497 1 0001.txt WRL FREEDOM EQUITY PROTECTOR(R) SUPPLEMENT DATED SEPTEMBER 1, 2000 TO PROSPECTUS DATED MAY 1, 2000 Effective September 1, 2000, the WRL Series Fund offers two new investment options under this Policy. Also the WRL Janus Global portfolio and subaccount are only available for investment to policyowners who purchased their Policy before September 1, 2000. Pending any prior approval by a state insurance regulatory authority, certain subaccounts and corresponding portfolios may not be available to residents of some states. THE FOLLOWING INFORMATION IS ADDED TO PAGE 5 OF THE PROSPECTUS UNDER THE HEADING "INVESTMENT OPTIONS": WRL SERIES FUND, INC. WRL Great Companies - Global(2) WRL Gabelli Global Growth THE FOLLOWING INFORMATION IS ADDED TO THE PORTFOLIO ANNUAL EXPENSE TABLE ON PAGE 14 OF THE PROSPECTUS:
------------------------------------- ---------------- ----------- ------------ -------------------- MANAGEMENT OTHER RULE 12B-1 TOTAL PORTFOLIO PORTFOLIO FEES EXPENSES FEES ANNUAL EXPENSES ------------------------------------- ---------------- ----------- ------------ -------------------- WRL Great Companies - Global(2) (10) 0.80% 0.20% N/A 1.00% ------------------------------------- ---------------- ----------- ------------ -------------------- WRL Gabelli Global Growth(10) 1.00% 0.20% N/A 1.20% ------------------------------------- ---------------- ----------- ------------ --------------------
THE FOLLOWING INFORMATION IS ADDED FOOTNOTE (3) ON PAGE 15 OF THE PROSPECTUS: Effective September 1, 2000, this portfolio is not available for investment to new policyowners. THE FOLLOWING IS ADDED TO THE TABLE IN FOOTNOTE (9) ON PAGE 15 OF THE PROSPECTUS:
------------------------------------- ---------------- -------------------- -------------------------- EXPENSE REIMBURSEMENT EXPENSE RATIO WITHOUT LIMIT AMOUNT REIMBURSEMENT ------------------------------------- ---------------- -------------------- -------------------------- WRL Great Companies - Global(2) 1.00% N/A N/A ------------------------------------- ---------------- -------------------- -------------------------- WRL Gabelli Global Growth 1.20% N/A N/A ------------------------------------- ---------------- -------------------- --------------------------
THE FOLLOWING FOOTNOTE IS ADDED TO PAGE 15 OF THE PROSPECTUS: (10) Because these portfolios did not commence operations until September 1, 2000, the percentages set forth as "Other Expenses" and "Total Annual Expenses" reflect estimates of "Other Expenses" for the first year of operations. THE FOLLOWING INFORMATION IS ADDED TO PAGES 18 - 21 OF THE PROSPECTUS UNDER THE HEADING "THE SEPARATE ACCOUNT AND THE PORTFOLIOS - THE FUNDS":
PORTFOLIO SUB-ADVISER OR ADVISER INVESTMENT OBJECTIVE WRL Great Companies - Global(2) Great Companies, L.L.C. Seeks long-term growth of capital in a manner consistent with preservation of capital. WRL Gabelli Global Growth Gabelli Asset Management Company Seeks to provide investors with appreciation of capital. Current income is a secondary objective.
THE FOLLOWING PARAGRAPH REPLACES THE SECOND PARAGRAPH ON PAGE 67 OF THE PROSPECTUS UNDER THE HEADING "PERFORMANCE DATA - RATES OF RETURN": Because the WRL Great Companies - America(SM), WRL Great Companies - Technology(SM), WRL Value Line Aggressive Growth, WRL Great Companies - Global(2), WRL Gabelli Global Growth portfolios, Fidelity VIP Equity-Income Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2 had not commenced operations as of December 31, 1999, the above chart does not reflect rates of return for these portfolios. THE FOLLOWING PARAGRAPH REPLACES THE LAST PARAGRAPH ON PAGE 77 OF THE PROSPECTUS UNDER THE HEADING "PERFORMANCE DATA - HYPOTHETICAL ILLUSTRATIONS BASED ON SUBACCOUNT PERFORMANCE": Because the WRL Goldman Sachs Growth, WRL Goldman Sachs Small Cap, WRL T. Rowe Price Dividend Growth, WRL T. Rowe Price Small Cap, WRL Salomon All Cap, WRL Pilgrim Baxter Mid Cap Growth and WRL Dreyfus Mid Cap subaccounts did not commence operations until May 3, 1999, and the Fidelity VIP Equity-Income Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2, WRL Great Companies - America(SM), WRL Great Companies - Technology(SM), and WRL Value Line Aggressive Growth subaccounts did not commence operations until May 1, 2000, and the WRL Great Companies - Global(2), WRL Gabelli Global Growth subaccounts did not commence operations until September 1, 2000, there are no hypothetical illustrations for these subaccounts. THE FOLLOWING PARAGRAPH REPLACES THE FIFTH PARAGRAPH ON PAGE 79 UNDER THE HEADING "ADDITIONAL INFORMATION - LEGAL PROCEEDINGS": Western Reserve, like other life insurance companies, is involved in lawsuits, including class action lawsuits. In some lawsuits involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, at the present time, it appears that there are no pending or threatened lawsuits that are likely to have a material adverse impact on the separate account, on AFSG's ability to perform under its principal underwriting agreement, or on Western Reserve's ability to meet its obligations under the Policy. THE FOLLOWING REPLACES THE FIFTH PARAGRAPH ON PAGE 84 OF THE PROSPECTUS UNDER THE HEADING "APPENDIX A - ILLUSTRATIONS": Because the WRL Great Companies - America(SM), WRL Great Companies - Technology(SM), WRL Value Line Aggressive Growth, WRL Great Companies - Global(2), WRL Gabelli Global Growth portfolios, Fidelity VIP Equity-Income Portfolio - Service Class 2, Fidelity VIP II Contrafund(R) Portfolio - Service Class 2 and Fidelity VIP III Growth Opportunities Portfolio - Service Class 2 had not commenced operations as of December 31, 1999, the estimated average annual portfolio expense level reflects estimated expenses for each of these portfolios for 2000. THE FOLLOWING INFORMATION REPLACES THE INFORMATION ON PAGES 86-87 OF THE PROSPECTUS UNDER THE HEADING "APPENDIX A - ILLUSTRATIONS":
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE HYPOTHETICAL ILLUSTRATIONS MALE ISSUE AGE 35 Specified Amount $165,000 Ultimate Select Class Annual Premium $2,000 Option Type A Using Current Cost of Insurance Rates ------------------- ----------------- ------------------------------------------------------------------------------------- DEATH BENEFIT ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ----------------- ------------------------------------------------------------------------------------- END OF POLICY PREMIUM YEAR ACCUMULATED AT 0% (GROSS) 6% (GROSS) 12% (GROSS) 5% -1.84% (NET) 4.16% (NET) 10.16 (NET) ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 1 2,100 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 2 4,305 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 3 6,620 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 4 9,051 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 5 11,604 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 6 14,284 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 7 17,098 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 8 20,053 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 9 23,156 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 10 26,414 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 15 45,315 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 20 69,439 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 30 (AGE 65) 139,522 165,000 165,000 347,113 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 40 (AGE 75) 253,680 165,000 165,000 822,374 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 50 (AGE 85) 439,631 * 246,736 2,129,741 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 60 (AGE 95) 742,526 * 372,900 5,309,581 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- ------------------- ------------------------------------------------------------------------------------- CASH VALUE ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ------------------------------------------------------------------------------------- END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS) YEAR -1.84% (NET) 4.16% (NET) 10.16 (NET) ------------------- ----------------------------- --------------------------- --------------------------- 1 1,534 1,637 1,740 ------------------- ----------------------------- --------------------------- --------------------------- 2 3,036 3,338 3,653 ------------------- ----------------------------- --------------------------- --------------------------- 3 4,504 5,103 5,753 ------------------- ----------------------------- --------------------------- --------------------------- 4 5,938 6,936 8,062 ------------------- ----------------------------- --------------------------- --------------------------- 5 7,330 8,830 10,591 ------------------- ----------------------------- --------------------------- --------------------------- 6 8,679 10,786 13,361 ------------------- ----------------------------- --------------------------- --------------------------- 7 9,983 12,803 16,395 ------------------- ----------------------------- --------------------------- --------------------------- 8 11,243 14,886 19,721 ------------------- ----------------------------- --------------------------- --------------------------- 9 12,437 17,016 23,348 ------------------- ----------------------------- --------------------------- --------------------------- 10 13,577 19,203 27,319 ------------------- ----------------------------- --------------------------- --------------------------- 15 18,736 31,452 54,189 ------------------- ----------------------------- --------------------------- --------------------------- 20 22,445 45,648 97,662 ------------------- ----------------------------- --------------------------- --------------------------- 30 (AGE 65) 27,315 84,531 284,519 ------------------- ----------------------------- --------------------------- --------------------------- 40 (AGE 75) 23,221 142,790 768,574 ------------------- ----------------------------- --------------------------- --------------------------- 50 (AGE 85) * 234,986 2,028,325 ------------------- ----------------------------- --------------------------- --------------------------- 60 (AGE 95) * 369,208 5,257,011 ------------------- ----------------------------- --------------------------- ---------------------------
------------------- ------------------------------------------------------------------------------------- NET SURRENDER VALUE ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ------------------------------------------------------------------------------------- END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS) YEAR -1.84% (NET) 4.16% (NET) 10.16 (NET) ------------------- ----------------------------- --------------------------- --------------------------- 1 255 357 460 ------------------- ----------------------------- --------------------------- --------------------------- 2 1,673 1,975 2,289 ------------------- ----------------------------- --------------------------- --------------------------- 3 3,056 3,655 4,305 ------------------- ----------------------------- --------------------------- --------------------------- 4 4,407 5,405 6,531 ------------------- ----------------------------- --------------------------- --------------------------- 5 5,715 7,214 8,975 ------------------- ----------------------------- --------------------------- --------------------------- 6 6,980 9,086 11,661 ------------------- ----------------------------- --------------------------- --------------------------- 7 8,200 11,020 14,611 ------------------- ----------------------------- --------------------------- --------------------------- 8 9,376 13,019 17,853 ------------------- ----------------------------- --------------------------- --------------------------- 9 10,486 15,064 21,396 ------------------- ----------------------------- --------------------------- --------------------------- 10 11,541 17,168 25,283 ------------------- ----------------------------- --------------------------- --------------------------- 15 18,736 31,452 54,189 ------------------- ----------------------------- --------------------------- --------------------------- 20 22,445 45,648 97,662 ------------------- ----------------------------- --------------------------- --------------------------- 30 (AGE 65) 27,315 84,531 284,519 ------------------- ----------------------------- --------------------------- --------------------------- 40 (AGE 75) 23,221 142,790 768,574 ------------------- ----------------------------- --------------------------- --------------------------- 50 (AGE 85) * 234,986 2,028,325 ------------------- ----------------------------- --------------------------- --------------------------- 60 (AGE 95) * 369,208 5,257,011 ------------------- ----------------------------- --------------------------- ---------------------------
* In the absence of an additional payment, the Policy would lapse.
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE HYPOTHETICAL ILLUSTRATIONS MALE ISSUE AGE 35 Specified Amount $165,000 Ultimate Select Class Annual Premium $2,000 Option Type A Using Guaranteed Cost of Insurance Rates ------------------- ----------------- ------------------------------------------------------------------------------------- DEATH BENEFIT ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- END OF POLICY PREMIUM 0% (GROSS) 6% (GROSS) 12% (GROSS) YEAR ACCUMULATED AT -1.84% (NET) 4.16% (NET) 10.16 (NET) 5% ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 1 2,100 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 2 4,305 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 3 6,620 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 4 9,051 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 5 11,604 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 6 14,284 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 7 17,098 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 8 20,053 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 9 23,156 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 10 26,414 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 15 45,315 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 20 69,439 165,000 165,000 165,000 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 30 (AGE 65) 139,522 165,000 165,000 332,603 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 40 (AGE 75) 253,680 * 165,000 767,985 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 50 (AGE 85) 439,631 * 165,000 1,928,139 ------------------- ----------------- ---------------------------- ---------------------------- --------------------------- 60 (AGE 95) 742,526 * 208,291 4,541,319 ------------------- ----------------- ---------------------------- ---------------------------- ---------------------------
------------------- ------------------------------------------------------------------------------------- CASH VALUE ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ----------------------------- --------------------------- --------------------------- END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS) YEAR -1.84% (NET) 4.16% (NET) 10.16 (NET) ------------------- ----------------------------- --------------------------- --------------------------- 1 1,512 1,614 1,716 ------------------- ----------------------------- --------------------------- --------------------------- 2 2,985 3,284 3,595 ------------------- ----------------------------- --------------------------- --------------------------- 3 4,417 5,009 5,651 ------------------- ----------------------------- --------------------------- --------------------------- 4 5,806 6,790 7,900 ------------------- ----------------------------- --------------------------- --------------------------- 5 7,151 8,626 10,360 ------------------- ----------------------------- --------------------------- --------------------------- 6 8,450 10,519 13,052 ------------------- ----------------------------- --------------------------- --------------------------- 7 9,701 12,468 15,995 ------------------- ----------------------------- --------------------------- --------------------------- 8 10,905 14,475 19,218 ------------------- ----------------------------- --------------------------- --------------------------- 9 12,058 16,539 22,746 ------------------- ----------------------------- --------------------------- --------------------------- 10 13,161 18,664 26,613 ------------------- ----------------------------- --------------------------- --------------------------- 15 18,168 30,582 52,821 ------------------- ----------------------------- --------------------------- --------------------------- 20 21,419 44,067 94,999 ------------------- ----------------------------- --------------------------- --------------------------- 30 (AGE 65) 18,249 74,496 272,625 ------------------- ----------------------------- --------------------------- --------------------------- 40 (AGE 75) * 106,111 717,743 ------------------- ----------------------------- --------------------------- --------------------------- 50 (AGE 85) * 137,819 1,836,323 ------------------- ----------------------------- --------------------------- --------------------------- 60 (AGE 95) * 206,229 4,496,356 ------------------- ----------------------------- --------------------------- --------------------------- ------------------- ------------------------------------------------------------------------------------- NET SURRENDER VALUE ASSUMING HYPOTHETICAL GROSS AND NET ANNUAL INVESTMENT RETURN OF ------------------- ------------------------------------------------------------------------------------- END OF POLICY 0% (GROSS) 6% (GROSS) 12% (GROSS) YEAR -1.84% (NET) 4.16% (NET) 10.16 (NET) ------------------- ----------------------------- --------------------------- --------------------------- 1 232 334 436 ------------------- ----------------------------- --------------------------- --------------------------- 2 1,622 1,921 2,232 ------------------- ----------------------------- --------------------------- --------------------------- 3 2,970 3,562 4,204 ------------------- ----------------------------- --------------------------- --------------------------- 4 4,275 5,258 6,369 ------------------- ----------------------------- --------------------------- --------------------------- 5 5,535 7,011 8,745 ------------------- ----------------------------- --------------------------- --------------------------- 6 6,751 8,820 11,352 ------------------- ----------------------------- --------------------------- --------------------------- 7 7,918 10,684 14,212 ------------------- ----------------------------- --------------------------- --------------------------- 8 9,037 12,607 17,351 ------------------- ----------------------------- --------------------------- --------------------------- 9 10,106 14,587 20,795 ------------------- ----------------------------- --------------------------- --------------------------- 10 11,126 16,628 24,577 ------------------- ----------------------------- --------------------------- --------------------------- 15 18,168 30,582 52,821 ------------------- ----------------------------- --------------------------- --------------------------- 20 21,419 44,067 94,999 ------------------- ----------------------------- --------------------------- --------------------------- 30 (AGE 65) 18,249 74,496 272,625 ------------------- ----------------------------- --------------------------- --------------------------- 40 (AGE 75) * 106,111 717,743 ------------------- ----------------------------- --------------------------- --------------------------- 50 (AGE 85) * 137,819 1,836,323 ------------------- ----------------------------- --------------------------- --------------------------- 60 (AGE 95) * 206,229 4,496,356 ------------------- ----------------------------- --------------------------- ---------------------------
* In the absence of an additional payment, the Policy would lapse. WRL00032-9/2000