As filed with the Securities and Exchange Commission on April 26 , 1999
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. 7 [x]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [x]
Amendment No. 17
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
Internet: [email protected]
It is proposed that this filing will become effective (check appropriate
box):
[ ] immediately upon filing pursuant to paragraph (b)
[x] on pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on the 80th day after filing pursuant to paragraph (a)(i)
If appropriate, check the following box:
[x] 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.................................. Introduction and Summary
4. Condensed Financial Information........... Financial Statements
5. General
(a) Depositor................................. About Us
(b) Registrant................................ Variable Investment Options
(c) Portfolio Company......................... Variable Investment Options
(d) Fund Prospectus........................... Variable Investment Options
(e) Voting Rights............................. Voting Rights
6. Deductions and Expenses
(a) General................................... Expenses
(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............................. Other Expenses; Investment
Advisory Fees
(g) Organizational Expenses................... N/A
7. Policies
(a) Persons with Rights....................... Important Policy Provisions;
Policy Distributions; Voting
Rights
(b) (i) Allocation of Premium
Payments............................ Introduction and Summary:
Purchase Payment Flow Chart;
Investment Options; Dollar
Cost Averaging; Systematic
Transfer Enrollment Program
(ii) Transfers........................... Transfers
(iii) Exchanges........................... N/A
(c) Changes................................... Adding, Deleting or
Substituting Variable
Investments; Selecting an
Annuity Payout Option;
Annuity Starting Date
(d) Inquiries................................. Miscellaneous: Do You Have
Questions?
8. Annuity Period............................ Annuity Payout Options
9. Death Benefit............................. Death Benefits
10. Purchase and Policy Values
(a) Purchases................................. Policy Application and
Issuance
(b) Valuation................................. Accumulation Value
(c) Daily Calculation......................... Accumulation Value
(d) Underwriter............................... Distributor of the Policies
11. Redemptions
(a) By Owners................................. Withdrawals
By Annuitant.............................. N/A
(b) Check Delay............................... Policy Application and
Issuance
(c) Lapse..................................... N/A
(d) Free Look................................. Summary
12. Taxes..................................... Federal Tax Matters
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) About Us
18. Services
(a) Fees and Expenses
of Registrant............................. N/A
(b) Management Policies....................... N/A
(c) Custodian................................. Custody of Assets
Independent
Auditors ................................ Financial Statements
(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
DataCalculation of Yields and Total Returns; Other Performance Data
22. Annuity Payments.......................... (Prospectus) Annuity Payments
23. Financial Statements...................... Financial Statements
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 Persons Controlled By or
with the Depositor or Registrant ............. Under Common 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
<PAGE>
United of Omaha PROSPECTUS: May 1, 1999
A Mutual of Omaha Company
ULTRANNUITY SERIES V
Flexible Payment
Variable Deferred Annuity Policy
This prospectus describes the ULTRANNUITY SERIES V, which is a variable
annuity policy offered by United of Omaha Life Insurance Company. To purchase a
Policy, generally you must invest at least $5,000. Further investment is
optional.
<TABLE>
<CAPTION>
<S> <C>
The Policy includes 25 variable options (where you
The investment portfolios offered have the investment risk) with investment
through the Policy may have names that portfolios from:
are nearly the same or similar to the
names of retail mutual funds. However, ss. Alger American Fund
these investment portfolios are not the ss. Federated's Insurance Management Series
same as those retail mutual funds, even ss. Fidelity's VIP Fund and VIP Fund II
though they have similar names and ss. MFS Variable Insurance Trust
characteristics and the same managers. ss. Morgan Stanley Dean Witter Universal Funds
The investment performance of these ss. Pioneer Variable Contracts Trust
investment portfolios is not necessarily ss. Scudder Variable Life Investment Fund
related to the performance of the retail ss. T.Rowe Price Equity Series, Fixed Income Series
mutual funds. The investment portfolios and International Series
are described in separate prospectuses
that accompany this prospectus. and three fixed rate options (where we have the
investment risk).
</TABLE>
The variable options are not direct investments in mutual fund shares, but
are offered through subaccounts of United of Omaha Separate Account C. The value
of your Policy will go up or down based on the investment performance of the
variable options that you choose.
Please Read this Prospectus Carefully. It provides information
you should consider before investing in a Policy. Keep this
prospectus and the other prospectuses for the investment
portfolios for future reference.
A Statement of Additional Information about us and the Policy, with the same
date as this Prospectus, is on file with the Securities and Exchange Commission
("SEC") and is incorporated into this prospectus by reference. You may obtain a
copy by writing or calling us, or you may access it in our registration on the
SEC's Web site (HTTP://WWW.SEC.GOV), or you may review and copy it at the SEC's
Public Reference Room in Washington D.C. (call the SEC at 1-800-SEC-0330 for
details and public hours). The Table of Contents for the Statement of Additional
Information is at the end of this prospectus.
The SEC does not pass upon the accuracy or adequacy of this prospectus, and has
not approved or disapproved the Policy. Any representation to the contrary is a
criminal offense.
Remember that the Policy and the investment portfolios:
o are subject to risk, including possible loss of principal
o are not bank deposits
o are not government insured
o are not endorsed by any bank or government agency
o may not achieve their goals
<PAGE>
- -----------------------------------------------------------
CONTENTS
Page(s)
--------
DEFINITIONS 3
------------------------------------------------ --------
INTRODUCTION AND SUMMARY 4-9
Comparison to Other Policies and
Investments
How the Policy Operates
Summary of Expense Charges
Examples of Expenses
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FINANCIAL STATEMENTS 10-12
------------------------------------------------ --------
ABOUT US 12
------------------------------------------------ --------
INVESTMENT OPTIONS 13-20
Variable Investment Options
Fixed Rate Options
Transfers
Dollar Cost Averaging
STEP Program
Asset Allocation Program
Rebalancing Program
------------------------------------------------ --------
IMPORTANT POLICY PROVISIONS 21-23
Policy Application and Issuance
Accumulation Value
Telephone Transactions
Death of Annuitant
Minor Owner or Beneficiary
Policy Termination
------------------------------------------------ --------
EXPENSES 24-26
Withdrawal Charge
Mortality and Expense Risk Charge
Administrative Charges
Enhanced Death Benefit Charge
Transfer Fee
Premium Tax Charge
Other Taxes
Other Expenses
------------------------------------------------ --------
POLICY DISTRIBUTIONS 27-31
Withdrawals
Annuity Payments
Death Benefits
------------------------------------------------ --------
FEDERAL TAX MATTERS 31-34
------------------------------------------------ --------
MISCELLANEOUS 34
Distributor of the Policies
Voting Rights
Year 2000 Issues
Legal Proceedings
Do You Have Questions?
------------------------------------------------ --------
Statement of Additional Information Table of 35-62
Contents
2
<PAGE>
- -----------------------------------------------------------
DEFINITIONS
Accumulation Value is the dollar value of all amounts accumulated under the
Policy (in both the variable investment options and the fixed rate options).
Annuitant is the person on whose life annuity payments involving life
contingencies are based.
Annuity Starting Date is the date when annuity payments are scheduled to begin
(the end of the accumulation phase). The latest Annuity Starting Date permitted
is the Annuitant's 95th birthday (85th birthday 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.
Beneficiary is the person(s) or other legal entity who receives Policy benefits,
if any, upon your death. If there are joint Owners, the surviving joint Owner is
the primary Beneficiary and any named Beneficiary is a contingent Beneficiary.
Business Day is each day that the New York Stock Exchange is open for trading.
Cash Surrender Value is the Accumulation Value less any Withdrawal Charge, any
Policy Fee, and any premium tax charge not previously deducted.
Owner is you -- 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.
Policy Year -- A Policy Year begins on the Date of Issue and each Policy
anniversary.
Series Funds are diversified, open-end investment management companies in which
the Variable Account invests. Each Series Fund has a number of different
investment portfolios.
Subaccount is a segregated account within the Variable Account investing in a
specified investment portfolio of one of the Series Funds.
Us, We, Our is United of Omaha Life Insurance Company.
Valuation Period is the period commencing at the close of business of the New
York Stock Exchange on each business day and ending at the close of business for
the next succeeding Business Day.
Variable Account -- United of Omaha Separate Account C, a separate account
maintained by us.
Written Notice or Request -- Written Notice, signed by you, that gives us the
information we require and is received at United of Omaha, Variable Product
Service, P.O. Box 8430, Omaha, Nebraska 68103-0430.
- ----------
This prospectus may only be used to offer the Policy where the Policy may
lawfully be sold. No one is authorized to give information or make
representations about the Policy that isn't in the prospectus; if anyone does
so, you should not rely upon it as being accurate or adequate.
This prospectus generally describes only the variable investment options,
except when the fixed rate options are specifically mentioned.
3
<PAGE>
- -------------------------------------------------------------------
INTRODUCTION AND SUMMARY
This Introduction and Summary briefly notes some of the important things
about the Policy but it is not a complete description of the Policy. The rest of
this prospectus contains more complete information, and you should read the
entire prospectus carefully.
The Ultrannuity Policy is a contract between you and United of Omaha Life
Insurance Company. It is a variable annuity policy, which means that you can
allocate your investment to up to 25 different variable investment portfolios,
where you can gain or lose money on your investment. You can also allocate your
investment to three fixed rate options, where we guarantee you will earn a fixed
rate of interest. It is a deferred annuity, which means it has two phases: an
accumulation (or deferral) phase and an annuity payout phase.
During the accumulation phase, any earnings that you leave in the Policy are
not taxed. During this phase you can put additional money into the Policy,
transfer amounts among the investment options, and withdraw some or all of the
value of your Policy. Some restrictions may apply to transfers (especially to
transfers out of the fixed rate options). Withdrawals may be subject to a
withdrawal charge, they may be taxable, and a penalty tax may apply.
The accumulation phase ends and the annuity payout phase begins on the
Annuity Starting Date that you select. During the annuity payout phase, we will
make periodic payments to you. You can select payments that are guaranteed to
last for your entire life or for some other period. You can select payments that
vary in amount, depending on the investment performance of the portfolios you
pick, or payments that are fixed in amount. Some or all of each payment will be
taxable.
o COMPARISON TO OTHER POLICIES AND INVESTMENTS
Compared to fixed annuities. Like fixed-interest annuities, the Policy:
o offers the ability to accumulate capital on a tax-deferred basis;
o offers the ability to have a guaranteed minimum return on your
investment (if you choose a fixed rate option);
o allows you to make partial or full withdrawals from your Policy;
o and can provide annuity payments for the rest of your life or for some
other period.
The Policy is different from fixed-interest annuities in that, to the extent
you select variable investment options, your Accumulation Value will reflect the
investment experience of the selected variable investment options, so you have
both the investment risk and opportunity, not us.
Compared to mutual funds. Although the underlying investment portfolios
operate like mutual funds and have the same investment risk, in many ways the
Policy differs from mutual fund investments. The main differences are:
o The Policy provides a death benefit that could be higher than the
value of the Policy.
o Insurance-related charges not associated with direct mutual fund
investments are deducted from the Policy.
o Federal income tax liability on any earnings generally is deferred
until you receive a distribution from the Policy. You can make
transfers from one underlying investment portfolio to another without
tax liability (under current law).
o Dividends and capital gains distributed by the investment portfolios
are automatically reinvested. Withdrawals before age 59 1/2 generally
are subject to a 10% federal tax penalty. Also, Policy earnings that
would be treated as capital gains in a mutual fund are treated as
ordinary income when distributed, although taxation of them is
deferred until such earnings are distributed. Taxable earnings are
considered to be paid out first followed by the return of your
investment.
o Most states grant you a short time period to review your policy and
cancel it. The terms of this "right to examine" period vary by state
(see the cover of your Policy).
4
<PAGE>
o HOW THE POLICY OPERATES
The following chart summarizes how the Policy operates. For complete
information, refer to specific sections of this prospectus.
--------------------------------------------------
PURCHASE PAYMENT FLOW CHART
--------------------------------------------------
PURCHASE PAYMENTS
o Minimum initial purchase payment is $5,000
($2,000 if you elect to make electronic funds
transfer payments of at least $100 per month, or
quarterly, semiannual or annual payment
equivalents).
o Minimum additional purchase payment is $500.
o No Purchase Payments after earlier of the
Annuity Starting Date or your 88th birthday.
--------------------------------------------------
------------------------------------------------------------------
DEDUCTIONS BEFORE ALLOCATING PURCHASE PAYMENTS
In some states, premium taxes up to 3.5% are deducted.
------------------------------------------------------------------
----------------------------------------------------------------------------
INVESTMENT OF PURCHASE PAYMENTS
You direct the allocation of all purchase payments among 25 Subaccounts of
the Variable Account, the Fixed Account and the Systematic Transfer
Account. Each Subaccount invests in a corresponding investment portfolio of
one of the Series Funds.
---------------------------------------------------------------------------
-----------------------------------------------------------------------------
DEDUCTIONS FROM ASSETS
o Daily charges deducted from the net assets in the Variable Account equal an
annual rate of:
- 1.00% for our mortality and expense risk;
- 0.20% for our administrative expenses;
- 0.35% if you elect the optional Enhanced Death Benefit*
o Annual Policy Fee of $30 per year (waived if Accumulation Value is
more than $50,000 on the Policy anniversary).
o $10 transfer fee (first 12 transfers per year are free).
o Investment advisory fees and fund expenses are deducted from the assets
of each investment portfolio.
o Where a state levies premium taxes on the Policy, we will deduct those
taxes from purchase payments, upon surrender, upon death of any Owner, or
at the Annuity Starting Date.The timing of the deduction varies by state.
*This charge is deducted annually (and on surrender) on Policies issued
before 5/01/98.
-----------------------------------------------------------------------------
------------------------------------------------------------------------
ACCUMULATION VALUE
o Your Accumulation Value is equal to your purchase payments
adjusted up or down each Business Day to reflect the Subaccounts'
investment experience, charges deducted and other Policy
transactions (such as partial withdrawals).
o Accumulation Value may vary daily. There is no minimum guaranteed
Accumulation Value for the variable options.
o Accumulation Value can be transferred among the Subaccounts and
the Fixed Account.
o Dollar cost averaging and asset rebalancing programs are
available.
o Accumulation Value is the starting point for calculating the Cash
Surrender Value and the death benefit amount.
----------------------------------------------------------------------
5
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------- --------------------------------------
ACCUMULATION VALUE BENEFITS DEATH BENEFITS
You can withdraw all or part of the Cash Surrender Value.
(The Cash Surrender Value is the Accumulation Value less any o Available as a lump-sum or under
applicable withdrawal charge, Policy fee, premium tax a variety of payment options.
charge, and Enhanced Death Benefit Charge.) Each Policy o If you die by accident, you
Year, up to 15% of the Accumulation Value as of the date of receive double the death benefit
the first withdrawal that year may be withdrawn without a payable if death was not by
Withdrawal Charge. Thereafter, the Withdrawal Charge is accident.*
calculated separately for each purchase payment withdrawn o An Enhanced Death Benefit is
based on the number of years elapsed since the purchase available (for an extra charge).*
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. (Income taxes * Accidental and Enhanced Death
and penalties may apply.) Benefits may not be available in all
o Fixed and variable Annuity Payout Options are available. states.
- ------------------------------------------------------------------- --------------------------------------
</TABLE>
o SUMMARY OF CHARGES AND EXPENSES
The following table lists various costs and expenses that you will pay (directly
or indirectly) if you invest in a Policy. In addition to these expenses, in some
states you will pay a premium tax charge.
Policy Owner Transaction Expenses
o Maximum Withdrawal Charge1 7%
(as a % of each purchase payment withdrawn)
o Transfer Fee - First 12 Transfers Per Year: NO FEE
- Over 12 Transfers in One Year: $10 each
Variable Account Annual Expenses
(deducted daily to equal this annual % of Accumulation Value)
o Mortality and Expense Risk Fees 1.00%
o Administrative Expense Charge 0.20%
Total Variable Account Annual Expenses 1.20%
Other Annual Expenses
o Annual Policy Fee $30 Per Year
(waived if Accumulation Value is greater than
$50,000 on the Policy Anniversary)
o Current Annual Enhanced Death Benefit Charge (Optional)
(as a % of Average Death Benefit Amount)2 0.35%
Series Fund Annual Expenses
o The following table shows the expenses for each investment
portfolio for 1998. Expenses could be higher (or lower) in the
future. These expenses may reflect fee waivers and/or expense
reimbursements. Fee waivers and expense reimbursements could stop
at any time.
1 Each Policy year up to 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.
2 If the Policy has been issued with the Enhanced Death Benefit, the Death
Benefit Charge will apply. This charge will never exceed 0.35% of the
Average Death Benefit Amount.
6
<PAGE>
<TABLE>
<CAPTION>
Series Fund Annual Expenses1 Management Other Expenses Total Portfolio
(as a percentage of average net assets) Fees ( after Annual Expenses
(after fee expense (after fee waiver
Portfolio: waiver)(a) reimbursement)(a) and expense
reimbursement)(a)
- ------------------------------------------------- ---------------- ---------------- ===================
<S> <C> <C> <C> <C>
Alger American Growth 0.75% 0.04% 0.79%
Alger American Small Capitalization 0.85% 0.04% 0.89%
Federated Prime Money Fund II (a) 0.49% 0.31% 0.80%
Federated Fund for U.S. Government
Securities II (a) 0.52% 0.33% 0.85%
Fidelity VIP II Asset Manager: Growth (a) 0.59% 0.13% 0.72%
Fidelity VIP II Contrafund (a) 0.59% 0.07% 0.66%
Fidelity VIP Equity Income (a) 0.49% 0.08% 0.57%
Fidelity VIP II Index 500 (a) 0.24% 0.04% 0.28%
MFS Capital Opportunities Series (a) 0.75% 0.25% 1.00%
MFS Emerging Growth Series 0.75% 0.10% 0.85%
MFS Global Governments Series (a) 0.75% 0.25% 1.00%
MFS High Income Series (a) 0.75% 0.25% 1.00%
MFS Research Series 0.75% 0.11% 0.86%
MSDW Emerging Markets Equity (a) 0.00% 1.95% 1.95%
MSDW Fixed Income (a) 0.06% 0.64% 0.70%
Pioneer Capital Growth 0.65% 0.09% 0.74%
Pioneer Real Estate Growth (a) 1.00% 0.19% 1.19%
Scudder VLIF Global Discovery (a), (b) 0.91% 1.06% 1.97%
Scudder VLIF Growth & Income (c) 0.47% 0.32% 0.79%
Scudder VLIF International 0.87% 0.18% 1.05%
T. Rowe Price Equity Income (d) 0.00% 0.85% 0.85%
T. Rowe Price International Stock (d) 0.00% 1.05% 1.05%
T. Rowe Price Limited-Term Bond (d) 0.00% 0.70% 0.70%
T. Rowe Price New America Growth (d) 0.00% 0.85% 0.85%
T. Rowe Price Personal Strategy Balanced (d) 0.00% 0.90% 0.90%
=======================================================================================================
(a) Without fee waiver or expense reimbursement limits the following funds would
have had the charges set forth below:
Total Portfolio
Portfolio Management Fees Other Expenses Annual Expenses
-------------------------------------- ------------------ --------------- ===================
Federated Prime Money Fund II 0.50% 0.31% 0.81%
Federated Fund for U.S. Government
Securities II 0.60% 0.33% 0.93%
Fidelity VIP II Asset Manager: Growth 0.59% 0.14% 0.73%
Fidelity VIP II Contrafund 0.59% 0.11% 0.70%
Fidelity VIP Equity Income 0.49% 0.09% 0.58%
Fidelity VIP II Index 500 0.24% 0.11% 0.35%
MFS Capital Opportunities Series 0.75% 0.36% 1.11%
MFS Global Governments Series 0.75% 0.36% 1.11%
MFS High Income Series 0.75% 0.21% 0.96%
MSDW Emerging Markets Equity 1.25% 2.20% 3.45%
MSDW Fixed Income 0.40% 0.64% 1.04%
Pioneer Real Estate Growth 1.00% 0.20% 1.20%
Scudder VLIF Global Discovery 0.97% 1.06% 2.03%
-------------------------------------- ------------------ --------------- ===================
(b) Other Expenses include a 0.25% 12b-1 fee assessed for payment of
distribution administration expenses.
(c) Other Expenses include a 0.23% 12b-1 fee assessed for payment of
distribution administration expenses.
(d) T. Rowe Price Funds do not itemize management fees and other expenses.
=======================================================================================================
</TABLE>
3 The fee and expense data regarding each Series Fund, which are fees and
expenses for 1998, was provided to United of Omaha by the Series Fund. The
Series Funds are not affiliated with United of Omaha. We have not
independently verified these figures.
7
<PAGE>
o EXAMPLES OF EXPENSES
The following tables contain examples of the overall expenses you would pay,
in different situations, over different time periods. These examples are based
on certain assumptions, so your actual expenses will, in all likelihood, be
different. In addition, the examples do not reflect any premium tax charges,
which apply in some states. These examples can help you compare the expenses of
the Ultrannuity Series V Policy with expenses of other variable annuity
policies. There are two sets of examples - one shows expenses without the
optional Enhanced Death Benefit and the other shows expenses with the Enhanced
Death Benefit.
<TABLE>
<CAPTION>
======================== ====================== =======================
Examples1 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
- ----------------------------------- ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
<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 84 117 151 268 84 68 118 268 22 68 118 268
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Fidelity VIP II Asset Manager Growth 83 113 144 251 83 64 111 251 20 64 111 251
Fidelity VIP II Contrafund 82 111 140 244 82 62 108 244 20 62 108 244
Fidelity VIP Equity Income 81 108 135 233 81 59 103 233 19 59 103 233
Fidelity VIP II Index 500 78 99 119 196 78 50 87 196 16 50 87 196
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
MFS Emerging Growth Series 85 122 159 287 85 72 127 287 23 72 127 287
MFS High Income Series 84 117 151 268 84 68 118 268 22 68 118 268
MFS Research Series 85 122 159 287 85 72 127 287 23 72 127 287
MFS Capital Opportunities Series 85 122 159 287 85 72 127 287 23 72 127 287
MFS Global Governments Series 84 117 151 269 84 68 119 269 22 68 119 269
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
MSDW Emerging Markets Equity 95 152 212 406 95 102 179 406 33 102 179 406
MSDW Fixed Income 82 112 143 249 82 63 110 249 20 63 110 249
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Pioneer Capital Growth 83 113 145 254 83 64 112 254 20 64 112 254
Pioneer Real Estate Growth 87 128 170 311 87 78 137 311 25 78 137 311
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Scudder VLIF Global Discovery 95 152 213 409 95 103 180 409 33 103 180 409
Scudder VLIF Growth & Income 83 115 148 260 83 66 115 260 21 66 115 260
Scudder VLIF International 86 123 162 293 86 74 129 293 24 74 129 293
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
T. Rowe Price Equity Income 84 117 151 268 84 68 118 268 22 68 118 268
T. Rowe Price International Stock 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. These examples are based on each investment portfolios' expenses for
1998. Actual expenses paid may be greater than or less than those shown. 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.
8
<PAGE>
<TABLE>
<CAPTION>
======================== ====================== =======================
Examples1 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 87 128 170 312 87 79 138 312 25 79 138 312
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Fidelity VIP II Asset Manager Growth 86 124 163 296 86 75 130 296 24 75 130 296
Fidelity VIP II Contrafund 86 122 160 288 86 73 127 288 23 73 127 288
Fidelity VIP Equity Income 85 119 155 277 85 70 122 277 22 70 122 277
Fidelity VIP II Index 500 82 110 139 240 82 61 106 240 19 61 106 240
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
MFS Capital Opportunities 89 133 178 331 89 83 146 331 27 83 146 331
MFS Emerging Growth Series 87 128 170 312 87 79 138 312 25 79 138 312
MFS High Income Series 89 133 178 331 89 83 146 331 27 83 146 331
MFS Research Series 88 128 171 313 88 79 138 313 25 79 138 313
MFS Global Governments Series 89 133 178 331 89 83 146 331 27 83 146 331
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
MSDW Emerging Markets Equity 98 163 231 450 98 113 198 450 36 113 198 450
MSDW Fixed Income 86 123 162 293 86 74 129 293 24 74 129 293
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Pioneer Capital Growth 86 124 164 298 86 75 132 298 24 75 132 298
Pioneer Real Estate Growth 91 139 189 355 91 89 156 355 28 89 156 355
- ------------------------------------ ----- ----- ----- ------ ---- ----- ----- ----- ----- ---- ----- ======
Scudder VLIF Global Discovery 99 163 232 453 99 114 200 453 36 114 200 453
Scudder VLIF Growth & Income 87 126 167 304 87 77 134 304 24 77 134 304
Scudder VLIF International 89 134 181 337 89 85 149 337 27 85 149 337
==================================== ===== ===== ===== ====== ==== ===== ===== ===== ===== ==== ===== ======
T. Rowe Price Equity Income 87 128 170 312 87 79 138 312 25 79 138 312
T. Rowe Price International Stock 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 79 138 312 25 79 138 312
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. These examples are based on each investment portfolios' expenses for
1998. Actual expenses paid may be greater than or less than those shown. 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.
For more detailed information about the Policy,
Please read the rest of this Prospectus and the Policy.
- --------
5 The $30 annual Policy Fee is reflected as a daily 0.10% charge in these
Examples, based on an average Accumulation Value of $30,000.
9
<PAGE>
- -----------------------------------------------------------
FINANCIAL STATEMENTS
The Financial Statements for United of Omaha and the Variable Account and the
related independent auditor's reports are contained in the Statement of
Additional Information. (See the cover page on how to get a copy.) At December
31, 1998, net assets of the Subaccounts were represented by the following
Accumulation Unit Values and Accumulation Units. This information should be read
in conjunction with the Variable Account's financial statements and related
notes included in the Statement of Additional Information.
<TABLE>
<CAPTION>
Accumulation Unit Accumulation Unit Number of
Subaccount Value on Value at End of Accumulation Units
(Date of Inception) Commencement Date Year at End of Year**
($)* (December 31) (December 31)
($)*
- ------------------------------------------- -------- --------------------- ---------------------
<S> <C> <C> <C>
Alger American Growth (6/5/95) 10.
1995..................................... 11.673 140,897
1996..................................... 13.071 1,358,882
1997..................................... 16.240 1,918,481
1998..................................... 23.759 2,064,701
Alger American Small Capitalization 10.
(6/5/95)
1995..................................... 12.094 148,670
1996..................................... 12.448 1,474,107
1997..................................... 13.690 2,021,476
1998..................................... 15.638 2,138,203
Federated Prime Money Fund II (6/5/95) 1.
1995..................................... 1.023 3,065,603
1996..................................... 1.059 21,525,823
1997..................................... 1.098 19,485,025
1998..................................... 1.138 34,414,986
Federated Fund for U.S. Government 10.
Securities II (6/5/95)
1995..................................... 10.570 122,440
1996..................................... 10.882 1,128,539
1997..................................... 11.674 1,824,790
1998..................................... 12.417 2,487,692
Fidelity VIP II Asset Manager: Growth 10.
(6/5/95)
1995..................................... 11.269 199,570
1996..................................... 13.353 1,655,034
1997..................................... 16.500 2,748,520
1998..................................... 19.167 2,875,591
Fidelity VIP II Contrafund (6/5/95) 10.
1995..................................... 11.740 150,364
1996..................................... 14.070 1,785,274
1997..................................... 17.257 2,992,115
1998..................................... 22.162 3,173,298
Fidelity VIP Equity Income (6/5/95) 10.
1995..................................... 11.596 233,679
1996..................................... 13.090 2,256,678
1997..................................... 16.571 3,528,096
1998..................................... 18.276 3,996,092
Fidelity VIP II Index 500 (5/1/97) 10.
1997..................................... 12.166 829,118
1998..................................... 15.425 2,150,193
10
<PAGE>
MFS Emerging Growth Series (6/5/95) 10.
1995..................................... 11.659 123,460
1996..................................... 13.480 1,854,145
1997..................................... 16.230 2,890,806
1998..................................... 21.521 3,084,172
MFS High Income Series (6/5/95) 10.
1995..................................... 10.452 87,378
1996..................................... 11.548 859,361
1997..................................... 12.960 1,729,635
1998..................................... 12.782 2,002,534
MFS Research Series (6/5/95) 10.
1995..................................... 10.986 117,165
1996..................................... 13.277 1,381,316
1997..................................... 15.775 2,608,735
1998..................................... 19.231 2,811,129
MFS Capital Opportunities Series (5/1/97) 10.
1997..................................... 12.394 292,197
1998..................................... 15.528 1,117,680
MFS Global Governments Series (6/5/95) 10.
1995..................................... 10.243 56,393
1996..................................... 10.527 819,686
1997..................................... 10.283 1,302,843
1998..................................... 10.963 1,444,757
MSDW Emerging Markets Equity 10.
(5/1/98)
1998 7.002 14,713
MSDW Fixed Income (5/1/98) 10.
1998 10.462 80,837
Pioneer Capital Growth (5/1/97) 10.
1997..................................... 11.756 383,956
1998..................................... 11.156 722,689
Pioneer Real Estate Growth (5/1/97) 10.
1997..................................... 12.229 428,572
1998..................................... 9.818 650,669
Scudder VLIF Global Discovery (5/1/97) 10.
1997..................................... 11.478 194,110
1998..................................... 13.176 300,000
Scudder VLIF Growth & Income (5/1/97) 10.
1997..................................... 12.190 561,594
1998..................................... 12.847 1,075,906
Scudder VLIF International (6/5/95) 10.
1995..................................... 10.642 99,029
1996..................................... 12.067 1,269,457
1997..................................... 13.004 2,391,655
1998..................................... 15.223 2,455,634
T.Rowe Price Equity Income (6/5/95) 10.
1995..................................... 11.625 121,994
1996..................................... 13.731 1,861,298
1997..................................... 17.481 3,837,388
1998..................................... 18.839 4,407,085
11
<PAGE>
T.Rowe Price International (6/5/95) 10.
1995..................................... 10.569 181,399
1996..................................... 11.976 1,736,784
1997..................................... 12.200 2,857,269
1998..................................... 13.964 2,966,530
T.Rowe Price Limited-Term Bond (6/5/95) 10.
1995..................................... 10.373 56,018
1996..................................... 10.582 631,437
1997..................................... 11.160 1,302,580
1998..................................... 11.828 2,346,553
T.Rowe Price New America Growth (6/5/95) 10.
1995..................................... 13.061 58,555
1996..................................... 15.496 917,255
1997..................................... 18.543 1,599,824
1998..................................... 21.712 1,914,746
T.Rowe Price Personal Strategy Balanced 10.
(6/5/95)
1995..................................... 11.272 123,287
1996..................................... 12.719 1,703,217
1997..................................... 14.833 2,792,934
1998..................................... 16.755 3,090,073
* Accumulation Unit Values are rounded to the nearest hundredth of a cent.
** Number of Accumulation Units is rounded to the nearest unit.
</TABLE>
- -----------------------------------------------------------
ABOUT US
We are United of Omaha Life Insurance Company, a stock life insurance
company organized under the laws of the State of Nebraska in 1926. We are a
wholly-owned subsidiary of Mutual of Omaha Insurance Company. The Mutual of
Omaha family of companies provide life, health, disability, home and auto
insurance, trust services, and investment sales and brokerage services. The
Mutual of Omaha Companies have a proud tradition of supporting environmental
education, made popular through its long-running Mutual of Omaha's Wild Kingdom
television program, and continued through its Wildlife Heritage Trust. United of
Omaha is principally engaged in the business of issuing group and individual
life insurance and annuity policies, and group accident and health insurance in
all states (except New York), and the District of Columbia. As of December 31,
1998, United of Omaha had assets of over $10 billion.
We may from time to time publish (in advertisements, sales literature and
reports to policy owners) the ratings and other information assigned to us by
one or more independent rating organizations such as A.M. Best, Moody's
Investors Service, Standard & Poor's Corporation, and Duff & Phelps, Inc. The
purpose of the ratings is to reflect our financial strength and/or claims-paying
ability. The ratings do not bear on the investment performance of assets held in
the Variable Account or on the safety or the degree of risk associated with an
investment in the Policy.
12
<PAGE>
- -----------------------------------------------------------
INVESTMENT OPTIONS
The investment results of each investment portfolio, whose
investment objectives are described below, are likely to
differ significantly. You should consider carefully, and on
a continuing basis, which portfolios or combination of
investment portfolios and fixed rate options best suits your
long-term
We recognize you have very personal goals and investment strategies. The
Policy allows you to choose from a wide array of investment options --- each
chosen for its potential to meet specific investment objectives. You may
allocate all or a part of your purchase payments to one or a combination of the
variable investment options or the fixed rate options (allocations to the
Systematic Transfer Accounts are limited to initial purchase payment and
rollovers only). Allocations must be in whole percentages and total 100%.
You can choose among 25 variable investment options and three fixed rate
options.
o VARIABLE INVESTMENT OPTIONS
The investment portfolios are not available for purchase
directly by the general public, and are not the same as
other mutual fund portfolios with very similar or nearly
identical names that are sold directly to the public.
However, the investment objectives and policies of certain
portfolios available under the Policy are very similar to
the investment objectives and policies of other portfolios
that are or may be managed by the same investment adviser or
manager. Nevertheless, the investment performance and
results of the portfolios available under the Policy may be
lower, or higher, than the investment results of such other
(publicly available) portfolios. There can be no assurance,
and no representation is made, that the investment results
of any of the portfolios available under the Policy will be
comparable to the investment results of any other mutual
fund portfolio, even if the other portfolio has the same
investment adviser or manager and the same investment
objectives and policies, and a very similar name. For
detailed information about any portfolio, including its
performance history, refer to the prospectus for that
portfolio.
With the Policy's variable investment options, you bear the investment
risk, not us. You control the amount of money you invest in each of the
investment portfolios, and you bear the risk those portfolios will perform worse
than you expect.
The Variable Account, United of Omaha Separate Account C, provides you
with 25 variable investment options in the form of Series Fund investment
portfolios. Each Series Fund is an open-end investment management company. When
you allocate Policy funds to a Series Fund portfolio, those funds are placed in
a Subaccount of the Variable Account corresponding to that portfolio, and the
Subaccount in turn invests in the portfolio. The Accumulation Value of your
policy depends directly on the investment performance of the portfolios that you
select.
The Variable Account is registered with the SEC 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 Variable Account was
established as a separate investment account of United of Omaha under Nebraska
law on December 1, 1993. Under Nebraska law, we own the Variable Account assets,
but they are held separately from our other assets and are not charged with any
liability or credited with any gain of other separate investment accounts or
other business unrelated to the Variable Account. Any and all distributions made
by the Series Funds with respect to the shares held by the Variable Account will
be reinvested in additional shares at net asset value. We are responsible to you
for meeting the obligations of the Policy, but we do not guarantee the
investment performance of any of the portfolios. We do not make any
representations about their future performance. The portfolios may fail to meet
their objectives, and they could go down in value. 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. Complete
descriptions of each portfolio's investment objectives and restrictions and
other material information related to an investment in the portfolio are
contained in the prospectuses for each of the Series Funds which accompany this
prospectus.
13
<TABLE>
<CAPTION>
<PAGE>
- ---------------- ---------------------------------------------------- ------------------------------------
Variable Investment Options
Asset under United of Omaha Separate Account C Objective
Category * (Series Fund - Portfolio)
- ---------------- -----------------------------------------------------------------------------------------
Investments
- ---------------- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS Variable Insurance Trust -
MFS Emerging Growth Series Portfolio (5) Long-term capital appreciation.
Aggressive
Growth
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of small and medium-sized companies
with growth potential. May make limited investments in lower rated bonds or
comparable unrated securities.
- ---------------- -----------------------------------------------------------------------------------------
Alger American Fund -
Alger American Small Capitalization Portfolio (1) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of companies with total market
capitalization of less than $1 billion. Such
securities may have limited marketability and be
subject to more abrupt or erratic market movements
than the general equity market.
- ---------------- -----------------------------------------------------------------------------------------
Pioneer Variable Contracts Trust - Long-term capital appreciation
Real Estate Pioneer Real Estate Growth Portfolio (8) with current income.
- ---------------- ---------------------------------------------------- ------------------------------------
Real estate investment trusts (REITs) and other real
estate industry companies.
- ---------------- -----------------------------------------------------------------------------------------
T. Rowe Price International Series, Inc. -
T. Rowe Price International Stock Portfolio (10) Long-term capital appreciation.
International
- ---------------- -----------------------------------------------------------------------------------------
Common stock of foreign companies.
- ---------------- -----------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund -
Scudder VLIF International Portfolio (9) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Common stock of foreign companies, diversified among
several countries and industries.
- ---------------- -----------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund - Long-term capital
appreciation Scudder VLIF Global Discovery Portfolio (9) with
current income.
- ---------------- -----------------------------------------------------------------------------------------
Common stocks of small foreign and domestic
companies, including to a limited extent in lower
rated bonds or comparable unrated securities.
- ---------------- -----------------------------------------------------------------------------------------
Morgan Stanley Dean Witter Universal Funds, Inc. -
MSDW Emerging Markets Equity Portfolio (6) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Securities of "emerging" foreign countries (countries whose economies are
developing strongly and where equity markets are becoming sophisticated).
Such investments may not be feasible or may involve unacceptable political
risks in some countries, and may involve greater
risk than securities in more developed countries and
markets.
- ---------------- -----------------------------------------------------------------------------------------
MFS Variable Insurance Trust - High current income
Bond - MFS High Income Series Portfolio (5) and capital appreciation.
High Yield
- ---------------- ---------------------------------------------------- ------------------------------------
Diversified bond portfolio, some of which may
involve equity features, including lower-rated bonds
or comparable unrated securities.
- ---------------- -----------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. -
T. Rowe Price New American Growth Portfolio (11) Long-term capital appreciation.
Growth
- ---------------- -----------------------------------------------------------------------------------------
Common stocks of companies in the service sector of
the economy.
- ---------------- -----------------------------------------------------------------------------------------
MFS Variable Insurance Trust -
- ---------------- ---------------------------------------------------- ------------------------------------
Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks or securities convertible into common stocks of companies
expected to possess better than average prospects for long-term growth. May
invest to a limited extent in lower-rated securities or comparable unrated
securities.
- ---------------- -----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II -
Fidelity VIP II Contrafund Portfolio (3) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
14
<PAGE>
Securities of companies, foreign and domestic, that
are currently undervalued, unpopular or overlooked,
but analysts believe show potential for growth. May
use techniques to hedge risk.
- ---------------- -----------------------------------------------------------------------------------------
Alger American Fund -
Alger American Growth Portfolio (1) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of companies with total market
capitalization of $1 billion or more.
- ---------------- -----------------------------------------------------------------------------------------
Pioneer Variable Contracts Trust -
Pioneer Capital Growth Portfolio (8) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Securities of companies, foreign and domestic, that are currently
undervalued, unpopular or overlooked, but analysts believe show potential
for growth.
- ---------------- ---------------------------------------------------- ------------------------------------
MFS Variable Insurance Trust -
MFS Capital Opportunities Series Portfolio (5) Long-term capital appreciation.
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of foreign and domestic companies. May
make limited investments in lower rated bonds or
comparable unrated securities.
- ---------------- -----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II - Long-term
capital appreciation Fidelity VIP II Index 500 Portfolio (3)
with current income.
Growth &
Income
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of companies that comprise the
Standard & Poor's 500 index.
- ---------------- -----------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund - Long-term capital
appreciation Scudder VLIF Growth & Income Portfolio (9) with
current income.
- ---------------- ---------------------------------------------------- ------------------------------------
Common and preferred stocks, and securities
convertible into common stocks, of large established
companies.
- ---------------- -----------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. -
T. Rowe Price Equity Income Portfolio (11) Dividend income and capital
Equity appreciation.
Income
- ---------------- ---------------------------------------------------- ------------------------------------
Common stocks of established companies that pay
dividends.
- ---------------- -----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund - Dividend income and
capital Fidelity VIP Equity Income Portfolio (3) appreciation
surpassing the S&P 500 average.
- ---------------- ---------------------------------------------------- ------------------------------------
Securities of established companies that produce
income and capital appreciation.
- ---------------- -----------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. - (11)
T. Rowe Price Personal Strategy Balanced Portfolio Dividend income and capital
appreciation.
Balanced
- ---------------- ---------------------------------------------------- ------------------------------------
Diversified portfolio of stocks, bond and money market securities. Bond
holdings are primarily investment grade, but can include more volatile
unrated bonds.
- ---------------- -----------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II -
Fidelity VIP II Asset Manager Growth Portfolio Long term capital appreciation.
(3,4)
- ---------------- ---------------------------------------------------- ------------------------------------
Diversified portfolio of domestic and foreign
stocks, bonds, money market securities, and
derivative transactions.
- ---------------- -----------------------------------------------------------------------------------------
MFS Variable Insurance Trust - Capital appreciation and growth
Bond - MFS Global Governments Series Portfolio (5) with moderate current income.
International
- ---------------- ---------------------------------------------------- ------------------------------------
Foreign and U.S. government bonds.
- ---------------- -----------------------------------------------------------------------------------------
Insurance Management Series -
Federated Fund for U.S. Government Securities II Current income.
Portfolio (2)
Bond -
Domestic
- ---------------- -----------------------------------------------------------------------------------------
U.S. Government bonds.
- ---------------- -----------------------------------------------------------------------------------------
T. Rowe Price Fixed Income Series, Inc. - High level of current income
T. Rowe Price Limited Term Bond Portfolio (11) consistent with modest price
fluctuations.
- ---------------- ---------------------------------------------------- ------------------------------------
Short- and intermediate-term investment grade debt
securities.
- ---------------- -----------------------------------------------------------------------------------------
Above average return from a
Morgan Stanley Dean Witter Universal Funds, Inc. - diversified portfolio of fixed
MSDW Fixed Income Portfolio (7) income securities and derivatives.
- ---------------- ---------------------------------------------------- ------------------------------------
Medium to high quality fixed income investments of
intermediate maturity.
- ---------------- -----------------------------------------------------------------------------------------
Insurance Management Series - Current income consistent with the
Money Market Federated Prime Money Fund II Portfolio (2) stability of principal.
- ---------------- ---------------------------------------------------- ------------------------------------
Money market instruments maturing in 13 months or
less. This portfolio is not insured by the U.S.
government, and there is no guarantee it will be
able to maintain a stable net asset value per share.
- ---------------- -----------------------------------------------------------------------------------------
</TABLE>
(*) Asset Category designations are our own to help you gain insight into each
portfolio's intended objectives, but do not assure any portfolio will perform
consistent with the categorization. Information contained in the Series Funds'
prospectuses should be read carefully before investing in any Subaccount of the
Variable Account.
15
<PAGE>
Investment advisers 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 Dean Witter Asset Management, Inc.
(7) Miller Anderson & Sherrerd, LLP.
(8) Pioneer Investment Management.
(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.
The investment advisers of the Series Funds and the investment portfolios
are described in the prospectuses for the Series Funds.
We do not assure that any portfolio will achieve its stated
objective. Detailed information, including a description of
each portfolio's investment objective and policies, a
description of risks involved in investing in each of the
portfolios, and each portfolio's fees and expenses, is
contained in the prospectuses for the Series Funds, current
copies of which accompany this Prospectus. None of these
portfolios are insured or guaranteed by the U.S. government.
The performance history of each Variable Account Subaccount, which gives you
an indication of how each portfolio has performed and the effect of Policy
expenses on that performance, is discussed in the Statement of Additional
Information. You may obtain a copy from us. The performance history of each
portfolio is more fully described in the Series Fund prospectus for each
portfolio. Past performance may not be an indication of future performance.
Each investment portfolio is designed to provide an investment vehicle for
variable annuity and variable life insurance contracts issued by various
insurance companies. For more information about the risks associated with the
use of the same funding vehicle for both variable annuity and variable life
insurance contracts of various insurance companies, see the prospectuses of the
Series Fund which accompany this prospectus.
We may receive revenues from the investment portfolios or their investment
advisers. These revenues may depend on the amount our Variable Account invests
in the Series Fund and/or any portfolio thereof.
o Adding, Deleting, or Substituting Variable Investments
We do not control the Series Funds, so cannot guarantee that any of the
portfolios will always be available. We retain the right to change the Variable
Account and its investments. This means we may eliminate the shares of any
portfolio held in our Variable Account and to substitute shares of another
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 our
judgment, investment in any portfolio would be inappropriate in view of the
purposes of the Variable Account. We will first notify you and receive any
necessary SEC and state approval before making such a change.
New portfolios may be added, or existing portfolios eliminated, when, in our
sole discretion, conditions warrant such a change. If a portfolio is eliminated,
we will ask you to reallocate any amount in the eliminated portfolio. If you do
not reallocate these amounts, we will automatically reinvest them in the
Federated Prime Money Fund II Portfolio.
If we make a portfolio substitution or change, we may change the Policy to
reflect the substitution or change. Our Variable Account may be (i) operated as
an investment management company or any other form permitted by law, (ii)
deregistered with the SEC if registration is no longer required or (iii)
combined with one or more other separate accounts. To the extent permitted by
law, we also may transfer assets of the Variable Account to other accounts.
16
<PAGE>
o FIXED RATE OPTIONS
With fixed rate options, we bear the investment risk. This means we
guarantee that you will earn a minimum interest rate of at least 3% per year
(compounded annually). However, you bear the risk that we will not credit more
than 3% interest per year. We may declare a higher current interest rate.
Whatever interest rate we declare will be guaranteed for at least one year. We
have full control over how assets allocated to fixed rate options are invested,
and we bear the risk that those assets will perform better or worse than the
amount of interest we have declared. The focus of this Prospectus is to disclose
the Variable Account aspects of the Policy. For details regarding the fixed
investment options, see the Policy.
There are three fixed rate options: two Systematic Transfer Accounts and a
Fixed Account.
o Systematic Transfer Accounts
All amounts allocated to the fixed rate options become part
of the general account assets of United of Omaha. Interests
in the general account have not been registered with the SEC
and are not subject to the SEC's regulation, nor is the
general account registered as an investment company with the
SEC. Therefore, SEC staff have not reviewed the general
account disclosures in this Prospectus.
A Systematic Transfer Account is the fixed rate option used if you elect
(when you buy the Policy) to participate in the Systematic Transfer Enrollment
Program ("STEP program"). You may only elect one: the four-month or 12-month
Account. The STEP program is used to automatically transfer a predetermined
dollar amount on a monthly basis to any of the Subaccounts you choose. You must
have a minimum of $5,000 in the Systematic Transfer Account in order to
participate in the STEP program. No additional funds may be allocated to a
Systematic Transfer Account after you purchase the Policy (except for funds
designated in the application to be transferred into the Policy pursuant to an
Internal Revenue Code Section 1035 exchange or an IRA rollover or transfer).
Funds allocated to the Systematic Transfer Account must be completely
transferred to the Variable Account in either four or 12 months (whichever you
choose). There are currently two Systematic Transfer Accounts, one for
four-month transfers and one for 12-month transfers. We may credit different
rates of interest to these two accounts. Transfers from the Systematic Transfer
Accounts do not count toward the 12 free transfers allowed each Policy Year. You
may not transfer funds into any Systematic Transfer Account.
o Fixed Account
One transfer out of the Fixed Account is allowed each Policy Year. (This
limit does not apply under the Dollar Cost Averaging or Asset Allocation
programs.) 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. We reserve the right to modify
transfer privileges at any time. 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 may be delayed for up to six
months, and withdrawals may be subject to a Withdrawal Charge. For purposes of
crediting interest, the most recent 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 most recent payment plus interest
is considered to be transferred out next, and so on (a "last-in, first-out"
procedure).
o Fixed Account and Systematic Transfer Accounts
The Fixed Account and the Systematic Transfer Account are part of our
general account assets. The General Account includes all our assets except those
segregated in the Variable Account or in any other separate investment account.
You may allocate purchase payments to the Fixed Account or transfer amounts from
the Variable Account to the Fixed Account. Instead of you bearing the investment
risk, as you do with investments allocated to the Variable Account, we bear the
full investment risk for investments in the fixed rate options. We have sole
discretion to invest the assets of our general account, subject to applicable
law.
We guarantee that money invested in any fixed rate option will earn an
effective rate of at least 3% per year (compounded annually). Once declared, we
guarantee that any rate will last for at least one year. Different rates of
interest may be credited to each Systematic Transfer Account and the Fixed
Account.
We have sole discretion to set current interest rates of
fixed rate options. We do not guarantee the level of future
interest rates of fixed rate options, except that they will
not be less than an effective rate of 3% per year
(compounded annually).
We guarantee that, at any time prior to the Annuity Starting Date, the
amount in your Fixed Account or Systematic Transfer Account will not be less
than the amount of purchase payment allocated or Accumulation Value transferred
to the Fixed Account or Systematic Transfer Account, plus interest at an
effective rate of 3% per year, plus excess interest (if any) credited to amounts
in the Fixed Account or Systematic Transfer Account, less 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.
17
<PAGE>
o TRANSFERS
The Policy is designed for long-term investment, not for active trading or
"market timing." Excessive transfers could harm other Policy owners by having a
detrimental effect on portfolio management. Prior to the Annuity Starting Date,
you may transfer Policy value from one Subaccount to another, from the Variable
Account to the Fixed Account, or from the Fixed Account to any Subaccount, as
often as you like, subject to these rules:
Transfer Rules:
o We must receive notice of the transfer --- either Written Notice or an
authorized Telephone Transaction.
o The transferred amount must be at least $500, or the entire Subaccount
value if it is less. (If the Subaccount value remaining after a transfer
will be less than $500, we will include that amount as part of the
transfer.)
o The first 12 transfers each Policy Year from Variable Account Subaccounts
are free. The rest cost $10 each. This fee is deducted from the amount
transferred.
o A transfer from the Fixed Account:
- currently may be made only once each Policy Year;
- is free;
- does not count toward the 12 free transfer limit; and
- is limited during any Policy Year to 10% of the Fixed Account value on
the date of the transfer.
o We reserve the right to limit transfers, or to modify transfer privileges,
for any permissible reason.
o If the Accumulation Value in any Subaccount falls below $500, we may
transfer the remaining balance, without charge, to the Federated Prime
Money Fund II Portfolio.
o Transfers made pursuant to participation in the Dollar Cost Averaging,
Asset Allocation or Rebalancing programs are not subject to the amount or
timing limitations of these rules, nor are they subject to a Transfer fee.
See the sections of this prospectus describing those programs for the rules
of each program.
o If you transfer amounts from the Fixed Account to the Variable Account, we
can restrict or limit any transfer of those amounts back to the Fixed
Account.
Third-Party Transfers. Where permitted and subject to our rules, we may
accept your authorization to have a third party exercise transfers on your
behalf. We can suspend or cancel our acceptance any time upon notice to you. An
example of a reason might be if the third party is practicing "market timing."
We can also limit the availability of Subaccounts and the Fixed Account for
transfers by the third party, upon notice to you. We would not impose such
restrictions where we have Written Notice that the third party has been duly
appointed by a court or by you to act on your behalf for all your financial
affairs.
o DOLLAR COST AVERAGING
Our Dollar Cost Averaging program allows you to automatically transfer, on a
periodic basis, a set dollar amount or percentage from one Subaccount or the
Fixed Account to any Subaccount(s). You can begin Dollar Cost Averaging when you
purchase the Policy or later. You can increase or decrease the amount or
percentage of transfers or discontinue the program at any time. Rules of the
Dollar Cost Averaging program are:
The Dollar Cost Averaging and the STEP program are intended
to result 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 either program will result in higher Policy
value or otherwise be successful.
Dollar Cost Averaging Rules:
o The Dollar Cost Averaging program is free.
o We must receive notice of your election and any changed instruction ---
either Written Notice or an authorized Telephone Transaction.
o Automatic transfers can occur monthly, quarterly, semi-annually, or
annually.
o There must be at least $5,000 of Accumulation Value in the applicable
Subaccount or Fixed Account.
o Amount of each transfer must be at least $100, and must be $50 per
Subaccount.
o If transfers are made from the Fixed Account, the maximum annual 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 limitation out of
the Subaccounts of the Variable Account.
o Dollar Cost Averaging program transfers cannot begin before the end of a
Policy's free look ("right to examine") period.
18
<PAGE>
o You may specify that transfers be made on the 1st through the 28th day of
the month. Transfers will be made on the date you specify (or if that is
not a Business Day, then on the next Business Day). If you do not select a
date, the program will begin on the next Policy monthly anniversary
following the date the Policy's free look period ends.
o You can limit the number of transfers to be made, in which case the program
will end when that number has been made. Otherwise, the program will
terminate when the amount remaining in the applicable Subaccount or the
Fixed Account is less than $500.
o SYSTEMATIC TRANSFER ENROLLMENT
PROGRAM ("STEP program")
The STEP program allows you to automatically transfer funds on a monthly
basis from the Systematic Transfer Account to any other investment option. It
allows you to use a dollar cost averaging concept to move your initial purchase
payment from a fixed interest rate account into variable investment options
within either a four-month or a 12-month period, depending upon which time
period you elect. If you want to move funds from a fixed interest rate account
into variable investment options over a longer time period using the same
concept, then you should use the Dollar Cost Averaging program. (However, we
anticipate crediting a higher interest rate on amounts in a Systematic Transfer
Account than on amounts in the regular Fixed Account.)
STEP Program Rules:
o The STEP program is free.
o Can only be selected on the initial application.
o Must have at least $5,000 in Systematic Transfer Account to begin.
o You may only participate in one Systematic Transfer Account, but not both.
o Amount transferred each month must be at least an amount sufficient to
transfer the entire amount out of the Systematic Transfer Account in either
four or 12 equal monthly payments.
o Transfers must be at least $50 per Subaccount.
o No new purchase payments may be allocated to this account after the Policy
Issue Date, except for funds designated in the application to be
transferred into the Policy pursuant to an Internal Revenue Code Section
1035 exchange or an IRA rollover or transfer.
- Upon receipt of funds by Section 1035 exchange, the four or 12 monthly
payment requirement is restarted and the minimum monthly transfer
amount is recalculated.
o Cannot begin before the end of the Policy's free look period.
- You may specify transfers be made on the 1st through the 28th day of
the month. If that is not a Business Day, transfers will be made on
the next Business Day. If you do not select a start date, the STEP
program will begin on the next Policy monthly anniversary following
the date the Policy's free look period ends.
o No transfers may be made into the Systematic Transfer Account.
o All funds remaining in the Systematic Transfer Account on the date of the
last monthly transfer will be transferred to the Subaccounts in a pro rata
amount consistent with your allocation instructions.
o The STEP program ends the earlier of the date when all amounts in the
Systematic Transfer Account have been transferred or the date of the last
monthly STEP program transfer.
o ASSET ALLOCATION PROGRAM
The Asset Allocation program allows you to allocate purchase payments and
policy value among the variable investment options. You can specify your own
desired allocation instructions, or you can choose to use one of the five Asset
Allocation Models outlined below. The fixed rate options are not included in
this program.
The Asset Allocation Program does not protect against a
loss, and otherwise is not guaranteed to achieve your goal.
Asset Allocation Program Rules:
o The Asset Allocation program is free.
o You must request the Asset Allocation program in the Policy application or
by Written Notice or authorized Telephone Transaction. Changed
instructions, or a request to end this program, must also be by Written
Notice or authorized Telephone Transaction.
o You must have at least $10,000 of Accumulation Value to begin the Asset
Allocation program.
o Transfers made pursuant to this program do not count in determining whether
a Transfer Fee applies.
o Asset Allocation and STEP programs cannot run at the same time.
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<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
ASSET ALLOCATION MODELS
CURRENT ALLOCATIONS*
- ------------------------------------ ------------- ------------- ----------- -------------- ------------
Portfolio Principal Portfolio 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 3 5 12 18
Pioneer Real Estate Growth 4 5 6
T.Rowe Price International Stock 6 15 27 31
Scudder International 19
MFS High Income Series 4 5 5
T.Rowe Price New America Growth 6
MFS Capital Opportunities Series 3 8 12 16 10
Fidelity VIP II Index 500 5 10 10 13 13
T.Rowe Price Equity Income 10 15
Fidelity VIP Equity Income 8 15 16
MFS Global Governments Series 4 5 5
T.Rowe Price Limited-Term Bond 43 31 20 12
MSDW Fixed Income 3
Federated Prime Money Fund II 24 13 5
- --------------------------------------------------------------------------------
* We retain the right to change allocation model allocations or to substitute
portfolio options therein in future updated prospectuses. Amounts you allocate
to a model portfolio will be invested pursuant to the then current portfolio
allocations for that model.
- --------------------------------------------------------------------------------
</TABLE>
We use Ibbotson Associates to develop the Asset Allocation Model
allocations. They are an investment consulting firm specializing in applying
investment theories and empirical findings (such as historical return data
collected on the investment portfolios) to quantify the benefits of
diversification for particular investment profiles.
o REBALANCING PROGRAM
The Rebalancing program allows you to rebalance your Accumulation Value amount
the variable investment options and the Fixed Account pursuant to your initial
allocation percentage instructions on a quarterly, semiannual, or annual basis.
Rebalancing utilizes your allocation instructions in effect at the end of any
STEP program period (so never rebalances any assets to the Systematic Transfer
Account). You may change your rebalancing allocation instructions at any time.
Any change will not be effective until the next rebalancing occurs.
The Rebalancing Program does not protect against a loss, and
otherwise is not guaranteed to achieve your goal.
Rebalancing Program Rules:
o The Rebalancing program is free.
o You must request the Rebalancing program and give us your rebalancing
instructions by Written Notice. Changed instructions, or a request to end
this program must also be by Written Notice.
o You must have at least $10,000 of Policy Accumulation Value to begin the
Rebalancing program.
o You may have rebalancing occur quarterly, semiannually or annually.
o Transfers made pursuant to this program do not count in determining whether
a Transfer Fee applies.
20
<PAGE>
- ----------------------------------------------------------------------
IMPORTANT POLICY PROVISIONS
The Ultrannuity Series V Policy is a flexible purchase payment variable
deferred annuity policy. The Policy allows you to save and invest your assets on
a tax-deferred basis. A feature of the Policy distinguishing it from non-annuity
investments is its ability to guarantee annuity payments to you for as long as
you live. In addition, if you die before those payments begin, the Policy will
pay a death benefit to your Beneficiary. Some key rights and benefits under the
Policy are summarized in this prospectus; however, you must refer to the Policy
itself for the actual terms of the Policy. You may obtain a copy of the Policy
from us. The Policy can be purchased as a tax-qualified or nonqualified annuity.
The Policy remains in force until surrendered for its Cash Surrender Value, or
all proceeds have been paid under an Annuity Payout Option or as a death
benefit.
o POLICY APPLICATION AND ISSUANCE
Replacing an existing annuity policy is not always your best
choice. Evaluate any replacement carefully.
To purchase a Policy, you must submit an application and a minimum initial
purchase payment. A Policy usually will be issued only if you are age 0 through
85 (0 through 78 in Pennsylvania). We may reject any application or purchase
payment.
If your application is in good order upon receipt, we will credit your
initial net purchase payment to the Policy's Accumulation Value within two
Business Days after the later of the date we receive your application or your
payment. If the application is incomplete or otherwise not in good order, we
will contact you within five Business Days to explain the delay; at that time we
will refund your initial purchase payment unless you consent to our retaining it
to apply it to your Policy once all Policy issuance requirements are met. The
date we credit your initial net purchase payment to your Policy's Accumulation
Value is the Date of Issue.
You can purchase a tax-qualified policy in connection with a Section 401(a)
pension or profit-sharing plan, a Section 403(b) tax-sheltered annuity or an IRA
or Roth IRA, subject to certain limitations (see the FEDERAL TAX MATTERS section
of this prospectus).
o Application in Good Order. All questions must be answered, but particularly
note these requirements:
- - The Owner's and the Annuitant's full name, Social Security number, and date
of birth must be included.
- - Your purchase payment allocations must be completed, be in whole
percentages, and total 100%.
- - Initial purchase payment must meet minimum purchase payment requirements.
- - Your signature and your agent's signature must be on the application.
- - Identify the type of plan, whether it is nonqualified or qualified.
- - City, state, and date application was signed must be completed.
- - Your agent must be both properly licensed and appointed with us.
o Purchase Payment Requirements
Your purchase payment checks should be made payable to "United of Omaha Life
Insurance Company" and sent to us. We may postpone crediting any payment made by
check to your Policy's Accumulation Value until the check has been honored by
your bank. Payment by certified check, banker's draft, or cashier's check will
be promptly applied. Under our Electronic Fund Transfer program, you may select
a monthly payment schedule for us to automatically deduct purchase payments from
your bank account or other sources.
Initial Purchase Payment:
- - The only purchase payment required. All others are optional.
- - Must be at least $5,000; $2,000 if payment is made via our Electronic Fund
Transfer program. We have the right to change these payment requirements.
Additional Purchase Payments:
- - Must be at least $500; $100 if payments are made via our Electronic Fund
Transfer program. We have the right to change these payment requirements.
- - A separate Withdrawal Charge period applies to each purchase payment.
- - Will not be accepted on or after the Policy anniversary following your 88th
birthday.
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<PAGE>
o Allocating Your Purchase Payments
You must allocate your purchase payments to one or more of the variable
investment or fixed rate options. Initial allocations in your Policy application
will be used for additional purchase payments until you change your allocation.
If you do not specify any allocation, we will not accept your purchase payment.
- - Allocations must be in whole percentages, and total 100%.
- - The minimum allocation amount is $500 ($100 under the Electronic Fund
Transfer program).
- - Change your allocation by sending us Written Notice or through an
authorized Telephone Transaction. The change will apply to payments
received on or after the date we receive your notice or authorization.
- - All purchase payments will be allocated pursuant to your instructions on
record with us, except your initial purchase payment and any additional
purchase payments received during your Policy's free look period may be
subject to special requirements.
Free Look Period Allocations:
Return of Value States. In states that permit us to refund your Accumulation
Value upon your cancellation of the Policy during the free look period, we will
allocate your initial purchase payment to your selected Subaccounts on the Date
of Issue.
Return of Purchase Payment States. In states that require us to refund at
least your full purchase payment upon your cancellation of the Policy during the
free look period, we will hold the portion of your initial purchase payment
allocated to the Variable Account in the Federated Prime Money Fund II
Subaccount for the applicable free look period specified by the state of issue,
plus five days from the date we mail the Policy to you. (Since the free look
period is measured from the date you receive the Policy, the extra five days is
to allow for estimated time needed to deliver the Policy.) At the end of that
period, if you decide to keep your Policy, we will invest your initial purchase
payment in the Subaccounts pursuant to your application instructions. (Any
additional purchase payments we receive during the free look period plus five
days will be allocated in the same manner.)
o ACCUMULATION VALUE
On your Policy's Date of Issue, the Accumulation Value equals the initial
purchase payment less any charge for applicable premium taxes. On any Business
Day thereafter, the Accumulation Value equals the sum of the values in the
Variable Account and the fixed rate options. The Accumulation Value is expected
to change from day to day, reflecting the expenses and investment experience of
the selected investment portfolios (and interest earned in the fixed rate
options) as well as the Policy's deductions for charges.
A Business Day is any day the New York Stock Exchange is open.
o Variable Account Value.
The value in the Variable Account equals the sum of the Accumulation Values
for each Subaccount. The Accumulation Value for each Subaccount equals:
(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
day 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 (except it was $1 for the
Federated Prime Money Fund II Subaccount). The Accumulation Unit value may
increase or decrease from one day to the next.
The Accumulation Unit value for a Subaccount on any Business Day is
calculated as follows:
(a) The net asset value per share of the investment 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 that
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.
22
<PAGE>
o Fixed Account Value.
The Accumulation Value of the Fixed Account on any Business Day equals:
(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.
o Systematic Transfer Account Value.
The Accumulation Value of the Systematic Transfer Account on any Business
Day equals:
(a) the value at the Issue Date; minus
(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.
<TABLE>
<CAPTION>
o TELEPHONE TRANSACTIONS
<S> <C>
Telephone Transactions Permitted Telephone Transaction Rules:
o Transfers. o Only you may elect. Do so on the Policy application or by
o Partial Withdrawals of $10,000 or prior Written Notice authorization to us.
less by you (may be restricted o Must be received by close of the New York Stock Exchange
in community property states). ("NYSE") (usually 3 p.m. Central Time); if later, the
o Change of purchase payment transaction will be processed the next day the NYSE is
allocations. open.
o Will be recorded for your protection.
o For security, you must provide
your Social Security number and/or
other identification information.
o May be discontinued at any time as
to some or all Policy Owners.
We are not liable for following authorized Telephone Transaction
instructions we reasonably believe to be genuine.
</TABLE>
o DEATH OF ANNUITANT
Upon the Annuitant's death, you may name a new Annuitant. If any Owner is
the Annuitant, then upon that Owner's death, the Policy's applicable death
benefit becomes payable to the named Beneficiary(ies). However, if the
Beneficiary is the deceased Owner's spouse, then upon that Owner's death the
spouse may be permitted under federal tax law to become the new owner of the
Policy and to name an Annuitant and different Beneficiaries.
o MINOR OWNER OR BENEFICIARY
A minor may not own the Policy solely in the minor's name and cannot receive
payments directly as a Policy Beneficiary. Contrary to common belief, in most
states parental status does not automatically give parents the power to provide
an adequate release to us to make Beneficiary payments to the parent for the
minor's benefit. A minor can "own" a Policy through the Trustee of a Trust
established for the minor's benefit, or through the minor's named and court
appointed guardian, who own the Policy in their capacity as Trustee or Guardian.
Where a minor is a named Beneficiary, we are able to pay the minor's Beneficiary
payments to the minor's Trustee or Guardian. Some states allow us to make such
payments up to a limited amount directly to parents. Parents seeking to have a
minor's interest made payable to them for the minor's benefit are encouraged to
check with their local court to determine the process to be appointed as the
minor's guardian; it is often a very simple process that can be accomplished
without of an attorney. If there is no adult representative able to give us an
adequate release for payment of the minor's Beneficiary interest, we retain the
minor's interest on deposit until the minor attains the age of majority.
o POLICY TERMINATION
We may cancel your Policy upon 60 days' notice to you if the Accumulation
Value falls below $500. This cancellation would be a full surrender of the
Policy.
23
<PAGE>
- -----------------------------------------------------------
EXPENSES
The charges and fees described below compensate us for our expenses in
distributing the Policy, bearing mortality and expense risks under the Policy,
and administering the investment options and the Policy. Except where stated
otherwise, charges and fees shown are the maximum we will charge, and some
actual expenses may be less. Each Series Fund also deducts expenses from each
portfolio; those expenses are described in each Series Fund prospectus.
o WITHDRAWAL CHARGE
----------------------------------------------------------------------------
Years Since Receipt of Purchase 1 2 3 4 5 6 7 8+
Payment
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Applicable Withdrawal Charge 7% 6% 5% 4% 3% 2% 1% 0%
Percentage
----------------------------------------------------------------------------
We determine the amount of the Withdrawal Charge by
multiplying the amount of each purchase payment withdrawn by
the applicable Withdrawal Charge percentages. 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).
All purchase payments are deemed to be withdrawn before any
earnings.
We will deduct a Withdrawal Charge, expressed as a percentage of any
purchase payment surrendered or withdrawn, upon a full surrender or partial
withdrawal. A Withdrawal Charge may also be deducted on the Annuity Starting
Date from amounts applied to provide annuity payments. This charge partially
covers our distribution expenses, including commissions and other promotional
expenses. The Withdrawal Charge percentage varies depending upon the number of
years elapsed since the date the purchase payment was made. The amount of a
partial withdrawal you request plus the Withdrawal Charge is deducted from the
Accumulation Value on the date we receive your withdrawal request. Partial
withdrawals (including any charge) are deducted from the Subaccounts and the
Fixed Account or the Systematic Transfer Account on a pro rata basis, unless you
instruct us otherwise.
The Withdrawal Charge will not cover our cost of distributing the Policies.
Any deficiency is met from our general funds, including amounts (if any) derived
from the Mortality and Expense Risk Charge (described below).
o Free Withdrawals
Each Policy Year, you can withdraw up to 15% of Accumulation Value without
incurring a Withdrawal Charge. This "free withdrawal amount" is based on the
Accumulation Value at the time of the first withdrawal each Policy Year.
Additional limits apply to withdrawals from the Fixed Account. A Withdrawal
Charge is not applied on the Annuity Starting Date if you apply the Accumulation
Value after the second Policy anniversary to provide lifetime annuity payments
under Payout Option 4 (but it does apply to proceeds placed under any other
Payout Options). No Withdrawal Charge is deducted upon death benefit payments
or, under tax-qualified plans, any refund of contributions paid in excess of
your deductible amounts.
o Withdrawal Charge Waivers
We will waive the Withdrawal Charge upon partial withdrawals and surrenders
in the following situations. Each waiver may not be available in every state.
Nursing Home Waiver. Any withdrawal made pursuant to your 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 after 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 any of these facilities on the Date of
Issue.
We will not accept any additional purchase payments under your Policy once
this Waiver is elected.
Disability Waiver. Any withdrawal where you are physically disabled. We may
require proof of such disability, including written confirmation of 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. We
reserve the right to have any Owner claiming such disability examined by a
licensed physician of our choice and at our expense.
24
<PAGE>
We will not accept any additional purchase payments under a Policy once
this 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 on the date of withdrawal.
Terminal Illness Waiver. Any withdrawal after you are 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. We may require proof of such illness including written
confirmation from a licensed physician. We reserve the right to have an Owner
diagnosed with such illness examined by a licensed physician of our choice and
at our expense.
We will not accept any additional purchase payments under a Policy once
this 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.
Unemployment Waiver. Any withdrawal in the event you become unemployed. The
Unemployment Waiver is only available upon submission of a determination letter
from a state Department of Labor indicating you 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.
Transplant Waiver. Any withdrawal if you undergo 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, you must submit a letter from a licensed physician (who is not the
Owner of this policy) stating that you underwent transplant surgery for any of
these organs. We reserve the right to have you examined by a physician of our
choice and at our expense. This waiver may be exercised only once per transplant
surgery.
Residence Damage Waiver. Any withdrawal if your primary residence suffers
physical damage in the amount of $50,000 or more. To claim this waiver, send us
a certified copy of a licensed appraiser's report stating the amount of the
damage. This certified copy must be submitted within 91 days of the date of the
appraiser's report. We reserve the right to obtain a second opinion by having
the affected residence inspected by a licensed appraiser of our choice and at
our expense, and to rely upon our appraiser's opinion. This waiver may be
exercised only once per occurrence.
Death of Spouse or Minor Dependent Waiver. Withdrawals of the following
percentage of Accumulation Value made within six months of your spouse's or
minor dependent(s)' death: death of spouse, 50%; death of minor dependent(s),
25%. We must receive proof of death. 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.
o MORTALITY and EXPENSE RISK CHARGE
1.00% annual Rate, deducted daily from net assets in the
Variable Account.
We impose a daily charge to compensate us for the mortality and expense
risks we have under the Policy. 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
will not increase. This charge is reflected in the accumulation unit values for
each Subaccount.
Our mortality risk arises from our obligation to make annuity payments and
to pay death benefits prior to the Annuity Starting Date. The mortality risk we
assume is that Annuitants will live longer than we project, so our cost in
making annuity payments will be higher than projected. However, an Annuitant's
own longevity, or improvement in general life expectancy, will not affect the
periodic annuity payments we pay under your Policy.
Our expense risk is that our costs to administer your Policy will exceed the
amount we collect through Administrative Charges.
If the Mortality and Expense Risk Charge does not cover our costs, we bear
the loss, not you. If the charge exceeds our costs, the excess is profit to us.
We expect a profit from this charge. If the Withdrawal Charge does not cover our
Policy distribution costs, the deficiency is met from our general corporate
assets, which may include amounts, if any, derived from this Mortality and
Expense Risk Charge.
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o ADMINISTRATIVE CHARGES
Policy Fee $30 annually
- ------------------- ------------------------------------
0.20% annual Rate (0.0005485%
Administrative daily), deducted daily from net
Expense Charge assets of each Subaccount
These charges help cover our cost to administer your Policy and will not
increase.
We deduct the Policy Fee from your Policy's Accumulation Value on the last
business day of each Policy Year prior to the Annuity Starting Date (and upon a
complete surrender). This fee is levied by canceling Accumulation Units. The
Policy Fee is deducted from each Subaccount in the same proportion that the
value in each Subaccount bears to the total value in the Variable Account. This
fee is waived if your Policy's Accumulation Value exceeds $50,000 on the last
Business Day of the applicable Policy Year. This fee is also waived for
employees of ours or our affiliated Mutual of Omaha Companies.
o ENHANCED DEATH BENEFIT CHARGE
0.35% annual rate, or less, of the Average Death Benefit
Amount.
This charge compensates us for expenses and increased risks associated with
providing the Enhanced Death Benefit. If you elect the Enhanced Death Benefit
Amendment, we deduct a daily charge equivalent to a charge of 0.35%, annually,
of the average Death Benefit Amount (see definition on page 3) from your
Variable Account assets. (If you elected this benefit prior to May 1, 1998, we
deduct this charge once each year by canceling Accumulation Units at each Policy
anniversary and at surrender.)
o TRANSFER FEE
$10 per Subaccount transfer after 12 free transfers each
Policy Year.
The first 12 transfers from Variable Account Subaccounts, and all transfers
from the Fixed Account or the Systematic Transfer Accounts are free. The
Transfer Fee is deducted from the amount transferred. Simultaneous requests are
treated as a single request. We will not impose the fee for transfers that are
not the result of your request. Dollar Cost Averaging, Asset Allocation, and
Rebalancing program transfers do not count toward the 12 free transfers.
o PREMIUM TAX CHARGE
Varies, up to 3.5%.
Some states and municipalities levy a tax on annuity contracts issued by
insurance companies, ranging up to 3.5% of your purchase payments. These tax
rates, and the timing of the tax, vary and may change. Depending upon when the
tax is paid by us in the state governing your Policy, if any, we deduct a charge
for the tax (except in Oregon) either (a) from purchase payments as they are
received, (b) upon surrender of the Policy, (c) upon your death, or (d) upon
applying the Policy proceeds to an Annuity Payout Option.
o OTHER TAXES
Currently, NONE.
No charges are currently made for taxes other than premium taxes. We reserve
the right to levy charges in the future for taxes or other economic burdens
resulting from taxes that we determine are properly attributable to the Variable
Account.
o OTHER EXPENSES;
INVESTMENT ADVISORY FEES
See INTRODUCTION AND SUMMARY section and each Series Fund's
prospectus.
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Each Series Fund portfolio is responsible for its own expenses. The net
assets of each portfolio reflects deductions for investment advisory fees and
other expenses. These charges are disclosed in each Series Fund's prospectus
which accompany this prospectus. They are also summarized in Series Fund Annual
Expenses Table in the INTRODUCTION AND SUMMARY section at the beginning of this
prospectus.
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POLICY DISTRIBUTIONS
There are several ways to take all or part of your investment out of your
Policy, both before and after the Annuity Starting Date. Tax penalties and
Withdrawal Charges may apply to amounts taken out of your Policy before the
Annuity Starting Date. Your Policy also provides several kinds of death benefits
to be paid upon your death prior to the Annuity Starting Date. All or part of a
death benefit may be taxable.
o WITHDRAWALS
Withdrawals may be subject to:
- Income Tax
- Penalty Tax
- Withdrawal Charge
- Premium Tax Charge
You may withdraw all or part of your Policy's Cash Surrender Value prior to
the Annuity Starting Date. The Cash Surrender Value is the Accumulation Value
less any Withdrawal Charge, Policy Fee, and premium tax charge (if applicable).
Amounts withdrawn, except for "Free" Withdrawals described below, are subject to
a Withdrawal Charge. Following a full surrender of the Policy, or at any time
the Accumulation Value is zero, all your rights in the Policy end. Total
surrender requires you to return your Policy to us.
"Free" Withdrawals
Each Policy Year you may withdraw up to 15% of your Policy's Accumulation
Value, as of the date of the first withdrawal that year, without deduction of a
Withdrawal Charge (additional limits apply to withdrawals from the Fixed
Account). The 15% amount is determined when the first withdrawal is made;
additional Purchase Payments contributed later in that Policy Year or on the
date of your request are not included in determining that 15% amount.
Systematic Withdrawal Plan
The Systematic Withdrawal Plan allows you to automatically withdraw payments
of a predetermined dollar amount or fixed percentage of Accumulation Value from
a specified investment option monthly, quarterly, semiannually or annually.
Although this Plan mimics annuity payments, each distribution is a withdrawal
that may be taxable and subject to Charges; you may wish to consult a tax
adviser before requesting this Plan.
Withdrawal Rules
o Withdrawals must be by Written Notice or authorized Telephone Transaction.
The request for "Systematic Withdrawal Plan" 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 received by us.
o Minimum withdrawal is $500 from any investment option ($100 for the
Systematic Withdrawal Plan).
o Any partial withdrawal must leave an Accumulation Value of at least $500.
If less than $500 remains in an investment option, we will treat your
withdrawal request as a full withdrawal of that investment option.
o No more than a pro rata amount (or 10% of the Fixed Account, whichever is
less) 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 they will cause the total amount to be transferred to be
complete in less time than originally anticipated.) Only one withdrawal per
year is allowed out of the Fixed Account.
o Withdrawals result in cancellation of Accumulation Units from each
applicable Subaccount and deduction of Accumulation Value from the fixed
rate options in the ratio that the value of each such investment option
bears to the Policy's total Accumulation Value (i.e., pro rata from each
applicable investment option). If you do not specify which investment
option(s) to take the withdrawal from, it will be taken from each
investment option in the proportion that the Accumulation Value in each
investment option bears to the Policy's total Accumulation Value.
o Because a Withdrawal Charge and a Premium Tax Charge may apply to
withdrawals, and because you bear the investment risk for all amounts you
allocate the Variable Account, the total amount paid to you upon total
surrender of the Policy (taking any prior partial withdrawals into account)
may be less than the total purchase payments made.
o Unless you give us Written Notice to not withhold taxes from a withdrawal,
we must withhold 10% of the amount withdrawn to be paid as a federal tax.
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ANNUITY PAYMENTS
Annuity payments:
- - may be fixed or variable;
- - may be subject to a Withdrawal Charge if made within 2 years of the last
purchase payment.
- - may be taxable, and if premature, subject to a tax penalty.
A primary function of an annuity contract, like this Policy, is to provide
annuity payments to the payee(s) that you name. The level of annuity payments is
determined by your Policy Accumulation Value, the Annuitant's sex (except where
prohibited by law) and age, and the Annuity Payout Option selected.
Annuity payments may be subject to a Withdrawal Charge. A Withdrawal Charge
is not applied on the Annuity Starting Date if you apply the Accumulation Value
after the second Policy anniversary to provide lifetime annuity payments under
Annuity Payout Option 4. However, the Withdrawal Charge does apply to Proceeds
placed under other Annuity Payout Options.
Annuity payment payees must be individuals receiving payments on their own
behalf, unless otherwise agreed to by us. Any Annuity Payout Option is only
effective once we acknowledge it. We may require initial and ongoing proof of
the Owner's or Annuitant's age or survival. Unless you specify otherwise, the
payee is the Annuitant.
Fixed Annuity Payments. Fixed annuity payments are based on a fixed rate of
interest at or higher than the minimum guaranteed effective annual rate of
3%. We have sole discretion whether or not to pay a higher rate for Payout
Options 1, 2, 3, or 6 (see below). Current immediate annuity rates for the
same class of annuities are 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%
guaranteed interest rate. Current amounts, and further information, may be
obtained from us.
Fixed annuity payments are available under all six Annuity Payout
Options. The amount of each fixed annuity payment is set and begins on the
Annuity Starting Date, and does not change.
Variable Annuity Payments. Variable annuity payments, other than the first,
vary in amount depending upon the investment performance of the applicable
Subaccounts.
"Annuity Purchase Value" is the Accumulation Value on the
Annuity Starting Date reduced by any applicable Withdrawal
Charge, annual Policy fee, premium taxes, and income taxes
and penalty tax.
The first variable annuity payment amount is 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.
Subsequent annuity payment amounts (after the first) are 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. The number of Variable
Annuity Units for each Subaccount is calculated by dividing the dollar amount of
the first payment attributable to that Subaccount by the Annuity Unit Value as
of the date the Amount of the first payment is calculated.
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. 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.
Only Annuity Payout Options 2, 4 and 6 are available for variable annuity
payments.
o Annuity Starting Date
Only 4 transfers are allowed each Policy Year after the
Annuity Starting Date.
You select the Annuity Starting Date on the Policy application. This is the
date that annuity payments begin. This date may be as late as the Policy's
annual anniversary date following the Annuitant's 95th birthday (85th in
Pennsylvania). Tax-qualified Policies may require an earlier Annuity Starting
Date. You may change this date by sending Written Notice for our receipt at
least 30 days before the then current Annuity Starting Date. o Transfers after
the Annuity Starting Date
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After the Annuity Starting Date, you may transfer amounts applied to
variable annuity payments from one Subaccount to another or to the Fixed
Account. Transfers are based on the Variable Annuity Unit values for the
Business Day during which we receive your transfer request. A designated number
of Variable Annuity Units of the designated Subaccount(s) is exchanged for
another Subaccount(s) Variable Annuity Units, the value of which is such that
the dollar amount of an annuity payment made on the date of the exchange would
be unaffected by the exchange.
o Selecting an Annuity Payout Option
The longer the guarantHeed or projected Annuity Payout
Option period, the lower the amount of each annuity payment.
You choose the Annuity Payout Option on your Policy application. You may
change your selection during your life by sending Written Notice for our receipt
at least 30 days before the Annuity Starting Date. If no selection is made by
then, we will apply Accumulation Value in the Variable Account to provide
variable annuity payments, and Accumulation Value in the Fixed Account to
provide fixed annuity payments, and annuity payments will be made under Option 4
providing lifetime income with payments guaranteed for 10 years. We may pay your
Policy proceeds in one sum if they are less than $2,000, or when the Payout
Option chosen would result in periodic payments of less than $20.
If you die before the Annuity Starting Date (and the Policy is in force),
your Beneficiary may elect to receive the death benefit under one of the Annuity
Payout Options (unless applicable law or a settlement agreement dictate
otherwise).
o Annuity Payout Options
If the continuation of variable payments being made under Option 2 or 6 does
not depend upon the payee remaining alive, you may surrender your Policy and
receive the commuted value of any unpaid payments. However, if your payments
under Option 2 or 6 depends upon the payee's continued life, you cannot
surrender your Policy for cash. In this case, once Option payments commence,
payments will end upon the payee's death.
When the Owner dies, we will pay any unpaid guaranteed payments to your
Beneficiary. Upon the last payee's death, we will pay any unpaid guaranteed
payments to that payee's estate.
NOTE: Unless you elect a Payout Option with a guaranteed period or Option 1,
it is possible that only one annuity payment would be made under this annuity
Payout Option if the Annuitant dies before the due date of the second annuity
payment, only two annuity payments would be made if the Annuitant died before
the due date of the third annuity payment, etc.
Part or all of any annuity payment may be taxable as ordinary income. If, at
the time annuity payments begin, you have not given us Written Notice to not
withhold federal income taxes, we must by law withhold such taxes from the
taxable portion of each annuity payment and remit it to the Internal Revenue
Service.
(Withholding is mandatory for certain tax-qualified Policies.)
The following Annuity Payout Options are currently available:
1) Proceeds Held on Deposit at Interest. While proceeds remain on deposit, we
annually credit interest to the proceeds. The interest may be paid to the
payee or added to the amount on deposit.
2) Income of a Specified Amount. Proceeds are paid in monthly installments of a
specified amount over at least a five-year period until proceeds, with
interest, have been fully paid.
3) Income for a Specified Period. Periodic payments of proceeds are paid for
the number of years chosen. If no other frequency is selected, payments will
be made monthly. Monthly incomes for each $1,000 of proceeds, which include
interest, are shown in a table in the Policy.
4) Lifetime Income. Proceeds are paid as monthly income during the Annuitant's
life. The amount of the monthly income annuity payment will be the amount
computed using either the Lifetime Monthly Income Table set forth in the
Policy (based on the 1983 Table "a" mortality table and interest at 3%,
adjusted to age last birthday) or, if more favorable to the Annuitant, our
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 variable investment options.
Guarantees available:
Guaranteed Period - An amount of monthly income annuity payments is
determined that we guarantee to pay for a specified number of years, and
thereafter during the Annuitant's life. Guaranteed Amount - An amount of
monthly income annuity payment is determined that we guarantee to pay
until the sum of the payments equal the proceeds placed under the Option
and as long after that as the Annuitant lives.
5) Lump-Sum. Proceeds are paid in one sum.
6) Alternative Schedule. We may be able to accommodate making annuity payments
under other Options, including joint and survivor periods. Contact us for
more information.
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o DEATH BENEFITS
A Death Benefit is payable upon:
- - Purchase Payment check or draft being honored (i.e., your Policy is in
force);
- - receipt of Due Proof of Death of the first Owner to die;
- - election of an Annuity Payout Option (or lump- sum payment) ; and
- - proof that such Owner died before Annuity Payments begin.
"Due Proof of Death" is 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 us.
We will pay the death benefit within seven days after we receive necessary
documentation of an Owner's death, or as soon thereafter as we have sufficient
information about the Beneficiary to make the payment. Death benefits may be
paid pursuant to an Annuity Payout Option (including a lump-sum payment) to the
extent allowed by applicable law and any settlement agreement in effect at your
death. If the Beneficiary does not make an Annuity Payout Option election within
60 days of our receipt of Due Proof of Death regarding your death, we will issue
a lump-sum payment to the Beneficiary.
If an Owner of the Policy is a corporation, trust or other nonindividual, we
treat the primary Annuitant as an Owner for purposes of the death benefit. The
"primary Annuitant" is that individual whose life affects the timing or the
amount of the death benefit 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 Annuitant's death is
treated as an Owner's death. (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 an Internal Revenue Code
Section 401(a) retirement plan. If the Owner does not name a new Annuitant, the
Owner will become the Annuitant.)
We will deduct any applicable premium tax not previously deducted from the
death benefit payable.
o Standard Death Benefit
If you or a joint Owner dies before the Annuity Starting Date (and the
Policy is in force), the Policy will terminate, and we will pay a death benefit
to your Beneficiary. The death benefit equals the largest of:
1) your Policy's Accumulation Value (without deduction of the Withdrawal
Charge) on the later of the date we receive Due Proof of Death and an
annuity Payout Option election less any charge for applicable premium
taxes; or
2) the sum of net Purchase Payments, less partial withdrawals.
(If you or a joint Owner dies on or after the Annuity Starting Date and
before all Proceeds have been paid, no death benefit is payable, but any
remaining Proceeds will be paid at least as rapidly as under the Annuity Payout
Option then in effect.)
o Enhanced Death Benefit
The Enhanced Death Benefit is only available to Owners under age 80 in lieu
of the standard death benefit, and is not available for non-person owners. 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. Once elected, you may only
revoke the Enhanced Death Benefit as of the next Policy anniversary after the
date we receive Written Notice of your revocation. Once revoked, you may not
again elect the Enhanced Death Benefit. The Enhanced Death Benefit may not be
available in all states.
If you elect the Enhanced Death Benefit Amendment to the Policy and you or
any joint Owner dies before attaining age 81 and a such death qualifies for a
Standard Death Benefit, we will pay an Enhanced Death Benefit equal to the
greatest of
1) the Accumulation Value as of the end of the Valuation Period during which
we receive Due Proof of Death and an election of an annuity Payout Option;
2) the greatest Anniversary Value6 plus subsequent purchase payments, 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 up to a maximum of two times
each purchase payment.
6 The Anniversary Value equals the Accumulation Value on a Policy anniversary
and any subsequent purchase payments less partial withdrawals and undeducted
premium tax.
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If you elect the Enhanced Death Benefit Amendment to the Policy and you or
any joint Owner dies after attaining age 81 and such death qualifies for a
Standard Death Benefit, we will pay an Enhanced Death Benefit equal to the
greatest of:
1) the Accumulation Value as of the end of the Valuation Period during which
we receive Due Proof of Death and an election of an Annuity Payout Option;
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 Enhanced Death Benefit payable equals (3), we
will add to the death benefit amount any purchase payments paid after the
last Policy anniversary before the Owner attained age 81.
o Accidental Death Benefit
If you or any joint Owner die from bodily injury sustained in a common
carrier accident, we will pay double the Standard Death Benefit or the Enhanced
Death Benefit, as applicable, instead of the amount otherwise payable.
For the Accidental Death 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. We will pay only the Standard Death Benefit or the
Enhanced Death Benefit, if applicable, instead of the Accidental Death Benefit,
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.
o Beneficiary
You may change your Beneficiary by sending Written Notice to us, unless the
named Beneficiary is irrevocable. Once we record and acknowledge the change, it
is effective as of the date you signed the Written Notice. The change will not
apply to any payments made or other action taken by us before recording. If the
named Beneficiary is irrevocable, you may change the named Beneficiary only by
Written Notice signed by both you and the Beneficiary. If more than one named
Beneficiary is designated, and you fail 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 your 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 dies before you, then your estate is the
Beneficiary until you name a new Beneficiary.
o IRS Required Distribution
Federal law requires that if your Policy is tax non-qualified and you die
before the Annuity Starting Date, then the entire value of your Policy must be
distributed within five years of your death. Therefore, any death benefit must
be paid within five years after your death. The five-year rule does not apply to
that portion of the proceeds which (a) is 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 your death. Special rules may apply to your surviving spouse. The
Statement of Additional Information has a more detailed description of these
rules. Other required distribution rules apply to tax-qualified Policies.
- -------------------------------------------------------
FEDERAL TAX MATTERS
The following discussion is general in nature and is not intended as tax
advice. Each person concerned should consult a competent tax advisor. No attempt
is made to consider any applicable state tax or other tax laws, or to address
any federal estate, or state and local estate, inheritance and other tax
consequences of ownership or receipt of distributions under a Policy.
When you invest in an annuity contract, you usually do not pay taxes on
your investment gains until you withdraw the money - generally for retirement
purposes. If you invest in a variable annuity as part of a pension plan or
employer-sponsored retirement program, your contract is called a "Qualified
Policy." If your annuity is independent of any formal retirement or pension
plan, it is termed a "Nonqualified Policy." The tax rules applicable to
Qualified Policies vary according to the type of retirement plan and the terms
and conditions of the plan. o
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TAXATION OF NONQUALIFIED POLICIES
If a non-natural person (e.g., a corporation or a trust) owns a
Nonqualified Policy, the taxpayer generally must include in income any increase
in the excess of the Accumulation Value over the investment in the Policy
(generally, the purchase payments paid for the Policy) during the taxable year.
There are some exceptions to this rule and a prospective owner that is not a
natural person should discuss these with a tax adviser.
The following discussion generally applies to Policies owned by natural
persons.
o Withdrawals. When a withdrawal from a Nonqualified Policy occurs, the amount
received will be treated as ordinary income subject to tax up to an amount equal
to the excess (if any) of the Accumulation Value immediately before the
distribution over the Owner's investment in the Policy (generally, the purchase
payments paid for the Policy, reduced by any amount previously distributed from
the Policy that was not subject to tax) at that time. In the case of a surrender
under a Nonqualified Policy, the amount received generally will be taxable only
to the extent it exceeds the Owner's investment in the Policy.
o Penalty Tax on Certain Withdrawals. In the case of a distribution from a
Nonqualified Policy, there may be imposed a federal tax penalty equal to ten
percent of the amount treated as income. In general, however, there is no
penalty on distributions:
- - made on or after the taxpayer reaches age 59 1/2;
- - made on or after an Owner's death;
- - attributable to the taxpayer's becoming disabled; or
- - made as part of a series of substantially equal periodic payments for the
life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and special rules
may be applicable in connection with the exceptions enumerated above. Also,
additional exceptions apply to distributions from a Qualified Policy. You should
consult a tax adviser with regard to exceptions from the penalty tax.
o Annuity Payments. Although tax consequences may vary depending on the payout
option elected under an annuity contract, a portion of each annuity payment is
generally not taxed and the remainder is taxed as ordinary income. The
non-taxable portion of an annuity payment is generally determined in a manner
that is designed to allow you to recover your investment in the Policy ratably
on a tax-free basis over the expected stream of annuity payments, as determined
when annuity payments start. Once your investment in the Policy has been fully
recovered, however, the full amount of each annuity payment is subject to tax as
ordinary income.
o Taxation of Death Benefit Proceeds. Amounts may be distributed from the Policy
because of your death or the death of the Annuitant. Generally, such amounts are
includible in the income of the recipient as follows: (i) if distributed in a
lump sum, they are taxed in the same manner as a surrender of the Policy, or
(ii) if distributed under a payout option, they are taxed in the same way as
annuity payments.
o Transfers, Assignments or Exchanges of a Policy. A transfer or assignment of
ownership of the Policy, the designation of an Annuitant, the selection of
certain Annuity Starting Dates, or the exchange of the Policy may result in
certain tax consequences to you that are not discussed herein. An Owner
contemplating any such transfer, assignment, or exchange, should consult a tax
advisor as to the tax consequences.
o Withholding. Annuity distributions are generally subject to withholding for
the recipient's federal income tax liability. Recipients can generally elect,
however, not to have tax withheld from distributions.
o Multiple Policies. All Non-Qualified deferred annuity contracts that are
issued by us (or our affiliates) to the same Owner during any calendar year are
treated as one annuity contract for purposes of determining the amount
includible in such Owner's income when a taxable distribution occurs.
o Further Information. We believe that the Policy qualifies as an annuity
contract for Federal income tax purposes and the above discussion is based on
that assumption. Further details can be found in the Statement of Additional
Information under the heading "Tax Status of the Policy."
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TAXATION OF QUALIFIED POLICIES
The tax rules applicable to Qualified Policies vary according to the type
of retirement plan and the terms and conditions of the plan. Your rights under a
Qualified Policy may be subject to the terms of the retirement plan itself,
regardless of the terms of the Policy. Adverse tax consequences may result if
you do not ensure that contributions, distributions and other transactions with
respect to the Policy comply with the law. Also, you may wish to consult a tax
and/or financial adviser regarding the use of the Policy within a qualified or
other retirement plan, since many such plans already provide the same type of
tax deferral as provided by the Policy. However, the Policy provides extra
benefits and features that most retirement plans themselves do not provide (note
that there are costs and charges in the Policy related to these extra benefits
and features).
o Individual Retirement Accounts (IRAs), as defined in Section 408 of the
Internal Revenue Code (Code), permit individuals to make annual contributions of
up to the lesser of $2,000 or 100% of adjusted gross income. The contributions
may be deductible in whole or in part, depending on the individual's income.
Distributions from certain pension plans may be "rolled over" into an IRA on a
tax-deferred basis without regard to these limits. Amounts in the IRA (other
than nondeductible contributions) are taxed when distributed from the IRA. A 10%
penalty tax generally applies to distributions made before age 59 1/2 , unless
certain exceptions apply. The Internal Revenue Service has not reviewed the
Policy for qualification as an IRA, and has not addressed in a ruling of general
applicability whether a death benefit provision such as the Enhanced Death
Benefit provision in the Policy comports with IRA qualification requirements.
o Roth IRAs, as described in Code section 408A, permit certain eligible
individuals to make non-deductible contributions to a Roth IRA in cash or as a
rollover or transfer from another Roth IRA or other IRA. A rollover from or
conversion of an IRA to a Roth IRA is generally subject to tax and other special
rules apply. The Owner may wish to consult a tax adviser before combining any
converted amounts with any other Roth IRA contributions, including any other
conversion amounts from other tax years. Distributions from a Roth IRA generally
are not taxed, except that, once aggregate distributions exceed contributions to
the Roth IRA, income tax and a 10% penalty tax may apply to distributions made
(1) before age 59 1/2 (subject to certain exceptions) or (2) during the five
taxable years starting with the year in which the first contribution is made to
any Roth IRA. A 10% penalty tax may apply to amounts attributable to a
conversion from an IRA if they are distributed during the five taxable years
beginning with the year in which the conversion was made.
o Corporate pension and profit-sharing plans under Section 401(a) of the Code
allow corporate employers to establish various types of retirement plans for
employees, and self-employed individuals to establish qualified plans for
themselves and their employees. Adverse tax consequences to the retirement plan,
the participant, or both may result if the Policy is transferred to any
individual as a means to provide benefit payments, unless the plan complies with
all the requirements applicable to such benefits prior to transferring 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 (and is
not available to non-person owners). The Standard Death Benefit could be
characterized as an incidental benefit, the amount of which is limited in any
pension or profit-sharing plan. Because the death benefit may exceed this
limitation, employers using the Policy in connection with such plans should
consult their tax adviser.
o Tax-Sheltered Annuities under section 403(b) of the Code allow employees of
certain Section 501(c)(3) organizations and public schools to exclude from their
gross income the purchase payments made, within certain limits, on a policy that
will provide an annuity for the employee's retirement. The Policy will only
accept transfers from an existing tax-sheltered annuity contract, and will not
accept direct payments of salary reduction contributions. Distributions of (1)
salary reduction contributions made in years beginning after December 31, 1988;
(2) earnings on those contributions; and (3) earnings on amounts held as of the
last year beginning before January 1, 1989, are not allowed prior to age 59 1/2,
separation from service, death or disability. Salary reduction contributions may
also be distributed upon hardship, but would generally be subject to penalties.
The Policy includes an Enhanced Death Benefit that in some cases may exceed the
greater of the purchase payments or the account value. The Standard Death
Benefit could be characterized as an incidental benefit, the amount of which is
limited in a tax-sheltered annuity. Because the death benefit may exceed this
limitation, individuals using the Policy in connection with such plans should
consult their tax adviser.
o Other Tax Issues. Qualified Policies have minimum distribution rules that
govern the timing and amount of distributions. You should refer to your
retirement plan, adoption agreement, or consult a tax advisor for more
information about these distribution rules.
Distributions from Qualified Policies generally are subject to withholding
for the Owner's federal income tax liability. The withholding rate varies
according to the type of distribution and the Owner's tax status. The Owner will
be provided the opportunity to elect not to have tax withheld from
distributions.
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<PAGE>
"Eligible rollover distributions" from section 401(a) plans are subject to
a mandatory federal income tax withholding of 20%. An eligible rollover
distribution is the taxable portion of any distribution from such a plan, except
certain distributions such as distributions required by the Code or
distributions in a specified annuity form. The 20% withholding does not apply,
however, if the Owner chooses a "direct rollover" from the plan to another
tax-qualified plan or IRA.
o POSSIBLE TAX LAW CHANGES
Although the likelihood of legislative changes is uncertain, there is
always the possibility that the tax treatment of the Policy could change by
legislation or otherwise. Consult a tax adviser with respect to legislative
developments and their effect on the Policy.
We have the right to modify the Policy in response to legislative changes
that could otherwise diminish the favorable tax treatment that annuity contract
Owners currently receive. We make no guarantee regarding the tax status of any
Policy and do not intend the above discussion as tax advice.
- -----------------------------------------------------------
MISCELLANEOUS
o 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 us,
MOIS is an affiliate of Mutual of Omaha Insurance Company. MOIS enters into
contracts with various broker-dealers to distribute 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 are up to 7 1/2% of purchase payments.
o VOTING RIGHTS
We will vote Series Fund shares held by the Variable Account at regular and
special shareholder meetings of the Series Funds pursuant to instructions
received from persons having voting interests in the portfolios, if and to the
extent required by law. If, however, applicable law or regulation or
interpretation of them is amended, and as a result we may vote Series Fund
shares in its own right, we may do so. The Series Funds may not hold routine
annual shareholder meetings.
As a Policy Owner, you may have a voting interest in the portfolios you are
invested in. You will receive proxy material, reports, and other materials
relating to the appropriate portfolio in which you have voting interests.
YEAR 2000 ISSUES
Like all financial services providers, we use systems affected by Year 2000
transition issues and rely upon service providers, including investment
managers, whose own systems may also be affected. We are implementing a Year
2000 transition plan, and are confirming that our service providers are also
doing so. 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 prevent any negative
impact on us. However, as of the date of this prospectus, we do not believe Year
2000 transition implementation will harm purchaser of Policies, or our Policy
administration efforts.
o LEGAL PROCEEDINGS
As of the date of this prospectus, there are no legal proceedings affecting
the Variable Account, or that are material in relation to our total assets.
DO YOU HAVE QUESTIONS?
If you have questions about your Policy or this prospectus, you may contact
your agent or broker who gave this prospectus to you, or you may contact us
at: UNITED OF OMAHA, Variable Product Service, P.O. Box 8430, Omaha,
Nebraska 68103-0430. Telephone 1-800-238-9354.
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<PAGE>
o STATEMENT OF ADDITIONAL INFORMATION
You may obtain, at no cost, a Statement of Additional Information which
contains more details concerning the disclosures in this prospectus by
contacting us. You may also access it in our registration on the SEC's Web site
(HTTP://WWW.SEC.GOV), or you may review and copy it at the SEC's Public
Reference Room in Washington D.C. (call the SEC at 1-800-SEC-0330 for details
and public hours).
Here is the Table of Contents to our Statement of Additional Information:
Contents Page(s)
-------------------------------------- --------
The Policy - general provisions 2-3
Owner and Joint Owner
Death of Annuitant
Entire Contract
Deferment of Payment and
Transfers
Incontestability
Misstatement of Age or Sex
Nonparticipating
Assignment
Evidence of Age or Survival
-------------------------------------- --------
Federal Tax Matters 3-4
Tax Status of the Policy
Taxation of United of Omaha
-------------------------------------- --------
State Regulation of United of Omaha 4
-------------------------------------- --------
Administration 4-5
Records and Reports
Distribution of the Policies
Custody of Assets
-------------------------------------- --------
Historical Performance Data 5-14
Money Market Yields
Other Subaccount Yields
Total Returns
Other Performance Data
-------------------------------------- --------
Legal Matters 14
-------------------------------------- --------
Other Information 14
-------------------------------------- --------
Financial Statements 14
35
<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 ("We, us, our")
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"). You may obtain a copy of the prospectus dated May 1, 1999 by calling
1-800-238-9354 or by writing to us at: United of Omaha, Variable Product
Service, P.O. Box 8430, Omaha, Nebraska 68103-0430. Terms used in the current
prospectus for the Policy have the same meaning in this Statement.
This Statement of Additional Information is not a
prospectus. You should read it only in conjunction with the prospectuses for
the Policy and the Series Funds.
Dated: May 1, 1999
Contents Page(s)
-------------------------------------- ---------
The Policy - general provisions 2
Owner and Joint Owner
Death of Annuitant
Entire Contract
Deferment of Payment and
Transfers
Incontestability
Misstatement of Age or Sex
Nonparticipating
Assignment
Evidence of Age or Survival
-------------------------------------- ---------
Federal Tax Matters 3-4
Tax Status of the Policy
Taxation of United of Omaha
-------------------------------------- ---------
State Regulation of United of Omaha 4
-------------------------------------- ---------
Administration 4-5
Records and Reports
Distribution of the Policies
Custody of Assets
-------------------------------------- ---------
Historical Performance Data 5-13
Money Market Yields
Other Subaccount Yields
Average Annual Total Returns
Other Performance Information
-------------------------------------- ---------
Legal Matters 14
-------------------------------------- ---------
Other Information 14
-------------------------------------- ---------
Financial Statements 14
<PAGE>
The following provides additional information about us and the Policy which
may be of interest to you and is not addressed in the prospectus.
THE POLICY - GENERAL PROVISIONS
Owner and Joint Owner
While you are alive, only you may exercise the rights under the Policy. You
may change the Owner of the Policy 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.
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 are deemed representations and not warranties. No statement,
unless it is in the application, will be used by us to contest the Policy or
deny a claim.
Any change of the Policy and any riders requires the consent of our
authorized officer. No agent or registered representative has authority to
change or waive any provision of the Policy.
We reserve the right to amend the Policy to meet the requirements of, or
take advantage of, the Internal Revenue Code, regulations or published rulings.
You can refuse such a change by giving Written Notice, but a refusal may result
in adverse tax consequences.
Deferment of Payment and Transfers
We 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 Notice. We 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.
We may defer transfers, payment of partial withdrawals or a surrender
from the Fixed Account for up to six months from the date we receive Written
Notice.
Incontestability
We will not contest the validity of the Policy after its Date of Issue.
Misstatement of Age or Sex
We may require proof of the Annuitant's age before making any life
annuity payment. If the Annuitant's age or sex 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 we
have made payments that are too small, the underpayments will be added to the
next payment. Adjustments for overpayments or underpayments will include 6%
interest.
Nonparticipating
No dividends will be paid. Neither you nor the Beneficiary shares in our
surplus earnings or profits.
Assignment
You may change the Owner of the Policy or pledge it as collateral by
assigning it. No assignment is binding on us until we record and acknowledge it.
The rights of any payee will be subject to a collateral assignment.
If the Beneficiary designation is irrevocable, the Owner may be changed
or the Policy assigned only upon Written Notice signed by both you and the
Beneficiary. On the Annuity Starting Date, you may select another payee, but you
retain all rights of ownership unless you sign an absolute assignment of the
Policy.
Evidence of Age or Survival
We may require proof of the age or survival of any Owner, Annuitant or
payee. No payment will be made until we receive such proof.
2
<PAGE>
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 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 us during the Valuation Period which is
determined by us 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 us 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 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." 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. We and the Series Funds have entered into
agreements regarding participation in the Series Funds that requires the Series
Funds and their portfolios to comply with the Treasury regulations.
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 Owner's 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, you have additional flexibility in allocating premium payments and
Policy values. These differences could result in you being treated as the Owner
of a pro-rata portion of the assets of the Separate Account. In addition, we do
not know what standards will be set forth, if any, in future regulations or
rulings issued by the Treasury Department. We therefore reserve the right to
modify the Policy as necessary to attempt to prevent you 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.
3
<PAGE>
Distribution Requirements. The Code also requires that Nonqualified
Policies contain specific provisions for distribution of Policy Proceeds upon
your death. In order to be treated as an annuity contract for federal income tax
purposes, the Code requires that such Policies provide that if you die 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 your death. If you die before the Annuity
Starting Date, the entire interest in your Policy must generally be distributed
within five years after your death. This requirement can be satisfied if the
entire interest in your Policy is used to purchase an immediate annuity under
which payments will begin within one year of your 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 your surviving spouse, the Policy may
be continued with your 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 Policy
satisfies all such Code requirements. The provisions contained in the Policy
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
We at present are taxed as a life insurance company under part I of
Subchapter L of the Code. The Variable Account is treated as part of us and,
accordingly, is not taxed separately as a "regulated investment company" under
Subchapter M of the Code. We do 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 us with
respect to the Variable Account, we may make a charge to the Variable Account.
STATE REGULATION OF UNITED OF OMAHA
We are subject to Nebraska law and to regulation by the Nebraska
Division of Insurance. We file an annual statement with the Nebraska Department
of Insurance covering our operation for the preceding year and our financial
condition as of the end of such year. Regulation by the Department of Insurance
includes periodic examination to determine our contract liabilities and reserves
so that the Department may certify the items are correct. Our books and accounts
are subject to review by the Department of Insurance at all times and a full
examination of our operations is conducted periodically by the National
Association of Insurance Commissioners. In addition, we are subject to
regulation under the insurance laws of other jurisdictions in which we operate.
ADMINISTRATION
Effective on or about March 3, 1997, we perform all administration for
your Policy. Before then, we 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. We have not
paid any fees to Vantage in 1998. For the fiscal year ended December 31, 1997,
United of Omaha paid $ 200,000 total compensation to Vantage, and in fiscal year
ended December 31, 1996 the amount was $ 650,000.
RECORDS AND REPORTS
All our records and accounts relating to the Variable Account are
maintained by us. As presently required by the Investment Company Act of 1940
and regulations promulgated thereunder, we 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.
4
<PAGE>
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 we do not anticipate discontinuing the offering of
the Policies. However, we reserve 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, 1998, we paid
$10,559,128 in total compensation to MOIS; of this amount MOIS retained $
2,996,217 as concessions for its services as Principal Underwriter and for
distribution concessions, with the remaining amount paid to other
broker-dealers. In 1997, these amounts were $17,001,437 and $3,069,756
respectively. In 1996, these amounts were $ 18,853,282 and $ 1,626,399
respectively.
CUSTODY OF ASSETS
We hold the assets of each of the Subaccounts of the Variable Account.
The assets of the Variable Account are segregated and held separate and apart
from our general account assets. We maintain 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 our
fidelity bond, presently in the amount of $10 million, covering the acts of our
officers and employees.
HISTORICAL PERFORMANCE DATA
From time to time, we 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 Enhanced Death Benefit Amendment, the Death
Benefit Charge is reflected.
Money Market Yields
From time to time, advertisements and sales literature may quote the
current annualized yield of the Money Market Subaccount (Federated Price Money
Fund II Portfolio) 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 12/31/98, this current
annualized yield is 3.37%.
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.
5
<PAGE>
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 Enhanced 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.
Yield calculations do not take into account the withdrawal charge under
the Policy (a maximum of 7% of the Purchase Payments surrendered or withdrawn).
6
<PAGE>
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, we 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 we calculate 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 Enhanced 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.
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 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.
Such average annual total return information for the Subaccounts of
Policies is as follows:
7
<PAGE>
- ---------------------------------------------- ------------ ===========
SUBACCOUNT 1 Year From
AVERAGE ANNUAL TOTAL RETURN (reflects Ended Inception
Withdrawal Charges) 12/31/98 to
Subaccount (date of inception) % 12/31/98
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95) 37.51 23.40
Alger American Small Capitalization (6/5/95) 7.26 8.83
Federated Prime Money Fund II (6/5/95) -2.59 2.48
Federated Fund for U.S. Government
Securities (6/5/95) -0.05 5.06
Fidelity VIP II Asset Manager: Growth
(6/5/95) 9.16 17.77
Fidelity VIP II Contrafund (6/5/95) 20.70 21.67
Fidelity VIP Equity Income (6/5/95) 3.64 16.73
Fidelity VIP II Index 500 (5/1/97) 19.16 21.05
MFS Emerging Growth Series (6/5/95) 24.58 22.60
MFS High Income Series (6/5/95) -7.33 6.00
MFS Research Series (6/5/95) 14.57 18.811
MFS Capital Opportunities Series (5/1/97) 17.74 21.68
MFS Global Governments Series (6/5/95) 0.18 1.50
MSDW Emerging Markets Equity (5/1/98) - N/A -23.3
MSDW Fixed Income (5/1/98) - N/A -2.10
Pioneer Capital Growth (5/1/97) 10.84 -0.74
Pioneer Real Estate Growth (5/1/97) 24.58 -5.58
Scudder VLIF Global Discovery (5/2/97) 7.87 8.85
Scudder VLIF Growth & Income (5/1/97) -0.97 8.77
Scudder VLIF International (6/5/95) 10.01 11.14
T. Rowe Price Personal Strategy Balanced
(6/5/95) 6.12 13.62
T. Rowe Price Equity Income (6/5/95) 1.38 17.97
T. Rowe Price International (6/5/95) 7.57 8.82
T. Rowe Price Limited-Term Bond (6/5/95) -0.40 3.68
T. Rowe Price New America Growth (6/5/95) 10.03 20.36
============================================== ============ ===========
1 Year From
Subaccount (date of inception ) Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 to
12/31/98
============================================== ============ ===========
Alger American Growth (6/5/95) 37.05 22.98
Alger American Small Capitalization (6/5/95) 6.89 8.46
Federated Prime Money Fund II (6/5/95) -2.93 2.13
Federated Fund for U.S. Government
Securities (6/5/95) -0.40 4.70
Fidelity VIP II Asset Manager: Growth
(6/5/95) 8.79 17.38
Fidelity VIP II Contrafund (6/5/95) 20.28 21.26
Fidelity VIP Equity Income (6/5/95) 3.28 16.33
Fidelity VIP II Index 500 (5/1/97) 18.75 20.65
MFS Emerging Growth Series (6/5/95) 24.15 22.19
MFS High Income Series (6/5/95) -7.65 5.64
MFS Research Series (6/5/95) 14.17 18.41
MFS Capital Opportunities Series (5/1/97) 17.34 21.28
MFS Global Governments Series (6/5/95) -0.17 1.15
MSDW Emerging Markets Equity (5/1/98) N/A -23.47
MSDW Fixed Income (5/1/98) - N/A -2.30
Pioneer Capital Growth (5/1/97) -11.16 -1.07
Pioneer Real Estate Growth (5/1/97) 24.85 -5.90
Scudder VLIF Global Discovery (5/2/97) 7.49 8.49
Scudder VLIF Growth & Income (5/1/97) -1.32 8.41
Scudder VLIF International (6/5/95) 9.63 10.76
T. Rowe Price Personal Strategy Balanced 5.75 13.23
(6/5/95)
T. Rowe Price Equity Income (6/5/95) 1.02 17.57
T. Rowe Price International (6/5/95) 7.20 8.46
T. Rowe Price Limited-Term Bond (6/5/95) -0.75 3.33
T. Rowe Price New America Growth (6/5/95) 9.65 19.96
============================================== ============ ===========
8
<PAGE>
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:
- ---------------------------------------------- ------------ ===========
SUBACCOUNT NON-STANDARDIZED 1 Year From
AVERAGE ANNUAL TOTAL RETURN Ended Inception
(does not reflect Withdrawal Charges) 12/31/98 to
Subaccount (date of inception) % 12/31/98
(Policy issued without Enhanced Death %
Benefit)
- ---------------------------------------------- ------------ ===========
Alger American Growth (6/5/95) 46.21 24.54
Alger American Small Capitalization (6/5/95) 14.05 9.89
Federated Prime Money Fund II (6/5/95) 3.58 3.47
Federated Fund for U.S. Government
Securities (6/5/95) 6.28 6.08
Fidelity VIP II Asset Manager: Growth
(6/5/95) 16.07 18.91
Fidelity VIP II Contrafund (6/5/95) 28.33 22.85
Fidelity VIP Equity Income (6/5/95) 10.20 17.86
Fidelity VIP II Index 500 (5/1/97) 26.70 24.91
MFS Emerging Growth Series (6/5/95) 32.46 23.79
MFS High Income Series (6/5/95) -1.47 7.03
MFS Research Series (6/5/95) 21.81 19.97
MFS Capital Opportunities Series (5/1/97) 25.19 25.55
MFS Global Governments Series (6/5/95) 6.51 2.48
MSDW Emerging Markets Equity (5/1/98) N/A -18.46
MSDW Fixed Income (5/1/98) - N/A 4.09
Pioneer Capital Growth (5/1/97) -5.20 2.43
Pioneer Real Estate Growth (5/1/97) 19.81 -2.58
Scudder VLIF Global Discovery (5/2/97) 14.69 12.32
Scudder VLIF Growth & Income (5/1/97) 5.29 12.24
Scudder VLIF International (6/5/95) 16.97 12.21
T. Rowe Price Personal Strategy Balanced
(6/5/95) 12.83 14.72
T. Rowe Price Equity Income (6/5/95) 7.79 19.11
T. Rowe Price International (6/5/95) 14.38 9.88
T. Rowe Price Limited-Term Bond (6/5/95) 5.90 4.68
T. Rowe Price New America Growth (6/5/95) 16.99 21.53
9
<PAGE>
============================================== ------------ ===========
Subaccount (date of inception) 1 Year From
(Policy issued with Enhanced Death Benefit) Ended Inception
12/31/98 to
12/31/98
============================================== ============ ===========
Alger American Growth (6/5/95) 45.72 24.18
Alger American Small Capitalization (6/5/95) 13.65 9.52
Federated Prime Money Fund II (6/5/95) 3.21 3.12
Federated Fund for U.S. Government
Securities (6/5/95) 5.91 5.72
Fidelity VIP II Asset Manager: Growth
(6/5/95) 15.67 18.51
Fidelity VIP II Contrafund (6/5/95) 27.89 22.44
Fidelity VIP Equity Income (6/5/95) 9.81 17.46
Fidelity VIP II Index 500 (5/1/97) 26.26 24.50
MFS Emerging Growth Series (6/5/95) 32.01 23.38
MFS High Income Series (6/5/95) -1.81 6.67
MFS Research Series (6/5/95) 21.39 19.56
MFS Capital Opportunities Series (5/1/97) 24.76 25.15
MFS Global Governments Series (6/5/95) 6.14 2.13
MSDW Emerging Markets Equity (5/1/98) N/A -18.63
MSDW Fixed Income (5/1/98) N/A 3.88
Pioneer Capital Growth (5/1/97) -5.53 2.09
Pioneer Real Estate Growth 5/1/97) -20.10 -2.90
Scudder VLIF Global Discovery (5/2/97) 14.29 11.95
Scudder VLIF Growth & Income (5/1/97) 4.92 11.87
Scudder VLIF International (6/5/95) 16.57 11.83
T. Rowe Price Personal Strategy Balanced
(6/5/95) 12.44 14.33
T. Rowe Price Equity Income (6/5/95) 7.41 18.71
T. Rowe Price International (6/5/95) 13.98 9.51
T. Rowe Price Limited-Term Bond (6/5/95) 5.53 4.33
T. Rowe Price New America Growth (6/5/95) 16.58 21.12
============================================== ============ ===========
In addition, we may from time to time disclose average annual total return in
non-standard formats and cumulative total return for Policies funded by the
Subaccounts.
The figures above are an indication of past, but not future, performance of the
applicable Subaccounts available under the Policy.
Adjusted Historical Performance Data. We 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:
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------- --------- --------- ------------ ============
SUBACCOUNT 1 Year 5 Years 10 Years Since
"ADJUSTED HISTORICAL" Ended Ended Ended Inception
AVERAGE ANNUAL TOTAL RETURN TABLE 12/31/98 12/31/98 12/31/98 to 12/31/98
(Reflects Withdrawal Charges) % % % %
Subaccount (date of inception of corresponding
Portfolio)
(Policy issued without Enhanced Death Benefit)
- ------------------------------------------------- --------- --------- ------------ ============
<S> <C> <C> <C> <C>
Alger American Growth (1/9/89) 37.51 21.69 20.42 20.48
Alger American Small Capitalization (9/21/88) 7.26 11.07 18.32 17.34
Federated Prime Money Fund II (11/21/94) -2.59 N/A N/A 2.92
Federated Fund for U.S. Government Securities
(3/28/94) -0.05 N/A N/A 4.70
Fidelity VIP II Asset Manager: Growth (1/3/95) 9.16 N/A N/A 18.86
Fidelity VIP II Contrafund (1/3/95) 20.70 N/A N/A 25.91
Fidelity VIP Equity Income (10/9/86) 3.64 16.66 14.15 12.95
Fidelity VIP II Index 500 (8/27/92) 19.16 21.52 N/A 19.45
MFS Emerging Growth Series (7/24/95) 24.58 N/A N/A 23.66
MFS High Income Series (7/26/95) -7.33 N/A N/A 6.27
MFS Research Series (7/26/95) 14.57 N/A N/A 19.72
MFS Capital Opportunities Series (8/14/96) 17.74 N/A N/A 21.67
MFS Global Governments Series (6/14/95) 0.18 N/A N/A 3.61
MSDW Emerging Markets Equity (10/1/96) -29.79 N/A N/A -15.07
MSDW Fixed Income (1/2/97) 0.18 N/A N/A 4.75
Pioneer Capital Growth (3/1/95) -10.84 N/A N/A 10.84
Pioneer Real Estate Growth (3/1/95) -24.58 N/A N/A 9.88
Scudder VLIF Global Discovery (5/2/97) 7.87 N/A N/A 14.72
Scudder VLIF Growth & Income (5/1/97) -0.97 N/A N/A 12.38
Scudder VLIF International (5/1/87) 10.01 8.35 10.53 9.15
T. Rowe Price Personal Strategy Balanced
(12/31/94) 6.12 N/A N/A 16.13
T. Rowe Price Equity Income (3/31/94) 1.38 N/A N/A 18.35
T. Rowe Price International (3/31/94) 7.57 N/A N/A 7.67
T. Rowe Price Limited-Term Bond (5/13/94) -0.40 N/A N/A 4.44
T. Rowe Price New America Growth (3/31/94) 10.03 N/A N/A 20.35
================================================= ========= ========= ============ ============
Subaccount (date of inception of corresponding 1 Year 5 Years 10 Years Since
Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 12/31/98 12/31/98 to 12/31/98
================================================= ========= ========= ============ ============
Alger American Growth (1/9/89) 37.05 21.27 20.01 20.06
Alger American Small Capitalization (9/21/88) 6.89 10.68 17.91 16.94
Federated Prime Money Fund II (11/21/94) -2.93 N/A N/A 2.55
Federated Fund for U.S. Government Securities
(3/28/94) -0.40 N/A N/A 4.34
Fidelity VIP II Asset Manager: Growth (1/3/95) 8.79 N/A N/A 18.45
Fidelity VIP II Contrafund (1/3/95) 20.28 N/A N/A 25.48
Fidelity VIP Equity Income (10/9/86) 3.28 16.25 13.75 12.56
Fidelity VIP II Index 500 (8/27/92) 18.75 21.10 N/A 19.03
MFS Emerging Growth Series (7/24/95) 24.15 N/A N/A 23.23
MFS High Income Series (7/26/95) -7.65 N/A N/A 5.90
MFS Research Series (7/26/95) 14.17 N/A N/A 19.30
MFS Capital Opportunities Series (8/14/96) 17.34 N/A N/A 21.24
MFS Global Governments Series (6/14/95) -0.17 N/A N/A 3.25
MSDW Emerging Markets Equity (10/1/96) -30.04 N/A N/A -15.37
MSDW Fixed Income (1/2/97) -0.17 N/A N/A 4.38
Pioneer Capital Growth (3/1/95) -11.16 N/A N/A 10.46
Pioneer Real Estate Growth (3/1/95) -24.85 N/A N/A 9.50
Scudder VLIF Global Discovery (5/2/97) 7.49 N/A N/A 14.32
Scudder VLIF Growth & Income (5/1/97) -1.32 N/A N/A 11.99
Scudder VLIF International (5/1/87) 9.63 7.97 10.14 8.77
T. Rowe Price Personal Strategy Balance
(12/31/94) 5.75 N/A N/A 15.72
T. Rowe Price Equity Income (3/31/94) 1.02 N/A N/A 17.94
T. Rowe Price International (3/31/94) 7.20 N/A N/A 7.30
T. Rowe Price Limited-Term Bond (5/13/94) -0.75 N/A N/A 4.07
T. Rowe Price New America Growth (3/31/94) 9.65 N/A N/A 19.93
========================================================= ========= ============ ============
11
<PAGE>
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 12/31/98 12/31/98 12/31/98 to 12/31/98
(Does not reflect Surrender Charges) % % % %
Subaccount (date of inception of corresponding
Portfolio)
(Policy issued without Enhanced Death Benefit)
- ------------------------------------------------- --------- --------- ------------ ============
Alger American Growth (1/9/89) 46.21 22.32 20.42 20.48
Alger American Small Capitalization (9/21/88) 14.05 11.64 18.32 17.34
Federated Prime Money Fund II (11/21/94) 3.58 N/A N/A 3.57
Federated Fund for U.S. Government Securities
(3/28/94) 6.28 N/A N/A 5.27
Fidelity VIP II Asset Manager: Growth (1/3/95) 16.07 N/A N/A 19.89
Fidelity VIP II Contrafund (1/3/95) 28.33 N/A N/A 27.01
Fidelity VIP Equity Income (10/9/86) 10.20 17.26 14.15 12.95
Fidelity VIP II Index 500 (8/27/92) 26.70 22.15 N/A 19.61
MFS Emerging Growth Series (7/24/95) 32.46 N/A N/A 24.91
MFS High Income Series (7/26/95) -1.47 N/A N/A 7.35
MFS Research Series (7/26/95) 21.81 N/A N/A 20.93
MFS Capital Opportunities Series (8/14/96) 25.19 N/A N/A 23.91
MFS Global Governments Series (6/14/95) 6.51 N/A N/A 4.20
MSDW Emerging Markets Equity (10/1/96) -25.34 N/A N/A -13.41
MSDW Fixed Income (1/2/97) 6.52 N/A N/A 7.53
Pioneer Capital Growth (3/1/95) -5.20 N/A N/A 11.85
Pioneer Real Estate Growth (3/1/95) -19.81 N/A N/A 10.87
Scudder VLIF Global Discovery (5/2/97) 14.69 N/A N/A 18.38
Scudder VLIF Growth & Income (5/1/97) 5.29 N/A N/A 15.96
Scudder VLIF International (5/1/87) 16.97 8.91 10.53 9.15
T. Rowe Price Personal Strategy Balanced
(12/31/94) 12.83 N/A N/A 17.13
T. Rowe Price Equity Income (3/31/94) 7.79 N/A N/A 18.99
T. Rowe Price International (3/31/94) 14.38 N/A N/A 8.26
T. Rowe Price Limited-Term Bond (5/13/94) 5.90 N/A N/A 5.02
T. Rowe Price New America Growth (3/31/94) 16.99 N/A N/A 21.00
12
<PAGE>
================================================= ========= ========= ============ ============
Subaccount (date of inception of corresponding 1 Year 5 Years 10 Years Since
Portfolio) Ended Ended Ended Inception
(Policy issued with Enhanced Death Benefit) 12/31/98 12/31/98 12/31/98 to 12/31/98
================================================= ========= ========= ============ ============
Alger American Growth (1/9/89) 45.72 21.90 20.01 20.06
Alger American Small Capitalization (9/21/88) 13.65 11.26 17.91 16.94
Federated Prime Money Fund II (11/21/94) 3.21 N/A N/A 3.20
Federated Fund for U.S. Government Securities
(3/28/94) 5.91 N/A N/A 4.91
Fidelity VIP II Asset Manager: Growth (1/3/95) 15.67 N/A N/A 19.48
Fidelity VIP II Contrafund (1/3/95) 27.89 N/A N/A 26.57
Fidelity VIP Equity Income (10/9/86) 9.81 16.86 13.75 12.56
Fidelity VIP II Index 500 (8/27/92) 26.26 21.73 N/A 19.20
MFS Emerging Growth Series (7/24/95) 32.01 N/A N/A 24.48
MFS High Income Series (7/26/95) -1.81 N/A N/A 6.97
MFS Research Series (7/26/95) 21.39 N/A N/A 20.50
MFS Capital Opportunities Series (8/14/96) 24.76 N/A N/A 23.47
MFS Global Governments Series (6/14/95) 6.14 N/A N/A 3.83
MSDW Emerging Markets Equity (10/1/96) -25.61 N/A N/A -13.72
MSDW Fixed Income (1/2/97) 6.15 N/A N/A 7.16
Pioneer Capital Growth (3/1/95) -5.53 N/A N/A 11.46
Pioneer Real Estate Growth (3/1/95) -20.10 N/A N/A 10.49
Scudder VLIF Global Discovery (5/2/97) 14.29 N/A N/A 17.97
Scudder VLIF Growth & Income (5/1/97) 4.92 N/A N/A 15.56
Scudder VLIF International (5/1/87) 16.57 8.53 10.14 8.77
T. Rowe Price Personal Strategy Balance
(12/31/94) 12.44 N/A N/A 16.73
T. Rowe Price Equity Income (3/31/94) 7.41 N/A N/A 18.58
T. Rowe Price International (3/31/94) 13.98 N/A N/A 7.88
T. Rowe Price Limited-Term Bond (5/13/94) 5.53 N/A N/A 4.65
T. Rowe Price New America Growth (3/31/94) 16.58 N/A N/A 20.59
================================================= ========= ========= ============ ============
</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.
We 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.
Other Performance 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
13
<PAGE>
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 ("SEC"), 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, refer to the instruments filed with the SEC. They may be
accessed on the SEC's Web site:
http://www.sec.gov.
FINANCIAL STATEMENTS
This Statement of Additional Information contains financial statements
for the Variable Account as of December 31, 1998 and for the years ended
December 31, 1998 and 1997 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
December 31, 1998 and 1997, and for each of the three years ended December 31,
1998 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 should be considered only as bearing on our ability 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.
14
<PAGE>
UNITED OF OMAHA
LIFE INSURANCE COMPANY
(a WHOLLY-OWNED SUBSIDIARY OF MUTUAL
OF OMAHA INSURANCE COMPANY)
STATUTORY BASIS FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 1998, 1997 AND 1996
15
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
United of Omaha Life Insurance Company
Omaha, Nebraska
We have audited the accompanying statutory basis 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,
1998 and 1997, and the related statutory basis statements of income, changes in
surplus, and cash flows for each of the three years in the period ended December
31, 1998. The financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
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, 1998 and 1997, or
the results of its operations or its cash flows for each of the three years in
the period ended December 31, 1998.
In our opinion, the statutory basis 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, 1998 and
1997, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 1998, on the basis of accounting
described in Note 1.
DELOITTE & TOUCHE LLP
March 4, 1999
16
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY BASIS STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND SURPLUS
DECEMBER 31, 1998 AND 1997
(in thousands)
- ---------------------------------------------------------------------------------------------------
ADMITTED ASSETS 1998 1997
Cash and invested assets:
<S> <C> <C>
Bonds $ 7,253,217 $6,921,762
Preferred stocks 3,955 3,955
Common stocks 104,108 96,599
Mortgage loans 599,396 587,413
Real estate occupied by the Company, net of accumulated depreciation
of $59,319 in 1998 and $55,634 in 1997 79,262 82,536
Real estate acquired in satisfaction of debt, net of
accumulated depreciation of $180 in 1998 and $2,809 in 1997 8,049 24,103
Investment in real estate, net of accumulated depreciation
of $4,001 in 1998 and $3,836 in 1997 2,261 2,426
Policy loans 133,474 125,623
Cash and short-term investments 208,351 115,195
Other invested assets 90,478 75,603
--------- ---------
Total cash and invested assets 8,482,551 8,035,215
Premiums deferred and uncollected 112,870 105,487
Investment income due and accrued 83,742 81,723
Electronic data processing equipment, net of accumulated depreciation
of $83,573 in 1998 and $70,130 in 1997 40,003 43,989
Receivable from parent, subsidiaries and affiliates 114,882 36,856
Other assets 60,210 55,383
Separate accounts assets 1,128,411 927,950
--------- ---------
Total admitted assets $10,022,669 $9,286,603
========== =========
LIABILITIES
Policy reserves:
Aggregate reserve for policies and contracts $ 6,115,601 $5,880,532
Liability for premium and other deposit funds 1,767,288 1,527,069
Policy and contract claims 69,436 68,226
Other 73,861 75,725
--------- ---------
Total policy reserves 8,026,186 7,551,552
Interest maintenance reserve 28,297 18,902
Asset valuation reserve 99,409 94,144
General expenses and taxes due or accrued 28,696 30,843
Federal income taxes due or accrued 30,644 17,739
Other liabilities 83,682 77,148
Separate accounts liabilities 1,106,149 908,200
--------- ---------
Total liabilities 9,403,063 8,698,528
--------- ---------
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 547,882 516,351
--------- ---------
Total surplus 619,606 588,075
--------- ---------
Total liabilities and surplus $10,022,669 $9,286,603
========== =========
The accompanying notes are an integral part of these statutory basis financial
statements.
</TABLE>
17
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY BASIS STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
(in thousands)
- ----------------------------------------------------------------------------------------------------
1998 1997 1996
Income:
<S> <C> <C> <C>
Net premiums and annuity considerations $ 1,084,976 $ 1,187,104 $ 1,285,507
Other considerations and fund deposits 236,638 293,228 260,508
Net investment income 579,276 587,480 546,634
Other income 44,798 25,019 20,604
--------- --------- ---------
Total income 1,945,688 2,092,831 2,113,253
--------- --------- ---------
Benefits and expenses:
Policyholder and beneficiary benefits 1,163,585 1,030,686 890,668
Increase in reserves for policyholder and beneficiary benefits 262,888 365,393 561,185
Commissions 118,499 130,343 126,692
Operating expenses 225,067 203,684 175,723
Expense realignment costs - 4,442 9,099
Net transfers to separate accounts 87,759 278,480 277,638
--------- --------- ---------
Total benefits and expenses 1,857,798 2,013,028 2,041,005
--------- --------- ---------
Net gain from operations before federal income taxes and
net realized capital gains 87,890 79,803 72,248
Federal income taxes 47,032 37,918 41,101
--------- --------- ---------
Net gain from operations before net
realized capital gains 40,858 41,885 31,147
Net realized capital gains 8,692 51,537 23,461
--------- --------- ---------
Net income $ 49,550 $ 93,422 $ 54,608
========= ========= =========
The accompanying notes are an integral part of these statutory basis financial
statements.
</TABLE>
18
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY BASIS STATEMENTS OF CHANGES IN SURPLUS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
(in thousands)
- --------------------------------------------------------------------------------------------------
1998 1997 1996
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 516,351 463,096 440,889
Net income 49,550 93,422 54,608
Change in net unrealized capital gains and losses (1,876) (45,543) (23,064)
(Increase) decrease in:
Non-admitted assets 3,154 (15,448) 2,561
Asset valuation reserve (5,265) 20,352 (8,150)
Additional pension plan contribution (9,732) - (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 (4,300) 270 (149)
------ ------ ------
Balance at end of year 547,882 516,351 463,096
------- ------- -------
Total surplus $ 619,606 $ 588,075 $ 534,820
======= ======= =======
The accompanying notes are an integral part of these statutory basis financial
statements.
</TABLE>
19
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
<TABLE>
<CAPTION>
STATUTORY BASIS STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
(in thousands)
- ----------------------------------------------------------------------------------------------------
1998 1997 1996
Cash from operations:
<S> <C> <C> <C>
Premiums, annuity considerations and other fund deposits $ 1,318,298 $ 1,467,305 $ 1,539,502
Net investment income 568,917 572,888 537,288
Other income 38,789 24,599 20,642
Benefits (1,167,244) (1,015,334) (888,661)
Commissions and general expenses (364,713) (358,217) (314,100)
Federal income taxes (6,096) (50,033) (42,235)
Net transfers to separate accounts (88,584) (291,034) (292,935)
------- ------- -------
Net cash from operations 299,367 350,174 559,501
------- ------- ------
Cash from investments:
Proceeds from investments sold, redeemed or matured:
Bonds 1,193,524 1,061,409 992,065
Mortgage loans 146,104 335,103 132,406
Stocks 9,347 143,363 52,062
Real estate 26,750 37,927 18,601
Other invested assets 25,276 40,376 32,150
Tax on capital gains (34,197) (15,797) (9,665)
Cost of investments acquired:
Bonds (1,502,417) (1,774,643) (1,818,632)
Mortgage loans (152,355) (19,863) (22,607)
Stocks (8,358) (23,479) (25,848)
Other invested assets (38,745) (27,564) (53,150)
Real estate (7,991) (3,083) (4,205)
Net increase in policy loans (7,849) (7,474) (6,815)
------- ------- ------
Net cash from investments (350,911) (253,725) (713,638)
------- ------- ------
Cash from financing and other sources:
Decrease (increase) in receivable from parent,
subsidiaries and affiliates (78,026) (28,781) 20,009
Increase (decrease) in other nonqualified deposits 213,068 (49,216) 70,102
Other cash provided 18,349 18,881 12,512
Other cash used (8,691) (39,640) (6,984)
------- ------- ------
Net cash from financing and other sources 144,700 (98,756) 95,639
------- ------- ------
Net change in cash and short-term investments 93,156 (2,307) (58,498)
Cash and short-term investments:
Beginning of year 115,195 117,502 176,000
------- ------- ------
End of year $ 208,351 $ 115,195 $ 117,502
======= ======= ======
The accompanying notes are an integral part of these statutory basis financial
statements.
</TABLE>
20
<PAGE>
UNITED OF OMAHA LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF MUTUAL OF OMAHA INSURANCE COMPANY)
NOTES TO STATUTORY BASIS FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
(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, 1998, 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-Nebraska
(MOSSCO-NE), Mutual of Omaha Structured Settlement Company-Connecticut
(MOSSCO-CT), and Mutual of Omaha Structured Settlement Company of New York,
Inc. (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; (h) comprehensive
income and its components are not presented in the financial statements;
and (i) 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. The effects of the foregoing differences on the
accompanying statutory financial statements are not reasonably determinable
but are presumed to be material.
Use of Estimates - The preparation of financial statements in accordance
with statutory accounting practices requires management to make estimates
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 revenues and expenses
during the reporting period. Actual results could differ significantly from
those estimates.
21
<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 at cost. Common stocks of
unaffiliated companies are stated at estimated fair value and stocks of
affiliated companies (principally insurance companies) are valued at the
Company's equity in the underlying book value. The change in the stated
value is recorded as a change in net 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.
The home office properties, investment real estate, and electronic data
processing equipment are valued at cost, less accumulated depreciation.
Property acquired in satisfaction of debt is initially valued at the lower
of cost or estimated fair 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 basis 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 the calculation of these reserves. The impact of this
change 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.
22
<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 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 basis statements of admitted
assets, liabilities, and surplus. The net change in such assets is charged
or credited 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 of 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.
23
<PAGE>
Derivatives - The Company invests in certain derivative financial
instruments to reduce exposure to interest-rate and foreign-currency risks
associated with assets held or liabilities incurred. 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 these instruments.
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 net investment income on an accrual basis over the life of
the swap agreement. Gains and losses resulting from early termination of
interest-rate swaps used for hedging are deferred and amortized over the
remaining period originally covered by the swap. The Company enters into
interest-rate swap agreements to manage interest-rate exposure. The primary
purpose 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.
Interest-rate caps represent a right to receive the excess of a referenced
interest rate over a given rate in exchange for the payment of a premium.
Premiums are amortized and recorded as an adjustment to net investment
income over the life of the investment using the effective interest method.
The Company 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.
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 basis statements of income. The change in estimated fair value is
recorded as a change in net unrealized gains (losses). The Company has
purchased 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 simultaneously 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.
Equity-linked notes 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. 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.
Separate Accounts - The assets of the separate accounts shown in the
statutory basis 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
basis statements of income, but are offset by transfers from the separate
accounts. Deposits, net investment income and realized and unrealized
capital gains and losses on the separate accounts are not reflected in the
statutory basis statements of income. Mortality, policy administration and
surrender charges to all separate accounts are included in revenue.
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.
24
<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, 1998:
<S> <C> <C> <C> <C>
U.S. Government $ 30,199 $ 2,300 $ 63 $ 32,436
Political subdivisions 10,549 302 - 10,851
Mortgage-backed securities 380,824 15,037 2,221 393,640
Special revenue 52,399 3,220 - 55,619
Public utilities 419,753 21,077 1,270 439,560
Industrial and miscellaneous 4,984,347 186,244 28,243 5,142,348
Collateralized mortgage obligations 1,370,460 38,428 3,698 1,405,190
Credit-tenant loans 219,091 20,303 180 239,214
--------- ------- ------ ---------
Total $ 7,467,622 $ 286,911 $ 35,675 $ 7,718,858
========= ======= ====== =========
Bonds $ 7,253,217
Short-term investments 214,405
---------
$ 7,467,622
=========
Preferred stocks $ 3,955 $ 2,036 $ - $ 5,991
========= ======= ====== =========
Common stocks:
Affiliated $ 66,086 $ 24,184 $ - $ 90,270
Unaffiliated 165 13,723 50 13,838
--------- ------- ------ ---------
$ 66,251 $ 37,907 $ 50 $ 104,108
========= ======= ====== =========
</TABLE>
25
<PAGE>
<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
========= ========= ===== ========
</TABLE>
The amortized cost and estimated fair value of debt securities at December
31, 1998, 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 $ 464,039 $ 465,511
Due after one year through five years 1,541,941 1,570,052
Due after five years through ten years 1,420,471 1,474,675
Due after ten years 2,289,887 2,409,791
--------- ---------
5,716,338 5,920,029
Collateralized mortgage obligations and
mortgage backed securities 1,751,284 1,798,829
--------- ---------
$7,467,622 $7,718,858
========= =========
26
<PAGE>
The sources of net investment income were as follows:
1998 1997 1996
Bonds $515,152 $501,101 $439,884
Preferred stocks 299 399 399
Common stocks 146 449 1,789
Mortgage loans 52,305 70,469 87,035
Real estate 19,833 25,531 29,860
Policy loans 7,324 7,454 6,855
Short-term investments 4,962 4,658 7,339
Other (1,970) (1,239) (2,732)
------- ------- -------
598,051 608,822 570,429
Investment expense (22,067) (25,194) (28,270)
Amortization of interest maintenance reserve 3,292 3,852 4,475
------- ------- -------
$579,276 $587,480 $546,634
======= ======= ========
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, 1998:
Bonds $ 13,939 $ 240 $ 13,699
Common stocks 376 55 321
Mortgage loans 5,819 181 5,638
Real estate 4,248 697 3,551
Other 9,711 77 9,634
------- ----- -------
$ 34,093 $ 1,250 32,843
======= =====
Capital gains tax (11,465)
Transfer to IMR (12,686)
------
Net realized capital gains $ 8,692
======
27
<PAGE>
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 (25,412)
Transfer to IMR 4,116
------
Net realized capital gains $51,537
======
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)
Transfer to IMR (5,968)
-------
Net realized capital gains $23,461
======
Proceeds from the sale of bonds were $141,015, $265,701 and $197,362 during
1998, 1997 and 1996, respectively.
The Company invests in mortgage loans collateralized principally by
commercial real estate. The maximum and minimum lending rates for mortgage
loans during 1998 ranged from 6.4% to 9.6%. The maximum percentage of any
one loan to the value of security at the time the loan was originated,
exclusive of insured, guaranteed or purchase money mortgages, was 75%. The
estimated fair value of the mortgage loan portfolio was $645,962 and
$625,176 at December 31, 1998 and 1997, respectively.
28
<PAGE>
The Company's mortgage loans finance various types of commercial properties
throughout the United States. The geographic distributions of the mortgage
loans at December 31, 1998 and 1997 were as follows:
1998 1997
Texas $ 43,616 $ 21,146
California 39,923 51,109
Alabama 34,493 13,020
Nebraska 34,079 34,435
Louisiana 31,037 22,036
Washington 25,053 31,426
All other states 391,195 414,241
------- -------
$599,396 $587,413
======= =======
There were no non-performing or restructured mortgage loans at December 31,
1998. At December 31, 1997, the Company held non-performing loans of
$7,146. There were no restructured mortgage loans at December 31, 1997.
Securities with an amortized cost of $5,493 and $5,469 were on deposit with
government agencies at December 31, 1998 and 1997, respectively, 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 basis 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.
The Company has commitments to fund bond investments of approximately
$45,372 and $60,900 as of December 31, 1998 and 1997, respectively. The
Company also has commitments to fund mortgage loans of approximately
$21,231 and $1,900 as of December 31, 1998 and 1997, respectively. 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.
29
<PAGE>
3. DERIVATIVE FINANCIAL INSTRUMENTS
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, 1998:
<S> <C> <C> <C> <C> <C> <C> <C>
Interest-rate swaps $202,500 $ - $ (9,713)2002 - 2003 6.97 % 6.50 %
========= ==== =========
Interest-rate caps $600,000 $ 2,924 $ 633 2000 - 2003 - -
========= ======== ======
Equity-linked notes $101,000 $ 3,541 $ 62,671 2001 - 2016 - -
========= ======== =========
At December 31, 1997:
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 - -
========= ======== =========
</TABLE>
These derivative financial instruments involve, to varying degrees,
elements of credit and market risk which are not recognized in the
statutory basis statements 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.
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.
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 practices. 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 rate paid by the Company thereby reducing its exposure.
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 discounts on bonds and certain accrued
expenses, and the acceleration of depreciation for tax purposes.
30
<PAGE>
The Company's tax returns have been examined by the Internal Revenue
Service (IRS) through 1992. The Company is currently contesting certain
adjustments proposed by the IRS for tax years 1990 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 in effect 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 not
likely.
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 the
terms of 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 28% and 30% of the total Companies' salary
expense in 1998 and 1997, respectively, and approximately 28% in 1996. The
Companies expensed contributions of $10,254, $7,972 and $12,152 in 1998,
1997 and 1996, 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. In 1998, the
Companies changed the plan's assumed annual investment return and in order
to improve the funding status of the plan, increased the amount that will
be contributed for 1998. At December 31, 1998, the Companies recorded a
direct charge to surplus of $37,541, which represents an additional
contribution of $57,815, net of tax. The Company's share of this
contribution was $9,732, net of tax.
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 1998 and 1997, Mutual of Omaha and
the Company contributed approximately $2,700 and $2,600, respectively, to
this account.
A comparison of accrued benefits and net assets for the entire plan as of
January 1, 1998 and 1997 follows:
1998 1997
Actuarial present value of accrued benefits:
Vested $442,595 $380,495
Nonvested 3,302 2,204
-------- --------
$445,897 $382,699
======= =======
Net assets available for benefits $389,956 $369,871
======= =======
Assumptions:
Annual investment return 8.00 % 9.00 %
Mortality table 1983 GAM 1983 GAM
Discount rate 6.73 % 7.37 %
31
<PAGE>
The Companies also provide 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 expensed by the Companies were $3,054, $8,428 and $5,600 in
1998, 1997 and 1996, 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, prior to retirement, to be eligible for a subsidy. 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 in
accordance with an intercompany cost-sharing agreement. 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 $6,418 that were previously
recorded by the Company 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, 1998 and 1997:
1998 1997
Accumulated postretirement benefits obligation:
Fully eligible actives $ 4,905 $ 9,695
Retirees 83,322 76,208
------ ------
88,227 85,903
Plan assets in Postretirement Medical 401(h) Account (5,642) (2,713)
Unrecognized transition obligation (56,257) (60,275)
Unrecognized gain 7,555 9,460
------ ------
Total accrued postretirement benefit liability $33,883 $ 32,375
====== ======
Assumptions:
Discount rate 7.00 % 7.25 %
Health care cost trend rate:
First year 5.00 % 5.00 %
The Companies' net periodic postretirement benefit costs include the
following components:
1998 1997 1996
Eligibility costs $ - $ 1,598 $ 1,385
Interest costs 6,118 5,986 5,909
Deferral of gain on plan assets 36 55 -
Amortization of transition obligation 4,018 4,018 4,018
Amortization of gain (99) - -
Return on assets (220) (55) -
----- ------ ------
Total benefit costs $9,853 $11,602 $11,312
===== ====== ======
32
<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, 1998, by approximately $6,200 and the estimated eligibility and
interest cost components of the net periodic postretirement benefit costs
for 1998 by approximately $800.
The Company has deferred compensation plans for certain officers and key
employees. The plans were adopted upon approval by the board of directors.
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-CT of $5 for the year ended December 31, 1998 and $106 from
MOSSCO-NY and MOSS-CT for the year ended December 31, 1997 and $349 from
MOSSCO-NE, MOSSCO-NY and MOSSCO-CT for the year ended December 31, 1996.
The Company paid $410, $427 and $444 during 1998, 1997 and 1996,
respectively, to Kirkpatrick, Pettis, Smith, Polian, Inc., an affiliate,
for equity investment management services. In addition, the Company paid
assignment fees of $8 to MOSSCO-CT for the year ended December 31, 1998 and
$165 to MOSSCO-NY and MOSSCO-CT for the year ended December 31, 1997 and
$439 to MOSSCO-NE, MOSSCO-NY and MOSSCO-CT for the year ended December 31,
1996.
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 were as follows:
1998 1997
Aggregate reserve for policies and contracts $ 84,042 $92,276
======= ======
Policy and contract claims $100,213 $92,555
======= ======
1998 1997 1996
Premium considerations $387,139 $378,854 $368,126
======= ======= =======
Policyholder and beneficiary benefits $337,101 $286,033 $273,576
======= ======= =======
Group reinsurance settlement expense (included
in operating expenses) $ 18,777 $ 10,405 $ 2,818
======= ======= =======
33
<PAGE>
The Company also assumes group and individual life insurance from
Companion. The Company entered into a coinsurance treaty with Companion
relating to bank annuity business in which Companion cedes 90% of the 1998
and 75% of the 1997 related premiums to the Company and the Company pays
90% and 75% of the related benefits, in 1998 and 1997, respectively. The
total amounts assumed by the Company relating to the treaties with
Companion were as follows:
1998 1997
Aggregate reserve for policies and contracts $47,634 $30,498
======== =======
Policy and contract claims $ 2,917 $ 2,370
======== =======
The amounts ceded by the Company and included in the statutory statements
of income were as follows:
1998 1997 1996
Premium considerations $19,790 $31,343 $2,668
======== ======== ======
Policyholder and beneficiary benefits $ 5,507 $ 3,151 $2,390
======== ======== ======
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:
1998 1997 1996
Direct $1,460,516 $1,541,127 $1,641,295
Assumed:
Affiliated 19,790 31,344 2,668
Nonaffiliates 26,438 23,548 23,913
Ceded:
Affiliated (387,139) (378,854) (367,598)
Nonaffiliated (34,629) (30,061) (14,771)
--------- --------- --------
Net $1,084,976 $1,187,104 $1,285,507
=========== =========== ==========
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, 1998, the Company had no outstanding borrowings
against its uncommitted, uncollateralized revolving lines of credit.
Interest rates applicable to borrowings under these lines of credit are
negotiated with the lender at the time of borrowing.
9. COMMITMENTS AND CONTINGENCIES
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.
34
<PAGE>
Leases - The Company leases certain property to house Home Office
operations in Omaha, Nebraska, from its parent, Mutual of Omaha. The
current lease expires December 31, 2035.
The Company and Mutual of Omaha rent office space, equipment and computer
software under noncancellable operating leases. Future required minimum
rental payments under those leases as of December 31, 1998 were
approximately:
1999 $17,080,000
2000 14,168,000
2001 8,550,000
2002 4,948,000
2003 2,392,000
Thereafter 2,291,000
----------
Total $49,429,000
0. DEPOSIT FUNDS
The estimated fair value and statement value of guaranteed investment and
select maturity contracts were:
1998 1997
Estimated fair value $1,346,065 $1,118,746
=========== ==========
Statement value $1,353,266 $1,119,540
=========== ==========
The 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, 1998 and 1997, the Company held annuity reserves and
deposit fund liabilities of $1,877,117 and $1,256,277, 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 $61,061 in 1999.
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.
35
<PAGE>
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.
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 Company incurred approximately $4,442 and $9,099 of
severance and related costs, consulting fees and other one-time costs
associated with expense realignment activities during 1997 and 1996,
respectively.
14. CODIFICATION OF STATUTORY ACCOUNTING PRINCIPLES
In March 1998, the National Association of Insurance Commissioners adopted
the Codification of Statutory Accounting Principles (Codification). The
Codification, which is intended to standardize regulatory accounting and
reporting for the insurance industry, is proposed to be effective January
1, 2001. During 1999, the State of Nebraska adopted the Codification. The
Company has not finalized the quantification of the effects of Codification
on its statutory financial statements.
36
<PAGE>
UNITED OF OMAHA
SEPARATE ACCOUNT C
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT AS OF
DECEMBER 31, 1998 AND FOR THE TWO YEARS
ENDED DECEMBER 31, 1998 AND 1997
37
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
United of Omaha Life Insurance Company
We have audited the accompanying statements of net assets, including the
schedules of investments, of United of Omaha Separate Account C (comprised of
the Growth, Asset Manager, Index 500, Money Market, Bond, International (T. Rowe
Price), New America Growth, Equity Income (T. Rowe Price), Limited Term Bond,
Contrafund, Asset Manager: Growth, Equity Income (Fidelity), International
(Scudder), Global Discovery, Growth & Income, Personal Strategy Balanced,
Limited-Term Bond, American Small Capitalization, American Growth, Prime Money
Fund II, U.S. Government Securities, Global Governments, Capital Opportunities,
High Income, Research, Emerging Growth, Real Estate Growth, Capital Growth,
Emerging Markets Equity and Fixed Income portfolios) as of December 31, 1998,
and the related statements of operations and changes in net assets for the years
ended December 31, 1998 and 1997. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
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 investments owned, by correspondence with the transfer agents.
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 each of the respective
portfolios constituting United of Omaha Separate Account C as of December 31,
1998, and the results of their operations and changes in their net assets for
the two years ended December 31, 1998 and 1997 in conformity with generally
accepted accounting principles.
April 23, 1999
38
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
STATEMENTS OF NET ASSETS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
------------------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
---------------------------------- --------------------- -------------------------------------------
New Limited
Asset Index Money America Equity Term
ASSETS Growth Manager 500 Market Bond International Growth Income Bond
Investments in portfolio shares,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
at cost $ 935,574 $ 564,775 $ 289,429 $ 113,580 $ 463,418 $ 576,633 $ 440,520 $ 616,730 $ 74,469
========== ========== ========== ========== ========== ========== ========== ========== ========
Investments in portfolio shares,
at market value $ 1,256,672 $ 652,498 $ 499,961 $ 113,580 $ 471,641 $ 637,213 $ 653,577 $ 664,571 $ 75,816
---------------------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Net assets $ 1,256,672 $ 652,498 $ 499,961 $ 113,580 $ 471,641 $ 637,213 $ 653,577 $ 664,571 $ 75,816
====================== ========== ========== ========== ========== ========== ========== ========
Accumulation units outstanding 47,718 38,278 18,187 96,114 35,396 44,846 26,453 30,241 6,073
======= ======= ======= ======= ======= ======= ======= ======= =====
Net asset value per unit $ 26.34 $ 17.05 $ 27.49 $ 1.00 $ 13.32 $ 14.21 $ 24.71 $ 21.97 $ 12.48
======== ======== ======== ======= ======== ======== ======== ======== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
DECEMBER 31, 1998 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
-----------------------------------------------------------------------------------------
Fidelity Scudder
---------------------------------------------------- -----------------------------------
Asset
Manager: Equity Index Global Growth &
ASSETS Contrafund Growth Income 500 International Discovery Income
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio shares, at cost $ 49,952,740 $ 44,800,694 $ 61,249,999 $ 27,860,150 $ 35,484,970 $ 3,672,050 $ 13,964,165
============ ============ ============= ============ =========== ============= ===========
Investments in portfolio shares,
at market value $69,982,543 $ 54,858,364 $ 71,991,987 $ 32,520,940 $ 37,207,964 $ 3,943,781 $ 13,729,985
----------- -------------------------- ------------ -------------- ----------- ------------
Net assets $ 69,982,543 $ 54,858,364 $ 71,991,987 $ 32,520,940 $ 37,207,964 $ 3,943,781 $ 13,729,985
============ ============= =========== ============ ============== =========== ============
Accumulation units outstanding 3,173,298 2,875,591 3,996,435 2,150,305 2,455,997 300,000 1,075,906
========== ========= ========== ========== ========== ======== =========
Net asset value per unit $ 22.05 $ 19.08 $ 18.01 $ 15.12 $ 15.15 $ 13.15 $ 12.76
======== ======= ======== ======== ======== ======== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
DECEMBER 31, 1998 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
----------------------------------------------------------------------------------------------
T. Rowe Price Alger
---------------------------------------------------------------- -------------------------
New Personal Limited- American
America Strategy Equity Term Small American
ASSETS Growth Balanced Income International Bond Capitalization Growth
Investments in
portfolio shares,
<S> <C> <C> <C> <C> <C> <C> <C>
at cost $ 31,666,280 $ 45,018,607 $ 71,804,786 $ 37,592,411 $ 27,311,537 $ 31,000,888 $ 36,025,482
============ ============ ============ ============ ============ ============ ============
Investments in
portfolio shares,
at market value $ 41,232,584 $ 51,609,273 $ 81,842,040 $ 41,248,435 $ 27,627,294 $ 33,231,834 $ 48,735,164
------------ ------------ ----------- ------------- ------------- ------------- -------------
Net assets $ 41,232,584 $ 51,609,273 $ 81,842,040 $ 41,248,435 $ 27,627,294 $ 33,231,834 $ 48,735,164
============ ============ ============ ============ ============== ============ =============
Accumulation units
outstanding 1,914,746 3,090,073 4,407,085 2,966,530 2,346,709 2,138,235 2,064,926
========== ========== ========== ========== ========== ========== ==========
Net asset value per unit $ 21.53 $ 16.70 $ 18.57 $ 13.90 $ 11.77 $ 15.54 $ 23.60
======== ======== ======== ======== ======== ======== ========
Federated
--------------------------
Prime U.S.
Money Government
Fund II Securities
Investments in
portfolio shares,
<S> <C> <C>
at cost $ 39,107,358 $ 29,005,708
============= ============
Investments in
portfolio shares,
at market value $ 39,107,358 $ 30,849,440
------------ ------------
Net assets $ 39,107,358 $ 30,849,440
========== =============
Accumulation units
outstanding 34,415,377 2,487,692
=========== =========
Net asset value per unit $ 1.00 $ 12.40
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
DECEMBER 31, 1998 (continued)
Series V
MFS Pioneer
Real
Global Capital High Emerging Estate Capital
ASSETS Governments Opportunities Income Research Growth Growth Growth
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in portfolio shares,
at cost $14,890,077 $ 15,127,642 $ 26,406,186 $ 42,206,508 $ 49,568,391 $ 7,660,099 $ 8,978,672
============ ============ ============== =========== ============== ============ ============
Investments in portfolio shares,
at market value $ 15,831,422 $ 17,021,997 $ 25,498,509 $ 53,875,971 $ 66,234,681 $ 6,359,022 $ 8,017,162
------------ -------------- ----------- ------------ ------------- ------------ ------------
Net assets $ 15,831,422 $ 17,021,997 $ 25,498,509 $ 53,875,971 $ 66,234,681 $ 6,359,022 $ 8,017,162
========================== ======================================= ============ ============
Accumulation units outstanding 1,444,795 1,117,864 2,002,704 2,811,129 3,084,172 650,704 722,689
========== ========== ========== ========== ========== ======== ========
Net asset value per unit $ 10.96 $ 15.23 $ 12.73 $ 19.17 $ 21.48 $ 9.77 $ 11.09
======== ======== ======== ======== ======== ======= ========
Dean Witter
Emerging
Markets Fixed
Equity Income
<C> <C>
Investments in portfolio share
at cost $ 98,818 $859,698
========= ========
Investments in portfolio share
at market value $103,017 $841,443
--------- --------
Net assets $103,017 $841,443
========= ========
Accumulation units outstanding 14,713 80,837
======= ======
Net asset value per unit $ 7.00 $ 10.41
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
----------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
-------------------------------- -------------------- --------------------------------------
New Limited-
Asset Index Money nternational America Equity Term
1998 Growth Manager 500 Market Bond Stock Growth Income Bond
Investment income:
Reinvested dividends and capital
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
gain distributions $134,152 $ 81,607 $ 16,747 $ 7,255 $ 24,094 $ 9,936 $ 12,924 $ 33,137 $ 4,027
Mortality risk charges and expenses
(Note 4) (14,853) (9,085) (6,390) (1,955) (5,317) (8,905) (8,365) (8,866) (970)
--------- -------- -------- -------- -------- -------- -------- -------- -----
Net investment income
(expense) 119,299 72,522 10,357 5,300 18,777 1,031 4,559 24,271 3,057
-------- ------- ------- ------ ------- ------ ------ ------- -----
Gains (losses) on investments:
Net realized gains (losses) 38,962 14,474 5,584 - 2,489 19,915 7,525 82,003 53
Net change in unrealized gains
(losses) 204,637 (5,205) 93,043 - (3,266) 60,436 82,575 (67,065) 815
-------- -------- ------- -- -------- ------- ------- --------- ---
Net gains (losses) on
investments 243,599 9,269 98,627 - (777) 80,351 90,100 14,938 868
-------- ------ ------- -- ------ ------- ------- ------- ---
Increase in net assets from operations $362,898 $ 81,791 $108,984 $ 5,300 $ 18,000 $ 81,382 $ 94,659 $ 39,209 $ 3,925
========= ========= ========= ======== ========= ======== ========= ========= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- -----------------------------------------------------------------------------------------------------------------------------
Series V
-----------------------------------------------------------------------------------------
Fidelity Scudder
-------------------------------------------------- ----------------------------------
Asset
Manager: Equity Index Global Growth &
1998 (continued) Contrafund Growth Income 500 InternationaDiscovery Income
Investment income:
Reinvested dividends and capital
<S> <C> <C> <C> <C> <C> <C> <C>
gain distributions $ 3,089,619 $ 5,406,960 $ 3,813,349 $ 458,398 $ 4,144,357 $ 65,852 $ 799,685
Mortality risk charges and expenses
(Note 4) (710,977) (607,791) (796,919) (237,927) (417,876) (39,278) (142,819)
---------- ---------- ---------- ---------- ---------- --------- ----------
Net investment income
(expense) 2,378,642 4,799,169 3,016,430 220,471 3,726,481 26,574 656,866
---------- ---------- ---------- -------- ---------- ------- --------
Gains (losses) on investments:
Net realized gains (losses) 1,456,092 870,446 1,100,664 299,643 1,053,943 68,569 65,051
Net change in unrealized gains
(losses) 11,277,313 1,704,498 2,139,634 4,244,236 (22,111) 251,048 (504,207)
----------- ---------- ---------- ---------- --------- -------- ----------
Net gains (losses) on
investments 12,733,405 2,574,944 3,240,298 4,543,879 1,031,832 319,617 (439,156)
----------- ---------- ---------- ---------- ---------- -------- ----------
Increase in net assets from
operations $15,112,047 $ 7,374,113 $ 6,256,728 $ 4,764,350 $ 4,758,313 $346,191 $ 217,710
=========== ============ =========== ============ ============ ========= ==========
------------------------
T. Rowe Price
------------------------
New Personal
America Strategy
Growth Balanced
Investment income:
Reinvested dividends and capital
<S> <C> <C>
gain distributions $ 818,675 $ 3,316,357
Mortality risk charges and expense
(Note 4) (420,616) (571,457)
---------- ---------
Net investment income
(expense) 398,059 2,744,900
-------- ---------
Gains (losses) on investments:
Net realized gains (losses) 474,432 644,781
Net change in unrealized gains
(losses) 4,639,282 2,185,079
---------- ---------
Net gains (losses) on
investments 5,113,714 2,829,860
---------- ---------
Increase in net assets from
operations $5,511,773 $ 5,574,760
========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
----------------------------------------------------------------------------------------
T. Rowe Price Alger Federated
------------------------------------- ------------------------- ----------------------
Limited- American Prime U.S.
Equity Term Small American Money Government
1998 (continued) Income International Bond Capitalization Growth Fund II Securities
Investment income:
Reinvested dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C>
distributions $4,075,310 $ 642,256 $ 1,259,311 $3,823,721 $ 5,897,690 $1,451,901 $ 407,214
Mortality risk charges and expenses (Note 4) (922,963) (470,596) (259,639) (347,043) (460,057) (366,184) (334,326)
---------- ---------- --------- ---------- ---------- ---------- ---------
Net investment income (expense) 3,152,347 171,660 999,672 3,476,678 5,437,633 1,085,717 72,888
---------- -------- -------- ---------- ---------- ---------- ------
Gains (losses) on investments:
Net realized gains (losses) 1,926,140 1,337,167 65,242 (255,903) 1,971,427 - 696,005
Net change in unrealized gains (losses) 338,327 3,586,446 187,101 829,458 7,452,117 - 941,440
-------- ---------- -------- -------- ---------- -- -------
Net gains (losses) on investments 2,264,467 4,923,613 252,343 573,555 9,423,544 - 1,637,445
---------- ---------- -------- -------- ---------- -- ---------
Increase in net assets from operations $ 5,416,814 $5,095,273 $ 1,252,015 $4,050,233 $ 14,861,177 $1,085,717 $1,710,333
============ =========== ============ =========== ============= ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
Series V
Morgan Stanley
MFS Pioneer Dean Witter
Real Emerging
Global Capital High Emerging Estate Capital Markets Fixed
1998 (continued) Governments Opportunities Income Research Growth Growth Growth Equity Income
Investment income:
Reinvested dividends and capital
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
gain distributions $ 179,273 $ 34,126 1,714,934 1,077,367 $ 489,487 $ 298,938 $ 501,544 $ 531 34,976
Mortality risk charges and expenses
(Note 4) (181,446) (119,210) (295,312) (582,668) (678,228) (72,153) (83,985) (425) (2,619)
--------- --------- --------- --------- ---------- --------- --------- ------ -------
Net investment income
(expense) (2,173) (85,084) 1,419,622 494,699 (188,741) 226,785 417,559 106 32,357
------- ------------------ -------- ---------- -------- -------- ---- ------
Gains (losses) on investments:
Net realized gains (losses) 103,089 49,710 479,122 2,087,913 4,564,396 (29,215) (5,064) (2,895) 1,380
Net change in unrealized gains
(losses) 895,000 2,151,845 (1,990,063) 6,571,348 11,325,013 (1,537,728) (1,004,636) 4,199 (18,255)
-------- ---------- ----------- ---------- ----------- ------------ ----------- ------ --------
Net gains (losses) on
investments 998,089 2,201,555 (1,510,941) 8,659,261 15,889,409 (1,566,943) (1,009,700) 1,304 (16,875)
------- ---------- ---------------------- ----------- ------------ ----------- ------ --------
Increase (decrease) in net assets from
operations $ 995,916 $ 2,116,471 $ (91,319) 9,153,960 15,700,668 $(1,340,158) $ (592,141) 1,410 15,482
========== =========== ========= ====================== ============= ========== ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
--------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
---------------------------------------------- ---------------------------------------
New Limited
Asset Index Money America Equity Term
1997 Growth Manager 500 Market Bond International Growth Income Bond
Investment income:
Reinvested dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
distributions $28,533 $ 61,409 $ 11,589 $ 5,069 $ 20,453 $ 12,584 $ 1,295 $ 30,857 $ 4,337
Mortality risk charges and expenses (Note 4) (12,173) (8,113) (5,522) (1,403) (4,463) (9,225) (7,081) (7,422) (1,027)
-------- -------- -------- -------- -------- -------- -------- -------- -------
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.
47
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
Series V
Fidelity Scudder T. Rowe Price
Asset New Personal
Manager: Equity Index Global Growth & America Strategy
1997 (continued) Contrafund Growth Income 500 International Discovery Income Growth Balanced
Investment income:
Reinvested dividends and capital
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
gain distributions $ 833,552 $ 37,343 $ 3,268,324 $ - $ 415,666 $ - $ 36,878 $ 69,250 $ 1,697,950
Mortality risk charges and expenses
(Note 4) (464,692) (423,138) (531,924) (33,089) (276,084) (10,709) (25,263) (272,898) (383,372)
--------- ---------- ---------- -------- ------------------- -------- ---------- --------
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 investments 7,339,972 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
operations $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.
48
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (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
Investment income:
Reinvested dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C>
distributions $3,148,705 $ 780,803 $ 591,649 $ 838,472 $ 220,950 $ 1,163,294 $ 579,257
Mortality risk charges and expenses (Note 4) (557,127) (378,701) (119,951) (279,259) (304,181) (290,032) (199,164)
---------- ---------- --------- ---------- --------- -------- ---------
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 investments 8,401,086 (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.
49
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
Series V
MFS Pioneer
Global Capital High Emerging Estate Capital
1997 (continued) Governments Opportunities Income Research Growth Growth Growth
Investment income:
Reinvested dividends and capital gain
<S> <C> <C> <C> <C> <C> <C> <C>
distributions $229,599 $ 466,662 $ - $ - $ - $ 73,322 $ 3,234
Mortality risk charges and expenses (Note 4) (132,850) (12,625) (205,937) (369,367) (475,969) (17,753) (14,831)
---------- --------- ---------- ---------- --------- -------- --------
Net investment income (expense) 96,749 454,037 (205,937) (369,367) (475,969) 55,569 (11,597)
------- -------- ---------- ---------- --------- ------- --------
Gains (losses) on investments:
Net realized gains 20,167 4,244 1,241,723 1,073,282 1,843,154 48,987 1,476
Net change in unrealized gains (losses) (302,708) (257,490) 1,013,285 4,051,206 5,506,481 236,651 43,126
---------- ---------- ---------- ---------- ---------- -------- ------
Net gains (losses) on investments (282,541) (253,246) 2,255,008 5,124,488 7,349,635 285,638 44,602
---------- ---------- ---------- ---------- ---------- -------- ------
Increase (decrease) in net assets from operations $(185,792) $ 200,791 $ 2,049,071 $ 4,755,121 $ 6,873,666 $341,207 $ 33,005
=========== ========== ============ =========== =========== ======== ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
50
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
------------------------------ -------------------- ------------------------------------
New Limited
Asset Index Money Inter- America Equity Term
1998 Growth Manager 500 Market Bond national Growth Income Bond
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income (expense) $ 119,299 $ 72,522 $ 10,357 $ 5,300 $ 18,777 $ 1,031 $ 4,559 $ 24,271 $ 3,057
Net realized gains (losses) 38,962 14,474 5,584 - 2,489 19,915 7,525 82,003 53
Net change in unrealized gains (losses) 204,637 (5,205) 93,043 - (3,266) 60,436 82,575 (67,065) 815
-------- -------- ------- -- -------- ------- ------- --------- ---
362,898 81,791 108,984 5,300 18,000 81,382 94,659 39,209 3,925
-------- ------- -------- ------ ------- ------- ------- ------- -----
From policyowner transactions:
Purchases 272,659 23,896 1,749 654,064 239,999 130,619 18,550 326,456 12,419
Withdrawals (324,590) (92,144) (36,580) (664,205) (110,837) (139,784) (13,168) (297,634) (3,825)
------------------- --------- -------------------- ----------------- ------------ -----
(51,931) (68,248) (34,831) (10,141) 129,162 (9,165) 5,382 28,822 8,594
------------------ --------- ----------------- -------- ------ ------- -----
Increase (decrease) in net assets 310,967 13,543 74,153 (4,841) 147,162 72,217 100,041 68,031 12,519
Net assets, beginning of year 945,705 638,955 425,808 118,421 324,479 564,996 553,536 596,540 63,297
-------- -------- -------- -------- -------- -------- -------- -------- ------
Net assets, end of year $1,256,672 $652,498 $499,961 $ 113,580 $ 471,641 $ 637,213 $653,577 $ 664,571 $ 75,816
============================= ==================== =====================================
Accumulation unit purchases 12,597 1,525 73 562,756 18,429 9,726 856 15,120 1,029
Accumulation unit withdrawals (14,262) (5,769) (1,485) (570,692) (8,626) (10,301) (581) (14,072) (319)
--------- -------- -------- ---------- -------- --------- ------ --------- -----
Net increase (decrease) in units outstanding (1,665) (4,244) (1,412) (7,936) 9,803 (575) 275 1,048 710
Units outstanding, beginning of year 49,383 42,522 19,599 104,050 25,593 45,421 26,178 29,193 5,363
------- ------- ------- -------- ------- ------- ------- ------- -----
Units outstanding, end of year 47,718 38,278 18,187 96,114 35,396 44,846 26,453 30,241 6,073
======= ======= ======= ======= ======= ======= ======= ======= =====
The accompanying notes are an integral part of these financial statements.
</TABLE>
51
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
Series V
Fidelity Scudder
Asset
Manager: Equity Index Global Growth &
1998 (continued) Contrafund Growth Income 500 InternationaDiscovery Income
From operations:
Net investment income
<S> <C> <C> <C> <C> <C> <C> <C>
(expense) $ 2,378,642 $ 4,799,169 $ 3,016,430 $ 220,471 $ 3,726,481 $ 26,574 $ 656,866
Net realized gains (losses) 1,456,092 870,446 1,100,664 299,643 1,053,943 68,569 65,051
Net change in unrealized gains 11,277,313 1,704,498 2,139,634 4,244,236 (22,111) 251,048 (504,207)
----------- ---------- ---------- ---------- ----------------- ----------
15,112,047 7,374,113 6,256,728 4,764,350 4,758,313 346,191 217,710
----------- ---------- ---------- ---------- ---------- -------- --------
From policyowner transactions:
Purchases 8,442,500 5,710,428 13,239,127 19,837,426 11,056,886 2,066,128 8,142,779
Withdrawals (5,208,496) (3,578,049)(5,968,305) (2,168,188) (9,708,314) (696,644) (1,476,579) )
----------------------------------------------- ---------------------------------- -
3,234,004 2,132,379 7,270,822 17,669,238 1,348,572 1,369,484 6,666,200
---------- ---------- ---------- ----------- ---------- ---------- ----------
Increase (decrease) in
net assets 18,346,051 9,506,492 13,527,550 22,433,588 6,106,885 1,715,675 6,883,910
Net assets, beginning of year 51,636,492 45,351,872 58,464,437 10,087,352 31,101,079 2,228,106 6,846,075
----------- ----------- ---------------------- ----------- ---------- ----------
Net assets, end of year $69,982,543 $54,858,364 $71,991,987$32,520,940 $37,207,964 $3,943,781$13,729,985 $
=============================================== ==================================
Accumulation unit purchases 477,393 358,922 851,493 1,509,166 786,536 167,565 641,880
Accumulation unit withdrawals (296,210) (231,851) (383,154) (187,979) (722,194) (61,675) (127,568)
---------- ---------- ---------- ---------- ---------- --------- ----------
Net increase (decrease) in units
outstanding 181,183 127,071 468,339 1,321,187 64,342 105,890 514,312
Units outstanding,
beginning of year 2,992,115 2,748,520 3,528,096 829,118 2,391,655 194,110 561,594
---------- ---------- ---------- -------- ---------- -------- --------
Units outstanding, end of year 3,173,298 2,875,591 3,996,435 2,150,305 2,455,997 300,000 1,075,906
========== ========== ========== ========== ========== ======== ==========
T. Rowe Price
New Personal Limited-
America Strategy Equity Term
Growth Balanced Income International Bond
<C> <C> <C> <C>
(expense) $ 398,059 $ 2,744,900$ 3,152,347 $ 171,660 $ 999,672
Net realized gains (losses) 474,432 644,781 1,926,140 1,337,167 65,242
Net change in unrealized gain 4,639,282 2,185,079 338,327 3,586,446 187,101
---------- ---------- -------- ---------- -------
5,511,773 5,574,760 5,416,814 5,095,273 1,252,015
---------- ---------- ---------- ---------- ---------
From policyowner transactions:
Purchases 7,744,835 7,426,015 15,460,179 11,413,923 14,463,748
Withdrawals (1,690,710)(2,819,625) (6,119,408)(10,116,157) (2,624,745
---------------------------------------------------------
6,054,125 4,606,390 9,340,771 1,297,766 11,839,003
---------- ---------- ---------- ---------- ----------
Increase (decrease) in
net assets 11,565,898 10,181,150 14,757,585 6,393,039 13,091,018
Net assets, beginning of year 29,666,686 41,428,123 67,084,455 34,855,396 14,536,276
----------- ---------------------- ----------- ----------
Net assets, end of year 41,232,584 $51,609,273$81,842,040 $ 41,248,435$27,627,294
==========================================================
Accumulation unit purchases 499,770 524,423 948,617 901,060 1,291,144
Accumulation unit withdrawals (184,848) (227,284) (378,920) (791,799) (247,015)
---------- ---------- ---------- ---------- ---------
Net increase (decrease) in unit
outstanding 314,922 297,139 569,697 109,261 1,044,129
Units outstanding,
beginning of year 1,599,824 2,792,934 3,837,388 2,857,269 1,302,580
---------- ---------- ---------- ---------- ---------
Units outstanding, end of year 1,914,746 3,090,073 4,407,085 2,966,530 2,346,709
========= ========= ========== ========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
Series V
Alger Federated MFS
American Prime U.S.
Small American Money Government Global Capital High Emerging
1998 (continued) CapitalizatioGrowth Fund II Securities Governments OpportunitiesIncome Research Growth
From operations:
Net investment income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(expense) $ 3,476,678 $ 5,437,633 $ 1,085,717 $ 72,888 $ (2,173) $ (85,084)$ 1,419,622 $ 494,699 $ (188,741)
Net realized gains
(loss) (255,903) 1,971,427 - 696,005 103,089 49,710 479,122 2,087,913 4,564,396
Net change in unrealized
gains (losses) 829,458 7,452,117 - 941,440 895,000 2,151,845 (1,990,063)6,571,348 11,325,013
-------- ---------- -- -------- -------- ---------- --------------------- -----------
4,050,233 14,861,177 1,085,717 1,710,333 995,916 2,116,471 (91,319)9,153,960 15,700,668
---------- ----------- ---------- ---------- -------- ---------- ------------------ -----------
From policyowner transactions:
Purchases 4,518,346 9,530,357 86,150,077 14,895,491 3,184,647 11,602,172 25,681,655 10,044,190 24,074,623
Withdrawals (3,014,435) (6,812,535) (69,514,719) (7,058,231) (1,746,557) (318,230)(22,507,105)(6,476,665) (20,466,865)
------------------------------------------------- ------------ ----------------------------------------------
1,503,911 2,717,822 16,635,358 7,837,260 1,438,090 11,283,942 3,174,550 3,567,525 3,607,758
---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------
Increase (decrease) in
net assets 5,554,144 17,578,999 17,721,075 9,547,593 2,434,006 13,400,413 3,083,231 12,721,485 19,308,426
Net assets, beginning
of year 27,677,690 31,156,165 21,386,283 21,301,847 13,397,416 3,621,584 22,415,278 41,154,486 46,926,255
---------------------- ----------- ----------- ----------- ---------- ----------- ----------- -----------
Net assets, end
of year $33,231,834 $48,735,164 $39,107,358 $30,849,440 $15,831,422 $17,021,997$25,498,509 $53,875,971$ 66,234,681
======================= ======================== ===========================================================
Accumulation unit
purchase 345,456 522,470 77,323,685 1,254,460 315,249 857,379 1,964,939 540,416 1,345,849
Accumulation unit
withdrawal (228,697) (376,025) (62,393,332) (591,558) (173,297) (31,712) (1,691,870) (338,022) (1,152,483)
---------- ----------------------- ---------- ---------- --------------------- ---------- ------------
Net increase (decrease)
in units
outstanding 116,759 146,445 14,930,353 662,902 141,952 825,667 273,069 202,394 193,366
Units outstanding,
beginning of year 2,021,476 1,918,481 19,485,024 1,824,790 1,302,843 292,197 1,729,635 2,608,735 2,890,806
---------- ---------- ----------- ---------- ---------- -------- ---------- ---------- ----------
Units outstanding, end
of year 2,138,235 2,064,926 34,415,377 2,487,692 1,444,795 1,117,864 2,002,704 2,811,129 3,084,172
========== ========== =========== ========== ========== ========== ========== ========== ==========
Pioneer Dean Witter
Real Emerging
Estate Capital Markets Fixed
Growth Growth Equity Income
<C> <C> <C> <C>
Increase (decrease) in $ 226,785 $ 417,559 $ 106 $ 32,357
net assets
(29,215) (5,064) (2,895) 1,380
Net assets, beginning
of year (1,537,728)(1,004,636) 4,199 (18,255)
----------- ------------ ------ --------
(1,340,158) (592,141) 1,410 15,482
------------ ---------- ------ ------
Purchases 4,652,337 4,528,117 109,733 867,518
Withdrawals (2,194,334) (432,785) (8,126) (41,557)
------------ ---------- ----------------
2,458,003 4,095,332 101,607 825,961
---------- ---------- -------- -------
Increase (decrease) in
net assets 1,117,845 3,503,191 103,017 841,443
Net assets, beginning
of year 5,241,177 4,513,971 - -
---------- ---------- -- -
Net assets, end
of year $ 6,359,022 $ 8,017,162 $103,017 $841,443
================================= ========
Accumulation unit
purchase 421,925 378,915 15,973 85,024
Accumulation unit
withdrawal (199,793) (40,182) (1,260) (4,187)
---------- --------- -------- -------
Net increase (decrease)
in units
outstanding 222,132 338,733 # 14,713 80,837
Units outstanding,
beginning of year 428,572 383,956 - -
-------- -------- -- -
Units outstanding, end
of year 650,704 722,689 14,713 80,837
======== ======== ======= ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series I
------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
----------------------------- --------------------- ------------------------------------
New Limited
Asset Index Money Inter- America Equity Term
1997 Growth Manager 500 Market Bond national Growth Income Bond
From operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income (expense) $ 16,360 $ 53,296 $ 6,067 $ 3,666 $ 15,990 $ 3,359 $ (5,786) $ 23,435 $ 3,310
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
------- ------- ------- -- ------ ---------------- ------- ---
168,167 99,733 105,832 3,666 23,316 (463) 91,985 126,284 3,468
-------- ------- -------- ------ ------- ------------- -------- -----
From policyowner transactions:
Purchases 196,856 84,933 6,287 635,356 102,548 240,931 31,103 101,705 4,401
Withdrawals (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 (decrease) in net assets 82,650 136,735 33,202 95,616 (79,399) (215,864) 56,388 49,076 (27,091)
Net assets, beginning of year 863,055 502,220 392,606 22,805 403,878 780,860 497,148 547,464 90,388
-------- -------- -------- ------- -------- -------- -------- -------- ------
Net assets, end of year $ 945,705 $638,955 $425,808 $ 118,421 $ 324,479 $ 564,996 $553,536 $ 596,540 $ 63,297
========= ========== ======== ==================== =====================================
Accumulation unit purchases 11,390 6,364 316 558,453 8,629 18,532 1,743 5,558 385
Accumulation unit withdrawals (16,881) (3,599) (4,351) (475,143) (17,294) (36,915) (3,634) (10,394) (3,081)
--------- -------- ------- ---------- --------- --------- -------- --------- ------
Net increase (decrease)
in units outstanding (5,491) 2,765 (4,035) 83,310 (8,665) (18,383) (1,891) (4,836) (2,696)
Units outstanding, beginning of year 54,874 39,757 23,634 20,740 34,258 63,804 28,069 34,029 8,059
------- ------- ------- ------- ------- ------- ------- ------- -----
Units outstanding, end of year 49,383 42,522 19,599 104,050 25,593 45,421 26,178 29,193 5,363
======= ======= ======= ======== ======= ======= ======= ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
-------------------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
---------------------------------------------- --------------------------------- --------------------
Asset New Personal
Manager: Equity Index Global Growth & America Strategy
1997 (continued) Contrafund Growth Income 500 InternationDiscovery Income Growth Balanced
From operations:
Net investment income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(expenses) $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:
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
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 year25,116,473 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
========== ========== ========== ======== ========== ======== ======== ========== ==========
----------------------------------
----------------------------------
Limited -
Equity Term
Income International Bond
<C> <C> <C>
$ 393,627 $ 148,852 $ 147,574
139,631 211,865 (8,394)
1,630,152 998,543 7,327
---------- -------- -----
2,163,410 1,359,260 146,507
---------- ---------- -------
23,732,206 20,749,014 6,350,319
(1,754,680) (3,224,170) (395,866)
------------------------ ---------
21,977,526 17,524,844 5,954,453
---------------------- ---------
24,140,936 18,884,104 6,100,960
1,417,800 1,916,743 580,948
---------- ---------- -------
$25,558,736$20,800,847 $6,681,908
=================================
1,892,614 1,853,967 616,757
(153,310) (298,582) (41,338)
- ---------- ---------- --------
1,739,304 1,555,385 575,419
121,994 181,399 56,018
-------- -------- ------
1,861,298 1,736,784 631,437
========== ========== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
-----------------------------------------------------------------------------------
T. Rowe Price Alger Federated
----------------------------------- ----------------------- ----------------------
Limited- American Prime U.S.
Equity Term Small American Money Government
1997 (continued) Income International Bond CapitalizationGrowth 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:
Purchases 31,761,358 20,600,651 8,192,864 11,476,371 11,315,296 74,848,619 9,443,646
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
========== ========== ========== ========== ========== =========== ==========
------------------------------------------------
MFS
---------------------------------------------
World High Emerging
Government Income Research Growth
<C> <C> <C> <C>
Net investment income (expense) $ (59,094) $ 469,197 $ 161,107 $ 55,790
Net realized gains (losses) (67,457) 152,606 214,289 774,322
Net change in unrealized gains (losses) 391,014 75,136 1,023,212 (182,142)
-------- ------- ---------- ---------
264,463 696,939 1,398,608 647,970
-------- -------- ---------- -------
From policyowner transactions:
Purchases 9,995,282 12,970,271 17,476,610 33,768,862
Withdrawals (2,208,387)(4,658,885)(1,822,076)(10,862,876)
---------------------------------------------
7,786,895 8,311,386 15,654,534 22,905,986
---------- ---------- ---------------------
Increase (decrease) in net assets 8,051,358 9,008,325 17,053,142 23,553,956
Net assets, beginning of year 577,616 913,288 1,287,154 1,439,514
-------- -------- ---------- ---------
Net assets, end of year $8,628,974 $9,921,613 $18,340,296$24,993,470
============================================
Accumulation unit purchases 987,874 1,205,897 1,423,099 2,557,929
Accumulation unit withdrawals (224,581) (433,914) (158,948) (827,244)
---------- ---------- ---------- ---------
Net increase (decrease) in units outstanding 763,293 771,983 1,264,151 1,730,685
Units outstanding, beginning of year 56,393 87,378 117,165 123,460
------- ------- -------- -------
Units outstanding, end of year 819,686 859,361 1,381,316 1,854,145
======== ======== ========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Series V
-----------------------------------------------------------------------------------
MFS Pioneer
----------------------------------------------------------- ----------------------
Real
Global Capital High Emerging Estate Capital
1997 (continued) Governments Opportunities Income Research Growth Growth Growth
From operations:
<S> <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)
Net realized gains 20,167 4,244 1,241,723 1,073,282 1,843,154 48,987 1,476
Net change in unrealized gains (losses) (302,708) (257,490) 1,013,285 4,051,206 5,506,481 236,651 43,126
--------- ----------- ---------- ---------- ---------- -------- ------
(185,792) 200,791 2,049,071 4,755,121 6,873,666 341,207 33,005
--------- --------- ---------- ---------- ---------- -------- ------
From policyowner transactions:
Purchases 5,546,808 3,434,948 24,758,400 22,797,803 38,214,835 5,315,096 4,483,329
Withdrawals (592,574) (14,155) (14,313,806)(4,738,734)(23,155,716) (415,126) (2,363)
---------- --------- ------------------------------------ ---------- -------
4,954,234 3,420,793 10,444,594 18,059,069 15,059,119 4,899,970 4,480,966
---------- ---------- ----------- ---------------------- ---------- ---------
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
Net assets, beginning of year 8,628,974 - 9,921,613 18,340,296 24,993,470 - -
---------- -- ---------- ---------------------- -- -
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
=========================================================== =====================
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 integral part of these financial statements.
57
<PAGE>
UNITED OF OMAHA SEPARATE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
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 sub-accounts, 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
Morgan Stanley Dean Witter
Emerging Markets Equity
Fixed Income
58
<PAGE>
T. Rowe Price MFS
New America Growth Global Governments
Personal Strategy Balanced Capital Opportunities
Equity Income High Income
International Research
Limited-Term Bond Emerging Growth
Pioneer
Real Estate Growth
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. Charges for investment advisory fees and
other expenses are reflected in the net asset values of the mutual fund
portfolios.
Federal Income Taxes - Operations of the Separate Account are included in
the federal income tax return of United of Omaha, which is taxed as a life
insurance company under the Internal Revenue Code. Under existing federal
income tax law, no taxes are payable on the investment income or on the
capital gains of the Separate Accounts.
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 sub-account. United of Omaha
guarantees that the mortality and expense charge shall not increase. The
percentages are:
Series I 1.25%
Series V 1.00% - 1.40%
United of Omaha may incur premium taxes relating to the policies. United of
Omaha will deduct a charge of up to 3.5% of purchase payments 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.
59
<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.
One of the variable annuity products includes a feature which provides the
policyowner an option to purchase an 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.
60
<PAGE>
5. NET ASSETS
Total net assets (policyowners' cumulative investment accounts) consist of
the following at December 31, 1998:
<TABLE>
<CAPTION>
Series I
-------------------------------------------------------------------------------------------------
Fidelity Scudder T. Rowe Price
------------------------------- --------------------- -----------------------------------------
New Limited-
Asset Index Money America Equity Term
Growth Manager 500 Market Bond InternationGrowth Income Bond
<S> <C> <C> <C> <C> <C> <C> <C>
Shares purchased $1,872,080 $ 798,438 $ 667,798 $5,047,964$1,350,081 $1,834,363$ 810,337 $1,565,124 $ 355,779
Shares sold (1,365,765) (456,760) (524,219) (4,962,444) (978,652) (1,443,680)(528,595)(1,257,315) (304,185)
Dividends and capital
gain distributions 198,494 165,560 37,851 28,060 87,077 29,698 20,723 87,817 25,147
Net realized gains (losses) 230,765 57,537 107,999 - 4,912 156,252 138,055 221,104 (2,272)
Change in unrealized gains
(losses) 321,098 87,723 210,532 - 8,223 60,580 213,057 47,841 1,347
-------- ------- -------- -- ------ ------- -------- ------- -----
Net assets $1,256,672 $ 652,498 $ 499,961 $ 113,580 $ 471,641 $ 637,213 $ 653,577 $ 664,571 $ 75,816
========== ========= ============ ======== ========= ========== ======== ============ ========
Series V
------------------------------------------------------------------------------------
Fidelity Scudder
----------------------------------------------------------------------------------
Asset
Manager: Equity Index Global Growth &
Contrafund Growth Income 500 InternationaDiscovery Income
Shares purchased $61,553,421$44,479,805 $67,654,945 $29,694,658 $46,017,448 $4,529,632 $14,793,733
Shares sold (17,801,674)(6,821,159)(14,727,073)(2,372,009) (16,228,084) (974,055)(1,608,439)
Dividends and capital gain distributions 3,261,512 5,886,547 6,495,609 220,471 4,233,076 26,574 693,744
Net realized gains (losses) 2,939,481 1,255,501 1,826,518 317,030 1,462,530 89,899 85,127
Change in unrealized gains (losses) 20,029,803 10,057,670 10,741,988 4,660,790 1,722,994 271,731 (234,180)
------------ ---------- ----------- ------------------------ -------- ---------
Net assets $69,982,543 $54,858,364 $71,991,987 $32,520,940 $37,207,964 $3,943,781 $13,729,985
=============================================== ============= ========= ============
</TABLE>
61
<PAGE>
5. NET ASSETS (continued)
<TABLE>
<CAPTION>
Series V
T. Rowe Price Alger Federated
New Personal Limited- American Prime U.S.
America Strategy Equity Term Small American Money Government
Growth Balanced Income International Bond CapitalizatioGrowth Fund II Securities
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased $35,386,660 $44,357,574 $72,308,975 $ 54,694,626 $29,598,715 $36,626,175 $39,019,845 $ 263,484,683 $38,321,340
Shares sold (5,297,262) (5,370,200) (9,808,580) (20,635,724) (4,106,105) (9,950,160)(11,407,726) (227,300,564) (11,050,712)
Dividends and capital gain
distributions 604,089 5,212,229 6,848,633 1,232,264 1,782,061 4,347,835 5,868,464 2,923,260 1,049,066
Net realized gains
(losses) 972,793 819,004 2,455,758 2,301,245 36,866 (22,962) 2,547,899 (21) 686,014
Change in unrealized gains
(losses) 9,566,304 6,590,666 10,037,254 3,656,024 315,757 2,230,946 12,706,682 - 1,843,732
---------------------------------------------------------------------- ----------- -- ----------
Net assets $41,232,584 $51,609,273 $81,842,040 $ 41,248,435 $27,627,294 $33,231,834 $48,735,164 $ 39,107,358 $30,849,440
================================================ =========== =========== =========== ============== ===========
MFS
World High Emerging
Government Income Research Growth
<C> <C> <C>
$10,649,322 $13,958,827 $18,734,529$35,284,231
(2,352,776 (4,821,690) (1,931,478)(11,152,213)
(65,793) 155,504 215,116 780,423
349,053 69,101 1,046,909 (165,204)
-------- ------- ---------- ---------
$ 8,579,806 $ 9,361,742 $18,065,076$24,747,237
======================= ======================
Series V
Morgan Stanley
MFS Pioneer Dean Witter
Emerging
Global Capital High Emerging Real Capital Markets Fixed
Governments OpportunitiesIncome Research Growth Estate Growth Equity Income
Shares purchased $ 19,380,777$ 15,037,12 $ 64,398,882$ 51,576,522$ 97,573,689 $ 9,967,433$ 9,011,446 $ 109,733$ 867,518
Shares sold (4,824,757) (345,010) (41,848,538)(13,516,244)(55,250,763) (2,627,213) (449,979) (8,126) (41,557)
Dividends and capital gain
distributions 276,594 381,578 1,979,493 769,919 57,492 300,107 420,793 106 32,357
Net realized gains (losses) 57,463 53,954 1,876,349 3,376,311 7,187,973 19,772 (3,588) (2,895) 1,380
Change in unrealized gains
loss) 941,345 1,894,355 (907,677) 11,669,463 16,666,290 (1,301,077) (961,510) 4,199 (18,255)
------- ---------- -------------------- ----------- ------------ ---------- ------ --------
Net assets $ 15,831,422$ 17,021,997 $25,498,509$ 53,875,971$ 66,234,681 $ 6,359,022$ 8,017,162 $ 103,017$ 841,443
</TABLE>
62
<PAGE>
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 April 7, 1998 (File No. 333-18881).
*** Incorporated by Reference to the Registration Statement for United of Omaha
Separate Account C filed on April 16, 1998 (File No. 33-89848).
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Our Directors and senior officers* are:
Directors*
<S> <C> <C>
Foggie, Samuel L. Banking and Finance Industry Executive
Hallett, Carol B. President, Chief Executive Officer; Air Transport
Association of America
Heller, Jeffrey M. President, Chief Operating Officer; Electronic Data Systems
Osborne, Thomas W. Former Head Football Coach, University of Nebraska - Lincoln
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)
Kimberly S. Harm Executive Vice President (Customer Services)
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)
James N. Plato Executive Vice President (Individual Financial Services)
Tommie D. Thompson Executive Vice President (Corporate Comptroller)
</TABLE>
*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
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
</TABLE>
*Subsidiaries of subsidiaries are indicated by indentations.
Item 27. Number of Policyowners
As of December 31, 1998, there were 3,672 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.
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 principal 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
M. Jane Huerter Secretary and Director
Kimberly S. Harm Director
Brian P. McGinty Director
John L. Maginn Director
James N. Plato Director
William J. Bluvas Vice President, Treasurer
(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,
1998, United of Omaha paid $10,559,128 in total compensation to MOIS; of this
amount MOIS retained $2,996,217 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.
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.
<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 Post-effective Amendment No. 7 to the
Registration Statement to be signed on its behalf, in the City of Omaha and
State of Nebraska, on April 26, 1999.
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. 7 to the Registration Statement has been signed by the following persons on
April 26, 1999 in the capacities and on the duties indicated.
Signatures Title
/s/ John W. Weekly
by__________________________* Chairman of the Board,
John W. Weekly Chief Executive Officer
/s/ John A. Sturgeon
by__________________________* President, Chief Operation Officer, Director
John A. Sturgeon
/s/ Tommie D. Thompson
By__________________________* Executive V.P., Corporate Comptroller
(Principal Financial Officer and
Principal Accounting Officer)
/s/ Kenneth W. Reitz
by__________________________, for and on behalf of
Kenneth W. Reitz
Samuel L. Foggie* Director
Carol B. Hallett* Director
Jeffrey M. Heller* Director
Thomas W. Osborn* Director
Richard J. Sampson* Director
Oscar S. Straus* Director
Michael A. Wayne* Director
* Signed by Kenneth W. Reitz under Powers of Attorney effective January 1, 1999.
<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. 7
and
THE INVESTMENT COMPANY ACT OF 1940, Amendment No. 17
April 26, 1999
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
(9) Opinion and Consent of Counsel.
(10) Consent of Independent Auditors
(13) Schedules of Computation of Performance Data.
(14) Powers of Attorney
Exhibit (9): Opinion and Consent of Counsel
UNITED OF OMAHA LIFE INSURANCE COMPANY
Mutual of Omaha Plaza, 3-Law
Omaha, Nebraska 68175-1008
April 23, 1999
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
Proceedings" in the Registration Statement.
Sincerely,
/s/ Kenneth W. Reitz
Kenneth W. Reitz
First V.P. & Counsel
United of Omaha Life Insurance Company
Exhibit (10): Consent of Independent Auditors
INDEPENDENT AUDITOR'S CONSENT
We consent to the use in this Post-Effective Amendment No. 7 to Registration
Statement No. 33-89848 of United of Omaha Separate Account C of our report dated
April 23, 1999 on the financial statements of United of Omaha Separate Account C
and our report dated March 4, 1999 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" in such Statement of
Additional Information.
DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 23, 1999
Exhibit (13): Schedules of Computations of Performance Data
Alger American Growth
12/1998
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
5/98 7.9500000000 41.91 21.841 136.981976
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 42.76 115.1406864 4923.41575 1000.00000 1000.00000
1 1998 43.50 115.1406864 5008.61986 1.08333 1016.22256 1.37503 1015.93086
2 1998 46.92 115.1406864 5402.40101 1.10091 1095.01777 1.39694 1094.40711
3 1998 49.67 115.1406864 5719.03790 1.18627 1158.01093 1.50485 1157.04590
4 1998 50.23 115.1406864 5783.51668 1.25451 1169.81231 1.59098 1168.49993
5 1998 41.91 136.9819763 5740.91463 1.26730 1159.92804 1.60673 1158.28590
6 1998 45.66 136.9819763 6254.59704 1.25659 1262.45886 1.59268 1260.33369
7 1998 46.65 136.9819763 6390.20919 1.36766 1288.46382 1.73300 1285.92724
8 1998 38.66 136.9819763 5295.72320 1.39584 1066.38576 1.76819 1063.91127
9 1998 42.26 136.9819763 5788.85832 1.15525 1164.53182 1.46291 1161.51925
10 1998 44.21 136.9819763 6055.97317 1.26158 1217.00515 1.59713 1213.51802
11 1998 47.46 136.9819763 6501.16459 1.31842 1305.15216 1.66863 1301.05847
12 1998 53.22 136.9819763 7290.18078 1.41391 1462.13851 1.78900 1457.17291
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 48.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1462.14 1375.14
TOTAL RETURN 46.21% 37.51%
WITH DEATH BENEFIT CHARGE
ERV 1457.17 1370.47
TOTAL RETURN 45.72% 37.05%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 42.76 115.1406864 4923.41575 1000.00000 1000.00000
1 1998 43.50 115.1406864 5008.61986 1.08333 1016.22256 1.37503 1015.93086
2 1998 46.92 115.1406864 5402.40101 1.10091 1095.01777 1.39694 1094.40711
3 1998 49.67 115.1406864 5719.03790 1.18627 1158.01093 1.50485 1157.04590
4 1998 50.23 115.1406864 5783.51668 1.25451 1169.81231 1.59098 1168.49993
5 1998 41.91 136.9819763 5740.91463 1.26730 1159.92804 1.60673 1158.28590
6 1998 45.66 136.9819763 6254.59704 1.25659 1262.45886 1.59268 1260.33369
7 1998 46.65 136.9819763 6390.20919 1.36766 1288.46382 1.73300 1285.92724
8 1998 38.66 136.9819763 5295.72320 1.39584 1066.38576 1.76819 1063.91127
9 1998 42.26 136.9819763 5788.85832 1.15525 1164.53182 1.46291 1161.51925
10 1998 44.21 136.9819763 6055.97317 1.26158 1217.00515 1.59713 1213.51802
11 1998 47.46 136.9819763 6501.16459 1.31842 1305.15216 1.66863 1301.05847
12 1998 53.22 136.9819763 7290.18078 1.41391 1462.13851 1.78900 1457.17291
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 48.07%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1462.14 1375.14
TOTAL RETURN 46.21% 37.51%
WITH DEATH BENEFIT CHARGE
ERV 1457.17 1370.47
TOTAL RETURN 45.72% 37.05%
<TABLE>
c
Return for 3 Years
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 1995 31.16 110.8533915 3454.19168 1000.00000 1000.00000
1 1996 32.17 110.8533915 3566.15361 1.08333 1031.33002 1.37503 1031.03832
2 1996 33.26 110.8533915 3686.98380 1.11727 1065.15678 1.41771 1064.55476
3 1996 32.70 110.8533915 3624.90590 1.15392 1046.06877 1.46380 1045.16701
4 1996 33.53 110.8533915 3716.91422 1.13324 1071.48712 1.43714 1070.25857
5 1996 33.06 114.0494069 3770.47339 1.16078 1085.76603 1.47164 1084.20891
6 1996 32.25 114.0494069 3678.09337 1.17625 1057.98753 1.49082 1056.15398
7 1996 29.89 114.0494069 3408.93677 1.14615 979.41965 1.45225 977.41419
8 1996 31.14 114.0494069 3551.49853 1.06104 1019.31795 1.34398 1016.94568
9 1996 33.15 114.0494069 3780.73784 1.10426 1084.00781 1.39833 1081.18835
10 1996 33.47 114.0494069 3817.23365 1.17434 1093.29750 1.48667 1090.13849
11 1996 35.37 114.0494069 4033.92752 1.18441 1154.17659 1.49898 1150.52368
12 1996 34.33 114.0494069 3915.31614 1.25036 1118.98946 1.58201 1115.11231
1 1997 36.86 114.0494069 4203.86114 1.21224 1200.24280 1.53332 1195.75884
2 1997 35.51 114.0494069 4049.89444 1.30026 1154.98356 1.64421 1150.31988
3 1997 34.09 114.0494069 3887.94428 1.25123 1107.54600 1.58173 1102.73832
4 1997 35.60 114.0494069 4060.15889 1.19984 1155.40437 1.51630 1150.06727
5 1997 37.43 115.1406864 4309.71589 1.25169 1225.16942 1.58138 1219.17459
6 1997 39.53 115.1406864 4551.51133 1.32727 1292.57996 1.67641 1285.89964
7 1997 43.66 115.1406864 5027.04237 1.40029 1426.22533 1.76815 1418.47921
8 1997 41.90 115.1406864 4824.39476 1.54508 1367.18697 1.95046 1359.34774
9 1997 44.28 115.1406864 5098.42960 1.48112 1443.36468 1.86915 1434.69213
10 1997 42.19 115.1406864 4857.78556 1.56365 1373.67475 1.97275 1365.00243
11 1997 42.92 115.1406864 4941.83826 1.48815 1395.95485 1.87692 1386.74371
12 1997 42.76 115.1406864 4923.41575 1.51228 1389.23863 1.90682 1379.66730
1 1998 43.50 115.1406864 5008.61986 1.50501 1411.77564 1.89709 1401.64658
2 1998 46.92 115.1406864 5402.40101 1.52942 1521.24099 1.92731 1509.91769
3 1998 49.67 115.1406864 5719.03790 1.64801 1608.75353 2.07619 1596.33839
4 1998 50.23 115.1406864 5783.51668 1.74282 1625.14846 2.19502 1612.14114
5 1998 41.91 136.9819763 5740.91463 1.76058 1611.41685 2.21675 1598.04918
6 1998 45.66 136.9819763 6254.59704 1.74570 1753.85662 2.19737 1738.84117
7 1998 46.65 136.9819763 6390.20919 1.90001 1789.98372 2.39096 1774.15176
8 1998 38.66 136.9819763 5295.72320 1.93915 1481.46430 2.43952 1467.84359
9 1998 42.26 136.9819763 5788.85832 1.60492 1617.81260 2.01833 1602.51012
10 1998 44.21 136.9819763 6055.97317 1.75263 1690.71057 2.20350 1674.25112
11 1998 47.46 136.9819763 6501.16459 1.83160 1813.16780 2.30215 1795.02783
12 1998 53.22 136.9819763 7290.18078 1.96427 2031.25930 2.46822 2010.41380
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 111.05%
GROSS ANNUAL RETURN = 28.27%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2031.26 1944.93
TOTAL RETURN 103.13% 94.49%
AVERAGE ANNUAL RETURN 26.65% 24.82%
WITH DEATH BENEFIT CHARGE
ERV 2010.41 1924.97
TOTAL RETURN 101.04% 92.50%
AVERAGE ANNUAL RETURN 26.21% 24.40%
<TABLE>
<CAPTION>
Return for 5 Years
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 1993 24.67 101.2120526 2496.90134 1000.00000 1000.00000
1 1994 25.75 101.2120526 2606.21035 1.08333 1042.69453 1.37503 1042.40283
2 1994 25.50 101.2120526 2580.90734 1.12959 1031.44170 1.43334 1030.84908
3 1994 23.64 101.2120526 2392.65292 1.11740 955.08973 1.41745 954.24028
4 1994 23.94 101.2120526 2423.01654 1.03468 966.17548 1.31211 965.03782
5 1994 21.72 109.5119128 2378.59875 1.04669 947.41724 1.32696 946.02016
6 1994 20.68 109.5119128 2264.70636 1.02637 901.02651 1.30081 899.42189
7 1994 21.42 109.5119128 2345.74517 0.97611 932.29216 1.23674 930.36950
8 1994 23.15 109.5119128 2535.20078 1.00998 1006.57935 1.27929 1004.23209
9 1994 22.44 109.5119128 2457.44732 1.09046 974.61756 1.38085 972.05190
10 1994 23.48 109.5119128 2571.33971 1.05584 1018.73116 1.33660 1015.76583
11 1994 22.58 109.5119128 2472.77899 1.10363 978.57907 1.39671 975.43431
12 1994 23.13 109.5119128 2533.01054 1.06013 1001.35501 1.34125 997.85253
1 1995 23.07 109.5119128 2526.43983 1.08480 997.67266 1.37208 993.89198
2 1995 24.14 109.5119128 2643.61757 1.08081 1042.86449 1.36663 1038.62264
3 1995 24.71 109.5119128 2706.03936 1.12977 1066.35911 1.42814 1061.71873
4 1995 26.05 109.5119128 2852.78533 1.15522 1123.03153 1.45990 1117.83483
5 1995 26.27 110.8533915 2912.11860 1.21662 1145.17213 1.53706 1139.54691
6 1995 28.60 110.8533915 3170.40700 1.24060 1245.50180 1.56691 1239.05134
7 1995 30.91 110.8533915 3426.47833 1.34929 1344.75073 1.70374 1337.42483
8 1995 31.52 110.8533915 3494.09890 1.45681 1369.83219 1.83900 1361.97952
9 1995 32.73 110.8533915 3628.23150 1.48398 1420.93377 1.87277 1412.39086
10 1995 31.63 110.8533915 3506.29277 1.53934 1371.63924 1.94208 1362.98071
11 1995 31.59 110.8533915 3501.85864 1.48594 1368.41869 1.87414 1359.38291
12 1995 31.16 110.8533915 3454.19168 1.48245 1348.30946 1.86920 1339.00993
1 1996 32.17 110.8533915 3566.15361 1.46067 1390.55201 1.84118 1380.57054
2 1996 33.26 110.8533915 3686.98380 1.50643 1436.16096 1.89833 1425.44939
3 1996 32.70 110.8533915 3624.90590 1.55584 1410.42442 1.96004 1399.48900
4 1996 33.53 110.8533915 3716.91422 1.52796 1444.69622 1.92434 1433.08685
5 1996 33.06 114.0494069 3770.47339 1.56509 1463.94860 1.97054 1451.76649
6 1996 32.25 114.0494069 3678.09337 1.58594 1426.49459 1.99623 1414.20067
7 1996 29.89 114.0494069 3408.93677 1.54537 1320.56078 1.94457 1308.76730
8 1996 31.14 114.0494069 3551.49853 1.43061 1374.35603 1.79960 1361.70036
9 1996 33.15 114.0494069 3780.73784 1.48889 1461.57799 1.87238 1447.72193
10 1996 33.47 114.0494069 3817.23365 1.58338 1474.10336 1.99067 1459.70626
11 1996 35.37 114.0494069 4033.92752 1.59695 1556.18721 2.00714 1540.56263
12 1996 34.33 114.0494069 3915.31614 1.68587 1508.74407 2.11832 1493.14645
1 1997 36.86 114.0494069 4203.86114 1.63447 1618.29872 2.05313 1601.13295
2 1997 35.51 114.0494069 4049.89444 1.75316 1557.27526 2.20161 1540.28974
3 1997 34.09 114.0494069 3887.94428 1.68705 1493.31475 2.11795 1476.57755
4 1997 35.60 114.0494069 4060.15889 1.61776 1557.84264 2.03034 1539.95149
5 1997 37.43 115.1406864 4309.71589 1.68766 1651.90752 2.11748 1632.48688
6 1997 39.53 115.1406864 4551.51133 1.78957 1742.79778 2.24472 1721.83239
7 1997 43.66 115.1406864 5027.04237 1.88803 1922.99310 2.36758 1899.35775
8 1997 41.90 115.1406864 4824.39476 2.08324 1843.39112 2.61168 1820.18011
9 1997 44.28 115.1406864 5098.42960 1.99701 1946.10225 2.50281 1921.06701
10 1997 42.19 115.1406864 4857.78556 2.10828 1852.13865 2.64153 1827.75181
11 1997 42.92 115.1406864 4941.83826 2.00648 1882.17913 2.51322 1856.86359
12 1997 42.76 115.1406864 4923.41575 2.03903 1873.12359 2.55325 1847.38820
1 1998 43.50 115.1406864 5008.61986 2.02922 1903.51045 2.54022 1876.81869
2 1998 46.92 115.1406864 5402.40101 2.06214 2051.10362 2.58069 2021.79478
3 1998 49.67 115.1406864 5719.03790 2.22203 2169.09759 2.78004 2137.51294
4 1998 50.23 115.1406864 5783.51668 2.34986 2191.20303 2.93915 2158.67299
5 1998 41.91 136.9819763 5740.91463 2.37380 2172.68858 2.96825 2139.80371
6 1998 45.66 136.9819763 6254.59704 2.35375 2364.74147 2.94230 2328.32559
7 1998 46.65 136.9819763 6390.20919 2.56180 2413.45198 3.20153 2375.60681
8 1998 38.66 136.9819763 5295.72320 2.61457 1997.47232 3.26654 1965.45714
9 1998 42.26 136.9819763 5788.85832 2.16393 2181.31202 2.70257 2145.77696
10 1998 44.21 136.9819763 6055.97317 2.36309 2279.60105 2.95051 2241.83887
11 1998 47.46 136.9819763 6501.16459 2.46957 2444.71129 3.08260 2403.56007
12 1998 53.22 136.9819763 7290.18078 2.64844 2738.76612 3.30498 2691.96403
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 191.97%
GROSS ANNUAL RETURN = 23.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2738.77 2668.93
TOTAL RETURN 173.88% 166.89%
AVERAGE ANNUAL RETURN 22.32% 21.69%
WITH DEATH BENEFIT CHARGE
ERV 2691.96 2623.32
TOTAL RETURN 169.20% 162.33%
AVERAGE ANNUAL RETURN 21.90% 21.27%
<TABLE>
<CAPTION>
Return for 10 Years
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 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
1 1998 43.50 115.1406864 5008.61986 4.75210 4457.71190 5.84690 4319.92751
2 1998 46.92 115.1406864 5402.40101 4.82919 4803.35109 5.94004 4653.62314
3 1998 49.67 115.1406864 5719.03790 5.20363 5079.67380 6.39889 4919.97497
4 1998 50.23 115.1406864 5783.51668 5.50298 5131.44115 6.76513 4968.67967
5 1998 41.91 136.9819763 5740.91463 5.55906 5088.08330 6.83210 4925.24770
6 1998 45.66 136.9819763 6254.59704 5.51209 5537.83993 6.77238 5359.17393
7 1998 46.65 136.9819763 6390.20919 5.99933 5651.91204 7.36904 5468.00248
8 1998 38.66 136.9819763 5295.72320 6.12290 4677.75532 7.51869 4523.94918
9 1998 42.26 136.9819763 5788.85832 5.06757 5108.27801 6.22058 4938.99650
10 1998 44.21 136.9819763 6055.97317 5.53397 5338.45493 6.79128 5160.10496
11 1998 47.46 136.9819763 6501.16459 5.78333 5725.11627 7.09532 5532.34330
12 1998 53.22 136.9819763 7290.18078 6.20221 6413.74486 7.60716 6196.17099
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 629.02%
GROSS ANNUAL RETURN = 21.98%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 6413.74 6413.74
TOTAL RETURN 541.37% 541.37%
AVERAGE ANNUAL RETURN 20.42% 20.42%
WITH DEATH BENEFIT CHARGE
ERV 6196.17 6196.17
TOTAL RETURN 519.62% 519.62%
AVERAGE ANNUAL RETURN 20.01% 20.01%
<TABLE>
<CAPTION>
Return for Inception
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 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
1 1998 43.50 115.1406864 5008.61986 4.75210 4457.71190 5.84690 4319.92751
2 1998 46.92 115.1406864 5402.40101 4.82919 4803.35109 5.94004 4653.62314
3 1998 49.67 115.1406864 5719.03790 5.20363 5079.67380 6.39889 4919.97497
4 1998 50.23 115.1406864 5783.51668 5.50298 5131.44115 6.76513 4968.67967
5 1998 41.91 136.9819763 5740.91463 5.55906 5088.08330 6.83210 4925.24770
6 1998 45.66 136.9819763 6254.59704 5.51209 5537.83993 6.77238 5359.17393
7 1998 46.65 136.9819763 6390.20919 5.99933 5651.91204 7.36904 5468.00248
8 1998 38.66 136.9819763 5295.72320 6.12290 4677.75532 7.51869 4523.94918
9 1998 42.26 136.9819763 5788.85832 5.06757 5108.27801 6.22058 4938.99650
10 1998 44.21 136.9819763 6055.97317 5.53397 5338.45493 6.79128 5160.10496
11 1998 47.46 136.9819763 6501.16459 5.78333 5725.11627 7.09532 5532.34330
12 1998 53.22 136.9819763 7290.18078 6.20221 6413.74486 7.60716 6196.17099
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 629.02%
GROSS ANNUAL RETURN = 22.04%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 6413.74 6413.74
TOTAL RETURN 541.37% 541.37%
AVERAGE ANNUAL RETURN 20.48% 20.48%
WITH DEATH BENEFIT CHARGE
ERV 6196.17 6196.17
TOTAL RETURN 519.62% 519.62%
AVERAGE ANNUAL RETURN 20.06% 20.06%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 43.50 115.1406864 5008.61986 1.62924 1528.30806 2.05013 1514.72229
2 1998 46.92 115.1406864 5402.40101 1.65567 1646.80903 2.08279 1631.72801
3 1998 49.67 115.1406864 5719.03790 1.78404 1741.54512 2.24368 1725.12056
4 1998 50.23 115.1406864 5783.51668 1.88667 1759.29335 2.37210 1742.19818
5 1998 41.91 136.9819763 5740.91463 1.90590 1744.42829 2.39558 1726.96937
6 1998 45.66 136.9819763 6254.59704 1.88980 1898.62549 2.37464 1879.11954
7 1998 46.65 136.9819763 6390.20919 2.05684 1937.73464 2.58385 1917.27876
8 1998 38.66 136.9819763 5295.72320 2.09921 1603.74904 2.63632 1586.25964
9 1998 42.26 136.9819763 5788.85832 1.73739 1751.35196 2.18116 1731.79019
10 1998 44.21 136.9819763 6055.97317 1.89730 1830.26716 2.38127 1809.31879
11 1998 47.46 136.9819763 6501.16459 1.98279 1962.83240 2.48787 1939.83897
12 1998 53.22 136.9819763 7290.18078 2.12640 2198.92586 2.66734 2172.60088
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 129.94%
GROSS ANNUAL RETURN = 26.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2198.93 2124.16
TOTAL RETURN 119.89% 112.42%
AVERAGE ANNUAL RETURN 24.59% 23.40%
WITH DEATH BENEFIT CHARGE
ERV 2172.60 2098.73
TOTAL RETURN 117.26% 109.87%
AVERAGE ANNUAL RETURN 24.18% 22.98%
Alger American Small Capitalization
12/1998
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
5/98 6.0570000000 40.51 17.480 134.386842
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 43.75 116.9070581 5114.68379 1000.00000 1000.00000
1 1998 42.94 116.9070581 5019.98908 1.08333 980.40238 1.37503 980.11068
2 1998 46.10 116.9070581 5389.41538 1.06210 1051.48913 1.34768 1050.89038
3 1998 48.62 116.9070581 5684.02117 1.13911 1107.82838 1.44501 1106.89100
4 1998 48.75 116.9070581 5699.21908 1.20015 1109.59034 1.52201 1108.32859
5 1998 40.51 134.3868421 5444.01098 1.20206 1058.70140 1.52399 1057.17422
6 1998 43.13 134.3868421 5796.10450 1.14693 1126.02639 1.45365 1124.09372
7 1998 40.70 134.3868421 5469.54448 1.21986 1061.36475 1.54567 1059.21516
8 1998 32.72 134.3868421 4397.13747 1.14981 852.11443 1.45646 850.07966
9 1998 35.27 134.3868421 4739.82392 0.92312 917.59998 1.16889 915.16087
10 1998 36.44 134.3868421 4897.05653 0.99407 947.04515 1.25838 944.26082
11 1998 39.00 134.3868421 5241.08684 1.02597 1012.55145 1.29839 1009.29909
12 1998 43.97 134.3868421 5908.98945 1.09693 1140.48992 1.38782 1136.53220
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1140.49 1072.63
TOTAL RETURN 14.05% 7.26%
WITH DEATH BENEFIT CHARGE
ERV 1136.53 1068.91
TOTAL RETURN 13.65% 6.89%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 43.75 116.9070581 5114.68379 1000.00000 1000.00000
1 1998 42.94 116.9070581 5019.98908 1.08333 980.40238 1.37503 980.11068
2 1998 46.10 116.9070581 5389.41538 1.06210 1051.48913 1.34768 1050.89038
3 1998 48.62 116.9070581 5684.02117 1.13911 1107.82838 1.44501 1106.89100
4 1998 48.75 116.9070581 5699.21908 1.20015 1109.59034 1.52201 1108.32859
5 1998 40.51 134.3868421 5444.01098 1.20206 1058.70140 1.52399 1057.17422
6 1998 43.13 134.3868421 5796.10450 1.14693 1126.02639 1.45365 1124.09372
7 1998 40.70 134.3868421 5469.54448 1.21986 1061.36475 1.54567 1059.21516
8 1998 32.72 134.3868421 4397.13747 1.14981 852.11443 1.45646 850.07966
9 1998 35.27 134.3868421 4739.82392 0.92312 917.59998 1.16889 915.16087
10 1998 36.44 134.3868421 4897.05653 0.99407 947.04515 1.25838 944.26082
11 1998 39.00 134.3868421 5241.08684 1.02597 1012.55145 1.29839 1009.29909
12 1998 43.97 134.3868421 5908.98945 1.09693 1140.48992 1.38782 1136.53220
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1140.49 1072.63
TOTAL RETURN 14.05% 7.26%
WITH DEATH BENEFIT CHARGE
ERV 1136.53 1068.91
TOTAL RETURN 13.65% 6.89%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 39.41 111.8311656 4407.26624 1000.00000 1000.00000
1 1996 39.55 111.8311656 4422.92260 1.08333 1002.46906 1.37503 1002.17736
2 1996 41.24 111.8311656 4611.91727 1.08601 1044.21928 1.37803 1043.62310
3 1996 40.87 111.8311656 4570.53974 1.13124 1033.71944 1.43502 1032.82483
4 1996 44.02 111.8311656 4922.80791 1.11986 1112.27211 1.42017 1111.00824
5 1996 45.10 112.2370145 5061.88935 1.20496 1142.49157 1.52767 1140.86928
6 1996 42.33 112.2370145 4750.99282 1.23770 1071.08311 1.56873 1069.22942
7 1996 37.34 112.2370145 4190.93012 1.16034 943.65996 1.47023 941.71490
8 1996 39.67 112.2370145 4452.44237 1.02230 1001.52164 1.29489 999.18262
9 1996 42.45 112.2370145 4764.46127 1.08498 1070.62143 1.37391 1067.82958
10 1996 40.49 112.2370145 4544.47672 1.15984 1020.02889 1.46830 1017.05748
11 1996 41.18 112.2370145 4621.92026 1.10503 1036.30642 1.39849 1032.99092
12 1996 40.91 112.2370145 4591.61626 1.12267 1028.38913 1.42040 1024.79764
1 1997 41.55 112.2370145 4663.44795 1.11409 1043.36326 1.40913 1039.42054
2 1997 38.60 112.2370145 4332.34876 1.13031 968.15542 1.42924 964.19369
3 1997 36.06 112.2370145 4047.26674 1.04884 903.39895 1.32580 899.42095
4 1997 35.68 112.2370145 4004.61668 0.97868 892.90025 1.23673 888.70613
5 1997 37.56 116.9070581 4391.02910 0.96731 978.09044 1.22200 973.23693
6 1997 39.53 116.9070581 4621.33601 1.05960 1028.33111 1.33823 1022.94440
7 1997 43.50 116.9070581 5085.45703 1.11403 1130.49244 1.40658 1124.27218
8 1997 43.38 116.9070581 5071.42818 1.22470 1126.14914 1.54591 1119.62482
9 1997 46.66 116.9070581 5454.88333 1.21999 1210.07827 1.53952 1202.74112
10 1997 43.95 116.9070581 5138.06520 1.31092 1138.48634 1.65381 1131.23244
11 1997 43.44 116.9070581 5078.44260 1.23336 1124.04187 1.55548 1116.55003
12 1997 43.75 116.9070581 5114.68379 1.21771 1130.84564 1.53529 1122.98275
1 1998 42.94 116.9070581 5019.98908 1.22508 1108.68376 1.54414 1100.64738
2 1998 46.10 116.9070581 5389.41538 1.20107 1189.07189 1.51343 1180.13176
3 1998 48.62 116.9070581 5684.02117 1.28816 1252.78289 1.62272 1243.01950
4 1998 48.75 116.9070581 5699.21908 1.35718 1254.77540 1.70919 1244.63389
5 1998 40.51 134.3868421 5444.01098 1.35934 1197.22786 1.71141 1187.18841
6 1998 43.13 134.3868421 5796.10450 1.29700 1273.36204 1.63242 1262.33786
7 1998 40.70 134.3868421 5469.54448 1.37948 1200.23970 1.73576 1189.48035
8 1998 32.72 134.3868421 4397.13747 1.30026 963.60989 1.63558 954.62480
9 1998 35.27 134.3868421 4739.82392 1.04391 1037.66393 1.31264 1027.70987
10 1998 36.44 134.3868421 4897.05653 1.12414 1070.96188 1.41314 1060.38861
11 1998 39.00 134.3868421 5241.08684 1.16021 1145.03939 1.45807 1133.42546
12 1998 43.97 134.3868421 5908.98945 1.24046 1289.71805 1.55850 1276.30605
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 34.07%
GROSS ANNUAL RETURN = 10.27%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1289.72 1234.91
TOTAL RETURN 28.97% 23.49%
AVERAGE ANNUAL RETURN 8.85% 7.29%
WITH DEATH BENEFIT CHARGE
ERV 1276.31 1222.06
TOTAL RETURN 27.63% 22.21%
AVERAGE ANNUAL RETURN 8.47% 6.91%
<TABLE>
<CAPTION>
Return for 5 Years
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 1993 30.88 103.4290612 3193.88941 1000.00000 1000.00000
1 1994 30.54 103.4290612 3158.72353 1.08333 987.90630 1.37503 987.61460
2 1994 30.23 103.4290612 3126.66052 1.07023 976.80821 1.35800 976.23170
3 1994 28.11 103.4290612 2907.39091 1.05821 907.24741 1.34235 906.42718
4 1994 28.37 103.4290612 2934.28247 0.98285 914.65603 1.24637 913.56470
5 1994 25.48 111.8311656 2849.45810 0.99088 887.22423 1.25618 885.89915
6 1994 24.29 111.8311656 2716.37901 0.96116 844.82678 1.21814 843.30660
7 1994 24.74 111.8311656 2766.70304 0.91523 859.56293 1.15957 857.77024
8 1994 26.69 111.8311656 2984.77381 0.93119 926.38225 1.17946 924.20000
9 1994 26.52 111.8311656 2965.76251 1.00358 919.47815 1.27081 917.04257
10 1994 27.76 111.8311656 3104.43316 0.99610 961.47424 1.26096 958.65991
11 1994 26.40 111.8311656 2952.34277 1.04160 913.32871 1.31819 910.37568
12 1994 27.31 111.8311656 3054.10913 0.98944 943.82144 1.25180 940.50425
1 1995 26.84 111.8311656 3001.54849 1.02247 926.55597 1.29322 923.02513
2 1995 28.76 111.8311656 3216.26432 1.00377 991.83341 1.26919 987.78456
3 1995 29.59 111.8311656 3309.08419 1.07449 1019.38277 1.35824 1014.93332
4 1995 30.89 111.8311656 3454.46471 1.10433 1063.06375 1.39557 1058.12759
5 1995 32.07 111.8311656 3586.42548 1.15165 1102.52120 1.45496 1097.09317
6 1995 36.02 111.8311656 4028.15859 1.19440 1237.12222 1.50854 1230.71148
7 1995 41.18 111.8311656 4605.20740 1.34022 1413.00439 1.69227 1405.32324
8 1995 41.72 111.8311656 4665.59623 1.53075 1430.00259 1.93237 1421.81911
9 1995 42.83 111.8311656 4789.72882 1.54917 1466.49999 1.95505 1457.69290
10 1995 40.83 111.8311656 4566.06649 1.58871 1396.43125 2.00438 1387.61974
11 1995 40.76 111.8311656 4558.23831 1.51280 1392.52437 1.90802 1383.33275
12 1995 39.41 111.8311656 4407.26624 1.50857 1344.89441 1.90213 1335.61366
1 1996 39.55 111.8311656 4422.92260 1.45697 1348.21504 1.83651 1338.52178
2 1996 41.24 111.8311656 4611.91727 1.46057 1404.36468 1.84051 1393.87727
3 1996 40.87 111.8311656 4570.53974 1.52140 1390.24350 1.91663 1379.45495
4 1996 44.02 111.8311656 4922.80791 1.50610 1495.88854 1.89680 1483.87778
5 1996 45.10 112.2370145 5061.88935 1.62055 1536.53053 2.04038 1523.76060
6 1996 42.33 112.2370145 4750.99282 1.66457 1440.49368 2.09522 1428.07742
7 1996 37.34 112.2370145 4190.93012 1.56053 1269.12300 1.96365 1257.76729
8 1996 39.67 112.2370145 4452.44237 1.37488 1346.94085 1.72947 1334.52196
9 1996 42.45 112.2370145 4764.46127 1.45919 1439.87278 1.83501 1426.20777
10 1996 40.49 112.2370145 4544.47672 1.55986 1371.83116 1.96108 1358.39587
11 1996 41.18 112.2370145 4621.92026 1.48615 1393.72272 1.86784 1379.67679
12 1996 40.91 112.2370145 4591.61626 1.50987 1383.07480 1.89710 1368.73372
1 1997 41.55 112.2370145 4663.44795 1.49833 1403.21342 1.88205 1388.26427
2 1997 38.60 112.2370145 4332.34876 1.52015 1302.06681 1.90891 1287.79027
3 1997 36.06 112.2370145 4047.26674 1.41057 1214.97619 1.77075 1201.27891
4 1997 35.68 112.2370145 4004.61668 1.31622 1200.85656 1.65180 1186.96804
5 1997 37.56 116.9070581 4391.02910 1.30093 1315.42837 1.63212 1299.86853
6 1997 39.53 116.9070581 4621.33601 1.42505 1382.99677 1.78736 1366.25851
7 1997 43.50 116.9070581 5085.45703 1.49825 1520.39296 1.87865 1501.59328
8 1997 43.38 116.9070581 5071.42818 1.64709 1514.55168 2.06474 1495.38621
9 1997 46.66 116.9070581 5454.88333 1.64076 1627.42750 2.05621 1606.39747
10 1997 43.95 116.9070581 5138.06520 1.76305 1531.14392 2.20885 1510.88950
11 1997 43.44 116.9070581 5078.44260 1.65874 1511.71764 2.07752 1491.27947
12 1997 43.75 116.9070581 5114.68379 1.63769 1520.86798 2.05056 1499.87110
1 1998 42.94 116.9070581 5019.98908 1.64761 1491.06259 2.06237 1470.03968
2 1998 46.10 116.9070581 5389.41538 1.61532 1599.17615 2.02135 1576.20010
3 1998 48.62 116.9070581 5684.02117 1.73244 1684.86071 2.16733 1660.19382
4 1998 48.75 116.9070581 5699.21908 1.82527 1687.54042 2.28282 1662.35002
5 1998 40.51 134.3868421 5444.01098 1.82817 1610.14506 2.28579 1585.62505
6 1998 43.13 134.3868421 5796.10450 1.74432 1712.53749 2.18029 1685.99568
7 1998 40.70 134.3868421 5469.54448 1.85525 1614.19566 2.31830 1588.68621
8 1998 32.72 134.3868421 4397.13747 1.74871 1295.95355 2.18450 1275.00992
9 1998 35.27 134.3868421 4739.82392 1.40395 1395.54843 1.75318 1372.62334
10 1998 36.44 134.3868421 4897.05653 1.51184 1440.33065 1.88740 1416.26952
11 1998 39.00 134.3868421 5241.08684 1.56036 1539.95707 1.94742 1513.81853
12 1998 43.97 134.3868421 5908.98945 1.66829 1734.53460 2.08155 1704.65180
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 85.01%
GROSS ANNUAL RETURN = 13.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1734.53 1690.30
TOTAL RETURN 73.45% 69.03%
AVERAGE ANNUAL RETURN 11.64% 11.07%
WITH DEATH BENEFIT CHARGE
ERV 1704.65 1661.18
TOTAL RETURN 70.47% 66.12%
AVERAGE ANNUAL RETURN 11.26% 10.68%
<TABLE>
<CAPTION>
Return for 10 Years
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 1988 9.60 100.6770833 966.50000 1000.00000 1000.00000
1 1989 10.69 100.6770833 1076.23802 1.08333 1112.45833 1.37503 1112.16663
2 1989 10.90 100.6770833 1097.38021 1.20516 1133.10689 1.52927 1132.48536
3 1989 11.72 100.6770833 1179.93542 1.22753 1217.12226 1.55721 1216.12430
4 1989 12.64 100.6770833 1272.55833 1.31855 1311.34573 1.67221 1309.91577
5 1989 13.31 100.6770833 1340.01198 1.42062 1379.43473 1.80118 1377.54842
6 1989 13.12 100.6770833 1320.88333 1.49439 1358.24894 1.89417 1355.98976
7 1989 14.48 100.6770833 1457.80417 1.47144 1497.57160 1.86453 1494.68515
8 1989 15.59 100.6770833 1569.55573 1.62237 1610.74926 2.05524 1607.20867
9 1989 16.25 100.6770833 1636.00260 1.74498 1677.19508 2.20997 1673.03961
10 1989 15.32 100.6770833 1542.37292 1.81696 1579.39095 2.30049 1574.98978
11 1989 15.71 100.6770833 1581.63698 1.71101 1617.88637 2.16566 1612.91850
12 1989 15.79 100.6770833 1589.69115 1.75271 1624.37242 2.21782 1618.91415
1 1990 14.39 100.6770833 1448.74323 1.75974 1478.58980 2.22606 1473.14915
2 1990 15.15 100.6770833 1525.25781 1.60181 1555.07891 2.02563 1548.92709
3 1990 16.04 100.6770833 1614.86042 1.68467 1644.74871 2.12983 1637.79034
4 1990 15.85 101.5402059 1609.41226 1.78181 1637.41791 2.25202 1630.01281
5 1990 18.05 101.5402059 1832.80072 1.77387 1862.91971 2.24132 1854.01933
6 1990 18.24 101.5402059 1852.09336 2.01816 1880.51123 2.54934 1870.98598
7 1990 17.23 101.5402059 1749.53775 2.03722 1774.34482 2.57267 1764.81157
8 1990 15.63 101.5402059 1587.07342 1.92221 1607.65467 2.42667 1598.50222
9 1990 14.46 101.5402059 1468.27138 1.74163 1485.57037 2.19799 1476.64667
10 1990 14.22 101.5402059 1443.90173 1.60937 1459.30424 2.03044 1450.10757
11 1990 15.75 101.5402059 1599.25824 1.58091 1614.73707 1.99395 1604.13786
12 1990 17.02 101.5402059 1728.21430 1.74930 1743.19197 2.20574 1731.28164
1 1991 18.25 101.5402059 1853.10876 1.88846 1867.28037 2.38057 1854.01719
2 1991 19.58 101.5402059 1988.15723 2.02289 2001.33873 2.54934 1986.58254
3 1991 21.40 101.5402059 2172.96041 2.16812 2185.19904 2.73162 2168.50772
4 1991 20.56 101.6322224 2089.55849 2.36730 2098.96009 2.98177 2082.29494
5 1991 21.70 101.6322224 2205.41923 2.27387 2213.06824 2.86322 2194.88970
6 1991 20.17 101.6322224 2049.92193 2.39749 2054.63414 3.01805 2037.11676
7 1991 21.85 101.6322224 2220.66406 2.22585 2223.54291 2.80110 2203.99122
8 1991 22.01 101.6322224 2236.92522 2.40884 2237.41631 3.03056 2217.09973
9 1991 22.65 101.6322224 2301.96984 2.42387 2300.05134 3.04859 2278.51929
10 1991 23.75 101.6322224 2413.76528 2.49172 2409.26190 3.13304 2386.04281
11 1991 22.82 101.6322224 2319.24732 2.61003 2312.31024 3.28089 2289.32951
12 1991 26.79 101.6322224 2722.72724 2.50500 2712.07831 3.14790 2684.45672
1 1992 27.52 101.6322224 2796.91876 2.93808 2783.04158 3.69122 2753.91419
2 1992 27.27 101.6322224 2771.51071 3.01496 2754.74463 3.78672 2725.11008
3 1992 24.23 101.6322224 2462.54875 2.98431 2444.66741 3.74712 2417.57365
4 1992 22.15 103.4290612 2290.95371 2.64839 2271.66998 3.32424 2245.78831
5 1992 22.15 103.4290612 2290.95371 2.46098 2269.20901 3.08803 2242.70028
6 1992 21.21 103.4290612 2193.73039 2.45831 2170.45018 3.08379 2144.44095
7 1992 22.06 103.4290612 2281.64509 2.35132 2255.08060 2.94868 2227.43168
8 1992 21.67 103.4290612 2241.30776 2.44300 2212.76989 3.06279 2184.98999
9 1992 22.87 103.4290612 2365.42263 2.39717 2332.90728 3.00443 2302.98177
10 1992 23.93 103.4290612 2475.05744 2.52732 2438.50772 3.16668 2406.55584
11 1992 25.96 103.4290612 2685.01843 2.64172 2642.72646 3.30909 2607.39669
12 1992 27.26 103.4290612 2819.47621 2.86295 2772.20343 3.58526 2734.38215
1 1993 26.52 103.4290612 2742.93870 3.00322 2693.94597 3.75987 2656.39474
2 1993 24.38 103.4290612 2521.60051 2.91844 2473.64275 3.65263 2438.38748
3 1993 24.96 103.4290612 2581.58937 2.67978 2529.81091 3.35286 2493.04383
4 1993 24.29 103.4290612 2512.29190 2.74063 2459.16270 3.42802 2422.69517
5 1993 26.36 103.4290612 2726.39005 2.66409 2666.06908 3.33129 2625.82658
6 1993 26.72 103.4290612 2763.62452 2.88824 2699.59149 3.61060 2658.07704
7 1993 26.72 103.4290612 2763.62452 2.92456 2696.66693 3.65494 2654.42210
8 1993 28.89 103.4290612 2988.06558 2.92139 2912.74881 3.64992 2866.34463
9 1993 30.17 103.4290612 3120.45478 3.15548 3038.64555 3.94132 2989.39955
10 1993 30.16 103.4290612 3119.42049 3.29187 3034.34651 4.11052 2984.29817
11 1993 29.06 103.4290612 3005.64852 3.28721 2920.39016 4.10351 2871.35090
12 1993 30.88 103.4290612 3193.88941 3.16376 3100.12765 3.94820 3047.23265
1 1994 30.54 103.4290612 3158.72353 3.35847 3062.63564 4.19005 3009.49147
2 1994 30.23 103.4290612 3126.66052 3.31786 3028.23013 4.13815 2974.80511
3 1994 28.11 103.4290612 2907.39091 3.28058 2812.58277 4.09046 2762.09451
4 1994 28.37 103.4290612 2934.28247 3.04696 2835.55044 3.79797 2783.84419
5 1994 25.48 111.8311656 2849.45810 3.07185 2750.50838 3.82788 2699.54083
6 1994 24.29 111.8311656 2716.37901 2.97972 2619.07085 3.71196 2569.75141
7 1994 24.74 111.8311656 2766.70304 2.83733 2664.75480 3.53349 2613.82550
8 1994 26.69 111.8311656 2984.77381 2.88682 2871.90323 3.59410 2816.25241
9 1994 26.52 111.8311656 2965.76251 3.11123 2850.49962 3.87244 2794.44205
10 1994 27.76 111.8311656 3104.43316 3.08804 2980.69286 3.84245 2921.25979
11 1994 26.40 111.8311656 2952.34277 3.22908 2831.43560 4.01683 2774.12649
12 1994 27.31 111.8311656 3054.10913 3.06739 2925.96693 3.81452 2865.93527
1 1995 26.84 111.8311656 3001.54849 3.16980 2872.44179 3.94076 2812.67230
2 1995 28.76 111.8311656 3216.26432 3.11181 3074.81017 3.86752 3010.00936
3 1995 29.59 111.8311656 3309.08419 3.33104 3160.21669 4.13886 3092.73794
4 1995 30.89 111.8311656 3454.46471 3.42357 3295.63333 4.25262 3224.36094
5 1995 32.07 111.8311656 3586.42548 3.57027 3417.95647 4.43360 3343.09813
6 1995 36.02 111.8311656 4028.15859 3.70279 3835.23678 4.59687 3750.26420
7 1995 41.18 111.8311656 4605.20740 4.15484 4380.49399 5.15674 4282.34687
8 1995 41.72 111.8311656 4665.59623 4.74554 4433.19058 5.88837 4332.61360
9 1995 42.83 111.8311656 4789.72882 4.80262 4546.33718 5.95749 4441.92939
10 1995 40.83 111.8311656 4566.06649 4.92520 4329.11512 6.10780 4228.40019
11 1995 40.76 111.8311656 4558.23831 4.68987 4317.00330 5.81419 4215.33672
12 1995 39.41 111.8311656 4407.26624 4.67675 4169.34435 5.79623 4069.92556
1 1996 39.55 111.8311656 4422.92260 4.51679 4179.63873 5.59628 4078.78727
2 1996 41.24 111.8311656 4611.91727 4.52794 4353.70976 5.60847 4247.46832
3 1996 40.87 111.8311656 4570.53974 4.71652 4309.93232 5.84041 4203.52017
4 1996 44.02 111.8311656 4922.80791 4.66909 4637.44543 5.77998 4521.72082
5 1996 45.10 112.2370145 5061.88935 5.02390 4763.44078 6.21752 4643.25305
6 1996 42.33 112.2370145 4750.99282 5.16039 4465.71429 6.38463 4351.68415
7 1996 37.34 112.2370145 4190.93012 4.83786 3934.44331 5.98371 3832.70956
8 1996 39.67 112.2370145 4452.44237 4.26231 4175.68857 5.27010 4066.59889
9 1996 42.45 112.2370145 4764.46127 4.52366 4463.78941 5.59171 4345.98688
10 1996 40.49 112.2370145 4544.47672 4.83577 4252.85170 5.97588 4139.34824
11 1996 41.18 112.2370145 4621.92026 4.60726 4320.71833 5.69174 4204.19615
12 1996 40.91 112.2370145 4591.61626 4.68078 4287.70842 5.78091 4170.85009
1 1997 41.55 112.2370145 4663.44795 4.64502 4350.14073 5.73506 4230.36421
2 1997 38.60 112.2370145 4332.34876 4.71265 4036.57332 5.81689 3924.19655
3 1997 36.06 112.2370145 4047.26674 4.37295 3766.58129 5.39590 3660.57632
4 1997 35.68 112.2370145 4004.61668 4.08046 3722.80862 5.03341 3616.96778
5 1997 37.56 116.9070581 4391.02910 4.03304 4077.99586 4.97345 3961.00184
6 1997 39.53 116.9070581 4621.33601 4.41783 4287.46652 5.44651 4163.30755
7 1997 43.50 116.9070581 5085.45703 4.64476 4713.41226 5.72469 4575.70407
8 1997 43.38 116.9070581 5071.42818 5.10620 4695.30354 6.29175 4556.78969
9 1997 46.66 116.9070581 5454.88333 5.08658 5045.23300 6.26574 4895.06683
10 1997 43.95 116.9070581 5138.06520 5.46567 4746.74158 6.73088 4604.03181
11 1997 43.44 116.9070581 5078.44260 5.14230 4686.51764 6.33070 4544.27549
12 1997 43.75 116.9070581 5114.68379 5.07706 4714.88488 6.24853 4570.45618
1 1998 42.94 116.9070581 5019.98908 5.10779 4622.48436 6.28453 4479.55292
2 1998 46.10 116.9070581 5389.41538 5.00769 4957.65018 6.15953 4803.04842
3 1998 48.62 116.9070581 5684.02117 5.37079 5223.28326 6.60435 5058.99683
4 1998 48.75 116.9070581 5699.21908 5.65856 5231.59070 6.95629 5065.56727
5 1998 40.51 134.3868421 5444.01098 5.66756 4991.65520 6.96532 4831.76844
6 1998 43.13 134.3868421 5796.10450 5.40763 5309.08481 6.64384 5137.62110
7 1998 40.70 134.3868421 5469.54448 5.75151 5004.21260 7.06440 4841.09648
8 1998 32.72 134.3868421 4397.13747 5.42123 4017.62143 6.65667 3885.25185
9 1998 35.27 134.3868421 4739.82392 4.35242 4326.37826 5.34235 4182.70266
10 1998 36.44 134.3868421 4897.05653 4.68691 4465.20885 5.75136 4315.70271
11 1998 39.00 134.3868421 5241.08684 4.83731 4774.06350 5.93423 4612.95725
12 1998 43.97 134.3868421 5908.98945 5.17190 5377.27866 6.34297 5194.47063
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 511.38%
GROSS ANNUAL RETURN = 19.85%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 5377.28 5377.28
TOTAL RETURN 437.73% 437.73%
AVERAGE ANNUAL RETURN 18.32% 18.32%
WITH DEATH BENEFIT CHARGE
ERV 5194.47 5194.47
TOTAL RETURN 419.45% 419.45%
AVERAGE ANNUAL RETURN 17.91% 17.91%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 42.94 116.9070581 5019.98908 4.91514 4448.13595 6.04037 4305.51912
2 1998 46.10 116.9070581 5389.41538 4.81881 4770.66017 5.92023 4616.44659
3 1998 48.62 116.9070581 5684.02117 5.16822 5026.27424 6.34777 4862.45122
4 1998 48.75 116.9070581 5699.21908 5.44513 5034.26835 6.68603 4868.76639
5 1998 40.51 134.3868421 5444.01098 5.45379 4803.38260 6.69472 4644.05082
6 1998 43.13 134.3868421 5796.10450 5.20366 5108.83958 6.38572 4938.02088
7 1998 40.70 134.3868421 5469.54448 5.53458 4815.46637 6.78994 4653.01646
8 1998 32.72 134.3868421 4397.13747 5.21676 3866.08692 6.39805 3734.30707
9 1998 35.27 134.3868421 4739.82392 4.18826 4163.19822 5.13480 4020.20170
10 1998 36.44 134.3868421 4897.05653 4.51013 4296.79248 5.52791 4148.03461
11 1998 39.00 134.3868421 5241.08684 4.65486 4593.99791 5.70369 4433.74060
12 1998 43.97 134.3868421 5908.98945 4.97683 5174.46132 6.09654 4992.66177
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 490.90%
GROSS ANNUAL RETURN = 18.87%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 5174.46 5174.46
TOTAL RETURN 417.45% 417.45%
AVERAGE ANNUAL RETURN 17.34% 17.34%
WITH DEATH BENEFIT CHARGE
ERV 4992.66 4992.66
TOTAL RETURN 399.27% 399.27%
AVERAGE ANNUAL RETURN 16.94% 16.94%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 42.94 116.9070581 5019.98908 1.33181 1205.26701 1.67576 1194.46329
2 1998 46.10 116.9070581 5389.41538 1.30571 1292.65818 1.64243 1280.72268
3 1998 48.62 116.9070581 5684.02117 1.40038 1361.91937 1.76104 1348.97078
4 1998 48.75 116.9070581 5699.21908 1.47541 1364.08545 1.85488 1350.72277
5 1998 40.51 134.3868421 5444.01098 1.47776 1301.52465 1.85729 1288.38081
6 1998 43.13 134.3868421 5796.10450 1.40998 1384.29127 1.77157 1369.93578
7 1998 40.70 134.3868421 5469.54448 1.49965 1304.79886 1.88371 1290.86811
8 1998 32.72 134.3868421 4397.13747 1.41353 1047.55499 1.77499 1035.99417
9 1998 35.27 134.3868421 4739.82392 1.13485 1128.06027 1.42453 1115.30880
10 1998 36.44 134.3868421 4897.05653 1.22207 1164.25898 1.53359 1150.77298
11 1998 39.00 134.3868421 5241.08684 1.26128 1244.78977 1.58235 1230.03527
12 1998 43.97 134.3868421 5908.98945 1.34852 1402.07214 1.69134 1385.09458
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 46.69%
GROSS ANNUAL RETURN = 11.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1402.07 1354.40
TOTAL RETURN 40.21% 35.44%
AVERAGE ANNUAL RETURN 9.89% 8.83%
WITH DEATH BENEFIT CHARGE
ERV 1385.09 1338.00
TOTAL RETURN 38.51% 33.80%
AVERAGE ANNUAL RETURN 9.52% 8.46%
Federated Government Bond
12/1998
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
3/98 0.1864000000 10.54 2.117 121.807310
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 10.54 119.6905806 1261.53872 1000.00000 1000.00000
1 1998 10.67 119.6905806 1277.09850 1.08333 1011.25063 1.37503 1010.95893
2 1998 10.67 119.6905806 1277.09850 1.09552 1010.15511 1.39010 1009.56883
3 1998 10.52 121.8073097 1281.41290 1.09433 1012.47337 1.38819 1011.59125
4 1998 10.57 121.8073097 1287.50326 1.09685 1016.18866 1.39097 1015.00822
5 1998 10.66 121.8073097 1298.46592 1.10087 1023.74029 1.39567 1022.25501
6 1998 10.71 121.8073097 1304.55629 1.10905 1027.43302 1.40563 1025.64419
7 1998 10.76 121.8073097 1310.64665 1.11305 1031.11658 1.41029 1029.02215
8 1998 10.91 121.8073097 1328.91775 1.11704 1044.37384 1.41494 1041.95231
9 1998 11.11 121.8073097 1353.27921 1.13140 1062.38769 1.43272 1059.62046
10 1998 11.07 121.8073097 1348.40692 1.15092 1057.41179 1.45701 1054.34843
11 1998 11.11 121.8073097 1353.27921 1.14553 1060.08708 1.44976 1056.70842
12 1998 11.15 121.8073097 1358.15150 1.14843 1062.75535 1.45301 1059.05994
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1062.76 999.52
TOTAL RETURN 6.28% -0.05%
WITH DEATH BENEFIT CHARGE
ERV 1059.06 996.05
TOTAL RETURN 5.91% -0.40%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 10.54 119.6905806 1261.53872 1000.00000 1000.00000
1 1998 10.67 119.6905806 1277.09850 1.08333 1011.25063 1.37503 1010.95893
2 1998 10.67 119.6905806 1277.09850 1.09552 1010.15511 1.39010 1009.56883
3 1998 10.52 121.8073097 1281.41290 1.09433 1012.47337 1.38819 1011.59125
4 1998 10.57 121.8073097 1287.50326 1.09685 1016.18866 1.39097 1015.00822
5 1998 10.66 121.8073097 1298.46592 1.10087 1023.74029 1.39567 1022.25501
6 1998 10.71 121.8073097 1304.55629 1.10905 1027.43302 1.40563 1025.64419
7 1998 10.76 121.8073097 1310.64665 1.11305 1031.11658 1.41029 1029.02215
8 1998 10.91 121.8073097 1328.91775 1.11704 1044.37384 1.41494 1041.95231
9 1998 11.11 121.8073097 1353.27921 1.13140 1062.38769 1.43272 1059.62046
10 1998 11.07 121.8073097 1348.40692 1.15092 1057.41179 1.45701 1054.34843
11 1998 11.11 121.8073097 1353.27921 1.14553 1060.08708 1.44976 1056.70842
12 1998 11.15 121.8073097 1358.15150 1.14843 1062.75535 1.45301 1059.05994
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1062.76 999.52
TOTAL RETURN 6.28% -0.05%
WITH DEATH BENEFIT CHARGE
ERV 1059.06 996.05
TOTAL RETURN 5.91% -0.40%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 10.29 108.3600819 1115.02524 1000.00000 1000.00000
1 1996 10.32 108.8765842 1123.60635 1.08333 1006.61255 1.37503 1006.32085
2 1996 10.17 109.3991065 1112.58891 1.09050 995.65179 1.38372 995.06973
3 1996 10.03 110.3721484 1107.03265 1.07862 989.60089 1.36825 988.73210
4 1996 9.94 110.9029964 1102.37578 1.07207 984.36595 1.35954 983.21334
5 1996 9.87 111.4385441 1099.89843 1.06640 981.08740 1.35195 979.65183
6 1996 9.94 111.9826997 1113.10804 1.06284 991.80726 1.34705 990.07023
7 1996 9.92 112.4819134 1115.82058 1.07446 993.14975 1.36138 991.12157
8 1996 9.85 112.9778256 1112.83158 1.07591 989.41344 1.36283 987.10378
9 1996 9.96 113.5261508 1130.72046 1.07186 1004.24650 1.35730 1001.61427
10 1996 10.11 114.0699886 1153.24758 1.08793 1023.16597 1.37725 1020.19199
11 1996 10.21 114.6062628 1170.12994 1.10843 1037.03564 1.40280 1033.72375
12 1996 10.09 115.1503875 1161.86741 1.12346 1028.58945 1.42140 1025.00300
1 1997 10.08 115.7003595 1166.25962 1.11431 1031.36353 1.40941 1027.46842
2 1997 10.05 116.2491359 1168.30382 1.11731 1032.05397 1.41280 1027.85653
3 1997 9.91 116.8093727 1157.58088 1.11806 1021.46351 1.41334 1017.00932
4 1997 10.00 117.3745793 1173.74579 1.10659 1034.62104 1.39842 1029.81281
5 1997 10.04 117.9379773 1184.09729 1.12084 1042.62473 1.41603 1037.47891
6 1997 10.10 118.4973669 1196.82341 1.12951 1052.70085 1.42657 1047.20267
7 1997 10.21 119.0921864 1215.93122 1.14043 1068.36726 1.43994 1062.48179
8 1997 10.17 119.6905806 1217.25321 1.15740 1068.37141 1.46095 1062.17599
9 1997 10.29 119.6905806 1231.61607 1.15740 1079.82016 1.46053 1073.24851
10 1997 10.42 119.6905806 1247.17585 1.16981 1092.29240 1.47575 1085.33178
11 1997 10.45 119.6905806 1250.76657 1.18332 1094.25388 1.49237 1086.96417
12 1997 10.54 119.6905806 1261.53872 1.18544 1102.49263 1.49461 1094.83097
1 1998 10.67 119.6905806 1277.09850 1.19437 1114.89637 1.50543 1106.82915
2 1998 10.67 119.6905806 1277.09850 1.20780 1113.68857 1.52193 1105.30722
3 1998 10.52 121.8073097 1281.41290 1.20650 1116.24443 1.51983 1107.52143
4 1998 10.57 121.8073097 1287.50326 1.20926 1120.34051 1.52288 1111.26243
5 1998 10.66 121.8073097 1298.46592 1.21370 1128.66613 1.52802 1119.19644
6 1998 10.71 121.8073097 1304.55629 1.22272 1132.73734 1.53893 1122.90702
7 1998 10.76 121.8073097 1310.64665 1.22713 1136.79843 1.54403 1126.60532
8 1998 10.91 121.8073097 1328.91775 1.23153 1151.41446 1.54912 1140.76166
9 1998 11.11 121.8073097 1353.27921 1.24737 1171.27460 1.56859 1160.10530
10 1998 11.07 121.8073097 1348.40692 1.26888 1165.78871 1.59518 1154.33332
11 1998 11.11 121.8073097 1353.27921 1.26294 1168.73820 1.58725 1156.91710
12 1998 11.15 121.8073097 1358.15150 1.26613 1171.67994 1.59080 1159.49162
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.80%
GROSS ANNUAL RETURN = 6.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1171.68 1121.88
TOTAL RETURN 17.17% 12.19%
AVERAGE ANNUAL RETURN 5.42% 3.91%
WITH DEATH BENEFIT CHARGE
ERV 1159.49 1110.21
TOTAL RETURN 15.95% 11.02%
AVERAGE ANNUAL RETURN 5.06% 3.55%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 10.67 119.6905806 1277.09850 1.30193 1215.30347 1.63103 1199.17058
2 1998 10.67 119.6905806 1277.09850 1.31658 1213.98689 1.64890 1197.52169
3 1998 10.52 121.8073097 1281.41290 1.31515 1216.77293 1.64663 1199.92062
4 1998 10.57 121.8073097 1287.50326 1.31817 1221.23790 1.64993 1203.97374
5 1998 10.66 121.8073097 1298.46592 1.32301 1230.31333 1.65550 1212.56966
6 1998 10.71 121.8073097 1304.55629 1.33284 1234.75119 1.66732 1216.58982
7 1998 10.76 121.8073097 1310.64665 1.33765 1239.17802 1.67285 1220.59666
8 1998 10.91 121.8073097 1328.91775 1.34244 1255.11036 1.67836 1235.93405
9 1998 11.11 121.8073097 1353.27921 1.35970 1276.75910 1.69945 1256.89150
10 1998 11.07 121.8073097 1348.40692 1.38316 1270.77915 1.72827 1250.63797
11 1998 11.11 121.8073097 1353.27921 1.37668 1273.99427 1.71967 1253.43732
12 1998 11.15 121.8073097 1358.15150 1.38016 1277.20095 1.72352 1256.22663
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 35.82%
GROSS ANNUAL RETURN = 6.64%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1277.20 1244.63
TOTAL RETURN 27.72% 24.46%
AVERAGE ANNUAL RETURN 5.27% 4.70%
WITH DEATH BENEFIT CHARGE
ERV 1256.23 1224.19
TOTAL RETURN 25.62% 22.42%
AVERAGE ANNUAL RETURN 4.91% 4.34%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 10.67 119.6905806 1277.09850 1.25937 1175.57744 1.58461 1165.04795
2 1998 10.67 119.6905806 1277.09850 1.27354 1174.30390 1.60198 1163.44597
3 1998 10.52 121.8073097 1281.41290 1.27216 1176.99887 1.59978 1165.77665
4 1998 10.57 121.8073097 1287.50326 1.27508 1181.31789 1.60298 1169.71443
5 1998 10.66 121.8073097 1298.46592 1.27976 1190.09666 1.60840 1178.06576
6 1998 10.71 121.8073097 1304.55629 1.28927 1194.38945 1.61988 1181.97152
7 1998 10.76 121.8073097 1310.64665 1.29392 1198.67158 1.62525 1185.86434
8 1998 10.91 121.8073097 1328.91775 1.29856 1214.08312 1.63060 1200.76530
9 1998 11.11 121.8073097 1353.27921 1.31526 1235.02420 1.65109 1221.12641
10 1998 11.07 121.8073097 1348.40692 1.33794 1229.23973 1.67909 1215.05082
11 1998 11.11 121.8073097 1353.27921 1.33168 1232.34975 1.67074 1217.77052
12 1998 11.15 121.8073097 1358.15150 1.33505 1235.45161 1.67448 1220.48045
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 29.26%
GROSS ANNUAL RETURN = 7.43%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1235.45 1193.45
TOTAL RETURN 23.55% 19.34%
AVERAGE ANNUAL RETURN 6.08% 5.06%
WITH DEATH BENEFIT CHARGE
ERV 1220.48 1178.98
TOTAL RETURN 22.05% 17.90%
AVERAGE ANNUAL RETURN 5.72% 4.70%
Federated Prime Money
12/1998
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
1/98 0.0042412960 1.00 0.493 116.661888
2/98 0.0037723400 1.00 0.440 117.101977
3/98 0.0041885600 1.00 0.490 117.592465
4/98 0.0040065850 1.00 0.471 118.063609
5/98 0.0041321570 1.00 0.488 118.551467
6/98 0.0040199110 1.00 0.477 119.028033
7/98 0.0041630600 1.00 0.496 119.523554
8/98 0.0041412200 1.00 0.495 120.018527
9/98 0.0039845110 1.00 0.478 120.496742
10/98 0.0039935070 1.00 0.481 120.977947
11/98 0.0037441480 1.00 0.453 121.430906
12/98 0.0037968280 1.00 0.461 121.891959
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 1.00 116.1691804 116.16918 1000.00000 1000.00000
1 1998 1.00 116.6618882 116.66189 1.08333 1003.15796 1.37503 1002.86626
2 1998 1.00 117.1019765 117.10198 1.08675 1005.85546 1.37897 1005.27044
3 1998 1.00 117.5924652 117.59247 1.08968 1008.97887 1.38228 1008.09880
4 1998 1.00 118.0636094 118.06361 1.09306 1011.92837 1.38617 1010.75166
5 1998 1.00 118.5514668 118.55147 1.09626 1015.01356 1.38982 1013.53843
6 1998 1.00 119.0280331 119.02803 1.09960 1017.99423 1.39365 1016.21911
7 1998 1.00 119.5235540 119.52355 1.10283 1021.12937 1.39734 1019.05236
8 1998 1.00 120.0185273 120.01853 1.10622 1024.25187 1.40123 1021.87125
9 1998 1.00 120.4967424 120.49674 1.10961 1027.22341 1.40511 1024.53780
10 1998 1.00 120.9779470 120.97795 1.11283 1030.21280 1.40877 1027.22052
11 1998 1.00 121.4309064 121.43091 1.11606 1032.95401 1.41246 1029.65413
12 1998 1.00 121.8919586 121.89196 1.11903 1035.75692 1.41581 1032.14774
</TABLE>
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 1035.76 974.13
TOTAL RETURN 3.58% -2.59%
WITH DEATH BENEFIT CHARGE
ERV 1032.15 970.73
TOTAL RETURN 3.21% -2.93%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 1.00 116.1691804 116.16918 1000.00000 1000.00000
1 1998 1.00 116.6618882 116.66189 1.08333 1003.15796 1.37503 1002.86626
2 1998 1.00 117.1019765 117.10198 1.08675 1005.85546 1.37897 1005.27044
3 1998 1.00 117.5924652 117.59247 1.08968 1008.97887 1.38228 1008.09880
4 1998 1.00 118.0636094 118.06361 1.09306 1011.92837 1.38617 1010.75166
5 1998 1.00 118.5514668 118.55147 1.09626 1015.01356 1.38982 1013.53843
6 1998 1.00 119.0280331 119.02803 1.09960 1017.99423 1.39365 1016.21911
7 1998 1.00 119.5235540 119.52355 1.10283 1021.12937 1.39734 1019.05236
8 1998 1.00 120.0185273 120.01853 1.10622 1024.25187 1.40123 1021.87125
9 1998 1.00 120.4967424 120.49674 1.10961 1027.22341 1.40511 1024.53780
10 1998 1.00 120.9779470 120.97795 1.11283 1030.21280 1.40877 1027.22052
11 1998 1.00 121.4309064 121.43091 1.11606 1032.95401 1.41246 1029.65413
12 1998 1.00 121.8919586 121.89196 1.11903 1035.75692 1.41581 1032.14774
</TABLE>
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 1035.76 974.13
TOTAL RETURN 3.58% -2.59%
WITH DEATH BENEFIT CHARGE
ERV 1032.15 970.73
TOTAL RETURN 3.21% -2.93%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 1.00 105.7268168 105.72682 1000.00000 1000.00000
1 1996 1.00 106.1459631 106.14596 1.08333 1002.88109 1.37503 1002.58939
2 1996 1.00 106.5330109 106.53301 1.08645 1005.45152 1.37859 1004.86662
3 1996 1.00 106.9463917 106.94639 1.08924 1008.26374 1.38173 1007.38408
4 1996 1.00 107.3477820 107.34778 1.09229 1010.95566 1.38519 1009.77980
5 1996 1.00 107.7642101 107.76421 1.09520 1013.78220 1.38848 1012.30850
6 1996 1.00 108.1698337 108.16983 1.09826 1016.49981 1.39196 1014.72686
7 1996 1.00 108.5943585 108.59436 1.10121 1019.38797 1.39528 1017.31399
8 1996 1.00 109.0227357 109.02274 1.10434 1022.30486 1.39884 1019.92820
9 1996 1.00 109.4111888 109.41119 1.10750 1024.83988 1.40244 1022.15981
10 1996 1.00 109.8418646 109.84186 1.11024 1027.76372 1.40550 1024.77784
11 1996 1.00 110.2667053 110.26671 1.11341 1030.62544 1.40910 1027.33232
12 1996 1.00 110.7072287 110.70723 1.11651 1033.62635 1.41262 1030.02397
1 1997 1.00 111.1442573 111.14426 1.11976 1036.58694 1.41632 1032.67378
2 1997 1.00 111.5344310 111.53443 1.12297 1039.10293 1.41996 1034.87904
3 1997 1.00 111.9752700 111.97527 1.12569 1042.08428 1.42299 1037.54640
4 1997 1.00 112.4109707 112.41097 1.12892 1045.01015 1.42666 1040.15688
5 1997 1.00 112.8699002 112.86990 1.13209 1048.14442 1.43025 1042.97317
6 1997 1.00 113.3232120 113.32321 1.13549 1051.21852 1.43412 1045.72788
7 1997 1.00 113.7942645 113.79426 1.13882 1054.44932 1.43791 1048.63676
8 1997 1.00 114.2678375 114.26784 1.14232 1057.69526 1.44191 1051.55892
9 1997 1.00 114.7279210 114.72792 1.14584 1060.80808 1.44593 1054.34695
10 1997 1.00 115.2063882 115.20639 1.14921 1064.08292 1.44976 1057.29429
11 1997 1.00 115.6752649 115.67526 1.15276 1067.26086 1.45381 1060.14354
12 1997 1.00 116.1691804 116.16918 1.15620 1070.66170 1.45773 1063.21245
1 1998 1.00 116.6618882 116.66189 1.15988 1074.04281 1.46195 1066.25990
2 1998 1.00 117.1019765 117.10198 1.16355 1076.93092 1.46614 1068.81605
3 1998 1.00 117.5924652 117.59247 1.16668 1080.27503 1.46966 1071.82319
4 1998 1.00 118.0636094 118.06361 1.17030 1083.43295 1.47379 1074.64375
5 1998 1.00 118.5514668 118.55147 1.17372 1086.73614 1.47767 1077.60668
6 1998 1.00 119.0280331 119.02803 1.17730 1089.92743 1.48175 1080.45681
7 1998 1.00 119.5235540 119.52355 1.18075 1093.28411 1.48566 1083.46916
8 1998 1.00 120.0185273 120.01853 1.18439 1096.62725 1.48981 1086.46624
9 1998 1.00 120.4967424 120.49674 1.18801 1099.80876 1.49393 1089.30134
10 1998 1.00 120.9779470 120.97795 1.19146 1103.00939 1.49783 1092.15365
11 1998 1.00 121.4309064 121.43091 1.19493 1105.94430 1.50175 1094.74109
12 1998 1.00 121.8919586 121.89196 1.19811 1108.94527 1.50531 1097.39233
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.29%
GROSS ANNUAL RETURN = 4.86%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1108.95 1061.82
TOTAL RETURN 10.89% 6.18%
AVERAGE ANNUAL RETURN 3.51% 2.02%
WITH DEATH BENEFIT CHARGE
ERV 1097.39 1050.75
TOTAL RETURN 9.74% 5.08%
AVERAGE ANNUAL RETURN 3.15% 1.66%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 1.00 116.6618882 116.66189 1.20791 1118.51691 1.51630 1105.89868
2 1998 1.00 117.1019765 117.10198 1.21173 1121.52461 1.52065 1108.54986
3 1998 1.00 117.5924652 117.59247 1.21498 1125.00720 1.52429 1111.66880
4 1998 1.00 118.0636094 118.06361 1.21876 1128.29587 1.52858 1114.59421
5 1998 1.00 118.5514668 118.55147 1.22232 1131.73585 1.53260 1117.66728
6 1998 1.00 119.0280331 119.02803 1.22605 1135.05928 1.53683 1120.62338
7 1998 1.00 119.5235540 119.52355 1.22965 1138.55495 1.54089 1123.74770
8 1998 1.00 120.0185273 120.01853 1.23343 1142.03652 1.54519 1126.85620
9 1998 1.00 120.4967424 120.49674 1.23721 1145.34978 1.54946 1129.79671
10 1998 1.00 120.9779470 120.97795 1.24080 1148.68294 1.55351 1132.75505
11 1998 1.00 121.4309064 121.43091 1.24441 1151.73937 1.55758 1135.43868
12 1998 1.00 121.8919586 121.89196 1.24772 1154.86461 1.56127 1138.18848
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 21.89%
GROSS ANNUAL RETURN = 4.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1154.86 1125.42
TOTAL RETURN 15.49% 12.54%
AVERAGE ANNUAL RETURN 3.57% 2.92%
WITH DEATH BENEFIT CHARGE
ERV 1138.19 1109.16
TOTAL RETURN 13.82% 10.92%
AVERAGE ANNUAL RETURN 3.20% 2.55%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 1.00 116.6618882 116.66189 1.18208 1094.59779 1.48733 1084.77142
2 1998 1.00 117.1019765 117.10198 1.18581 1097.54117 1.49160 1087.37195
3 1998 1.00 117.5924652 117.59247 1.18900 1100.94928 1.49517 1090.43130
4 1998 1.00 118.0636094 118.06361 1.19270 1104.16763 1.49938 1093.30083
5 1998 1.00 118.5514668 118.55147 1.19618 1107.53405 1.50333 1096.31519
6 1998 1.00 119.0280331 119.02803 1.19983 1110.78641 1.50747 1099.21481
7 1998 1.00 119.5235540 119.52355 1.20335 1114.20732 1.51146 1102.27945
8 1998 1.00 120.0185273 120.01853 1.20706 1117.61444 1.51567 1105.32856
9 1998 1.00 120.4967424 120.49674 1.21075 1120.85684 1.51986 1108.21289
10 1998 1.00 120.9779470 120.97795 1.21426 1124.11873 1.52383 1111.11472
11 1998 1.00 121.4309064 121.43091 1.21780 1127.10980 1.52782 1113.74708
12 1998 1.00 121.8919586 121.89196 1.22104 1130.16821 1.53144 1116.44435
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.26%
GROSS ANNUAL RETURN = 4.79%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1130.17 1091.74
TOTAL RETURN 13.02% 9.17%
AVERAGE ANNUAL RETURN 3.47% 2.48%
WITH DEATH BENEFIT CHARGE
ERV 1116.44 1078.49
TOTAL RETURN 11.64% 7.85%
AVERAGE ANNUAL RETURN 3.12% 2.13%
Fidelity Asset Manager Growth
12/1998
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
2/98 1.9300000000 14.91 14.613 127.505258
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 16.36 112.8921255 1846.91517 1000.00000 1000.00000
1 1998 16.36 112.8921255 1846.91517 1.08333 998.91667 1.37503 998.62497
2 1998 15.37 127.5052578 1959.75581 1.08216 1058.86514 1.37314 1058.26463
3 1998 15.94 127.5052578 2032.43381 1.14710 1096.98629 1.45515 1096.05547
4 1998 15.89 127.5052578 2026.05855 1.18840 1092.35690 1.50711 1091.11029
5 1998 15.73 127.5052578 2005.65771 1.18339 1080.17433 1.50031 1078.62334
6 1998 16.10 127.5052578 2052.83465 1.17019 1104.41193 1.48314 1102.51151
7 1998 15.96 127.5052578 2034.98391 1.19645 1093.61190 1.51599 1091.40846
8 1998 13.95 127.5052578 1778.69835 1.18475 954.69783 1.50072 952.45592
9 1998 14.47 127.5052578 1845.00108 1.03426 989.25088 1.30966 986.64999
10 1998 15.39 127.5052578 1962.30592 1.07169 1051.07559 1.35668 1048.02435
11 1998 16.16 127.5052578 2060.48497 1.13867 1102.52485 1.44107 1099.01854
12 1998 17.03 127.5052578 2171.41454 1.19440 1160.68667 1.51119 1156.67481
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1160.69 1091.63
TOTAL RETURN 16.07% 9.16%
WITH DEATH BENEFIT CHARGE
ERV 1156.67 1087.85
TOTAL RETURN 15.67% 8.79%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 16.36 112.8921255 1846.91517 1000.00000 1000.00000
1 1998 16.36 112.8921255 1846.91517 1.08333 998.91667 1.37503 998.62497
2 1998 15.37 127.5052578 1959.75581 1.08216 1058.86514 1.37314 1058.26463
3 1998 15.94 127.5052578 2032.43381 1.14710 1096.98629 1.45515 1096.05547
4 1998 15.89 127.5052578 2026.05855 1.18840 1092.35690 1.50711 1091.11029
5 1998 15.73 127.5052578 2005.65771 1.18339 1080.17433 1.50031 1078.62334
6 1998 16.10 127.5052578 2052.83465 1.17019 1104.41193 1.48314 1102.51151
7 1998 15.96 127.5052578 2034.98391 1.19645 1093.61190 1.51599 1091.40846
8 1998 13.95 127.5052578 1778.69835 1.18475 954.69783 1.50072 952.45592
9 1998 14.47 127.5052578 1845.00108 1.03426 989.25088 1.30966 986.64999
10 1998 15.39 127.5052578 1962.30592 1.07169 1051.07559 1.35668 1048.02435
11 1998 16.16 127.5052578 2060.48497 1.13867 1102.52485 1.44107 1099.01854
12 1998 17.03 127.5052578 2171.41454 1.19440 1160.68667 1.51119 1156.67481
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 17.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1160.69 1091.63
TOTAL RETURN 16.07% 9.16%
WITH DEATH BENEFIT CHARGE
ERV 1156.67 1087.85
TOTAL RETURN 15.67% 8.79%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.78 104.5221843 1231.27133 1000.00000 1000.00000
1 1996 12.05 104.5221843 1259.49232 1.08333 1021.83687 1.37503 1021.54517
2 1996 11.67 108.3000946 1263.86210 1.10699 1024.27512 1.40466 1023.68474
3 1996 11.88 108.3000946 1286.60512 1.10963 1041.59718 1.40760 1040.69820
4 1996 12.16 108.3000946 1316.92915 1.12840 1065.01821 1.43099 1063.79545
5 1996 12.35 108.3000946 1337.50617 1.15377 1080.50535 1.46275 1078.95450
6 1996 12.40 108.3000946 1342.92117 1.17055 1083.70932 1.48360 1081.83914
7 1996 12.09 108.3000946 1309.34814 1.17402 1055.44257 1.48756 1053.30559
8 1996 12.18 108.3000946 1319.09515 1.14340 1062.15606 1.44833 1059.69825
9 1996 12.68 108.3000946 1373.24520 1.15067 1104.60786 1.45712 1101.74270
10 1996 13.05 108.3000946 1413.31623 1.19666 1135.64345 1.51493 1132.37641
11 1996 13.90 108.3000946 1505.37131 1.23028 1208.38228 1.55706 1204.57567
12 1996 13.10 112.7271991 1476.72631 1.30908 1184.07946 1.65633 1179.99803
1 1997 13.66 112.7271991 1539.85354 1.28275 1233.41384 1.62254 1228.81816
2 1997 13.77 112.8921255 1554.52457 1.33620 1243.82906 1.68967 1238.83612
3 1997 13.12 112.8921255 1481.14469 1.34748 1183.76778 1.70344 1178.65457
4 1997 13.67 112.8921255 1543.23536 1.28242 1232.10978 1.62069 1226.44395
5 1997 14.50 112.8921255 1636.93582 1.33479 1305.58488 1.68640 1299.22342
6 1997 14.93 112.8921255 1685.47943 1.41438 1342.88784 1.78648 1335.96564
7 1997 15.94 112.8921255 1799.50048 1.45480 1432.27810 1.83700 1424.50542
8 1997 15.44 112.8921255 1743.05442 1.55163 1385.79930 1.95874 1377.86332
9 1997 16.01 112.8921255 1807.40293 1.50128 1435.45771 1.89461 1426.83543
10 1997 15.63 112.8921255 1764.50392 1.55508 1399.83180 1.96195 1391.00731
11 1997 16.08 112.8921255 1815.30538 1.51648 1438.61758 1.91268 1429.14282
12 1997 16.36 112.8921255 1846.91517 1.55850 1462.10963 1.96512 1452.06327
1 1998 16.36 112.8921255 1846.91517 1.58395 1460.52568 1.99664 1450.06664
2 1998 15.37 127.5052578 1959.75581 1.58224 1548.17691 1.99389 1536.66720
3 1998 15.94 127.5052578 2032.43381 1.67719 1603.91422 2.11297 1591.54189
4 1998 15.89 127.5052578 2026.05855 1.73757 1597.14555 2.18842 1584.36118
5 1998 15.73 127.5052578 2005.65771 1.73024 1579.33329 2.17855 1566.22934
6 1998 16.10 127.5052578 2052.83465 1.71094 1614.77131 2.15362 1600.91646
7 1998 15.96 127.5052578 2034.98391 1.74934 1598.98049 2.20131 1584.79414
8 1998 13.95 127.5052578 1778.69835 1.73223 1395.87290 2.17914 1383.02626
9 1998 14.47 127.5052578 1845.00108 1.51220 1446.39324 1.90171 1432.67822
10 1998 15.39 127.5052578 1962.30592 1.56693 1536.78774 1.96998 1521.79766
11 1998 16.16 127.5052578 2060.48497 1.66485 1612.01220 2.09252 1595.84446
12 1998 17.03 127.5052578 2171.41454 1.74635 1697.05116 2.19434 1679.56502
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 76.36%
GROSS ANNUAL RETURN = 20.82%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1697.05 1624.93
TOTAL RETURN 69.71% 62.49%
AVERAGE ANNUAL RETURN 19.28% 17.56%
WITH DEATH BENEFIT CHARGE
ERV 1679.57 1608.18
TOTAL RETURN 67.96% 60.82%
AVERAGE ANNUAL RETURN 18.87% 17.16%
<TABLE>
<CAPTION>
Return for Inception
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 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
1 1998 16.36 112.8921255 1846.91517 1.92550 1775.45644 2.41882 1756.67968
2 1998 15.37 127.5052578 1959.75581 1.92341 1882.00776 2.41549 1861.59173
3 1998 15.94 127.5052578 2032.43381 2.03884 1949.76362 2.55975 1928.06954
4 1998 15.89 127.5052578 2026.05855 2.11224 1941.53543 2.65116 1919.37048
5 1998 15.73 127.5052578 2005.65771 2.10333 1919.88234 2.63920 1897.40471
6 1998 16.10 127.5052578 2052.83465 2.07987 1962.96181 2.60899 1939.42634
7 1998 15.96 127.5052578 2034.98391 2.12654 1943.76603 2.66678 1919.89498
8 1998 13.95 127.5052578 1778.69835 2.10575 1696.86268 2.63992 1675.46378
9 1998 14.47 127.5052578 1845.00108 1.83827 1758.27665 2.30382 1735.61452
10 1998 15.39 127.5052578 1962.30592 1.90480 1868.16276 2.38653 1843.57806
11 1998 16.16 127.5052578 2060.48497 2.02384 1959.60775 2.53498 1933.28187
12 1998 17.03 127.5052578 2171.41454 2.12291 2062.98352 2.65833 2034.70493
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 117.14%
GROSS ANNUAL RETURN = 21.44%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2062.98 1992.84
TOTAL RETURN 106.30% 99.28%
AVERAGE ANNUAL RETURN 19.89% 18.86%
WITH DEATH BENEFIT CHARGE
ERV 2034.70 1965.52
TOTAL RETURN 103.47% 96.55%
AVERAGE ANNUAL RETURN 19.48% 18.45%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 16.36 112.8921255 1846.91517 1.73641 1601.10287 2.18504 1586.89822
2 1998 15.37 127.5052578 1959.75581 1.73453 1697.19064 2.18204 1681.67061
3 1998 15.94 127.5052578 2032.43381 1.83862 1758.29272 2.31235 1741.72340
4 1998 15.89 127.5052578 2026.05855 1.90482 1750.87256 2.39493 1733.86510
5 1998 15.73 127.5052578 2005.65771 1.89678 1731.34585 2.38412 1714.02230
6 1998 16.10 127.5052578 2052.83465 1.87562 1770.19482 2.35684 1751.98257
7 1998 15.96 127.5052578 2034.98391 1.91771 1752.88411 2.40903 1734.33891
8 1998 13.95 127.5052578 1778.69835 1.89896 1530.22719 2.38477 1513.53175
9 1998 14.47 127.5052578 1845.00108 1.65775 1585.61017 2.08116 1567.86899
10 1998 15.39 127.5052578 1962.30592 1.71774 1684.70524 2.15587 1665.39794
11 1998 16.16 127.5052578 2060.48497 1.82510 1767.17014 2.28998 1746.43197
12 1998 17.03 127.5052578 2171.41454 1.91443 1860.39419 2.40140 1838.05258
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 94.57%
GROSS ANNUAL RETURN = 20.41%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1860.39 1797.14
TOTAL RETURN 86.04% 79.71%
AVERAGE ANNUAL RETURN 18.91% 17.77%
WITH DEATH BENEFIT CHARGE
ERV 1838.05 1775.56
TOTAL RETURN 83.81% 77.56%
AVERAGE ANNUAL RETURN 18.51% 17.38%
Fidelity Contrafund
12/1998
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
2/98 1.1700000000 19.35 6.376 111.820128
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 19.94 105.4444186 2102.56171 1000.00000 1000.00000
1 1998 19.92 105.4444186 2100.45282 1.08333 997.91366 1.37503 997.62196
2 1998 20.15 111.8201276 2253.17557 1.08107 1069.39033 1.37176 1068.78673
3 1998 21.13 111.8201276 2362.75930 1.15851 1120.24187 1.46962 1119.29781
4 1998 21.33 111.8201276 2385.12332 1.21360 1129.63161 1.53907 1128.35313
5 1998 20.83 111.8201276 2329.21326 1.22377 1101.92796 1.55152 1100.35170
6 1998 21.95 111.8201276 2454.45180 1.19376 1159.98334 1.51302 1158.00305
7 1998 21.98 111.8201276 2457.80641 1.25665 1160.31209 1.59229 1157.99345
8 1998 18.69 111.8201276 2089.91819 1.25700 985.37779 1.59228 983.07094
9 1998 19.78 111.8201276 2211.80212 1.06749 1041.77749 1.35176 1039.05184
10 1998 20.43 111.8201276 2284.48521 1.12859 1074.88325 1.42873 1071.76789
11 1998 21.79 111.8201276 2436.56058 1.16446 1145.27245 1.47372 1141.64044
12 1998 24.44 111.8201276 2732.88392 1.24071 1283.31453 1.56979 1278.91173
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 29.98%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1283.31 1206.96
TOTAL RETURN 28.33% 20.70%
WITH DEATH BENEFIT CHARGE
ERV 1278.91 1202.82
TOTAL RETURN 27.89% 20.28%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 19.94 105.4444186 2102.56171 1000.00000 1000.00000
1 1998 19.92 105.4444186 2100.45282 1.08333 997.91366 1.37503 997.62196
2 1998 20.15 111.8201276 2253.17557 1.08107 1069.39033 1.37176 1068.78673
3 1998 21.13 111.8201276 2362.75930 1.15851 1120.24187 1.46962 1119.29781
4 1998 21.33 111.8201276 2385.12332 1.21360 1129.63161 1.53907 1128.35313
5 1998 20.83 111.8201276 2329.21326 1.22377 1101.92796 1.55152 1100.35170
6 1998 21.95 111.8201276 2454.45180 1.19376 1159.98334 1.51302 1158.00305
7 1998 21.98 111.8201276 2457.80641 1.25665 1160.31209 1.59229 1157.99345
8 1998 18.69 111.8201276 2089.91819 1.25700 985.37779 1.59228 983.07094
9 1998 19.78 111.8201276 2211.80212 1.06749 1041.77749 1.35176 1039.05184
10 1998 20.43 111.8201276 2284.48521 1.12859 1074.88325 1.42873 1071.76789
11 1998 21.79 111.8201276 2436.56058 1.16446 1145.27245 1.47372 1141.64044
12 1998 24.44 111.8201276 2732.88392 1.24071 1283.31453 1.56979 1278.91173
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 29.98%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1283.31 1206.96
TOTAL RETURN 28.33% 20.70%
WITH DEATH BENEFIT CHARGE
ERV 1278.91 1202.82
TOTAL RETURN 27.89% 20.28%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 13.78 101.3196481 1396.18475 1000.00000 1000.00000
1 1996 13.89 101.3196481 1407.32991 1.08333 1006.89925 1.37503 1006.60755
2 1996 13.81 102.2754938 1412.42457 1.09081 1009.45351 1.38412 1008.86744
3 1996 14.26 102.2754938 1458.44854 1.09357 1041.25306 1.38723 1040.35424
4 1996 14.73 102.2754938 1506.51802 1.12802 1074.44403 1.43052 1073.21310
5 1996 14.90 102.2754938 1523.90486 1.16398 1085.68029 1.47570 1084.12342
6 1996 14.78 102.2754938 1511.63180 1.17615 1075.76040 1.49071 1073.90152
7 1996 14.09 102.2754938 1441.06171 1.16541 1024.37343 1.47665 1022.29009
8 1996 14.63 102.2754938 1496.29047 1.10974 1062.52286 1.40568 1060.06373
9 1996 15.25 102.2754938 1559.70128 1.15107 1106.40011 1.45762 1103.53020
10 1996 15.72 102.2754938 1607.77076 1.19860 1139.30039 1.51739 1136.02325
11 1996 16.66 102.2754938 1703.90973 1.23424 1206.19226 1.56207 1202.39132
12 1996 16.56 102.2754938 1693.68218 1.30671 1197.64550 1.65333 1193.52076
1 1997 17.20 102.2754938 1759.13849 1.29745 1242.63387 1.64113 1238.00604
2 1997 16.22 105.4444186 1710.30847 1.34619 1206.79475 1.70230 1201.93927
3 1997 15.80 105.4444186 1666.02181 1.30736 1174.23870 1.65271 1169.16359
4 1997 16.18 105.4444186 1706.09069 1.27209 1201.20779 1.60764 1195.67508
5 1997 17.18 105.4444186 1811.53511 1.30131 1274.14676 1.64409 1267.92932
6 1997 17.93 105.4444186 1890.61843 1.38033 1328.38984 1.74345 1321.53786
7 1997 19.47 105.4444186 2053.00283 1.43909 1441.04558 1.81716 1433.22702
8 1997 18.92 105.4444186 1995.00840 1.56113 1398.77695 1.97073 1390.76964
9 1997 20.20 105.4444186 2129.97726 1.51534 1491.89345 1.91235 1482.94741
10 1997 19.59 105.4444186 2065.65616 1.61622 1445.22501 2.03910 1436.12623
11 1997 19.58 105.4444186 2064.60172 1.56566 1442.92161 1.97472 1433.41842
12 1997 19.94 105.4444186 2102.56171 1.56317 1467.88816 1.97100 1457.80241
1 1998 19.92 105.4444186 2100.45282 1.59021 1464.82564 2.00453 1454.33569
2 1998 20.15 111.8201276 2253.17557 1.58689 1569.74540 1.99976 1558.07987
3 1998 21.13 111.8201276 2362.75930 1.70056 1644.38978 2.14241 1631.71504
4 1998 21.33 111.8201276 2385.12332 1.78142 1658.17286 2.24366 1644.91591
5 1998 20.83 111.8201276 2329.21326 1.79635 1617.50701 2.26181 1604.09536
6 1998 21.95 111.8201276 2454.45180 1.75230 1702.72580 2.20568 1688.13964
7 1998 21.98 111.8201276 2457.80641 1.84462 1703.20837 2.32125 1688.12564
8 1998 18.69 111.8201276 2089.91819 1.84514 1446.42440 2.32123 1433.12319
9 1998 19.78 111.8201276 2211.80212 1.56696 1529.21285 1.97059 1514.73228
10 1998 20.43 111.8201276 2284.48521 1.65665 1577.80839 2.08281 1562.42581
11 1998 21.79 111.8201276 2436.56058 1.70929 1681.13186 2.14839 1664.28619
12 1998 24.44 111.8201276 2732.88392 1.82123 1883.76219 2.28845 1864.40060
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 95.74%
GROSS ANNUAL RETURN = 25.09%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1883.76 1803.70
TOTAL RETURN 88.38% 80.37%
AVERAGE ANNUAL RETURN 23.50% 21.73%
WITH DEATH BENEFIT CHARGE
ERV 1864.40 1785.16
TOTAL RETURN 86.44% 78.52%
AVERAGE ANNUAL RETURN 23.08% 21.31%
<TABLE>
<CAPTION>
Return for Inception
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 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
1 1998 19.92 105.4444186 2100.45282 2.19231 2019.44793 2.75409 1998.16106
2 1998 20.15 111.8201276 2253.17557 2.18774 2164.09313 2.74754 2140.69870
3 1998 21.13 111.8201276 2362.75930 2.34443 2266.99987 2.94353 2241.86855
4 1998 21.33 111.8201276 2385.12332 2.45592 2286.00160 3.08264 2260.00568
5 1998 20.83 111.8201276 2329.21326 2.47650 2229.93856 3.10758 2203.92094
6 1998 21.95 111.8201276 2454.45180 2.41577 2347.42347 3.03046 2319.39222
7 1998 21.98 111.8201276 2457.80641 2.54304 2348.08876 3.18924 2319.37299
8 1998 18.69 111.8201276 2089.91819 2.54376 1994.07948 3.18922 1969.01648
9 1998 19.78 111.8201276 2211.80212 2.16025 2108.21386 2.70746 2081.14197
10 1998 20.43 111.8201276 2284.48521 2.28390 2175.20898 2.86164 2146.66973
11 1998 21.79 111.8201276 2436.56058 2.35648 2317.65349 2.95174 2286.61916
12 1998 24.44 111.8201276 2732.88392 2.51079 2597.00510 3.14418 2561.56313
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 173.29%
GROSS ANNUAL RETURN = 28.64%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2597.01 2508.71
TOTAL RETURN 159.70% 150.87%
AVERAGE ANNUAL RETURN 27.01% 25.91%
WITH DEATH BENEFIT CHARGE
ERV 2561.56 2474.47
TOTAL RETURN 156.16% 147.45%
AVERAGE ANNUAL RETURN 26.57% 25.48%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 19.92 105.4444186 2100.45282 1.76488 1625.71660 2.22087 1611.29901
2 1998 20.15 111.8201276 2253.17557 1.76119 1742.16035 2.21559 1726.24007
3 1998 21.13 111.8201276 2362.75930 1.88734 1825.00339 2.37364 1807.82253
4 1998 21.33 111.8201276 2385.12332 1.97709 1840.30035 2.48582 1822.44814
5 1998 20.83 111.8201276 2329.21326 1.99366 1795.16792 2.50593 1777.22191
6 1998 21.95 111.8201276 2454.45180 1.94477 1889.74682 2.44374 1870.33691
7 1998 21.98 111.8201276 2457.80641 2.04723 1890.28239 2.57178 1870.32141
8 1998 18.69 111.8201276 2089.91819 2.04781 1605.29423 2.57175 1587.79708
9 1998 19.78 111.8201276 2211.80212 1.73907 1697.17585 2.18327 1678.21407
10 1998 20.43 111.8201276 2284.48521 1.83861 1751.10895 2.30760 1731.05506
11 1998 21.79 111.8201276 2436.56058 1.89703 1865.78108 2.38026 1843.90901
12 1998 24.44 111.8201276 2732.88392 2.02126 2090.66757 2.53544 2065.62134
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 118.63%
GROSS ANNUAL RETURN = 24.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2090.67 2019.58
TOTAL RETURN 109.07% 101.96%
AVERAGE ANNUAL RETURN 22.85% 21.67%
WITH DEATH BENEFIT CHARGE
ERV 2065.62 1995.39
TOTAL RETURN 106.56% 99.54%
AVERAGE ANNUAL RETURN 22.44% 21.26%
Fidelity Equity Income Fund
12/1998
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
2/98 1.5500000000 23.41 12.682 204.214488
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 24.28 191.5328996 4650.41880 1000.00000 1000.00000
1 1998 24.22 191.5328996 4638.92683 1.08333 996.44550 1.37503 996.15380
2 1998 24.18 204.2144884 4937.90633 1.07948 1059.58707 1.36974 1058.98631
3 1998 25.30 204.2144884 5166.62656 1.14789 1107.51849 1.45614 1106.58164
4 1998 25.30 204.2144884 5166.62656 1.19981 1106.31867 1.52159 1105.06005
5 1998 24.89 204.2144884 5082.89862 1.19851 1087.19168 1.51949 1085.63247
6 1998 25.17 204.2144884 5140.07867 1.17779 1098.24425 1.49278 1096.35251
7 1998 24.55 204.2144884 5013.46569 1.18976 1070.00198 1.50752 1067.83909
8 1998 20.80 204.2144884 4247.66136 1.15917 905.40056 1.46831 903.25890
9 1998 22.02 204.2144884 4496.80304 0.98085 957.52493 1.24201 954.99649
10 1998 23.65 204.2144884 4829.67265 1.03732 1027.36707 1.31315 1024.37564
11 1998 24.65 204.2144884 5033.88714 1.11298 1069.69456 1.40855 1066.28107
12 1998 25.42 204.2144884 5191.13230 1.15884 1101.95011 1.46617 1098.12266
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1101.95 1036.38
TOTAL RETURN 10.20% 3.64%
WITH DEATH BENEFIT CHARGE
ERV 1098.12 1032.78
TOTAL RETURN 9.81% 3.28%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 24.28 191.5328996 4650.41880 1000.00000 1000.00000
1 1998 24.22 191.5328996 4638.92683 1.08333 996.44550 1.37503 996.15380
2 1998 24.18 204.2144884 4937.90633 1.07948 1059.58707 1.36974 1058.98631
3 1998 25.30 204.2144884 5166.62656 1.14789 1107.51849 1.45614 1106.58164
4 1998 25.30 204.2144884 5166.62656 1.19981 1106.31867 1.52159 1105.06005
5 1998 24.89 204.2144884 5082.89862 1.19851 1087.19168 1.51949 1085.63247
6 1998 25.17 204.2144884 5140.07867 1.17779 1098.24425 1.49278 1096.35251
7 1998 24.55 204.2144884 5013.46569 1.18976 1070.00198 1.50752 1067.83909
8 1998 20.80 204.2144884 4247.66136 1.15917 905.40056 1.46831 903.25890
9 1998 22.02 204.2144884 4496.80304 0.98085 957.52493 1.24201 954.99649
10 1998 23.65 204.2144884 4829.67265 1.03732 1027.36707 1.31315 1024.37564
11 1998 24.65 204.2144884 5033.88714 1.11298 1069.69456 1.40855 1066.28107
12 1998 25.42 204.2144884 5191.13230 1.15884 1101.95011 1.46617 1098.12266
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 11.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1101.95 1036.38
TOTAL RETURN 10.20% 3.64%
WITH DEATH BENEFIT CHARGE
ERV 1098.12 1032.78
TOTAL RETURN 9.81% 3.28%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 19.27 164.8363940 3176.39731 1000.00000 1000.00000
1 1996 19.83 164.8363940 3268.70569 1.08333 1027.97738 1.37503 1027.68568
2 1996 19.00 172.6149937 3279.68488 1.11364 1030.31659 1.41310 1029.72445
3 1996 19.20 172.6149937 3314.20788 1.11618 1040.04585 1.41591 1039.14775
4 1996 19.45 172.6149937 3357.36163 1.12672 1052.46140 1.42886 1051.24946
5 1996 19.66 172.6149937 3393.61078 1.14017 1062.68457 1.44550 1061.15421
6 1996 19.48 172.6149937 3362.54008 1.15124 1051.80377 1.45912 1049.97953
7 1996 18.53 172.6149937 3198.55583 1.13945 999.36998 1.44376 997.33041
8 1996 18.91 172.6149937 3264.14953 1.08265 1018.78170 1.37136 1016.41159
9 1996 19.72 172.6149937 3403.96768 1.10368 1061.31700 1.39760 1058.55145
10 1996 20.04 172.6149937 3459.20447 1.14976 1077.38942 1.45554 1074.27321
11 1996 21.38 172.6149937 3690.50857 1.16717 1148.26326 1.47716 1144.62869
12 1996 21.03 172.6149937 3630.09332 1.24395 1128.22173 1.57390 1124.31671
1 1997 21.85 172.6149937 3771.63761 1.22224 1170.99102 1.54597 1166.61000
2 1997 19.91 191.5328996 3813.42003 1.26857 1182.69475 1.60413 1177.92964
3 1997 19.17 191.5328996 3671.68569 1.28125 1137.45598 1.61969 1132.52954
4 1997 19.85 191.5328996 3801.92806 1.23224 1176.57168 1.55727 1171.14547
5 1997 21.08 191.5328996 4037.51352 1.27462 1248.20302 1.61036 1242.10482
6 1997 22.06 191.5328996 4225.21577 1.35222 1304.87921 1.70794 1298.14180
7 1997 23.67 191.5328996 4533.58373 1.41362 1398.69930 1.78499 1391.09880
8 1997 22.56 191.5328996 4320.98221 1.51526 1331.59231 1.91281 1323.95069
9 1997 23.80 191.5328996 4558.48301 1.44256 1403.34011 1.82048 1394.90055
10 1997 22.93 191.5328996 4391.84939 1.52029 1350.52126 1.91803 1341.99246
11 1997 23.77 191.5328996 4552.73702 1.46306 1398.53215 1.84528 1389.30869
12 1997 24.28 191.5328996 4650.41880 1.51508 1427.02344 1.91035 1417.20682
1 1998 24.22 191.5328996 4638.92683 1.54594 1421.95108 1.94871 1411.75596
2 1998 24.18 204.2144884 4937.90633 1.54045 1512.05559 1.94121 1500.80262
3 1998 25.30 204.2144884 5166.62656 1.63806 1580.45484 2.06365 1568.25505
4 1998 25.30 204.2144884 5166.62656 1.71216 1578.74268 2.15640 1566.09865
5 1998 24.89 204.2144884 5082.89862 1.71030 1551.44801 2.15344 1538.56574
6 1998 25.17 204.2144884 5140.07867 1.68074 1567.22029 2.11558 1553.75826
7 1998 24.55 204.2144884 5013.46569 1.69782 1526.91791 2.13647 1513.34884
8 1998 20.80 204.2144884 4247.66136 1.65416 1292.02782 2.08091 1280.10467
9 1998 22.02 204.2144884 4496.80304 1.39970 1366.41052 1.76019 1353.42755
10 1998 23.65 204.2144884 4829.67265 1.48028 1466.07689 1.86101 1451.75214
11 1998 24.65 204.2144884 5033.88714 1.58825 1526.47921 1.99621 1511.14080
12 1998 25.42 204.2144884 5191.13230 1.65369 1572.50865 2.07787 1556.26692
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 63.43%
GROSS ANNUAL RETURN = 17.79%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1572.51 1505.68
TOTAL RETURN 57.25% 50.57%
AVERAGE ANNUAL RETURN 16.29% 14.62%
WITH DEATH BENEFIT CHARGE
ERV 1556.27 1490.13
TOTAL RETURN 55.63% 49.01%
AVERAGE ANNUAL RETURN 15.89% 14.22%
<TABLE>
<CAPTION>
Return for 5 Years
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 1993 15.44 142.2348697 2196.10639 1000.00000 1000.00000
1 1994 16.12 142.2348697 2292.82610 1.08333 1042.95812 1.37503 1042.66642
2 1994 14.94 149.5168411 2233.78161 1.12987 1014.97015 1.43370 1014.38214
3 1994 14.22 150.5156176 2140.33208 1.09955 971.40966 1.39481 970.55098
4 1994 14.71 150.5156176 2214.08473 1.05236 1003.83063 1.33454 1002.66018
5 1994 14.85 150.5156176 2235.15692 1.08748 1012.29694 1.37869 1010.82414
6 1994 14.67 151.4211260 2221.34792 1.09665 1004.94622 1.38992 1003.18926
7 1994 15.16 151.4211260 2295.54427 1.08869 1037.42424 1.37942 1035.31787
8 1994 15.94 151.4211260 2413.65275 1.12388 1089.67707 1.42360 1087.16261
9 1994 15.59 152.2841976 2374.11064 1.18048 1070.64475 1.49488 1067.85708
10 1994 15.91 152.2841976 2422.84158 1.15987 1091.46092 1.46834 1088.30755
11 1994 15.39 152.2841976 2343.65380 1.18242 1054.60536 1.49646 1051.24102
12 1994 15.35 153.1776512 2351.27695 1.14249 1056.89316 1.44549 1053.21487
1 1995 15.59 153.1776512 2388.03958 1.14497 1072.27291 1.44821 1068.23387
2 1995 15.39 161.0849025 2479.09665 1.16163 1111.99755 1.46886 1107.49727
3 1995 15.82 162.1174981 2564.69882 1.20466 1149.18969 1.52285 1144.21584
4 1995 16.26 162.1174981 2636.03052 1.24496 1179.90703 1.57333 1174.46646
5 1995 16.75 162.1174981 2715.46809 1.27823 1214.18565 1.61493 1208.24443
6 1995 16.89 163.0836333 2754.48257 1.31537 1230.31509 1.66138 1223.94250
7 1995 17.54 163.0836333 2860.48693 1.33284 1276.33008 1.68296 1269.36212
8 1995 17.76 163.0836333 2896.36533 1.38269 1290.95609 1.74542 1283.53801
9 1995 18.25 163.9738278 2992.52236 1.39854 1332.41627 1.76491 1324.38555
10 1995 18.04 163.9738278 2958.08785 1.44345 1315.64090 1.82107 1307.32497
11 1995 18.82 163.9738278 3085.98744 1.42528 1371.10032 1.79762 1362.05249
12 1995 19.27 164.8363940 3176.39731 1.48536 1409.78395 1.87287 1400.08354
1 1996 19.83 164.8363940 3268.70569 1.52727 1449.22602 1.92516 1438.84581
2 1996 19.00 172.6149937 3279.68488 1.56999 1452.52380 1.97846 1441.70026
3 1996 19.20 172.6149937 3314.20788 1.57357 1466.23996 1.98239 1454.89367
4 1996 19.45 172.6149937 3357.36163 1.58843 1483.74320 2.00053 1471.83707
5 1996 19.66 172.6149937 3393.61078 1.60739 1498.15566 2.02382 1485.70454
6 1996 19.48 172.6149937 3362.54008 1.62300 1482.81607 2.04289 1470.05906
7 1996 18.53 172.6149937 3198.55583 1.60638 1408.89576 2.02138 1396.34589
8 1996 18.91 172.6149937 3264.14953 1.52630 1436.26209 1.92002 1423.06113
9 1996 19.72 172.6149937 3403.96768 1.55595 1496.22768 1.95676 1482.06046
10 1996 20.04 172.6149937 3459.20447 1.62091 1518.88632 2.03788 1504.07224
11 1996 21.38 172.6149937 3690.50857 1.64546 1618.80312 2.06815 1602.57579
12 1996 21.03 172.6149937 3630.09332 1.75370 1590.54890 2.20360 1574.13732
1 1997 21.85 172.6149937 3771.63761 1.72309 1650.84435 2.16449 1633.35146
2 1997 19.91 191.5328996 3813.42003 1.78841 1667.34408 2.24591 1649.19991
3 1997 19.17 191.5328996 3671.68569 1.80629 1603.56720 2.26770 1585.63597
4 1997 19.85 191.5328996 3801.92806 1.73720 1658.71188 2.18030 1639.70150
5 1997 21.08 191.5328996 4037.51352 1.79694 1759.69659 2.25464 1739.05052
6 1997 22.06 191.5328996 4225.21577 1.90634 1839.59777 2.39125 1817.50697
7 1997 23.67 191.5328996 4533.58373 1.99290 1971.86383 2.49913 1947.65454
8 1997 22.56 191.5328996 4320.98221 2.13619 1877.25747 2.67809 1853.64157
9 1997 23.80 191.5328996 4558.48301 2.03370 1978.40637 2.54882 1952.97731
10 1997 22.93 191.5328996 4391.84939 2.14327 1903.94320 2.68541 1878.90155
11 1997 23.77 191.5328996 4552.73702 2.06261 1971.62819 2.58355 1945.14823
12 1997 24.28 191.5328996 4650.41880 2.13593 2011.79475 2.67464 1984.20795
1 1998 24.22 191.5328996 4638.92683 2.17944 2004.64382 2.72835 1976.57628
2 1998 24.18 204.2144884 4937.90633 2.17170 2131.67171 2.71786 2101.24905
3 1998 25.30 204.2144884 5166.62656 2.30931 2228.09988 2.88929 2195.68809
4 1998 25.30 204.2144884 5166.62656 2.41377 2225.68610 3.01914 2192.66894
5 1998 24.89 204.2144884 5082.89862 2.41116 2187.20651 3.01499 2154.12058
6 1998 25.17 204.2144884 5140.07867 2.36947 2209.44202 2.96199 2175.39137
7 1998 24.55 204.2144884 5013.46569 2.39356 2152.62437 2.99124 2118.81480
8 1998 20.80 204.2144884 4247.66136 2.33201 1821.48009 2.91344 1792.25348
9 1998 22.02 204.2144884 4496.80304 1.97327 1926.34363 2.46441 1894.91163
10 1998 23.65 204.2144884 4829.67265 2.08687 2066.85168 2.60557 2032.57427
11 1998 24.65 204.2144884 5033.88714 2.23909 2152.00589 2.79486 2115.72336
12 1998 25.42 204.2144884 5191.13230 2.33134 2216.89746 2.90919 2178.90370
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 136.38%
GROSS ANNUAL RETURN = 18.77%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2216.90 2160.37
TOTAL RETURN 121.69% 116.04%
AVERAGE ANNUAL RETURN 17.26% 16.66%
WITH DEATH BENEFIT CHARGE
ERV 2178.90 2123.34
TOTAL RETURN 117.89% 112.33%
AVERAGE ANNUAL RETURN 16.86% 16.25%
<TABLE>
<CAPTION>
Return for 10 Years
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 1988 11.01 110.4117014 1215.63283 1000.00000 1000.00000
1 1989 11.69 110.4117014 1290.71279 1.08333 1060.67870 1.37503 1060.38700
2 1989 11.68 110.4117014 1289.60867 1.14907 1058.62229 1.45807 1058.02184
3 1989 11.66 112.5129621 1311.90114 1.14684 1075.77504 1.45482 1074.85623
4 1989 12.11 112.5129621 1362.53197 1.16542 1116.12752 1.47796 1114.86072
5 1989 12.47 112.5129621 1403.03664 1.20914 1148.09806 1.53297 1146.46976
6 1989 12.35 113.6840338 1403.99782 1.24377 1147.64081 1.57643 1145.67874
7 1989 13.07 113.6840338 1485.85032 1.24328 1213.30453 1.57535 1210.89600
8 1989 13.28 113.6840338 1509.72397 1.31441 1231.48468 1.66502 1228.68685
9 1989 13.00 114.8270287 1492.75137 1.33411 1216.30600 1.68949 1213.18424
10 1989 12.25 114.8270287 1406.63110 1.31766 1144.81683 1.66817 1141.52467
11 1989 12.32 114.8270287 1414.66899 1.24022 1150.11842 1.56963 1146.47803
12 1989 12.29 116.0678861 1426.47432 1.24596 1158.47013 1.57645 1154.46888
1 1990 11.46 116.0678861 1330.13797 1.25501 1078.97833 1.58743 1074.91487
2 1990 11.14 120.1095357 1338.02023 1.16889 1084.20334 1.47804 1079.80666
3 1990 10.96 122.2834639 1340.22676 1.17455 1084.81675 1.48477 1080.10260
4 1990 10.58 122.2834639 1293.75905 1.17522 1046.02928 1.48518 1041.16861
5 1990 11.28 122.2834639 1379.35747 1.13320 1114.10406 1.43164 1108.62336
6 1990 11.04 123.6977744 1365.62343 1.20695 1101.80416 1.52439 1096.06058
7 1990 10.77 123.6977744 1332.22503 1.19362 1073.66424 1.50712 1067.74763
8 1990 9.91 123.6977744 1225.84494 1.16314 986.76747 1.46819 981.01826
9 1990 9.02 125.3607228 1130.75372 1.06900 909.15296 1.34893 903.56979
10 1990 8.79 125.3607228 1101.92075 0.98492 884.98565 1.24244 879.28733
11 1990 9.42 125.3607228 1180.89801 0.95873 947.45593 1.20905 941.09887
12 1990 9.51 127.0636375 1208.37519 1.02641 968.47496 1.29404 961.70236
1 1991 10.02 127.0636375 1273.17765 1.04918 1019.36292 1.32237 1011.95393
2 1991 10.71 127.0636375 1360.85156 1.10431 1088.45426 1.39147 1080.24791
3 1991 10.70 129.8206787 1389.08126 1.17916 1109.85416 1.48538 1101.17135
4 1991 10.75 129.8206787 1395.57230 1.20234 1113.83805 1.51415 1104.80286
5 1991 11.34 129.8206787 1472.16650 1.20666 1173.76297 1.51914 1163.91942
6 1991 10.76 131.2241455 1411.97181 1.27158 1124.49798 1.60043 1114.72806
7 1991 11.37 131.2241455 1492.01853 1.21821 1187.02919 1.53279 1176.39082
8 1991 11.61 131.2241455 1523.51233 1.28595 1210.79927 1.61758 1199.60471
9 1991 11.41 132.6078799 1513.05591 1.31170 1201.17741 1.64950 1189.72189
10 1991 11.60 132.6078799 1538.25141 1.30128 1219.87821 1.63591 1207.89731
11 1991 11.10 132.6078799 1471.94747 1.32153 1165.97572 1.66090 1154.17187
12 1991 11.85 134.0312203 1588.26996 1.26314 1256.85527 1.58702 1243.79472
1 1992 12.01 134.0312203 1609.71496 1.36159 1272.46388 1.71026 1258.87832
2 1992 12.40 134.0312203 1661.98713 1.37850 1312.40602 1.73100 1298.02680
3 1992 12.13 135.3356604 1641.62156 1.42177 1294.90235 1.78483 1280.33627
4 1992 12.51 135.3356604 1693.04911 1.40281 1334.06532 1.76051 1318.68523
5 1992 12.61 135.3356604 1706.58268 1.44524 1343.28408 1.81324 1327.41304
6 1992 12.40 136.4226938 1691.64140 1.45522 1330.06829 1.82524 1313.96619
7 1992 12.78 136.4226938 1743.48203 1.44091 1369.38754 1.80675 1352.42615
8 1992 12.50 136.4226938 1705.28367 1.48350 1337.90180 1.85963 1320.93590
9 1992 12.53 137.5088618 1722.98604 1.44939 1350.34102 1.81633 1332.83206
10 1992 12.68 137.5088618 1743.61237 1.46287 1365.04345 1.83269 1346.95507
11 1992 13.14 137.5088618 1806.86644 1.47880 1413.08516 1.85211 1393.96726
12 1992 13.40 138.5435409 1856.48345 1.53084 1450.35799 1.91675 1430.32920
1 1993 13.80 138.5435409 1911.90087 1.57122 1492.08103 1.96675 1471.05884
2 1993 14.11 138.5435409 1954.84936 1.61642 1523.98237 2.02275 1502.08161
3 1993 14.43 139.5083288 2013.10519 1.65098 1567.74709 2.06541 1544.77924
4 1993 14.37 139.5083288 2004.73469 1.69839 1559.53000 2.12412 1536.23192
5 1993 14.63 139.5083288 2041.00685 1.68949 1586.05747 2.11237 1561.91497
6 1993 14.70 140.4771367 2065.01391 1.71823 1602.99502 2.14769 1578.13910
7 1993 14.90 140.4771367 2093.10934 1.73658 1623.06790 2.16999 1597.44038
8 1993 15.47 140.4771367 2173.18130 1.75832 1683.40010 2.19653 1656.35398
9 1993 15.31 141.4025460 2164.87298 1.82368 1675.14058 2.27754 1647.74401
10 1993 15.45 141.4025460 2184.66934 1.81474 1688.64391 2.26570 1660.54585
11 1993 15.18 141.4025460 2146.49065 1.82936 1657.30427 2.28331 1629.24330
12 1993 15.44 142.2348697 2196.10639 1.79541 1693.81714 2.24026 1664.66270
1 1994 16.12 142.2348697 2292.82610 1.83497 1766.58034 2.28897 1735.68789
2 1994 14.94 149.5168411 2233.78161 1.91380 1719.17384 2.38663 1688.60410
3 1994 14.22 150.5156176 2140.33208 1.86244 1645.39033 2.32189 1615.64001
4 1994 14.71 150.5156176 2214.08473 1.78251 1700.30552 2.22156 1669.09100
5 1994 14.85 150.5156176 2235.15692 1.84200 1714.64590 2.29506 1682.68124
6 1994 14.67 151.4211260 2221.34792 1.85753 1702.19513 2.31374 1669.97174
7 1994 15.16 151.4211260 2295.54427 1.84404 1757.20696 2.29627 1723.45504
8 1994 15.94 151.4211260 2413.65275 1.90364 1845.71370 2.36981 1809.75904
9 1994 15.59 152.2841976 2374.11064 1.99952 1813.47643 2.48848 1777.62185
10 1994 15.91 152.2841976 2422.84158 1.96460 1848.73521 2.44429 1811.66499
11 1994 15.39 152.2841976 2343.65380 2.00280 1786.30864 2.49110 1749.96171
12 1994 15.35 153.1776512 2351.27695 1.93517 1790.18375 2.40626 1753.24751
1 1995 15.59 153.1776512 2388.03958 1.93937 1816.23423 2.41077 1778.24908
2 1995 15.39 161.0849025 2479.09665 1.96759 1883.52051 2.44515 1843.60939
3 1995 15.82 162.1174981 2564.69882 2.04048 1946.51720 2.53502 1904.73343
4 1995 16.26 162.1174981 2636.03052 2.10873 1998.54675 2.61907 1955.09051
5 1995 16.75 162.1174981 2715.46809 2.16509 2056.60847 2.68831 2011.31944
6 1995 16.89 163.0836333 2754.48257 2.22799 2083.92879 2.76563 2037.45143
7 1995 17.54 163.0836333 2860.48693 2.25759 2161.86976 2.80156 2113.05978
8 1995 17.76 163.0836333 2896.36533 2.34203 2186.64355 2.90553 2136.65785
9 1995 18.25 163.9738278 2992.52236 2.36886 2256.86951 2.93798 2204.65522
10 1995 18.04 163.9738278 2958.08785 2.44494 2228.45511 3.03147 2176.25511
11 1995 18.82 163.9738278 3085.98744 2.41416 2322.39323 2.99242 2267.35797
12 1995 19.27 164.8363940 3176.39731 2.51593 2387.91623 3.11769 2330.66684
1 1996 19.83 164.8363940 3268.70569 2.58691 2454.72387 3.20474 2395.19295
2 1996 19.00 172.6149937 3279.68488 2.65928 2460.30971 3.29347 2399.94464
3 1996 19.20 172.6149937 3314.20788 2.66534 2483.54237 3.30000 2421.90721
4 1996 19.45 172.6149937 3357.36163 2.69050 2513.18966 3.33020 2450.11226
5 1996 19.66 172.6149937 3393.61078 2.72262 2537.60173 3.36899 2473.19693
6 1996 19.48 172.6149937 3362.54008 2.74907 2511.61928 3.40073 2447.15248
7 1996 18.53 172.6149937 3198.55583 2.72092 2386.41179 3.36492 2324.44492
8 1996 18.91 172.6149937 3264.14953 2.58528 2432.76534 3.19619 2368.91678
9 1996 19.72 172.6149937 3403.96768 2.63550 2534.33608 3.25734 2467.13076
10 1996 20.04 172.6149937 3459.20447 2.74553 2572.71568 3.39239 2503.77295
11 1996 21.38 172.6149937 3690.50857 2.78711 2741.95647 3.44277 2667.74813
12 1996 21.03 172.6149937 3630.09332 2.97045 2694.09898 3.66824 2620.40768
1 1997 21.85 172.6149937 3771.63761 2.91861 2796.22846 3.60315 2718.97925
2 1997 19.91 191.5328996 3813.42003 3.02925 2824.17599 3.73869 2745.36157
3 1997 19.17 191.5328996 3671.68569 3.05952 2716.14960 3.77496 2639.54906
4 1997 19.85 191.5328996 3801.92806 2.94250 2809.55462 3.62947 2729.54992
5 1997 21.08 191.5328996 4037.51352 3.04368 2980.60424 3.75322 2894.93253
6 1997 22.06 191.5328996 4225.21577 3.22899 3115.94224 3.98063 3025.53605
7 1997 23.67 191.5328996 4533.58373 3.37560 3339.97675 4.16021 3242.18786
8 1997 22.56 191.5328996 4320.98221 3.61831 3179.73089 4.45812 3085.68798
9 1997 23.80 191.5328996 4558.48301 3.44471 3351.05862 4.24292 3251.04847
10 1997 22.93 191.5328996 4391.84939 3.63031 3224.93163 4.47030 3127.73732
11 1997 23.77 191.5328996 4552.73702 3.49368 3339.57762 4.30074 3238.01571
12 1997 24.28 191.5328996 4650.41880 3.61788 3407.61244 4.45238 3303.03695
1 1998 24.22 191.5328996 4638.92683 3.69158 3395.50007 4.54179 3290.33280
2 1998 24.18 204.2144884 4937.90633 3.67846 3610.66208 4.52432 3497.87090
3 1998 25.30 204.2144884 5166.62656 3.91155 3773.99377 4.80969 3655.08005
4 1998 25.30 204.2144884 5166.62656 4.08849 3769.90527 5.02586 3650.05419
5 1998 24.89 204.2144884 5082.89862 4.08406 3704.72788 5.01895 3585.88417
6 1998 25.17 204.2144884 5140.07867 4.01346 3742.39076 4.93071 3621.29286
7 1998 24.55 204.2144884 5013.46569 4.05426 3646.15206 4.97940 3527.11197
8 1998 20.80 204.2144884 4247.66136 3.95000 3085.25419 4.84990 2983.49751
9 1998 22.02 204.2144884 4496.80304 3.34236 3262.87386 4.10241 3154.38871
10 1998 23.65 204.2144884 4829.67265 3.53478 3500.86880 4.33739 3383.55057
11 1998 24.65 204.2144884 5033.88714 3.79261 3645.10447 4.65249 3521.96576
12 1998 25.42 204.2144884 5191.13230 3.94886 3755.01891 4.84282 3627.13972
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 327.03%
GROSS ANNUAL RETURN = 15.62%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 3755.02 3755.02
TOTAL RETURN 275.50% 275.50%
AVERAGE ANNUAL RETURN 14.15% 14.15%
WITH DEATH BENEFIT CHARGE
ERV 3627.14 3627.14
TOTAL RETURN 262.71% 262.71%
AVERAGE ANNUAL RETURN 13.75% 13.75%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 24.22 191.5328996 4638.92683 4.35890 4009.29551 5.32091 3854.77346
2 1998 24.18 204.2144884 4937.90633 4.34340 4263.35178 5.30044 4097.91372
3 1998 25.30 204.2144884 5166.62656 4.61863 4456.20850 5.63477 4282.09134
4 1998 25.30 204.2144884 5166.62656 4.82756 4451.38094 5.88802 4276.20332
5 1998 24.89 204.2144884 5082.89862 4.82233 4374.42161 5.87992 4201.02524
6 1998 25.17 204.2144884 5140.07867 4.73896 4418.89270 5.77655 4242.50811
7 1998 24.55 204.2144884 5013.46569 4.78713 4305.25720 5.83359 4132.17095
8 1998 20.80 204.2144884 4247.66136 4.66403 3642.96732 5.68187 3495.30207
9 1998 22.02 204.2144884 4496.80304 3.94655 3852.69482 4.80616 3695.50882
10 1998 23.65 204.2144884 4829.67265 4.17375 4133.71146 5.08145 3963.98229
11 1998 24.65 204.2144884 5033.88714 4.47819 4304.02023 5.45061 4126.14193
12 1998 25.42 204.2144884 5191.13230 4.66269 4433.80361 5.67358 4249.35798
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 419.11%
GROSS ANNUAL RETURN = 14.42%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 4433.80 4433.80
TOTAL RETURN 343.38% 343.38%
AVERAGE ANNUAL RETURN 12.95% 12.95%
WITH DEATH BENEFIT CHARGE
ERV 4249.36 4249.36
TOTAL RETURN 324.94% 324.94%
AVERAGE ANNUAL RETURN 12.56% 12.56%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 24.22 191.5328996 4638.92683 1.77145 1629.37433 2.22915 1614.92576
2 1998 24.18 204.2144884 4937.90633 1.76516 1732.62258 2.22058 1716.78738
3 1998 25.30 204.2144884 5166.62656 1.87701 1810.99939 2.36064 1793.94709
4 1998 25.30 204.2144884 5166.62656 1.96192 1809.03748 2.46674 1791.48035
5 1998 24.89 204.2144884 5082.89862 1.95979 1777.76127 2.46335 1759.98511
6 1998 25.17 204.2144884 5140.07867 1.92591 1795.83428 2.42004 1777.36402
7 1998 24.55 204.2144884 5013.46569 1.94549 1749.65291 2.44393 1731.13917
8 1998 20.80 204.2144884 4247.66136 1.89546 1480.49886 2.38037 1464.32817
9 1998 22.02 204.2144884 4496.80304 1.60387 1565.73194 2.01350 1548.20315
10 1998 23.65 204.2144884 4829.67265 1.69621 1679.93687 2.12883 1660.67791
11 1998 24.65 204.2144884 5033.88714 1.81993 1749.15021 2.28349 1728.61336
12 1998 25.42 204.2144884 5191.13230 1.89491 1801.89406 2.37690 1780.23371
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 88.46%
GROSS ANNUAL RETURN = 19.34%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1801.89 1740.63
TOTAL RETURN 80.19% 74.06%
AVERAGE ANNUAL RETURN 17.86% 16.73%
WITH DEATH BENEFIT CHARGE
ERV 1780.23 1719.71
TOTAL RETURN 78.02% 71.97%
AVERAGE ANNUAL RETURN 17.46% 16.33%
Fidelity Index 500
12/1998
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
2/98 4.5100000000 114.96 4.520 119.722980
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 114.39 115.2034296 13178.12032 1000.00000 1000.00000
1 1998 115.64 115.2034296 13322.12460 1.08333 1009.84420 1.37503 1009.55250
2 1998 119.18 119.7229796 14268.58471 1.09400 1080.49380 1.38817 1079.88721
3 1998 125.21 119.7229796 14990.51428 1.17053 1133.99165 1.48488 1133.04002
4 1998 126.45 119.7229796 15138.97077 1.22849 1143.99349 1.55797 1142.70296
5 1998 124.19 119.7229796 14868.39684 1.23933 1122.30794 1.57125 1120.70854
6 1998 129.25 119.7229796 15474.19512 1.21583 1166.81944 1.54101 1164.82970
7 1998 127.85 119.7229796 15306.58295 1.26405 1152.91672 1.60168 1150.61091
8 1998 109.35 119.7229796 13091.70782 1.24899 984.83973 1.58213 982.53444
9 1998 116.38 119.7229796 13933.36037 1.06691 1047.08717 1.35102 1044.34956
10 1998 125.83 119.7229796 15064.74253 1.13434 1130.97580 1.43602 1127.71422
11 1998 133.41 119.7229796 15972.24271 1.22522 1197.88056 1.55064 1194.09709
12 1998 141.25 119.7229796 16910.87087 1.29770 1266.97776 1.64192 1262.62773
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.33%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1266.98 1191.59
TOTAL RETURN 26.70% 19.16%
WITH DEATH BENEFIT CHARGE
ERV 1262.63 1187.50
TOTAL RETURN 26.26% 18.75%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 114.39 115.2034296 13178.12032 1000.00000 1000.00000
1 1998 115.64 115.2034296 13322.12460 1.08333 1009.84420 1.37503 1009.55250
2 1998 119.18 119.7229796 14268.58471 1.09400 1080.49380 1.38817 1079.88721
3 1998 125.21 119.7229796 14990.51428 1.17053 1133.99165 1.48488 1133.04002
4 1998 126.45 119.7229796 15138.97077 1.22849 1143.99349 1.55797 1142.70296
5 1998 124.19 119.7229796 14868.39684 1.23933 1122.30794 1.57125 1120.70854
6 1998 129.25 119.7229796 15474.19512 1.21583 1166.81944 1.54101 1164.82970
7 1998 127.85 119.7229796 15306.58295 1.26405 1152.91672 1.60168 1150.61091
8 1998 109.35 119.7229796 13091.70782 1.24899 984.83973 1.58213 982.53444
9 1998 116.38 119.7229796 13933.36037 1.06691 1047.08717 1.35102 1044.34956
10 1998 125.83 119.7229796 15064.74253 1.13434 1130.97580 1.43602 1127.71422
11 1998 133.41 119.7229796 15972.24271 1.22522 1197.88056 1.55064 1194.09709
12 1998 141.25 119.7229796 16910.87087 1.29770 1266.97776 1.64192 1262.62773
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 28.33%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1266.98 1191.59
TOTAL RETURN 26.70% 19.16%
WITH DEATH BENEFIT CHARGE
ERV 1262.63 1187.50
TOTAL RETURN 26.26% 18.75%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 75.71 106.7973146 8085.62469 1000.00000 1000.00000
1 1996 78.30 106.7973146 8362.22973 1.08333 1033.12615 1.37503 1032.83445
2 1996 75.75 111.4214989 8440.17854 1.11922 1041.63725 1.42018 1041.04187
3 1996 76.53 111.4214989 8527.08731 1.12844 1051.23458 1.43147 1050.33004
4 1996 77.60 111.4214989 8646.30831 1.13884 1064.79352 1.44424 1063.57093
5 1996 79.58 111.4214989 8866.92288 1.15353 1090.80870 1.46245 1089.24600
6 1996 79.92 111.4214989 8904.80619 1.18171 1094.28739 1.49775 1092.40197
7 1996 76.38 111.4214989 8510.37408 1.18548 1044.63122 1.50209 1042.51271
8 1996 77.95 111.4214989 8685.30584 1.13168 1064.97206 1.43349 1062.50819
9 1996 82.31 111.4214989 9171.10357 1.15372 1123.38573 1.46098 1120.47679
10 1996 84.58 111.4214989 9424.03037 1.21700 1153.15021 1.54069 1149.83735
11 1996 90.92 111.4214989 10130.44268 1.24925 1238.33951 1.58106 1234.44651
12 1996 89.13 111.4214989 9930.99819 1.34153 1212.61800 1.69741 1208.44577
1 1997 94.57 111.4214989 10537.13115 1.31367 1285.31579 1.66165 1280.54093
2 1997 92.15 115.2034296 10615.99604 1.39243 1293.54328 1.76079 1288.36432
3 1997 88.32 115.2034296 10174.76690 1.40134 1238.37883 1.77154 1233.04491
4 1997 93.57 115.2034296 10779.58491 1.34158 1310.65013 1.69548 1304.64524
5 1997 99.26 115.2034296 11435.09243 1.41987 1388.93101 1.79393 1382.18691
6 1997 103.62 115.2034296 11937.37938 1.50468 1448.43519 1.90055 1440.99898
7 1997 111.86 115.2034296 12886.65564 1.56914 1562.04754 1.98142 1553.60771
8 1997 105.60 115.2034296 12165.48217 1.69222 1472.93875 2.13626 1464.52719
9 1997 111.31 115.2034296 12823.29375 1.59568 1550.98777 2.01377 1541.70329
10 1997 107.63 115.2034296 12399.34513 1.68024 1498.03060 2.11989 1488.61342
11 1997 112.50 115.2034296 12960.38583 1.62287 1564.19004 2.04689 1553.92272
12 1997 114.39 115.2034296 13178.12032 1.69454 1588.77389 2.13670 1577.89193
1 1998 115.64 115.2034296 13322.12460 1.72117 1604.41409 2.16965 1592.96473
2 1998 119.18 119.7229796 14268.58471 1.73812 1716.66034 2.19038 1703.94531
3 1998 125.21 119.7229796 14990.51428 1.85972 1801.65632 2.34298 1787.81469
4 1998 126.45 119.7229796 15138.97077 1.95179 1817.54698 2.45830 1803.06177
5 1998 124.19 119.7229796 14868.39684 1.96901 1783.09354 2.47927 1768.35696
6 1998 129.25 119.7229796 15474.19512 1.93168 1853.81226 2.43155 1837.97538
7 1998 127.85 119.7229796 15306.58295 2.00830 1831.72399 2.52728 1815.53966
8 1998 109.35 119.7229796 13091.70782 1.98437 1564.68765 2.49643 1550.33316
9 1998 116.38 119.7229796 13933.36037 1.69508 1663.58475 2.13176 1647.87073
10 1998 125.83 119.7229796 15064.74253 1.80222 1796.86481 2.26588 1779.41117
11 1998 133.41 119.7229796 15972.24271 1.94660 1903.16136 2.44675 1884.15616
12 1998 141.25 119.7229796 16910.87087 2.06176 2012.94118 2.59078 1992.29010
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 109.15%
GROSS ANNUAL RETURN = 27.88%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2012.94 1927.39
TOTAL RETURN 101.29% 92.74%
AVERAGE ANNUAL RETURN 26.26% 24.45%
WITH DEATH BENEFIT CHARGE
ERV 1992.29 1907.62
TOTAL RETURN 99.23% 90.76%
AVERAGE ANNUAL RETURN 25.83% 24.02%
<TABLE>
<CAPTION>
Return for 5 Years
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 1993 55.74 104.6470890 5833.02874 1000.00000 1000.00000
1 1994 57.62 104.6470890 6029.76527 1.08333 1032.64469 1.37503 1032.35299
2 1994 55.96 104.8333932 5866.47669 1.11870 1003.56154 1.41952 1002.97692
3 1994 53.53 104.8333932 5611.73154 1.08719 958.89582 1.37913 958.04465
4 1994 54.17 104.8333932 5678.82491 1.03880 969.32149 1.31734 968.18160
5 1994 55.01 104.8333932 5766.88496 1.05010 983.30240 1.33128 981.86366
6 1994 53.67 104.8333932 5626.40822 1.06524 958.28469 1.35010 956.59614
7 1994 55.44 104.8333932 5811.96332 1.03814 988.85013 1.31535 986.82868
8 1994 57.65 104.8333932 6043.64512 1.07125 1027.19732 1.35692 1024.80962
9 1994 56.25 104.8333932 5896.87837 1.11280 1001.13958 1.40915 998.51351
10 1994 57.50 104.8333932 6027.92011 1.08457 1022.30255 1.37299 1019.32971
11 1994 55.41 104.8333932 5808.81832 1.10749 984.03658 1.40161 980.87768
12 1994 56.22 104.8333932 5893.73337 1.06604 997.35549 1.34874 993.86771
1 1995 57.71 104.8333932 6049.93512 1.08047 1022.70795 1.36660 1018.84160
2 1995 58.82 106.7973146 6281.81804 1.10793 1060.79854 1.40094 1056.49099
3 1995 60.54 106.7973146 6465.50942 1.14920 1090.66895 1.45271 1085.93193
4 1995 62.32 106.7973146 6655.60864 1.18156 1121.55530 1.49319 1116.36736
5 1995 64.77 106.7973146 6917.26207 1.21502 1164.43223 1.53504 1158.72032
6 1995 66.24 106.7973146 7074.25412 1.26147 1189.59836 1.59328 1183.42500
7 1995 68.45 106.7973146 7310.27618 1.28873 1227.99882 1.62725 1221.28098
8 1995 68.62 106.7973146 7328.43173 1.33033 1229.71831 1.67930 1222.63481
9 1995 71.49 106.7973146 7634.94002 1.33219 1279.81851 1.68116 1272.08979
10 1995 71.25 106.7973146 7609.30866 1.38647 1274.13555 1.74917 1266.07007
11 1995 74.35 106.7973146 7940.38034 1.38031 1328.19131 1.74089 1319.41434
12 1995 75.71 106.7973146 8085.62469 1.43887 1351.04753 1.81424 1341.73465
1 1996 78.30 106.7973146 8362.22973 1.46363 1395.80253 1.84493 1385.78977
2 1996 75.75 111.4214989 8440.17854 1.51212 1407.30143 1.90551 1396.80194
3 1996 76.53 111.4214989 8527.08731 1.52458 1420.26788 1.92065 1409.26421
4 1996 77.60 111.4214989 8646.30831 1.53862 1438.58665 1.93779 1427.02997
5 1996 79.58 111.4214989 8866.92288 1.55847 1473.73439 1.96221 1461.47909
6 1996 79.92 111.4214989 8904.80619 1.59655 1478.43427 2.00958 1465.71357
7 1996 76.38 111.4214989 8510.37408 1.60164 1411.34643 2.01540 1398.77542
8 1996 77.95 111.4214989 8685.30584 1.52896 1438.82787 1.92336 1425.60405
9 1996 82.31 111.4214989 9171.10357 1.55873 1517.74752 1.96025 1503.38253
10 1996 84.58 111.4214989 9424.03037 1.64423 1557.96074 2.06720 1542.77661
11 1996 90.92 111.4214989 10130.44268 1.68779 1673.05554 2.12137 1656.29964
12 1996 89.13 111.4214989 9930.99819 1.81248 1638.30455 2.27747 1621.41355
1 1997 94.57 111.4214989 10537.13115 1.77483 1736.52273 2.22950 1718.14613
2 1997 92.15 115.2034296 10615.99604 1.88123 1747.63845 2.36251 1728.64304
3 1997 88.32 115.2034296 10174.76690 1.89327 1673.10866 2.37694 1654.41908
4 1997 93.57 115.2034296 10779.58491 1.81253 1770.75061 2.27488 1750.48772
5 1997 99.26 115.2034296 11435.09243 1.91831 1876.51180 2.40698 1854.52806
6 1997 103.62 115.2034296 11937.37938 2.03289 1956.90478 2.55004 1933.43825
7 1997 111.86 115.2034296 12886.65564 2.11998 2110.40047 2.65854 2084.52929
8 1997 105.60 115.2034296 12165.48217 2.28627 1990.01026 2.86630 1965.00687
9 1997 111.31 115.2034296 12823.29375 2.15584 2095.45819 2.70195 2068.55671
10 1997 107.63 115.2034296 12399.34513 2.27008 2023.91054 2.84433 1997.32419
11 1997 112.50 115.2034296 12960.38583 2.19257 2113.29508 2.74639 2084.95195
12 1997 114.39 115.2034296 13178.12032 2.28940 2146.50904 2.86688 2117.11226
1 1998 115.64 115.2034296 13322.12460 2.32538 2167.63969 2.91110 2137.33597
2 1998 119.18 119.7229796 14268.58471 2.34828 2319.28971 2.93891 2286.24245
3 1998 125.21 119.7229796 14990.51428 2.51256 2434.12332 3.14366 2398.77292
4 1998 126.45 119.7229796 15138.97077 2.63697 2455.59236 3.29839 2419.23044
5 1998 124.19 119.7229796 14868.39684 2.66022 2409.04412 3.32652 2372.66579
6 1998 129.25 119.7229796 15474.19512 2.60980 2504.58847 3.26249 2466.07524
7 1998 127.85 119.7229796 15306.58295 2.71330 2474.74616 3.39094 2435.97247
8 1998 109.35 119.7229796 13091.70782 2.68097 2113.96739 3.34954 2080.13571
9 1998 116.38 119.7229796 13933.36037 2.29013 2247.58206 2.86026 2211.00526
10 1998 125.83 119.7229796 15064.74253 2.43488 2427.64976 3.04021 2387.49761
11 1998 133.41 119.7229796 15972.24271 2.62995 2571.26145 3.28289 2528.03760
12 1998 141.25 119.7229796 16910.87087 2.78553 2719.57920 3.47614 2673.12465
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 189.92%
GROSS ANNUAL RETURN = 23.72%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2719.58 2650.23
TOTAL RETURN 171.96% 165.02%
AVERAGE ANNUAL RETURN 22.15% 21.52%
WITH DEATH BENEFIT CHARGE
ERV 2673.12 2604.96
TOTAL RETURN 167.31% 160.50%
AVERAGE ANNUAL RETURN 21.73% 21.10%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 115.64 115.2034296 13322.12460 2.66371 2483.01816 3.31828 2436.28753
2 1998 119.18 119.7229796 14268.58471 2.68994 2656.73234 3.34998 2606.02173
3 1998 125.21 119.7229796 14990.51428 2.87813 2788.27355 3.58337 2734.29195
4 1998 126.45 119.7229796 15138.97077 3.02063 2812.86620 3.75974 2757.61089
5 1998 124.19 119.7229796 14868.39684 3.04727 2759.54548 3.79181 2704.53320
6 1998 129.25 119.7229796 15474.19512 2.98951 2868.99095 3.71882 2811.00793
7 1998 127.85 119.7229796 15306.58295 3.10807 2834.80677 3.86523 2776.69465
8 1998 109.35 119.7229796 13091.70782 3.07104 2421.53686 3.81805 2371.08661
9 1998 116.38 119.7229796 13933.36037 2.62333 2574.59167 3.26032 2520.26102
10 1998 125.83 119.7229796 15064.74253 2.78914 2780.85813 3.46544 2721.43956
11 1998 133.41 119.7229796 15972.24271 3.01260 2945.36445 3.74207 2881.63703
12 1998 141.25 119.7229796 16910.87087 3.19081 3115.26154 3.96235 3047.01757
</TABLE>
SURRENDER CHARGE = 1.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 238.22%
GROSS ANNUAL RETURN = 21.17%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 3115.26 3088.78
TOTAL RETURN 211.53% 208.88%
AVERAGE ANNUAL RETURN 19.61% 19.45%
WITH DEATH BENEFIT CHARGE
ERV 3047.02 3021.12
TOTAL RETURN 204.70% 202.11%
AVERAGE ANNUAL RETURN 19.20% 19.03%
<TABLE>
<CAPTION>
Return for Product Inception
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>
5 1997 99.26 115.2034296 11435.09243 1000.00000 1000.00000
6 1997 103.62 115.2034296 11937.37938 1.08333 1042.84171 1.37503 1042.55001
7 1997 111.86 115.2034296 12886.65564 1.12975 1124.64012 1.43354 1124.02143
8 1997 105.60 115.2034296 12165.48217 1.21836 1060.48374 1.54557 1059.57247
9 1997 111.31 115.2034296 12823.29375 1.14886 1116.67733 1.45695 1115.40869
10 1997 107.63 115.2034296 12399.34513 1.20973 1078.54933 1.53372 1076.99864
11 1997 112.50 115.2034296 12960.38583 1.16843 1126.18267 1.48091 1124.24934
12 1997 114.39 115.2034296 13178.12032 1.22003 1143.88251 1.54588 1141.59085
1 1998 115.64 115.2034296 13322.12460 1.23921 1155.14312 1.56973 1152.49589
2 1998 119.18 119.7229796 14268.58471 1.25141 1235.95797 1.58472 1232.78936
3 1998 125.21 119.7229796 14990.51428 1.33895 1297.15322 1.69513 1293.46812
4 1998 126.45 119.7229796 15138.97077 1.40525 1308.59415 1.77856 1304.49924
5 1998 124.19 119.7229796 14868.39684 1.41764 1283.78842 1.79373 1279.39061
6 1998 129.25 119.7229796 15474.19512 1.39077 1334.70435 1.75920 1329.75893
7 1998 127.85 119.7229796 15306.58295 1.44593 1318.80128 1.82846 1313.52689
8 1998 109.35 119.7229796 13091.70782 1.42870 1126.54095 1.80614 1121.65232
9 1998 116.38 119.7229796 13933.36037 1.22042 1197.74470 1.54231 1192.21990
10 1998 125.83 119.7229796 15064.74253 1.29756 1293.70343 1.63934 1287.38824
11 1998 133.41 119.7229796 15972.24271 1.40151 1370.23463 1.77020 1363.17031
12 1998 141.25 119.7229796 16910.87087 1.48442 1449.27370 1.87440 1441.40426
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 47.89%
GROSS ANNUAL RETURN = 26.43%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1449.27 1375.36
TOTAL RETURN 44.93% 37.54%
AVERAGE ANNUAL RETURN 24.91% 21.05%
WITH DEATH BENEFIT CHARGE
ERV 1441.40 1367.89
TOTAL RETURN 44.14% 36.79%
AVERAGE ANNUAL RETURN 24.50% 20.65%
MFS Emerging Growth
12/1998
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
4/98 0.1585900000 18.55 0.887 104.661622
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 16.14 103.7744210 1674.91916 1000.00000 1000.00000
1 1998 16.55 103.7744210 1717.46667 1.08333 1024.31939 1.37503 1024.02769
2 1998 18.13 103.7744210 1881.43025 1.10968 1120.99972 1.40807 1120.38178
3 1998 19.48 103.7744210 2021.52572 1.21442 1203.25743 1.54056 1202.26733
4 1998 19.07 104.6616224 1995.89714 1.30353 1186.69919 1.65316 1185.37202
5 1998 18.25 104.6616224 1910.07461 1.28559 1134.38616 1.62993 1132.77172
6 1998 19.45 104.6616224 2035.66856 1.22892 1207.74702 1.55760 1205.69774
7 1998 18.96 104.6616224 1984.38436 1.30839 1176.01209 1.65787 1173.66496
8 1998 15.41 104.6616224 1612.83560 1.27401 954.54594 1.61383 952.29846
9 1998 16.90 104.6616224 1768.78142 1.03409 1045.80734 1.30944 1043.06720
10 1998 17.31 104.6616224 1811.69268 1.13296 1070.04604 1.43425 1066.93812
11 1998 18.98 104.6616224 1986.47759 1.15922 1172.12061 1.46708 1168.40500
12 1998 21.47 104.6616224 2247.08503 1.26980 1324.62217 1.60660 1320.08230
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 34.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1324.62 1245.81
TOTAL RETURN 32.46% 24.58%
WITH DEATH BENEFIT CHARGE
ERV 1320.08 1241.54
TOTAL RETURN 32.01% 24.15%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 16.14 103.7744210 1674.91916 1000.00000 1000.00000
1 1998 16.55 103.7744210 1717.46667 1.08333 1024.31939 1.37503 1024.02769
2 1998 18.13 103.7744210 1881.43025 1.10968 1120.99972 1.40807 1120.38178
3 1998 19.48 103.7744210 2021.52572 1.21442 1203.25743 1.54056 1202.26733
4 1998 19.07 104.6616224 1995.89714 1.30353 1186.69919 1.65316 1185.37202
5 1998 18.25 104.6616224 1910.07461 1.28559 1134.38616 1.62993 1132.77172
6 1998 19.45 104.6616224 2035.66856 1.22892 1207.74702 1.55760 1205.69774
7 1998 18.96 104.6616224 1984.38436 1.30839 1176.01209 1.65787 1173.66496
8 1998 15.41 104.6616224 1612.83560 1.27401 954.54594 1.61383 952.29846
9 1998 16.90 104.6616224 1768.78142 1.03409 1045.80734 1.30944 1043.06720
10 1998 17.31 104.6616224 1811.69268 1.13296 1070.04604 1.43425 1066.93812
11 1998 18.98 104.6616224 1986.47759 1.15922 1172.12061 1.46708 1168.40500
12 1998 21.47 104.6616224 2247.08503 1.26980 1324.62217 1.60660 1320.08230
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 34.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1324.62 1245.81
TOTAL RETURN 32.46% 24.58%
WITH DEATH BENEFIT CHARGE
ERV 1320.08 1241.54
TOTAL RETURN 32.01% 24.15%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.41 102.8997345 1174.08597 1000.00000 1000.00000
1 1996 11.61 102.8997345 1194.66592 1.08333 1016.44515 1.37503 1016.15345
2 1996 12.07 102.8997345 1241.99980 1.10115 1055.61659 1.39724 1055.01724
3 1996 12.19 102.8997345 1254.34776 1.14358 1064.96795 1.45068 1064.05554
4 1996 13.05 102.8997345 1342.84154 1.15372 1138.94733 1.46311 1137.66115
5 1996 13.42 102.8997345 1380.91444 1.23386 1170.00547 1.56432 1168.35236
6 1996 13.13 102.8997345 1351.07351 1.26751 1143.45468 1.60652 1141.49828
7 1996 12.18 102.8997345 1253.31877 1.23874 1059.48312 1.56960 1057.33741
8 1996 12.51 102.8997345 1287.27568 1.14777 1087.04055 1.45387 1084.53061
9 1996 13.58 102.8997345 1397.37839 1.17763 1178.83922 1.49127 1175.80096
10 1996 13.38 102.8997345 1376.79845 1.27708 1160.20074 1.61677 1156.86754
11 1996 13.97 102.8997345 1437.50929 1.25688 1210.10368 1.59073 1206.28965
12 1996 13.24 103.7744210 1373.97333 1.31095 1155.30779 1.65869 1151.31460
1 1997 14.07 103.7744210 1460.10610 1.25158 1226.48110 1.58310 1221.90606
2 1997 13.44 103.7744210 1394.72822 1.32869 1170.23534 1.68016 1165.51368
3 1997 12.39 103.7744210 1285.76508 1.26775 1077.54295 1.60262 1072.85531
4 1997 12.88 103.7744210 1336.61454 1.16734 1118.99031 1.47521 1113.80940
5 1997 14.09 103.7744210 1462.18159 1.21224 1222.90060 1.53153 1216.91370
6 1997 14.67 103.7744210 1522.37076 1.32481 1271.91521 1.67330 1265.33337
7 1997 16.03 103.7744210 1663.50397 1.37791 1388.45173 1.73988 1380.89775
8 1997 15.57 103.7744210 1615.76774 1.50416 1347.10429 1.89878 1339.37246
9 1997 16.68 103.7744210 1730.95734 1.45936 1441.68127 1.84168 1433.01590
10 1997 16.10 103.7744210 1670.76818 1.56182 1389.98904 1.97044 1381.21637
11 1997 16.30 103.7744210 1691.52306 1.50582 1405.75017 1.89922 1396.47512
12 1997 16.14 103.7744210 1674.91916 1.52290 1390.42850 1.92020 1380.84718
1 1998 16.55 103.7744210 1717.46667 1.50630 1424.24287 1.89871 1414.02576
2 1998 18.13 103.7744210 1881.43025 1.54293 1558.66996 1.94433 1547.07603
3 1998 19.48 103.7744210 2021.52572 1.68856 1673.04342 2.12728 1660.14746
4 1998 19.07 104.6616224 1995.89714 1.81246 1650.02038 2.28276 1636.81761
5 1998 18.25 104.6616224 1910.07461 1.78752 1577.28284 2.25068 1564.18464
6 1998 19.45 104.6616224 2035.66856 1.70872 1679.28587 2.15081 1664.88433
7 1998 18.96 104.6616224 1984.38436 1.81923 1635.16073 2.28927 1620.65195
8 1998 15.41 104.6616224 1612.83560 1.77142 1327.22788 2.22845 1314.97865
9 1998 16.90 104.6616224 1768.78142 1.43783 1454.12032 1.80814 1440.31640
10 1998 17.31 104.6616224 1811.69268 1.57530 1487.82250 1.98048 1473.27851
11 1998 18.98 104.6616224 1986.47759 1.61181 1629.74990 2.02581 1613.38875
12 1998 21.47 104.6616224 2247.08503 1.76556 1841.79241 2.21846 1822.83193
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 91.39%
GROSS ANNUAL RETURN = 24.16%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1841.79 1763.52
TOTAL RETURN 84.18% 76.35%
AVERAGE ANNUAL RETURN 22.58% 20.82%
WITH DEATH BENEFIT CHARGE
ERV 1822.83 1745.36
TOTAL RETURN 82.28% 74.54%
AVERAGE ANNUAL RETURN 22.16% 20.40%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 16.55 103.7744210 1717.46667 1.75736 1661.62718 2.21140 1646.89453
2 1998 18.13 103.7744210 1881.43025 1.80010 1818.45977 2.26453 1801.85618
3 1998 19.48 103.7744210 2021.52572 1.97000 1951.89632 2.47761 1933.54878
4 1998 19.07 104.6616224 1995.89714 2.11455 1925.03593 2.65869 1906.37686
5 1998 18.25 104.6616224 1910.07461 2.08546 1840.17494 2.62133 1821.78232
6 1998 19.45 104.6616224 2035.66856 1.99352 1959.17922 2.50501 1939.06574
7 1998 18.96 104.6616224 1984.38436 2.12244 1907.69956 2.66628 1887.54896
8 1998 15.41 104.6616224 1612.83560 2.06667 1548.44230 2.59544 1531.53586
9 1998 16.90 104.6616224 1768.78142 1.67748 1696.48443 2.10591 1677.51485
10 1998 17.31 104.6616224 1811.69268 1.83786 1735.80388 2.30664 1715.90532
11 1998 18.98 104.6616224 1986.47759 1.88045 1901.38689 2.35943 1879.08962
12 1998 21.47 104.6616224 2247.08503 2.05984 2148.77138 2.58381 2123.02494
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 124.71%
GROSS ANNUAL RETURN = 26.55%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2148.77 2075.71
TOTAL RETURN 114.88% 107.57%
AVERAGE ANNUAL RETURN 24.91% 23.66%
WITH DEATH BENEFIT CHARGE
ERV 2123.02 2050.84
TOTAL RETURN 112.30% 105.08%
AVERAGE ANNUAL RETURN 24.48% 23.23%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 16.55 103.7744210 1717.46667 1.75736 1661.62718 2.21140 1646.89453
2 1998 18.13 103.7744210 1881.43025 1.80010 1818.45977 2.26453 1801.85618
3 1998 19.48 103.7744210 2021.52572 1.97000 1951.89632 2.47761 1933.54878
4 1998 19.07 104.6616224 1995.89714 2.11455 1925.03593 2.65869 1906.37686
5 1998 18.25 104.6616224 1910.07461 2.08546 1840.17494 2.62133 1821.78232
6 1998 19.45 104.6616224 2035.66856 1.99352 1959.17922 2.50501 1939.06574
7 1998 18.96 104.6616224 1984.38436 2.12244 1907.69956 2.66628 1887.54896
8 1998 15.41 104.6616224 1612.83560 2.06667 1548.44230 2.59544 1531.53586
9 1998 16.90 104.6616224 1768.78142 1.67748 1696.48443 2.10591 1677.51485
10 1998 17.31 104.6616224 1811.69268 1.83786 1735.80388 2.30664 1715.90532
11 1998 18.98 104.6616224 1986.47759 1.88045 1901.38689 2.35943 1879.08962
12 1998 21.47 104.6616224 2247.08503 2.05984 2148.77138 2.58381 2123.02494
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 124.71%
GROSS ANNUAL RETURN = 25.35%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2148.77 2075.71
TOTAL RETURN 114.88% 107.57%
AVERAGE ANNUAL RETURN 23.79% 22.60%
WITH DEATH BENEFIT CHARGE
ERV 2123.02 2050.84
TOTAL RETURN 112.30% 105.08%
AVERAGE ANNUAL RETURN 23.38% 22.19%
MFS High Income
12/1998
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
4/98 0.8327900000 12.03 7.494 115.750592
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 12.35 108.2564221 1336.96681 1000.00000 1000.00000
1 1998 12.60 108.2564221 1364.03092 1.08333 1019.15958 1.37503 1018.86788
2 1998 12.66 108.2564221 1370.52630 1.10409 1022.90863 1.40098 1022.31866
3 1998 12.84 108.2564221 1390.01246 1.10815 1036.34421 1.40572 1035.44827
4 1998 12.04 115.7505921 1393.63713 1.12271 1037.92393 1.42378 1036.72458
5 1998 12.08 115.7505921 1398.26715 1.12442 1040.24776 1.42553 1038.74332
6 1998 12.09 115.7505921 1399.42466 1.12694 1039.98196 1.42831 1038.17490
7 1998 12.21 115.7505921 1413.31473 1.12665 1049.17771 1.42753 1047.05184
8 1998 11.29 115.7505921 1306.82419 1.13661 968.98758 1.43973 966.71877
9 1998 11.21 115.7505921 1297.56414 1.04974 961.07168 1.32927 958.53941
10 1998 10.92 115.7505921 1263.99647 1.04116 935.16783 1.31802 932.42420
11 1998 11.62 115.7505921 1345.02188 1.01310 994.10138 1.28211 990.91287
12 1998 11.53 115.7505921 1334.60433 1.07694 985.32486 1.36254 981.87545
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -0.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 985.32 926.70
TOTAL RETURN -1.47% -7.33%
WITH DEATH BENEFIT CHARGE
ERV 981.88 923.45
TOTAL RETURN -1.81% -7.65%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 12.35 108.2564221 1336.96681 1000.00000 1000.00000
1 1998 12.60 108.2564221 1364.03092 1.08333 1019.15958 1.37503 1018.86788
2 1998 12.66 108.2564221 1370.52630 1.10409 1022.90863 1.40098 1022.31866
3 1998 12.84 108.2564221 1390.01246 1.10815 1036.34421 1.40572 1035.44827
4 1998 12.04 115.7505921 1393.63713 1.12271 1037.92393 1.42378 1036.72458
5 1998 12.08 115.7505921 1398.26715 1.12442 1040.24776 1.42553 1038.74332
6 1998 12.09 115.7505921 1399.42466 1.12694 1039.98196 1.42831 1038.17490
7 1998 12.21 115.7505921 1413.31473 1.12665 1049.17771 1.42753 1047.05184
8 1998 11.29 115.7505921 1306.82419 1.13661 968.98758 1.43973 966.71877
9 1998 11.21 115.7505921 1297.56414 1.04974 961.07168 1.32927 958.53941
10 1998 10.92 115.7505921 1263.99647 1.04116 935.16783 1.31802 932.42420
11 1998 11.62 115.7505921 1345.02188 1.01310 994.10138 1.28211 990.91287
12 1998 11.53 115.7505921 1334.60433 1.07694 985.32486 1.36254 981.87545
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -0.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 985.32 926.70
TOTAL RETURN -1.47% -7.33%
WITH DEATH BENEFIT CHARGE
ERV 981.88 923.45
TOTAL RETURN -1.81% -7.65%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 10.29 102.2844055 1052.50653 1000.00000 1000.00000
1 1996 10.48 102.2844055 1071.94057 1.08333 1017.38120 1.37503 1017.08950
2 1996 10.51 102.2844055 1075.00910 1.10216 1019.19138 1.39853 1018.60248
3 1996 10.42 102.2844055 1065.80350 1.10412 1009.35965 1.40061 1008.47930
4 1996 10.51 102.2844055 1075.00910 1.09347 1016.98425 1.38669 1015.80308
5 1996 10.57 102.2844055 1081.14617 1.10173 1021.68833 1.39676 1020.20538
6 1996 10.59 102.2844055 1083.19185 1.10683 1022.51468 1.40282 1020.73294
7 1996 10.71 102.2844055 1095.46598 1.10772 1032.99353 1.40354 1030.89578
8 1996 10.90 102.2844055 1114.90002 1.11908 1050.20020 1.41752 1047.76680
9 1996 11.18 102.2844055 1143.53965 1.13772 1076.04010 1.44071 1073.24119
10 1996 11.19 102.2844055 1144.56250 1.16571 1075.83686 1.47574 1072.72542
11 1996 11.41 102.2844055 1167.06507 1.16549 1095.82277 1.47503 1092.34061
12 1996 10.87 108.2564221 1176.74731 1.18714 1103.72682 1.50200 1099.90091
1 1997 11.02 108.2564221 1192.98577 1.19570 1117.76194 1.51240 1113.56654
2 1997 11.24 108.2564221 1216.80218 1.21091 1138.86570 1.53119 1134.26626
3 1997 11.01 108.2564221 1191.90321 1.23377 1114.32774 1.55965 1109.49653
4 1997 11.13 108.2564221 1204.89398 1.20719 1125.26581 1.52559 1120.06354
5 1997 11.42 108.2564221 1236.28834 1.21904 1153.36637 1.54012 1147.70746
6 1997 11.61 108.2564221 1256.85706 1.24948 1171.30599 1.57814 1165.22428
7 1997 11.87 108.2564221 1285.00373 1.26891 1196.26788 1.60222 1189.71666
8 1997 11.89 108.2564221 1287.16886 1.29596 1196.98753 1.63590 1190.08534
9 1997 12.12 108.2564221 1312.06784 1.29674 1218.84531 1.63641 1211.46993
10 1997 12.09 108.2564221 1308.82014 1.32042 1214.50795 1.66581 1206.80543
11 1997 12.20 108.2564221 1320.72835 1.31572 1224.24235 1.65940 1216.12606
12 1997 12.35 108.2564221 1336.96681 1.32626 1237.96824 1.67221 1229.40622
1 1998 12.60 108.2564221 1364.03092 1.34113 1261.68720 1.69047 1252.60251
2 1998 12.66 108.2564221 1370.52630 1.36683 1266.32840 1.72237 1256.84491
3 1998 12.84 108.2564221 1390.01246 1.37186 1282.96122 1.72820 1272.98654
4 1998 12.04 115.7505921 1393.63713 1.38987 1284.91686 1.75040 1274.55565
5 1998 12.08 115.7505921 1398.26715 1.39199 1287.79369 1.75256 1277.03750
6 1998 12.09 115.7505921 1399.42466 1.39511 1287.46464 1.75597 1276.33868
7 1998 12.21 115.7505921 1413.31473 1.39475 1298.84869 1.75501 1287.25204
8 1998 11.29 115.7505921 1306.82419 1.40709 1199.57586 1.77001 1188.49006
9 1998 11.21 115.7505921 1297.56414 1.29954 1189.77622 1.63421 1178.43431
10 1998 10.92 115.7505921 1263.99647 1.28892 1157.70807 1.62039 1146.32811
11 1998 11.62 115.7505921 1345.02188 1.25418 1230.66594 1.57624 1218.23444
12 1998 11.53 115.7505921 1334.60433 1.33322 1219.80089 1.67511 1207.12378
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.80%
GROSS ANNUAL RETURN = 8.24%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1219.80 1167.96
TOTAL RETURN 21.98% 16.80%
AVERAGE ANNUAL RETURN 6.85% 5.31%
WITH DEATH BENEFIT CHARGE
ERV 1207.12 1155.82
TOTAL RETURN 20.71% 15.58%
AVERAGE ANNUAL RETURN 6.48% 4.95%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 12.60 108.2564221 1364.03092 1.40248 1319.39829 1.76473 1307.62403
2 1998 12.66 108.2564221 1370.52630 1.42935 1324.25179 1.79803 1312.05278
3 1998 12.84 108.2564221 1390.01246 1.43461 1341.64541 1.80412 1328.90345
4 1998 12.04 115.7505921 1393.63713 1.45345 1343.69050 1.82729 1330.54148
5 1998 12.08 115.7505921 1398.26715 1.45566 1346.69892 1.82954 1333.13234
6 1998 12.09 115.7505921 1399.42466 1.45892 1346.35482 1.83310 1332.40283
7 1998 12.21 115.7505921 1413.31473 1.45855 1358.25959 1.83210 1343.79557
8 1998 11.29 115.7505921 1306.82419 1.47145 1254.44590 1.84776 1240.69540
9 1998 11.21 115.7505921 1297.56414 1.35898 1244.19801 1.70600 1230.19794
10 1998 10.92 115.7505921 1263.99647 1.34788 1210.66303 1.69156 1196.68145
11 1998 11.62 115.7505921 1345.02188 1.31155 1286.95808 1.64548 1271.74632
12 1998 11.53 115.7505921 1334.60433 1.39420 1275.59604 1.74869 1260.14761
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.46%
GROSS ANNUAL RETURN = 8.77%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1275.60 1232.23
TOTAL RETURN 27.56% 23.22%
AVERAGE ANNUAL RETURN 7.35% 6.27%
WITH DEATH BENEFIT CHARGE
ERV 1260.15 1217.30
TOTAL RETURN 26.01% 21.73%
AVERAGE ANNUAL RETURN 6.97% 5.90%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 12.60 108.2564221 1364.03092 1.40248 1319.39829 1.76473 1307.62403
2 1998 12.66 108.2564221 1370.52630 1.42935 1324.25179 1.79803 1312.05278
3 1998 12.84 108.2564221 1390.01246 1.43461 1341.64541 1.80412 1328.90345
4 1998 12.04 115.7505921 1393.63713 1.45345 1343.69050 1.82729 1330.54148
5 1998 12.08 115.7505921 1398.26715 1.45566 1346.69892 1.82954 1333.13234
6 1998 12.09 115.7505921 1399.42466 1.45892 1346.35482 1.83310 1332.40283
7 1998 12.21 115.7505921 1413.31473 1.45855 1358.25959 1.83210 1343.79557
8 1998 11.29 115.7505921 1306.82419 1.47145 1254.44590 1.84776 1240.69540
9 1998 11.21 115.7505921 1297.56414 1.35898 1244.19801 1.70600 1230.19794
10 1998 10.92 115.7505921 1263.99647 1.34788 1210.66303 1.69156 1196.68145
11 1998 11.62 115.7505921 1345.02188 1.31155 1286.95808 1.64548 1271.74632
12 1998 11.53 115.7505921 1334.60433 1.39420 1275.59604 1.74869 1260.14761
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.46%
GROSS ANNUAL RETURN = 8.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1275.60 1232.23
TOTAL RETURN 27.56% 23.22%
AVERAGE ANNUAL RETURN 7.03% 6.00%
WITH DEATH BENEFIT CHARGE
ERV 1260.15 1217.30
TOTAL RETURN 26.01% 21.73%
AVERAGE ANNUAL RETURN 6.67% 5.64%
MFS Research
12/1998
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
4/98 0.3991400000 17.58 2.340 105.408775
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 15.79 103.0686817 1627.45448 1000.00000 1000.00000
1 1998 16.12 103.0686817 1661.46715 1.08333 1019.81597 1.37503 1019.52427
2 1998 17.41 103.0686817 1794.42575 1.10480 1100.32175 1.40188 1099.70963
3 1998 18.30 103.0686817 1886.15688 1.19202 1155.37824 1.51214 1154.41470
4 1998 18.02 105.4087746 1899.46612 1.25166 1162.27924 1.58736 1160.97321
5 1998 17.69 105.4087746 1864.68122 1.25914 1139.73531 1.59638 1138.11595
6 1998 18.35 105.4087746 1934.25101 1.23471 1181.02322 1.56495 1179.01321
7 1998 17.91 105.4087746 1887.87115 1.27944 1151.42497 1.62118 1149.12141
8 1998 14.85 105.4087746 1565.32030 1.24738 953.45172 1.58008 951.20903
9 1998 15.66 105.4087746 1650.70141 1.03291 1004.42527 1.30794 1001.78522
10 1998 16.56 105.4087746 1745.56931 1.08813 1061.06273 1.37749 1057.98159
11 1998 17.78 105.4087746 1874.16801 1.14948 1138.08333 1.45476 1134.46992
12 1998 19.05 105.4087746 2008.03716 1.23292 1218.14207 1.55993 1213.94355
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1218.14 1145.66
TOTAL RETURN 21.81% 14.57%
WITH DEATH BENEFIT CHARGE
ERV 1213.94 1141.71
TOTAL RETURN 21.39% 14.17%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 15.79 103.0686817 1627.45448 1000.00000 1000.00000
1 1998 16.12 103.0686817 1661.46715 1.08333 1019.81597 1.37503 1019.52427
2 1998 17.41 103.0686817 1794.42575 1.10480 1100.32175 1.40188 1099.70963
3 1998 18.30 103.0686817 1886.15688 1.19202 1155.37824 1.51214 1154.41470
4 1998 18.02 105.4087746 1899.46612 1.25166 1162.27924 1.58736 1160.97321
5 1998 17.69 105.4087746 1864.68122 1.25914 1139.73531 1.59638 1138.11595
6 1998 18.35 105.4087746 1934.25101 1.23471 1181.02322 1.56495 1179.01321
7 1998 17.91 105.4087746 1887.87115 1.27944 1151.42497 1.62118 1149.12141
8 1998 14.85 105.4087746 1565.32030 1.24738 953.45172 1.58008 951.20903
9 1998 15.66 105.4087746 1650.70141 1.03291 1004.42527 1.30794 1001.78522
10 1998 16.56 105.4087746 1745.56931 1.08813 1061.06273 1.37749 1057.98159
11 1998 17.78 105.4087746 1874.16801 1.14948 1138.08333 1.45476 1134.46992
12 1998 19.05 105.4087746 2008.03716 1.23292 1218.14207 1.55993 1213.94355
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.39%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1218.14 1145.66
TOTAL RETURN 21.81% 14.57%
WITH DEATH BENEFIT CHARGE
ERV 1213.94 1141.71
TOTAL RETURN 21.39% 14.17%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 10.89 101.5830869 1106.23982 1000.00000 1000.00000
1 1996 11.12 101.5830869 1129.60393 1.08333 1020.03696 1.37503 1019.74526
2 1996 11.54 101.5830869 1172.26882 1.10504 1057.45850 1.40218 1056.85864
3 1996 11.52 101.5830869 1170.23716 1.14558 1054.48023 1.45322 1053.57378
4 1996 11.98 101.5830869 1216.96538 1.14235 1095.44386 1.44870 1094.19486
5 1996 12.37 101.5830869 1256.58278 1.18673 1129.91849 1.50455 1128.31101
6 1996 12.21 101.5830869 1240.32949 1.22408 1114.07946 1.55147 1112.16538
7 1996 11.60 101.5830869 1178.36381 1.20692 1057.21419 1.52926 1055.07339
8 1996 11.96 101.5830869 1214.93372 1.14532 1088.87897 1.45076 1086.36629
9 1996 12.68 101.5830869 1288.07354 1.17962 1153.25059 1.49379 1150.27248
10 1996 12.79 101.5830869 1299.24768 1.24935 1162.00578 1.58166 1158.66952
11 1996 13.55 101.5830869 1376.45083 1.25884 1229.79498 1.59321 1225.92610
12 1996 13.13 103.0686817 1353.29179 1.33228 1207.77117 1.68569 1203.61398
1 1997 13.64 103.0686817 1405.85682 1.30842 1253.37542 1.65501 1248.71016
2 1997 13.61 103.0686817 1402.76476 1.35782 1249.26091 1.71702 1244.24671
3 1997 12.86 103.0686817 1325.46325 1.35337 1179.06509 1.71088 1173.96970
4 1997 13.45 103.0686817 1386.27377 1.27732 1231.88174 1.61425 1226.21565
5 1997 14.38 103.0686817 1482.12764 1.33454 1315.72564 1.68609 1309.31622
6 1997 14.92 103.0686817 1537.78473 1.42537 1363.70861 1.80035 1356.68352
7 1997 16.03 103.0686817 1652.19097 1.47735 1463.68679 1.86549 1455.75092
8 1997 15.33 103.0686817 1580.04289 1.58566 1398.18467 2.00171 1390.17931
9 1997 16.12 103.0686817 1661.46715 1.51470 1468.72254 1.91154 1459.90779
10 1997 15.30 103.0686817 1576.95083 1.59112 1392.41974 2.00742 1383.63707
11 1997 15.76 103.0686817 1624.36242 1.50845 1432.77488 1.90255 1423.33407
12 1997 15.79 103.0686817 1627.45448 1.55217 1433.95007 1.95713 1424.08633
1 1998 16.12 103.0686817 1661.46715 1.55345 1462.36518 1.95817 1451.89058
2 1998 17.41 103.0686817 1794.42575 1.58423 1577.80646 1.99640 1566.08145
3 1998 18.30 103.0686817 1886.15688 1.70929 1656.75470 2.15341 1643.98619
4 1998 18.02 105.4087746 1899.46612 1.79482 1666.65040 2.26054 1653.32608
5 1998 17.69 105.4087746 1864.68122 1.80554 1634.32352 2.27338 1620.77536
6 1998 18.35 105.4087746 1934.25101 1.77052 1693.52833 2.22862 1679.01660
7 1998 17.91 105.4087746 1887.87115 1.83466 1651.08591 2.30870 1636.44810
8 1998 14.85 105.4087746 1565.32030 1.78868 1367.20216 2.25017 1354.60378
9 1998 15.66 105.4087746 1650.70141 1.48114 1440.29568 1.86263 1426.62863
10 1998 16.56 105.4087746 1745.56931 1.56032 1521.51098 1.96166 1506.65712
11 1998 17.78 105.4087746 1874.16801 1.64830 1631.95467 2.07170 1615.58310
12 1998 19.05 105.4087746 2008.03716 1.76795 1746.75490 2.22148 1728.76042
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 81.52%
GROSS ANNUAL RETURN = 21.99%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1746.75 1672.52
TOTAL RETURN 74.68% 67.25%
AVERAGE ANNUAL RETURN 20.43% 18.70%
WITH DEATH BENEFIT CHARGE
ERV 1728.76 1655.29
TOTAL RETURN 72.88% 65.53%
AVERAGE ANNUAL RETURN 20.02% 18.29%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 16.12 103.0686817 1661.46715 1.70753 1607.41360 2.14869 1593.15235
2 1998 17.41 103.0686817 1794.42575 1.74136 1734.30521 2.19064 1718.45344
3 1998 18.30 103.0686817 1886.15688 1.87883 1821.08414 2.36293 1803.93792
4 1998 18.02 105.4087746 1899.46612 1.97284 1831.96137 2.48047 1814.18653
5 1998 17.69 105.4087746 1864.68122 1.98462 1796.42806 2.49457 1778.46879
6 1998 18.35 105.4087746 1934.25101 1.94613 1861.50525 2.44545 1842.37661
7 1998 17.91 105.4087746 1887.87115 2.01663 1814.85307 2.53333 1795.66641
8 1998 14.85 105.4087746 1565.32030 1.96609 1502.81158 2.46910 1486.40003
9 1998 15.66 105.4087746 1650.70141 1.62805 1583.15508 2.04385 1565.43255
10 1998 16.56 105.4087746 1745.56931 1.71508 1672.42592 2.15252 1653.24741
11 1998 17.78 105.4087746 1874.16801 1.81179 1793.82425 2.27327 1772.77135
12 1998 19.05 105.4087746 2008.03716 1.94331 1920.01124 2.43762 1896.96026
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 100.80%
GROSS ANNUAL RETURN = 22.52%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1920.01 1854.73
TOTAL RETURN 92.00% 85.47%
AVERAGE ANNUAL RETURN 20.93% 19.72%
WITH DEATH BENEFIT CHARGE
ERV 1896.96 1832.46
TOTAL RETURN 89.70% 83.25%
AVERAGE ANNUAL RETURN 20.50% 19.30%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 16.12 103.0686817 1661.46715 1.70753 1607.41360 2.14869 1593.15235
2 1998 17.41 103.0686817 1794.42575 1.74136 1734.30521 2.19064 1718.45344
3 1998 18.30 103.0686817 1886.15688 1.87883 1821.08414 2.36293 1803.93792
4 1998 18.02 105.4087746 1899.46612 1.97284 1831.96137 2.48047 1814.18653
5 1998 17.69 105.4087746 1864.68122 1.98462 1796.42806 2.49457 1778.46879
6 1998 18.35 105.4087746 1934.25101 1.94613 1861.50525 2.44545 1842.37661
7 1998 17.91 105.4087746 1887.87115 2.01663 1814.85307 2.53333 1795.66641
8 1998 14.85 105.4087746 1565.32030 1.96609 1502.81158 2.46910 1486.40003
9 1998 15.66 105.4087746 1650.70141 1.62805 1583.15508 2.04385 1565.43255
10 1998 16.56 105.4087746 1745.56931 1.71508 1672.42592 2.15252 1653.24741
11 1998 17.78 105.4087746 1874.16801 1.81179 1793.82425 2.27327 1772.77135
12 1998 19.05 105.4087746 2008.03716 1.94331 1920.01124 2.43762 1896.96026
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 100.80%
GROSS ANNUAL RETURN = 21.48%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1920.01 1854.73
TOTAL RETURN 92.00% 85.47%
AVERAGE ANNUAL RETURN 19.97% 18.81%
WITH DEATH BENEFIT CHARGE
ERV 1896.96 1832.46
TOTAL RETURN 89.70% 83.25%
AVERAGE ANNUAL RETURN 19.56% 18.41%
MFS Value Series
12/1998
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
12/98 0.0299500000 14.65 0.237 116.247718
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 11.68 116.0105495 1355.00322 1000.00000 1000.00000
1 1998 11.88 116.0105495 1378.20533 1.08333 1016.03995 1.37503 1015.74825
2 1998 12.88 116.0105495 1494.21588 1.10071 1100.46449 1.39669 1099.85226
3 1998 13.66 116.0105495 1584.70411 1.19217 1165.91536 1.51233 1164.94589
4 1998 13.95 116.0105495 1618.34717 1.26307 1189.40451 1.60184 1188.07570
5 1998 13.69 116.0105495 1588.18442 1.28852 1165.94788 1.63364 1164.29871
6 1998 13.87 116.0105495 1609.06632 1.26311 1180.01498 1.60095 1178.00629
7 1998 13.48 116.0105495 1563.82221 1.27835 1145.55669 1.61980 1143.26302
8 1998 11.52 116.0105495 1336.44153 1.24102 977.75105 1.57202 975.45988
9 1998 11.94 116.0105495 1385.16596 1.05923 1012.33899 1.34129 1009.68223
10 1998 13.22 116.0105495 1533.65946 1.09670 1119.76774 1.38835 1116.53452
11 1998 13.95 116.0105495 1618.34717 1.21308 1180.38752 1.53527 1176.65358
12 1998 14.78 116.2477179 1718.14127 1.27875 1251.89644 1.61794 1247.59306
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1251.90 1177.41
TOTAL RETURN 25.19% 17.74%
WITH DEATH BENEFIT CHARGE
ERV 1247.59 1173.36
TOTAL RETURN 24.76% 17.34%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 11.68 116.0105495 1355.00322 1000.00000 1000.00000
1 1998 11.88 116.0105495 1378.20533 1.08333 1016.03995 1.37503 1015.74825
2 1998 12.88 116.0105495 1494.21588 1.10071 1100.46449 1.39669 1099.85226
3 1998 13.66 116.0105495 1584.70411 1.19217 1165.91536 1.51233 1164.94589
4 1998 13.95 116.0105495 1618.34717 1.26307 1189.40451 1.60184 1188.07570
5 1998 13.69 116.0105495 1588.18442 1.28852 1165.94788 1.63364 1164.29871
6 1998 13.87 116.0105495 1609.06632 1.26311 1180.01498 1.60095 1178.00629
7 1998 13.48 116.0105495 1563.82221 1.27835 1145.55669 1.61980 1143.26302
8 1998 11.52 116.0105495 1336.44153 1.24102 977.75105 1.57202 975.45988
9 1998 11.94 116.0105495 1385.16596 1.05923 1012.33899 1.34129 1009.68223
10 1998 13.22 116.0105495 1533.65946 1.09670 1119.76774 1.38835 1116.53452
11 1998 13.95 116.0105495 1618.34717 1.21308 1180.38752 1.53527 1176.65358
12 1998 14.78 116.2477179 1718.14127 1.27875 1251.89644 1.61794 1247.59306
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 26.80%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1251.90 1177.41
TOTAL RETURN 25.19% 17.74%
WITH DEATH BENEFIT CHARGE
ERV 1247.59 1173.36
TOTAL RETURN 24.76% 17.34%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 11.88 116.0105495 1378.20533 1.44158 1352.03159 1.82083 1345.06464
2 1998 12.88 116.0105495 1494.21588 1.46470 1464.37426 1.84951 1456.43606
3 1998 13.66 116.0105495 1584.70411 1.58641 1551.46891 2.00265 1542.63374
4 1998 13.95 116.0105495 1618.34717 1.68076 1582.72563 2.12117 1573.26248
5 1998 13.69 116.0105495 1588.18442 1.71462 1551.51218 2.16329 1541.77673
6 1998 13.87 116.0105495 1609.06632 1.68080 1570.23110 2.11999 1559.92846
7 1998 13.48 116.0105495 1563.82221 1.70108 1524.37788 2.14495 1513.92106
8 1998 11.52 116.0105495 1336.44153 1.65141 1301.08102 2.08169 1291.71435
9 1998 11.94 116.0105495 1385.16596 1.40950 1347.10676 1.77615 1337.03195
10 1998 13.22 116.0105495 1533.65946 1.45937 1490.06085 1.83846 1478.52689
11 1998 13.95 116.0105495 1618.34717 1.61423 1570.72683 2.03302 1558.13718
12 1998 14.78 116.2477179 1718.14127 1.70162 1665.88284 2.14249 1652.07600
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 71.81%
GROSS ANNUAL RETURN = 25.52%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1665.88 1595.08
TOTAL RETURN 66.59% 59.51%
AVERAGE ANNUAL RETURN 23.91% 21.67%
WITH DEATH BENEFIT CHARGE
ERV 1652.08 1581.86
TOTAL RETURN 65.21% 58.19%
AVERAGE ANNUAL RETURN 23.47% 21.24%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1997 11.46 100.5084986 1151.82739 1000.00000 1000.00000
6 1997 11.86 100.5084986 1192.03079 1.08333 1033.82068 1.37503 1033.52898
7 1997 12.66 100.5084986 1272.43759 1.11997 1102.43566 1.42114 1101.82312
8 1997 12.54 100.5084986 1260.37657 1.19431 1090.79173 1.51504 1089.86426
9 1997 13.11 100.5084986 1317.66642 1.18169 1139.19148 1.49860 1137.90494
10 1997 12.85 100.5084986 1291.53421 1.23412 1115.36470 1.56466 1113.77314
11 1997 13.30 100.5084986 1336.76303 1.20831 1153.21585 1.53148 1151.24539
12 1997 11.68 116.0105495 1355.00322 1.24932 1167.70221 1.58300 1165.37118
1 1998 11.88 116.0105495 1378.20533 1.26501 1186.43210 1.60242 1183.72374
2 1998 12.88 116.0105495 1494.21588 1.28530 1285.01482 1.62766 1281.73613
3 1998 13.66 116.0105495 1584.70411 1.39210 1361.44194 1.76243 1357.59437
4 1998 13.95 116.0105495 1618.34717 1.47490 1388.87028 1.86674 1384.54918
5 1998 13.69 116.0105495 1588.18442 1.50461 1361.47991 1.90380 1356.84016
6 1998 13.87 116.0105495 1609.06632 1.47494 1377.90610 1.86570 1372.81458
7 1998 13.48 116.0105495 1563.82221 1.49273 1337.66907 1.88767 1332.32578
8 1998 11.52 116.0105495 1336.44153 1.44914 1141.72206 1.83199 1136.77283
9 1998 11.94 116.0105495 1385.16596 1.23687 1182.11047 1.56310 1176.65457
10 1998 13.22 116.0105495 1533.65946 1.28062 1307.55526 1.61794 1301.17716
11 1998 13.95 116.0105495 1618.34717 1.41652 1378.34112 1.78916 1371.23817
12 1998 14.78 116.2477179 1718.14127 1.49320 1461.84223 1.88550 1453.90899
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 49.17%
GROSS ANNUAL RETURN = 27.08%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1461.84 1387.29
TOTAL RETURN 46.18% 38.73%
AVERAGE ANNUAL RETURN 25.55% 21.68%
WITH DEATH BENEFIT CHARGE
ERV 1453.91 1379.76
TOTAL RETURN 45.39% 37.98%
AVERAGE ANNUAL RETURN 25.15% 21.28%
MFS World Government
12/1998
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
4/98 0.1280000000 10.20 1.457 117.594913
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 10.21 116.1375007 1185.76388 1000.00000 1000.00000
1 1998 10.28 116.1375007 1193.89351 1.08333 1005.77269 1.37503 1005.48099
2 1998 10.31 116.1375007 1197.37763 1.08959 1007.61824 1.38257 1007.03270
3 1998 10.20 116.1375007 1184.60251 1.09159 995.77612 1.38470 994.90371
4 1998 10.24 117.5949125 1204.17190 1.07876 1011.14738 1.36803 1009.97130
5 1998 10.33 117.5949125 1214.75545 1.09541 1018.93901 1.38874 1017.45925
6 1998 10.30 117.5949125 1211.22760 1.10385 1014.87599 1.39904 1013.10535
7 1998 10.26 117.5949125 1206.52380 1.09945 1009.83528 1.39305 1007.77790
8 1998 10.21 117.5949125 1200.64406 1.09399 1003.82007 1.38573 1001.48098
9 1998 10.72 117.5949125 1260.61746 1.08747 1052.87444 1.37707 1050.12891
10 1998 10.74 117.5949125 1262.96936 1.14061 1053.69814 1.44396 1050.64415
11 1998 10.74 117.5949125 1262.96936 1.14151 1052.55664 1.44467 1049.19947
12 1998 10.88 117.5949125 1279.43265 1.14027 1065.13685 1.44268 1061.43351
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1065.14 1001.76
TOTAL RETURN 6.51% 0.18%
WITH DEATH BENEFIT CHARGE
ERV 1061.43 998.28
TOTAL RETURN 6.14% -0.17%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 10.21 116.1375007 1185.76388 1000.00000 1000.00000
1 1998 10.28 116.1375007 1193.89351 1.08333 1005.77269 1.37503 1005.48099
2 1998 10.31 116.1375007 1197.37763 1.08959 1007.61824 1.38257 1007.03270
3 1998 10.20 116.1375007 1184.60251 1.09159 995.77612 1.38470 994.90371
4 1998 10.24 117.5949125 1204.17190 1.07876 1011.14738 1.36803 1009.97130
5 1998 10.33 117.5949125 1214.75545 1.09541 1018.93901 1.38874 1017.45925
6 1998 10.30 117.5949125 1211.22760 1.10385 1014.87599 1.39904 1013.10535
7 1998 10.26 117.5949125 1206.52380 1.09945 1009.83528 1.39305 1007.77790
8 1998 10.21 117.5949125 1200.64406 1.09399 1003.82007 1.38573 1001.48098
9 1998 10.72 117.5949125 1260.61746 1.08747 1052.87444 1.37707 1050.12891
10 1998 10.74 117.5949125 1262.96936 1.14061 1053.69814 1.44396 1050.64415
11 1998 10.74 117.5949125 1262.96936 1.14151 1052.55664 1.44467 1049.19947
12 1998 10.88 117.5949125 1279.43265 1.14027 1065.13685 1.44268 1061.43351
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1065.14 1001.76
TOTAL RETURN 6.51% 0.18%
WITH DEATH BENEFIT CHARGE
ERV 1061.43 998.28
TOTAL RETURN 6.14% -0.17%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 10.17 113.3556490 1152.82695 1000.00000 1000.00000
1 1996 10.13 113.3556490 1148.29272 1.08333 994.98353 1.37503 994.69183
2 1996 9.95 113.3556490 1127.88871 1.07790 976.22577 1.36773 975.64941
3 1996 9.94 113.3556490 1126.75515 1.05758 974.18706 1.34155 973.32731
4 1996 10.01 113.3556490 1134.69005 1.05537 979.99216 1.33836 978.84337
5 1996 10.04 113.3556490 1138.09072 1.06166 981.86754 1.34594 980.43103
6 1996 10.10 113.3556490 1144.89206 1.06369 986.67159 1.34813 984.94205
7 1996 10.27 113.3556490 1164.16252 1.06889 1002.21003 1.35433 1000.16595
8 1996 10.29 113.3556490 1166.42963 1.08573 1003.07603 1.37526 1000.73844
9 1996 10.34 113.3556490 1172.09741 1.08667 1006.86340 1.37605 1004.22506
10 1996 10.52 113.3556490 1192.50143 1.09077 1023.30023 1.38084 1020.32589
11 1996 10.66 113.3556490 1208.37122 1.10858 1035.80972 1.40298 1032.50139
12 1996 10.58 113.3556490 1199.30277 1.12213 1026.91416 1.41972 1023.33306
1 1997 10.33 113.3556490 1170.96385 1.11249 1001.53621 1.40712 997.74511
2 1997 10.33 113.3556490 1170.96385 1.08500 1000.45122 1.37193 996.37318
3 1997 10.24 113.3556490 1160.76185 1.08382 990.65098 1.37005 986.32224
4 1997 9.87 116.1375007 1146.27713 1.07321 977.21581 1.35623 972.65807
5 1997 10.08 116.1375007 1170.66601 1.05865 996.94898 1.33744 992.01548
6 1997 10.15 116.1375007 1178.79563 1.08003 1002.79221 1.36405 997.54043
7 1997 10.04 116.1375007 1166.02051 1.08636 990.83815 1.37165 985.35799
8 1997 10.06 116.1375007 1168.34326 1.07341 991.73853 1.35490 985.96596
9 1997 10.30 116.1375007 1196.21626 1.07438 1014.32391 1.35574 1008.13227
10 1997 10.41 116.1375007 1208.99138 1.09885 1024.05764 1.38622 1017.51252
11 1997 10.24 116.1375007 1189.24801 1.10940 1006.22493 1.39911 999.49696
12 1997 10.21 116.1375007 1185.76388 1.09008 1002.18692 1.37434 995.19441
1 1998 10.28 116.1375007 1193.89351 1.08570 1007.97224 1.36843 1000.64906
2 1998 10.31 116.1375007 1197.37763 1.09197 1009.82182 1.37593 1002.19332
3 1998 10.20 116.1375007 1184.60251 1.09397 997.95380 1.37805 990.12261
4 1998 10.24 117.5949125 1204.17190 1.08112 1013.35868 1.36145 1005.11779
5 1998 10.33 117.5949125 1214.75545 1.09781 1021.16735 1.38207 1012.56976
6 1998 10.30 117.5949125 1211.22760 1.10626 1017.09545 1.39232 1008.23678
7 1998 10.26 117.5949125 1206.52380 1.10185 1012.04371 1.38636 1002.93494
8 1998 10.21 117.5949125 1200.64406 1.09638 1006.01534 1.37907 996.66827
9 1998 10.72 117.5949125 1260.61746 1.08985 1055.17700 1.37045 1045.08242
10 1998 10.74 117.5949125 1262.96936 1.14311 1056.00250 1.43702 1045.59518
11 1998 10.74 117.5949125 1262.96936 1.14400 1054.85850 1.43773 1044.15745
12 1998 10.88 117.5949125 1279.43265 1.14276 1067.46622 1.43575 1056.33269
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 10.98%
GROSS ANNUAL RETURN = 3.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1067.47 1022.10
TOTAL RETURN 6.75% 2.21%
AVERAGE ANNUAL RETURN 2.20% 0.73%
WITH DEATH BENEFIT CHARGE
ERV 1056.33 1011.44
TOTAL RETURN 5.63% 1.14%
AVERAGE ANNUAL RETURN 1.84% 0.38%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 10.28 116.1375007 1193.89351 1.22630 1138.50370 1.53714 1124.02368
2 1998 10.31 116.1375007 1197.37763 1.23338 1140.59280 1.54557 1125.75834
3 1998 10.20 116.1375007 1184.60251 1.23564 1127.18789 1.54796 1112.19938
4 1998 10.24 117.5949125 1204.17190 1.22112 1144.58768 1.52931 1129.04338
5 1998 10.33 117.5949125 1214.75545 1.23997 1153.40757 1.55247 1137.41414
6 1998 10.30 117.5949125 1211.22760 1.24952 1148.80836 1.56398 1132.54693
7 1998 10.26 117.5949125 1206.52380 1.24454 1143.10242 1.55729 1126.59140
8 1998 10.21 117.5949125 1200.64406 1.23836 1136.29339 1.54910 1119.55208
9 1998 10.72 117.5949125 1260.61746 1.23098 1191.82143 1.53942 1173.93544
10 1998 10.74 117.5949125 1262.96936 1.29114 1192.75384 1.61420 1174.51142
11 1998 10.74 117.5949125 1262.96936 1.29215 1191.46169 1.61499 1172.89643
12 1998 10.88 117.5949125 1279.43265 1.29075 1205.70209 1.61277 1186.57281
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 27.94%
GROSS ANNUAL RETURN = 5.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1205.70 1174.96
TOTAL RETURN 20.57% 17.50%
AVERAGE ANNUAL RETURN 4.20% 3.61%
WITH DEATH BENEFIT CHARGE
ERV 1186.57 1156.32
TOTAL RETURN 18.66% 15.63%
AVERAGE ANNUAL RETURN 3.83% 3.25%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 10.28 116.1375007 1193.89351 1.11054 1031.03497 1.39730 1021.76076
2 1998 10.31 116.1375007 1197.37763 1.11695 1032.92687 1.40496 1023.33759
3 1998 10.20 116.1375007 1184.60251 1.11900 1020.78731 1.40712 1011.01222
4 1998 10.24 117.5949125 1204.17190 1.10585 1036.54466 1.39018 1026.32377
5 1998 10.33 117.5949125 1214.75545 1.12292 1044.53199 1.41123 1033.93296
6 1998 10.30 117.5949125 1211.22760 1.13158 1040.36693 1.42169 1029.50856
7 1998 10.26 117.5949125 1206.52380 1.12706 1035.19960 1.41561 1024.09486
8 1998 10.21 117.5949125 1200.64406 1.12147 1029.03330 1.40816 1017.69598
9 1998 10.72 117.5949125 1260.61746 1.11479 1079.31979 1.39937 1067.13157
10 1998 10.74 117.5949125 1262.96936 1.16926 1080.16418 1.46734 1067.65515
11 1998 10.74 117.5949125 1262.96936 1.17018 1078.99401 1.46806 1066.18709
12 1998 10.88 117.5949125 1279.43265 1.16891 1091.89019 1.46604 1078.61920
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.26%
GROSS ANNUAL RETURN = 3.79%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1091.89 1054.77
TOTAL RETURN 9.19% 5.48%
AVERAGE ANNUAL RETURN 2.48% 1.50%
WITH DEATH BENEFIT CHARGE
ERV 1078.62 1041.95
TOTAL RETURN 7.86% 4.19%
AVERAGE ANNUAL RETURN 2.13% 1.15%
Morgan Stanley Emerging Markets
12/1998
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
7/98 0.0040000000 8.15 0.051 104.264286
12/98 0.0361000000 7.01 0.537 104.801225
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 9.45 104.2131382 984.81416 1000.00000 1000.00000
1 1998 9.07 104.2131382 945.21316 1.08333 958.70503 1.37503 958.41333
2 1998 9.73 104.2131382 1013.99383 1.03860 1027.42887 1.31785 1026.83669
3 1998 10.00 104.2131382 1042.13138 1.11305 1054.82618 1.41193 1053.91868
4 1998 10.10 104.2131382 1052.55270 1.14273 1064.23171 1.44917 1063.00869
5 1998 8.70 104.2131382 906.65430 1.15292 915.56153 1.46167 914.19928
6 1998 7.98 104.2131382 831.62084 0.99186 838.79906 1.25705 837.28436
7 1998 8.28 104.2642858 863.30829 0.90870 869.85132 1.15129 868.03630
8 1998 6.08 104.2642858 633.92686 0.94234 637.78906 1.19358 636.20506
9 1998 6.24 104.2642858 650.60914 0.69094 653.88205 0.87480 652.07249
10 1998 6.80 104.2642858 708.99714 0.70837 711.85540 0.89662 709.69520
11 1998 7.25 104.2642858 755.91607 0.77118 758.19230 0.97585 755.68447
12 1998 7.11 104.8012245 745.13671 0.82137 746.55910 1.03909 743.86931
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -24.34%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 746.56 702.14
TOTAL RETURN -25.34% -29.79%
WITH DEATH BENEFIT CHARGE
ERV 743.87 699.61
TOTAL RETURN -25.61% -30.04%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 9.45 104.2131382 984.81416 1000.00000 1000.00000
1 1998 9.07 104.2131382 945.21316 1.08333 958.70503 1.37503 958.41333
2 1998 9.73 104.2131382 1013.99383 1.03860 1027.42887 1.31785 1026.83669
3 1998 10.00 104.2131382 1042.13138 1.11305 1054.82618 1.41193 1053.91868
4 1998 10.10 104.2131382 1052.55270 1.14273 1064.23171 1.44917 1063.00869
5 1998 8.70 104.2131382 906.65430 1.15292 915.56153 1.46167 914.19928
6 1998 7.98 104.2131382 831.62084 0.99186 838.79906 1.25705 837.28436
7 1998 8.28 104.2642858 863.30829 0.90870 869.85132 1.15129 868.03630
8 1998 6.08 104.2642858 633.92686 0.94234 637.78906 1.19358 636.20506
9 1998 6.24 104.2642858 650.60914 0.69094 653.88205 0.87480 652.07249
10 1998 6.80 104.2642858 708.99714 0.70837 711.85540 0.89662 709.69520
11 1998 7.25 104.2642858 755.91607 0.77118 758.19230 0.97585 755.68447
12 1998 7.11 104.8012245 745.13671 0.82137 746.55910 1.03909 743.86931
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -24.34%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 746.56 702.14
TOTAL RETURN -25.34% -29.79%
WITH DEATH BENEFIT CHARGE
ERV 743.87 699.61
TOTAL RETURN -25.61% -30.04%
<TABLE>
<CAPTION>
Return for Inception
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>
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 12.02 100.1752049 1204.10596 1.21157 1192.64589 1.53426 1189.57675
7 1997 12.83 100.1752049 1285.24788 1.29203 1271.72351 1.63571 1268.10387
8 1997 11.64 100.1752049 1166.03939 1.37770 1152.39172 1.74369 1148.74182
9 1997 12.05 100.1752049 1207.11122 1.24842 1191.73441 1.57956 1187.62482
10 1997 10.21 100.1752049 1022.78884 1.29105 1008.46898 1.63302 1004.64493
11 1997 9.87 100.1752049 988.72927 1.09251 973.79377 1.38142 969.80815
12 1997 9.45 104.2131382 984.81416 1.05494 968.88285 1.33352 964.63444
1 1998 9.07 104.2131382 945.21316 1.04962 928.87286 1.32640 924.51850
2 1998 9.73 104.2131382 1013.99383 1.00628 995.45821 1.27124 990.52203
3 1998 10.00 104.2131382 1042.13138 1.07841 1022.00299 1.36200 1016.64625
4 1998 10.10 104.2131382 1052.55270 1.10717 1031.11585 1.39792 1025.41479
5 1998 8.70 104.2131382 906.65430 1.11704 887.07186 1.40998 881.86811
6 1998 7.98 104.2131382 831.62084 0.96099 812.69802 1.21260 807.67332
7 1998 8.28 104.2642858 863.30829 0.88042 842.78402 1.11058 837.33771
8 1998 6.08 104.2642858 633.92686 0.91302 617.94288 1.15137 613.70531
9 1998 6.24 104.2642858 650.60914 0.66944 633.53510 0.84387 629.01158
10 1998 6.80 104.2642858 708.99714 0.68633 689.70449 0.86491 684.59643
11 1998 7.25 104.2642858 755.91607 0.74718 734.59951 0.94134 728.95926
12 1998 7.11 104.8012245 745.13671 0.79582 723.32831 1.00234 717.56196
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -25.49%
GROSS ANNUAL RETURN = -12.26%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 723.33 692.59
TOTAL RETURN -27.67% -30.74%
AVERAGE ANNUAL RETURN -13.41% -15.07%
WITH DEATH BENEFIT CHARGE
ERV 717.56 687.07
TOTAL RETURN -28.24% -31.29%
AVERAGE ANNUAL RETURN -13.72% -15.37%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1998 8.70 104.2131382 906.65430 1000.00000 1000.00000
6 1998 7.98 104.2131382 831.62084 1.08333 916.15805 1.37503 915.86635
7 1998 8.28 104.2642858 863.30829 0.99250 950.07413 1.25935 949.50447
8 1998 6.08 104.2642858 633.92686 1.02925 696.60972 1.30560 695.91507
9 1998 6.24 104.2642858 650.60914 0.75466 714.18690 0.95691 713.27172
10 1998 6.80 104.2642858 708.99714 0.77370 777.50689 0.98077 776.30251
11 1998 7.25 104.2642858 755.91607 0.84230 828.11726 1.06744 826.60803
12 1998 7.11 104.8012245 745.13671 0.89713 815.41117 1.13661 813.68398
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -17.81%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 815.41 766.89
TOTAL RETURN -18.46% -23.31%
WITH DEATH BENEFIT CHARGE
ERV 813.68 765.27
TOTAL RETURN -18.63% -23.47%
Morgan Stanley Fixed Income
12/1998
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
7/98 0.0386000000 10.77 0.378 105.978859
12/98 0.4906000000 10.66 4.877 110.856273
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 10.41 105.6003842 1099.30000 1000.00000 1000.00000
1 1998 10.56 105.6003842 1115.14006 1.08333 1013.32589 1.37503 1013.03419
2 1998 10.55 105.6003842 1114.08405 1.09777 1011.26853 1.39296 1010.68192
3 1998 10.58 105.6003842 1117.25207 1.09554 1013.04863 1.38972 1012.16618
4 1998 10.63 105.6003842 1122.53208 1.09747 1016.73873 1.39176 1015.55781
5 1998 10.71 105.6003842 1130.98012 1.10147 1023.28911 1.39643 1021.80434
6 1998 10.78 105.6003842 1138.37214 1.10856 1028.86871 1.40501 1027.07778
7 1998 10.77 105.9788592 1141.39231 1.11461 1030.48375 1.41227 1028.39042
8 1998 10.85 105.9788592 1149.87062 1.11636 1037.02187 1.41407 1034.61527
9 1998 11.09 105.9788592 1175.30555 1.12344 1058.83716 1.42263 1056.07814
10 1998 11.02 105.9788592 1167.88703 1.14707 1051.00672 1.45214 1047.96004
11 1998 11.18 105.9788592 1184.84365 1.13859 1065.12775 1.44098 1061.73445
12 1998 10.70 110.8562727 1186.16212 1.15389 1065.15912 1.45992 1061.45601
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1065.16 1001.78
TOTAL RETURN 6.52% 0.18%
WITH DEATH BENEFIT CHARGE
ERV 1061.46 998.30
TOTAL RETURN 6.15% -0.17%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 10.41 105.6003842 1099.30000 1000.00000 1000.00000
1 1998 10.56 105.6003842 1115.14006 1.08333 1013.32589 1.37503 1013.03419
2 1998 10.55 105.6003842 1114.08405 1.09777 1011.26853 1.39296 1010.68192
3 1998 10.58 105.6003842 1117.25207 1.09554 1013.04863 1.38972 1012.16618
4 1998 10.63 105.6003842 1122.53208 1.09747 1016.73873 1.39176 1015.55781
5 1998 10.71 105.6003842 1130.98012 1.10147 1023.28911 1.39643 1021.80434
6 1998 10.78 105.6003842 1138.37214 1.10856 1028.86871 1.40501 1027.07778
7 1998 10.77 105.9788592 1141.39231 1.11461 1030.48375 1.41227 1028.39042
8 1998 10.85 105.9788592 1149.87062 1.11636 1037.02187 1.41407 1034.61527
9 1998 11.09 105.9788592 1175.30555 1.12344 1058.83716 1.42263 1056.07814
10 1998 11.02 105.9788592 1167.88703 1.14707 1051.00672 1.45214 1047.96004
11 1998 11.18 105.9788592 1184.84365 1.13859 1065.12775 1.44098 1061.73445
12 1998 10.70 110.8562727 1186.16212 1.15389 1065.15912 1.45992 1061.45601
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1065.16 1001.78
TOTAL RETURN 6.52% 0.18%
WITH DEATH BENEFIT CHARGE
ERV 1061.46 998.30
TOTAL RETURN 6.15% -0.17%
<TABLE>
<CAPTION>
Return for Inception
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 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
1 1998 10.56 105.6003842 1115.14006 1.17564 1099.66553 1.48701 1095.53284
2 1998 10.55 105.6003842 1114.08405 1.19130 1097.43288 1.50639 1092.98901
3 1998 10.58 105.6003842 1117.25207 1.18889 1099.36465 1.50290 1094.59414
4 1998 10.63 105.6003842 1122.53208 1.19098 1103.36916 1.50510 1098.26198
5 1998 10.71 105.6003842 1130.98012 1.19532 1110.47766 1.51015 1105.01721
6 1998 10.78 105.6003842 1138.37214 1.20302 1116.53266 1.51944 1110.72011
7 1998 10.77 105.9788592 1141.39231 1.20958 1118.28532 1.52728 1112.13964
8 1998 10.85 105.9788592 1149.87062 1.21148 1125.38051 1.52923 1118.87143
9 1998 11.09 105.9788592 1175.30555 1.21916 1149.05456 1.53849 1142.08217
10 1998 11.02 105.9788592 1167.88703 1.24481 1140.55692 1.57040 1133.30296
11 1998 11.18 105.9788592 1184.84365 1.23560 1155.88113 1.55833 1148.19912
12 1998 10.70 110.8562727 1186.16212 1.25220 1155.91517 1.57881 1147.89800
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.62%
GROSS ANNUAL RETURN = 8.94%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1155.92 1096.96
TOTAL RETURN 15.59% 9.70%
AVERAGE ANNUAL RETURN 7.53% 4.75%
WITH DEATH BENEFIT CHARGE
ERV 1147.90 1089.36
TOTAL RETURN 14.79% 8.94%
AVERAGE ANNUAL RETURN 7.16% 4.38%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1998 10.71 105.6003842 1130.98012 1000.00000 1000.00000
6 1998 10.78 105.6003842 1138.37214 1.08333 1005.45261 1.37503 1005.16091
7 1998 10.77 105.9788592 1141.39231 1.08924 1007.03090 1.38213 1006.44554
8 1998 10.85 105.9788592 1149.87062 1.09095 1013.42022 1.38390 1012.53756
9 1998 11.09 105.9788592 1175.30555 1.09787 1034.73901 1.39227 1033.54243
10 1998 11.02 105.9788592 1167.88703 1.12097 1027.08678 1.42116 1025.59756
11 1998 11.18 105.9788592 1184.84365 1.11268 1040.88644 1.41023 1039.07804
12 1998 10.70 110.8562727 1186.16212 1.12763 1040.91709 1.42877 1038.80554
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 4.88%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1040.92 978.98
TOTAL RETURN 4.09% -2.10%
WITH DEATH BENEFIT CHARGE
ERV 1038.81 977.00
TOTAL RETURN 3.88% -2.30%
Pioneer Capital Growth
12/1998
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
6/98 1.1295000000 16.19 7.260 111.316988
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 16.15 104.0573942 1680.52692 1000.00000 1000.00000
1 1998 15.98 104.0573942 1662.83716 1.08333 988.39035 1.37503 988.09865
2 1998 17.01 104.0573942 1770.01628 1.07076 1051.02686 1.35867 1050.42844
3 1998 17.93 104.0573942 1865.74908 1.13861 1106.73391 1.44437 1105.79737
4 1998 18.20 104.0573942 1893.84457 1.19896 1122.20077 1.52051 1120.92857
5 1998 17.86 104.0573942 1858.46506 1.21572 1100.02086 1.54131 1098.44684
6 1998 16.38 111.3169882 1823.37227 1.19169 1078.05783 1.51040 1076.19482
7 1998 15.50 111.3169882 1725.41332 1.16790 1018.97230 1.47980 1016.89747
8 1998 12.85 111.3169882 1430.42330 1.10389 843.65702 1.39827 841.64254
9 1998 12.95 111.3169882 1441.55500 0.91396 849.30848 1.15729 847.03500
10 1998 13.79 111.3169882 1535.06127 0.92008 903.47868 1.16470 900.81311
11 1998 13.97 111.3169882 1555.09833 0.97877 914.29296 1.23865 911.33271
12 1998 14.50 111.3169882 1614.09633 0.99048 947.98932 1.25311 944.65414
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -3.95%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 947.99 891.58
TOTAL RETURN -5.20% -10.84%
WITH DEATH BENEFIT CHARGE
ERV 944.65 888.45
TOTAL RETURN -5.53% -11.16%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 16.15 104.0573942 1680.52692 1000.00000 1000.00000
1 1998 15.98 104.0573942 1662.83716 1.08333 988.39035 1.37503 988.09865
2 1998 17.01 104.0573942 1770.01628 1.07076 1051.02686 1.35867 1050.42844
3 1998 17.93 104.0573942 1865.74908 1.13861 1106.73391 1.44437 1105.79737
4 1998 18.20 104.0573942 1893.84457 1.19896 1122.20077 1.52051 1120.92857
5 1998 17.86 104.0573942 1858.46506 1.21572 1100.02086 1.54131 1098.44684
6 1998 16.38 111.3169882 1823.37227 1.19169 1078.05783 1.51040 1076.19482
7 1998 15.50 111.3169882 1725.41332 1.16790 1018.97230 1.47980 1016.89747
8 1998 12.85 111.3169882 1430.42330 1.10389 843.65702 1.39827 841.64254
9 1998 12.95 111.3169882 1441.55500 0.91396 849.30848 1.15729 847.03500
10 1998 13.79 111.3169882 1535.06127 0.92008 903.47868 1.16470 900.81311
11 1998 13.97 111.3169882 1555.09833 0.97877 914.29296 1.23865 911.33271
12 1998 14.50 111.3169882 1614.09633 0.99048 947.98932 1.25311 944.65414
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -3.95%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 947.99 891.58
TOTAL RETURN -5.20% -10.84%
WITH DEATH BENEFIT CHARGE
ERV 944.65 888.45
TOTAL RETURN -5.53% -11.16%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.57 101.2748487 1171.75000 1000.00000 1000.00000
1 1996 11.83 101.2748487 1198.08146 1.08333 1021.38858 1.37503 1021.09688
2 1996 11.87 101.2748487 1202.13245 1.10650 1023.73563 1.40404 1023.14540
3 1996 12.47 101.2748487 1262.89736 1.10905 1074.37396 1.40686 1073.45609
4 1996 13.21 101.2748487 1337.84075 1.16391 1136.96601 1.47604 1135.68153
5 1996 13.74 101.2748487 1391.51642 1.23171 1181.35064 1.56160 1179.68475
6 1996 13.29 101.8303744 1353.32568 1.27980 1147.64819 1.62211 1145.68571
7 1996 12.20 101.8303744 1242.33057 1.24329 1052.27875 1.57536 1050.14516
8 1996 12.71 101.8303744 1294.26406 1.13997 1095.12749 1.44398 1092.60068
9 1996 12.91 101.8303744 1314.63013 1.18639 1111.17363 1.50236 1108.29109
10 1996 12.75 101.8303744 1298.33727 1.20377 1096.19854 1.52394 1093.03156
11 1996 13.13 101.8303744 1337.03282 1.18755 1127.68200 1.50295 1124.10523
12 1996 13.05 103.2778483 1347.77592 1.22166 1135.52131 1.54568 1131.59177
1 1997 13.77 103.2778483 1422.13597 1.23015 1196.94061 1.55598 1192.46844
2 1997 13.92 103.2778483 1437.62765 1.29669 1208.68250 1.63968 1203.81861
3 1997 13.82 103.2778483 1427.29986 1.30941 1198.69003 1.65529 1193.51520
4 1997 13.60 103.2778483 1404.57874 1.29858 1178.30955 1.64112 1172.87456
5 1997 14.71 103.2778483 1519.21715 1.27650 1273.20390 1.61274 1266.98908
6 1997 14.94 104.0573942 1554.61747 1.37930 1301.49239 1.74215 1294.76991
7 1997 15.81 104.0573942 1645.14740 1.40995 1375.87216 1.78035 1368.38780
8 1997 16.14 104.0573942 1679.48634 1.49053 1403.10003 1.88158 1395.06840
9 1997 16.88 104.0573942 1756.48881 1.52002 1465.91049 1.91827 1457.11238
10 1997 15.98 104.0573942 1662.83716 1.58807 1386.16368 2.00358 1377.41916
11 1997 16.03 104.0573942 1668.04003 1.50168 1388.99919 1.89400 1379.83498
12 1997 16.15 104.0573942 1680.52692 1.50475 1397.89244 1.89732 1388.26706
1 1998 15.98 104.0573942 1662.83716 1.51438 1381.66340 1.90891 1371.74481
2 1998 17.01 104.0573942 1770.01628 1.49680 1469.22250 1.88619 1458.27520
3 1998 17.93 104.0573942 1865.74908 1.59166 1547.09496 2.00518 1535.14206
4 1998 18.20 104.0573942 1893.84457 1.67602 1568.71596 2.11087 1556.14821
5 1998 17.86 104.0573942 1858.46506 1.69944 1537.71084 2.13976 1524.93756
6 1998 16.38 111.3169882 1823.37227 1.66585 1507.00889 2.09684 1494.04582
7 1998 15.50 111.3169882 1725.41332 1.63259 1424.41367 2.05436 1411.72526
8 1998 12.85 111.3169882 1430.42330 1.54311 1179.34177 1.94117 1168.42461
9 1998 12.95 111.3169882 1441.55500 1.27762 1187.24190 1.60662 1175.91078
10 1998 13.79 111.3169882 1535.06127 1.28618 1262.96601 1.61692 1250.56916
11 1998 13.97 111.3169882 1555.09833 1.36821 1278.08321 1.71957 1265.17319
12 1998 14.50 111.3169882 1614.09633 1.38459 1325.18711 1.73966 1311.43223
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 37.75%
GROSS ANNUAL RETURN = 11.27%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1325.19 1268.87
TOTAL RETURN 32.52% 26.89%
AVERAGE ANNUAL RETURN 9.84% 8.26%
WITH DEATH BENEFIT CHARGE
ERV 1311.43 1255.70
TOTAL RETURN 31.14% 25.57%
AVERAGE ANNUAL RETURN 9.46% 7.89%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 15.98 104.0573942 1662.83716 1.75564 1601.77654 2.20667 1585.71105
2 1998 17.01 104.0573942 1770.01628 1.73526 1703.28471 2.18041 1685.73855
3 1998 17.93 104.0573942 1865.74908 1.84523 1793.56305 2.31795 1774.59517
4 1998 18.20 104.0573942 1893.84457 1.94303 1818.62850 2.44013 1798.87790
5 1998 17.86 104.0573942 1858.46506 1.97018 1782.68394 2.47352 1762.79897
6 1998 16.38 111.3169882 1823.37227 1.93124 1747.09086 2.42391 1727.08870
7 1998 15.50 111.3169882 1725.41332 1.89268 1651.33738 2.37480 1631.92769
8 1998 12.85 111.3169882 1430.42330 1.78895 1367.22300 2.24395 1350.67674
9 1998 12.95 111.3169882 1441.55500 1.48116 1376.38171 1.85723 1359.33062
10 1998 13.79 111.3169882 1535.06127 1.49108 1464.16945 1.86912 1445.63429
11 1998 13.97 111.3169882 1555.09833 1.58618 1481.69498 1.98780 1462.51627
12 1998 14.50 111.3169882 1614.09633 1.60517 1536.30300 2.01101 1515.99085
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 61.41%
GROSS ANNUAL RETURN = 13.29%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1536.30 1484.07
TOTAL RETURN 53.63% 48.41%
AVERAGE ANNUAL RETURN 11.85% 10.84%
WITH DEATH BENEFIT CHARGE
ERV 1515.99 1464.45
TOTAL RETURN 51.60% 46.44%
AVERAGE ANNUAL RETURN 11.46% 10.46%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1997 14.71 103.2778483 1519.21715 1000.00000 1000.00000
6 1997 14.94 104.0573942 1554.61747 1.08333 1022.21835 1.37503 1021.92665
7 1997 15.81 104.0573942 1645.14740 1.10740 1080.63772 1.40518 1080.03125
8 1997 16.14 104.0573942 1679.48634 1.17069 1102.02304 1.48508 1101.08952
9 1997 16.88 104.0573942 1756.48881 1.19386 1151.35564 1.51403 1150.05915
10 1997 15.98 104.0573942 1662.83716 1.24730 1088.72089 1.58137 1087.15946
11 1997 16.03 104.0573942 1668.04003 1.17945 1090.94795 1.49488 1089.06620
12 1997 16.15 104.0573942 1680.52692 1.18186 1097.93289 1.49750 1095.72141
1 1998 15.98 104.0573942 1662.83716 1.18943 1085.18627 1.50665 1082.68085
2 1998 17.01 104.0573942 1770.01628 1.17562 1153.95695 1.48872 1150.97693
3 1998 17.93 104.0573942 1865.74908 1.25012 1215.11956 1.58263 1211.64585
4 1998 18.20 104.0573942 1893.84457 1.31638 1232.10113 1.66605 1228.22544
5 1998 17.86 104.0573942 1858.46506 1.33478 1207.74908 1.68885 1203.59172
6 1998 16.38 111.3169882 1823.37227 1.30839 1183.63515 1.65498 1179.20970
7 1998 15.50 111.3169882 1725.41332 1.28227 1118.76320 1.62145 1114.23633
8 1998 12.85 111.3169882 1430.42330 1.21199 926.27879 1.53211 922.20575
9 1998 12.95 111.3169882 1441.55500 1.00347 932.48371 1.26806 928.11438
10 1998 13.79 111.3169882 1535.06127 1.01019 991.95895 1.27619 987.04021
11 1998 13.97 111.3169882 1555.09833 1.07462 1003.83231 1.35721 998.56677
12 1998 14.50 111.3169882 1614.09633 1.08748 1040.82866 1.37306 1035.07777
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 6.25%
GROSS ANNUAL RETURN = 3.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1040.83 987.75
TOTAL RETURN 4.08% -1.23%
AVERAGE ANNUAL RETURN 2.43% -0.74%
WITH DEATH BENEFIT CHARGE
ERV 1035.08 982.29
TOTAL RETURN 3.51% -1.77%
AVERAGE ANNUAL RETURN 2.09% -1.07%
Pioneer Real Estate
12/1998
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
3/98 0.1500000000 16.02 1.064 114.740466
6/98 0.2409000000 15.14 1.826 116.566158
9/98 0.1600000000 13.52 1.379 117.945640
12/98 0.1604000000 12.69 1.491 119.436458
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 16.90 113.6760836 1921.12581 1000.00000 1000.00000
1 1998 16.66 113.6760836 1893.84355 1.08333 984.71548 1.37503 984.42378
2 1998 16.46 113.6760836 1871.10834 1.06678 971.82739 1.35362 971.25236
3 1998 16.63 114.7404664 1908.13396 1.05281 990.00517 1.33550 989.13606
4 1998 16.18 114.7404664 1856.50075 1.07251 962.14359 1.36010 961.01041
5 1998 16.07 114.7404664 1843.87929 1.04232 954.56012 1.32142 953.15554
6 1998 15.51 116.5661585 1807.94112 1.03411 934.92113 1.31062 933.26742
7 1998 14.60 116.5661585 1701.86591 1.01283 879.05477 1.28327 877.22764
8 1998 12.88 116.5661585 1501.37212 0.95231 774.54258 1.20622 772.67680
9 1998 13.27 117.9456396 1565.13864 0.83909 806.59999 1.06246 804.43159
10 1998 13.04 117.9456396 1538.01114 0.87382 791.74592 1.10612 789.38280
11 1998 13.10 117.9456396 1545.08788 0.85772 794.53120 1.08543 791.92950
12 1998 13.07 119.4364576 1561.03450 0.86074 801.87069 1.08893 799.01396
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -18.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 801.87 754.16
TOTAL RETURN -19.81% -24.58%
WITH DEATH BENEFIT CHARGE
ERV 799.01 751.47
TOTAL RETURN -20.10% -24.85%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 16.90 113.6760836 1921.12581 1000.00000 1000.00000
1 1998 16.66 113.6760836 1893.84355 1.08333 984.71548 1.37503 984.42378
2 1998 16.46 113.6760836 1871.10834 1.06678 971.82739 1.35362 971.25236
3 1998 16.63 114.7404664 1908.13396 1.05281 990.00517 1.33550 989.13606
4 1998 16.18 114.7404664 1856.50075 1.07251 962.14359 1.36010 961.01041
5 1998 16.07 114.7404664 1843.87929 1.04232 954.56012 1.32142 953.15554
6 1998 15.51 116.5661585 1807.94112 1.03411 934.92113 1.31062 933.26742
7 1998 14.60 116.5661585 1701.86591 1.01283 879.05477 1.28327 877.22764
8 1998 12.88 116.5661585 1501.37212 0.95231 774.54258 1.20622 772.67680
9 1998 13.27 117.9456396 1565.13864 0.83909 806.59999 1.06246 804.43159
10 1998 13.04 117.9456396 1538.01114 0.87382 791.74592 1.10612 789.38280
11 1998 13.10 117.9456396 1545.08788 0.85772 794.53120 1.08543 791.92950
12 1998 13.07 119.4364576 1561.03450 0.86074 801.87069 1.08893 799.01396
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -18.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 801.87 754.16
TOTAL RETURN -19.81% -24.58%
WITH DEATH BENEFIT CHARGE
ERV 799.01 751.47
TOTAL RETURN -20.10% -24.85%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.23 104.1133424 1169.19284 1000.00000 1000.00000
1 1996 11.34 104.1133424 1180.64530 1.08333 1008.71186 1.37503 1008.42016
2 1996 11.54 104.1133424 1201.46797 1.09277 1025.40942 1.38661 1024.81873
3 1996 11.39 105.4844576 1201.46797 1.11086 1024.29856 1.40916 1023.40957
4 1996 11.36 105.4844576 1198.30344 1.10966 1020.49101 1.40722 1019.30681
5 1996 11.59 105.4844576 1222.56486 1.10553 1040.04683 1.40158 1038.54260
6 1996 11.51 106.9507923 1231.00362 1.12672 1046.09904 1.42803 1044.28311
7 1996 11.68 106.9507923 1249.18525 1.13327 1060.41640 1.43592 1058.27100
8 1996 12.27 106.9507923 1312.28622 1.14878 1112.83317 1.45516 1110.27303
9 1996 12.52 108.1467277 1353.99703 1.20557 1146.99883 1.52666 1144.03622
10 1996 12.79 108.1467277 1383.19665 1.24258 1170.49185 1.57309 1167.13484
11 1996 13.29 108.1467277 1437.27001 1.26803 1214.98190 1.60485 1211.15684
12 1996 14.46 109.6328103 1585.29044 1.31623 1338.79326 1.66538 1334.22512
1 1997 14.68 109.6328103 1609.40966 1.45036 1357.71182 1.83460 1352.68993
2 1997 14.68 109.6328103 1609.40966 1.47085 1356.24096 1.85999 1350.82993
3 1997 14.61 110.6083247 1615.98762 1.46926 1360.31492 1.85744 1354.49360
4 1997 13.98 110.6083247 1546.30438 1.47367 1300.18290 1.86247 1294.22381
5 1997 14.44 110.6083247 1597.18421 1.40853 1341.55578 1.77960 1335.02954
6 1997 15.09 111.5003273 1682.53994 1.45335 1411.79703 1.83571 1404.53965
7 1997 15.89 111.6920795 1774.78714 1.52945 1487.67099 1.93129 1479.61388
8 1997 15.74 111.6920795 1758.03333 1.61164 1472.01588 2.03452 1463.61195
9 1997 17.17 112.4999788 1931.62464 1.59468 1615.77064 2.01252 1606.11906
10 1997 16.56 112.4999788 1862.99965 1.75042 1556.61660 2.20847 1546.84987
11 1997 16.54 112.4999788 1860.74965 1.68633 1553.05030 2.12697 1542.85472
12 1997 16.90 113.6760836 1921.12581 1.68247 1601.76000 2.12148 1590.79460
1 1998 16.66 113.6760836 1893.84355 1.73524 1577.27787 2.18740 1566.01604
2 1998 16.46 113.6760836 1871.10834 1.70872 1556.63424 2.15332 1545.06300
3 1998 16.63 114.7404664 1908.13396 1.68635 1585.75068 2.12451 1573.51230
4 1998 16.18 114.7404664 1856.50075 1.71790 1541.12311 2.16363 1528.77016
5 1998 16.07 114.7404664 1843.87929 1.66955 1528.97621 2.10211 1516.27468
6 1998 15.51 116.5661585 1807.94112 1.65639 1497.51927 2.08493 1484.63676
7 1998 14.60 116.5661585 1701.86591 1.62231 1408.03477 2.04142 1395.48899
8 1998 12.88 116.5661585 1501.37212 1.52537 1240.63133 1.91884 1229.17008
9 1998 13.27 117.9456396 1565.13864 1.34402 1291.97960 1.69015 1279.68543
10 1998 13.04 117.9456396 1538.01114 1.39964 1268.18694 1.75961 1255.74589
11 1998 13.10 117.9456396 1545.08788 1.37387 1272.64829 1.72669 1259.79717
12 1998 13.07 119.4364576 1561.03450 1.37870 1284.40440 1.73226 1271.06709
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.51%
GROSS ANNUAL RETURN = 10.11%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1284.40 1229.82
TOTAL RETURN 28.44% 22.98%
AVERAGE ANNUAL RETURN 8.70% 7.14%
WITH DEATH BENEFIT CHARGE
ERV 1271.07 1217.05
TOTAL RETURN 27.11% 21.70%
AVERAGE ANNUAL RETURN 8.32% 6.77%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 16.66 113.6760836 1893.84355 2.00729 1824.56067 2.52306 1806.33023
2 1998 16.46 113.6760836 1871.10834 1.97661 1800.68058 2.48376 1782.16183
3 1998 16.63 114.7404664 1908.13396 1.95074 1834.36183 2.45053 1814.97684
4 1998 16.18 114.7404664 1856.50075 1.98723 1782.73763 2.49565 1763.36876
5 1998 16.07 114.7404664 1843.87929 1.93130 1768.68636 2.42469 1748.95578
6 1998 15.51 116.5661585 1807.94112 1.91608 1732.29766 2.40487 1712.46284
7 1998 14.60 116.5661585 1701.86591 1.87666 1628.78394 2.35469 1609.63482
8 1998 12.88 116.5661585 1501.37212 1.76452 1435.13529 2.21330 1417.79331
9 1998 13.27 117.9456396 1565.13864 1.55473 1494.53385 1.94951 1476.06054
10 1998 13.04 117.9456396 1538.01114 1.61908 1467.01102 2.02963 1448.44734
11 1998 13.10 117.9456396 1545.08788 1.58926 1472.17181 1.99166 1453.12032
12 1998 13.07 119.4364576 1561.03450 1.59485 1485.77103 1.99809 1466.11967
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 56.10%
GROSS ANNUAL RETURN = 12.31%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1485.77 1435.25
TOTAL RETURN 48.58% 43.53%
AVERAGE ANNUAL RETURN 10.87% 9.88%
WITH DEATH BENEFIT CHARGE
ERV 1466.12 1416.27
TOTAL RETURN 46.61% 41.63%
AVERAGE ANNUAL RETURN 10.49% 9.50%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1997 14.44 110.6083247 1597.18421 1000.00000 1000.00000
6 1997 15.09 111.5003273 1682.53994 1.08333 1052.35805 1.37503 1052.06635
7 1997 15.89 111.6920795 1774.78714 1.14005 1108.91474 1.44663 1108.30048
8 1997 15.74 111.6920795 1758.03333 1.20132 1097.24538 1.52395 1096.31428
9 1997 17.17 112.4999788 1931.62464 1.18868 1204.40063 1.50747 1203.05882
10 1997 16.56 112.4999788 1862.99965 1.30477 1160.30703 1.65425 1158.66340
11 1997 16.54 112.4999788 1860.74965 1.25700 1157.64869 1.59320 1155.67085
12 1997 16.90 113.6760836 1921.12581 1.25412 1193.95706 1.58909 1191.58008
1 1998 16.66 113.6760836 1893.84355 1.29345 1175.70800 1.63846 1173.01977
2 1998 16.46 113.6760836 1871.10834 1.27368 1160.32018 1.61294 1157.32496
3 1998 16.63 114.7404664 1908.13396 1.25701 1182.02366 1.59136 1178.63482
4 1998 16.18 114.7404664 1856.50075 1.28053 1148.75813 1.62066 1145.12085
5 1998 16.07 114.7404664 1843.87929 1.24449 1139.70379 1.57458 1135.76115
6 1998 15.51 116.5661585 1807.94112 1.23468 1116.25568 1.56171 1112.06286
7 1998 14.60 116.5661585 1701.86591 1.20928 1049.55365 1.52912 1045.28698
8 1998 12.88 116.5661585 1501.37212 1.13702 924.77058 1.43730 920.70628
9 1998 13.27 117.9456396 1565.13864 1.00183 963.04575 1.26600 958.54466
10 1998 13.04 117.9456396 1538.01114 1.04330 945.31063 1.31803 940.61282
11 1998 13.10 117.9456396 1545.08788 1.02409 948.63613 1.29337 943.64742
12 1998 13.07 119.4364576 1561.03450 1.02769 957.39918 1.29755 952.08911
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = -2.26%
GROSS ANNUAL RETURN = -1.36%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 957.40 908.57
TOTAL RETURN -4.26% -9.14%
AVERAGE ANNUAL RETURN -2.58% -5.58%
WITH DEATH BENEFIT CHARGE
ERV 952.09 903.53
TOTAL RETURN -4.79% -9.65%
AVERAGE ANNUAL RETURN -2.90% -5.90%
Scudder International
12/1998
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
2/98 1.9700000000 13.29 17.178 133.060670
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 14.11 115.8831129 1635.11072 1000.00000 1000.00000
1 1998 14.47 115.8831129 1676.82864 1.08333 1024.43049 1.37503 1024.13879
2 1998 13.44 133.0606699 1788.33540 1.10980 1091.44388 1.40822 1090.83436
3 1998 14.00 133.0606699 1862.84938 1.18240 1135.73831 1.49993 1134.78586
4 1998 14.32 133.0606699 1905.42879 1.23038 1160.46766 1.56037 1159.16345
5 1998 14.68 133.0606699 1953.33063 1.25717 1188.38426 1.59389 1186.71054
6 1998 14.83 133.0606699 1973.28973 1.28742 1199.23973 1.63177 1197.20457
7 1998 15.05 133.0606699 2002.56308 1.29918 1215.73103 1.64620 1213.31865
8 1998 13.04 133.0606699 1735.11114 1.31704 1052.04725 1.66835 1049.60575
9 1998 12.64 133.0606699 1681.88687 1.13972 1018.63615 1.44324 1015.96601
10 1998 13.55 133.0606699 1802.97208 1.10352 1090.86798 1.39699 1087.71215
11 1998 14.02 133.0606699 1865.51059 1.18177 1127.52443 1.49564 1123.94527
12 1998 14.56 133.0606699 1937.36335 1.22148 1169.73113 1.54546 1165.69014
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.49%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1169.73 1100.13
TOTAL RETURN 16.97% 10.01%
WITH DEATH BENEFIT CHARGE
ERV 1165.69 1096.33
TOTAL RETURN 16.57% 9.63%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 14.11 115.8831129 1635.11072 1000.00000 1000.00000
1 1998 14.47 115.8831129 1676.82864 1.08333 1024.43049 1.37503 1024.13879
2 1998 13.44 133.0606699 1788.33540 1.10980 1091.44388 1.40822 1090.83436
3 1998 14.00 133.0606699 1862.84938 1.18240 1135.73831 1.49993 1134.78586
4 1998 14.32 133.0606699 1905.42879 1.23038 1160.46766 1.56037 1159.16345
5 1998 14.68 133.0606699 1953.33063 1.25717 1188.38426 1.59389 1186.71054
6 1998 14.83 133.0606699 1973.28973 1.28742 1199.23973 1.63177 1197.20457
7 1998 15.05 133.0606699 2002.56308 1.29918 1215.73103 1.64620 1213.31865
8 1998 13.04 133.0606699 1735.11114 1.31704 1052.04725 1.66835 1049.60575
9 1998 12.64 133.0606699 1681.88687 1.13972 1018.63615 1.44324 1015.96601
10 1998 13.55 133.0606699 1802.97208 1.10352 1090.86798 1.39699 1087.71215
11 1998 14.02 133.0606699 1865.51059 1.18177 1127.52443 1.49564 1123.94527
12 1998 14.56 133.0606699 1937.36335 1.22148 1169.73113 1.54546 1165.69014
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.49%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1169.73 1100.13
TOTAL RETURN 16.97% 10.01%
WITH DEATH BENEFIT CHARGE
ERV 1165.69 1096.33
TOTAL RETURN 16.57% 9.63%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.82 110.5003621 1306.11428 1000.00000 1000.00000
1 1996 12.04 110.5003621 1330.42436 1.08333 1017.52919 1.37503 1017.23749
2 1996 11.84 113.0560895 1338.58410 1.10232 1022.66756 1.39874 1022.07766
3 1996 12.09 113.0560895 1366.84812 1.10789 1043.15316 1.40539 1042.25330
4 1996 12.48 113.1463899 1412.06695 1.13008 1076.53324 1.43313 1075.30057
5 1996 12.48 113.1463899 1412.06695 1.16624 1075.36700 1.47857 1073.82199
6 1996 12.61 113.1463899 1426.77598 1.16498 1085.40376 1.47654 1083.53110
7 1996 12.14 113.1463899 1373.59717 1.17585 1043.77273 1.48989 1041.65583
8 1996 12.33 113.1463899 1395.09499 1.13075 1058.97779 1.43231 1056.52620
9 1996 12.61 113.1463899 1426.77598 1.14723 1081.87872 1.45276 1079.06593
10 1996 12.55 113.1463899 1419.98719 1.17204 1075.55897 1.48375 1072.44784
11 1996 13.11 113.1463899 1483.34917 1.16519 1122.38685 1.47465 1118.82744
12 1996 13.25 113.1463899 1499.18967 1.21592 1133.15676 1.53842 1129.23683
1 1997 13.25 113.1463899 1499.18967 1.22759 1131.92917 1.55274 1127.68409
2 1997 13.15 115.8831129 1523.86293 1.22626 1149.33191 1.55060 1144.69261
3 1997 13.21 115.8831129 1530.81592 1.24511 1153.33090 1.57399 1148.34155
4 1997 13.28 115.8831129 1538.92774 1.24944 1158.19297 1.57901 1152.84763
5 1997 14.04 115.8831129 1626.99891 1.25471 1223.22039 1.58520 1217.23864
6 1997 14.76 115.8831129 1710.43475 1.32516 1284.62449 1.67374 1277.98739
7 1997 15.33 115.8831129 1776.48812 1.39168 1332.84229 1.75728 1325.58329
8 1997 14.01 115.8831129 1623.52241 1.44391 1216.63309 1.82272 1209.62032
9 1997 14.96 115.8831129 1733.61137 1.31802 1297.81339 1.66327 1289.97985
10 1997 13.93 115.8831129 1614.25176 1.40596 1207.05263 1.77377 1199.39062
11 1997 13.98 115.8831129 1620.04592 1.30764 1210.07756 1.64920 1202.04649
12 1997 14.11 115.8831129 1635.11072 1.31092 1220.01915 1.65285 1211.57146
1 1998 14.47 115.8831129 1676.82864 1.32169 1249.82481 1.66595 1240.81732
2 1998 13.44 133.0606699 1788.33540 1.35398 1331.58243 1.70617 1321.62378
3 1998 14.00 133.0606699 1862.84938 1.44255 1385.62249 1.81728 1374.87416
4 1998 14.32 133.0606699 1905.42879 1.50109 1415.79277 1.89050 1404.40935
5 1998 14.68 133.0606699 1953.33063 1.53378 1449.85155 1.93111 1437.78463
6 1998 14.83 133.0606699 1973.28973 1.57067 1463.09544 1.97700 1450.49888
7 1998 15.05 133.0606699 2002.56308 1.58502 1483.21513 1.99448 1470.02225
8 1998 13.04 133.0606699 1735.11114 1.60682 1283.51779 2.02133 1271.67237
9 1998 12.64 133.0606699 1681.88687 1.39048 1242.75560 1.74859 1230.91542
10 1998 13.55 133.0606699 1802.97208 1.34632 1330.87982 1.69255 1317.84099
11 1998 14.02 133.0606699 1865.51059 1.44179 1375.60140 1.81208 1361.74001
12 1998 14.56 133.0606699 1937.36335 1.49023 1427.09438 1.87244 1412.31690
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 48.33%
GROSS ANNUAL RETURN = 14.05%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1427.09 1366.44
TOTAL RETURN 42.71% 36.64%
AVERAGE ANNUAL RETURN 12.59% 10.97%
WITH DEATH BENEFIT CHARGE
ERV 1412.32 1352.29
TOTAL RETURN 41.23% 35.23%
AVERAGE ANNUAL RETURN 12.20% 10.58%
<TABLE>
<CAPTION>
Return for 5 Years
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 1993 10.85 109.2655872 1185.53162 1000.00000 1000.00000
1 1994 11.31 109.2655872 1235.79379 1.08333 1041.31298 1.37503 1041.02128
2 1994 11.08 109.9602821 1218.35993 1.12809 1025.49465 1.43144 1024.90371
3 1994 10.72 109.9602821 1178.77422 1.11095 991.06438 1.40928 990.19432
4 1994 10.95 109.9602821 1204.06509 1.07365 1011.25423 1.36155 1010.07761
5 1994 10.86 109.9602821 1194.16866 1.09553 1001.84703 1.38889 1000.38671
6 1994 10.86 109.9602821 1194.16866 1.08533 1000.76169 1.37557 999.01114
7 1994 11.12 109.9602821 1222.75834 1.08416 1023.63684 1.37367 1021.55486
8 1994 11.42 109.9602821 1255.74642 1.10894 1050.14400 1.40467 1047.71013
9 1994 11.12 109.9602821 1222.75834 1.13766 1021.41937 1.44064 1018.74646
10 1994 11.37 109.9602821 1250.24841 1.10654 1043.27640 1.40081 1040.24912
11 1994 10.76 109.9602821 1183.17264 1.13022 986.17445 1.43038 983.00942
12 1994 10.69 109.9602821 1175.47542 1.06836 978.69046 1.35167 975.26271
1 1995 10.18 109.9602821 1119.39567 1.06025 930.93871 1.34102 927.39372
2 1995 10.14 110.5003621 1120.47367 1.00852 930.82671 1.27520 927.01162
3 1995 10.39 110.5003621 1148.09876 1.00840 952.76769 1.27467 948.59227
4 1995 10.93 110.5003621 1207.76896 1.03216 1001.25377 1.30435 996.58915
5 1995 10.94 110.5003621 1208.87396 1.08469 1001.08514 1.37034 996.13060
6 1995 11.09 110.5003621 1225.44902 1.08451 1013.72666 1.36971 1008.41899
7 1995 11.75 110.5003621 1298.37925 1.09820 1072.95845 1.38661 1067.04649
8 1995 11.53 110.5003621 1274.06917 1.16237 1051.70664 1.46722 1045.60053
9 1995 11.82 110.5003621 1306.11428 1.13935 1077.01958 1.43774 1070.46150
10 1995 11.55 110.5003621 1276.27918 1.16677 1051.25084 1.47192 1044.53742
11 1995 11.66 110.5003621 1288.43422 1.13886 1060.12390 1.43627 1053.04912
12 1995 11.82 110.5003621 1306.11428 1.14847 1073.52259 1.44798 1066.05121
1 1996 12.04 110.5003621 1330.42436 1.16298 1092.34057 1.46586 1084.42726
2 1996 11.84 113.0560895 1338.58410 1.18337 1097.85673 1.49112 1089.58713
3 1996 12.09 113.0560895 1366.84812 1.18934 1119.84848 1.49822 1111.09540
4 1996 12.48 113.1463899 1412.06695 1.21317 1155.68275 1.52779 1146.32548
5 1996 12.48 113.1463899 1412.06695 1.25199 1154.43076 1.57624 1144.74924
6 1996 12.61 113.1463899 1426.77598 1.25063 1165.20545 1.57407 1155.09964
7 1996 12.14 113.1463899 1373.59717 1.26231 1120.51360 1.58830 1110.45846
8 1996 12.33 113.1463899 1395.09499 1.21389 1136.83658 1.52692 1126.31104
9 1996 12.61 113.1463899 1426.77598 1.23157 1161.42125 1.54872 1150.33954
10 1996 12.55 113.1463899 1419.98719 1.25821 1154.63685 1.58176 1143.28433
11 1996 13.11 113.1463899 1483.34917 1.25086 1204.90764 1.57205 1192.72735
12 1996 13.25 113.1463899 1499.18967 1.30532 1216.46937 1.64004 1203.82429
1 1997 13.25 113.1463899 1499.18967 1.31784 1215.15153 1.65530 1202.16899
2 1997 13.15 115.8831129 1523.86293 1.31641 1233.83376 1.65302 1220.30095
3 1997 13.21 115.8831129 1530.81592 1.33665 1238.12677 1.67795 1224.19091
4 1997 13.28 115.8831129 1538.92774 1.34130 1243.34632 1.68330 1228.99461
5 1997 14.04 115.8831129 1626.99891 1.34696 1313.15472 1.68991 1297.63873
6 1997 14.76 115.8831129 1710.43475 1.42258 1379.07340 1.78430 1362.40001
7 1997 15.33 115.8831129 1776.48812 1.49400 1430.83631 1.87335 1413.13968
8 1997 14.01 115.8831129 1623.52241 1.55007 1306.08311 1.94311 1289.51722
9 1997 14.96 115.8831129 1733.61137 1.41492 1393.23199 1.77313 1375.18458
10 1997 13.93 115.8831129 1614.25176 1.50933 1295.79826 1.89092 1278.61183
11 1997 13.98 115.8831129 1620.04592 1.40378 1299.04559 1.75813 1281.44312
12 1997 14.11 115.8831129 1635.11072 1.40730 1309.71811 1.76203 1291.59723
1 1998 14.47 115.8831129 1676.82864 1.41886 1341.71516 1.77599 1322.77482
2 1998 13.44 133.0606699 1788.33540 1.45352 1429.48382 1.81886 1408.91863
3 1998 14.00 133.0606699 1862.84938 1.54861 1487.49704 1.93731 1465.68627
4 1998 14.32 133.0606699 1905.42879 1.61146 1519.88551 2.01537 1497.17230
5 1998 14.68 133.0606699 1953.33063 1.64654 1556.44838 2.05866 1532.75205
6 1998 14.83 133.0606699 1973.28973 1.68615 1570.66600 2.10759 1546.30610
7 1998 15.05 133.0606699 2002.56308 1.70155 1592.26495 2.12622 1567.11901
8 1998 13.04 133.0606699 1735.11114 1.72495 1377.88534 2.15484 1355.66787
9 1998 12.64 133.0606699 1681.88687 1.49271 1334.12621 1.86409 1312.21888
10 1998 13.55 133.0606699 1802.97208 1.44530 1428.72955 1.80434 1404.88599
11 1998 14.02 133.0606699 1865.51059 1.54779 1476.73917 1.93177 1451.68459
12 1998 14.56 133.0606699 1937.36335 1.59980 1532.01805 1.99611 1505.60215
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 63.42%
GROSS ANNUAL RETURN = 10.32%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1532.02 1492.95
TOTAL RETURN 53.20% 49.30%
AVERAGE ANNUAL RETURN 8.91% 8.35%
WITH DEATH BENEFIT CHARGE
ERV 1505.60 1467.21
TOTAL RETURN 50.56% 46.72%
AVERAGE ANNUAL RETURN 8.53% 7.97%
<TABLE>
<CAPTION>
Return for 10 Years
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 1988 6.14 101.9391635 625.90646 1000.00000 1000.00000
1 1989 6.49 101.9391635 661.58517 1.08333 1055.91992 1.37503 1055.62822
2 1989 6.68 101.9391635 680.95361 1.14391 1085.68892 1.45152 1085.08107
3 1989 6.72 101.9391635 685.03118 1.17616 1091.01389 1.49202 1090.08654
4 1989 7.00 101.9391635 713.57414 1.18193 1135.29087 1.49891 1134.00791
5 1989 7.02 101.9391635 715.61293 1.22990 1137.30466 1.55930 1135.68863
6 1989 6.97 101.9391635 710.51597 1.23208 1127.97212 1.56161 1126.03807
7 1989 7.60 101.9391635 774.73764 1.22197 1228.70459 1.54834 1226.26936
8 1989 7.64 101.9391635 778.81521 1.33110 1233.84036 1.68616 1231.03724
9 1989 7.94 101.9391635 809.39696 1.33666 1280.95293 1.69272 1277.68368
10 1989 7.54 101.9391635 768.62129 1.38770 1215.03359 1.75686 1211.55989
11 1989 7.93 101.9391635 808.37757 1.31629 1276.56387 1.66594 1272.56085
12 1989 8.46 101.9391635 862.40532 1.38294 1360.49982 1.74981 1355.86239
1 1990 8.43 102.3669657 862.95352 1.47387 1359.89077 1.86436 1354.85990
2 1990 8.32 102.3669657 851.69315 1.47321 1340.67283 1.86298 1335.31785
3 1990 8.53 102.3669657 873.19022 1.45240 1373.05954 1.83611 1367.18568
4 1990 8.43 102.3669657 862.95352 1.48748 1355.47522 1.87993 1349.27779
5 1990 8.87 102.3669657 907.99499 1.46843 1424.75520 1.85530 1417.84742
6 1990 9.02 102.3669657 923.35003 1.54348 1447.30566 1.94959 1439.87496
7 1990 9.27 102.3669657 948.94177 1.56791 1485.85154 1.97988 1477.80293
8 1990 8.40 102.3669657 859.88251 1.60967 1344.79302 2.03203 1337.07742
9 1990 7.46 102.3669657 763.65756 1.45686 1192.84742 1.83853 1185.61357
10 1990 8.03 102.3669657 822.00673 1.29225 1282.69766 1.63026 1274.57308
11 1990 7.82 102.3669657 800.50967 1.38959 1247.76305 1.75258 1239.48796
12 1990 7.78 102.3669657 796.41499 1.35174 1240.02889 1.70434 1231.44353
1 1991 7.99 102.3669657 817.91206 1.34336 1272.15674 1.69328 1262.98973
2 1991 8.45 104.7927232 885.49851 1.37817 1375.90059 1.73665 1365.61760
3 1991 8.23 104.7927232 862.44411 1.49056 1338.58777 1.87777 1328.18529
4 1991 8.25 104.7927232 864.53997 1.45014 1340.39058 1.82630 1329.58665
5 1991 8.44 104.7927232 884.45058 1.45209 1369.80809 1.82823 1358.37921
6 1991 7.92 104.7927232 829.95837 1.48396 1283.92837 1.86782 1272.81979
7 1991 8.23 104.7927232 862.44411 1.39092 1332.79222 1.75017 1320.88958
8 1991 8.08 104.7927232 846.72520 1.44386 1307.05689 1.81627 1294.99878
9 1991 8.41 104.7927232 881.30680 1.41598 1359.02318 1.78067 1346.10791
10 1991 8.26 104.7927232 865.58789 1.47228 1333.31149 1.85094 1320.24791
11 1991 8.05 104.7927232 843.58142 1.44442 1297.96932 1.81538 1284.86690
12 1991 8.47 104.7927232 887.59437 1.40613 1364.28333 1.76673 1350.13670
1 1992 8.54 104.7927232 894.92986 1.47797 1374.08042 1.85648 1359.43837
2 1992 8.38 105.9386947 887.76626 1.48859 1361.59281 1.86927 1346.68728
3 1992 8.04 105.9386947 851.74711 1.47506 1304.87413 1.85174 1290.19668
4 1992 8.15 105.9386947 863.61224 1.41361 1321.63787 1.77406 1306.39550
5 1992 8.55 105.9386947 905.77584 1.43177 1384.73159 1.79634 1368.38049
6 1992 8.53 105.9386947 903.65707 1.50013 1379.99233 1.88157 1363.29804
7 1992 8.26 105.9386947 875.05362 1.49499 1334.81646 1.87458 1318.27100
8 1992 8.53 105.9386947 903.65707 1.44605 1377.00242 1.81267 1359.54951
9 1992 8.40 105.9386947 889.88504 1.49175 1354.52470 1.86943 1336.96011
10 1992 8.13 105.9386947 861.28159 1.46740 1309.51900 1.83836 1292.14802
11 1992 8.10 105.9386947 858.10343 1.41865 1303.26818 1.77675 1285.60320
12 1992 8.12 105.9386947 860.22220 1.41187 1305.07426 1.76775 1287.00979
1 1993 8.14 105.9386947 862.34097 1.41383 1306.87489 1.76968 1288.41008
2 1993 8.15 109.2655872 890.51454 1.41578 1348.15605 1.77161 1328.73215
3 1993 8.62 109.2655872 941.86936 1.46050 1424.44197 1.82705 1403.53137
4 1993 9.00 109.2655872 983.39028 1.54315 1485.69325 1.92990 1463.47408
5 1993 9.17 109.2655872 1001.96543 1.60950 1512.14685 2.01233 1489.10515
6 1993 9.02 109.2655872 985.57560 1.63816 1485.77346 2.04757 1462.69926
7 1993 9.24 109.2655872 1009.61403 1.60959 1520.40225 2.01126 1496.36360
8 1993 9.86 109.2655872 1077.35869 1.64710 1620.77348 2.05755 1594.71139
9 1993 10.03 109.2655872 1095.93384 1.75584 1646.96201 2.19278 1620.01364
10 1993 10.34 109.2655872 1129.80617 1.78421 1696.08092 2.22757 1667.85628
11 1993 9.93 109.2655872 1085.00728 1.83742 1626.99077 2.29336 1599.42935
12 1993 10.85 109.2655872 1185.53162 1.76257 1775.96652 2.19927 1745.41488
1 1994 11.31 109.2655872 1235.79379 1.92396 1849.33698 2.40000 1817.01403
2 1994 11.08 109.9602821 1218.35993 2.00345 1821.24416 2.49845 1788.88219
3 1994 10.72 109.9602821 1178.77422 1.97301 1760.09715 2.45977 1728.29989
4 1994 10.95 109.9602821 1204.06509 1.90677 1795.95365 2.37647 1763.00448
5 1994 10.86 109.9602821 1194.16866 1.94562 1779.24677 2.42419 1746.08985
6 1994 10.86 109.9602821 1194.16866 1.92752 1777.31926 2.40093 1743.68891
7 1994 11.12 109.9602821 1222.75834 1.92543 1817.94475 2.39763 1783.03706
8 1994 11.42 109.9602821 1255.74642 1.96944 1865.02058 2.45174 1828.68884
9 1994 11.12 109.9602821 1222.75834 2.02044 1814.00661 2.51451 1778.13522
10 1994 11.37 109.9602821 1250.24841 1.96517 1852.82395 2.44500 1815.66629
11 1994 10.76 109.9602821 1183.17264 2.00723 1751.41280 2.49660 1715.75927
12 1994 10.69 109.9602821 1175.47542 1.89736 1738.12149 2.35923 1702.23804
1 1995 10.18 109.9602821 1119.39567 1.88296 1653.31599 2.34063 1618.68680
2 1995 10.14 110.5003621 1120.47367 1.79109 1653.11707 2.22575 1618.01988
3 1995 10.39 110.5003621 1148.09876 1.79088 1692.08352 2.22483 1655.68706
4 1995 10.93 110.5003621 1207.76896 1.83309 1778.19317 2.27662 1739.46154
5 1995 10.94 110.5003621 1208.87396 1.92638 1777.89369 2.39182 1738.66118
6 1995 11.09 110.5003621 1225.44902 1.92605 1800.34460 2.39072 1760.10951
7 1995 11.75 110.5003621 1298.37925 1.95037 1905.53827 2.42021 1862.43883
8 1995 11.53 110.5003621 1274.06917 2.06433 1867.79578 2.56092 1825.00672
9 1995 11.82 110.5003621 1306.11428 2.02345 1912.75072 2.50945 1868.39944
10 1995 11.55 110.5003621 1276.27918 2.07215 1866.98629 2.56911 1823.15115
11 1995 11.66 110.5003621 1288.43422 2.02257 1882.74455 2.50689 1838.00760
12 1995 11.82 110.5003621 1306.11428 2.03964 1906.54017 2.52732 1860.70165
1 1996 12.04 110.5003621 1330.42436 2.06542 1939.96027 2.55853 1892.77547
2 1996 11.84 113.0560895 1338.58410 2.10162 1949.75678 2.60263 1901.78159
3 1996 12.09 113.0560895 1366.84812 2.11224 1988.81340 2.61501 1939.32244
4 1996 12.48 113.1463899 1412.06695 2.15455 2052.45387 2.66663 2000.81354
5 1996 12.48 113.1463899 1412.06695 2.22349 2050.23038 2.75119 1998.06235
6 1996 12.61 113.1463899 1426.77598 2.22108 2069.36586 2.74740 2016.12810
7 1996 12.14 113.1463899 1373.59717 2.24181 1989.99463 2.77224 1938.21072
8 1996 12.33 113.1463899 1395.09499 2.15583 2018.98370 2.66510 1965.88005
9 1996 12.61 113.1463899 1426.77598 2.18723 2062.64524 2.70315 2007.81975
10 1996 12.55 113.1463899 1419.98719 2.23453 2050.59638 2.76082 1995.50547
11 1996 13.11 113.1463899 1483.34917 2.22148 2139.87562 2.74389 2081.80406
12 1996 13.25 113.1463899 1499.18967 2.31820 2160.40887 2.86255 2101.17283
1 1997 13.25 113.1463899 1499.18967 2.34044 2158.06843 2.88918 2098.28364
2 1997 13.15 115.8831129 1523.86293 2.33791 2191.24744 2.88521 2129.93143
3 1997 13.21 115.8831129 1530.81592 2.37385 2198.87168 2.92873 2136.72103
4 1997 13.28 115.8831129 1538.92774 2.38211 2208.14142 2.93806 2145.10548
5 1997 14.04 115.8831129 1626.99891 2.39215 2332.11881 2.94959 2264.91795
6 1997 14.76 115.8831129 1710.43475 2.52646 2449.18819 3.11434 2377.95325
7 1997 15.33 115.8831129 1776.48812 2.65329 2541.11737 3.26976 2466.51501
8 1997 14.01 115.8831129 1623.52241 2.75288 2319.55987 3.39154 2250.74253
9 1997 14.96 115.8831129 1733.61137 2.51286 2474.33337 3.09485 2400.26763
10 1997 13.93 115.8831129 1614.25176 2.68053 2301.29432 3.30045 2231.70812
11 1997 13.98 115.8831129 1620.04592 2.49307 2307.06147 3.06867 2236.64988
12 1997 14.11 115.8831129 1635.11072 2.49932 2326.01551 3.07547 2254.37302
1 1998 14.47 115.8831129 1676.82864 2.51985 2382.84120 3.09984 2308.79085
2 1998 13.44 133.0606699 1788.33540 2.58141 2538.71540 3.17466 2459.14754
3 1998 14.00 133.0606699 1862.84938 2.75027 2641.74493 3.38141 2558.23061
4 1998 14.32 133.0606699 1905.42879 2.86189 2699.26578 3.51765 2613.18681
5 1998 14.68 133.0606699 1953.33063 2.92420 2764.20021 3.59322 2675.28823
6 1998 14.83 133.0606699 1973.28973 2.99455 2789.45022 3.67861 2698.94567
7 1998 15.05 133.0606699 2002.56308 3.02190 2827.80923 3.71114 2735.27283
8 1998 13.04 133.0606699 1735.11114 3.06346 2447.07823 3.76109 2366.20288
9 1998 12.64 133.0606699 1681.88687 2.65100 2369.36348 3.25361 2290.36636
10 1998 13.55 133.0606699 1802.97208 2.56681 2537.37584 3.14933 2452.10891
11 1998 14.02 133.0606699 1865.51059 2.74882 2622.63932 3.37173 2533.79188
12 1998 14.56 133.0606699 1937.36335 2.84119 2720.81276 3.48405 2627.90039
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 209.53%
GROSS ANNUAL RETURN = 11.96%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2720.81 2720.81
TOTAL RETURN 172.08% 172.08%
AVERAGE ANNUAL RETURN 10.53% 10.53%
WITH DEATH BENEFIT CHARGE
ERV 2627.90 2627.90
TOTAL RETURN 162.79% 162.79%
AVERAGE ANNUAL RETURN 10.14% 10.14%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 14.47 115.8831129 1676.82864 2.57220 2432.34774 3.14579 2343.01406
2 1998 13.44 133.0606699 1788.33540 2.63504 2591.46042 3.22172 2495.59950
3 1998 14.00 133.0606699 1862.84938 2.80742 2696.63053 3.43153 2596.15128
4 1998 14.32 133.0606699 1905.42879 2.92135 2755.34645 3.56979 2651.92209
5 1998 14.68 133.0606699 1953.33063 2.98496 2821.62997 3.64648 2714.94404
6 1998 14.83 133.0606699 1973.28973 3.05677 2847.40458 3.73314 2738.95215
7 1998 15.05 133.0606699 2002.56308 3.08469 2886.56055 3.76615 2775.81780
8 1998 13.04 133.0606699 1735.11114 3.12711 2497.91938 3.81684 2401.27712
9 1998 12.64 133.0606699 1681.88687 2.70608 2418.59000 3.30184 2324.31647
10 1998 13.55 133.0606699 1802.97208 2.62014 2590.09304 3.19601 2488.45653
11 1998 14.02 133.0606699 1865.51059 2.80593 2677.12797 3.42171 2571.35029
12 1998 14.56 133.0606699 1937.36335 2.90022 2777.34109 3.53569 2666.85377
</TABLE>
SURRENDER CHARGE = 0.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 222.89%
GROSS ANNUAL RETURN = 10.57%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2777.34 2777.34
TOTAL RETURN 177.73% 177.73%
AVERAGE ANNUAL RETURN 9.15% 9.15%
WITH DEATH BENEFIT CHARGE
ERV 2666.85 2666.85
TOTAL RETURN 166.69% 166.69%
AVERAGE ANNUAL RETURN 8.77% 8.77%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 14.47 115.8831129 1676.82864 1.39965 1323.54728 1.76116 1311.73136
2 1998 13.44 133.0606699 1788.33540 1.43384 1410.12748 1.80367 1397.15599
3 1998 14.00 133.0606699 1862.84938 1.52764 1467.35515 1.92114 1453.44969
4 1998 14.32 133.0606699 1905.42879 1.58963 1499.30506 1.99854 1484.67285
5 1998 14.68 133.0606699 1953.33063 1.62425 1535.37284 2.04147 1519.95556
6 1998 14.83 133.0606699 1973.28973 1.66332 1549.39794 2.08999 1533.39645
7 1998 15.05 133.0606699 2002.56308 1.67851 1570.70442 2.10847 1554.03560
8 1998 13.04 133.0606699 1735.11114 1.70160 1359.22768 2.13685 1344.34981
9 1998 12.64 133.0606699 1681.88687 1.47250 1316.06109 1.84853 1301.26356
10 1998 13.55 133.0606699 1802.97208 1.42573 1409.38342 1.78928 1393.15702
11 1998 14.02 133.0606699 1865.51059 1.52683 1456.74295 1.91564 1439.56491
12 1998 14.56 133.0606699 1937.36335 1.57814 1511.27332 1.97945 1493.03232
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 58.09%
GROSS ANNUAL RETURN = 13.63%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1511.27 1459.89
TOTAL RETURN 51.13% 45.99%
AVERAGE ANNUAL RETURN 12.21% 11.14%
WITH DEATH BENEFIT CHARGE
ERV 1493.03 1442.27
TOTAL RETURN 49.30% 44.23%
AVERAGE ANNUAL RETURN 11.83% 10.76%
Scudder Global Discovery
12/1998
Assume ($10000 @ $10.00 on 5/ 2/1997)
DATE DIV PR/SH REINVEST NAV REINVEST SHARES SHARE BASIS
(incl cap gain)
100.000000
2/98 0.1900000000 7.47 2.544 102.543507
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 7.07 100.0000000 707.00000 1000.00000 1000.00000
1 1998 7.08 100.0000000 708.00000 1.08333 1000.33109 1.37503 1000.03939
2 1998 7.60 102.5435074 779.33066 1.08369 1100.03027 1.37509 1099.41779
3 1998 8.09 102.5435074 829.57697 1.19170 1169.76158 1.51174 1168.78957
4 1998 8.22 102.5435074 842.90763 1.26724 1187.29149 1.60712 1185.96398
5 1998 7.93 102.5435074 813.17001 1.28623 1144.11785 1.63074 1142.49266
6 1998 8.04 102.5435074 824.44980 1.23946 1158.74888 1.57097 1156.76964
7 1998 8.04 102.5435074 824.44980 1.25531 1157.49356 1.59060 1155.17905
8 1998 6.54 102.5435074 670.63454 1.25395 940.28932 1.58841 938.07216
9 1998 6.65 102.5435074 681.91432 1.01865 955.08594 1.28988 952.56025
10 1998 6.85 102.5435074 702.42303 1.03468 982.77565 1.30980 979.89888
11 1998 7.38 102.5435074 756.77108 1.06467 1057.75055 1.34739 1054.36847
12 1998 8.01 102.5435074 821.37349 1.14590 1146.90044 1.44979 1142.92575
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1146.90 1078.66
TOTAL RETURN 14.69% 7.87%
WITH DEATH BENEFIT CHARGE
ERV 1142.93 1074.92
TOTAL RETURN 14.29% 7.49%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 7.07 100.0000000 707.00000 1000.00000 1000.00000
1 1998 7.08 100.0000000 708.00000 1.08333 1000.33109 1.37503 1000.03939
2 1998 7.60 102.5435074 779.33066 1.08369 1100.03027 1.37509 1099.41779
3 1998 8.09 102.5435074 829.57697 1.19170 1169.76158 1.51174 1168.78957
4 1998 8.22 102.5435074 842.90763 1.26724 1187.29149 1.60712 1185.96398
5 1998 7.93 102.5435074 813.17001 1.28623 1144.11785 1.63074 1142.49266
6 1998 8.04 102.5435074 824.44980 1.23946 1158.74888 1.57097 1156.76964
7 1998 8.04 102.5435074 824.44980 1.25531 1157.49356 1.59060 1155.17905
8 1998 6.54 102.5435074 670.63454 1.25395 940.28932 1.58841 938.07216
9 1998 6.65 102.5435074 681.91432 1.01865 955.08594 1.28988 952.56025
10 1998 6.85 102.5435074 702.42303 1.03468 982.77565 1.30980 979.89888
11 1998 7.38 102.5435074 756.77108 1.06467 1057.75055 1.34739 1054.36847
12 1998 8.01 102.5435074 821.37349 1.14590 1146.90044 1.44979 1142.92575
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 16.18%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1146.90 1078.66
TOTAL RETURN 14.69% 7.87%
WITH DEATH BENEFIT CHARGE
ERV 1142.93 1074.92
TOTAL RETURN 14.29% 7.49%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 7.08 100.0000000 708.00000 1.25111 1155.25230 1.58435 1152.26899
2 1998 7.60 102.5435074 779.33066 1.25152 1270.39189 1.58441 1266.77512
3 1998 8.09 102.5435074 829.57697 1.37626 1350.92247 1.74186 1346.70692
4 1998 8.22 102.5435074 842.90763 1.46350 1371.16725 1.85177 1366.49569
5 1998 7.93 102.5435074 813.17001 1.48543 1321.30730 1.87898 1316.40701
6 1998 8.04 102.5435074 824.44980 1.43142 1338.20423 1.81010 1332.85728
7 1998 8.04 102.5435074 824.44980 1.44972 1336.75451 1.83272 1331.02455
8 1998 6.54 102.5435074 670.63454 1.44815 1085.91186 1.83020 1080.86887
9 1998 6.65 102.5435074 681.91432 1.17640 1103.00003 1.48623 1097.56240
10 1998 6.85 102.5435074 702.42303 1.19492 1134.97805 1.50918 1129.06261
11 1998 7.38 102.5435074 756.77108 1.22956 1221.56431 1.55250 1214.86824
12 1998 8.01 102.5435074 821.37349 1.32336 1324.52083 1.67048 1316.90602
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 35.32%
GROSS ANNUAL RETURN = 19.91%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1324.52 1256.97
TOTAL RETURN 32.45% 25.70%
AVERAGE ANNUAL RETURN 18.38% 14.72%
WITH DEATH BENEFIT CHARGE
ERV 1316.91 1249.74
TOTAL RETURN 31.69% 24.97%
AVERAGE ANNUAL RETURN 17.97% 14.32%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1997 6.63 100.0000000 663.00000 1000.00000 1000.00000
6 1997 6.93 100.0000000 693.00000 1.08333 1044.16554 1.37503 1043.87384
7 1997 7.06 100.0000000 706.00000 1.13118 1062.62188 1.43536 1062.02052
8 1997 6.98 100.0000000 698.00000 1.15117 1049.42966 1.46031 1048.52598
9 1997 7.31 100.0000000 731.00000 1.13688 1097.90765 1.44176 1096.65637
10 1997 6.98 100.0000000 698.00000 1.18940 1047.15470 1.50794 1045.64137
11 1997 6.89 100.0000000 689.00000 1.13442 1032.51829 1.43779 1030.72110
12 1997 7.07 100.0000000 707.00000 1.11856 1058.37408 1.41728 1056.23122
1 1998 7.08 100.0000000 708.00000 1.14657 1058.72450 1.45235 1056.27283
2 1998 7.60 102.5435074 779.33066 1.14695 1164.24353 1.45241 1161.23940
3 1998 8.09 102.5435074 829.57697 1.26126 1238.04534 1.59674 1234.51204
4 1998 8.22 102.5435074 842.90763 1.34122 1256.59855 1.69750 1252.65219
5 1998 7.93 102.5435074 813.17001 1.36132 1210.90468 1.72244 1206.73642
6 1998 8.04 102.5435074 824.44980 1.31181 1226.38978 1.65930 1221.81621
7 1998 8.04 102.5435074 824.44980 1.32859 1225.06119 1.68004 1220.13618
8 1998 6.54 102.5435074 670.63454 1.32715 995.17785 1.67773 990.82110
9 1998 6.65 102.5435074 681.91432 1.07811 1010.83820 1.36241 1006.12388
10 1998 6.85 102.5435074 702.42303 1.09507 1040.14428 1.38345 1034.99979
11 1998 7.38 102.5435074 756.77108 1.12682 1119.49577 1.42316 1113.65690
12 1998 8.01 102.5435074 821.37349 1.21279 1213.84970 1.53132 1207.19386
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.89%
GROSS ANNUAL RETURN = 13.70%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1213.85 1151.94
TOTAL RETURN 21.38% 15.19%
AVERAGE ANNUAL RETURN 12.32% 8.85%
WITH DEATH BENEFIT CHARGE
ERV 1207.19 1145.63
TOTAL RETURN 20.72% 14.56%
AVERAGE ANNUAL RETURN 11.95% 8.49%
Scudder Growth & Income
12/1998
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
1/98 0.0550000000 11.42 0.491 102.341776
2/98 0.7900000000 11.35 7.123 109.465124
4/98 0.0550000000 11.62 0.518 109.983246
7/98 0.0600000000 11.16 0.591 110.574554
10/98 0.0550000000 10.42 0.584 111.158201
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 11.47 101.8512486 1168.23382 1000.00000 1000.00000
1 1998 11.43 102.3417756 1169.76649 1.08333 1000.22862 1.37503 999.93692
2 1998 11.42 109.4651238 1250.09171 1.08358 1067.82848 1.37495 1067.22539
3 1998 12.03 109.4651238 1316.86544 1.15681 1123.70979 1.46747 1122.76382
4 1998 11.86 109.9832462 1304.40130 1.21735 1111.85652 1.54384 1110.59302
5 1998 11.65 109.9832462 1281.30482 1.20451 1090.96483 1.52710 1089.40112
6 1998 11.67 109.9832462 1283.50448 1.18188 1091.65586 1.49796 1089.77337
7 1998 11.16 110.5745540 1234.01202 1.18263 1048.37853 1.49847 1046.25279
8 1998 9.75 110.5745540 1078.10190 1.13574 914.78636 1.43863 912.62630
9 1998 10.14 110.5745540 1121.22598 0.99102 950.38680 1.25489 947.87646
10 1998 10.70 111.1582009 1189.39275 1.02959 1007.13753 1.30336 1004.20080
11 1998 11.14 111.1582009 1238.30236 1.09107 1047.46147 1.38081 1044.11423
12 1998 11.21 111.1582009 1246.08343 1.13475 1052.90861 1.43569 1049.23940
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 6.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1052.91 990.26
TOTAL RETURN 5.29% -0.97%
WITH DEATH BENEFIT CHARGE
ERV 1049.24 986.81
TOTAL RETURN 4.92% -1.32%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 11.47 101.8512486 1168.23382 1000.00000 1000.00000
1 1998 11.43 102.3417756 1169.76649 1.08333 1000.22862 1.37503 999.93692
2 1998 11.42 109.4651238 1250.09171 1.08358 1067.82848 1.37495 1067.22539
3 1998 12.03 109.4651238 1316.86544 1.15681 1123.70979 1.46747 1122.76382
4 1998 11.86 109.9832462 1304.40130 1.21735 1111.85652 1.54384 1110.59302
5 1998 11.65 109.9832462 1281.30482 1.20451 1090.96483 1.52710 1089.40112
6 1998 11.67 109.9832462 1283.50448 1.18188 1091.65586 1.49796 1089.77337
7 1998 11.16 110.5745540 1234.01202 1.18263 1048.37853 1.49847 1046.25279
8 1998 9.75 110.5745540 1078.10190 1.13574 914.78636 1.43863 912.62630
9 1998 10.14 110.5745540 1121.22598 0.99102 950.38680 1.25489 947.87646
10 1998 10.70 111.1582009 1189.39275 1.02959 1007.13753 1.30336 1004.20080
11 1998 11.14 111.1582009 1238.30236 1.09107 1047.46147 1.38081 1044.11423
12 1998 11.21 111.1582009 1246.08343 1.13475 1052.90861 1.43569 1049.23940
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 6.66%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1052.91 990.26
TOTAL RETURN 5.29% -0.97%
WITH DEATH BENEFIT CHARGE
ERV 1049.24 986.81
TOTAL RETURN 4.92% -1.32%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 11.43 102.3417756 1169.76649 1.31727 1216.22278 1.66816 1213.09994
2 1998 11.42 109.4651238 1250.09171 1.31757 1298.42047 1.66805 1294.73272
3 1998 12.03 109.4651238 1316.86544 1.40662 1366.36906 1.78030 1362.11064
4 1998 11.86 109.9832462 1304.40130 1.48023 1351.95613 1.87295 1347.34531
5 1998 11.65 109.9832462 1281.30482 1.46462 1326.55300 1.85264 1321.63579
6 1998 11.67 109.9832462 1283.50448 1.43710 1327.39324 1.81729 1322.08740
7 1998 11.16 110.5745540 1234.01202 1.43801 1274.77040 1.81791 1269.28925
8 1998 9.75 110.5745540 1078.10190 1.38100 1112.32970 1.74531 1107.17675
9 1998 10.14 110.5745540 1121.22598 1.20502 1155.61787 1.52240 1149.94141
10 1998 10.70 111.1582009 1189.39275 1.25192 1224.62363 1.58121 1218.27278
11 1998 11.14 111.1582009 1238.30236 1.32668 1273.65531 1.67517 1266.69481
12 1998 11.21 111.1582009 1246.08343 1.37979 1280.27874 1.74175 1272.91255
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 30.80%
GROSS ANNUAL RETURN = 17.46%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1280.28 1214.98
TOTAL RETURN 28.03% 21.50%
AVERAGE ANNUAL RETURN 15.96% 12.38%
WITH DEATH BENEFIT CHARGE
ERV 1272.91 1207.99
TOTAL RETURN 27.29% 20.80%
AVERAGE ANNUAL RETURN 15.56% 11.99%
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5 1997 10.00 100.7049892 1007.04989 1000.00000 1000.00000
6 1997 10.54 100.7049892 1061.43059 1.08333 1052.91667 1.37503 1052.62497
7 1997 11.17 101.3016915 1131.53989 1.14066 1121.32296 1.44739 1120.70525
8 1997 10.76 101.3016915 1090.00620 1.21477 1078.94951 1.54101 1078.02824
9 1997 11.43 101.3016915 1157.87833 1.16886 1144.96431 1.48232 1143.67221
10 1997 11.01 101.8512486 1121.38225 1.24038 1107.63489 1.57259 1106.05131
11 1997 11.33 101.8512486 1153.97465 1.19994 1138.62780 1.52086 1136.67727
12 1997 11.47 101.8512486 1168.23382 1.23351 1151.46382 1.56297 1149.15974
1 1998 11.43 102.3417756 1169.76649 1.24742 1151.72708 1.58013 1149.08726
2 1998 11.42 109.4651238 1250.09171 1.24770 1229.56586 1.58003 1226.41245
3 1998 12.03 109.4651238 1316.86544 1.33203 1293.91117 1.68636 1290.23498
4 1998 11.86 109.9832462 1304.40130 1.40174 1280.26256 1.77412 1276.24878
5 1998 11.65 109.9832462 1281.30482 1.38695 1256.20654 1.75488 1251.89590
6 1998 11.67 109.9832462 1283.50448 1.36089 1257.00223 1.72140 1252.32368
7 1998 11.16 110.5745540 1234.01202 1.36175 1207.16995 1.72199 1202.31158
8 1998 9.75 110.5745540 1078.10190 1.30777 1053.34340 1.65322 1048.75340
9 1998 10.14 110.5745540 1121.22598 1.14112 1094.33601 1.44207 1089.26147
10 1998 10.70 111.1582009 1189.39275 1.18553 1159.68243 1.49777 1153.98713
11 1998 11.14 111.1582009 1238.30236 1.25632 1206.11399 1.58677 1199.85404
12 1998 11.21 111.1582009 1246.08343 1.30662 1212.38618 1.64984 1205.74368
</TABLE>
SURRENDER CHARGE = 6.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.74%
GROSS ANNUAL RETURN = 13.62%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1212.39 1150.55
TOTAL RETURN 21.24% 15.06%
AVERAGE ANNUAL RETURN 12.24% 8.77%
WITH DEATH BENEFIT CHARGE
ERV 1205.74 1144.25
TOTAL RETURN 20.57% 14.43%
AVERAGE ANNUAL RETURN 11.87% 8.41%
T. Rowe Price Personal Strategy Bal
12/1998
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
3/98 0.1400000000 16.19 0.991 115.628452
6/98 0.1300000000 16.27 0.924 116.552342
9/98 0.1200000000 15.37 0.910 117.462315
12/98 0.6972405220 15.72 5.210 122.672206
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 15.13 114.6371485 1734.46006 1000.00000 1000.00000
1 1998 15.28 114.6371485 1751.65563 1.08333 1008.83074 1.37503 1008.53904
2 1998 15.84 114.6371485 1815.85243 1.09290 1044.71070 1.38677 1044.11443
3 1998 16.21 115.6284519 1874.33720 1.13177 1077.22685 1.43569 1076.30746
4 1998 16.28 115.6284519 1882.43120 1.16700 1080.71167 1.47996 1079.47535
5 1998 16.21 115.6284519 1874.33720 1.17077 1074.89411 1.48431 1073.34955
6 1998 16.35 116.5523424 1905.63080 1.16447 1091.67587 1.47589 1089.79411
7 1998 16.20 116.5523424 1888.14795 1.18265 1080.47785 1.49850 1078.29750
8 1998 14.82 116.5523424 1727.30571 1.17052 987.26663 1.48269 984.95983
9 1998 15.18 117.4623151 1783.07794 1.06954 1018.07451 1.35435 1015.40842
10 1998 15.82 117.4623151 1858.25383 1.10291 1059.89437 1.39622 1056.82257
11 1998 16.36 117.4623151 1921.68348 1.14822 1094.92460 1.45317 1091.44299
12 1998 16.16 122.6722061 1982.38285 1.18617 1128.32333 1.50077 1124.41715
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.29%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1128.32 1061.19
TOTAL RETURN 12.83% 6.12%
WITH DEATH BENEFIT CHARGE
ERV 1124.42 1057.51
TOTAL RETURN 12.44% 5.75%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 15.13 114.6371485 1734.46006 1000.00000 1000.00000
1 1998 15.28 114.6371485 1751.65563 1.08333 1008.83074 1.37503 1008.53904
2 1998 15.84 114.6371485 1815.85243 1.09290 1044.71070 1.38677 1044.11443
3 1998 16.21 115.6284519 1874.33720 1.13177 1077.22685 1.43569 1076.30746
4 1998 16.28 115.6284519 1882.43120 1.16700 1080.71167 1.47996 1079.47535
5 1998 16.21 115.6284519 1874.33720 1.17077 1074.89411 1.48431 1073.34955
6 1998 16.35 116.5523424 1905.63080 1.16447 1091.67587 1.47589 1089.79411
7 1998 16.20 116.5523424 1888.14795 1.18265 1080.47785 1.49850 1078.29750
8 1998 14.82 116.5523424 1727.30571 1.17052 987.26663 1.48269 984.95983
9 1998 15.18 117.4623151 1783.07794 1.06954 1018.07451 1.35435 1015.40842
10 1998 15.82 117.4623151 1858.25383 1.10291 1059.89437 1.39622 1056.82257
11 1998 16.36 117.4623151 1921.68348 1.14822 1094.92460 1.45317 1091.44299
12 1998 16.16 122.6722061 1982.38285 1.18617 1128.32333 1.50077 1124.41715
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 14.29%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1128.32 1061.19
TOTAL RETURN 12.83% 6.12%
WITH DEATH BENEFIT CHARGE
ERV 1124.42 1057.51
TOTAL RETURN 12.44% 5.75%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 12.43 103.5067091 1286.58839 1000.00000 1000.00000
1 1996 12.62 104.1707457 1314.63481 1.08333 1020.71573 1.37503 1020.42403
2 1996 12.59 104.1707457 1311.50969 1.10578 1017.18353 1.40312 1016.59518
3 1996 12.55 104.8342537 1315.66988 1.10195 1019.30815 1.39785 1018.42203
4 1996 12.62 104.8342537 1323.00828 1.10425 1023.88928 1.40036 1022.70211
5 1996 12.72 104.8342537 1333.49171 1.10921 1030.89330 1.40625 1029.39968
6 1996 12.67 105.7502003 1339.85504 1.11680 1034.69585 1.41546 1032.89645
7 1996 12.42 105.7502003 1313.41749 1.12092 1013.15867 1.42027 1011.09543
8 1996 12.59 105.7502003 1331.39502 1.09759 1025.92880 1.39029 1023.54461
9 1996 12.97 106.6477714 1383.22160 1.11142 1064.75321 1.40741 1061.98023
10 1996 13.19 106.6477714 1406.68411 1.15348 1081.66031 1.46026 1078.53352
11 1996 13.85 106.6477714 1477.07163 1.17180 1134.61253 1.48302 1131.01806
12 1996 13.44 109.3317272 1469.41841 1.22916 1127.50454 1.55519 1123.60267
1 1997 13.64 109.3317272 1491.28476 1.22146 1143.06142 1.54499 1138.77796
2 1997 13.75 109.3317272 1503.31125 1.23832 1151.04134 1.56586 1146.39579
3 1997 13.30 110.2978396 1466.96127 1.24696 1121.96226 1.57633 1117.09968
4 1997 13.61 110.2978396 1501.15360 1.21546 1146.89780 1.53605 1141.60129
5 1997 14.18 110.2978396 1564.02337 1.24247 1193.68852 1.56974 1187.84292
6 1997 14.48 111.2119101 1610.34846 1.29316 1227.75144 1.63332 1221.39253
7 1997 15.15 111.2119101 1684.86044 1.33006 1283.23032 1.67946 1276.22778
8 1997 14.63 111.2119101 1627.03025 1.39017 1237.79528 1.75486 1230.66841
9 1997 15.12 112.0962991 1694.89604 1.34094 1288.08458 1.69221 1280.30917
10 1997 14.92 112.0962991 1672.47678 1.39542 1269.65100 1.76047 1261.61339
11 1997 15.18 112.0962991 1701.62182 1.37546 1290.40083 1.73476 1281.86385
12 1997 15.13 114.6371485 1734.46006 1.39793 1313.90530 1.76261 1304.83891
1 1998 15.28 114.6371485 1751.65563 1.42340 1325.50807 1.79420 1315.98099
2 1998 15.84 114.6371485 1815.85243 1.43597 1372.65093 1.80952 1362.40114
3 1998 16.21 115.6284519 1874.33720 1.48704 1415.37408 1.87335 1404.40786
4 1998 16.28 115.6284519 1882.43120 1.53332 1419.95280 1.93111 1408.54144
5 1998 16.21 115.6284519 1874.33720 1.53828 1412.30907 1.93679 1400.54826
6 1998 16.35 116.5523424 1905.63080 1.53000 1434.35872 1.92580 1422.00576
7 1998 16.20 116.5523424 1888.14795 1.55389 1419.64558 1.95531 1407.00453
8 1998 14.82 116.5523424 1727.30571 1.53795 1297.17486 1.93468 1285.21391
9 1998 15.18 117.4623151 1783.07794 1.40527 1337.65351 1.76721 1324.94442
10 1998 15.82 117.4623151 1858.25383 1.44912 1392.60084 1.82184 1378.98321
11 1998 16.36 117.4623151 1921.68348 1.50865 1438.62724 1.89615 1424.15729
12 1998 16.16 122.6722061 1982.38285 1.55851 1482.51001 1.95826 1467.18325
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 54.08%
GROSS ANNUAL RETURN = 15.50%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1482.51 1419.50
TOTAL RETURN 48.25% 41.95%
AVERAGE ANNUAL RETURN 14.02% 12.39%
WITH DEATH BENEFIT CHARGE
ERV 1467.18 1404.83
TOTAL RETURN 46.72% 40.48%
AVERAGE ANNUAL RETURN 13.63% 12.00%
<TABLE>
<CAPTION>
Return for Inception
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 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
1 1998 15.28 114.6371485 1751.65563 1.80815 1683.79936 2.27137 1665.96975
2 1998 15.84 114.6371485 1815.85243 1.82412 1743.68517 2.29076 1724.73547
3 1998 16.21 115.6284519 1874.33720 1.88899 1797.95659 2.37157 1777.91399
4 1998 16.28 115.6284519 1882.43120 1.94779 1803.77296 2.44469 1783.14690
5 1998 16.21 115.6284519 1874.33720 1.95409 1794.06309 2.45189 1773.02792
6 1998 16.35 116.5523424 1905.63080 1.94357 1822.07288 2.43797 1800.19210
7 1998 16.20 116.5523424 1888.14795 1.97391 1803.38270 2.47532 1781.20125
8 1998 14.82 116.5523424 1727.30571 1.95366 1647.80754 2.44921 1627.02008
9 1998 15.18 117.4623151 1783.07794 1.78512 1699.22777 2.23721 1677.31703
10 1998 15.82 117.4623151 1858.25383 1.84083 1769.02763 2.30637 1745.72758
11 1998 16.36 117.4623151 1921.68348 1.91645 1827.49519 2.40043 1802.91583
12 1998 16.16 122.6722061 1982.38285 1.97979 1883.23969 2.47907 1857.38467
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 98.24%
GROSS ANNUAL RETURN = 18.64%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1883.24 1819.21
TOTAL RETURN 88.32% 81.92%
AVERAGE ANNUAL RETURN 17.13% 16.13%
WITH DEATH BENEFIT CHARGE
ERV 1857.38 1794.23
TOTAL RETURN 85.74% 79.42%
AVERAGE ANNUAL RETURN 16.73% 15.72%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 15.28 114.6371485 1751.65563 1.57048 1462.47557 1.97619 1449.46578
2 1998 15.84 114.6371485 1815.85243 1.58435 1514.48980 1.99306 1500.59450
3 1998 16.21 115.6284519 1874.33720 1.64070 1561.62762 2.06337 1546.86211
4 1998 16.28 115.6284519 1882.43120 1.69176 1566.67947 2.12699 1551.41498
5 1998 16.21 115.6284519 1874.33720 1.69724 1558.24589 2.13325 1542.61102
6 1998 16.35 116.5523424 1905.63080 1.68810 1582.57398 2.12114 1566.24504
7 1998 16.20 116.5523424 1888.14795 1.71446 1566.34050 2.15364 1549.72218
8 1998 14.82 116.5523424 1727.30571 1.69687 1431.21463 2.13092 1415.57789
9 1998 15.18 117.4623151 1783.07794 1.55048 1475.87602 1.94647 1459.33840
10 1998 15.82 117.4623151 1858.25383 1.59887 1536.50117 2.00664 1518.85855
11 1998 16.36 117.4623151 1921.68348 1.66454 1587.28357 2.08848 1568.61480
12 1998 16.16 122.6722061 1982.38285 1.71956 1635.70085 2.15690 1616.00505
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 71.09%
GROSS ANNUAL RETURN = 16.17%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1635.70 1580.09
TOTAL RETURN 63.57% 58.01%
AVERAGE ANNUAL RETURN 14.72% 13.62%
WITH DEATH BENEFIT CHARGE
ERV 1616.01 1561.06
TOTAL RETURN 61.60% 56.11%
AVERAGE ANNUAL RETURN 14.33% 13.23%
T. Rowe Price Equity Income Fund
12/1998
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
3/98 0.1400000000 20.07 0.835 120.492140
6/98 0.1000000000 19.50 0.618 121.110049
9/98 0.1000000000 18.33 0.661 121.770769
12/98 0.6534299020 18.06 4.406 126.176565
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 18.59 119.6574597 2224.43217 1000.00000 1000.00000
1 1998 18.47 119.6574597 2210.07328 1.08333 992.46158 1.37503 992.16988
2 1998 19.37 119.6574597 2317.76499 1.07517 1039.74675 1.36427 1039.15174
3 1998 20.13 120.4921405 2425.50679 1.12639 1086.95321 1.42887 1086.02806
4 1998 20.01 120.4921405 2411.04773 1.17753 1079.29607 1.49332 1078.06065
5 1998 19.67 120.4921405 2370.08040 1.16924 1059.78797 1.48237 1058.26041
6 1998 19.53 121.1100489 2365.27925 1.14810 1056.49302 1.45514 1054.66151
7 1998 18.96 121.1100489 2296.24653 1.14453 1024.51382 1.45019 1022.43010
8 1998 17.13 121.1100489 2074.61514 1.10989 924.51890 1.40588 922.34031
9 1998 17.96 121.7707693 2187.00302 1.00156 973.60119 1.26825 971.03789
10 1998 19.03 121.7707693 2317.29774 1.05473 1030.55053 1.33521 1027.55405
11 1998 19.79 121.7707693 2409.84352 1.11643 1070.59114 1.41292 1067.17850
12 1998 19.25 126.1765645 2428.89887 1.15981 1077.89681 1.46741 1074.14959
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.19%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1077.90 1013.76
TOTAL RETURN 7.79% 1.38%
WITH DEATH BENEFIT CHARGE
ERV 1074.15 1010.24
TOTAL RETURN 7.41% 1.02%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 18.59 119.6574597 2224.43217 1000.00000 1000.00000
1 1998 18.47 119.6574597 2210.07328 1.08333 992.46158 1.37503 992.16988
2 1998 19.37 119.6574597 2317.76499 1.07517 1039.74675 1.36427 1039.15174
3 1998 20.13 120.4921405 2425.50679 1.12639 1086.95321 1.42887 1086.02806
4 1998 20.01 120.4921405 2411.04773 1.17753 1079.29607 1.49332 1078.06065
5 1998 19.67 120.4921405 2370.08040 1.16924 1059.78797 1.48237 1058.26041
6 1998 19.53 121.1100489 2365.27925 1.14810 1056.49302 1.45514 1054.66151
7 1998 18.96 121.1100489 2296.24653 1.14453 1024.51382 1.45019 1022.43010
8 1998 17.13 121.1100489 2074.61514 1.10989 924.51890 1.40588 922.34031
9 1998 17.96 121.7707693 2187.00302 1.00156 973.60119 1.26825 971.03789
10 1998 19.03 121.7707693 2317.29774 1.05473 1030.55053 1.33521 1027.55405
11 1998 19.79 121.7707693 2409.84352 1.11643 1070.59114 1.41292 1067.17850
12 1998 19.25 126.1765645 2428.89887 1.15981 1077.89681 1.46741 1074.14959
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 9.19%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1077.90 1013.76
TOTAL RETURN 7.79% 1.38%
WITH DEATH BENEFIT CHARGE
ERV 1074.15 1010.24
TOTAL RETURN 7.41% 1.02%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 13.21 109.3032661 1443.89615 1000.00000 1000.00000
1 1996 13.57 109.3848966 1484.35305 1.08333 1026.93593 1.37503 1026.64423
2 1996 13.62 109.3848966 1489.82229 1.11251 1029.60726 1.41167 1029.01533
3 1996 13.70 110.1798450 1509.46388 1.11541 1042.06603 1.41493 1041.16678
4 1996 13.78 110.1798450 1518.27826 1.12890 1047.02219 1.43164 1045.81494
5 1996 14.01 110.1798450 1543.61963 1.13427 1063.36361 1.43803 1061.83246
6 1996 13.99 111.0505191 1553.59676 1.15198 1069.08465 1.46005 1067.23552
7 1996 13.59 111.0505191 1509.17655 1.15817 1037.35936 1.46748 1035.25380
8 1996 13.88 111.0505191 1541.38120 1.12381 1058.37200 1.42351 1055.92180
9 1996 14.37 111.8260115 1606.93979 1.14657 1102.24048 1.45193 1099.38072
10 1996 14.70 111.8260115 1643.84237 1.19409 1126.35880 1.51169 1123.11577
11 1996 15.55 111.8260115 1738.89448 1.22022 1190.26817 1.54432 1186.51352
12 1996 15.26 113.1279961 1726.33322 1.28946 1180.38057 1.63150 1176.31100
1 1997 15.69 113.1279961 1774.97826 1.27875 1212.36288 1.61747 1207.83991
2 1997 16.07 113.1279961 1817.96690 1.31339 1240.41200 1.66082 1235.43207
3 1997 15.54 114.4713911 1778.88542 1.34378 1212.40264 1.69876 1207.17478
4 1997 15.93 114.4713911 1823.52926 1.31344 1241.51630 1.65991 1235.81077
5 1997 16.68 114.4713911 1909.38280 1.34498 1298.62313 1.69928 1292.29467
6 1997 17.22 115.0714158 1981.52978 1.40684 1346.28541 1.77695 1339.34772
7 1997 18.20 115.0714158 2094.29977 1.45848 1421.44480 1.84165 1413.72911
8 1997 17.72 115.0714158 2039.06549 1.53990 1382.41625 1.94392 1374.50002
9 1997 18.47 115.6961249 2136.90743 1.49762 1447.25210 1.88998 1438.56366
10 1997 17.98 115.6961249 2080.21633 1.56786 1407.28935 1.97807 1398.42120
11 1997 18.67 115.6961249 2160.04665 1.52456 1459.77089 1.92288 1450.16410
12 1997 18.59 119.6574597 2224.43217 1.58142 1501.70155 1.99402 1491.39580
1 1998 18.47 119.6574597 2210.07328 1.62684 1490.38109 2.05072 1479.71799
2 1998 19.37 119.6574597 2317.76499 1.61458 1561.38931 2.03466 1549.78654
3 1998 20.13 120.4921405 2425.50679 1.69151 1632.27931 2.13101 1619.69768
4 1998 20.01 120.4921405 2411.04773 1.76830 1620.78058 2.22714 1607.81512
5 1998 19.67 120.4921405 2370.08040 1.75585 1591.48524 2.21080 1578.28512
6 1998 19.53 121.1100489 2365.27925 1.72411 1586.53721 2.17019 1572.91774
7 1998 18.96 121.1100489 2296.24653 1.71875 1538.51399 2.16281 1524.84796
8 1998 17.13 121.1100489 2074.61514 1.66672 1388.35146 2.09672 1375.57446
9 1998 17.96 121.7707693 2187.00302 1.50405 1462.05841 1.89146 1448.20183
10 1998 19.03 121.7707693 2317.29774 1.58390 1547.57933 1.99133 1532.48979
11 1998 19.79 121.7707693 2409.84352 1.67654 1607.70837 2.10722 1591.58552
12 1998 19.25 126.1765645 2428.89887 1.74168 1618.67931 2.18848 1601.98218
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 68.22%
GROSS ANNUAL RETURN = 18.93%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1618.68 1549.89
TOTAL RETURN 61.87% 54.99%
AVERAGE ANNUAL RETURN 17.41% 15.73%
WITH DEATH BENEFIT CHARGE
ERV 1601.98 1533.90
TOTAL RETURN 60.20% 53.39%
AVERAGE ANNUAL RETURN 17.01% 15.33%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 18.47 119.6574597 2210.07328 2.29703 2104.34778 2.87812 2076.73596
2 1998 19.37 119.6574597 2317.76499 2.27971 2204.60803 2.85558 2175.07488
3 1998 20.13 120.4921405 2425.50679 2.38833 2304.70137 2.99080 2273.19289
4 1998 20.01 120.4921405 2411.04773 2.49676 2288.46570 3.12572 2256.51610
5 1998 19.67 120.4921405 2370.08040 2.47917 2247.10206 3.10278 2215.07171
6 1998 19.53 121.1100489 2365.27925 2.43436 2240.11567 3.04580 2207.53877
7 1998 18.96 121.1100489 2296.24653 2.42679 2172.30916 3.03544 2140.07440
8 1998 17.13 121.1100489 2074.61514 2.35333 1960.28674 2.94267 1930.57391
9 1998 17.96 121.7707693 2187.00302 2.12364 2064.35748 2.65460 2032.50406
10 1998 19.03 121.7707693 2317.29774 2.23639 2185.10898 2.79476 2150.79946
11 1998 19.79 121.7707693 2409.84352 2.36720 2270.00835 2.95742 2233.73839
12 1998 19.25 126.1765645 2428.89887 2.45918 2285.49880 3.07146 2248.32976
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 142.89%
GROSS ANNUAL RETURN = 20.53%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2285.50 2227.22
TOTAL RETURN 128.55% 122.72%
AVERAGE ANNUAL RETURN 18.99% 18.35%
WITH DEATH BENEFIT CHARGE
ERV 2248.33 2191.00
TOTAL RETURN 124.83% 119.10%
AVERAGE ANNUAL RETURN 18.58% 17.94%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 18.47 119.6574597 2210.07328 1.88108 1723.28797 2.36714 1708.03746
2 1998 19.37 119.6574597 2317.76499 1.86690 1805.39288 2.34861 1788.91753
3 1998 20.13 120.4921405 2425.50679 1.95584 1887.36110 2.45982 1869.61592
4 1998 20.01 120.4921405 2411.04773 2.04464 1874.06543 2.57078 1855.89988
5 1998 19.67 120.4921405 2370.08040 2.03024 1840.19200 2.55192 1821.81343
6 1998 19.53 121.1100489 2365.27925 1.99354 1834.47072 2.50505 1815.61787
7 1998 18.96 121.1100489 2296.24653 1.98734 1778.94276 2.49654 1760.13095
8 1998 17.13 121.1100489 2074.61514 1.92719 1605.31382 2.42024 1587.82465
9 1998 17.96 121.7707693 2187.00302 1.73909 1690.53920 2.18331 1671.65838
10 1998 19.03 121.7707693 2317.29774 1.83142 1789.42476 2.29859 1768.95191
11 1998 19.79 121.7707693 2409.84352 1.93854 1858.95037 2.43237 1837.16607
12 1998 19.25 126.1765645 2428.89887 2.01386 1871.63578 2.52616 1849.16692
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 95.74%
GROSS ANNUAL RETURN = 20.61%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1871.64 1808.00
TOTAL RETURN 87.16% 80.80%
AVERAGE ANNUAL RETURN 19.11% 17.97%
WITH DEATH BENEFIT CHARGE
ERV 1849.17 1786.30
TOTAL RETURN 84.92% 78.63%
AVERAGE ANNUAL RETURN 18.71% 17.57%
T. Rowe Price Internat. Stock Fund
12/1998
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
12/98 0.2300000000 13.91 1.737 106.785838
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 12.74 105.0488691 1338.32259 1000.00000 1000.00000
1 1998 13.18 105.0488691 1384.54409 1.08333 1033.45356 1.37503 1033.16186
2 1998 13.94 105.0488691 1464.38123 1.11957 1091.92615 1.42063 1091.31657
3 1998 14.42 105.0488691 1514.80469 1.18292 1128.34183 1.50060 1127.39359
4 1998 14.56 105.0488691 1529.51153 1.22237 1138.07424 1.55020 1136.78895
5 1998 14.47 105.0488691 1520.05714 1.23291 1129.80652 1.56312 1128.19897
6 1998 14.49 105.0488691 1522.15811 1.22396 1130.14415 1.55131 1128.20703
7 1998 14.70 105.0488691 1544.21838 1.22432 1145.29873 1.55132 1143.00653
8 1998 12.81 105.0488691 1345.67601 1.24074 996.80529 1.57167 994.47688
9 1998 12.49 105.0488691 1312.06037 1.07987 970.82474 1.36744 968.26692
10 1998 13.64 105.0488691 1432.86657 1.05173 1059.16040 1.33140 1056.08740
11 1998 14.29 105.0488691 1501.14834 1.14742 1108.48617 1.45216 1104.96199
12 1998 14.52 106.7858381 1550.53037 1.20086 1143.75025 1.51936 1139.79165
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.86%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1143.75 1075.70
TOTAL RETURN 14.38% 7.57%
WITH DEATH BENEFIT CHARGE
ERV 1139.79 1071.97
TOTAL RETURN 13.98% 7.20%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 12.74 105.0488691 1338.32259 1000.00000 1000.00000
1 1998 13.18 105.0488691 1384.54409 1.08333 1033.45356 1.37503 1033.16186
2 1998 13.94 105.0488691 1464.38123 1.11957 1091.92615 1.42063 1091.31657
3 1998 14.42 105.0488691 1514.80469 1.18292 1128.34183 1.50060 1127.39359
4 1998 14.56 105.0488691 1529.51153 1.22237 1138.07424 1.55020 1136.78895
5 1998 14.47 105.0488691 1520.05714 1.23291 1129.80652 1.56312 1128.19897
6 1998 14.49 105.0488691 1522.15811 1.22396 1130.14415 1.55131 1128.20703
7 1998 14.70 105.0488691 1544.21838 1.22432 1145.29873 1.55132 1143.00653
8 1998 12.81 105.0488691 1345.67601 1.24074 996.80529 1.57167 994.47688
9 1998 12.49 105.0488691 1312.06037 1.07987 970.82474 1.36744 968.26692
10 1998 13.64 105.0488691 1432.86657 1.05173 1059.16040 1.33140 1056.08740
11 1998 14.29 105.0488691 1501.14834 1.14742 1108.48617 1.45216 1104.96199
12 1998 14.52 106.7858381 1550.53037 1.20086 1143.75025 1.51936 1139.79165
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 15.86%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1143.75 1075.70
TOTAL RETURN 14.38% 7.57%
WITH DEATH BENEFIT CHARGE
ERV 1139.79 1071.97
TOTAL RETURN 13.98% 7.20%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 11.26 100.5138746 1131.78623 1000.00000 1000.00000
1 1996 11.45 101.4025915 1161.05967 1.08333 1024.78148 1.37503 1024.48978
2 1996 11.52 101.4025915 1168.15785 1.11018 1029.93634 1.40871 1029.34433
3 1996 11.72 101.4025915 1188.43837 1.11576 1046.70142 1.41538 1045.79951
4 1996 12.06 101.4025915 1222.91525 1.13393 1075.93255 1.43801 1074.70040
5 1996 12.02 101.4025915 1218.85915 1.16559 1071.19836 1.47775 1069.65813
6 1996 12.17 101.4025915 1234.06954 1.16046 1083.40559 1.47082 1081.53580
7 1996 11.78 101.4025915 1194.52253 1.17369 1047.51307 1.48715 1045.38974
8 1996 11.96 101.4025915 1212.77499 1.13481 1062.38441 1.43745 1059.92599
9 1996 12.23 101.4025915 1240.15369 1.15092 1085.21709 1.45743 1082.39665
10 1996 12.17 101.4025915 1234.06954 1.17565 1078.71739 1.48833 1075.59812
11 1996 12.71 101.4025915 1288.82694 1.16861 1125.41299 1.47898 1121.84493
12 1996 12.64 102.7036672 1298.17435 1.21920 1132.35602 1.54257 1128.43871
1 1997 12.48 102.7036672 1281.74177 1.22672 1116.79568 1.55164 1112.60304
2 1997 12.65 102.7036672 1299.20139 1.20986 1130.79858 1.52987 1126.22882
3 1997 12.62 102.7036672 1296.12028 1.22503 1126.89182 1.54860 1122.00932
4 1997 12.71 102.7036672 1305.36361 1.22080 1133.70749 1.54280 1128.46817
5 1997 13.53 102.7036672 1389.58062 1.22818 1205.62172 1.55168 1199.72089
6 1997 14.11 102.7036672 1449.14874 1.30609 1255.99786 1.64966 1249.50051
7 1997 14.47 102.7036672 1486.12206 1.36066 1286.68250 1.71810 1279.66193
8 1997 13.16 102.7036672 1351.58026 1.39391 1168.80248 1.75958 1162.05183
9 1997 14.03 102.7036672 1440.93245 1.26620 1244.80514 1.59786 1237.27654
10 1997 12.98 102.7036672 1333.09360 1.34854 1150.29584 1.70130 1142.97793
11 1997 12.96 102.7036672 1331.03953 1.24615 1147.27728 1.57163 1139.64516
12 1997 12.74 105.0488691 1338.32259 1.24288 1152.31196 1.56705 1144.31392
1 1998 13.18 105.0488691 1384.54409 1.24834 1190.86090 1.57347 1182.26150
2 1998 13.94 105.0488691 1464.38123 1.29010 1258.23956 1.62565 1248.80874
3 1998 14.42 105.0488691 1514.80469 1.36309 1300.20179 1.71715 1290.09218
4 1998 14.56 105.0488691 1529.51153 1.40855 1311.41656 1.77392 1300.84342
5 1998 14.47 105.0488691 1520.05714 1.42070 1301.88957 1.78870 1291.01379
6 1998 14.49 105.0488691 1522.15811 1.41038 1302.27863 1.77519 1291.02301
7 1998 14.70 105.0488691 1544.21838 1.41080 1319.74143 1.77520 1307.95828
8 1998 12.81 105.0488691 1345.67601 1.42972 1148.63067 1.79849 1137.99373
9 1998 12.49 105.0488691 1312.06037 1.24435 1118.69297 1.56478 1108.00132
10 1998 13.64 105.0488691 1432.86657 1.21192 1220.48320 1.52354 1208.49552
11 1998 14.29 105.0488691 1501.14834 1.32219 1277.32187 1.66172 1264.42339
12 1998 14.52 106.7858381 1550.53037 1.38377 1317.95710 1.73862 1304.27945
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 37.00%
GROSS ANNUAL RETURN = 11.06%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1317.96 1261.94
TOTAL RETURN 31.80% 26.19%
AVERAGE ANNUAL RETURN 9.64% 8.06%
WITH DEATH BENEFIT CHARGE
ERV 1304.28 1248.85
TOTAL RETURN 30.43% 24.88%
AVERAGE ANNUAL RETURN 9.26% 7.69%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 13.18 105.0488691 1384.54409 1.38123 1317.63373 1.73039 1300.16468
2 1998 13.94 105.0488691 1464.38123 1.42744 1392.18518 1.78777 1373.34847
3 1998 14.42 105.0488691 1514.80469 1.50820 1438.61449 1.88840 1418.74897
4 1998 14.56 105.0488691 1529.51153 1.55850 1451.02312 1.95083 1430.57240
5 1998 14.47 105.0488691 1520.05714 1.57194 1440.48194 1.96708 1419.76249
6 1998 14.49 105.0488691 1522.15811 1.56052 1440.91241 1.95222 1419.77262
7 1998 14.70 105.0488691 1544.21838 1.56099 1460.23421 1.95223 1438.39680
8 1998 12.81 105.0488691 1345.67601 1.58192 1270.90789 1.97784 1251.48223
9 1998 12.49 105.0488691 1312.06037 1.37682 1237.78318 1.72083 1218.49877
10 1998 13.64 105.0488691 1432.86657 1.34093 1350.40947 1.67548 1329.01493
11 1998 14.29 105.0488691 1501.14834 1.46294 1413.29889 1.82744 1390.52031
12 1998 14.52 106.7858381 1550.53037 1.53107 1458.25993 1.91201 1434.35110
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 55.05%
GROSS ANNUAL RETURN = 9.67%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1458.26 1421.07
TOTAL RETURN 45.83% 42.11%
AVERAGE ANNUAL RETURN 8.26% 7.67%
WITH DEATH BENEFIT CHARGE
ERV 1434.35 1397.78
TOTAL RETURN 43.44% 39.78%
AVERAGE ANNUAL RETURN 7.88% 7.30%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 13.18 105.0488691 1384.54409 1.32758 1266.45649 1.67046 1255.13406
2 1998 13.94 105.0488691 1464.38123 1.37199 1338.11234 1.72585 1325.78316
3 1998 14.42 105.0488691 1514.80469 1.44962 1382.73832 1.82300 1369.61123
4 1998 14.56 105.0488691 1529.51153 1.49797 1394.66500 1.88326 1381.02517
5 1998 14.47 105.0488691 1520.05714 1.51089 1384.53324 1.89896 1370.58966
6 1998 14.49 105.0488691 1522.15811 1.49991 1384.94699 1.88461 1370.59944
7 1998 14.70 105.0488691 1544.21838 1.50036 1403.51833 1.88462 1388.57858
8 1998 12.81 105.0488691 1345.67601 1.52048 1221.54549 1.90934 1208.13771
9 1998 12.49 105.0488691 1312.06037 1.32334 1189.70736 1.66123 1176.29661
10 1998 13.64 105.0488691 1432.86657 1.28885 1297.95922 1.61745 1282.98510
11 1998 14.29 105.0488691 1501.14834 1.40612 1358.40599 1.76415 1342.36027
12 1998 14.52 106.7858381 1550.53037 1.47161 1401.62074 1.84579 1384.67299
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 46.64%
GROSS ANNUAL RETURN = 11.27%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1401.62 1353.97
TOTAL RETURN 40.16% 35.40%
AVERAGE ANNUAL RETURN 9.88% 8.82%
WITH DEATH BENEFIT CHARGE
ERV 1384.67 1337.59
TOTAL RETURN 38.47% 33.76%
AVERAGE ANNUAL RETURN 9.51% 8.46%
T. Rowe Price Limited Term Bond
12/1998
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
1/98 0.0241935100 4.99 0.607 125.883389
2/98 0.0235600440 4.97 0.597 126.480133
3/98 0.0233776860 4.97 0.595 127.075065
4/98 0.0239243030 4.96 0.613 127.688005
5/98 0.0236435830 4.97 0.607 128.295450
6/98 0.0233259920 4.97 0.602 128.897587
7/98 0.0248340500 4.97 0.644 129.541661
8/98 0.0216810700 4.99 0.563 130.104507
9/98 0.0229926270 5.08 0.589 130.693374
10/98 0.0234590180 5.06 0.606 131.299291
11/98 0.0219889630 5.04 0.573 131.872135
12/98 0.0350158400 5.05 0.914 132.786514
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 4.96 125.2760009 621.36896 1000.00000 1000.00000
1 1998 4.99 125.8833889 628.15811 1.08333 1009.84278 1.37503 1009.55108
2 1998 4.97 126.4801330 628.60626 1.09400 1009.46924 1.38817 1008.88316
3 1998 4.97 127.0750652 631.56307 1.09359 1013.12395 1.38725 1012.24146
4 1998 4.96 127.6880052 633.33251 1.09755 1014.86484 1.39187 1013.68556
5 1998 4.97 128.2954502 637.62839 1.09944 1020.64921 1.39385 1019.16752
6 1998 4.97 128.8975868 640.62101 1.10570 1024.33378 1.40139 1022.54945
7 1998 4.97 129.5416611 643.82206 1.10969 1028.34246 1.40604 1026.25287
8 1998 4.99 130.1045071 649.22149 1.11404 1035.85266 1.41113 1033.44844
9 1998 5.08 130.6933741 663.92234 1.12217 1058.18614 1.42103 1055.42863
10 1998 5.06 131.2992908 664.37441 1.14637 1057.76030 1.45125 1054.69603
11 1998 5.04 131.8721351 664.63556 1.14591 1057.03017 1.45024 1053.66037
12 1998 5.02 132.7865140 666.58830 1.14512 1058.99067 1.44882 1055.30727
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1058.99 995.98
TOTAL RETURN 5.90% -0.40%
WITH DEATH BENEFIT CHARGE
ERV 1055.31 992.52
TOTAL RETURN 5.53% -0.75%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 4.96 125.2760009 621.36896 1000.00000 1000.00000
1 1998 4.99 125.8833889 628.15811 1.08333 1009.84278 1.37503 1009.55108
2 1998 4.97 126.4801330 628.60626 1.09400 1009.46924 1.38817 1008.88316
3 1998 4.97 127.0750652 631.56307 1.09359 1013.12395 1.38725 1012.24146
4 1998 4.96 127.6880052 633.33251 1.09755 1014.86484 1.39187 1013.68556
5 1998 4.97 128.2954502 637.62839 1.09944 1020.64921 1.39385 1019.16752
6 1998 4.97 128.8975868 640.62101 1.10570 1024.33378 1.40139 1022.54945
7 1998 4.97 129.5416611 643.82206 1.10969 1028.34246 1.40604 1026.25287
8 1998 4.99 130.1045071 649.22149 1.11404 1035.85266 1.41113 1033.44844
9 1998 5.08 130.6933741 663.92234 1.12217 1058.18614 1.42103 1055.42863
10 1998 5.06 131.2992908 664.37441 1.14637 1057.76030 1.45125 1054.69603
11 1998 5.04 131.8721351 664.63556 1.14591 1057.03017 1.45024 1053.66037
12 1998 5.02 132.7865140 666.58830 1.14512 1058.99067 1.44882 1055.30727
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 7.28%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1058.99 995.98
TOTAL RETURN 5.90% -0.40%
WITH DEATH BENEFIT CHARGE
ERV 1055.31 992.52
TOTAL RETURN 5.53% -0.75%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 5.06 111.4181142 563.77566 1000.00000 1000.00000
1 1996 5.07 111.9507643 567.59038 1.08333 1005.68304 1.37503 1005.39134
2 1996 4.99 112.4789462 561.26994 1.08949 993.39471 1.38245 992.81330
3 1996 4.94 113.0245749 558.34140 1.07618 987.13529 1.36515 986.26795
4 1996 4.90 113.5680892 556.48364 1.06940 982.78141 1.35615 981.63020
5 1996 4.87 114.1530250 555.92523 1.06468 980.73056 1.34977 979.29540
6 1996 4.89 114.6685311 560.72912 1.06246 988.14283 1.34656 986.41117
7 1996 4.88 115.2282291 562.31376 1.07049 989.86487 1.35635 987.84245
8 1996 4.86 115.8343146 562.95477 1.07235 989.92092 1.35832 987.61023
9 1996 4.89 116.3585397 568.99326 1.07241 999.46681 1.35800 996.84576
10 1996 4.94 116.9259031 577.61396 1.08276 1013.52678 1.37070 1010.57807
11 1996 4.97 117.5083638 584.01657 1.09799 1023.66331 1.38958 1020.39032
12 1996 4.93 118.0842702 582.15545 1.10897 1019.29218 1.40307 1015.73552
1 1997 4.92 118.6888930 583.94935 1.10423 1021.32887 1.39667 1017.46882
2 1997 4.91 119.2596496 585.56488 1.10644 1023.04799 1.39905 1018.88465
3 1997 4.86 119.8160434 582.30597 1.10830 1016.24601 1.40100 1011.81314
4 1997 4.88 120.4020518 587.56201 1.10093 1024.31797 1.39128 1019.55474
5 1997 4.89 121.0176386 591.77625 1.10968 1030.55513 1.40192 1025.46549
6 1997 4.91 121.5987021 597.04963 1.11643 1038.62207 1.41005 1033.19347
7 1997 4.96 122.2100673 606.16193 1.12517 1053.34858 1.42068 1047.54162
8 1997 4.92 122.8471414 604.40794 1.14113 1049.15947 1.44040 1043.07004
9 1997 4.95 123.4387487 611.02181 1.13659 1059.50354 1.43426 1053.04981
10 1997 4.96 124.0877897 615.47544 1.14780 1066.07828 1.44798 1059.27733
11 1997 4.95 124.6516623 617.02573 1.15492 1067.60866 1.45654 1060.48895
12 1997 4.96 125.2760009 621.36896 1.15658 1073.96697 1.45821 1066.49551
1 1998 4.99 125.8833889 628.15811 1.16346 1084.53779 1.46647 1076.68169
2 1998 4.97 126.4801330 628.60626 1.17492 1084.13662 1.48047 1075.96936
3 1998 4.97 127.0750652 631.56307 1.17448 1088.06165 1.47949 1079.55097
4 1998 4.96 127.6880052 633.33251 1.17873 1089.93131 1.48442 1081.09110
5 1998 4.97 128.2954502 637.62839 1.18076 1096.14354 1.48654 1086.93758
6 1998 4.97 128.8975868 640.62101 1.18749 1100.10064 1.49458 1090.54439
7 1998 4.97 129.5416611 643.82206 1.19178 1104.40584 1.49953 1094.49408
8 1998 4.99 130.1045071 649.22149 1.19644 1112.47153 1.50497 1102.16812
9 1998 5.08 130.6933741 663.92234 1.20518 1136.45695 1.51552 1125.60990
10 1998 5.06 131.2992908 664.37441 1.23116 1135.99962 1.54775 1124.82858
11 1998 5.04 131.8721351 664.63556 1.23067 1135.21548 1.54668 1123.72405
12 1998 5.02 132.7865140 666.58830 1.22982 1137.32100 1.54516 1125.48046
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.24%
GROSS ANNUAL RETURN = 5.74%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1137.32 1088.98
TOTAL RETURN 13.73% 8.90%
AVERAGE ANNUAL RETURN 4.38% 2.88%
WITH DEATH BENEFIT CHARGE
ERV 1125.48 1077.65
TOTAL RETURN 12.55% 7.76%
AVERAGE ANNUAL RETURN 4.02% 2.52%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 4.99 125.8833889 628.15811 1.28390 1196.80243 1.60890 1181.25452
2 1998 4.97 126.4801330 628.60626 1.29654 1196.35974 1.62426 1180.47301
3 1998 4.97 127.0750652 631.56307 1.29606 1200.69107 1.62319 1184.40248
4 1998 4.96 127.6880052 633.33251 1.30075 1202.75426 1.62859 1186.09219
5 1998 4.97 128.2954502 637.62839 1.30298 1209.60954 1.63092 1192.50652
6 1998 4.97 128.8975868 640.62101 1.31041 1213.97626 1.63974 1196.46364
7 1998 4.97 129.5416611 643.82206 1.31514 1218.72710 1.64518 1200.79694
8 1998 4.99 130.1045071 649.22149 1.32029 1227.62771 1.65114 1209.21633
9 1998 5.08 130.6933741 663.92234 1.32993 1254.09595 1.66271 1234.93489
10 1998 5.06 131.2992908 664.37441 1.35860 1253.59127 1.69808 1234.07769
11 1998 5.04 131.8721351 664.63556 1.35806 1252.72597 1.69690 1232.86588
12 1998 5.02 132.7865140 666.58830 1.35712 1255.04944 1.69523 1234.79288
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 33.32%
GROSS ANNUAL RETURN = 6.40%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1255.05 1223.05
TOTAL RETURN 25.50% 22.30%
AVERAGE ANNUAL RETURN 5.02% 4.44%
WITH DEATH BENEFIT CHARGE
ERV 1234.79 1203.31
TOTAL RETURN 23.48% 20.33%
AVERAGE ANNUAL RETURN 4.65% 4.07%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 4.99 125.8833889 628.15811 1.20538 1123.61413 1.51666 1113.53555
2 1998 4.97 126.4801330 628.60626 1.21725 1123.19850 1.53115 1112.79884
3 1998 4.97 127.0750652 631.56307 1.21680 1127.26496 1.53014 1116.50304
4 1998 4.96 127.6880052 633.33251 1.22120 1129.20198 1.53523 1118.09589
5 1998 4.97 128.2954502 637.62839 1.22330 1135.63804 1.53742 1124.14249
6 1998 4.97 128.8975868 640.62101 1.23027 1139.73772 1.54573 1127.87276
7 1998 4.97 129.5416611 643.82206 1.23472 1144.19803 1.55086 1131.95764
8 1998 4.99 130.1045071 649.22149 1.23955 1152.55434 1.55648 1139.89436
9 1998 5.08 130.6933741 663.92234 1.24860 1177.40396 1.56739 1164.13853
10 1998 5.06 131.2992908 664.37441 1.27552 1176.93015 1.60073 1163.33047
11 1998 5.04 131.8721351 664.63556 1.27501 1176.11776 1.59962 1162.18813
12 1998 5.02 132.7865140 666.58830 1.27413 1178.29914 1.59805 1164.00466
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 23.29%
GROSS ANNUAL RETURN = 6.02%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1178.30 1138.24
TOTAL RETURN 17.83% 13.82%
AVERAGE ANNUAL RETURN 4.68% 3.68%
WITH DEATH BENEFIT CHARGE
ERV 1164.00 1124.43
TOTAL RETURN 16.40% 12.44%
AVERAGE ANNUAL RETURN 4.33% 3.33%
T. Rowe Price New American Growth
12/1998
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
12/98 0.5000000000 22.05 2.357 106.317424
M and E Charge = 0.0010833
Death Benefit Charge = 0.0002917
<TABLE>
<CAPTION>
Return for YTD
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 1997 21.35 103.9600535 2219.54714 1000.00000 1000.00000
1 1998 21.33 103.9600535 2217.46794 1.08333 997.97990 1.37503 997.68820
2 1998 23.40 103.9600535 2432.66525 1.08114 1093.74912 1.37185 1093.13841
3 1998 24.99 103.9600535 2597.96174 1.18489 1166.88308 1.50310 1165.91266
4 1998 24.42 103.9600535 2538.70451 1.26412 1139.00338 1.60317 1137.71604
5 1998 23.35 103.9600535 2427.46725 1.23392 1087.86226 1.56440 1086.30086
6 1998 25.00 103.9600535 2599.00134 1.17852 1163.55624 1.49370 1161.56932
7 1998 23.94 103.9600535 2488.80368 1.26052 1112.96094 1.59720 1110.72158
8 1998 19.06 103.9600535 1981.47862 1.20571 884.88600 1.52728 882.78155
9 1998 19.79 103.9600535 2057.36946 0.95863 917.81860 1.21385 915.37832
10 1998 21.51 103.9600535 2236.18075 0.99430 996.59428 1.25868 993.67754
11 1998 22.57 103.9600535 2346.37841 1.07964 1044.62621 1.36634 1041.27904
12 1998 24.74 106.3174243 2630.29308 1.13168 1169.89559 1.43179 1165.84329
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.51%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1169.90 1100.29
TOTAL RETURN 16.99% 10.03%
WITH DEATH BENEFIT CHARGE
ERV 1165.84 1096.48
TOTAL RETURN 16.58% 9.65%
<TABLE>
<CAPTION>
Return for 1 Year
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 1997 21.35 103.9600535 2219.54714 1000.00000 1000.00000
1 1998 21.33 103.9600535 2217.46794 1.08333 997.97990 1.37503 997.68820
2 1998 23.40 103.9600535 2432.66525 1.08114 1093.74912 1.37185 1093.13841
3 1998 24.99 103.9600535 2597.96174 1.18489 1166.88308 1.50310 1165.91266
4 1998 24.42 103.9600535 2538.70451 1.26412 1139.00338 1.60317 1137.71604
5 1998 23.35 103.9600535 2427.46725 1.23392 1087.86226 1.56440 1086.30086
6 1998 25.00 103.9600535 2599.00134 1.17852 1163.55624 1.49370 1161.56932
7 1998 23.94 103.9600535 2488.80368 1.26052 1112.96094 1.59720 1110.72158
8 1998 19.06 103.9600535 1981.47862 1.20571 884.88600 1.52728 882.78155
9 1998 19.79 103.9600535 2057.36946 0.95863 917.81860 1.21385 915.37832
10 1998 21.51 103.9600535 2236.18075 0.99430 996.59428 1.25868 993.67754
11 1998 22.57 103.9600535 2346.37841 1.07964 1044.62621 1.36634 1041.27904
12 1998 24.74 106.3174243 2630.29308 1.13168 1169.89559 1.43179 1165.84329
</TABLE>
SURRENDER CHARGE = 7.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 18.51%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1169.90 1100.29
TOTAL RETURN 16.99% 10.03%
WITH DEATH BENEFIT CHARGE
ERV 1165.84 1096.48
TOTAL RETURN 16.58% 9.65%
<TABLE>
<CAPTION>
Return for 3 Years
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 1995 15.23 100.1939864 1525.95441 1000.00000 1000.00000
1 1996 15.14 102.8873732 1557.71483 1.08333 1019.73014 1.37503 1019.43844
2 1996 15.59 102.8873732 1604.01415 1.10471 1048.93446 1.40176 1048.33703
3 1996 16.19 102.8873732 1665.74657 1.13635 1088.16762 1.44150 1087.24205
4 1996 16.47 102.8873732 1694.55504 1.17885 1105.80823 1.49499 1104.55050
5 1996 16.82 102.8873732 1730.56562 1.19796 1128.10953 1.51879 1126.50425
6 1996 16.84 102.8873732 1732.62336 1.22212 1128.22880 1.54898 1126.29475
7 1996 15.65 102.8873732 1610.18739 1.22225 1047.28017 1.54869 1045.15634
8 1996 16.45 102.8873732 1692.49729 1.13455 1099.68071 1.43712 1097.14574
9 1996 17.38 102.8873732 1788.18255 1.19132 1160.65979 1.50861 1157.66421
10 1996 17.27 102.8873732 1776.86493 1.25738 1152.05646 1.59183 1148.74540
11 1996 17.98 102.8873732 1849.91497 1.24806 1198.17146 1.57956 1194.39277
12 1996 17.67 103.7090635 1832.53915 1.29802 1185.61929 1.64233 1181.53179
1 1997 17.99 103.7090635 1865.72605 1.28442 1205.80619 1.62465 1201.30444
2 1997 17.91 103.7090635 1857.42933 1.30629 1199.13778 1.65183 1194.31051
3 1997 16.90 103.7090635 1752.68317 1.29907 1130.21565 1.64222 1125.31745
4 1997 17.05 103.7090635 1768.23953 1.22440 1139.02275 1.54735 1133.75812
5 1997 18.33 103.7090635 1900.98713 1.23394 1223.29902 1.55896 1217.31415
6 1997 19.25 103.7090635 1996.39947 1.32524 1283.37231 1.67385 1276.73844
7 1997 20.25 103.7090635 2100.10854 1.39032 1348.65068 1.75556 1341.30696
8 1997 19.82 103.7090635 2055.51364 1.46104 1318.55163 1.84434 1310.98055
9 1997 21.23 103.7090635 2201.74342 1.42843 1410.92531 1.80264 1402.44140
10 1997 20.61 103.7090635 2137.44380 1.52850 1368.19220 1.92840 1359.55616
11 1997 20.82 103.7090635 2159.22270 1.48221 1380.65082 1.86943 1371.53956
12 1997 21.35 103.9600535 2219.54714 1.49571 1417.72779 1.88591 1407.97176
1 1998 21.33 103.9600535 2217.46794 1.53587 1414.86383 1.93601 1404.71681
2 1998 23.40 103.9600535 2432.66525 1.53277 1550.63852 1.93153 1539.10801
3 1998 24.99 103.9600535 2597.96174 1.67986 1654.32256 2.11632 1641.57210
4 1998 24.42 103.9600535 2538.70451 1.79218 1614.79673 2.25722 1601.87206
5 1998 23.35 103.9600535 2427.46725 1.74936 1542.29256 2.20263 1529.48094
6 1998 25.00 103.9600535 2599.00134 1.67082 1649.60601 2.10309 1635.45680
7 1998 23.94 103.9600535 2488.80368 1.78707 1577.87564 2.24881 1563.86463
8 1998 19.06 103.9600535 1981.47862 1.70937 1254.52747 2.15037 1242.93150
9 1998 19.79 103.9600535 2057.36946 1.35907 1301.21693 1.70907 1288.82683
10 1998 21.51 103.9600535 2236.18075 1.40965 1412.89940 1.77218 1399.06992
11 1998 22.57 103.9600535 2346.37841 1.53064 1480.99560 1.92377 1466.09148
12 1998 24.74 106.3174243 2630.29308 1.60441 1658.59348 2.01592 1641.47443
</TABLE>
SURRENDER CHARGE = 5.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 72.37%
GROSS ANNUAL RETURN = 19.90%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 1658.59 1588.10
TOTAL RETURN 65.86% 58.81%
AVERAGE ANNUAL RETURN 18.37% 16.67%
WITH DEATH BENEFIT CHARGE
ERV 1641.47 1571.71
TOTAL RETURN 64.15% 57.17%
AVERAGE ANNUAL RETURN 17.96% 16.27%
<TABLE>
<CAPTION>
Return for Inception
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>
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
1 1998 21.33 103.9600535 2217.46794 2.29194 2111.36197 2.87173 2083.65099
2 1998 23.40 103.9600535 2432.66525 2.28731 2313.97476 2.86509 2282.99676
3 1998 24.99 103.9600535 2597.96174 2.50681 2468.69958 3.13920 2434.98426
4 1998 24.42 103.9600535 2538.70451 2.67442 2409.71628 3.34818 2376.09622
5 1998 23.35 103.9600535 2427.46725 2.61053 2301.52031 3.26721 2268.71668
6 1998 25.00 103.9600535 2599.00134 2.49331 2461.66120 3.11956 2425.91329
7 1998 23.94 103.9600535 2488.80368 2.66680 2354.61996 3.33571 2319.71886
8 1998 19.06 103.9600535 1981.47862 2.55084 1872.09647 3.18969 1843.67085
9 1998 19.79 103.9600535 2057.36946 2.02810 1941.76985 2.53511 1911.74853
10 1998 21.51 103.9600535 2236.18075 2.10358 2108.43050 2.62872 2075.27481
11 1998 22.57 103.9600535 2346.37841 2.28413 2210.04857 2.85357 2174.68955
12 1998 24.74 106.3174243 2630.29308 2.39422 2475.07294 2.99027 2434.83939
</TABLE>
SURRENDER CHARGE = 3.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 163.03%
GROSS ANNUAL RETURN = 22.56%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2475.07 2411.96
TOTAL RETURN 147.51% 141.20%
AVERAGE ANNUAL RETURN 21.00% 20.35%
WITH DEATH BENEFIT CHARGE
ERV 2434.84 2372.75
TOTAL RETURN 143.48% 137.28%
AVERAGE ANNUAL RETURN 20.59% 19.93%
<TABLE>
<CAPTION>
Return for Product Inception
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>
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
1 1998 21.33 103.9600535 2217.46794 1.86255 1715.80208 2.34382 1700.61109
2 1998 23.40 103.9600535 2432.66525 1.85879 1880.45574 2.33840 1863.31089
3 1998 24.99 103.9600535 2597.96174 2.03716 2006.19313 2.56211 1987.35837
4 1998 24.42 103.9600535 2538.70451 2.17338 1958.26025 2.73268 1939.29578
5 1998 23.35 103.9600535 2427.46725 2.12145 1870.33460 2.66660 1851.65595
6 1998 25.00 103.9600535 2599.00134 2.02620 2000.47338 2.54609 1979.95492
7 1998 23.94 103.9600535 2488.80368 2.16718 1913.48613 2.72250 1893.28233
8 1998 19.06 103.9600535 1981.47862 2.07294 1521.36255 2.60333 1504.74677
9 1998 19.79 103.9600535 2057.36946 1.64814 1577.98275 2.06908 1560.30965
10 1998 21.51 103.9600535 2236.18075 1.70948 1713.41982 2.14548 1693.77471
11 1998 22.57 103.9600535 2346.37841 1.85620 1795.99993 2.32900 1774.91392
12 1998 24.74 106.3174243 2630.29308 1.94567 2011.37246 2.44057 1987.24012
</TABLE>
SURRENDER CHARGE = 4.00%
FREE WITHDRAWAL AVAILABLE = 15.00% OF PRINCIPAL + 15.00% OF INTEREST
GROSS RETURN = 110.35%
GROSS ANNUAL RETURN = 23.06%
WITHOUT WITH
SURRENDER SURRENDER
CHARGE CHARGE
WITHOUT DEATH BENEFIT CHARGE
ERV 2011.37 1942.99
TOTAL RETURN 101.14% 94.30%
AVERAGE ANNUAL RETURN 21.53% 20.36%
WITH DEATH BENEFIT CHARGE
ERV 1987.24 1919.67
TOTAL RETURN 98.72% 91.97%
AVERAGE ANNUAL RETURN 21.12% 19.96%
Exhibit (14): Powers of Attorney
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Tommie D. Thompson, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Tommie D. Thompson
Tommie D. Thompson
Executive Vice President and Comptroller
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Samuel L. Foggie Sr., whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Samuel L. Foggie Sr.
Samuel L. Foggie Sr.
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Carol B. Hallett, whose signature appears below, constitutes and appoints Thomas
J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s) as
Thomas J. McCusker may designate in writing directed to the Secretary of United
of Omaha Life Insurance Company, and each of them, as her attorney-in-fact, each
with the power of substitution, for her in any and all capacities, to sign any
registration statements and amendments thereto and similar documents for United
of Omaha Life Insurance Company variable annuity and variable life insurance
products, and to file the same, with exhibits thereto and other documents in
connection therewith, with the Securities and Exchange Commission and necessary
regulatory authorities of any State, hereby ratifying and confirming all that
each of said attorneys-in-fact may do or cause to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Carol B. Hallett
Carol B. Hallett
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Jeffrey M. Heller, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Jeffrey M. Heller
Jeffrey M. Heller
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Thomas W. Osborne, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Thomas W. Osborne
Thomas W. Osborne
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Hugh V. Plunkett III, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Hugh V. Plunkett III
Hugh V. Plunkett III
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Richard J. Sampson, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Richard J. Sampson
Richard J. Sampson
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Oscar S. Straus II, whose signature appears below, constitutes and appoints
Thomas J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s)
as Thomas J. McCusker may designate in writing directed to the Secretary of
United of Omaha Life Insurance Company, and each of them, as his
attorney-in-fact, each with the power of substitution, for him in any and all
capacities, to sign any registration statements and amendments thereto and
similar documents for United of Omaha Life Insurance Company variable annuity
and variable life insurance products, and to file the same, with exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission and necessary regulatory authorities of any State, hereby
ratifying and confirming all that each of said attorneys-in-fact may do or cause
to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Oscar S. Straus II
Oscar S. Straus II
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
John A. Sturgeon, whose signature appears below, constitutes and appoints Thomas
J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s) as
Thomas J. McCusker may designate in writing directed to the Secretary of United
of Omaha Life Insurance Company, and each of them, as his attorney-in-fact, each
with the power of substitution, for him in any and all capacities, to sign any
registration statements and amendments thereto and similar documents for United
of Omaha Life Insurance Company variable annuity and variable life insurance
products, and to file the same, with exhibits thereto and other documents in
connection therewith, with the Securities and Exchange Commission and necessary
regulatory authorities of any State, hereby ratifying and confirming all that
each of said attorneys-in-fact may do or cause to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / John A. Sturgeon
John A. Sturgeon
Director, President and Chief Operating
Officer
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
Michael A. Wayne, whose signature appears below, constitutes and appoints Thomas
J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s) as
Thomas J. McCusker may designate in writing directed to the Secretary of United
of Omaha Life Insurance Company, and each of them, as his attorney-in-fact, each
with the power of substitution, for him in any and all capacities, to sign any
registration statements and amendments thereto and similar documents for United
of Omaha Life Insurance Company variable annuity and variable life insurance
products, and to file the same, with exhibits thereto and other documents in
connection therewith, with the Securities and Exchange Commission and necessary
regulatory authorities of any State, hereby ratifying and confirming all that
each of said attorneys-in-fact may do or cause to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / Michael A. Wayne
Michael A. Wayne
Director
<PAGE>
Power of Attorney
With Respect To
United of Omaha Life Insurance Company
Variable Annuity and Variable Life Insurance Products
John W. Weekly, whose signature appears below, constitutes and appoints Thomas
J. McCusker, Lawrence F. Harr or Kenneth W. Reitz, and any such person(s) as
Thomas J. McCusker may designate in writing directed to the Secretary of United
of Omaha Life Insurance Company, and each of them, as his attorney-in-fact, each
with the power of substitution, for him in any and all capacities, to sign any
registration statements and amendments thereto and similar documents for United
of Omaha Life Insurance Company variable annuity and variable life insurance
products, and to file the same, with exhibits thereto and other documents in
connection therewith, with the Securities and Exchange Commission and necessary
regulatory authorities of any State, hereby ratifying and confirming all that
each of said attorneys-in-fact may do or cause to be done by virtue hereof.
This Power of Attorney is effective January 1, 1999 and remains in effect until
revoked or revised.
/ S / John W. Weekly
John W. Weekly
Director
