
2 1997 35.51 114.0494069 4049.89444 1.16200 1032.16662 1.47448 1031.57312
3 1997 34.09 114.0494069 3887.94428 1.11818 989.77340 1.41845 988.90337
4 1997 35.60 114.0494069 4060.15889 1.07225 1032.54267 1.35978 1031.34659
5 1997 37.43 115.1406864 4309.71589 1.11859 1094.88915 1.41814 1093.32000
6 1997 39.53 115.1406864 4551.51133 1.18613 1155.13148 1.50335 1153.15707
7 1997 43.66 115.1406864 5027.04237 1.25139 1274.56547 1.58563 1272.05054
8 1997 41.90 115.1406864 4824.39476 1.38078 1221.80505 1.74911 1219.02316
9 1997 44.28 115.1406864 5098.42960 1.32362 1289.88229 1.67620 1286.58981
10 1997 42.19 115.1406864 4857.78556 1.39737 1227.60294 1.76910 1224.09413
11 1997 42.92 115.1406864 4941.83826 1.32990 1247.51385 1.68317 1243.59107
12 1997 42.76 115.1406864 4923.41575 1.35147 1241.51181 1.70998 1237.24515
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 25.75%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1241.51 1167.64
TOTAL RETURN 24.15% 16.76%
WITH DEATH BENEFIT CHARGE
ERV 1237.25 1163.63
TOTAL RETURN 23.72% 16.36%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 34.33 114.0494069 3915.31614 1000.00000 1000.00000
1 1997 36.86 114.0494069 4203.86114 1.08333 1072.61314 1.37503 1072.32144
2 1997 35.51 114.0494069 4049.89444 1.16200 1032.16662 1.47448 1031.57312
3 1997 34.09 114.0494069 3887.94428 1.11818 989.77340 1.41845 988.90337
4 1997 35.60 114.0494069 4060.15889 1.07225 1032.54267 1.35978 1031.34659
5 1997 37.43 115.1406864 4309.71589 1.11859 1094.88915 1.41814 1093.32000
6 1997 39.53 115.1406864 4551.51133 1.18613 1155.13148 1.50335 1153.15707
7 1997 43.66 115.1406864 5027.04237 1.25139 1274.56547 1.58563 1272.05054
8 1997 41.90 115.1406864 4824.39476 1.38078 1221.80505 1.74911 1219.02316
9 1997 44.28 115.1406864 5098.42960 1.32362 1289.88229 1.67620 1286.58981
10 1997 42.19 115.1406864 4857.78556 1.39737 1227.60294 1.76910 1224.09413
11 1997 42.92 115.1406864 4941.83826 1.32990 1247.51385 1.68317 1243.59107
12 1997 42.76 115.1406864 4923.41575 1.35147 1241.51181 1.70998 1237.24515
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 25.75%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1241.51 1167.64
TOTAL RETURN 24.15% 16.76%
WITH DEATH BENEFIT CHARGE
ERV 1237.25 1163.63
TOTAL RETURN 23.72% 16.36%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 23.13 109.5119128 2533.01054 1000.00000 1000.00000
1 1995 23.07 109.5119128 2526.43983 1.08333 996.32263 1.37503 996.03093
2 1995 24.14 109.5119128 2643.61757 1.07935 1041.45331 1.36958 1040.85785
3 1995 24.71 109.5119128 2706.03936 1.12824 1064.91613 1.43121 1064.00364
4 1995 26.05 109.5119128 2852.78533 1.15366 1121.51187 1.46304 1120.24052
5 1995 26.27 110.8533915 2912.11860 1.21497 1143.62251 1.54037 1141.99932
6 1995 28.60 110.8533915 3170.40700 1.23892 1243.81642 1.57029 1241.71790
7 1995 30.91 110.8533915 3426.47833 1.34747 1342.93105 1.70740 1340.30309
8 1995 31.52 110.8533915 3494.09890 1.45484 1367.97856 1.84296 1364.91063
9 1995 32.73 110.8533915 3628.23150 1.48198 1419.01099 1.87680 1415.43046
10 1995 31.63 110.8533915 3506.29277 1.53726 1369.78317 1.94626 1365.91397
11 1995 31.59 110.8533915 3501.85864 1.48393 1366.56698 1.87818 1362.30843
12 1995 31.16 110.8533915 3454.19168 1.48045 1346.48496 1.87322 1341.89160
1 1996 32.17 110.8533915 3566.15361 1.45869 1388.67035 1.84515 1383.54166
2 1996 33.26 110.8533915 3686.98380 1.50439 1434.21758 1.90242 1428.51709
3 1996 32.70 110.8533915 3624.90590 1.55374 1408.51586 1.96426 1402.50083
4 1996 33.53 110.8533915 3716.91422 1.52589 1442.74129 1.92849 1436.17099
5 1996 33.06 114.0494069 3770.47339 1.56297 1461.96762 1.97478 1454.89083
6 1996 32.25 114.0494069 3678.09337 1.58380 1424.56429 2.00052 1417.24416
7 1996 29.89 114.0494069 3408.93677 1.54328 1318.77383 1.94876 1311.58389
8 1996 31.14 114.0494069 3551.49853 1.42867 1372.49628 1.80347 1364.63087
9 1996 33.15 114.0494069 3780.73784 1.48687 1459.60021 1.87641 1450.83757
10 1996 33.47 114.0494069 3817.23365 1.58123 1472.10864 1.99495 1462.84768
11 1996 35.37 114.0494069 4033.92752 1.59478 1554.08142 2.01146 1543.87807
12 1996 34.33 114.0494069 3915.31614 1.68359 1506.70247 2.12288 1496.35984
1 1997 36.86 114.0494069 4203.86114 1.63226 1616.10887 2.05754 1604.57874
2 1997 35.51 114.0494069 4049.89444 1.75078 1555.16799 2.20635 1543.60459
3 1997 34.09 114.0494069 3887.94428 1.68477 1491.29403 2.12251 1479.75529
4 1997 35.60 114.0494069 4060.15889 1.61557 1555.73460 2.03471 1543.26561
5 1997 37.43 115.1406864 4309.71589 1.68538 1649.67220 2.12204 1636.00014
6 1997 39.53 115.1406864 4551.51133 1.78714 1740.43946 2.24955 1725.53793
7 1997 43.66 115.1406864 5027.04237 1.88548 1920.39095 2.37267 1903.44534
8 1997 41.90 115.1406864 4824.39476 2.08042 1840.89669 2.61730 1824.09731
9 1997 44.28 115.1406864 5098.42960 1.99430 1943.46883 2.50819 1925.20132
10 1997 42.19 115.1406864 4857.78556 2.10542 1849.63238 2.64722 1831.68530
11 1997 42.92 115.1406864 4941.83826 2.00377 1879.63220 2.51863 1860.85974
12 1997 42.76 115.1406864 4923.41575 2.03627 1870.58892 2.55874 1851.36396
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 94.37%
GROSS ANNUAL RETURN = 24.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1870.59 1791.09
TOTAL RETURN 87.06% 79.11%
AVERAGE ANNUAL RETURN 23.21% 21.44%
WITH DEATH BENEFIT CHARGE
ERV 1851.36 1772.68
TOTAL RETURN 85.14% 77.27%
AVERAGE ANNUAL RETURN 22.79% 21.03%
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1992 20.17 101.0833169 2038.85050 1000.00000 1000.00000
1 1993 20.90 101.0833169 2112.64132 1.08333 1035.10903 1.37503 1034.81733
2 1993 19.96 101.0833169 2017.62300 1.12137 987.43252 1.42291 986.85240
3 1993 20.59 101.0833169 2081.30549 1.06972 1017.52926 1.35695 1016.64359
4 1993 19.70 101.2120526 1993.87744 1.10232 973.68424 1.39792 972.54018
5 1993 20.98 101.2120526 2123.42886 1.05482 1035.89418 1.33728 1034.39333
6 1993 21.20 101.2120526 2145.69552 1.12222 1045.63453 1.42233 1043.81784
7 1993 21.32 101.2120526 2157.84096 1.13277 1050.42045 1.43528 1048.29096
8 1993 22.50 101.2120526 2277.27118 1.13796 1107.42021 1.44143 1104.86938
9 1993 23.30 101.2120526 2358.24083 1.19971 1145.59544 1.51923 1142.63439
10 1993 23.68 101.2120526 2396.70141 1.24106 1163.03791 1.57116 1159.69847
11 1993 23.29 101.2120526 2357.22871 1.25996 1142.62319 1.59462 1139.00408
12 1993 24.67 101.2120526 2496.90134 1.23784 1209.08909 1.56617 1204.92721
1 1994 25.75 101.2120526 2606.21035 1.30985 1260.71058 1.65682 1256.01954
2 1994 25.50 101.2120526 2580.90734 1.36577 1247.10490 1.72707 1242.09810
3 1994 23.64 101.2120526 2392.65292 1.35103 1154.78857 1.70793 1149.79008
4 1994 23.94 101.2120526 2423.01654 1.25102 1168.19223 1.58100 1162.80033
5 1994 21.72 109.5119128 2378.59875 1.26554 1145.51184 1.59889 1139.88544
6 1994 20.68 109.5119128 2264.70636 1.24097 1089.42132 1.56738 1083.73790
7 1994 21.42 109.5119128 2345.74517 1.18021 1127.22427 1.49018 1121.02752
8 1994 23.15 109.5119128 2535.20078 1.22116 1217.04410 1.54145 1210.02657
9 1994 22.44 109.5119128 2457.44732 1.31846 1178.39945 1.66383 1171.25178
10 1994 23.48 109.5119128 2571.33971 1.27660 1231.73673 1.61051 1223.92388
11 1994 22.58 109.5119128 2472.77899 1.33438 1183.18927 1.68294 1175.32734
12 1994 23.13 109.5119128 2533.01054 1.28179 1210.72741 1.61611 1202.33966
1 1995 23.07 109.5119128 2526.43983 1.31162 1206.27512 1.65326 1197.56749
2 1995 24.14 109.5119128 2643.61757 1.30680 1260.91607 1.64670 1251.46467
3 1995 24.71 109.5119128 2706.03936 1.36599 1289.32316 1.72081 1279.29378
4 1995 26.05 109.5119128 2852.78533 1.39677 1357.84517 1.75907 1346.90960
5 1995 26.27 110.8533915 2912.11860 1.47100 1384.61513 1.85205 1373.07107
6 1995 28.60 110.8533915 3170.40700 1.50000 1505.92264 1.88802 1492.96667
7 1995 30.91 110.8533915 3426.47833 1.63142 1625.92343 2.05288 1611.49956
8 1995 31.52 110.8533915 3494.09890 1.76142 1656.24915 2.21587 1641.08618
9 1995 32.73 110.8533915 3628.23150 1.79427 1718.03551 2.25655 1701.82818
10 1995 31.63 110.8533915 3506.29277 1.86121 1658.43403 2.34007 1642.29254
11 1995 31.59 110.8533915 3501.85864 1.79664 1654.54010 2.25821 1637.95745
12 1995 31.16 110.8533915 3454.19168 1.79242 1630.22625 2.25225 1613.40949
1 1996 32.17 110.8533915 3566.15361 1.76608 1681.30126 2.21849 1663.48701
2 1996 33.26 110.8533915 3686.98380 1.82141 1736.44654 2.28735 1717.56275
3 1996 32.70 110.8533915 3624.90590 1.88115 1705.32877 2.36171 1686.28237
4 1996 33.53 110.8533915 3716.91422 1.84744 1746.76643 2.31869 1726.76534
5 1996 33.06 114.0494069 3770.47339 1.89233 1770.04428 2.37436 1749.27295
6 1996 32.25 114.0494069 3678.09337 1.91755 1724.75904 2.40531 1704.00886
7 1996 29.89 114.0494069 3408.93677 1.86849 1596.67562 2.34307 1576.96933
8 1996 31.14 114.0494069 3551.49853 1.72973 1661.71888 2.16839 1640.74981
9 1996 33.15 114.0494069 3780.73784 1.80020 1767.17799 2.25609 1744.39954
10 1996 33.47 114.0494069 3817.23365 1.91444 1782.32228 2.39861 1758.83979
11 1996 35.37 114.0494069 4033.92752 1.93085 1881.56897 2.41846 1856.26583
12 1996 34.33 114.0494069 3915.31614 2.03837 1824.20599 2.55243 1799.13278
1 1997 36.86 114.0494069 4203.86114 1.97622 1956.66732 2.47387 1929.24866
2 1997 35.51 114.0494069 4049.89444 2.11972 1882.88452 2.65278 1855.93702
3 1997 34.09 114.0494069 3887.94428 2.03979 1805.55056 2.55198 1779.16847
4 1997 35.60 114.0494069 4060.15889 1.95601 1883.57053 2.44642 1855.52945
5 1997 37.43 115.1406864 4309.71589 2.04053 1997.30335 2.55141 1967.02786
6 1997 39.53 115.1406864 4551.51133 2.16375 2107.19777 2.70473 2074.68269
7 1997 43.66 115.1406864 5027.04237 2.28280 2325.06996 2.85276 2288.58783
8 1997 41.90 115.1406864 4824.39476 2.51883 2228.82409 3.14688 2193.18454
9 1997 44.28 115.1406864 5098.42960 2.41456 2353.01099 3.01570 2314.74591
10 1997 42.19 115.1406864 4857.78556 2.54910 2239.40063 3.18285 2202.30788
11 1997 42.92 115.1406864 4941.83826 2.42602 2275.72224 3.02825 2237.38546
12 1997 42.76 115.1406864 4923.41575 2.46537 2264.77329 3.07648 2225.96831
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 141.48%
GROSS ANNUAL RETURN = 19.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2264.77 2207.02
TOTAL RETURN 126.48% 120.70%
AVERAGE ANNUAL RETURN 17.76% 17.16%
WITH DEATH BENEFIT CHARGE
ERV 2225.97 2169.21
TOTAL RETURN 122.60% 116.92%
AVERAGE ANNUAL RETURN 17.36% 16.75%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1988 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1989 10.31 100.0000000 1031.00000 1.08333 1029.91667 1.37503 1029.62497
2 1989 10.07 100.0000000 1007.00000 1.11574 1004.82614 1.41577 1004.24121
3 1989 10.25 100.0000000 1025.00000 1.08856 1021.69872 1.38087 1020.81103
4 1989 10.92 100.0000000 1092.00000 1.10684 1087.37609 1.40365 1086.13356
5 1989 11.40 100.0000000 1140.00000 1.17799 1133.99485 1.49347 1132.38223
6 1989 11.15 100.0000000 1115.00000 1.22849 1107.89805 1.55706 1105.99222
7 1989 11.98 100.0000000 1198.00000 1.20022 1189.16916 1.52078 1186.80091
8 1989 12.47 100.0000000 1247.00000 1.28827 1236.51970 1.63189 1233.71096
9 1989 12.59 100.0000000 1259.00000 1.33956 1247.07928 1.69639 1243.88669
10 1989 12.12 100.0000000 1212.00000 1.35100 1199.17330 1.71039 1195.74050
11 1989 12.41 100.0000000 1241.00000 1.29910 1226.56728 1.64418 1222.70727
12 1989 12.41 100.0000000 1241.00000 1.32878 1225.23850 1.68126 1221.02600
1 1990 11.27 100.0000000 1127.00000 1.32734 1111.35903 1.67895 1107.18189
2 1990 11.24 100.0000000 1124.00000 1.20397 1107.19670 1.52241 1102.71223
3 1990 11.74 100.0000000 1174.00000 1.19946 1155.24976 1.51627 1150.24900
4 1990 11.75 100.4926108 1180.78818 1.25152 1160.67800 1.58163 1155.31822
5 1990 13.27 100.4926108 1333.53695 1.25740 1309.56788 1.58860 1303.18355
6 1990 13.63 100.4926108 1369.71429 1.41870 1343.67626 1.79192 1336.74552
7 1990 13.12 100.4926108 1318.46305 1.45565 1291.94366 1.83807 1284.88982
8 1990 11.93 100.4926108 1198.87685 1.39961 1173.36319 1.76677 1166.58198
9 1990 11.42 100.4926108 1147.62562 1.27114 1121.93151 1.60409 1115.10725
10 1990 11.74 100.4926108 1179.78325 1.21543 1152.15374 1.53331 1144.82038
11 1990 12.43 100.4926108 1249.12315 1.24817 1218.62160 1.57417 1210.53122
12 1990 12.86 100.4926108 1292.33498 1.32017 1259.45808 1.66452 1250.74349
1 1991 13.73 100.4926108 1379.76355 1.36441 1343.29807 1.71981 1333.63851
2 1991 14.76 100.4926108 1483.27094 1.45524 1442.61464 1.83380 1431.85189
3 1991 15.33 100.4926108 1540.55172 1.56283 1496.76254 1.96884 1485.17814
4 1991 14.98 100.7921132 1509.86586 1.62149 1465.32740 2.04217 1453.55307
5 1991 15.50 100.7921132 1562.27776 1.58744 1514.60580 1.99868 1502.01150
6 1991 14.67 100.7921132 1478.62030 1.64082 1431.86028 2.06532 1419.51589
7 1991 15.81 100.7921132 1593.52331 1.55118 1541.57840 1.95188 1527.87404
8 1991 16.43 100.7921132 1656.01442 1.67004 1600.36242 2.10088 1585.68979
9 1991 16.59 100.7921132 1672.14116 1.73373 1614.21347 2.18038 1598.95131
10 1991 16.30 100.7921132 1642.91145 1.74873 1584.24763 2.19861 1568.80238
11 1991 16.00 100.7921132 1612.67381 1.71627 1553.37343 2.15716 1537.77156
12 1991 18.00 100.7921132 1814.25804 1.68282 1745.86229 2.11449 1727.87852
1 1992 18.60 100.7921132 1874.73331 1.89135 1802.16635 2.37589 1783.09858
2 1992 18.73 100.7921132 1887.83628 1.95235 1812.80978 2.45182 1793.10927
3 1992 17.57 100.7921132 1770.91743 1.96388 1698.57365 2.46558 1679.59154
4 1992 17.10 101.0833169 1728.52472 1.84012 1656.07260 2.30949 1637.07552
5 1992 17.04 101.0833169 1722.45972 1.79408 1648.46775 2.25103 1629.08036
6 1992 16.54 101.0833169 1671.91806 1.78584 1598.31137 2.24004 1579.03867
7 1992 17.36 101.0833169 1754.80638 1.73150 1675.81901 2.17123 1655.15109
8 1992 17.03 101.0833169 1721.44889 1.81547 1642.14753 2.27589 1621.41208
9 1992 17.66 101.0833169 1785.13138 1.77899 1701.11739 2.22950 1679.16436
10 1992 18.31 101.0833169 1850.83553 1.84288 1761.88642 2.30891 1738.65935
11 1992 19.38 101.0833169 1958.99468 1.90871 1862.93885 2.39071 1837.87243
12 1992 20.17 101.0833169 2038.85050 2.01818 1936.86090 2.52714 1910.26373
1 1993 20.90 101.0833169 2112.64132 2.09827 2004.86221 2.62668 1976.77401
2 1993 19.96 101.0833169 2017.62300 2.17193 1912.51944 2.71813 1885.14834
3 1993 20.59 101.0833169 2081.30549 2.07190 1970.81263 2.59214 1942.05738
4 1993 19.70 101.2120526 1993.87744 2.13505 1885.89093 2.67039 1857.80823
5 1993 20.98 101.2120526 2123.42886 2.04305 2006.38293 2.55455 1975.96407
6 1993 21.20 101.2120526 2145.69552 2.17358 2025.24863 2.71702 1993.96736
7 1993 21.32 101.2120526 2157.84096 2.19402 2034.51829 2.74177 2002.51220
8 1993 22.50 101.2120526 2277.27118 2.20406 2144.91889 2.75352 2110.59190
9 1993 23.30 101.2120526 2358.24083 2.32366 2218.85902 2.90213 2182.73303
10 1993 23.68 101.2120526 2396.70141 2.40376 2252.64265 3.00133 2215.32993
11 1993 23.29 101.2120526 2357.22871 2.44036 2213.10218 3.04615 2175.79819
12 1993 24.67 101.2120526 2496.90134 2.39753 2341.83737 2.99179 2301.72874
1 1994 25.75 101.2120526 2606.21035 2.53699 2441.82102 3.16495 2399.32856
2 1994 25.50 101.2120526 2580.90734 2.64531 2415.46872 3.29916 2372.73495
3 1994 23.64 101.2120526 2392.65292 2.61676 2236.66483 3.26259 2196.40229
4 1994 23.94 101.2120526 2423.01654 2.42305 2262.62585 3.02013 2221.25529
5 1994 21.72 109.5119128 2378.59875 2.45118 2218.69710 3.05430 2177.48180
6 1994 20.68 109.5119128 2264.70636 2.40359 2110.05755 2.99411 2070.22521
7 1994 21.42 109.5119128 2345.74517 2.28590 2183.27662 2.84663 2141.45821
8 1994 23.15 109.5119128 2535.20078 2.36522 2357.24513 2.94458 2311.46987
9 1994 22.44 109.5119128 2457.44732 2.55368 2282.39581 3.17835 2237.39979
10 1994 23.48 109.5119128 2571.33971 2.47260 2385.70270 3.07650 2338.01740
11 1994 22.58 109.5119128 2472.77899 2.58451 2291.67303 3.21485 2245.18519
12 1994 23.13 109.5119128 2533.01054 2.48265 2345.01058 3.08720 2296.78584
1 1995 23.07 109.5119128 2526.43983 2.54043 2336.38712 3.15816 2287.66974
2 1995 24.14 109.5119128 2643.61757 2.53109 2442.21902 3.14562 2390.62757
3 1995 24.71 109.5119128 2706.03936 2.64574 2497.23960 3.28719 2443.78850
4 1995 26.05 109.5119128 2852.78533 2.70534 2629.95721 3.36029 2572.95256
5 1995 26.27 110.8533915 2912.11860 2.84912 2681.80689 3.53790 2622.92787
6 1995 28.60 110.8533915 3170.40700 2.90529 2916.76266 3.60661 2851.96008
7 1995 30.91 110.8533915 3426.47833 3.15983 3149.18752 3.92154 3078.38916
8 1995 31.52 110.8533915 3494.09890 3.41162 3207.92421 4.23289 3134.90740
9 1995 32.73 110.8533915 3628.23150 3.47525 3327.59580 4.31060 3250.94065
10 1995 31.63 110.8533915 3506.29277 3.60490 3212.15603 4.47015 3137.21187
11 1995 31.59 110.8533915 3501.85864 3.47984 3204.61403 4.31377 3128.93071
12 1995 31.16 110.8533915 3454.19168 3.47167 3157.52147 4.30238 3082.03763
1 1996 32.17 110.8533915 3566.15361 3.42065 3256.44667 4.23790 3177.69889
2 1996 33.26 110.8533915 3686.98380 3.52782 3363.25541 4.36944 3280.99783
3 1996 32.70 110.8533915 3624.90590 3.64353 3302.98461 4.51148 3221.24405
4 1996 33.53 110.8533915 3716.91422 3.57823 3383.24360 4.42932 3298.57720
5 1996 33.06 114.0494069 3770.47339 3.66518 3428.32954 4.53565 3341.57266
6 1996 32.25 114.0494069 3678.09337 3.71402 3340.61833 4.59477 3255.10632
7 1996 29.89 114.0494069 3408.93677 3.61900 3092.53858 4.47588 3012.42731
8 1996 31.14 114.0494069 3551.49853 3.35025 3218.51831 4.14219 3134.26486
9 1996 33.15 114.0494069 3780.73784 3.48673 3422.77795 4.30972 3332.26318
10 1996 33.47 114.0494069 3817.23365 3.70801 3452.11033 4.58197 3359.84785
11 1996 35.37 114.0494069 4033.92752 3.73979 3644.33737 4.61990 3545.95728
12 1996 34.33 114.0494069 3915.31614 3.94803 3533.23325 4.87581 3436.81810
1 1997 36.86 114.0494069 4203.86114 3.82767 3789.79241 4.72574 3685.37374
2 1997 35.51 114.0494069 4049.89444 4.10561 3646.88540 5.06751 3545.32916
3 1997 34.09 114.0494069 3887.94428 3.95079 3497.10027 4.87495 3398.68099
4 1997 35.60 114.0494069 4060.15889 3.78853 3648.21411 4.67330 3544.55061
5 1997 37.43 115.1406864 4309.71589 3.95223 3868.49876 4.87388 3757.54196
6 1997 39.53 115.1406864 4551.51133 4.19087 4081.34896 5.16675 3963.19109
7 1997 43.66 115.1406864 5027.04237 4.42146 4503.33710 5.44952 4371.80631
8 1997 41.90 115.1406864 4824.39476 4.87862 4316.92222 6.01138 4189.56087
9 1997 44.28 115.1406864 5098.42960 4.67667 4557.45497 5.76079 4421.77514
10 1997 42.19 115.1406864 4857.78556 4.93724 4337.40750 6.08009 4206.98887
11 1997 42.92 115.1406864 4941.83826 4.69886 4407.75741 5.78475 4273.99629
12 1997 42.76 115.1406864 4923.41575 4.77507 4386.55081 5.87689 4252.18652
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 392.34%
GROSS ANNUAL RETURN = 19.43%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4386.55 4386.55
TOTAL RETURN 338.66% 338.66%
AVERAGE ANNUAL RETURN 17.91% 17.91%
WITH DEATH BENEFIT CHARGE
ERV 4252.19 4252.19
TOTAL RETURN 325.22% 325.22%
AVERAGE ANNUAL RETURN 17.50% 17.50%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 28.60 110.8533915 3170.40700 1000.00000 1000.00000
7 1995 30.91 110.8533915 3426.47833 1.08333 1079.68590 1.37503 1079.39420
8 1995 31.52 110.8533915 3494.09890 1.16966 1099.82353 1.48420 1099.21153
9 1995 32.73 110.8533915 3628.23150 1.19148 1140.85244 1.51145 1139.89697
10 1995 31.63 110.8533915 3506.29277 1.23592 1101.27439 1.56740 1100.01956
11 1995 31.59 110.8533915 3501.85864 1.19305 1098.68865 1.51256 1097.11589
12 1995 31.16 110.8533915 3454.19168 1.19025 1082.54316 1.50857 1080.67348
1 1996 32.17 110.8533915 3566.15361 1.17276 1116.45925 1.48596 1114.21577
2 1996 33.26 110.8533915 3686.98380 1.20950 1153.07819 1.53208 1150.43610
3 1996 32.70 110.8533915 3624.90590 1.24917 1132.41459 1.58189 1129.48427
4 1996 33.53 110.8533915 3716.91422 1.22678 1159.93106 1.55308 1156.60006
5 1996 33.06 114.0494069 3770.47339 1.25659 1175.38858 1.59036 1171.67582
6 1996 32.25 114.0494069 3678.09337 1.27334 1145.31716 1.61109 1141.35760
7 1996 29.89 114.0494069 3408.93677 1.24076 1060.26404 1.56940 1056.26560
8 1996 31.14 114.0494069 3551.49853 1.14862 1103.45567 1.45240 1098.98623
9 1996 33.15 114.0494069 3780.73784 1.19541 1173.48524 1.51114 1168.41158
10 1996 33.47 114.0494069 3817.23365 1.27128 1183.54173 1.60660 1178.08376
11 1996 35.37 114.0494069 4033.92752 1.28217 1249.44597 1.61990 1243.34043
12 1996 34.33 114.0494069 3915.31614 1.35357 1211.35439 1.70963 1205.07230
1 1997 36.86 114.0494069 4203.86114 1.31230 1299.31463 1.65701 1292.22487
2 1997 35.51 114.0494069 4049.89444 1.40759 1250.31956 1.77685 1243.12019
3 1997 34.09 114.0494069 3887.94428 1.35451 1198.96635 1.70933 1191.70006
4 1997 35.60 114.0494069 4060.15889 1.29888 1250.77510 1.63863 1242.84720
5 1997 37.43 115.1406864 4309.71589 1.35501 1326.29878 1.70896 1317.52965
6 1997 39.53 115.1406864 4551.51133 1.43682 1399.27359 1.81165 1389.63765
7 1997 43.66 115.1406864 5027.04237 1.51588 1543.95047 1.91080 1532.91287
8 1997 41.90 115.1406864 4824.39476 1.67261 1480.03890 2.10781 1469.01105
9 1997 44.28 115.1406864 5098.42960 1.60338 1562.50456 2.01994 1550.43374
10 1997 42.19 115.1406864 4857.78556 1.69271 1487.06220 2.13190 1475.12193
11 1997 42.92 115.1406864 4941.83826 1.61098 1511.18137 2.02834 1498.61715
12 1997 42.76 115.1406864 4923.41575 1.63711 1503.91078 2.06065 1490.96986
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 55.29%
GROSS ANNUAL RETURN = 18.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1503.91 1439.99
TOTAL RETURN 50.39% 44.00%
AVERAGE ANNUAL RETURN 17.11% 15.16%
WITH DEATH BENEFIT CHARGE
ERV 1490.97 1427.60
TOTAL RETURN 49.10% 42.76%
AVERAGE ANNUAL RETURN 16.72% 14.77%
Alger American Small Capitalization
12/1997
Assume ($10000 @ $10.00 on 9/21/1988)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/88 0.0650000000 9.60 0.677 100.677083
4/90 0.1400000000 16.33 0.863 101.540206
4/91 0.0200000000 22.07 0.092 101.632222
4/92 0.3810000000 21.55 1.797 103.429061
5/94 2.0910000000 25.74 8.402 111.831166
5/96 0.1640000000 45.19 0.406 112.237015
5/97 1.5570000000 37.42 4.670 116.907058
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 40.91 112.2370145 4591.61626 1000.00000 1000.00000
1 1997 41.55 112.2370145 4663.44795 1.08333 1014.56076 1.37503 1014.26906
2 1997 38.60 112.2370145 4332.34876 1.09911 941.42906 1.39465 940.86253
3 1997 36.06 112.2370145 4047.26674 1.01988 878.46022 1.29372 877.65713
4 1997 35.68 112.2370145 4004.61668 0.95167 868.25135 1.20681 867.20158
5 1997 37.56 116.9070581 4391.02910 0.94061 951.08983 1.19243 949.68694
6 1997 39.53 116.9070581 4621.33601 1.03035 999.94358 1.30585 998.19161
7 1997 43.50 116.9070581 5085.45703 1.08327 1099.28470 1.37255 1097.06750
8 1997 43.38 116.9070581 5071.42818 1.19089 1095.06130 1.50850 1092.53260
9 1997 46.66 116.9070581 5454.88333 1.18632 1176.67353 1.50227 1173.63768
10 1997 43.95 116.9070581 5138.06520 1.27473 1107.05792 1.61379 1103.85934
11 1997 43.44 116.9070581 5078.44260 1.19931 1093.01221 1.51784 1089.53220
12 1997 43.75 116.9070581 5114.68379 1.18410 1099.62815 1.49814 1095.80927
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1099.63 1034.20
TOTAL RETURN 9.96% 3.42%
WITH DEATH BENEFIT CHARGE
ERV 1095.81 1030.61
TOTAL RETURN 9.58% 3.06%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 40.91 112.2370145 4591.61626 1000.00000 1000.00000
1 1997 41.55 112.2370145 4663.44795 1.08333 1014.56076 1.37503 1014.26906
2 1997 38.60 112.2370145 4332.34876 1.09911 941.42906 1.39465 940.86253
3 1997 36.06 112.2370145 4047.26674 1.01988 878.46022 1.29372 877.65713
4 1997 35.68 112.2370145 4004.61668 0.95167 868.25135 1.20681 867.20158
5 1997 37.56 116.9070581 4391.02910 0.94061 951.08983 1.19243 949.68694
6 1997 39.53 116.9070581 4621.33601 1.03035 999.94358 1.30585 998.19161
7 1997 43.50 116.9070581 5085.45703 1.08327 1099.28470 1.37255 1097.06750
8 1997 43.38 116.9070581 5071.42818 1.19089 1095.06130 1.50850 1092.53260
9 1997 46.66 116.9070581 5454.88333 1.18632 1176.67353 1.50227 1173.63768
10 1997 43.95 116.9070581 5138.06520 1.27473 1107.05792 1.61379 1103.85934
11 1997 43.44 116.9070581 5078.44260 1.19931 1093.01221 1.51784 1089.53220
12 1997 43.75 116.9070581 5114.68379 1.18410 1099.62815 1.49814 1095.80927
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1099.63 1034.20
TOTAL RETURN 9.96% 3.42%
WITH DEATH BENEFIT CHARGE
ERV 1095.81 1030.61
TOTAL RETURN 9.58% 3.06%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 27.31 111.8311656 3054.10913 1000.00000 1000.00000
1 1995 26.84 111.8311656 3001.54849 1.08333 981.70685 1.37503 981.41515
2 1995 28.76 111.8311656 3216.26432 1.06352 1050.86976 1.34948 1050.27123
3 1995 29.59 111.8311656 3309.08419 1.13844 1080.05892 1.44416 1079.13740
4 1995 30.89 111.8311656 3454.46471 1.17006 1126.33991 1.48385 1125.06412
5 1995 32.07 111.8311656 3586.42548 1.22020 1168.14596 1.54700 1166.49464
6 1995 36.02 111.8311656 4028.15859 1.26549 1310.75876 1.60397 1308.56556
7 1995 41.18 111.8311656 4605.20740 1.41999 1497.10987 1.79932 1494.22316
8 1995 41.72 111.8311656 4665.59623 1.62187 1515.11985 2.05461 1511.76255
9 1995 42.83 111.8311656 4789.72882 1.64138 1553.78966 2.07872 1549.90569
10 1995 40.83 111.8311656 4566.06649 1.68327 1479.55025 2.13117 1475.39975
11 1995 40.76 111.8311656 4558.23831 1.60285 1475.41083 2.02872 1470.84157
12 1995 39.41 111.8311656 4407.26624 1.59836 1424.94582 2.02246 1420.10380
1 1996 39.55 111.8311656 4422.92260 1.54369 1428.46410 1.95269 1423.19588
2 1996 41.24 111.8311656 4611.91727 1.54750 1487.95590 1.95694 1482.05313
3 1996 40.87 111.8311656 4570.53974 1.61195 1472.99420 2.03787 1466.71846
4 1996 44.02 111.8311656 4922.80791 1.59574 1584.92749 2.01679 1577.74702
5 1996 45.10 112.2370145 5061.88935 1.71700 1627.98859 2.16945 1620.15280
6 1996 42.33 112.2370145 4750.99282 1.76365 1526.23539 2.22776 1518.41676
7 1996 37.34 112.2370145 4190.93012 1.65342 1344.66431 2.08787 1337.33291
8 1996 39.67 112.2370145 4452.44237 1.45672 1427.11407 1.83888 1418.94303
9 1996 42.45 112.2370145 4764.46127 1.54604 1525.57753 1.95109 1516.42884
10 1996 40.49 112.2370145 4544.47672 1.65271 1453.48591 2.08514 1444.32719
11 1996 41.18 112.2370145 4621.92026 1.57461 1476.68051 1.98600 1466.95433
12 1996 40.91 112.2370145 4591.61626 1.59974 1465.39879 2.01711 1455.31901
1 1997 41.55 112.2370145 4663.44795 1.58752 1486.73612 2.00111 1476.08505
2 1997 38.60 112.2370145 4332.34876 1.61063 1379.56901 2.02967 1369.25512
3 1997 36.06 112.2370145 4047.26674 1.49453 1287.29455 1.88277 1277.27111
4 1997 35.68 112.2370145 4004.61668 1.39457 1272.33448 1.75629 1262.05495
5 1997 37.56 116.9070581 4391.02910 1.37836 1393.72588 1.73537 1382.09745
6 1997 39.53 116.9070581 4621.33601 1.50987 1465.31612 1.90043 1452.68723
7 1997 43.50 116.9070581 5085.45703 1.58743 1610.89047 1.99749 1596.58319
8 1997 43.38 116.9070581 5071.42818 1.74513 1604.70150 2.19536 1589.98347
9 1997 46.66 116.9070581 5454.88333 1.73843 1724.29597 2.18628 1708.01723
10 1997 43.95 116.9070581 5138.06520 1.86799 1622.28135 2.34858 1606.46748
11 1997 43.44 116.9070581 5078.44260 1.75747 1601.69877 2.20895 1585.61693
12 1997 43.75 116.9070581 5114.68379 1.73517 1611.39377 2.18028 1594.75206
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 67.47%
GROSS ANNUAL RETURN = 18.75%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1611.39 1542.91
TOTAL RETURN 61.14% 54.29%
AVERAGE ANNUAL RETURN 17.24% 15.55%
WITH DEATH BENEFIT CHARGE
ERV 1594.75 1526.98
TOTAL RETURN 59.48% 52.70%
AVERAGE ANNUAL RETURN 16.83% 15.15%
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1992 27.26 103.4290612 2819.47621 1000.00000 1000.00000
1 1993 26.52 103.4290612 2742.93870 1.08333 971.77067 1.37503 971.47897
2 1993 24.38 103.4290612 2521.60051 1.05275 892.30203 1.33582 891.75080
3 1993 24.96 103.4290612 2581.58937 0.96666 912.56323 1.22619 911.73936
4 1993 24.29 103.4290612 2512.29190 0.98861 887.07873 1.25367 886.01192
5 1993 26.36 103.4290612 2726.39005 0.96100 961.71480 1.21830 960.29978
6 1993 26.72 103.4290612 2763.62452 1.04186 973.80714 1.32044 972.09421
7 1993 26.72 103.4290612 2763.62452 1.05496 972.75218 1.33666 970.75754
8 1993 28.89 103.4290612 2988.06558 1.05381 1050.69808 1.33482 1048.26044
9 1993 30.17 103.4290612 3120.45478 1.13826 1096.11204 1.44139 1093.26326
10 1993 30.16 103.4290612 3119.42049 1.18745 1094.56127 1.50327 1091.39762
11 1993 29.06 103.4290612 3005.64852 1.18577 1053.45449 1.50071 1050.09130
12 1993 30.88 103.4290612 3193.88941 1.14124 1118.29010 1.44391 1114.41360
1 1994 30.54 103.4290612 3158.72353 1.21148 1104.76584 1.53236 1100.61115
2 1994 30.23 103.4290612 3126.66052 1.19683 1092.35495 1.51338 1087.92588
3 1994 28.11 103.4290612 2907.39091 1.18338 1014.56579 1.49593 1010.13478
4 1994 28.37 103.4290612 2934.28247 1.09911 1022.85078 1.38897 1018.08893
5 1994 25.48 111.8311656 2849.45810 1.10809 992.17408 1.39991 987.25806
6 1994 24.29 111.8311656 2716.37901 1.07486 944.76142 1.35751 939.79234
7 1994 24.74 111.8311656 2766.70304 1.02349 961.24071 1.29225 955.91083
8 1994 26.69 111.8311656 2984.77381 1.04134 1035.96410 1.31441 1029.94105
9 1994 26.52 111.8311656 2965.76251 1.12229 1028.24331 1.41620 1021.96471
10 1994 27.76 111.8311656 3104.43316 1.11393 1075.20712 1.40524 1068.34364
11 1994 26.40 111.8311656 2952.34277 1.16481 1021.36646 1.46901 1014.53503
12 1994 27.31 111.8311656 3054.10913 1.10648 1055.46617 1.39502 1048.11073
1 1995 26.84 111.8311656 3001.54849 1.14342 1036.15837 1.44119 1028.63175
2 1995 28.76 111.8311656 3216.26432 1.12250 1109.15748 1.41440 1100.80055
3 1995 29.59 111.8311656 3309.08419 1.20159 1139.96565 1.51364 1131.05549
4 1995 30.89 111.8311656 3454.46471 1.23496 1188.81367 1.55524 1179.19177
5 1995 32.07 111.8311656 3586.42548 1.28788 1232.93855 1.62143 1222.61555
6 1995 36.02 111.8311656 4028.15859 1.33568 1383.46152 1.68114 1371.52161
7 1995 41.18 111.8311656 4605.20740 1.49875 1580.14882 1.88589 1566.11133
8 1995 41.72 111.8311656 4665.59623 1.71183 1599.15774 2.15346 1584.49455
9 1995 42.83 111.8311656 4789.72882 1.73242 1639.97242 2.17873 1624.47279
10 1995 40.83 111.8311656 4566.06649 1.77664 1561.61524 2.23370 1546.38231
11 1995 40.76 111.8311656 4558.23831 1.69175 1557.24622 2.12633 1541.60483
12 1995 39.41 111.8311656 4407.26624 1.68702 1503.98210 2.11976 1488.42603
1 1996 39.55 111.8311656 4422.92260 1.62931 1507.69553 2.04664 1491.66687
2 1996 41.24 111.8311656 4611.91727 1.63334 1570.48711 2.05109 1553.35578
3 1996 40.87 111.8311656 4570.53974 1.70136 1554.69554 2.13592 1537.28336
4 1996 44.02 111.8311656 4922.80791 1.68425 1672.83735 2.11382 1653.65358
5 1996 45.10 112.2370145 5061.88935 1.81224 1718.28688 2.27383 1698.09953
6 1996 42.33 112.2370145 4750.99282 1.86148 1610.88982 2.33494 1591.46890
7 1996 37.34 112.2370145 4190.93012 1.74513 1419.24769 2.18832 1401.67297
8 1996 39.67 112.2370145 4452.44237 1.53752 1506.27062 1.92735 1487.20942
9 1996 42.45 112.2370145 4764.46127 1.63179 1610.19547 2.04496 1589.38533
10 1996 40.49 112.2370145 4544.47672 1.74438 1534.10520 2.18546 1513.81483
11 1996 41.18 112.2370145 4621.92026 1.66195 1558.58632 2.08155 1537.53057
12 1996 40.91 112.2370145 4591.61626 1.68847 1546.67885 2.11416 1525.33547
1 1997 41.55 112.2370145 4663.44795 1.67557 1569.19968 2.09739 1547.10058
2 1997 38.60 112.2370145 4332.34876 1.69997 1456.08842 2.12731 1435.13099
3 1997 36.06 112.2370145 4047.26674 1.57743 1358.69585 1.97335 1338.72155
4 1997 35.68 112.2370145 4004.61668 1.47192 1342.90600 1.84079 1322.77333
5 1997 37.56 116.9070581 4391.02910 1.45481 1471.03052 1.81886 1448.59117
6 1997 39.53 116.9070581 4621.33601 1.59362 1546.59159 1.99186 1522.57707
7 1997 43.50 116.9070581 5085.45703 1.67547 1700.24040 2.09359 1673.39597
8 1997 43.38 116.9070581 5071.42818 1.84193 1693.70815 2.30098 1666.47873
9 1997 46.66 116.9070581 5454.88333 1.83485 1819.93606 2.29146 1790.19119
10 1997 43.95 116.9070581 5138.06520 1.97160 1712.26308 2.46157 1683.75580
11 1997 43.44 116.9070581 5078.44260 1.85495 1690.53886 2.31522 1661.90212
12 1997 43.75 116.9070581 5114.68379 1.83142 1700.77161 2.28517 1671.47675
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 81.41%
GROSS ANNUAL RETURN = 12.65%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1700.77 1657.40
TOTAL RETURN 70.08% 65.74%
AVERAGE ANNUAL RETURN 11.21% 10.63%
WITH DEATH BENEFIT CHARGE
ERV 1671.48 1628.85
TOTAL RETURN 67.15% 62.89%
AVERAGE ANNUAL RETURN 10.82% 10.25%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
8 1988 10.00 100.0000000 1000.00000 1000.00000 1000.00000
9 1988 10.10 100.0000000 1010.00000 1.08333 1008.91667 1.37503 1008.62497
10 1988 9.95 100.0000000 995.00000 1.09299 992.83976 1.38689 992.25850
11 1988 9.69 100.0000000 969.00000 1.07558 965.82063 1.36439 964.96574
12 1988 9.60 100.6770833 966.50000 1.04631 962.28253 1.32686 961.14929
1 1989 10.69 100.6770833 1076.23802 1.04247 1070.49922 1.32161 1068.95817
2 1989 10.90 100.6770833 1097.38021 1.15971 1090.36897 1.46985 1088.48750
3 1989 11.72 100.6770833 1179.93542 1.18123 1171.21549 1.49671 1168.87701
4 1989 12.64 100.6770833 1272.55833 1.26882 1261.88509 1.60724 1259.02461
5 1989 13.31 100.6770833 1340.01198 1.36704 1327.40594 1.73120 1324.02968
6 1989 13.12 100.6770833 1320.88333 1.43802 1307.01923 1.82058 1303.30860
7 1989 14.48 100.6770833 1457.80417 1.41594 1441.08699 1.79209 1436.61557
8 1989 15.59 100.6770833 1569.55573 1.56118 1549.99588 1.97539 1544.76747
9 1989 16.25 100.6770833 1636.00260 1.67916 1613.93553 2.12411 1608.04084
10 1989 15.32 100.6770833 1542.37292 1.74843 1519.82033 2.21111 1513.80031
11 1989 15.71 100.6770833 1581.63698 1.64647 1556.86380 2.08153 1550.25548
12 1989 15.79 100.6770833 1589.69115 1.68660 1563.10521 2.13165 1556.01819
1 1990 14.39 100.6770833 1448.74323 1.69336 1422.82114 2.13958 1415.91626
2 1990 15.15 100.6770833 1525.25781 1.54139 1496.42527 1.94693 1488.75018
3 1990 16.04 100.6770833 1614.86042 1.62113 1582.71295 2.04708 1574.16103
4 1990 15.85 101.5402059 1609.41226 1.71461 1575.65865 2.16452 1566.68566
5 1990 18.05 101.5402059 1832.80072 1.70696 1792.65510 2.15424 1781.98936
6 1990 18.24 101.5402059 1852.09336 1.94204 1809.58311 2.45029 1798.29685
7 1990 17.23 101.5402059 1749.53775 1.96038 1707.42103 2.47272 1696.24739
8 1990 15.63 101.5402059 1587.07342 1.84971 1547.01801 2.33240 1536.39927
9 1990 14.46 101.5402059 1468.27138 1.67594 1429.53842 2.11260 1419.27790
10 1990 14.22 101.5402059 1443.90173 1.54867 1404.26297 1.95155 1393.76986
11 1990 15.75 101.5402059 1599.25824 1.52128 1553.83328 1.91648 1541.81596
12 1990 17.02 101.5402059 1728.21430 1.68332 1677.44318 2.12005 1664.02012
1 1991 18.25 101.5402059 1853.10876 1.81723 1796.85128 2.28808 1781.98731
2 1991 19.58 101.5402059 1988.15723 1.94659 1925.85330 2.45029 1909.40240
3 1991 21.40 101.5402059 2172.96041 2.08634 2102.77886 2.62549 2084.25966
4 1991 20.56 101.6322224 2089.55849 2.27801 2019.79263 2.86593 2001.39631
5 1991 21.70 101.6322224 2205.41923 2.18811 2129.59691 2.75199 2109.61669
6 1991 20.17 101.6322224 2049.92193 2.30706 1977.13854 2.90079 1957.97333
7 1991 21.85 101.6322224 2220.66406 2.14190 2139.67650 2.69228 2118.36460
8 1991 22.01 101.6322224 2236.92522 2.31798 2153.02663 2.91282 2130.96384
9 1991 22.65 101.6322224 2301.96984 2.33245 2213.29923 2.93015 2189.99720
10 1991 23.75 101.6322224 2413.76528 2.39774 2318.39064 3.01132 2293.34336
11 1991 22.82 101.6322224 2319.24732 2.51159 2225.09575 3.15342 2200.38744
12 1991 26.79 101.6322224 2722.72724 2.41052 2609.78559 3.02561 2580.16368
1 1992 27.52 101.6322224 2796.91876 2.82727 2678.07230 3.54781 2646.92268
2 1992 27.27 101.6322224 2771.51071 2.90124 2650.84263 3.63961 2619.23763
3 1992 24.23 101.6322224 2462.54875 2.87175 2352.46074 3.60154 2323.64920
4 1992 22.15 103.4290612 2290.95371 2.54850 2185.98834 3.19510 2158.53785
5 1992 22.15 103.4290612 2290.95371 2.36815 2183.62019 2.96806 2155.56978
6 1992 21.21 103.4290612 2193.73039 2.36559 2088.58629 2.96398 2061.12790
7 1992 22.06 103.4290612 2281.64509 2.26264 2170.02467 2.83412 2140.89438
8 1992 21.67 103.4290612 2241.30776 2.35086 2129.30982 2.94380 2100.10158
9 1992 22.87 103.4290612 2365.42263 2.30675 2244.91593 2.88771 2213.50930
10 1992 23.93 103.4290612 2475.05744 2.43199 2346.53338 3.04365 2313.05944
11 1992 25.96 103.4290612 2685.01843 2.54208 2543.04951 3.18053 2506.09749
12 1992 27.26 103.4290612 2819.47621 2.75497 2667.64293 3.44597 2628.14947
1 1993 26.52 103.4290612 2742.93870 2.88995 2592.33715 3.61379 2553.19192
2 1993 24.38 103.4290612 2521.60051 2.80837 2380.34321 3.51072 2343.65440
3 1993 24.96 103.4290612 2581.58937 2.57871 2434.39285 3.22260 2396.18732
4 1993 24.29 103.4290612 2512.29190 2.63726 2366.40931 3.29484 2328.57175
5 1993 26.36 103.4290612 2726.39005 2.56361 2565.51170 3.20186 2523.81136
6 1993 26.72 103.4290612 2763.62452 2.77930 2597.76973 3.47032 2554.80887
7 1993 26.72 103.4290612 2763.62452 2.81425 2594.95548 3.51295 2551.29592
8 1993 28.89 103.4290612 2988.06558 2.81120 2802.88730 3.50812 2754.98512
9 1993 30.17 103.4290612 3120.45478 3.03646 2924.03553 3.78820 2873.25926
10 1993 30.16 103.4290612 3119.42049 3.16771 2919.89864 3.95083 2868.35607
11 1993 29.06 103.4290612 3005.64852 3.16322 2810.24044 3.94409 2759.79688
12 1993 30.88 103.4290612 3193.88941 3.04443 2983.19868 3.79481 2928.84551
1 1994 30.54 103.4290612 3158.72353 3.23180 2947.12078 4.02726 2892.57060
2 1994 30.23 103.4290612 3126.66052 3.19271 2914.01296 3.97738 2859.23182
3 1994 28.11 103.4290612 2907.39091 3.15685 2706.49927 3.93154 2654.78518
4 1994 28.37 103.4290612 2934.28247 2.93204 2728.60066 3.65042 2675.68988
5 1994 25.48 111.8311656 2849.45810 2.95598 2646.76617 3.67916 2594.66175
6 1994 24.29 111.8311656 2716.37901 2.86733 2520.28613 3.56775 2469.91475
7 1994 24.74 111.8311656 2766.70304 2.73031 2564.24700 3.39622 2512.27653
8 1994 26.69 111.8311656 2984.77381 2.77793 2763.58231 3.45446 2706.83901
9 1994 26.52 111.8311656 2965.76251 2.99388 2742.98599 3.72199 2685.87600
10 1994 27.76 111.8311656 3104.43316 2.97157 2868.26867 3.69317 2807.76678
11 1994 26.40 111.8311656 2952.34277 3.10729 2724.64101 3.86077 2666.34971
12 1994 27.31 111.8311656 3054.10913 2.95169 2815.60687 3.66632 2754.59165
1 1995 26.84 111.8311656 3001.54849 3.05024 2764.10056 3.78766 2703.39799
2 1995 28.76 111.8311656 3216.26432 2.99444 2958.83611 3.71726 2893.06837
3 1995 29.59 111.8311656 3309.08419 3.20541 3041.02132 3.97807 2972.58288
4 1995 30.89 111.8311656 3454.46471 3.29444 3171.33039 4.08740 3099.09223
5 1995 32.07 111.8311656 3586.42548 3.43561 3289.03980 4.26136 3213.21640
6 1995 36.02 111.8311656 4028.15859 3.56313 3690.58136 4.41828 3604.56378
7 1995 41.18 111.8311656 4605.20740 3.99813 4215.27284 4.95640 4115.97466
8 1995 41.72 111.8311656 4665.59623 4.56655 4265.98185 5.65960 4164.28850
9 1995 42.83 111.8311656 4789.72882 4.62148 4374.86085 5.72604 4269.35729
10 1995 40.83 111.8311656 4566.06649 4.73943 4165.83186 5.87051 4064.12385
11 1995 40.76 111.8311656 4558.23831 4.51298 4154.17687 5.58831 4051.56790
12 1995 39.41 111.8311656 4407.26624 4.50036 4012.08723 5.57104 3911.80607
1 1996 39.55 111.8311656 4422.92260 4.34643 4021.99334 5.37886 3920.32350
2 1996 41.24 111.8311656 4611.91727 4.35716 4189.49885 5.39058 4082.45117
3 1996 40.87 111.8311656 4570.53974 4.53862 4147.37258 5.61351 4040.21043
4 1996 44.02 111.8311656 4922.80791 4.49299 4462.53273 5.55542 4346.04877
5 1996 45.10 112.2370145 5061.88935 4.83441 4583.77586 5.97596 4462.85938
6 1996 42.33 112.2370145 4750.99282 4.96576 4297.27885 6.13658 4182.61814
7 1996 37.34 112.2370145 4190.93012 4.65539 3786.04607 5.75124 3683.80608
8 1996 39.67 112.2370145 4452.44237 4.10155 4018.19217 5.06536 3908.60864
9 1996 42.45 112.2370145 4764.46127 4.35304 4295.42658 5.37447 4177.14222
10 1996 40.49 112.2370145 4544.47672 4.65338 4092.44491 5.74371 3978.53164
11 1996 41.18 112.2370145 4621.92026 4.43348 4157.75178 5.47061 4040.86015
12 1996 40.91 112.2370145 4591.61626 4.50423 4125.98691 5.55632 4008.80961
1 1997 41.55 112.2370145 4663.44795 4.46982 4186.06443 5.51225 4066.01157
2 1997 38.60 112.2370145 4332.34876 4.53490 3884.32399 5.59090 3771.73874
3 1997 36.06 112.2370145 4047.26674 4.20802 3624.51538 5.18627 3518.36034
4 1997 35.68 112.2370145 4004.61668 3.92656 3582.39371 4.83786 3476.44602
5 1997 37.56 116.9070581 4391.02910 3.88093 3924.18418 4.78023 3807.11411
6 1997 39.53 116.9070581 4621.33601 4.25120 4125.75414 5.23491 4001.56011
7 1997 43.50 116.9070581 5085.45703 4.46957 4535.63428 5.50228 4397.93472
8 1997 43.38 116.9070581 5071.42818 4.91360 4518.20858 6.04731 4379.75518
9 1997 46.66 116.9070581 5454.88333 4.89473 4854.93958 6.02231 4704.89002
10 1997 43.95 116.9070581 5138.06520 5.25952 4567.70651 6.46938 4425.16192
11 1997 43.44 116.9070581 5078.44260 4.94835 4509.75406 6.08474 4367.72717
12 1997 43.75 116.9070581 5114.68379 4.88557 4537.05136 6.00577 4392.89073
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 411.47%
GROSS ANNUAL RETURN = 19.24%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4537.05 4537.05
TOTAL RETURN 353.71% 353.71%
AVERAGE ANNUAL RETURN 17.71% 17.71%
WITH DEATH BENEFIT CHARGE
ERV 4392.89 4392.89
TOTAL RETURN 339.29% 339.29%
AVERAGE ANNUAL RETURN 17.30% 17.30%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 36.02 111.8311656 4028.15859 1000.00000 1000.00000
7 1995 41.18 111.8311656 4605.20740 1.08333 1142.17041 1.37503 1141.87871
8 1995 41.72 111.8311656 4665.59623 1.23735 1155.91053 1.57012 1155.28223
9 1995 42.83 111.8311656 4789.72882 1.25224 1185.41238 1.58855 1184.43106
10 1995 40.83 111.8311656 4566.06649 1.28420 1128.77388 1.62863 1127.49395
11 1995 40.76 111.8311656 4558.23831 1.22284 1125.61585 1.55034 1124.01060
12 1995 39.41 111.8311656 4407.26624 1.21942 1087.11524 1.54555 1085.23702
1 1996 39.55 111.8311656 4422.92260 1.17771 1089.79940 1.49224 1087.59998
2 1996 41.24 111.8311656 4611.91727 1.18062 1135.18669 1.49549 1132.57842
3 1996 40.87 111.8311656 4570.53974 1.22979 1123.77216 1.55733 1120.85974
4 1996 44.02 111.8311656 4922.80791 1.21742 1209.16796 1.54122 1205.70727
5 1996 45.10 112.2370145 5061.88935 1.30993 1242.02000 1.65789 1238.11358
6 1996 42.33 112.2370145 4750.99282 1.34552 1164.39076 1.70245 1160.36735
7 1996 37.34 112.2370145 4190.93012 1.26142 1025.86712 1.59554 1021.98388
8 1996 39.67 112.2370145 4452.44237 1.11136 1088.76943 1.40526 1084.34997
9 1996 42.45 112.2370145 4764.46127 1.17950 1163.88887 1.49102 1158.84819
10 1996 40.49 112.2370145 4544.47672 1.26088 1108.88895 1.59345 1103.74844
11 1996 41.18 112.2370145 4621.92026 1.20130 1126.58451 1.51769 1121.03999
12 1996 40.91 112.2370145 4591.61626 1.22047 1117.97750 1.54147 1112.14833
1 1997 41.55 112.2370145 4663.44795 1.21114 1134.25610 1.52924 1128.01765
2 1997 38.60 112.2370145 4332.34876 1.22878 1052.49651 1.55106 1046.37869
3 1997 36.06 112.2370145 4047.26674 1.14020 982.09876 1.43881 976.08492
4 1997 35.68 112.2370145 4004.61668 1.06394 970.68547 1.34215 964.45679
5 1997 37.56 116.9070581 4391.02910 1.05158 1063.29702 1.32616 1056.19274
6 1997 39.53 116.9070581 4621.33601 1.15191 1117.91442 1.45230 1110.13713
7 1997 43.50 116.9070581 5085.45703 1.21107 1228.97556 1.52648 1220.10179
8 1997 43.38 116.9070581 5071.42818 1.33139 1224.25389 1.67768 1215.05831
9 1997 46.66 116.9070581 5454.88333 1.32628 1315.49453 1.67075 1305.25919
10 1997 43.95 116.9070581 5138.06520 1.42512 1237.66585 1.79477 1227.65532
11 1997 43.44 116.9070581 5078.44260 1.34080 1221.96305 1.68807 1211.72143
12 1997 43.75 116.9070581 5114.68379 1.32379 1229.35953 1.66616 1218.70245
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.97%
GROSS ANNUAL RETURN = 9.68%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1229.36 1177.11
TOTAL RETURN 22.94% 17.71%
AVERAGE ANNUAL RETURN 8.32% 6.52%
WITH DEATH BENEFIT CHARGE
ERV 1218.70 1166.91
TOTAL RETURN 21.87% 16.69%
AVERAGE ANNUAL RETURN 7.96% 6.16%
Federated Government Bond
12/1997
Assume ($10000 @ $10.00 on 3/28/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/94 0.0000000000 10.00 0.000 100.000000
4/94 0.0240000000 9.99 0.240 100.240240
5/94 0.0190000000 9.97 0.191 100.431270
6/94 0.0290000000 9.98 0.292 100.723104
7/94 0.0320000000 9.96 0.324 101.046713
8/94 0.0310000000 9.97 0.314 101.360900
9/94 0.0290000000 9.97 0.295 101.655731
10/94 0.0300000000 9.98 0.306 101.961309
11/94 0.0360000000 9.97 0.368 102.329475
12/94 0.0380000000 9.97 0.390 102.719497
1/95 0.0350000000 9.97 0.361 103.080097
2/95 0.0390000000 9.98 0.403 103.482915
3/95 0.0420000000 9.97 0.436 103.918851
4/95 0.0400000000 9.98 0.417 104.335359
5/95 0.0400000000 9.98 0.418 104.753537
6/95 0.0400000000 9.98 0.420 105.173391
7/95 0.0400000000 9.99 0.421 105.594505
8/95 0.0520000000 9.96 0.551 106.145802
9/95 0.0520000000 10.07 0.548 106.693923
10/95 0.0520000000 10.12 0.548 107.242153
11/95 0.0530000000 10.17 0.559 107.801035
12/95 0.0530000000 10.22 0.559 108.360082
1/96 0.0490000000 10.28 0.517 108.876584
2/96 0.0490000000 10.21 0.523 109.399107
3/96 0.0893000000 10.04 0.973 110.372148
4/96 0.0480000000 9.98 0.531 110.902996
5/96 0.0480000000 9.94 0.536 111.438544
6/96 0.0480000000 9.83 0.544 111.982700
7/96 0.0440000000 9.87 0.499 112.481913
8/96 0.0440000000 9.98 0.496 112.977826
9/96 0.0480000000 9.89 0.548 113.526151
10/96 0.0480000000 10.02 0.544 114.069989
11/96 0.0480000000 10.21 0.536 114.606263
12/96 0.0480000000 10.11 0.544 115.150387
1/97 0.0480000000 10.05 0.550 115.700359
2/97 0.0480000000 10.12 0.549 116.249136
3/97 0.0480000000 9.96 0.560 116.809373
4/97 0.0480000000 9.92 0.565 117.374579
5/97 0.0480000000 10.00 0.563 117.937977
6/97 0.0480000000 10.12 0.559 118.497367
7/97 0.0510000000 10.16 0.595 119.092186
8/97 0.0510000000 10.15 0.598 119.690581
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.09 115.1503875 1161.86741 1000.00000 1000.00000
1 1997 10.08 115.7003595 1166.25962 1.08333 1002.69697 1.37503 1002.40527
2 1997 10.05 116.2491359 1168.30382 1.08626 1003.36822 1.37834 1002.78392
3 1997 9.91 116.8093727 1157.58088 1.08698 993.07212 1.37886 992.20131
4 1997 10.00 117.3745793 1173.74579 1.07583 1005.86394 1.36431 1004.69248
5 1997 10.04 117.9379773 1184.09729 1.08969 1013.64517 1.38149 1012.17158
6 1997 10.10 118.4973669 1196.82341 1.09812 1023.44123 1.39177 1021.65815
7 1997 10.21 119.0921864 1215.93122 1.10873 1038.67219 1.40481 1036.56456
8 1997 10.17 119.6905806 1217.25321 1.12523 1038.67623 1.42531 1036.26622
9 1997 10.29 119.6905806 1231.61607 1.12523 1049.80676 1.42490 1047.06865
10 1997 10.42 119.6905806 1247.17585 1.13729 1061.93233 1.43975 1058.85717
11 1997 10.45 119.6905806 1250.76657 1.15043 1063.83929 1.45596 1060.44974
12 1997 10.54 119.6905806 1261.53872 1.15249 1071.84905 1.45815 1068.12464
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 8.58%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1071.85 1008.07
TOTAL RETURN 7.18% 0.81%
WITH DEATH BENEFIT CHARGE
ERV 1068.12 1004.57
TOTAL RETURN 6.81% 0.46%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.09 115.1503875 1161.86741 1000.00000 1000.00000
1 1997 10.08 115.7003595 1166.25962 1.08333 1002.69697 1.37503 1002.40527
2 1997 10.05 116.2491359 1168.30382 1.08626 1003.36822 1.37834 1002.78392
3 1997 9.91 116.8093727 1157.58088 1.08698 993.07212 1.37886 992.20131
4 1997 10.00 117.3745793 1173.74579 1.07583 1005.86394 1.36431 1004.69248
5 1997 10.04 117.9379773 1184.09729 1.08969 1013.64517 1.38149 1012.17158
6 1997 10.10 118.4973669 1196.82341 1.09812 1023.44123 1.39177 1021.65815
7 1997 10.21 119.0921864 1215.93122 1.10873 1038.67219 1.40481 1036.56456
8 1997 10.17 119.6905806 1217.25321 1.12523 1038.67623 1.42531 1036.26622
9 1997 10.29 119.6905806 1231.61607 1.12523 1049.80676 1.42490 1047.06865
10 1997 10.42 119.6905806 1247.17585 1.13729 1061.93233 1.43975 1058.85717
11 1997 10.45 119.6905806 1250.76657 1.15043 1063.83929 1.45596 1060.44974
12 1997 10.54 119.6905806 1261.53872 1.15249 1071.84905 1.45815 1068.12464
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 8.58%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1071.85 1008.07
TOTAL RETURN 7.18% 0.81%
WITH DEATH BENEFIT CHARGE
ERV 1068.12 1004.57
TOTAL RETURN 6.81% 0.46%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 9.98 102.7194966 1025.14058 1000.00000 1000.00000
1 1995 9.99 103.0800966 1029.77017 1.08333 1003.43272 1.37503 1003.14102
2 1995 9.99 103.4829147 1033.79432 1.08705 1006.26690 1.37935 1005.68176
3 1995 9.99 103.9188507 1038.14932 1.09012 1009.41581 1.38285 1008.53548
4 1995 9.99 104.3353591 1042.31024 1.09353 1012.36803 1.38677 1011.19094
5 1995 9.99 104.7535369 1046.48783 1.09673 1015.32889 1.39042 1013.85339
6 1995 9.99 105.1733908 1050.68217 1.09994 1018.29840 1.39408 1016.52285
7 1995 10.01 105.5945055 1057.00100 1.10316 1023.31932 1.39775 1021.23849
8 1995 10.07 106.1458021 1068.88823 1.10860 1033.71916 1.40424 1031.31928
9 1995 10.11 106.6939234 1078.67557 1.11986 1042.06461 1.41810 1039.34452
10 1995 10.16 107.2421530 1089.58027 1.12890 1051.47030 1.42913 1048.42249
11 1995 10.23 107.8010354 1102.80459 1.13909 1063.09298 1.44162 1059.70565
12 1995 10.29 108.3600819 1115.02524 1.15168 1073.72189 1.45713 1069.99158
1 1996 10.32 108.8765842 1123.60635 1.16320 1080.82193 1.47127 1076.75483
2 1996 10.17 109.3991065 1112.58891 1.17089 1069.05312 1.48057 1064.71622
3 1996 10.03 110.3721484 1107.03265 1.15814 1062.55613 1.46402 1057.93501
4 1996 9.94 110.9029964 1102.37578 1.15110 1056.93526 1.45470 1052.02999
5 1996 9.87 111.4385441 1099.89843 1.14501 1053.41501 1.44658 1048.21920
6 1996 9.94 111.9826997 1113.10804 1.14120 1064.92516 1.44134 1059.36681
7 1996 9.92 112.4819134 1115.82058 1.15367 1066.36662 1.45666 1060.49173
8 1996 9.85 112.9778256 1112.83158 1.15523 1062.35486 1.45821 1056.19273
9 1996 9.96 113.5261508 1130.72046 1.15088 1078.28144 1.45230 1071.71883
10 1996 10.11 114.0699886 1153.24758 1.16814 1098.59569 1.47365 1091.59683
11 1996 10.21 114.6062628 1170.12994 1.19015 1113.48786 1.50098 1106.07570
12 1996 10.09 115.1503875 1161.86741 1.20628 1104.41901 1.52089 1096.74458
1 1997 10.08 115.7003595 1166.25962 1.19645 1107.39760 1.50806 1099.38255
2 1997 10.05 116.2491359 1168.30382 1.19968 1108.13894 1.51169 1099.79783
3 1997 9.91 116.8093727 1157.58088 1.20048 1096.76773 1.51226 1088.19140
4 1997 10.00 117.3745793 1173.74579 1.18816 1110.89525 1.49630 1101.89103
5 1997 10.04 117.9379773 1184.09729 1.20347 1119.48899 1.51514 1110.09369
6 1997 10.10 118.4973669 1196.82341 1.21278 1130.30794 1.52642 1120.49804
7 1997 10.21 119.0921864 1215.93122 1.22450 1147.12931 1.54072 1136.84656
8 1997 10.17 119.6905806 1217.25321 1.24272 1147.13377 1.56320 1136.51936
9 1997 10.29 119.6905806 1231.61607 1.24273 1159.42654 1.56275 1148.36687
10 1997 10.42 119.6905806 1247.17585 1.25605 1172.81826 1.57904 1161.29586
11 1997 10.45 119.6905806 1250.76657 1.27055 1174.92434 1.59682 1163.04250
12 1997 10.54 119.6905806 1261.53872 1.27283 1183.77047 1.59922 1171.45991
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.06%
GROSS ANNUAL RETURN = 7.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1183.77 1133.46
TOTAL RETURN 18.38% 13.35%
AVERAGE ANNUAL RETURN 5.78% 4.26%
WITH DEATH BENEFIT CHARGE
ERV 1171.46 1121.67
TOTAL RETURN 17.15% 12.17%
AVERAGE ANNUAL RETURN 5.42% 3.90%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 9.97 100.2402402 999.39520 1.08333 998.31186 1.37503 998.02016
5 1994 9.98 100.4312698 1002.30407 1.08150 1000.13608 1.37231 999.55273
6 1994 9.99 100.7231041 1006.22381 1.08348 1002.96386 1.37442 1002.08729
7 1994 9.97 101.0467125 1007.43572 1.08654 1003.08530 1.37790 1001.91631
8 1994 9.98 101.3608999 1011.58178 1.08668 1006.12678 1.37767 1004.66199
9 1994 9.97 101.6557310 1013.50764 1.08997 1006.95228 1.38144 1005.19323
10 1994 9.99 101.9613093 1018.59348 1.09086 1010.91436 1.38217 1008.85517
11 1994 9.98 102.3294745 1021.24816 1.09516 1012.45387 1.38721 1010.09726
12 1994 9.98 102.7194966 1025.14058 1.09682 1015.21595 1.38892 1012.55826
1 1995 9.99 103.0800966 1029.77017 1.09982 1018.70090 1.39230 1015.73873
2 1995 9.99 103.4829147 1033.79432 1.10359 1021.57820 1.39667 1018.31137
3 1995 9.99 103.9188507 1038.14932 1.10671 1024.77503 1.40021 1021.20094
4 1995 9.99 104.3353591 1042.31024 1.11017 1027.77217 1.40419 1023.88974
5 1995 9.99 104.7535369 1046.48783 1.11342 1030.77808 1.40788 1026.58563
6 1995 9.99 105.1733908 1050.68217 1.11668 1033.79278 1.41159 1029.28861
7 1995 10.01 105.5945055 1057.00100 1.11994 1038.89009 1.41531 1034.06347
8 1995 10.07 106.1458021 1068.88823 1.12546 1049.44817 1.42187 1044.27086
9 1995 10.11 106.6939234 1078.67557 1.13690 1057.92060 1.43591 1052.39688
10 1995 10.16 107.2421530 1089.58027 1.14608 1067.46941 1.44708 1061.58885
11 1995 10.23 107.8010354 1102.80459 1.15643 1079.26895 1.45972 1073.01371
12 1995 10.29 108.3600819 1115.02524 1.16921 1090.05958 1.47543 1083.42881
1 1996 10.32 108.8765842 1123.60635 1.18090 1097.26766 1.48975 1090.27700
2 1996 10.17 109.3991065 1112.58891 1.18871 1085.31977 1.49917 1078.08721
3 1996 10.03 110.3721484 1107.03265 1.17576 1078.72393 1.48241 1071.22084
4 1996 9.94 110.9029964 1102.37578 1.16862 1073.01753 1.47296 1065.24166
5 1996 9.87 111.4385441 1099.89843 1.16244 1069.44372 1.46474 1061.38301
6 1996 9.94 111.9826997 1113.10804 1.15856 1081.12900 1.45944 1072.67062
7 1996 9.92 112.4819134 1115.82058 1.17122 1082.59239 1.47496 1073.80966
8 1996 9.85 112.9778256 1112.83158 1.17281 1078.51960 1.47652 1069.45667
9 1996 9.96 113.5261508 1130.72046 1.16840 1094.68851 1.47054 1085.17776
10 1996 10.11 114.0699886 1153.24758 1.18591 1115.31187 1.49216 1105.30539
11 1996 10.21 114.6062628 1170.12994 1.20825 1130.43063 1.51983 1119.96609
12 1996 10.09 115.1503875 1161.86741 1.22463 1121.22379 1.53999 1110.51778
1 1997 10.08 115.7003595 1166.25962 1.21466 1124.24770 1.52700 1113.18888
2 1997 10.05 116.2491359 1168.30382 1.21793 1125.00032 1.53067 1113.60938
3 1997 9.91 116.8093727 1157.58088 1.21875 1113.45608 1.53125 1101.85720
4 1997 10.00 117.3745793 1173.74579 1.20624 1127.79857 1.51509 1115.72887
5 1997 10.04 117.9379773 1184.09729 1.22178 1136.52307 1.53416 1124.03454
6 1997 10.10 118.4973669 1196.82341 1.23123 1147.50665 1.54558 1134.56954
7 1997 10.21 119.0921864 1215.93122 1.24313 1164.58397 1.56007 1151.12338
8 1997 10.17 119.6905806 1217.25321 1.26163 1164.58849 1.58283 1150.79207
9 1997 10.29 119.6905806 1231.61607 1.26164 1177.06831 1.58238 1162.78836
10 1997 10.42 119.6905806 1247.17585 1.27516 1190.66379 1.59887 1175.87972
11 1997 10.45 119.6905806 1250.76657 1.28989 1192.80192 1.61687 1177.64829
12 1997 10.54 119.6905806 1261.53872 1.29220 1201.78266 1.61931 1186.17141
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.15%
GROSS ANNUAL RETURN = 6.37%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1201.78 1160.92
TOTAL RETURN 20.18% 16.09%
AVERAGE ANNUAL RETURN 5.01% 4.05%
WITH DEATH BENEFIT CHARGE
ERV 1186.17 1145.84
TOTAL RETURN 18.62% 14.58%
AVERAGE ANNUAL RETURN 4.64% 3.69%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 9.99 105.1733908 1050.68217 1000.00000 1000.00000
7 1995 10.01 105.5945055 1057.00100 1.08333 1004.93069 1.37503 1004.63899
8 1995 10.07 106.1458021 1068.88823 1.08867 1015.14365 1.38141 1014.55593
9 1995 10.11 106.6939234 1078.67557 1.09974 1023.33913 1.39505 1022.45072
10 1995 10.16 107.2421530 1089.58027 1.10862 1032.57581 1.40590 1031.38113
11 1995 10.23 107.8010354 1102.80459 1.11862 1043.98964 1.41818 1042.48090
12 1995 10.29 108.3600819 1115.02524 1.13099 1054.42754 1.43345 1052.59963
1 1996 10.32 108.8765842 1123.60635 1.14230 1061.40000 1.44736 1059.25296
2 1996 10.17 109.3991065 1112.58891 1.14985 1049.84267 1.45651 1047.41003
3 1996 10.03 110.3721484 1107.03265 1.13733 1043.46243 1.44022 1040.73904
4 1996 9.94 110.9029964 1102.37578 1.13042 1037.94257 1.43105 1034.93000
5 1996 9.87 111.4385441 1099.89843 1.12444 1034.48558 1.42306 1031.18115
6 1996 9.94 111.9826997 1113.10804 1.12069 1045.78889 1.41791 1042.14756
7 1996 9.92 112.4819134 1115.82058 1.13294 1047.20445 1.43299 1043.25420
8 1996 9.85 112.9778256 1112.83158 1.13447 1043.26478 1.43451 1039.02508
9 1996 9.96 113.5261508 1130.72046 1.13020 1058.90517 1.42869 1054.29882
10 1996 10.11 114.0699886 1153.24758 1.14715 1078.85438 1.44970 1073.85371
11 1996 10.21 114.6062628 1170.12994 1.16876 1093.47894 1.47658 1088.09724
12 1996 10.09 115.1503875 1161.86741 1.18460 1084.57305 1.49617 1078.91778
1 1997 10.08 115.7003595 1166.25962 1.17495 1087.49812 1.48355 1081.51288
2 1997 10.05 116.2491359 1168.30382 1.17812 1088.22613 1.48712 1081.92141
3 1997 9.91 116.8093727 1157.58088 1.17891 1077.05926 1.48768 1070.50363
4 1997 10.00 117.3745793 1173.74579 1.16681 1090.93292 1.47198 1083.98059
5 1997 10.04 117.9379773 1184.09729 1.18184 1099.37223 1.49051 1092.04992
6 1997 10.10 118.4973669 1196.82341 1.19099 1109.99677 1.50161 1102.28515
7 1997 10.21 119.0921864 1215.93122 1.20250 1126.51587 1.51568 1118.36794
8 1997 10.17 119.6905806 1217.25321 1.22039 1126.52024 1.53779 1118.04605
9 1997 10.29 119.6905806 1231.61607 1.22040 1138.59212 1.53735 1129.70099
10 1997 10.42 119.6905806 1247.17585 1.23347 1151.74319 1.55338 1142.41983
11 1997 10.45 119.6905806 1250.76657 1.24772 1153.81143 1.57087 1144.13808
12 1997 10.54 119.6905806 1261.53872 1.24996 1162.49860 1.57323 1152.41867
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 20.07%
GROSS ANNUAL RETURN = 7.34%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1162.50 1113.09
TOTAL RETURN 16.25% 11.31%
AVERAGE ANNUAL RETURN 6.00% 4.23%
WITH DEATH BENEFIT CHARGE
ERV 1152.42 1103.44
TOTAL RETURN 15.24% 10.34%
AVERAGE ANNUAL RETURN 5.64% 3.88%
Federated Prime Money
12/1997
Assume ($10000 @ $10.00 on 11/21/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
10/94 0.0000000000 1.00 0.000 100.000000
11/94 0.0012659720 1.00 0.127 100.126597
12/94 0.0037707980 1.00 0.378 100.504154
1/95 0.0037829400 1.00 0.380 100.884356
2/95 0.0038735110 1.00 0.391 101.275132
3/95 0.0044113260 1.00 0.447 101.721890
4/95 0.0042677160 1.00 0.434 102.156010
5/95 0.0045457280 1.00 0.464 102.620383
6/95 0.0043985090 1.00 0.451 103.071760
7/95 0.0043850150 1.00 0.452 103.523731
8/95 0.0043262630 1.00 0.448 103.971602
9/95 0.0041606740 1.00 0.433 104.404194
10/95 0.0042481520 1.00 0.444 104.847719
11/95 0.0041265140 1.00 0.433 105.280375
12/95 0.0042405070 1.00 0.446 105.726817
1/96 0.0039644280 1.00 0.419 106.145963
2/96 0.0036463730 1.00 0.387 106.533011
3/96 0.0038803070 1.00 0.413 106.946392
4/96 0.0037531920 1.00 0.401 107.347782
5/96 0.0038792420 1.00 0.416 107.764210
6/96 0.0037639920 1.00 0.406 108.169834
7/96 0.0039246140 1.00 0.425 108.594359
8/96 0.0039447460 1.00 0.428 109.022736
9/96 0.0035630470 1.00 0.388 109.411189
10/96 0.0039363050 1.00 0.431 109.841865
11/96 0.0038677480 1.00 0.425 110.266705
12/96 0.0039950720 1.00 0.441 110.707229
1/97 0.0039476070 1.00 0.437 111.144257
2/97 0.0035105160 1.00 0.390 111.534431
3/97 0.0039524920 1.00 0.441 111.975270
4/97 0.0038910440 1.00 0.436 112.410971
5/97 0.0040826040 1.00 0.459 112.869900
6/97 0.0040162330 1.00 0.453 113.323212
7/97 0.0041567170 1.00 0.471 113.794264
8/97 0.0041616600 1.00 0.474 114.267838
9/97 0.0040263600 1.00 0.460 114.727921
10/97 0.0041704510 1.00 0.478 115.206388
11/97 0.0040698850 1.00 0.469 115.675265
12/97 0.0042698450 1.00 0.494 116.169180
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 1.00 110.7072287 110.70723 1000.00000 1000.00000
1 1997 1.00 111.1442573 111.14426 1.08333 1002.86427 1.37503 1002.57257
2 1997 1.00 111.5344310 111.53443 1.08644 1005.29841 1.37857 1004.71355
3 1997 1.00 111.9752700 111.97527 1.08907 1008.18277 1.38151 1007.30316
4 1997 1.00 112.4109707 112.41097 1.09220 1011.01345 1.38508 1009.83754
5 1997 1.00 112.8699002 112.86990 1.09526 1014.04576 1.38856 1012.57175
6 1997 1.00 113.3232120 113.32321 1.09855 1017.01985 1.39232 1015.24615
7 1997 1.00 113.7942645 113.79426 1.10177 1020.14554 1.39600 1018.07025
8 1997 1.00 114.2678375 114.26784 1.10516 1023.28589 1.39988 1020.90723
9 1997 1.00 114.7279210 114.72792 1.10856 1026.29744 1.40378 1023.61399
10 1997 1.00 115.2063882 115.20639 1.11182 1029.46574 1.40750 1026.47542
11 1997 1.00 115.6752649 115.67526 1.11525 1032.54030 1.41144 1029.24162
12 1997 1.00 116.1691804 116.16918 1.11859 1035.83050 1.41524 1032.22108
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1035.83 974.20
TOTAL RETURN 3.58% -2.58%
WITH DEATH BENEFIT CHARGE
ERV 1032.22 970.80
TOTAL RETURN 3.22% -2.92%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 1.00 110.7072287 110.70723 1000.00000 1000.00000
1 1997 1.00 111.1442573 111.14426 1.08333 1002.86427 1.37503 1002.57257
2 1997 1.00 111.5344310 111.53443 1.08644 1005.29841 1.37857 1004.71355
3 1997 1.00 111.9752700 111.97527 1.08907 1008.18277 1.38151 1007.30316
4 1997 1.00 112.4109707 112.41097 1.09220 1011.01345 1.38508 1009.83754
5 1997 1.00 112.8699002 112.86990 1.09526 1014.04576 1.38856 1012.57175
6 1997 1.00 113.3232120 113.32321 1.09855 1017.01985 1.39232 1015.24615
7 1997 1.00 113.7942645 113.79426 1.10177 1020.14554 1.39600 1018.07025
8 1997 1.00 114.2678375 114.26784 1.10516 1023.28589 1.39988 1020.90723
9 1997 1.00 114.7279210 114.72792 1.10856 1026.29744 1.40378 1023.61399
10 1997 1.00 115.2063882 115.20639 1.11182 1029.46574 1.40750 1026.47542
11 1997 1.00 115.6752649 115.67526 1.11525 1032.54030 1.41144 1029.24162
12 1997 1.00 116.1691804 116.16918 1.11859 1035.83050 1.41524 1032.22108
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1035.83 974.20
TOTAL RETURN 3.58% -2.58%
WITH DEATH BENEFIT CHARGE
ERV 1032.22 970.80
TOTAL RETURN 3.22% -2.92%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 1.00 100.5041544 100.50415 1000.00000 1000.00000
1 1995 1.00 100.8843556 100.88436 1.08333 1002.69961 1.37503 1002.40791
2 1995 1.00 101.2751322 101.27513 1.08626 1005.49732 1.37834 1004.91240
3 1995 1.00 101.7218898 101.72189 1.08929 1008.84360 1.38179 1007.96361
4 1995 1.00 102.1560100 102.15601 1.09291 1012.05615 1.38598 1010.87933
5 1995 1.00 102.6203834 102.62038 1.09639 1015.56029 1.38999 1014.08452
6 1995 1.00 103.0717601 103.07176 1.10019 1018.92705 1.39440 1017.15058
7 1995 1.00 103.5237313 103.52373 1.10384 1022.29122 1.39862 1020.21218
8 1995 1.00 103.9716022 103.97160 1.10748 1025.60644 1.40283 1023.22306
9 1995 1.00 104.4041941 104.40419 1.11107 1028.76258 1.40697 1026.07339
10 1995 1.00 104.8477190 104.84772 1.11449 1032.01843 1.41089 1029.02142
11 1995 1.00 105.2803746 105.28037 1.11802 1035.15904 1.41494 1031.85276
12 1995 1.00 105.7268168 105.72682 1.12142 1038.42722 1.41883 1034.80950
1 1996 1.00 106.1459631 106.14596 1.12496 1041.41903 1.42290 1037.48903
2 1996 1.00 106.5330109 106.53301 1.12820 1044.08823 1.42658 1039.84552
3 1996 1.00 106.9463917 106.94639 1.13110 1047.00851 1.42982 1042.45062
4 1996 1.00 107.3477820 107.34778 1.13426 1049.80388 1.43340 1044.92974
5 1996 1.00 107.7642101 107.76421 1.13729 1052.73903 1.43681 1047.54646
6 1996 1.00 108.1698337 108.16983 1.14047 1055.56107 1.44041 1050.04900
7 1996 1.00 108.5943585 108.59436 1.14352 1058.56021 1.44385 1052.72619
8 1996 1.00 109.0227357 109.02274 1.14677 1061.58919 1.44753 1055.43139
9 1996 1.00 109.4111888 109.41119 1.15005 1064.22163 1.45125 1057.74069
10 1996 1.00 109.8418646 109.84186 1.15291 1067.25782 1.45443 1060.44985
11 1996 1.00 110.2667053 110.26671 1.15620 1070.22951 1.45815 1063.09325
12 1996 1.00 110.7072287 110.70723 1.15942 1073.34574 1.46179 1065.87860
1 1997 1.00 111.1442573 111.14426 1.16279 1076.42010 1.46562 1068.62065
2 1997 1.00 111.5344310 111.53443 1.16612 1079.03276 1.46939 1070.90267
3 1997 1.00 111.9752700 111.97527 1.16895 1082.12868 1.47253 1073.66287
4 1997 1.00 112.4109707 112.41097 1.17231 1085.16699 1.47632 1076.36422
5 1997 1.00 112.8699002 112.86990 1.17560 1088.42169 1.48004 1079.27855
6 1997 1.00 113.3232120 113.32321 1.17912 1091.61393 1.48404 1082.12914
7 1997 1.00 113.7942645 113.79426 1.18258 1094.96887 1.48796 1085.13929
8 1997 1.00 114.2678375 114.26784 1.18622 1098.33955 1.49210 1088.16316
9 1997 1.00 114.7279210 114.72792 1.18987 1101.57199 1.49626 1091.04824
10 1997 1.00 115.2063882 115.20639 1.19337 1104.97267 1.50023 1094.09818
11 1997 1.00 115.6752649 115.67526 1.19705 1108.27273 1.50442 1097.04661
12 1997 1.00 116.1691804 116.16918 1.20063 1111.80425 1.50848 1100.22235
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.59%
GROSS ANNUAL RETURN = 4.95%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1111.80 1064.55
TOTAL RETURN 11.18% 6.46%
AVERAGE ANNUAL RETURN 3.60% 2.11%
WITH DEATH BENEFIT CHARGE
ERV 1100.22 1053.46
TOTAL RETURN 10.02% 5.35%
AVERAGE ANNUAL RETURN 3.23% 1.75%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
10 1994 1.00 100.0000000 100.00000 1000.00000 1000.00000
11 1994 1.00 100.1265972 100.12660 1.08333 1000.18264 1.37503 999.89094
12 1994 1.00 100.5041544 100.50415 1.08353 1002.87059 1.37488 1002.28644
1 1995 1.00 100.8843556 100.88436 1.08644 1005.57795 1.37818 1004.69985
2 1995 1.00 101.2751322 101.27513 1.08938 1008.38369 1.38150 1007.21007
3 1995 1.00 101.7218898 101.72189 1.09242 1011.73959 1.38495 1010.26826
4 1995 1.00 102.1560100 102.15601 1.09605 1014.96135 1.38915 1013.19064
5 1995 1.00 102.6203834 102.62038 1.09954 1018.47555 1.39317 1016.40316
6 1995 1.00 103.0717601 103.07176 1.10335 1021.85197 1.39759 1019.47623
7 1995 1.00 103.5237313 103.52373 1.10701 1025.22580 1.40181 1022.54484
8 1995 1.00 103.9716022 103.97160 1.11066 1028.55054 1.40603 1025.56260
9 1995 1.00 104.4041941 104.40419 1.11426 1031.71574 1.41018 1028.41945
10 1995 1.00 104.8477190 104.84772 1.11769 1034.98093 1.41411 1031.37422
11 1995 1.00 105.2803746 105.28037 1.12123 1038.13057 1.41817 1034.21203
12 1995 1.00 105.7268168 105.72682 1.12464 1041.40812 1.42208 1037.17554
1 1996 1.00 106.1459631 106.14596 1.12819 1044.40852 1.42615 1039.86119
2 1996 1.00 106.5330109 106.53301 1.13144 1047.08538 1.42984 1042.22307
3 1996 1.00 106.9463917 106.94639 1.13434 1050.01405 1.43309 1044.83413
4 1996 1.00 107.3477820 107.34778 1.13752 1052.81744 1.43668 1047.31891
5 1996 1.00 107.7642101 107.76421 1.14055 1055.76102 1.44010 1049.94161
6 1996 1.00 108.1698337 108.16983 1.14374 1058.59116 1.44370 1052.44988
7 1996 1.00 108.5943585 108.59436 1.14681 1061.59891 1.44715 1055.13318
8 1996 1.00 109.0227357 109.02274 1.15007 1064.63658 1.45084 1057.84457
9 1996 1.00 109.4111888 109.41119 1.15336 1067.27658 1.45457 1060.15915
10 1996 1.00 109.8418646 109.84186 1.15622 1070.32149 1.45775 1062.87451
11 1996 1.00 110.2667053 110.26671 1.15951 1073.30171 1.46149 1065.52395
12 1996 1.00 110.7072287 110.70723 1.16274 1076.42688 1.46513 1068.31566
1 1997 1.00 111.1442573 111.14426 1.16613 1079.51006 1.46897 1071.06399
2 1997 1.00 111.5344310 111.53443 1.16947 1082.13023 1.47275 1073.35122
3 1997 1.00 111.9752700 111.97527 1.17231 1085.23503 1.47589 1076.11774
4 1997 1.00 112.4109707 112.41097 1.17567 1088.28206 1.47970 1078.82527
5 1997 1.00 112.8699002 112.86990 1.17897 1091.54611 1.48342 1081.74626
6 1997 1.00 113.3232120 113.32321 1.18251 1094.74751 1.48744 1084.60337
7 1997 1.00 113.7942645 113.79426 1.18598 1098.11209 1.49137 1087.62039
8 1997 1.00 114.2678375 114.26784 1.18962 1101.49243 1.49551 1090.65119
9 1997 1.00 114.7279210 114.72792 1.19328 1104.73416 1.49968 1093.54286
10 1997 1.00 115.2063882 115.20639 1.19680 1108.14460 1.50366 1096.59977
11 1997 1.00 115.6752649 115.67526 1.20049 1111.45413 1.50786 1099.55494
12 1997 1.00 116.1691804 116.16918 1.20408 1114.99579 1.51192 1102.73795
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.17%
GROSS ANNUAL RETURN = 4.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1115.00 1077.09
TOTAL RETURN 11.50% 7.71%
AVERAGE ANNUAL RETURN 3.56% 2.42%
WITH DEATH BENEFIT CHARGE
ERV 1102.74 1065.24
TOTAL RETURN 10.27% 6.52%
AVERAGE ANNUAL RETURN 3.19% 2.05%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 1.00 103.0717601 103.07176 1000.00000 1000.00000
7 1995 1.00 103.5237313 103.52373 1.08333 1003.30168 1.37503 1003.00998
8 1995 1.00 103.9716022 103.97160 1.08691 1006.55532 1.37917 1005.97009
9 1995 1.00 104.4041941 104.40419 1.09043 1009.65283 1.38324 1008.77237
10 1995 1.00 104.8477190 104.84772 1.09379 1012.84820 1.38710 1011.67069
11 1995 1.00 105.2803746 105.28037 1.09725 1015.93048 1.39108 1014.45428
12 1995 1.00 105.7268168 105.72682 1.10059 1019.13795 1.39491 1017.36117
1 1996 1.00 106.1459631 106.14596 1.10407 1022.07418 1.39891 1019.99552
2 1996 1.00 106.5330109 106.53301 1.10725 1024.69380 1.40253 1022.31228
3 1996 1.00 106.9463917 106.94639 1.11008 1027.55984 1.40571 1024.87345
4 1996 1.00 107.3477820 107.34778 1.11319 1030.30328 1.40924 1027.31076
5 1996 1.00 107.7642101 107.76421 1.11616 1033.18391 1.41259 1029.88336
6 1996 1.00 108.1698337 108.16983 1.11928 1035.95353 1.41612 1032.34371
7 1996 1.00 108.5943585 108.59436 1.12228 1038.89696 1.41951 1034.97576
8 1996 1.00 109.0227357 109.02274 1.12547 1041.86968 1.42313 1037.63535
9 1996 1.00 109.4111888 109.41119 1.12869 1044.45321 1.42678 1039.90571
10 1996 1.00 109.8418646 109.84186 1.13149 1047.43301 1.42990 1042.56919
11 1996 1.00 110.2667053 110.26671 1.13472 1050.34950 1.43357 1045.16801
12 1996 1.00 110.7072287 110.70723 1.13788 1053.40784 1.43714 1047.90640
1 1997 1.00 111.1442573 111.14426 1.14119 1056.42509 1.44091 1050.60221
2 1997 1.00 111.5344310 111.53443 1.14446 1058.98923 1.44461 1052.84575
3 1997 1.00 111.9752700 111.97527 1.14724 1062.02763 1.44770 1055.55942
4 1997 1.00 112.4109707 112.41097 1.15053 1065.00950 1.45143 1058.21522
5 1997 1.00 112.8699002 112.86990 1.15376 1068.20375 1.45508 1061.08041
6 1997 1.00 113.3232120 113.32321 1.15722 1071.33669 1.45902 1063.88294
7 1997 1.00 113.7942645 113.79426 1.16061 1074.62931 1.46287 1066.84232
8 1997 1.00 114.2678375 114.26784 1.16418 1077.93738 1.46694 1069.81522
9 1997 1.00 114.7279210 114.72792 1.16777 1081.10977 1.47103 1072.65164
10 1997 1.00 115.2063882 115.20639 1.17120 1084.44729 1.47493 1075.65015
11 1997 1.00 115.6752649 115.67526 1.17482 1087.68604 1.47905 1078.54887
12 1997 1.00 116.1691804 116.16918 1.17833 1091.15197 1.48304 1081.67107
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 12.71%
GROSS ANNUAL RETURN = 4.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1091.15 1044.78
TOTAL RETURN 9.12% 4.48%
AVERAGE ANNUAL RETURN 3.43% 1.71%
WITH DEATH BENEFIT CHARGE
ERV 1081.67 1035.70
TOTAL RETURN 8.17% 3.57%
AVERAGE ANNUAL RETURN 3.09% 1.37%
Fidelity Asset Manager Growth
12/1997
Assume ($10000 @ $10.00 on 1/ 3/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.5300000000 11.72 4.522 104.522184
2/96 0.4200000000 11.62 3.778 108.300095
12/96 0.5400000000 13.21 4.427 112.727199
2/97 0.0200000000 13.67 0.165 112.892126
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.10 112.7271991 1476.72631 1000.00000 1000.00000
1 1997 13.66 112.7271991 1539.85354 1.08333 1041.66476 1.37503 1041.37306
2 1997 13.77 112.8921255 1554.52457 1.12847 1050.46080 1.43192 1049.86287
3 1997 13.12 112.8921255 1481.14469 1.13800 999.73678 1.44360 998.86147
4 1997 13.67 112.8921255 1543.23536 1.08305 1040.56343 1.37347 1039.36101
5 1997 14.50 112.8921255 1636.93582 1.12728 1102.61593 1.42916 1101.03863
6 1997 14.93 112.8921255 1685.47943 1.19450 1134.11970 1.51396 1132.17616
7 1997 15.94 112.8921255 1799.50048 1.22863 1209.61317 1.55678 1207.20999
8 1997 15.44 112.8921255 1743.05442 1.31041 1170.36006 1.65995 1167.68273
9 1997 16.01 112.8921255 1807.40293 1.26789 1212.29846 1.60560 1209.18458
10 1997 15.63 112.8921255 1764.50392 1.31332 1182.21103 1.66267 1178.82172
11 1997 16.08 112.8921255 1815.30538 1.28073 1214.96709 1.62092 1211.14000
12 1997 16.36 112.8921255 1846.91517 1.31621 1234.80702 1.66536 1230.56415
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 25.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1234.81 1161.34
TOTAL RETURN 23.48% 16.13%
WITH DEATH BENEFIT CHARGE
ERV 1230.56 1157.35
TOTAL RETURN 23.06% 15.73%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.10 112.7271991 1476.72631 1000.00000 1000.00000
1 1997 13.66 112.7271991 1539.85354 1.08333 1041.66476 1.37503 1041.37306
2 1997 13.77 112.8921255 1554.52457 1.12847 1050.46080 1.43192 1049.86287
3 1997 13.12 112.8921255 1481.14469 1.13800 999.73678 1.44360 998.86147
4 1997 13.67 112.8921255 1543.23536 1.08305 1040.56343 1.37347 1039.36101
5 1997 14.50 112.8921255 1636.93582 1.12728 1102.61593 1.42916 1101.03863
6 1997 14.93 112.8921255 1685.47943 1.19450 1134.11970 1.51396 1132.17616
7 1997 15.94 112.8921255 1799.50048 1.22863 1209.61317 1.55678 1207.20999
8 1997 15.44 112.8921255 1743.05442 1.31041 1170.36006 1.65995 1167.68273
9 1997 16.01 112.8921255 1807.40293 1.26789 1212.29846 1.60560 1209.18458
10 1997 15.63 112.8921255 1764.50392 1.31332 1182.21103 1.66267 1178.82172
11 1997 16.08 112.8921255 1815.30538 1.28073 1214.96709 1.62092 1211.14000
12 1997 16.36 112.8921255 1846.91517 1.31621 1234.80702 1.66536 1230.56415
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 25.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1234.81 1161.34
TOTAL RETURN 23.48% 16.13%
WITH DEATH BENEFIT CHARGE
ERV 1230.56 1157.35
TOTAL RETURN 23.06% 15.73%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.02 100.0000000 1002.00000 1.08333 1000.91667 1.37503 1000.62497
2 1995 10.17 100.0000000 1017.00000 1.08433 1014.81612 1.37589 1014.22849
3 1995 10.31 100.0000000 1031.00000 1.09938 1027.68668 1.39460 1026.79574
4 1995 10.58 100.0000000 1058.00000 1.11333 1053.48658 1.41188 1052.27376
5 1995 10.73 100.0000000 1073.00000 1.14128 1067.28131 1.44691 1065.74566
6 1995 11.16 100.0000000 1116.00000 1.15622 1108.89592 1.46544 1106.98951
7 1995 11.57 100.0000000 1157.00000 1.20130 1148.43362 1.52215 1146.13633
8 1995 12.09 100.0000000 1209.00000 1.24414 1198.80448 1.57598 1196.07210
9 1995 12.27 100.0000000 1227.00000 1.29870 1215.35398 1.64464 1212.23499
10 1995 11.80 100.0000000 1180.00000 1.31663 1167.48344 1.66686 1164.13370
11 1995 12.01 100.0000000 1201.00000 1.26477 1186.99592 1.60072 1183.25061
12 1995 11.78 104.5221843 1231.27133 1.28591 1215.62836 1.62701 1211.44756
1 1996 12.05 104.5221843 1259.49232 1.31693 1242.17388 1.66578 1237.54840
2 1996 11.67 108.3000946 1263.86210 1.34569 1245.13789 1.70167 1240.14038
3 1996 11.88 108.3000946 1286.60512 1.34890 1266.19507 1.70523 1260.75129
4 1996 12.16 108.3000946 1316.92915 1.37171 1294.66634 1.73358 1288.73240
5 1996 12.35 108.3000946 1337.50617 1.40256 1313.49295 1.77205 1307.09679
6 1996 12.40 108.3000946 1342.92117 1.42295 1317.38778 1.79730 1310.59138
7 1996 12.09 108.3000946 1309.34814 1.42717 1283.02592 1.80211 1276.02449
8 1996 12.18 108.3000946 1319.09515 1.38994 1291.18703 1.75458 1283.76885
9 1996 12.68 108.3000946 1373.24520 1.39879 1342.79264 1.76522 1334.70350
10 1996 13.05 108.3000946 1413.31623 1.45469 1380.52039 1.83526 1371.81463
11 1996 13.90 108.3000946 1505.37131 1.49556 1468.94377 1.88629 1459.28025
12 1996 13.10 112.7271991 1476.72631 1.59136 1439.40057 2.00656 1429.50573
1 1997 13.66 112.7271991 1539.85354 1.55935 1499.37285 1.96562 1488.64876
2 1997 13.77 112.8921255 1554.52457 1.62432 1512.03388 2.04694 1500.78499
3 1997 13.12 112.8921255 1481.14469 1.63804 1439.02169 2.06363 1427.87820
4 1997 13.67 112.8921255 1543.23536 1.55894 1497.78760 1.96338 1485.77252
5 1997 14.50 112.8921255 1636.93582 1.62260 1587.10601 2.04299 1573.94104
6 1997 14.93 112.8921255 1685.47943 1.71936 1632.45255 2.16422 1618.45231
7 1997 15.94 112.8921255 1799.50048 1.76849 1741.11789 2.22543 1725.71361
8 1997 15.44 112.8921255 1743.05442 1.88621 1684.61694 2.37291 1669.20915
9 1997 16.01 112.8921255 1807.40293 1.82500 1744.98310 2.29522 1728.53629
10 1997 15.63 112.8921255 1764.50392 1.89040 1701.67524 2.37679 1685.13240
11 1997 16.08 112.8921255 1815.30538 1.84348 1748.82433 2.31711 1731.33158
12 1997 16.36 112.8921255 1846.91517 1.89456 1777.38194 2.38064 1759.09850
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 84.69%
GROSS ANNUAL RETURN = 22.69%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1777.38 1701.84
TOTAL RETURN 77.74% 70.18%
AVERAGE ANNUAL RETURN 21.13% 19.39%
WITH DEATH BENEFIT CHARGE
ERV 1759.10 1684.34
TOTAL RETURN 75.91% 68.43%
AVERAGE ANNUAL RETURN 20.72% 18.98%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.02 100.0000000 1002.00000 1.08333 1000.91667 1.37503 1000.62497
2 1995 10.17 100.0000000 1017.00000 1.08433 1014.81612 1.37589 1014.22849
3 1995 10.31 100.0000000 1031.00000 1.09938 1027.68668 1.39460 1026.79574
4 1995 10.58 100.0000000 1058.00000 1.11333 1053.48658 1.41188 1052.27376
5 1995 10.73 100.0000000 1073.00000 1.14128 1067.28131 1.44691 1065.74566
6 1995 11.16 100.0000000 1116.00000 1.15622 1108.89592 1.46544 1106.98951
7 1995 11.57 100.0000000 1157.00000 1.20130 1148.43362 1.52215 1146.13633
8 1995 12.09 100.0000000 1209.00000 1.24414 1198.80448 1.57598 1196.07210
9 1995 12.27 100.0000000 1227.00000 1.29870 1215.35398 1.64464 1212.23499
10 1995 11.80 100.0000000 1180.00000 1.31663 1167.48344 1.66686 1164.13370
11 1995 12.01 100.0000000 1201.00000 1.26477 1186.99592 1.60072 1183.25061
12 1995 11.78 104.5221843 1231.27133 1.28591 1215.62836 1.62701 1211.44756
1 1996 12.05 104.5221843 1259.49232 1.31693 1242.17388 1.66578 1237.54840
2 1996 11.67 108.3000946 1263.86210 1.34569 1245.13789 1.70167 1240.14038
3 1996 11.88 108.3000946 1286.60512 1.34890 1266.19507 1.70523 1260.75129
4 1996 12.16 108.3000946 1316.92915 1.37171 1294.66634 1.73358 1288.73240
5 1996 12.35 108.3000946 1337.50617 1.40256 1313.49295 1.77205 1307.09679
6 1996 12.40 108.3000946 1342.92117 1.42295 1317.38778 1.79730 1310.59138
7 1996 12.09 108.3000946 1309.34814 1.42717 1283.02592 1.80211 1276.02449
8 1996 12.18 108.3000946 1319.09515 1.38994 1291.18703 1.75458 1283.76885
9 1996 12.68 108.3000946 1373.24520 1.39879 1342.79264 1.76522 1334.70350
10 1996 13.05 108.3000946 1413.31623 1.45469 1380.52039 1.83526 1371.81463
11 1996 13.90 108.3000946 1505.37131 1.49556 1468.94377 1.88629 1459.28025
12 1996 13.10 112.7271991 1476.72631 1.59136 1439.40057 2.00656 1429.50573
1 1997 13.66 112.7271991 1539.85354 1.55935 1499.37285 1.96562 1488.64876
2 1997 13.77 112.8921255 1554.52457 1.62432 1512.03388 2.04694 1500.78499
3 1997 13.12 112.8921255 1481.14469 1.63804 1439.02169 2.06363 1427.87820
4 1997 13.67 112.8921255 1543.23536 1.55894 1497.78760 1.96338 1485.77252
5 1997 14.50 112.8921255 1636.93582 1.62260 1587.10601 2.04299 1573.94104
6 1997 14.93 112.8921255 1685.47943 1.71936 1632.45255 2.16422 1618.45231
7 1997 15.94 112.8921255 1799.50048 1.76849 1741.11789 2.22543 1725.71361
8 1997 15.44 112.8921255 1743.05442 1.88621 1684.61694 2.37291 1669.20915
9 1997 16.01 112.8921255 1807.40293 1.82500 1744.98310 2.29522 1728.53629
10 1997 15.63 112.8921255 1764.50392 1.89040 1701.67524 2.37679 1685.13240
11 1997 16.08 112.8921255 1815.30538 1.84348 1748.82433 2.31711 1731.33158
12 1997 16.36 112.8921255 1846.91517 1.89456 1777.38194 2.38064 1759.09850
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 84.69%
GROSS ANNUAL RETURN = 22.76%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1777.38 1701.84
TOTAL RETURN 77.74% 70.18%
AVERAGE ANNUAL RETURN 21.20% 19.45%
WITH DEATH BENEFIT CHARGE
ERV 1759.10 1684.34
TOTAL RETURN 75.91% 68.43%
AVERAGE ANNUAL RETURN 20.78% 19.04%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 11.16 100.0000000 1116.00000 1000.00000 1000.00000
7 1995 11.57 100.0000000 1157.00000 1.08333 1035.65502 1.37503 1035.36332
8 1995 12.09 100.0000000 1209.00000 1.12196 1081.07935 1.42366 1080.47284
9 1995 12.27 100.0000000 1227.00000 1.17117 1096.00366 1.48569 1095.07360
10 1995 11.80 100.0000000 1180.00000 1.18734 1052.83411 1.50576 1051.62125
11 1995 12.01 100.0000000 1201.00000 1.14057 1070.43042 1.44601 1068.89053
12 1995 11.78 104.5221843 1231.27133 1.15963 1096.25109 1.46976 1094.36227
1 1996 12.05 104.5221843 1259.49232 1.18761 1120.18979 1.50478 1117.94049
2 1996 11.67 108.3000946 1263.86210 1.21354 1122.86272 1.53721 1120.28196
3 1996 11.88 108.3000946 1286.60512 1.21643 1141.85205 1.54042 1138.90085
4 1996 12.16 108.3000946 1316.92915 1.23701 1167.52738 1.56603 1164.17760
5 1996 12.35 108.3000946 1337.50617 1.26482 1184.50517 1.60078 1180.76709
6 1996 12.40 108.3000946 1342.92117 1.28321 1188.01753 1.62359 1183.92393
7 1996 12.09 108.3000946 1309.34814 1.28702 1157.03007 1.62793 1152.69790
8 1996 12.18 108.3000946 1319.09515 1.25345 1164.38975 1.58500 1159.69378
9 1996 12.68 108.3000946 1373.24520 1.26142 1210.92757 1.59462 1205.70564
10 1996 13.05 108.3000946 1413.31623 1.31184 1244.95037 1.65789 1239.23002
11 1996 13.90 108.3000946 1505.37131 1.34870 1324.69040 1.70398 1318.24217
12 1996 13.10 112.7271991 1476.72631 1.43508 1298.04840 1.81263 1291.34533
1 1997 13.66 112.7271991 1539.85354 1.40622 1352.13128 1.77564 1344.77223
2 1997 13.77 112.8921255 1554.52457 1.46481 1363.54896 1.84911 1355.73551
3 1997 13.12 112.8921255 1481.14469 1.47718 1297.70673 1.86418 1289.87510
4 1997 13.67 112.8921255 1543.23536 1.40585 1350.70170 1.77362 1342.17398
5 1997 14.50 112.8921255 1636.93582 1.46326 1431.24885 1.84553 1421.82109
6 1997 14.93 112.8921255 1685.47943 1.55052 1472.14227 1.95505 1462.03039
7 1997 15.94 112.8921255 1799.50048 1.59482 1570.13644 2.01034 1558.92498
8 1997 15.44 112.8921255 1743.05442 1.70098 1519.18400 2.14357 1507.88163
9 1997 16.01 112.8921255 1807.40293 1.64578 1573.62208 2.07339 1561.47486
10 1997 15.63 112.8921255 1764.50392 1.70476 1534.56715 2.14708 1522.26591
11 1997 16.08 112.8921255 1815.30538 1.66245 1577.08610 2.09317 1563.99998
12 1997 16.36 112.8921255 1846.91517 1.70851 1602.83928 2.15055 1589.08326
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 65.49%
GROSS ANNUAL RETURN = 21.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1602.84 1534.72
TOTAL RETURN 60.28% 53.47%
AVERAGE ANNUAL RETURN 20.03% 18.03%
WITH DEATH BENEFIT CHARGE
ERV 1589.08 1521.55
TOTAL RETURN 58.91% 52.15%
AVERAGE ANNUAL RETURN 19.63% 17.64%
Fidelity Contrafund
12/1997
Assume ($10000 @ $10.00 on 1/ 3/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.1800000000 13.64 1.320 101.319648
2/96 0.1300000000 13.78 0.956 102.275494
2/97 0.5100000000 16.46 3.169 105.444419
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 16.56 102.2754938 1693.68218 1000.00000 1000.00000
1 1997 17.20 102.2754938 1759.13849 1.08333 1037.56401 1.37503 1037.27231
2 1997 16.22 105.4444186 1710.30847 1.12403 1007.63936 1.42628 1007.05350
3 1997 15.80 105.4444186 1666.02181 1.09161 980.45598 1.38473 979.59217
4 1997 16.18 105.4444186 1706.09069 1.06216 1002.97441 1.34697 1001.80501
5 1997 17.18 105.4444186 1811.53511 1.08656 1063.87638 1.37752 1062.34375
6 1997 17.93 105.4444186 1890.61843 1.15253 1109.16781 1.46076 1107.26005
7 1997 19.47 105.4444186 2053.00283 1.20160 1203.23216 1.52252 1200.83962
8 1997 18.92 105.4444186 1995.00840 1.30350 1167.93905 1.65119 1165.26640
9 1997 20.20 105.4444186 2129.97726 1.26527 1245.68869 1.60228 1242.49821
10 1997 19.59 105.4444186 2065.65616 1.34950 1206.72186 1.70848 1203.26875
11 1997 19.58 105.4444186 2064.60172 1.30728 1204.79859 1.65453 1200.99999
12 1997 19.94 105.4444186 2102.56171 1.30520 1225.64495 1.65141 1221.43029
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 24.14%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1225.64 1152.72
TOTAL RETURN 22.56% 15.27%
WITH DEATH BENEFIT CHARGE
ERV 1221.43 1148.76
TOTAL RETURN 22.14% 14.88%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 16.56 102.2754938 1693.68218 1000.00000 1000.00000
1 1997 17.20 102.2754938 1759.13849 1.08333 1037.56401 1.37503 1037.27231
2 1997 16.22 105.4444186 1710.30847 1.12403 1007.63936 1.42628 1007.05350
3 1997 15.80 105.4444186 1666.02181 1.09161 980.45598 1.38473 979.59217
4 1997 16.18 105.4444186 1706.09069 1.06216 1002.97441 1.34697 1001.80501
5 1997 17.18 105.4444186 1811.53511 1.08656 1063.87638 1.37752 1062.34375
6 1997 17.93 105.4444186 1890.61843 1.15253 1109.16781 1.46076 1107.26005
7 1997 19.47 105.4444186 2053.00283 1.20160 1203.23216 1.52252 1200.83962
8 1997 18.92 105.4444186 1995.00840 1.30350 1167.93905 1.65119 1165.26640
9 1997 20.20 105.4444186 2129.97726 1.26527 1245.68869 1.60228 1242.49821
10 1997 19.59 105.4444186 2065.65616 1.34950 1206.72186 1.70848 1203.26875
11 1997 19.58 105.4444186 2064.60172 1.30728 1204.79859 1.65453 1200.99999
12 1997 19.94 105.4444186 2102.56171 1.30520 1225.64495 1.65141 1221.43029
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 24.14%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1225.64 1152.72
TOTAL RETURN 22.56% 15.27%
WITH DEATH BENEFIT CHARGE
ERV 1221.43 1148.76
TOTAL RETURN 22.14% 14.88%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 9.87 100.0000000 987.00000 1.08333 985.91667 1.37503 985.62497
2 1995 10.37 100.0000000 1037.00000 1.06808 1034.79371 1.35527 1034.20004
3 1995 10.89 100.0000000 1089.00000 1.12103 1085.56205 1.42206 1084.63758
4 1995 11.48 100.0000000 1148.00000 1.17603 1143.19976 1.49141 1141.90982
5 1995 11.73 100.0000000 1173.00000 1.23847 1166.85676 1.57016 1165.20703
6 1995 12.50 100.0000000 1250.00000 1.26409 1242.18940 1.60220 1240.09327
7 1995 13.47 100.0000000 1347.00000 1.34571 1337.23759 1.70517 1334.61934
8 1995 13.64 100.0000000 1364.00000 1.44867 1352.66571 1.83515 1349.62794
9 1995 13.94 100.0000000 1394.00000 1.46539 1380.95104 1.85578 1377.45606
10 1995 13.65 100.0000000 1365.00000 1.49603 1350.72647 1.89405 1346.90618
11 1995 13.90 100.0000000 1390.00000 1.46329 1374.00176 1.85204 1369.72275
12 1995 13.78 101.3196481 1396.18475 1.48850 1378.62683 1.88341 1373.93387
1 1996 13.89 101.3196481 1407.32991 1.49351 1388.13832 1.88920 1383.01220
2 1996 13.81 102.2754938 1412.42457 1.50382 1391.65969 1.90169 1386.11714
3 1996 14.26 102.2754938 1458.44854 1.50763 1435.49940 1.90596 1429.37792
4 1996 14.73 102.2754938 1506.51802 1.55512 1481.25737 1.96544 1474.52382
5 1996 14.90 102.2754938 1523.90486 1.60470 1496.74797 2.02752 1489.51388
6 1996 14.78 102.2754938 1511.63180 1.62148 1483.07215 2.04813 1475.46967
7 1996 14.09 102.2754938 1441.06171 1.60666 1412.22870 2.02882 1404.55898
8 1996 14.63 102.2754938 1496.29047 1.52991 1464.82252 1.93132 1456.45746
9 1996 15.25 102.2754938 1559.70128 1.58689 1525.31287 2.00268 1516.17752
10 1996 15.72 102.2754938 1607.77076 1.65242 1570.67009 2.08479 1560.82082
11 1996 16.66 102.2754938 1703.90973 1.70156 1662.88901 2.14618 1652.00616
12 1996 16.56 102.2754938 1693.68218 1.80146 1651.10622 2.27156 1639.81859
1 1997 17.20 102.2754938 1759.13849 1.78870 1713.12839 2.25481 1700.93842
2 1997 16.22 105.4444186 1710.30847 1.85589 1663.71962 2.33885 1651.38506
3 1997 15.80 105.4444186 1666.02181 1.80236 1618.83697 2.27071 1606.35346
4 1997 16.18 105.4444186 1706.09069 1.75374 1656.01728 2.20879 1642.77848
5 1997 17.18 105.4444186 1811.53511 1.79402 1756.57291 2.25888 1742.05104
6 1997 17.93 105.4444186 1890.61843 1.90295 1831.35387 2.39538 1815.70562
7 1997 19.47 105.4444186 2053.00283 1.98397 1986.66410 2.49666 1969.15913
8 1997 18.92 105.4444186 1995.00840 2.15222 1928.39143 2.70766 1910.82551
9 1997 20.20 105.4444186 2129.97726 2.08909 2056.76434 2.62745 2037.47167
10 1997 19.59 105.4444186 2065.65616 2.22816 1992.42597 2.80159 1973.14247
11 1997 19.58 105.4444186 2064.60172 2.15846 1989.25044 2.71314 1969.42211
12 1997 19.94 105.4444186 2102.56171 2.15502 2023.67000 2.70802 2002.92410
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 110.26%
GROSS ANNUAL RETURN = 28.11%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2023.67 1937.66
TOTAL RETURN 102.37% 93.77%
AVERAGE ANNUAL RETURN 26.49% 24.67%
WITH DEATH BENEFIT CHARGE
ERV 2002.92 1917.80
TOTAL RETURN 100.29% 91.78%
AVERAGE ANNUAL RETURN 26.05% 24.24%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 9.87 100.0000000 987.00000 1.08333 985.91667 1.37503 985.62497
2 1995 10.37 100.0000000 1037.00000 1.06808 1034.79371 1.35527 1034.20004
3 1995 10.89 100.0000000 1089.00000 1.12103 1085.56205 1.42206 1084.63758
4 1995 11.48 100.0000000 1148.00000 1.17603 1143.19976 1.49141 1141.90982
5 1995 11.73 100.0000000 1173.00000 1.23847 1166.85676 1.57016 1165.20703
6 1995 12.50 100.0000000 1250.00000 1.26409 1242.18940 1.60220 1240.09327
7 1995 13.47 100.0000000 1347.00000 1.34571 1337.23759 1.70517 1334.61934
8 1995 13.64 100.0000000 1364.00000 1.44867 1352.66571 1.83515 1349.62794
9 1995 13.94 100.0000000 1394.00000 1.46539 1380.95104 1.85578 1377.45606
10 1995 13.65 100.0000000 1365.00000 1.49603 1350.72647 1.89405 1346.90618
11 1995 13.90 100.0000000 1390.00000 1.46329 1374.00176 1.85204 1369.72275
12 1995 13.78 101.3196481 1396.18475 1.48850 1378.62683 1.88341 1373.93387
1 1996 13.89 101.3196481 1407.32991 1.49351 1388.13832 1.88920 1383.01220
2 1996 13.81 102.2754938 1412.42457 1.50382 1391.65969 1.90169 1386.11714
3 1996 14.26 102.2754938 1458.44854 1.50763 1435.49940 1.90596 1429.37792
4 1996 14.73 102.2754938 1506.51802 1.55512 1481.25737 1.96544 1474.52382
5 1996 14.90 102.2754938 1523.90486 1.60470 1496.74797 2.02752 1489.51388
6 1996 14.78 102.2754938 1511.63180 1.62148 1483.07215 2.04813 1475.46967
7 1996 14.09 102.2754938 1441.06171 1.60666 1412.22870 2.02882 1404.55898
8 1996 14.63 102.2754938 1496.29047 1.52991 1464.82252 1.93132 1456.45746
9 1996 15.25 102.2754938 1559.70128 1.58689 1525.31287 2.00268 1516.17752
10 1996 15.72 102.2754938 1607.77076 1.65242 1570.67009 2.08479 1560.82082
11 1996 16.66 102.2754938 1703.90973 1.70156 1662.88901 2.14618 1652.00616
12 1996 16.56 102.2754938 1693.68218 1.80146 1651.10622 2.27156 1639.81859
1 1997 17.20 102.2754938 1759.13849 1.78870 1713.12839 2.25481 1700.93842
2 1997 16.22 105.4444186 1710.30847 1.85589 1663.71962 2.33885 1651.38506
3 1997 15.80 105.4444186 1666.02181 1.80236 1618.83697 2.27071 1606.35346
4 1997 16.18 105.4444186 1706.09069 1.75374 1656.01728 2.20879 1642.77848
5 1997 17.18 105.4444186 1811.53511 1.79402 1756.57291 2.25888 1742.05104
6 1997 17.93 105.4444186 1890.61843 1.90295 1831.35387 2.39538 1815.70562
7 1997 19.47 105.4444186 2053.00283 1.98397 1986.66410 2.49666 1969.15913
8 1997 18.92 105.4444186 1995.00840 2.15222 1928.39143 2.70766 1910.82551
9 1997 20.20 105.4444186 2129.97726 2.08909 2056.76434 2.62745 2037.47167
10 1997 19.59 105.4444186 2065.65616 2.22816 1992.42597 2.80159 1973.14247
11 1997 19.58 105.4444186 2064.60172 2.15846 1989.25044 2.71314 1969.42211
12 1997 19.94 105.4444186 2102.56171 2.15502 2023.67000 2.70802 2002.92410
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 110.26%
GROSS ANNUAL RETURN = 28.20%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2023.67 1937.66
TOTAL RETURN 102.37% 93.77%
AVERAGE ANNUAL RETURN 26.57% 24.74%
WITH DEATH BENEFIT CHARGE
ERV 2002.92 1917.80
TOTAL RETURN 100.29% 91.78%
AVERAGE ANNUAL RETURN 26.13% 24.32%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 12.50 100.0000000 1250.00000 1000.00000 1000.00000
7 1995 13.47 100.0000000 1347.00000 1.08333 1076.51667 1.37503 1076.22497
8 1995 13.64 100.0000000 1364.00000 1.16623 1088.93677 1.47985 1088.32777
9 1995 13.94 100.0000000 1394.00000 1.17968 1111.70731 1.49649 1110.76811
10 1995 13.65 100.0000000 1365.00000 1.20435 1087.37562 1.52734 1086.13296
11 1995 13.90 100.0000000 1390.00000 1.17799 1106.11293 1.49347 1104.53204
12 1995 13.78 101.3196481 1396.18475 1.19829 1109.83625 1.51877 1107.92784
1 1996 13.89 101.3196481 1407.32991 1.20232 1117.49329 1.52344 1115.24853
2 1996 13.81 102.2754938 1412.42457 1.21062 1120.32809 1.53350 1117.75233
3 1996 14.26 102.2754938 1458.44854 1.21369 1155.62039 1.53695 1152.63743
4 1996 14.73 102.2754938 1506.51802 1.25192 1192.45694 1.58491 1189.04267
5 1996 14.90 102.2754938 1523.90486 1.29183 1204.92734 1.63497 1201.13053
6 1996 14.78 102.2754938 1511.63180 1.30534 1193.91789 1.65159 1189.80540
7 1996 14.09 102.2754938 1441.06171 1.29341 1136.88677 1.63602 1132.62366
8 1996 14.63 102.2754938 1496.29047 1.23163 1179.22639 1.55740 1174.47412
9 1996 15.25 102.2754938 1559.70128 1.27750 1227.92295 1.61494 1222.63184
10 1996 15.72 102.2754938 1607.77076 1.33025 1264.43688 1.68116 1258.63179
11 1996 16.66 102.2754938 1703.90973 1.36981 1338.67589 1.73066 1332.16283
12 1996 16.56 102.2754938 1693.68218 1.45023 1329.19039 1.83177 1322.33488
1 1997 17.20 102.2754938 1759.13849 1.43996 1379.12011 1.81825 1371.62136
2 1997 16.22 105.4444186 1710.30847 1.49405 1339.34456 1.88603 1331.66198
3 1997 15.80 105.4444186 1666.02181 1.45096 1303.21267 1.83108 1295.34890
4 1997 16.18 105.4444186 1706.09069 1.41181 1333.14395 1.78115 1324.72171
5 1997 17.18 105.4444186 1811.53511 1.44424 1414.09427 1.82154 1404.77420
6 1997 17.93 105.4444186 1890.61843 1.53194 1474.29520 1.93161 1464.16859
7 1997 19.47 105.4444186 2053.00283 1.59715 1599.32463 2.01328 1587.91212
8 1997 18.92 105.4444186 1995.00840 1.73260 1552.41337 2.18343 1540.87241
9 1997 20.20 105.4444186 2129.97726 1.68178 1655.75744 2.11875 1642.99873
10 1997 19.59 105.4444186 2065.65616 1.79374 1603.96310 2.25918 1591.12424
11 1997 19.58 105.4444186 2064.60172 1.73763 1601.40671 2.18785 1588.12418
12 1997 19.94 105.4444186 2102.56171 1.73486 1629.11549 2.18372 1615.13988
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.20%
GROSS ANNUAL RETURN = 22.30%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1629.12 1559.88
TOTAL RETURN 62.91% 55.99%
AVERAGE ANNUAL RETURN 20.79% 18.78%
WITH DEATH BENEFIT CHARGE
ERV 1615.14 1546.50
TOTAL RETURN 61.51% 54.65%
AVERAGE ANNUAL RETURN 20.39% 18.38%
Fidelity Equity Income Fund
12/1997
Assume ($10000 @ $10.00 on 10/ 9/1986)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/87 0.0700000000 11.62 0.602 100.602410
6/87 0.1200000000 11.72 1.030 101.632468
9/87 0.1200000000 11.80 1.034 102.666019
12/87 0.2300000000 9.45 2.499 105.164769
3/88 0.1400000000 10.60 1.389 106.553737
6/88 0.1400000000 10.89 1.370 107.923574
9/88 0.1400000000 10.87 1.390 109.313574
12/88 0.1100000000 10.95 1.098 110.411701
3/89 0.2200000000 11.56 2.101 112.512962
6/89 0.1300000000 12.49 1.171 113.684034
9/89 0.1300000000 12.93 1.143 114.827029
12/89 0.1300000000 12.03 1.241 116.067886
2/90 0.3900000000 11.20 4.042 120.109536
3/90 0.2000000000 11.05 2.174 122.283464
6/90 0.1300000000 11.24 1.414 123.697774
9/90 0.1300000000 9.67 1.663 125.360723
12/90 0.1300000000 9.57 1.703 127.063638
3/91 0.2300000000 10.60 2.757 129.820679
6/91 0.1200000000 11.10 1.403 131.224146
9/91 0.1200000000 11.38 1.384 132.607880
12/91 0.1200000000 11.18 1.423 134.031220
3/92 0.1200000000 12.33 1.304 135.335660
6/92 0.1000000000 12.45 1.087 136.422694
9/92 0.1000000000 12.56 1.086 137.508862
12/92 0.1000000000 13.29 1.035 138.543541
3/93 0.1000000000 14.36 0.965 139.508329
6/93 0.1000000000 14.40 0.969 140.477137
9/93 0.1000000000 15.18 0.925 141.402546
12/93 0.0900000000 15.29 0.832 142.234870
2/94 0.7700000000 15.04 7.282 149.516841
3/94 0.1000000000 14.97 0.999 150.515618
6/94 0.0900000000 14.96 0.906 151.421126
9/94 0.0900000000 15.79 0.863 152.284198
12/94 0.0900000000 15.34 0.893 153.177651
2/95 0.7800000000 15.11 7.907 161.084903
3/95 0.1000000000 15.60 1.033 162.117498
6/95 0.1000000000 16.78 0.966 163.083633
9/95 0.1000000000 18.32 0.890 163.973828
12/95 0.1000000000 19.01 0.863 164.836394
2/96 0.8900000000 18.86 7.779 172.614994
2/97 2.1700000000 19.80 18.918 191.532900
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 21.03 172.6149937 3630.09332 1000.00000 1000.00000
1 1997 21.85 172.6149937 3771.63761 1.08333 1037.90858 1.37503 1037.61688
2 1997 19.91 191.5328996 3813.42003 1.12440 1048.28219 1.42676 1047.68490
3 1997 19.17 191.5328996 3671.68569 1.13564 1008.18478 1.44060 1007.30473
4 1997 19.85 191.5328996 3801.92806 1.09220 1042.85501 1.38508 1041.65086
5 1997 21.08 191.5328996 4037.51352 1.12976 1106.34548 1.43230 1104.76418
6 1997 22.06 191.5328996 4225.21577 1.19854 1156.58046 1.51909 1154.60509
7 1997 23.67 191.5328996 4533.58373 1.25296 1239.73795 1.58762 1237.28376
8 1997 22.56 191.5328996 4320.98221 1.34305 1180.25763 1.70131 1177.56027
9 1997 23.80 191.5328996 4558.48301 1.27861 1243.85134 1.61918 1240.66514
10 1997 22.93 191.5328996 4391.84939 1.34751 1197.03532 1.70596 1193.60714
11 1997 23.77 191.5328996 4552.73702 1.29679 1239.58980 1.64125 1235.69158
12 1997 24.28 191.5328996 4650.41880 1.34289 1264.84307 1.69912 1260.50499
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.11%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1264.84 1189.58
TOTAL RETURN 26.48% 18.96%
WITH DEATH BENEFIT CHARGE
ERV 1260.50 1185.50
TOTAL RETURN 26.05% 18.55%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 21.03 172.6149937 3630.09332 1000.00000 1000.00000
1 1997 21.85 172.6149937 3771.63761 1.08333 1037.90858 1.37503 1037.61688
2 1997 19.91 191.5328996 3813.42003 1.12440 1048.28219 1.42676 1047.68490
3 1997 19.17 191.5328996 3671.68569 1.13564 1008.18478 1.44060 1007.30473
4 1997 19.85 191.5328996 3801.92806 1.09220 1042.85501 1.38508 1041.65086
5 1997 21.08 191.5328996 4037.51352 1.12976 1106.34548 1.43230 1104.76418
6 1997 22.06 191.5328996 4225.21577 1.19854 1156.58046 1.51909 1154.60509
7 1997 23.67 191.5328996 4533.58373 1.25296 1239.73795 1.58762 1237.28376
8 1997 22.56 191.5328996 4320.98221 1.34305 1180.25763 1.70131 1177.56027
9 1997 23.80 191.5328996 4558.48301 1.27861 1243.85134 1.61918 1240.66514
10 1997 22.93 191.5328996 4391.84939 1.34751 1197.03532 1.70596 1193.60714
11 1997 23.77 191.5328996 4552.73702 1.29679 1239.58980 1.64125 1235.69158
12 1997 24.28 191.5328996 4650.41880 1.34289 1264.84307 1.69912 1260.50499
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.11%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1264.84 1189.58
TOTAL RETURN 26.48% 18.96%
WITH DEATH BENEFIT CHARGE
ERV 1260.50 1185.50
TOTAL RETURN 26.05% 18.55%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 15.35 153.1776512 2351.27695 1000.00000 1000.00000
1 1995 15.59 153.1776512 2388.03958 1.08333 1014.55185 1.37503 1014.26015
2 1995 15.39 161.0849025 2479.09665 1.09910 1052.13809 1.39464 1051.53972
3 1995 15.82 162.1174981 2564.69882 1.13982 1087.32816 1.44590 1086.40304
4 1995 16.26 162.1174981 2636.03052 1.17794 1116.39196 1.49384 1115.12522
5 1995 16.75 162.1174981 2715.46809 1.20942 1148.82535 1.53333 1147.19652
6 1995 16.89 163.0836333 2754.48257 1.24456 1164.08653 1.57743 1162.10142
7 1995 17.54 163.0836333 2860.48693 1.26109 1207.62450 1.59793 1205.22617
8 1995 17.76 163.0836333 2896.36533 1.30826 1221.46318 1.65723 1218.68580
9 1995 18.25 163.9738278 2992.52236 1.32325 1260.69154 1.67573 1257.46947
10 1995 18.04 163.9738278 2958.08785 1.36575 1244.81920 1.72906 1241.27090
11 1995 18.82 163.9738278 3085.98744 1.34855 1297.29321 1.70679 1293.23325
12 1995 19.27 164.8363940 3176.39731 1.40540 1333.89448 1.77824 1329.34274
1 1996 19.83 164.8363940 3268.70569 1.44505 1371.21336 1.82789 1366.14650
2 1996 19.00 172.6149937 3279.68488 1.48548 1374.33362 1.87850 1368.85672
3 1996 19.20 172.6149937 3314.20788 1.48886 1387.31142 1.88222 1381.38352
4 1996 19.45 172.6149937 3357.36163 1.50292 1403.87246 1.89945 1397.47083
5 1996 19.66 172.6149937 3393.61078 1.52086 1417.50909 1.92157 1410.63764
6 1996 19.48 172.6149937 3362.54008 1.53563 1402.99524 1.93967 1395.78267
7 1996 18.53 172.6149937 3198.55583 1.51991 1333.05410 1.91925 1325.79394
8 1996 18.91 172.6149937 3264.14953 1.44414 1358.94728 1.82301 1351.15936
9 1996 19.72 172.6149937 3403.96768 1.47219 1415.68489 1.85789 1407.17768
10 1996 20.04 172.6149937 3459.20447 1.53366 1437.12380 1.93492 1428.07729
11 1996 21.38 172.6149937 3690.50857 1.55688 1531.66202 1.96365 1521.60383
12 1996 21.03 172.6149937 3630.09332 1.65930 1504.92874 2.09226 1494.60225
1 1997 21.85 172.6149937 3771.63761 1.63034 1561.97846 2.05513 1550.82453
2 1997 19.91 191.5328996 3813.42003 1.69214 1577.59000 2.13244 1565.87222
3 1997 19.17 191.5328996 3671.68569 1.70906 1517.24626 2.15313 1505.51992
4 1997 19.85 191.5328996 3801.92806 1.64368 1569.42248 2.07014 1556.85372
5 1997 21.08 191.5328996 4037.51352 1.70021 1664.97112 2.14073 1651.18303
6 1997 22.06 191.5328996 4225.21577 1.80372 1740.57118 2.27043 1725.67537
7 1997 23.67 191.5328996 4533.58373 1.88562 1865.71727 2.37286 1849.24709
8 1997 22.56 191.5328996 4320.98221 2.02119 1776.20363 2.54278 1759.98423
9 1997 23.80 191.5328996 4558.48301 1.92422 1871.90763 2.42004 1854.30092
10 1997 22.93 191.5328996 4391.84939 2.02790 1801.45285 2.54973 1783.96793
11 1997 23.77 191.5328996 4552.73702 1.95157 1865.49432 2.45302 1846.86742
12 1997 24.28 191.5328996 4650.41880 2.02095 1903.49870 2.53950 1883.95359
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 97.78%
GROSS ANNUAL RETURN = 25.52%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1903.50 1822.60
TOTAL RETURN 90.35% 82.26%
AVERAGE ANNUAL RETURN 23.93% 22.15%
WITH DEATH BENEFIT CHARGE
ERV 1883.95 1803.89
TOTAL RETURN 88.40% 80.39%
AVERAGE ANNUAL RETURN 23.51% 21.73%
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1992 13.40 138.5435409 1856.48345 1000.00000 1000.00000
1 1993 13.80 138.5435409 1911.90087 1.08333 1028.76741 1.37503 1028.47571
2 1993 14.11 138.5435409 1954.84936 1.11450 1050.76291 1.41419 1050.16496
3 1993 14.43 139.5083288 2013.10519 1.13833 1080.93802 1.44401 1080.01657
4 1993 14.37 139.5083288 2004.73469 1.17102 1075.27246 1.48506 1074.04080
5 1993 14.63 139.5083288 2041.00685 1.16488 1093.56275 1.47684 1091.99685
6 1993 14.70 140.4771367 2065.01391 1.18469 1105.24094 1.50153 1103.33978
7 1993 14.90 140.4771367 2093.10934 1.19734 1119.08089 1.51713 1116.83407
8 1993 15.47 140.4771367 2173.18130 1.21234 1160.67903 1.53568 1158.02291
9 1993 15.31 141.4025460 2164.87298 1.25740 1154.98421 1.59232 1152.00334
10 1993 15.45 141.4025460 2184.66934 1.25123 1164.29456 1.58404 1160.95362
11 1993 15.18 141.4025460 2146.49065 1.26132 1142.68635 1.59635 1139.06876
12 1993 15.44 142.2348697 2196.10639 1.23791 1167.86142 1.56626 1163.83187
1 1994 16.12 142.2348697 2292.82610 1.26518 1218.03055 1.60031 1213.48840
2 1994 14.94 149.5168411 2233.78161 1.31953 1185.34449 1.66859 1180.57025
3 1994 14.22 150.5156176 2140.33208 1.28412 1134.47187 1.62332 1129.55816
4 1994 14.71 150.5156176 2214.08473 1.22901 1172.33506 1.55318 1166.92787
5 1994 14.85 150.5156176 2235.15692 1.27003 1182.22254 1.60456 1176.42935
6 1994 14.67 151.4211260 2221.34792 1.28074 1173.63792 1.61763 1167.54363
7 1994 15.16 151.4211260 2295.54427 1.27144 1211.56775 1.60541 1204.93593
8 1994 15.94 151.4211260 2413.65275 1.31253 1272.59181 1.65683 1265.27449
9 1994 15.59 152.2841976 2374.11064 1.37864 1250.36471 1.73979 1242.80610
10 1994 15.91 152.2841976 2422.84158 1.35456 1274.67510 1.70890 1266.60701
11 1994 15.39 152.2841976 2343.65380 1.38090 1231.63292 1.74163 1223.46780
12 1994 15.35 153.1776512 2351.27695 1.33427 1234.30475 1.68231 1225.76503
1 1995 15.59 153.1776512 2388.03958 1.33716 1252.26616 1.68547 1243.24462
2 1995 15.39 161.0849025 2479.09665 1.35662 1298.65904 1.70950 1288.94061
3 1995 15.82 162.1174981 2564.69882 1.40688 1342.09431 1.77234 1331.67486
4 1995 16.26 162.1174981 2636.03052 1.45394 1377.96790 1.83110 1366.88149
5 1995 16.75 162.1174981 2715.46809 1.49280 1418.00058 1.87951 1406.19337
6 1995 16.89 163.0836333 2754.48257 1.53617 1436.83753 1.93356 1424.46329
7 1995 17.54 163.0836333 2860.48693 1.55657 1490.57666 1.95868 1477.32409
8 1995 17.76 163.0836333 2896.36533 1.61479 1507.65781 2.03137 1493.82244
9 1995 18.25 163.9738278 2992.52236 1.63330 1556.07756 2.05406 1541.36210
10 1995 18.04 163.9738278 2958.08785 1.68575 1536.48626 2.11942 1521.50646
11 1995 18.82 163.9738278 3085.98744 1.66453 1601.25517 2.09212 1585.20009
12 1995 19.27 164.8363940 3176.39731 1.73469 1646.43230 2.17970 1629.46184
1 1996 19.83 164.8363940 3268.70569 1.78363 1692.49516 2.24056 1674.57460
2 1996 19.00 172.6149937 3279.68488 1.83354 1696.34651 2.30260 1677.89670
3 1996 19.20 172.6149937 3314.20788 1.83771 1712.36508 2.30716 1693.25161
4 1996 19.45 172.6149937 3357.36163 1.85506 1732.80644 2.32828 1712.97088
5 1996 19.66 172.6149937 3393.61078 1.87721 1749.63820 2.35539 1729.11029
6 1996 19.48 172.6149937 3362.54008 1.89544 1731.72369 2.37758 1710.90158
7 1996 18.53 172.6149937 3198.55583 1.87603 1645.39501 2.35255 1625.11184
8 1996 18.91 172.6149937 3264.14953 1.78251 1677.35509 2.23458 1656.20389
9 1996 19.72 172.6149937 3403.96768 1.81713 1747.38658 2.27734 1724.86919
10 1996 20.04 172.6149937 3459.20447 1.89300 1773.84874 2.37175 1750.48720
11 1996 21.38 172.6149937 3690.50857 1.92167 1890.53771 2.40698 1865.12877
12 1996 21.03 172.6149937 3630.09332 2.04808 1857.54070 2.56461 1832.03117
1 1997 21.85 172.6149937 3771.63761 2.01234 1927.95743 2.51910 1900.94648
2 1997 19.91 191.5328996 3813.42003 2.08862 1947.22683 2.61386 1919.39141
3 1997 19.17 191.5328996 3671.68569 2.10950 1872.74427 2.63923 1845.41367
4 1997 19.85 191.5328996 3801.92806 2.02881 1937.14562 2.53751 1908.33685
5 1997 21.08 191.5328996 4037.51352 2.09857 2055.08176 2.62403 2023.96241
6 1997 22.06 191.5328996 4225.21577 2.22634 2148.39528 2.78302 2115.27253
7 1997 23.67 191.5328996 4533.58373 2.32743 2302.86369 2.90857 2266.74241
8 1997 22.56 191.5328996 4320.98221 2.49477 2192.37658 3.11685 2157.32713
9 1997 23.80 191.5328996 4558.48301 2.37507 2310.50448 2.96640 2272.93722
10 1997 22.93 191.5328996 4391.84939 2.50305 2223.54181 3.12536 2186.72550
11 1997 23.77 191.5328996 4552.73702 2.40884 2302.58850 3.00682 2263.82550
12 1997 24.28 191.5328996 4650.41880 2.49447 2349.49748 3.11284 2309.28443
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 150.50%
GROSS ANNUAL RETURN = 20.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2349.50 2289.59
TOTAL RETURN 134.95% 128.96%
AVERAGE ANNUAL RETURN 18.63% 18.02%
WITH DEATH BENEFIT CHARGE
ERV 2309.28 2250.40
TOTAL RETURN 130.93% 125.04%
AVERAGE ANNUAL RETURN 18.22% 17.61%
Return for 10 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1987 9.42 105.1647686 990.65212 1000.00000 1000.00000
1 1988 10.09 105.1647686 1061.11252 1.08333 1070.04193 1.37503 1069.75023
2 1988 10.59 105.1647686 1113.69490 1.15921 1121.90759 1.47094 1121.28971
3 1988 10.27 106.5537373 1094.30688 1.21540 1101.16120 1.54181 1100.22766
4 1988 10.44 106.5537373 1112.42102 1.19292 1118.19587 1.51285 1116.92696
5 1988 10.58 106.5537373 1127.33854 1.21138 1131.97946 1.53581 1130.36909
6 1988 11.04 107.9235741 1191.47626 1.22631 1195.15490 1.55430 1193.12493
7 1988 11.02 107.9235741 1189.31779 1.29475 1191.69501 1.64059 1189.32289
8 1988 10.88 107.9235741 1174.20849 1.29100 1175.26451 1.63536 1172.57816
9 1988 11.01 109.3135742 1203.54245 1.27320 1203.35165 1.61233 1200.25907
10 1988 11.20 109.3135742 1224.31203 1.30363 1222.81431 1.65040 1219.32159
11 1988 11.02 109.3135742 1204.63559 1.32472 1201.83722 1.67661 1198.04874
12 1988 11.01 110.4117014 1215.63283 1.30199 1211.50693 1.64736 1207.33850
1 1989 11.69 110.4117014 1290.71279 1.31247 1285.01960 1.66013 1280.24605
2 1989 11.68 110.4117014 1289.60867 1.39210 1282.52824 1.76038 1277.39050
3 1989 11.66 112.5129621 1311.90114 1.38941 1303.30891 1.75645 1297.71531
4 1989 12.11 112.5129621 1362.53197 1.41192 1352.19622 1.78440 1346.01426
5 1989 12.47 112.5129621 1403.03664 1.46488 1390.92875 1.85081 1384.17708
6 1989 12.35 113.6840338 1403.99782 1.50684 1390.37480 1.90329 1383.22205
7 1989 13.07 113.6840338 1485.85032 1.50624 1469.92685 1.90198 1461.96136
8 1989 13.28 113.6840338 1509.72397 1.59242 1491.95223 2.01025 1483.44093
9 1989 13.00 114.8270287 1492.75137 1.61628 1473.56314 2.03978 1464.72403
10 1989 12.25 114.8270287 1406.63110 1.59636 1386.95352 2.01404 1378.20668
11 1989 12.32 114.8270287 1414.66899 1.50253 1393.37644 1.89508 1384.18706
12 1989 12.29 116.0678861 1426.47432 1.50949 1403.49459 1.90330 1393.83472
1 1990 11.46 116.0678861 1330.13797 1.52045 1307.18972 1.91657 1297.78610
2 1990 11.14 120.1095357 1338.02023 1.41612 1313.51986 1.78450 1303.69215
3 1990 10.96 122.2834639 1340.22676 1.42298 1314.26301 1.79262 1304.04945
4 1990 10.58 122.2834639 1293.75905 1.42378 1267.27172 1.79311 1257.04295
5 1990 11.28 122.2834639 1379.35747 1.37288 1349.74479 1.72848 1338.48366
6 1990 11.04 123.6977744 1365.62343 1.46222 1334.84338 1.84046 1323.31614
7 1990 10.77 123.6977744 1332.22503 1.44608 1300.75167 1.81960 1289.13282
8 1990 9.91 123.6977744 1225.84494 1.40915 1195.47563 1.77260 1184.42111
9 1990 9.02 125.3607228 1130.75372 1.29510 1101.44511 1.62862 1090.91460
10 1990 8.79 125.3607228 1101.92075 1.19323 1072.16625 1.50004 1061.59744
11 1990 9.42 125.3607228 1180.89801 1.16151 1147.84942 1.45973 1136.22490
12 1990 9.51 127.0636375 1208.37519 1.24350 1173.31412 1.56235 1161.10028
1 1991 10.02 127.0636375 1273.17765 1.27109 1234.96524 1.59655 1221.77093
2 1991 10.71 127.0636375 1360.85156 1.33788 1318.66988 1.67998 1304.22488
3 1991 10.70 129.8206787 1389.08126 1.42856 1344.59600 1.79335 1329.48656
4 1991 10.75 129.8206787 1395.57230 1.45665 1349.42251 1.82809 1333.87103
5 1991 11.34 129.8206787 1472.16650 1.46187 1422.02197 1.83412 1405.24472
6 1991 10.76 131.2241455 1411.97181 1.54052 1362.33709 1.93226 1345.85410
7 1991 11.37 131.2241455 1492.01853 1.47587 1438.09409 1.85059 1420.30193
8 1991 11.61 131.2241455 1523.51233 1.55794 1466.89170 1.95296 1448.32895
9 1991 11.41 132.6078799 1513.05591 1.58913 1455.23476 1.99150 1436.39704
10 1991 11.60 132.6078799 1538.25141 1.57650 1477.89091 1.97509 1458.34092
11 1991 11.10 132.6078799 1471.94747 1.60105 1412.58767 2.00527 1393.47613
12 1991 11.85 134.0312203 1588.26996 1.53030 1522.68887 1.91608 1501.68125
1 1992 12.01 134.0312203 1609.71496 1.64958 1541.59881 2.06486 1519.89225
2 1992 12.40 134.0312203 1661.98713 1.67007 1589.98899 2.08990 1567.15772
3 1992 12.13 135.3356604 1641.62156 1.72249 1568.78317 2.15489 1545.79927
4 1992 12.51 135.3356604 1693.04911 1.69952 1616.22938 2.12553 1592.09944
5 1992 12.61 135.3356604 1706.58268 1.75092 1627.39796 2.18919 1602.63687
6 1992 12.40 136.4226938 1691.64140 1.76301 1611.38694 2.20368 1586.40197
7 1992 12.78 136.4226938 1743.48203 1.74567 1659.02249 2.18136 1632.83616
8 1992 12.50 136.4226938 1705.28367 1.79727 1620.87730 2.24520 1594.81676
9 1992 12.53 137.5088618 1722.98604 1.75595 1635.94750 2.19293 1609.17946
10 1992 12.68 137.5088618 1743.61237 1.77228 1653.75960 2.21268 1626.23070
11 1992 13.14 137.5088618 1806.86644 1.79157 1711.96246 2.23612 1682.99033
12 1992 13.40 138.5435409 1856.48345 1.85463 1757.11875 2.31417 1726.89150
1 1993 13.80 138.5435409 1911.90087 1.90355 1807.66651 2.37453 1776.06597
2 1993 14.11 138.5435409 1954.84936 1.95831 1846.31520 2.44215 1813.52095
3 1993 14.43 139.5083288 2013.10519 2.00017 1899.33646 2.49365 1865.07144
4 1993 14.37 139.5083288 2004.73469 2.05761 1889.38140 2.56454 1854.75193
5 1993 14.63 139.5083288 2041.00685 2.04683 1921.51962 2.55035 1885.76007
6 1993 14.70 140.4771367 2065.01391 2.08165 1942.03958 2.59298 1905.34808
7 1993 14.90 140.4771367 2093.10934 2.10388 1966.35801 2.61992 1928.65127
8 1993 15.47 140.4771367 2173.18130 2.13022 2039.45088 2.65196 1999.77993
9 1993 15.31 141.4025460 2164.87298 2.20941 2029.44442 2.74976 1989.38477
10 1993 15.45 141.4025460 2184.66934 2.19856 2045.80380 2.73547 2004.84093
11 1993 15.18 141.4025460 2146.49065 2.21629 2007.83560 2.75672 1967.04815
12 1993 15.44 142.2348697 2196.10639 2.17516 2052.07120 2.70476 2009.81136
1 1994 16.12 142.2348697 2292.82610 2.22308 2140.22432 2.76356 2095.56281
2 1994 14.94 149.5168411 2233.78161 2.31858 2082.79103 2.88147 2038.71674
3 1994 14.22 150.5156176 2140.33208 2.25636 1993.40179 2.80330 1950.62438
4 1994 14.71 150.5156176 2214.08473 2.15952 2059.93192 2.68217 2015.15782
5 1994 14.85 150.5156176 2235.15692 2.23159 2077.30539 2.77091 2031.56584
6 1994 14.67 151.4211260 2221.34792 2.25041 2062.22119 2.79347 2016.22117
7 1994 15.16 151.4211260 2295.54427 2.23407 2128.86840 2.77237 2080.79361
8 1994 15.94 151.4211260 2413.65275 2.30627 2236.09494 2.86116 2184.99175
9 1994 15.59 152.2841976 2374.11064 2.42244 2197.03927 3.00444 2146.19129
10 1994 15.91 152.2841976 2422.84158 2.38013 2239.75552 2.95108 2187.29288
11 1994 15.39 152.2841976 2343.65380 2.42640 2164.12529 3.00760 2112.79614
12 1994 15.35 153.1776512 2351.27695 2.34447 2168.82002 2.90517 2116.76321
1 1995 15.59 153.1776512 2388.03958 2.34955 2200.38035 2.91062 2146.94856
2 1995 15.39 161.0849025 2479.09665 2.38375 2281.89814 2.95213 2225.86059
3 1995 15.82 162.1174981 2564.69882 2.47206 2358.21907 3.06063 2299.65799
4 1995 16.26 162.1174981 2636.03052 2.55474 2421.25324 3.16211 2360.45603
5 1995 16.75 162.1174981 2715.46809 2.62302 2491.59541 3.24571 2428.34338
6 1995 16.89 163.0836333 2754.48257 2.69923 2524.69416 3.33905 2459.89354
7 1995 17.54 163.0836333 2860.48693 2.73509 2619.12019 3.38244 2551.17841
8 1995 17.76 163.0836333 2896.36533 2.83738 2649.13381 3.50796 2579.66927
9 1995 18.25 163.9738278 2992.52236 2.86989 2734.21305 3.54713 2661.76511
10 1995 18.04 163.9738278 2958.08785 2.96206 2699.78881 3.66002 2627.47657
11 1995 18.82 163.9738278 3085.98744 2.92477 2813.59548 3.61287 2737.46856
12 1995 19.27 164.8363940 3176.39731 3.04806 2892.97705 3.76411 2813.90380
1 1996 19.83 164.8363940 3268.70569 3.13406 2973.91498 3.86921 2891.80865
2 1996 19.00 172.6149937 3279.68488 3.22174 2980.68226 3.97633 2897.54555
3 1996 19.20 172.6149937 3314.20788 3.22907 3008.82879 3.98422 2924.06181
4 1996 19.45 172.6149937 3357.36163 3.25956 3044.74669 4.02068 2958.11485
5 1996 19.66 172.6149937 3393.61078 3.29848 3074.32208 4.06751 2985.98586
6 1996 19.48 172.6149937 3362.54008 3.33052 3042.84416 4.10583 2954.54140
7 1996 18.53 172.6149937 3198.55583 3.29641 2891.15442 4.06259 2806.39183
8 1996 18.91 172.6149937 3264.14953 3.13208 2947.31207 3.85888 2860.08443
9 1996 19.72 172.6149937 3403.96768 3.19292 3070.36572 3.93271 2978.66194
10 1996 20.04 172.6149937 3459.20447 3.32623 3116.86287 4.09576 3022.90147
11 1996 21.38 172.6149937 3690.50857 3.37660 3321.89926 4.15659 3220.87501
12 1996 21.03 172.6149937 3630.09332 3.59872 3263.91958 4.42881 3163.71906
1 1997 21.85 172.6149937 3771.63761 3.53591 3387.65015 4.35022 3282.72831
2 1997 19.91 191.5328996 3813.42003 3.66995 3421.50878 4.51386 3314.58071
3 1997 19.17 191.5328996 3671.68569 3.70663 3290.63406 4.55766 3186.82919
4 1997 19.85 191.5328996 3801.92806 3.56485 3403.79488 4.38200 3295.49069
5 1997 21.08 191.5328996 4037.51352 3.68744 3611.02269 4.53141 3495.16349
6 1997 22.06 191.5328996 4225.21577 3.91194 3774.98562 4.80597 3652.84615
7 1997 23.67 191.5328996 4533.58373 4.08957 4046.40497 5.02279 3914.41821
8 1997 22.56 191.5328996 4320.98221 4.38361 3852.26600 5.38246 3725.46988
9 1997 23.80 191.5328996 4558.48301 4.17329 4059.83074 5.12265 3925.11597
10 1997 22.93 191.5328996 4391.84939 4.39815 3907.02701 5.39717 3776.23767
11 1997 23.77 191.5328996 4552.73702 4.23261 4045.92142 5.19245 3909.38101
12 1997 24.28 191.5328996 4650.41880 4.38308 4128.34608 5.37553 3987.88366
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 369.43%
GROSS ANNUAL RETURN = 16.72%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4128.35 4128.35
TOTAL RETURN 312.83% 312.83%
AVERAGE ANNUAL RETURN 15.23% 15.23%
WITH DEATH BENEFIT CHARGE
ERV 3987.88 3987.88
TOTAL RETURN 298.79% 298.79%
AVERAGE ANNUAL RETURN 14.83% 14.83%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
9 1986 10.00 100.0000000 1000.00000 1000.00000 1000.00000
10 1986 10.11 100.0000000 1011.00000 1.08333 1009.91667 1.37503 1009.62497
11 1986 10.33 100.0000000 1033.00000 1.09408 1030.79902 1.38827 1030.20678
12 1986 10.02 100.0000000 1002.00000 1.11670 998.74837 1.41657 997.87403
1 1987 11.17 100.0000000 1117.00000 1.08198 1112.29320 1.37211 1111.02838
2 1987 11.43 100.0000000 1143.00000 1.20498 1136.97866 1.52770 1135.36168
3 1987 11.65 100.6024096 1172.01807 1.23173 1164.61213 1.56116 1162.62468
4 1987 11.36 100.6024096 1142.84337 1.26166 1134.36013 1.59865 1132.08516
5 1987 11.43 100.6024096 1149.88554 1.22889 1140.12113 1.55665 1137.50438
6 1987 11.55 101.6324684 1173.85501 1.23513 1162.65193 1.56411 1159.65165
7 1987 11.99 101.6324684 1218.57330 1.25954 1205.68389 1.59456 1202.23430
8 1987 12.32 101.6324684 1252.11201 1.30616 1237.56169 1.65311 1233.67021
9 1987 11.94 102.6660190 1225.83227 1.34069 1210.24664 1.69634 1206.08119
10 1987 9.61 102.6660190 986.62044 1.31110 972.76514 1.65840 969.06523
11 1987 9.18 102.6660190 942.47405 1.05383 928.18487 1.33250 924.37186
12 1987 9.42 105.1647686 990.65212 1.00553 974.62696 1.27104 970.35352
1 1988 10.09 105.1647686 1061.11252 1.05585 1042.89172 1.33427 1038.03590
2 1988 10.59 105.1647686 1113.69490 1.12980 1093.44139 1.42733 1088.04741
3 1988 10.27 106.5537373 1094.30688 1.18456 1073.22140 1.49610 1067.60979
4 1988 10.44 106.5537373 1112.42102 1.16266 1089.82385 1.46800 1083.81400
5 1988 10.58 106.5537373 1127.33854 1.18064 1103.25770 1.49028 1096.85763
6 1988 11.04 107.9235741 1191.47626 1.19520 1164.83019 1.50822 1157.75298
7 1988 11.02 107.9235741 1189.31779 1.26190 1161.45809 1.59195 1154.06365
8 1988 10.88 107.9235741 1174.20849 1.25825 1145.44448 1.58688 1137.81535
9 1988 11.01 109.3135742 1203.54245 1.24090 1172.81897 1.56453 1164.67561
10 1988 11.20 109.3135742 1224.31203 1.27055 1191.78780 1.60147 1183.17299
11 1988 11.02 109.3135742 1204.63559 1.29110 1171.34296 1.62690 1162.53081
12 1988 11.01 110.4117014 1215.63283 1.26895 1180.76732 1.59852 1171.54516
1 1989 11.69 110.4117014 1290.71279 1.27916 1252.41475 1.61091 1242.29126
2 1989 11.68 110.4117014 1289.60867 1.35678 1249.98661 1.70819 1239.52037
3 1989 11.66 112.5129621 1311.90114 1.35415 1270.24001 1.70438 1259.24262
4 1989 12.11 112.5129621 1362.53197 1.37609 1317.88690 1.73150 1306.10967
5 1989 12.47 112.5129621 1403.03664 1.42771 1355.63667 1.79594 1343.14110
6 1989 12.35 113.6840338 1403.99782 1.46861 1355.09677 1.84686 1342.21439
7 1989 13.07 113.6840338 1485.85032 1.46802 1432.63034 1.84559 1418.61935
8 1989 13.28 113.6840338 1509.72397 1.55202 1454.09687 1.95065 1439.46213
9 1989 13.00 114.8270287 1492.75137 1.57527 1436.17437 1.97931 1421.30012
10 1989 12.25 114.8270287 1406.63110 1.55586 1351.76230 1.95433 1337.34770
11 1989 12.32 114.8270287 1414.66899 1.46441 1358.02225 1.83890 1343.15079
12 1989 12.29 116.0678861 1426.47432 1.47119 1367.88367 1.84688 1352.51242
1 1990 11.46 116.0678861 1330.13797 1.48187 1274.02234 1.85975 1259.31131
2 1990 11.14 120.1095357 1338.02023 1.38019 1280.19187 1.73159 1265.04226
3 1990 10.96 122.2834639 1340.22676 1.38687 1280.91617 1.73948 1265.38898
4 1990 10.58 122.2834639 1293.75905 1.38766 1235.11718 1.73995 1219.77605
5 1990 11.28 122.2834639 1379.35747 1.33804 1315.49767 1.67723 1298.80233
6 1990 11.04 123.6977744 1365.62343 1.42512 1300.97434 1.78590 1284.08447
7 1990 10.77 123.6977744 1332.22503 1.40939 1267.74765 1.76566 1250.91457
8 1990 9.91 123.6977744 1225.84494 1.37339 1165.14278 1.72005 1149.30719
9 1990 9.02 125.3607228 1130.75372 1.26224 1073.49811 1.58034 1058.57282
10 1990 8.79 125.3607228 1101.92075 1.16296 1044.96214 1.45557 1030.12481
11 1990 9.42 125.3607228 1180.89801 1.13204 1118.72499 1.41646 1102.53983
12 1990 9.51 127.0636375 1208.37519 1.21195 1143.54358 1.51603 1126.67774
1 1991 10.02 127.0636375 1273.17765 1.23884 1203.63042 1.54922 1185.54972
2 1991 10.71 127.0636375 1360.85156 1.30393 1285.21122 1.63017 1265.55921
3 1991 10.70 129.8206787 1389.08126 1.39231 1310.47952 1.74019 1290.07197
4 1991 10.75 129.8206787 1395.57230 1.41969 1315.18357 1.77389 1294.32645
5 1991 11.34 129.8206787 1472.16650 1.42478 1385.94095 1.77974 1363.58416
6 1991 10.76 131.2241455 1411.97181 1.50144 1327.77046 1.87497 1305.95426
7 1991 11.37 131.2241455 1492.01853 1.43842 1401.60527 1.79573 1378.19497
8 1991 11.61 131.2241455 1523.51233 1.51841 1429.67220 1.89506 1405.39110
9 1991 11.41 132.6078799 1513.05591 1.54881 1418.31103 1.93246 1393.81292
10 1991 11.60 132.6078799 1538.25141 1.53650 1440.39233 1.91654 1415.10624
11 1991 11.10 132.6078799 1471.94747 1.56042 1376.74603 1.94582 1352.16446
12 1991 11.85 134.0312203 1588.26996 1.49147 1484.05363 1.85927 1457.16169
1 1992 12.01 134.0312203 1609.71496 1.60772 1502.48376 2.00365 1474.83280
2 1992 12.40 134.0312203 1661.98713 1.62769 1549.64614 2.02794 1520.69701
3 1992 12.13 135.3356604 1641.62156 1.67878 1528.97838 2.09101 1499.97176
4 1992 12.51 135.3356604 1693.04911 1.65639 1575.22073 2.06251 1544.89930
5 1992 12.61 135.3356604 1706.58268 1.70649 1586.10594 2.12429 1555.12432
6 1992 12.40 136.4226938 1691.64140 1.71828 1570.50116 2.13835 1539.37073
7 1992 12.78 136.4226938 1743.48203 1.70138 1616.92805 2.11669 1584.42831
8 1992 12.50 136.4226938 1705.28367 1.75167 1579.75072 2.17864 1547.53606
9 1992 12.53 137.5088618 1722.98604 1.71140 1594.43855 2.12791 1561.47295
10 1992 12.68 137.5088618 1743.61237 1.72731 1611.79869 2.14708 1578.01869
11 1992 13.14 137.5088618 1806.86644 1.74612 1668.52477 2.16983 1633.09559
12 1992 13.40 138.5435409 1856.48345 1.80757 1712.53531 2.24556 1675.69525
1 1993 13.80 138.5435409 1911.90087 1.85525 1761.80052 2.30414 1723.41186
2 1993 14.11 138.5435409 1954.84936 1.90862 1799.46858 2.36975 1759.75644
3 1993 14.43 139.5083288 2013.10519 1.94942 1851.14453 2.41972 1809.77864
4 1993 14.37 139.5083288 2004.73469 2.00541 1841.44205 2.48851 1799.76506
5 1993 14.63 139.5083288 2041.00685 1.99490 1872.76483 2.47474 1829.85393
6 1993 14.70 140.4771367 2065.01391 2.02883 1892.76414 2.51611 1848.86122
7 1993 14.90 140.4771367 2093.10934 2.05049 1916.46553 2.54225 1871.47355
8 1993 15.47 140.4771367 2173.18130 2.07617 1987.70382 2.57334 1940.49349
9 1993 15.31 141.4025460 2164.87298 2.15335 1977.95125 2.66824 1930.40652
10 1993 15.45 141.4025460 2184.66934 2.14278 1993.89555 2.65437 1945.40445
11 1993 15.18 141.4025460 2146.49065 2.16005 1956.89072 2.67500 1908.73210
12 1993 15.44 142.2348697 2196.10639 2.11996 2000.00392 2.62457 1950.22752
1 1994 16.12 142.2348697 2292.82610 2.16667 2085.92033 2.68163 2033.43675
2 1994 14.94 149.5168411 2233.78161 2.25975 2029.94429 2.79604 1978.27596
3 1994 14.22 150.5156176 2140.33208 2.19911 1942.82313 2.72020 1892.79524
4 1994 14.71 150.5156176 2214.08473 2.10472 2007.66519 2.60266 1955.41548
5 1994 14.85 150.5156176 2235.15692 2.17497 2024.59784 2.68876 1971.33707
6 1994 14.67 151.4211260 2221.34792 2.19331 2009.89638 2.71065 1956.44731
7 1994 15.16 151.4211260 2295.54427 2.17739 2074.85255 2.69018 2019.10541
8 1994 15.94 151.4211260 2413.65275 2.24776 2179.35842 2.77634 2120.21444
9 1994 15.59 152.2841976 2374.11064 2.36097 2141.29371 2.91537 2082.56427
10 1994 15.91 152.2841976 2422.84158 2.31973 2182.92612 2.86360 2122.44735
11 1994 15.39 152.2841976 2343.65380 2.36484 2109.21486 2.91844 2050.15917
12 1994 15.35 153.1776512 2351.27695 2.28498 2113.79047 2.81904 2054.00863
1 1995 15.59 153.1776512 2388.03958 2.28994 2144.55002 2.82433 2083.29910
2 1995 15.39 161.0849025 2479.09665 2.32326 2223.99946 2.86461 2159.87166
3 1995 15.82 162.1174981 2564.69882 2.40933 2298.38389 2.96990 2231.48123
4 1995 16.26 162.1174981 2636.03052 2.48992 2359.81869 3.06836 2290.47682
5 1995 16.75 162.1174981 2715.46809 2.55647 2428.37607 3.14948 2356.35155
6 1995 16.89 163.0836333 2754.48257 2.63074 2460.63501 3.24006 2386.96636
7 1995 17.54 163.0836333 2860.48693 2.66569 2552.66516 3.28216 2475.54495
8 1995 17.76 163.0836333 2896.36533 2.76539 2581.91724 3.40396 2503.19116
9 1995 18.25 163.9738278 2992.52236 2.79708 2664.83776 3.44197 2582.85315
10 1995 18.04 163.9738278 2958.08785 2.88691 2631.28697 3.55151 2549.58114
11 1995 18.82 163.9738278 3085.98744 2.85056 2742.20602 3.50576 2656.31226
12 1995 19.27 164.8363940 3176.39731 2.97072 2819.57344 3.65252 2730.48146
1 1996 19.83 164.8363940 3268.70569 3.05454 2898.45773 3.75450 2806.07670
2 1996 19.00 172.6149937 3279.68488 3.14000 2905.05330 3.85845 2811.64353
3 1996 19.20 172.6149937 3314.20788 3.14714 2932.48567 3.86610 2837.37367
4 1996 19.45 172.6149937 3357.36163 3.17686 2967.49221 3.90148 2870.41716
5 1996 19.66 172.6149937 3393.61078 3.21478 2996.31719 3.94692 2897.46189
6 1996 19.48 172.6149937 3362.54008 3.24601 2965.63796 3.98411 2866.94965
7 1996 18.53 172.6149937 3198.55583 3.21277 2817.79705 3.94215 2723.19219
8 1996 18.91 172.6149937 3264.14953 3.05261 2872.52981 3.74448 2775.29299
9 1996 19.72 172.6149937 3403.96768 3.11191 2992.46122 3.81612 2890.35510
10 1996 20.04 172.6149937 3459.20447 3.24183 3037.77860 3.97433 2933.28308
11 1996 21.38 172.6149937 3690.50857 3.29093 3237.61259 4.03336 3125.38741
12 1996 21.03 172.6149937 3630.09332 3.50741 3181.10403 4.29751 3069.92593
1 1997 21.85 172.6149937 3771.63761 3.44620 3301.69518 4.22125 3185.40697
2 1997 19.91 191.5328996 3813.42003 3.57684 3334.69471 4.38004 3216.31505
3 1997 19.17 191.5328996 3671.68569 3.61259 3207.14068 4.42254 3092.35092
4 1997 19.85 191.5328996 3801.92806 3.47440 3317.43027 4.25209 3197.79099
5 1997 21.08 191.5328996 4037.51352 3.59388 3519.40008 4.39707 3391.54419
6 1997 22.06 191.5328996 4225.21577 3.81268 3679.20277 4.66349 3544.55212
7 1997 23.67 191.5328996 4533.58373 3.98580 3943.73539 4.87388 3798.36949
8 1997 22.56 191.5328996 4320.98221 4.27238 3754.52231 5.22288 3615.02281
9 1997 23.80 191.5328996 4558.48301 4.06740 3956.82050 4.97078 3808.75010
10 1997 22.93 191.5328996 4391.84939 4.28656 3807.89387 5.23716 3664.28552
11 1997 23.77 191.5328996 4552.73702 4.12522 3943.26411 5.03851 3793.48162
12 1997 24.28 191.5328996 4650.41880 4.27187 4023.59740 5.21616 3869.65695
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 365.04%
GROSS ANNUAL RETURN = 14.67%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4023.60 4023.60
TOTAL RETURN 302.36% 302.36%
AVERAGE ANNUAL RETURN 13.20% 13.20%
WITH DEATH BENEFIT CHARGE
ERV 3869.66 3869.66
TOTAL RETURN 286.97% 286.97%
AVERAGE ANNUAL RETURN 12.81% 12.81%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 16.89 163.0836333 2754.48257 1000.00000 1000.00000
7 1995 17.54 163.0836333 2860.48693 1.08333 1037.40098 1.37503 1037.10928
8 1995 17.76 163.0836333 2896.36533 1.12385 1049.28900 1.42606 1048.69143
9 1995 18.25 163.9738278 2992.52236 1.13673 1082.98783 1.44199 1082.06517
10 1995 18.04 163.9738278 2958.08785 1.17324 1069.35281 1.48788 1068.12613
11 1995 18.82 163.9738278 3085.98744 1.15847 1114.43022 1.46871 1112.84026
12 1995 19.27 164.8363940 3176.39731 1.20730 1145.87228 1.53019 1143.91284
1 1996 19.83 164.8363940 3268.70569 1.24136 1177.93079 1.57292 1175.58285
2 1996 19.00 172.6149937 3279.68488 1.27609 1180.61122 1.61647 1177.91502
3 1996 19.20 172.6149937 3314.20788 1.27900 1191.75971 1.61967 1188.69445
4 1996 19.45 172.6149937 3357.36163 1.29107 1205.98634 1.63449 1202.53775
5 1996 19.66 172.6149937 3393.61078 1.30649 1217.70079 1.65353 1213.86792
6 1996 19.48 172.6149937 3362.54008 1.31918 1205.23278 1.66911 1201.08507
7 1996 18.53 172.6149937 3198.55583 1.30567 1145.15036 1.65153 1140.85906
8 1996 18.91 172.6149937 3264.14953 1.24058 1167.39370 1.56872 1162.68626
9 1996 19.72 172.6149937 3403.96768 1.26468 1216.13373 1.59873 1210.89059
10 1996 20.04 172.6149937 3459.20447 1.31748 1234.55067 1.66501 1228.87492
11 1996 21.38 172.6149937 3690.50857 1.33743 1315.76304 1.68974 1309.35545
12 1996 21.03 172.6149937 3630.09332 1.42541 1292.79801 1.80041 1286.12032
1 1997 21.85 172.6149937 3771.63761 1.40053 1341.80615 1.76846 1334.50016
2 1997 19.91 191.5328996 3813.42003 1.45362 1355.21713 1.83498 1347.44884
3 1997 19.17 191.5328996 3671.68569 1.46815 1303.37928 1.85279 1295.51508
4 1997 19.85 191.5328996 3801.92806 1.41199 1348.20088 1.78138 1339.68834
5 1997 21.08 191.5328996 4037.51352 1.46055 1430.28124 1.84212 1420.85966
6 1997 22.06 191.5328996 4225.21577 1.54947 1495.22491 1.95373 1484.96107
7 1997 23.67 191.5328996 4533.58373 1.61983 1602.73075 2.04187 1591.29578
8 1997 22.56 191.5328996 4320.98221 1.73629 1525.83471 2.18808 1514.48419
9 1997 23.80 191.5328996 4558.48301 1.65299 1608.04853 2.08247 1595.64465
10 1997 22.93 191.5328996 4391.84939 1.74205 1547.52487 2.19406 1535.12240
11 1997 23.77 191.5328996 4552.73702 1.67649 1602.53922 2.11084 1589.24805
12 1997 24.28 191.5328996 4650.41880 1.73608 1635.18660 2.18527 1621.16108
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.83%
GROSS ANNUAL RETURN = 22.47%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1635.19 1565.69
TOTAL RETURN 63.52% 56.57%
AVERAGE ANNUAL RETURN 20.97% 18.95%
WITH DEATH BENEFIT CHARGE
ERV 1621.16 1552.26
TOTAL RETURN 62.12% 55.23%
AVERAGE ANNUAL RETURN 20.56% 18.55%
Fidelity Index 500
12/1997
Assume ($10000 @ $10.00 on 8/27/1992)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/92 0.5500000000 52.28 1.052 101.052028
2/93 0.1500000000 54.16 0.280 101.331898
12/93 1.8200000000 55.63 3.315 104.647089
2/94 0.1000000000 56.17 0.186 104.833393
2/95 1.0800000000 57.65 1.964 106.797315
2/96 3.2500000000 75.06 4.624 111.421499
2/97 3.1200000000 91.92 3.782 115.203430
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 89.13 111.4214989 9930.99819 1000.00000 1000.00000
1 1997 94.57 111.4214989 10537.13115 1.08333 1059.95111 1.37503 1059.65941
2 1997 92.15 115.2034296 10615.99604 1.14828 1066.73601 1.45707 1066.13334
3 1997 88.32 115.2034296 10174.76690 1.15563 1021.24398 1.46597 1020.35602
4 1997 93.57 115.2034296 10779.58491 1.10635 1080.84337 1.40302 1079.60595
5 1997 99.26 115.2034296 11435.09243 1.17091 1145.39864 1.48449 1143.77239
6 1997 103.62 115.2034296 11937.37938 1.24085 1194.46948 1.57273 1192.43992
7 1997 111.86 115.2034296 12886.65564 1.29401 1288.16127 1.63964 1285.62468
8 1997 105.60 115.2034296 12165.48217 1.39551 1214.67664 1.76778 1211.90974
9 1997 111.31 115.2034296 12823.29375 1.31590 1279.04070 1.66642 1275.77367
10 1997 107.63 115.2034296 12399.34513 1.38563 1235.36893 1.75423 1231.84131
11 1997 112.50 115.2034296 12960.38583 1.33832 1289.92810 1.69382 1285.88536
12 1997 114.39 115.2034296 13178.12032 1.39742 1310.20147 1.76814 1305.72010
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 32.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1310.20 1232.24
TOTAL RETURN 31.02% 23.22%
WITH DEATH BENEFIT CHARGE
ERV 1305.72 1228.03
TOTAL RETURN 30.57% 22.80%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 89.13 111.4214989 9930.99819 1000.00000 1000.00000
1 1997 94.57 111.4214989 10537.13115 1.08333 1059.95111 1.37503 1059.65941
2 1997 92.15 115.2034296 10615.99604 1.14828 1066.73601 1.45707 1066.13334
3 1997 88.32 115.2034296 10174.76690 1.15563 1021.24398 1.46597 1020.35602
4 1997 93.57 115.2034296 10779.58491 1.10635 1080.84337 1.40302 1079.60595
5 1997 99.26 115.2034296 11435.09243 1.17091 1145.39864 1.48449 1143.77239
6 1997 103.62 115.2034296 11937.37938 1.24085 1194.46948 1.57273 1192.43992
7 1997 111.86 115.2034296 12886.65564 1.29401 1288.16127 1.63964 1285.62468
8 1997 105.60 115.2034296 12165.48217 1.39551 1214.67664 1.76778 1211.90974
9 1997 111.31 115.2034296 12823.29375 1.31590 1279.04070 1.66642 1275.77367
10 1997 107.63 115.2034296 12399.34513 1.38563 1235.36893 1.75423 1231.84131
11 1997 112.50 115.2034296 12960.38583 1.33832 1289.92810 1.69382 1285.88536
12 1997 114.39 115.2034296 13178.12032 1.39742 1310.20147 1.76814 1305.72010
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 32.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1310.20 1232.24
TOTAL RETURN 31.02% 23.22%
WITH DEATH BENEFIT CHARGE
ERV 1305.72 1228.03
TOTAL RETURN 30.57% 22.80%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 56.22 104.8333932 5893.73337 1000.00000 1000.00000
1 1995 57.71 104.8333932 6049.93512 1.08333 1025.41969 1.37503 1025.12799
2 1995 58.82 106.7973146 6281.81804 1.11087 1063.61128 1.40959 1063.00968
3 1995 60.54 106.7973146 6465.50942 1.15225 1093.56089 1.46167 1092.63228
4 1995 62.32 106.7973146 6655.60864 1.18469 1124.52913 1.50241 1123.25550
5 1995 64.77 106.7973146 6917.26207 1.21824 1167.51975 1.54451 1165.86978
6 1995 66.24 106.7973146 7074.25412 1.26481 1192.75261 1.60311 1190.72689
7 1995 68.45 106.7973146 7310.27618 1.29215 1231.25489 1.63729 1228.81645
8 1995 68.62 106.7973146 7328.43173 1.33386 1232.97894 1.68966 1230.17863
9 1995 71.49 106.7973146 7634.94002 1.33573 1283.21199 1.69154 1279.93875
10 1995 71.25 106.7973146 7609.30866 1.39015 1277.51395 1.75996 1273.88189
11 1995 74.35 106.7973146 7940.38034 1.38397 1331.71304 1.75163 1327.55530
12 1995 75.71 106.7973146 8085.62469 1.44269 1354.62987 1.82543 1350.01332
1 1996 78.30 106.7973146 8362.22973 1.46752 1399.50354 1.85631 1394.34027
2 1996 75.75 111.4214989 8440.17854 1.51613 1411.03293 1.91726 1405.42040
3 1996 76.53 111.4214989 8527.08731 1.52862 1424.03376 1.93250 1417.95955
4 1996 77.60 111.4214989 8646.30831 1.54270 1442.40110 1.94974 1435.83493
5 1996 79.58 111.4214989 8866.92288 1.56260 1477.64204 1.97432 1470.49661
6 1996 79.92 111.4214989 8904.80619 1.60078 1482.35438 2.02198 1474.75722
7 1996 76.38 111.4214989 8510.37408 1.60588 1415.08866 2.02784 1407.40605
8 1996 77.95 111.4214989 8685.30584 1.53301 1442.64296 1.93523 1434.40022
9 1996 82.31 111.4214989 9171.10357 1.56286 1521.77186 1.97235 1512.65859
10 1996 84.58 111.4214989 9424.03037 1.64859 1562.09171 2.07996 1552.29574
11 1996 90.92 111.4214989 10130.44268 1.69227 1677.49169 2.13446 1666.51923
12 1996 89.13 111.4214989 9930.99819 1.81728 1642.64856 2.29152 1631.41789
1 1997 94.57 111.4214989 10537.13115 1.77954 1741.12716 2.24325 1728.74732
2 1997 92.15 115.2034296 10615.99604 1.88622 1752.27236 2.37709 1739.30900
3 1997 88.32 115.2034296 10174.76690 1.89830 1677.54495 2.39161 1664.62706
4 1997 93.57 115.2034296 10779.58491 1.81734 1775.44581 2.28892 1761.28846
5 1997 99.26 115.2034296 11435.09243 1.92340 1881.48742 2.42183 1865.97074
6 1997 103.62 115.2034296 11937.37938 2.03828 1962.09357 2.56577 1945.36782
7 1997 111.86 115.2034296 12886.65564 2.12560 2115.99625 2.67495 2097.39110
8 1997 105.60 115.2034296 12165.48217 2.29233 1995.28682 2.88398 1977.13122
9 1997 111.31 115.2034296 12823.29375 2.16156 2101.01435 2.71862 2081.31998
10 1997 107.63 115.2034296 12399.34513 2.27610 2029.27699 2.86188 2009.64795
11 1997 112.50 115.2034296 12960.38583 2.19838 2118.89854 2.76333 2097.81638
12 1997 114.39 115.2034296 13178.12032 2.29547 2152.20056 2.88457 2130.17512
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 123.60%
GROSS ANNUAL RETURN = 30.76%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2152.20 2060.73
TOTAL RETURN 115.22% 106.07%
AVERAGE ANNUAL RETURN 29.11% 27.25%
WITH DEATH BENEFIT CHARGE
ERV 2130.18 2039.64
TOTAL RETURN 113.02% 103.96%
AVERAGE ANNUAL RETURN 28.67% 26.82%
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1992 52.60 101.0520275 5315.33665 1000.00000 1000.00000
1 1993 52.98 101.0520275 5353.73642 1.08333 1006.14100 1.37503 1005.84930
2 1993 53.57 101.3318984 5428.34980 1.08999 1019.07329 1.38308 1018.48444
3 1993 54.75 101.3318984 5547.92144 1.10400 1040.41668 1.40045 1039.51840
4 1993 53.40 101.3318984 5411.12337 1.12712 1013.63545 1.42937 1012.45707
5 1993 54.79 101.3318984 5551.97471 1.09811 1038.92224 1.39216 1037.41913
6 1993 54.93 101.3318984 5566.16118 1.12550 1040.45141 1.42649 1038.64347
7 1993 54.68 101.3318984 5540.82820 1.12716 1034.58890 1.42817 1032.48817
8 1993 56.75 101.3318984 5750.58523 1.12080 1072.63414 1.41971 1070.15498
9 1993 56.29 101.3318984 5703.97256 1.16202 1062.77764 1.47150 1060.00910
10 1993 57.44 101.3318984 5820.50424 1.15134 1083.33875 1.45755 1080.20745
11 1993 56.88 101.3318984 5763.75838 1.17362 1071.60334 1.48532 1068.19086
12 1993 55.74 104.6470890 5833.02874 1.16090 1083.32124 1.46880 1079.55986
1 1994 57.62 104.6470890 6029.76527 1.17360 1118.68593 1.48443 1114.48684
2 1994 55.96 104.8333932 5866.47669 1.21191 1087.17953 1.53246 1082.77362
3 1994 53.53 104.8333932 5611.73154 1.17778 1038.79221 1.48885 1034.26654
4 1994 54.17 104.8333932 5678.82491 1.12536 1050.08656 1.42215 1045.20999
5 1994 55.01 104.8333932 5766.88496 1.13759 1065.23238 1.43720 1059.98059
6 1994 53.67 104.8333932 5626.40822 1.15400 1038.13017 1.45751 1032.70279
7 1994 55.44 104.8333932 5811.96332 1.12464 1071.24235 1.42000 1065.34063
8 1994 57.65 104.8333932 6043.64512 1.16051 1112.78468 1.46488 1106.34333
9 1994 56.25 104.8333932 5896.87837 1.20552 1084.55577 1.52126 1077.95510
10 1994 57.50 104.8333932 6027.92011 1.17494 1107.48207 1.48222 1100.42744
11 1994 55.41 104.8333932 5808.81832 1.19977 1066.02774 1.51312 1058.91617
12 1994 56.22 104.8333932 5893.73337 1.15486 1080.45639 1.45604 1072.93968
1 1995 57.71 104.8333932 6049.93512 1.17049 1107.92125 1.47533 1099.90050
2 1995 58.82 106.7973146 6281.81804 1.20025 1149.18560 1.51240 1140.54526
3 1995 60.54 106.7973146 6465.50942 1.24495 1181.54485 1.56829 1172.32852
4 1995 62.32 106.7973146 6655.60864 1.28001 1215.00468 1.61199 1205.18539
5 1995 64.77 106.7973146 6917.26207 1.31626 1261.45417 1.65717 1250.90794
6 1995 66.24 106.7973146 7074.25412 1.36658 1288.71717 1.72004 1277.57812
7 1995 68.45 106.7973146 7310.27618 1.39611 1330.31721 1.75671 1318.44592
8 1995 68.62 106.7973146 7328.43173 1.44118 1332.17996 1.81291 1319.90746
9 1995 71.49 106.7973146 7634.94002 1.44319 1386.45459 1.81492 1373.29707
10 1995 71.25 106.7973146 7609.30866 1.50199 1380.29811 1.88833 1366.79843
11 1995 74.35 106.7973146 7940.38034 1.49532 1438.85786 1.87939 1424.38675
12 1995 75.71 106.7973146 8085.62469 1.55876 1463.61849 1.95858 1448.48286
1 1996 78.30 106.7973146 8362.22973 1.58559 1512.10253 1.99171 1496.04300
2 1996 75.75 111.4214989 8440.17854 1.63811 1524.55954 2.05711 1507.93131
3 1996 76.53 111.4214989 8527.08731 1.65161 1538.60637 2.07346 1521.38506
4 1996 77.60 111.4214989 8646.30831 1.66682 1558.45148 2.09196 1540.56427
5 1996 79.58 111.4214989 8866.92288 1.68832 1596.52777 2.11833 1577.75415
6 1996 79.92 111.4214989 8904.80619 1.72957 1601.61926 2.16946 1582.32553
7 1996 76.38 111.4214989 8510.37408 1.73509 1528.94157 2.17575 1510.06179
8 1996 77.95 111.4214989 8685.30584 1.65635 1558.71280 2.07639 1539.02491
9 1996 82.31 111.4214989 9171.10357 1.68861 1644.20813 2.11621 1622.99142
10 1996 84.58 111.4214989 9424.03037 1.78123 1687.77197 2.23167 1665.51969
11 1996 90.92 111.4214989 10130.44268 1.82842 1812.45661 2.29015 1788.07461
12 1996 89.13 111.4214989 9930.99819 1.96349 1774.81012 2.45866 1750.41298
1 1997 94.57 111.4214989 10537.13115 1.92271 1881.21196 2.40688 1854.84159
2 1997 92.15 115.2034296 10615.99604 2.03798 1893.25386 2.55047 1866.17363
3 1997 88.32 115.2034296 10174.76690 2.05102 1812.51415 2.56605 1786.04442
4 1997 93.57 115.2034296 10779.58491 1.96356 1918.29176 2.45587 1889.75627
5 1997 99.26 115.2034296 11435.09243 2.07815 2032.86510 2.59848 2002.07404
6 1997 103.62 115.2034296 11937.37938 2.20227 2119.95652 2.75292 2087.26232
7 1997 111.86 115.2034296 12886.65564 2.29662 2286.24166 2.87006 2250.37413
8 1997 105.60 115.2034296 12165.48217 2.47676 2155.82039 3.09434 2121.34253
9 1997 111.31 115.2034296 12823.29375 2.33547 2270.05437 2.91692 2233.13079
10 1997 107.63 115.2034296 12399.34513 2.45923 2192.54529 3.07063 2156.23102
11 1997 112.50 115.2034296 12960.38583 2.37526 2289.37746 2.96489 2250.83043
12 1997 114.39 115.2034296 13178.12032 2.48016 2325.35884 3.09497 2285.54941
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 147.93%
GROSS ANNUAL RETURN = 19.91%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2325.36 2266.06
TOTAL RETURN 132.54% 126.61%
AVERAGE ANNUAL RETURN 18.39% 17.78%
WITH DEATH BENEFIT CHARGE
ERV 2285.55 2227.27
TOTAL RETURN 128.55% 122.73%
AVERAGE ANNUAL RETURN 17.98% 17.37%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
7 1992 50.00 100.0000000 5000.00000 1000.00000 1000.00000
8 1992 50.07 100.0000000 5007.00000 1.08333 1000.31667 1.37503 1000.02497
9 1992 50.65 100.0000000 5065.00000 1.08368 1010.82044 1.37507 1010.23397
10 1992 50.76 100.0000000 5076.00000 1.09506 1011.92065 1.38911 1011.03886
11 1992 52.49 100.0000000 5249.00000 1.09625 1045.31264 1.39021 1044.10683
12 1992 52.60 101.0520275 5315.33665 1.13242 1057.39084 1.43568 1055.86652
1 1993 52.98 101.0520275 5353.73642 1.14551 1063.88427 1.45185 1062.04261
2 1993 53.57 101.3318984 5428.34980 1.15254 1077.55876 1.46034 1075.38362
3 1993 54.75 101.3318984 5547.92144 1.16736 1100.12707 1.47869 1097.59268
4 1993 53.40 101.3318984 5411.12337 1.19180 1071.80884 1.50923 1069.01953
5 1993 54.79 101.3318984 5551.97471 1.16113 1098.54686 1.46994 1095.37613
6 1993 54.93 101.3318984 5566.16118 1.19009 1100.16378 1.50618 1096.66887
7 1993 54.68 101.3318984 5540.82820 1.19184 1093.96482 1.50796 1090.16970
8 1993 56.75 101.3318984 5750.58523 1.18513 1134.19351 1.49902 1129.94082
9 1993 56.29 101.3318984 5703.97256 1.22871 1123.77133 1.55371 1119.22812
10 1993 57.44 101.3318984 5820.50424 1.21742 1145.51247 1.53898 1140.55488
11 1993 56.88 101.3318984 5763.75838 1.24097 1133.10355 1.56830 1127.86697
12 1993 55.74 104.6470890 5833.02874 1.22753 1145.49396 1.55085 1139.87111
1 1994 57.62 104.6470890 6029.76527 1.24095 1182.88825 1.56736 1176.74935
2 1994 55.96 104.8333932 5866.47669 1.28146 1149.57368 1.61807 1143.26441
3 1994 53.53 104.8333932 5611.73154 1.24537 1098.40936 1.57203 1092.04742
4 1994 54.17 104.8333932 5678.82491 1.18994 1110.35190 1.50160 1103.60224
5 1994 55.01 104.8333932 5766.88496 1.20288 1126.36696 1.51749 1119.19802
6 1994 53.67 104.8333932 5626.40822 1.22023 1097.70932 1.53893 1090.39631
7 1994 55.44 104.8333932 5811.96332 1.18919 1132.72184 1.49933 1124.85750
8 1994 57.65 104.8333932 6043.64512 1.22712 1176.64832 1.54672 1168.15089
9 1994 56.25 104.8333932 5896.87837 1.27470 1146.79933 1.60625 1138.17671
10 1994 57.50 104.8333932 6027.92011 1.24237 1171.04140 1.56503 1161.90449
11 1994 55.41 104.8333932 5808.81832 1.26863 1127.20796 1.59766 1118.07413
12 1994 56.22 104.8333932 5893.73337 1.22114 1142.46468 1.53739 1132.88109
1 1995 57.71 104.8333932 6049.93512 1.23767 1171.50578 1.55775 1161.34811
2 1995 58.82 106.7973146 6281.81804 1.26913 1215.13832 1.59689 1204.26356
3 1995 60.54 106.7973146 6465.50942 1.31640 1249.35469 1.65590 1237.82244
4 1995 62.32 106.7973146 6655.60864 1.35347 1284.73481 1.70205 1272.51491
5 1995 64.77 106.7973146 6917.26207 1.39180 1333.85008 1.74975 1320.79182
6 1995 66.24 106.7973146 7074.25412 1.44500 1362.67773 1.81613 1348.95197
7 1995 68.45 106.7973146 7310.27618 1.47623 1406.66523 1.85485 1392.10291
8 1995 68.62 106.7973146 7328.43173 1.52389 1408.63489 1.91419 1393.64610
9 1995 71.49 106.7973146 7634.94002 1.52602 1466.02437 1.91631 1450.01840
10 1995 71.25 106.7973146 7609.30866 1.58819 1459.51457 1.99382 1443.15670
11 1995 74.35 106.7973146 7940.38034 1.58114 1521.43511 1.98439 1503.96229
12 1995 75.71 106.7973146 8085.62469 1.64822 1547.61678 2.06800 1529.40456
1 1996 78.30 106.7973146 8362.22973 1.67658 1598.88336 2.10298 1579.62172
2 1996 75.75 111.4214989 8440.17854 1.73212 1612.05528 2.17203 1592.17419
3 1996 76.53 111.4214989 8527.08731 1.74639 1626.90827 2.18929 1606.37956
4 1996 77.60 111.4214989 8646.30831 1.76248 1647.89232 2.20883 1626.63024
5 1996 79.58 111.4214989 8866.92288 1.78522 1688.15384 2.23667 1665.89780
6 1996 79.92 111.4214989 8904.80619 1.82883 1693.53752 2.29066 1670.72456
7 1996 76.38 111.4214989 8510.37408 1.83467 1616.68881 2.29730 1594.42370
8 1996 77.95 111.4214989 8685.30584 1.75141 1648.16863 2.19239 1625.00488
9 1996 82.31 111.4214989 9171.10357 1.78552 1738.57061 2.23444 1713.66231
10 1996 84.58 111.4214989 9424.03037 1.88345 1784.63461 2.35634 1758.56649
11 1996 90.92 111.4214989 10130.44268 1.93335 1916.47500 2.41809 1887.96812
12 1996 89.13 111.4214989 9930.99819 2.07618 1876.66796 2.59602 1848.20247
1 1997 94.57 111.4214989 10537.13115 2.03306 1989.17629 2.54134 1958.46514
2 1997 92.15 115.2034296 10615.99604 2.15494 2001.90928 2.69295 1970.43027
3 1997 88.32 115.2034296 10174.76690 2.16873 1916.53586 2.70941 1885.82452
4 1997 93.57 115.2034296 10779.58491 2.07625 2028.38412 2.59307 1995.33039
5 1997 99.26 115.2034296 11435.09243 2.19742 2149.53293 2.74365 2113.92296
6 1997 103.62 115.2034296 11937.37938 2.32866 2241.62260 2.90671 2203.87041
7 1997 111.86 115.2034296 12886.65564 2.42842 2417.45098 3.03040 2376.09472
8 1997 105.60 115.2034296 12165.48217 2.61891 2279.54472 3.26721 2239.85457
9 1997 111.31 115.2034296 12823.29375 2.46951 2400.33469 3.07987 2357.88804
10 1997 107.63 115.2034296 12399.34513 2.60036 2318.37729 3.24217 2276.69215
11 1997 112.50 115.2034296 12960.38583 2.51158 2420.76674 3.13053 2376.57650
12 1997 114.39 115.2034296 13178.12032 2.62250 2458.81313 3.26787 2413.23511
SURRENDER CHARGE = 2.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 163.56%
GROSS ANNUAL RETURN = 19.88%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2458.81 2417.01
TOTAL RETURN 145.88% 141.70%
AVERAGE ANNUAL RETURN 18.33% 17.95%
WITH DEATH BENEFIT CHARGE
ERV 2413.24 2372.21
TOTAL RETURN 141.32% 137.22%
AVERAGE ANNUAL RETURN 17.92% 17.54%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 66.24 106.7973146 7074.25412 1000.00000 1000.00000
7 1995 68.45 106.7973146 7310.27618 1.08333 1032.28019 1.37503 1031.98849
8 1995 68.62 106.7973146 7328.43173 1.11830 1033.72562 1.41902 1033.13248
9 1995 71.49 106.7973146 7634.94002 1.11987 1075.84085 1.42059 1074.92219
10 1995 71.25 106.7973146 7609.30866 1.16549 1071.06364 1.47805 1069.83550
11 1995 74.35 106.7973146 7940.38034 1.16032 1116.50399 1.47106 1114.91167
12 1995 75.71 106.7973146 8085.62469 1.20955 1135.71738 1.53304 1133.77244
1 1996 78.30 106.7973146 8362.22973 1.23036 1173.33932 1.55897 1170.99923
2 1996 75.75 111.4214989 8440.17854 1.27112 1183.00553 1.61016 1180.30458
3 1996 76.53 111.4214989 8527.08731 1.28159 1193.90538 1.62296 1190.83525
4 1996 77.60 111.4214989 8646.30831 1.29340 1209.30451 1.63744 1205.84741
5 1996 79.58 111.4214989 8866.92288 1.31008 1238.85039 1.65808 1234.95709
6 1996 79.92 111.4214989 8904.80619 1.34209 1242.80121 1.69811 1238.53525
7 1996 76.38 111.4214989 8510.37408 1.34637 1186.40584 1.70303 1181.97217
8 1996 77.95 111.4214989 8685.30584 1.28527 1209.50728 1.62525 1204.64250
9 1996 82.31 111.4214989 9171.10357 1.31030 1275.84870 1.65642 1270.36570
10 1996 84.58 111.4214989 9424.03037 1.38217 1309.65273 1.74680 1303.65389
11 1996 90.92 111.4214989 10130.44268 1.41879 1406.40370 1.79257 1399.58142
12 1996 89.13 111.4214989 9930.99819 1.52360 1377.19133 1.92447 1370.10250
1 1997 94.57 111.4214989 10537.13115 1.49196 1459.75548 1.88394 1451.84201
2 1997 92.15 115.2034296 10615.99604 1.58140 1469.09959 1.99633 1460.71195
3 1997 88.32 115.2034296 10174.76690 1.59152 1406.44836 2.00853 1397.99234
4 1997 93.57 115.2034296 10779.58491 1.52365 1488.52813 1.92229 1479.17082
5 1997 99.26 115.2034296 11435.09243 1.61257 1577.43308 2.03391 1567.08542
6 1997 103.62 115.2034296 11937.37938 1.70889 1645.01301 2.15479 1633.76492
7 1997 111.86 115.2034296 12886.65564 1.78210 1774.04454 2.24648 1761.43759
8 1997 105.60 115.2034296 12165.48217 1.92188 1672.84214 2.42204 1660.44056
9 1997 111.31 115.2034296 12823.29375 1.81225 1761.48376 2.28316 1747.94069
10 1997 107.63 115.2034296 12399.34513 1.90827 1701.33939 2.40348 1687.74886
11 1997 112.50 115.2034296 12960.38583 1.84312 1776.47781 2.32071 1761.79475
12 1997 114.39 115.2034296 13178.12032 1.92452 1804.39812 2.42253 1788.97037
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 86.28%
GROSS ANNUAL RETURN = 27.23%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1804.40 1727.71
TOTAL RETURN 80.44% 72.77%
AVERAGE ANNUAL RETURN 25.67% 23.57%
WITH DEATH BENEFIT CHARGE
ERV 1788.97 1712.94
TOTAL RETURN 78.90% 71.29%
AVERAGE ANNUAL RETURN 25.25% 23.16%
MFS Emerging Growth
12/1997
Assume ($10000 @ $10.00 on 7/24/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.3276700000 11.30 2.900 102.899735
12/96 0.1128000000 13.27 0.875 103.774421
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.24 103.7744210 1373.97333 1000.00000 1000.00000
1 1997 14.07 103.7744210 1460.10610 1.08333 1061.60549 1.37503 1061.31379
2 1997 13.44 103.7744210 1394.72822 1.15007 1012.92084 1.45934 1012.33293
3 1997 12.39 103.7744210 1285.76508 1.09733 932.68907 1.39199 931.85243
4 1997 12.88 103.7744210 1336.61454 1.01041 968.56467 1.28133 967.42402
5 1997 14.09 103.7744210 1462.18159 1.04928 1058.50632 1.33024 1056.97756
6 1997 14.67 103.7744210 1522.37076 1.14672 1100.93190 1.45338 1099.03355
7 1997 16.03 103.7744210 1663.50397 1.19268 1201.80244 1.51121 1199.40957
8 1997 15.57 103.7744210 1615.76774 1.30195 1166.01334 1.64923 1163.34185
9 1997 16.68 103.7744210 1730.95734 1.26318 1247.87635 1.59963 1244.67796
10 1997 16.10 103.7744210 1670.76818 1.35187 1203.13310 1.71147 1199.68632
11 1997 16.30 103.7744210 1691.52306 1.30339 1216.77545 1.64961 1212.93964
12 1997 16.14 103.7744210 1674.91916 1.31817 1203.51347 1.66783 1199.36565
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1203.51 1131.90
TOTAL RETURN 20.35% 13.19%
WITH DEATH BENEFIT CHARGE
ERV 1199.37 1128.00
TOTAL RETURN 19.94% 12.80%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.24 103.7744210 1373.97333 1000.00000 1000.00000
1 1997 14.07 103.7744210 1460.10610 1.08333 1061.60549 1.37503 1061.31379
2 1997 13.44 103.7744210 1394.72822 1.15007 1012.92084 1.45934 1012.33293
3 1997 12.39 103.7744210 1285.76508 1.09733 932.68907 1.39199 931.85243
4 1997 12.88 103.7744210 1336.61454 1.01041 968.56467 1.28133 967.42402
5 1997 14.09 103.7744210 1462.18159 1.04928 1058.50632 1.33024 1056.97756
6 1997 14.67 103.7744210 1522.37076 1.14672 1100.93190 1.45338 1099.03355
7 1997 16.03 103.7744210 1663.50397 1.19268 1201.80244 1.51121 1199.40957
8 1997 15.57 103.7744210 1615.76774 1.30195 1166.01334 1.64923 1163.34185
9 1997 16.68 103.7744210 1730.95734 1.26318 1247.87635 1.59963 1244.67796
10 1997 16.10 103.7744210 1670.76818 1.35187 1203.13310 1.71147 1199.68632
11 1997 16.30 103.7744210 1691.52306 1.30339 1216.77545 1.64961 1212.93964
12 1997 16.14 103.7744210 1674.91916 1.31817 1203.51347 1.66783 1199.36565
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1203.51 1131.90
TOTAL RETURN 20.35% 13.19%
WITH DEATH BENEFIT CHARGE
ERV 1199.37 1128.00
TOTAL RETURN 19.94% 12.80%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
8 1995 10.37 100.0000000 1037.00000 1.08974 1034.79465 1.38277 1034.20123
9 1995 10.87 100.0000000 1087.00000 1.12103 1083.56729 1.42206 1082.64423
10 1995 11.06 100.0000000 1106.00000 1.17386 1101.33342 1.48867 1100.07942
11 1995 11.69 100.0000000 1169.00000 1.19311 1162.87449 1.51265 1161.22953
12 1995 11.41 102.8997345 1174.08597 1.25978 1166.67403 1.59673 1164.68496
1 1996 11.61 102.8997345 1194.66592 1.26390 1185.86016 1.60148 1183.49864
2 1996 12.07 102.8997345 1241.99980 1.28468 1231.56047 1.62735 1228.76271
3 1996 12.19 102.8997345 1254.34776 1.33419 1242.47046 1.68959 1239.28949
4 1996 13.05 102.8997345 1342.84154 1.34601 1328.78028 1.70406 1325.01684
5 1996 13.42 102.8997345 1380.91444 1.43951 1365.01500 1.82194 1360.76242
6 1996 13.13 102.8997345 1351.07351 1.47877 1334.03889 1.87109 1329.48588
7 1996 12.18 102.8997345 1253.31877 1.44521 1236.07144 1.82809 1231.46498
8 1996 12.51 102.8997345 1287.27568 1.33908 1268.22199 1.69331 1263.13649
9 1996 13.58 102.8997345 1397.37839 1.37391 1375.32110 1.73685 1369.43769
10 1996 13.38 102.8997345 1376.79845 1.48993 1353.57608 1.88302 1347.38622
11 1996 13.97 102.8997345 1437.50929 1.46637 1411.79654 1.85270 1404.94741
12 1996 13.24 103.7744210 1373.97333 1.52945 1347.86760 1.93185 1340.91880
1 1997 14.07 103.7744210 1460.10610 1.46019 1430.90365 1.84381 1423.13561
2 1997 13.44 103.7744210 1394.72822 1.55015 1365.28319 1.95686 1357.45626
3 1997 12.39 103.7744210 1285.76508 1.47906 1257.14138 1.86655 1249.53844
4 1997 12.88 103.7744210 1336.61454 1.36190 1305.49694 1.71816 1297.23706
5 1997 14.09 103.7744210 1462.18159 1.41429 1426.72638 1.78374 1417.32108
6 1997 14.67 103.7744210 1522.37076 1.54562 1483.91045 1.94886 1473.71475
7 1997 16.03 103.7744210 1663.50397 1.60757 1619.87058 2.02641 1608.31084
8 1997 15.57 103.7744210 1615.76774 1.75486 1571.63160 2.21148 1559.94696
9 1997 16.68 103.7744210 1730.95734 1.70260 1681.97210 2.14498 1669.01207
10 1997 16.10 103.7744210 1670.76818 1.82214 1621.66412 2.29495 1608.68193
11 1997 16.30 103.7744210 1691.52306 1.75680 1640.05222 2.21199 1626.45357
12 1997 16.14 103.7744210 1674.91916 1.77672 1622.17682 2.23643 1608.25195
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 67.49%
GROSS ANNUAL RETURN = 23.56%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1622.18 1553.23
TOTAL RETURN 62.22% 55.32%
AVERAGE ANNUAL RETURN 21.94% 19.79%
WITH DEATH BENEFIT CHARGE
ERV 1608.25 1539.90
TOTAL RETURN 60.83% 53.99%
AVERAGE ANNUAL RETURN 21.51% 19.37%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
8 1995 10.37 100.0000000 1037.00000 1.08974 1034.79465 1.38277 1034.20123
9 1995 10.87 100.0000000 1087.00000 1.12103 1083.56729 1.42206 1082.64423
10 1995 11.06 100.0000000 1106.00000 1.17386 1101.33342 1.48867 1100.07942
11 1995 11.69 100.0000000 1169.00000 1.19311 1162.87449 1.51265 1161.22953
12 1995 11.41 102.8997345 1174.08597 1.25978 1166.67403 1.59673 1164.68496
1 1996 11.61 102.8997345 1194.66592 1.26390 1185.86016 1.60148 1183.49864
2 1996 12.07 102.8997345 1241.99980 1.28468 1231.56047 1.62735 1228.76271
3 1996 12.19 102.8997345 1254.34776 1.33419 1242.47046 1.68959 1239.28949
4 1996 13.05 102.8997345 1342.84154 1.34601 1328.78028 1.70406 1325.01684
5 1996 13.42 102.8997345 1380.91444 1.43951 1365.01500 1.82194 1360.76242
6 1996 13.13 102.8997345 1351.07351 1.47877 1334.03889 1.87109 1329.48588
7 1996 12.18 102.8997345 1253.31877 1.44521 1236.07144 1.82809 1231.46498
8 1996 12.51 102.8997345 1287.27568 1.33908 1268.22199 1.69331 1263.13649
9 1996 13.58 102.8997345 1397.37839 1.37391 1375.32110 1.73685 1369.43769
10 1996 13.38 102.8997345 1376.79845 1.48993 1353.57608 1.88302 1347.38622
11 1996 13.97 102.8997345 1437.50929 1.46637 1411.79654 1.85270 1404.94741
12 1996 13.24 103.7744210 1373.97333 1.52945 1347.86760 1.93185 1340.91880
1 1997 14.07 103.7744210 1460.10610 1.46019 1430.90365 1.84381 1423.13561
2 1997 13.44 103.7744210 1394.72822 1.55015 1365.28319 1.95686 1357.45626
3 1997 12.39 103.7744210 1285.76508 1.47906 1257.14138 1.86655 1249.53844
4 1997 12.88 103.7744210 1336.61454 1.36190 1305.49694 1.71816 1297.23706
5 1997 14.09 103.7744210 1462.18159 1.41429 1426.72638 1.78374 1417.32108
6 1997 14.67 103.7744210 1522.37076 1.54562 1483.91045 1.94886 1473.71475
7 1997 16.03 103.7744210 1663.50397 1.60757 1619.87058 2.02641 1608.31084
8 1997 15.57 103.7744210 1615.76774 1.75486 1571.63160 2.21148 1559.94696
9 1997 16.68 103.7744210 1730.95734 1.70260 1681.97210 2.14498 1669.01207
10 1997 16.10 103.7744210 1670.76818 1.82214 1621.66412 2.29495 1608.68193
11 1997 16.30 103.7744210 1691.52306 1.75680 1640.05222 2.21199 1626.45357
12 1997 16.14 103.7744210 1674.91916 1.77672 1622.17682 2.23643 1608.25195
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 67.49%
GROSS ANNUAL RETURN = 22.10%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1622.18 1553.23
TOTAL RETURN 62.22% 55.32%
AVERAGE ANNUAL RETURN 20.59% 18.58%
WITH DEATH BENEFIT CHARGE
ERV 1608.25 1539.90
TOTAL RETURN 60.83% 53.99%
AVERAGE ANNUAL RETURN 20.19% 18.19%
MFS High Income
12/1997
Assume ($10000 @ $10.00 on 7/26/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.2343800000 10.26 2.284 102.284405
12/96 0.6346600000 10.87 5.972 108.256422
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.87 108.2564221 1176.74731 1000.00000 1000.00000
1 1997 11.02 108.2564221 1192.98577 1.08333 1012.71611 1.37503 1012.42441
2 1997 11.24 108.2564221 1216.80218 1.09711 1031.83657 1.39212 1031.24404
3 1997 11.01 108.2564221 1191.90321 1.11782 1009.60465 1.41799 1008.72407
4 1997 11.13 108.2564221 1204.89398 1.09374 1019.51478 1.38703 1018.33131
5 1997 11.42 108.2564221 1236.28834 1.10447 1044.97448 1.40024 1043.46441
6 1997 11.61 108.2564221 1256.85706 1.13206 1061.22817 1.43480 1059.39023
7 1997 11.87 108.2564221 1285.00373 1.14966 1083.84416 1.45670 1081.65804
8 1997 11.89 108.2564221 1287.16886 1.17416 1084.49619 1.48732 1081.99323
9 1997 12.12 108.2564221 1312.06784 1.17487 1104.29980 1.48778 1101.43551
10 1997 12.09 108.2564221 1308.82014 1.19632 1100.37006 1.51451 1097.19468
11 1997 12.20 108.2564221 1320.72835 1.19207 1109.18963 1.50868 1105.66874
12 1997 12.35 108.2564221 1336.96681 1.20162 1121.62558 1.52033 1117.74270
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 13.62%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1121.63 1054.89
TOTAL RETURN 12.16% 5.49%
WITH DEATH BENEFIT CHARGE
ERV 1117.74 1051.24
TOTAL RETURN 11.77% 5.12%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.87 108.2564221 1176.74731 1000.00000 1000.00000
1 1997 11.02 108.2564221 1192.98577 1.08333 1012.71611 1.37503 1012.42441
2 1997 11.24 108.2564221 1216.80218 1.09711 1031.83657 1.39212 1031.24404
3 1997 11.01 108.2564221 1191.90321 1.11782 1009.60465 1.41799 1008.72407
4 1997 11.13 108.2564221 1204.89398 1.09374 1019.51478 1.38703 1018.33131
5 1997 11.42 108.2564221 1236.28834 1.10447 1044.97448 1.40024 1043.46441
6 1997 11.61 108.2564221 1256.85706 1.13206 1061.22817 1.43480 1059.39023
7 1997 11.87 108.2564221 1285.00373 1.14966 1083.84416 1.45670 1081.65804
8 1997 11.89 108.2564221 1287.16886 1.17416 1084.49619 1.48732 1081.99323
9 1997 12.12 108.2564221 1312.06784 1.17487 1104.29980 1.48778 1101.43551
10 1997 12.09 108.2564221 1308.82014 1.19632 1100.37006 1.51451 1097.19468
11 1997 12.20 108.2564221 1320.72835 1.19207 1109.18963 1.50868 1105.66874
12 1997 12.35 108.2564221 1336.96681 1.20162 1121.62558 1.52033 1117.74270
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 13.62%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1121.63 1054.89
TOTAL RETURN 12.16% 5.49%
WITH DEATH BENEFIT CHARGE
ERV 1117.74 1051.24
TOTAL RETURN 11.77% 5.12%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 9.97 100.0000000 997.00000 1.08333 995.91667 1.37503 995.62497
8 1995 9.93 100.0000000 993.00000 1.07891 990.84210 1.36902 990.26147
9 1995 10.08 100.0000000 1008.00000 1.07341 1004.73609 1.36164 1003.85846
10 1995 10.30 100.0000000 1030.00000 1.08846 1025.57639 1.38034 1024.38773
11 1995 10.35 100.0000000 1035.00000 1.11104 1029.44388 1.40857 1027.95191
12 1995 10.29 102.2844055 1052.50653 1.11523 1045.74120 1.41347 1043.92576
1 1996 10.48 102.2844055 1071.94057 1.13289 1063.91743 1.43543 1061.76593
2 1996 10.51 102.2844055 1075.00910 1.15258 1065.81042 1.45996 1063.34537
3 1996 10.42 102.2844055 1065.80350 1.15463 1055.52897 1.46214 1052.77752
4 1996 10.51 102.2844055 1075.00910 1.14349 1063.50233 1.44760 1060.42300
5 1996 10.57 102.2844055 1081.14617 1.15213 1068.42158 1.45812 1065.01868
6 1996 10.59 102.2844055 1083.19185 1.15746 1069.28573 1.46444 1065.56942
7 1996 10.71 102.2844055 1095.46598 1.15839 1080.24389 1.46519 1076.17866
8 1996 10.90 102.2844055 1114.90002 1.17026 1098.23762 1.47978 1093.79075
9 1996 11.18 102.2844055 1143.53965 1.18976 1125.25947 1.50400 1120.38413
10 1996 11.19 102.2844055 1144.56250 1.21903 1125.04693 1.54057 1119.84570
11 1996 11.41 102.2844055 1167.06507 1.21880 1145.94702 1.53983 1140.32250
12 1996 10.87 108.2564221 1176.74731 1.24144 1154.21262 1.56798 1148.21490
1 1997 11.02 108.2564221 1192.98577 1.25040 1168.88972 1.57883 1162.48080
2 1997 11.24 108.2564221 1216.80218 1.26630 1190.95878 1.59845 1184.08977
3 1997 11.01 108.2564221 1191.90321 1.29021 1165.29843 1.62816 1158.23201
4 1997 11.13 108.2564221 1204.89398 1.26241 1176.73682 1.59261 1169.26319
5 1997 11.42 108.2564221 1236.28834 1.27480 1206.12273 1.60778 1198.12139
6 1997 11.61 108.2564221 1256.85706 1.30663 1224.88294 1.64746 1216.40765
7 1997 11.87 108.2564221 1285.00373 1.32696 1250.98661 1.67260 1241.97587
8 1997 11.89 108.2564221 1287.16886 1.35524 1251.73918 1.70776 1242.36074
9 1997 12.12 108.2564221 1312.06784 1.35605 1274.59676 1.70829 1264.68467
10 1997 12.09 108.2564221 1308.82014 1.38081 1270.06100 1.73898 1259.81528
11 1997 12.20 108.2564221 1320.72835 1.37590 1280.24066 1.73229 1269.54533
12 1997 12.35 108.2564221 1336.96681 1.38693 1294.59440 1.74567 1283.40882
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.70%
GROSS ANNUAL RETURN = 12.68%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1294.59 1239.57
TOTAL RETURN 29.46% 23.96%
AVERAGE ANNUAL RETURN 11.20% 9.23%
WITH DEATH BENEFIT CHARGE
ERV 1283.41 1228.86
TOTAL RETURN 28.34% 22.89%
AVERAGE ANNUAL RETURN 10.80% 8.84%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 9.97 100.0000000 997.00000 1.08333 995.91667 1.37503 995.62497
8 1995 9.93 100.0000000 993.00000 1.07891 990.84210 1.36902 990.26147
9 1995 10.08 100.0000000 1008.00000 1.07341 1004.73609 1.36164 1003.85846
10 1995 10.30 100.0000000 1030.00000 1.08846 1025.57639 1.38034 1024.38773
11 1995 10.35 100.0000000 1035.00000 1.11104 1029.44388 1.40857 1027.95191
12 1995 10.29 102.2844055 1052.50653 1.11523 1045.74120 1.41347 1043.92576
1 1996 10.48 102.2844055 1071.94057 1.13289 1063.91743 1.43543 1061.76593
2 1996 10.51 102.2844055 1075.00910 1.15258 1065.81042 1.45996 1063.34537
3 1996 10.42 102.2844055 1065.80350 1.15463 1055.52897 1.46214 1052.77752
4 1996 10.51 102.2844055 1075.00910 1.14349 1063.50233 1.44760 1060.42300
5 1996 10.57 102.2844055 1081.14617 1.15213 1068.42158 1.45812 1065.01868
6 1996 10.59 102.2844055 1083.19185 1.15746 1069.28573 1.46444 1065.56942
7 1996 10.71 102.2844055 1095.46598 1.15839 1080.24389 1.46519 1076.17866
8 1996 10.90 102.2844055 1114.90002 1.17026 1098.23762 1.47978 1093.79075
9 1996 11.18 102.2844055 1143.53965 1.18976 1125.25947 1.50400 1120.38413
10 1996 11.19 102.2844055 1144.56250 1.21903 1125.04693 1.54057 1119.84570
11 1996 11.41 102.2844055 1167.06507 1.21880 1145.94702 1.53983 1140.32250
12 1996 10.87 108.2564221 1176.74731 1.24144 1154.21262 1.56798 1148.21490
1 1997 11.02 108.2564221 1192.98577 1.25040 1168.88972 1.57883 1162.48080
2 1997 11.24 108.2564221 1216.80218 1.26630 1190.95878 1.59845 1184.08977
3 1997 11.01 108.2564221 1191.90321 1.29021 1165.29843 1.62816 1158.23201
4 1997 11.13 108.2564221 1204.89398 1.26241 1176.73682 1.59261 1169.26319
5 1997 11.42 108.2564221 1236.28834 1.27480 1206.12273 1.60778 1198.12139
6 1997 11.61 108.2564221 1256.85706 1.30663 1224.88294 1.64746 1216.40765
7 1997 11.87 108.2564221 1285.00373 1.32696 1250.98661 1.67260 1241.97587
8 1997 11.89 108.2564221 1287.16886 1.35524 1251.73918 1.70776 1242.36074
9 1997 12.12 108.2564221 1312.06784 1.35605 1274.59676 1.70829 1264.68467
10 1997 12.09 108.2564221 1308.82014 1.38081 1270.06100 1.73898 1259.81528
11 1997 12.20 108.2564221 1320.72835 1.37590 1280.24066 1.73229 1269.54533
12 1997 12.35 108.2564221 1336.96681 1.38693 1294.59440 1.74567 1283.40882
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.70%
GROSS ANNUAL RETURN = 11.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1294.59 1239.57
TOTAL RETURN 29.46% 23.96%
AVERAGE ANNUAL RETURN 10.51% 8.67%
WITH DEATH BENEFIT CHARGE
ERV 1283.41 1228.86
TOTAL RETURN 28.34% 22.89%
AVERAGE ANNUAL RETURN 10.14% 8.30%
MFS Research
12/1997
Assume ($10000 @ $10.00 on 7/26/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.1712900000 10.82 1.583 101.583087
12/96 0.1927500000 13.18 1.486 103.068682
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.13 103.0686817 1353.29179 1000.00000 1000.00000
1 1997 13.64 103.0686817 1405.85682 1.08333 1037.75901 1.37503 1037.46731
2 1997 13.61 103.0686817 1402.76476 1.12424 1034.35231 1.42655 1033.75894
3 1997 12.86 103.0686817 1325.46325 1.12055 976.23219 1.42145 975.37061
4 1997 13.45 103.0686817 1386.27377 1.05758 1019.96286 1.34117 1018.77817
5 1997 14.38 103.0686817 1482.12764 1.10496 1089.38321 1.40085 1087.82072
6 1997 14.92 103.0686817 1537.78473 1.18017 1129.11174 1.49579 1127.17494
7 1997 16.03 103.0686817 1652.19097 1.22320 1211.89081 1.54990 1209.48323
8 1997 15.33 103.0686817 1580.04289 1.31288 1157.65694 1.66308 1155.00428
9 1997 16.12 103.0686817 1661.46715 1.25413 1216.06027 1.58817 1212.93688
10 1997 15.30 103.0686817 1576.95083 1.31740 1152.88373 1.66783 1149.56879
11 1997 15.76 103.0686817 1624.36242 1.24896 1186.29664 1.58070 1182.55030
12 1997 15.79 103.0686817 1627.45448 1.28515 1187.26966 1.62605 1183.17530
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 20.26%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1187.27 1116.63
TOTAL RETURN 18.73% 11.66%
WITH DEATH BENEFIT CHARGE
ERV 1183.18 1112.78
TOTAL RETURN 18.32% 11.28%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.13 103.0686817 1353.29179 1000.00000 1000.00000
1 1997 13.64 103.0686817 1405.85682 1.08333 1037.75901 1.37503 1037.46731
2 1997 13.61 103.0686817 1402.76476 1.12424 1034.35231 1.42655 1033.75894
3 1997 12.86 103.0686817 1325.46325 1.12055 976.23219 1.42145 975.37061
4 1997 13.45 103.0686817 1386.27377 1.05758 1019.96286 1.34117 1018.77817
5 1997 14.38 103.0686817 1482.12764 1.10496 1089.38321 1.40085 1087.82072
6 1997 14.92 103.0686817 1537.78473 1.18017 1129.11174 1.49579 1127.17494
7 1997 16.03 103.0686817 1652.19097 1.22320 1211.89081 1.54990 1209.48323
8 1997 15.33 103.0686817 1580.04289 1.31288 1157.65694 1.66308 1155.00428
9 1997 16.12 103.0686817 1661.46715 1.25413 1216.06027 1.58817 1212.93688
10 1997 15.30 103.0686817 1576.95083 1.31740 1152.88373 1.66783 1149.56879
11 1997 15.76 103.0686817 1624.36242 1.24896 1186.29664 1.58070 1182.55030
12 1997 15.79 103.0686817 1627.45448 1.28515 1187.26966 1.62605 1183.17530
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 20.26%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1187.27 1116.63
TOTAL RETURN 18.73% 11.66%
WITH DEATH BENEFIT CHARGE
ERV 1183.18 1112.78
TOTAL RETURN 18.32% 11.28%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.00 100.0000000 1000.00000 1.08333 998.91667 1.37503 998.62497
8 1995 10.10 100.0000000 1010.00000 1.08216 1007.82367 1.37314 1007.23807
9 1995 10.40 100.0000000 1040.00000 1.09181 1036.66722 1.38499 1035.77105
10 1995 10.47 100.0000000 1047.00000 1.12306 1042.52173 1.42422 1041.31837
11 1995 10.81 100.0000000 1081.00000 1.12940 1075.24691 1.43185 1073.70202
12 1995 10.89 101.5830869 1106.23982 1.16485 1099.18755 1.47638 1097.29506
1 1996 11.12 101.5830869 1129.60393 1.19079 1121.21192 1.50882 1118.96143
2 1996 11.54 101.5830869 1172.26882 1.21465 1162.34521 1.53861 1159.68576
3 1996 11.52 101.5830869 1170.23716 1.25921 1159.07154 1.59461 1156.08130
4 1996 11.98 101.5830869 1216.96538 1.25566 1204.09825 1.58965 1200.65462
5 1996 12.37 101.5830869 1256.58278 1.30444 1241.99233 1.65094 1238.09009
6 1996 12.21 101.5830869 1240.32949 1.34549 1224.58227 1.70242 1220.37358
7 1996 11.60 101.5830869 1178.36381 1.32663 1162.07667 1.67805 1157.72682
8 1996 11.96 101.5830869 1214.93372 1.25892 1196.88220 1.59191 1192.06436
9 1996 12.68 101.5830869 1288.07354 1.29662 1267.63869 1.63913 1262.18830
10 1996 12.79 101.5830869 1299.24768 1.37328 1277.26228 1.73555 1271.40234
11 1996 13.55 101.5830869 1376.45083 1.38370 1351.77532 1.74822 1345.20265
12 1996 13.13 103.0686817 1353.29179 1.46442 1327.56703 1.84970 1320.71967
1 1997 13.64 103.0686817 1405.85682 1.43820 1377.69465 1.81603 1370.20349
2 1997 13.61 103.0686817 1402.76476 1.49250 1373.17203 1.88408 1365.30577
3 1997 12.86 103.0686817 1325.46325 1.48760 1296.01367 1.87734 1288.19115
4 1997 13.45 103.0686817 1386.27377 1.40401 1354.06907 1.77131 1345.52037
5 1997 14.38 103.0686817 1482.12764 1.46691 1446.22924 1.85014 1436.70622
6 1997 14.92 103.0686817 1537.78473 1.56675 1498.97152 1.97552 1488.68212
7 1997 16.03 103.0686817 1652.19097 1.62389 1608.86629 2.04699 1597.38829
8 1997 15.33 103.0686817 1580.04289 1.74294 1536.86718 2.19646 1525.43688
9 1997 16.12 103.0686817 1661.46715 1.66494 1614.40153 2.09753 1601.94960
10 1997 15.30 103.0686817 1576.95083 1.74893 1530.53043 2.20273 1518.25812
11 1997 15.76 103.0686817 1624.36242 1.65807 1574.88831 2.08766 1561.81744
12 1997 15.79 103.0686817 1627.45448 1.70613 1576.18006 2.14755 1562.64289
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 62.75%
GROSS ANNUAL RETURN = 22.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1576.18 1509.19
TOTAL RETURN 57.62% 50.92%
AVERAGE ANNUAL RETURN 20.57% 18.43%
WITH DEATH BENEFIT CHARGE
ERV 1562.64 1496.23
TOTAL RETURN 56.26% 49.62%
AVERAGE ANNUAL RETURN 20.14% 18.01%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
7 1995 10.00 100.0000000 1000.00000 1.08333 998.91667 1.37503 998.62497
8 1995 10.10 100.0000000 1010.00000 1.08216 1007.82367 1.37314 1007.23807
9 1995 10.40 100.0000000 1040.00000 1.09181 1036.66722 1.38499 1035.77105
10 1995 10.47 100.0000000 1047.00000 1.12306 1042.52173 1.42422 1041.31837
11 1995 10.81 100.0000000 1081.00000 1.12940 1075.24691 1.43185 1073.70202
12 1995 10.89 101.5830869 1106.23982 1.16485 1099.18755 1.47638 1097.29506
1 1996 11.12 101.5830869 1129.60393 1.19079 1121.21192 1.50882 1118.96143
2 1996 11.54 101.5830869 1172.26882 1.21465 1162.34521 1.53861 1159.68576
3 1996 11.52 101.5830869 1170.23716 1.25921 1159.07154 1.59461 1156.08130
4 1996 11.98 101.5830869 1216.96538 1.25566 1204.09825 1.58965 1200.65462
5 1996 12.37 101.5830869 1256.58278 1.30444 1241.99233 1.65094 1238.09009
6 1996 12.21 101.5830869 1240.32949 1.34549 1224.58227 1.70242 1220.37358
7 1996 11.60 101.5830869 1178.36381 1.32663 1162.07667 1.67805 1157.72682
8 1996 11.96 101.5830869 1214.93372 1.25892 1196.88220 1.59191 1192.06436
9 1996 12.68 101.5830869 1288.07354 1.29662 1267.63869 1.63913 1262.18830
10 1996 12.79 101.5830869 1299.24768 1.37328 1277.26228 1.73555 1271.40234
11 1996 13.55 101.5830869 1376.45083 1.38370 1351.77532 1.74822 1345.20265
12 1996 13.13 103.0686817 1353.29179 1.46442 1327.56703 1.84970 1320.71967
1 1997 13.64 103.0686817 1405.85682 1.43820 1377.69465 1.81603 1370.20349
2 1997 13.61 103.0686817 1402.76476 1.49250 1373.17203 1.88408 1365.30577
3 1997 12.86 103.0686817 1325.46325 1.48760 1296.01367 1.87734 1288.19115
4 1997 13.45 103.0686817 1386.27377 1.40401 1354.06907 1.77131 1345.52037
5 1997 14.38 103.0686817 1482.12764 1.46691 1446.22924 1.85014 1436.70622
6 1997 14.92 103.0686817 1537.78473 1.56675 1498.97152 1.97552 1488.68212
7 1997 16.03 103.0686817 1652.19097 1.62389 1608.86629 2.04699 1597.38829
8 1997 15.33 103.0686817 1580.04289 1.74294 1536.86718 2.19646 1525.43688
9 1997 16.12 103.0686817 1661.46715 1.66494 1614.40153 2.09753 1601.94960
10 1997 15.30 103.0686817 1576.95083 1.74893 1530.53043 2.20273 1518.25812
11 1997 15.76 103.0686817 1624.36242 1.65807 1574.88831 2.08766 1561.81744
12 1997 15.79 103.0686817 1627.45448 1.70613 1576.18006 2.14755 1562.64289
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 62.75%
GROSS ANNUAL RETURN = 20.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1576.18 1509.19
TOTAL RETURN 57.62% 50.92%
AVERAGE ANNUAL RETURN 19.26% 17.27%
WITH DEATH BENEFIT CHARGE
ERV 1562.64 1496.23
TOTAL RETURN 56.26% 49.62%
AVERAGE ANNUAL RETURN 18.86% 16.88%
MFS Value Series
12/1997
Assume ($10000 @ $10.00 on 8/14/1996)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
11/96 0.0538500000 10.59 0.508 100.508499
12/97 1.7629200000 11.43 15.502 116.010550
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.66 100.5084986 1071.42059 1000.00000 1000.00000
1 1997 10.96 100.5084986 1101.57314 1.08333 1027.05926 1.37503 1026.76756
2 1997 10.85 100.5084986 1090.51721 1.11265 1015.63853 1.41184 1015.05057
3 1997 10.50 100.5084986 1055.33924 1.10028 981.77572 1.39573 980.91127
4 1997 10.76 100.5084986 1081.47144 1.06359 1005.02277 1.34879 1003.85172
5 1997 11.46 100.5084986 1151.82739 1.08877 1069.31652 1.38033 1067.77773
6 1997 11.86 100.5084986 1192.03079 1.15843 1105.48153 1.46823 1103.57923
7 1997 12.66 100.5084986 1272.43759 1.19760 1178.85266 1.51746 1176.50219
8 1997 12.54 100.5084986 1260.37657 1.27709 1166.40161 1.61773 1163.73278
9 1997 13.11 100.5084986 1317.66642 1.26360 1218.15627 1.60017 1215.02955
10 1997 12.85 100.5084986 1291.53421 1.31967 1192.67789 1.67071 1189.26215
11 1997 13.30 100.5084986 1336.76303 1.29207 1233.15275 1.63528 1229.27419
12 1997 11.68 116.0105495 1355.00322 1.33592 1248.64326 1.69029 1244.35739
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.47%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1248.64 1174.35
TOTAL RETURN 24.86% 17.43%
WITH DEATH BENEFIT CHARGE
ERV 1244.36 1170.32
TOTAL RETURN 24.44% 17.03%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.66 100.5084986 1071.42059 1000.00000 1000.00000
1 1997 10.96 100.5084986 1101.57314 1.08333 1027.05926 1.37503 1026.76756
2 1997 10.85 100.5084986 1090.51721 1.11265 1015.63853 1.41184 1015.05057
3 1997 10.50 100.5084986 1055.33924 1.10028 981.77572 1.39573 980.91127
4 1997 10.76 100.5084986 1081.47144 1.06359 1005.02277 1.34879 1003.85172
5 1997 11.46 100.5084986 1151.82739 1.08877 1069.31652 1.38033 1067.77773
6 1997 11.86 100.5084986 1192.03079 1.15843 1105.48153 1.46823 1103.57923
7 1997 12.66 100.5084986 1272.43759 1.19760 1178.85266 1.51746 1176.50219
8 1997 12.54 100.5084986 1260.37657 1.27709 1166.40161 1.61773 1163.73278
9 1997 13.11 100.5084986 1317.66642 1.26360 1218.15627 1.60017 1215.02955
10 1997 12.85 100.5084986 1291.53421 1.31967 1192.67789 1.67071 1189.26215
11 1997 13.30 100.5084986 1336.76303 1.29207 1233.15275 1.63528 1229.27419
12 1997 11.68 116.0105495 1355.00322 1.33592 1248.64326 1.69029 1244.35739
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.47%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1248.64 1174.35
TOTAL RETURN 24.86% 17.43%
WITH DEATH BENEFIT CHARGE
ERV 1244.36 1170.32
TOTAL RETURN 24.44% 17.03%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
7 1996 10.00 100.0000000 1000.00000 1000.00000 1000.00000
8 1996 9.96 100.0000000 996.00000 1.08333 994.91667 1.37503 994.62497
9 1996 10.46 100.0000000 1046.00000 1.07783 1043.78446 1.36764 1043.18830
10 1996 10.37 100.0000000 1037.00000 1.13077 1033.67275 1.43442 1032.77807
11 1996 10.80 100.5084986 1085.49178 1.11981 1080.88914 1.42010 1079.65233
12 1996 10.66 100.5084986 1071.42059 1.17096 1065.70665 1.48456 1064.17228
1 1997 10.96 100.5084986 1101.57314 1.15452 1094.54388 1.46327 1092.65757
2 1997 10.85 100.5084986 1090.51721 1.18576 1082.37274 1.50244 1080.18867
3 1997 10.50 100.5084986 1055.33924 1.17257 1046.28492 1.48530 1043.85858
4 1997 10.76 100.5084986 1081.47144 1.13348 1071.05945 1.43534 1068.27117
5 1997 11.46 100.5084986 1151.82739 1.16031 1139.57772 1.46891 1136.29945
6 1997 11.86 100.5084986 1192.03079 1.23454 1178.11902 1.56245 1174.39842
7 1997 12.66 100.5084986 1272.43759 1.27630 1256.31112 1.61484 1252.00101
8 1997 12.54 100.5084986 1260.37657 1.36100 1243.04195 1.72154 1238.41216
9 1997 13.11 100.5084986 1317.66642 1.34663 1298.19723 1.70286 1293.00076
10 1997 12.85 100.5084986 1291.53421 1.40638 1271.04476 1.77792 1265.57981
11 1997 13.30 100.5084986 1336.76303 1.37697 1314.17909 1.74021 1308.15951
12 1997 11.68 116.0105495 1355.00322 1.42369 1330.68742 1.79876 1324.21064
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 35.50%
GROSS ANNUAL RETURN = 24.61%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1330.69 1262.82
TOTAL RETURN 33.07% 26.28%
AVERAGE ANNUAL RETURN 22.99% 18.41%
WITH DEATH BENEFIT CHARGE
ERV 1324.21 1256.68
TOTAL RETURN 32.42% 25.67%
AVERAGE ANNUAL RETURN 22.55% 17.99%
MFS World Government
12/1997
Assume ($10000 @ $10.00 on 6/14/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/94 0.2600000000 9.86 2.637 102.636917
12/95 1.0600000000 10.15 10.719 113.355649
4/97 0.2459000000 10.02 2.782 116.137501
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.58 113.3556490 1199.30277 1000.00000 1000.00000
1 1997 10.33 113.3556490 1170.96385 1.08333 975.28718 1.37503 974.99548
2 1997 10.33 113.3556490 1170.96385 1.05656 974.23062 1.34065 973.65483
3 1997 10.24 113.3556490 1160.76185 1.05542 964.68723 1.33881 963.83306
4 1997 9.87 116.1375007 1146.27713 1.04508 951.60418 1.32530 950.48045
5 1997 10.08 116.1375007 1170.66601 1.03090 970.82017 1.30694 969.39649
6 1997 10.15 116.1375007 1178.79563 1.05172 976.51026 1.33295 974.79546
7 1997 10.04 116.1375007 1166.02051 1.05789 964.86950 1.34038 962.89080
8 1997 10.06 116.1375007 1168.34326 1.04528 965.74628 1.32401 963.48490
9 1997 10.30 116.1375007 1196.21626 1.04623 987.73972 1.32482 985.14580
10 1997 10.41 116.1375007 1208.99138 1.07005 997.21835 1.35461 994.31217
11 1997 10.24 116.1375007 1189.24801 1.08032 979.85300 1.36721 976.70739
12 1997 10.21 116.1375007 1185.76388 1.06151 975.92083 1.34301 972.50293
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -1.13%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 975.92 917.85
TOTAL RETURN -2.41% -8.21%
WITH DEATH BENEFIT CHARGE
ERV 972.50 914.64
TOTAL RETURN -2.75% -8.54%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.58 113.3556490 1199.30277 1000.00000 1000.00000
1 1997 10.33 113.3556490 1170.96385 1.08333 975.28718 1.37503 974.99548
2 1997 10.33 113.3556490 1170.96385 1.05656 974.23062 1.34065 973.65483
3 1997 10.24 113.3556490 1160.76185 1.05542 964.68723 1.33881 963.83306
4 1997 9.87 116.1375007 1146.27713 1.04508 951.60418 1.32530 950.48045
5 1997 10.08 116.1375007 1170.66601 1.03090 970.82017 1.30694 969.39649
6 1997 10.15 116.1375007 1178.79563 1.05172 976.51026 1.33295 974.79546
7 1997 10.04 116.1375007 1166.02051 1.05789 964.86950 1.34038 962.89080
8 1997 10.06 116.1375007 1168.34326 1.04528 965.74628 1.32401 963.48490
9 1997 10.30 116.1375007 1196.21626 1.04623 987.73972 1.32482 985.14580
10 1997 10.41 116.1375007 1208.99138 1.07005 997.21835 1.35461 994.31217
11 1997 10.24 116.1375007 1189.24801 1.08032 979.85300 1.36721 976.70739
12 1997 10.21 116.1375007 1185.76388 1.06151 975.92083 1.34301 972.50293
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -1.13%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 975.92 917.85
TOTAL RETURN -2.41% -8.21%
WITH DEATH BENEFIT CHARGE
ERV 972.50 914.64
TOTAL RETURN -2.75% -8.54%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 9.82 102.6369168 1007.89452 1000.00000 1000.00000
1 1995 9.91 102.6369168 1017.13185 1.08333 1008.08164 1.37503 1007.78994
2 1995 10.12 102.6369168 1038.68560 1.09209 1028.35152 1.38574 1027.75998
3 1995 10.64 102.6369168 1092.05680 1.11405 1080.07767 1.41320 1079.15658
4 1995 10.69 102.6369168 1097.18864 1.17008 1083.98314 1.48388 1082.74393
5 1995 10.88 102.6369168 1116.68966 1.17432 1102.07513 1.48881 1100.49940
6 1995 10.91 102.6369168 1119.76876 1.19391 1103.92002 1.51322 1102.02064
7 1995 10.89 102.6369168 1117.71602 1.19591 1100.70042 1.51532 1098.48512
8 1995 10.73 102.6369168 1101.29412 1.19243 1083.33609 1.51045 1080.83531
9 1995 10.86 102.6369168 1114.63692 1.17361 1095.28771 1.48618 1092.44405
10 1995 11.02 102.6369168 1131.05882 1.18656 1110.23798 1.50215 1107.03685
11 1995 11.21 102.6369168 1150.55984 1.20276 1128.17726 1.52221 1124.60148
12 1995 10.17 113.3556490 1152.82695 1.22219 1129.17807 1.54636 1125.27108
1 1996 10.13 113.3556490 1148.29272 1.22328 1123.51359 1.54729 1119.29795
2 1996 9.95 113.3556490 1127.88871 1.21714 1102.33273 1.53907 1097.87007
3 1996 9.94 113.3556490 1126.75515 1.19419 1100.03066 1.50961 1095.25707
4 1996 10.01 113.3556490 1134.69005 1.19170 1106.58566 1.50601 1101.46413
5 1996 10.04 113.3556490 1138.09072 1.19880 1108.70330 1.51455 1103.25067
6 1996 10.10 113.3556490 1144.89206 1.20110 1114.12792 1.51701 1108.32680
7 1996 10.27 113.3556490 1164.16252 1.20697 1131.67360 1.52399 1125.45782
8 1996 10.29 113.3556490 1166.42963 1.22598 1132.65146 1.54754 1126.10202
9 1996 10.34 113.3556490 1172.09741 1.22704 1136.92807 1.54843 1130.02542
10 1996 10.52 113.3556490 1192.50143 1.23167 1155.48818 1.55382 1148.14322
11 1996 10.66 113.3556490 1208.37122 1.25178 1169.61363 1.57874 1161.84395
12 1996 10.58 113.3556490 1199.30277 1.26708 1159.56896 1.59757 1151.52710
1 1997 10.33 113.3556490 1170.96385 1.25620 1130.91273 1.58339 1122.73371
2 1997 10.33 113.3556490 1170.96385 1.22516 1129.68758 1.54380 1121.18992
3 1997 10.24 113.3556490 1160.76185 1.22383 1118.62136 1.54167 1109.87989
4 1997 9.87 116.1375007 1146.27713 1.21184 1103.45066 1.52612 1094.50399
5 1997 10.08 116.1375007 1170.66601 1.19540 1125.73293 1.50498 1116.28633
6 1997 10.15 116.1375007 1178.79563 1.21954 1132.33098 1.53493 1122.50339
7 1997 10.04 116.1375007 1166.02051 1.22669 1118.83272 1.54348 1108.79485
8 1997 10.06 116.1375007 1168.34326 1.21207 1119.84940 1.52463 1109.47897
9 1997 10.30 116.1375007 1196.21626 1.21317 1145.35232 1.52557 1134.42209
10 1997 10.41 116.1375007 1208.99138 1.24080 1156.34344 1.55987 1144.97740
11 1997 10.24 116.1375007 1189.24801 1.25271 1136.20712 1.57438 1124.70502
12 1997 10.21 116.1375007 1185.76388 1.23089 1131.64750 1.54651 1119.86348
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.65%
GROSS ANNUAL RETURN = 5.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1131.65 1083.55
TOTAL RETURN 13.16% 8.36%
AVERAGE ANNUAL RETURN 4.21% 2.71%
WITH DEATH BENEFIT CHARGE
ERV 1119.86 1072.27
TOTAL RETURN 11.99% 7.23%
AVERAGE ANNUAL RETURN 3.85% 2.35%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
5 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
6 1994 10.02 100.0000000 1002.00000 1.08333 1000.91667 1.37503 1000.62497
7 1994 9.92 100.0000000 992.00000 1.08433 989.84315 1.37589 989.26280
8 1994 9.90 100.0000000 990.00000 1.07233 986.77517 1.36027 985.90805
9 1994 9.94 100.0000000 994.00000 1.06901 989.69313 1.35566 988.53586
10 1994 10.16 100.0000000 1016.00000 1.07217 1010.52564 1.35927 1009.05565
11 1994 10.06 100.0000000 1006.00000 1.09474 999.48479 1.38749 997.73651
12 1994 9.82 102.6369168 1007.89452 1.08278 1000.28427 1.37192 998.24356
1 1995 9.91 102.6369168 1017.13185 1.08364 1008.36820 1.37262 1006.01981
2 1995 10.12 102.6369168 1038.68560 1.09240 1028.64385 1.38331 1025.95478
3 1995 10.64 102.6369168 1092.05680 1.11436 1080.38470 1.41072 1077.26110
4 1995 10.69 102.6369168 1097.18864 1.17042 1084.29128 1.48127 1080.84215
5 1995 10.88 102.6369168 1116.68966 1.17465 1102.38841 1.48619 1098.56643
6 1995 10.91 102.6369168 1119.76876 1.19425 1104.23383 1.51057 1100.08500
7 1995 10.89 102.6369168 1117.71602 1.19625 1101.01332 1.51265 1096.55569
8 1995 10.73 102.6369168 1101.29412 1.19276 1083.64405 1.50780 1078.93688
9 1995 10.86 102.6369168 1114.63692 1.17395 1095.59906 1.48357 1090.52524
10 1995 11.02 102.6369168 1131.05882 1.18690 1110.55358 1.49951 1105.09240
11 1995 11.21 102.6369168 1150.55984 1.20310 1128.49796 1.51954 1122.62618
12 1995 10.17 113.3556490 1152.82695 1.22254 1129.49906 1.54365 1123.29460
1 1996 10.13 113.3556490 1148.29272 1.22362 1123.83296 1.54457 1117.33196
2 1996 9.95 113.3556490 1127.88871 1.21749 1102.64609 1.53637 1095.94172
3 1996 9.94 113.3556490 1126.75515 1.19453 1100.34337 1.50696 1093.33331
4 1996 10.01 113.3556490 1134.69005 1.19204 1106.90023 1.50337 1099.52947
5 1996 10.04 113.3556490 1138.09072 1.19914 1109.01847 1.51189 1101.31288
6 1996 10.10 113.3556490 1144.89206 1.20144 1114.44463 1.51434 1106.38009
7 1996 10.27 113.3556490 1164.16252 1.20731 1131.99529 1.52131 1123.48101
8 1996 10.29 113.3556490 1166.42963 1.22633 1132.97344 1.54482 1124.12408
9 1996 10.34 113.3556490 1172.09741 1.22739 1137.25126 1.54571 1128.04059
10 1996 10.52 113.3556490 1192.50143 1.23202 1155.81665 1.55109 1146.12657
11 1996 10.66 113.3556490 1208.37122 1.25213 1169.94611 1.57596 1159.80324
12 1996 10.58 113.3556490 1199.30277 1.26744 1159.89858 1.59477 1149.50451
1 1997 10.33 113.3556490 1170.96385 1.25656 1131.23422 1.58061 1120.76169
2 1997 10.33 113.3556490 1170.96385 1.22550 1130.00871 1.54108 1119.22061
3 1997 10.24 113.3556490 1160.76185 1.22418 1118.93935 1.53897 1107.93045
4 1997 9.87 116.1375007 1146.27713 1.21218 1103.76434 1.52344 1092.58156
5 1997 10.08 116.1375007 1170.66601 1.19574 1126.05294 1.50234 1114.32564
6 1997 10.15 116.1375007 1178.79563 1.21989 1132.65286 1.53223 1120.53177
7 1997 10.04 116.1375007 1166.02051 1.22704 1119.15077 1.54077 1106.84731
8 1997 10.06 116.1375007 1168.34326 1.21241 1120.16774 1.52195 1107.53023
9 1997 10.30 116.1375007 1196.21626 1.21352 1145.67791 1.52289 1132.42954
10 1997 10.41 116.1375007 1208.99138 1.24115 1156.67215 1.55713 1142.96631
11 1997 10.24 116.1375007 1189.24801 1.25306 1136.53011 1.57162 1122.72954
12 1997 10.21 116.1375007 1185.76388 1.23124 1131.96919 1.54379 1117.89650
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.58%
GROSS ANNUAL RETURN = 4.92%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1131.97 1093.48
TOTAL RETURN 13.20% 9.35%
AVERAGE ANNUAL RETURN 3.56% 2.55%
WITH DEATH BENEFIT CHARGE
ERV 1117.90 1079.89
TOTAL RETURN 11.79% 7.99%
AVERAGE ANNUAL RETURN 3.19% 2.19%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.91 102.6369168 1119.76876 1000.00000 1000.00000
7 1995 10.89 102.6369168 1117.71602 1.08333 997.08349 1.37503 996.79179
8 1995 10.73 102.6369168 1101.29412 1.08017 981.35378 1.37062 980.77592
9 1995 10.86 102.6369168 1114.63692 1.06313 992.18031 1.34860 991.30998
10 1995 11.02 102.6369168 1131.05882 1.07486 1005.72320 1.36308 1004.55183
11 1995 11.21 102.6369168 1150.55984 1.08953 1021.97372 1.38129 1020.49039
12 1995 10.17 113.3556490 1152.82695 1.10714 1022.88033 1.40321 1021.09800
1 1996 10.13 113.3556490 1148.29272 1.10812 1017.74908 1.40404 1015.67784
2 1996 9.95 113.3556490 1127.88871 1.10256 998.56213 1.39659 996.23367
3 1996 9.94 113.3556490 1126.75515 1.08178 996.47677 1.36985 993.86257
4 1996 10.01 113.3556490 1134.69005 1.07952 1002.41470 1.36659 999.49501
5 1996 10.04 113.3556490 1138.09072 1.08595 1004.33299 1.37434 1001.11616
6 1996 10.10 113.3556490 1144.89206 1.08803 1009.24695 1.37657 1005.72236
7 1996 10.27 113.3556490 1164.16252 1.09335 1025.14093 1.38290 1021.26746
8 1996 10.29 113.3556490 1166.42963 1.11057 1026.02674 1.40428 1021.85202
9 1996 10.34 113.3556490 1172.09741 1.11153 1029.90076 1.40508 1025.41221
10 1996 10.52 113.3556490 1192.50143 1.11573 1046.71368 1.40998 1041.85273
11 1996 10.66 113.3556490 1208.37122 1.13394 1059.50939 1.43258 1054.28511
12 1996 10.58 113.3556490 1199.30277 1.14780 1050.41029 1.44968 1044.92335
1 1997 10.33 113.3556490 1170.96385 1.13794 1024.45169 1.43680 1018.79554
2 1997 10.33 113.3556490 1170.96385 1.10982 1023.34187 1.40088 1017.39466
3 1997 10.24 113.3556490 1160.76185 1.10862 1013.31739 1.39895 1007.13167
4 1997 9.87 116.1375007 1146.27713 1.09776 999.57482 1.38484 993.17921
5 1997 10.08 116.1375007 1170.66601 1.08287 1019.75950 1.36565 1012.94503
6 1997 10.15 116.1375007 1178.79563 1.10474 1025.73642 1.39283 1018.58654
7 1997 10.04 116.1375007 1166.02051 1.11121 1013.50885 1.40059 1006.14708
8 1997 10.06 116.1375007 1168.34326 1.09797 1014.42983 1.38349 1006.76787
9 1997 10.30 116.1375007 1196.21626 1.09897 1037.53197 1.38434 1029.40185
10 1997 10.41 116.1375007 1208.99138 1.12399 1047.48842 1.41546 1038.98000
11 1997 10.24 116.1375007 1189.24801 1.13478 1029.24768 1.42863 1020.58436
12 1997 10.21 116.1375007 1185.76388 1.11502 1025.11729 1.40334 1016.19102
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 5.89%
GROSS ANNUAL RETURN = 2.24%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1025.12 981.55
TOTAL RETURN 2.51% -1.85%
AVERAGE ANNUAL RETURN 0.96% -0.72%
WITH DEATH BENEFIT CHARGE
ERV 1016.19 973.00
TOTAL RETURN 1.62% -2.70%
AVERAGE ANNUAL RETURN 0.62% -1.05%
Morgan Stanley Emerging Markets
12/1997
Assume ($10000 @ $10.00 on 10/ 1/1996)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/96 0.0171000000 9.76 0.175 100.175205
12/97 0.3656000000 9.07 4.038 104.213138
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 9.78 100.1752049 979.71350 1000.00000 1000.00000
1 1997 10.60 100.1752049 1061.85717 1.08333 1082.76125 1.37503 1082.46955
2 1997 10.94 100.1752049 1095.91674 1.17299 1116.31833 1.48843 1115.70184
3 1997 10.57 100.1752049 1058.85192 1.20934 1077.35416 1.53413 1076.43374
4 1997 10.83 100.1752049 1084.89747 1.16713 1102.68770 1.48013 1101.43163
5 1997 11.26 100.1752049 1127.97281 1.19458 1145.27481 1.51451 1143.64895
6 1997 12.20 100.1752049 1222.13750 1.24071 1239.64319 1.57256 1237.54975
7 1997 12.83 100.1752049 1285.24788 1.34295 1302.31460 1.70167 1299.75433
8 1997 11.64 100.1752049 1166.03939 1.41084 1180.11230 1.78721 1177.41314
9 1997 12.05 100.1752049 1207.11122 1.27845 1220.40138 1.61898 1217.26662
10 1997 10.21 100.1752049 1022.78884 1.32210 1032.72753 1.67378 1029.71976
11 1997 9.87 100.1752049 988.72927 1.11879 997.21821 1.41590 994.01348
12 1997 9.45 104.2131382 984.81416 1.08032 992.18916 1.36680 988.71064
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 0.52%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 992.19 933.15
TOTAL RETURN -0.78% -6.68%
WITH DEATH BENEFIT CHARGE
ERV 988.71 929.88
TOTAL RETURN -1.13% -7.01%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 9.78 100.1752049 979.71350 1000.00000 1000.00000
1 1997 10.60 100.1752049 1061.85717 1.08333 1082.76125 1.37503 1082.46955
2 1997 10.94 100.1752049 1095.91674 1.17299 1116.31833 1.48843 1115.70184
3 1997 10.57 100.1752049 1058.85192 1.20934 1077.35416 1.53413 1076.43374
4 1997 10.83 100.1752049 1084.89747 1.16713 1102.68770 1.48013 1101.43163
5 1997 11.26 100.1752049 1127.97281 1.19458 1145.27481 1.51451 1143.64895
6 1997 12.20 100.1752049 1222.13750 1.24071 1239.64319 1.57256 1237.54975
7 1997 12.83 100.1752049 1285.24788 1.34295 1302.31460 1.70167 1299.75433
8 1997 11.64 100.1752049 1166.03939 1.41084 1180.11230 1.78721 1177.41314
9 1997 12.05 100.1752049 1207.11122 1.27845 1220.40138 1.61898 1217.26662
10 1997 10.21 100.1752049 1022.78884 1.32210 1032.72753 1.67378 1029.71976
11 1997 9.87 100.1752049 988.72927 1.11879 997.21821 1.41590 994.01348
12 1997 9.45 104.2131382 984.81416 1.08032 992.18916 1.36680 988.71064
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 0.52%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 992.19 933.15
TOTAL RETURN -0.78% -6.68%
WITH DEATH BENEFIT CHARGE
ERV 988.71 929.88
TOTAL RETURN -1.13% -7.01%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
9 1996 10.00 100.0000000 1000.00000 1000.00000 1000.00000
10 1996 9.57 100.0000000 957.00000 1.08333 955.91667 1.37503 955.62497
11 1996 9.69 100.0000000 969.00000 1.03558 966.86751 1.31402 966.29371
12 1996 9.78 100.1752049 979.71350 1.04744 976.50999 1.32869 975.64861
1 1997 10.60 100.1752049 1061.85717 1.05789 1057.32718 1.34155 1056.10990
2 1997 10.94 100.1752049 1095.91674 1.14544 1090.09601 1.45219 1088.53294
3 1997 10.57 100.1752049 1058.85192 1.18094 1052.04711 1.49677 1050.22107
4 1997 10.83 100.1752049 1084.89747 1.13972 1076.78556 1.44409 1074.61024
5 1997 11.26 100.1752049 1127.97281 1.16652 1118.37230 1.47762 1115.79950
6 1997 12.20 100.1752049 1222.13750 1.21157 1210.52396 1.53426 1207.41369
7 1997 12.83 100.1752049 1285.24788 1.31140 1271.72322 1.66023 1268.10350
8 1997 11.64 100.1752049 1166.03939 1.37770 1152.39146 1.74368 1148.74149
9 1997 12.05 100.1752049 1207.11122 1.24842 1191.73414 1.57956 1187.62448
10 1997 10.21 100.1752049 1022.78884 1.29105 1008.46876 1.63302 1004.64464
11 1997 9.87 100.1752049 988.72927 1.09251 973.79355 1.38142 969.80787
12 1997 9.45 104.2131382 984.81416 1.05494 968.88263 1.33352 964.63416
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -1.52%
GROSS ANNUAL RETURN = -1.22%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 968.88 919.47
TOTAL RETURN -3.11% -8.05%
AVERAGE ANNUAL RETURN -2.50% -6.50%
WITH DEATH BENEFIT CHARGE
ERV 964.63 915.44
TOTAL RETURN -3.54% -8.46%
AVERAGE ANNUAL RETURN -2.84% -6.83%
Morgan Stanley Fixed Income
12/1997
Assume ($10000 @ $10.00 on 1/ 2/1997)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/97 0.5830000000 10.41 5.600 105.600384
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1997 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
2 1997 10.11 100.0000000 1011.00000 1.08974 1008.82262 1.38277 1008.23674
3 1997 9.99 100.0000000 999.00000 1.09289 995.75557 1.38636 994.88318
4 1997 10.13 100.0000000 1013.00000 1.07874 1008.63137 1.36800 1007.45749
5 1997 10.22 100.0000000 1022.00000 1.09268 1016.49987 1.38529 1015.02296
6 1997 10.35 100.0000000 1035.00000 1.10121 1028.32870 1.39569 1026.53852
7 1997 10.63 100.0000000 1063.00000 1.11402 1055.03420 1.41152 1052.89808
8 1997 10.53 100.0000000 1053.00000 1.14295 1043.96618 1.44777 1041.54534
9 1997 10.69 100.0000000 1069.00000 1.13096 1058.69796 1.43216 1055.93913
10 1997 10.82 100.0000000 1082.00000 1.14692 1070.42575 1.45195 1067.32835
11 1997 10.89 100.0000000 1089.00000 1.15963 1076.19124 1.46761 1072.76582
12 1997 10.41 105.6003842 1099.30000 1.16587 1085.20422 1.47509 1081.43719
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1085.20 1020.63
TOTAL RETURN 8.52% 2.06%
WITH DEATH BENEFIT CHARGE
ERV 1081.44 1017.09
TOTAL RETURN 8.14% 1.71%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1997 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
2 1997 10.11 100.0000000 1011.00000 1.08974 1008.82262 1.38277 1008.23674
3 1997 9.99 100.0000000 999.00000 1.09289 995.75557 1.38636 994.88318
4 1997 10.13 100.0000000 1013.00000 1.07874 1008.63137 1.36800 1007.45749
5 1997 10.22 100.0000000 1022.00000 1.09268 1016.49987 1.38529 1015.02296
6 1997 10.35 100.0000000 1035.00000 1.10121 1028.32870 1.39569 1026.53852
7 1997 10.63 100.0000000 1063.00000 1.11402 1055.03420 1.41152 1052.89808
8 1997 10.53 100.0000000 1053.00000 1.14295 1043.96618 1.44777 1041.54534
9 1997 10.69 100.0000000 1069.00000 1.13096 1058.69796 1.43216 1055.93913
10 1997 10.82 100.0000000 1082.00000 1.14692 1070.42575 1.45195 1067.32835
11 1997 10.89 100.0000000 1089.00000 1.15963 1076.19124 1.46761 1072.76582
12 1997 10.41 105.6003842 1099.30000 1.16587 1085.20422 1.47509 1081.43719
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1085.20 1020.63
TOTAL RETURN 8.52% 2.06%
WITH DEATH BENEFIT CHARGE
ERV 1081.44 1017.09
TOTAL RETURN 8.14% 1.71%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1997 10.07 100.0000000 1007.00000 1.08333 1005.91667 1.37503 1005.62497
2 1997 10.11 100.0000000 1011.00000 1.08974 1008.82262 1.38277 1008.23674
3 1997 9.99 100.0000000 999.00000 1.09289 995.75557 1.38636 994.88318
4 1997 10.13 100.0000000 1013.00000 1.07874 1008.63137 1.36800 1007.45749
5 1997 10.22 100.0000000 1022.00000 1.09268 1016.49987 1.38529 1015.02296
6 1997 10.35 100.0000000 1035.00000 1.10121 1028.32870 1.39569 1026.53852
7 1997 10.63 100.0000000 1063.00000 1.11402 1055.03420 1.41152 1052.89808
8 1997 10.53 100.0000000 1053.00000 1.14295 1043.96618 1.44777 1041.54534
9 1997 10.69 100.0000000 1069.00000 1.13096 1058.69796 1.43216 1055.93913
10 1997 10.82 100.0000000 1082.00000 1.14692 1070.42575 1.45195 1067.32835
11 1997 10.89 100.0000000 1089.00000 1.15963 1076.19124 1.46761 1072.76582
12 1997 10.41 105.6003842 1099.30000 1.16587 1085.20422 1.47509 1081.43719
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1085.20 1020.63
TOTAL RETURN 8.52% 2.06%
WITH DEATH BENEFIT CHARGE
ERV 1081.44 1017.09
TOTAL RETURN 8.14% 1.71%
Pioneer Capital Growth
12/1997
Assume ($10000 @ $10.00 on 3/ 1/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/95 0.1475000000 11.57 1.275 101.274849
6/96 0.0729000000 13.29 0.556 101.830374
12/96 0.1855000000 13.05 1.447 103.277848
6/97 0.1139000000 15.09 0.780 104.057394
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.05 103.2778483 1347.77592 1000.00000 1000.00000
1 1997 13.77 103.2778483 1422.13597 1.08333 1054.08908 1.37503 1053.79738
2 1997 13.92 103.2778483 1437.62765 1.14193 1064.42960 1.44901 1063.82765
3 1997 13.82 103.2778483 1427.29986 1.15313 1055.62971 1.46280 1054.72241
4 1997 13.60 103.2778483 1404.57874 1.14360 1037.68158 1.45028 1036.48205
5 1997 14.71 103.2778483 1519.21715 1.12416 1121.25056 1.42520 1119.65208
6 1997 14.94 104.0573942 1554.61747 1.21469 1146.16290 1.53956 1144.20230
7 1997 15.81 104.0573942 1645.14740 1.24168 1211.66565 1.57332 1209.25924
8 1997 16.14 104.0573942 1679.48634 1.31264 1235.64394 1.66277 1232.83717
9 1997 16.88 104.0573942 1756.48881 1.33861 1290.95815 1.69519 1287.66611
10 1997 15.98 104.0573942 1662.83716 1.39854 1220.72890 1.77058 1217.24035
11 1997 16.03 104.0573942 1668.04003 1.32246 1223.22600 1.67375 1219.37524
12 1997 16.15 104.0573942 1680.52692 1.32516 1231.05786 1.67668 1226.82675
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 24.69%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1231.06 1157.81
TOTAL RETURN 23.11% 15.78%
WITH DEATH BENEFIT CHARGE
ERV 1226.83 1153.83
TOTAL RETURN 22.68% 15.38%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.05 103.2778483 1347.77592 1000.00000 1000.00000
1 1997 13.77 103.2778483 1422.13597 1.08333 1054.08908 1.37503 1053.79738
2 1997 13.92 103.2778483 1437.62765 1.14193 1064.42960 1.44901 1063.82765
3 1997 13.82 103.2778483 1427.29986 1.15313 1055.62971 1.46280 1054.72241
4 1997 13.60 103.2778483 1404.57874 1.14360 1037.68158 1.45028 1036.48205
5 1997 14.71 103.2778483 1519.21715 1.12416 1121.25056 1.42520 1119.65208
6 1997 14.94 104.0573942 1554.61747 1.21469 1146.16290 1.53956 1144.20230
7 1997 15.81 104.0573942 1645.14740 1.24168 1211.66565 1.57332 1209.25924
8 1997 16.14 104.0573942 1679.48634 1.31264 1235.64394 1.66277 1232.83717
9 1997 16.88 104.0573942 1756.48881 1.33861 1290.95815 1.69519 1287.66611
10 1997 15.98 104.0573942 1662.83716 1.39854 1220.72890 1.77058 1217.24035
11 1997 16.03 104.0573942 1668.04003 1.32246 1223.22600 1.67375 1219.37524
12 1997 16.15 104.0573942 1680.52692 1.32516 1231.05786 1.67668 1226.82675
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 24.69%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1231.06 1157.81
TOTAL RETURN 23.11% 15.78%
WITH DEATH BENEFIT CHARGE
ERV 1226.83 1153.83
TOTAL RETURN 22.68% 15.38%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
2 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
3 1995 9.91 100.0000000 991.00000 1.08333 989.91667 1.37503 989.62497
4 1995 10.07 100.0000000 1007.00000 1.07241 1004.82677 1.36077 1004.24200
5 1995 10.13 100.0000000 1013.00000 1.08856 1009.72526 1.38087 1008.84470
6 1995 10.65 100.0000000 1065.00000 1.09387 1060.46328 1.38720 1059.24420
7 1995 11.46 100.0000000 1146.00000 1.14884 1139.96940 1.45650 1138.34994
8 1995 11.80 100.0000000 1180.00000 1.23497 1172.55552 1.56527 1170.55771
9 1995 11.98 100.0000000 1198.00000 1.27027 1189.17169 1.60956 1186.80412
10 1995 11.60 100.0000000 1160.00000 1.28827 1150.16345 1.63190 1147.52735
11 1995 11.84 100.0000000 1184.00000 1.24601 1172.71393 1.57789 1169.69141
12 1995 11.57 101.2748487 1171.75000 1.27044 1159.31025 1.60836 1155.98108
1 1996 11.83 101.2748487 1198.08146 1.25592 1184.10625 1.58951 1180.36867
2 1996 11.87 101.2748487 1202.13245 1.28278 1186.82721 1.62305 1182.73673
3 1996 12.47 101.2748487 1262.89736 1.28573 1245.53275 1.62630 1240.89493
4 1996 13.21 101.2748487 1337.84075 1.34933 1318.09635 1.70627 1312.82637
5 1996 13.74 101.2748487 1391.51642 1.42794 1369.55191 1.80518 1363.69325
6 1996 13.29 101.8303744 1353.32568 1.48368 1330.48031 1.87512 1324.39100
7 1996 12.20 101.8303744 1242.33057 1.44135 1219.91755 1.82108 1213.94793
8 1996 12.71 101.8303744 1294.26406 1.32158 1269.59252 1.66922 1263.02572
9 1996 12.91 101.8303744 1314.63013 1.37539 1288.19498 1.73670 1281.16354
10 1996 12.75 101.8303744 1298.33727 1.39554 1270.83420 1.76164 1263.52380
11 1996 13.13 101.8303744 1337.03282 1.37674 1307.33331 1.73739 1299.44438
12 1996 13.05 103.2778483 1347.77592 1.41628 1316.42150 1.78678 1308.09868
1 1997 13.77 103.2778483 1422.13597 1.42612 1387.62553 1.79868 1378.47096
2 1997 13.92 103.2778483 1437.62765 1.50326 1401.23801 1.89544 1391.59154
3 1997 13.82 103.2778483 1427.29986 1.51801 1389.65364 1.91348 1379.68099
4 1997 13.60 103.2778483 1404.57874 1.50546 1366.02635 1.89711 1355.82080
5 1997 14.71 103.2778483 1519.21715 1.47986 1476.03834 1.86430 1464.61541
6 1997 14.94 104.0573942 1554.61747 1.59904 1508.83348 2.01389 1496.72952
7 1997 15.81 104.0573942 1645.14740 1.63457 1595.06271 2.05805 1581.83041
8 1997 16.14 104.0573942 1679.48634 1.72798 1626.62825 2.17507 1612.67268
9 1997 16.88 104.0573942 1756.48881 1.76218 1699.44506 2.21748 1684.39434
10 1997 15.98 104.0573942 1662.83716 1.84107 1606.99377 2.31610 1592.27049
11 1997 16.03 104.0573942 1668.04003 1.74091 1610.28100 2.18942 1595.06314
12 1997 16.15 104.0573942 1680.52692 1.74447 1620.59104 2.19326 1604.81046
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.05%
GROSS ANNUAL RETURN = 20.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1620.59 1551.72
TOTAL RETURN 62.06% 55.17%
AVERAGE ANNUAL RETURN 18.56% 16.76%
WITH DEATH BENEFIT CHARGE
ERV 1604.81 1536.61
TOTAL RETURN 60.48% 53.66%
AVERAGE ANNUAL RETURN 18.15% 16.36%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.65 100.0000000 1065.00000 1000.00000 1000.00000
7 1995 11.46 100.0000000 1146.00000 1.08333 1074.97300 1.37503 1074.68130
8 1995 11.80 100.0000000 1180.00000 1.16455 1105.70119 1.47772 1105.08767
9 1995 11.98 100.0000000 1198.00000 1.19784 1121.36998 1.51953 1120.42541
10 1995 11.60 100.0000000 1160.00000 1.21482 1084.58583 1.54062 1083.34541
11 1995 11.84 100.0000000 1184.00000 1.17497 1105.85057 1.48964 1104.26982
12 1995 11.57 101.2748487 1171.75000 1.19800 1093.21112 1.51841 1091.32632
1 1996 11.83 101.2748487 1198.08146 1.18431 1116.59335 1.50061 1114.34990
2 1996 11.87 101.2748487 1202.13245 1.20964 1119.15917 1.53227 1116.58551
3 1996 12.47 101.2748487 1262.89736 1.21242 1174.51756 1.53534 1171.49089
4 1996 13.21 101.2748487 1337.84075 1.27239 1242.94388 1.61084 1239.39915
5 1996 13.74 101.2748487 1391.51642 1.34652 1291.46566 1.70422 1287.42102
6 1996 13.29 101.8303744 1353.32568 1.39909 1254.62176 1.77025 1250.31697
7 1996 12.20 101.8303744 1242.33057 1.35917 1150.36283 1.71923 1146.05105
8 1996 12.71 101.8303744 1294.26406 1.24623 1197.20554 1.57586 1192.38389
9 1996 12.91 101.8303744 1314.63013 1.29697 1214.74737 1.63957 1209.50724
10 1996 12.75 101.8303744 1298.33727 1.31598 1198.37643 1.66311 1192.85411
11 1996 13.13 101.8303744 1337.03282 1.29824 1232.79450 1.64021 1226.76563
12 1996 13.05 103.2778483 1347.77592 1.33553 1241.36452 1.68684 1234.93589
1 1997 13.77 103.2778483 1422.13597 1.34481 1308.50879 1.69808 1301.37220
2 1997 13.92 103.2778483 1437.62765 1.41755 1321.34515 1.78943 1313.75894
3 1997 13.82 103.2778483 1427.29986 1.43146 1310.42127 1.80646 1302.51456
4 1997 13.60 103.2778483 1404.57874 1.41962 1288.14110 1.79100 1279.98888
5 1997 14.71 103.2778483 1519.21715 1.39549 1391.88066 1.76003 1382.69853
6 1997 14.94 104.0573942 1554.61747 1.50787 1422.80596 1.90126 1413.01648
7 1997 15.81 104.0573942 1645.14740 1.54137 1504.11875 1.94294 1493.35763
8 1997 16.14 104.0573942 1679.48634 1.62946 1533.88455 2.05342 1522.47487
9 1997 16.88 104.0573942 1756.48881 1.66171 1602.54965 2.09345 1590.18509
10 1997 15.98 104.0573942 1662.83716 1.73610 1515.36955 2.18656 1503.21379
11 1997 16.03 104.0573942 1668.04003 1.64165 1518.46936 2.06697 1505.85024
12 1997 16.15 104.0573942 1680.52692 1.64501 1528.19156 2.07059 1515.05239
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 57.80%
GROSS ANNUAL RETURN = 19.31%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1528.19 1463.24
TOTAL RETURN 52.82% 46.32%
AVERAGE ANNUAL RETURN 17.84% 15.87%
WITH DEATH BENEFIT CHARGE
ERV 1515.05 1450.66
TOTAL RETURN 51.51% 45.07%
AVERAGE ANNUAL RETURN 17.45% 15.49%
Pioneer Real Estate
12/1997
Assume ($10000 @ $10.00 on 3/ 1/1995)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
6/95 0.1500000000 10.57 1.419 101.419111
9/95 0.1700000000 11.15 1.546 102.965411
12/95 0.1252000000 11.23 1.148 104.113342
3/96 0.1500000000 11.39 1.371 105.484458
6/96 0.1600000000 11.51 1.466 106.950792
9/96 0.1400000000 12.52 1.196 108.146728
12/96 0.1987000000 14.46 1.486 109.632810
3/97 0.1300000000 14.61 0.976 110.608325
6/97 0.1200000000 14.88 0.892 111.500327
7/97 0.0270000000 15.70 0.192 111.692079
9/97 0.1200000000 16.59 0.808 112.499979
12/97 0.1703000000 16.29 1.176 113.676084
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 14.46 109.6328103 1585.29044 1000.00000 1000.00000
1 1997 14.68 109.6328103 1609.40966 1.08333 1014.13105 1.37503 1013.83935
2 1997 14.68 109.6328103 1609.40966 1.09864 1013.03241 1.39406 1012.44529
3 1997 14.61 110.6083247 1615.98762 1.09745 1016.07542 1.39215 1015.19120
4 1997 13.98 110.6083247 1546.30438 1.10075 971.16033 1.39592 970.01907
5 1997 14.44 110.6083247 1597.18421 1.05209 1002.06344 1.33381 1000.60291
6 1997 15.09 111.5003273 1682.53994 1.08557 1054.52953 1.37586 1052.70065
7 1997 15.89 111.6920795 1774.78714 1.14241 1111.20293 1.44750 1108.96869
8 1997 15.74 111.6920795 1758.03333 1.20380 1099.50948 1.52487 1096.97527
9 1997 17.17 112.4999788 1931.62464 1.19114 1206.88584 1.50838 1203.78416
10 1997 16.56 112.4999788 1862.99965 1.30746 1162.70125 1.65524 1159.36197
11 1997 16.54 112.4999788 1860.74965 1.25959 1160.03743 1.59416 1156.36762
12 1997 16.90 113.6760836 1921.12581 1.25671 1196.42072 1.59004 1192.29849
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1196.42 1125.23
TOTAL RETURN 19.64% 12.52%
WITH DEATH BENEFIT CHARGE
ERV 1192.30 1121.36
TOTAL RETURN 19.23% 12.14%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 14.46 109.6328103 1585.29044 1000.00000 1000.00000
1 1997 14.68 109.6328103 1609.40966 1.08333 1014.13105 1.37503 1013.83935
2 1997 14.68 109.6328103 1609.40966 1.09864 1013.03241 1.39406 1012.44529
3 1997 14.61 110.6083247 1615.98762 1.09745 1016.07542 1.39215 1015.19120
4 1997 13.98 110.6083247 1546.30438 1.10075 971.16033 1.39592 970.01907
5 1997 14.44 110.6083247 1597.18421 1.05209 1002.06344 1.33381 1000.60291
6 1997 15.09 111.5003273 1682.53994 1.08557 1054.52953 1.37586 1052.70065
7 1997 15.89 111.6920795 1774.78714 1.14241 1111.20293 1.44750 1108.96869
8 1997 15.74 111.6920795 1758.03333 1.20380 1099.50948 1.52487 1096.97527
9 1997 17.17 112.4999788 1931.62464 1.19114 1206.88584 1.50838 1203.78416
10 1997 16.56 112.4999788 1862.99965 1.30746 1162.70125 1.65524 1159.36197
11 1997 16.54 112.4999788 1860.74965 1.25959 1160.03743 1.59416 1156.36762
12 1997 16.90 113.6760836 1921.12581 1.25671 1196.42072 1.59004 1192.29849
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1196.42 1125.23
TOTAL RETURN 19.64% 12.52%
WITH DEATH BENEFIT CHARGE
ERV 1192.30 1121.36
TOTAL RETURN 19.23% 12.14%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
2 1995 10.00 100.0000000 1000.00000 1000.00000 1000.00000
3 1995 10.00 100.0000000 1000.00000 1.08333 998.91667 1.37503 998.62497
4 1995 9.83 100.0000000 983.00000 1.08216 980.85292 1.37314 980.27520
5 1995 10.35 100.0000000 1035.00000 1.06259 1031.67675 1.34791 1030.78315
6 1995 10.57 101.4191107 1072.00000 1.11765 1067.44030 1.41736 1066.21504
7 1995 10.90 101.4191107 1105.46831 1.15639 1099.60986 1.46608 1098.03666
8 1995 11.06 101.4191107 1121.69536 1.19124 1114.55968 1.50984 1112.64479
9 1995 11.15 102.9654110 1148.06433 1.20744 1139.55346 1.52992 1137.27107
10 1995 10.77 102.9654110 1108.93748 1.23452 1099.48214 1.56379 1096.94827
11 1995 10.79 102.9654110 1110.99679 1.19111 1100.33279 1.50834 1097.47698
12 1995 11.23 104.1133424 1169.19284 1.19203 1156.77821 1.50907 1153.45577
1 1996 11.34 104.1133424 1180.64530 1.25318 1166.85590 1.58604 1163.16805
2 1996 11.54 104.1133424 1201.46797 1.26409 1186.17127 1.59939 1182.08308
3 1996 11.39 105.4844576 1201.46797 1.28502 1184.88626 1.62540 1180.45768
4 1996 11.36 105.4844576 1198.30344 1.28363 1180.48177 1.62317 1175.72531
5 1996 11.59 105.4844576 1222.56486 1.27886 1203.10351 1.61666 1197.91295
6 1996 11.51 106.9507923 1231.00362 1.30336 1210.10458 1.64717 1204.53437
7 1996 11.68 106.9507923 1249.18525 1.31095 1226.66659 1.65627 1220.66879
8 1996 12.27 106.9507923 1312.28622 1.32889 1287.30117 1.67846 1280.65083
9 1996 12.52 108.1467277 1353.99703 1.39458 1326.82326 1.76094 1319.59517
10 1996 12.79 108.1467277 1383.19665 1.43739 1353.99946 1.81449 1346.23841
11 1996 13.29 108.1467277 1437.27001 1.46683 1405.46459 1.85112 1397.01584
12 1996 14.46 109.6328103 1585.29044 1.52259 1548.68688 1.92094 1538.96966
1 1997 14.68 109.6328103 1609.40966 1.67774 1570.57145 2.11613 1560.26800
2 1997 14.68 109.6328103 1609.40966 1.70145 1568.87000 2.14542 1558.12258
3 1997 14.61 110.6083247 1615.98762 1.69961 1573.58266 2.14247 1562.34845
4 1997 13.98 110.6083247 1546.30438 1.70471 1504.02326 2.14828 1492.82991
5 1997 14.44 110.6083247 1597.18421 1.62936 1551.88250 2.05269 1539.89752
6 1997 15.09 111.5003273 1682.53994 1.68121 1633.13604 2.11741 1620.07436
7 1997 15.89 111.6920795 1774.78714 1.76923 1720.90539 2.22766 1706.66916
8 1997 15.74 111.6920795 1758.03333 1.86431 1702.79590 2.34673 1688.21165
9 1997 17.17 112.4999788 1931.62464 1.84470 1869.08827 2.32135 1852.58729
10 1997 16.56 112.4999788 1862.99965 2.02485 1800.66017 2.54737 1784.22290
11 1997 16.54 112.4999788 1860.74965 1.95072 1796.53474 2.45337 1779.61467
12 1997 16.90 113.6760836 1921.12581 1.94625 1852.88107 2.44703 1834.91120
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 92.11%
GROSS ANNUAL RETURN = 25.89%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1852.88 1774.13
TOTAL RETURN 85.29% 77.41%
AVERAGE ANNUAL RETURN 24.30% 22.41%
WITH DEATH BENEFIT CHARGE
ERV 1834.91 1756.93
TOTAL RETURN 83.49% 75.69%
AVERAGE ANNUAL RETURN 23.87% 21.99%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.57 101.4191107 1072.00000 1000.00000 1000.00000
7 1995 10.90 101.4191107 1105.46831 1.08333 1030.13710 1.37503 1029.84540
8 1995 11.06 101.4191107 1121.69536 1.11598 1044.14240 1.41607 1043.54633
9 1995 11.15 102.9654110 1148.06433 1.13115 1067.55709 1.43491 1066.64325
10 1995 10.77 102.9654110 1108.93748 1.15652 1030.01746 1.46667 1028.82461
11 1995 10.79 102.9654110 1110.99679 1.11585 1030.81436 1.41467 1029.32048
12 1995 11.23 104.1133424 1169.19284 1.11672 1083.69359 1.41535 1081.82282
1 1996 11.34 104.1133424 1180.64530 1.17400 1093.13457 1.48754 1090.93194
2 1996 11.54 104.1133424 1201.46797 1.18423 1111.22961 1.50007 1108.67230
3 1996 11.39 105.4844576 1201.46797 1.20383 1110.02578 1.52446 1107.14784
4 1996 11.36 105.4844576 1198.30344 1.20253 1105.89957 1.52237 1102.70937
5 1996 11.59 105.4844576 1222.56486 1.19806 1127.09208 1.51626 1123.51909
6 1996 11.51 106.9507923 1231.00362 1.22102 1133.65082 1.54488 1129.72930
7 1996 11.68 106.9507923 1249.18525 1.22812 1149.16646 1.55342 1144.86172
8 1996 12.27 106.9507923 1312.28622 1.24493 1205.97018 1.57422 1201.11870
9 1996 12.52 108.1467277 1353.99703 1.30647 1242.99528 1.65158 1237.64449
10 1996 12.79 108.1467277 1383.19665 1.34658 1268.45451 1.70180 1262.63310
11 1996 13.29 108.1467277 1437.27001 1.37416 1316.66809 1.73616 1310.25711
12 1996 14.46 109.6328103 1585.29044 1.42639 1450.84167 1.80165 1443.39519
1 1997 14.68 109.6328103 1609.40966 1.57175 1471.34359 1.98472 1463.37084
2 1997 14.68 109.6328103 1609.40966 1.59396 1469.74964 2.01218 1461.35865
3 1997 14.61 110.6083247 1615.98762 1.59223 1474.16456 2.00942 1465.32209
4 1997 13.98 110.6083247 1546.30438 1.59701 1408.99988 2.01487 1400.12085
5 1997 14.44 110.6083247 1597.18421 1.52642 1453.83540 1.92521 1444.26543
6 1997 15.09 111.5003273 1682.53994 1.57499 1529.95539 1.98591 1519.46305
7 1997 15.89 111.6920795 1774.78714 1.65745 1612.17951 2.08931 1600.68006
8 1997 15.74 111.6920795 1758.03333 1.74653 1595.21417 2.20099 1583.36882
9 1997 17.17 112.4999788 1931.62464 1.72815 1751.00028 2.17718 1737.53626
10 1997 16.56 112.4999788 1862.99965 1.89692 1686.89543 2.38917 1673.41749
11 1997 16.54 112.4999788 1860.74965 1.82747 1683.03065 2.30100 1669.09545
12 1997 16.90 113.6760836 1921.12581 1.82328 1735.81704 2.29506 1720.95791
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 79.21%
GROSS ANNUAL RETURN = 25.33%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1735.82 1662.04
TOTAL RETURN 73.58% 66.20%
AVERAGE ANNUAL RETURN 23.79% 21.73%
WITH DEATH BENEFIT CHARGE
ERV 1720.96 1647.82
TOTAL RETURN 72.10% 64.78%
AVERAGE ANNUAL RETURN 23.38% 21.33%
Scudder International
12/1997
Assume ($10000 @ $10.00 on 5/ 1/1987)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
12/87 0.1020000000 5.26 1.939 101.939163
1/90 0.0350000000 8.34 0.428 102.366966
2/91 0.2000000000 8.44 2.426 104.792723
2/92 0.0900000000 8.23 1.146 105.938695
2/93 0.2550000000 8.12 3.327 109.265587
2/94 0.0700000000 11.01 0.695 109.960282
2/95 0.0500000000 10.18 0.540 110.500362
2/96 0.2750000000 11.89 2.556 113.056090
4/96 0.0100000000 12.52 0.090 113.146390
2/97 0.3200000000 13.23 2.737 115.883113
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.25 113.1463899 1499.18967 1000.00000 1000.00000
1 1997 13.25 113.1463899 1499.18967 1.08333 998.91667 1.37503 998.62497
2 1997 13.15 115.8831129 1523.86293 1.08216 1014.27441 1.37314 1013.68693
3 1997 13.21 115.8831129 1530.81592 1.09880 1017.80348 1.39385 1016.91826
4 1997 13.28 115.8831129 1538.92774 1.10262 1022.09422 1.39830 1020.90863
5 1997 14.04 115.8831129 1626.99891 1.10727 1079.48030 1.40378 1077.93034
6 1997 14.76 115.8831129 1710.43475 1.16944 1133.66882 1.48219 1131.72663
7 1997 15.33 115.8831129 1776.48812 1.22814 1176.22058 1.55616 1173.87536
8 1997 14.01 115.8831129 1623.52241 1.27424 1073.66707 1.61412 1071.18391
9 1997 14.96 115.8831129 1733.61137 1.16314 1145.30791 1.47291 1142.34660
10 1997 13.93 115.8831129 1614.25176 1.24075 1065.21240 1.57076 1062.12496
11 1997 13.98 115.8831129 1620.04592 1.15398 1067.88187 1.46046 1064.47687
12 1997 14.11 115.8831129 1635.11072 1.15687 1076.65523 1.46369 1072.91175
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1076.66 1012.59
TOTAL RETURN 7.67% 1.26%
WITH DEATH BENEFIT CHARGE
ERV 1072.91 1009.07
TOTAL RETURN 7.29% 0.91%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.25 113.1463899 1499.18967 1000.00000 1000.00000
1 1997 13.25 113.1463899 1499.18967 1.08333 998.91667 1.37503 998.62497
2 1997 13.15 115.8831129 1523.86293 1.08216 1014.27441 1.37314 1013.68693
3 1997 13.21 115.8831129 1530.81592 1.09880 1017.80348 1.39385 1016.91826
4 1997 13.28 115.8831129 1538.92774 1.10262 1022.09422 1.39830 1020.90863
5 1997 14.04 115.8831129 1626.99891 1.10727 1079.48030 1.40378 1077.93034
6 1997 14.76 115.8831129 1710.43475 1.16944 1133.66882 1.48219 1131.72663
7 1997 15.33 115.8831129 1776.48812 1.22814 1176.22058 1.55616 1173.87536
8 1997 14.01 115.8831129 1623.52241 1.27424 1073.66707 1.61412 1071.18391
9 1997 14.96 115.8831129 1733.61137 1.16314 1145.30791 1.47291 1142.34660
10 1997 13.93 115.8831129 1614.25176 1.24075 1065.21240 1.57076 1062.12496
11 1997 13.98 115.8831129 1620.04592 1.15398 1067.88187 1.46046 1064.47687
12 1997 14.11 115.8831129 1635.11072 1.15687 1076.65523 1.46369 1072.91175
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1076.66 1012.59
TOTAL RETURN 7.67% 1.26%
WITH DEATH BENEFIT CHARGE
ERV 1072.91 1009.07
TOTAL RETURN 7.29% 0.91%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.69 109.9602821 1175.47542 1000.00000 1000.00000
1 1995 10.18 109.9602821 1119.39567 1.08333 951.20853 1.37503 950.91683
2 1995 10.14 110.5003621 1120.47367 1.03048 951.09408 1.30754 950.52504
3 1995 10.39 110.5003621 1148.09876 1.03035 973.51280 1.30700 972.65307
4 1995 10.93 110.5003621 1207.76896 1.05464 1023.05459 1.33743 1021.86739
5 1995 10.94 110.5003621 1208.87396 1.10831 1022.88229 1.40510 1021.39720
6 1995 11.09 110.5003621 1225.44902 1.10812 1035.79906 1.40446 1033.99728
7 1995 11.75 110.5003621 1298.37925 1.12212 1096.32053 1.42178 1094.11186
8 1995 11.53 110.5003621 1274.06917 1.18768 1074.60600 1.50444 1072.12192
9 1995 11.82 110.5003621 1306.11428 1.16416 1100.47009 1.47420 1097.61349
10 1995 11.55 110.5003621 1276.27918 1.19218 1074.14027 1.50926 1071.03184
11 1995 11.66 110.5003621 1288.43422 1.16365 1083.20653 1.47270 1079.75944
12 1995 11.82 110.5003621 1306.11428 1.17347 1096.89695 1.48471 1093.09133
1 1996 12.04 110.5003621 1330.42436 1.18830 1116.12467 1.50304 1111.93348
2 1996 11.84 113.0560895 1338.58410 1.20914 1121.76093 1.52895 1117.22423
3 1996 12.09 113.0560895 1366.84812 1.21524 1144.23152 1.53622 1139.27805
4 1996 12.48 113.1463899 1412.06695 1.23958 1180.84604 1.56655 1175.40173
5 1996 12.48 113.1463899 1412.06695 1.27925 1179.56679 1.61622 1173.78551
6 1996 12.61 113.1463899 1426.77598 1.27786 1190.57608 1.61399 1184.39845
7 1996 12.14 113.1463899 1373.59717 1.28979 1144.91113 1.62859 1138.62496
8 1996 12.33 113.1463899 1395.09499 1.24032 1161.58951 1.56565 1154.87964
9 1996 12.61 113.1463899 1426.77598 1.25839 1186.70948 1.58800 1179.51761
10 1996 12.55 113.1463899 1419.98719 1.28560 1179.77736 1.62188 1172.28344
11 1996 13.11 113.1463899 1483.34917 1.27809 1231.14272 1.61193 1222.98058
12 1996 13.25 113.1463899 1499.18967 1.33374 1242.95619 1.68164 1234.35899
1 1997 13.25 113.1463899 1499.18967 1.34654 1241.60966 1.69728 1232.66170
2 1997 13.15 115.8831129 1523.86293 1.34508 1260.69866 1.69495 1251.25357
3 1997 13.21 115.8831129 1530.81592 1.36576 1265.08515 1.72052 1255.24220
4 1997 13.28 115.8831129 1538.92774 1.37051 1270.41834 1.72600 1260.16775
5 1997 14.04 115.8831129 1626.99891 1.37629 1341.74672 1.73277 1330.55301
6 1997 14.76 115.8831129 1710.43475 1.45356 1409.10069 1.82955 1396.95694
7 1997 15.33 115.8831129 1776.48812 1.52653 1461.99065 1.92086 1448.98361
8 1997 14.01 115.8831129 1623.52241 1.58382 1334.52113 1.99240 1322.22549
9 1997 14.96 115.8831129 1733.61137 1.44573 1423.56756 1.81810 1410.06579
10 1997 13.93 115.8831129 1614.25176 1.54220 1324.01235 1.93889 1311.04350
11 1997 13.98 115.8831129 1620.04592 1.43435 1327.33038 1.80273 1313.94660
12 1997 14.11 115.8831129 1635.11072 1.43794 1338.23529 1.80672 1324.35826
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 39.10%
GROSS ANNUAL RETURN = 11.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1338.24 1281.36
TOTAL RETURN 33.82% 28.14%
AVERAGE ANNUAL RETURN 10.20% 8.62%
WITH DEATH BENEFIT CHARGE
ERV 1324.36 1268.07
TOTAL RETURN 32.44% 26.81%
AVERAGE ANNUAL RETURN 9.82% 8.24%
Return for 5 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1992 8.12 105.9386947 860.22220 1000.00000 1000.00000
1 1993 8.14 105.9386947 862.34097 1.08333 1001.37972 1.37503 1001.08802
2 1993 8.15 109.2655872 890.51454 1.08483 1033.01099 1.37653 1032.41806
3 1993 8.62 109.2655872 941.86936 1.11910 1091.46431 1.41961 1090.53667
4 1993 9.00 109.2655872 983.39028 1.18242 1138.39749 1.49952 1137.11185
5 1993 9.17 109.2655872 1001.96543 1.23326 1158.66729 1.56357 1157.02706
6 1993 9.02 109.2655872 985.57560 1.25522 1138.45894 1.59095 1136.50982
7 1993 9.24 109.2655872 1009.61403 1.23333 1164.99291 1.56274 1162.66684
8 1993 9.86 109.2655872 1077.35869 1.26208 1241.90135 1.59871 1239.08257
9 1993 10.03 109.2655872 1095.93384 1.34539 1261.96805 1.70378 1258.74228
10 1993 10.34 109.2655872 1129.80617 1.36713 1299.60491 1.73081 1295.91577
11 1993 9.93 109.2655872 1085.00728 1.40791 1246.66529 1.78193 1242.74840
12 1993 10.85 109.2655872 1185.53162 1.35055 1360.81645 1.70882 1356.17840
1 1994 11.31 109.2655872 1235.79379 1.47422 1417.03583 1.86479 1411.81058
2 1994 11.08 109.9602821 1218.35993 1.53512 1395.50999 1.94129 1389.95228
3 1994 10.72 109.9602821 1178.77422 1.51180 1348.65671 1.91123 1342.88015
4 1994 10.95 109.9602821 1204.06509 1.46104 1376.13139 1.84650 1369.84544
5 1994 10.86 109.9602821 1194.16866 1.49081 1363.32991 1.88358 1356.70285
6 1994 10.86 109.9602821 1194.16866 1.47694 1361.85297 1.86551 1354.83734
7 1994 11.12 109.9602821 1222.75834 1.47534 1392.98185 1.86295 1385.41065
8 1994 11.42 109.9602821 1255.74642 1.50906 1429.05323 1.90499 1420.88185
9 1994 11.12 109.9602821 1222.75834 1.54814 1389.96429 1.95376 1381.60194
10 1994 11.37 109.9602821 1250.24841 1.50579 1419.70769 1.89975 1410.76339
11 1994 10.76 109.9602821 1183.17264 1.53802 1342.00242 1.93985 1333.13615
12 1994 10.69 109.9602821 1175.47542 1.45384 1331.81808 1.83311 1322.63022
1 1995 10.18 109.9602821 1119.39567 1.44280 1266.83672 1.81866 1257.71134
2 1995 10.14 110.5003621 1120.47367 1.37241 1266.68430 1.72939 1257.19314
3 1995 10.39 110.5003621 1148.09876 1.37224 1296.54195 1.72868 1286.46035
4 1995 10.93 110.5003621 1207.76896 1.40459 1362.52260 1.76893 1351.55269
5 1995 10.94 110.5003621 1208.87396 1.47607 1362.29312 1.85843 1350.93081
6 1995 11.09 110.5003621 1225.44902 1.47582 1379.49591 1.85757 1367.59606
7 1995 11.75 110.5003621 1298.37925 1.49445 1460.09950 1.88049 1447.10541
8 1995 11.53 110.5003621 1274.06917 1.58177 1431.17970 1.98982 1418.02085
9 1995 11.82 110.5003621 1306.11428 1.55044 1465.62597 1.94983 1451.73677
10 1995 11.55 110.5003621 1276.27918 1.58776 1430.55944 1.99619 1416.57909
11 1995 11.66 110.5003621 1288.43422 1.54977 1442.63404 1.94784 1428.12247
12 1995 11.82 110.5003621 1306.11428 1.56285 1460.86720 1.96372 1445.75564
1 1996 12.04 110.5003621 1330.42436 1.58261 1486.47501 1.98796 1470.67683
2 1996 11.84 113.0560895 1338.58410 1.61035 1493.98149 2.02223 1477.67454
3 1996 12.09 113.0560895 1366.84812 1.61848 1523.90823 2.03185 1506.84358
4 1996 12.48 113.1463899 1412.06695 1.65090 1572.67210 2.07196 1554.62185
5 1996 12.48 113.1463899 1412.06695 1.70373 1570.96837 2.13766 1552.48420
6 1996 12.61 113.1463899 1426.77598 1.70188 1585.63075 2.13472 1566.52119
7 1996 12.14 113.1463899 1373.59717 1.71777 1524.81334 2.15402 1505.97978
8 1996 12.33 113.1463899 1395.09499 1.65188 1547.02592 2.07077 1527.47871
9 1996 12.61 113.1463899 1426.77598 1.67594 1580.48114 2.10033 1560.06565
10 1996 12.55 113.1463899 1419.98719 1.71219 1571.24882 2.14514 1550.49751
11 1996 13.11 113.1463899 1483.34917 1.70219 1639.65813 2.13199 1617.55107
12 1996 13.25 113.1463899 1499.18967 1.77630 1655.39153 2.22419 1632.60051
1 1997 13.25 113.1463899 1499.18967 1.79334 1653.59819 2.24488 1630.35563
2 1997 13.15 115.8831129 1523.86293 1.79140 1679.02128 2.24179 1654.94580
3 1997 13.21 115.8831129 1530.81592 1.81894 1684.86327 2.27561 1660.22127
4 1997 13.28 115.8831129 1538.92774 1.82527 1691.96612 2.28286 1666.73595
5 1997 14.04 115.8831129 1626.99891 1.83296 1786.96254 2.29182 1759.82963
6 1997 14.76 115.8831129 1710.43475 1.93588 1876.66577 2.41982 1847.65748
7 1997 15.33 115.8831129 1776.48812 2.03305 1947.10558 2.54059 1916.46951
8 1997 14.01 115.8831129 1623.52241 2.10936 1777.33938 2.63521 1748.81540
9 1997 14.96 115.8831129 1733.61137 1.92545 1895.93301 2.40468 1864.99563
10 1997 13.93 115.8831129 1614.25176 2.05393 1763.34359 2.56443 1734.02575
11 1997 13.98 115.8831129 1620.04592 1.91029 1767.76260 2.38434 1737.86548
12 1997 14.11 115.8831129 1635.11072 1.91508 1782.28595 2.38962 1751.63627
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 90.08%
GROSS ANNUAL RETURN = 13.71%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1782.29 1736.84
TOTAL RETURN 78.23% 73.68%
AVERAGE ANNUAL RETURN 12.25% 11.67%
WITH DEATH BENEFIT CHARGE
ERV 1751.64 1706.97
TOTAL RETURN 75.16% 70.70%
AVERAGE ANNUAL RETURN 11.86% 11.29%
Return for 10 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1987 5.26 101.9391635 536.20000 1000.00000 1000.00000
1 1988 5.16 101.9391635 526.00608 1.08333 979.90526 1.37503 979.61356
2 1988 5.46 101.9391635 556.58783 1.06156 1035.81493 1.34700 1035.22084
3 1988 5.71 101.9391635 582.07262 1.12213 1082.12022 1.42346 1081.19759
4 1988 5.94 101.9391635 605.51863 1.17230 1124.53596 1.48668 1123.26178
5 1988 5.89 101.9391635 600.42167 1.21825 1113.85192 1.54452 1112.26219
6 1988 5.83 101.9391635 594.30532 1.20667 1101.29871 1.52940 1099.40245
7 1988 5.82 101.9391635 593.28593 1.19307 1098.21661 1.51171 1096.00496
8 1988 5.49 101.9391635 559.64601 1.18973 1034.75686 1.50704 1032.35331
9 1988 5.57 101.9391635 567.80114 1.12099 1048.71430 1.41952 1045.97719
10 1988 5.86 101.9391635 597.36350 1.13611 1102.17912 1.43825 1098.99735
11 1988 6.10 101.9391635 621.82890 1.19403 1146.12553 1.51116 1142.49633
12 1988 6.14 101.9391635 625.90646 1.24164 1152.39947 1.57097 1148.41713
1 1989 6.49 101.9391635 661.58517 1.24843 1216.84156 1.57911 1212.30154
2 1989 6.68 101.9391635 680.95361 1.31824 1251.14734 1.66695 1246.12569
3 1989 6.72 101.9391635 685.03118 1.35541 1257.28383 1.71346 1251.87406
4 1989 7.00 101.9391635 713.57414 1.36206 1308.30860 1.72137 1302.31411
5 1989 7.02 101.9391635 715.61293 1.41733 1310.62929 1.79073 1304.24428
6 1989 6.97 101.9391635 710.51597 1.41985 1299.87448 1.79338 1293.16141
7 1989 7.60 101.9391635 774.73764 1.40820 1415.95852 1.77814 1408.26874
8 1989 7.64 101.9391635 778.81521 1.53396 1421.87698 1.93642 1413.74426
9 1989 7.94 101.9391635 809.39696 1.54037 1476.16948 1.94395 1467.31384
10 1989 7.54 101.9391635 768.62129 1.59918 1400.20407 2.01761 1391.37614
11 1989 7.93 101.9391635 808.37757 1.51689 1471.11153 1.91319 1461.43068
12 1989 8.46 101.9391635 862.40532 1.59370 1567.83928 2.00952 1557.09560
1 1990 8.43 102.3669657 862.95352 1.69849 1567.13740 2.14106 1555.94433
2 1990 8.32 102.3669657 851.69315 1.69773 1544.99067 2.13948 1533.50190
3 1990 8.53 102.3669657 873.19022 1.67374 1582.31309 2.10862 1570.09946
4 1990 8.43 102.3669657 862.95352 1.71417 1562.04894 2.15894 1549.53373
5 1990 8.87 102.3669657 907.99499 1.69222 1641.88715 2.13066 1628.28027
6 1990 9.02 102.3669657 923.35003 1.77871 1667.87428 2.23894 1653.57708
7 1990 9.27 102.3669657 948.94177 1.80686 1712.29453 2.27372 1697.13420
8 1990 8.40 102.3669657 859.88251 1.85499 1549.73877 2.33362 1535.52262
9 1990 7.46 102.3669657 763.65756 1.67888 1374.63674 2.11139 1361.57893
10 1990 8.03 102.3669657 822.00673 1.48919 1478.18011 1.87222 1463.74157
11 1990 7.82 102.3669657 800.50967 1.60136 1437.92149 2.01269 1423.44921
12 1990 7.78 102.3669657 796.41499 1.55775 1429.00864 1.95729 1414.21085
1 1991 7.99 102.3669657 817.91206 1.54809 1466.03276 1.94459 1450.43905
2 1991 8.45 104.7927232 885.49851 1.58820 1585.58712 1.99440 1568.29865
3 1991 8.23 104.7927232 862.44411 1.71772 1542.58784 2.15646 1525.31074
4 1991 8.25 104.7927232 864.53997 1.67114 1544.66540 2.09735 1526.92010
5 1991 8.44 104.7927232 884.45058 1.67339 1578.56612 2.09957 1559.98596
6 1991 7.92 104.7927232 829.95837 1.71011 1479.59838 2.14503 1461.72805
7 1991 8.23 104.7927232 862.44411 1.60290 1535.90905 2.00992 1516.93223
8 1991 8.08 104.7927232 846.72520 1.66390 1506.25167 2.08583 1487.19879
9 1991 8.41 104.7927232 881.30680 1.63177 1566.13760 2.04495 1545.89339
10 1991 8.26 104.7927232 865.58789 1.69665 1536.50746 2.12565 1516.19532
11 1991 8.05 104.7927232 843.58142 1.66455 1495.77917 2.08482 1475.56317
12 1991 8.47 104.7927232 887.59437 1.62043 1572.19939 2.02895 1550.52012
1 1992 8.54 104.7927232 894.92986 1.70322 1583.48956 2.13202 1561.20232
2 1992 8.38 105.9386947 887.76626 1.71545 1569.09884 2.14671 1546.55875
3 1992 8.04 105.9386947 851.74711 1.69986 1503.73626 2.12657 1481.68397
4 1992 8.15 105.9386947 863.61224 1.62905 1523.05478 2.03736 1500.28698
5 1992 8.55 105.9386947 905.77584 1.64998 1595.76396 2.06294 1571.47161
6 1992 8.53 105.9386947 903.65707 1.72874 1590.30243 2.16083 1565.63482
7 1992 8.26 105.9386947 875.05362 1.72283 1538.24178 2.15280 1513.92500
8 1992 8.53 105.9386947 903.65707 1.66643 1586.85686 2.08170 1561.32996
9 1992 8.40 105.9386947 889.88504 1.71909 1560.95355 2.14688 1535.38790
10 1992 8.13 105.9386947 861.28159 1.69103 1509.08901 2.11121 1483.92493
11 1992 8.10 105.9386947 858.10343 1.63485 1501.88557 2.04045 1476.40875
12 1992 8.12 105.9386947 860.22220 1.62704 1503.96689 2.03011 1478.02409
1 1993 8.14 105.9386947 862.34097 1.62930 1506.04194 2.03233 1479.63221
2 1993 8.15 109.2655872 890.51454 1.63155 1553.61432 2.03454 1525.93876
3 1993 8.62 109.2655872 941.86936 1.68308 1641.52618 2.09822 1611.83947
4 1993 9.00 109.2655872 983.39028 1.77832 1712.11212 2.21633 1680.67871
5 1993 9.17 109.2655872 1001.96543 1.85479 1742.59723 2.31099 1710.11387
6 1993 9.02 109.2655872 985.57560 1.88781 1712.20455 2.35146 1679.78890
7 1993 9.24 109.2655872 1009.61403 1.85489 1752.11075 2.30977 1718.44959
8 1993 9.86 109.2655872 1077.35869 1.89812 1867.77850 2.36293 1831.39389
9 1993 10.03 109.2655872 1095.93384 2.02343 1897.95816 2.51823 1860.45142
10 1993 10.34 109.2655872 1129.80617 2.05612 1954.56275 2.55818 1915.39473
11 1993 9.93 109.2655872 1085.00728 2.11744 1874.94331 2.63373 1836.81207
12 1993 10.85 109.2655872 1185.53162 2.03119 2046.62288 2.52568 2004.46435
1 1994 11.31 109.2655872 1235.79379 2.21717 2131.17497 2.75621 2086.69005
2 1994 11.08 109.9602821 1218.35993 2.30877 2098.80081 2.86927 2054.38296
3 1994 10.72 109.9602821 1178.77422 2.27370 2028.33502 2.82484 1984.80921
4 1994 10.95 109.9602821 1204.06509 2.19736 2069.65604 2.72918 2024.66456
5 1994 10.86 109.9602821 1194.16866 2.24213 2050.40304 2.78398 2005.23950
6 1994 10.86 109.9602821 1194.16866 2.22127 2048.18177 2.75727 2002.48223
7 1994 11.12 109.9602821 1222.75834 2.21886 2094.99857 2.75348 2047.67031
8 1994 11.42 109.9602821 1255.74642 2.26958 2149.24873 2.81561 2100.09760
9 1994 11.12 109.9602821 1222.75834 2.32835 2090.46026 2.88770 2042.04096
10 1994 11.37 109.9602821 1250.24841 2.26467 2135.19335 2.80787 2085.14228
11 1994 10.76 109.9602821 1183.17264 2.31313 2018.32719 2.86714 1970.40735
12 1994 10.69 109.9602821 1175.47542 2.18652 2003.01029 2.70938 1954.87933
1 1995 10.18 109.9602821 1119.39567 2.16993 1905.28047 2.68802 1858.92766
2 1995 10.14 110.5003621 1120.47367 2.06405 1905.05124 2.55609 1858.16175
3 1995 10.39 110.5003621 1148.09876 2.06381 1949.95615 2.55503 1901.41938
4 1995 10.93 110.5003621 1207.76896 2.11245 2049.18887 2.61451 1997.62744
5 1995 10.94 110.5003621 1208.87396 2.21995 2048.84375 2.74680 1996.70829
6 1995 11.09 110.5003621 1225.44902 2.21958 2074.71617 2.74554 2021.33992
7 1995 11.75 110.5003621 1298.37925 2.24761 2195.94130 2.77941 2138.85666
8 1995 11.53 110.5003621 1274.06917 2.37894 2152.44687 2.94100 2095.86898
9 1995 11.82 110.5003621 1306.11428 2.33182 2204.25292 2.88189 2145.70193
10 1995 11.55 110.5003621 1276.27918 2.38794 2151.51402 2.95041 2093.73802
11 1995 11.66 110.5003621 1288.43422 2.33081 2169.67383 2.87896 2110.79942
12 1995 11.82 110.5003621 1306.11428 2.35048 2197.09589 2.90242 2136.86166
1 1996 12.04 110.5003621 1330.42436 2.38019 2235.60919 2.93826 2173.69579
2 1996 11.84 113.0560895 1338.58410 2.42191 2246.89869 2.98890 2184.03856
3 1996 12.09 113.0560895 1366.84812 2.43414 2291.90751 3.00313 2227.15112
4 1996 12.48 113.1463899 1412.06695 2.48290 2365.24676 3.06241 2297.76855
5 1996 12.48 113.1463899 1412.06695 2.56235 2362.68441 3.15951 2294.60904
6 1996 12.61 113.1463899 1426.77598 2.55957 2384.73613 3.15516 2315.35606
7 1996 12.14 113.1463899 1373.59717 2.58346 2293.26877 3.18369 2225.87440
8 1996 12.33 113.1463899 1395.09499 2.48437 2326.67575 3.06065 2257.65033
9 1996 12.61 113.1463899 1426.77598 2.52057 2376.99129 3.10434 2305.81461
10 1996 12.55 113.1463899 1419.98719 2.57507 2363.10619 3.17057 2291.67268
11 1996 13.11 113.1463899 1483.34917 2.56003 2465.99153 3.15113 2390.77945
12 1996 13.25 113.1463899 1499.18967 2.67149 2489.65405 3.28740 2413.02288
1 1997 13.25 113.1463899 1499.18967 2.69713 2486.95692 3.31799 2409.70489
2 1997 13.15 115.8831129 1523.86293 2.69420 2525.19240 3.31342 2446.04975
3 1997 13.21 115.8831129 1530.81592 2.73563 2533.97857 3.36340 2453.84704
4 1997 13.28 115.8831129 1538.92774 2.74514 2544.66102 3.37412 2463.47589
5 1997 14.04 115.8831129 1626.99891 2.75672 2687.53249 3.38736 2601.07058
6 1997 14.76 115.8831129 1710.43475 2.91149 2822.44318 3.57656 2730.88226
7 1997 15.33 115.8831129 1776.48812 3.05765 2928.38232 3.75505 2832.58811
8 1997 14.01 115.8831129 1623.52241 3.17241 2673.05957 3.89490 2584.79129
9 1997 14.96 115.8831129 1733.61137 2.89581 2851.42047 3.55417 2756.50848
10 1997 13.93 115.8831129 1614.25176 3.08904 2652.01037 3.79029 2562.93184
11 1997 13.98 115.8831129 1620.04592 2.87301 2658.65642 3.52412 2568.60705
12 1997 14.11 115.8831129 1635.11072 2.88021 2680.49905 3.53192 2588.96060
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 204.94%
GROSS ANNUAL RETURN = 11.79%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2680.50 2680.50
TOTAL RETURN 168.05% 168.05%
AVERAGE ANNUAL RETURN 10.36% 10.36%
WITH DEATH BENEFIT CHARGE
ERV 2588.96 2588.96
TOTAL RETURN 158.90% 158.90%
AVERAGE ANNUAL RETURN 9.98% 9.98%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
4 1987 6.00 100.0000000 600.00000 1000.00000 1000.00000
5 1987 5.96 100.0000000 596.00000 1.08333 992.25000 1.37503 991.95830
6 1987 6.37 100.0000000 637.00000 1.07494 1059.43387 1.36398 1058.83307
7 1987 6.75 100.0000000 675.00000 1.14772 1121.48629 1.45593 1120.54143
8 1987 7.17 100.0000000 717.00000 1.21494 1190.05271 1.54078 1188.72323
9 1987 7.23 100.0000000 723.00000 1.28922 1198.72209 1.63453 1197.03617
10 1987 5.31 100.0000000 531.00000 1.29862 879.09064 1.64596 877.50508
11 1987 5.04 100.0000000 504.00000 0.95235 833.43877 1.20660 831.67958
12 1987 5.26 101.9391635 536.20000 0.90289 885.78335 1.14359 883.67108
1 1988 5.16 101.9391635 526.00608 0.95960 867.98376 1.21508 865.65617
2 1988 5.46 101.9391635 556.58783 0.94032 917.50762 1.19031 914.79471
3 1988 5.71 101.9391635 582.07262 0.99397 958.52408 1.25787 955.42304
4 1988 5.94 101.9391635 605.51863 1.03840 996.09523 1.31374 992.59394
5 1988 5.89 101.9391635 600.42167 1.07910 986.63148 1.36485 982.87393
6 1988 5.83 101.9391635 594.30532 1.06885 975.51206 1.35148 971.51014
7 1988 5.82 101.9391635 593.28593 1.05680 972.78199 1.33586 968.50789
8 1988 5.49 101.9391635 559.64601 1.05385 916.57040 1.33173 912.26076
9 1988 5.57 101.9391635 567.80114 0.99295 928.93367 1.25439 924.29979
10 1988 5.86 101.9391635 597.36350 1.00634 976.29191 1.27094 971.15217
11 1988 6.10 101.9391635 621.82890 1.05765 1015.21891 1.33537 1009.59096
12 1988 6.14 101.9391635 625.90646 1.09982 1020.77627 1.38822 1014.82301
1 1989 6.49 101.9391635 661.58517 1.10584 1077.85800 1.39542 1071.27581
2 1989 6.68 101.9391635 680.95361 1.16768 1108.24548 1.47304 1101.16523
3 1989 6.72 101.9391635 685.03118 1.20060 1113.68108 1.51414 1106.24490
4 1989 7.00 101.9391635 713.57414 1.20649 1158.87797 1.52112 1150.81731
5 1989 7.02 101.9391635 715.61293 1.25545 1160.93360 1.58241 1152.52295
6 1989 6.97 101.9391635 710.51597 1.25768 1151.40717 1.58476 1142.72934
7 1989 7.60 101.9391635 774.73764 1.24736 1254.23248 1.57129 1244.44635
8 1989 7.64 101.9391635 778.81521 1.35875 1259.47495 1.71116 1249.28491
9 1989 7.94 101.9391635 809.39696 1.36443 1307.56634 1.71781 1296.62280
10 1989 7.54 101.9391635 768.62129 1.41653 1240.27745 1.78290 1229.51885
11 1989 7.93 101.9391635 808.37757 1.34363 1303.08610 1.69063 1291.42402
12 1989 8.46 101.9391635 862.40532 1.41168 1388.76593 1.77575 1375.96034
1 1990 8.43 102.3669657 862.95352 1.50450 1388.14422 1.89199 1374.94300
2 1990 8.32 102.3669657 851.69315 1.50382 1368.52701 1.89059 1355.11128
3 1990 8.53 102.3669657 873.19022 1.48257 1401.58659 1.86332 1387.45148
4 1990 8.43 102.3669657 862.95352 1.51839 1383.63694 1.90779 1369.27814
5 1990 8.87 102.3669657 907.99499 1.49894 1454.35630 1.88280 1438.86418
6 1990 9.02 102.3669657 923.35003 1.57555 1477.37527 1.97849 1461.21824
7 1990 9.27 102.3669657 948.94177 1.60049 1516.72199 2.00922 1499.70841
8 1990 8.40 102.3669657 859.88251 1.64312 1372.73280 2.06215 1356.89693
9 1990 7.46 102.3669657 763.65756 1.48713 1217.63033 1.86578 1203.18792
10 1990 8.03 102.3669657 822.00673 1.31910 1309.34733 1.65442 1293.46609
11 1990 7.82 102.3669657 800.50967 1.41846 1273.68691 1.77856 1257.86089
12 1990 7.78 102.3669657 796.41499 1.37983 1265.79206 1.72960 1249.69722
1 1991 7.99 102.3669657 817.91206 1.37127 1298.58741 1.71838 1281.71103
2 1991 8.45 104.7927232 885.49851 1.40680 1404.48667 1.76240 1385.86015
3 1991 8.23 104.7927232 862.44411 1.52153 1366.39862 1.90560 1347.87298
4 1991 8.25 104.7927232 864.53997 1.48027 1368.23889 1.85337 1349.29512
5 1991 8.44 104.7927232 884.45058 1.48226 1398.26759 1.85533 1378.51447
6 1991 7.92 104.7927232 829.95837 1.51479 1310.60361 1.89550 1291.68680
7 1991 8.23 104.7927232 862.44411 1.41982 1360.48267 1.77611 1340.46914
8 1991 8.08 104.7927232 846.72520 1.47386 1334.21265 1.84319 1314.19455
9 1991 8.41 104.7927232 881.30680 1.44540 1387.25861 1.80706 1366.06128
10 1991 8.26 104.7927232 865.58789 1.50286 1361.01273 1.87838 1339.81795
11 1991 8.05 104.7927232 843.58142 1.47443 1324.93628 1.84229 1303.91249
12 1991 8.47 104.7927232 887.59437 1.43535 1392.62804 1.79292 1370.14978
1 1992 8.54 104.7927232 894.92986 1.50868 1402.62868 1.88400 1379.58933
2 1992 8.38 105.9386947 887.76626 1.51951 1389.88163 1.89698 1366.64923
3 1992 8.04 105.9386947 851.74711 1.50571 1331.98454 1.87919 1309.32127
4 1992 8.15 105.9386947 863.61224 1.44298 1349.09657 1.80036 1325.76021
5 1992 8.55 105.9386947 905.77584 1.46152 1413.50115 1.82296 1388.66401
6 1992 8.53 105.9386947 903.65707 1.53129 1408.66342 1.90946 1383.50621
7 1992 8.26 105.9386947 875.05362 1.52605 1362.54896 1.90237 1337.81174
8 1992 8.53 105.9386947 903.65707 1.47609 1405.61139 1.83954 1379.70212
9 1992 8.40 105.9386947 889.88504 1.52275 1382.66666 1.89714 1356.77787
10 1992 8.13 105.9386947 861.28159 1.49789 1336.72592 1.86561 1311.30154
11 1992 8.10 105.9386947 858.10343 1.44812 1330.34523 1.80308 1304.65971
12 1992 8.12 105.9386947 860.22220 1.44121 1332.18883 1.79395 1306.08714
1 1993 8.14 105.9386947 862.34097 1.44320 1334.02687 1.79591 1307.50819
2 1993 8.15 109.2655872 890.51454 1.44520 1376.16570 1.79787 1348.42795
3 1993 8.62 109.2655872 941.86936 1.49085 1454.03656 1.85413 1424.33592
4 1993 9.00 109.2655872 983.39028 1.57521 1516.56041 1.95851 1485.16716
5 1993 9.17 109.2655872 1001.96543 1.64294 1543.56361 2.04215 1511.17816
6 1993 9.02 109.2655872 985.57560 1.67219 1516.64228 2.07792 1484.38086
7 1993 9.24 109.2655872 1009.61403 1.64303 1551.99053 2.04107 1518.54420
8 1993 9.86 109.2655872 1077.35869 1.68132 1654.44710 2.08805 1618.34981
9 1993 10.03 109.2655872 1095.93384 1.79232 1681.17973 2.22528 1644.02711
10 1993 10.34 109.2655872 1129.80617 1.82128 1731.31914 2.26059 1692.57892
11 1993 9.93 109.2655872 1085.00728 1.87560 1660.79356 2.32735 1623.13770
12 1993 10.85 109.2655872 1185.53162 1.79919 1812.86447 2.23187 1771.28717
1 1994 11.31 109.2655872 1235.79379 1.96394 1887.75930 2.43558 1843.94764
2 1994 11.08 109.9602821 1218.35993 2.04507 1859.08281 2.53549 1815.39880
3 1994 10.72 109.9602821 1178.77422 2.01401 1796.66539 2.49623 1753.91849
4 1994 10.95 109.9602821 1204.06509 1.94639 1833.26686 2.41170 1789.13751
5 1994 10.86 109.9602821 1194.16866 1.98604 1816.21288 2.46012 1771.97215
6 1994 10.86 109.9602821 1194.16866 1.96756 1814.24531 2.43652 1769.53562
7 1994 11.12 109.9602821 1222.75834 1.96543 1855.71485 2.43317 1809.46703
8 1994 11.42 109.9602821 1255.74642 2.01036 1903.76874 2.48808 1855.79551
9 1994 11.12 109.9602821 1222.75834 2.06242 1851.69489 2.55178 1804.49253
10 1994 11.37 109.9602821 1250.24841 2.00600 1891.31872 2.48124 1842.57992
11 1994 10.76 109.9602821 1183.17264 2.04893 1787.80062 2.53361 1741.19198
12 1994 10.69 109.9602821 1175.47542 1.93678 1774.23317 2.39420 1727.47033
1 1995 10.18 109.9602821 1119.39567 1.92209 1687.66572 2.37533 1642.68060
2 1995 10.14 110.5003621 1120.47367 1.82830 1687.46267 2.25874 1642.00380
3 1995 10.39 110.5003621 1148.09876 1.82808 1727.23869 2.25781 1680.22931
4 1995 10.93 110.5003621 1207.76896 1.87118 1815.13738 2.31037 1765.24559
5 1995 10.94 110.5003621 1208.87396 1.96640 1814.83168 2.42727 1764.43336
6 1995 11.09 110.5003621 1225.44902 1.96607 1837.74904 2.42615 1786.19962
7 1995 11.75 110.5003621 1298.37925 1.99089 1945.12824 2.45608 1890.04577
8 1995 11.53 110.5003621 1274.06917 2.10722 1906.60160 2.59888 1852.05880
9 1995 11.82 110.5003621 1306.11428 2.06549 1952.49053 2.54664 1896.09473
10 1995 11.55 110.5003621 1276.27918 2.11520 1905.77530 2.60719 1850.17573
11 1995 11.66 110.5003621 1288.43422 2.06459 1921.86095 2.54405 1865.25240
12 1995 11.82 110.5003621 1306.11428 2.08202 1946.15095 2.56478 1888.28284
1 1996 12.04 110.5003621 1330.42436 2.10833 1980.26540 2.59645 1920.83209
2 1996 11.84 113.0560895 1338.58410 2.14529 1990.26545 2.64121 1929.97171
3 1996 12.09 113.0560895 1366.84812 2.15612 2030.13351 2.65378 1968.06902
4 1996 12.48 113.1463899 1412.06695 2.19931 2095.09620 2.70616 2030.47161
5 1996 12.48 113.1463899 1412.06695 2.26969 2092.82651 2.79197 2027.67964
6 1996 12.61 113.1463899 1426.77598 2.26723 2112.35956 2.78813 2046.01318
7 1996 12.14 113.1463899 1373.59717 2.28839 2031.33929 2.81334 1966.94083
8 1996 12.33 113.1463899 1395.09499 2.20062 2060.93064 2.70461 1995.02030
9 1996 12.61 113.1463899 1426.77598 2.23267 2105.49931 2.74322 2037.58168
10 1996 12.55 113.1463899 1419.98719 2.28096 2093.20012 2.80174 2025.08486
11 1996 13.11 113.1463899 1483.34917 2.26763 2184.33424 2.78456 2112.66265
12 1996 13.25 113.1463899 1499.18967 2.36636 2205.29410 2.90498 2132.31852
1 1997 13.25 113.1463899 1499.18967 2.38907 2202.90503 2.93201 2129.38651
2 1997 13.15 115.8831129 1523.86293 2.38648 2236.77338 2.92798 2161.50342
3 1997 13.21 115.8831129 1530.81592 2.42317 2244.55602 2.97214 2168.39365
4 1997 13.28 115.8831129 1538.92774 2.43160 2254.01836 2.98161 2176.90239
5 1997 14.04 115.8831129 1626.99891 2.44185 2380.57153 2.99331 2298.49084
6 1997 14.76 115.8831129 1710.43475 2.57895 2500.07317 3.16050 2413.20167
7 1997 15.33 115.8831129 1776.48812 2.70841 2593.91230 3.31823 2503.07618
8 1997 14.01 115.8831129 1623.52241 2.81007 2367.75166 3.44181 2284.10530
9 1997 14.96 115.8831129 1733.61137 2.56506 2525.74078 3.14072 2435.84681
10 1997 13.93 115.8831129 1614.25176 2.73622 2349.10663 3.34937 2264.78874
11 1997 13.98 115.8831129 1620.04592 2.54487 2354.99359 3.11416 2269.80375
12 1997 14.11 115.8831129 1635.11072 2.55124 2374.34143 3.12106 2287.78960
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 172.52%
GROSS ANNUAL RETURN = 9.85%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2374.34 2374.34
TOTAL RETURN 137.43% 137.43%
AVERAGE ANNUAL RETURN 8.44% 8.44%
WITH DEATH BENEFIT CHARGE
ERV 2287.79 2287.79
TOTAL RETURN 128.78% 128.78%
AVERAGE ANNUAL RETURN 8.07% 8.07%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 11.09 110.5003621 1225.44902 1000.00000 1000.00000
7 1995 11.75 110.5003621 1298.37925 1.08333 1058.42974 1.37503 1058.13804
8 1995 11.53 110.5003621 1274.06917 1.14663 1037.46570 1.45498 1036.87112
9 1995 11.82 110.5003621 1306.11428 1.12392 1062.43589 1.42573 1061.52454
10 1995 11.55 110.5003621 1276.27918 1.15097 1037.01608 1.45963 1035.81689
11 1995 11.66 110.5003621 1288.43422 1.12343 1045.76898 1.42428 1044.25753
12 1995 11.82 110.5003621 1306.11428 1.13292 1058.98624 1.43589 1057.15107
1 1996 12.04 110.5003621 1330.42436 1.14724 1077.54941 1.45362 1075.37370
2 1996 11.84 113.0560895 1338.58410 1.16735 1082.99088 1.47867 1080.49049
3 1996 12.09 113.0560895 1366.84812 1.17324 1104.68484 1.48571 1101.81919
4 1996 12.48 113.1463899 1412.06695 1.19674 1140.03390 1.51504 1136.75515
5 1996 12.48 113.1463899 1412.06695 1.23504 1138.79886 1.56308 1135.19207
6 1996 12.61 113.1463899 1426.77598 1.23370 1149.42765 1.56093 1145.45606
7 1996 12.14 113.1463899 1373.59717 1.24521 1105.34096 1.57504 1101.18757
8 1996 12.33 113.1463899 1395.09499 1.19745 1121.44291 1.51417 1116.90781
9 1996 12.61 113.1463899 1426.77598 1.21490 1145.69468 1.53579 1140.73570
10 1996 12.55 113.1463899 1419.98719 1.24117 1139.00215 1.56855 1133.73939
11 1996 13.11 113.1463899 1483.34917 1.23392 1188.59223 1.55893 1182.76962
12 1996 13.25 113.1463899 1499.18967 1.28764 1199.99742 1.62635 1193.77392
1 1997 13.25 113.1463899 1499.18967 1.30000 1198.69742 1.64148 1192.13244
2 1997 13.15 115.8831129 1523.86293 1.29859 1217.12668 1.63922 1210.11302
3 1997 13.21 115.8831129 1530.81592 1.31855 1221.36155 1.66395 1213.97050
4 1997 13.28 115.8831129 1538.92774 1.32314 1226.51042 1.66925 1218.73410
5 1997 14.04 115.8831129 1626.99891 1.32872 1295.37357 1.67580 1286.80513
6 1997 14.76 115.8831129 1710.43475 1.40332 1360.39966 1.76940 1351.02574
7 1997 15.33 115.8831129 1776.48812 1.47377 1411.46165 1.85771 1401.34179
8 1997 14.01 115.8831129 1623.52241 1.52908 1288.39771 1.92689 1278.75142
9 1997 14.96 115.8831129 1733.61137 1.39576 1374.36653 1.75833 1363.70358
10 1997 13.93 115.8831129 1614.25176 1.48890 1278.25213 1.87514 1267.93708
11 1997 13.98 115.8831129 1620.04592 1.38477 1281.45548 1.74346 1270.74473
12 1997 14.11 115.8831129 1635.11072 1.38824 1291.98349 1.74732 1280.81407
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.43%
GROSS ANNUAL RETURN = 11.81%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1291.98 1237.07
TOTAL RETURN 29.20% 23.71%
AVERAGE ANNUAL RETURN 10.42% 8.58%
WITH DEATH BENEFIT CHARGE
ERV 1280.81 1226.38
TOTAL RETURN 28.08% 22.64%
AVERAGE ANNUAL RETURN 10.05% 8.22%
Scudder Global Discovery
12/1997
Assume ($10000 @ $10.00 on 5/ 2/1997)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
4 1997 6.07 100.0000000 607.00000 1000.00000 1000.00000
5 1997 6.63 100.0000000 663.00000 1.08333 1091.17367 1.37503 1090.88197
6 1997 6.93 100.0000000 693.00000 1.18210 1139.36594 1.50000 1138.74314
7 1997 7.06 100.0000000 706.00000 1.23431 1159.50501 1.56581 1158.53904
8 1997 6.98 100.0000000 698.00000 1.25613 1145.11001 1.59303 1143.81809
9 1997 7.31 100.0000000 731.00000 1.24054 1198.00792 1.57279 1196.32266
10 1997 6.98 100.0000000 698.00000 1.29784 1142.62764 1.64498 1140.67132
11 1997 6.89 100.0000000 689.00000 1.23785 1126.65677 1.56846 1124.39506
12 1997 7.07 100.0000000 707.00000 1.22054 1154.86993 1.54608 1152.22360
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.47%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1154.87 1086.16
TOTAL RETURN 15.49% 8.62%
WITH DEATH BENEFIT CHARGE
ERV 1152.22 1083.67
TOTAL RETURN 15.22% 8.37%
Scudder Growth & Income
12/1997
Assume ($10000 @ $10.00 on 5/ 1/1997)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
4/97 0.0650000000 9.22 0.705 100.704989
7/97 0.0650000000 10.97 0.597 101.301691
10/97 0.0600000000 11.06 0.550 101.851249
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
4 1997 9.46 100.7049892 952.66920 1000.00000 1000.00000
5 1997 10.00 100.7049892 1007.04989 1.08333 1055.99912 1.37503 1055.70742
6 1997 10.54 100.7049892 1061.43059 1.14400 1111.87907 1.45163 1111.26399
7 1997 11.17 101.3016915 1131.53989 1.20454 1184.11605 1.52802 1183.13685
8 1997 10.76 101.3016915 1090.00620 1.28279 1139.36974 1.62685 1138.08242
9 1997 11.43 101.3016915 1157.87833 1.23432 1209.08130 1.56490 1207.38324
10 1997 11.01 101.8512486 1121.38225 1.30984 1169.66147 1.66019 1167.66658
11 1997 11.33 101.8512486 1153.97465 1.26713 1202.38995 1.60558 1199.99863
12 1997 11.47 101.8512486 1168.23382 1.30259 1215.94478 1.65004 1213.17646
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 22.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1215.94 1143.60
TOTAL RETURN 21.59% 14.36%
WITH DEATH BENEFIT CHARGE
ERV 1213.18 1140.99
TOTAL RETURN 21.32% 14.10%
T. Rowe Price Personal Strategy Bal
12/1997
Assume ($10000 @ $10.00 on 12/30/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
3/95 0.0900000000 10.70 0.841 100.841121
6/95 0.1000000000 11.39 0.885 101.726469
9/95 0.1100000000 11.76 0.952 102.677992
12/95 0.1000000000 12.39 0.829 103.506709
1/96 0.0800000000 12.47 0.664 104.170746
3/96 0.0800000000 12.56 0.664 104.834254
6/96 0.1100000000 12.59 0.916 105.750200
9/96 0.1100000000 12.96 0.898 106.647771
12/96 0.3400000000 13.51 2.684 109.331727
3/97 0.1200000000 13.58 0.966 110.297840
6/97 0.1200000000 14.48 0.914 111.211910
9/97 0.1200000000 15.09 0.884 112.096299
12/97 0.3400000000 15.00 2.541 114.637149
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.44 109.3317272 1469.41841 1000.00000 1000.00000
1 1997 13.64 109.3317272 1491.28476 1.08333 1013.79762 1.37503 1013.50592
2 1997 13.75 109.3317272 1503.31125 1.09828 1020.87513 1.39360 1020.28575
3 1997 13.30 110.2978396 1466.96127 1.10595 995.08447 1.40293 994.21237
4 1997 13.61 110.2978396 1501.15360 1.07801 1017.20016 1.36708 1016.01867
5 1997 14.18 110.2978396 1564.02337 1.10197 1058.69953 1.39706 1057.17345
6 1997 14.48 111.2119101 1610.34846 1.14692 1088.91042 1.45365 1087.03242
7 1997 15.15 111.2119101 1684.86044 1.17965 1138.11543 1.49471 1135.83548
8 1997 14.63 111.2119101 1627.03025 1.23296 1097.81844 1.56181 1095.28790
9 1997 15.12 112.0962991 1694.89604 1.18930 1142.42074 1.50606 1139.46789
10 1997 14.92 112.0962991 1672.47678 1.23762 1126.07174 1.56681 1122.82876
11 1997 15.18 112.0962991 1701.62182 1.21991 1144.47506 1.54393 1140.85155
12 1997 15.13 114.6371485 1734.46006 1.23985 1165.32152 1.56871 1161.29923
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.04%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1165.32 1095.98
TOTAL RETURN 16.53% 9.60%
WITH DEATH BENEFIT CHARGE
ERV 1161.30 1092.20
TOTAL RETURN 16.13% 9.22%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 13.44 109.3317272 1469.41841 1000.00000 1000.00000
1 1997 13.64 109.3317272 1491.28476 1.08333 1013.79762 1.37503 1013.50592
2 1997 13.75 109.3317272 1503.31125 1.09828 1020.87513 1.39360 1020.28575
3 1997 13.30 110.2978396 1466.96127 1.10595 995.08447 1.40293 994.21237
4 1997 13.61 110.2978396 1501.15360 1.07801 1017.20016 1.36708 1016.01867
5 1997 14.18 110.2978396 1564.02337 1.10197 1058.69953 1.39706 1057.17345
6 1997 14.48 111.2119101 1610.34846 1.14692 1088.91042 1.45365 1087.03242
7 1997 15.15 111.2119101 1684.86044 1.17965 1138.11543 1.49471 1135.83548
8 1997 14.63 111.2119101 1627.03025 1.23296 1097.81844 1.56181 1095.28790
9 1997 15.12 112.0962991 1694.89604 1.18930 1142.42074 1.50606 1139.46789
10 1997 14.92 112.0962991 1672.47678 1.23762 1126.07174 1.56681 1122.82876
11 1997 15.18 112.0962991 1701.62182 1.21991 1144.47506 1.54393 1140.85155
12 1997 15.13 114.6371485 1734.46006 1.23985 1165.32152 1.56871 1161.29923
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.04%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1165.32 1095.98
TOTAL RETURN 16.53% 9.60%
WITH DEATH BENEFIT CHARGE
ERV 1161.30 1092.20
TOTAL RETURN 16.13% 9.22%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.17 100.0000000 1017.00000 1.08333 1015.91667 1.37503 1015.62497
2 1995 10.49 100.0000000 1049.00000 1.10058 1046.78200 1.39652 1046.18518
3 1995 10.65 100.8411215 1073.95794 1.13401 1070.55316 1.43854 1069.63762
4 1995 10.86 100.8411215 1095.13458 1.15977 1090.50290 1.47079 1089.25828
5 1995 11.23 100.8411215 1132.44579 1.18138 1126.47493 1.49777 1124.87152
6 1995 11.39 101.7264694 1158.66449 1.22035 1151.33504 1.54674 1149.36811
7 1995 11.61 101.7264694 1181.04431 1.24728 1172.32601 1.58042 1169.98796
8 1995 11.63 101.7264694 1183.07884 1.27002 1173.07550 1.60877 1170.39467
9 1995 11.82 102.6779925 1213.65387 1.27083 1202.12118 1.60933 1199.03256
10 1995 11.90 102.6779925 1221.86811 1.30230 1208.95506 1.64871 1205.49913
11 1995 12.27 102.6779925 1259.85897 1.30970 1245.23472 1.65760 1241.32344
12 1995 12.43 103.5067091 1286.58839 1.34900 1270.30487 1.70686 1265.95275
1 1996 12.62 104.1707457 1314.63481 1.37616 1296.62016 1.74073 1291.80860
2 1996 12.59 104.1707457 1311.50969 1.40467 1292.13319 1.77628 1286.96146
3 1996 12.55 104.8342537 1315.66988 1.39981 1294.83211 1.76961 1289.27417
4 1996 12.62 104.8342537 1323.00828 1.40273 1300.65155 1.77279 1294.69255
5 1996 12.72 104.8342537 1333.49171 1.40904 1309.54878 1.78025 1303.17135
6 1996 12.67 105.7502003 1339.85504 1.41868 1314.37918 1.79190 1307.59810
7 1996 12.42 105.7502003 1313.41749 1.42391 1287.02040 1.79799 1279.99904
8 1996 12.59 105.7502003 1331.39502 1.39427 1303.24235 1.76004 1295.75911
9 1996 12.97 106.6477714 1383.22160 1.41185 1352.56119 1.78171 1344.41679
10 1996 13.19 106.6477714 1406.68411 1.46527 1374.03836 1.84862 1365.37247
11 1996 13.85 106.6477714 1477.07163 1.48854 1441.30382 1.87743 1431.81542
12 1996 13.44 109.3317272 1469.41841 1.56141 1432.27451 1.96879 1422.42789
1 1997 13.64 109.3317272 1491.28476 1.55163 1452.03649 1.95589 1441.63909
2 1997 13.75 109.3317272 1503.31125 1.57304 1462.17342 1.98230 1451.28291
3 1997 13.30 110.2978396 1466.96127 1.58402 1425.23413 1.99556 1414.19540
4 1997 13.61 110.2978396 1501.15360 1.54400 1456.90987 1.94457 1445.21329
5 1997 14.18 110.2978396 1564.02337 1.57832 1516.34835 1.98722 1503.75301
6 1997 14.48 111.2119101 1610.34846 1.64271 1559.61864 2.06771 1546.22523
7 1997 15.15 111.2119101 1684.86044 1.68959 1630.09373 2.12611 1615.64407
8 1997 14.63 111.2119101 1627.03025 1.76593 1572.37738 2.22156 1557.96806
9 1997 15.12 112.0962991 1694.89604 1.70341 1636.26012 2.14226 1620.81091
10 1997 14.92 112.0962991 1672.47678 1.77262 1612.84385 2.22867 1597.14294
11 1997 15.18 112.0962991 1701.62182 1.74725 1639.20246 2.19612 1622.77907
12 1997 15.13 114.6371485 1734.46006 1.77580 1669.06031 2.23138 1651.86441
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 73.45%
GROSS ANNUAL RETURN = 20.15%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1669.06 1598.13
TOTAL RETURN 66.91% 59.81%
AVERAGE ANNUAL RETURN 18.62% 16.92%
WITH DEATH BENEFIT CHARGE
ERV 1651.86 1581.66
TOTAL RETURN 65.19% 58.17%
AVERAGE ANNUAL RETURN 18.21% 16.51%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
1 1995 10.17 100.0000000 1017.00000 1.08333 1015.91667 1.37503 1015.62497
2 1995 10.49 100.0000000 1049.00000 1.10058 1046.78200 1.39652 1046.18518
3 1995 10.65 100.8411215 1073.95794 1.13401 1070.55316 1.43854 1069.63762
4 1995 10.86 100.8411215 1095.13458 1.15977 1090.50290 1.47079 1089.25828
5 1995 11.23 100.8411215 1132.44579 1.18138 1126.47493 1.49777 1124.87152
6 1995 11.39 101.7264694 1158.66449 1.22035 1151.33504 1.54674 1149.36811
7 1995 11.61 101.7264694 1181.04431 1.24728 1172.32601 1.58042 1169.98796
8 1995 11.63 101.7264694 1183.07884 1.27002 1173.07550 1.60877 1170.39467
9 1995 11.82 102.6779925 1213.65387 1.27083 1202.12118 1.60933 1199.03256
10 1995 11.90 102.6779925 1221.86811 1.30230 1208.95506 1.64871 1205.49913
11 1995 12.27 102.6779925 1259.85897 1.30970 1245.23472 1.65760 1241.32344
12 1995 12.43 103.5067091 1286.58839 1.34900 1270.30487 1.70686 1265.95275
1 1996 12.62 104.1707457 1314.63481 1.37616 1296.62016 1.74073 1291.80860
2 1996 12.59 104.1707457 1311.50969 1.40467 1292.13319 1.77628 1286.96146
3 1996 12.55 104.8342537 1315.66988 1.39981 1294.83211 1.76961 1289.27417
4 1996 12.62 104.8342537 1323.00828 1.40273 1300.65155 1.77279 1294.69255
5 1996 12.72 104.8342537 1333.49171 1.40904 1309.54878 1.78025 1303.17135
6 1996 12.67 105.7502003 1339.85504 1.41868 1314.37918 1.79190 1307.59810
7 1996 12.42 105.7502003 1313.41749 1.42391 1287.02040 1.79799 1279.99904
8 1996 12.59 105.7502003 1331.39502 1.39427 1303.24235 1.76004 1295.75911
9 1996 12.97 106.6477714 1383.22160 1.41185 1352.56119 1.78171 1344.41679
10 1996 13.19 106.6477714 1406.68411 1.46527 1374.03836 1.84862 1365.37247
11 1996 13.85 106.6477714 1477.07163 1.48854 1441.30382 1.87743 1431.81542
12 1996 13.44 109.3317272 1469.41841 1.56141 1432.27451 1.96879 1422.42789
1 1997 13.64 109.3317272 1491.28476 1.55163 1452.03649 1.95589 1441.63909
2 1997 13.75 109.3317272 1503.31125 1.57304 1462.17342 1.98230 1451.28291
3 1997 13.30 110.2978396 1466.96127 1.58402 1425.23413 1.99556 1414.19540
4 1997 13.61 110.2978396 1501.15360 1.54400 1456.90987 1.94457 1445.21329
5 1997 14.18 110.2978396 1564.02337 1.57832 1516.34835 1.98722 1503.75301
6 1997 14.48 111.2119101 1610.34846 1.64271 1559.61864 2.06771 1546.22523
7 1997 15.15 111.2119101 1684.86044 1.68959 1630.09373 2.12611 1615.64407
8 1997 14.63 111.2119101 1627.03025 1.76593 1572.37738 2.22156 1557.96806
9 1997 15.12 112.0962991 1694.89604 1.70341 1636.26012 2.14226 1620.81091
10 1997 14.92 112.0962991 1672.47678 1.77262 1612.84385 2.22867 1597.14294
11 1997 15.18 112.0962991 1701.62182 1.74725 1639.20246 2.19612 1622.77907
12 1997 15.13 114.6371485 1734.46006 1.77580 1669.06031 2.23138 1651.86441
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 73.45%
GROSS ANNUAL RETURN = 20.13%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1669.06 1598.13
TOTAL RETURN 66.91% 59.81%
AVERAGE ANNUAL RETURN 18.60% 16.90%
WITH DEATH BENEFIT CHARGE
ERV 1651.86 1581.66
TOTAL RETURN 65.19% 58.17%
AVERAGE ANNUAL RETURN 18.19% 16.50%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 11.39 101.7264694 1158.66449 1000.00000 1000.00000
7 1995 11.61 101.7264694 1181.04431 1.08333 1018.23186 1.37503 1017.94016
8 1995 11.63 101.7264694 1183.07884 1.10308 1018.88283 1.39970 1018.29401
9 1995 11.82 102.6779925 1213.65387 1.10379 1044.11066 1.40019 1043.21022
10 1995 11.90 102.6779925 1221.86811 1.13112 1050.04627 1.43445 1048.83642
11 1995 12.27 102.6779925 1259.85897 1.13755 1081.55722 1.44218 1080.00511
12 1995 12.43 103.5067091 1286.58839 1.17169 1103.33208 1.48504 1101.43368
1 1996 12.62 104.1707457 1314.63481 1.19528 1126.18840 1.51451 1123.92939
2 1996 12.59 104.1707457 1311.50969 1.22004 1122.29121 1.54544 1119.71217
3 1996 12.55 104.8342537 1315.66988 1.21582 1124.63538 1.53964 1121.72433
4 1996 12.62 104.8342537 1323.00828 1.21835 1129.68989 1.54241 1126.43855
5 1996 12.72 104.8342537 1333.49171 1.22383 1137.41764 1.54889 1133.81548
6 1996 12.67 105.7502003 1339.85504 1.23220 1141.61312 1.55903 1137.66693
7 1996 12.42 105.7502003 1313.41749 1.23675 1117.85046 1.56433 1113.65456
8 1996 12.59 105.7502003 1331.39502 1.21100 1131.94015 1.53131 1127.36650
9 1996 12.97 106.6477714 1383.22160 1.22627 1174.77637 1.55017 1169.70079
10 1996 13.19 106.6477714 1406.68411 1.27267 1193.43051 1.60838 1187.93314
11 1996 13.85 106.6477714 1477.07163 1.29288 1251.85439 1.63345 1245.74138
12 1996 13.44 109.3317272 1469.41841 1.35618 1244.01192 1.71294 1237.57382
1 1997 13.64 109.3317272 1491.28476 1.34768 1261.17633 1.70171 1254.28840
2 1997 13.75 109.3317272 1503.31125 1.36627 1269.98083 1.72469 1262.67894
3 1997 13.30 110.2978396 1466.96127 1.37581 1237.89695 1.73623 1230.41120
4 1997 13.61 110.2978396 1501.15360 1.34105 1265.40913 1.69186 1257.39811
5 1997 14.18 110.2978396 1564.02337 1.37086 1317.03484 1.72896 1308.33019
6 1997 14.48 111.2119101 1610.34846 1.42679 1354.61754 1.79900 1345.28287
7 1997 15.15 111.2119101 1684.86044 1.46750 1415.82917 1.84981 1405.68026
8 1997 14.63 111.2119101 1627.03025 1.53381 1365.69924 1.93286 1355.49963
9 1997 15.12 112.0962991 1694.89604 1.47951 1421.18503 1.86386 1410.17564
10 1997 14.92 112.0962991 1672.47678 1.53962 1400.84667 1.93904 1389.58348
11 1997 15.18 112.0962991 1701.62182 1.51758 1423.74062 1.91072 1411.88802
12 1997 15.13 114.6371485 1734.46006 1.54239 1449.67387 1.94139 1437.19352
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 49.69%
GROSS ANNUAL RETURN = 16.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1449.67 1388.06
TOTAL RETURN 44.97% 38.81%
AVERAGE ANNUAL RETURN 15.46% 13.53%
WITH DEATH BENEFIT CHARGE
ERV 1437.19 1376.11
TOTAL RETURN 43.72% 37.61%
AVERAGE ANNUAL RETURN 15.07% 13.15%
T. Rowe Price Equity Income Fund
12/1997
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
6/94 0.0900000000 10.10 0.891 100.891089
9/94 0.1000000000 10.52 0.959 101.850130
12/94 0.1000000000 10.43 0.977 102.826641
1/95 0.2600000000 10.54 2.537 105.363162
3/95 0.1100000000 10.95 1.058 106.421604
6/95 0.1100000000 11.57 1.012 107.433392
9/95 0.1100000000 12.27 0.963 108.396527
12/95 0.1100000000 13.15 0.907 109.303266
1/96 0.0100000000 13.39 0.082 109.384897
3/96 0.1000000000 13.76 0.795 110.179845
6/96 0.1100000000 13.92 0.871 111.050519
9/96 0.1000000000 14.32 0.775 111.826012
12/96 0.1800000000 15.46 1.302 113.127996
3/97 0.1900000000 16.00 1.343 114.471391
6/97 0.0900000000 17.17 0.600 115.071416
9/97 0.1000000000 18.42 0.625 115.696125
12/97 0.6300000000 18.40 3.961 119.657460
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 15.26 113.1279961 1726.33322 1000.00000 1000.00000
1 1997 15.69 113.1279961 1774.97826 1.08333 1027.09491 1.37503 1026.80321
2 1997 16.07 113.1279961 1817.96690 1.11269 1050.85769 1.41189 1050.25972
3 1997 15.54 114.4713911 1778.88542 1.13843 1027.12860 1.44414 1026.23777
4 1997 15.93 114.4713911 1823.52926 1.11272 1051.79324 1.41111 1050.58167
5 1997 16.68 114.4713911 1909.38280 1.13944 1100.17325 1.44458 1098.59949
6 1997 17.22 115.0714158 1981.52978 1.19185 1140.55199 1.51061 1138.60001
7 1997 18.20 115.0714158 2094.29977 1.23560 1204.22585 1.56561 1201.83277
8 1997 17.72 115.0714158 2039.06549 1.30458 1171.16147 1.65256 1168.48352
9 1997 18.47 115.6961249 2136.90743 1.26876 1226.08939 1.60670 1222.94500
10 1997 17.98 115.6961249 2080.21633 1.32826 1192.23358 1.68159 1188.81928
11 1997 18.67 115.6961249 2160.04665 1.29159 1236.69512 1.63467 1232.80671
12 1997 18.59 119.6574597 2224.43217 1.33975 1272.21812 1.69515 1267.85841
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.85%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1272.22 1196.52
TOTAL RETURN 27.22% 19.65%
WITH DEATH BENEFIT CHARGE
ERV 1267.86 1192.42
TOTAL RETURN 26.79% 19.24%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 15.26 113.1279961 1726.33322 1000.00000 1000.00000
1 1997 15.69 113.1279961 1774.97826 1.08333 1027.09491 1.37503 1026.80321
2 1997 16.07 113.1279961 1817.96690 1.11269 1050.85769 1.41189 1050.25972
3 1997 15.54 114.4713911 1778.88542 1.13843 1027.12860 1.44414 1026.23777
4 1997 15.93 114.4713911 1823.52926 1.11272 1051.79324 1.41111 1050.58167
5 1997 16.68 114.4713911 1909.38280 1.13944 1100.17325 1.44458 1098.59949
6 1997 17.22 115.0714158 1981.52978 1.19185 1140.55199 1.51061 1138.60001
7 1997 18.20 115.0714158 2094.29977 1.23560 1204.22585 1.56561 1201.83277
8 1997 17.72 115.0714158 2039.06549 1.30458 1171.16147 1.65256 1168.48352
9 1997 18.47 115.6961249 2136.90743 1.26876 1226.08939 1.60670 1222.94500
10 1997 17.98 115.6961249 2080.21633 1.32826 1192.23358 1.68159 1188.81928
11 1997 18.67 115.6961249 2160.04665 1.29159 1236.69512 1.63467 1232.80671
12 1997 18.59 119.6574597 2224.43217 1.33975 1272.21812 1.69515 1267.85841
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.85%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1272.22 1196.52
TOTAL RETURN 27.22% 19.65%
WITH DEATH BENEFIT CHARGE
ERV 1267.86 1192.42
TOTAL RETURN 26.79% 19.24%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.42 102.8266412 1071.45360 1000.00000 1000.00000
1 1995 10.57 105.3631618 1113.68862 1.08333 1038.33510 1.37503 1038.04340
2 1995 10.87 105.3631618 1145.29757 1.12486 1066.68048 1.42734 1066.07802
3 1995 10.90 106.4216045 1159.99549 1.15557 1079.21392 1.46589 1078.29340
4 1995 11.18 106.4216045 1189.79354 1.16915 1105.76770 1.48269 1104.50999
5 1995 11.58 106.4216045 1232.36218 1.19791 1144.13213 1.51874 1142.50861
6 1995 11.55 107.4333916 1240.85567 1.23948 1150.77806 1.57099 1148.81184
7 1995 11.80 107.4333916 1267.71402 1.24668 1174.44000 1.57965 1172.09824
8 1995 11.99 107.4333916 1288.12636 1.27231 1192.07817 1.61167 1189.35934
9 1995 12.33 108.3965271 1336.52918 1.29142 1235.58044 1.63541 1232.41546
10 1995 12.40 108.3965271 1344.11694 1.33855 1241.25655 1.69461 1237.71753
11 1995 12.90 108.3965271 1398.31520 1.34469 1289.96252 1.70190 1285.92359
12 1995 13.21 109.3032661 1443.89615 1.39746 1330.61403 1.76819 1326.07271
1 1996 13.57 109.3848966 1484.35305 1.44150 1366.45535 1.82339 1361.40489
2 1996 13.62 109.3848966 1489.82229 1.48033 1370.00986 1.87198 1364.54915
3 1996 13.70 110.1798450 1509.46388 1.48418 1386.58768 1.87630 1380.66285
4 1996 13.78 110.1798450 1518.27826 1.50214 1393.18241 1.89846 1386.82666
5 1996 14.01 110.1798450 1543.61963 1.50928 1414.92653 1.90693 1408.06705
6 1996 13.99 111.0505191 1553.59676 1.53284 1422.53903 1.93614 1415.23190
7 1996 13.59 111.0505191 1509.17655 1.54108 1380.32492 1.94599 1372.82181
8 1996 13.88 111.0505191 1541.38120 1.49535 1408.28462 1.88768 1400.22908
9 1996 14.37 111.8260115 1606.93979 1.52564 1466.65665 1.92536 1457.85877
10 1996 14.70 111.8260115 1643.84237 1.58888 1498.74882 2.00460 1489.33318
11 1996 15.55 111.8260115 1738.89448 1.62364 1583.78753 2.04788 1573.40320
12 1996 15.26 113.1279961 1726.33322 1.71577 1570.63094 2.16348 1559.87392
1 1997 15.69 113.1279961 1774.97826 1.70152 1613.18705 2.14488 1601.68355
2 1997 16.07 113.1279961 1817.96690 1.74762 1650.50961 2.20237 1638.27275
3 1997 15.54 114.4713911 1778.88542 1.78805 1613.23996 2.25268 1600.80154
4 1997 15.93 114.4713911 1823.52926 1.74768 1651.97900 2.20116 1638.77494
5 1997 16.68 114.4713911 1909.38280 1.78964 1727.96615 2.25337 1713.67670
6 1997 17.22 115.0714158 1981.52978 1.87196 1791.38625 2.35636 1776.07246
7 1997 18.20 115.0714158 2094.29977 1.94067 1891.39439 2.44216 1874.70760
8 1997 17.72 115.0714158 2039.06549 2.04901 1839.46245 2.57779 1822.68697
9 1997 18.47 115.6961249 2136.90743 1.99275 1925.73394 2.50626 1907.64001
10 1997 17.98 115.6961249 2080.21633 2.08621 1872.55896 2.62307 1854.40819
11 1997 18.67 115.6961249 2160.04665 2.02861 1942.39162 2.54987 1923.02304
12 1997 18.59 119.6574597 2224.43217 2.10426 1998.18514 2.64422 1977.69927
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 107.61%
GROSS ANNUAL RETURN = 27.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1998.19 1913.26
TOTAL RETURN 99.82% 91.33%
AVERAGE ANNUAL RETURN 25.95% 24.14%
WITH DEATH BENEFIT CHARGE
ERV 1977.70 1893.65
TOTAL RETURN 97.77% 89.36%
AVERAGE ANNUAL RETURN 25.52% 23.72%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.16 100.0000000 1016.00000 1.08333 1014.91667 1.37503 1014.62497
5 1994 10.35 100.0000000 1035.00000 1.09949 1032.79691 1.39514 1032.20411
6 1994 10.08 100.8910891 1016.98218 1.11886 1013.69858 1.41932 1012.81564
7 1994 10.36 100.8910891 1045.23168 1.09817 1040.75870 1.39266 1039.55676
8 1994 10.82 100.8910891 1091.64158 1.12749 1085.84251 1.42943 1084.28526
9 1994 10.50 101.8501299 1069.42636 1.17633 1062.56897 1.49093 1060.72881
10 1994 10.65 101.8501299 1084.70388 1.15112 1076.59741 1.45854 1074.42354
11 1994 10.41 101.8501299 1060.25985 1.16631 1051.16975 1.47737 1048.73381
12 1994 10.42 102.8266412 1071.45360 1.13877 1061.12876 1.44204 1058.36383
1 1995 10.57 105.3631618 1113.68862 1.14956 1101.80723 1.45529 1098.62759
2 1995 10.87 105.3631618 1145.29757 1.19362 1131.88534 1.51065 1128.29842
3 1995 10.90 106.4216045 1159.99549 1.22621 1145.18493 1.55145 1141.22674
4 1995 11.18 106.4216045 1189.79354 1.24062 1173.36190 1.56922 1168.97343
5 1995 11.58 106.4216045 1232.36218 1.27114 1214.07151 1.60738 1209.18979
6 1995 11.55 107.4333916 1240.85567 1.31524 1221.12370 1.66268 1215.86090
7 1995 11.80 107.4333916 1267.71402 1.32288 1246.23206 1.67185 1240.50639
8 1995 11.99 107.4333916 1288.12636 1.35008 1264.94843 1.70574 1258.77490
9 1995 12.33 108.3965271 1336.52918 1.37036 1311.10994 1.73086 1304.34395
10 1995 12.40 108.3965271 1344.11694 1.42037 1317.13302 1.79352 1309.95547
11 1995 12.90 108.3965271 1398.31520 1.42689 1368.81633 1.80123 1360.97502
12 1995 13.21 109.3032661 1443.89615 1.48288 1411.95281 1.87139 1403.46740
1 1996 13.57 109.3848966 1484.35305 1.52962 1449.98507 1.92981 1440.86170
2 1996 13.62 109.3848966 1489.82229 1.57082 1453.75687 1.98123 1444.18947
3 1996 13.70 110.1798450 1509.46388 1.57490 1471.34807 1.98581 1461.24363
4 1996 13.78 110.1798450 1518.27826 1.59396 1478.34592 2.00926 1467.76718
5 1996 14.01 110.1798450 1543.61963 1.60154 1501.41924 2.01823 1490.24724
6 1996 13.99 111.0505191 1553.59676 1.62654 1509.49707 2.04914 1497.83026
7 1996 13.59 111.0505191 1509.17655 1.63529 1464.70247 2.05957 1452.94496
8 1996 13.88 111.0505191 1541.38120 1.58676 1494.37132 1.99785 1481.95182
9 1996 14.37 111.8260115 1606.93979 1.61890 1556.31155 2.03773 1542.94500
10 1996 14.70 111.8260115 1643.84237 1.68600 1590.36548 2.12160 1576.25637
11 1996 15.55 111.8260115 1738.89448 1.72290 1680.60249 2.16740 1665.23304
12 1996 15.26 113.1279961 1726.33322 1.82065 1666.64167 2.28975 1650.91414
1 1997 15.69 113.1279961 1774.97826 1.80553 1711.79917 2.27006 1695.16394
2 1997 16.07 113.1279961 1817.96690 1.85445 1751.40321 2.33091 1733.88863
3 1997 15.54 114.4713911 1778.88542 1.89735 1711.85532 2.38415 1694.23045
4 1997 15.93 114.4713911 1823.52926 1.85451 1752.96243 2.32962 1734.42013
5 1997 16.68 114.4713911 1909.38280 1.89904 1833.59458 2.38489 1813.69344
6 1997 17.22 115.0714158 1981.52978 1.98639 1900.89147 2.49389 1879.73086
7 1997 18.20 115.0714158 2094.29977 2.05930 2007.01298 2.58469 1984.12272
8 1997 17.72 115.0714158 2039.06549 2.17426 1951.90651 2.72823 1929.06597
9 1997 18.47 115.6961249 2136.90743 2.11457 2043.45167 2.65253 2018.97720
10 1997 17.98 115.6961249 2080.21633 2.21374 1987.02616 2.77616 1962.63856
11 1997 18.67 115.6961249 2160.04665 2.15261 2061.12762 2.69869 2035.25804
12 1997 18.59 119.6574597 2224.43217 2.23289 2120.33172 2.79855 2093.12538
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 122.44%
GROSS ANNUAL RETURN = 23.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2120.33 2048.24
TOTAL RETURN 112.03% 104.82%
AVERAGE ANNUAL RETURN 22.17% 21.05%
WITH DEATH BENEFIT CHARGE
ERV 2093.13 2021.96
TOTAL RETURN 109.31% 102.20%
AVERAGE ANNUAL RETURN 21.75% 20.63%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 11.55 107.4333916 1240.85567 1000.00000 1000.00000
7 1995 11.80 107.4333916 1267.71402 1.08333 1020.56169 1.37503 1020.26999
8 1995 11.99 107.4333916 1288.12636 1.10561 1035.88885 1.40291 1035.29516
9 1995 12.33 108.3965271 1336.52918 1.12221 1073.69134 1.42357 1072.77399
10 1995 12.40 108.3965271 1344.11694 1.16317 1078.62375 1.47510 1077.38925
11 1995 12.90 108.3965271 1398.31520 1.16851 1120.94813 1.48145 1119.35092
12 1995 13.21 109.3032661 1443.89615 1.21436 1156.27337 1.53914 1154.29931
1 1996 13.57 109.3848966 1484.35305 1.25263 1187.41867 1.58720 1185.05472
2 1996 13.62 109.3848966 1489.82229 1.28637 1190.50746 1.62949 1187.79168
3 1996 13.70 110.1798450 1509.46388 1.28972 1204.91320 1.63325 1201.81809
4 1996 13.78 110.1798450 1518.27826 1.30532 1210.64387 1.65254 1207.18347
5 1996 14.01 110.1798450 1543.61963 1.31153 1229.53902 1.65992 1225.67247
6 1996 13.99 111.0505191 1553.59676 1.33200 1236.15411 1.68534 1231.90923
7 1996 13.59 111.0505191 1509.17655 1.33917 1199.47101 1.69392 1194.99274
8 1996 13.88 111.0505191 1541.38120 1.29943 1223.76735 1.64315 1218.84980
9 1996 14.37 111.8260115 1606.93979 1.32575 1274.49132 1.67596 1269.01440
10 1996 14.70 111.8260115 1643.84237 1.38070 1302.37869 1.74494 1296.41176
11 1996 15.55 111.8260115 1738.89448 1.41091 1376.27539 1.78261 1369.59173
12 1996 15.26 113.1279961 1726.33322 1.49096 1364.84262 1.88323 1357.81498
1 1997 15.69 113.1279961 1774.97826 1.47858 1401.82291 1.86704 1394.20878
2 1997 16.07 113.1279961 1817.96690 1.51864 1434.25536 1.91708 1426.05838
3 1997 15.54 114.4713911 1778.88542 1.55378 1401.86889 1.96088 1393.44102
4 1997 15.93 114.4713911 1823.52926 1.51869 1435.53224 1.91603 1426.49552
5 1997 16.68 114.4713911 1909.38280 1.55516 1501.56334 1.96148 1491.69485
6 1997 17.22 115.0714158 1981.52978 1.62669 1556.67396 2.05113 1546.00815
7 1997 18.20 115.0714158 2094.29977 1.68640 1643.57877 2.12581 1631.86654
8 1997 17.72 115.0714158 2039.06549 1.78054 1598.45109 2.24387 1586.58443
9 1997 18.47 115.6961249 2136.90743 1.73166 1673.41906 2.18161 1660.53304
10 1997 17.98 115.6961249 2080.21633 1.81287 1627.21121 2.28329 1614.19663
11 1997 18.67 115.6961249 2160.04665 1.76281 1687.89421 2.21957 1673.92342
12 1997 18.59 119.6574597 2224.43217 1.82855 1736.37751 2.30170 1721.51714
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 79.27%
GROSS ANNUAL RETURN = 25.35%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1736.38 1662.58
TOTAL RETURN 73.64% 66.26%
AVERAGE ANNUAL RETURN 23.81% 21.75%
WITH DEATH BENEFIT CHARGE
ERV 1721.52 1648.35
TOTAL RETURN 72.15% 64.84%
AVERAGE ANNUAL RETURN 23.40% 21.34%
T. Rowe Price Internat. Stock Fund
12/1997
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
1/95 0.0500000000 9.73 0.514 100.513875
1/96 0.1000000000 11.31 0.889 101.402591
12/96 0.1600000000 12.47 1.301 102.703667
12/97 0.2900000000 12.70 2.345 105.048869
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 12.64 102.7036672 1298.17435 1000.00000 1000.00000
1 1997 12.48 102.7036672 1281.74177 1.08333 986.25844 1.37503 985.96674
2 1997 12.65 102.7036672 1299.20139 1.06845 998.62460 1.35574 998.04164
3 1997 12.62 102.7036672 1296.12028 1.08184 995.17448 1.37234 994.30240
4 1997 12.71 102.7036672 1305.36361 1.07811 1001.19350 1.36720 1000.02611
5 1997 13.53 102.7036672 1389.58062 1.08463 1064.70200 1.37507 1063.16885
6 1997 14.11 102.7036672 1449.14874 1.15343 1109.18990 1.46189 1107.28256
7 1997 14.47 102.7036672 1486.12206 1.20162 1136.28795 1.52255 1134.01102
8 1997 13.16 102.7036672 1351.58026 1.23098 1032.18640 1.55930 1029.78728
9 1997 14.03 102.7036672 1440.93245 1.11820 1099.30544 1.41599 1096.44993
10 1997 12.98 102.7036672 1333.09360 1.19091 1015.84292 1.50766 1012.88437
11 1997 12.96 102.7036672 1331.03953 1.10050 1013.17718 1.39275 1009.93093
12 1997 12.74 105.0488691 1338.32259 1.09761 1017.62338 1.38869 1014.06830
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 3.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1017.62 957.07
TOTAL RETURN 1.76% -4.29%
WITH DEATH BENEFIT CHARGE
ERV 1014.07 953.73
TOTAL RETURN 1.41% -4.63%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 12.64 102.7036672 1298.17435 1000.00000 1000.00000
1 1997 12.48 102.7036672 1281.74177 1.08333 986.25844 1.37503 985.96674
2 1997 12.65 102.7036672 1299.20139 1.06845 998.62460 1.35574 998.04164
3 1997 12.62 102.7036672 1296.12028 1.08184 995.17448 1.37234 994.30240
4 1997 12.71 102.7036672 1305.36361 1.07811 1001.19350 1.36720 1000.02611
5 1997 13.53 102.7036672 1389.58062 1.08463 1064.70200 1.37507 1063.16885
6 1997 14.11 102.7036672 1449.14874 1.15343 1109.18990 1.46189 1107.28256
7 1997 14.47 102.7036672 1486.12206 1.20162 1136.28795 1.52255 1134.01102
8 1997 13.16 102.7036672 1351.58026 1.23098 1032.18640 1.55930 1029.78728
9 1997 14.03 102.7036672 1440.93245 1.11820 1099.30544 1.41599 1096.44993
10 1997 12.98 102.7036672 1333.09360 1.19091 1015.84292 1.50766 1012.88437
11 1997 12.96 102.7036672 1331.03953 1.10050 1013.17718 1.39275 1009.93093
12 1997 12.74 105.0488691 1338.32259 1.09761 1017.62338 1.38869 1014.06830
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 3.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1017.62 957.07
TOTAL RETURN 1.76% -4.29%
WITH DEATH BENEFIT CHARGE
ERV 1014.07 953.73
TOTAL RETURN 1.41% -4.63%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.18 100.0000000 1018.00000 1000.00000 1000.00000
1 1995 9.66 100.5138746 970.96403 1.08333 952.71237 1.37503 952.42067
2 1995 9.72 100.5138746 976.99486 1.03211 957.59774 1.30961 957.02672
3 1995 10.10 100.5138746 1015.19013 1.03740 993.99729 1.31594 993.12540
4 1995 10.46 100.5138746 1051.37513 1.07683 1028.35006 1.36558 1027.15835
5 1995 10.52 100.5138746 1057.40596 1.11405 1033.13477 1.41238 1031.63789
6 1995 10.52 100.5138746 1057.40596 1.11923 1032.01555 1.41854 1030.21936
7 1995 11.05 100.5138746 1110.67831 1.11802 1082.89071 1.41659 1080.70546
8 1995 10.84 100.5138746 1089.57040 1.17313 1061.13775 1.48601 1058.68116
9 1995 10.97 100.5138746 1102.63720 1.14957 1072.71401 1.45572 1069.92180
10 1995 10.82 100.5138746 1087.56012 1.16211 1056.88398 1.47118 1053.82088
11 1995 10.90 100.5138746 1095.60123 1.14496 1063.55332 1.44904 1060.16349
12 1995 11.26 100.5138746 1131.78623 1.15218 1097.52767 1.45776 1093.72030
1 1996 11.45 101.4025915 1161.05967 1.18899 1124.72603 1.50390 1120.50528
2 1996 11.52 101.4025915 1168.15785 1.21845 1130.38364 1.54073 1125.81480
3 1996 11.72 101.4025915 1188.43837 1.22458 1148.78377 1.54803 1143.81216
4 1996 12.06 101.4025915 1222.91525 1.24452 1180.86575 1.57278 1175.42164
5 1996 12.02 101.4025915 1218.85915 1.27927 1175.66984 1.61624 1169.90682
6 1996 12.17 101.4025915 1234.06954 1.27364 1189.06762 1.60866 1182.89766
7 1996 11.78 101.4025915 1194.52253 1.28816 1149.67458 1.62652 1143.36398
8 1996 11.96 101.4025915 1212.77499 1.24548 1165.99628 1.57216 1159.26258
9 1996 12.23 101.4025915 1240.15369 1.26316 1191.05578 1.59402 1183.83919
10 1996 12.17 101.4025915 1234.06954 1.29031 1183.92219 1.62782 1176.40350
11 1996 12.71 101.4025915 1288.82694 1.28258 1235.17190 1.61759 1226.98458
12 1996 12.64 102.7036672 1298.17435 1.33810 1242.79207 1.68714 1234.19633
1 1997 12.48 102.7036672 1281.74177 1.34636 1225.71416 1.69706 1216.87653
2 1997 12.65 102.7036672 1299.20139 1.32786 1241.08273 1.67325 1231.77933
3 1997 12.62 102.7036672 1296.12028 1.34451 1236.79495 1.69374 1227.16437
4 1997 12.71 102.7036672 1305.36361 1.33986 1244.27534 1.68739 1234.22855
5 1997 13.53 102.7036672 1389.58062 1.34796 1323.20320 1.69711 1312.15909
6 1997 14.11 102.7036672 1449.14874 1.43347 1378.49241 1.80426 1366.60408
7 1997 14.47 102.7036672 1486.12206 1.49337 1412.16965 1.87913 1399.59224
8 1997 13.16 102.7036672 1351.58026 1.52985 1282.79307 1.92449 1270.95968
9 1997 14.03 102.7036672 1440.93245 1.38969 1366.20808 1.74761 1353.23448
10 1997 12.98 102.7036672 1333.09360 1.48006 1262.48152 1.86074 1250.09817
11 1997 12.96 102.7036672 1331.03953 1.36769 1259.16856 1.71893 1246.45305
12 1997 12.74 105.0488691 1338.32259 1.36410 1264.69427 1.71391 1251.55937
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 31.47%
GROSS ANNUAL RETURN = 9.55%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1264.69 1210.94
TOTAL RETURN 26.47% 21.09%
AVERAGE ANNUAL RETURN 8.14% 6.59%
WITH DEATH BENEFIT CHARGE
ERV 1251.56 1198.37
TOTAL RETURN 25.16% 19.84%
AVERAGE ANNUAL RETURN 7.77% 6.22%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.23 100.0000000 1023.00000 1.08333 1021.91667 1.37503 1021.62497
5 1994 10.23 100.0000000 1023.00000 1.10708 1020.80959 1.40477 1020.22020
6 1994 10.10 100.0000000 1010.00000 1.10588 1006.73155 1.40284 1005.85269
7 1994 10.41 100.0000000 1041.00000 1.09063 1036.54060 1.38308 1035.34231
8 1994 10.79 100.0000000 1079.00000 1.12292 1073.25490 1.42363 1071.71216
9 1994 10.52 100.0000000 1052.00000 1.16269 1045.23597 1.47364 1043.42088
10 1994 10.73 100.0000000 1073.00000 1.13234 1064.96861 1.43474 1062.81489
11 1994 10.32 100.0000000 1032.00000 1.15372 1023.12178 1.46141 1020.74266
12 1994 10.18 100.0000000 1018.00000 1.10838 1008.13384 1.40356 1005.49182
1 1995 9.66 100.5138746 970.96403 1.09214 960.46158 1.38258 957.65120
2 1995 9.72 100.5138746 976.99486 1.04050 965.38668 1.31680 962.28254
3 1995 10.10 100.5138746 1015.19013 1.04584 1002.08230 1.32317 998.57947
4 1995 10.46 100.5138746 1051.37513 1.08559 1036.71449 1.37308 1032.79932
5 1995 10.52 100.5138746 1057.40596 1.12311 1041.53812 1.42013 1037.30347
6 1995 10.52 100.5138746 1057.40596 1.12833 1040.40979 1.42633 1035.87714
7 1995 11.05 100.5138746 1110.67831 1.12711 1091.69876 1.42437 1086.64050
8 1995 10.84 100.5138746 1089.57040 1.18267 1069.76887 1.49417 1064.49525
9 1995 10.97 100.5138746 1102.63720 1.15892 1081.43929 1.46372 1075.79762
10 1995 10.82 100.5138746 1087.56012 1.17156 1065.48050 1.47926 1059.60827
11 1995 10.90 100.5138746 1095.60123 1.15427 1072.20409 1.45700 1065.98572
12 1995 11.26 100.5138746 1131.78623 1.16155 1106.45478 1.46577 1099.72682
1 1996 11.45 101.4025915 1161.05967 1.19866 1133.87437 1.51216 1126.65889
2 1996 11.52 101.4025915 1168.15785 1.22836 1139.57799 1.54919 1131.99757
3 1996 11.72 101.4025915 1188.43837 1.23454 1158.12779 1.55653 1150.09377
4 1996 12.06 101.4025915 1222.91525 1.25464 1190.47071 1.58142 1181.87685
5 1996 12.02 101.4025915 1218.85915 1.28968 1185.23254 1.62512 1176.33174
6 1996 12.17 101.4025915 1234.06954 1.28400 1198.73930 1.61750 1189.39392
7 1996 11.78 101.4025915 1194.52253 1.29863 1159.02584 1.63546 1149.64313
8 1996 11.96 101.4025915 1212.77499 1.25561 1175.48031 1.58080 1165.62904
9 1996 12.23 101.4025915 1240.15369 1.27344 1200.74363 1.60278 1190.34063
10 1996 12.17 101.4025915 1234.06954 1.30081 1193.55202 1.63676 1182.86410
11 1996 12.71 101.4025915 1288.82694 1.29301 1245.21858 1.62648 1233.72296
12 1996 12.64 102.7036672 1298.17435 1.34899 1252.90073 1.69641 1240.97432
1 1997 12.48 102.7036672 1281.74177 1.35731 1235.68392 1.70638 1223.55940
2 1997 12.65 102.7036672 1299.20139 1.33866 1251.17750 1.68243 1238.54404
3 1997 12.62 102.7036672 1296.12028 1.35544 1246.85484 1.70304 1233.90374
4 1997 12.71 102.7036672 1305.36361 1.35076 1254.39607 1.69666 1241.00671
5 1997 13.53 102.7036672 1389.58062 1.35893 1333.96592 1.70643 1319.36524
6 1997 14.11 102.7036672 1449.14874 1.44513 1389.70484 1.81417 1374.10922
7 1997 14.47 102.7036672 1486.12206 1.50551 1423.65601 1.88945 1407.27855
8 1997 13.16 102.7036672 1351.58026 1.54229 1293.22709 1.93505 1277.93956
9 1997 14.03 102.7036672 1440.93245 1.40100 1377.32059 1.75721 1360.66620
10 1997 12.98 102.7036672 1333.09360 1.49210 1272.75033 1.87096 1256.96348
11 1997 12.96 102.7036672 1331.03953 1.37881 1269.41043 1.72837 1253.29835
12 1997 12.74 105.0488691 1338.32259 1.37519 1274.98108 1.72333 1258.43271
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.83%
GROSS ANNUAL RETURN = 8.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1274.98 1231.63
TOTAL RETURN 27.50% 23.16%
AVERAGE ANNUAL RETURN 6.69% 5.71%
WITH DEATH BENEFIT CHARGE
ERV 1258.43 1215.65
TOTAL RETURN 25.84% 21.56%
AVERAGE ANNUAL RETURN 6.32% 5.34%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 10.52 100.5138746 1057.40596 1000.00000 1000.00000
7 1995 11.05 100.5138746 1110.67831 1.08333 1049.29689 1.37503 1049.00519
8 1995 10.84 100.5138746 1089.57040 1.13674 1028.21877 1.44242 1027.62693
9 1995 10.97 100.5138746 1102.63720 1.11390 1039.43590 1.41302 1038.53785
10 1995 10.82 100.5138746 1087.56012 1.12606 1024.09696 1.42802 1022.90922
11 1995 10.90 100.5138746 1095.60123 1.10944 1030.55940 1.40653 1029.06578
12 1995 11.26 100.5138746 1131.78623 1.11644 1063.47978 1.41500 1061.63828
1 1996 11.45 101.4025915 1161.05967 1.15210 1089.83439 1.45979 1087.63757
2 1996 11.52 101.4025915 1168.15785 1.18065 1095.31648 1.49554 1092.79134
3 1996 11.72 101.4025915 1188.43837 1.18659 1113.14580 1.50262 1110.26079
4 1996 12.06 101.4025915 1222.91525 1.20591 1144.23252 1.52665 1140.94308
5 1996 12.02 101.4025915 1218.85915 1.23959 1139.19780 1.56883 1135.59002
6 1996 12.17 101.4025915 1234.06954 1.23413 1152.17995 1.56147 1148.19980
7 1996 11.78 101.4025915 1194.52253 1.24819 1114.00898 1.57881 1109.82576
8 1996 11.96 101.4025915 1212.77499 1.20684 1129.82434 1.52605 1125.25800
9 1996 12.23 101.4025915 1240.15369 1.22398 1154.10643 1.54727 1149.11372
10 1996 12.17 101.4025915 1234.06954 1.25028 1147.19414 1.58007 1141.89613
11 1996 12.71 101.4025915 1288.82694 1.24279 1196.85396 1.57015 1190.99352
12 1996 12.64 102.7036672 1298.17435 1.29659 1204.23774 1.63766 1197.99373
1 1997 12.48 102.7036672 1281.74177 1.30459 1187.68963 1.64728 1181.18197
2 1997 12.65 102.7036672 1299.20139 1.28666 1202.58143 1.62416 1195.64762
3 1997 12.62 102.7036672 1296.12028 1.30280 1198.42667 1.64406 1191.16804
4 1997 12.71 102.7036672 1305.36361 1.29830 1205.67499 1.63790 1198.02500
5 1997 13.53 102.7036672 1389.58062 1.30615 1282.15433 1.64732 1273.66962
6 1997 14.11 102.7036672 1449.14874 1.38900 1335.72834 1.75134 1326.51757
7 1997 14.47 102.7036672 1486.12206 1.44704 1368.36083 1.82401 1358.53809
8 1997 13.16 102.7036672 1351.58026 1.48239 1242.99781 1.86804 1233.67870
9 1997 14.03 102.7036672 1440.93245 1.34658 1323.82510 1.69635 1313.54014
10 1997 12.98 102.7036672 1333.09360 1.43414 1223.31638 1.80616 1213.42912
11 1997 12.96 102.7036672 1331.03953 1.32526 1220.10619 1.66851 1209.89092
12 1997 12.74 105.0488691 1338.32259 1.32178 1225.46048 1.66364 1214.84746
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.57%
GROSS ANNUAL RETURN = 9.55%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1225.46 1173.38
TOTAL RETURN 22.55% 17.34%
AVERAGE ANNUAL RETURN 8.19% 6.38%
WITH DEATH BENEFIT CHARGE
ERV 1214.85 1163.22
TOTAL RETURN 21.48% 16.32%
AVERAGE ANNUAL RETURN 7.82% 6.03%
T. Rowe Price Limited Term Bond
12/1997
Assume ($10000 @ $10.00 on 5/13/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
5/94 0.0101080000 5.00 0.202 100.202160
6/94 0.0227390860 4.99 0.457 100.658774
7/94 0.0254802850 5.04 0.509 101.167666
8/94 0.0310070990 5.04 0.622 101.790070
9/94 0.0333695090 5.01 0.678 102.468051
10/94 0.0289283280 4.98 0.595 103.063278
11/94 0.0311052550 4.93 0.650 103.713543
12/94 0.0273000000 4.92 0.575 104.289027
1/95 0.0280000000 4.94 0.591 104.880139
2/95 0.0287000000 4.96 0.607 105.487006
3/95 0.0301000000 4.97 0.639 106.125871
4/95 0.0262000000 4.98 0.558 106.684204
5/95 0.0283000000 5.02 0.601 107.285631
6/95 0.0295000000 5.01 0.632 107.917352
7/95 0.0254251330 5.00 0.549 108.466115
8/95 0.0274278140 5.00 0.595 109.061113
9/95 0.0286146590 5.00 0.624 109.685262
10/95 0.0264917600 5.01 0.580 110.265253
11/95 0.0261262300 5.04 0.572 110.836844
12/95 0.0265365700 5.06 0.581 111.418114
1/96 0.0242378560 5.07 0.533 111.950764
2/96 0.0235427380 4.99 0.528 112.478946
3/96 0.0239636480 4.94 0.546 113.024575
4/96 0.0235631940 4.90 0.544 113.568089
5/96 0.0250830810 4.87 0.585 114.153025
6/96 0.0220828540 4.89 0.516 114.668531
7/96 0.0238193190 4.88 0.560 115.228229
8/96 0.0255629680 4.86 0.606 115.834315
9/96 0.0221304100 4.89 0.524 116.358540
10/96 0.0240874040 4.94 0.567 116.925903
11/96 0.0247578130 4.97 0.582 117.508364
12/96 0.0241618420 4.93 0.576 118.084270
1/97 0.0251917050 4.92 0.605 118.688893
2/97 0.0236114340 4.91 0.571 119.259650
3/97 0.0226738380 4.86 0.556 119.816043
4/97 0.0238675950 4.88 0.586 120.402052
5/97 0.0250013980 4.89 0.616 121.017639
6/97 0.0235752560 4.91 0.581 121.598702
7/97 0.0249375280 4.96 0.611 122.210067
8/97 0.0256476800 4.92 0.637 122.847141
9/97 0.0238382100 4.95 0.592 123.438749
10/97 0.0260796860 4.96 0.649 124.087790
11/97 0.0224935020 4.95 0.564 124.651662
12/97 0.0248429880 4.96 0.624 125.276001
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 4.93 118.0842702 582.15545 1000.00000 1000.00000
1 1997 4.92 118.6888930 583.94935 1.08333 1001.99815 1.37503 1001.70645
2 1997 4.91 119.2596496 585.56488 1.08550 1003.68473 1.37738 1003.10034
3 1997 4.86 119.8160434 582.30597 1.08733 997.01149 1.37930 996.13838
4 1997 4.88 120.4020518 587.56201 1.08010 1004.93067 1.36972 1003.76006
5 1997 4.89 121.0176386 591.77625 1.08867 1011.04978 1.38020 1009.57924
6 1997 4.91 121.5987021 597.04963 1.09530 1018.96404 1.38821 1017.18749
7 1997 4.96 122.2100673 606.16193 1.10388 1033.41182 1.39867 1031.31337
8 1997 4.92 122.8471414 604.40794 1.11953 1029.30199 1.41809 1026.91106
9 1997 4.95 123.4387487 611.02181 1.11508 1039.45029 1.41204 1036.73623
10 1997 4.96 124.0877897 615.47544 1.12607 1045.90059 1.42555 1042.86727
11 1997 4.95 124.6516623 617.02573 1.13306 1047.40200 1.43398 1044.06012
12 1997 4.96 125.2760009 621.36896 1.13469 1053.63996 1.43562 1049.97363
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 6.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1053.64 990.95
TOTAL RETURN 5.36% -0.91%
WITH DEATH BENEFIT CHARGE
ERV 1049.97 987.50
TOTAL RETURN 5.00% -1.25%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 4.93 118.0842702 582.15545 1000.00000 1000.00000
1 1997 4.92 118.6888930 583.94935 1.08333 1001.99815 1.37503 1001.70645
2 1997 4.91 119.2596496 585.56488 1.08550 1003.68473 1.37738 1003.10034
3 1997 4.86 119.8160434 582.30597 1.08733 997.01149 1.37930 996.13838
4 1997 4.88 120.4020518 587.56201 1.08010 1004.93067 1.36972 1003.76006
5 1997 4.89 121.0176386 591.77625 1.08867 1011.04978 1.38020 1009.57924
6 1997 4.91 121.5987021 597.04963 1.09530 1018.96404 1.38821 1017.18749
7 1997 4.96 122.2100673 606.16193 1.10388 1033.41182 1.39867 1031.31337
8 1997 4.92 122.8471414 604.40794 1.11953 1029.30199 1.41809 1026.91106
9 1997 4.95 123.4387487 611.02181 1.11508 1039.45029 1.41204 1036.73623
10 1997 4.96 124.0877897 615.47544 1.12607 1045.90059 1.42555 1042.86727
11 1997 4.95 124.6516623 617.02573 1.13306 1047.40200 1.43398 1044.06012
12 1997 4.96 125.2760009 621.36896 1.13469 1053.63996 1.43562 1049.97363
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 6.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1053.64 990.95
TOTAL RETURN 5.36% -0.91%
WITH DEATH BENEFIT CHARGE
ERV 1049.97 987.50
TOTAL RETURN 5.00% -1.25%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 4.92 104.2890271 513.10201 1000.00000 1000.00000
1 1995 4.94 104.8801389 518.10789 1.08333 1008.67276 1.37503 1008.38106
2 1995 4.96 105.4870059 523.21555 1.09273 1017.52383 1.38656 1016.93543
3 1995 4.97 106.1258708 527.44558 1.10232 1024.64787 1.39832 1023.75870
4 1995 4.98 106.6842037 531.28733 1.11004 1031.00106 1.40770 1029.80776
5 1995 5.02 107.2856306 538.57387 1.11692 1044.02418 1.41602 1042.51540
6 1995 5.01 107.9173524 540.66594 1.13103 1046.94863 1.43349 1045.13152
7 1995 5.00 108.4661150 542.33058 1.13419 1049.03785 1.43709 1046.91225
8 1995 5.00 109.0611127 545.30556 1.13646 1053.65595 1.43954 1051.21562
9 1995 5.00 109.6852620 548.42631 1.14146 1058.54450 1.44546 1055.78620
10 1995 5.01 110.2652532 552.42892 1.14676 1065.12337 1.45174 1062.03996
11 1995 5.04 110.8368435 558.61769 1.15388 1075.90189 1.46034 1072.47748
12 1995 5.06 111.4181142 563.77566 1.16556 1084.67061 1.47469 1080.90545
1 1996 5.07 111.9507643 567.59038 1.17506 1090.83484 1.48628 1086.73298
2 1996 4.99 112.4789462 561.26994 1.18174 1077.50605 1.49429 1073.13731
3 1996 4.94 113.0245749 558.34140 1.16730 1070.71665 1.47560 1066.06240
4 1996 4.90 113.5680892 556.48364 1.15994 1065.99412 1.46587 1061.04943
5 1996 4.87 114.1530250 555.92523 1.15483 1063.76962 1.45898 1058.52574
6 1996 4.89 114.6685311 560.72912 1.15242 1071.80949 1.45551 1066.21721
7 1996 4.88 115.2282291 562.31376 1.16113 1073.67734 1.46608 1067.76429
8 1996 4.86 115.8343146 562.95477 1.16315 1073.73813 1.46821 1067.51328
9 1996 4.89 116.3585397 568.99326 1.16322 1084.09228 1.46787 1077.49601
10 1996 4.94 116.9259031 577.61396 1.17443 1099.34271 1.48159 1092.33934
11 1996 4.97 117.5083638 584.01657 1.19095 1110.33751 1.50200 1102.94546
12 1996 4.93 118.0842702 582.15545 1.20287 1105.59627 1.51659 1097.91406
1 1997 4.92 118.6888930 583.94935 1.19773 1107.80542 1.50967 1099.78760
2 1997 4.91 119.2596496 585.56488 1.20012 1109.67009 1.51224 1101.31797
3 1997 4.86 119.8160434 582.30597 1.20214 1102.29218 1.51435 1093.67434
4 1997 4.88 120.4020518 587.56201 1.19415 1111.04760 1.50384 1102.04228
5 1997 4.89 121.0176386 591.77625 1.20363 1117.81287 1.51534 1108.43124
6 1997 4.91 121.5987021 597.04963 1.21096 1126.56284 1.52413 1116.78445
7 1997 4.96 122.2100673 606.16193 1.22044 1142.53625 1.53562 1132.29345
8 1997 4.92 122.8471414 604.40794 1.23775 1137.99245 1.55694 1127.46009
9 1997 4.95 123.4387487 611.02181 1.23283 1149.21236 1.55030 1138.24728
10 1997 4.96 124.0877897 615.47544 1.24498 1156.34379 1.56513 1144.97864
11 1997 4.95 124.6516623 617.02573 1.25271 1158.00374 1.57438 1146.28828
12 1997 4.96 125.2760009 621.36896 1.25450 1164.90041 1.57618 1152.78081
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.10%
GROSS ANNUAL RETURN = 6.59%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1164.90 1115.39
TOTAL RETURN 16.49% 11.54%
AVERAGE ANNUAL RETURN 5.22% 3.71%
WITH DEATH BENEFIT CHARGE
ERV 1152.78 1103.79
TOTAL RETURN 15.28% 10.38%
AVERAGE ANNUAL RETURN 4.85% 3.35%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
4 1994 5.00 100.0000000 500.00000 1000.00000 1000.00000
5 1994 5.00 100.2021600 501.01080 1.08333 1000.93827 1.37503 1000.64657
6 1994 4.99 100.6587743 502.28728 1.08435 1002.40412 1.37592 1001.82011
7 1994 5.04 101.1676661 509.88504 1.08594 1016.48086 1.37754 1015.59641
8 1994 5.04 101.7900700 513.02195 1.10119 1021.63327 1.39648 1020.44809
9 1994 5.01 102.4680510 513.36494 1.10677 1021.20952 1.40315 1019.72716
10 1994 4.98 103.0632777 513.25512 1.10631 1019.88476 1.40216 1018.10688
11 1994 4.93 103.7135434 511.30777 1.10488 1014.91032 1.39993 1012.84412
12 1994 4.92 104.2890271 513.10201 1.09949 1017.37228 1.39269 1015.00563
1 1995 4.94 104.8801389 518.10789 1.10215 1026.19571 1.39567 1023.51245
2 1995 4.96 105.4870059 523.21555 1.11171 1035.20054 1.40736 1032.19518
3 1995 4.97 106.1258708 527.44558 1.12147 1042.44834 1.41930 1039.12085
4 1995 4.98 106.6842037 531.28733 1.12932 1048.91190 1.42883 1045.26067
5 1995 5.02 107.2856306 538.57387 1.13632 1062.16126 1.43727 1058.15900
6 1995 5.01 107.9173524 540.66594 1.15067 1065.13651 1.45500 1060.81438
7 1995 5.00 108.4661150 542.33058 1.15390 1067.26203 1.45866 1062.62183
8 1995 5.00 109.0611127 545.30556 1.15620 1071.96036 1.46114 1066.98977
9 1995 5.00 109.6852620 548.42631 1.16129 1076.93383 1.46715 1071.62893
10 1995 5.01 110.2652532 552.42892 1.16668 1083.62699 1.47353 1077.97653
11 1995 5.04 110.8368435 558.61769 1.17393 1094.59276 1.48225 1088.57068
12 1995 5.06 111.4181142 563.77566 1.18581 1103.51382 1.49682 1097.12511
1 1996 5.07 111.9507643 567.59038 1.19547 1109.78513 1.50858 1103.04009
2 1996 4.99 112.4789462 561.26994 1.20227 1096.22479 1.51672 1089.24041
3 1996 4.94 113.0245749 558.34140 1.18758 1089.31744 1.49774 1082.05933
4 1996 4.90 113.5680892 556.48364 1.18009 1084.51287 1.48787 1076.97114
5 1996 4.87 114.1530250 555.92523 1.17489 1082.24972 1.48087 1074.40958
6 1996 4.89 114.6685311 560.72912 1.17244 1090.42927 1.47735 1082.21647
7 1996 4.88 115.2282291 562.31376 1.18130 1092.32956 1.48808 1083.78677
8 1996 4.86 115.8343146 562.95477 1.18336 1092.39141 1.49024 1083.53199
9 1996 4.89 116.3585397 568.99326 1.18342 1102.92544 1.48989 1093.66452
10 1996 4.94 116.9259031 577.61396 1.19484 1118.44080 1.50383 1108.73058
11 1996 4.97 117.5083638 584.01657 1.21164 1129.62660 1.52454 1119.49585
12 1996 4.93 118.0842702 582.15545 1.22376 1124.80300 1.53934 1114.38895
1 1997 4.92 118.6888930 583.94935 1.21854 1127.05052 1.53232 1116.29060
2 1997 4.91 119.2596496 585.56488 1.22097 1128.94760 1.53494 1117.84394
3 1997 4.86 119.8160434 582.30597 1.22303 1121.44151 1.53707 1110.08560
4 1997 4.88 120.4020518 587.56201 1.21489 1130.34903 1.52640 1118.57911
5 1997 4.89 121.0176386 591.77625 1.22454 1137.23183 1.53808 1125.06395
6 1997 4.91 121.5987021 597.04963 1.23200 1146.13381 1.54700 1133.54250
7 1997 4.96 122.2100673 606.16193 1.24164 1162.38471 1.55866 1149.28422
8 1997 4.92 122.8471414 604.40794 1.25925 1157.76197 1.58030 1144.37833
9 1997 4.95 123.4387487 611.02181 1.25424 1169.17680 1.57356 1155.32739
10 1997 4.96 124.0877897 615.47544 1.26661 1176.43212 1.58861 1162.15976
11 1997 4.95 124.6516623 617.02573 1.27447 1178.12091 1.59801 1163.48906
12 1997 4.96 125.2760009 621.36896 1.27630 1185.13739 1.59984 1170.07901
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 24.27%
GROSS ANNUAL RETURN = 6.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1185.14 1144.84
TOTAL RETURN 18.51% 14.48%
AVERAGE ANNUAL RETURN 4.78% 3.79%
WITH DEATH BENEFIT CHARGE
ERV 1170.08 1130.30
TOTAL RETURN 17.01% 13.03%
AVERAGE ANNUAL RETURN 4.42% 3.43%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 5.01 107.9173524 540.66594 1000.00000 1000.00000
7 1995 5.00 108.4661150 542.33058 1.08333 1001.99554 1.37503 1001.70384
8 1995 5.00 109.0611127 545.30556 1.08550 1006.40655 1.37738 1005.82137
9 1995 5.00 109.6852620 548.42631 1.09027 1011.07587 1.38304 1010.19458
10 1995 5.01 110.2652532 552.42892 1.09533 1017.35973 1.38905 1016.17828
11 1995 5.04 110.8368435 558.61769 1.10214 1027.65491 1.39728 1026.16509
12 1995 5.06 111.4181142 563.77566 1.11329 1036.03041 1.41101 1034.22912
1 1996 5.07 111.9507643 567.59038 1.12237 1041.91821 1.42210 1039.80500
2 1996 4.99 112.4789462 561.26994 1.12874 1029.18713 1.42977 1026.79643
3 1996 4.94 113.0245749 558.34140 1.11495 1022.70218 1.41188 1020.02703
4 1996 4.90 113.5680892 556.48364 1.10793 1018.19143 1.40257 1015.23053
5 1996 4.87 114.1530250 555.92523 1.10304 1016.06668 1.39598 1012.81582
6 1996 4.89 114.6685311 560.72912 1.10074 1023.74602 1.39266 1020.17515
7 1996 4.88 115.2282291 562.31376 1.10906 1025.53011 1.40277 1021.65543
8 1996 4.86 115.8343146 562.95477 1.11099 1025.58817 1.40481 1021.41526
9 1996 4.89 116.3585397 568.99326 1.11105 1035.47801 1.40448 1030.96691
10 1996 4.94 116.9259031 577.61396 1.12177 1050.04456 1.41761 1045.16926
11 1996 4.97 117.5083638 584.01657 1.13755 1060.54631 1.43714 1055.31738
12 1996 4.93 118.0842702 582.15545 1.14893 1056.01769 1.45110 1050.50325
1 1997 4.92 118.6888930 583.94935 1.14402 1058.12777 1.44448 1052.29588
2 1997 4.91 119.2596496 585.56488 1.14631 1059.90883 1.44694 1053.76017
3 1997 4.86 119.8160434 582.30597 1.14823 1052.86177 1.44896 1046.44661
4 1997 4.88 120.4020518 587.56201 1.14060 1061.22457 1.43890 1054.45320
5 1997 4.89 121.0176386 591.77625 1.14966 1067.68645 1.44991 1060.56627
6 1997 4.91 121.5987021 597.04963 1.15666 1076.04405 1.45831 1068.55876
7 1997 4.96 122.2100673 606.16193 1.16571 1091.30116 1.46930 1083.39805
8 1997 4.92 122.8471414 604.40794 1.18224 1086.96112 1.48971 1078.77340
9 1997 4.95 123.4387487 611.02181 1.17754 1097.67789 1.48335 1089.09477
10 1997 4.96 124.0877897 615.47544 1.18915 1104.48952 1.49754 1095.53545
11 1997 4.95 124.6516623 617.02573 1.19653 1106.07504 1.50640 1096.78855
12 1997 4.96 125.2760009 621.36896 1.19825 1112.66244 1.50812 1103.00071
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.93%
GROSS ANNUAL RETURN = 5.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1112.66 1065.37
TOTAL RETURN 11.27% 6.54%
AVERAGE ANNUAL RETURN 4.22% 2.48%
WITH DEATH BENEFIT CHARGE
ERV 1103.00 1056.12
TOTAL RETURN 10.30% 5.61%
AVERAGE ANNUAL RETURN 3.87% 2.14%
T. Rowe Price New American Growth
12/1997
Assume ($10000 @ $10.00 on 3/31/1994)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
1/95 0.0200000000 10.31 0.194 100.193986
1/96 0.4000000000 14.88 2.693 102.887373
12/96 0.1400000000 17.53 0.822 103.709064
12/97 0.0500000000 20.66 0.251 103.960054
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
Return for YTD
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 17.67 103.7090635 1832.53915 1000.00000 1000.00000
1 1997 17.99 103.7090635 1865.72605 1.08333 1017.02646 1.37503 1016.73476
2 1997 17.91 103.7090635 1857.42933 1.10178 1011.40205 1.39804 1010.81538
3 1997 16.90 103.7090635 1752.68317 1.09569 953.27029 1.38990 952.42249
4 1997 17.05 103.7090635 1768.23953 1.03271 960.69856 1.30961 959.56633
5 1997 18.33 103.7090635 1900.98713 1.04076 1031.78063 1.31944 1030.28472
6 1997 19.25 103.7090635 1996.39947 1.11776 1082.44891 1.41668 1080.57900
7 1997 20.25 103.7090635 2100.10854 1.17265 1137.50737 1.48583 1135.22714
8 1997 19.82 103.7090635 2055.51364 1.23230 1112.12059 1.56098 1109.56011
9 1997 21.23 103.7090635 2201.74342 1.20480 1190.03234 1.52568 1186.96883
10 1997 20.61 103.7090635 2137.44380 1.28920 1153.98949 1.63212 1150.67252
11 1997 20.82 103.7090635 2159.22270 1.25016 1164.49760 1.58221 1160.81477
12 1997 21.35 103.9600535 2219.54714 1.26154 1195.76983 1.59616 1191.64950
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.12%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1195.77 1124.62
TOTAL RETURN 19.58% 12.46%
WITH DEATH BENEFIT CHARGE
ERV 1191.65 1120.75
TOTAL RETURN 19.16% 12.07%
Return for 1 Year
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1996 17.67 103.7090635 1832.53915 1000.00000 1000.00000
1 1997 17.99 103.7090635 1865.72605 1.08333 1017.02646 1.37503 1016.73476
2 1997 17.91 103.7090635 1857.42933 1.10178 1011.40205 1.39804 1010.81538
3 1997 16.90 103.7090635 1752.68317 1.09569 953.27029 1.38990 952.42249
4 1997 17.05 103.7090635 1768.23953 1.03271 960.69856 1.30961 959.56633
5 1997 18.33 103.7090635 1900.98713 1.04076 1031.78063 1.31944 1030.28472
6 1997 19.25 103.7090635 1996.39947 1.11776 1082.44891 1.41668 1080.57900
7 1997 20.25 103.7090635 2100.10854 1.17265 1137.50737 1.48583 1135.22714
8 1997 19.82 103.7090635 2055.51364 1.23230 1112.12059 1.56098 1109.56011
9 1997 21.23 103.7090635 2201.74342 1.20480 1190.03234 1.52568 1186.96883
10 1997 20.61 103.7090635 2137.44380 1.28920 1153.98949 1.63212 1150.67252
11 1997 20.82 103.7090635 2159.22270 1.25016 1164.49760 1.58221 1160.81477
12 1997 21.35 103.9600535 2219.54714 1.26154 1195.76983 1.59616 1191.64950
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.12%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1195.77 1124.62
TOTAL RETURN 19.58% 12.46%
WITH DEATH BENEFIT CHARGE
ERV 1191.65 1120.75
TOTAL RETURN 19.16% 12.07%
Return for 3 Years
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
12 1994 10.10 100.0000000 1010.00000 1000.00000 1000.00000
1 1995 10.37 100.1939864 1039.01164 1.08333 1027.64106 1.37503 1027.34936
2 1995 10.66 100.1939864 1068.06790 1.11328 1055.26606 1.41264 1054.66684
3 1995 11.37 100.1939864 1139.20563 1.14320 1124.40793 1.45020 1123.46180
4 1995 11.23 100.1939864 1125.17847 1.21811 1109.34487 1.54480 1108.08370
5 1995 11.55 100.1939864 1157.24054 1.20179 1139.75397 1.52365 1138.13501
6 1995 12.48 100.1939864 1250.42095 1.23473 1230.29164 1.56497 1228.21207
7 1995 13.43 100.1939864 1345.60524 1.33282 1322.61083 1.68883 1320.01695
8 1995 13.76 100.1939864 1378.66925 1.43283 1353.67700 1.81507 1350.63715
9 1995 14.36 100.1939864 1438.78565 1.46648 1411.23713 1.85717 1407.67404
10 1995 14.58 100.1939864 1460.82832 1.52884 1431.32892 1.93560 1427.30448
11 1995 15.05 100.1939864 1507.91950 1.55061 1475.91854 1.96259 1471.35238
12 1995 15.23 100.1939864 1525.95441 1.59891 1491.97181 2.02316 1486.92680
1 1996 15.14 102.8873732 1557.71483 1.61630 1521.40863 2.04457 1515.83034
2 1996 15.59 102.8873732 1604.01415 1.64819 1564.98064 2.08432 1558.80042
3 1996 16.19 102.8873732 1665.74657 1.69540 1623.51542 2.14340 1616.64934
4 1996 16.47 102.8873732 1694.55504 1.75881 1649.83470 2.22295 1642.38574
5 1996 16.82 102.8873732 1730.56562 1.78732 1683.10762 2.25834 1675.02935
6 1996 16.84 102.8873732 1732.62336 1.82337 1683.28557 2.30322 1674.71784
7 1996 15.65 102.8873732 1610.18739 1.82356 1562.51250 2.30279 1554.07097
8 1996 16.45 102.8873732 1692.49729 1.69272 1640.69262 2.13690 1631.37540
9 1996 17.38 102.8873732 1788.18255 1.77742 1731.67168 2.24320 1721.36194
10 1996 17.27 102.8873732 1776.86493 1.87598 1718.83576 2.36693 1708.10031
11 1996 17.98 102.8873732 1849.91497 1.86207 1787.63804 2.34869 1775.97462
12 1996 17.67 103.7090635 1832.53915 1.93661 1768.91057 2.44202 1756.85128
1 1997 17.99 103.7090635 1865.72605 1.91632 1799.02885 2.41573 1786.25176
2 1997 17.91 103.7090635 1857.42933 1.94895 1789.07977 2.45616 1775.85229
3 1997 16.90 103.7090635 1752.68317 1.93817 1686.24989 2.44186 1673.26466
4 1997 17.05 103.7090635 1768.23953 1.82677 1699.38983 2.30079 1685.81533
5 1997 18.33 103.7090635 1900.98713 1.84101 1825.12766 2.31805 1810.05702
6 1997 19.25 103.7090635 1996.39947 1.97722 1914.75531 2.48889 1898.41660
7 1997 20.25 103.7090635 2100.10854 2.07432 2012.14880 2.61039 1994.42526
8 1997 19.82 103.7090635 2055.51364 2.17983 1967.24187 2.74240 1949.33210
9 1997 21.23 103.7090635 2201.74342 2.13118 2105.06079 2.68040 2085.32770
10 1997 20.61 103.7090635 2137.44380 2.28048 2041.30420 2.86740 2021.56049
11 1997 20.82 103.7090635 2159.22270 2.21141 2059.89211 2.77971 2039.37892
12 1997 21.35 103.9600535 2219.54714 2.23155 2115.20989 2.80421 2093.55094
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 119.76%
GROSS ANNUAL RETURN = 30.01%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2115.21 2025.31
TOTAL RETURN 111.52% 102.53%
AVERAGE ANNUAL RETURN 28.37% 26.52%
WITH DEATH BENEFIT CHARGE
ERV 2093.55 2004.58
TOTAL RETURN 109.36% 100.46%
AVERAGE ANNUAL RETURN 27.93% 26.09%
Return for Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
3 1994 10.00 100.0000000 1000.00000 1000.00000 1000.00000
4 1994 10.12 100.0000000 1012.00000 1.08333 1010.91667 1.37503 1010.62497
5 1994 9.98 100.0000000 998.00000 1.09516 995.83649 1.38964 995.25435
6 1994 9.67 100.0000000 967.00000 1.07882 963.82487 1.36851 962.97112
7 1994 9.79 100.0000000 979.00000 1.04414 974.74133 1.32412 973.59701
8 1994 10.45 100.0000000 1045.00000 1.05597 1039.39826 1.33873 1037.89404
9 1994 10.22 100.0000000 1022.00000 1.12601 1015.39553 1.42714 1013.62330
10 1994 10.37 100.0000000 1037.00000 1.10001 1029.19859 1.39377 1027.10658
11 1994 9.95 100.0000000 995.00000 1.11497 986.39959 1.41231 984.09498
12 1994 10.10 100.0000000 1010.00000 1.06860 1000.20134 1.35316 997.57742
1 1995 10.37 100.1939864 1039.01164 1.08355 1027.84797 1.37170 1024.86052
2 1995 10.66 100.1939864 1068.06790 1.11350 1055.47852 1.40922 1052.11182
3 1995 11.37 100.1939864 1139.20563 1.14344 1124.63432 1.44669 1120.74012
4 1995 11.23 100.1939864 1125.17847 1.21835 1109.56822 1.54105 1105.39928
5 1995 11.55 100.1939864 1157.24054 1.20203 1139.98345 1.51996 1135.37778
6 1995 12.48 100.1939864 1250.42095 1.23498 1230.53934 1.56118 1225.23663
7 1995 13.43 100.1939864 1345.60524 1.33308 1322.87712 1.68474 1316.81910
8 1995 13.76 100.1939864 1378.66925 1.43312 1353.94955 1.81067 1347.36511
9 1995 14.36 100.1939864 1438.78565 1.46678 1411.52127 1.85267 1404.26383
10 1995 14.58 100.1939864 1460.82832 1.52915 1431.61710 1.93091 1423.84671
11 1995 15.05 100.1939864 1507.91950 1.55092 1476.21570 1.95784 1467.78791
12 1995 15.23 100.1939864 1525.95441 1.59923 1492.27220 2.01826 1483.32459
1 1996 15.14 102.8873732 1557.71483 1.61663 1521.71495 2.03962 1512.15811
2 1996 15.59 102.8873732 1604.01415 1.64852 1565.29573 2.07927 1555.02410
3 1996 16.19 102.8873732 1665.74657 1.69574 1623.84229 2.13821 1612.73287
4 1996 16.47 102.8873732 1694.55504 1.75916 1650.16688 2.21756 1638.40692
5 1996 16.82 102.8873732 1730.56562 1.78768 1683.44649 2.25286 1670.97145
6 1996 16.84 102.8873732 1732.62336 1.82373 1683.62448 2.29764 1670.66069
7 1996 15.65 102.8873732 1610.18739 1.82393 1562.82709 2.29721 1550.30610
8 1996 16.45 102.8873732 1692.49729 1.69306 1641.02295 2.13172 1627.42325
9 1996 17.38 102.8873732 1788.18255 1.77777 1732.02034 2.23776 1717.19179
10 1996 17.27 102.8873732 1776.86493 1.87636 1719.18183 2.36120 1703.96229
11 1996 17.98 102.8873732 1849.91497 1.86245 1787.99796 2.34300 1771.67217
12 1996 17.67 103.7090635 1832.53915 1.93700 1769.26672 2.43611 1752.59516
1 1997 17.99 103.7090635 1865.72605 1.91671 1799.39106 2.40988 1781.92441
2 1997 17.91 103.7090635 1857.42933 1.94934 1789.43998 2.45021 1771.55014
3 1997 16.90 103.7090635 1752.68317 1.93856 1686.58940 2.43594 1669.21104
4 1997 17.05 103.7090635 1768.23953 1.82714 1699.73199 2.29522 1681.73130
5 1997 18.33 103.7090635 1900.98713 1.84138 1825.49512 2.31244 1805.67201
6 1997 19.25 103.7090635 1996.39947 1.97762 1915.14083 2.48286 1893.81753
7 1997 20.25 103.7090635 2100.10854 2.07474 2012.55393 2.60406 1989.59360
8 1997 19.82 103.7090635 2055.51364 2.18027 1967.63795 2.73576 1944.60968
9 1997 21.23 103.7090635 2201.74342 2.13161 2105.48462 2.67390 2080.27582
10 1997 20.61 103.7090635 2137.44380 2.28094 2041.71519 2.86045 2016.66309
11 1997 20.82 103.7090635 2159.22270 2.21186 2060.30684 2.77298 2034.43835
12 1997 21.35 103.9600535 2219.54714 2.23200 2115.63577 2.79742 2088.47914
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 121.95%
GROSS ANNUAL RETURN = 23.67%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2115.64 2043.70
TOTAL RETURN 111.56% 104.37%
AVERAGE ANNUAL RETURN 22.10% 20.98%
WITH DEATH BENEFIT CHARGE
ERV 2088.48 2017.47
TOTAL RETURN 108.85% 101.75%
AVERAGE ANNUAL RETURN 21.68% 20.56%
Return for Product Inception
WITH DEATH BENEFIT CHARGE
FUND GROSS ADMIN/ ADMIN/
MONTH YEAR NAV SHARES VALUE MTHLY M&E ERV MTHLY M&E ERV
6 1995 12.48 100.1939864 1250.42095 1000.00000 1000.00000
7 1995 13.43 100.1939864 1345.60524 1.08333 1075.03846 1.37503 1074.74676
8 1995 13.76 100.1939864 1378.66925 1.16462 1100.28952 1.47781 1099.67747
9 1995 14.36 100.1939864 1438.78565 1.19198 1147.07529 1.51209 1146.11643
10 1995 14.58 100.1939864 1460.82832 1.24266 1163.40620 1.57595 1162.09937
11 1995 15.05 100.1939864 1507.91950 1.26036 1199.64933 1.59793 1197.96281
12 1995 15.23 100.1939864 1525.95441 1.29962 1212.69768 1.64724 1210.64336
1 1996 15.14 102.8873732 1557.71483 1.31376 1236.62438 1.66467 1234.17639
2 1996 15.59 102.8873732 1604.01415 1.33968 1272.04038 1.69703 1269.16227
3 1996 16.19 102.8873732 1665.74657 1.37804 1319.61835 1.74514 1316.26237
4 1996 16.47 102.8873732 1694.55504 1.42959 1341.01107 1.80990 1337.21673
5 1996 16.82 102.8873732 1730.56562 1.45276 1368.05581 1.83872 1363.79489
6 1996 16.84 102.8873732 1732.62336 1.48206 1368.20045 1.87526 1363.54126
7 1996 15.65 102.8873732 1610.18739 1.48222 1270.03423 1.87491 1265.31159
8 1996 16.45 102.8873732 1692.49729 1.37587 1333.58024 1.73985 1328.25221
9 1996 17.38 102.8873732 1788.18255 1.44471 1407.52943 1.82639 1401.51849
10 1996 17.27 102.8873732 1776.86493 1.52482 1397.09619 1.92713 1390.72099
11 1996 17.98 102.8873732 1849.91497 1.51352 1453.01974 1.91229 1445.98368
12 1996 17.67 103.7090635 1832.53915 1.57410 1437.79777 1.98828 1430.41362
1 1997 17.99 103.7090635 1865.72605 1.55761 1462.27837 1.96687 1454.35125
2 1997 17.91 103.7090635 1857.42933 1.58413 1454.19161 1.99978 1445.88409
3 1997 16.90 103.7090635 1752.68317 1.57537 1370.60989 1.98814 1362.35810
4 1997 17.05 103.7090635 1768.23953 1.48483 1381.29024 1.87329 1372.57674
5 1997 18.33 103.7090635 1900.98713 1.49640 1483.49188 1.88734 1473.73329
6 1997 19.25 103.7090635 1996.39947 1.60712 1556.34262 2.02643 1545.67492
7 1997 20.25 103.7090635 2100.10854 1.68604 1635.50555 2.12535 1623.84437
8 1997 19.82 103.7090635 2055.51364 1.77180 1599.00450 2.23284 1587.12990
9 1997 21.23 103.7090635 2201.74342 1.73225 1711.02585 2.18236 1697.85638
10 1997 20.61 103.7090635 2137.44380 1.85361 1659.20351 2.33461 1645.93764
11 1997 20.82 103.7090635 2159.22270 1.79747 1674.31204 2.26322 1660.44526
12 1997 21.35 103.9600535 2219.54714 1.81384 1719.27519 2.28317 1704.55167
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 77.50%
GROSS ANNUAL RETURN = 24.87%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1719.28 1646.21
TOTAL RETURN 71.93% 64.62%
AVERAGE ANNUAL RETURN 23.34% 21.28%
WITH DEATH BENEFIT CHARGE
ERV 1704.55 1632.11
TOTAL RETURN 70.46% 63.21%
AVERAGE ANNUAL RETURN 22.93% 20.88%
Mutual of Omaha Companies
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska 68175-1008
April 16, 1998
Re: Depositor: UNITED OF OMAHA LIFE INSURANCE COMPANY
Registrant: UNITED OF OMAHA SEPARATE ACCOUNT C
Form: N-4
File No. 33-89848
811-8190
Commissioners:
On behalf of the Registrant and Depositor identified above, we are transmitting
for filing under Rule 485 (b) of the Securities Act of 1933 a copy of
Post-effective Amendment No. 4 to the Registration Statement under the
Investment Company Act of 1940.
The Amendment brings financial statements and other information up to date
pursuant to Section 10(a)(3) of the 1933 Act. As counsel who reviewed the
Amendment, I represent that the Amendment does not contain disclosures which
would render it ineligible to become effective pursuant to paragraph (b) or Rule
485.
If you have any questions or comments on the Amendment, please contact the
undersigned at (402) 351-5087.
If you have any questions or problems relating to the EDGAR transmission of this
Amendment, please contact Jean Norris at (402) 423-9583.
Sincerely,
/s/ Kenneth W. Reitz
Kenneth W. Reitz
First V.P. & Counsel
United of Omaha Life Insurance Company
