<PAGE>
SELECT 50 PORTFOLIO
THE ENDEAVOR VARIABLE ANNUITY
ISSUED BY
AUSA LIFE INSURANCE COMPANY, INC.
Supplement Dated January 28, 1998
To The
Prospectus Dated May 1, 1997
The Select 50 Portfolio has been added as an additional investment option
under the Endeavor Variable Annuity. This prospectus supplement provides very
limited information about this new investment option. A separate prospectus
that accompanies this supplement provides more complete information about the
Select 50 Portfolio. The information in this supplement is qualified in its
entirety by the additional information in the prospectus for the Select 50
Portfolio and by the information in the prospectus for the Endeavor Variable
Annuity.
The Select 50 Portfolio seeks capital appreciation by investing at least
65% of its total assets in at least 50 different equity securities of companies
of all sizes throughout the world. Each of five teams from different investment
management disciplines of the Portfolio's Adviser selects ten equity securities
based on the potential for capital appreciation. THERE IS NO ASSURANCE THAT THE
PORTFOLIO WILL ACHIEVE ITS OBJECTIVE. Read the Portfolio's prospectus carefully
before investing.
The table on the following page summarizes the charges and deductions that
may be applicable to an investment in the Select 50 Portfolio through the Mutual
Fund Account of the Endeavor Variable Annuity. These charges and deductions are
explained in the prospectus for the Endeavor Variable Annuity and the prospectus
for the Select 50 Portfolio. This table does not include any premium taxes that
may be applicable.
THIS PROSPECTUS SUPPLEMENT MUST BE ACCOMPANIED
BY THE
PROSPECTUS FOR THE ENDEAVOR VARIABLE ANNUITY DATED MAY 1, 1997
AND BY THE
PROSPECTUS FOR THE SELECT 50 PORTFOLIO DATED JANUARY 28, 1998
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FEE TABLE
<TABLE>
<CAPTION>
MUTUAL FUND
POLICY OWNER TRANSACTION EXPENSES /(1)/ ACCOUNT ANNUAL
EXPENSES
(AS A PERCENTAGE
OF ACCOUNT VALUE)
<S> <C> <C> <C>
Sales Load On Purchase Mortality and
Payments 0 Expense Risk
Fees /(3)/ 1.40%
Maximum Surrender Charge Administrative
(as a % of Premium Charge 0.15%
Payments Surrendered) /(2)/ 7% -----
Surrender Fees 0 TOTAL MUTUAL FUND
ACCOUNT EXPENSES 1.55%
Annual Service Charge /(1)/ $35
Transfer Fee /(1)/
Currently No Fee
</TABLE>
SELECT 50 PORTFOLIO ANNUAL EXPENSES
(as a percentage of average net assets and after expense reimbursements)
<TABLE>
<CAPTION>
Management Other Rule 12b-1 Total Portfolio
Fees Expenses Fees Annual Expenses
---------- --------------- ---------- ---------------
<S> <C> <C> <C> <C>
ENDEAVOR SERIES TRUST
Select 50 /(4)/ 1.10% 0.40% - 1.50%
</TABLE>
/(1)/ The Surrender Charge and Transfer Fee, if any is imposed, apply to each
Policy, regardless of how the Annuity Purchase Value is allocated among
the Mutual Fund Account and the Fixed Account. The Service Charge applies
to both the Fixed Account and the Mutual Fund Account, and is assessed on
a prorata basis relative to each Account's Annuity Purchase Value as a
percentage of the Policy's total Annuity Purchase Value. The Service
Charge is deducted on each Policy Anniversary. (See ''CHARGES AND
DEDUCTIONS--Other Expenses Including Investment Advisory Fees,'' p. 54.)
/(2)/ The Surrender Charge is decreased based on the number of years since the
premium payment date in which the withdrawal is made, from 7% in the first
year in which the Premium Payment was made to 0% in the eighth year after
the Premium Payment was made.
/(3)/ The Mortality and Expense Risk Fees shown are for the Annual Step-Up Death
Benefit and apply only during the first seven Policy Years. After the
seventh Policy Year this charge is 1.25%. The corresponding Fee for the
Return of Premium Death Benefit is 1.25% for each Subaccount during the
first seven Policy Years and 1.10% thereafter. The Administrative Charge
may be increased in the future. (See ''DISTRIBUTIONS UNDER THE POLICY--
Death Benefit,'' p. 48.) In no event will the Mortality and Expense Risk
Fee and Administrative Charge exceed 1.40% on or after the Annuity
Commencement Date, regardless of the Death Benefit that was in effect
prior to commencement of Annuity Payments.
/(4)/ The Select 50 Portfolio is expected to commence operations on or about the
date of this Prospectus. The expenses shown are annualized estimates of
expenses for 1998. The Manager has agreed to limit the Portfolio's total
operating expenses for the first year of operations to an annual rate of
1.50% of the Portfolio's average daily net assets.
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EXPENSE EXAMPLES: SELECT 50 PORTFOLIO
I. An Owner would pay the following expenses on a $1,000 investment,
assuming Return of Premium Death Benefit, a hypothetical 5% annual return on
assets (a 1.10% Mortality and Expense Risk Fee), and assuming the entire Annuity
Purchase Value is in the Select 50 Subaccount:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
1. If the Policy is surrendered at the
end of the applicable time period: $100 $136 $182 $323
2. If the Policy is annuitized at the
end of the applicable time period: $ 30 $ 92 $156 $323
3. If the Policy is not surrendered or
annuitized: $ 30 $ 92 $156 $323
</TABLE>
II. An Owner would pay the following expenses on a $1,000 investment,
assuming a 5% Annually Compounding Death Benefit or Annual Step-Up Death
Benefit, a hypothetical 5% annual return on assets (a 1.25% Mortality and
Expense Risk Fee), and assuming the entire Annuity Purchase Value is in the
Select 50 Subaccount:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
1. If the Policy is surrendered at the
end of the applicable time period: $101 $141 $190 $337
2. If the Policy is annuitized at the
end of the applicable time period: $ 31 $ 96 $163 $337
3. If the Policy is not surrendered or
annuitized: $ 31 $ 96 $163 $337
</TABLE>
The above tables are intended to assist the Owner in understanding the costs
and expenses that will be borne, directly or indirectly. These include the
expenses of the Select 50 Portfolio. (See "CHARGES AND DEDUCTIONS," p. 51.) In
addition to the expenses listed above, premium taxes may be applicable.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES, AND ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN. THE
ASSUMED 5% ANNUAL RETURN IS HYPOTHETICAL AND SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE ANNUAL RETURNS, WHICH COULD BE GREATER OR LESS
THAN THE ASSUMED RATE. The figures and data for the Select 50 Portfolio annual
expenses have been provided by Endeavor Investment Advisers, and while PFL does
not dispute these figures, PFL has not independently verified their accuracy.
In these examples, the $35 Annual Service Charge is reflected as a charge of
.0583% based on average Annuity Purchase Value of $60,083. Normally, the $35
Service Charge would be waived if the Premium Payment(s) less partial
withdrawals is at least $50,000 on a Policy Anniversary. However, it was
included in these examples for illustrative purposes.
