<PAGE>
Supplement Dated August 28, 2000 to
Prospectus Dated May 1, 2000 for
Pacific Value, a variable annuity contract
issued by Pacific Life Insurance Company
-----------------------------------------------------
Termination of the The assets of Pacific Select Fund Bond and Income
Bond and Portfolio, the underlying Portfolio for the Bond
Income Investment and Income Subaccount, are scheduled to be
Option transferred to the Pacific Select Fund Managed Bond
Portfolio in exchange for shares of the Managed
Other terms of your Bond Portfolio (the "reorganization") on September
policy will not change 22, 2000, at or about 4:00 p.m. Eastern time (the
as a result of the "reorganization date"). At the same time that this
transaction described reorganization occurs, the corresponding Subaccount
in this supplement. 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 Value: Fees Portfolio based on expenses in 1999, adjusted to
and Expenses Paid reflect recently reduced custody fees. To help limit
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 $1,000 you invested if, at the end of each period,
you: annuitized your Contract; surrendered your
Contract and withdrew the Contract Value, or did not
annuitize or surrender, but left the money in your
Contract.
These examples assume an annual return of 5%.
without any Rider reflects the expenses you would pay
if you did not buy the optional Stepped-Up Death
Benefit Rider (SDBR) or Premier Death Benefit Rider
(PDBR) and the Guaranteed Income Advantage Rider (GIA).
with SDBR reflects the expenses you would pay if you
bought the Stepped-Up Death Benefit Rider, but not the
GIA Rider or PDBR.
with PDBR reflects the expenses you would pay if you
bought the optional Premier Death Benefit Rider, but
not the GIA Rider or SDBR.
with GIA Rider reflects the expenses you would pay if
you bought the optional Guaranteed Income Advantage
Rider, but not the optional SDBR or PDBR.
with SDBR and GIA Rider reflects the expenses you would
pay if you bought the optional Stepped-Up Death Benefit
Rider and the Guaranteed Income Advantage Rider.
with PDBR and GIA Rider reflects the expenses you would
pay if you bought the Premier Death Benefit Rider and
the Guaranteed Income Advantage Rider.
These examples do not show past or future expenses.
Your actual expenses in any year may be more or less
than those shown here.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) 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 any Rider 86 70 120 257 86 165 165 257 23 70 120 257
with SDBR 88 76 130 277 88 139 175 277 25 76 130 277
with PDBR 89 80 137 292 89 143 182 292 26 80 137 292
with GIA Rider 89 79 135 287 89 142 180 287 26 79 135 287
with SDBR and GIA Rider 91 85 145 307 91 148 190 307 28 85 145 307
with PDBR and GIA Rider 92 90 152 321 92 153 197 321 29 90 152 321
------------------------------------------------------------------------------------------
Emerging Markets
without any Rider 90 83 142 301 90 146 187 301 27 83 142 301
with SDBR 92 89 152 320 92 152 197 320 29 89 152 320
with PDBR 94 94 159 334 94 157 204 334 31 94 159 334
with GIA Rider 93 92 157 330 93 155 202 330 30 92 157 330
with SDBR and GIA Rider 95 98 166 348 95 161 211 348 32 98 166 348
with PDBR and GIA Rider 97 102 174 362 97 165 219 362 34 102 174 362
------------------------------------------------------------------------------------------
Diversified Research
without any Rider 87 73 125 268 87 136 170 268 24 73 125 268
with SDBR 89 79 135 288 89 142 180 288 26 79 135 288
with PDBR 90 84 143 303 90 147 188 303 27 84 143 303
with GIA Rider 90 82 141 298 90 145 186 298 27 82 141 298
with SDBR and GIA Rider 92 88 150 317 92 151 195 317 29 88 150 317
with PDBR and GIA Rider 93 93 158 332 93 156 203 332 30 93 158 332
------------------------------------------------------------------------------------------
Small-Cap Equity
without any Rider 83 63 108 232 83 126 153 232 20 63 108 232
with SDBR 85 69 118 253 85 132 163 253 22 69 118 253
with PDBR 87 73 125 268 87 136 170 268 24 73 125 268
with GIA Rider 86 72 123 263 86 135 168 263 23 72 123 263
with SDBR and GIA Rider 88 78 133 283 88 141 178 283 25 78 133 283
with PDBR and GIA Rider 90 82 141 298 90 145 186 298 27 82 141 298
------------------------------------------------------------------------------------------
International Large-Cap
without any Rider 89 79 135 288 89 142 180 288 26 79 135 288
with SDBR 91 85 145 307 91 148 190 307 28 85 145 307
with PDBR 92 90 153 322 92 153 198 322 29 90 153 322
with GIA Rider 92 88 150 317 92 151 195 317 29 88 150 317
with SDBR and GIA Rider 94 94 160 336 94 157 205 336 31 94 160 336
with PDBR and GIA Rider 95 99 167 350 95 162 212 350 32 99 167 350
------------------------------------------------------------------------------------------
</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>
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
------------------------------------------------------------------------------------------
Equity
without any Rider 84 65 112 241 84 128 157 241 21 65 112 241
with SDBR 86 71 122 261 86 134 167 261 23 71 122 261
with PDBR 88 76 129 276 88 139 174 276 25 76 129 276
with GIA Rider 87 74 127 271 87 137 172 271 24 74 127 271
with SDBR and GIA Rider 89 80 137 291 89 143 182 291 26 80 137 291
with PDBR and GIA Rider 91 85 145 306 91 148 190 306 28 85 145 306
------------------------------------------------------------------------------------------
I-Net Tollkeeper
without any Rider 93 93 157 331 93 156 202 331 30 93 157 331
with SDBR 95 99 167 350 95 162 212 350 32 99 167 350
with PDBR 97 103 174 363 97 166 219 363 34 103 174 363
with GIA Rider 96 102 172 359 96 165 217 359 33 102 172 359
with SDBR and GIA Rider 98 107 182 377 98 170 227 377 35 107 182 377
with PDBR and GIA Rider 100 112 189 390 100 175 234 390 37 112 189 390
------------------------------------------------------------------------------------------
Multi-Strategy
without any Rider 84 65 112 242 84 128 157 242 21 65 112 242
with SDBR 86 71 122 262 86 134 167 262 23 71 122 262
with PDBR 88 76 130 277 88 139 175 277 25 76 130 277
with GIA Rider 87 75 128 272 87 138 173 272 24 75 128 272
with SDBR and GIA Rider 89 81 138 292 89 144 183 292 26 81 138 292
with PDBR and GIA Rider 91 85 145 307 91 148 190 307 28 85 145 307
------------------------------------------------------------------------------------------
Equity Income
without any Rider 84 65 112 242 84 128 157 242 21 65 112 242
with SDBR 86 71 122 262 86 134 167 262 23 71 122 262
with PDBR 88 76 130 277 88 139 175 277 25 76 130 277
with GIA Rider 87 75 128 272 87 138 173 272 24 75 128 272
with SDBR and GIA Rider 89 81 138 292 89 144 183 292 26 81 138 292
with PDBR and GIA Rider 91 85 145 307 91 148 190 307 28 85 145 307
------------------------------------------------------------------------------------------
Growth LT
without any Rider 85 68 117 251 85 131 162 251 22 68 117 251
with SDBR 87 74 127 271 87 137 172 271 24 74 127 271
with PDBR 89 79 134 286 89 142 179 286 26 79 134 286
with GIA Rider 88 77 132 281 88 140 177 281 25 77 132 281
with SDBR and GIA Rider 90 83 142 301 90 146 187 301 27 83 142 301
with PDBR and GIA Rider 92 88 149 315 92 151 194 315 29 88 149 315
------------------------------------------------------------------------------------------
Mid-Cap Value
without any Rider 86 72 124 265 86 135 169 265 23 72 124 265
with SDBR 88 78 134 285 88 141 179 285 25 78 134 285
with PDBR 90 83 141 300 90 146 186 300 27 83 141 300
with GIA Rider 90 81 139 295 90 144 184 295 27 81 139 295
with SDBR and GIA Rider 92 87 149 315 92 150 194 315 29 87 149 315
with PDBR and GIA Rider 93 92 156 329 93 155 201 329 30 92 156 329
------------------------------------------------------------------------------------------
Equity Index
without any Rider 80 53 91 198 80 116 136 198 17 53 91 198
with SDBR 82 59 102 220 82 122 147 220 19 59 102 220
with PDBR 84 64 109 235 84 127 154 235 21 64 109 235
with GIA Rider 83 62 107 231 83 125 152 231 20 62 107 231
with SDBR and GIA Rider 85 68 117 251 85 131 162 251 22 68 117 251
with PDBR and GIA Rider 87 73 125 266 87 136 170 266 24 73 125 266
------------------------------------------------------------------------------------------
Small-Cap Index
without any Rider 83 63 108 232 83 126 153 232 20 63 108 232
with SDBR 85 69 118 253 85 132 163 253 22 69 118 253
with PDBR 87 73 125 268 87 136 170 268 24 73 125 268
with GIA Rider 86 72 123 263 86 135 168 263 23 72 123 263
with SDBR and GIA Rider 88 78 133 283 88 141 178 283 25 78 133 283
with PDBR and GIA Rider 90 82 141 298 90 145 186 298 27 82 141 298
------------------------------------------------------------------------------------------
REIT
without any Rider 89 81 138 293 89 144 183 293 26 81 138 293
with SDBR 91 87 148 312 91 150 193 312 28 87 148 312
with PDBR 93 91 155 326 93 154 200 326 30 91 155 326
with GIA Rider 92 90 153 322 92 153 198 322 29 90 153 322
with SDBR and GIA Rider 94 96 163 341 94 159 208 341 31 96 163 341
with PDBR and GIA Rider 96 100 170 355 96 163 215 355 33 100 170 355
------------------------------------------------------------------------------------------
</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>
International Value
without any Rider 87 73 125 267 87 136 170 267 24 73 125 267
with SDBR 89 79 135 287 89 142 180 287 26 79 135 287
with PDBR 90 83 142 302 90 146 187 302 27 83 142 302
with GIA Rider 90 82 140 297 90 145 185 297 27 82 140 297
with SDBR and GIA Rider 92 88 150 316 92 151 195 316 29 88 150 316
with PDBR and GIA Rider 93 92 157 331 93 155 202 331 30 92 157 331
------------------------------------------------------------------------------------------
Government Securities
without any Rider 84 64 110 237 84 127 155 237 21 64 110 237
with SDBR 86 70 120 258 86 133 165 258 23 70 120 258
with PDBR 87 75 128 273 87 138 173 273 24 75 128 273
with GIA Rider 87 73 126 268 87 136 171 268 24 73 126 268
with SDBR and GIA Rider 89 79 136 288 89 142 181 288 26 79 136 288
with PDBR and GIA Rider 90 84 143 303 90 147 188 303 27 84 143 303
------------------------------------------------------------------------------------------
Managed Bond
without any Rider 84 64 110 236 84 127 155 236 21 64 110 236
with SDBR 86 70 120 257 86 133 165 257 23 70 120 257
with PDBR 87 74 127 272 87 137 172 272 24 74 127 272
with GIA Rider 87 73 125 267 87 136 170 267 24 73 125 267
with SDBR and GIA Rider 89 79 135 287 89 142 180 287 26 79 135 287
with PDBR and GIA Rider 90 84 143 302 90 147 188 302 27 84 143 302
------------------------------------------------------------------------------------------
Money Market
without any Rider 81 56 96 209 81 119 141 209 18 56 96 209
with SDBR 83 62 107 230 83 125 152 230 20 62 107 230
with PDBR 85 67 114 246 85 130 159 246 22 67 114 246
with GIA Rider 84 65 112 241 84 128 157 241 21 65 112 241
with SDBR and GIA Rider 86 71 122 261 86 134 167 261 23 71 122 261
with PDBR and GIA Rider 88 76 130 276 88 139 175 276 25 76 130 276
------------------------------------------------------------------------------------------
High Yield Bond
without any Rider 84 64 110 236 84 127 155 236 21 64 110 236
with SDBR 86 70 120 257 86 133 165 257 23 70 120 257
with PDBR 87 74 127 272 87 137 172 272 24 74 127 272
with GIA Rider 87 73 125 267 87 136 170 267 24 73 125 267
with SDBR and GIA Rider 89 79 135 287 89 142 180 287 26 79 135 287
with PDBR and GIA Rider 90 84 143 302 90 147 188 302 27 84 143 302
------------------------------------------------------------------------------------------
Large-Cap Value
without any Rider 86 70 120 257 86 133 165 257 23 70 120 257
with SDBR 88 76 130 277 88 139 175 277 25 76 130 277
with PDBR 89 80 137 292 89 143 182 292 26 80 137 292
with GIA Rider 89 79 135 287 89 142 180 287 26 79 135 287
with SDBR and GIA Rider 91 85 145 307 91 148 190 307 28 85 145 307
with PDBR and GIA Rider 92 90 152 321 92 153 197 321 29 90 152 321
------------------------------------------------------------------------------------------
</TABLE>
5
