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OPTIONS VL
PROVIDENTMUTUAL LIFE AND ANNUITY COMPANY OF AMERICA
PROVIDENTMUTUAL VARIABLE LIFE SEPARATE ACCOUNT
SUPPLEMENT DATED OCTOBER 31, 2000
TO
PROSPECTUS DATED MAY 1, 2000
This supplement describes certain changes to your variable life
insurance policy (the "Policy") issued by Providentmutual Life and Annuity
Company of America ("PLACA"). THIS SUPPLEMENT SHOULD BE RETAINED WITH THE
PROSPECTUS FOR FUTURE REFERENCE.
Please replace the fourth paragraph on page 27 of your prospectus under
"Loan Privileges" in the DETAILED DESCRIPTION OF POLICY PROVISIONS section with
the following:
Interest Credited to Loan Account. As long as the Policy is in force,
PLACA credits the amount in the Loan Account with interest at effective annual
rates PLACA determines, but not less than 4% or such higher minimum rate
required under state law. The rate will apply to the calendar year which follows
the date of determination. Loan interest credited is transferred to the
Subaccounts or the Guaranteed Account: (a) when loan interest is added to the
loaned amount; (b) when a loan repayment is made; and (c) when a new loan is
made. PLACA currently credits 4% interest annually to the amount in the Loan
Account until the policy's 10th anniversary or until Attained Age 60, whichever
is later, and 5.75% annually thereafter. The tax consequences of a Policy loan
after the later of a Policy's 10th anniversary or Attained Age 60 are less
clear. Owners should consult a tax adviser with respect to these consequences.
