<PAGE>
Supplement Dated August 28, 2000 to
Prospectus Dated May 1, 2000 for
Pacific Portfolios, a variable annuity contract
issued by Pacific Life Insurance Company
-----------------------------------------------------
Termination of the
Bond and The assets of Pacific Select Fund Bond and Income
Income Investment Portfolio, the underlying Portfolio for the Bond
Option and Income Subaccount, are scheduled to be
transferred to the Pacific Select Fund Managed Bond
Other terms of your Portfolio in exchange for shares of the Managed
policy will not change Bond Portfolio (the "reorganization") on September
as a result of the 22, 2000, at or about 4:00 p.m. Eastern time (the
transaction described "reorganization date"). At the same time that this
in this supplement. reorganization occurs, the corresponding Subaccount
Units and Subaccount Annuity Units of the Bond and
Income Subaccount will automatically be transferred
to the Managed Bond Subaccount in exchange for
corresponding units of that Investment Option. The
Bond and Income Subaccount will cease to exist.
You need not take any action regarding the
reorganization. The transfer of your units will
occur automatically on the reorganization date.
If you do not wish to participate in the Managed
Bond Investment Option, you can transfer among the
Investment Options as usual. There will be no
charge on transfers for at least 60 days from the
reorganization date. Thereafter, Pacific Life
reserves the right to impose transfer fees for
transfers as stated in the Prospectus, but there is
no current plan to do so. Any transfer made during
this time will not count toward any limitation we
may impose on the number of transfers you may make
annually.
Unless you instruct us otherwise, to the extent any
outstanding instruction you have on file with us
designates the Bond and Income Subaccount, the
instruction will be deemed an instruction for the
Managed Bond Subaccount. Instructions include, but
are not limited to instructions for Purchase
Payment allocations, any transfer or exchange
instructions, including instructions under the
Portfolio Rebalancing, Dollar Cost Averaging, and
Sweep Programs, and Partial Withdrawal
instructions.
-----------------------------------------------------
Postponement of the The reorganization date may be postponed if:
Transaction
. the New York Stock Exchange or another primary
If the reorganization trading market for Portfolio securities of the
date of the Bond and Bond and Income Portfolio and/or the Managed Bond
Income Portfolio is Portfolio is closed to trading or otherwise
postponed, the restricted, or
corresponding transfer
from the Bond and . trading or the reporting of trading on the New
Income Variable York Stock Exchange or other primary trading
Account to the Managed market is disrupted and the Fund's board of
Bond Variable Account trustees believes the value of the net assets in
will also be either Portfolio cannot be accurately appraised.
postponed.
If either of these events occur, the transaction
described above will be postponed until the first
business day after trading is fully resumed and
reporting has been restored.
<PAGE>
This supplement changes page 7 of the Prospectus with
the following:
--------------------------------------------------------
Other Expenses
An Overview of The table also shows the Fund expenses for each
Pacific Portfolios: Portfolio based on expenses in 1999, adjusted to
Fees and Expenses reflect recently reduced custody fees. To help limit
Paid by the Pacific Fund expenses, effective July 1, 2000 we have
Select Fund: Other contractually agreed to waive all or part of our
Expenses is investment advisory fees or otherwise reimburse each
replaced Portfolio for operating expenses (including
organizational expenses, but not including advisory
fees, additional costs associated with foreign
investing and extraordinary expenses) that exceed an
annual rate of 0.10% of its average daily net assets.
Such waiver or reimbursement is subject to repayment to
us to the extent such expenses fall below the 0.10%
expense cap. For each Portfolio, our right to repayment
is limited to amounts waived and/or reimbursed that
exceed the new 0.10% expense cap, but do not exceed the
previously established 0.25% expense cap. Any amounts
repaid to us will have the effect of increasing
expenses of the Portfolio, but not above the 0.10%
expense cap. There is no guarantee that we will
continue to cap expenses after December 31, 2001. In
1999, Pacific Life reimbursed the Small-Cap Index
Portfolio $96,949.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Less
Advisory Other Total adviser's Total net
Portfolio fee expenses expenses+ reimbursement expenses
--------------------------------------------------------------------------------
As an annual % of average daily net assets
<S> <C> <C> <C> <C> <C>
Aggressive Equity 0.80 0.04 0.84 -- 0.84
Emerging Markets/1/ 1.10 0.19 1.29 -- 1.29
Diversified Research/2/ 0.90 0.05 0.95 -- 0.95
Small-Cap Equity 0.65 0.04 0.69 -- 0.69
International Large-Cap/2/ 1.05 0.10 1.15 -- 1.15
Bond and Income 0.60 0.05 0.65 -- 0.65
Equity 0.65 0.03 0.68 -- 0.68
I-Net Tollkeeper/2/ 1.50 0.14 1.64 (0.04) 1.60
Multi-Strategy 0.65 0.04 0.69 -- 0.69
Equity Income 0.65 0.04 0.69 -- 0.69
Growth LT 0.75 0.03 0.78 -- 0.78
Mid-Cap Value 0.85 0.07 0.92 -- 0.92
Equity Index/3/ 0.25 0.04 0.29 -- 0.29
Small-Cap Index 0.50 0.30 0.80 (0.20) 0.60
REIT 1.10 0.15 1.25 (0.05) 1.20
International Value 0.85 0.09 0.94 -- 0.94
Government Securities 0.60 0.05 0.65 -- 0.65
Managed Bond/1/ 0.60 0.05 0.65 -- 0.65
Money Market/1/ 0.35 0.04 0.39 -- 0.39
High Yield Bond/1/ 0.60 0.05 0.65 -- 0.65
Large-Cap Value 0.85 0.08 0.93 -- 0.93
--------------------------------------------------------------------------------
</TABLE>
/1/ Total adjusted net expenses for these Portfolios in
1999, after deduction of an offset for custodian
credits were: 1.28% for Emerging Markets Portfolio,
0.64% for Managed Bond Portfolio, 0.38% for Money
Market Portfolio, and 0.64% for High Yield Bond
Portfolio.
/2/ Expenses are estimated. There were no actual
advisory fees or expenses for these Portfolios in
1999 because the Portfolios started after December
31, 1999.
/3/ Total adjusted net expenses for the Equity Index
Portfolio in 1999, after deduction of an offset for
custodian credits, were 0.28%. The advisory fee for
the Portfolio has also been adjusted to reflect the
advisory fee increase effective January 1, 2000.
The actual advisory fee and total adjusted net
expenses for this Portfolio in 1999, after
deduction of an offset for custodian credits, were
0.16% and 0.19%, respectively.
+ The Fund has adopted a brokerage enhancement 12b-1
plan, under which brokerage transactions may be
placed with broker-dealers in return for credits,
cash, or other compensation that may be used to
help promote distribution of Fund shares. There are
no fees or charges to any Portfolio under this
plan, although the Fund's distributor may defray
expenses of up to approximately $300,000 for the
year 2000, which it might otherwise incur for
distribution. If such defrayed amount were
considered a Fund expense, it would represent
approximately .0023% or less of any Portfolio's
average daily net assets.
2
<PAGE>
---------------------------------------------------------
Examples is amended
The following is added to Examples on page 8 of the
Prospectus:
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 $50,000 and a waiver would normally
apply.
without EGMDBR and GIA Rider reflects the expenses you
would pay if you did not buy the optional Enhanced
Guaranteed Minimum Death Benefit Rider (EGMDBR) and the
Guaranteed Income Advantage (GIA) Rider.
with EGMDBR reflects the expenses you would pay if you
bought the optional Enhanced Guaranteed Minimum Death
Benefit Rider, but not the GIA Rider. These expenses
depend on the age of the youngest Annuitant on the
Contract Date.
with GIA Rider reflects the expenses you would pay if
you bought the optional Guaranteed Income Advantage
Rider, but not the Enhanced Guaranteed Minimum Death
Benefit Rider.
with EGMDBR and GIA Rider reflects the expenses you
would pay if you bought the optional Enhanced
Guaranteed Minimum Death Benefit Rider and the
Guaranteed Income Advantage Rider.
These examples do not show past or future expenses.
Your actual expenses in any year may be more or less
than those shown here.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) your Contract ($) Contract ($)
-----------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aggressive Equity
without EGMDBR and GIA
Rider 87 73 124 265 87 127 151 265 24 73 124 265
with EGMDBR; age 0-65 88 76 129 275 88 130 156 275 25 76 129 275
with EGMDBR; age 66-75 90 82 139 295 90 136 166 295 27 82 139 295
with GIA Rider 90 82 139 295 90 136 166 295 27 82 139 295
with EGMDBR and GIA
Rider; age 0-65 91 85 144 305 91 139 171 305 28 85 144 305
with EGMDBR and GIA
Rider; age 66-75 93 91 154 325 93 145 181 325 30 91 154 325
-----------------------------------------------------------------------------------------
Emerging Markets
without EGMDBR and GIA
Rider 91 86 146 308 91 140 173 308 28 86 146 308
with EGMDBR; age 0-65 92 89 151 318 92 143 178 318 29 89 151 318
with EGMDBR; age 66-75 94 95 161 337 94 149 188 337 31 95 161 337
with GIA Rider 94 95 161 337 94 149 188 337 31 95 161 337
with EGMDBR and GIA
Rider; age 0-65 95 98 166 347 95 152 193 347 32 98 166 347
with EGMDBR and GIA
Rider; age 66-75 97 104 176 365 97 158 203 365 34 104 176 365
-----------------------------------------------------------------------------------------
Diversified Research
without EGMDBR and GIA
Rider 88 76 130 276 88 130 157 276 25 76 130 276
with EGMDBR; age 0-65 89 79 135 286 89 133 162 286 26 79 135 286
with EGMDBR; age 66-75 91 85 145 306 91 139 172 306 28 85 145 306
with GIA Rider 91 85 145 306 91 139 172 306 28 85 145 306
with EGMDBR and GIA
Rider; age 0-65 92 88 150 316 92 142 177 316 29 88 150 316
with EGMDBR and GIA
Rider; age 66-75 94 94 160 335 94 148 187 335 31 94 160 335
-----------------------------------------------------------------------------------------
Small-Cap Equity
without EGMDBR and GIA
Rider 85 68 117 250 85 122 144 250 22 68 117 250
with EGMDBR; age 0-65 86 71 122 260 86 125 149 260 23 71 122 260
with EGMDBR; age 66-75 88 77 132 280 88 131 159 280 25 77 132 280
with GIA Rider 88 77 132 280 88 131 159 280 25 77 132 280
with EGMDBR and GIA
Rider; age 0-65 89 80 137 290 89 134 164 290 26 80 137 290
with EGMDBR and GIA
Rider; age 66-75 91 86 147 310 91 140 174 310 28 86 147 310
-----------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) your Contract ($) Contract ($)
---------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
International Large-Cap
without EGMDBR and GIA
Rider 90 82 140 296 90 136 167 296 27 82 140 296
with EGMDBR; age 0-65 91 85 145 306 91 139 172 306 28 85 145 306
with EGMDBR; age 66-75 93 91 155 325 93 145 182 325 30 91 155 325
with GIA Rider 93 91 155 325 93 145 182 325 30 91 155 325
with EGMDBR and GIA
Rider; age 0-65 94 94 160 335 94 148 187 335 31 94 160 335
with EGMDBR and GIA
Rider; age 66-75 96 100 169 354 96 154 196 354 33 100 169 354
---------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------
Equity
without EGMDBR and GIA
Rider 85 68 116 249 85 122 143 249 22 68 116 249
with EGMDBR; age 0-65 86 71 121 259 86 125 148 259 23 71 121 259
with EGMDBR; age 66-75 88 77 131 279 88 131 158 279 25 77 131 279
with GIA Rider 88 77 131 279 88 131 158 279 25 77 131 279
with EGMDBR and GIA
Rider; age 0-65 89 80 136 289 89 134 163 289 26 80 136 289
with EGMDBR and GIA
Rider; age 66-75 91 86 146 309 91 140 173 309 28 86 146 309
---------------------------------------------------------------------------------------
I-Net Tollkeeper
without EGMDBR and GIA
Rider 94 95 162 339 94 149 189 339 31 95 162 339
with EGMDBR; age 0-65 95 98 167 348 95 152 194 348 32 98 167 348
with EGMDBR; age 66-75 97 104 176 367 97 158 203 367 34 104 176 367
with GIA Rider 97 104 176 367 98 160 206 371 34 104 176 367
with EGMDBR and GIA
Rider; age 0-65 98 107 181 376 98 161 208 376 35 107 181 376
with EGMDBR and GIA
Rider; age 66-75 100 113 191 394 100 167 218 394 37 113 191 394
---------------------------------------------------------------------------------------
Multi-Strategy
without EGMDBR and GIA
Rider 85 68 117 250 85 122 144 250 22 68 117 250
with EGMDBR; age 0-65 86 71 122 260 86 125 149 260 23 71 122 260
with EGMDBR; age 66-75 88 77 132 280 88 131 159 280 25 77 132 280
with GIA Rider 88 77 132 280 88 131 159 280 25 77 132 280
with EGMDBR and GIA
Rider; age 0-65 89 80 137 290 89 134 164 290 26 80 137 290
with EGMDBR and GIA
Rider; age 66-75 91 86 147 310 91 140 174 310 28 86 147 310
---------------------------------------------------------------------------------------
Equity Income
without EGMDBR and GIA
Rider 85 68 117 250 85 122 144 250 22 68 117 250
with EGMDBR; age 0-65 86 71 122 260 86 125 149 260 23 71 122 260
with EGMDBR; age 66-75 88 77 132 280 88 131 159 280 25 77 132 280
with GIA Rider 88 77 132 280 88 131 159 280 25 77 132 280
with EGMDBR and GIA
Rider; age 0-65 89 80 137 290 89 134 164 290 26 80 137 290
with EGMDBR and GIA
Rider; age 66-75 91 86 147 310 91 140 174 310 28 86 147 310
---------------------------------------------------------------------------------------
Growth LT
without EGMDBR and GIA
Rider 86 71 121 259 86 125 148 259 23 71 121 259
with EGMDBR; age 0-65 87 74 126 269 87 128 153 269 24 74 126 269
with EGMDBR; age 66-75 89 80 136 289 89 134 163 289 26 80 136 289
with GIA Rider 89 80 136 289 89 134 163 289 26 80 136 289
with EGMDBR and GIA
Rider; age 0-65 90 83 141 299 90 137 168 299 27 83 141 299
with EGMDBR and GIA
Rider; age 66-75 92 89 151 319 92 143 178 319 29 89 151 319
---------------------------------------------------------------------------------------
Mid-Cap Value
without EGMDBR and GIA
Rider 87 75 128 273 87 129 155 273 24 75 128 273
with EGMDBR; age 0-65 88 78 133 283 88 132 160 283 25 78 133 283
with EGMDBR; age 66-75 90 84 143 303 90 138 170 303 27 84 143 303
with GIA Rider 90 84 143 303 90 138 170 303 27 84 143 303
with EGMDBR and GIA
Rider; age 0-65 91 87 148 313 91 141 175 313 28 87 148 313
with EGMDBR and GIA
Rider; age 66-75 93 93 158 332 93 147 185 332 28 87 148 313
---------------------------------------------------------------------------------------
Equity Index
without EGMDBR and GIA
Rider 81 56 95 207 81 110 122 207 18 56 95 207
with EGMDBR; age 0-65 82 59 101 217 82 113 128 217 19 59 101 217
with EGMDBR; age 66-75 84 65 111 239 84 119 138 239 21 65 111 239
with GIA Rider 84 65 111 239 84 119 138 239 21 65 111 239
with EGMDBR and GIA
Rider; age 0-65 85 68 116 249 85 122 143 249 22 68 116 249
with EGMDBR and GIA
Rider; age 66-75 87 74 126 270 87 128 153 270 24 74 126 270
---------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) your Contract ($) Contract ($)
-----------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Small-Cap Value
without EGMDBR and GIA
Rider 84 65 112 240 84 119 139 240 21 65 112 240
with EGMDBR; age 0-65 85 68 117 251 85 122 144 251 22 68 117 251
with EGMDBR; age 66-75 87 74 127 271 87 128 154 271 24 74 127 271
with GIA Rider 87 74 127 271 87 128 154 271 24 74 127 271
with EGMDBR and GIA
Rider; age 0-65 88 78 132 281 88 132 159 281 25 78 132 281
with EGMDBR and GIA
Rider; age 66-75 90 84 142 301 90 138 169 301 27 84 142 301
-----------------------------------------------------------------------------------------
REIT
without EGMDBR and GIA
Rider 90 83 142 301 90 137 169 301 27 83 142 301
with EGMDBR; age 0-65 91 86 147 310 91 140 174 310 28 86 147 310
with EGMDBR; age 66-75 93 92 157 330 93 146 184 330 30 92 157 330
with GIA Rider 93 92 157 330 93 146 184 330 30 92 157 330
with EGMDBR and GIA
Rider; age 0-65 94 95 162 339 94 149 189 339 31 95 162 339
with EGMDBR and GIA
Rider; age 66-75 96 101 172 358 96 155 199 358 33 101 172 358
-----------------------------------------------------------------------------------------
International Value
without EGMDBR and GIA
Rider 88 76 129 275 88 130 156 275 25 76 129 275
with EGMDBR; age 0-65 89 79 134 285 89 133 161 285 26 79 134 285
with EGMDBR; age 66-75 91 85 144 305 91 139 171 305 28 85 144 305
with GIA Rider 91 85 144 305 91 139 171 305 28 85 144 305
with EGMDBR and GIA
Rider; age 0-65 92 88 149 315 92 142 176 315 29 88 149 315
with EGMDBR and GIA
Rider; age 66-75 94 94 159 334 94 148 186 334 31 94 159 334
-----------------------------------------------------------------------------------------
Government Securities
without EGMDBR and GIA
Rider 85 67 114 245 85 121 141 245 22 67 114 245
with EGMDBR; age 0-65 86 70 120 256 86 124 147 256 23 70 120 256
with EGMDBR; age 66-75 88 76 130 276 88 130 157 276 25 76 130 276
with GIA Rider 88 76 130 276 88 130 157 276 25 76 130 276
with EGMDBR and GIA
Rider; age 0-65 89 79 135 286 89 133 162 286 26 79 135 286
with EGMDBR and GIA
Rider; age 66-75 91 85 145 306 91 139 172 306 28 85 145 306
-----------------------------------------------------------------------------------------
Managed Bond
without EGMDBR and GIA
Rider 85 67 114 244 85 121 141 244 22 67 114 244
with EGMDBR; age 0-65 86 70 119 255 86 124 146 255 23 70 119 255
with EGMDBR; age 66-75 88 76 129 275 88 130 156 275 25 76 129 275
with GIA Rider 88 76 129 275 88 130 156 275 25 76 129 275
with EGMDBR and GIA
Rider; age 0-65 89 79 134 285 89 133 161 285 26 79 134 285
with EGMDBR and GIA
Rider; age 66-75 91 85 144 305 91 139 171 305 28 85 144 305
-----------------------------------------------------------------------------------------
Money Market
without EGMDBR and GIA
Rider 82 59 101 217 82 113 128 217 19 59 101 217
with EGMDBR; age 0-65 83 62 106 228 83 116 133 228 20 62 106 228
with EGMDBR; age 66-75 85 68 116 249 85 122 143 249 22 68 116 249
with GIA Rider 85 68 116 249 85 122 143 249 22 68 116 249
with EGMDBR and GIA
Rider; age 0-65 86 71 121 259 86 125 148 259 23 71 121 259
with EGMDBR and GIA
Rider; age 66-75 88 77 131 280 88 131 158 280 25 77 131 280
-----------------------------------------------------------------------------------------
High Yield Bond
without EGMDBR and GIA
Rider 85 67 114 244 85 121 141 244 22 67 114 244
with EGMDBR; age 0-65 86 70 119 255 86 124 146 255 23 70 119 255
with EGMDBR; age 66-75 88 76 129 275 88 130 156 275 25 76 129 275
with GIA Rider 88 76 129 275 88 130 156 275 25 76 129 275
with EGMDBR and GIA
Rider; age 0-65 89 79 134 285 89 133 161 285 26 79 134 285
with EGMDBR and GIA
Rider; age 66-75 91 85 144 305 91 139 171 305 28 85 144 305
-----------------------------------------------------------------------------------------
Large-Cap Value
without EGMDBR and GIA
Rider 87 75 129 274 87 129 156 274 24 75 129 274
with EGMDBR; age 0-65 89 78 134 284 89 132 161 284 26 78 134 284
with EGMDBR; age 66-75 91 84 144 304 91 138 171 304 28 84 144 304
with GIA Rider 91 84 144 304 91 138 171 304 28 84 144 304
with EGMDBR and GIA
Rider; age 0-65 92 87 149 314 92 141 176 314 29 87 149 314
with EGMDBR and GIA
Rider; age 66-75 94 93 159 333 94 147 186 333 31 93 159 333
-----------------------------------------------------------------------------------------
</TABLE>
5
