<PAGE>
Supplement dated August 16th, 1999 to Prospectus dated May 1, 1999
for the Pacific Value 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 VALUE 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, as a percentage of Contract
Value/6/ 0.30%
</TABLE>
/6/ 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 $1,000 you
invested if, at the end of each period, you: annuitized your Contract;
surrendered your Contract and withdrew the Contract Value, or did not annuitize
or surrender, but left the money in your Contract.
These examples assume an annual return of 5%.
without any Rider reflects the expenses you would pay if you did not buy the
optional Stepped-Up Death Benefit Rider (SDBR) or Premier Death Benefit Rider
(PDBR) and the Guaranteed Income Advantage Rider.
with SDBR reflects the expenses you would pay if you bought the Stepped-Up
Death Benefit Rider, but not the GIA Rider or PDBR. These expenses depend on
the age of the youngest Annuitant on the Contract Date.
with PDBR reflects the expenses you would pay if you bought the optional
Premier Death Benefit Rider, but not the GIA Rider or SDBR. These expenses
depend on the age of the youngest Annuitant on the Contract Date.
with GIA Rider reflects the expenses you would pay if you bought the optional
Guaranteed Income Advantage Rider, but not the optional SDBR or PDBR.
with SDBR and GIA Rider reflects the expenses you would pay if you bought the
optional Stepped-Up Death Benefit Rider and the Guaranteed Income Advantage
Rider.
with PDBR and GIA Rider reflects the expenses you would pay if you bought the
Premier Death Benefit Rider and the Guaranteed Income Advantage Rider.
<PAGE>
These examples do not show past or future expenses. Your actual expenses in any
year may be more or less than those shown here.
<TABLE>
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<CAPTION>
Expenses if you did not
Expenses if you Expenses if you annuitize or surrender, but
annuitized surrendered left the money in your
your Contract ($) your 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
- -----------------------------------------------------------------------------------------------
Money Market
without any Rider 82 58 99 214 82 121 144 214 19 58 99 214
with SDBR 84 64 109 235 84 127 154 235 21 64 109 235
with PDBR 85 68 117 251 85 131 162 251 22 68 117 251
with GIA Rider 85 67 114 246 85 130 159 246 22 67 114 246
with SDBR and GIA Rider 87 73 125 266 87 136 170 266 24 73 125 266
with PDBR and GIA Rider 88 77 132 281 88 140 177 281 25 77 132 281
- -----------------------------------------------------------------------------------------------
High Yield Bond
without any Rider 84 65 111 239 84 128 156 239 21 65 111 239
with SDBR 86 71 121 259 86 134 166 259 23 71 121 259
with PDBR 87 75 128 274 87 138 173 274 24 75 128 274
with GIA Rider 87 74 126 269 87 137 171 269 24 74 126 269
with SDBR and GIA Rider 89 80 136 289 89 143 181 289 26 80 136 289
with PDBR and GIA Rider 90 84 144 304 90 147 189 304 27 84 144 304
- -----------------------------------------------------------------------------------------------
Managed Bond
without any Rider 84 65 111 239 84 128 156 239 21 65 111 239
with SDBR 86 71 121 259 86 134 166 259 23 71 121 259
with PDBR 87 75 128 274 87 138 173 274 24 75 128 274
with GIA Rider 87 74 126 269 87 137 171 269 24 74 126 269
with SDBR and GIA Rider 89 80 136 289 89 143 181 289 26 80 136 289
with PDBR and GIA Rider 90 84 144 304 90 147 189 304 27 84 144 304
- -----------------------------------------------------------------------------------------------
Government Securities
without any Rider 84 65 111 239 84 128 156 239 21 65 111 239
with SDBR 86 71 121 259 86 134 166 259 23 71 121 259
with PDBR 87 75 128 274 87 138 173 274 24 75 128 274
with GIA Rider 87 74 126 269 87 137 171 269 24 74 126 269
with SDBR and GIA Rider 89 80 136 289 89 143 181 289 26 80 136 289
with PDBR and GIA Rider 90 84 144 304 90 147 189 304 27 84 144 304
- -----------------------------------------------------------------------------------------------
Aggressive Equity
without any Rider 86 71 122 262 86 134 167 262 23 71 122 262
with SDBR 88 77 132 282 88 140 177 282 25 77 132 282
with PDBR 90 82 140 297 90 145 185 297 27 82 140 297
with GIA Rider 89 81 138 292 89 144 183 292 26 81 138 292
with SDBR and GIA Rider 91 87 147 312 91 150 192 312 28 87 147 312
with PDBR and GIA Rider 93 91 156 326 93 154 200 326 30 91 155 326
- -----------------------------------------------------------------------------------------------
Growth LT
without any Rider 85 69 118 253 85 132 163 253 22 69 118 253
with SDBR 87 75 128 273 87 138 173 273 24 75 128 273
with PDBR 89 79 135 288 89 142 180 288 26 79 135 288
with GIA Rider 88 78 133 283 88 141 178 283 25 78 133 283
with SDBR and GIA Rider 90 84 143 303 90 147 188 303 27 84 143 303
with PDBR and GIA Rider 92 88 150 317 92 151 195 317 29 88 150 317
- -----------------------------------------------------------------------------------------------
</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 10yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
- --------------------------------------------------------------------------------------
Equity Income
without any Rider 84 66 113 243 84 129 158 243 21 66 113 243
with SDBR 86 72 123 263 86 135 168 263 23 72 123 263
with PDBR 88 76 130 278 88 139 175 278 25 76 130 278
with GIA Rider 87 75 128 273 87 138 173 273 24 75 128 273
with SDBR and GIA Rider 89 81 138 293 89 144 183 293 26 81 138 293
with PDBR and GIA Rider 91 85 145 308 91 148 190 308 28 85 145 308
- --------------------------------------------------------------------------------------
Multi-Strategy
without any Rider 84 66 113 244 84 129 158 244 21 66 113 244
with SDBR 86 72 123 264 86 135 168 264 23 72 123 264
with PDBR 88 78 131 279 88 140 176 279 25 77 131 279
with GIA Rider 87 75 129 274 87 138 174 274 24 75 129 274
with SDBR and GIA Rider 89 81 139 294 89 144 184 294 26 81 139 294
with PDBR and GIA Rider 91 86 146 309 91 149 191 309 28 86 146 309
- --------------------------------------------------------------------------------------
Large-Cap Value
without any Rider 86 72 123 264 86 135 168 264 23 72 123 264
with SDBR 88 78 133 284 88 141 178 284 25 78 133 284
with PDBR 90 83 141 299 90 146 186 299 27 83 141 299
with GIA Rider 89 81 139 294 89 144 184 294 26 81 139 294
with SDBR and GIA Rider 91 87 148 314 91 150 193 314 28 87 148 314
with PDBR and GIA Rider 93 92 156 328 93 155 201 328 30 92 156 328
- --------------------------------------------------------------------------------------
Mid-Cap Value
without any Rider 86 72 123 264 86 135 168 264 23 72 123 264
with SDBR 88 78 133 284 88 141 178 284 25 78 133 284
with PDBR 90 83 141 299 90 146 186 299 27 83 141 299
with GIA Rider 89 81 139 294 89 144 184 294 26 81 139 294
with SDBR and GIA Rider 91 87 148 314 91 150 193 314 28 87 148 314
with PDBR and GIA Rider 93 92 156 328 93 155 201 328 30 92 156 328
- --------------------------------------------------------------------------------------
Equity
without any Rider 84 66 113 244 84 129 158 244 21 66 113 244
with SDBR 86 72 123 264 86 135 168 264 23 72 123 264
with PDBR 88 77 131 279 88 140 176 279 25 77 131 279
with GIA Rider 87 75 129 274 87 138 174 274 24 75 129 274
with SDBR and GIA Rider 89 81 139 294 89 144 184 294 26 81 139 294
with PDBR and GIA Rider 91 86 146 309 91 149 191 309 28 86 146 309
- --------------------------------------------------------------------------------------
Bond and Income
without any Rider 84 66 113 243 84 129 158 243 21 66 113 243
with SDBR 86 72 123 263 86 135 168 263 23 72 123 263
with PDBR 88 76 130 278 88 139 175 278 25 76 130 278
with GIA Rider 87 75 128 273 87 138 173 273 24 75 128 273
with SDBR and GIA Rider 89 81 138 293 89 144 183 293 26 81 138 293
with PDBR and GIA Rider 91 85 145 308 91 148 190 308 28 85 145 308
- --------------------------------------------------------------------------------------
</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
- ---------------------------------------------------------------------------------------
Equity Index
without any Rider 79 51 88 191 79 114 133 191 16 51 88 191
with SDBR 81 57 98 212 81 120 143 212 18 57 98 212
with PDBR 83 61 106 228 83 124 151 228 20 61 106 228
with GIA Rider 82 60 103 223 82 123 148 223 19 60 103 223
with SDBR and GIA Rider 84 66 113 244 84 129 158 244 21 66 113 244
with PDBR and GIA Rider 86 71 121 259 86 134 166 259 23 71 121 259
- ---------------------------------------------------------------------------------------
Small-Cap Index
without any Rider 83 61 106 228 83 124 151 228 20 61 106 228
with SDBR 85 68 116 249 85 131 161 249 22 68 116 249
with PDBR 86 72 123 264 86 135 168 264 23 72 123 264
with GIA Rider 86 71 121 259 86 134 166 259 23 71 121 259
with SDBR and GIA Rider 88 77 131 279 88 140 176 279 25 77 131 279
with PDBR and GIA Rider 89 81 139 294 89 144 184 294 26 81 139 294
- ---------------------------------------------------------------------------------------
REIT
without any Rider 89 80 136 289 89 143 181 289 26 80 136 289
with SDBR 91 86 146 308 91 149 191 308 28 86 146 308
with PDBR 92 90 153 323 92 153 198 323 29 90 153 323
with GIA Rider 92 89 151 318 92 152 196 318 29 89 151 318
with SDBR and GIA Rider 94 95 161 337 94 158 206 337 31 95 161 337
with PDBR and GIA Rider 95 99 168 351 95 162 213 351 32 99 168 351
- ---------------------------------------------------------------------------------------
International
without any Rider 87 75 128 273 87 138 173 273 24 75 128 273
with SDBR 89 81 138 293 89 144 183 293 26 81 138 293
with PDBR 91 85 145 307 91 148 190 307 28 85 145 307
with GIA Rider 90 84 143 303 90 147 188 303 27 84 143 303
with SDBR and GIA Rider 92 90 153 322 92 153 198 322 29 90 153 322
with PDBR and GIA Rider 94 94 160 336 94 157 205 336 31 94 160 336
- ---------------------------------------------------------------------------------------
Emerging Markets
without any Rider 92 89 151 318 92 152 196 318 29 89 151 318
with SDBR 94 94 160 337 94 157 205 337 31 94 160 337
with PDBR 95 99 168 351 95 162 213 351 32 99 168 351
with GIA Rider 95 97 165 346 95 160 210 346 32 97 165 346
with SDBR and GIA Rider 97 103 175 365 97 166 220 365 34 103 175 365
with PDBR and GIA Rider 98 108 182 378 98 171 227 378 35 108 182 378
- ---------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE>
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 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 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.
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 following 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, 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
<PAGE>
made after the GIA Rider is purchased, less an adjustment for each
withdrawal occurring after the GIA is purchased, 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, 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 and if the GIA Rider has not terminated, 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 applicable state premium tax, and any outstanding Contract
Debt.
2. Enhanced Income Base--The Enhanced Income Base is equal to your Net Contract
Value on the Annuity Date plus an additional 15% of the amount 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 associated
with additional Purchase Payments added to the Contract 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;
. 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.
