[Version A]
PHL VARIABLE INSURANCE COMPANY
PHL VARIABLE ACCUMULATION ACCOUNT
THE BIG EDGE CHOICE(R)
SUPPLEMENT DATED JUNE 5, 2000 TO PROSPECTUS DATED MAY 1, 2000
The information contained in this supplement updates your prospectus.
================================================================================
THE FOLLOWING INVESTMENT OPTIONS ARE ADDED TO THE FIRST PAGE OF YOUR PROSPECTUS:
<TABLE>
<CAPTION>
The Alger American Fund Fidelity(R) Variable Insurance Products
----------------------- ---------------------------------------
<S> <C>
MANAGED BY FRED ALGER MANAGEMENT, INC. MANAGED BY FIDELITY MANAGEMENT AND RESEARCH COMPANY
[diamond] Alger American Leveraged AllCap Portfolio [diamond] VIP Contrafund(R) Portfolio
[diamond] VIP Growth Opportunities Portfolio
[diamond] VIP Growth Portfolio
</TABLE>
These funds are not yet available to California residents and are pending
California state approval.
================================================================================
IN THE "SPECIAL TERMS" SECTION OF YOUR PROSPECTUS THE 'FUNDS' ENTRY IS REPLACED
BY THE FOLLOWING:
FUNDS: The Phoenix Edge Series Fund, The Alger American Fund, Deutsche Asset
Management VIT Funds, Federated Insurance Series, Fidelity(R) Variable Insurance
Products, Franklin Templeton Variable Insurance Products Trust, The Universal
Institutional Funds, Inc., and Wanger Advisors Trust.
================================================================================
THE FOLLOWING IS ADDED TO THE INFORMATION IN THE "SUMMARY OF EXPENSES" SECTION
IN THE PROSPECTUS:
<TABLE>
FUND ANNUAL EXPENSES (AS A PERCENTAGE OF FUND AVERAGE NET ASSETS)
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
OTHER EXPENSES TOTAL EXPENSES TOTAL EXPENSES
SERIES MANAGEMENT RULE 12b-1 BEFORE BEFORE AFTER
FEES FEES REIMBURSEMENT REIMBURSEMENT REIMBURSEMENT
----------------------------------------------------------------------------------------------------------------------------
THE ALGER AMERICAN FUND
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio .85% N/A .08%(7) .93% .93%
FIDELITY(R) VARIABLE INSURANCE PRODUCTS
----------------------------------------------------------------------------------------------------------------------------
VIP Contrafund(R) Portfolio(8) .58% .10% .10% .78% .75%(10)
VIP Growth Opportunities Portfolio(9) .58% .10% .11% .79% .78%(10)
VIP Growth Portfolio(9) .58% .10% .09% .77% .75%(10)
</TABLE>
7 Included in "Other Expenses" is 0.01% of interest expense.
8 Effective November 3, 1997, the advisor has voluntarily agreed to reimburse
the fund to the extent that total operating expenses (excluding interest,
taxes, certain securities lending costs, brokerage commissions, and
extraordinary expenses), as a percentage of its average net assets, exceed
1.10%. This arrangement can be discontinued at any time.
9 Effective November 3, 1997, the advisor has voluntarily agreed to reimburse
the fund to the extent that total operating expenses (excluding interest,
taxes, certain securities lending costs, brokerage commissions, and
extraordinary expenses), as a percentage of its average net assets, exceed
1.60%. This arrangement can be discontinued at any time.
10 A portion of the brokerage commissions that the fund pays is used to reduce
the fund's expenses. In addition, through arrangements with the fund's
custodian, credits realized as a result of uninvested cash balances are used
to reduce custodian expenses.
TF 594 Page 1 of 3
<PAGE>
ADDITIONAL INFORMATION FOR "SUMMARY OF EXPENSES," CONTINUED:
It is impossible to show you what expenses you would incur if you purchased a
contract because there are so many different factors which affect expenses.
However, the following tables are meant to help demonstrate how certain
decisions or choices by you could result in different levels of expense.
EXAMPLES:
If you surrender your contract at the end of the applicable period, you would
pay the following expenses on a $1,000 investment assuming 5% annual return on
assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio................... $90 $125 N/A N/A
VIP Contrafund(R) Portfolio................................. 88 121 N/A N/A
VIP Growth Opportunity Portfolio............................ 88 121 N/A N/A
VIP Growth Portfolio........................................ 88 121 N/A N/A
</TABLE>
If you annuitize your contract at the end of the applicable period, you would
pay the following expenses on a $1,000 investment assuming 5% annual return on
assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio................... $90 $125 N/A N/A
VIP Contrafund(R) Portfolio................................. 88 121 N/A N/A
VIP Growth Opportunity Portfolio............................ 88 121 N/A N/A
VIP Growth Portfolio........................................ 88 121 N/A N/A
</TABLE>
If you do not surrender your contract, you would pay the following expenses on a
$1,000 investment assuming 5% annual return on assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio................... $25 $77 N/A N/A
VIP Contrafund(R) Portfolio................................. 23 72 N/A N/A
VIP Growth Opportunity Portfolio............................ 23 72 N/A N/A
VIP Growth Portfolio........................................ 24 73 N/A N/A
</TABLE>
================================================================================
THE FOLLOWING ARE ADDITIONS TO THE SECTION TITLED "INVESTMENTS OF THE ACCOUNT"
IN YOUR PROSPECTUS:
THE ALGER AMERICAN FUND
A certain subaccount invests in a corresponding portfolio of The Alger American
Fund. The following portfolio is currently available:
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO: The investment objective of the
portfolio is long-term capital appreciation. It invests primarily in equity
securities, such as common or preferred stocks, which are listed on U.S.
exchanges or in the over-the-counter market. The portfolio invests primarily in
"growth" stocks. Under normal circumstances, the portfolio invests in the equity
securities of companies of any size, which demonstrate promising growth
potential. The portfolio can leverage, that is, borrow money, up to one-third of
its total assets to buy additional securities.
TF 594 Page 2 of 3
<PAGE>
FIDELITY(R) VARIABLE INSURANCE PRODUCTS
Certain subaccounts invest in a corresponding portfolio of the Fidelity(R)
Variable Insurance Products. The following portfolios are currently available:
VIP CONTRAFUND(R) PORTFOLIO: The investment objective of the portfolio is to
seek long-term capital appreciation. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Investing in securities of companies whose value it believes is not fully
recognized by the public.
o Investing in domestic and foreign issuers.
o Investing in either "growth" stocks or "value" stocks or both.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
VIP GROWTH OPPORTUNITIES PORTFOLIO: The investment objective of the portfolio is
to seek to provide capital growth. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Potentially investing in other types of securities, including bonds which
may be lower-quality debt securities.
o Investing in domestic and foreign issuers.
o Investing in either "growth" stocks or "value" stocks or both.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
VIP GROWTH PORTFOLIO: The investment objective of the portfolio is to seek to
achieve capital appreciation. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Investing in companies that it believes have above-average growth
potential.
o Investing in securities of domestic and foreign issuers.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
================================================================================
THE FOLLOWING ADVISORS AND THEIR INVESTMENT OPTIONS ARE ADDED TO THE "INVESTMENT
ADVISORS" SECTION IN YOUR PROSPECTUS:
<TABLE>
<S> <C>
[diamond] Fred Alger Management, Inc. [diamond] Fidelity Management & Research Company
o Alger American Leveraged AllCap Portfolio o VIP Contrafund(R) Portfolio
o VIP Growth Opportunities Portfolio
o VIP Growth Portfolio
</TABLE>
================================================================================
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
TF 594 Page 3 of 3
<PAGE>
[Version B]
PHL VARIABLE INSURANCE COMPANY
PHL VARIABLE ACCUMULATION ACCOUNT
THE PHOENIX EDGE(R) - VA
SUPPLEMENT DATED JUNE 5, 2000 TO PROSPECTUS DATED MAY 1, 2000
The information contained in this supplement updates your prospectus.
================================================================================
THE FOLLOWING INVESTMENT OPTIONS ARE ADDED TO THE FIRST PAGE OF YOUR PROSPECTUS:
<TABLE>
<CAPTION>
The Alger American Fund FIDELITY(R) VARIABLE INSURANCE PRODUCTS
----------------------- ---------------------------------------
<S> <C>
MANAGED BY FRED ALGER MANAGEMENT, INC. MANAGED BY FIDELITY MANAGEMENT AND RESEARCH COMPANY
[diamond] Alger American Leveraged AllCap Portfolio [diamond] VIP Contrafund(R) Portfolio
[diamond] VIP Growth Opportunities Portfolio
[diamond] VIP Growth Portfolio
</TABLE>
These funds are not yet available to California residents and are pending
California state approval.
================================================================================
IN THE "SPECIAL TERMS" SECTION OF YOUR PROSPECTUS THE 'FUNDS' ENTRY IS REPLACED
BY THE FOLLOWING:
FUNDS: The Phoenix Edge Series Fund, The Alger American Fund, Deutsche Asset
Management VIT Funds, Federated Insurance Series, Fidelity(R) Variable Insurance
Products, Franklin Templeton Variable Insurance Products Trust, The Universal
Institutional Funds, Inc., and Wanger Advisors Trust.
================================================================================
THE FOLLOWING IS ADDED TO THE INFORMATION IN THE "SUMMARY OF EXPENSES" SECTION
IN THE PROSPECTUS:
<TABLE>
FUND ANNUAL EXPENSES (AS A PERCENTAGE OF FUND AVERAGE NET ASSETS)
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
OTHER EXPENSES TOTAL EXPENSES TOTAL EXPENSES
SERIES MANAGEMENT RULE 12b-1 BEFORE BEFORE AFTER
FEES FEES REIMBURSEMENT REIMBURSEMENT REIMBURSEMENT
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
THE ALGER AMERICAN FUND
-----------------------------------------------------------------------------------------------------------------------------
Alger American Leveraged AllCap Portfolio .85% N/A .08%(7) .93% .93%
FIDELITY(R) VARIABLE INSURANCE PRODUCTS
-----------------------------------------------------------------------------------------------------------------------------
VIP Contrafund(R) Portfolio(8) .58% .10% .10% .78% .75%(10)
VIP Growth Opportunities Portfolio(9) .58% .10% .11% .79% .78%(10)
VIP Growth Portfolio(9) .58% .10% .09% .77% .75%(10)
</TABLE>
7 Included in "Other Expenses" is 0.01% of interest expense.
8 Effective November 3, 1997, the advisor has voluntarily agreed to reimburse
the fund to the extent that total operating expenses (excluding interest,
taxes, certain securities lending costs, brokerage commissions, and
extraordinary expenses), as a percentage of its average net assets, exceed
1.10%. This arrangement can be discontinued at any time.
9 Effective November 3, 1997, the advisor has voluntarily agreed to reimburse
the fund to the extent that total operating expenses (excluding interest,
taxes, certain securities lending costs, brokerage commissions, and
extraordinary expenses), as a percentage of its average net assets, exceed
1.60%. This arrangement can be discontinued at any time.
10 A portion of the brokerage commissions that the fund pays is used to reduce
the fund's expenses. In addition, through arrangements with the fund's
custodian, credits realized as a result of uninvested cash balances are used
to reduce custodian expenses.
TF595 Page 1 of 4
<PAGE>
ADDITIONAL INFORMATION FOR "SUMMARY OF EXPENSES," CONTINUED:
It is impossible to show you what expenses you would incur if you purchased a
contract because there are so many different factors which affect expenses.
However, the following tables are meant to help demonstrate how certain
decisions or choices by you could result in different levels of expense.
EXAMPLES:
If you surrender your contract at the end of the applicable period, you would
pay the following expenses on a $1,000 investment assuming 5% annual return on
assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BENEFIT OPTION 1 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio.................... $85 $121 N/A N/A
VIP Contrafund(R) Portfolio.................................. 84 117 N/A N/A
VIP Growth Opportunity Portfolio............................. 84 117 N/A N/A
VIP Growth Portfolio......................................... 83 117 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 2 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $88 $131 N/A N/A
VIP Contrafund(R) Portfolio.................................. 87 127 N/A N/A
VIP Growth Opportunity Portfolio............................. 87 127 N/A N/A
VIP Growth Portfolio......................................... 87 127 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 3 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $89 $134 N/A N/A
VIP Contrafund(R) Portfolio.................................. 88 130 N/A N/A
VIP Growth Opportunity Portfolio............................. 88 130 N/A N/A
VIP Growth Portfolio......................................... 88 129 N/A N/A
</TABLE>
If you annuitize your contract at the end of the applicable period, you would
pay the following expenses on a $1,000 investment assuming 5% annual return on
assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BENEFIT OPTION 1 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio.................... $85 $121 N/A N/A
VIP Contrafund(R) Portfolio.................................. 84 117 N/A N/A
VIP Growth Opportunity Portfolio............................. 84 117 N/A N/A
VIP Growth Portfolio......................................... 83 117 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 2 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $88 $131 N/A N/A
VIP Contrafund(R) Portfolio.................................. 87 127 N/A N/A
VIP Growth Opportunity Portfolio............................. 87 127 N/A N/A
VIP Growth Portfolio......................................... 87 127 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 3 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $89 $134 N/A N/A
VIP Contrafund(R) Portfolio.................................. 88 130 N/A N/A
VIP Growth Opportunity Portfolio............................. 88 130 N/A N/A
VIP Growth Portfolio......................................... 88 129 N/A N/A
</TABLE>
TF595 Page 2 of 4
<PAGE>
If you do not surrender your contract, you would pay the following expenses on a
$1,000 investment assuming 5% annual return on assets:
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BENEFIT OPTION 1 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Leveraged AllCap Portfolio.................... $20 $62 N/A N/A
VIP Contrafund(R) Portfolio.................................. 19 58 N/A N/A
VIP Growth Opportunity Portfolio............................. 19 58 N/A N/A
VIP Growth Portfolio......................................... 18 57 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 2 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $24 $73 N/A N/A
VIP Contrafund(R) Portfolio.................................. 22 68 N/A N/A
VIP Growth Opportunity Portfolio............................. 22 69 N/A N/A
VIP Growth Portfolio......................................... 22 68 N/A N/A
----------------------------------------------------------------------------------------------------------------------------
BENEFIT OPTION 3 CONTRACTS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Alger American Leveraged AllCap Portfolio.................... $25 $76 N/A N/A
VIP Contrafund(R) Portfolio.................................. 23 71 N/A N/A
VIP Growth Opportunity Portfolio............................. 23 72 N/A N/A
VIP Growth Portfolio......................................... 23 71 N/A N/A
</TABLE>
================================================================================
THE FOLLOWING ARE ADDITIONS TO THE SECTION TITLED "INVESTMENTS OF THE ACCOUNT"
IN YOUR PROSPECTUS:
THE ALGER AMERICAN FUND
A certain subaccount invests in a corresponding portfolio of The Alger American
Fund. The following portfolio is currently available:
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO: The investment objective of the
portfolio is long-term capital appreciation. It invests primarily in equity
securities, such as common or preferred stocks, which are listed on U.S.
exchanges or in the over-the-counter market. The portfolio invests primarily in
"growth" stocks. Under normal circumstances, the portfolio invests in the equity
securities of companies of any size, which demonstrate promising growth
potential. The portfolio can leverage, that is, borrow money, up to one-third of
its total assets to buy additional securities.
FIDELITY(R) VARIABLE INSURANCE PRODUCTS
Certain subaccounts invest in a corresponding portfolio of the Fidelity(R)
Variable Insurance Products. The following portfolios are currently available:
VIP CONTRAFUND(R) PORTFOLIO: The investment objective of the portfolio is to
seek long-term capital appreciation. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Investing in securities of companies whose value it believes is not fully
recognized by the public.
o Investing in domestic and foreign issuers.
o Investing in either "growth" stocks or "value" stocks or both.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
TF595 Page 3 of 4
<PAGE>
VIP GROWTH OPPORTUNITIES PORTFOLIO: The investment objective of the portfolio is
to seek to provide capital growth. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Potentially investing in other types of securities, including bonds which
may be lower-quality debt securities.
o Investing in domestic and foreign issuers.
o Investing in either "growth" stocks or "value" stocks or both.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
VIP GROWTH PORTFOLIO: The investment objective of the portfolio is to seek to
achieve capital appreciation. Principal investment strategies include:
o Normally investing primarily in common stocks.
o Investing in companies that it believes have above-average growth
potential. o Investing in securities of domestic and foreign issuers.
o Using fundamental analysis of each issuer's financial condition and
industry position and market and economic conditions to select
investments.
================================================================================
THE FOLLOWING ADVISORS AND THEIR INVESTMENT OPTIONS ARE ADDED TO THE "INVESTMENT
ADVISORS" SECTION IN YOUR PROSPECTUS:
<TABLE>
<S> <C>
[diamond] Fred Alger Management, Inc. [diamond] Fidelity Management & Research Company
o Alger American Leveraged AllCap Portfolio o VIP Contrafund(R) Portfolio
o VIP Growth Opportunities Portfolio
o VIP Growth Portfolio
</TABLE>
================================================================================
KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
TF595 Page 4 of 4
