<PAGE>
Supplement dated August 17th, 1999 to Prospectus dated May 1, 1999
for the Pacific Portfolios Variable Annuity
Issued by Pacific Life Insurance Company ("Prospectus")
Capitalized terms used in this Supplement are defined in the Prospectus
referred to above unless otherwise defined herein. "We," "us", or "our" refer
to Pacific Life Insurance Company; "you" or "your" refer to the Contract Owner.
This Supplement which amends the Prospectus describes the optional Guaranteed
Income Advantage Rider ("GIA Rider").
The AN OVERVIEW OF PACIFIC PORTFOLIOS section is amended as follows:
Guaranteed Income Advantage Rider (Optional)
The Guaranteed Income Advantage Rider ("GIA Rider") offers a guaranteed income
advantage annuity option. You may buy the GIA Rider on the Contract Date or on
any Contract Anniversary. The GIA Rider is not available in all states. Ask
your registered representative about its current availability status in your
state of residence.
The expense table under Contract Expenses has been revised by adding:
<TABLE>
<S> <C>
Guaranteed Income Advantage Rider Charge, calculated as a percentage of
Contract Value/7/ 0.30%
</TABLE>
/7/ If you buy the Guaranteed Income Advantage Rider ("GIA Rider"), which is
subject to state availability, we deduct this charge on each Contract
Anniversary date and the Annuity Date, and when you make a full withdrawal, if
the GIA Rider is in effect on that date, or when you terminate the GIA Rider.
The information under Examples has been revised as follows:
The following table shows the expenses you would pay on each $1,000 you
invested if, at the end of each period, you: annuitized your Contract;
surrendered your Contract and withdrew the Contract Value, or did not annuitize
or surrender, but left the money in your Contract.
These examples assume the following:
. the Contract Value starts at $45,000
. the Investment Options have an annual return of 5%
. the Annual Fee is deducted even when the Contract Value goes over $50,000
and a waiver would normally apply.
without EGMDBR and GIA Rider reflects the expenses you would pay if you did not
buy the optional Enhanced Guaranteed Minimum Death Benefit Rider ("EGMDBR") and
the Guaranteed Income Advantage ("GIA") Rider.
with EGMDBR reflects the expenses you would pay if you bought the optional
Enhanced Guaranteed Minimum Death Benefit Rider, but not the GIA Rider. These
expenses depend on the age of the youngest Annuitant on the Contract Date.
with GIA Rider reflects the expenses you would pay if you bought the optional
Guaranteed Income Advantage Rider, but not the Enhanced Guaranteed Minimum
Death Benefit Rider.
with EGMDBR and GIA Rider reflects the expenses you would pay if you bought the
optional Enhanced Guaranteed Minimum Death Benefit Rider and the Guaranteed
Income Advantage Rider.
<PAGE>
These examples do not show past or future expenses. Your actual expenses in any
year may be more or less than those shown here.
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<TABLE>
<CAPTION>
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized your surrendered your the money in your
Contract ($) Contract ($) Contract ($)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
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Money Market
without EGMDBR and GIA
Rider 82 60 103 222 82 114 130 222 19 60 103 222
with EGMDBR: age 0-65 83 63 108 233 83 117 135 233 20 63 108 233
with EGMDBR: age 66-75 86 69 119 254 86 123 146 254 23 69 119 254
with GIA Rider 86 69 119 254 86 123 146 254 23 69 119 254
with EGMDBR and GIA
Rider: age 0-65 87 72 124 264 87 126 151 264 24 72 124 264
with EGMDBR and GIA
Rider: age 66-75 89 79 134 285 89 133 161 285 26 79 134 285
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High Yield Bond
without EGMDBR and GIA
Rider 85 67 115 247 85 121 142 247 22 67 115 247
with EGMDBR: age 0-65 86 70 120 257 86 124 147 257 23 70 120 257
with EGMDBR: age 66-75 88 76 130 277 88 130 157 277 25 76 130 277
with GIA Rider 88 76 130 277 88 130 157 277 25 76 130 277
with EGMDBR and GIA
Rider: age 0-65 89 79 135 287 89 133 162 287 26 79 135 287
with EGMDBR and GIA
Rider: age 66-75 91 85 145 307 91 139 172 307 28 85 145 307
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Managed Bond
without EGMDBR and GIA
Rider 85 67 115 247 85 121 142 247 22 67 115 247
with EGMDBR: age 0-65 86 70 120 257 86 124 147 257 23 70 120 257
with EGMDBR: age 66-75 88 76 130 277 88 130 157 277 25 76 130 277
with GIA Rider 88 76 130 277 88 130 157 277 25 76 130 277
with EGMDBR and GIA
Rider: age 0-65 89 79 135 287 89 133 162 287 26 79 135 287
with EGMDBR and GIA
Rider: age 66-75 91 85 145 307 91 139 172 307 28 85 145 307
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Government Securities
without EGMDBR and GIA
Rider 85 67 115 247 85 121 142 247 22 67 115 247
with EGMDBR: age 0-65 86 70 120 257 86 124 147 257 23 70 120 257
with EGMDBR: age 66-75 88 76 130 277 88 130 157 277 25 76 130 277
with GIA Rider 88 76 130 277 88 130 157 277 25 76 130 277
with EGMDBR and GIA
Rider: age 0-65 89 79 135 287 89 133 162 287 26 79 135 287
with EGMDBR and GIA
Rider: age 66-75 91 85 145 307 91 139 172 307 28 85 145 307
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</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized your surrendered your the money in your
Contract ($) Contract ($) Contract ($)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
- --------------------------------------------------------------------------------------
Aggressive Equity
without EGMDBR and GIA
Rider 87 74 127 270 87 128 154 270 24 74 127 270
with EGMDBR: age 0-65 88 77 132 280 88 131 159 280 25 77 132 280
with EGMDBR: age 66-75 90 83 142 300 90 137 169 300 27 83 142 300
with GIA Rider 90 83 142 300 90 137 169 300 27 83 142 300
with EGMDBR and GIA
Rider: age 0-65 91 86 147 310 91 140 174 310 28 86 147 310
with EGMDBR and GIA
Rider: age 66-75 93 92 157 329 93 146 184 329 30 92 157 329
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Growth LT
without EGMDBR and GIA
Rider 86 71 122 261 86 125 149 261 23 71 122 261
with EGMDBR: age 0-65 87 74 127 271 87 128 154 271 24 74 127 271
with EGMDBR: age 66-75 89 80 137 291 89 134 164 291 26 80 137 291
with GIA Rider 89 80 137 291 89 134 164 291 26 80 137 291
with EGMDBR and GIA
Rider: age 0-65 90 84 142 301 90 138 169 301 27 84 142 301
with EGMDBR and GIA
Rider: age 66-75 92 90 152 321 92 144 179 321 29 90 152 321
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Equity Income
without EGMDBR and GIA
Rider 85 68 117 251 85 122 144 251 22 68 117 251
with EGMDBR: age 0-65 86 71 122 261 86 125 149 261 23 71 122 261
with EGMDBR: age 66-75 88 77 132 281 88 131 159 281 25 77 132 281
with GIA Rider 88 77 132 281 88 131 159 281 25 77 132 281
with EGMDBR and GIA
Rider: age 0-65 89 81 137 291 89 135 164 291 26 81 137 291
with EGMDBR and GIA
Rider: age 66-75 91 87 147 311 91 141 174 311 28 87 147 311
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Multi-Strategy
without EGMDBR and GIA
Rider 85 69 118 252 85 123 145 252 22 69 118 252
with EGMDBR: age 0-65 86 72 123 262 86 126 150 262 23 72 123 262
with EGMDBR: age 66-75 88 78 133 282 88 132 160 282 25 78 133 282
with GIA Rider 88 78 133 282 88 132 160 282 25 78 133 282
with EGMDBR and GIA
Rider: age 0-65 89 81 138 292 89 135 165 292 26 81 138 292
with EGMDBR and GIA
Rider: age 66-75 91 87 148 312 91 141 175 312 28 87 148 312
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Large-Cap Value
without EGMDBR and GIA
Rider 87 75 128 272 87 129 155 272 24 75 128 272
with EGMDBR: age 0-65 88 78 133 282 88 132 160 282 25 78 133 282
with EGMDBR: age 66-75 90 84 143 302 90 138 170 302 27 84 143 302
with GIA Rider 90 84 143 302 90 138 170 302 27 84 143 302
with EGMDBR and GIA
Rider: age 0-65 91 87 148 312 91 141 175 312 28 87 148 312
with EGMDBR and GIA
Rider: age 66-75 93 93 158 331 93 147 185 331 30 93 158 331
</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized your surrendered your the money in your
Contract ($) Contract ($) Contract ($)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
- --------------------------------------------------------------------------------------
Mid-Cap Value
without EGMDBR and GIA
Rider 87 75 128 272 87 129 155 272 24 75 128 272
with EGMDBR: age 0-65 88 78 133 282 88 132 160 282 25 78 133 282
with EGMDBR: age 66-75 90 84 143 302 90 138 170 302 27 84 143 302
with GIA Rider 90 84 143 302 90 138 170 302 27 84 143 302
with EGMDBR and GIA
Rider: age 0-65 91 87 148 312 91 141 175 312 28 87 148 312
with EGMDBR and GIA
Rider: age 66-75 93 93 158 331 93 147 185 331 30 93 158 331
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Equity
without EGMDBR and GIA
Rider 85 69 118 252 85 123 145 252 22 69 118 252
with EGMDBR: age 0-65 86 72 123 262 86 126 150 262 23 72 123 262
with EGMDBR: age 66-75 88 78 133 282 88 132 160 282 25 78 133 282
with GIA Rider 88 78 133 282 88 132 160 282 25 78 133 282
with EGMDBR and GIA
Rider: age 0-65 89 81 138 292 89 135 165 292 26 81 138 292
with EGMDBR and GIA
Rider: age 66-75 91 87 148 312 91 141 175 312 28 87 148 312
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Bond and Income
without EGMDBR and GIA
Rider 85 68 117 251 85 122 144 251 22 68 117 251
with EGMDBR: age 0-65 86 71 122 261 86 125 149 261 23 71 122 261
with EGMDBR: age 66-75 88 77 132 281 88 131 159 281 25 77 132 281
with GIA Rider 88 77 132 281 88 131 159 281 25 77 132 281
with EGMDBR and GIA
Rider: age 0-65 89 81 137 291 89 135 164 291 26 81 137 291
with EGMDBR and GIA
Rider: age 66-75 91 87 147 311 91 141 174 311 28 87 147 311
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Equity Index
without EGMDBR and GIA
Rider 80 53 92 199 80 107 119 199 17 53 92 199
with EGMDBR: age 0-65 81 56 97 210 81 110 124 210 18 56 97 210
with EGMDBR: age 66-75 83 63 107 231 83 117 134 231 20 63 107 231
with GIA Rider 83 63 107 231 83 117 134 231 20 63 107 231
with EGMDBR and GIA
Rider: age 0-65 84 66 113 242 84 120 140 242 21 66 113 242
with EGMDBR and GIA
Rider: age 66-75 86 72 123 263 86 126 150 263 23 72 123 263
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Small-Cap Index
without EGMDBR and GIA
Rider 84 64 110 236 84 118 137 236 21 64 110 236
with EGMDBR: age 0-65 85 67 115 247 85 121 142 247 22 67 115 247
with EGMDBR: age 66-75 87 73 125 267 87 127 152 267 24 73 125 267
with GIA Rider 87 73 125 267 87 127 152 267 24 73 125 267
with EGMDBR and GIA
Rider: age 0-65 88 76 130 277 88 130 157 277 25 76 130 277
with EGMDBR and GIA
Rider: age 66-75 90 82 140 298 90 136 167 298 27 82 140 298
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</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized your surrendered your the money in your
Contract ($) Contract ($) Contract ($)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
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REIT
without EGMDBR and GIA
Rider 90 82 140 297 90 136 167 297 27 82 140 297
with EGMDBR: age 0-65 91 85 145 307 91 139 172 307 28 85 145 307
with EGMDBR: age 66-75 93 91 155 326 93 145 182 326 30 91 155 326
with GIA Rider 93 91 155 326 93 145 182 326 30 91 155 326
with EGMDBR and GIA
Rider: age 0-65 94 94 160 336 94 148 187 336 31 94 160 336
with EGMDBR and GIA
Rider: age 66-75 96 100 170 354 96 154 197 354 33 100 170 354
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International
without EGMDBR and GIA
Rider 88 77 132 281 88 131 159 281 25 77 132 281
with EGMDBR: age 0-65 89 80 137 291 89 134 164 291 26 80 137 291
with EGMDBR: age 66-75 91 86 147 311 91 140 174 311 28 86 147 311
with GIA Rider 91 86 147 311 91 140 174 311 28 86 147 311
with EGMDBR and GIA
Rider: age 0-65 92 89 152 320 92 143 179 320 29 89 152 320
with EGMDBR and GIA
Rider: age 66-75 94 96 162 340 94 150 189 340 31 96 162 340
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Emerging Markets
without EGMDBR and GIA
Rider 93 91 155 326 93 145 182 326 30 91 155 326
with EGMDBR: age 0-65 94 94 160 335 94 148 187 335 31 94 160 335
with EGMDBR: age 66-75 96 100 170 354 96 154 197 354 33 100 170 354
with GIA Rider 96 100 170 354 96 154 197 354 33 100 170 354
with EGMDBR and GIA
Rider: age 0-65 97 103 175 363 97 157 202 363 34 103 175 363
with EGMDBR and GIA
Rider: age 66-75 99 109 184 382 99 163 211 382 36 109 184 382
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</TABLE>
<PAGE>
The following is added to the CHARGES, FEES AND DEDUCTIONS section:
Guaranteed Income Advantage Charge (Optional Rider)
If you purchase the GIA Rider, we deduct annually a Guaranteed Income Advantage
Charge ("GIA Charge") for expenses related to the GIA Rider. The GIA Charge is
equal to 0.30% multiplied by your Contract Value on the date the Charge is
deducted.
We will deduct the GIA Charge from your Investment Options on a proportionate
basis:
. on each Contract Anniversary the GIA Rider remains in effect;
. on the Annuity Date, if the GIA Rider is still in effect;
. when the GIA Rider is terminated.
Any portion of the GIA Charge we deduct from the Fixed Option, the DCA Plus
Fixed Option and the Guaranteed Interest Options ("GIOs") will not be greater
than the annual interest credited in excess of 3%. If you terminate the GIA
Rider, we will charge your Contract for the annual GIA Charge on the effective
date of termination. If you make a full withdrawal of the amount available for
withdrawal during a Contract Year, we will deduct the entire GIA Charge for the
Contract Year in which you make the full withdrawal from the final payment made
to you.
The following is added to the PURCHASING YOUR CONTRACT section:
Purchasing the Guaranteed Income Advantage Rider (Optional)
You may purchase the GIA Rider on the Contract Date or on any Contract
Anniversary. You may purchase the GIA Rider only if the age of each Annuitant
is 80 years or younger on the date the GIA Rider is purchased. The GIA Rider
will remain in effect until the earlier of:
. a full withdrawal of the amount available for withdrawal under the
Contract;
. a death benefit becomes payable under the Contract;
. any termination of the Contract in accordance with the terms of the
Contract;
. the Annuity Date; or
. termination of the GIA Rider.
You may terminate the GIA Rider on the fifth Contract Anniversary or on any
later Contract Anniversary.
The following is added to the RETIREMENT BENEFITS AND OTHER PAYOUTS section
under Choosing Your Annuity Option:
Guaranteed Income Advantage Annuity Option
If you purchase the GIA Rider, you may choose any of the Annuity Options
described in the Prospectus, or you may choose the Guaranteed Income Advantage
Annuity Option if 10 years have passed since the GIA Rider was purchased and
the GIA Rider is still in effect. You must choose fixed annuity payments under
this Guaranteed Income Advantage Annuity Option.
<PAGE>
The guaranteed income purchased per $1,000 of the net amount applied to the
annuity payments will be based on an annual interest rate of 2.5% and the 1983a
Annuity Mortality Table with the age set back 10 years. The net amount applied
to the annuity payments under the Guaranteed Income Advantage Annuity Option
will be based on the higher of the Guaranteed Income Base or the Enhanced
Income Base, which are described below.
1. Guaranteed Income Base--If you purchase the GIA Rider on the Contract Date,
the Guaranteed Income Base is equal to the Purchase Payments less an
adjustment for each withdrawal, increased at a 5% effective annual rate of
interest. We calculate the adjustment for each withdrawal by multiplying the
Guaranteed Income Base prior to a withdrawal by the ratio of the amount of
the withdrawal, including applicable withdrawal charges and MVAs, to the
Contract Value immediately prior to withdrawal.
If you purchase the GIA Rider on a Contract Anniversary after the Contract
Date, the Guaranteed Income Base is equal to the Contract Value on the date
the GIA Rider is purchased, plus all Purchase Payments made after the GIA
Rider is purchased, less an adjustment for each withdrawal occurring after
the GIA was elected, increased at a 5% effective annual rate of interest.
We calculate the adjustment for each withdrawal by multiplying the
Guaranteed Income Base prior to the withdrawal by the ratio of the amount
of the withdrawal, including applicable withdrawal charges and MVAs to the
Contract Value immediately prior to the withdrawal.
The effective annual rate of interest will take into account the timing of
when each Purchase Payment and withdrawal occurred. We accomplish this by
applying a daily factor of 1.000133681 to each day's Guaranteed Income Base
balance. The 5% effective annual rate of interest will stop accruing as of
the earlier of:
. the Contract Anniversary following the date the youngest Annuitant
reaches his or her 80th birthday;
. a full withdrawal of the amount available for withdrawal under the
Contract;
. a death benefit becomes payable under the Contract;
. any termination of the Contract in accordance with the provisions of the
Contract;
. the Annuity Date; or
. termination of the GIA Rider.
On the Annuity Date, the net amount we apply to the annuity payments will be
the Guaranteed Income Base reduced by any remaining withdrawal charges
associated with additional Purchase Payments added to the Contract, any MVAs,
any applicable state premium tax, and any outstanding Contract Debt.
2. Enhanced Income Base--The Enhanced Income Base is equal to:
. the Net Contract Value on the Annuity Date;
. less the sum of all Purchase Payments applied to the Contract in the 12
months prior to the Annuity Date.
On the Annuity Date, the net amount we apply to the annuity payments will
be the Enhanced Income Base reduced by any withdrawal charges, MVAs, and
any applicable state premium tax.
The structure of the annuity payments that may be elected under the Guaranteed
Income Advantage Annuity Option are:
. 15 years or more Period Certain;
. Life;
<PAGE>
. Joint and Survivor Life;
. Life with 10 Years or More Period Certain.
If you purchase the Guaranteed Income Advantage ("GIA") Annuity Option, the
waiver of withdrawal charges upon annuitization will not apply. We will reduce
the net amount applied to the annuity payments under the Guaranteed Income
Advantage Annuity Option by any remaining withdrawal charges. The rider
contains annuity tables for each GIA Annuity Option available.
