<PAGE>
T. ROWE PRICE
- --------------------------------------------------------------------------------
NO-LOAD IMMEDIATE VARIABLE ANNUITY
AN INDIVIDUAL SINGLE PREMIUM IMMEDIATE VARIABLE ANNUITY CONTRACT
Supplement Dated August 4, 1999, to Prospectus Dated May 1, 1999
- --------------------------------------------------------------------------------
ISSUED BY: MAILING ADDRESS:
Security Benefit T. Rowe Price Variable
Life Insurance Company Annuity Service Center
700 SW Harrison Street P.O. Box 750440
Topeka, Kansas 66636-0001 Topeka, Kansas 66675-0440
1-800-888-2461 1-800-469-6587
The following information is added as the fifth sentence under the Section
"Annuity Payments" on page 26 and as the second sentence under the Section
"Assumed Interest Rate" on page 28:
Only an assumed interest rate of 3.5% is available under Option 9.
The Section "Option 4 - Joint and Last Survivor" on page 24 is deleted in its
entirety and replaced with the following:
OPTION 4 - JOINT AND SURVIVOR Periodic Annuity Payments will be made during
the lifetime of the Annuitants. Annuity Payments will be made as long as
either Annuitant is living. Upon the death of one Annuitant, Annuity
Payments continue to the surviving Annuitant at the same or a reduced level
of 75%, 66 2/3% or 50% of Annuity Payments as elected by the Owner at the
time the Annuity Option is selected. (FOR A CONTRACT ISSUED IN CONNECTION
WITH A QUALIFIED PLAN, PERIODIC ANNUITY PAYMENTS WILL BE MADE DURING THE
LIFE OF THE PARTICIPANT UNDER THE PLAN. UPON THE DEATH OF THE PARTICIPANT,
PAYMENTS WILL BE MADE TO THE JOINT ANNUITANT DURING HIS OR HER LIFE.
ANNUITY PAYMENTS WILL BE REDUCED BY THE SELECTED PERCENTAGE, IF ANY, ONLY
UPON THE DEATH OF THE PARTICIPANT.)
With respect to fixed Annuity Payments, the amount of the Annuity Payment
and, with respect to variable Annuity Payments, the number of Payment Units
used to determine the Annuity Payment is reduced, if applicable, as of the
first Annuity Payment following an Annuitant's (for Qualified Plans, the
participant's) death. In the event of the death of one Annuitant, the
surviving Joint Annuitant has the right to exercise all rights under the
Contract, including the right to make exchanges. It is possible under this
Option for only one Annuity Payment to be made if both Annuitants died
prior to the second Annuity Payment due date, two if both died prior to the
third Annuity Payment due date, etc. AS IN THE CASE OF OPTION 1, THERE IS
NO MINIMUM NUMBER OF PAYMENTS GUARANTEED UNDER THIS OPTION. PAYMENTS CEASE
UPON THE DEATH OF THE LAST SURVIVING ANNUITANT, REGARDLESS OF THE NUMBER OF
PAYMENTS RECEIVED.
The first two paragraphs under the Section "Option 9 - Life Income with
Liquidity" on page 25 are deleted in their entirety and replaced with the
following:
Monthly Annuity Payments will be made for the life of the Annuitant, or the
Owner may elect Annuity Payments for the life of the Annuitant and a Joint
Annuitant, and in both cases with a period certain of 15 years. The period
certain will be for a period of 10 years in the case of a Contract issued
in connection with a Qualified Plan if the life expectancy of the Annuitant
or joint life expectancy of the Joint Annuitants is less than 15 years, but
more than 10 years. In any case, the period certain may not exceed the life
expectancy of the Annuitant or joint life expectancy of the Joint
Annuitants if the Contract is issued in connection with a Qualified Plan.
Annuity Payments under this option are guaranteed never to be less than the
Floor Payment which is equal to 80% of the initial Annuity Payment;
provided that the Floor Payment is adjusted in the event of a withdrawal as
discussed under "Full and Partial Withdrawals," page 22. The amount of the
Annuity Payment will remain level for 12 month intervals and will reset on
each anniversary of the Annuity Payout Date. Annuity Payments during the
Liquidity Period are paid from Account Value and reduce the amount of
Account Value available for withdrawal. If Account Value allocated to a
Subaccount is depleted during the Liquidity Period, any shortfall will be
deducted proportionately from those Subaccounts that have Account Value,
and future annuity payments will be based upon the performance of those
Subaccounts.
If there are Joint Annuitants, Annuity Payments will be made as long as
either Annuitant is living. Upon the death of one Annuitant, Annuity
Payments continue to the surviving Annuitant at the same or a reduced level
of 75%, 66 2/3% or 50% of Annuity Payments as elected by the Owner at the
time the Annuity Option is selected. (FOR A CONTRACT ISSUED IN CONNECTION
WITH A QUALIFIED PLAN, PERIODIC ANNUITY PAYMENTS WILL BE MADE DURING THE
LIFE OF THE PARTICIPANT UNDER THE PLAN. UPON THE DEATH OF THE PARTICIPANT,
PAYMENTS WILL BE MADE TO THE JOINT ANNUITANT DURING HIS OR HER LIFE.
ANNUITY PAYMENTS WILL BE REDUCED BY THE SELECTED PERCENTAGE, IF ANY, ONLY
UPON THE DEATH OF THE PARTICIPANT.) The number of Payment Units used to
calculate Annuity Payments is reduced (1) as of the Annuity Payment due at
the close of the period certain, or (2) if later, as of the first Annuity
Payment following the death of the Annuitant.
