MONY VARIABLE UNIVERSAL LIFE

Minimum

Maximum

Total Annual Portfolio Operating Expenses

(including management fees, distribution and/or service or 12b-1 fees, and other expenses)

497 1 d497.htm MONY VARIABLE UNIVERSAL LIFE MONY VARIABLE UNIVERSAL LIFE

MONY Variable Universal Life

Prospectus Portfolio

Flexible Premium Variable Universal Life Insurance Policy

Issued by

MONY Life Insurance Company



AIM Variable Insurance Funds		Lord Abbett Series Fund

The Alger American Fund		MFS^® Variable Insurance Trust^SM

Dreyfus Investment Portfolios		MONY Series Fund, Inc.

Enterprise Accumulation Trust		Oppenheimer Variable Account Funds

Franklin Templeton Variable Insurance Products Trust		PBHG Insurance Series Fund PIMCO Variable Insurance Trust
Janus Aspen Series		The Universal Institutional Funds, Inc.

May 3, 2004

MONY VARIABLE ACCOUNT L

PROSPECTUS

DATED MAY 3, 2004 FOR INDIVIDUAL

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY

Issued by

MONY Life Insurance Company

1740 Broadway

New York, New York 10019

This prospectus describes an individual flexible premium variable life insurance policy offered by MONY Life Insurance Company (“we,” “us,” “our,” or the “Company”). The Policy provides life insurance protection and premium flexibility. The Policy described in this prospectus is only available in New York.

We guarantee that your death benefit will never be less than the amount specified in your Policy adjusted by any requested increases or decreases in your insurance protection, and less any debt you owe us.

Investments (premium payments) may accumulate on a variable basis, fixed basis, or both. If you choose the variable option, we will invest your premium payments in your choice of subaccounts of our variable account. Each subaccount invests in shares of the following portfolios:

AIM Variable Insurance Funds – Series I Shares

¨ AIM V.I. Basic Value Fund
¨ AIM V.I. Mid Cap Core Equity Fund

The Alger American Fund – Class 0 Shares

¨ Alger American Balanced Portfolio
¨ Alger American MidCap Growth Portfolio

Dreyfus Investment Portfolios – Service Shares

¨ Small Cap Stock Index Portfolio

Enterprise Accumulation Trust

¨      Equity Income Portfolio
¨      Growth Portfolio
¨      Growth and Income Portfolio
¨      Managed Portfolio
¨      Multi-Cap Growth Portfolio
¨      Short Duration Bond Portfolio
¨      Small Company Growth Portfolio
¨      Small Company Value Portfolio
¨      Total Return Portfolio

Franklin Templeton Variable Insurance Products
Trust – Class 2

¨      Franklin Income Securities Fund
¨      Franklin Rising Dividends Securities Fund
¨      Franklin Zero Coupon Fund 2010

Janus Aspen Series – Service Shares

¨      Capital Appreciation Portfolio
¨      Flexible Income Portfolio
¨      International Growth Portfolio

Lord Abbett Series Fund – Class VC

¨      Bond-Debenture Portfolio
¨      Growth and Income Portfolio
¨      Mid-Cap Value Portfolio

MFS^® Variable Insurance Trust^SM – Initial Class

¨      MFS^®Mid Cap Growth Series
¨      MFS^® Total Return Series
¨      MFS^® Utilities Series

MONY Series Fund, Inc.

¨      Government Series Portfolio
¨      Long Term Bond Portfolio
¨      Money Market Portfolio

Oppenheimer Variable Account Funds – Service
Class

¨ Oppenheimer Global Securities Fund/VA
¨ Oppenheimer Main Street^®Fund/VA

PBHG Insurance Series Fund

¨ PBHG Mid-Cap Portfolio
¨ PBHG Select Value Portfolio

PIMCO Variable Insurance Trust –
Administrative Class

¨      Global Bond Portfolio (Unhedged)
¨      Real Return Portfolio
¨      StocksPLUS Growth and Income Portfolio

The Universal Institutional Funds, Inc. – Share
Class I

¨ U.S. Real Estate Portfolio

You bear the investment risk if you allocate your premium payments to the variable account.

If you choose the fixed option, we will invest your premium payments in the guaranteed interest account where your payments will grow at the rate of at least 4.0% annually. We take the investment risk of premium payments allocated to the guaranteed interest account.

The amount of life insurance may, and your Policy’s value will, depend on the investment experience of the options you choose.

If you already own a life insurance policy, it might not be to your advantage to replace your existing insurance coverage with this Policy or to finance the purchase or maintenance of this Policy through a loan or through withdrawals from another policy.

An investment in this Policy is not a bank deposit. Neither the U.S. government nor any governmental agency insures or guarantees your investment in the Policy.

The Securities and Exchange Commission has not approved or disapproved this Policy or determined that this prospectus is accurate or complete. Anyone who tells you otherwise is committing a federal crime.

TABLE OF CONTENTS


BENEFIT AND RISK SUMMARY		1
POLICY BENEFITS		1
Life Insurance Protection		1
Cash Benefits		1
Variety of Investment Options		2
Supplemental Insurance Benefits		2
POLICY RISKS		2
Possible Adverse Tax Consequences		2
Policy Termination		2
Partial Surrender Limitations		3
Effects of Policy Loans		3
Policy is Suited Only for Long-Term Protection		3
PORTFOLIO RISKS		3
Fee Table		4
ILLUSTRATIONS		11
MONY LIFE INSURANCE COMPANY		21
MONY VARIABLE ACCOUNT L		21
Changes To The Variable Account		21
THE PORTFOLIOS		21
Your Right To Vote Portfolio Shares		25
Disregard Of Voting Instructions		25
THE GUARANTEED INTEREST ACCOUNT		25
THE POLICY		26
Applying For A Policy		26
Temporary Insurance Coverage		26
Backdating		27
Owner		27
Canceling the Policy		27
PREMIUMS		27
General		27
Initial Premium		28
Tax-Free “Section 1035” Exchanges		28
Scheduled Premiums		28
Electronic Payments		29
Unscheduled Premiums		29
Repayment Of Outstanding Debt		29
Allocating Premiums		29
HOW YOUR FUND VALUE VARIES		30
Fund Value		30
Cash Value		30
Subaccount Values		30
Subaccount Unit Value		30
Guaranteed Interest Account Value		31
TRANSFERS		31
Transfers By Third Parties		31
DEATH BENEFITS		32
Amount Of Death Benefit Proceeds Payable		32
Death Benefit Options		32
Changes in Death Benefit Options		33
Changing the Specified Amount		34


Increases		34
Decreases		34
OTHER OPTIONAL INSURANCE BENEFITS		35
Enhanced Maturity Extension Rider		35
Term Life Term Rider		35
Spouse’s Yearly Renewable Term Rider		36
Purchase Option Rider		36
Waiver of Monthly Deduction Rider		36
Children’s Term Life Insurance Rider		36
BENEFITS AT MATURITY		36
SURRENDERS AND PARTIAL SURRENDERS		36
Surrenders		36
Partial Surrenders		37
Effect Of Partial Surrenders On Fund Value And Death Benefit Proceeds		37
LOANS		37
Effects Of Policy Loans		38
TERMINATION		39
General		39
Special Rules For First Three Policy Years		39
Amounts You Must Pay To Keep Your Policy In Effect		39
Your Policy Will Remain In Effect During The Grace Period		40
Reinstatement		40
PAYMENTS AND TELEPHONE/FACSIMILE/WEB TRANSACTIONS		40
Telephone/Facsimile/Web Transactions		41
CHARGES AND DEDUCTIONS		41
Deductions From Premium Payments		42
Deductions From The Variable Account		43
Deductions From Fund Value – The Monthly Deduction		43
Transaction Charges		45
TAX CONSIDERATIONS		46
Introduction		46
Tax Status of the Policy		46
Treatment of Policy Benefits		46
Our Income Taxes		48
OTHER POLICY INFORMATION		49
Exchange Privilege		49
Paid-up Insurance		49
Assignment		49
Settlement Options		49
MISSTATEMENT OF AGE OR SEX		49
SUICIDE EXCLUSION		49
INCONTESTABILITY		50
Other Changes to Your Policy		50
ADDITIONAL INFORMATION		50
Sale Of The Policies		50
Other Information		51
Legal Proceedings		51
POLICY ILLUSTRATIONS		51
FINANCIAL STATEMENTS		52
GLOSSARY		52
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS		54

BENEFIT AND RISK SUMMARY

This summary provides with a brief overview of the benefits and risks associated with the Policy. You should read the entire prospectus before purchasing the Policy. Important details regarding the Policy are contained in other sections of this Prospectus. Please consult your agent and refer to your Policy for details. If you are already entitled to favorable tax treatment, you should satisfy yourself that this Policy meets your other financial goals before you buy it. For your convenience, we have defined certain terms we use in the Glossary at the end of the Prospectus. We only offer this Policy in New York.

Policy Benefits

Life Insurance Protection

•	The Policy provides a means for you to accumulate life insurance that can generally pass free of federal and state income taxes to your Beneficiaries.

•

We will pay your Beneficiary a Death Benefit after the death of the Insured while this Policy is in effect. There are three decisions you must make about the Death Benefit. First, when you apply for your Policy, you must decide how much life insurance coverage (the Specified Amount) you need on the Insured’s life. Second, you must choose a Death Benefit option. Finally, you must decide which death benefit compliance test you would like – the Cash Value Accumulation Test (this test generally will not limit the amount you pay into the Policy), or the Guideline Premium/Cash Value Corridor Test.

•

We offer two Death Benefit options. Under Option 1, the Death Benefit equals the greater of: (a) the Specified Amount in force on the date of the Insured’s death; or (b) the Fund Value on the date of the Insured’s death multiplied by a death benefit percentage. Under Option 2, the Death Benefit equals the greater of: (a) the Specified Amount in force on the date of the Insured’s death plus the Fund Value on the date of the Insured’s death; or (b) the Fund Value on the date of the Insured’s death multiplied by a death benefit percentage.

•	You may change the Specified Amount and the Death Benefit option that you selected. Changing the Specified Amount or the Death Benefit Option may have tax consequences.

•	During the grace period, your Policy (including the Death Benefit) will remain in effect subject to certain conditions. See “Termination.”

Cash Benefits

•

You may borrow against your Policy for up to 90% of your Policy’s Cash Value, less any accrued loan interest due on the next Policy anniversary. If you do, we will transfer an amount equal to the loan from the Subaccounts and the Guaranteed Interest Account to the Loan Account as collateral for the loan. We charge interest on the loan, and we credit interest on amounts in the Loan Account. We deduct Outstanding Debt (i.e., the amount of your loan plus interest due) from Death Benefit proceeds and from the amount you receive at surrender. A loan may have tax consequences.

•

You may request a partial surrender at any time before the maturity date. Partial surrenders must be for at least $500. A partial surrender may decrease the Specified Amount and may decrease your Death Benefit, and we may assess a $10 partial surrender fee against your remaining Fund Value. Also, a partial surrender may have tax consequences.

•

While the Insured is alive, you can surrender your Policy at any time for its Cash Value. However, if you surrender your Policy within 30 days of a policy anniversary, we will calculate the Fund Value in the Guaranteed Interest Account so that it will not be less than your Fund Value in the Guaranteed Interest Account on that policy anniversary, as adjusted for transactions since that policy anniversary. A surrender charge may apply. A surrender may have tax consequences.

•	If the Insured is alive on the maturity date, we will pay the Cash Value to the Owner unless you elected to defer the maturity date under the Policy provisions or the provisions of the Enhanced Maturity Extension Rider.

•	You decide how we pay proceeds under the Policy. We may pay the Cash Value and the Death Benefit proceeds as a lump sum or under one of our settlement options.

Variety of Investment Options

•	You may allocate your net premiums (your premium payment less the deductions we take) among the Subaccounts and the Guaranteed Interest Account.

•	The Subaccounts invest in a wide variety of Funds that cover a broad spectrum of investment objectives and risk tolerances. Amounts invested in the Subaccounts will go up and down in value depending on the investment experience of the Fund portfolio in which the Subaccount is invested.

•	The Guaranteed Interest Account is part of our General Account. We will credit interest of at least 4.0% annually on amounts invested in the Guaranteed Interest Account.

•	As your needs or financial goals change, you can change your investment mix. You may transfer Fund Value among any of the Subaccounts or between the Subaccounts and the Guaranteed Interest Account while continuing to defer current income taxes.

Supplemental Insurance Benefits

•	You may add additional insurance and other benefits to your Policy by rider. Please see “Other Benefits” for a description of the other optional benefits that we offer.

Policy Risks

Possible Adverse Tax Consequences

•

In order to qualify as a life insurance contract for federal income tax purposes and to receive the tax treatment normally accorded life insurance contracts under federal tax law, a policy must satisfy certain requirements which are set forth in the Internal Revenue Code. We expect that the Policy will generally be deemed a life insurance contract under federal tax law, and that the death benefit paid to the beneficiary will generally not be subject to federal income tax. However, due to lack of guidance, there is less certainty in this regard with respect to Policies issued on a special risk class basis and policies with term riders added and it is not clear whether such policies will in all cases satisfy the applicable requirements particularly if you pay the full amount of premiums permitted under the policy and you select the guideline premium/cash value corridor test.

•

Depending on the total amount of premiums you pay, your Policy may be treated as a modified endowment contract (MEC) under federal tax laws. If this occurs, partial or full surrenders, pledges, as well as Policy loans, will be taxed as ordinary income to the extent there are earnings in the Policy. In addition, a 10% penalty tax may be imposed on the taxable portion of certain partial or full surrenders, pledges and loans. If the Policy is not treated as a MEC, full and partial surrenders will not be subject to tax to the extent of your investment in the Policy. Amounts in excess of your investment in the Policy, while subject to tax as ordinary income, will not be subject to a 10% penalty tax, and pledges and loans should not be taxable. You should consult a qualified tax advisor for assistance in all tax matters involving your Policy.

Policy Termination

•	If the value of your Policy can no longer cover the Policy’s monthly charges and any loan interest due, your Policy will be in default and a grace period will begin. There is a risk that if partial surrenders, loans, and

charges reduce your Cash Value to too low an amount and/or if the investment experience of your selected Subaccounts is unfavorable, then your Policy could terminate. In that case, you will have a 61-day grace period to make a sufficient payment. If you do not make a sufficient payment before the grace period ends, your Policy will terminate without value; all rights and benefits under your Policy, including your insurance coverage, will end. (Special rules, however, apply during the first three Policy Years—your Policy will not lapse if your Policy’s Cash Value is greater than zero or the premiums you paid minus partial surrenders and Outstanding Debt is of a certain amount). After termination, you may reinstate your Policy within five years subject to certain conditions.

Partial Surrender Limitations

•

The minimum partial surrender amount is $500 (plus the applicable partial surrender fee). There must be at least $500 remaining in Cash Value after a partial surrender. Partial surrenders may reduce the Death Benefit and the Specified Amount in your Policy, and will reduce the Fund Value of your Policy. A partial surrender charge of $10 will apply to the remaining Fund Value. Federal income taxes and a penalty tax may apply to partial surrenders.

Effects of Policy Loans

•

A Policy loan, whether or not repaid, will affect your Policy’s Fund Value over time because we transfer the amount of the loan from the Subaccounts and/or the Guaranteed Interest Account to the Loan Account and hold it as collateral. We then credit a fixed interest rate to the loan collateral. As a result, the loan collateral does not participate in the investment results of the Subaccounts and does not participate in the interest credited to the Guaranteed Interest Account. The longer the loan is outstanding, the greater the effect is likely to be. Depending on the performance of the Subaccounts and the extent, if any, of the difference in the interest rates credited to the Guaranteed Interest Account and the Loan Account, the effect could be favorable or unfavorable.

A Policy loan also reduces Death Benefit proceeds. A loan could make it more likely that a Policy would terminate. There is a risk if the loan reduces your Cash Value to too low an amount and investment experience is unfavorable, that the Policy will lapse, resulting in adverse tax consequences. You must submit a sufficient payment during the grace period to avoid the Policy’s termination without value and the end of insurance coverage.

Policy is Suited Only for Long-Term Protection

•	We designed the Policy to meet long-term financial goals. You should not purchase this Policy if you intend to surrender all or part of your Fund Value in the near future. Please note, if you surrender your Policy in the early Policy Years, the surrender charge may be significant.

Portfolio Risks

The value of your Policy is tied to the investment performance of the Fund portfolios and allocation percentages you choose. If those portfolios perform poorly, the value of your Policy will decrease. Values allocated to the portfolios are not guaranteed. Because we continue to deduct charges from Fund Value, if investment results are too low, the Cash Value of your Policy may fall to zero. In that case, the Policy will terminate without value and insurance coverage will no longer be in effect, unless you make an additional payment sufficient to prevent a termination during the 61-day grace period. On the other hand, if investment experience is sufficiently favorable and you have kept the Policy in force for a substantial time, you may be able to draw upon Fund Value through partial surrenders and Policy loans. Poor investment performance may also lower the amount of the death benefit payable under the Policy. The Funds provide a comprehensive description of the risks of each portfolio in their prospectuses.

Fee Table

The following tables describe the fees and expenses you may pay when buying, owning, and surrendering the Policy. If the amount of the charge depends on the personal characteristics of the Insured, then the fee table lists the minimum and maximum charges we assess under the Policy, and the fees and charges of an Insured with the characteristics set forth below. These charges may not be typical of the charges you will pay.

The first table describes the fees and expenses that you may pay when buying the Policy, paying premiums, surrendering or taking a partial surrender from the Policy, transferring Fund Value between the Subaccounts and the Guaranteed Interest Account or taking a loan.


Transaction Fees

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Sales Charge¹	Upon receipt of each premium payment	Up to 5.45% of premium paid	Up to 5.45% of premium paid


Premium Tax Charge²	Upon receipt of each premium payment	0.8% of premium paid	0.8% of premium paid


DAC Tax Charge²	Upon receipt of each premium payment	1.25% of premium paid	1.25% of premium paid³


Surrender Charge⁴	Upon surrender of the Policy

• Minimum and Maximum Charge⁵		$2.30 to $38.08 per $1,000 Specified Amount of Fund Value surrendered	$2.30 to $38.08 per $1,000 Specified Amount of Fund Value surrendered

• Charge for a male Insured, issue age 35, standard, non-tobacco, Specified Amount of $250,000, 0 years after Policy issue, non-individual qualified plan		$5.12 per $1,000 Specified Amount of Fund Value surrendered	$5.12 per $1,000 Specified Amount of Fund Value surrendered


Partial Surrender Fee	Upon a partial surrender of the Policy	$10	$10


Transfer Fee	Upon transfer of Fund Value	$25 for each transfer of Fund Value after the 12th transfer in a Policy Year	We currently do not assess this charge.


Illustration Projection Report Charge	When Requested	$25	$0

The next two tables describe the fees and expenses that you will pay periodically during the time that you own the Policy, not including portfolio fees and expenses.


Periodic Charges Other Than Portfolio Operating Expenses

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Cost of Insurance Charge⁶	On Policy Date and each Monthly Anniversary Day

• Minimum and Maximum Charge⁷		$.06 to $83.33 per $1,000 of amount at risk	$.01 to $15.46 per $1,000 of amount at risk

• Charge for a 35 year old, male, standard, non-tobacco, Specified Amount of $250,000, 0 years after Policy issue, non-individual qualified plan		$.14 per $1,000 of amount at risk	$.11 per $1,000 of amount at risk


Administrative Charge	On Policy Date and each Monthly Anniversary Day	$25.00 for First Policy Year and $7.50 in Policy Years 2+	$25.00 for First Policy Year and $7.50 in Policy Years 2+


Monthly Expense Charge⁸	On Policy Date and each Monthly Anniversary Day during first 4 Policy Years and for 4 years following an increase in Specified Amount for each new coverage segment¹⁰

• Minimum and Maximum Charge⁹		$0.07 to $.30 per $1,000 Specified Amount	$0.07 to $.30 per $1,000 Specified Amount

• Charge for a male Insured, issue age 35, standard, non-tobacco, Specified Amount of $250,000, 0 years after Policy issue, non-individual qualified plan		$0.08 per $1,000 Specified Amount	$0.08 per $1,000 Specified Amount


Periodic Charges Other Than Portfolio Operating Expenses

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Mortality and Expense Charge	Daily	0.35% annually of Fund Value in each Subaccount	0.35% annually of Fund Value in each Subaccount for Policy years 1-20 (0.10% for Policy years 21+)

Loan Interest Spread¹¹	On each Policy anniversary after a loan is taken, or upon death, surrender, or lapse if earlier	1.00% of Account Value in the Loan Account for Policy years 1-20 (0.25% for Policy years 21+)	1.00% of Account Value in the Loan Account for Policy years 1-20 (0% for Policy years 21+)


Optional Rider Charges

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Cost of Insurance Charge for Term Life Term Rider⁶	On date of issuance of rider and each Monthly Anniversary Day

• Minimum and Maximum Charge¹²		$0.08 to $10.45 per $1,000 of term insurance	$0.04 to $5.49 per $1,000 of term insurance

• Charge for a 35 year-old male, non-tobacco, 0 years after rider issue		$0.14 per $1,000 of term insurance	$0.07 per $1,000 of term insurance


Enhanced Maturity Extension Rider	On issuance of rider, and each Monthly Anniversary Day	$0.01 per $1,000 Specified Amount plus term insurance (same for all insureds)	$0.01 per $1,000 Specified Amount plus term insurance (same for all insureds)


Optional Rider Charges

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Spouse’s Yearly Renewable Term Rider¹³	On issuance of rider and each Monthly Anniversary Day

• Minimum and Maximum Charge¹⁴		$0.07 to $6.60 per $1,000 of term insurance	$0.07 to $6.60 per $1,000 of term insurance


• Charge for a 35 year old, year old female, non tobacco standard with a of Specified Amount in force of $250,000, 0 years from the issue date of the rider		$0.12 per $1,000 of term insurance	$0.12 per $1,000 of term insurance


Purchase Option Rider¹⁵	On issuance of rider and on each Monthly Anniversary Day until the policy anniversary following the 49th birthday of the Insured

• Minimum and Maximum Charge¹⁶		$0.05 to $0.29 per $1,000 of purchase option insurance (Attained Age 59)	$0.05 to $0.29 per $1,000 of purchase option insurance (Attained Age 59)

• Charge for a 35 year old		$0.25 per $1,000 of purchase option insurance	$0.25 per $ 1,000 of purchase option insurance


Optional Rider Charges

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Waiver of Monthly Deduction Rider¹⁷	On issuance of rider and on each Monthly Anniversary Day until the policy anniversary following the 65th anniversary birthday of the Insured. For issue ages under 5, charges commence with the policy anniversary following the Insured’s 5th birthday


• Minimum and Maximum Charge¹⁸		$0 to $0.15 per $1,000 of Specified Amount plus Term Insurance	$0 to $0.15 per $1,000 of Specified Amount plus Term Insurance

• Charge for a 35 year old, male, non-tobacco standard with a Specified Amount in force of $250,000, 0 years from the issue date of the rider		$0.01 per $1,000 of Specified Amount plus Term Insurance	$0.01 per $ 1,000 of Specified Amount plus Term Insurance


Optional Rider Charges

Charge	When Charge is Deducted	Amount Deducted

		Guaranteed Charge	Current Charge


Children’s Term Life Insurance Rider¹⁹	On issuance of the rider and on each Monthly Anniversary Day until the policy anniversary following the Insured’s 65th birthday

• Minimum and Maximum Charge²⁰		$0.48 to $ 0.49 per $1,000 of insurance coverage	$0.48 to $0.49 per $1,000 of insurance coverage

• Charge for a 35 year old, male, non-tobacco, standard, Specified Amount of $250,000, no Waiver of Specified Premiums Rider attached to the Policy, 0 years from the issue date of the rider		$0.48 per $1,000 of insurance coverage	$0.48 per $1,000 of insurance coverage

1	The sales charge varies by Policy Year and premium amount and will be 1.45% of gross premium plus 4.00% of gross premium up to a certain premium amount in Policy Years 1-10 and will be 1.45% in Policy Years 11 and later. The Policy will contain more specific information.

2	We reserve the right to increase or decrease the current or maximum charge for taxes resulting from a change in tax law or from any change in the relevant tax cost to us.

3	We do not assess this charge if you purchased the Policy in connection with an individual qualified plan or in other situations where the premiums received are not subject to this tax.

The surrender charge varies based on the Insured’s issue age, gender, smoking status, risk class, and the number of years since Policy issue or any increases in Specified Amount. The surrender charge grades to zero over 15 years for Insureds with an issue age of 70 and under (and over 11 years for Insureds with an issue age over 70). The surrender charge shown may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the surrender charge that applies to your Policy. You may obtain more information about your surrender charge from your agent or by contacting us at the address noted on the cover page of this prospectus.

The minimum guaranteed and current surrender charge is based on an Insured with the following characteristics: female, issue age 0, surrendering in Policy year 1; the maximum guaranteed and current surrender charge is based on an Insured with the following characteristics: male, standard, non-tobacco, issue age 85, surrendering in Policy year 1.

The cost of insurance charge and the cost of insurance charge for the Term Life Term Rider vary based on the Insured’s issue age or age on date of increase, gender and risk class, the duration of the Policy, and the Specified Amount. The cost of insurance charge shown the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the guaranteed cost of insurance charge that applies to your Policy. You may obtain more information about your cost of insurance charge from your agent or by contacting us at the address noted on the cover page of this prospectus.

The minimum guaranteed cost of insurance charge assumes an Insured with the following characteristics: female, tobacco, standard, issue age 4, 0 years since Policy issue; the minimum current cost of insurance charge assumes an Insured with the following characteristics: female, non-tobacco, ultimate select, Specified Amount of $500,000 or greater, issue age 4, 0 years since Policy issue; the maximum guaranteed cost of insurance charge assumes an Insured with the following characteristics: all Insureds with attained age 99; the maximum current cost of insurance charge assumes an Insured with the following characteristics: male, tobacco, standard, Specified Amount of less than $500,000, issue age 85, 14 years since Policy issue.

The Monthly Expense Charge varies based on the Insured’s issue age (or age on date of increase) gender, risk class, and Specified Amount. The Monthly Expense Charge shown in the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the Monthly Expense Charge that applies to your Policy. You may obtain more information about your Monthly Expense Charge from your agent or by contacting us at the address noted on the cover page of this prospectus.

9	The minimum guaranteed and current Monthly Expense charge per $1,000 Specified Amount assumes an Insured with issue age 0; the maximum guaranteed and current Monthly Expense charge per $1,000 Specified Amount assumes an Insured with issue age 85 and Specified Amount less than $500,000.

10	A coverage segment is the initial Specified Amount; each increase in Specified Amount is its own coverage segment.

The loan interest spread charge is the difference between the amount of interest we charge you for a loan and the amount of interest we credit to the amount held in the Loan Account to secure your loan. The amount of interest we currently charge on loans is equal to an effective annual rate of 5.00% for Policy years 1-20 and an effective annual rate of 4.25% for Policy years 21 and later. We guarantee that we will not charge you an effective annual rate of interest that is greater than the rate we currently charge on loans. The amount of interest we currently credit to the amount held in the Loan Account to secure your loan is equal to an effective annual rate of 4.0% and is guaranteed not to be less than this rate. We currently anticipate that the interest we charge on loans will be an effective annual rate of 4.0% for Policy years 21 and later resulting in an anticipated loan interest spread of 0% in Policy years 21+.

The minimum guaranteed charge for this rider assumes an Insured with the following characteristics: female, non-tobacco, ultimate select, issue age 18, 0 years since issue of rider, minimum Specified Amount of $100,000; the minimum current charge for this rider assumes an Insured with the following characteristics: female, non-tobacco, ultimate select, issue age 18, 0 years since issue of rider, minimum Specified Amount of $100,000; the maximum guaranteed charge for this rider assumes an Insured with the following characteristics: male, tobacco, standard,, issue age 79, minimum Specified Amount of $100,000; the maximum current charge for this rider assumes an Insured with the following characteristics: male, tobacco, standard, issue age 66, 13 years since issue of rider, minimum Specified Amount of $100,000.

The Spouse’s Yearly Renewable Term Rider charge varies based on the spouse’s gender, age, smoking status, and the number of years that have passed since the rider was issued. The Spouse’s Yearly Renewable Term Rider charge shown in the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the Spouse’s Yearly Renewable Term Rider charge that applies to your Policy. You may obtain more information about your Spouse’s Yearly Renewable Term Rider charge from your agent or by contacting us at the address noted on the cover page of the prospectus.

The minimum guaranteed and current charge for this rider assumes an Insured with the following characteristics: female, issue age 18, non-tobacco, and 0 years since the issue of the rider; the maximum guaranteed and current charge for this rider assumes an Insured with the following characteristics: male, tobacco, issue age 70, attained age 79.

The Purchase Option Rider charge varies based on the age of the Insured. The Rider charges shown in the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the Rider charges that apply to your Policy. You may obtain more information about your Rider from your agent or by contacting us at the address noted on the cover page of the prospectus.

16	The minimum guaranteed and current charge for this rider assumes an Insured with issue age 0; the maximum guaranteed and current charge for this rider assumes an Insured with issue age 46.

The Waiver of Monthly Deduction Rider charge varies based on the Insured’s age, gender, and risk class. The Rider charge shown in the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the Rider charge that applies to your Policy. You may obtain more information about your Rider charges from your agent or by contacting us at the address noted on the cover page of the prospectus.

18	The minimum guaranteed and current charge for the Waiver of Monthly Deduction Rider assumes an Insured with attained ages 0-4; the maximum guaranteed and current charge for the Waiver of Monthly Deduction Rider assumes an Insured with the following characteristics: attained age 64, male, tobacco.

The Children’s Term Life Insurance Rider varies based on the Insured’s risk class and whether a Waiver of Specified Premiums is attached to the base Policy. The Rider charge shown in the table may not be representative of the charge that a particular Owner will pay. Please see your Policy for more information about the Rider charge that applies to your Policy. You may obtain more information about your Rider charges from your agent or by contacting us at the address noted on the cover page of the prospectus.

The minimum guaranteed and current charge for the Children’s Term Life Insurance Rider assumes a standard class Insured and that a Waiver of Specified Premiums Rider is not attached to the base Policy; the maximum guaranteed and current charge for the Children’s Term Life Insurance Rider assumes a standard class Insured and that a Waiver of Specified Premiums Rider is attached to the base Policy.

* * *

The following table shows the range of the total fees and expenses charged by the portfolios in which the Subaccounts invest. The purpose of the table is to assist you in understanding the various costs and expenses that you will bear indirectly by investing in the Subaccounts. The table reflects total operating expenses for the portfolios for the fiscal year ended December 31, 2003. Expenses of the portfolios may be higher or lower in future years than the figures stated below. For more information on the fees and expenses described in this table, see the prospectus for each portfolio.

Total Annual Portfolio Operating Expenses

(expenses that are deducted from portfolio assets)

We offer other variable life insurance policies which may also invest in the same (or many of the same) Fund Portfolios offered under the Policy. These policies may have different charges that could affect their subaccounts performing and they may offer different benefits.

ILLUSTRATIONS

The following tables illustrate how the key financial elements of the Policy work, specifically, how the Death Proceeds, Fund Values and Cash Values could vary over an extended period of time. In addition, each table compares these values with premiums paid accumulated with interest.

The Policies illustrated include the following:


Sex	Age	Risk Class	Benefit Option	Specified Amount
Male	35	Standard Non-tobacco	1	$	250,000
Male	35	Standard Non-tobacco	2	$	250,000
Female	35	Standard Non-tobacco	1	$	250,000
Female	35	Standard Non-tobacco	2	$	250,000

The tables show how Death Proceeds, Fund Values and Cash Values of a hypothetical Policy could vary over an extended period of time if the Subaccounts of the Variable Account had constant hypothetical gross annual investment returns of 0%, 6% or 10% over the periods indicated in each table. If the annual investment returns are not constant the Death Proceeds, Fund Values and Cash Values will be different if the returns averaged 0%, 6% or 10% over a period of years but went above or below those figures in individual Policy years. Depending on the timing and degree of fluctuation, the actual values could be substantially less than these shown, and may, under certain circumstances, result in the lapse of the Policy unless the Owner pays more than the stated premium. These illustrations assume that no Policy loan has been taken. The amounts shown would differ if unisex rates were used.

The amounts shown for Death Proceeds, Fund Values and Cash Values reflect the fact the net investment return on the Policy is lower than the gross investment return on the Subaccounts of the Variable Account. This results from the charges levied against the Subaccounts of the Variable Account (i.e., the mortality and expense risk charge) as well as the premium loads, administrative charges and Surrender Charges.

These charges include the charge against the Subaccounts for mortality and expense risks and the effect on each Subaccount’s investment experience of the charge to portfolio assets for investment management and direct expenses. The mortality and expense risk fee is .35% annually on a guaranteed basis. We currently plan to reduce the mortality and expense risk charge after the 20th Policy year to 0.10% annually. This reduction is reflected in the “Current Charges” table below. The tables also reflect a deduction for a daily investment advisory fee and for other expenses of the Portfolio at a rate equivalent to an annual rate of 0.95% of the arithmetic average daily net assets of the Portfolio. This hypothetical rate is representative of the average maximum investment advisory fee and other expenses of the Portfolios applicable to the Subaccounts of the Variable Account, Actual fees and other expenses vary by Portfolio.

The effect of these investment management, direct expenses and mortality and expense risk charges on a 0% gross rate of return would result in a net rate of return of -0.95%, on 6% it would be 5.05%, and on 10% it would be 9.05%.

The tables assume the deduction of charges including administrative and sales charges. For each age, there are tables for death benefit Option 1 and 2 and each option is illustrated using current and guaranteed policy cost factors. The tables reflect the fact that the Company does not currently make any charge against the Variable Account for state or federal taxes. If such a charge is made in the future, it will take a higher rate of return to produce after-tax returns of 0%, 6% or 10%.

The difference between the Fund Value and the Cash Value in the first 14 years is the Surrender Charge.

The Company will furnish, upon request, a comparable illustration based on the age, gender and risk classification of the proposed Insured, and the initial Specified Amount and Scheduled Premium Payments of their choice.

LOGO

MALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,812.50

INITIAL SPECIFIED AMOUNT: $250,000

DEATH BENEFIT OPTION: 1

ASSUMING GUARANTEED CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	Gross 10.0%*	*Gross* 0.0%*	Gross 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*
1	1,813	250,000	250,000	250,000	853	927	977	0	0	0
2	1,813	250,000	250,000	250,000	1,727	1,932	2,073	567	772	913
3	1,813	250,000	250,000	250,000	2,563	2,955	3,236	1,403	1,795	2,076
4	1,813	250,000	250,000	250,000	3,360	3,998	4,471	2,200	2,838	3,311
5	1,813	250,000	250,000	250,000	4,357	5,308	6,037	3,197	4,148	4,877

6	1,813	250,000	250,000	250,000	5,286	6,624	7,682	4,126	5,464	6,522
7	1,813	250,000	250,000	250,000	6,176	7,974	9,443	5,016	6,814	8,283
8	1,813	250,000	250,000	250,000	6,999	9,332	11,303	5,984	8,317	10,288
9	1,813	250,000	250,000	250,000	7,756	10,699	13,269	6,886	9,829	12,399
10	1,813	250,000	250,000	250,000	8,448	12,076	15,354	7,723	11,351	14,629

15	1,813	250,000	250,000	250,000	11,208	19,456	28,353	11,208	19,456	28,353
20	1,813	250,000	250,000	250,000	11,313	26,161	45,613	11,313	26,161	45,613
25	1,813	250,000	250,000	250,000	6,870	30,044	67,983	6,870	30,044	67,983
30	1,813	LAPSED	250,000	250,000	LAPSED	27,015	96,831	LAPSED	27,015	96,831
35	1,813	LAPSED	250,000	250,000	LAPSED	7,957	134,745	LAPSED	7,957	134,745

40	1,813	LAPSED	LAPSED	250,000	LAPSED	LAPSED	189,837	LAPSED	LAPSED	189,837
45	1,813	LAPSED	LAPSED	300,269	LAPSED	LAPSED	285,971	LAPSED	LAPSED	285,971
50	1,813	LAPSED	LAPSED	452,773	LAPSED	LAPSED	431,213	LAPSED	LAPSED	431,213
55	1,813	LAPSED	LAPSED	665,112	LAPSED	LAPSED	633,440	LAPSED	LAPSED	633,440
60	1,813	LAPSED	LAPSED	943,325	LAPSED	LAPSED	933,985	LAPSED	LAPSED	933,985

65	1,813	LAPSED	LAPSED	1,404,159	LAPSED	LAPSED	1,390,257	LAPSED	LAPSED	1,390,257

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

* Gross annual investment returns do not reflect deductions of the average investment advisory fees of the Funds. Values reflect net investment returns of -0.95%, 5.05%, and 9.05%, which correspond to gross investment returns of 0.0%, 6.0% and 10.0%, respectively.

The hypothetical investment results are illustrative only, and should not be deemed a representation of past or future investment results. Actual investment results may be more or less than those shown, and will depend on a number of factors, including the investment allocations by policyowners, and the different investment rates of return earned by the portfolios underlying the Subaccounts. The Cash Value, Fund Value and Death Proceeds for a Policy would be different from those shown if the actual rates of investment return applicable to the Policy averaged 0.0%, 6.0%, or 10.0% over a period of years, but also fluctuated above or below those averages for individual Policy years. No representations can be made that these hypothetical rates of return can be achieved for any one year, or sustained over any period of time.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

MALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,812.50

INITIAL SPECIFIED AMOUNT: $250,000

DEATH BENEFIT OPTION: 1

ASSUMING CURRENT CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	Gross 6.0%*	Gross 10.0%*	Gross 0.0%*	Gross 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	Gross 6.0%*	Gross 10.0%*
1	1,813	250,000	250,000	250,000	853	927	977	0	0	0
2	1,813	250,000	250,000	250,000	1,875	2,084	2,228	715	924	1,068
3	1,813	250,000	250,000	250,000	2,855	3,266	3,559	1,695	2,106	2,399
4	1,813	250,000	250,000	250,000	3,795	4,474	4,977	2,635	3,314	3,817
5	1,813	250,000	250,000	250,000	4,962	5,988	6,770	3,802	4,828	5,610

6	1,813	250,000	250,000	250,000	6,116	7,574	8,722	4,956	6,414	7,562
7	1,813	250,000	250,000	250,000	7,257	9,238	10,847	6,097	8,078	9,687
8	1,813	250,000	250,000	250,000	8,385	10,981	13,159	7,370	9,966	12,144
9	1,813	250,000	250,000	250,000	9,471	12,780	15,645	8,601	11,910	14,775
10	1,813	250,000	250,000	250,000	10,516	14,637	18,322	9,791	13,912	17,597

15	1,813	250,000	250,000	250,000	15,475	25,322	35,708	15,475	25,322	35,708
20	1,813	250,000	250,000	250,000	19,038	37,652	61,053	19,038	37,652	61,053
25	1,813	250,000	250,000	250,000	21,485	52,803	100,155	21,485	52,803	100,155
30	1,813	250,000	250,000	250,000	21,281	70,077	159,728	21,281	70,077	159,728
35	1,813	250,000	250,000	292,568	15,957	88,370	252,214	15,957	88,370	252,214

40	1,813	250,000	250,000	422,188	4,362	108,457	394,568	4,362	108,457	394,568
45	1,813	LAPSED	250,000	643,196	LAPSED	128,611	612,567	LAPSED	128,611	612,567
50	1,813	LAPSED	250,000	989,700	LAPSED	150,575	942,572	LAPSED	150,575	942,572
55	1,813	LAPSED	250,000	1,505,975	LAPSED	167,187	1,434,262	LAPSED	167,187	1,434,262
60	1,813	LAPSED	250,000	2,207,327	LAPSED	183,735	2,185,473	LAPSED	183,735	2,185,473

65	1,813	LAPSED	250,000	3,383,172	LAPSED	203,190	3,349,675	LAPSED	203,190	3,349,675

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

MALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,812.50

INITIAL SPECIFIED AMOUNT: $250,000

DEATH BENEFIT OPTION: 2

ASSUMING GUARANTEED CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	Gross 6.0%*	Gross 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	Gross 10.0%*
1	1,813	250,851	250,926	250,975	851	926	975	0	0	0
2	1,813	251,722	251,926	252,067	1,722	1,926	2,067	562	766	907
3	1,813	252,552	252,942	253,222	2,552	2,942	3,222	1,392	1,782	2,062
4	1,813	253,341	253,976	254,446	3,341	3,976	4,446	2,181	2,816	3,286
5	1,813	254,329	255,273	255,996	4,329	5,273	5,996	3,169	4,113	4,836

6	1,813	255,245	256,570	257,618	5,245	6,570	7,618	4,085	5,410	6,458
7	1,813	256,119	257,897	259,350	6,119	7,897	9,350	4,959	6,737	8,190
8	1,813	256,922	259,224	261,168	6,922	9,224	11,168	5,907	8,209	10,153
9	1,813	257,655	260,553	263,082	7,655	10,553	13,082	6,785	9,683	12,212
10	1,813	258,320	261,882	265,099	8,320	11,882	15,099	7,595	11,157	14,374

15	1,813	260,872	268,835	277,413	10,872	18,835	27,413	10,872	18,835	27,413
20	1,813	260,622	274,548	292,762	10,622	24,548	42,762	10,622	24,548	42,762
25	1,813	255,718	276,362	310,135	5,718	26,362	60,135	5,718	26,362	60,135
30	1,813	LAPSED	269,585	326,550	LAPSED	19,585	76,550	LAPSED	19,585	76,550
35	1,813	LAPSED	LAPSED	334,375	LAPSED	LAPSED	84,375	LAPSED	LAPSED	84,375

40	1,813	LAPSED	LAPSED	317,578	LAPSED	LAPSED	67,578	LAPSED	LAPSED	67,578
45	1,813	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
50	1,813	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
55	1,813	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
60	1,813	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

65	1,813	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

MALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,812.50

INITIAL SPECIFIED AMOUNT: $250,000

DEATH BENEFIT OPTION: 2

ASSUMING CURRENT CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	Gross 10.0%*
1	1,813	250,851	250,926	250,975	851	926	975	0	0	0
2	1,813	251,871	252,079	252,224	1,871	2,079	2,224	711	919	1,064
3	1,813	252,847	253,256	253,549	2,847	3,256	3,549	1,687	2,096	2,389
4	1,813	253,781	254,457	254,958	3,781	4,457	4,958	2,621	3,297	3,798
5	1,813	254,941	255,961	256,740	4,941	5,961	6,740	3,781	4,801	5,580

6	1,813	256,086	257,535	258,676	6,086	7,535	8,676	4,926	6,375	7,516
7	1,813	257,217	259,183	260,781	7,217	9,183	10,781	6,057	8,023	9,621
8	1,813	258,332	260,908	263,068	8,332	10,908	13,068	7,317	9,893	12,053
9	1,813	259,404	262,683	265,522	9,404	12,683	15,522	8,534	11,813	14,652
10	1,813	260,432	264,511	268,157	10,432	14,511	18,157	9,707	13,786	17,432

15	1,813	265,254	274,923	285,112	15,254	24,923	35,112	15,254	24,923	35,112
20	1,813	268,558	286,597	309,243	18,558	36,597	59,243	18,558	36,597	59,243
25	1,813	270,597	300,389	345,339	20,597	50,389	95,339	20,597	50,389	95,339
30	1,813	269,728	314,748	397,242	19,728	64,748	147,242	19,728	64,748	147,242
35	1,813	263,430	326,664	469,872	13,430	76,664	219,872	13,430	76,664	219,872

40	1,813	251,061	334,520	573,354	1,061	84,520	323,354	1,061	84,520	323,354
45	1,813	LAPSED	330,660	716,965	LAPSED	80,660	466,965	LAPSED	80,660	466,965
50	1,813	LAPSED	310,015	920,368	LAPSED	60,015	670,368	LAPSED	60,015	670,368
55	1,813	LAPSED	LAPSED	1,185,678	LAPSED	LAPSED	935,678	LAPSED	LAPSED	935,678
60	1,813	LAPSED	LAPSED	1,553,041	LAPSED	LAPSED	1,303,041	LAPSED	LAPSED	1,303,041

65	1,813	LAPSED	LAPSED	2,063,357	LAPSED	LAPSED	1,813,357	LAPSED	LAPSED	1,813,357

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

FEMALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,050.00

INITIAL SPECIFIED AMOUNT: $200,000

DEATH BENEFIT OPTION: 1

ASSUMING GUARANTEED CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	Gross 0.0%*	*Gross* 6.0%*	Gross 10.0%*
1	1,050	200,000	200,000	200,000	328	366	391	0	0	0
2	1,050	200,000	200,000	200,000	695	793	862	23	121	190
3	1,050	200,000	200,000	200,000	1,035	1,217	1,349	363	545	677
4	1,050	200,000	200,000	200,000	1,323	1,614	1,830	651	942	1,158
5	1,050	200,000	200,000	200,000	1,776	2,202	2,530	1,104	1,530	1,858

6	1,050	200,000	200,000	200,000	2,200	2,794	3,268	1,528	2,122	2,596
7	1,050	200,000	200,000	200,000	2,572	3,368	4,023	1,900	2,696	3,351
8	1,050	200,000	200,000	200,000	2,918	3,946	4,820	2,330	3,358	4,232
9	1,050	200,000	200,000	200,000	3,212	4,505	5,640	2,708	4,001	5,136
10	1,050	200,000	200,000	200,000	3,481	5,067	6,509	3,061	4,647	6,089

15	1,050	200,000	200,000	200,000	4,346	7,865	11,699	4,346	7,865	11,699
20	1,050	200,000	200,000	200,000	3,708	9,806	17,963	3,708	9,806	17,963
25	1,050	200,000	200,000	200,000	946	9,915	25,217	946	9,915	25,217
30	1,050	LAPSED	200,000	200,000	LAPSED	6,395	33,055	LAPSED	6,395	33,055
35	1,050	LAPSED	LAPSED	200,000	LAPSED	LAPSED	38,751	LAPSED	LAPSED	38,751

40	1,050	LAPSED	LAPSED	200,000	LAPSED	LAPSED	36,827	LAPSED	LAPSED	36,827
45	1,050	LAPSED	LAPSED	200,000	LAPSED	LAPSED	7,187	LAPSED	LAPSED	7,187
50	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
55	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
60	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

65	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

FEMALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,050.00

INITIAL SPECIFIED AMOUNT: $200,000

DEATH BENEFIT OPTION: 1

ASSUMING CURRENT CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	Gross 6.0%*	Gross 10.0%*
1	1,050	200,000	200,000	200,000	328	366	391	0	0	0
2	1,050	200,000	200,000	200,000	837	940	1,011	165	268	339
3	1,050	200,000	200,000	200,000	1,316	1,517	1,661	644	845	989
4	1,050	200,000	200,000	200,000	1,766	2,097	2,343	1,094	1,425	1,671
5	1,050	200,000	200,000	200,000	2,378	2,879	3,261	1,706	2,207	2,589

6	1,050	200,000	200,000	200,000	2,960	3,673	4,235	2,288	3,001	3,563
7	1,050	200,000	200,000	200,000	3,534	4,506	5,296	2,862	3,834	4,624
8	1,050	200,000	200,000	200,000	4,102	5,379	6,449	3,514	4,791	5,861
9	1,050	200,000	200,000	200,000	4,640	6,271	7,681	4,136	5,767	7,177
10	1,050	200,000	200,000	200,000	5,149	7,181	8,997	4,729	6,761	8,577

15	1,050	200,000	200,000	200,000	7,652	12,512	17,633	7,652	12,512	17,633
20	1,050	200,000	200,000	200,000	9,617	18,830	30,372	9,617	18,830	30,372
25	1,050	200,000	200,000	200,000	10,814	26,333	49,659	10,814	26,333	49,659
30	1,050	200,000	200,000	200,000	10,838	34,866	78,674	10,838	34,866	78,674
35	1,050	200,000	200,000	200,000	8,720	43,839	122,648	8,720	43,839	122,648

40	1,050	200,000	200,000	205,024	3,872	53,188	191,611	3,872	53,188	191,611
45	1,050	LAPSED	200,000	313,889	LAPSED	60,282	298,941	LAPSED	60,282	298,941
50	1,050	LAPSED	200,000	484,752	LAPSED	59,971	461,669	LAPSED	59,971	461,669
55	1,050	LAPSED	200,000	740,649	LAPSED	35,818	705,380	LAPSED	35,818	705,380
60	1,050	LAPSED	LAPSED	1,088,393	LAPSED	LAPSED	1,077,616	LAPSED	LAPSED	1,077,616

65	1,050	LAPSED	LAPSED	1,669,685	LAPSED	LAPSED	1,653,153	LAPSED	LAPSED	1,653,153

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

FEMALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,050.00

INITIAL SPECIFIED AMOUNT: $200,000

DEATH BENEFIT OPTION: 2

ASSUMING GUARANTEED CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	Gross 10.0%*
1	1,050	200,328	200,365	200,390	328	365	390	0	0	0
2	1,050	200,693	200,791	200,859	693	791	859	21	119	187
3	1,050	201,030	201,212	201,344	1,030	1,212	1,344	358	540	672
4	1,050	201,316	201,605	201,820	1,316	1,605	1,820	644	933	1,148
5	1,050	201,764	202,187	202,514	1,764	2,187	2,514	1,092	1,515	1,842

6	1,050	202,183	202,773	203,242	2,183	2,773	3,242	1,511	2,101	2,570
7	1,050	202,549	203,337	203,984	2,549	3,337	3,984	1,877	2,665	3,312
8	1,050	202,886	203,902	204,765	2,886	3,902	4,765	2,298	3,314	4,177
9	1,050	203,172	204,445	205,564	3,172	4,445	5,564	2,668	3,941	5,060
10	1,050	203,430	204,990	206,407	3,430	4,990	6,407	3,010	4,570	5,987

15	1,050	204,220	207,628	211,338	4,220	7,628	11,338	4,220	7,628	11,338
20	1,050	203,474	209,239	216,941	3,474	9,239	16,941	3,474	9,239	16,941
25	1,050	200,621	208,768	222,683	621	8,768	22,683	621	8,768	22,683
30	1,050	LAPSED	204,408	227,270	LAPSED	4,408	27,270	LAPSED	4,408	27,270
35	1,050	LAPSED	LAPSED	226,085	LAPSED	LAPSED	26,085	LAPSED	LAPSED	26,085

40	1,050	LAPSED	LAPSED	210,757	LAPSED	LAPSED	10,757	LAPSED	LAPSED	10,757
45	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
50	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
55	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED
60	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

65	1,050	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED	LAPSED

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

LOGO

FEMALE ISSUE AGE: 35, SELECT NON-TOBACCO

PLANNED ANNUAL PREMIUM: $1,050.00

INITIAL SPECIFIED AMOUNT: $200,000

DEATH BENEFIT OPTION: 2

ASSUMING CURRENT CHARGES


		*Death Proceeds*			*Fund Value*			*Cash Value*
		*Annual Investment Return of*			*Annual Investment Return of*			*Annual Investment Return of*
*End Of* *Policy* *Year*	*Premium* *Outlay*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	*Gross* 0.0%*	*Gross* 6.0%*	*Gross* 10.0%*	Gross 0.0%*	Gross 6.0%*	Gross 10.0%*
1	1,050	200,328	200,365	200,390	328	365	390	0	0	0
2	1,050	200,836	200,938	201,009	836	938	1,009	164	266	337
3	1,050	201,314	201,514	201,657	1,314	1,514	1,657	642	842	985
4	1,050	201,761	202,091	202,336	1,761	2,091	2,336	1,089	1,419	1,664
5	1,050	202,370	202,869	203,249	2,370	2,869	3,249	1,698	2,197	2,577

6	1,050	202,948	203,658	204,217	2,948	3,658	4,217	2,276	2,986	3,545
7	1,050	203,517	204,484	205,269	3,517	4,484	5,269	2,845	3,812	4,597
8	1,050	204,080	205,348	206,411	4,080	5,348	6,411	3,492	4,760	5,823
9	1,050	204,611	206,229	207,628	4,611	6,229	7,628	4,107	5,725	7,124
10	1,050	205,112	207,126	208,925	5,112	7,126	8,925	4,692	6,706	8,505

15	1,050	207,559	212,344	217,382	7,559	12,344	17,382	7,559	12,344	17,382
20	1,050	209,433	218,424	229,674	9,433	18,424	29,674	9,433	18,424	29,674
25	1,050	210,480	225,425	247,849	10,480	25,425	47,849	10,480	25,425	47,849
30	1,050	210,283	232,969	274,238	10,283	32,969	74,238	10,283	32,969	74,238
35	1,050	207,862	239,962	311,843	7,862	39,962	111,843	7,862	39,962	111,843

40	1,050	202,736	245,647	366,054	2,736	45,647	166,054	2,736	45,647	166,054
45	1,050	LAPSED	245,495	441,178	LAPSED	45,495	241,178	LAPSED	45,495	241,178
50	1,050	LAPSED	231,268	541,194	LAPSED	31,268	341,194	LAPSED	31,268	341,194
55	1,050	LAPSED	LAPSED	662,442	LAPSED	LAPSED	462,442	LAPSED	LAPSED	462,442
60	1,050	LAPSED	LAPSED	818,384	LAPSED	LAPSED	618,384	LAPSED	LAPSED	618,384

65	1,050	LAPSED	LAPSED	1,013,624	LAPSED	LAPSED	813,624	LAPSED	LAPSED	813,624

Premiums are assumed to be paid at the beginning of the year. All other values are at the end of the year.

MONY Variable Universal Life

FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY

MONY LIFE INSURANCE COMPANY

We are a stock life insurance company organized in the State of New York. Our principal offices are located at 1740 Broadway, New York, New York 10019. We are obligated to pay all benefits under the Policy. On September 17, 2003, MONY Group Inc. (“MONY Group”), the ultimate parent of MONY Life Insurance Company, entered into an Agreement and Plan of Merger with AXA Financial, Inc. (“AXA Financial”) and AIMA Acquisition Co., which was subsequently amended on February 22, 2004 (hereafter referred to collectively as the “AXA Agreement”), pursuant to which MONY Group will become a wholly owned subsidiary of AXA Financial in a cash transaction valued at approximately $1.5 billion. Under the terms of the AXA Agreement, which has been approved by the boards of directors of AXA Financial and MONY Group, MONY Group’s shareholders will receive $31.00 for each share of MONY Group’s common stock. The acquisition contemplated by the AXA Agreement is subject to various regulatory approvals and other customary conditions, including the approval of MONY Group’s shareholders. A special meeting of MONY Group’s shareholders is scheduled for May 18, 2004 to vote on the proposed acquisition of MONY Group by AXA Financial. The transaction is expected to close in the second quarter of 2004.

MONY VARIABLE ACCOUNT L

We established MONY Variable Account L as a separate account under New York law on November 28, 1990. We divided the Variable Account into subdivisions called Subaccounts. Each Subaccount invests exclusively in shares of a designated portfolio of the Funds.

The assets in the Variable Account belong to us. Assets equal to the reserves and other liabilities of the Variable Account will not be charged with liabilities that arise from any other business that we conduct. Realized or unrealized income gains or losses from assets allocated to the Variable Account and of each Subaccount are credited to or charged against the Variable Account and that Subaccount without regard to other income, gains or losses of the Company. We reserve the right to credit or charge a Subaccount in a different manner if required, or appropriate, by reason of a change in law. We may from time to time transfer to our General Account, assets which exceed the reserves and other liabilities of the Variable Account.

Changes to the Variable Account

We may add new Subaccounts that are not available under the Policy. We may substitute a portfolio for another portfolio of that Fund or of another Fund, if in our judgment, the portfolio no longer suits the purposes of the Policy due to a change in its investment objectives or restrictions. The new portfolio may have higher fees and charges than the one it replaced, and not all portfolios may be available to all classes of Policies. No substitution may take place without prior notice to you and prior approval of the SEC and insurance regulatory authorities, to the extent required by the Investment Company Act of 1940 (the “1940 Act”) and applicable law.

We may also, where permitted by law:

•

combine the Variable Account with any of our other separate accounts;

•

deregister the Variable Account under the 1940 Act; and

•

operate the Variable Account as a management company under the 1940 Act.

We will notify you of any changes we make.

THE PORTFOLIOS

You decide the Subaccounts to which you direct premium payments or transfer Fund Value. There is a separate Subaccount which corresponds to each portfolio of a Fund offered in the Policy.

Each Fund is registered with the SEC as an open-end management investment company under the 1940 Act. The assets of each portfolio are separate from other portfolios of a Fund and each portfolio has separate investment objectives and policies. As a result, the investment performance of one portfolio has no effect on the investment performance of any other portfolio.

Janus Aspen Series Capital Appreciation is a non-diversified, open-end management investment company. A non-diversified Fund may hold a larger position in a smaller number of securities than a diversified Fund. This means that a single security’s increase or decrease in value may have a greater impact on the return and net asset value of a non-diversified Fund than a diversified Fund.

Before you choose a Subaccount to allocate your premium payments and transfer Fund Value, carefully read the prospectus for each Fund, along with this prospectus. Please call your agent or our Operations Center to obtain each Fund prospectus. We summarize the investment objectives of each portfolio below. There is no assurance that any of the portfolios will meet these objectives. You should know that during extended periods of low interest rates, the yields of the MONY Money Market Subaccount may become extremely low and possibly negative.

The investment objectives and policies of certain portfolios are similar to the investment objectives and policies of other portfolios that may be managed by the same investment adviser or manager. The investment results of the portfolios, however, may be higher or lower than the results of such portfolios. There can be no assurance, and no representation is made, that the investment results of any of the portfolios will be comparable to the investment results of any other portfolio, even if the other portfolio has the same investment adviser or manager.

The following table lists the Subaccounts of the Variable Account that are available under the Policy.



Subaccount	Fund/Type of Portfolio	Adviser (and Sub-Adviser, as applicable)

AIM VARIABLE INSURANCE FUNDS—Series I

AIM V.I. Basic Value Subaccount	Large Value	A I M Advisors, Inc.

AIM V.I. Mid Cap Core Equity Subaccount	Mid-Cap Blend	A I M Advisors, Inc.

THE ALGER AMERICAN FUND—Class O Shares

Alger American Balanced Subaccount	Moderate Allocation	Fred Alger Management, Inc.

Alger American MidCap Growth Subaccount	Mid-Cap Growth	Fred Alger Management, Inc.

DREYFUS INVESTMENT PORTFOLIOS—Service

Dreyfus IP Small Cap Stock Index Subaccount	Small Growth	The Dreyfus Corporation

ENTERPRISE ACCUMULATION TRUST

Enterprise Equity Income Subaccount	Large Value	Enterprise Capital Management, Inc. (subadvised by Boston Advisors, Inc.)

Enterprise Growth Subaccount	Large Growth	Enterprise Capital Management, Inc. (subadvised by Montag & Caldwell, Inc.)

Enterprise Growth and Income Subaccount	Large Blend	Enterprise Capital Management, Inc. (subadvised by UBS Global Asset Management (Americas), Inc.)



Subaccount	Fund/Type of Portfolio	Adviser (and Sub-Adviser, as applicable)

Enterprise Managed Subaccount	Large Value	Enterprise Capital Management, Inc. (subadvised by Wellington Management Company, LLP)

Enterprise Multi-Cap Growth Subaccount	Mid-Cap Growth	Enterprise Capital Management, Inc. (subadvised by Fred Alger Management Inc.)

Enterprise Short Duration Bond Subaccount	Intermediate-Term Bond	Enterprise Capital Management, Inc. (subadvised by MONY Capital Management, Inc.)

Enterprise Small Company Growth Subaccount	Small Growth	Enterprise Capital Management, Inc. (subadvised by William D. Witter, Inc.)

Enterprise Small Company Value Subaccount	Small Value	Enterprise Capital Management, Inc. (subadvised by Gabelli Asset Management Company)

Enterprise Total Return Subaccount	Intermediate-Term Bond	Enterprise Capital Management, Inc. (subadvised by Pacific Investment Management Company, LLP)

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST—Class 2

Franklin Income Securities Subaccount	Conservative Allocation	Franklin Advisers, Inc.

Franklin Rising Dividends Securities Subaccount	Mid-Cap Value	Franklin Advisory Services, LLC

Franklin Zero Coupon 2010 Subaccount	Long-Term Bond	Franklin Advisers, Inc.

JANUS ASPEN SERIES—Service Shares

Janus Aspen Series Capital Appreciation Subaccount	Large Growth	Janus Capital Management LLC

Janus Aspen Series Flexible Income Subaccount	Multisector Bond	Janus Capital Management LLC

Janus Aspen Series International Growth Subaccount	Foreign Stock	Janus Capital Management LLC

LORD ABBETT SERIES FUND—Class VC

Lord Abbett Bond- Debenture Subaccount	High Yield Bond	Lord, Abbett & Co. LLC

Lord Abbett Growth And Income Subaccount	Large Value	Lord, Abbett & Co. LLC

Lord Abbett Mid-Cap Value Subaccount	Mid-Cap Value	Lord, Abbett & Co. LLC



Subaccount	Fund/Type of Portfolio	Adviser (and Sub-Adviser, as applicable)

MFS^® VARIABLE INSURANCE TRUST^sm—Initial Shares

MFS^® Mid Cap Growth Subaccount	Mid-Cap Growth	Massachusetts Financial Services Company

MFS^® Total Return Subaccount	Domestic Hybrid	Massachusetts Financial Services Company

MFS^® Utilities Subaccount	Specialty-Utilities	Massachusetts Financial Services Company

MONY SERIES FUND, INC.

MONY Government Securities Subaccount	Short Government	MONY Life Insurance Company of America

MONY Long Term Bond Subaccount	Long-Term Bond	MONY Life Insurance Company of America

MONY Money Market Subaccount	Money Market	MONY Life Insurance Company of America

OPPENHEIMER VARIABLE ACCOUNT FUNDS—Service Class

Oppenheimer Global Securities Subaccount	World Stock	Oppenheimer Funds, Inc.

Oppenheimer Main Street^® Subaccount	Large Blend	Oppenheimer Funds, Inc.

PBHG INSURANCE SERIES FUND

PBHG Mid-Cap Subaccount	Mid-Cap Value	Pilgrim Baxter & Associates, Ltd.

PBHG Select Value Subaccount	Large Value	Pilgrim Baxter & Associates, Ltd.

PIMCO VARIABLE INSURANCE TRUST Administrative Class

PIMCO Global Bond Subaccount (Unhedged)	World Bond	Pacific Investment Company LLC

PIMCO Real Return Subaccount	Intermediate-Term Bond	Pacific Investment Company LLC

PIMCO StocksPLUS Growth and Income Subaccount	Large Blend	Pacific Investment Company LLC

THE UNIVERSAL INSTITUTIONAL FUNDS, INC.

Van Kampen UIF U.S. Real Estate Subaccount	Specialty-Real Estate	Morgan Stanley Investment Management Inc., which does business in certain instances using the name “Van Kampen,” is the investment adviser to the Universal Institutional Funds, Inc.

We have entered into agreements with either the investment adviser or distributor of each of the Funds under which the adviser or distributor pays us a fee ordinarily based upon an annual average percentage of the average aggregate net amount we have invested on behalf of the Variable Account and other separate accounts. These percentages differ, and some investment advisers or distributors pay us more than others. The percentages range from 0 to 25 basis points. These agreements reflect administrative services we provide. The amounts we receive under these agreements may be significant. In addition, our affiliate, MONY Securities Corporation, the principal underwriter for the Policies, will receive 12b-1 fees deducted from portfolio assets of certain Funds for providing distribution and shareholder support services to the portfolios.

Your Right to Vote Portfolio Shares

As required by law, we will vote portfolio shares held in the Variable Account at any regular and special meetings of the shareholders of the Funds. We will exercise these voting rights based on the instructions received from Owners having the voting interest in corresponding Subaccounts of the Variable Account. We may elect to vote the shares of the Funds in our own right if the 1940 Act or any regulations thereunder is amended, and as a result, we determine that it is permitted to vote the shares of the Funds in our right.

We will determine the number of votes which you have the right to cast by dividing your Fund Value in a Subaccount that corresponds to the portfolio by $100. Fractional votes will be counted. The number of Owner votes will be determined as of the date we set. However, such date will not be more than 90 days before the date established by the corresponding Fund for determining shareholders eligible to vote at that Fund’s meeting. If required by the SEC, we reserve the right to determine the voting rights in a different fashion. You may cast your voting instructions in person or by proxy.

We will vote portfolio shares for which we received no timely instructions in proportion to the voting instructions which are received for all Policies participating in that Subaccount. We will apply voting instructions to abstain on any item to be voted on a pro-rata basis to reduce the number of votes eligible to be cast.

Disregard of Voting Instructions

We may disregard voting instructions when required by state insurance regulatory authorities, if, (1) the instructions require that voting rights be exercised so as to cause a change in the subclassification or investment objective of a portfolio, or (2) to approve or disapprove an investment advisory contract. In addition, we may disregard voting instructions of changes initiated by Owners or the investment adviser (or portfolio manager) of a portfolio. Our disapproval of such change must be reasonable and must be based on a good faith determination that the change would be contrary to state law or otherwise inappropriate, considering the portfolio’s objectives and purpose, and considering the effect the change would have on us. If we do disregard voting instructions, a summary of that action and the reasons for such action will be included in the next report to Owners.

THE GUARANTEED INTEREST ACCOUNT

Due to certain exemptive and exclusionary provisions of the federal securities laws, we have not registered interests in the Guaranteed Interest Account or our General Account under the Securities Act of 1933 or under the 1940 Act. Accordingly, neither the Guaranteed Interest Account nor any interest therein is generally subject to the provisions of these Acts and, as a result, the staff of the SEC has not reviewed the disclosure in this prospectus relating to the Guaranteed Interest Account. Disclosures regarding the Guaranteed Interest Account may, however, be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in the prospectus. For more details regarding the Guaranteed Interest Account, please see your Policy.

You may allocate all or a portion of your net premiums and transfer Fund Value to our Guaranteed Interest Account. Amounts allocated to the Guaranteed Interest Account become part of the General Account, which

supports insurance and annuity obligations. The amounts allocated to the General Account are subject to the liabilities arising from the businesses we conduct. Subject to applicable law, we have sole discretion over the investment of the assets of the General Account.

We guarantee that we will credit the Fund Value in the Guaranteed Interest Account with a minimum interest rate of 0.0107% compounded daily, for a minimum effective annual rate of 4.0%. We may, in our sole discretion, declare current interest in excess of the 4.0% effective annual rate. We may declare excess interest based on such factors including, but not limited to, regulatory and tax requirements, sales commissions, and administrative expenses borne by us, general economic trends, and competitive factors. We cannot predict or guarantee future excess interest rates.

Before the beginning of each calendar month, we will declare an interest rate. The declared rate will apply to premium payments and transfers into the Guaranteed Interest Account made during the calendar month. To obtain the rate, please contact your agent. The calendar year and month the payment or transfer is made determines the “generation” of such monies. The current interest may be credited from the date of the payment or transfer for a period of 12 months beginning the first day of the monthly generation to which the payment or transfer is assigned. After the first 12 months, a renewal interest rate may be declared for a new 12-month period. At the end of the renewal period, all monies will earn an interest rate which is declared monthly and applies for a one-month period. Any rate we declare in excess of the minimum interest rate may be changed or discontinued by us at anytime after it is declared, but such change or discontinuance will only affect the crediting of interest that accrues after the change or discontinuance.

We bear the full investment risk for the Fund Value allocated to the Guaranteed Interest Account.

THE POLICY

We designed the Policy to meet the needs of individuals as well as for corporations who provide coverage and benefits for key employees.

Applying for a Policy

To purchase a Policy, you must complete an application and then have your agent submit it to us at our Operations Center. After you have done this, it can sometimes take several weeks for us to gather and evaluate the information we need to decide whether to issue a Policy to you and if so, what the Insured’s risk class should be. After we approve an application for a Policy and assign the appropriate risk class, we will prepare the Policy for delivery.

You must pay an initial premium of a sufficient amount before or at the time we deliver your Policy. (If you submit your initial premium with your application, we will place your premium in our General Account where it will earn interest at an effective annual rate of at least 4.0%). See “Premiums.” Coverage generally becomes effective on the Policy Date. We will not pay a Death Benefit before the Policy Date unless temporary insurance coverage, as discussed below, was in effect.

We will issue a Policy covering an Insured who is up to and including age 85, providing we receive evidence of insurability that satisfies us. If a qualified plan will own the Policy, the Insured cannot be less than 18 years old or more than 70 years old. Required evidence of insurability may include, among other things, a medical examination of the Insured. We may reject an application for any lawful reason.

Temporary Insurance Coverage

You may apply for temporary insurance coverage. To be eligible for such coverage, the Insured must be between the ages of 15 days and 71 years old and must be able to satisfactorily answer several health questions. Your initial premium must be in the amount of at least the Minimum Monthly Premium (see below) for the Policy for

which you applied. This coverage will take effect on the date you sign the application and pay the premium. Temporary insurance coverage will end on the earliest of:

•

the policy release date (i.e., the date we authorize the Policy to be delivered to you), if the Policy is issued as applied for;

•

the 15th day after the policy release date or the date the Policy takes effect, if the policy is issued other than as applied for; no later than 90 days from the date the temporary insurance agreement is signed; the 45th day after the form is signed if you have not finished the last required medical exam; 5 days after we send notice to you that we declined to issue any Policy; and

•

the date you tell us that the Policy will be refused.

We will pay a Death Benefit if the Insured dies during the period of temporary coverage. This Death Benefit will be:

the insurance coverage applied for (including any optional riders) up to $500,000, less

the deductions from premium and the monthly deduction due prior to the date of death.

We hold the premiums paid for temporary insurance coverage in our General Account until the policy release date. If we issue the Policy, we will apply these amounts to your Policy. Please contact your agent and see the Statement of Additional Information for more information about temporary insurance coverage rates based on a younger insurance age.

Backdating

We will not backdate a Policy for more than six months (a shorter period is required in certain states) before the date of your application. For a backdated Policy, Monthly Deductions will begin on the backdated Policy Date. You therefore will incur charges before you otherwise would have if you had not backdated your Policy, and your initial premium payment must be in an amount sufficient to cover the extra Monthly Deduction charges for the backdating period.

Owner

You have all of the rights and benefits under the Policy while the Insured is living. These rights include the right to change the Beneficiary, to assign the Policy, to transfer Fund Value, or make full or partial surrenders. Assigning the Policy, and full and partial surrenders may have tax consequences.

Canceling the Policy

You may cancel a Policy during the “Right to Return Policy” period by returning it to us at our Operations Center, or to the agent who sold it, and receive a refund of the full amount of the premium paid. The Right to Return Policy period runs for the later of (a) 10 days after you receive the Policy; (b) 45 days after you signed the application; or (c) 10 days after we mail or deliver a notice of withdrawal right.

PREMIUMS

General

We will usually credit your initial premium payment to the Policy on the later of the date we approve your Policy or the date we receive your payment. We will credit any subsequent premium to the Policy on the Business Day we receive it at our Operations Center. If you submit your premium payment to your agent, we will not begin processing the premium payment until we have received it from your agent’s selling firm.

If you have selected the Guideline Premium/Cash Value Corridor Test, the total premiums you pay may not exceed guideline premium limitations for the insurance set forth in the Internal Revenue Code of 1986, as amended (the “Code”). We may reject any premium, or any portion of a premium, that would result in the Policy being disqualified as life insurance under the Code. Further, we reserve the right to reject all or a portion of any premium payment if part (b) (Fund Value on the date of the Insured’s death multiplied by a death benefit percentage) under either Death Benefit Option 1 or Death Benefit Option 2 is in effect.

We will promptly refund any rejected premium. We will tell you before we process a transaction, whether once we process the transaction, your Policy is in jeopardy of becoming a modified endowment contract under the Code.

Initial Premium

You must pay an amount equal to at least the Minimum Monthly Premium to put the Policy in effect. However, if you want to pay premiums less often than monthly, the premium required to put the Policy in effect is equal to the Minimum Monthly Premium multiplied by 12 divided by the frequency of the scheduled premium payments.

We base your Minimum Monthly Premium on a number of factors. These factors include:

your Specified Amount;

any riders you added to the Policy; and

the Insured’s age, smoking status, gender (unless unisex rates apply), and risk class.

We show the Minimum Monthly Premium in your Policy. After you pay this initial premium, subject to the limitations described below, you may choose the amount and frequency of premium payments to reflect your varying financial conditions.

Tax-Free “Section 1035” Exchanges

You can generally exchange one life insurance policy for another on the life of the same insured in a “tax-free exchange” under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both policies carefully. Remember that if you exchange another policy for the one described in this prospectus, you might have to pay a surrender charge on your old policy and there will be a new Surrender Charge for this Policy and other charges may be higher (or lower) and the benefits may be different. If the exchange does not qualify for Section 1035 treatment, you may have to pay federal income and penalty taxes on the exchange. You should not exchange another policy for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this Policy (that person will generally earn a commission if you buy this Policy through an exchange or otherwise).

Scheduled Premiums

Your initial Minimum Monthly Premium is the only premium payment you must make under the Policy. However, you greatly increase your risk of Policy termination if you do not regularly pay premiums at least as large as the Minimum Monthly Premium. Paying your Minimum Monthly Premiums will not necessarily keep your Policy in force. Additional premiums may be necessary to keep the Policy in force.

You may make your premium payments according to the schedule you established when you applied for the Policy. This scheduled premium payment provides for the payment of level premiums at fixed intervals over a specified period of time, and equals, at least, the Minimum Monthly Premium multiplied by 12 divided by the scheduled premium payment frequency. We will send you a premium reminder notice for the scheduled premium payment amount on an annual, semiannual or quarterly basis, at your option.

You should change the amount of your scheduled premium payments if:

•

you increase your Specified Amount;

•

you change your Death Benefit option;

•

you change or add a rider;

•

you take a partial surrender when you have elected Death Benefit Option 1 (see “Death Benefit”); or

•

you select Subaccounts that experience adverse investment performance.

You can change the amount and interval of payment of scheduled premiums at any time by writing us at our Operations Center. However, the new payment interval must satisfy our rules in use at the time of the change.

We will issue an endorsement to your Policy after you increase the Specified Amount that will provide you with the increased Minimum Monthly Premium amount.

Electronic Payments

You may have your bank automatically pay your premiums to us. If you authorize us, we will withdraw premiums from your bank account each month by electronic funds transfer. Based on your Policy Date, we may require that up to two Minimum Monthly Premiums be paid in cash before premiums may be paid by electronic funds transfer to the Company.

Unscheduled Premiums

In general, you may make premium payments at any time and in any amount. However, we may reject or limit any unscheduled premium payment that would result in an immediate increase in the Death Benefit payable, unless you provide us with satisfactory evidence of insurability at the time of payment. If satisfactory evidence of insurability is not received, we may return the payment in whole or in part. In addition, we will reject all or a part of a premium payment and return it to you if the premium would exceed the maximum premium limitations prescribed by the federal income tax law definition of life insurance.

Repayment of Outstanding Debt

We will treat payments you send to us as premium payments, and not as repayment of Outstanding Debt, unless you request otherwise. If you request that the payment be treated as a repayment of Outstanding Debt, any part of a payment that exceeds the amount of Outstanding Debt will be applied to your Fund Value as a premium payment. Applicable taxes and sales charges are only deducted from any payment that constitutes a premium payment.

Allocating Premiums

When you apply for a Policy, you specify the percentage of your net premium payments we are to allocate to the Subaccounts and to the Guaranteed Interest Account. Allocations must be in whole percentages, no allocation may be for less than 5% of a net premium, and allocation percentages must total 100%. You may change your allocations at any time by writing or calling our Operations Center. The change will apply to your net premium payments you make within 7 days after we receive your instructions.

We will allocate your initial premium payment to our General Account until the end of the “Right to Return Policy” period. At the end of that period, we will transfer your Net Premium to the Subaccounts and/or Guaranteed Interest Account you designated. After the “Right to Return Policy” period, we will allocate your net premiums to the Subaccounts and/or Guaranteed Account on the Business Day that we receive the premium payment.

If you make an unscheduled premium payment, you may specify an allocation choice that differs from your allocation choice for your scheduled premium payments. This choice will not change your allocation choice for future scheduled premiums. Your allocation must be whole numbers only, each allocation must be for at least 5% of the unscheduled net premium, and the total must be 100% of the unscheduled net premium.

HOW YOUR FUND VALUE VARIES

Fund Value

Fund Value is the entire amount we hold under your Policy for you. Fund Value serves as the starting point for calculating certain values under a Policy. It is the sum of the total amount under the Policy in each Subaccount, the amount held in the Guaranteed Interest Account, and the amount held in the Loan Account. We determine Fund Value first on your Policy Date, and after that, on each Business Day. Your Fund Value will vary to reflect the performance of the Subaccounts to which you have allocated amounts and interest we credit on amounts in the Guaranteed Interest Account, and will also vary to reflect Outstanding Debt, charges for the Monthly Deduction, mortality and expense risk charges, partial surrenders, and loan repayments. Your Fund Value may be more or less than the premiums you paid.

Cash Value

Your Cash Value on any Business Day is the Fund Value reduced by any surrender charge and any Outstanding Debt.

Subaccount Values

On any Business Day, the value of a subaccount equals the number of Units we credit to the Policy multiplied by the Unit value for that Day. We make the calculation before the purchase or redemption of Units on that Day.

Every time you allocate or transfer money to or from a subaccount, we convert that dollar amount into Units. When you make allocations to a subaccount, either by premium allocation, transfer of Fund Value, transfer of loan interest from the General Account, or repayment of a loan, we credit your Policy with Units in a subaccount. When we assess the Monthly Deduction, and when you take a loan, a partial surrender, or transfer from a Subaccount, we decrease the number of Units you hold in a subaccount.

Subaccount Unit Value

The unit value of each Subaccount on its first Business Day was set at $10.00. To determine the unit value of a Subaccount on any later Business Day, the Company takes the prior Business Day’s Unit Value and multiplies it by the Net Investment Factor for the current Business Day. The New Investment Factor is used to measure the investment performance of a Subaccount from one Business Day to the next. The Net Investment factor for each Subaccount equals:

(1)

the net asset value per share of each portfolio held in the Subaccount at the end of the current Business Day, plus the share amount of any dividend or capital gains distributed by the portfolio held in the Subaccount on the current Business Day, divided by

(2)

the net asset value per share of each portfolio held in the Subaccount at the end of the prior Business Day, minus

(3)

the daily mortality and expense risk charge and any other applicable charges adjusted for the number of days in the period.

The unit value of these Subaccounts may increase, decrease or remain the same from Business Day to Business Day. The unit value depends on the investment performance of the portfolio of the Fund in which the Subaccount invests and any expenses and charges deducted from MONY Variable Account L. The Owner bears the entire investment risk. Owners should periodically review their allocations of payments and values in light of market conditions and overall financial planning requirements.

Guaranteed Interest Account Value

On any Business Day, Fund Value in the Guaranteed Interest Account is:

•

the accumulated value with interest on the net premiums allocated and amounts transferred to, the Guaranteed Interest Account before that Day; minus

•

withdrawals from the Guaranteed Interest Account before that Day for any partial surrender and its fee, any amounts transferred from the Guaranteed Interest Account and the transfer charge, if any, and any Monthly Deductions.

TRANSFERS

After the Right to Return Policy period has ended, you may transfer all or a portion of your Fund Value between and among the Subaccounts of the Variable Account and the Guaranteed Interest Account subject to certain conditions. Transfers from a Subaccount will take effect at the end of the Business Day we receive your request at our Operations Center. Transfers from the Guaranteed Interest Account will take effect on the policy anniversary, or if later, on the Business Day that falls on, or next follows, the date we receive your request at our Operations Center. We may postpone transfers to, from, or among the Subaccounts under certain circumstances. See “Transfers by Third Parties” and “Payments and Telephone/Facsimile/Web Transactions.”

We restrict transfers from the Guaranteed Interest Account. You may only transfer Fund Value from the Guaranteed Interest Account once each Policy Year. We must receive your request to transfer Fund Value from the Guaranteed Interest Account within 10 days before or 30 days after a policy anniversary.

When thinking about a transfer of Fund Value, you should consider the inherent risk involved. Frequent transfers based on short-term expectations may increase the risk that a transfer will be made at an inopportune time. We consider a request for a transfer to be one transaction. We may charge for transfers. See “Charges and Deductions.”

Transfers By Third Parties

As a general rule and as a convenience to you, we allow you to give a third party the right to effect transfers on your behalf. However, when the same third party makes transfers for many Owners, the result can be simultaneous transfers involving large amounts of Fund Value. Such transfers can disrupt the orderly management of the portfolios underlying the Policy, can result in higher costs to Owners, and are generally not compatible with the long-range goals of Owners. We believe that such simultaneous transfers effected by such third parties are not in the best interests of all shareholders of the Funds, and the managements of the Funds share this position.

Therefore, to the extent necessary to reduce the adverse effects of simultaneous transfers made by third parties who make transfers on behalf of multiple Owners, we may not honor such transfers. We will notify you in writing if we do not process a transfer request. Also, we will institute procedures to assure that the transfer requests that we receive have, in fact, been made by the Owners in whose names they have been submitted. These procedures will not, however, prevent Owners from making their own transfer requests.

DEATH BENEFITS

As long as your Policy is in effect and before the maturity date, we will pay the Death Benefit proceeds upon receipt at our Operations Center of satisfactory proof of the Insured’s death. We may postpone payment of the death benefit under certain conditions. See “Payments and Telephone/Facsimile/Web Transactions.” We will pay the proceeds to the Beneficiary.

Amount of Death Benefit Proceeds Payable

The amount of Death Benefit proceeds payable equals:

the Policy’s Death Benefit; plus

any insurance proceeds provided by rider; less

any Outstanding Debt, and if the death of the Insured occurs during any period for which a Monthly Deduction has not been made, any Monthly Deduction that may apply to that period, including the deduction for the month of death.

Under certain circumstances, we may further adjust the amount of the Death Benefit proceeds payable. See “Incontestability,” and “Misstatement of Age or Sex,” and “Suicide Exclusion.”

Death Benefit Options

When you apply for the Policy, you have to make three choices about your Death Benefit. First, you must select the death benefit compliance test; second you must tell us how much life insurance you want on the Insured; and finally, you must select a Death Benefit option.

The Policy must satisfy alternative death benefit compliance tests to qualify as life insurance under section 7702 of the Code: the Cash Value Accumulation Test or the Guideline Premium/Cash Value Corridor Test. Each test effectively requires that the Policy’s Death Benefit, plus any outstanding loans and accrued interest thereon, and any unpaid Monthly Deductions, always be equal to or greater than the Fund Value multiplied by a certain death benefit percentage. Under the Cash Value Accumulation test, the death benefit percentages vary by Insured’s attained age, gender and smoking status and in general, will not limit the amount you can pay into the Policy; under the Guideline Premium/Cash Value Corridor Test, the death benefit percentages vary by the Insured’s attained age, and will limit the amount you pay into the Policy. Your minimum Death Benefit will generally be larger should you select the Cash Value Accumulation Test, while your Fund Value will generally be greater in the long term under the Guideline Premium/Cash Value Corridor Test because your amount at risk will be lower which may result in lower cost of insurance charges in later Policy Years. In most situations, the Death Benefit that results from the Cash Value Accumulation Test will be more than the Death Benefit that results from the Guideline Premium/Cash Value Corridor Test. However, under the Guideline Premium/Cash Value Corridor Test, the premiums you pay into the Policy will be limited. Under the Cash Value Accumulation test, there is no limit to the amount that may be paid in premiums as long as there is enough Death Benefit in relation to Fund Value at all times. Once you choose the test, you cannot change it.

You also must tell us how much life insurance coverage you want on the life of the Insured. We call this the Specified Amount. The minimum Specified Amount is $50,000.

Finally, you tell us whether you want Death Benefit Option 1 or Death Benefit Option 2. If you prefer to have premium payments and any favorable investment performance reflected partly in the form of an increasing Death Benefit, you should consider choosing Death Benefit Option 2. If you are satisfied with the amount of the insured’s existing insurance coverage and prefer to have premium payments and any favorable investment performance reflected to the maximum extent in Fund value (thus reducing the cost of insurance charges), you should consider choosing Death Benefit Option 1. If you do not select a Death Benefit Option, we will assume you selected Death Benefit Option 2. Subject to certain restrictions, you may change your Death Benefit Option (see below).

Under Death Benefit Option 1, your Death Benefit will be the greater of:

the Specified Amount in effect on the date of the Insured’s death; or

Fund Value on the date of the Insured’s death multiplied by a death benefit percentage.

Under Death Benefit Option 2, your Death Benefit will be the greater of:

the Specified Amount in effect on the date of the Insured’s death, plus Fund Value on the date of the Insured’s Death; or

Fund Value on the date of the Insured’s death multiplied by a death benefit percentage.

The death benefit percentage will vary by the death benefit compliance test you selected. A table showing the death benefit percentages is in your Policy.

Examples of Options 1 and 2

The following examples demonstrate how we calculate the Death Benefit under Options 1 and 2. The examples show two Policies with the same Specified Amount, but Fund Values that vary as shown. We assume that the Insured is age 65 at the time of death and that there is no Outstanding Debt. We also assume that the date of death was on a Monthly Anniversary Day. Policy 1 shows what your Death Benefit would be for a Policy with low Fund Value. Policy 2 shows what your Death Benefit would be for a Policy with a higher Fund Value.


	Policy 1		Policy 2
Specified Amount	$	100,000	$	100,000
Fund Value on Date of Death	$	35,000	$	85,000
Death Benefit Percentage		120%		120 %
Death Benefit under Option 1	$	100,000	$	102,000
Death Benefit under Option 2	$	135,000	$	185,000

Changes in Death Benefit Options

You may change the Death Benefit option under your Policy by writing us at our Operations Center. If you change from Death Benefit Option 1 to Death Benefit Option 2, you must provide us with satisfactory evidence of insurability. We do not require evidence of insurability if you change from Death Benefit Option 2 to Death Benefit Option 1. The effective date of a change will be the Monthly Anniversary Day on or next after we accept the change.

If you change from Death Benefit Option 1 to Death Benefit Option 2, we will reduce your Policy’s Specified Amount by the amount of the Policy’s Fund Value at the date of the change. We will not permit you to change from Death Benefit Option 1 to Death Benefit Option 2 if the change would result in a new Specified Amount of less than $50,000.

If you change from Death Benefit Option 2 to Death Benefit Option 1, we will increase the Specified Amount of your Policy by the amount of the Policy’s Fund Value at the date of the change. The change to Death Benefit Option 1 will generally reduce the Death Benefit payable in the future.

We will automatically change your Death Benefit option to Death Benefit Option 2 if the Insured becomes disabled and the Waiver of Monthly Deduction Benefit rider is in effect. Additional information about the riders available under the Policy is available from your agent.

A change in the Death Benefit option may affect the monthly cost of insurance charge since this charge varies with the amount at risk. Generally, the amount at risk is the amount by which the Death Benefit exceeds Fund

Value. See “Deductions from Fund Value – The Monthly Deduction.” If the Policy’s Death Benefit is not based on the death benefit percentage under Death Benefit Option 1 or Death Benefit Option 2, changing from Option 2 to Option 1 will generally decrease the amount at risk. Therefore, this change may decrease the cost of insurance charges. Changing from Death Benefit Option 1 to Death Benefit Option 2 will generally result in an amount at risk that remains level. However, such a change will result in an increase in the cost of insurance charges over time because the cost of insurance rates increase with the Insured’s age. Changing the Death Benefit Option may have tax consequences. You should consult a tax adviser before changing the Death Benefit Option.

Changing the Specified Amount

You may change the Specified Amount under your Policy subject to the conditions described below.

Increasing the Specified Amount will generally increase your Policy’s Death Benefit. Decreasing the Specified Amount will generally decrease your Policy’s Death Benefit. The amount of change in the Death Benefit depends on (1) the Death Benefit option chosen, and (2) whether the Death Benefit under the Policy is being computed using the death benefit percentage at the time of the change. Changing the Specified Amount could affect the subsequent level of Policy values. For example, an increase in Specified Amount may increase the amount at risk, which will increase your cost of insurance charges over time. Conversely, a decrease in Specified Amount may decrease the amount at risk, which may decrease your cost of insurance over time. We offer a term life insurance rider. Depending on your circumstances, it may be more cost effective for you to purchase this rider rather than increasing your Specified Amount.

We will not permit any change that would result in your Policy being disqualified as a life insurance contract under Section 7702 of the Code. However, changing the Specified Amount may have other tax consequences. You should consult a tax adviser before changing the Specified Amount.

Increases

•	You may increase the Specified Amount by submitting a written application and evidence of insurability to us at our Operations Center. The increase will take effect on the Monthly Anniversary Day that falls on, or next follows, the date we approve it.

•	You can only increase the Specified Amount until the Insured’s age 85.

•	Your cost of insurance charges will increase.

•	The increase will create a new “coverage segment.” There will be a surrender charge associated with this coverage segment. We will allocate Fund Value after the increase first to the original coverage segment, and then to each coverage segment in order of the increases.

•	Your Minimum Monthly Premium will increase, and we will make this adjustment prospectively to reflect the increase.

•	If the Specified Amount is increased when a premium payment is received, we will process the increase before we process the premium payment.

Decreases

•	You may decrease the Specified Amount (or the amount of term insurance added by rider) by submitting a written application to us at our Operations Center. The decrease will take effect on the Monthly Anniversary Day that falls on, or next follows, the date we approve it.

•	You may not decrease the Specified Amount below $50,000.

•	We will apply any decrease in your Specified Amount (whether requested by you or resulting from a partial surrender or a Death Benefit option change):

to reduce the coverage segments of Specified Amount associated with the most recent increases in Specified Amount; then

to the next most recent increases successively; and last

to the original Specified Amount.

•	Your Minimum Monthly Premium will not be adjusted for the decrease in the Specified Amount.

•	If the Specified Amount is decreased when a premium payment is received, we will process the decrease before we process the premium payment.

•	Rider coverages may be affected by a decrease in Specified Amount.

•	We will reject a decrease in Specified Amount, if, to effect the decrease, payments to you would have to be made from Fund Value for compliance with the guideline premium limitations, and the amount of the payments would exceed the Cash Value of your Policy.

If a requested change is not approved, we will send you a written notice of our decision.

OTHER OPTIONAL INSURANCE BENEFITS

Subject to certain requirements, you may elect to add one or more optional insurance benefits when you apply for your Policy. These other optional benefits are added to your Policy by an addendum called a rider. As applicable, a charge is deducted monthly from the Fund Value for each optional benefit added to your policy. You can cancel these benefits at any time. Certain restrictions may apply, and are described in the applicable rider. In addition, adding or canceling these benefits may have an effect on your Policy’s status as a modified endowment contract.

The following riders are available under the Policy:

Enhanced Maturity Extension Rider

This rider provides the option to extend coverage beyond the original maturity date of the Policy until the date death proceeds become payable such that the death benefit at maturity is determined in the same manner as it was prior to the original maturity date. Death proceeds payable upon the Insured’s death on and after the original maturity date will equal the Death Benefit as determined under the Policy using 101% as the applicable percentage of Fund Value. There is a monthly cost for this rider which is deducted monthly from the Fund Value.

This rider must be elected at least 30 days but no more than 90 days before the original maturity date. If you elect this rider, the Policy provisions relating to maturity extension will not be effective. If you elect to end this rider, we will automatically provide coverage under the Policy provisions relating to maturity extension. Adding this rider to a policy and continuing the policy beyond the policy’s maturity date may have tax consequences. (See “Tax Considerations”)

Term Life Term Rider

This rider provides additional death benefits on the life of the Insured until the Insured reaches age 80. You may convert the rider coverage without evidence of insurability to any level premium, level face amount permanent policy of insurance offered by us. The conversion must occur before the Insured’s age 65 or 5 years from the issue of the rider, whichever is later.

Spouse’s Yearly Renewable Term Rider

This rider provides for term insurance benefits on the life of the Insured’s spouse, to the spouse’s age 80.

Purchase Option Rider

This rider provides the option to purchase additional coverage as specified in the rider at specific ages or after specific events without providing additional evidence that the Insured remains insurable.

Waiver of Monthly Deduction Rider

This rider provides for the waiver of certain charges while the Insured has a covered disability and the Policy is in effect. While the Insured is disabled, no deductions are made for (1) monthly administrative charges, (2) Monthly Expense Charges, (3) cost of insurance charges, and (4) rider charges.

Children’s Term Life Insurance Rider

This rider provides term insurance coverage on the lives of the children of the Insured under age 18. The coverage continues to the policy anniversary after the child’s 22nd birthday.

Contact our Operations Center or your agent for additional information about the riders.

BENEFITS AT MATURITY

The maturity date for this Policy unless you elect to extend it under the Policy provisions or by electing the Enhanced Maturity Extension Rider is the policy anniversary following the Insured’s 100th birthday. If the Insured is living on the maturity date, we will pay to you, as an endowment benefit, the Fund Value of the Policy. We will not accept premiums, nor will we take Monthly Deductions, after the maturity date. Payment of the benefit may be deferred until the date of the Insured’s death under the Policy provisions or the Enhanced Maturity Extension Rider. Under the policy provisions, the death proceeds payable upon the surviving Insured’s death equal the Cash Value of the Policy at the original maturity date multiplied by a death benefit percentage of 101%. Under the Enhanced Maturity Extension Rider, the death benefit payable upon the Insured’s death on and after the original maturity date will equal the Death Benefit as determined under the Policy using 101% as the applicable percentage of Fund Value.

If you elect the Enhanced Maturity Extension Rider, Policy provisions relating to maturity extension will not be effective. If you elect to end the rider, we will automatically provide coverage under the Policy provisions relating to maturity extension. Please see the Enhanced Maturity Extension Rider or your agent for more information.

SURRENDERS AND PARTIAL SURRENDERS

Surrenders

You may cancel and surrender your Policy at any time before the Insured dies by sending a written request together with the Policy to our Operations Center. Your Policy will terminate at end of the Business Day we receive your request.

The amount you will receive will be your Policy’s Fund Value less (1) any surrender charge, and (2) any Outstanding Debt. However, if you surrender your Policy within 30 days of a policy anniversary, we will calculate your Fund Value in the Guaranteed Interest Account as follows. On the Business Day we determine your Cash Value, your Fund Value in the Guaranteed Interest Account will not be less than the Cash Value in the

Guaranteed Interest Account as of that policy anniversary, less adjustments for partial surrenders (including fees), transfers (including transfer fees) and policy loans taken since that policy anniversary. Unless you select an optional payment plan, we will pay any proceeds in a lump sum.

A surrender may have adverse tax consequences. See “Tax Considerations.”

Partial Surrenders

Until the maturity date, you may make a partial surrender at any time from your Policy by writing us at our Operations Center. We will process your partial surrender request at the end of the Business Day we receive your request.

Your partial surrender must be for at least $500 (plus its fee). We will not allow a partial surrender if your Fund Value after the partial surrender (including the partial surrender fee) would be less than $500 or would result in a Specified Amount in force of less than $50,000. If you have taken a loan on your Policy, the amount of the partial surrender is limited so that the loan amount, after the partial surrender, is not greater than 90% of Cash Value, less any accrued loan interest due on the next Policy anniversary.

You must allocate an amount or percent of your Fund Value in the Subaccounts and the Guaranteed Interest Account from which we are to take your partial surrender. Allocations by percentages must be in whole percentages and the minimum percentage is 10% against any Subaccount or the Guaranteed Interest Account. Percentages must total 100%. We will reject an allocation which does not comply with the rules or if there is not enough Fund Value in a Subaccount or the Guaranteed Interest Account to provide its share of the allocation. If the Insured dies after the request for a partial surrender is sent to us and before it is effected, the amount of the partial surrender will be deducted from the Death Benefit proceeds. We will determine the Death Benefit proceeds taking into account the amount surrendered.

Effect of Partial Surrenders on Fund Value and Death Benefit Proceeds

When you make a partial surrender and you selected Death Benefit Option 1, we decrease the Specified Amount of your Policy by the amount of the partial surrender (excluding its fee). If you selected Death Benefit Option 2, a partial surrender will not change the Specified Amount of your Policy. However, if the Death Benefit is not equal to the Fund Value times a death benefit percentage, we will reduce the Death Benefit by the amount of the partial surrender (including its fee). Under either Death Benefit Option, if the Death Benefit is based on the Fund Value times the applicable death benefit percentage, the Death Benefit may decrease by an amount greater than the partial surrender.

There is a fee of $10 for each partial surrender. Partial surrenders may have adverse tax consequences. See “Tax Considerations.”

LOANS

You may borrow up to 90% of your Cash Value, less any accrued loan interest due on the next Policy anniversary, at any time by writing us at our Operations Center. (If you request a loan on a Monthly Anniversary Day, the maximum loan is reduced by the Monthly Deduction due on that day.) Your Policy is the only security for the loan. A loan may have tax consequences. You should consult your tax adviser before borrowing from your Policy.

To secure a loan, we transfer an amount equal to the loan proceeds from Fund Value in the Variable Account and the Guaranteed Interest Account to our Loan Account. You tell us from where we are to transfer this Fund Value. You can specify loan allocations by amount or percentages. Allocations by percentage must be in whole percentages and the minimum percentage is 5% against any Subaccount or the Guaranteed Interest Account. If

you do not specify an allocation, or if we cannot process your loan allocations because they do not comply with our rules or there is not enough Fund Value in a Subaccount and/or the Guaranteed Interest Account to comply with your request, we will reject your request for a loan. We pay interest monthly on amounts allocated to our Loan Account at an annual rate not less than 4.0%. We may pay excess interest in our sole discretion. We will allocate amounts in the Loan Account that exceed your Outstanding Debt to the Variable Account and/or Guaranteed Interest Account as we determine.

We normally pay the amount of the loan within seven calendar days after we receive a proper request for a loan at our Operations Center. We may postpone payment of loan under certain conditions. See “Payments and Telephone Transactions.”

We charge interest on a loan. Loan interest is payable in arrears on each policy anniversary, and varies by the number of years since we issued your Policy. The interest you must pay on the loan is as follows:


Policy Year	Interest Due (at an annual rate)
1 through 20	5.00	%
21 and after	4.25	%

If you do not pay the interest when due, it will become part of the loan and accrue interest accordingly. To secure this “new” loan, we will deduct amounts from the Fund Value of each Subaccount and/or the Guaranteed Interest Account in the same proportion that each bears to total Fund Value on the policy anniversary.

You may repay all or part of the Outstanding Debt (i.e., your loan amount plus interest on the loan) at any time by sending the repayment to our Operations Center. We will credit repayments on the Business Day that we receive them. You must clearly mark a repayment as a loan repayment or it will be credited as a premium.

If a loan repayment is made which exceeds the Outstanding Debt, we will consider the excess to be part of a scheduled premium payment, and the payment will be subject to the rules on acceptance of premium payments.

Upon each loan repayment, we will transfer an amount equal to the loan repayment from the Loan Account to the Variable Account and/or Guaranteed Interest Account according to your current premium allocation instructions.

We deduct any Outstanding Debt from your Cash Value and the Death Benefit proceeds payable on the Insured’s death.

Effects of Policy Loans

A loan affects the Policy because we reduce Death Benefit proceeds and Cash Value under the Policy by the amount of Outstanding Debt. Repaying the loan causes the Death Benefit proceeds and Fund Value to increase by the amount of the repayment. As long as there is Outstanding Debt, we will hold an amount in the Loan Account equal to the loan amount as collateral. This amount is not affected by the Variable Account’s investment performance or interest we credit on amounts allocated to the Guaranteed Interest Account. Amounts transferred from the Variable Account as collateral will affect the Fund Value of your Policy because we credit such amounts with an interest rate we declare rather than a rate of return reflecting the investment performance of the Variable Account.

There are risks involved in taking a loan, a few of which include the potential for your Policy to terminate if, after your third policy anniversary (or, in some instances, the third anniversary following an increase in Specified Amount), projected earnings taking into account Outstanding Debt are not achieved. A loan may have adverse tax consequences. See “Tax Considerations.”

We will notify you if your Policy is in risk of termination and has entered a 61-day grace period. See “Termination.”

TERMINATION

General

Your Policy will remain in effect as long as:

it has a Cash Value greater than zero; and

you make any required additional premium payments during the 61-day grace period.

If your Policy does not meet the conditions specified above, it will be in default. In that case, we will mail you a notice of insufficient premium that will inform you of the premium you must pay to keep your Policy in effect. You must pay this premium amount within the 61-day grace period from the date we send notice to you. If you do not pay the required premium, your Policy will end.

As discussed below, we have special rules relating to termination during the first three Policy Years and for three Policy Years following an increase in Specified Amount if that increase became effective during the first three Policy Years.

Special Rules for First Three Policy Years

During the first three Policy Years (or the first three Policy Years following an increase in Specified Amount during that period), we guarantee that your Policy will not lapse if, on each Monthly Anniversary Day, either:

•

Your Policy’s Cash Value is greater than zero; or

•

The sum of the premiums paid minus all partial surrenders (excluding related fees), minus any Outstanding Debt, is greater than or equal to the Minimum Monthly Premium times the number of months your Policy has been in effect (or number of months from the most recent increase in Specified Amount). We refer to this as the minimum monthly premium test.

Your Policy may be at risk of termination if:

•

The insufficiency occurs after the first three Policy Years; or

•

The minimum monthly premium test has not been met during the first three Policy Years (as described above).

Amounts You Must Pay to Keep Your Policy in Effect

If you receive a notice of insufficient premium, you must pay the amount stated in the notice to keep your Policy in effect. In general, the amount you must pay will vary based on the Policy Year of your Policy.

During the first three Policy Years (or within three years of an increase in Specified Amount during that period), you must pay:

any unpaid Minimum Monthly Premium; plus

one succeeding Minimum Monthly Premium.

After the third policy anniversary (or after three years from the most recent increase in Specified Amount during that period), you must pay:

any unpaid Monthly Deduction; plus

an amount equal to two succeeding Monthly Deductions (plus the amount of the deductions from premiums for various taxes and the sales charge).

Your Policy Will Remain in Effect During the Grace Period

Your Policy will remain in effect through the grace period. This means that if the Insured should die during the grace period, a Death Benefit would still be payable, although we generally would reduce the Death Benefit proceeds by the unpaid Monthly Deduction as well as the Monthly Deduction for the month of death and by the amount of any Outstanding Debt. If you do not pay the required premium before the grace period ends, your Policy will terminate. It will have no value and no benefits will be payable. However, you may reinstate your Policy within certain circumstances.

Reinstatement

If you have not surrendered your Policy and it is before the maturity date, you may reinstate your Policy within five years after the Monthly Anniversary Day that falls at the beginning of the grace period. To reinstate your Policy, you must provide us the following four items:

a written application received at our Operations Center within five years of the end of the grace period;

satisfactory evidence to us of the insurability of the Insured;

payment of a premium large enough to cover:

the balance we told you in the notice of insufficient premium that was necessary to keep your Policy in effect; and

an amount sufficient to keep your Policy in force for at least one month from the reinstatement date; and

payment or reinstatement of any Outstanding Debt you owe us on the Policy, plus payment of interest on any reinstated Debt from the beginning of the grace period to the end of the grace period at the rate which applies to policy loans on the date of reinstatement. This is an annual rate of 5.00% for Policy Years 1-20 and 4.25% for Policy Years 21 and after.

We will reinstate any surrender charge that would have been outstanding on the date of reinstatement had the Policy remained in force.

Your Fund Value on the date of reinstatement will be based on the reinstated surrender charge, the net premium paid, the reinstated Outstanding Debt, and any Monthly Deduction due on the reinstatement date. Should we reinstate your Policy, your Policy will be reinstated on the Monthly Anniversary Day that falls on, or immediately precedes, the date we approved your application for reinstatement. At that time, we will allocate Fund Value minus Outstanding Debt (if applicable) among the Subaccounts and the Guaranteed Interest Account according to your most recent scheduled premium payment allocation instructions.

PAYMENTS AND TELEPHONE/FACSIMILE/WEB TRANSACTIONS

You may send your written request for payment or transfer request to our Operations Center or give it to one of our authorized agents. We will ordinarily pay any Death Benefit proceeds, loan proceeds or surrender or partial surrender proceeds in a lump sum within seven days after receipt at our Operations Center of all the documents required for such a payment.

Other than the Death Benefit proceeds, which we determine as of the date the Insured’s death, the amount we pay or transfer, as appropriate, is as of the end of the Business Day during which our Operations Center receives all required documents. We may pay your surrender proceeds or Death Benefit proceeds as a lump sum or under one of the settlement options available under the Policy. Contact our your agent or our Operations Center for more information regarding the settlement options.

Any Death Benefit proceeds that we pay in one lump sum will include interest from the date of death to the date of payment. We will pay interest on the proceeds at a rate of not less than 2³/4% per year.

We may delay making a payment or processing a transfer request if:

•

the New York Stock Exchange is closed on other than customary weekend and holiday closing or trading on the New York Stock Exchange is restricted as determined by the SEC;

•

an emergency exists, as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to determine the value of the Account’s net assets; or

•

for such other periods as the SEC by order may permit.

We may also defer making payments attributable to a check that has not cleared the bank on which it is drawn. We reserve the right to defer payments from the Guaranteed Interest Account for up to six months.

If mandated under applicable law, we may be required to reject a premium payment. We may also be required to provide additional information about your account to government regulators. In addition, we may be required to block an Owner’s account and thereby refuse to pay any request for transfers, withdrawals, surrenders, loans or death benefits, until instructions are received from the appropriate regulator.

Telephone/Facsimile/Web Transactions

You may request a transfer of Fund Value or change allocation instructions for future premiums by telephone, facsimile or via the Web if you have completed and signed a telephone/facsimile/Web transfer authorization form, and we have received that form at our Operations Center. You may elect these privileges when you apply for the Policy. These privileges are subject to our rules and conditions, and we have reserved the right to modify or terminate these privileges. We will process your telephone, facsimile or Web instructions as of the end of the Business Day that we receive them, subject to the limitations stated in this section and the Transfer section of the prospectus. We will only accept telephone, facsimile or Web transfer and allocation instructions if they are complete and correct.

We have adopted guidelines (which we believe to be reasonable) relating to telephone/facsimile/Web transfers and allocation instructions. These guidelines, among other things, outline procedures to be followed which are designed to prevent unauthorized instructions (such as recording your telephone transfer and allocation instructions). If these procedures are followed, we will not be liable for, and you will therefore bear the entire risk of, any loss as a result of our following telephone/facsimile/Web instructions if such instructions prove to be fraudulent. A copy of the guidelines and our form for electing telephone/facsimile/Web transfer privileges is available from your agent or by calling us at 1-800-487-6669.

Please note that our telephone or internet system may not always be available. Any telephone or internet system, whether it is yours, your service provider’s, or your registered representative’s, can experience unscheduled outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our system handle heavy use, we cannot promise complete reliability under all circumstances. If your are experiencing problems, you may make your transaction request by writing our Operations Center.

CHARGES AND DEDUCTIONS

We will deduct the charges described below to cover our costs and expenses, services provided, and risks assumed under the Policies. We incur certain costs and expenses for the distribution and administration of the Policies and for providing the benefits payable thereunder.

Services and benefits we provide:

•

the Death Benefit, surrender benefit and loan benefit under the Policy;

•

investment options, including premium allocations;

•

administration of elective benefits; and

•

the distribution of reports to Owners.

Costs and expenses we incur:

•

processing applications for and issuing the Policies;

•

maintaining records;

•

administering settlement options;

•

furnishing accounting and valuation services (including the calculation and monitoring of daily Subaccount values);

•

reconciling and depositing cash receipts;

•

those associated with underwriting applications and increases in Specified Amount;

•

sales and marketing expense, including compensation paid in connection with the sales of the Policies;

•

providing toll-free inquiry services;

•

other costs of doing business, such as federal, state and local premium taxes and other taxes and fees.

The risks we assume include:

•

that the Insured may live for a shorter period of time than estimated, resulting in the payment of greater Death Benefits than expected; and

•

that the costs of providing the services and benefits under the Policies will exceed the charges deducted.

The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge. For example, surrender charges we collect may not fully cover all of the sales and distribution expenses we actually incur. We also may realize a profit on one or more of the charges. We may use any such profits for any corporate purpose, including the payment of sales expenses.

Deductions from Premium Payments

We deduct a sales charge and a tax charge from each premium payment before we apply that payment to your Fund Value. The sales charge is a percentage of each premium paid. The amount of the sales charge will be 1.45% of gross premium plus 4.00% of gross premium up to a certain premium amount in Policy Years 1-10 and will be 1.45% of gross premium in Policy Years 11 and later. Your policy will contain more specific information.

We also deduct a tax charge for state and local premium taxes and for federal tax on deferred acquisition costs. The state and local premium tax charge is currently 0.8% of your premium payment (this corresponds to the premium tax charged in New York). The federal tax charge for deferred acquisition costs of the Company is currently 1.25% of your premium payment and is used to cover our estimated cost for federal income tax treatment of deferred acquisition costs. We will not deduct the federal tax deferred acquisition cost charge where the premiums received from you are not subject to this tax. We reserve the right to increase or decrease the charge for taxes due to any change in tax law or due to any change in the cost to us.

Deductions from the Variable Account

We deduct a daily maximum mortality and expense risk charge of 0.001% from each Subaccount. This corresponds to a maximum annual rate of .35% of net assets for the first 20 Policy years. For Policy years 21 and later, we currently plan to reduce this mortality and expense risk charge to 0.10% annually. We do not assess this charge against assets in the Guaranteed Interest Account or in the Loan Account. The mortality and expense risk charge is part of the net investment factor calculation we make. See “How Your Fund Value Varies.”

The mortality and expense risk charge compensates us for assuming mortality and expense risks under the Policies. The mortality risk we assume is that Insureds, as a group, may live for a shorter period of time than estimated. Therefore, the cost of insurance charges specified in the Policy will not be enough to meet our actual claims. The expense risk we assume is that other expenses incurred in issuing and administering the Policies and operating the Variable Account will be greater than the amount estimated when setting the charges for these expenses.

Deductions from Fund Value – The Monthly Deduction

We take a Monthly Deduction from the Fund Value on the Policy Date and on each Monthly Anniversary Day. We will make the deduction by canceling Units in each Subaccount and withdrawing amounts from the Subaccount. We will take the Monthly Deduction on a pro-rata basis from the Subaccounts and the Guaranteed Interest Account (i.e., in the same proportion that the value in each Subaccount and the Guaranteed Interest Account bears to the sum of all Subaccounts and the Guaranteed Interest Account on the Monthly Anniversary Day). Because portions of the Monthly Deduction can vary from month-to-month, the Monthly Deduction will also vary.

The Monthly Deduction equals:

•

The cost of insurance charge for the Policy; plus

•

The administrative charge; plus

•

The Monthly Expense Charge; plus

•

The charges for any optional insurance benefits.

Cost of Insurance. We assess a monthly cost of insurance charge to compensate us for insuring the Death Benefit (i.e., the anticipated cost of paying a death benefit that exceeds your Fund Value). Depending on a number of factors (such as gender, age, risk class, and policy duration), the cost of insurance charge may vary from Policy to Policy and from Monthly Anniversary Day to Monthly Anniversary Day. To determine your cost of insurance charge on a Monthly Anniversary Day, we multiply the cost of insurance rate at the Insured’s attained age by the amount at risk and divide that amount by 1,000.

The amount at risk depends in part on the Death Benefit Option that you selected and your Policy’s Fund Value on the Monthly Anniversary Day. Other factors that affect the amount at risk include investment performance, payment of premiums, and charges to the Policy. If you elected Death Benefit Option 1, your amount at risk on a Monthly Anniversary Day is the difference between 1 and 2 where:

is the Death Benefit that would have been payable in the event of the death of the Insured on that Monthly Anniversary Day divided by 1.003274; and

is the Fund Value on that Monthly Anniversary Day before we assess the Monthly Deduction.

If you elected Death Benefit Option 2, your amount at risk on a Monthly Anniversary Day is equal to the sum of 1 and 2 where:

your Specified Amount in force; and

the excess between the Death Benefit payable on that Monthly Anniversary Day, less Fund Value on that Day, less the Specified Amount in force.

The cost of insurance rate for the Insured is based on age, gender, and risk class. We currently place Insureds into the following risk classes when we issue the Policy: Ultimate Select, Select Non-tobacco, Select Tobacco, Standard Non-tobacco, Standard Tobacco, or Special Class. The original risk class applies to the initial Specified Amount. The cost of insurance rate generally increases with the age of the Insured.

We calculate the insurance rate separately for the initial Specified Amount and for any increase in Specified Amount. A different risk class may apply to any increase, based on the Insured’s circumstances at the time of the increase in Specified Amount.

We may change the insurance rates from time to time at our sole discretion, but we guarantee that the insurance rates we charge will never exceed the maximum rates shown in your Policy. These rates are based on the 1980 Commissioners’ Standard Ordinary Mortality Tables. The maximum insurance rates are based on the Insured’s age last birthday at the start of the Policy Year. The rates we currently charge are, at most ages, lower than the maximum permitted under the Policies, and depend on our expectation of future experience with respect to investment earnings, mortality, expenses, persistency, and taxes. A change in rates will apply to all persons of the same age, gender (where applicable), and risk class and whose Policies have been in effect for the same length of time.

Our insurance rates distinguish between women and men. We offer Policies based on unisex mortality tables if required by law.

Administrative Charge. We deduct a $25.00 charge each month to compensate us for administrative expenses during the first Policy Year. In Policy Years 2 and later, we deduct a $7.50 charge each month to compensate us for administrative expenses.

Monthly Expense Charge. We deduct this charge during the first 4 Policy Years and for 4 Policy Years following an increase in Specified Amount. This charge is made per $1,000 of Specified Amount based on the Insured’s age on the Policy Date (or date of the increase), gender, and smoking status. We show the maximum amount of these charges in the “Fee Table” section of this Prospectus.

Optional Insurance Benefits Charge. We charge you each month for the optional insurance benefits you added to your Policy by rider. We state these charges in the Fee Table and your rider. We describe the charges for the Term Life Term Rider, the Purchase Option Rider and the Enhanced Maturity Extension Rider. The charge for the Term Life Term Rider is deducted on the date the rider is issued and on each Monthly Anniversary Day. The charge for the Term Life Term Rider, which is based on the cost of insurance charges and on the Insured’s age, sex, risk class and the number of years after the rider is issued, has a guaranteed range of $0.08 to $10.45 per $1,000 of term insurance purchased. The charge for the Purchase Option Rider is deducted on the date the rider is issued and on each Monthly Anniversary Day until the Policy anniversary that follows the Insured’s 49th birthday. This charge varies based on the Insured’s age, and has a guaranteed range from $0.05 to $0.36 per $1,000 of purchase option insurance. The charge for the Enhanced Maturity Extension Rider is also deducted when we issue the Rider and on each Monthly Anniversary Day. The guaranteed maximum charge for the Enhanced Maturity Extension Rider is $0.01 per $1,000 of Specified Amount plus term insurance.

Transaction Charges

Surrender Charge. We assess a surrender charge against Fund Value upon a full surrender of the Policy to reimburse us for the costs of selling the Policies. We base the surrender charge on a factor per $1,000 of initial Specified Amount (or upon an increase in Specified Amount); this factor grades from 80% to zero over 15 years for Insured’s age 70 or younger (over 11 years for Insured issue ages 71-85) based on a schedule. The factors per $1,000 vary by issue age, gender, and risk class. The grading percentages (as shown below) vary based on issue age and number of full years since we issued the Policy (or since we increased the Specified Amount).


Policy Years	Applicable Percentage for Issue Ages 0-70		Applicable Percentage for Issue Ages 71-85
1-3	80	%	80	%
4	80		70
5	80		60
6	80		50
7	80		40
8	70		30
9	60		20
10	50		10
11	40		0
12	30		0
13	20		0
14	10		0
15 +	0		0

Example: If a male Insured age 35 purchases a Policy with a Specified Amount of $100,000, the per $1,000 of initial Specified Amount surrender charge factor would be $6.40 (Standard Non-Tobacco). The maximum surrender charge during the first seven Policy Years would be 80% of (100 x 6.40) or $512.00.

The maximum surrender charge per $1,000 of initial Specified Amount factor would be $47.60 based upon the assumptions described above and if the Policy were purchased by a male insured age 78 through 85, standard tobacco, or age 81 through 85 select tobacco.

We do not assess a surrender charge for partial surrenders. We do, however, assess a partial surrender fee on each partial surrender.

Partial Surrender Fee. We deduct a partial surrender fee of $10 on each partial surrender you make. We allocate the fee between your remaining Fund Value in the Subaccounts and in the Guaranteed Interest Account on a pro-rata basis, based on the allocation percentages you specified for the partial surrender.

Transfer Charge. We reserve, the right to assess a $25 transfer charge for each transfer you make after the 12th transfer in any Policy Year. We do not currently assess this charge. If we assess a transfer charge, first we will allocate the transfer charge against the elected Subaccounts and/or the Guaranteed Interest Account from which you are requesting that Fund Value be transferred.

Illustration Projection Report Charge. You may request that we prepare an illustration projection report at any time after the first policy anniversary by writing us at the Operations Center. The illustration projection report will project future benefits and values under your Policy. We may impose a charge for each illustration projection report we prepare. We will notify you in advance of the amount of the charge.

Other Charges. We may charge the Subaccounts for federal income taxes that we incur and are attributable to the Variable Account. No such charge is currently assessed. In addition, there are fees and charges deducted from the assets of the Funds. These deductions are described in each Fund’s prospectus.

TAX CONSIDERATIONS

Introduction

The following provides a general description of the federal income tax considerations associated with the policy and does not purport to be complete or to cover all tax situations. This discussion is not intended as tax advice. Counsel or other competent tax advisors should be consulted for more complete information. This discussion is based upon our understanding of the present federal income tax laws. No representation is made as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the Internal Revenue Service.

Tax Status of the Policy

In order to qualify as a life insurance contract for federal income tax purposes and to receive the tax treatment normally accorded life insurance contracts under federal tax law, a policy must satisfy certain requirements which are set forth in the Internal Revenue Code. Guidance as to how these requirements are to be applied is limited. Nevertheless, we believe that the policy should generally satisfy the applicable requirements. There is less guidance with respect to policies issued on a special risk class basis and policies with term riders added and it is not clear whether such policies will in all cases satisfy the applicable requirements particularly if you pay the full amount of premiums permitted under the policy and you select the guideline premium/cash value corridor test. If it is subsequently determined that a policy does not satisfy the applicable requirements, we may take appropriate steps to bring the policy into compliance with such requirements and we reserve the right to restrict policy transactions in order to do so.

In some circumstances, owners of variable contracts who retain excessive control over the investment of the underlying Variable Account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although published guidance in this area does not address certain aspects of the policies, we believe that the owner of a policy should not be treated as the owner of the MONY Variable Account L assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the policies from being treated as the owners of the underlying Variable Account assets.

In addition, the Code requires that the investments of MONY Variable Account L be “adequately diversified” in order for the policies to be treated as life insurance contracts for federal income tax purposes. It is intended that the Variable Account, through the Funds, will satisfy these diversification requirements.

The following discussion assumes that the policy will qualify as a life insurance contract for federal income tax purposes.

Treatment of Policy Benefits

General. We believe that the death benefit under a policy should generally be excludible from the gross income of the beneficiary. Federal, state and local transfer, and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary. A tax advisor should be consulted on these consequences.

Generally, the policy owner will not be deemed to be in actual constructive receipt of the policy cash value until there is a distribution. When distributions from a policy occur, or when loans are taken out from or secured by a policy, the tax consequences depend on whether the policy is classified as a “Modified Endowment Contract.”

Modified Endowment Contracts. Under the Internal Revenue Code, certain life insurance contracts are classified as Modified Endowment Contracts, with less favorable income tax treatment than other life insurance contracts. Due to the policy’s flexibility with respect to premium payments and benefits, each policy’s

circumstances will determine whether the policy is a Modified Endowment Contract. In general, however, a policy will be classified as a Modified Endowment Contract if the amount of premiums paid into the policy causes the policy to fail the “7-pay test.” A policy will fail the 7-pay test if at any time in the first seven policy years, the amount paid into the policy exceeds the sum of the level premiums that would have been paid at that point under a policy that provided for paid-up future benefits after the payment of seven level annual payments.

If there is a reduction in the benefits under the policy during the first seven policy years, for example, as a result of a partial withdrawal, the 7-pay test will have to be reapplied as if the policy had originally been issued at the reduced face amount. If there is a “material change” in the policy’s benefits or other terms, even after the first seven policy years, the policy may have to be retested as if it were a newly issued policy. A material change can occur, for example, when there is an increase in the death benefit which is due to the payment of an unnecessary premium. Unnecessary premiums are premiums paid into the policy which are not needed in order to provide a death benefit equal to the lowest death benefit that was payable in the first seven policy years. To prevent your policy from becoming a Modified Endowment Contract, it may be necessary to limit premium payments or to limit reductions in benefits. A current or prospective policy owner should consult with a competent advisor to determine whether a policy transaction will cause the policy to be classified as a Modified Endowment Contract.

Distributions Other Than Death Benefits from Modified Endowment Contracts. Policies classified as Modified Endowment Contracts are subject to the following tax rules:

All distributions other than death benefits, including distributions upon surrender and withdrawals, from a Modified Endowment Contract will be treated first as distributions of gain taxable as ordinary income and then as tax-free recovery of the policy owner’s investment in the policy only after all gain in the Policy has been distributed.

Loans taken from or secured by a policy classified as a Modified Endowment Contract are treated as distributions and taxed accordingly.

A 10 percent additional penalty tax is imposed on the amount subject to tax except where the distribution or loan is made when the policy owner has attained age 59¹/2 or is disabled, or where the distribution is part of a series of substantially equal periodic payments for the life (or life expectancy) of the policy owner or the joint lives (or joint life expectancies) of the policy owner and the policy owner’s beneficiary or designated beneficiary. A corporate or other non-natural person owner will not meet any of these exceptions.

If a policy becomes a Modified Endowment Contract, distributions that occur during the contract year will be taxed as distributions from a Modified Endowment Contract. In addition, distributions from a policy within two years before it becomes a Modified Endowment Contract may be taxed in this manner. This means that a distribution made from a policy that is not a Modified Endowment Contract could later become taxable as a distribution from a Modified Endowment Contract.

Distributions Other Than Death Benefits from Policies that are not Modified Endowment Contracts.

Distributions other than death benefits from a policy that is not classified as a Modified Endowment Contract are generally treated first as a recovery of the policy owner’s investment in the policy and only after the recovery of all investment in the policy as taxable income. However, certain distributions which must be made in order to enable the policy to continue to qualify as a life insurance contract for federal income tax purposes if policy benefits are reduced during the first 15 Policy years may be treated in whole or in part as ordinary income subject to tax.

Loans from or secured by a policy that is not a Modified Endowment Contract are generally not treated as distributions. However, the tax consequences associated with loans after the twentieth policy year are less clear and a tax adviser should be consulted about such loans.

Finally, neither distributions from nor loans from or secured by a policy that is not a Modified Endowment Contract are subject to the 10 percent additional penalty tax.

Investment in the Policy. Your investment in the policy is generally your aggregate premiums. When a distribution is taken from the policy, your investment in the policy is reduced by the amount of the distribution that is tax-free.

Policy Loans. In general, interest on a policy loan will not be deductible. If a policy loan is outstanding when a policy is canceled or lapses, the amount of the outstanding in Outstanding Debt will be added to the amount distributed and will be taxed accordingly. Before taking out a policy loan, you should consult a tax adviser as to the tax consequences.

Multiple Policies. All Modified Endowment Contracts that are issued by us (or our affiliates) to the same policy owner during any calendar year can be treated as one Modified Endowment Contract for purposes of determining the amount includible in the policy owner’s income when a taxable distribution occurs.

Withholding. To the extent that policy distributions are taxable, they are generally subject to withholding for the recipient’s federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions.

Continuation of Policy Beyond Age 100. The tax consequences of continuing the policy beyond the insured’s 100th year are unclear. You should consult a tax adviser if you intend to keep the policy in force beyond the insured’s 100th year.

Business Uses of Policy. Businesses can use the policies in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, tax exempt and nonexempt welfare benefit plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances. If you are purchasing the policy for any arrangement the value of which depends in part on its tax consequences, you should consult a qualified tax adviser. In recent years, moreover, Congress has adopted new rules relating to life insurance owned by businesses. Any business contemplating the purchase of a new policy or a change in an existing policy should consult a tax adviser.

Split Dollar Arrangements. The IRS and the Treasury Department have recently issued guidance that substantially affects split-dollar arrangements. Consult a qualified tax adviser before entering into or paying additional premiums with respect to such arrangements.

Alternative Minimum Tax. There may also be an indirect tax upon the income in the Policy or the proceeds of a Policy under the federal corporate alternative minimum tax, if the Owner is subject to that tax.

Other Tax Considerations. The transfer of the policy or designation of a beneficiary may have federal, state, and/or local transfer and inheritance tax consequences, including the imposition of gift, estate, and generation-skipping transfer taxes. For example, the transfer of the policy to, or the designation as a beneficiary or, or the payment of proceeds to, a person who is assigned to a generation which is two or more generations below the generation assignment of the owner may have generation-skipping transfer tax consequences under federal tax law. The individual situation of each owner or beneficiary will determine the extent, if any, to which federal, state, and local transfer and inheritance taxes may be imposed and how ownership or receipt of policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation-skipping and other taxes.

Possible Tax Law Changes. Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the policy could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the policy.

Our Income Taxes

Currently we do not deduct a charge from the Variable Account for federal income taxes. We reserve the right to charge MONY America Variable Account L for any future federal income taxes we may incur.

Under current laws, we may incur state and local taxes in addition to premium taxes. These additional taxes are not now significant and we are not currently charging for them. If they increase, we may deduct charges for such additional taxes.

OTHER POLICY INFORMATION

Exchange Privilege

During the first 24 months following the Policy Date, you may exchange your Policy for a policy where the investment experience is guaranteed. To accomplish this, the entire amount in the Subaccounts of the Variable Account is transferred to the Guaranteed Interest Account. All future premiums are allocated to the Guaranteed Interest Account. This serves as an exchange of your Policy for the equivalent of a flexible premium universal life policy. No charge is imposed on the transfer when you exercise the exchange privilege.

Paid-up Insurance

You may change to guaranteed paid-up insurance on a Policy anniversary. At that time, the Specified Amount will be reduced to an amount that the Cash Value will maintain in effect until the maturity date when applied as a net single premium. However, the maximum amount of Cash Value applied will not be greater than necessary to provide an amount at risk equal to the amount at risk immediately before this option becomes effective. We will refund to you any Cash Value in excess of the amount we applied.

Assignment

You may assign any interest in your Policy to another person. You must send written notice of the assignment to us at our Operations Center. The assignment will take effect once we have recorded the assignment. We may rely solely on the statement of the assignee as to the amount of his or her interest. All assignments will be subject to Outstanding Debt and any action we took before the assignment took effect. Please see your Policy for more information.

Settlement Options

We offer several settlement options as alternatives to the payment of Death Benefit proceeds or Cash Value in a lump sum.

In selecting a settlement option: (1) the proceeds applied must be at least $1,000; and (2) the payee cannot be a corporation, association, or fiduciary. We will make payments under a settlement option monthly unless you or the payee request that we make the payments quarterly, semiannually or annually. If payments of the chosen frequency would be less than $25 each, we may use a less frequent payment basis.

You, while the Insured is living, or your payee (not more than one month after the proceeds become payable) may select a settlement option by writing us at our Operations Center. Please see your Policy for more information about the settlement options.

Misstatement of Age or Sex

If you misstated the Insured’s age or sex in your application, we will adjust the Death Benefit proceeds.

Suicide Exclusion

If the Insured dies by suicide, while sane or insane, within two years from the Policy Date or reinstatement date, we will limit the Death Benefit proceeds to the premium payments less any partial surrender amounts (and their

fees) and any Outstanding Debt. If an Insured dies by suicide, while sane or insane, within two years of the effective date of any increase in the Specified Amount, the amount payable with respect to that increase will be limited to the cost of insurance charges you paid with respect to such increase.

Incontestability

The Policy limits our right to contest the Policy as issued or as increased, except for material misstatements contained in the application or a supplemental application, after it has been in force during the Insured’s lifetime for a minimum period, generally for two years from the Policy Date, or effective date of the increase in Specified Amount.

Other Changes to Your Policy

At any time, we may make such changes in the Policy as are necessary:

•

to assure compliance at all times with the definition of life insurance prescribed by the Internal Revenue Code;

•

to make the Policy, our operations, or the operation of the Variable Account conform with any law or regulation issued by any government agency to which they are subject; or

•

to reflect a change in the operation of the Variable Account, if allowed by the Policy.

Only one of our executive officers has the right to change the Policy. No agent has the authority to change the Policy or waive any of its terms. An executive officer of the Company must sign all endorsements, amendments, or riders to be valid.

ADDITIONAL INFORMATION

Sale of the Policies

We have entered into a distribution agreement with MONY Securities Corporation (“MSC”), a wholly owned subsidiary of MONY Life Insurance Company, to act as principal underwriter and for the distribution and sale of the Policies. MSC is registered as a broker dealer under the Securities Exchange Commission under the Securities Exchange Act of 1934, as well as with the securities commissions in the states in which it operates, and is a member of the National Association of Securities Dealers, Inc. (“NASD”). The Policies are sold by individuals who are registered representatives of MSC and who are also licensed as life insurance agents for the Company. The Policies may also be sold through other broker-dealers authorized by MSC and applicable law to do so.

MSC offers the Policies through its registered representatives who are registered with the NASD and with the states in which they do business. More information about MSC and its registered persons is available at http://www.nasdr.com or by calling 1-800-289-9999. You also can obtain an investor brochure from NASD Regulation describing its Public Disclosure Program.

Compensation payable to MSC’s sales representatives for the sale of the Policies will be based upon the following schedule. After issue of the Policy, commissions will equal at most 50% of premiums paid up to a maximum amount. Thereafter, commissions will equal at most 3.8% of any additional premiums plus, beginning in the second Policy Year on each succeeding quarterly anniversary for so long as the policy shall remain in effect, an annualized rate of 0.25% of the Fund Value of the Policy. Upon any subsequent increase in Specified Amount, commissions will equal at most 50% of premiums paid on or after the increase up to a maximum amount. Thereafter, commissions will return to no more than the 3.8% level. Further, registered representatives may be eligible to receive certain bonuses and other benefits based on the amount of earned commissions.

In addition, registered representatives who meet specified production levels may qualify, under sales incentive programs adopted by the Company, to receive non-cash compensation such as expense-paid trips, expense-paid educational seminars and merchandise. The Company makes no separate deductions, other than previously described, from premiums to pay sales commissions or sales expenses.

MSC will receive 12b-1 fees from certain of the Funds as compensation for providing certain distribution and shareholder support services.

MSC may enter into selling agreements with other broker dealers that are members of the NASD and whose representatives are authorized by applicable law to sell variable life insurance policies. Commissions paid to these broker dealers for their representatives will not exceed the commissions described above. The selling agreement does not restrict these broker dealers from retaining a portion of commissions.

Commissions or overrides may also be paid to broker-dealers providing wholesaling services such as sales support and training for sales representatives who sell the Policies. MSC may pay certain selling firms additional amounts for sales promotions relating to the Policies and costs associated with sales conferences and educational seminars for their sales representatives. The terms of any particular agreement governing the payments may vary among selling broker-dealers.

We intend to recapture commissions and other sales expenses through fees and charges imposed under the Policy. Commissions paid on the Policy, including other incentives or payments, are not charged directly to the Policy owners or the Variable Account.

Other Information

We filed a registration statement with the SEC under the Securities Act of 1933, as amended, for the Policies being offered here. This prospectus does not include all of the information set forth in the registration statement (including the Statement of Additional Information), its amendments, and exhibits. Statements in this prospectus about the content of the Policies and other legal instruments are summaries. For the complete text of those Policies and instruments, please refer to those documents as filed with the SEC. You may obtain these documents from the SEC’s principal office in Washington, D.C., upon payment of the SEC’s prescribed fees, or by assessing the SEC’s website at http//www.sec.gov.

Legal Proceedings

The Company, like all other companies, is involved in lawsuits, including class action lawsuits. In some class action and other lawsuits involving insurance companies, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, we believe that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on us or the Variable Account.

Recently, there has been a significant increase in federal and state regulatory activity in the financial services industry relating to numerous issues, including market timing and late trading of mutual fund and variable insurance products. The Company, like many others in the financial services industry, has received requests for information from the SEC seeking documentation and other information relating to these issues. In addition, the SEC has recently conducted an on-site examination of the Company’s variable separate accounts. The Company has been responding to these requests and continues to cooperate fully with the regulators.

POLICY ILLUSTRATIONS

Upon request, the Company will send you an illustration of future benefits under the Policy based on both guaranteed and current cost assumptions. You should obtain a personalized illustration before purchasing a Policy.

FINANCIAL STATEMENTS

The audited financial statements of MONY Variable Account L and the Company are set forth in the Statement of Additional Information.

These financial statements have been audited by PricewaterhouseCoopers LLP. The financial statements of the Company should be considered only as bearing upon the ability of the Company to meet its obligations under the Policies. You should not consider the financial statements of the Company as affecting investment performance of assets in the Variable Account.

GLOSSARY

For your convenience, we are providing a glossary of the special terms we use in this prospectus.

Attained Age – Age at issue plus the number of Policy years since Policy was issued.

Beneficiary – the person or entity you designate to receive the death benefit payable at the death of the Insured.

Business Day – is any day the New York Stock Exchange is open for regular trading or on any other day there is enough trading to change the Unit value of the Subaccount. Our Business Day ends at 4:00 pm Eastern time.

Cash Value – the Fund Value of the Policy less any surrender charge and any Outstanding Debt.

Fund – any open-end management investment company in which the Variable Account invests.

Fund Value – the total amount under the Policy in each Subaccount, the Guaranteed Interest Account, and the Loan Account.

General Account – assets of the Company other than those allocated to the Variable Account or any of our other separate accounts.

Guaranteed Interest Account – is a fixed account that is part of our General Account.

Insured – the person on whose life we base this Policy.

Loan Account – an account to which we transfer amounts from the Subaccounts of the Variable Account and the Guaranteed Interest Account to use as collateral for any Policy loan that you request. The Loan Account is part of the Company’s General Account.

Maturity Age – the policy anniversary following the Insured’s 100th birthday. The maturity date is the date the Policy reaches the Maturity Age.

Monthly Anniversary Day – the first Business Day of each policy month.

Monthly Deduction – a deduction we take on each Monthly Anniversary Day that consists of the cost of insurance charge, any additional benefit charges, an administrative charge, and a Monthly Expense Charge.

Operations Center – the Company’s service center at One MONY Plaza, P.O. Box 4720, Syracuse, New York 13221. The telephone number of the Operations Center is 1-800-487-6669.

Outstanding Debt – the unpaid balance of any loan which you request on the Policy. The unpaid balance includes accrued loan interest which is due and has not been paid by you.

Owner – the owner of the Policy. “You” or “your” refers to the Owner.

Policy – the Policy with any attached application(s), any riders, and any endorsements.

Policy Date – the date we authorize the Policy to be delivered to you (we call this the “policy release date”) or, if later, the date as you requested your Policy to become effective. We measure Policy Years and anniversaries from the Policy Date. The Policy Date is shown in your Policy. If the Policy Date is the 29th, 30th, or 31st of a month, there will be some calendar months when there is no such date. For those months, the policy month will start on the last day of the calendar month.

Specified Amount – the minimum death benefit for as long as the Policy remains in effect.

Subaccount – a subdivision of the Variable Account that invests exclusively in shares of a Fund.

Unit – the measure of value in a Subaccount.

Variable Account – MONY Variable Account L, a segregated asset account of the Company into which you allocate premiums and transfer Fund Value.

STATEMENT OF ADDITIONAL INFORMATION

TABLE OF CONTENTS


ADDITIONAL INFORMATION ABOUT THE COMPANY		1
MONY LIFE INSURANCE COMPANY		1
MONY VARIABLE ACCOUNT L		1
ADDITIONAL POLICY INFORMATION		1
THE POLICY		1
PAID-UP INSURANCE		1
OUR RIGHT TO CONTEST THE POLICY		2
DIVIDENDS		2
BENEFICIARY		2
ASSIGNING THE POLICY		2
THE PORTFOLIOS		3
SETTLEMENT OPTIONS		3
SALE OF THE POLICIES		4
ADDITIONAL INFORMATION		5
POLICIES ISSUED IN CONJUNCTION WITH EMPLOYEE BENEFIT PLANS		5
LEGAL DEVELOPMENTS REGARDING UNISEX ACTUARIAL TABLES		6
REPORTS		6
RECORDS		6
LEGAL MATTERS		6
EXPERTS		7
FINANCIAL STATEMENTS		7
INDEX TO FINANCIAL STATEMENTS		F-1

To learn more about us, the Policy (including more information concerning compensation paid for the sale of the Policy) and the Variable Account, you should read the Statement of Additional Information (“SAI”) dated the same date as this prospectus. The Table of Contents for the SAI is on the last page of this Prospectus. For a free copy of the SAI, please contact your agent, call us toll-free at 1-800-487-6669, or write us at our Operations Center.

You may also contact your agent, call us toll-free, or write us at our Operations Center if you wish to receive personalized illustrations of your Policy’s Death Benefits, Cash Values and Fund Values, and to request other information about your Policy.

The SAI has been filed with the SEC and is incorporated by reference into this Prospectus and is legally a part of this Prospectus. You may review and copy information about us and the Policy (including the SAI) at the SEC’s Public Reference Room in Washington, DC, or you may obtain information upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 450 Fifth Street, N.W., Washington, DC 20549-0102 or by accessing the SEC website at http://www.sec.gov. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 942-8090.

Investment Company Act of 1940 Registration File No. 811-06215.

MONY Variable Universal Life

MONY VARIABLE ACCOUNT L

STATEMENT OF ADDITIONAL INFORMATION

For

INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY

Issued by

MONY Life Insurance Company

1740 Broadway

New York, NY 10019

Operations Center:

One MONY Plaza

P.O. Box 4720

Syracuse, NY 13221

(800) 487-6669

This Statement of Additional Information (“SAI”) contains additional information regarding the individual flexible premium variable life insurance policy (the “Policy”) offered by MONY Life Insurance Company (“we,” “us,” “our,” or the “Company”). Capitalized terms in this SAI have the same meanings as in the prospectus for the Policy. This SAI is not a prospectus, and should be read together with the prospectus for the Policy dated May 3, 2004 and the prospectuses for AIM Variable Insurance Funds, The Alger American Fund, Dreyfus Investment Portfolios, Enterprise Accumulation Trust, Franklin Templeton Variable Insurance Products Trust, Janus Aspen Series, Lord Abbett Series Fund, MFS Variable Insurance Trust, MONY Series Fund, Inc., Oppenheimer Variable Account Funds, PIMCO Variable Insurance Trust and The Universal Institutional Funds, Inc. You may obtain a copy of these prospectuses by writing or calling us at our address or phone number shown above.

The date of this Statement of Additional Information is May 3, 2004.

333-104156

STATEMENT OF ADDITIONAL INFORMATION

TABLE OF CONTENTS


ADDITIONAL INFORMATION ABOUT THE COMPANY		1
MONY LIFE INSURANCE COMPANY		1
MONY VARIABLE ACCOUNT L		1
ADDITIONAL POLICY INFORMATION		1
THE POLICY		1
PAID-UP INSURANCE		1
OUR RIGHT TO CONTEST THE POLICY		2
DIVIDENDS		2
BENEFICIARY		2
ASSIGNING THE POLICY		2
THE PORTFOLIOS		3
SETTLEMENT OPTIONS		3
SALE OF THE POLICIES		4
ADDITIONAL INFORMATION		5
POLICIES ISSUED IN CONJUNCTION WITH EMPLOYEE BENEFIT PLANS		5
LEGAL DEVELOPMENTS REGARDING UNISEX ACTUARIAL TABLES		6
REPORTS		6
RECORDS		6
LEGAL MATTERS		6
EXPERTS		7
FINANCIAL STATEMENTS		7
INDEX TO FINANCIAL STATEMENTS		F-1

ADDITIONAL INFORMATION ABOUT THE COMPANY

MONY LIFE INSURANCE COMPANY

MONY Life Insurance Company issues the Policies. We are currently licensed to sell life insurance and annuities in all 50 states of the United States, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico.

The Company was founded in 1842 as The Mutual Life Insurance Company of New York. In 1998, The Mutual Life Insurance Company of New York converted to a stock company through demutualization and was renamed MONY Life Insurance Company. The demutualization did not have any material effect on the obligations of the Company under the policies or on MONY Variable Account L.

MONY Securities Corporation, a wholly owned subsidiary of the Company, is the principal underwriter for the Policies.

We are subject to regulation by the state of New York and regulation by the Superintendent of Insurance in New York. We file an annual statement with the state of New York, and periodically, the Superintendent of Insurance for the State of New York assesses our liabilities and reserves and those of the Variable Account and assesses their adequacy. We are also subject to the insurance laws and regulations of other states in which we are licensed to operate.

MONY VARIABLE ACCOUNT L

The Variable Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act”), and meets the definition of a separate account under the federal securities laws.

ADDITIONAL POLICY INFORMATION

THE POLICY

The Policy, any attached riders and/or endorsements, the application and any supplemental applications make up the entire contract. Only statements made in the applications can be used to void the Policy or to deny a claim. We assume that all statements in an application are made to the best of the knowledge and belief of the person(s) who made them, and, in the absence of fraud, those statements are considered representations and not warranties. We rely on those statements when we issue or change a Policy.

PAID-UP INSURANCE

On any policy anniversary, you may change to guaranteed paid-up insurance. At the time of the change, we will reduce the Policy’s Specified Amount to an amount that the Policy’s Cash Value will keep in effect until the maturity date when applied as a single net premium. The maximum amount of Cash Value that we will apply will not be any greater than needed to provide an amount at risk that is equal to the amount at risk immediately prior to this option becoming effective. You will be refunded any Cash Value in excess of the amount we applied. You can discuss with your agent to learn more about this option.

The net single premium rates will be based on: (a) the 1980 CSO mortality tables at the Insured’s gender and attained age and class of risk on the later of the policy date and the most recent increase in coverage under the policy; and (b) 4.0% interest. On and after the effective date, the Cash Value of the paid-up coverage will equal the present value of future guaranteed benefits based on the net single premium rates described above without regard to any loans.

To obtain paid-up insurance, we must receive a written request 30 days before the policy anniversary date on which it becomes effective. The endorsement issued to reflect the change to paid-up insurance will show the reduced Specified Amount and the guaranteed Cash Value on the effective date and each policy anniversary thereafter.

(1)

Once the paid-up insurance option is effective the following conditions apply:

It may not be revoked.

The Company will not accept any further premium.

No further optional policy changes may be made.

The Policy is no longer subject to the administrative charge and the Monthly Expense Charge.

Any surrender charge, loan balance and loan interest which existed immediately before the effective date will be set to zero.

Any partial surrender will result in a recalculation of the Specified Amount and Cash Value.

Any additional benefits provided by rider will terminate.

The Death Benefit will equal the reduced Specified Amount.

OUR RIGHT TO CONTEST THE POLICY

In issuing the Policy, we rely on all statements made by or for you and/or the Insured in the application or in a supplemental application. Therefore, we may contest the validity of the Policy based on material misstatements made in the application (or any supplemental application).

However, we will not contest the Policy as issued or as increased, except for material misstatements contained in the application or a supplemental application, after it has been in force during the Insured’s lifetime for a minimum period, generally for two years from the Policy Date, or effective date of the increase in Specified Amount.

DIVIDENDS

This Policy is non-participating. We do not pay dividends on the Policy.

BENEFICIARY

You name the Beneficiary when you apply for the Policy. You may designate if the Beneficiary has to be living or surviving at the Insured’s death. If you so designate, then, unless otherwise provided, that Beneficiary must be living on the 14th day after the Insured’s death or, if earlier, the date we receive due proof of the Insured’s death. The share of the Death Benefit proceeds of any Beneficiary who is not living on the earlier day will be payable to remaining Beneficiaries. Unless provided in the Beneficiary designation, if there is no Beneficiary named or living on the date of the Insured’s death, we will pay the Death Benefit proceeds to the Insured’s executors or administrators.

You may change the Beneficiary, unless you have given up this right, as long as the Insured is living by writing us at our Operations Center. The change will take effect when we record it retroactively as of the date the request was signed. The change will be subject to any payment we made before we received notice of the change of Beneficiary at our Operations Center.

ASSIGNING THE POLICY

You may assign any interest in your Policy to another person. You must send written notice of the assignment to us at our Administrative Office. The assignment will take effect once we have recorded the assignment. We may rely solely on the statement of the assignee as to the amount of his or her interest. All assignments will be subject to Outstanding Debt. Assignment of a Policy may have adverse tax consequences. Consult the section on “Tax Considerations” in the Prospectus for more information.

(2)

THE PORTFOLIOS

We will purchase shares of the portfolios at net asset value and direct them to the corresponding Subaccount. We will redeem sufficient shares of the appropriate portfolios at net asset value to pay surrender/partial surrender proceeds or other purposes described in your Policy. In general, we will automatically reinvest all dividends and capital gains distributions received from a portfolio in shares of the distributing portfolio at net asset value on the date of distribution. In other words, we do not pay portfolio dividends or portfolio distributions out to Owners as additional Units, but instead reflect them in Unit values. We may elect not to reinvest dividends and capital gains distributions.

Shares of Fund portfolios are not sold directly to the general public. They are offered to insurance company separate accounts to support variable annuity and variable life insurance contracts and to qualified plans.

When shares are sold to both variable life and variable annuity separate accounts, this is called “mixed funding.” When shares are sold to insurance companies that are not affiliated with each other, this is called “shared funding.” Currently, we do not foresee any disadvantages to Owners due to mixed or shared funding. However, differences in tax treatment or other considerations may at some time create conflict of interests between owners of various contracts. The Company and the Boards of Directors of the Funds, and any other insurance companies that participate in the Funds are required to monitor events to identify material conflicts. If there is a conflict because of mixed or shared funding, a company might be required to withdraw the investment of one or more of its separate accounts from the Funds. This might force the Funds to sell securities at disadvantageous prices. See the prospectuses for the Funds.

SETTLEMENT OPTIONS

We offer the following settlement options as alternatives to the payment of Death Benefit proceeds or Cash Value in a lump sum:

Option 1. Interest Income – Under this option, we hold the proceeds and credit the interest earned on those proceeds to the payee. We set the rate of interest for each year, but that rate will never be less than 2³/4 a year. This Option will continue until the earlier of the date the payee dies or the date you elect another settlement option.

Option 2. Income for Specified Period – Under this option, the payee receives an income for the number of years chosen. We then calculate an income that will be based on the Minimum Monthly Income Table 2 for that period. Note that the longer the period selected (i.e., number of years) the lower the dollar amount per $1,000 of proceeds. Payments may be increased by additional interest as we may determine for each year.

Option 3. Single Life Income – Under this option, a number of years called the period certain is chosen. We will then pay income to a single payee for as long as that payee lives or for the number of years chosen (the period certain), whichever is longer. If the payee dies after the end of the period certain, the income payments will stop. The period certain elected may be: (a) 0, 10, or 20 years; or (b) until the total income payments equal the proceeds applied (this is called a refund period certain).

We will calculate the amount of the income payments on the date the proceeds become payable. This amount will be at least as much as the applicable amount shown in the Minimum Monthly Income Table 3 shown in your Policy. The income amounts are based on the 1983 Table “a” (discrete functions, without projections for future mortality) with a 3¹/2 interest.

If the income payments for the period certain elected are the same as income payments based on another available longer period certain, we will deem an election to have been made for the longer period certain.

Option 3A. Joint Life Income – We pay income during the joint lifetime of two people (the payee and another person). That means if one person dies, we will continue to pay the same income (or a lesser income) to the survivor for as long as the survivor lives.

(3)

The survivor may receive the same dollar amount that we were paying before the first payee died or two-thirds of that amount depending on the election made at the time of settlement. Note that if the lesser (two-thirds) amount paid to the survivor is elected, the dollar amount payable while both persons are living will be larger than it would have been if the same amount paid to the survivor had been elected.

We will calculate the amount of income payable while both persons are living (the joint lifetime) on the date the proceeds become payable. This amount will be at least as much as the applicable amount shown in the Minimum Monthly Income Table 3A shown in your Policy. The minimum income amounts are based on the 1983 Table “a” (discrete functions, without projections for future mortality) with 3¹/2 interest.

If a person for whom Option 3A is chosen dies before the first income amount is payable, the survivor will receive settlement instead under Option 3 with 10 years certain.

Option 4. Income of Specified Amount – Under this option, the dollar amount of the income payments is chosen. We will pay that amount for as long as the proceeds and interest last but, the dollar amount chosen must add up to a yearly amount of at least 10% of the proceeds applied. Interest will be credited annually on the balance of the proceeds. We set the rate of interest for each year, but that rate will never be less than 2³/4 a year.

We also may pay proceeds under any other option to which we and the payee may agree.

Before paying Option 3 or 3A, we will require proof of age of the payee that satisfies us.

Even if the death benefit under the Policy is excludible from income, payments under Settlement Options may not be excludible in full. This is because earnings on the death benefit after the insured’s death are taxable and payments under the Settlement Options generally include such earnings. You should consult a tax adviser as to the tax treatment of payments under the Settlement Options.

SALE OF THE POLICIES

MSC is the principal underwriter for the Policies. MSC may enter into selling agreements with other broker dealers that are members of the NASD and whose representatives are authorized by law to sell variable life insurance policies. Commissions paid to these broker dealers for their representatives will not exceed the commissions described in the Prospectus. MSC may pay additional compensation from its own resources to broker dealers based on the level of Policy sales or premium payments.

MSC also acts as principal underwriter for other variable products and distributes non-proprietary variable products and mutual funds.

We offer the Policies on a continuous basis. We anticipate continuing to offer the Policies, but reserve the right to discontinue the offering.

MSC receives fees for the sale of variable life insurance Policies. MSC Received compensation with respect to the policies offered through the Variable account in the following amounts during the periods indicated:



Fiscal Year	Aggregate Amount of Commissions Paid to MSC*	Aggregate Amount of Commissions Retained by MSC After Payments to its Registered Persons and Other Broker-Dealers


2001	$16,870,424	N/A


2002	$14,206,789	N/A


2003	$16,246,718	N/A

*	Includes sales compensation paid to registered persons of MSC.

(4)

MSC passes through commissions it receives and does not retain any override as distributor for the Policies. However, under the distribution agreement with MSC, we pay the following sales expenses: sales representative training allowances; deferred compensation and insurance benefits of registered persons; advertising expenses; and all other expenses of distributing the Policies. We also pay for MSC’s operating and other expenses as it relates to the Policies.

Because sales representatives of MSC are also insurance agents of the Company, they are eligible for various cash benefits, such as bonuses, insurance benefits and financing arrangements, and non-cash compensation programs that the Company offers. These programs include conferences, seminars, meals, sporting events, theater performances, payment for travel, lodging and entertainment, prizes, and awards, subject to applicable regulatory requirements. Sales of the Policies may help sales representatives qualify for such benefits. Sales representatives may receive other payments from the Company for services that do not directly involve the sale of the Policies, including payments made for the recruitment and training of personnel, production of promotional literature, and similar services. In addition, MSC sales representatives who meet certain Company productivity, persistency and length of service standards may be eligible for additional compensation.

We may pay certain broker-dealers an additional bonus after the first Policy year for sales by their sales representatives, which may be up to the amount of the basic commission for the particular Policy year. These broker-dealers may share the bonus or other additional compensation with their sales representatives. In addition, we may reimburse these broker-dealers for portions of their Policy sales expenses.

Certain Funds have adopted a distribution plan in connection with its 12b-1 shares and pay MSC for its costs in distributing these shares, all or some of which may be passed on to a selling broker-dealer that has entered into a selling agreement with MSC. Each distribution plan has been adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, which allows funds to pay fees to those who sell and distribute fund shares out of fund assets. The 12b-1 fees are in consideration of distribution services and expenses incurred in the performance of MSC’s obligations under an agreement with that Fund. Under the distribution plans up to 0.25% is paid to MSC for its distribution-related services and expenses under this agreement. The advisers for certain Funds may, from time to time use their management fee revenue, as well as their past profits or their other resources as may be permitted by regulatory rules, to make payments for distribution services to MSC, which may in turn pay part or all of such compensation to a broker-dealer of record with whom it has entered into a selling agreement.

Sales charges deducted from premium payments, as well as Proceeds from the contingent deferred sales charge on the Policies are retained by us and used to defray the expenses we incur in paying for distribution-related services under the distribution agreement, such as the payment of commissions. Commissions paid on the Policy, including other incentives or payments, are not charged directly to the Policy Owners or the Variable Account.

From time to time the Company, in conjunction with MSC, may conduct special sales programs.

ADDITIONAL INFORMATION

POLICIES ISSUED IN CONJUNCTION WITH EMPLOYEE BENEFIT PLANS

Policies may be acquired in conjunction with employee benefit plans (“EBS Policies”), including the funding of qualified pension plans meeting the requirements of Section 401 of the Code. For EBS Policies, the maximum mortality rates used to determine the monthly cost of insurance charge are based on the Commissioners’ 1980 Standard Ordinary Mortality Tables NB and SB. Under these tables, mortality rates are the same for male and female insureds of a particular attained age and premium class. Illustrations reflecting the premiums and charges for EBS Policies will be provided upon request to purchasers of these Policies. There is no provision for misstatement of sex in the EBS Policies. Also, the rates used to determine the amount payable under a particular settlement option will be the same for male and female insureds.

(5)

LEGAL DEVELOPMENTS REGARDING UNISEX ACTUARIAL TABLES

In 1983, the United States Supreme Court held in Arizona Governing Committee v. Norris that optional annuity benefits provided under an employee’s deferred compensation plan could not, under Title VII of the Civil Rights Act of 1964, vary between men and women on the basis of sex. In that case, the Supreme Court applied its decision only to benefits derived from contributions made on or after August 1, 1983. Subsequent decisions of lower federal courts indicate that, in other factual circumstances, the Title VII prohibition of sex-distinct benefits may apply at an earlier date. In addition, legislative, regulatory, or decisional authority of some states may prohibit the use of sex-distinct mortality tables under certain circumstances. The Policies, other than Policies issued in states which require “unisex” policies (currently Montana), are based upon actuarial tables which distinguish between men and women and, thus, the Policy provides different benefits to men and women of the same age. Accordingly, employers and employee organizations should consider, in consultation with legal counsel, the impact of these authorities on any employment-related insurance or benefits program before purchasing the Policy.

REPORTS

We will send you a report at least annually showing the then current status of your Policy. It will set forth:

since the last report date:

premiums received;

expense charges (including transfer charges, if any);

cost of insurance and any riders;

interest earned on Fund Value in the Loan Account and in the Guaranteed Interest Account; and

any partial surrenders (and their fees).

as of the current report date:

Death Benefit;

Specified Amount; and

Outstanding Debt.

as of the current and prior report dates:

Fund Value;

Subaccount Unit values;

Fund Value in the Guaranteed Interest Account; and

any other information required by law. We also will send you an annual and a semi-annual report for each Fund in which you are investing, as required by the 1940 Act.

RECORDS

We will maintain all records relating to the Variable Account and the Guaranteed Interest Account at our Operations Center.

LEGAL MATTERS

Legal matters in connection with the Policy have been passed on by Arthur D. Woods, Vice President – Variable Products and Broker-Dealer Operations Counsel of the MONY Life Insurance Company. Robert Levy, Vice President – Chief Tax and Benefits Counsel of MONY Life Insurance Company has passed upon legal matters relating to the federal income tax laws.

(6)

EXPERTS

The Financial Statements have been included in this SAI, which is a part of the registration statement, in reliance on the reports of PricewaterhouseCoopers LLP, independent accountants, given on the authority of that firm as experts in accounting and auditing. Actuarial matters included in the prospectus and/or SAI have been examined by Pamela Duffy, Vice President of MONY, as stated in her opinion filed as an exhibit to the Registration Statement.

FINANCIAL STATEMENTS

This SAI contains the audited financial statements of MONY Variable Account L and the Company. The financial statements have been audited by PricewaterhouseCoopers LLP, 1177 Avenue of the America, New York, New York 10036, independent accounts for the Variable Account and the Company.

The financial statements of the Company should be considered only as bearing upon the ability of the Company to meet its obligations under the Policies. They should not be considered as bearing on the investment performance of the assets held in the Variable Account.

(7)

FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS


		Page

With respect to MONY Variable Account L

Report of Independent Accountants		F-3

Statement of assets and liabilities as of December 31, 2003		F-4

Statement of operations for the year ended December 31, 2003		F-14

Statement of changes in net assets for the years ended December 31, 2003 and December 31, 2002		F-24

Notes to financial statements		F-42

With respect to MONY Life Insurance Company

Report of Independent Auditors		F-63

Balance sheets as of December 31, 2003 and 2002		F-64

Statements of income and comprehensive income for the years ended December 31, 2003, 2002 and 2001		F-65

Statements of changes in shareholder’s equity for the years ended December 31, 2003, 2002 and 2001		F-66

Statements of cash flows for the years ended December 31, 2003, 2002 and 2001		F-67

Notes to financial statements		F-69

F-1

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F-2

Report of Independent Auditors

To the Board of Directors of

MONY Life Insurance Company and the

Contractholders of Subaccounts of MONY Variable Account L

In our opinion, the accompanying statements of assets and liabilities and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the Subaccounts of MONY Variable Account L at December 31, 2003, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of MONY Life Insurance Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments at December 31, 2003 by correspondence with the underlying funds’ transfer agents, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

New York, New York

April 14, 2004

F-3

MONY

Variable Account L

STATEMENT OF ASSETS & LIABILITIES

December 31, 2003


	Enterprise Capital Appreciation Portfolio		Enterprise Equity Portfolio		Enterprise Equity Income Portfolio		Enterprise Growth and Income Portfolio

Assets

Shares held in respective Funds		126,860		470,908		69,804		331,567


Investments at cost	$	702,730	$	10,414,324	$	328,201	$	1,641,087


Investments in respective Funds, at net asset value	$	797,952		$8,815,392	$	367,867	$	1,654,520

Amount due from MONY		279		2,029		66		625

Amount due from respective Funds		928		6,449		228		1,130


Total Assets		799,159		8,823,870		368,161		1,656,275


Liabilities

Amount due to MONY		928		6,449		228		1,130

Amount due to respective Funds		279		2,029		66		625


Total Liabilities		1,207		8,478		294		1,755


Net Assets	$	797,952	$	8,815,392	$	367,867	$	1,654,520


Unit Values:

MONY Strategist

MONY Equity Master	$	8.08	$	12.73	$	9.95	$	8.03

MONY Custom Equity Master		8.40		7.33		9.88		8.25

MONY Variable Universal Life Option 1						10.73		10.04

MONY Variable Universal Life Option 2						11.20		10.96

MONY Custom Estate Master		8.02		8.71		10.41		8.15

MONY Survivorship Variable Universal Life								10.06

Units Outstanding:*

MONY Strategist

MONY Equity Master		19,862		593,208		1,801		67,414

MONY Custom Equity Master		64,698		161,723		25,646		105,519

MONY Variable Universal Life Option 1						6,098		19,335

MONY Variable Universal Life Option 2						136		277

MONY Custom Estate Master		11,702		8,683		2,855		3,767

MONY Survivorship Variable Universal Life								1,459

*	Units outstanding have been rounded for presentation purposes.

See notes to financial statements.

F-4


Enterprise Growth Portfolio		Enterprise Global Socially Responsive Portfolio		Enterprise High-Yield Portfolio		Enterprise International Growth Portfolio		Enterprise Multi-Cap Growth Portfolio		Enterprise Managed Portfolio		Enterprise Small Company Growth Portfolio



	459,324		3,862		211,344		364,064		96,246		484,772		103,178


$	2,104,349	$	35,422	$	945,403	$	1,899,093	$	695,745	$	11,015,879	$	690,741


$	2,131,263	$	41,823	$	1,018,679	$	1,641,927	$	713,181	$	8,856,789	$	759,393

	492		2		467		308		182		3,019		144

	1,334		22		810		1,442		447		6,781		448


	2,133,089		41,847		1,019,956		1,643,677		713,810		8,866,589		759,985




	1,334		22		810		1,442		447		6,781		448

	492		2		467		308		182		3,019		144


	1,826		24		1,277		1,750		629		9,800		592


$	2,131,263	$	41,823	$	1,018,679	$	1,641,927	$	713,181	$	8,856,789	$	759,393






$	7.49			$	15.06	$	10.32	$	7.59	$	12.73	$	9.68

	7.52				12.80		6.79		5.55		8.63		9.00

	9.30	$	10.95						9.40		10.03		9.84

	10.56								10.44		10.63		10.54

	7.49				12.51		6.35		5.04		8.40		9.05

	11.01		10.49						9.74		10.84		9.48





	42,532				49,685		136,526		3,846		644,342		6,367

	152,225				18,617		28,667		98,377		60,391		49,163

	46,650		2,996						5,994		10,254		17,779

	2,336								571		139		136

	26,880				2,552		6,112		13,306		2,960		3,747

	787		858						860		534		4,774

F-5

MONY

Variable Account L

STATEMENT OF ASSETS & LIABILITIES (continued)

December 31, 2003


	Enterprise Small Company Value Portfolio		Enterprise Total Return Portfolio		Enterprise Short Duration Bond Portfolio		MONY Series Fund, Inc. Diversified Portfolio		MONY Series Fund, Inc. Equity Growth Portfolio
Assets

Shares held in respective Funds		291,717		14,315		40		9,027		2,715


Investments at cost	$	6,398,137	$	148,208	$	402	$	132,235	$	48,905


Investments in respective Funds, at net asset value	$	6,872,856	$	147,874	$	401	$	93,608	$	44,090

Amount due from MONY		1,658		87		0		0		0

Amount due from respective Funds		4,600		90		6		50		23


Total Assets		6,879,114		148,051		407		93,658		44,113

Liabilities

Amount due to MONY		4,600		90		6		50		23

Amount due to respective Funds		1,658		87		0		0		0


Total Liabilities		6,258		177		6		50		23


Net Assets	$	6,872,856	$	147,874	$	401	$	93,608	$	44,090


Unit Values:

MONY Strategist							$	45.49	$	54.65

MONY Equity Master	$	26.05

MONY Custom Equity Master		13.66	$	10.98

MONY Variable Universal Life Option 1		12.75		11.12

MONY Variable Universal Life Option 2		11.11		10.17	$	10.03

MONY Custom Estate Master		13.05		11.00

MONY Survivorship Variable Universal Life		11.65

Units Outstanding:*

MONY Strategist								2,058		807

MONY Equity Master		213,034

MONY Custom Equity Master		54,796		814

MONY Variable Universal Life Option 1		29,493		12,132

MONY Variable Universal Life Option 2		1,792		366		40

MONY Custom Estate Master		12,282		24

MONY Survivorship Variable Universal Life		1,506

*	Units have been rounded for presentation purposes.

See notes to financial statements.

F-6


MONY Series Fund, Inc. Equity Income Portfolio		MONY Series Fund, Inc. Government Securities Portfolio		MONY Series Fund, Inc. Intermediate Term Bond Portfolio		MONY Series Fund, Inc. Money Market Portfolio		MONY Series Fund, Inc. Long Term Bond Portfolio		AIM Basic Value Fund— Series I		AIM Mid Cap Core Equity Fund— Series I		Alger American Balanced Portfolio— Class O


	3,127		70,238		31,312		3,344,474		51,046		700		29		8,854


$	52,381	$	816,099	$	358,755	$	3,344,474	$	688,289	$	6,902	$	343	$	106,997


$	48,722	$	821,785	$	364,163	$	3,344,474	$	733,535	$	7,462	$	355	$	116,524

	0		20		188		0		165		19		0		84

	25		565		280		2,008		487		12		0		104


	48,747		822,370		364,631		3,346,482		734,187		7,493		355		116,712



	25		565		280		2,008		487		12		0		104

	0		20		188		0		165		19		0		84


	25		585		468		2,008		652		31		0		188


$	48,722	$	821,785	$	364,163	$	3,344,474	$	733,535	$	7,462	$	355	$	116,524




$	53.77			$	29.36	$	20.75	$	37.59

		$	13.81		14.56		12.53		15.97

			12.44		12.70		10.82		13.76

			10.62				10.10		11.54					$	10.78

			10.03				10.01		10.19	$	10.93	$	10.68		10.45

			11.20		11.79		11.06		13.36

			10.60				10.11		11.23						10.70



	906				525		836		434

			19,247		12,074		48,499		22,263

			18,011		13,506		87,165		14,703

			23,154				102,670		9,387						8,992

			177				4,476		392		683		33		480

			1,651		119		51,485		2,251

			6,215				12,364		1,495						1,364

F-7

MONY

Variable Account L

STATEMENT OF ASSETS & LIABILITIES (continued)

December 31, 2003


	Alger American Mid Cap Growth Portfolio— Class O		Dreyfus Socially Responsible Growth Fund— Initial Class		Dreyfus Stock Index Portfolio— Initial Class		Dreyfus IP Small Cap Stock Index Portfolio— Service Class		Fidelity VIP Growth Portfolio— Service Class		Fidelity VIP II ContraFund Portfolio— Service Class

Assets

Shares held in respective Funds		14,445		7,776		57,421		80		33,727		37,706


Investments at cost	$	210,980	$	177,641	$	1,550,332	$	1,035	$	1,009,835	$	755,524


Investments in respective Funds, at net asset value	$	265,793	$	184,990	$	1,631,909	$	1,047	$	1,042,834	$	869,499

Amount due from MONY		0		276		688		0		394		75

Amount due from respective Funds		139		111		1,654		0		681		537


Total Assets		265,932		185,377		1,634,251		1,047		1,043,909		870,111


Liabilities

Amount due to MONY		139		111		1,654		0		681		537

Amount due to respective Funds		0		276		688		0		394		75


Total Liabilities		139		387		2,342		0		1,075		612


Net Assets	$	265,793	$	184,990	$	1,631,909	$	1,047	$	1,042,834	$	869,499


Unit Values:

MONY Strategist

MONY Equity Master			$	7.56	$	7.82			$	6.85	$	9.40

MONY Custom Equity Master	$	11.22		6.23		8.09				6.71		9.62

MONY Variable Universal Life Option 1		11.12

MONY Variable Universal Life Option 2		10.83					$	10.90

MONY Custom Estate Master		14.54		5.98		8.11				6.99		9.46

MONY Survivorship Variable Universal Life		10.99

Units Outstanding:*

MONY Strategist

MONY Equity Master				273		34,877				42,046		24,107

MONY Custom Equity Master		6,300		23,794		149,493				95,204		56,841

MONY Variable Universal Life Option 1		10,964

MONY Variable Universal Life Option 2		166						96

MONY Custom Estate Master		3,401		5,816		18,503				16,570		10,139

MONY Survivorship Variable Universal Life		1,993

*	Units outstanding have been rounded for presentation purposes.

See notes to financial statements.

F-8


Fidelity VIP III Growth Opportunities Portfolio— Service Class		Franklin Income Securities Fund—Class 2		Franklin Rising Dividends Securities Fund—Class 2		Franklin Zero Coupon 2010 Fund—Class 2		INVESCO VIF Financial Services Portfolio		INVESCO VIF Health Sciences Portfolio		INVESCO VIF Telecommunications Portfolio		Janus Aspen Series Mid Cap Growth Portfolio— Institutional Class



	10,524		23		79		4		2,618		3,260		5,711		38,059


$	143,241	$	324	$	1,225	$	72	$	30,431	$	48,793	$	17,002	$	730,983


$	158,495	$	328	$	1,263	$	72	$	35,441	$	57,272	$	21,018	$	814,465

	53		0		0		0		0		0		0		8

	94		0		0		0		52		41		30		927


	158,642		328		1,263		72		35,493		57,313		21,048		815,400




	94		0		0		0		52		41		30		927

	53		0		0		0		0		0		0		8


	147		0		0		0		52		41		30		935


$	158,495	$	328	$	1,263	$	72	$	35,441	$	57,272	$	21,018	$	814,465






$	9.25													$	7.71

	7.91														4.27

								$	11.21	$	10.29	$	8.51

		$	10.85	$	10.73	$	10.05

	7.42														3.56

									10.76		10.73





	1,273														2,485

	15,751														174,064

									2,362		4,986		2,469

			30		118		7

	2,980														14,389

									833		557

F-9

MONY

Variable Account L

STATEMENT OF ASSETS & LIABILITIES (continued)

December 31, 2003


	Janus Aspen Series Balanced Portfolio— Institutional Class		Janus Aspen Series Capital Appreciation Portfolio— Institutional Class		Janus Aspen Series Capital Appreciation Portfolio— Service Class		Janus Aspen Series Flexible Income Portfolio— Service Class		Janus Aspen Series International Growth Portfolio— Service Class		Janus Aspen Series WorldWide Growth Portfolio— Institutional Class

Assets

Shares held in respective Funds		25,546		39,739		3,550		5,467		6,155		45,916


Investments at cost	$	559,367	$	826,171	$	65,894	$	70,612	$	117,400	$	1,200,332


Investments in respective Funds, at net asset value	$	587,041	$	828,162	$	73,407	$	71,732	$	140,877	$	1,185,540

Amount due from MONY		407		50		12		82		71		111

Amount due from respective Funds		356		944		101		40		99		906


Total Assets		587,804		829,156		73,520		71,854		141,047		1,186,557


Liabilities

Amount due to MONY		356		944		101		40		99		906

Amount due to respective Funds		407		50		12		82		71		111


Total Liabilities		763		994		113		122		170		1,017


Net Assets	$	587,041	$	828,162	$	73,407	$	71,732	$	140,877	$	1,185,540


Unit Values:

MONY Strategist

MONY Equity Master	$	10.29	$	6.47							$	5.63

MONY Custom Equity Master		9.88		6.54								5.83

MONY Variable Universal Life Option 1					$	10.69	$	11.43	$	10.70

MONY Variable Universal Life Option 2						10.59		10.14		10.98

MONY Custom Estate Master		10.14		5.83								6.14

MONY Survivorship Variable Universal Life						10.47		11.62		10.62

Units Outstanding:*

MONY Strategist

MONY Equity Master		7,635		52,356								57,282

MONY Custom Equity Master		45,928		67,868								126,465

MONY Variable Universal Life Option 1						5,613		5,242		11,043

MONY Variable Universal Life Option 2						173		168		394

MONY Custom Estate Master		5,387		7,805								20,469

MONY Survivorship Variable Universal Life						1,105		871		1,732

*	Units outstanding have been rounded for presentation purposes.

See notes to financial statements.

F-10


Lord Abbett Bond- Debenture Portfolio— Class VC		Lord Abbett Growth and Income Portfolio— Class VC		Lord Abbett Mid-Cap Value Portfolio— Class VC		MFS Mid Cap Growth Portfolio— Initial Class		MFS New Discovery Portfolio— Initial Class		MFS Total Return Portfolio— Initial Class		MFS Utilities Portfolio— Initial Class		UIF Emerging Markets Equity Portfolio— Class I		UIF Global Value Equity Portfolio— Class I



	6,434		16,507		20,144		15,213		7,085		9,700		3,365		5,942		1,660


$	72,275	$	336,122	$	286,146	$	76,191	$	83,802	$	170,572	$	44,079	$	41,438	$	17,256


$	76,567	$	404,747	$	343,260	$	94,019	$	98,902	$	189,932	$	53,675	$	53,715	$	21,067

	13		238		186		4		0		217		0		0		41

	40		225		201		88		71		116		43		56		12


	76,620		405,210		343,647		94,111		98,973		190,265		53,718		53,771		21,120




	40		225		201		88		71		116		43		56		12

	13		238		186		4		0		217		0		0		41


	53		463		387		92		71		333		43		56		53


$	76,567	$	404,747	$	343,260	$	94,019	$	98,902	$	189,932	$	53,675	$	53,715	$	21,067








		$	10.83	$	10.77

$	12.56		10.55		11.04	$	8.85	$	9.76	$	11.09	$	11.72	$	12.70	$	10.59

	10.45		10.98		10.92		10.57				10.55		10.87

			11.17		13.63

	12.25		10.57		12.08				10.43		10.73				12.10







			7,239		11,722

	4,912		18,273		11,028		10,093		7,553		15,703		4,367		3,245		1,988

	815		2,469		563		445				300		228

			6,347		5,470

	519		3,357		1,207				2,414		1,181				1,032

F-11

MONY

Variable Account L

STATEMENT OF ASSETS & LIABILITIES (continued)

December 31, 2003


	UIF U.S. Real Estate Portfolio— Class I		Oppenheimer Global Securities Portfolio— Service Class		Oppenheimer Main Street Portfolio— Service Class		PBHG Mid-Cap Portfolio		PBHG Select Value Portfolio

Assets

Shares held in respective Funds		12,666		136		49		17,454		4,012


Investments at cost	$	160,684	$	3,164	$	896	$	205,333	$	49,154


Investments in respective Funds, at net asset value	$	197,332	$	3,390	$	930	$	255,524	$	55,484

Amount due from MONY		163		0		0		41		143

Amount due from respective Funds		111		1		13		143		39


Total Assets		197,606		3,391		943		255,708		55,666

Liabilities

Amount due to MONY		111		1		13		143		39

Amount due to respective Funds		163		0		0		41		143


Total Liabilities		274		1		13		184		182


Net Assets	$	197,332	$	3,390	$	930	$	255,524	$	55,484


Unit Values:

MONY Strategist

MONY Equity Master

MONY Custom Equity Master	$	12.40

MONY Variable Universal Life Option 1		13.23					$	11.54	$	9.37

MONY Variable Universal Life Option 2		10.54	$	11.25	$	10.79		11.07		11.17

MONY Custom Estate Master

MONY Survivorship Variable Universal Life		12.44						11.26

Units Outstanding:*

MONY Strategist

MONY Equity Master

MONY Custom Equity Master		2,573

MONY Variable Universal Life Option 1		9,129						17,672		5,625

MONY Variable Universal Life Option 2		1,000		301		86		318		246

MONY Custom Estate Master

MONY Survivorship Variable Universal Life		2,741						4,266

*	Units outstanding have been rounded for presentation purposes.

See notes to financial statements.

F-12


PIMCO Global Bond Portfolio— Administrative Class		PIMCO Real Return Portfolio— Administrative Class		PIMCO StocksPLUS Growth and Income Portfolio— Administrative Class



	9,469		34,569		35,787


$	110,901	$	417,315	$	286,199


$	123,387	$	427,275	$	331,383

	163		166		12

	81		279		227


	123,631		427,720		331,622



	81		279		227

	163		166		12


	244		445		239


$	123,387	$	427,275	$	331,383








$	12.88	$	12.11

	13.53		12.45	$	10.70

	10.57		10.30		10.83

			11.93

	12.97		12.49		10.41







	2,861		9,024

	5,806		18,778		24,152

	170		417		1,380

			3,325

	475		3,229		5,571

F-13

MONY

Variable Account L

STATEMENT OF OPERATIONS


	Enterprise Balanced Portfolio			Enterprise Capital Appreciation Portfolio			Enterprise Equity Portfolio			Enterprise Emerging Countries Portfolio			Enterprise Equity Income Portfolio			Enterprise Growth and Income Portfolio
	For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2003			For the year ended December 31, 2003			For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2003			For the year ended December 31, 2003

Income:

Dividend income	$	2,697		$	0		$	0		$	0		$	3,829		$	13,845

Expenses:

Mortality and expense risk charges		(105	)		(3,886	)		(53,035	)		(6	)		(1,500	)		(8,635	)


Net investment income (loss)		2,592			(3,886	)		(53,035	)		(6	)		2,329			5,210


Realized gain (loss) on investments:

Net realized gain (loss) on sale of fund shares		(202	)		(15,470	)		(544,069	)		302			(2,466	)		(60,440	)

Realized gain distributions		0			0			0			0			0			0


Realized gain (loss)		(202	)		(15,470	)		(544,069	)		302			(2,466	)		(60,440	)


Change in unrealized appreciation (depreciation)		(4,616	)		193,773			3,550,450			(76	)		65,550			377,193


Net increase (decrease) in net assets from operations	$	(2,226	)	$	174,417		$	2,953,346		$	220		$	65,413		$	321,963

***	Termination of subaccount.

See notes to financial statements.

F-14


Enterprise Growth Portfolio			Enterprise Global Socially Responsive Portfolio			Enterprise High- Yield Portfolio			Enterprise International Growth Portfolio			Enterprise Mid-Cap Growth Portfolio			Enterprise Multi-Cap Growth Portfolio			Enterprise Managed Portfolio			Enterprise Small Company Growth Portfolio
For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003



$	7,440		$	117		$	23,914		$	6,537		$	0		$	0		$	93,953		$	0



	(10,291	)		(179	)		(6,691	)		(9,711	)		(48	)		(3,473	)		(58,801	)		(3,628	)


	(2,851	)		(62	)		17,223			(3,174	)		(48	)		(3,473	)		35,152			(3,628	)




	(43,170	)		(1,055	)		(4,483	)		(158,796	)		(238	)		(24,714	)		(541,675	)		(20,595	)

	0			0			0			0			0			0			0			0


	(43,170	)		(1,055	)		(4,483	)		(158,796	)		(238	)		(24,714	)		(541,675	)		(20,595	)


	310,794			9,034			169,329			534,519			(578	)		186,203			1,982,838			154,270


$	264,773		$	7,917		$	182,069		$	372,549		$	(864	)	$	158,016		$	1,476,315		$	130,047

F-15

MONY

Variable Account L

STATEMENT OF OPERATIONS (continued)


	Enterprise Small Company Value Portfolio			Enterprise Total Return Portfolio			Enterprise WorldWide Growth Portfolio			Enterprise Short Duration Bond Portfolio			MONY Series Fund, Inc. Diversified Portfolio			MONY Series Fund, Inc. Equity Growth Portfolio
	For the year ended December 31, 2003			For the year ended December 31, 2003			For the period January 1, 2003 through February 28, 2003***			For the period November 3, 2003** through December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003

Income:

Dividend income	$	5,846		$	2,834		$	0		$	2		$	895		$	129

Expenses:

Mortality and expense risk charges		(39,595	)		(592	)		(10	)		(0	)		(481	)		(258	)


Net investment income (loss)		(33,749	)		2,242			(10	)		2			414			(129	)


Realized gain (loss) on investments:

Net realized gain (loss) on sale of fund shares		(181,742	)		629			(82	)		0			(2,133	)		(8,106	)

Realized gain distributions		0			2,160			0			0			0			0


Realized gain (loss)		(181,742	)		2,789			(82	)		0			(2,133	)		(8,106	)


Change in unrealized appreciation (depreciation)		2,005,150			(825	)		(469	)		(1	)		22,698			19,827


Net increase (decrease) in net assets from operations	$	1,789,659		$	4,206		$	(561	)	$	1		$	20,979		$	11,592

**	Commencement of operations

***	Termination of subaccount

See notes to financial statements.

F-16


MONY Series Fund, Inc. Equity Income Portfolio			MONY Series Fund, Inc. Government Securities Portfolio			MONY Series Fund, Inc. Intermediate Term Bond Portfolio			MONY Series Fund, Inc. Money Market Portfolio			MONY Series Fund, Inc. Long Term Bond Portfolio			AIM Basic Value Fund—Series I			AIM Mid Cap Core Equity Fund—Series I			Alger American Balanced Portfolio— Class O

For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the period October 20, 2003** through December 31, 2003			For the period October 21, 2003** through December 31, 2003			For the year ended December 31, 2003



$	763		$	21,691		$	17,728		$	28,877		$	39,508		$	2		$	0		$	1,062



	(255	)		(4,973	)		(2,599	)		(19,579	)		(4,659	)		(5	)		(0	)		(392	)


	508			16,718			15,129			9,298			34,849			(3	)		0			670




	(3,846	)		11,810			10,896			0			12,883			5			1			284

	0			0			0			0			273			0			2			0


	(3,846	)		11,810			10,896			0			13,156			5			3			284


	13,991			(20,856	)		(16,847	)		0			(20,217	)		560			12			10,027


$	10,653		$	7,672		$	9,178		$	9,298		$	27,788		$	562		$	15		$	10,981

F-17

MONY

Variable Account L

STATEMENT OF OPERATIONS (continued)


	Alger American Mid Cap Growth Portfolio— Class O			Dreyfus Socially Responsible Growth Fund— Initial Class			Dreyfus Stock Index Portfolio— Initial Class			Dreyfus IP Small Cap Stock Index Portfolio— Service Class			Fidelity VIP Growth Portfolio— Service Class			Fidelity VIP II ContraFund Portfolio— Service Class
	For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the period October 30, 2003 through December 31, 2003**			For the year ended December 31, 2003			For the year ended December 31, 2003

Income:

Dividend income	$	0		$	187		$	19,404		$	0		$	1,461		$	2,255

Expenses:

Mortality and expense risk charges		(909	)		(880	)		(7,987	)		(0	)		(5,302	)		(4,436	)


Net investment income (loss)		(909	)		(693	)		11,417			0			(3,841	)		(2,181	)


Realized gain (loss) on investments:

Net realized gain (loss) on sale of fund shares		(1,193	)		(8,215	)		(29,144	)		(1	)		(48,466	)		(4,017	)

Realized gain distributions		0			0			0			1			0			0


Realized gain (loss)		(1,193	)		(8,215	)		(29,144	)		0			(48,466	)		(4,017	)


Change in unrealized appreciation (depreciation)		66,602			43,490			337,620			12			285,688			183,276


Net increase (decrease) in net assets from operations	$	64,500		$	34,582		$	319,893		$	12		$	233,381		$	177,078

**	Commencement of operations

See notes to financial statements.

F-18


Fidelity VIP III Growth Opportunities Portfolio—Service Class			Franklin Income Securities Fund— Class 2			Franklin Rising Dividends Securities Fund—Class 2			Franklin Zero Coupon 2010 Fund— Class 2			INVESCO VIF Financial Services Portfolio			INVESCO VIF Health Sciences Portfolio			INVESCO VIF Telecommunications Portfolio			Janus Aspen Series Mid Cap Growth Portfolio— Institutional Class
For the year ended December 31, 2003			For the period November 6, 2003 through December 31, 2003**			For the period November 20, 2003 through December 31, 2003**			For the period November 26, 2003** through December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003



$	727		$	0		$	0		$	0		$	162		$	0		$	0		$	0



	(787	)		(0	)		(0	)		(0	)		(133	)		(226	)		(97	)		(3,970	)


	(60	)		0			0			0			29			(226	)		(97	)		(3,970	)




	(3,828	)		2			0			0			(152	)		(246	)		(1,511	)		(30,740	)

	0			0			0			0			0			0			0			0


	(3,828	)		2			0			0			(152	)		(246	)		(1,511	)		(30,740	)


	37,468			4			38			0			6,743			9,910			6,357			224,103


$	33,580		$	6		$	38		$	0		$	6,620		$	9,438		$	4,749		$	189,393

F-19

MONY

Variable Account L

STATEMENT OF OPERATIONS (continued)


	Janus Aspen Series Balanced Portfolio— Institutional Class			Janus Aspen Series Capital Appreciation Portfolio— Institutional Class			Janus Aspen Series Capital Appreciation Portfolio— Service Class			Janus Aspen Series Flexible Income Portfolio— Service Class			Janus Aspen Series International Growth Portfolio— Service Class			Janus Aspen Series WorldWide Growth Portfolio— Institutional Class			Lord Abbett Bond- Debenture Portfolio— Class VC
	For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003

Income:

Dividend income	$	11,534		$	3,471		$	133		$	2,283		$	952		$	10,768		$	2,892

Expenses:

Mortality and expense risk charges		(3,114	)		(4,719	)		(270	)		(306	)		(559	)		(6,058	)		(288	)


Net investment income (loss)		8,420			(1,248	)		(137	)		1,977			393			4,710			2,604


Realized gain (loss) on investments:

Net realized gain (loss) on sale of fund shares		(5,372	)		(36,634	)		(544	)		372			(2,515	)		(63,218	)		300

Realized gain distributions		0			0			0			0			0			0			628


Realized gain (loss)		(5,372	)		(36,634	)		(544	)		372			(2,515	)		(63,218	)		928


Change in unrealized appreciation (depreciation)		61,583			169,083			10,169			245			35,023			270,849			3,955


Net increase (decrease) in net assets from operations	$	64,631		$	131,201		$	9,488		$	2,594		$	32,901		$	212,341		$	7,487

See notes to financial statements.

F-20



Lord Abbett Growth and Income Portfolio— Class VC			Lord Abbett Mid-Cap Value Portfolio— Class VC			MFS Mid Cap Growth Portfolio— Initial Class			MFS New Discovery Portfolio— Initial Class			MFS Total Return Portfolio— Initial Class			MFS Utilities Portfolio— Initial Class			UIF Emerging Markets Equity Portfolio— Class I			UIF Global Value Equity Portfolio— Class I
For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003



$	2,381		$	1,583		$	0		$	0		$	1,831		$	729		$	0		$	0



	(1,302	)		(1,146	)		(396	)		(378	)		(765	)		(197	)		(205	)		(72	)


	1,079			437			(396	)		(378	)		1,066			532			(205	)		(72	)




	(236	)		(220	)		(3,071	)		(987	)		(339	)		(59	)		(149	)		(256	)

	0			3,274			0			0			0			0			0			0


	(236	)		3,054			(3,071	)		(987	)		(339	)		(59	)		(149	)		(256	)


	73,948			59,223			23,371			21,541			19,343			9,929			16,663			4,163


$	74,791		$	62,714		$	19,904		$	20,176		$	20,070		$	10,402		$	16,309		$	3,835

F-21

MONY

Variable Account L

STATEMENT OF OPERATIONS (continued)


	UIF U.S. Real Estate Portfolio— Class I			Oppenheimer Global Securities Portfolio— Service Class			Oppenheimer Main Street Portfolio— Service Class			PBHG Mid-Cap Portfolio			PBHG Select Value Portfolio
	For the year ended December 31, 2003			For the period October 7, 2003** through December 31, 2003			For the period November 6, 2003** through December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003

Income:

Dividend income	$	0		$	0		$	0		$	0		$	996

Expense:

Mortality and expense risk charges		(730	)		(1	)		(0	)		(921	)		(209	)


Net investment income (loss)		(730	)		(1	)		0			(921	)		787


Realized gain (loss) on investments:

Net realized gain (loss) on sale of fund shares		(570	)		2			1			(477	)		(761	)

Realized gain distributions		0			0			0			0			0


Realized gain (loss)		(570	)		2			1			(477	)		(761	)


Change in unrealized appreciation (depreciation)		41,432			226			34			54,298			7,494


Net increase (decrease) in net assets from operations	$	40,132		$	227		$	35		$	52,900		$	7,520

**	Commencement of operations

See notes to financial statements.

F-22


PIMCO Global Bond Portfolio— Administrative Class			PIMCO Real Return Portfolio— Administrative Class			PIMCO StocksPLUS Growth and Income Portfolio— Administrative Class
For the year ended December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2003



$	1,752		$	6,849		$	5,435



	(532	)		(1,847	)		(1,327	)


	1,220			5,002			4,108




	2,204			4,657			(2,835	)

	697			8,531			0


	2,901			13,188			(2,835	)


	7,774			5,335			61,159


$	11,895		$	23,525		$	62,432

F-23

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS


	Enterprise Balanced Portfolio						Enterprise Capital Appreciation Portfolio						Enterprise Equity Portfolio
	For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002

From operations:

Net investment income (loss)	$	2,592		$	1,284		$	(3,886	)	$	(2,455	)	$	(53,035	)	$	(44,608	)

Net realized gain (loss)		(202	)		(1,775	)		(15,470	)		(18,425	)		(544,069	)		(933,238	)

Net change in unrealized appreciation (depreciation)		(4,616	)		(9,424	)		193,773			(61,071	)		3,550,450			(1,257,989	)


Net increase (decrease) in net assets from operations		(2,226	)		(9,915	)		174,417			(81,951	)		2,953,346			(2,235,835	)


Contract transactions:

Payments received from contract owners		8,919			75,396			235,414			242,448			1,580,394			1,946,552

Transfers between subaccounts, net		(100,172	)		(744	)		85,885			(2,430	)		(54,623	)		(86,676	)

Transfers for contract benefits and terminations		(4,496	)		(27,863	)		(120,352	)		(108,937	)		(1,281,435	)		(1,074,547	)


Net increase (decrease) from contract transactions		(95,749	)		46,789			200,947			131,081			244,336			785,329


Net increase (decrease) in net assets		(97,975	)		36,874			375,364			49,130			3,197,682			(1,450,506	)

Net assets beginning of period		97,975			61,101			422,588			373,458			5,617,710			7,068,216


Net assets end of period	$	0		$	97,975		$	797,952		$	422,588		$	8,815,392		$	5,617,710


Units issued during the period		1,365			9,296			49,424			34,685			184,559			235,624

Units redeemed during the period		(12,973	)		(4,105	)		(20,346	)		(16,661	)		(150,817	)		(138,161	)


Net units issued (redeemed) during period		(11,608	)		5,191			29,078			18,024			33,742			97,463

***	Termination of subaccount

See notes to financial statements.

F-24


Enterprise Emerging Countries Portfolio						Enterprise Equity Income Portfolio						Enterprise Growth and Income Portfolio						Enterprise Growth Portfolio
For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002



$	(6	)	$	(14	)	$	2,329		$	1,255		$	5,210		$	6,641		$	(2,851	)	$	(1,521	)

	302			859			(2,466	)		(3,966	)		(60,440	)		(64,755	)		(43,170	)		(41,889	)

	(76	)		(618	)		65,550			(22,165	)		377,193			(265,529	)		310,794			(232,645	)


	220			227			65,413			(24,876	)		321,963			(323,643	)		264,773			(276,055	)




	633			3,210			136,635			130,670			540,533			587,067			850,513			679,058

	(4,946	)		379			45,399			5,627			7,567			(22,987	)		259,232			25,118

	(190	)		(1,164	)		(52,168	)		(40,066	)		(266,004	)		(258,111	)		(338,022	)		(230,150	)


	(4,503	)		2,425			129,866			96,231			282,096			305,969			771,723			474,026


	(4,283	)		2,652			195,279			71,355			604,059			(17,674	)		1,036,496			197,971

	4,283			1,631			172,588			101,233			1,050,461			1,068,135			1,094,767			896,796


$	0		$	4,283		$	367,867		$	172,588		$	1,654,520		$	1,050,461		$	2,131,263		$	1,094,767


	1,557			9,124			22,951			16,206			76,957			80,858			156,600			95,842

	(2,094	)		(8,756	)		(7,969	)		(5,522	)		(40,405	)		(42,072	)		(51,384	)		(35,628	)


	(537	)		368			14,982			10,684			36,552			38,786			105,216			60,214

F-25

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Enterprise Global Socially Responsive Portfolio						Enterprise High-Yield Portfolio						Enterprise International Growth Portfolio
	For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002

From operations:

Net investment income (loss)	$	(62	)	$	(2	)	$	17,223		$	60,446		$	(3,174	)	$	(574	)

Net realized gain (loss)		(1,055	)		(718	)		(4,483	)		(16,524	)		(158,796	)		(146,613	)

Net change in unrealized appreciation (depreciation)		9,034			(2,635	)		169,329			(36,249	)		534,519			(137,565	)


Net increase (decrease) in net assets from operations		7,917			(3,355	)		182,069			7,673			372,549			(284,752	)


Contract transactions:

Payments received from contract owners		24,701			28,224			178,724			244,140			379,305			455,084

Transfers between subaccounts, net		1,285			131			14,977			10,502			7,540			(20,819	)

Transfers for contract benefits and terminations		(10,859	)		(6,221	)		(172,666	)		(134,631	)		(323,470	)		(230,875	)


Net increase (decrease) from contract transactions		15,127			22,134			21,035			120,011			63,375			203,390


Net increase (decrease) in net assets		23,044			18,779			203,104			127,684			435,924			(81,362	)

Net assets beginning of period		18,779			0			815,575			687,891			1,206,003			1,287,365


Net assets end of period	$	41,823		$	18,779		$	1,018,679		$	815,575		$	1,641,927		$	1,206,003


Units issued during the period		2,828			2,876			16,013			23,817			55,155			57,463

Units redeemed during the period		(1,169	)		(680	)		(13,759	)		(12,589	)		(45,650	)		(31,736	)


Net units issued (redeemed) during period		1,659			2,196			2,254			11,228			9,505			25,727

**	Commencement of operations

***	Termination of subaccount

See notes to financial statements.

F-26


Enterprise Mid-Cap Growth Portfolio						Enterprise Multi-Cap Growth Portfolio						Enterprise Managed Portfolio						Enterprise Small Company Growth Portfolio
For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002



$	(48	)	$	(235	)	$	(3,473	)	$	(2,363	)	$	35,152		$	16,951		$	(3,628	)	$	(2,032	)

	(238	)		(1,175	)		(24,714	)		(42,645	)		(541,675	)		(875,208	)		(20,595	)		(11,145	)

	(578	)		(13,148	)		186,203			(148,961	)		1,982,838			(1,132,490	)		154,270			(93,771	)


	(864	)		(14,558	)		158,016			(193,969	)		1,476,315			(1,990,747	)		130,047			(106,948	)




	4,373			50,712			253,710			342,270			1,738,451			1,996,432			305,893			315,947

	(44,672	)		(36	)		13,773			(43,958	)		(120,883	)		(96,327	)		16,639			13,216

	(1,146	)		(9,187	)		(134,244	)		(125,822	)		(1,517,527	)		(1,497,330	)		(137,208	)		(98,509	)


	(41,445	)		41,489			133,239			172,490			100,041			402,775			185,324			230,654


	(42,309	)		26,931			291,255			(21,479	)		1,576,356			(1,587,972	)		315,371			123,706

	42,309			15,378			421,926			443,405			7,280,433			8,868,405			444,022			320,316


$	0		$	42,309		$	713,181		$	421,926		$	8,856,789		$	7,280,433		$	759,393		$	444,022


	993			7,109			53,904			63,509			178,693			183,613			41,606			40,502

	(8,276	)		(1,672	)		(29,960	)		(34,520	)		(162,875	)		(145,717	)		(18,962	)		(14,047	)


	(7,283	)		5,437			23,944			28,989			15,818			37,896			22,644			26,455

F-27

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Enterprise Small Company Value Portfolio						Enterprise Total Return Portfolio						Enterprise WorldWide Growth Portfolio
	For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the period March 5, 2002** through December 31, 2002			For the period January 1, 2003 through February 28, 2003***			For the year ended December 31, 2002

From operations:

Net investment income (loss)	$	(33,749	)	$	(16,956	)	$	2,242		$	479		$	(10	)	$	(38	)

Net realized gain (loss)		(181,742	)		(112,651	)		2,789			633			(82	)		(115	)

Net change in unrealized appreciation (depreciation)		2,005,150			(367,170	)		(825	)		491			(469	)		(1,754	)


Net increase (decrease) in net assets from operations		1,789,659			(496,777	)		4,206			1,603			(561	)		(1,907	)


Contract transactions:

Payments received from contract owners		1,290,109			1,338,218			131,260			42,592			1,213			9,442

Transfers between subaccounts, net		30,349			(26,004	)		2,632			274			(9,020	)		436

Transfers for contract benefits and terminations		(916,191	)		(774,591	)		(27,238	)		(7,455	)		(606	)		(3,067	)


Net increase (decrease) from contract transactions		404,267			537,623			106,654			35,411			(8,413	)		6,811


Net increase (decrease) in net assets		2,193,926			40,846			110,860			37,014			(8,974	)		4,904

Net assets beginning of period		4,678,930			4,638,084			37,014			0			8,974			4,070


Net assets end of period	$	6,872,856		$	4,678,930		$	147,874		$	37,014		$	0		$	8,974


Units issued during the period		99,466			91,646			12,990			4,464			189			1,287

Units redeemed during the period		(58,930	)		(51,109	)		(3,147	)		(971	)		(1,544	)		(395	)


Net units issued (redeemed) during period		40,536			40,537			9,843			3,493			(1,355	)		892

**	Commencement of operations

***	Termination of subaccount

See notes to financial statements.

F-28


Enterprise Short Duration Bond Portfolio			MONY Series Fund, Inc. Diversified Portfolio						MONY Series Fund, Inc. Equity Growth Portfolio						MONY Series Fund, Inc. Equity Income Portfolio
For the period November 3, 2003 through** December 31, 2003			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002



$	2		$	414		$	1,167		$	(129	)	$	(5	)	$	508		$	475

	0			(2,133	)		7,812			(8,106	)		(13,729	)		(3,846	)		334

	(1	)		22,698			(23,719	)		19,827			(2,496	)		13,991			(9,074	)


	1			20,979			(14,740	)		11,592			(16,230	)		10,653			(8,265	)




	519			1,684			1,684			10,501			24,604			9,475			15,356

	0			1,700			0			0			(14,301	)		1,700			0

	(119	)		(2,739	)		(2,739	)		(20,892	)		(8,445	)		(13,324	)		(7,815	)


	400			645			(1,055	)		(10,391	)		1,858			(2,149	)		7,541


	401			21,624			(15,795	)		1,201			(14,372	)		8,504			(724	)

	0			71,984			87,779			42,889			57,261			40,218			40,942


$	401		$	93,608		$	71,984		$	44,090		$	42,889		$	48,722		$	40,218


	52			84			44			229			501			247			328

	(12	)		(69	)		(72	)		(449	)		(528	)		(291	)		(193	)


	40			15			(28	)		(220	)		(27	)		(44	)		135

F-29

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	MONY Series Fund, Inc. Government Securities Portfolio						MONY Series Fund, Inc. Intermediate Term Bond Portfolio						MONY Series Fund, Inc. Money Market Portfolio
	For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002

From operations:

Net investment income (loss)	$	16,718		$	8,004		$	15,129		$	7,989		$	9,298		$	22,270

Net realized gain (loss)		11,810			4,496			10,896			1,654			0			0

Net change in unrealized appreciation (depreciation)		(20,856	)		16,282			(16,847	)		14,866			0			0


Net increase (decrease) in net assets from operations		7,672			28,782			9,178			24,509			9,298			22,270


Contract transactions:

Payments received from contract owners		402,534			324,790			68,301			133,714			1,376,693			1,286,299

Transfers between subaccounts, net		(29,774	)		110,461			(4,952	)		44,258			(574,828	)		66,645

Transfers for contract benefits and terminations		(205,555	)		(124,698	)		(56,489	)		(43,819	)		(778,594	)		(296,704	)


Net increase (decrease) from contract transactions		167,205			310,553			6,860			134,153			23,271			1,056,240


Net increase (decrease) in net assets		174,877			339,335			16,038			158,662			32,569			1,078,510

Net assets beginning of period		646,908			307,573			348,125			189,463			3,311,905			2,233,395


Net assets end of period	$	821,785		$	646,908		$	364,163		$	348,125		$	3,344,474		$	3,311,905


Units issued during the period		40,333			40,772			10,663			16,150			149,526			161,105

Units redeemed during the period		(23,623	)		(13,639	)		(9,866	)		(5,625	)		(143,976	)		(58,778	)


Net units issued (redeemed) during period		16,710			27,133			797			10,525			5,550			102,327

**	Commencement of operations

See notes to financial statements.

F-30


MONY Series Fund, Inc. Long Term Bond Portfolio						AIM Basic Value Fund—Series I			AIM Mid Cap Core Equity Fund—Series I			Alger American Balanced Portfolio—Class O						Alger American Mid Cap Growth Portfolio—Class O
For the year ended December 31, 2003			For the year ended December 31, 2002			For the period October 20, 2003** through December 31, 2003			For the period October 21, 2003** through December 31, 2003			For the year ended December 31, 2003			For the period February 21, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 26, 2002** through December 31, 2002



$	34,849		$	17,342		$	(3	)	$	0		$	670		$	39		$	(909	)	$	(205	)

	13,156			5,491			5			3			284			(368	)		(1,193	)		(1,476	)

	(20,217	)		45,059			560			12			10,027			(500	)		66,602			(11,789	)


	27,788			67,892			562			15			10,981			(829	)		64,500			(13,470	)




	218,046			255,592			7,189			405			71,881			39,686			107,099			69,159

	1,969			5,356			0			0			17,961			(28	)		67,599			13,126

	(122,546	)		(99,323	)		(289	)		(65	)		(16,469	)		(6,659	)		(31,027	)		(11,193	)


	97,469			161,625			6,900			340			73,373			32,999			143,671			71,092


	125,257			229,517			7,462			355			84,354			32,170			208,171			57,622

	608,278			378,761			0			0			32,170			0			57,622			0


$	733,535		$	608,278		$	7,462		$	355		$	116,524		$	32,170		$	265,793		$	57,622


	19,058			23,232			716			39			9,375			4,309			18,635			9,364

	(10,122	)		(9,427	)		(33	)		(6	)		(2,074	)		(773	)		(3,426	)		(1,748	)


	8,936			13,805			683			33			7,301			3,536			15,209			7,616

F-31

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Dreyfus Socially Responsible Growth Fund— Initial Class						Dreyfus Stock Index Portfolio—Initial Class						Dreyfus IP Small Cap Stock Index Portfolio—Service Class
	For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the period October 30, 2003** through December 31, 2003

From operations:

Net investment income (loss)	$	(693	)	$	(256	)	$	11,417		$	8,322		$	0

Net realized gain (loss)		(8,215	)		(8,863	)		(29,144	)		(56,270	)		0

Net change in unrealized appreciation (depreciation)		43,490			(28,960	)		337,620			(202,111	)		12


Net increase (decrease) in net assets from operations		34,582			(38,079	)		319,893			(250,059	)		12


Contract transactions:

Payments received from contract owners		70,506			92,074			506,909			589,290			402

Transfers between subaccounts, net		(4,114	)		(990	)		20,001			5,269			768

Transfers for contract benefits and terminations		(34,554	)		(32,229	)		(231,716	)		(213,664	)		(135	)


Net increase (decrease) from contract transactions		31,838			58,855			295,194			380,895			1,035


Net increase (decrease) in net assets		66,420			20,776			615,087			130,836			1,047

Net assets beginning of period		118,570			97,794			1,016,822			885,986			0


Net assets end of period	$	184,990		$	118,570		$	1,631,909		$	1,016,822		$	1,047


Units issued during the period		13,388			16,607			77,648			91,230			109

Units redeemed during the period		(7,480	)		(6,611	)		(35,982	)		(38,508	)		(13	)


Net units issued (redeemed) during period		5,908			9,996			41,666			52,722			96

**	Commencement of operations

See notes to financial statements.

F-32


Fidelity VIP Growth Portfolio—Service Class						Fidelity VIP II Contrafund Portfolio—Service Class						Fidelity VIP III Growth Opportunities Portfolio—Service Class						Franklin Income Securities Fund— Class 2			Franklin Rising Dividends Securities Fund— Class 2
For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the period beginning November 6, 2003** through December 31, 2003			For the period beginning November 20, 2003** through December 31, 2003



$	(3,841	)	$	(3,070	)	$	(2,181	)	$	339		$	(60	)	$	229		$	0		$	0

	(48,466	)		(70,431	)		(4,017	)		(17,186	)		(3,828	)		(3,485	)		2			0

	285,688			(178,604	)		183,276			(41,754	)		37,468			(20,325	)		4			38


	233,381			(252,105	)		177,078			(58,601	)		33,580			(23,581	)		6			38




	327,846			418,627			234,803			279,615			54,003			65,676			452			1,262

	10,604			(13,620	)		17,983			(13,103	)		7,683			839			0			0

	(199,185	)		(176,348	)		(128,041	)		(112,642	)		(37,967	)		(25,090	)		(130	)		(37	)


	139,265			228,659			124,745			153,870			23,719			41,425			322			1,225


	372,646			(23,446	)		301,823			95,269			57,299			17,844			328			1,263

	670,188			693,634			567,676			472,407			101,196			83,352			0			0


$	1,042,834		$	670,188		$	869,499		$	567,676		$	158,495		$	101,196		$	328		$	1,263


	61,023			73,018			32,115			37,183			9,312			9,941			42			122

	(37,599	)		(36,288	)		(16,831	)		(18,169	)		(5,953	)		(3,967	)		(12	)		(4	)


	23,424			36,730			15,284			19,014			3,359			5,974			30			118

F-33

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Franklin Zero Coupon 2010 Fund—Class 2			INVESCO VIF Financial Services Portfolio						INVESCO VIF Health Sciences Portfolio
	For the period November 26, 2003** through December 31, 2003			For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002

From operations:

Net investment income (loss)	$	0		$	29		$	59		$	(226	)	$	(53	)

Net realized gain (loss)		0			(152	)		(119	)		(246	)		(109	)

Net change in unrealized appreciation (depreciation)		(0	)		6,743			(1,733	)		9,910			(1,430	)


Net increase (decrease) in net assets from operations		(0	)		6,620			(1,793	)		9,438			(1,592	)


Contract transactions:

Payments received from contract owners		85			19,731			18,151			37,268			20,923

Transfers between subaccounts, net		0			27			372			(496	)		4,061

Transfers for contract benefits and terminations		(13	)		(5,551	)		(2,116	)		(8,924	)		(3,406	)


Net increase (decrease) from contract transactions		72			14,207			16,407			27,848			21,578


Net increase (decrease) in net assets		72			20,827			14,614			37,286			19,986

Net assets beginning of period		0			14,614			0			19,986			0


Net assets end of period	$	72		$	35,441		$	14,614		$	57,272		$	19,986


Units issued during the period		8			2,074			1,944			4,207			2,865

Units redeemed during the period		(1	)		(591	)		(233	)		(1,131	)		(398	)


Net units issued (redeemed) during period		7			1,483			1,711			3,076			2,467

**	Commencement of operations

See notes to financial statements.

F-34


INVESCO VIF Telecommunications Portfolio						Janus Aspen Series Mid Cap Growth Portfolio—Institutional Class						Janus Aspen Series Balanced Portfolio—Institutional Class						Janus Aspen Series Capital Appreciation Portfolio— Institutional Class						Janus Aspen Series Capital Appreciation Portfolio— Service Class
For the year ended December 31, 2003			For the period February 15, 2002** through December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002			For the year ended December 31, 2003			For the period February 22, 2002** through December 31, 2002



$	(97	)	$	(41	)	$	(3,970	)	$	(2,425	)	$	8,420		$	8,039		$	(1,248	)	$	(116	)	$	(137	)	$	(10	)

	(1,511	)		(1,309	)		(30,740	)		(73,572	)		(5,372	)		(9,198	)		(36,634	)		(59,659	)		(544	)		(179	)

	6,357			(2,341	)		224,103			(73,689	)		61,583			(25,010	)		169,083			(50,360	)		10,169			(2,656	)


	4,749			(3,691	)		189,393			(149,686	)		64,631			(26,169	)		131,201			(110,135	)		9,488			(2,845	)




	16,250			16,738			298,048			510,138			170,903			230,162			259,698			319,433			48,912			34,545

	0			(47	)		8,305			(13,798	)		14,825			11,082			(6,526	)		(37,513	)		1,886			(105	)

	(7,200	)		(5,781	)		(174,102	)		(293,246	)		(92,793	)		(83,410	)		(183,113	)		(148,098	)		(14,408	)		(4,066	)


	9,050			10,910			132,251			203,094			92,935			157,834			70,059			133,822			36,390			30,374


	13,799			7,219			321,644			53,408			157,566			131,665			201,260			23,687			45,878			27,529

	7,219			0			492,821			439,413			429,475			297,810			626,902			603,215			27,529			0


$	21,018		$	7,219		$	814,465		$	492,821		$	587,041		$	429,475		$	828,162		$	626,902		$	73,407		$	27,529


	2,336			1,917			86,138			150,520			22,735			31,254			46,985			58,173			5,390			3,579

	(999	)		(785	)		(51,909	)		(93,982	)		(12,709	)		(13,964	)		(35,244	)		(35,682	)		(1,601	)		(477	)


	1,337			1,132			34,229			56,538			10,026			17,290			11,741			22,491			3,789			3,102

F-35

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	Janus Aspen Series Flexible Income Portfolio—Service Class						Janus Aspen Series International Growth Portfolio—Service Class						Janus Aspen Series WorldWide Growth Portfolio—Institutional Class
	For the year ended December 31, 2003			For the period February 21, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 21, 2002** through December 31, 2002			For the year ended December 31, 2003			For the year ended December 31, 2002

From operations:

Net investment income (loss)	$	1,977		$	586		$	393		$	119		$	4,710		$	3,320

Net realized gain (loss)		372			201			(2,515	)		(931	)		(63,218	)		(69,523	)

Net change in unrealized appreciation (depreciation)		245			874			35,023			(11,545	)		270,849			(171,410	)


Net increase (decrease) in net assets from operations		2,594			1,661			32,901			(12,357	)		212,341			(237,613	)


Contract transactions:

Payments received from contract owners		47,686			36,488			75,736			74,522			385,074			479,522

Transfers between subaccounts, net		41			(3,074	)		4,840			183			(30,168	)		(19,431	)

Transfers for contract benefits and terminations		(9,552	)		(4,112	)		(26,443	)		(8,505	)		(188,923	)		(175,801	)


Net increase (decrease) from contract transactions		38,175			29,302			54,133			66,200			165,983			284,290


Net increase (decrease) in net assets		40,769			30,963			87,034			53,843			378,324			46,677

Net assets beginning of period		30,963			0			53,843			0			807,216			760,539


Net assets end of period	$	71,732		$	30,963		$	140,877		$	53,843		$	1,185,540		$	807,216


Units issued during the period		4,358			4,132			9,583			7,763			81,897			92,303

Units redeemed during the period		(932	)		(1,277	)		(3,143	)		(1,033	)		(49,112	)		(40,643	)


Net units issued (redeemed) during period		3,426			2,855			6,440			6,730			32,785			51,660

**	Commencement of operations

See notes to financial statements.

F-36


Lord Abbett Bond-Debenture Portfolio—Class VC						Lord Abbett Growth and Income Portfolio—Class VC						Lord Abbett Mid-Cap Value Portfolio—Class VC						MFS Mid Cap Growth Portfolio—Initial Class
For the year ended December 31, 2003			For the period February 21, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 27, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period March 1, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 15, 2002** through December 31, 2002



$	2,604		$	372		$	1,079		$	232		$	437		$	198		$	(396	)	$	(92	)

	928			64			(236	)		(611	)		3,054			(371	)		(3,071	)		(1,719	)

	3,955			337			73,948			(5,323	)		59,223			(2,109	)		23,371			(5,544	)


	7,487			773			74,791			(5,702	)		62,714			(2,282	)		19,904			(7,355	)




	54,997			24,177			179,383			89,444			142,497			44,872			65,851			44,285

	466			131			113,801			2,719			100,982			27,873			562			228

	(8,926	)		(2,538	)		(40,021	)		(9,668	)		(27,409	)		(5,987	)		(20,338	)		(9,118	)


	46,537			21,770			253,163			82,495			216,070			66,758			46,075			35,395


	54,024			22,543			327,954			76,793			278,784			64,476			65,979			28,040

	22,543			0			76,793			0			64,476			0			28,040			0


$	76,567		$	22,543		$	404,747		$	76,793		$	343,260		$	64,476		$	94,019		$	28,040


	4,933			2,353			32,889			10,700			25,700			8,233			8,937			5,681

	(793	)		(247	)		(4,651	)		(1,252	)		(2,995	)		(950	)		(2,714	)		(1,366	)


	4,140			2,106			28,238			9,448			22,705			7,283			6,223			4,315

F-37

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)



	MFS New Discovery Portfolio—Initial Class						MFS Total Return Portfolio—Initial Class						MFS Utilities Portfolio—Initial Class
	For the year ended December 31, 2003			For the period February 15, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 15, 2002** through December 31, 2002

From operations:

Net investment income (loss)	$	(378	)	$	(115	)	$	1,066		$	(49	)	$	532		$	46

Net realized gain (loss)		(987	)		(588	)		(339	)		(410	)		(59	)		(48	)

Net change in unrealized appreciation (depreciation)		21,541			(6,441	)		19,343			17			9,929			(333	)


Net increase (decrease) in net assets from operations		20,176			(7,144	)		20,070			(442	)		10,402			(335	)


Contract transactions:

Payments received from contract owners		51,408			41,008			99,968			93,095			34,005			11,093

Transfers between subaccounts, net		6,975			8,094			21,181			(12,681	)		5,686			0

Transfers for contract benefits and terminations		(14,943	)		(6,672	)		(23,729	)		(7,530	)		(4,814	)		(2,362	)


Net increase (decrease) from contract transactions		43,440			42,430			97,420			72,884			34,877			8,731


Net increase (decrease) in net assets		63,616			35,286			117,490			72,442			45,279			8,396

Net assets beginning of period		35,286			0			72,442			0			8,396			0


Net assets end of period	$	98,902		$	35,286		$	189,932		$	72,442		$	53,675		$	8,396


Units issued during the period		7,062			5,546			12,163			9,900			4,354			1,216

Units redeemed during the period		(1,819	)		(821	)		(2,565	)		(2,314	)		(726	)		(249	)


Net units issued (redeemed) during period		5,243			4,725			9,598			7,586			3,628			967

**	Commencement of operations

See notes to financial statements.

F-38


UIF Emerging Markets Equity Portfolio—Class I						UIF Global Value Equity Portfolio—Class I						UIF U.S. Real Estate Portfolio—Class I						Oppenheimer Global Securities Portfolio— Service Class			Oppenheimer Main Street Portfolio— Service Class
For the year ended December 31, 2003			For the period February 15, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 28, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 26, 2002** through December 31, 2002			For the period October 7, 2003 through December 31, 2003**			For the period November 6, 2003 through** December 31, 2003



$	(205	)	$	(93	)	$	(72	)	$	29		$	(730	)	$	1,867		$	(1	)	$	0

	(149	)		(227	)		(256	)		(56	)		(570	)		654			2			1

	16,663			(4,386	)		4,163			(353	)		41,432			(4,784	)		226			34


	16,309			(4,706	)		3,835			(380	)		40,132			(2,263	)		227			35




	17,353			33,842			12,271			4,589			111,135			58,759			3,379			1,049

	3,164			12			4,313			463			(313	)		17,783			0			0

	(7,828	)		(4,431	)		(3,169	)		(855	)		(21,503	)		(6,398	)		(216	)		(154	)


	12,689			29,423			13,415			4,197			89,319			70,144			3,163			895


	28,998			24,717			17,250			3,817			129,451			67,881			3,390			930

	24,717			0			3,817			0			67,881			0			0			0


$	53,715		$	24,717		$	21,067		$	3,817		$	197,332		$	67,881		$	3,390		$	930


	2,145			3,422			1,998			569			10,810			8,118			325			101

	(805	)		(485	)		(471	)		(107	)		(2,578	)		(905	)		(24	)		(15	)


	1,340			2,937			1,527			462			8,232			7,213			301			86

F-39

MONY

Variable Account L

STATEMENT OF CHANGES IN NET ASSETS (continued)


	PBHG Mid-Cap Portfolio						PBHG Select Value Portfolio
	For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 8, 2002** through December 31, 2002

From operations:

Net investment income (loss)	$	(921	)	$	(242	)	$	787		$	70

Net realized gain (loss)		(477	)		(3,702	)		(761	)		384

Net change in unrealized appreciation (depreciation)		54,298			(4,107	)		7,494			(1,164	)


Net increase (decrease) in net assets from operations		52,900			(8,051	)		7,520			(710	)


Contract transactions:

Payments received from contract owners		147,361			98,551			38,319			28,183

Transfers between subaccounts, net		10,829			(1,715	)		1,544			(7,563	)

Transfers for contract benefits and terminations		(33,164	)		(11,187	)		(8,354	)		(3,455	)


Net increase (decrease) from contract transactions		125,026			85,649			31,509			17,165


Net increase (decrease) in net assets		177,926			77,598			39,029			16,455

Net assets beginning of period		77,598			0			16,455			0


Net assets end of period	$	255,524		$	77,598		$	55,484		$	16,455


Units issued during the period		17,025			11,801			4,892			3,186

Units redeemed during the period		(3,788	)		(2,783	)		(1,084	)		(1,123	)


Net units issued (redeemed) during period		13,237			9,018			3,808			2,063

**	Commencement of operations

See notes to financial statements.

F-40


PIMCO Global Bond Portfolio— Administrative Class						PIMCO Real Return Portfolio— Administrative Class						PIMCO StocksPLUS Growth and Income Portfolio— Administrative Class
For the year ended December 31, 2003			For the period February 22, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period March 1, 2002** through December 31, 2002			For the year ended December 31, 2003			For the period February 22, 2002** through December 31, 2002



$	1,220		$	505		$	5,002		$	1,794		$	4,108		$	2,114

	2,901			447			13,188			2,026			(2,835	)		(3,909	)

	7,774			4,713			5,335			4,625			61,159			(15,974	)


	11,895			5,665			23,525			8,445			62,432			(17,769	)




	74,852			38,419			264,225			106,630			189,845			176,315

	(346	)		17,709			48,027			41,917			5,133			3,686

	(19,860	)		(4,947	)		(47,853	)		(17,641	)		(60,088	)		(28,171	)


	54,646			51,181			264,399			130,906			134,890			151,830


	66,541			56,846			287,924			139,351			197,322			134,061

	56,846			0			139,351			0			134,061			0


$	123,387		$	56,846		$	427,275		$	139,351		$	331,383		$	134,061


	6,626			5,354			30,979			16,520			21,440			20,701

	(2,199	)		(470	)		(8,453	)		(4,283	)		(6,633	)		(4,406	)


	4,427			4,884			22,526			12,237			14,807			16,295

F-41

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS

1. Organization and Business

MONY Variable Account L (the “Variable Account”) is a separate investment account established on November 28, 1990 by MONY Life Insurance Company (“MONY”), under the laws of the State of New York.

The Variable Account operates as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act”). The Variable Account holds assets that are segregated from all of MONY‘s other assets and, at present, is used to support Flexible Premium Variable Life Insurance policies, which include Variable Life (MONY Strategist), Variable Universal Life (MONY Equity Master, MONY Custom Equity Master, MONY Custom Estate Master and MONY Variable Universal Life), and MONY Survivorship Variable Universal Life, collectively, the Variable Life Insurance Policies. These policies are issued by MONY.

There are sixty-one MONY Life subaccounts within the Variable Account, each of which invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the “Fund”), the Enterprise Accumulation Trust (“Enterprise”), Alger American Fund, INVESCO Variable Investment Funds, Lord Abbett Series Fund, MFS Variable Insurance Trust, PIMCO Variable Insurance Trust, PBHG Insurance Series Fund, AIM Variable Insurance Funds, Franklin Templeton Variable Insurance Products Trust, Oppenheimer Variable Account Funds, Fidelity Variable Insurance Products, Dreyfus Socially Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Dreyfus Investment Portfolios, The Universal Institutional Funds, or Janus Aspen Series (collectively, the “Funds). The Funds are registered under the 1940 Act as open-end, management investment companies. The Fund and Enterprise are affiliated with MONY.

During the year ended December 31, 2003, the Variable Account combined all subaccounts investing in the same class of the same portfolio of the Funds. The financial statements for the years ended December 31, 2003 and 2002 are presented for each portfolio of the Funds rather than for each Variable Life Insurance Policy as if the subaccounts were combined on January 1, 2002. Combining these subaccounts had no effect on the net assets of the subaccounts or unit values of the Variable Life Insurance Policies.

These financial statements should be read in conjunction with the financial statements and footnotes of the Funds which were distributed by MONY to the Policyholders.

2. Significant Accounting Policies

The preparation of financial statements in accordance with accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Investments:

The investment in shares of each of the respective Funds’ portfolios is stated at value which is the net asset value of the respective portfolio, as reported by such portfolio. Net asset values are based upon market or fair valuations of the securities held in each of the corresponding portfolios of the Funds. For the Money Market Portfolio, the net asset value is based on the amortized cost of the securities held, which approximates market value.

Investment Transactions and Investment Income:

Investments in the portfolios of the Funds are recorded on the trade date. Realized gains and losses on redemption of investments in the portfolios of the Funds are determined on the identified cost basis. Dividend income and distributions of net realized gains are recorded on ex-dividend date. Dividends and distributions received are reinvested in additional shares of the respective portfolios of the Funds.

F-42

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

2. Significant Accounting Policies (continued)

Taxes:

MONY is currently taxed as a life insurance company and will include the Variable Account’s operations in its tax return. MONY does not expect, based on current tax law, to incur any income tax burden upon the earnings or realized gains attributable to the Variable Account. Based on this expectation, no charges are currently being deducted from the Variable Account for federal income tax purposes.

3. Related Party Transactions

MONY is the legal owner of the assets held by the Variable Account.

Policy premiums received from MONY by the Variable Account represent gross policy premiums recorded by MONY less deductions retained as compensation for certain sales distribution expenses and premium taxes.

The cost of insurance, administration charges, and, if applicable, the cost of any optional benefits added by riders to the insurance policies are deducted monthly from the cash value of the contract to compensate MONY. A surrender charge may be imposed by MONY when a full or partial surrender is requested by the policyholders. These deductions are treated as contractholder redemptions by the Variable Account. The amount deducted for the Variable Account for the year ended December 31, 2003 aggregated $7,156,247.

MONY receives from the Variable Account the amounts deducted for mortality and expense risks at an annual rate of 0.35% to 0.75% of average daily net assets of each of the MONY Variable Life subaccounts.

Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY, acts as investment adviser to the portfolios of Enterprise, and it receives amounts paid by Enterprise for those services.

MONY and MONY Life Insurance Company of America (“MONY America”), a wholly-owned subsidiary of MONY, receive fees directly from certain Funds for maintaining and servicing policyholders’ accounts. During the year ended December 31, 2003, MONY received $13,628 in aggregate from certain Funds in connection with MONY Life subaccounts.

MONY America acts as investment adviser to the Fund and receives amounts paid by the Fund for those services.

On September 17, 2003, The MONY Group, Inc. (“MONY Group,” the ultimate parent of MONY and MONY America) entered into an Agreement and Plan of Merger with AXA Financial, Inc. (“AXA Financial”), and AIMA Acquisition Co. (“AIMA”), which was subsequently amended on February 22, 2004 (hereafter referred to collectively as the “AXA Agreement”), pursuant to which MONY Group will become a wholly owned subsidiary of AXA Financial. The acquisition contemplated by the AXA Agreement is subject to various regulatory approvals and other customary conditions, including the approval of MONY Group’s shareholders. A special meeting of MONY Group’s shareholders is scheduled for May 18, 2004 to vote on the proposed acquisition of MONY Group by AXA Financial. The transaction is expected to close in the second quarter of 2004.

On January 13, 2004 and February 4, 2004 the Board of Trustees of Enterprise and the Board of Directors of the Fund (collectively “the Trusts”), respectively, approved resolutions to merge the Trusts into the EQ Advisors Trust, a registered investment company managed by the Equitable Life Assurance Society of the United States, a subsidiary of AXA Financial. These mergers are subject to the approvals of the shareholders of each of the Trusts and are conditional upon completion of the proposed acquisition of MONY Group by AXA Financial.

F-43

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

4. Investment Transactions

Cost of shares acquired and the proceeds from redemption of shares by each subaccount during the year ended December 31, 2003 were as follows:


MONY Variable Account L Subaccounts	Cost of Shares Acquired		Proceeds from Shares Redeemed

Enterprise Balanced Portfolio	$	8,222	$	1,906

Enterprise Capital Appreciation Portfolio		281,578		84,766

Enterprise Equity Portfolio		1,014,761		827,292

Enterprise Emerging Countries Portfolio		12,237		10,820

Enterprise Equity Income Portfolio		174,423		46,149

Enterprise Growth and Income Portfolio		434,285		161,461

Enterprise Growth Portfolio		827,106		168,469

Enterprise Global Socially Responsive Portfolio		23,903		8,964

Enterprise High-Yield Portfolio		144,542		130,715

Enterprise International Growth Portfolio		13,122		246,193

Enterprise Mid-Cap Growth Portfolio		5,212		1,958

Enterprise Multi-Cap Growth Portfolio		213,152		83,621

Enterprise Managed Portfolio		1,046,235		1,054,030

Enterprise Small Company Growth Portfolio		265,975		84,514

Enterprise Small Company Value Portfolio		1,025,480		663,843

Enterprise Total Return Portfolio		123,426		17,385

Enterprise WorldWide Growth Portfolio		837		244

Enterprise Short Duration Bond Portfolio		451		51

MONY Series Fund, Inc. Diversified Portfolio		3,385		3,259

MONY Series Fund, Inc. Equity Growth Portfolio		7,411		18,083

MONY Series Fund, Inc. Equity Income Portfolio		8,379		10,804

MONY Series Fund, Inc. Government Securities Portfolio		373,445		211,595

MONY Series Fund, Inc. Intermediate Term Bond Portfolio		122,739		118,688

MONY Series Fund, Inc. Money Market Portfolio		1,346,154		1,344,160

MONY Series Fund, Inc. Long Term Bond Portfolio		189,698		97,255

AIM Basic Value Fund—Series I		7,131		236

AIM Mid Cap Core Equity Fund—Series I		399		59

Alger American Balanced Portfolio—Class O		81,342		8,374

Alger American Mid Cap Growth Portfolio—Class O		159,471		16,739

Dreyfus Socially Responsible Growth Fund—Initial Class		54,939		24,047

Dreyfus Stock Index Portfolio—Initial Class		401,410		114,778

Dreyfus IP Small Cap Stock Index Portfolio—Service Class		1,107		73

Fidelity VIP Growth Portfolio—Service Class		264,290		130,712

Fidelity VIP II Contrafund Portfolio—Service Class		198,094		78,099

Fidelity VIP III Growth Opportunities Portfolio—Service Class		49,533		26,654

Franklin Income Securities Fund—Class 2		444		122

Franklin Rising Dividends Securities Fund—Class 2		1,239		14

Franklin Zero Coupon 2010 Fund—Class 2		73		0

F-44

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

4. Investment Transactions (continued)


MONY Variable Account L Subaccounts	Cost of Shares Acquired		Proceeds from Shares Redeemed

INVESCO VIF Financial Services Portfolio	$	16,141	$	2,075

INVESCO VIF Health Sciences Portfolio		31,367		3,755

INVESCO VIF Telecommunications Portfolio		15,225		6,276

Janus Aspen Series Mid Cap Growth Portfolio—Institutional Class		228,567		100,555

Janus Aspen Series Balanced Portfolio—Institutional Class		162,914		73,315

Janus Aspen Series Capital Appreciation Portfolio—Institutional Class		196,077		131,108

Janus Aspen Series Capital Appreciation Portfolio—Service Class		44,412		8,304

Janus Aspen Series Flexible Income Portfolio—Service Class		42,396		4,544

Janus Aspen Series International Growth Portfolio—Service Class		67,302		13,758

Janus Aspen Series WorldWide Growth Portfolio—Institutional Class		299,455		139,986

Lord Abbett Bond-Debenture Portfolio—Class VC		49,773		3,535

Lord Abbett Growth and Income Portfolio—Class VC		272,038		20,219

Lord Abbett Mid-Cap Value Portfolio—Class VC		231,473		16,582

MFS Mid-Cap Growth Portfolio—Initial Class		55,400		9,736

MFS New Discovery Portfolio—Initial Class		49,724		6,680

MFS Total Return Portfolio—Initial Class		106,689		10,071

MFS Utilities Portfolio—Initial Class		38,186		3,511

UIF Emerging Markets Equity Portfolio—Class I		16,954		4,483

UIF Global Value Equity Portfolio—Class I		15,438		2,098

UIF U.S. Real Estate Portfolio—Class I		104,194		15,638

Oppenheimer Global Securities Portfolio—Service Class		3,276		115

Oppenheimer Main Street Portfolio—Service Class		950		55

PBHG Mid-Cap Portfolio		139,646		15,581

PBHG Select Value Portfolio		34,512		3,222

PIMCO Global Bond Portfolio—Administrative Class		69,319		15,234

PIMCO Real Return Portfolio—Administrative Class		333,769		71,284

PIMCO StocksPLUS Growth and Income Portfolio—Administrative Class		158,744		25,253

F-45

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights

The Variable Life Insurance Policies have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns.

Effective for the year ended December 31, 2003, the Variable Account has adopted the provisions of AICPA Statement of Position 03-5 Financial Highlights of Separate Accounts: An Amendment to the Audit and Accounting Guide Audits of Investment Companies, which requires the disclosure of ranges for certain financial highlights information. The following table was developed by determining which Variable Life Insurance Policies funded by the Variable Account have the lowest and highest expense ratio. Only product designs within each subaccount that had units outstanding throughout the year ended December 31, 2003 were considered when determining the lowest and highest expense ratio. The summary may not reflect the minimum and maximum contract charges offered by MONY as contract owners may not have selected all available and applicable contract options discussed in Note 1. The ranges for the total return ratio and unit value correspond to the product groupings that produced the lowest and highest expense ratios.


	At December 31, 2003					For the period ended December 31, 2003
	Units Outstanding	Unit Value Lowest to Highest		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio** Lowest to Highest		Total Return*** Lowest to Highest

Enterprise Balanced Portfolio (6)	0	$	8.25 to 9.14	$	0	16.67	%(_^)	0.35%(_^) to 0.65	%(_^)	(2.25)% to (2.24	)%

Enterprise Capital Appreciation Portfolio	96,262		8.02 to 8.08		798	0.00		0.35 to 0.75		32.03 to 32.56

Enterprise Equity Portfolio	763,614		8.71 to 12.73		8,815	0.00		0.35 to 0.75		51.73 to 52.27

Enterprise Emerging Countries Portfolio (6)	0		7.81		0	0.00		0.65	(_^)	(1.88	)

Enterprise Equity Income Portfolio	36,536		9.95 to 10.41		368	1.57		0.35 to 0.75		25.79 to 26.18

Enterprise Growth and Income Portfolio	197,771		8.03 to 8.15		1,655	1.09		0.35 to 0.75		26.66 to 27.15

Enterprise Growth Portfolio	271,410		7.49 to 7.49		2,131	0.46		0.35 to 0.75		16.12 to 16.49

Enterprise Global Socially Responsive Portfolio	3,854		10.49 to 10.95		42	0.38		0.35 to 0.65		25.86 to 26.23

Enterprise High-Yield Portfolio	70,854		12.51 to 15.06		1,019	2.56		0.35 to 0.75		21.75 to 22.29

Enterprise International Growth Portfolio	171,305		6.35 to 10.32		1,642	0.49		0.35 to 0.75		29.97 to 30.39

Enterprise Mid Cap Growth Portfolio (6)	0		5.35 to 7.07		0	0.00		0.35(_^) to 0.65	(_^)	(2.90) to (2.88	)

Enterprise Multi-Cap Growth Portfolio	122,954		5.04 to 7.59		713	0.00		0.35 to 0.75		33.63 to 34.04

Enterprise Managed Portfolio	718,620		8.40 to 12.73		8,857	1.19		0.35 to 0.75		20.09 to 20.52

Enterprise Small Company Growth Portfolio	81,966		9.05 to 9.68		759	0.00		0.35 to 0.75		22.07 to 22.63

Enterprise Small Company Value Portfolio	312,903		11.65 to 26.05		6,873	0.11		0.35 to 0.75		36.39 to 37.06

Enterprise Total Return Portfolio	13,336		11.00 to 11.12		148	3.06		0.35 to 0.65		4.91 to 5.26

Enterprise WorldWide Growth Portfolio (6)	0		6.20		0	0.00		0.65	(_^)	(5.92	)

F-46

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2003						For the period ended December 31, 2003
	Units Outstanding	Unit Value Lowest to Highest		Net Assets (000’s)			Investment Income Ratio*		Expense Ratio** Lowest to Highest		Total Return*** Lowest to Highest

Enterprise Short Duration Bond Portfolio (1)	40	$	10.03	$	0	(_^_^)	2.97	%(_^)	0.35	%(_^)	0.30	%

MONY Series Fund, Inc. Diversified Portfolio	2,058		45.49		94		1.12		0.60		29.09

MONY Series Fund, Inc. Equity Growth Portfolio	807		54.65		44		0.30		0.60		30.87

MONY Series Fund, Inc. Equity Income Portfolio	906		53.77		49		1.79		0.60		26.97

MONY Series Fund, Inc. Government Securities Portfolio	68,455		10.60 to 13.81		822		2.88		0.35 to 0.75		0.95 to 1.34

MONY Series Fund, Inc. Intermediate Term Bond Portfolio	26,224		11.79 to 14.56		364		4.77		0.35 to 0.75		2.46 to 2.88

MONY Series Fund, Inc. Money Market Portfolio	307,495		10.11 to 12.53		3,344		0.88		0.35 to 0.75		0.16 to 0.60

MONY Series Fund, Inc. Long Term Bond Portfolio	50,925		11.23 to 15.97		734		5.77		0.35 to 0.75		3.97 to 4.37

AIM Basic Value Fund—Series I (7)	683		10.93		7		0.06	(_^)	0.35	(_^)	9.30

AIM Mid Cap Core Equity Fund—Series I (8)	33		10.68		0	(_^_^)	0.00		0.35	(_^)	6.80

Alger American Balanced Portfolio—Class O	10,836		10.70 to 10.78		117		1.62		0.35 to 0.65		18.33 to 18.63

Alger American Mid Cap Growth Portfolio—Class O	22,824		10.99 to 11.22		266		0.00		0.35 to 0.65		46.86 to 47.32

Dreyfus Socially Responsible Growth Fund—Initial Class	29,883		5.98 to 7.56		185		0.13		0.35 to 0.75		25.17 to 25.63

Dreyfus Stock Index Portfolio—Initial Class	202,873		7.82 to 8.11		1,632		1.55		0.35 to 0.75		27.36 to 27.92

Dreyfus IP Small Cap Stock Index Portfolio—Service Class (9)	96		10.90		1		0.00		0.35	(_^)	9.00

Fidelity VIP Growth Portfolio—Service Class	153,820		6.85 to 6.99		1,043		0.18		0.35 to 0.75		31.73 to 32.39

Fidelity VIP II Contrafund Portfolio—Service Class	91,087		9.40 to 9.46		869		0.33		0.35 to 0.75		27.37 to 27.84

Fidelity VIP III Growth Opportunities Portfolio—Service Class	20,004		7.42 to 9.25		158		0.56		0.35 to 0.75		28.65 to 29.27

Franklin Income Securities Fund—Class 2 (2)	30		10.85		0	(_^_^)	0.00		0.35	(_^)	8.50

Franklin Rising Dividends Securities Fund—Class 2 (3)	118		10.73		1		0.00		0.35	(_^)	7.30

Franklin Zero Coupon 2010 Fund—Class 2 (4)	7		10.05		0	(_^_^)	0.00		0.35	(_^)	0.50

INVESCO VIF Financial Services Portfolio	3,195		10.76 to 11.21		35		0.67		0.35 to 0.65		28.70 to 29.02

F-47

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2003					For the period ended December 31, 2003
	Units Outstanding	Unit Value Lowest to Highest		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio** Lowest to Highest		Total Return*** Lowest to Highest

INVESCO VIF Health Sciences Portfolio	5,543	$	10.29	$	57	0.00	%	0.65	%	27.04	%

INVESCO VIF Telecommunications Portfolio	2,469		8.51		21	0.00		0.65		33.39

Janus Aspen Series Mid Cap Growth Portfolio—Institutional Class	190,938		3.56 to 7.71		814	0.00		0.35 to 0.75		34.09 to 34.85

Janus Aspen Series Balanced Portfolio—Institutional Class	58,950		10.14 to 10.29		587	2.33		0.35 to 0.75		13.20 to 13.68

Janus Aspen Series Capital Appreciation Portfolio—Institutional Class	128,029		5.83 to 6.47		828	0.49		0.35 to 0.	65	19.59 to 19.96

Janus Aspen Series Capital Appreciation Portfolio—Service Class	6,891		11.04 to 10.69		73	0.28		0.35 to 0.65		19.44 to 19.79

Janus Aspen Series Flexible Income Portfolio—Service Class	6,281		11.43 to 11.62		72	4.48		0.35 to 0.65		5.54 to 5.83

Janus Aspen Series International Growth Portfolio—Service Class	13,169		10.62 to 10.70		141	1.02		0.35 to 0.65		33.75 to 34.09

Janus Aspen Series Worldwide Growth Portfolio—Institutional Class	204,216		5.63 to 6.14		1,186	1.15		0.35 to 0.65		23.19 to 23.54

Lord Abbett Bond-Debenture Portfolio—Class VC	6,246		12.25 to 12.56		77	5.56		0.35 to 0.65		17.27 to 17.56

Lord Abbett Growth and Income Portfolio—Class VC	37,685		10.57 to 10.83		405	1.00		0.35 to 0.65		30.17 to 30.66

Lord Abbett Mid-Cap Value Portfolio— Class VC	29,990		11.04 to 12.08		343	0.78		0.35 to 0.65		24.04 to 24.41

MFS Mid-Cap Growth Portfolio—Initial Class	10,538		8.85		94	0.00		0.65		36.15

MFS New Discovery Portfolio—Initial Class	9,967		9.76 to 10.43		99	0.00		0.35 to 0.65		32.79 to 33.21

MFS Total Return Portfolio—Initial Class	17,184		10.73 to 11.09		190	1.48		0.35 to 0.65		15.64 to 16.00

MFS Utilities Portfolio—Initial Class	4,595		11.72		54	2.35		0.65		35.02

UIF Emerging Markets Equity Portfolio—Class I	4,277		12.10 to 12.70		54	0.00		0.35 to 0.65		48.71 to 49.20

UIF Global Value Equity Portfolio—Class I	1,988		10.59		21	0.00		0.65		28.05

UIF U.S. Real Estate Portfolio—Class I	15,443		12.44 to 13.23		197	0.00		0.35 to 0.65		36.67 to 37.00

Oppenheimer Global Securities Portfolio—Service Class (5)	301		11.25		3	0.00		0.35	(_^)	12.50

Oppenheimer Main Street Portfolio—Service Class (2)	86		10.79		1	0.00		0.35	(_^)	7.90

PBHG Mid-Cap Portfolio	22,256		11.26 to 11.54		256	0.00		0.35 to 0.65		33.41 to 33.89

PBHG Select Value Portfolio	5,871		9.37		55	3.01		0.65		17.42

F-48

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2003					For the period ended December 31, 2003
	Units Outstanding	Unit Value Lowest to Highest		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio** Lowest to Highest		Total Return*** Lowest to Highest

PIMCO Global Bond Portfolio—Administrative Class	9,312	$	12.97 to $13.53	$	123	2.05	%	0.35% to 0.65	%	13.70% to 14.07	%

PIMCO Real Return Portfolio—Administrative Class	34,773		11.93 to 12.45		427	2.19		0.35 to 0.65		8.17 to 8.45

PIMCO StocksPLUS Growth and Income Portfolio—Administrative Class	31,103		10.41 to 10.70		331	2.33		0.35 to 0.65		29.54 to 29.96

This ratio represents the amount of dividend income, excluding distributions from net realized gains, received by the subaccount from the underlying fund, net of investment advisory fees assessed by the underlying fund’s investment adviser and other expenses of the underlying fund, divided by the average net assets of the subaccount. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the net asset value per Unit. The recognition of dividend income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

This ratio represents the annual contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratio includes only those expenses that result in a direct reduction to net asset value per Unit. Charges made directly to contractholder accounts by redemption of Units and expenses of the respective underlying fund are excluded from this ratio.

***

Represents the total return for the period indicated, including changes in the value of the underlying fund and reflects deductions for all items included in the Expense Ratio. The Total Return does not include any expenses assessed through the redemption of Units; the Total Return would have been lower had such expenses been included in the calculation. Total returns for periods less than one year are not annualized. The Total Return is calculated for the year ended December 31, 2003 or from the commencement of operations of the Subaccount.

(_^)	Annualized.

(_^_^)

Amounts round to less than one thousand.

(1)	For the period November 3, 2003 (commencement of operations) through December 31, 2003.

(2)	For the period November 6, 2003 (commencement of operations) through December 31, 2003.

(3)	For the period November 20, 2003 (commencement of operations) through December 31, 2003.

(4)	For the period November 26, 2003 (commencement of operations) through December 31, 2003.

(5)	For the period October 7, 2003 (commencement of operations) through December 31, 2003.

(6)	For the period January 1, 2003 through February 28, 2003 (termination of subaccount).

(7)	For the period October 20, 2003 (commencement of operations) through December 31, 2003.

(8)	For the period October 21, 2003 (commencement of operations) through December 31, 2003.

(9)	For the period October 30, 2003 (commencement of operations) through December 31, 2003.

F-49

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

For a unit outstanding throughout the period ended December 31, 2002:


	At December 31, 2002					For the period ended December 31, 2002
Strategist Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Equity Growth Subaccount	1,027	$	41.76	$	43	0.59	%	0.60	%	(23.15	)%

Equity Income Subaccount	950		42.35		40	1.70		0.60		(15.65	)

Intermediate Term Bond Subaccount	544		28.59		16	2.91		0.60		8.67

Long Term Bond Subaccount	626		36.08		23	3.97		0.60		13.39

Diversified Subaccount	2,043		35.24		72	2.07		0.60		(16.87	)

Money Market Subaccount	877		20.69		18	1.49		0.60		0.93

MONY Equity Master Subaccounts

MONY Series Fund, Inc.

Government Securities Subaccount	22,488		13.68		308	2.82		0.75		5.80

Intermediate Term Bond Subaccount	13,508		14.21		192	3.32		0.75		8.56

Long Term Bond Subaccount	22,745		15.36		349	4.32		0.75		13.27

Money Market Subaccount	53,939		12.51		675	1.48		0.75		0.72

Enterprise Accumulation Trust

Equity Subaccount	585,851		8.39		4,913	0.00		0.75		(29.91	)

Small Company Value Subaccount	216,070		19.10		4,127	0.37		0.75		(9.91	)

F-50

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2002:


	At December 31, 2002					For the period ended December 31, 2002
Strategist Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income Ratio*		Expense Ratio**		Total Return***

Managed Subaccount	652,248	$	10.60	$	6,916	0.95	%	0.75	%	(21.83	)%

International Growth Subaccount	133,659		7.94		1,061	0.68		0.75		(20.04	)

High Yield Bond Subaccount	51,078		12.37		632	8.66		0.75		0.73

Growth Subaccount	33,150		6.45		214	0.41		0.75		(23.76	)

Growth and Income Subaccount	68,556		6.34		435	1.22		0.75		(26.54	)

Capital Appreciation Subaccount	15,482		6.12		95	0.00		0.75		(17.52	)

Balanced Subaccount	149		8.47		1	2.10		0.75		(7.73	)

Equity Income Subaccount	638		7.91		5	1.66		0.75		(15.40	)

Multi-Cap Growth Subaccount	1,337		5.68		8	0.00		0.75		(35.16	)

Small Company Growth Subaccount	3,613		7.93		29	0.00		0.75		(24.55	)

Mid-Cap Growth Subaccount	1,874		6.50		12	0.00		0.75		(31.51	)

Worldwide Growth Subaccount	57		7.42		426	0.00		0.75		(25.87	)

Emerging Countries Subaccount	0		0		0	0.00		0.75		(21.50	)

Dreyfus

Dreyfus Stock Index Subaccount	26,426		6.14		162	1.42		0.75		(22.56	)

Dreyfus Socially Responsible Growth Subaccount	154		6.04		1	0.21		0.75		(29.52	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	35,429		5.20		184	0.13		0.75		(30.76	)

VIP II Contrafund Subaccount	18,390		7.38		136	0.64		0.75		(10.11	)

VIP III Growth Opportunities Subaccount	251		7.19		2	0.80		0.75		(22.44	)

Janus Aspen Series

Aggressive Growth Subaccount	729		5.75		4	0.00		0.75		(28.48	)

Balanced Subaccount	4,496		9.09		41	4.15		0.75		(7.15	)

Capital Appreciation Subaccount	46,743		5.41		253	0.60		0.75		(16.25	)

Worldwide Growth Subaccount	51,123		4.57		234	1.00		0.75		(26.17	)

For a unit outstanding throughout the period ended December 31, 2001:


	At December 31, 2001					For the period ended December 31, 2001
Strategist Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Equity Growth Subaccount	1,054	$	54.34	$	57	0.00	%	0.60	%	(19.79	)%

Equity Income Subaccount	815		50.21		41	1.71		0.60		(11.52	)

Intermediate Term Bond Subaccount	295		26.31		8	5.27		0.60		7.87

Long Term Bond Subaccount	478		31.82		15	5.16		0.60		5.68

Diversified Subaccount	2,071		42.39		88	1.13		0.60		(15.93	)

Money Market Subaccount	2,246		20.50		46	3.44		0.60		3.17

F-51

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)




	At December 31, 2001					For the period ended December 31, 2001
MONYEquity Master Subaccounts	Units		Unit Values	Net Assets (000s)		Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Government Securities Subaccount	16,863		12.93	218		4.35		0.75		5.81

Intermediate Term Bond Subaccount	9,128		13.09	119		4.84		0.75		7.74

Long Term Bond Subaccount	21,528		13.56	292		4.92		0.75		5.53

Money Market Subaccount	40,522		12.42	503		3.59		0.75		3.07

Enterprise Accumulation Trust

Equity Subaccount	532,023		11.97	6,370		0.00		0.75		(19.45	)

Small Company Value Subaccount	204,616		21.20	4,339		0.26		0.75		4.33

Managed Subaccount	631,443		13.56	8,562		2.19		0.75		(11.83	)

International Growth Subaccount	117,820		9.93	1,170		0.68		0.75		(28.41	)

High Yield Bond Subaccount	48,673		12.28	598		8.85		0.75		5.14

Growth Subaccount	28,653		8.46	243		0.48		0.75		(13.23	)

Growth and Income Subaccount	65,041		8.63	561		0.89		0.75		(12.56	)

Capital Appreciation Subaccount	11,976		7.42	89		0.70		0.75		(19.78	)

Balanced Subaccount (1)	0	(^^)	9.18	0	(^^^)	4.18	(^)	0.75	(^)	(8.20	)

Equity Income Subaccount (2)	231		9.35	2		1.66	(^)	0.75	(^)	(6.50	)

Multi-Cap Growth Subaccount (3)	572		8.76	5		0.00	(^)	0.75	(^)	(12.40	)

Small Company Growth Subaccount (4)	476		10.51	5		0.00	(^)	0.75	(^)	5.10

Mid-Cap Growth Subaccount (4)	379		9.49	4		0.00	(^)	0.75	(^)	(5.10	)

Worldwide Growth Subaccount (5)	0	(^^)	10.01	0	(^^^)	0.00	(^)	0.75	(^)	0.10

Dreyfus

Dreyfus Stock Index Subaccount	19,709		7.96	157		0.51		0.75		(12.91	)

Dreyfus Socially Responsible Growth Subaccount (6)	44		8.57	0	(^^^)	0.00	(^)	0.75	(^)	(14.30	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	26,701		7.51	200		0.00		0.75		(18.37	)

VIP II Contrafund Subaccount	13,866		8.21	114		0.59		0.75		(13.03	)

VIP III Growth Opportunities Subaccount (6)	199		9.27	2		0.00	(^)	0.75	(^)	(7.30	)

Janus Aspen Series

Aggressive Growth Subaccount (6)	413		8.04	3		0.00	(^)	0.75	(^)	(19.60	)

Balanced Subaccount (5)	1,435		9.79	14		4.93	(^)	0.75	(^)	(2.10	)

Capital Appreciation Subaccount	39,919		6.46	258		1.34		0.75		(22.36	)

Worldwide Growth Subaccount	38,546		6.19	238		0.53		0.75		(23.01	)

***

Represents the total return for the period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the Expense Ratio. The Total Return does not include any expenses assessed through the redemption of Units; the Total Return would have been lower had such expenses been included in the calculation. Total returns for periods less than one year are not annualized.

(^)	Annualized.

(^^)	Amounts round to less than one.

(^^^)

Amounts round to less than one thousand.

(1)	For the period May 4, 2001 (commencement of operations) through December 31, 2001.

(2)	For the period June 19, 2001 (commencement of operations) through December 31, 2001.

(3)	For the period May 18, 2001 (commencement of operations) through December 31, 2001.

(4)	For the period August 8, 2001 (commencement of operations) through December 31, 2001.

(5)	For the period June 13, 2001 (commencement of operations) through December 31, 2001.

(6)	For the period May 15, 2001 (commencement of operations) through December 31, 2001.

F-52

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2002:


	At December 31, 2002					For the period ended December 31, 2002
MONY Custom Equity Master Subaccounts	Units	Unit Value		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Intermediate Term Bond Subaccount	11,293	$	12.37	$	140	2.26	%	0.35	%	8.70	%

Long Term Bond Subaccount	12,772		13.21		169	2.50		0.35		13.39

Government Securities Subaccount	17,384		12.31		214	1.41		0.35		5.94

Money Market Subaccount	96,370		10.80		1,041	0.97		0.35		0.93

Enterprise Accumulation Trust

Equity Subaccount	132,826		4.82		641	0.00		0.35		(29.84	)

Small Company Value Subaccount	38,844		10.00		389	0.26		0.35		(9.75	)

Managed Subaccount	46,292		7.19		333	0.66		0.35		(21.59	)

International Growth Subaccount	22,624		5.22		118	0.46		0.35		(19.94	)

High Yield Bond Subaccount	15,634		10.50		164	5.40		0.35		0.96

Growth Subaccount	105,572		6.46		682	0.27		0.35		(23.74	)

Growth and Income Subaccount	81,345		6.51		530	0.81		0.35		(26.36	)

Small Company Growth Subaccount	42,606		7.36		313	0.00		0.35		(24.36	)

Equity Income Subaccount	15,612		7.85		123	0.84		0.35		(15.23	)

Capital Appreciation Subaccount	48,771		6.36		310	0.00		0.35		(17.30	)

Multi-Cap Growth Subaccount	83,320		4.16		346	0.00		0.35		(34.90	)

Balanced Subaccount	11,429		8.44		96	1.35		0.35		(11.34	)

Emerging Countries Subaccount	537		7.96		4	0.13		0.35		(17.17	)

Worldwide Growth Subaccount	1,298		6.59		9	0.00		0.35		(25.11	)

Mid-Cap Growth Subaccount	5,215		5.51		29	0.00		0.35		(31.38	)

Total Return Subaccount (1)	21		10.46		0	1.92	(_^)	0.35	(_^)	4.60

Dreyfus

Dreyfus Stock Index Subaccount	119,048		6.34		755	0.92		0.35		(22.78	)

Dreyfus Socially Responsible Growth Subaccount	19,929		4.97		99	0.18		0.35		(29.40	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	79,727		5.09		406	0.08		0.35		(30.56	)

VIP II Contrafund Subaccount	49,502		7.55		374	0.40		0.35		(9.90	)

VIP III Growth Opportunities Subaccount	13,189		6.14		81	0.47		0.35		(22.38	)

Janus Aspen Series

Aggressive Growth Subaccount	141,118		3.18		449	0.00		0.35		(28.38	)

Balanced Subaccount	38,530		8.72		336	1.71		0.35		(6.94	)

Capital Appreciation Subaccount	60,226		5.46		329	0.38		0.35		(16.13	)

Worldwide Growth Subaccount	103,472		4.73		490	0.64		0.35		(25.98	)

F-53

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2002					For the period ended December 31, 2002
MONY Custom Equity Master Subaccounts	Units	Unit Value		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio**		Total Return***

Alger American Fund

Mid Cap Growth Subaccount (2)	1,148	$	7.64	$	9	0.00	%	0.35	%(_^)	(23.60	)%

Lord Abbett Series Funds

Growth and Income Subaccount (3)	1,005		8.32		8	0.92	(_^)	0.35	(_^)	(16.80	)

Mid-Cap Value Subaccount (2)	3,695		8.69		32	0.77	(_^)	0.35	(_^)	(13.10	)

The Universal Institutional Funds, Inc.

U.S. Real Estate Subaccount (3)	1,536		9.08		14	4.42	(_^)	0.35	(_^)	(9.20	)

PIMCO Variable Insurance Trust

Global Bond Subaccount (3)	1,866		11.33		21	1.42	(_^)	0.35	(_^)	13.30

Real Return Subaccount (2)	4,960		11.20		56	2.16	(_^)	0.35	(_^)	12.00

For a unit outstanding throughout the period ended December 31, 2001:


	At December 31, 2001			For the period ended December 31, 2001
MONY Custom Equity Master Subaccounts	Units	Unit Value	Net Assets (000’s)	Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Intermediate Term Bond Subaccount	5,383	11.38	61	2.71		0.35		8.17

Long Term Bond Subaccount	5,166	11.65	60	3.22		0.35		5.91

Government Securities Subaccount	7,316	11.62	85	1.52		0.35		6.22

Money Market Subaccount	121,626	10.70	1,301	3.02		0.35		3.48

Enterprise Accumulation Trust

Equity Subaccount	93,665	6.87	643	0.00		0.35		(19.08	)

Small Company Value Subaccount	22,978	11.08	255	0.31		0.35		4.82

Managed Subaccount	31,845	9.17	292	2.72		0.35		(11.49	)

International Growth Subaccount	14,206	6.52	93	0.82		0.35		(28.04	)

High Yield Bond Subaccount	7,695	10.40	80	8.81		0.35		5.48

Growth Subaccount	70,201	8.47	594	0.56		0.35		(12.86	)

Growth and Income Subaccount	53,806	8.84	476	1.16		0.35		(12.21	)

Small Company Growth Subaccount	29,439	9.73	287	0.00		0.35		(4.23	)

Equity Income Subaccount	9,356	9.26	87	1.30		0.35		(11.05	)

Capital Appreciation Subaccount	33,465	7.69	257	0.74		0.35		(19.39	)

Multi-Cap Growth Subaccount	60,270	6.39	385	0.00		0.35		(17.34	)

Balanced Subaccount	6,380	9.52	61	2.07		0.35		(4.13	)

Emerging Countries Subaccount (4)	169	9.61	2	0.00	(^)	0.35	(^)	(3.90	)

Worldwide Growth Subaccount (4)	463	8.80	4	0.00	(^)	0.35	(^)	(12.00	)

Mid-Cap Growth Subaccount (4)	1,466	8.03	12	0.00	(^)	0.35	(^)	(19.70	)

F-54

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2001					For the period ended December 31, 2001
MONY Custom Equity Master Subaccounts	Units	Unit Value		Net Assets (000’s)		Investment Income Ratio*		Expense Ratio**		Total Return***

Dreyfus

Dreyfus Stock Index Subaccount	78,584	$	8.21	$	645	1.28	%	0.35	%	(12.57	)%

Dreyfus Socially Responsible Growth Subaccount	11,748		7.04		83	0.09		0.35		(22.89	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	57,776		7.33		423	0.00		0.35		(18.01	)

VIP II Contrafund Subaccount	37,789		8.38		317	0.51		0.35		(12.62	)

VIP III Growth Opportunities Subaccount	8,012		7.91		63	0.16		0.35		(14.76	)

Janus Aspen Series

Aggressive Growth Subaccount	90,311		4.44		401	0.00		0.35		(39.76	)

Balanced Subaccount	26,527		9.37		249	3.19		0.35		(5.07	)

Capital Appreciation Subaccount	46,253		6.51		301	1.41		0.35		(21.94	)

Worldwide Growth Subaccount	71,160		6.39		455	0.59		0.35		(22.73	)

***

(_^)	Annualized

(1)	For the period June 12, 2002 (commencement of operations) through December 31, 2002

(2)	For the period May 6, 2002 (commencement of operations) through December 31, 2002

(3)	For the period May 31, 2002 (commencement of operations) through December 31, 2002

(4)	For the period June 8, 2001 (commencement of operations) through December 31, 2001.

F-55

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2002:


	At December 31, 2002					For the period ended December 31, 2002
MONY Variable Universal Life Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income Ratio*^		Expense Ratio^**		Total Return***

Alger American Fund

Balanced Subaccount (1)	3,008	$	9.11	$	27	0.84	%	0.65	%	(8.90	)%

Mid Cap Growth Subaccount (2)	5,358		7.57		41	0.00		0.65		(24.30	)

Enterprise Accumulation Trust

Equity Income Subaccount (3)	2,679		8.53		23	1.88		0.65		(14.70	)

Growth and Income Subaccount (4)	8,201		7.92		65	2.01		0.65		(20.80	)

Growth Subaccount (4)	13,686		8.00		109	0.61		0.65		(20.00	)

Global Socially Responsive Subaccount (4)	1,385		8.70		12	0.50		0.65		(13.00	)

Managed Subaccount (5)	1,521		8.35		13	1.58		0.65		(16.50	)

Multi-Cap Growth Subaccount (3)	3,463		7.03		24	0.00		0.65		(29.70	)

Small Company Growth Subaccount (4)	6,471		8.05		52	0.00		0.65		(19.50	)

Small Company Value Subaccount (4)	10,407		9.34		97	0.67		0.65		(6.60	)

Total Return Bond Subaccount (10)	3,459		10.60		37	3.52		0.65		6.00

INVESCO Variable Investment Funds

Financial Services Subaccount (4)	925		8.71		8	1.44		0.65		(12.90	)

Health Sciences Subaccount (4)	2,467		8.10		20	0.00		0.65		(19.00	)

Telecommunications Subaccount (3)	1,132		6.38		7	0.00		0.65		(36.20	)

Janus Aspen Series

Capital Appreciation Subaccount (5)	1,990		8.95		18	0.45		0.65		(10.50	)

Flexible Income Subaccount (1)	2,536		10.83		27	4.92		0.65		8.30

International Growth Subaccount (1)	6,455		8.00		52	0.97		0.65		(20.00	)

Lord Abbett Series Funds

Bond Debenture Subaccount (1)	2,017		10.71		22	3.98		0.65		7.10

Growth and Income Subaccount (6)	7,720		8.11		63	1.31		0.65		(18.90	)

Mid-Cap Value Subaccount (7)	3,087		8.90		27	1.52		0.65		(11.00	)

MFS Variable Insurance Trust

Mid Cap Growth Subaccount (3)	4,315		6.50		28	0.00		0.65		(35.00	)

New Discovery Subaccount (3)	3,522		7.35		26	0.00		0.65		(26.50	)

Total Return Subaccount (4)	6,621		9.59		64	0.51		0.65		(4.10	)

Utilities Subaccount (3)	967		8.68		8	1.80		0.65		(13.20	)

MONY Series Fund, Inc.

Government Securities Subaccount (1)	9,287		10.51		98	0.12		0.65		5.10

Long Term Bond Subaccount (5)	4,206		11.09		47	0.05		0.65		10.90

Money Market Subaccount (8)	78,518		10.08		791	1.42		0.65		0.80

F-56

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2002					For the period ended December 31, 2002
MONY Variable Universal Life Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income Ratio*_^		Expense Ratio_^**		Total Return***

The Universal Institutional Funds, Inc.

Emerging Markets Equity Subaccount (3)	2,063	$	8.54	$	18	0.00	%	0.65	%	(14.60	)%

Global Value Equity Subaccount (9)	462		8.27		4	2.47		0.65		(17.30	)

U.S. Real Estate Subaccount (2)	4,010		9.68		39	7.04		0.65		(3.20	)

PBHG Insurance Series Fund

Mid-Cap Value Subaccount (4)	7,346		8.65		64	0.00		0.65		(13.50	)

Select Value Subaccount (4)	2,063		7.98		16	1.85		0.65		(20.20	)

PIMCO Variable Insurance Trust

Global Bond Subaccount (5)	2,562		11.90		31	2.68		0.65		19.00

Real Return Subaccount (7)	5,050		11.51		58	4.48		0.65		15.10

StocksPlus Growth and Income Subaccount (5)	14,127		8.26		117	3.37		0.65		(17.40	)

***

_^	Annualized

(1)	For the period February 21, 2002 (commencement of operations) through December 31, 2002

(2)	For the period February 26, 2002 (commencement of operations) through December 31, 2002

(3)	For the period February 15, 2002 (commencement of operations) through December 31, 2002

(4)	For the period February 8, 2002 (commencement of operations) through December 31, 2002

(5)	For the period February 22, 2002 (commencement of operations) through December 31, 2002

(6)	For the period February 27, 2002 (commencement of operations) through December 31, 2002

(7)	For the period March 1, 2002 (commencement of operations) through December 31, 2002

(8)	For the period February 6, 2002 (commencement of operations) through December 31, 2002

(9)	For the period February 28, 2002 (commencement of operations) through December 31, 2002

(10)	For the period March 5, 2002 (commencement of operations) through December 31, 2002

F-57

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2002:


	At December 31, 2002					For the period ended December 31, 2002
MONY Survivorship Variable Universal Life Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income *Ratio^**		Expense Ratio**^		Total Return***

Alger American Fund

Balanced Subaccount (1)	528	$	9.02	$	5	1.46	%	0.35	%	(9.80	)%

Mid-Cap Growth Subaccount (2)	1,110		7.46		8	0.00		0.35		(25.40	)

Enterprise Accumulation Trust

Equity Income Subaccount (3)	816		8.88		7	2.55		0.35		(11.20	)

Growth and Income Subaccount (4)	809		7.91		6	2.18		0.35		(20.90	)

Growth Subaccount (5)	319		9.44		3	1.75		0.35		(5.60	)

Global Socially Responsive Subaccount (2)	811		8.31		7	0.67		0.35		(16.90	)

Multi-Cap Growth Subaccount (2)	810		7.27		6	0.00		0.35		(27.30	)

Small Company Growth Subaccount (2)	2,865		7.73		22	0.00		0.35		(22.70	)

Small Company Value Subaccount (1)	747		8.50		6	0.89		0.35		(15.00	)

INVESCO Variable Investment Fund

Financial Services Subaccount (2)	786		8.34		7	1.16		0.35		(16.60	)

Janus Aspen Series

Capital Appreciation Subaccount (2)	1,112		8.74		10	0.51		0.35		(12.60	)

Flexible Income Subaccount (1)	319		10.98		4	3.15		0.35		9.80

International Growth Subaccount (6)	275		7.92		2	1.19		0.35		(20.80	)

Lord Abbett Series Funds

Bond Debenture Subaccount (7)	89		10.42		1	6.65		0.35		4.20

Growth and Income Subaccount (1)	708		8.09		6	1.05		0.35		(19.10	)

Mid-Cap Value Subaccount (7)	501		9.71		5	1.63		0.35		(2.90	)

MFS Variable Insurance Trust

New Discovery Subaccount (6)	1,203		7.83		9	0.00		0.35		(21.70	)

Total Return Subaccount (2)	965		9.25		9	0.00		0.35		(7.50	)

MONY Series Fund, Inc.

Government Securities Subaccount (6)	1,509		10.46		16	0.00		0.35		4.60

Long Term Bond Subaccount (8)	0		10.76		0	0.00		0.35		7.60

Money Market Subaccount	7,843		10.05		79	1.42		0.35		0.50

The Universal Institutional Funds, Inc.

Emerging Markets Equity Subaccount (2)	874		8.11		7	0.00		0.35		(18.90	)

U.S. Real Estate Subaccount (6)	1,667		9.08		15	7.60		0.35		(9.20	)

PBHG Insurance Series Funds

Mid Cap Value Subaccount (6)	1,672		8.41		14	0.00		0.35		(15.90	)

Select Value Subaccount (8)	0		10.18		0	0.00		0.35		1.80

F-58

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


	At December 31, 2002					For the period ended December 31, 2002
MONY Survivorship Variable Universal Life Subaccounts	Units	Unit Values		Net Assets (000s)		Investment Income *Ratio^**		Expense Ratio**^		Total Return***

PIMCO Variable Insurance Trust

Global Bond Subaccount (6)	456	$	11.37	$	5	2.73	%	0.35	%	13.70	%

Real Return Subaccount (1)	2,219		11.51		26	3.94		0.35		15.10

StocksPlus Growth and Income Subaccount (1)	2,168		8.01		17	3.31		0.35		(19.90	)

***

****	Commencement of operations

_^	Annualized

(1)	For the period April 3, 2002**** through December 31, 2002

(2)	For the period May 2, 2002**** through December 31, 2002

(3)	For the period July 5, 2002**** through December 31, 2002

(4)	For the period May 5, 2002**** through December 31, 2002

(5)	For the period September 10, 2002**** through December 31, 2002

(6)	For the period May 29, 2002**** through December 31, 2002

(7)	For the period August 21, 2002**** through December 31, 2002

(8)	For the period August 5, 2002**** through December 31, 2002

F-59

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2002.


	At December 31, 2002						For the period ended December 31, 2002
MONY Custom Estate Master Subaccounts	Units	Unit Values		Net Assets (000s)			Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Intermediate Term Bond Subaccount	79	$	11.46	$	1		3.33	%	0.35	%	8.94	%

Long Term Bond Subaccount	1,639		12.79		21		4.58		0.35		13.59

Government Securities Subaccount	1,078		11.06		12		2.68		0.35		6.24

Money Market Subaccount	64,399		11.00		708		1.48		0.35		1.10

Enterprise Accumulation Trust

Equity Subaccount	11,200		5.72		64		0.00		0.35		(29.64	)

Small Company Value Subaccount	6,299		9.53		60		0.40		0.35		(9.58	)

Managed Subaccount	2,740		6.97		19		0.86		0.35		(21.50	)

International Growth Subaccount	5,517		4.87		27		0.61		0.35		(19.64	)

High Yield Bond Subaccount	1,888		10.23		19		8.60		0.35		1.09

Growth Subaccount	13,466		6.43		87		0.44		0.35		(23.45	)

Growth and Income Subaccount	2,309		6.41		15		1.32		0.35		(26.24	)

Small Company Growth Subaccount	3,764		7.38		28		0.00		0.35		(24.23	)

Equity Income Subaccount	1,808		8.25		15		1.15		0.35		(15.04	)

Capital Appreciation Subaccount	2,933		6.05		18		0.00		0.35		(17.24	)

Multi-Cap Growth Subaccount	10,082		3.76		38		0.00		0.35		(34.84	)

Balanced Subaccount	30		9.35		0	(_^_^)	1.81		0.35		(11.04	)

Mid-Cap Growth Subaccount	194		7.28		1		0.00		0.35		(31.19	)

Total Return Subaccount (1)	13		10.45		0	(_^_^)	3.35	(_^)	0.35	(_^)	4.50

Dreyfus

Dreyfus Stock Index Subaccount	15,730		6.34		100		1.45		0.35		(22.68	)

Dreyfus Socially Responsible Growth Fund Subaccount	3,895		4.76		19		0.31		0.35		(29.17	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	15,240		5.28		81		0.12		0.35		(30.53	)

VIP II Contrafund Subaccount	7,909		7.40		58		0.70		0.35		(9.65	)

VIP III Growth Opportunities Subaccount	3,204		5.74		18		0.85		0.35		(22.22	)

Janus Aspen Series

Aggressive Growth Subaccount	14,864		2.64		39		0.00		0.35		(28.26	)

Balanced Subaccount	5,897		8.92		53		2.80		0.35		(6.79	)

Capital Appreciation Subaccount	9,317		4.86		45		0.59		0.35		(15.92	)

Worldwide Growth Subaccount	16,837		4.97		84		1.04		0.35		(25.71	)

Lord Abbett Series Funds

Growth and Income Subaccount (1)	15		8.56		0	(_^_^)	1.94	(_^)	0.35	(_^)	(14.40	)

PIMCO Variable Insurance Trust

Real Return Subaccount (1)	8		11.00		0	(_^_^)	2.88	(_^)	0.35	(_^)	10.00

(_^)	Annualized

(_^_^)

Amounts round to less than one thousand

(1)	For the period June 17, 2002 (commencement of operations) through December 31, 2002.

F-60

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)

For a unit outstanding throughout the period ended December 31, 2001.


	At December 31, 2001						For the period ended December 31, 2001
MONY Custom Estate Master Subaccounts	Units	Unit Values		Net Assets (000s)			Investment Income Ratio*		Expense Ratio**		Total Return***

MONY Series Fund, Inc.

Intermediate Term Bond Subaccount	93	$	10.52	$	1		0.00	%(_^)	0.35	%(_^)	5.20	%

Long Term Bond Subaccount	1,011		11.26		11		5.15		0.35		5.93

Government Securities Subaccount	434		10.41		5		0.60	(_^)	0.35	(_^)	4.10

Money Market Subaccount	35,225		10.88		383		3.23		0.35		3.52

Enterprise Accumulation Trust

Equity Subaccount	6,726		8.13		55		0.00		0.35		(19.10	)

Small Company Value Subaccount	4,236		10.54		45		0.30		0.35		4.88

Managed Subaccount	1,617		8.88		14		2.76		0.35		(11.38	)

International Growth Subaccount	4,047		6.06		25		0.71		0.35		(28.11	)

High Yield Bond Subaccount	1,004		10.12		10		8.79		0.35		5.53

Growth Subaccount	7,125		8.40		60		0.51		0.35		(12.86	)

Growth and Income Subaccount	3,587		8.69		31		1.09		0.35		(12.13	)

Small Company Growth Subaccount	2,949		9.74		29		0.00		0.35		(4.23	)

Equity Income Subaccount	1,282		9.71		12		0.81		0.35		(11.08	)

Capital Appreciation Subaccount	3,721		7.31		27		0.72		0.35		(19.40	)

Multi-Cap Growth Subaccount	9,181		5.77		53		0.00		0.35		(17.34	)

Balanced Subaccount	37		10.51		0	(_^_^)	2.77	(_^)	0.35	(_^)	5.10

Mid-Cap Growth Subaccount	1		10.58		0	(_^_^)	0.00	(_^)	0.35	(_^)	5.80

Dreyfus

Dreyfus Stock Index Subaccount	10,189		8.20		84		0.49		0.35		(12.49	)

Dreyfus Socially Responsible Growth Subaccount .	2,190		6.72		15		0.10		0.35		(22.94	)

Fidelity Variable Insurance Products Funds

VIP Growth Subaccount	9,189		7.60		70		0.00		0.35		(18.02	)

VIP II Contrafund Subaccount	5,132		8.19		42		0.56		0.35		(12.69	)

VIP III Growth Opportunities Subaccount	2,459		7.38		18		0.17		0.35		(14.78	)

Janus Aspen Series

Aggressive Growth Subaccount	9,449		3.68		35		0.00		0.35		(39.67	)

Balanced Subaccount	3,671		9.57		35		3.12		0.35		(4.97	)

Capital Appreciation Subaccount	7,623		5.78		44		1.57		0.35		(22.00	)

Worldwide Growth Subaccount	10,066		6.69		67		0.64		0.35		(22.75	)

(_^)

Annualized

(_^_^)

Amounts round to less than one thousand

***

Represents the total return for the period indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the Expense Ratio. The Total Return does not include any expenses assessed through the redemption of Units; the Total Return would have been lower had such expenses been included in the calculation. Total returns for periods less than one year are not annualized.

F-61

MONY

Variable Account L

NOTES TO FINANCIAL STATEMENTS (continued)

5. Financial Highlights (continued)


		Current Annual Charge+
Mortality & Expense Risk Charge

Basic charges are assessed through reduction of unit values		0.35% to 0.75%

Sales Charge
It is a percentage of premium paid		0%-9.0%

Tax Charge
It is a percentage of premium paid

State and local		0.8%

Federal		1.25%-1.50%

Cost of Insurance Charge
Cost of Insurance rate times the net amount of risk at the beginning of the policy month. This charge is assessed through the redemption of units		Varies by gender, policy duration and underwriting class.

Administrative Charge—Monthly
Charge based on specific amount of the policy and is assessed through the redemption of units		$5-$31.50

Transfer Charge
A charge imposed on Contract holders who make transfers in excess of amount specified per contract and assessed through the redemption of units		$0

Partial Surrender Charge
To obtain a part of cash value of your policy without having to surrender the policy in full and assessed through the redemption of units		$10-$25

Sales Fund Charge

It is a percentage of premium paid		0%-75%

Monthly Expense Charge/Administrative Fund Charge

This charge is deducted during the specified years and is charged per $1,000 of the Specified Amount. This charge is assessed through redemption of unit values		Varies with insured’s age, gender, smoking status and Specified Amount.

Surrender charge

This charge is assessed against Fund Value and is imposed upon full surrender of the Policy. It is based on a factor per $1000 of Initial Specified Amount (or on an increase in specified amount). The factors per $1000 vary by issue age, gender and risk class.

Optional Insurance Benefits Charges

These are charges for optional riders elected and are determined in accordance with the specific terms of the relevant rider.

+	Higher charges may be permitted under the contract.

F-62

REPORT OF INDEPENDENT AUDITORS

To the Board of Directors and Shareholder of

MONY Life Insurance Company:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income and comprehensive income, statements of changes in shareholder’s equity and statements of cash flows present fairly, in all material respects, the financial position of MONY Life Insurance Company and Subsidiaries (the “Company”) at December 31, 2003 and 2002, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 4 to the consolidated financial statements, the Company changed its method of accounting for intangible and long-lived assets in 2002.

PricewaterhouseCoopers LLP

New York, New York

February 4, 2004, except for matters described as subsequent events in Note 18, to which the date is March 9, 2004.

F-63

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2003 and 2002


	2003		2002
	($ in millions)

ASSETS

Investments:

Fixed maturity securities available-for-sale, at fair value (Note 6)	$	8,396.3	$	7,828.2

Fixed maturity securities, trading (Note 6)		78.3		—

Equity securities available-for-sale, at fair value (Note 6)		251.7		247.7

Mortgage loans on real estate (Note 8)		1,782.4		1,877.4

Policy loans		1,180.0		1,212.5

Real estate to be disposed of		—		26.8

Real estate held for investment		174.1		180.2

Other invested assets		99.5		97.3


	$	11,962.3	$	11,470.1


Cash and cash equivalents		350.8		223.7

Accrued investment income		204.4		204.0

Amounts due from reinsurers		605.0		695.2

Deferred policy acquisition costs (Note 10)		1,325.4		1,226.4

Other assets		542.2		535.9

Separate account assets		4,854.9		4,140.6


Total assets	$	19,845.0	$	18,495.9


LIABILITIES AND SHAREHOLDERS’ EQUITY

Future policy benefits	$	8,041.5	$	7,949.9

Policyholders’ account balances		3,265.8		2,779.7

Other policyholders’ liabilities		268.0		289.2

Amounts due to reinsurers		71.7		67.7

Accounts payable and other liabilities		768.6		735.8

Long term debt (Note 16)		216.9		216.9

Current federal income taxes payable		142.4		106.1

Deferred federal income taxes		179.2		239.1

Separate account liabilities		4,851.9		4,137.6


Total liabilities	$	17,806.0	$	16,522.0


Commitments and contingencies (Note 18)

Common stock, $1.00 par value; 2.5 million shares authorized; 2.5 million shares issued and outstanding at December 31, 2003 and 2002, respectively		2.5		2.5

Capital in excess of par		1,796.7		1,753.6

Retained earnings		169.0		137.8

Accumulated other comprehensive income		70.8		80.0


Total shareholders’ equity		2,039.0		1,973.9


Total liabilities and shareholders’ equity	$	19,845.0	$	18,495.9

See accompanying notes to consolidated financial statements.

F-64

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Years Ended December 31, 2003, 2002, and 2001


	2003			2002			2001
	($ in millions)

Revenues:

Premiums	$	705.2		$	690.4		$	695.3

Universal life and investment-type product policy fees		210.9			200.5			207.2

Net investment income (Note 5)		724.2			725.4			676.9

Net realized gains/(losses) on investments (Note 5)		46.4			(151.1	)		(12.3	)

Group Pension Profits (Note 13)		—			82.3			30.7

Other income		226.6			169.3			189.1


		1,913.3			1,716.8			1,786.9


Benefits and expenses:

Benefits to policyholders		841.5			803.1			814.7

Interest credited to policyholders’ account balances		139.4			119.3			110.5

Amortization of deferred policy acquisition costs		120.0			156.1			158.8

Dividends to policyholders		224.3			188.0			236.6

Other operating costs and expenses		517.3			459.4			519.4


		1,842.5			1,725.9			1,840.0


Income/(loss) from continuing operations before income taxes		70.8			(9.1	)		(53.1	)

Income tax expense/(benefit)		20.5			(6.0	)		(19.1	)


Income/(loss) from continuing operations		50.3			(3.1	)		(34.0	)

Discontinued operations: income/(loss) from real estate to be disposed of, net of income tax expense/(benefit) of $3.1 million and ($1.4) million for the years ended December 31, 2003 and 2002, respectively.		5.9			(2.5	)		—


Net income/(loss)		56.2			(5.6	)		(34.0	)


Other comprehensive (loss)/income, net (Note 5)		(9.2	)		41.9			25.1

Comprehensive income/(loss)	$	47.0		$	36.3		$	(8.9	)

See accompanying notes to consolidated financial statements.

F-65

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY

Years Ended December 31, 2003, 2002, and 2001


	Common Stock		Capital In Excess of Par		Retained Earnings			Accumulated Other Comprehensive Income			Total Shareholders’ Equity
	($ in millions)

Balance, December 31, 2000	$	2.5	$	1,628.6	$	382.4		$	13.0		$	2,026.5

Dividends						(115.0	)					(115.0	)

Comprehensive income:

Net loss						(34.0	)					(34.0	)

Other comprehensive income:

Unrealized gains on investments, net of unrealized losses, reclassification adjustments, and taxes (Note 5)									36.6			36.6

Minimum pension liability adjustment									(11.5	)		(11.5	)


Other comprehensive income									25.1			25.1


Comprehensive Loss												(8.9	)


Balance, December 31, 2001	$	2.5	$	1,628.6	$	233.4		$	38.1		$	1,902.6

Dividends						(90.0	)					(90.0	)

Capital Contribution				125.0								125.0

Comprehensive income:

Net loss						(5.6	)					(5.6	)

Other comprehensive income:

Unrealized gains on investments, net of unrealized losses, reclassification adjustments, and taxes (Note 5)									43.8			43.8

Minimum pension liability adjustment									(1.9	)		(1.9	)


Other Comprehensive Income									41.9			41.9


Comprehensive Income												36.3


Balance, December 31, 2002	$	2.5	$	1,753.6	$	137.8		$	80.0		$	1,973.9

Unamortized restricted stock compensation				3.1								3.1

Dividends						(25.0	)					(25.0	)

Capital Contribution				40.0								40.0

Comprehensive income:

Net income						56.2						56.2

Other comprehensive income:

Unrealized losses on investments, net of unrealized gains, reclassification adjustments, and taxes (Note 5)									(10.4	)		(10.4	)

Minimum pension liability adjustment									1.2			1.2


Other Comprehensive Loss									(9.2	)		(9.2	)


Comprehensive income												47.0


Balance, December 31, 2003	$	2.5	$	1,796.7	$	169.0		$	70.8		$	2,039.0

See accompanying notes to consolidated financial statements.

F-66

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2003, 2002, and 2001


	2003			2002			2001
	($ in millions)

Cash flows from operating activities (Note 4):

Net income/(loss)	$	56.2		$	(5.6	)	$	(34.0	)

Adjustments to reconcile net income/(loss) income to net cash provided by operating activities:

Interest credited to policyholders’ account balances		119.7			103.1			92.0

Universal life and investment-type product policy fee income		(117.2	)		(112.4	)		(117.8	)

Capitalization of deferred policy acquisition costs		(233.7	)		(213.1	)		(194.5	)

Amortization of deferred policy acquisition costs		120.0			156.1			158.8

Provision for depreciation and amortization		35.7			36.5			64.9

Provision for deferred federal income taxes		(44.6	)		31.6			(6.4	)

Net realized losses (gains) on investments		(46.4	)		151.1			12.3

Non-cash distributions from investments		5.6			(14.9	)		52.9

Change in other assets and accounts payable and other liabilities		110.2			(142.2	)		(55.1	)

Change in future policy benefits		91.6			79.9			75.5

Change in other policyholders’ liabilities		(21.3	)		8.1			(14.8	)

Change in current federal income taxes payable		36.3			(3.0	)		(12.2	)

(Income)/loss on discontinued real estate operations		(9.0	)		3.9			—


Net cash provided by operating activities	$	103.1		$	79.1		$	21.6


Cash flows from investing activities:

Sales, maturities or repayments of:

Fixed maturity securities	$	1,864.8		$	1,161.3		$	1,275.7

Equity securities		50.2			11.1			39.9

Mortgage loans on real estate		538.8			423.2			341.6

Policy loans, net		32.6			16.4			35.7

Other invested assets		82.3			39.3			57.9

Acquisitions of investments:

Fixed maturity securities		(2,499.4	)		(1,722.7	)		(1,398.0	)

Equity securities		(42.3	)		(28.5	)		(51.4	)

Mortgage loans on real estate		(423.5	)		(503.4	)		(405.3	)

Property & equipment, net		(24.3	)		(25.5	)		(41.2	)

Other invested assets		(53.8	)		(18.5	)		(127.5	)


Net cash used in investing activities	$	(474.6	)	$	(647.3	)	$	(272.6	)

See accompanying notes to consolidated financial statements.

F-67

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

Years Ended December 31, 2003, 2002, and 2001


	2003			2002			2001
	($ in millions)

Cash flows from financing activities:

Repayments of debt	$	—		$	—		$	(0.1	)

Proceeds of demand note payable to affiliate		—			121.0			—

Repayment of demand note payable to affiliate		—			(121.0	)		—

Receipts from annuity and universal life policies credited to policyholders’ account balances		1,219.6			1,179.2			1,150.9

Return of policyholders’ account balances on annuity policies and universal life policies		(736.0	)		(727.3	)		(979.3	)

Capital contribution		40.0			125.0			—

Dividends paid to shareholder		(25.0	)		(90.0	)		(115.0	)

Net cash provided by financing activities		498.6			486.9			56.5


Net increase/(decrease) in cash and cash equivalents		127.1			(81.3	)		(194.5	)

Cash and cash equivalents, beginning of year		223.7			305.0			499.5


Cash and cash equivalents, end of year	$	350.8		$	223.7		$	305.0


Supplemental disclosure of cash flow information:

Cash paid during the period for:

Income taxes	$	30.6		$	(27.5	)	$	5.9

Interest	$	19.4		$	19.4		$	19.8

See accompanying notes to consolidated financial statements.

F-68

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Description of Business:

MONY Life Insurance Company (“MONY Life”) and its subsidiaries (MONY Life and its subsidiaries are collectively referred to herein as the “Company”), provide life insurance, annuities, corporate-owned and bank-owned life insurance (“COLI and BOLI”), mutual funds, securities brokerage, securities trading, business and estate planning and trust services. The Company distributes its products and services through Retail and Wholesale distribution channels. The Company’s Retail distribution channels are comprised of (i) the career agency sales force operated by MONY Life, and (ii) financial advisors and account executives of the Company’s securities broker dealer subsidiary. The Company’s Wholesale distribution channel is comprised of (i) MONY Partners, a division of MONY Life, (ii) independent third party insurance brokerage general agencies and securities broker dealers and (iii) its corporate marketing team which markets COLI and BOLI products. For the year ended December 31, 2003, Retail distribution accounted for approximately 17.6% and 42.6% of sales of protection and accumulation products, respectively, while Wholesale distribution accounted for 82.4% and 57.4% of sales of protection and accumulation products, respectively. The Company principally sells its products in all 50 of the United States, the District of Columbia, the U.S. Virgin Islands, Guam and the Commonwealth of Puerto Rico, and currently insures or provides other financial services to more than one million individuals.

MONY Life’s principal wholly owned direct and indirect operating subsidiaries include: (i) MONY Life Insurance Company of America (“MLOA”), an Arizona domiciled life insurance company, (ii) Enterprise Capital Management (“Enterprise”), a distributor of both proprietary and non-proprietary mutual funds, (iii) U.S. Financial Life Insurance Company (“USFL”), an Ohio domiciled insurer underwriting specialty risk life insurance business, (iv) MONY Securities Corporation (“MSC”), a registered securities broker-dealer and investment advisor whose products and services are distributed through MONY Life’s career agency sales force as well as through a network of accounting professionals, (v) MONY Brokerage, Inc. (“MBI”), a licensed insurance broker, which principally provides MONY Life’s career agency sales force with access to life, annuity, small group health, and specialty insurance products written by other insurance companies so they can meet the insurance and investment needs of their customers, (vi) MONY Consultoria e Corretagem de Seguros Ltda., a Brazilian domiciled insurance brokerage subsidiary, which principally provides insurance brokerage services to unaffiliated third party insurance companies in Brazil, (vii) MONY Bank & Trust Company of the Americas, Ltd. (“MBT”), a Cayman Islands bank and trust company, which provides investment and trust services to nationals of certain Latin American countries, and (viii) MONY Life Insurance Company of the Americas, Ltd. (“MLICA”), a Cayman Islands based insurance company, which provides life insurance and annuity products to nationals of certain Latin American countries.

On February 27, 2002, The MONY Group Inc. (“MONY Group”), MONY Life’s ultimate parent, formed MONY Holdings, LLC (“MONY Holdings”) as a downstream, wholly-owned holding company of the MONY Group. MONY Group formed MONY Holdings for the purpose of issuing debt tied to the performance of the Closed Block Business within MONY Life (see Note 21). On April 30, 2002, MONY Holdings commenced its operations and through a structured financing tied to the performance of the Closed Block Business within MONY Life, issued $300.0 million of floating rate insured debt securities (the “Insured Notes”) in a private placement. In addition, MONY Group, pursuant to the terms of the structured financing, transferred all of its ownership interest in MONY Life to MONY Holdings. Other than activities related to servicing the Insured Notes in accordance with the Insured Notes indenture and its ownership interest in MONY Life, MONY Holdings has no operations and engages in no other activities.

Proceeds to MONY Holdings from the issuance of the Insured Notes, after all offering and other related expenses, were approximately $292.6 million. Of this amount, $60.0 million was deposited in a debt service coverage account (the “DSCA”), pursuant to the terms of the note indenture, to provide collateral for the payment of interest and principal on the Insured Notes and the balance of approximately $232.6 million was distributed to MONY Group in the form of a dividend. The Insured Notes mature on January 21, 2017. The Insured Notes pay interest only through January 21, 2008 at which time principal payments will begin to be made pursuant to an amortization schedule. Interest on the Insured Notes is payable quarterly at an annual rate equal to three month LIBOR plus 0.55%. Concurrent with the issuance of the Insured Notes, MONY Holdings entered into an interest rate swap contract (the “Swap”), which locked in a fixed rate of interest on the Insured Notes at 6.44%. Including debt issuance costs of $7.4 million and the cost of the insurance policy (75 basis points per annum) (the “Insurance Policy”), which guarantees the scheduled principal and interest payments on the Insured Notes, the all-in cost of the indebtedness is 7.36%. See Note 22 for further information regarding the Insured Notes.

F-69

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. Proposed Merger with AXA Financial, Inc.:

On September 17, 2003, MONY Group entered into an Agreement and Plan of Merger with AXA Financial, Inc. (“AXA Financial”), and AIMA Acquisition Co. (“AIMA”), which was subsequently amended on February 22, 2004 (hereafter referred to collectively as the “AXA Agreement”), pursuant to which MONY Group will become a wholly owned subsidiary of AXA Financial in a cash transaction valued at approximately $1.5 billion. Under the terms of the AXA Agreement, which has been approved by the boards of directors of AXA Financial and MONY Group, MONY Group’s shareholders will receive $31.00 for each share of MONY Group’s common stock. The acquisition contemplated by the AXA Agreement is subject to various regulatory approvals and other customary conditions, including the approval of MONY Group’s shareholders. A special meeting of MONY Group’s shareholders is scheduled for May 18, 2004 to vote on the proposed acquisition of MONY Group by AXA Financial. The transaction is expected to close in the second quarter of 2004. See Note 18 for further information regarding the pending merger transaction.

The Company incurred merger related expenses totaling $0.8 million for the year ended December 31, 2003 in connection with MONY Group’s pending merger transaction with AXA Financial. These expenses are reflected under the caption “other operating costs and expenses” in the Company’s statement of income and comprehensive income.

3. The Closed Block:

On November 16, 1998, the Company, pursuant to the New York Insurance Law, established a closed block (the “Closed Block”) of certain participating insurance policies (the “Closed Block in force business”) as defined in its plan of demutualization (the “Plan”). In conjunction therewith, the Company allocated assets to the Closed Block that are expected to produce cash flows which, together with anticipated revenues from the Closed Block in force business, are expected to be sufficient to support the Closed Block in force business, including but not limited to the payment of claims and surrender benefits, certain expenses and taxes, and for the continuation of dividend scales in effect at the date of the Company’s demutualization (assuming the experience underlying such dividend scales continues), and for appropriate adjustments in such scales if the experience changes. To determine the amount of assets to allocate to the Closed Block in order to provide sufficient funding for the aforementioned payments, the Company forecasted the expected cash flows from the Closed Block in force business and mathematically determined the cash flows that would need to be provided from assets allocated to the Closed Block to fully fund the aforementioned payments. Assets were then allocated to the Closed Block accordingly. The aforementioned forecast consists of a cash flow projection for each year over the estimated life of the policies in the Closed Block. The earnings from such expected cash flows from the Closed Block in force business and the assets allocated to the Closed Block are referred to as the “glide path earnings”.

All the cash flows from the assets allocated to the Closed Block and the Closed Block in force business inure solely to the benefit of the owners of policies included in the Closed Block. The assets and liabilities allocated to the Closed Block at the date of its formation (November 16, 1998, which was the effective date of the Company’s demutualization) were recorded in the Company’s financial statements at their historical carrying values. The carrying value of the assets allocated to the Closed Block is less than the carrying value of the Closed Block liabilities at the effective date of the Company’s demutualization. The excess of the Closed Block liabilities over the Closed Block assets at the effective date of the Company’s demutualization represents the total estimated future post-tax contribution expected to emerge from the operation of the Closed Block, which will be recognized in the Company’s income over the period the policies and the contracts in the Closed Block remain in force.

To the extent that the actual cash flows, subsequent to the effective date of the Company’s demutualization, from the assets allocated to the Closed Block and the Closed Block in force business are, in the aggregate, more favorable than assumed in establishing the Closed Block, total dividends paid to the Closed Block policyholders in future years will be greater than the total dividends that would have been paid to such policyholders if dividend scales used to determine Closed Block cash flows had been continued. Conversely, to the extent that the actual cash flows, subsequent to the effective date of the Company’s demutualization, from the assets allocated to the Closed Block and the Closed Block in force business are, in the aggregate, less favorable than assumed in establishing the Closed Block, total dividends paid to the Closed Block policyholders in future years will be less than the total dividends that would have been paid to such policyholders if dividend scales used to determine Closed Block cash flows

F-70

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

3. The Closed Block: (continued)

had been continued. Accordingly, the recognition of the estimated ultimate aggregate future post-tax contribution expected to emerge from the operation of the Closed Block is not affected by the ultimate aggregate actual experience of the Closed Block assets and the Closed Block in force business subsequent to the effective date of the Company’s demutualization, except in the event that the actual experience of the Closed Block assets and the Closed Block in force business subsequent to the effective date of the Company’s demutualization is not sufficient to pay the guaranteed benefits on the policies in the Closed Block, in which case the Company will be required to fund any such deficiency from its general account assets outside of the Closed Block.

However, because the decision to increase or decrease dividend scales is based on revised estimates as to the ultimate profitability of the Closed Block such actions will not necessarily coincide with periodic reports of the results of the Closed Block. Accordingly, actual earnings that emerge from the Closed Block may either be more or less than the expected Closed Block earnings (or “glide path earnings”). In accordance with American Institute of Certified Public Accountants (“AICPA”) Statement of Position 00-3 “Accounting by Insurance Enterprises for Demutualizations and Formations of Mutual Insurance Holding Companies and for Certain Long-Duration Participating Contracts”, actual Closed Block earnings in excess of expected Closed Block earnings (or the “glide path earnings”) in any period are recorded as an additional liability to Closed Block policyholders (referred to as the “deferred dividend liability”) because such excess earnings inure solely to the benefit of the policyholders in the Closed Block. If actual Closed Block earnings are less than expected Closed Block earnings (or the “glide path earnings”) in any period the difference is charged against the balance of any existing deferred dividend liability. If the deferred dividend liability is not sufficient to absorb the difference, any such remaining amount, not absorbed, will remain in earnings for the period and an adjustment will be made to get back on the glide path when earnings emerge in future periods that are sufficient to offset such remaining accumulated difference or through a subsequent reduction in dividend scales. As of December 31, 2003 and 2002, the deferred dividend liability was $65.7 million and $33.2 million, respectively.

Since the Closed Block has been funded to provide for payment of guaranteed benefits and the continuation of current payable dividends on the policies included therein, it will not be necessary to use general funds to pay guaranteed benefits unless the in force business in the Closed Block experiences very substantial ongoing adverse experience in investment, mortality, persistency or other experience factors. The Company regularly (at least quarterly) monitors the experience from the Closed Block and may make changes to the dividend scale, when appropriate, to ensure that the profits are distributed to the Closed Block policyholders in a fair and equitable manner. In addition, annually the New York Insurance Department requires the filing of an independent auditor’s report on the operations of the Closed Block.

4. Summary of Significant Accounting Policies:

Basis of Presentation —

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. The most significant estimates made in conjunction with the preparation of the Company’s financial statements include those used in determining (i) deferred policy acquisition costs, (ii) the liability for future policy benefits, (iii) valuation allowances for mortgage loans and charges for the impairment of invested assets, (iv) pension costs, (v) costs associated with contingencies, (vi) litigation and restructuring charges and (vii) income taxes. Certain reclassifications have been made in the amounts presented for prior years to conform those years to the current year’s presentation.

Principles of Consolidation —

The accompanying consolidated financial statements include the accounts of MONY Life and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

F-71

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

Valuation of Investments and Realized Gains and Losses —

The Company’s fixed maturity securities are classified as available-for-sale and trading and are reported at estimated fair value. The Company’s equity securities are comprised of investments in common stocks and venture capital limited partnerships. The Company’s investments in common stocks are classified as available-for-sale and are reported at estimated fair value. The Company’s investments in venture capital limited partnerships are accounted for in accordance with the equity method of accounting or at estimated fair value (with changes in fair value recorded in other comprehensive income) depending upon the Company’s percentage ownership of the partnership and the date it was acquired. In general, partnership interests acquired after May 18, 1995 are accounted for in accordance with the equity method of accounting if the Company’s ownership interest in the partnership exceeds three percent, whereas, if the partnership was acquired prior to May 18, 1995, the equity method would be applied only if the Company’s ownership interest is 20 percent or greater. In the unlikely event that the Company’s ownership interest in a partnership exceeded 50 percent the partnership would be consolidated. In all other circumstances, the Company accounts for its investments in venture capital limited partnerships at estimated fair value. Because the underlying partnerships are required under GAAP to mark their investment portfolios to market and report changes in such market value through their earnings, the Company’s earnings will reflect its pro rata share of such mark to market adjustment if it accounts for the partnership investment under the equity method. With respect to partnerships accounted for at fair value, there will be no impact on the Company’s earnings until: (i) the underlying investments held by the partnership are distributed to the Company, or (ii) the underlying investments held by the partnership are sold by the partnership and the proceeds distributed to the Company, or (iii) an impairment of the Company’s investment in the partnership is determined to exist. Unrealized gains and losses on fixed maturity securities available-for-sale and common stocks are reported as a separate component of other comprehensive income, net of deferred income taxes and an adjustment for the effect on deferred policy acquisition costs that would have occurred if such gains and losses had been realized. Unrealized gains and losses on fixed maturity securities classified as trading securities are reflected in current period earnings. The cost of all fixed maturity securities and common stock is adjusted for impairments in value deemed to be other than temporary. Fixed maturity securities deemed to be other than temporarily impaired are analyzed to assess whether such investments should be placed on non-accrual status. A fixed maturity security would be placed on non-accrual status when management believes it will not receive all principal and interest payments according to the original terms. Any cash received on non-accrual status securities is applied against the outstanding principal. These adjustments are reflected as realized losses on investments. Realized gains and losses on sales of investments are determined on the basis of specific identification.

Mortgage loans on real estate are stated at their unpaid principal balances, net of valuation allowances. Valuation allowances are established for the excess of the carrying value of a mortgage loan over its estimated fair value when the loan is considered to be impaired. Mortgage loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Estimated fair value is based on either the present value of expected future cash flows discounted at the loan’s original effective interest rate, or the loan’s observable market price (if considered to be a practical expedient), or the fair value of the collateral if the loan is collateral dependent and if foreclosure of the loan is considered probable. The provision for loss is reported as a realized loss on investment. Loans in foreclosure and loans considered to be impaired, other than restructured loans, are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in investment income in the period received. Interest income on restructured mortgage loans is accrued at the restructured loans’ respective interest rates.

Real estate held for investment, as well as related improvements, is generally stated at cost less depreciation. Depreciation is determined using the straight-line method over the estimated useful life of the asset, which may range from 5 to 40 years. Cost is adjusted for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment losses are based on the estimated fair value of the real estate, which is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Impairment losses on real estate held for investment are reported as realized losses on investments.

F-72

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

Real estate investments meeting the following criteria are classified as “real estate to be disposed of” in the Company’s consolidated balance sheet and the results therefrom are reported as “discontinued operations” in the Company’s consolidated statement of income and comprehensive income as a result of the Company’s adoption in 2002 of Financial Accounting Standard Board’s (“FASB”) Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS 144”):

•

Management, having the authority to approve the action, commits the organization to a plan to sell the property;

•

The property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;

•

An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated and are continuing;

•

The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year;

•

The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

•

Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Real estate to be disposed of is carried at the lower of its carrying value at the time of classification as “to be disposed of” or fair value less estimated selling costs.

Policy loans are carried at their unpaid principal balances.

Cash and cash equivalents include cash on hand, amounts due from banks and highly liquid debt instruments with an original maturity of three months or less.

Collateralized Financing Transactions —

Securities loaned and borrowed are accounted for as collateralized financing transactions and are recorded at the amount of cash collateral received or advanced. The fee received or paid by the Company is recorded as interest revenue or expense and is reflected in other income and other operating costs and expenses, respectively, in the consolidated statement of income and comprehensive income. The initial collateral advanced or received has a higher market value than the underlying securities. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary.

The Company utilizes short-term repurchase agreements as supplementary short-term financing and delivers U.S. Treasury securities as collateral for cash received. These repurchase agreements are accounted for as collateralized financings. The fee paid by the Company is recorded as interest. The Company monitors the market value of securities transferred on a daily basis, and provides additional collateral as necessary.

Recognition of Insurance Revenue and Related Benefits —

Premiums from participating and non-participating traditional life, health and annuity policies with life contingencies are recognized as premium income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of policy acquisition costs.

F-73

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

Premiums from universal life and investment-type contracts are reported as deposits to policyholders’ account balances. Revenue from these types of products consists of amounts assessed during the period against policyholders’ account balances for policy administration charges, cost of insurance and surrender charges, and mortality and expense charges on variable contracts. Policy benefits charged to expense include benefit claims incurred in the period in excess of the related policyholders’ account balance.

Commissions —

The Company earns commissions from clients for execution of securities, mutual funds, and insurance transactions. Commission income and related expenses are recorded on a trade-date basis.

Deferred Sales Commissions —

The Company, through Enterprise, sells Class B and C shares, which are subject to a contingent deferred sales charge (“CDSC”). At the time of sale, the Company pays commissions to brokers and dealers for sales of Enterprise Group of Funds Class B and C shares. Class B commissions paid are deferred and amortized on the lesser of six years straight-line, or the period during which related distribution and CDSC revenues are earned. The Company evaluates recoverability through ongoing estimates of future revenues from Class B shares. Class C share commissions are expensed when paid.

Deferred Policy Acquisition Costs (“DPAC”) —

The costs of acquiring new business, principally commissions, underwriting, agency, and policy issue expenses, all of which vary with and are primarily related to the production of new insurance business, are deferred.

For participating traditional life policies, DPAC is amortized over the expected life of the contracts (30 years) as a constant percentage based on the present value of estimated gross margins expected to be realized over the life of the contracts using discount rates that grade down from 7.22% in 2004 to 6.97% in the year 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends.

For universal life products and investment-type products, DPAC is amortized over the expected life of the contracts (ranging from 15 to 30 years) as a constant percentage based on the present value of estimated gross profits expected to be realized over the life of the contracts using the initial locked in discount rate. For non-participating term policies, DPAC is amortized over the expected life of the contracts (ranging from 10 to 20 years) in proportion to premium revenue recognized. The discount rate for all products is 8.0%. Estimated gross profits arise principally from investment results, mortality and expense margins and surrender charges.

The Company conducts programs from time-to-time that allow annuity contract holders to exchange older annuity contracts for new annuity products sold at no cost. The Company has determined that the old and new products are substantially similar and, as such, the Company retains previously recorded DPAC related to the exchanged contract.

DPAC is subject to recoverability testing at the time of policy issuance and loss recognition testing at the end of each accounting period. The effect on the amortization of DPAC of revisions in estimated experience is reflected in earnings in the period such estimates are revised. In addition, the effect on the DPAC asset that would result from the realization of unrealized gains (losses) is recognized through an offset to other comprehensive income as of the balance sheet date.

Future Policy Benefits and Policyholders’ Account Balances —

Future policy benefit liabilities for participating traditional life policies are calculated using a net level premium method on the basis of actuarial assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Dividend fund interest assumptions range from 2.0% to 5.5%.

F-74

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

Policyholders’ account balances for universal life and investment-type contracts represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. The weighted average interest crediting rate for universal life products was approximately 5.5%, 5.6% and 5.9% for the years ended December 31, 2003, 2002, and 2001, respectively. The weighted average interest crediting rate for investment-type products was approximately 4.2%, 4.3% and 4.5% for the years ended December 31, 2003, 2002, and 2001, respectively.

Dividends to Policyholders —

Dividends to policyholders reflected on the consolidated statement of income and comprehensive income is comprised of policyholder dividends payable in the current year and the change in the deferred dividend liability. Dividends payable to policyholders are determined annually by the board of directors of MONY Life. All but a de minimus amount of dividends paid to policyholders are on policies in the Closed Block. Refer to Note 3 for a more detailed explanation of policyholder dividends, as well as the deferred dividend liability. The change in the deferred dividend liability recognized in the consolidated statement of income and comprehensive income was $23.7 million, $(14.6) million and $21.2 million for the years ended December 31, 2003, 2002, and 2001, respectively.

Participating Business —

At December 31, 2003 and 2002, participating business, substantially all of which is in the Closed Block, represented approximately 28.7% and 34.0% of the Company’s life insurance in force, and 70.2% and 73.7% of the number of life insurance policies in force, respectively. For each of the years ended December 31, 2003, 2002, and 2001, participating business represented approximately 79.0%, 82.5%, and 83.5%, respectively, of life insurance premiums.

Stock-Based Compensation —

FASB Statement No. 123, Accounting for Stock-Based Compensation (“SFAS 123”), issued in October 1995, prescribes accounting and reporting standards for employee stock-based compensation plans, as well as transactions in which an entity issues equity instruments to acquire goods or services from non-employees. However, for employee stock based compensation plans, SFAS 123 permits companies, at their election, to continue to apply the accounting prescribed by Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (“APB 25”), which was issued and effective since 1972. SFAS 123 provides no similar election with respect to transactions in which an entity issues equity instruments to acquire goods or services from non-employees. For companies electing to apply the accounting prescribed by APB 25 to their employee stock-based compensation plans, SFAS 123 requires that pro forma disclosure be made of net income and earnings per share as if the fair value accounting prescribed by SFAS 123 had been adopted. The Company elected to apply the accounting prescribed by APB 25 to option grants to employees and, accordingly, make the aforementioned pro forma disclosures. Based on the definition of an “employee” prescribed in the Internal Revenue Code, the Company’s career financial professionals do not qualify as employees. See Note 23 for further discussion of the Company’s stock based compensation plans.

The following table reflects the effect on the Company’s net income as if the accounting prescribed by SFAS 123 had been applied to the options granted to employees and outstanding as at December 31, 2003, 2002 and 2001:


	For the Years Ended December 31
	2003			2002			2001
	($ in millions)

Net income/(loss), as reported	$	56.2		$	(5.6	)	$	(34.0	)

Less: Total stock-based employee compensation determined under the fair value method of accounting, net of tax		(5.4	)		(5.2	)		(4.3	)


Pro forma net income/(loss)	$	50.8		$	(10.8	)	$	(38.3	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

The fair value of each option outstanding is estimated using the Black-Scholes option pricing model with the following assumptions: exercise prices ranging from $20.90 to $44.25, dividend yields ranging from 1.02% to 2.37%, expected volatility ranging from 23.5% to 44.4%, and a range of interest rates from 3.3% to 6.7%. The fair value of options determined using the Black-Scholes pricing model ranged from $6.30 to $18.92 per share at December 31, 2003.

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s employee and career financial professional options have characteristics different than those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options.

Federal Income Taxes —

The Company files a consolidated federal income tax return with its ultimate parent, the MONY Group and its other subsidiaries, as well as the Company’s life and non-life affiliates except Sagamore Financial Corporation, the parent holding company of USFL. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws.

Reinsurance —

The Company has reinsured certain of its life insurance and investment contracts with other insurance companies under various agreements. Amounts due from reinsurers are estimated based on assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Policy and contract liabilities are reported gross of reinsurance reserve credits. Gains on reinsurance are deferred and amortized into income over the remaining life of the underlying reinsured contracts.

In determining whether a reinsurance contract qualifies for reinsurance accounting, SFAS No. 113 “Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts” requires that there be a “reasonable possibility” that the reinsurer may realize a “significant loss” from assuming insurance risk under the contract. In making this assessment, the Company projects the results of the policies reinsured under the contract under various scenarios and assesses the probability of such results actually occurring. The projected results represent the present value of all the cash flows under the reinsurance contract. The Company generally defines a “reasonable possibility” as having a probability of at least 10%. In assessing whether the projected results of the reinsured business constitute a “significant loss”, the Company considers: (i) the ratio of the aggregate projected loss, discounted at an appropriate rate of interest (the “aggregate projected loss”), to an estimate of the reinsurer’s investment in the contract, as hereafter defined, and (ii) the ratio of the aggregate projected loss to an estimate of the total premiums to be received by the reinsurer under the contract discounted at an appropriate rate of interest.

The reinsurer’s investment in a reinsurance contract consists of amounts paid to the ceding company at the inception of the contract (e.g. expense allowances and the excess of liabilities assumed by the reinsurer over the assets transferred to the reinsurer under the contract) plus the amount of capital required to support such business consistent with prudent business practices, regulatory requirements, and the reinsurer’s credit rating. The Company estimates the capital required to support such business based on what it considers to be an appropriate level of risk-based capital in light of regulatory requirements and prudent business practices.

Separate Accounts —

Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent that the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

value of such assets exceeds the separate account liabilities. Investments held in separate accounts and liabilities of the separate accounts are reported separately as assets and liabilities. Substantially all separate account assets are reported at estimated fair value. Investment income and gains or losses on the investments of separate accounts accrue directly to contract holders and, accordingly, are not reflected in the Company’s consolidated statements of income and comprehensive income and cash flows. Fees charged to the separate accounts by the Company (including mortality charges, policy administration fees and surrender charges) are reflected in the Company’s revenues.

Consolidated Statements of Cash Flows — Non-cash Transactions —

For the years ended December 31, 2003, 2002, and 2001, respectively, real estate of $0.0 million, $12.0 million, and $18.0 million was acquired in satisfaction of debt. At December 31, 2003 and 2002, the Company owned real estate acquired in satisfaction of debt of $28.2 million and $33.1 million, respectively. Other non-cash transactions, which are reflected in the statement of cash flows as a reconciling item from net income to net cash provided by operating activities, consisted primarily of stock distributions from the Company’s partnership investments and payment-in-kind for interest due on certain fixed maturity securities.

New Accounting Pronouncements Adopted as of December 31, 2003 —

On January 1, 2001 the Company adopted SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (“SFAS 133”). SFAS 133 requires all derivatives to be recognized in the statement of financial position as either assets or liabilities and measured at fair value. The corresponding derivative gains and losses are reported based on the hedge relationship that exists, if there is one. Changes in the fair value of derivatives that are not designated as hedges or that do not meet the hedge accounting criteria in SFAS 133, are required to be reported in earnings. The Company’s use of derivative instruments is not significant and accordingly, adoption of the standard did not have a material effect on the Company’s results of operations or financial position.

On January 1, 2001 the Company adopted SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, a replacement of SFAS No. 125 (“SFAS 140”). SFAS No. 140 specifies the accounting and reporting requirements for securitizations and other transfers of financial assets and collateral, recognition and measurement of servicing assets and liabilities, and the extinguishment of liabilities. Adoption of the new requirements did not have a material effect on the Company’s results of operations or financial position.

Effective July 1, 2001, the Company adopted SFAS No. 141, Business Combinations (“SFAS 141”). SFAS 141 addresses the financial accounting and reporting for all business combinations. This statement requires that all business combinations be accounted for under the purchase method of accounting, abolishes the use of the pooling-of-interest method, requires separate recognition of intangible assets that can be identified and named, and expands required disclosures. All of the Company’s past business combinations have been accounted for under the purchase accounting method. The provisions of this statement apply to all business combinations initiated after June 30, 2001. The adoption of SFAS 141 did not have a material effect on the Company’s results of operations or financial position.

On January 1, 2002, the Company adopted SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS 142”). SFAS 142 provides that goodwill and intangible assets that have indefinite useful lives will not be amortized but rather will be tested at least annually for impairment. This Statement provides specific guidance for testing the impairment of goodwill and intangible assets. As a result of adopting this standard, the Company no longer recognizes goodwill amortization of approximately $1.3 million on an annualized basis. In addition, since the adoption of this standard, based on the Company’s estimate of its reporting units, the Company has determined that none of its goodwill is impaired (see Note 24).

On January 1, 2002, the Company adopted SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (“SFAS 144”). This statement establishes a single accounting model for the impairment or disposal of long-lived assets, including

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

assets to be held and used, assets to be disposed of by other than sale, and assets to be disposed of by sale. SFAS 144 retains many of the same provisions as SFAS 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of (“SFAS 121”). In addition to retaining the SFAS 121 requirements, SFAS 144 requires companies to present the results of operations of components of the entity that are held for sale as discontinued operations in the consolidated statement of income and comprehensive income. The Company had real estate that meets the definition of a component of the entity. Substantially all of the Company’s real estate to be disposed of resulted from disposal activities initiated prior to the effective date of SFAS 144. The carrying value of real estate to be disposed of at December 31, 2003 and 2002 was $0.0 million and $26.8 million, respectively. The Company’s pretax income/(loss) from real estate to be disposed of for the years ended December 31, 2003 and 2002, which is reported in the Company’s consolidated statement of income and comprehensive income as a discontinued operation, was $9.0 million and $(3.9) million, respectively.

In December 2002, the FASB issued SFAS No. 148 Accounting for Stock-Based Compensation — Transition and Disclosure and amendment of FASB Statement No. 123 (“SFAS 148”). This Statement amends SFAS 123, to provide alternative methods of transition for an entity that voluntarily changes to the fair value based method of accounting for stock-based employee compensation. It also amends the disclosure provisions of that Statement to require prominent disclosure about the effects on reported net income of an entity’s accounting policy decisions with respect to stock-based employee compensation. Finally, SFAS 148 amends APB Opinion No. 28, Interim Financial Reporting, to require disclosure about those effects in interim financial information. The disclosure provisions for SFAS 148 were effective for interim periods beginning after December 15, 2002. The transition provisions of SFAS 148 were effective for financial statements for fiscal years ending after December 31, 2002. As of December 31, 2003, the Company has not adopted the fair value based method of accounting for stock based compensation.

In April 2003, the FASB issued SFAS 133 Implementation Issue B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments (“DIG B36”). DIG B36 addresses the need to separately account for an embedded derivative within a reinsurer’s receivable and ceding company’s payable arising from modified coinsurance or similar arrangements. Paragraph 12(a) of SFAS 133 indicates that an embedded derivative must be separated from the host contract (“bifurcated”) if the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract. DIG B36 concludes that bifurcation is necessary in a modified coinsurance arrangement because the yield on the receivable and payable is based on a specified proportion of the ceding company’s return on either its general account assets or a specified block of those assets, rather than the overall creditworthiness of the ceding company. The effective date of implementation was the first day of the first fiscal quarter beginning after September 15, 2003, with earlier application as of the beginning of a fiscal quarter permitted. The adoption of DIG B36 did not have a material impact on the Company’s results of operations and financial position.

In May 2003, the FASB issued SFAS No. 150 Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity (“SFAS 150”). SFAS 150 changes the accounting for certain financial instruments that, under previous guidance, could be classified as equity or “mezzanine” equity, by now requiring those instruments to be classified as liabilities (or assets in some circumstances) in the statement of financial position. Further, SFAS 150 requires disclosure regarding the terms of those instruments and settlement alternatives. SFAS 150 affects an entity’s classification of the following free-standing instruments: (i) mandatory redeemable instruments, (ii) financial instruments to repurchase an entity’s own equity instruments, and (iii) financial instruments embodying obligations that the issuer must or could choose to settle by issuing a variable number of its shares or other equity instruments based solely on (a) a fixed monetary amount known at inception or (b) something other than changes in its own equity instruments. SFAS 150 does not apply to features embedded in a financial instrument that is not a derivative in its entirety. The guidance in SFAS 150 was generally effective for all financial instruments entered into or modified after May 31, 2003, and was otherwise effective at the beginning of the first interim period beginning after June 15, 2003. The adoption of SFAS 150 did not have a material impact on the Company’s results of operations and financial position.

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

In October 2003, the FASB finalized the proposed FASB Staff Position 46-e Effective Date of Interpretation 46 (“FIN 46”), for Certain Interests Held by a Public Entity (“Staff Position 46-e”). Staff Position 46-e defers the latest date by which all public entities must apply SFAS Interpretation No. 46 Consolidation of Variable Interest Entities (“Interpretation 46”), to the first reporting period ending after December 15, 2003. Interpretation 46 represents an interpretation of Accounting Research Bulletin No. 51, Consolidated Financial Statements (“ARB 51”). ARB 51 requires that a company’s consolidated financial statements include subsidiaries in which the company has a majority voting interest. However, the voting interest approach is not effective in identifying controlling financial interests in entities (referred to as “variable interest entities”) that are not controllable through voting interests or in which the equity investors do not bear the residual economic risks. Interpretation 46 provides guidance on identifying variable interest entities and on assessing whether a company’s investment in a variable interest entity requires consolidation thereof. Interpretation 46 was initially effective in January 2003 for investments made in variable interest entities after January 31, 2003 and it was effective in the first fiscal year or interim period beginning after June 15, 2003 for investments in variable interest entities made prior to February 1, 2003. The deferral applied to all variable interest entities and potential variable interest entities, both financial and non-financial in nature. Variable interest entities that were previously consolidated in issued financial statements under Interpretation 46 were not unconsolidated. The adoption of Interpretation 46 did not have a material impact on the Company’s results of operations and financial position.

In December 2003, the FASB issued SFAS No. 132 (revised 2003) Employers’ Disclosures about Pensions and Other Postretirement Benefits (“SFAS 132–2003”). SFAS 132-2003 improves the financial statement disclosures for defined benefit plans contained in SFAS No. 132 Employers’ Disclosures about Pensions and Other Postretirement Benefits (“SFAS 132”), which it replaces, and requires additional disclosures about the assets, obligations, cash flows, and net periodic benefit cost of defined benefit pension plans and other defined benefit postretirement plans. The additional disclosures include information describing the types of plan assets, investment strategy, measurement date(s), plan obligations, cash flows, and components of net periodic benefit cost recognized during interim periods. SFAS 132-2003 does not change the measurement or recognition of pension plans and other postretirement benefit plans required by SFAS 87 Employers’ Accounting for Pensions, SFAS 88 Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits and SFAS 106 Employers’ Accounting for Postretirement Benefits Other Than Pensions. The disclosure provisions for SFAS 132-2003 are effective for financial statements with fiscal years ending after December 15, 2003.

New Accounting Pronouncements Not Yet Adopted as of December 31, 2003 —

In July 2003 the American Institute of Certified Public Accountants issued Statement of Position 03-1 Accounting and Reporting by Insurance Enterprises for Certain Non-Traditional Long-Duration Contracts and for Separate Accounts (“SOP 03-1”). SOP 03-1 provides guidance relating to (i) separate account presentation, (ii) accounting for an insurance enterprise’s interest in separate accounts, (iii) gains and losses on the transfer of assets from the general account, (iv) liability valuation, (v) return based on a contractually referenced pool of assets or index, (vi) determining the significance of mortality and morbidity risk and classification of contracts that contain death or other insurance benefit features, (vii) accounting for contracts that contain death or other insurance benefit features, (viii) accounting for reinsurance and other similar contracts, (ix) accounting for annuitization benefits, (x) sales inducements to contract holders, and (xi) disclosures in the financial statements of an insurance enterprise regarding (a) separate account assets and liabilities, (b) the insurance enterprise’s accounting policy for sales inducements, and (c) the nature of the liabilities and methods and assumptions used in estimating any contract benefits recognized in excess of the account balance. SOP 03-1 is effective for financial statements for fiscal years beginning after December 15, 2003, with earlier adoption encouraged. The adoption of SOP 03-1 will result in the Company having to establish an additional liability for Guaranteed Minimum Death Benefits of approximately $0.8 million at January 1, 2004. This increase in reserves will be partially offset by a decrease in DPAC amortization due to lower profit margins as a result of the increased reserves. The adoption of SOP 03-1 is not expected to have any other material impact on the Company’s results of operations and financial position.

In December 2003, the FASB issued SFAS Interpretation No. 46-Revised Consolidation of Variable Interest Entities (“Interpretation 46R”), which incorporates a number of modifications and changes to Interpretation 46 (see — New Accounting

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Summary of Significant Accounting Policies: (continued)

Pronouncements Adopted as of December 31, 2003, above). Interpretation 46R clarifies some of the requirements of Interpretation 46, eases some of its implementation problems, and adds new scope exceptions and applicability judgments. Interpretation 46R is effective for reporting periods ending after December 15, 2003 for investments in variable interest entities considered to be special-purpose entities. The implementation of Interpretation 46R for all other investments in variable interest entities is required for reporting periods ending after March 15, 2004, with early adoption permitted. The adoption of FIN 46R is not expected to have a material impact on the Company’s results of operations and financial position.

5. Investment Income, Realized and Unrealized Investment Gains/(Losses), and Comprehensive Income:

Net investment income for the years ended December 31, 2003, 2002, and 2001 was derived from the following sources:


	2003		2002		2001
	($ in millions)

Net Investment Income

Fixed maturity securities	$	498.9	$	486.7	$	484.4

Equity securities		12.7		7.8		(33.9	)

Mortgage loans		143.4		138.9		139.8

Other investments (including cash and short-term)		104.2		126.3		132.7


Total investment income		759.2		759.7		723.0

Investment expenses		35.0		34.3		46.1


Net investment income	$	724.2	$	725.4	$	676.9

Net realized gains/(losses) on investments for the years ended December 31, 2003, 2002, and 2001 are summarized as follows:


	2003			2002			2001
	($ in millions)

Net Realized Gains (Losses) on Investments

Fixed maturity securities	$	50.0		$	(79.5	)	$	(2.6	)

Equity securities		(9.1	)		(38.7	)		(7.8	)

Mortgage loans		18.6			(3.0	)		9.3

Other invested assets		(13.1	)		(29.9	)		(11.2	)


Net realized gains/(losses) on investments	$	46.4		$	(151.1	)	$	(12.3	)

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Investment Income, Realized and Unrealized Investment Gains/(Losses), and Comprehensive Income: (continued)

Following is a summary of the change in unrealized investment gains/(losses), net of related deferred income taxes and the adjustment for DPAC (see Note 10), which are reflected in accumulated other comprehensive income for the periods presented. The net change in unrealized investment gains/(losses) and the change in the Company’s minimum pension liability represent the only components of other comprehensive income for the years ended December 31, 2003, 2002, and 2001 as presented below:


	2003			2002			2001
	($ in millions)

Other Comprehensive Income

Change in unrealized gains/(losses):

Fixed maturity securities	$	(43.2	)	$	360.5		$	156.7

Equity securities		14.9			2.2			(3.4	)

Interest rate swap		(2.8	)		12.4			—

Other		0.7			—			—


Subtotal		(30.4	)		362.7			153.3

AEGON Portfolio (See Note 13)		—			(29.3	)		31.0


Subtotal		(30.4	)		333.4			184.3

Effect on unrealized gains/(losses) on investments attributable to:

DPAC		(12.2	)		(67.4	)		(30.3	)

Deferred federal income taxes		15.2			(92.4	)		(48.2	)

Net unrealized gains/(losses) and DPAC transferred to the Closed Block		17.0			(129.8	)		(69.2	)


Change in unrealized gains/(losses) on investments, net		(10.4	)		43.8			36.6

Minimum pension liability adjustment		1.2			(1.9	)		(11.5	)


Other comprehensive income/(loss)	$	(9.2	)	$	41.9		$	25.1

The following table sets forth the reclassification adjustments required for the years ended December 31, 2003, 2002, and 2001 to avoid double-counting in comprehensive income items that are included as part of net income for a period that also had been part of other comprehensive income in earlier periods:


	2003			2002			2001
	($ in millions)

Reclassification Adjustments

Unrealized gains/(losses) on investments	$	(21.2	)	$	83.7		$	34.6

Reclassification adjustment for gains included in net income		10.8			(39.9	)		2.0


Unrealized gains/(losses) on investments, net of reclassification adjustments	$	(10.4	)	$	43.8		$	36.6

Unrealized gains/(losses) on investments, excluding net unrealized gains/(losses) on assets allocated to the Closed Block, reported in the above table for the years ended December 31, 2003, 2002, and 2001 are net of income tax (benefit)/expense of $(21.6) million, $115.0 million and $43.2 million, respectively, and $9.1 million, $(71.4) million and $(32.1) million, respectively, relating to the effect of such unrealized gains/(losses) on DPAC.

Reclassification adjustments, excluding net unrealized gains/(losses) on assets allocated to the Closed Block, reported in the above table for the years ended December 31, 2003, 2002, and 2001 are net of income tax expense (benefit) of $6.5 million, $(22.5) million and $5.1 million, respectively, and $(3.1) million, $4.1 million and $1.8 million, respectively, relating to the effect of such amounts on DPAC.

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Fixed Maturity and Equity Securities:

Fixed Maturity Securities —

The following table presents the amortized cost, gross unrealized gains and losses, and estimated fair value of fixed maturity securities, including amounts relating to certain invested assets held pursuant to a reinsurance arrangement whereby all the experience from such assets is passed to the reinsurer, as of December 31, 2003 and 2002.


	Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
	2003		2002		2003		2002		2003		2002		2003		2002
	($ in millions)

U.S. Treasury securities and Obligations of U.S. Government agencies	$	1,622.6	$	847.2	$	41.2	$	66.7	$	17.9	$	0.2	$	1,645.9	$	913.7

Collateralized mortgage obligations:

Government agency-backed		95.2		169.3		1.8		8.4		0.4		—		96.6		177.7

Non-agency backed		6.5		92.8		0.2		3.4		—		—		6.7		96.2

Other asset-backed securities:

Government agency-backed		6.7		121.9		0.4		5.9		—		—		7.1		127.8

Non-agency backed		314.8		582.1		24.2		34.7		1.5		4.6		337.5		612.2

Foreign governments		52.3		42.5		6.6		6.1		0.2		0.3		58.7		48.3

Utilities		526.5		546.1		39.6		37.1		1.8		7.2		564.3		576.0

Corporate bonds		5,341.6		4,871.4		397.5		385.1		22.5		30.7		5,716.6		5,225.8


Total bonds		7,966.2		7,273.3		511.5		547.4		44.3		43.0		8,433.4		7,777.7

Redeemable preferred stocks		37.0		47.0		4.2		3.5		—		—		41.2		50.5


Total	$	8,003.2	$	7,320.3	$	515.7	$	550.9	$	44.3	$	43.0	$	8,474.6	$	7,828.2

The carrying value of the Company’s fixed maturity securities at December 31, 2003 and 2002 is net of adjustments for impairments in value deemed to be other than temporary of $113.5 million and $124.4 million, respectively.

At December 31, 2003 and 2002, there was $23.4 million and $6.7 million, respectively, of fixed maturity securities which had been non-income producing for the twelve months preceding such dates. Interest income that would have been recognized on these fixed maturity securities was $2.8 million and $1.5 million for the years ended December 31, 2003 and 2002, respectively.

The Company classifies fixed maturity securities which: (i) are in default as to principal or interest payments; (ii) are to be restructured pursuant to commenced negotiations; (iii) went into bankruptcy subsequent to acquisition; or (iv) are deemed to have other than temporary impairments to value as “problem fixed maturity securities.” At December 31, 2003 and 2002, the carrying value of problem fixed maturity securities held by the Company was $240.4 million and $274.7 million, respectively. The Company defines potential problem securities in the fixed maturity category as securities that are deemed to be experiencing significant operating problems or difficult industry conditions. At December 31, 2003 and 2002, the carrying value of potential problem fixed maturity securities held by the Company was $4.9 million and $8.5 million, respectively. In addition, at December 31, 2003 and 2002, the Company had no fixed maturity securities which had been restructured.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Fixed Maturity and Equity Securities: (continued)

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity dates (excluding scheduled sinking funds) as of December 31, 2003, are as follows:


	Amortized Cost		Estimated Fair Value
	($ in millions)

Due in one year or less	$	265.7	$	276.4

Due after one year through five years		2,139.4		2,312.7

Due after five years through ten years		2,998.3		3,193.6

Due after ten years		1,644.0		1,699.1


Subtotal		7,047.4		7,481.8

Mortgage-and asset-backed securities		955.8		992.8


Total	$	8,003.2	$	8,474.6

Fixed maturity securities that are not due at a single maturity date have been included in the preceding table in the year of final maturity. Actual maturity dates may differ from contractual maturity dates because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Proceeds from sales of fixed maturity securities during 2003, 2002, and 2001 were $1,844.2 million, $468.1 million and $479.4 million, respectively. Gross gains of $70.3 million, $35.1 million and $21.3 million and gross losses of $0.4 million, $6.6 million and $8.3 million were realized on these sales in 2003, 2002, and 2001, respectively.

Equity Securities —

The cost, gross unrealized gains and losses, and estimated fair value of marketable and non-marketable equity securities at December 31, 2003 and 2002 are as follows:


	Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
	2003		2002		2003		2002		2003		2002		2003		2002
	($ in millions)

Marketable equity securities	$	65.6	$	59.9	$	8.7	$	3.3	$	0.9	$	2.3	$	73.4	$	60.9

Non-marketable equity securities		178.0		192.8		16.6		29.5		16.3		35.5		178.3		186.8


	$	243.6	$	252.7	$	25.3	$	32.8	$	17.2	$	37.8	$	251.7	$	247.7

Proceeds from sales of equity securities during 2003, 2002, and 2001 were $16.9 million, $16.5 million and $31.0 million, respectively. Gross gains of $5.4 million, $2.7 million and $3.1 million and gross losses of $0.5 million, $2.8 million and $9.5 million were realized on these sales during 2003, 2002, and 2001, respectively.

F-83

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Other Than Temporary Impairments:

The following table presents certain information by type of investment with respect to the Company’s gross unrealized losses on fixed maturity and equity securities at December 31, 2003, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. This table excludes amounts relating to certain invested assets held pursuant to a reinsurance agreement whereby all the experience from such assets is passed to the reinsurer.


	Less Than 12 Months					Greater Than 12 Months					Total
	Total Market Value		Gross Unrealized Losses			Total Market Value		Gross Unrealized Losses			Total Market Value		Gross Unrealized Losses
	($ in millions)

U.S. Treasury securities and Obligations of U.S. Government Agencies	$	877.7	$	(17.9	)	$	0.3	$	—		$	878.0	$	(17.9	)

Collateralized mortgage obligations:

Government agency-backed		43.0		(0.3	)		—		—			43.0		(0.3	)

Non government agency-backed		—		—			—		—			—		—

Other asset-backed securities:

Government agency-backed		—		—			—		—			—		—

Non government agency-backed		1.0		—			35.1		(1.5	)		36.1		(1.5	)

Foreign governments		12.5		(0.2	)		—		—			12.5		(0.2	)

Utilities		62.4		(1.8	)		—		—			62.4		(1.8	)

Corporate bonds		628.7		(21.1	)		49.0		(1.1	)		677.7		(22.2	)


Total bonds		1,625.5		(41.3	)		81.4		(2.6	)		1,709.9		(43.9	)

Common stocks		5.7		(0.9	)		—		—			5.7		(0.9	)


Total temporarily impaired securities	$	1,631.2	$	(42.2	)	$	84.4	$	(2.6	)	$	1,715.6	$	(44.8	)

There were 19 investment grade fixed maturity security positions that have been in an unrealized loss position for more than 12 months as of December 31, 2003. The aggregate gross pre-tax unrealized loss relating to these positions was $2.6 million ($1.7 million after-tax) as of such date. Of these positions: (i) eight comprising approximately $1.8 million ($1.2 million after-tax) of the aforementioned aggregate unrealized loss, were not considered “other than temporarily impaired” principally because of the issuer’s financial strength as indicated by the fact that all such securities were rated “A” or better, (ii) eight comprising approximately $0.8 million ($0.5 million after-tax) of the aforementioned unrealized loss were not considered “other than temporarily impaired” because management is of the opinion that the unrealized loss position was primarily attributable to temporary market conditions affecting the related industry sectors, as well as the fact that management’s analysis of the issuer’s financial strength supported the conclusion that the security was not “other than temporarily impaired”, and (iii) three positions with negligible unrealized losses were U.S. Government securities.

There were no common stock positions that have been in an unrealized loss position for more than 12 months as at December 31,2003.

8. Mortgage Loans on Real Estate:

Mortgage loans on real estate at December 31, 2003 and 2002 consist of the following:


	2003			2002
	($ in millions)

Commercial and residential mortgage loans	$	1,452.9		$	1,592.3

Agricultural mortgage loans		349.5			307.8


Total loans		1,802.4			1,900.1

Less: valuation allowances		(20.0	)		(22.7	)


Mortgage loans, net of valuation allowances	$	1,782.4		$	1,877.4

F-84

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

8. Mortgage Loans on Real Estate: (continued)

An analysis of the valuation allowances for 2003, 2002, and 2001 is as follows:


	2003			2002			2001
	($ in millions)

Balance, beginning of year	$	22.7		$	28.5		$	32.2

Increase/(decrease) in allowance		0.9			0.7			(0.8	)

Reduction due to paydowns, payoffs, and writeoffs		(3.6	)		(2.1	)		(0.2	)

Transfers to real estate		—			(4.4	)		(2.7	)


Balance, end of year	$	20.0		$	22.7		$	28.5

Impaired mortgage loans along with related valuation allowances as of December 31, 2003 and 2002 are as follows:


	2003			2002
	($ in millions)

Investment in impaired mortgage loans (before valuation allowances):

Loans that have valuation allowances	$	14.3		$	66.7

Loans that do not have valuation allowances		30.2			90.3


Subtotal		44.5			157.0

Valuation allowances		(3.2	)		(14.7	)


Impaired mortgage loans, net of valuation allowances	$	41.3		$	142.3

During 2003, 2002, and 2001, the Company recognized $4.1 million, $11.3 million and $12.8 million, respectively, of interest income on impaired loans.

At December 31, 2003 and 2002, the carrying value of mortgage loans which were non-income producing for the twelve months preceding such dates was $0.0 million and $13.8 million, respectively. Interest income that would have been recognized on these mortgage loans was $2.2 million for the year ended December 31, 2002.

At December 31, 2003 and 2002, the Company had restructured mortgage loans of $15.3 million and $29.8 million, respectively. Interest income of $1.3 million, $1.5 million and $4.3 million was recognized on restructured mortgage loans in 2003, 2002, and 2001, respectively. Gross interest income on these loans that would have been recorded in accordance with the original terms of such loans amounted to approximately $1.6 million, $4.0 million and $7.2 million in 2003, 2002, and 2001, respectively.

9. Segment Information:

The Company’s business activities consist of the following: protection product operations, accumulation product operations, mutual fund operations, securities broker-dealer operations, insurance brokerage operations, and certain insurance lines of business no longer written by the Company (the “run-off businesses”). These business activities represent the Company’s operating segments. Except as discussed below, these segments are managed separately because they either provide different products or services, are subject to different regulation, require different strategies, or have different technology requirements.

Management considers the Company’s mutual fund operations to be an integral part of the products offered by the Company’s Accumulation Products segment. Accordingly, for management purposes (including performance assessment and making decisions regarding the allocation of resources), the Company aggregates its mutual fund operations with its Accumulation Products segment.

F-85

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Segment Information: (continued)

Of the aforementioned segments, only the Protection Products segment and the Accumulation Products segment qualify as reportable segments in accordance with SFAS No.131, Disclosures about Segments of an Enterprise and Related Information. All of the Company’s other segments are combined and reported in the Other Products segment.

Products comprising the Protection Products segment primarily include a wide range of individual life insurance products, including: whole life, term life, universal life, variable universal life, corporate-owned life, last survivor universal life, last survivor variable universal life, group universal life and special-risk products. In addition, included in the Protection Products segment are: (i) the assets and liabilities transferred pursuant to the Group Pension Transaction (which ceased as of December 31, 2002 – see Note 13), as well as the Group Pension Profits derived therefrom, (ii) the Closed Block assets and liabilities, as well as the revenues and expenses relating thereto (See Notes 3 and 20), and (iii) the Company’s disability income insurance products (which are 100% reinsured and no longer offered by the Company).

The Accumulation Products segment primarily includes flexible premium variable annuities, single and flexible premium deferred annuities, single premium immediate annuities, proprietary mutual funds, investment management services, and certain other financial services products.

The Company’s Other Products segment primarily consists of a securities broker-dealer operation, an insurance brokerage operation, and the run-off businesses. The securities broker-dealer operation markets the Company’s proprietary investment products and, in addition, provides customers of the Company’s protection and accumulation products access to other non-proprietary investment products (including stocks, bonds, limited partnership interests, tax-exempt unit investment trusts and other investment securities). The insurance brokerage operation provides the Company’s career agency sales force with access to variable life, annuity, small group health and specialty insurance products written by other carriers to meet the insurance and investment needs of its customers. The run-off businesses primarily consist of group life and health business, as well as group pension business that was not included in the Group Pension Transaction (See Note 13).

Set forth in the table below is certain financial information with respect to the Company’s reportable segments as of and for each of the years ended December 31, 2003, 2002, and 2001, as well as amounts not allocated to the segments. Except for various allocations discussed below, the accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 4). The Company evaluates the performance of each operating segment based on profit or loss from operations before income taxes and nonrecurring items (e.g., items of an unusual or infrequent nature). The Company does not allocate certain non-recurring items to the segments. In addition, unless otherwise noted, all segment revenues are from external customers.

Assets have been allocated to the segments in amounts sufficient to support the associated liabilities of each segment and maintain a separately calculated regulatory risk-based capital (“RBC”) level for each segment. Allocations of the net investment income and net realized gains (losses) on investments were based on the amount of assets allocated to each segment. Other costs and operating expenses were allocated to each of the segments based on: (i) a review of the nature of such costs, (ii) time studies analyzing the amount of employee compensation costs incurred by each segment, and (iii) cost estimates included in the Company’s product pricing. Substantially all non-cash transactions and impaired real estate (including real estate acquired in satisfaction of debt) have been allocated to the Protection Products segment.

Amounts reported as “reconciling amounts” in the table below primarily relate to: (i) contracts issued by the MONY Life relating to its employee benefit plans, (ii) interest expense associated with the surplus and intercompany surplus notes, (iii) charges totaling $5.8 million, $7.2 million and $56.8 million in 2003, 2002 and 2001, respectively, associated with the Company’s reorganization activities (see Note 25), (iv) a $1.5 million decrease in 2002 in certain reserves established in connection with the reorganization charge recorded in 2001 (see Note 25) and (v) merger related expenses totaling $0.8 million in 2003 incurred in connection with MONY Group’s pending merger transaction with AXA Financial (see Note 2).

F-86

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Segment Information: (continued)

Segment Summary Financial Information


	2003(4)			2002(5)		2001(3)(6)
	($ in millions)

Premiums:

Protection Products	$	667.9		$	662.9	$	675.5

Accumulation Products		21.2			11.6		5.3

Other Products		16.1			15.9		14.5


	$	705.2		$	690.4	$	695.3


Universal life and investment-type product policy fees:

Protection Products	$	170.4		$	152.1	$	151.6

Accumulation Products		40.6			46.8		54.7

Other Products		(0.1	)		1.6		0.9


	$	210.9		$	200.5	$	207.2


Net investment income and net realized gains/(losses) on investments (7)(8):

Protection Products	$	648.9		$	474.7	$	559.4

Accumulation Products		101.4			59.9		68.6

Other Products		20.1			18.9		17.9

Reconciling amounts		9.2			24.7		18.7


	$	779.6		$	578.2	$	664.6


Other income:

Protection Products (1)	$	33.6		$	84.0	$	46.8

Accumulation Products		105.7			96.1		107.4

Other Products		79.9			60.7		57.5

Reconciling amounts		7.4			10.8		8.1


	$	226.6		$	251.6	$	219.8


Amortization of deferred policy acquisition costs:

Protection Products	$	114.8		$	110.3	$	115.7

Accumulation Products		5.2			45.8		26.1

Reconciling amounts		—			—		17.0


	$	120.0		$	156.1	$	158.8


Benefits to policyholders and interest credited to policyholders’ account balances:

Protection Products	$	837.6		$	794.2	$	815.1

Accumulation Products		106.0			87.9		75.4

Other Products		31.8			30.4		29.2

Reconciling amounts		5.5			9.9		5.5


	$	980.9		$	922.4	$	925.2

F-87

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Segment Information: (continued)


	2003(4)			2002(5)			2001(3)(6)
	($ in millions)

Other operating costs and expenses:

Protection Products	$	268.7		$	226.6		$	245.5

Accumulation Products		125.1			119.4			127.2

Other Products		96.3			83.3			87.3

Reconciling amounts		27.2			30.1			59.4


	$	517.3		$	459.4		$	519.4


Income/(loss) before income taxes (7)(8):

Protection Products	$	77.6		$	57.0		$	23.1

Accumulation Products		31.4			(39.9	)		5.7

Other Products		(13.1	)		(17.8	)		(27.3	)

Reconciling amounts		(16.1	)		(4.5	)		(54.6	)


	$	79.8		$	(5.2	)	$	(53.1	)


Assets:

Protection Products (10)	$	12,956.9		$	12,258.0		$	16,212.9

Accumulation Products		5,235.6			4,521.8			5,077.7

Other Products		767.0			988.2			1,125.7

Reconciling amounts		885.5			727.9			994.8


	$	19,845.0		$	18,495.9		$	23,411.1


Deferred policy acquisition costs:

Protection Products	$	1,153.4		$	1,093.3		$	1,087.0

Accumulation Products		172.0			133.1			146.8


	$	1,325.4		$	1,226.4		$	1,233.8


Future policy benefits:

Protection Products	$	7,626.3		$	7,543.3		$	7,467.2

Accumulation Products		207.7			188.6			173.5

Other Products		192.3			203.1			213.9

Reconciling amounts		15.2			14.9			15.4


	$	8,041.5		$	7,949.9		$	7,870.0


Unearned premiums:

Protection Products	$	58.2		$	54.7		$	53.1

Accumulation Products		—			—			—

Other Products		—			2.6			2.8

Reconciling amounts		—			—			—


	$	58.2		$	57.3		$	55.9

F-88

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Segment Information: (continued)


	2003(4)		2002(5)		2001(3)(6)
	($ in millions)

Policyholders’ balances and other policyholders’ liabilities:

Protection Products	$	1,831.1	$	1,629.8	$	2,845.9

Accumulation Products		1,491.3		1,225.5		969.0

Other Products		152.4		155.7		145.3

Reconciling amounts		0.8		0.6		0.9


	$	3,475.6	$	3,011.6	$	3,961.1


Separate account liabilities (2)(9):

Protection Products (10)	$	826.9	$	604.6	$	3,783.7

Accumulation Products		3,143.5		2,699.0		3,464.3

Other Products		302.3		298.1		429.7

Reconciling amounts		579.2		535.9		694.1


	$	4,851.9	$	4,137.6	$	8,371.8

(1)	Includes Group Pension Profits in 2002 and 2001 (see Note 13).

(2)	Each segment includes separate account assets in an amount not less than the corresponding liability reported.

(3)	See Note 25 for details regarding the allocation of Reorganization and Other Charges to segments.

(4)

Amounts reported as “reconciling” in 2003 primarily related to (i) contracts issued by MONY Life relating to its employee benefit plans, (ii) interest expense associated with the surplus and intercompany surplus notes (see Note 16), (iii) charges totaling $5.8 million pre-tax relating to the Company’s reorganization activities (see Note 25) and (iv) merger related expenses totaling $0.8 million incurred in connection with MONY Group’s pending merger with AXA Financial (see Note 2).

(5)

Amounts reported as “reconciling” in 2002 primarily relate to: (i) contracts issued by MONY Life relating to its employee benefit plans, (ii) interest expense associated with the surplus and intercompany surplus notes (see Note 16), (iii) charges totaling $7.2 million pre-tax relating to the Company’s 2003 reorganization activities (see Note 25), and (iv) a $1.5 million decrease in certain reserves associated with the Company’s 2001 reorganization charge (see Note 25).

(6)

Amounts reported as “reconciling” in 2001 primarily relate to: (i) contracts issued by MONY Life relating to its employee benefit plans, (ii) interest expense associated with the surplus and intercompany surplus notes (see Note 16) and (iii) charges totaling $56.8 million pre-tax relating to the Company’s reorganization activities (see Note 25).

(7)	Amounts reported in 2002 include a loss of $3.9 million pre-tax from discontinued operations, of which $3.3 million, $0.4 million, and $0.2 million, has been allocated to the Protection Products, Accumulation Products and Other Products segments, respectively.

(8)	Amounts reported in 2003 include a gain of $9.0 million pre-tax from discontinued operations, of which $7.7 million, $0.9 million and $0.4 million, has been allocated to the Protection Products, Accumulation Products and Other Products segments, respectively.

(9)	Includes separate account liabilities relating to the Group Pension Transaction of $3,179.5 million as of December 31, 2001 (see Note 13).

(10)

As explained in Note 13, in accordance with GAAP, the Group Pension Transaction did not constitute a sale because the Company retained substantially all the risks and rewards associated with the business transferred to Aegon USA, Inc. (“AEGON”). Accordingly, over the life of the transaction the Company was required to reflect the transferred assets and liabilities on its balance sheet under separate captions entitled “Assets transferred in Group Pension Transaction” and “Liabilities transferred in Group Pension Transaction”. As a result of the expiration of the transaction at December 31, 2002 and the recognition of earnings from the Final Value Payment from AEGON the Company has no further interest in the transferred assets and liabilities and, accordingly, such assets and liabilities are no longer reflected on its balance sheet.

F-89

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Segment Information: (continued)

Substantially all of the Company’s revenues are derived in the United States. Revenue derived from outside the United States is not material and revenue derived from any single customer does not exceed 10.0% of total consolidated revenues.

Following is a summary of revenues by product for the years ended December 31, 2003, 2002, and 2001:


	2003		2002		2001
	($ in millions)

Premiums:

Individual life	$	667.6	$	662.6	$	675.1

Disability income insurance		0.3		0.3		0.4

Group insurance		16.1		15.9		14.5

Other		21.2		11.6		5.3


Total	$	705.2	$	690.4	$	695.3


	2003			2002		2001
	($ in millions)

Universal life and investment-type product policy fees:

Universal life	$	76.9		$	64.8	$	68.8

Variable universal life		84.0			78.1		73.4

Group universal life		9.5			9.2		9.4

Individual variable annuities		40.6			46.8		54.7

Individual fixed annuities		(0.1	)		1.6		0.9


Total	$	210.9		$	200.5	$	207.2

10. Deferred Policy Acquisition Costs:

Policy acquisition costs deferred and amortized in 2003, 2002, and 2001 are as follows:


	2003			2002			2001
	($ in millions)

Balance, beginning of the year	$	1,226.4		$	1,233.8		$	1,209.7

Costs deferred during the year		233.7			213.1			209.1

Amortized to expense during the year		(120.0	)		(156.1	)		(158.8	)

Effect on DPAC from unrealized (gains)/losses		(14.7	)		(64.4	)		(26.2	)


Balance, end of the year	$	1,325.4		$	1,226.4		$	1,233.8

11. Pension Plans and Other Postretirement Benefits:

Pension Plans —

The Company has a qualified pension plan covering substantially all of MONY Life’s salaried employees. The provisions of the plan provide both (a) defined benefit accruals based on: (i) years of service, (ii) the employee’s final average annual compensation and (iii) wage bases or benefits under Social Security, and (b) defined contribution accruals based on a Company matching contribution equal to 100% of the employee’s elective deferrals under the incentive savings plan for employees up to 3% of the employee’s eligible compensation and an additional 2% of eligible compensation for each active participant. Effective

F-90

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

11. Pension Plans and Other Postretirement Benefits: (continued)

June 15, 1999, prospective defined contribution accruals in the defined benefit plan ceased and were redirected to the Investment Plan Supplement for Employees of MONY Life. The Company did not make any contribution in the current or prior year under Section 404 of the Internal Revenue Code (“IRC”) because the plan was fully funded under Section 412 of the IRC.

During 2002, the Company amended its Qualified Pension plan, which increased certain benefit liabilities payable thereunder. The amendment resulted in an increase of $3.7 million in the plan’s projected benefit obligation.

The assets of the qualified pension plan are primarily invested in MONY Pooled Accounts which include common stock, real estate, and public and private fixed maturity securities. At December 31, 2003 and 2002, $312.0 million and $304.7 million, respectively, were invested in the MONY Pooled Accounts. Benefits of $34.0 million, $30.2 million and $27.9 million were paid by this plan for the years ended December 31, 2003, 2002 and 2001, respectively.

MONY Life also sponsors a non-qualified employee excess pension plan, which provides both defined benefits and defined contribution accruals in excess of Internal Revenue Service (“IRS”) limits to certain employees. The benefits are based on years of service and the employee’s final average annual compensation. Pension benefits are paid from the Company’s general account.

Postretirement Benefits —

The Company provides certain health care and life insurance benefits for retired employees and field underwriters of MONY Life. The Company amortizes its postretirement transition obligation over a period of twenty years.

Assumed health care cost trend rates typically have a significant effect on the amounts reported for health care plans, however, under the Company’s postretirement healthcare plan, there is a per capita limit on the Company’s healthcare costs. As a result, a one-percentage point change in the assumed healthcare cost trend rates would have an immaterial effect on amounts reported.

On December 8, 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) was signed into law. The Act introduces a prescription drug benefit under Medicare Part D as well as a Federal subsidy to employers who provide an “actuarial equivalent” prescription drug benefit to employees. The requirements under the Act are not expected to have a material impact on the Company’s results of operations and financial position.

F-91

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

11. Pension Plans and Other Postretirement Benefits: (continued)

The following presents the change in the benefit obligation, change in plan assets and other information with respect to the Company’s qualified and non-qualified defined benefit pension plans and other benefits which represent the Company’s postretirement benefit obligation:


	Pension Benefits						Other Benefits
	2003			2002			2003			2002
	($ in millions)

Change in benefit obligation:

Benefit obligation at beginning of year	$	431.4		$	411.5		$	102.1		$	104.7

Service cost		6.9			5.9			1.7			1.5

Interest cost		27.8			29.2			6.4			6.7

Plan amendment		—			3.7			—			—

Actuarial loss		29.5			18.0			4.4			(0.9	)

Benefits paid		(44.1	)		(36.9	)		(7.7	)		(9.9	)


Benefit obligation at end of year		451.5			431.4			106.9			102.1


Change in plan assets:

Fair value of plan assets at beginning of year		354.9			419.5			—			—

Actual return on plan assets		68.2			(32.6	)		—			—

Employer contribution		10.2			6.7			7.7			9.9

Benefits and expenses paid		(45.7	)		(38.7	)		(7.7	)		(9.9	)


Fair value of plan assets at end of year		387.6			354.9			—			—


Funded status		(63.9	)		(76.5	)		(106.9	)		(102.1	)

Unrecognized actuarial loss		149.0			176.6			16.3			12.1

Unamortized transition obligation		1.0			1.7			27.5			30.6

Unrecognized prior service cost		2.2			1.5			(0.6	)		(0.7	)


Net amount recognized	$	88.3		$	103.3		$	(63.7	)	$	(60.1	)


Amounts recognized in the statement of financial position consist of the following:

Prepaid benefit cost	$	132.5		$	151.0		$	—		$	—

Accrued benefit liability		(61.1	)		(66.6	)		(63.7	)		(60.1	)

Intangible asset		1.0			1.7			—			—

Accumulated other comprehensive income		15.9			17.2			—			—


Net amount recognized	$	88.3		$	103.3		$	(63.7	)	$	(60.1	)

The Company’s qualified plan had assets of $387.6 million and $354.9 million at December 31, 2003 and 2002, respectively. The projected benefit obligation and accumulated benefit obligation for the qualified plan were $385.6 million and $354.3 million at December 31, 2003 and $365.2 million and $338.9 million at December 31, 2002, respectively.

The projected benefit obligation and accumulated benefit obligation for the non-qualified defined benefit pension plan, which is unfunded, were $65.9 million and $61.1 million at December 31, 2003 and $68.2 million and $66.6 million at December 31, 2002, respectively.

F-92

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

11. Pension Plans and Other Postretirement Benefits: (continued)

Components of net periodic benefit cost for the pension and other post-retirement plans are as follows:


	Pension Benefits									Other Benefits
	2003			2002			2001			2003			2002			2001
	($ in millions)

Components of net periodic benefit cost

Service cost	$	6.9		$	5.9		$	8.3		$	1.7		$	1.5		$	1.5

Interest cost		27.8			29.2			30.9			6.4			6.7			7.2

Expected return on plan assets		(26.9	)		(39.8	)		(45.5	)		—			—			—

Amortization of prior service cost		(0.3	)		(0.3	)		(0.8	)		(0.1	)		(0.1	)		(0.2	)

Recognized net actuarial loss/(gain)		17.2			4.6			1.1			0.1			—			—

Amortization of transition items		0.3			0.3			(7.5	)		3.1			3.1			3.1


Net periodic benefit cost	$	25.0		$	(0.1	)	$	(13.5	)	$	11.2		$	11.2		$	11.6


	Pension Benefits				Other Benefits
	2003		2002		2003		2002

Weighted-average assumptions for the year ended December 31:

Discount rate	6.1	%	6.6	%	6.1	%	6.6	%

Expected return on plan assets	8.0	%	10.0	%	—		—

Rate of compensation increase (1)	—		—		5.0	%	5.0	%

(1)

For MONY Life, no benefits bearing incentive compensation is assumed for 2003. Otherwise, benefits bearing compensation is assumed to increase by 4% for all participants eligible for incentive compensation and by 5% for all others. Benefits bearing incentive compensation for the top four officers is assumed to be 50% of base salary after 2003.

MONY Life uses a December 31 measurement date for its pension plans and other postretirement benefits.

For measurement purposes, a 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2004. The rate was assumed to decrease gradually to 6% for 2010 and remain at that level thereafter.

Plan Assets —

The Company’s assumption with respect to the future return on pension plan assets, which at January 1, 2003 was determined to be 8%, is made by management after taking into consideration historic returns on such assets (generally the geometric annual rate of return over at least a ten year period), the actual mix of the pension plan’s invested assets at the valuation date (which is assumed to be consistent in future periods), management’s outlook for future returns on such asset types, and the long-term outlook for such returns in the marketplace. At December 31, 2003 and 2002, the fair value of the pension plan invested assets were comprised of the following:


	Pension Benefits
	2003		2002

Public common stocks	61.5	%	49.4	%

Public and private fixed maturity securities	29.0	%	43.8	%

Real estate	4.0	%	4.3	%

Cash and cash equivalents	5.5	%	2.5	%


	100.0	%	100.0	%

F-93

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

11. Pension Plans and Other Postretirement Benefits: (continued)

The fair value of pension plan assets is determined as follows:

•

Public and Private Fixed Maturity Securities — The estimated fair values of public fixed maturity securities are based upon quoted market prices, where available. The fair values of private fixed maturity securities or public fixed maturity securities which are not actively traded are estimated using values obtained from independent pricing services or, in the case of private placements, by discounting expected future cash flows using a current market interest rate commensurate with the credit quality and term of the investments.

•

Public common stock — The fair values of public common stock investments are determined based on quoted market prices.

•

Real estate — The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate, discounted at a rate commensurate with the underlying risks.

The Company also has a qualified money purchase pension plan covering substantially all career field underwriters. Company contributions of 5% of earnings plus an additional 2% of such earnings in excess of the social security wage base are made each year. At December 31, 2003 and 2002, the fair value of plan assets was $188.2 million and $165.1 million, respectively. For the years ended December 31, 2003, 2002, and 2001, the Company contributed $2.2 million, $2.8 million and $3.2 million to the plan, respectively, which amounts are reflected in “other operating costs and expenses” in the Company’s consolidated statement of income and comprehensive income.

The Company has a non-qualified defined contribution plan, which is unfunded. The non-qualified defined contribution plan projected benefit obligation, which equaled the accumulated benefit obligation, was $61.2 million and $52.9 million as of December 31, 2003 and 2002, respectively. The non-qualified defined contribution plan’s net periodic expense was $11.1 million, $(2.7) million and $(0.2) million for the years ended December 31, 2003, 2002 and 2001, respectively.

The Company also has incentive savings plans in which substantially all employees and career field underwriters of MONY Life are eligible to participate. The Company matches field underwriter contributions up to 2% of eligible compensation and may also make an additional profit sharing contribution for non-officer employees. As with the employee excess plan, the Company also sponsors non-qualified excess defined contribution plans for both the field underwriter retirement plan and the incentive savings plan for field underwriters of MONY Life. The Company also sponsors several other 401(k) plans for its smaller subsidiaries which the Company considers immaterial.

12. Income Taxes:

The Company files a consolidated federal income tax return with its ultimate parent, MONY Group, and its other subsidiaries, as well as the Company’s life and non-life affiliates except Sagamore Financial Corporation and its subsidiaries (see Note 4).

Federal income taxes have been calculated in accordance with the provisions of the Internal Revenue Code of 1986, as amended. A summary of the income tax expense/(benefit) is presented below:


	2003			2002			2001
	($ in millions)

Income tax expense/(benefit):

Current	$	68.3		$	(39.0	)	$	11.6

Deferred		(47.8	)		33.0			(7.5	)


Income tax expense/(benefit) from continuing operations		20.5			(6.0	)		(19.1	)

Discontinued operations		3.1			(1.4	)		—


Total	$	23.6		$	(7.4	)	$	(19.1	)

F-94

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

12. Income Taxes: (continued)

Federal income taxes reported in the consolidated statements of income and comprehensive income for the years ended December 31, 2003, 2002 and 2001 are different from the amounts determined by multiplying the earnings before federal income taxes by the statutory federal income tax rate of 35%. The sources of the difference and the tax effects of each for the years ended December 31, 2003, 2002 and 2001 are as follows:


	2003			2002			2001
	($ in millions)

Tax at statutory rate	$	24.8		$	(7.4	)	$	(19.1	)

Dividends received deduction		(6.0	)		(1.2	)		—

Foreign loss disallowance		4.3			—			—

Tax settlements/accrual adjustments		(4.2	)		(11.9	)		(16.3	)

Meals and entertainment		1.3			1.5			(0.4	)

Officers’ life insurance		(2.5	)		3.7			1.2

Other		2.8			9.3			15.5


Federal Income tax expense/(benefit) from continuing operations		20.5			(6.0	)		(19.1	)

Federal income tax expense/(benefit) from discontinued operations		3.1			(1.4	)		—


Provision for income tax expense/(benefit)	$	23.6		$	(7.4	)	$	(19.1	)

MONY Group’s income tax returns for years through 1993 have been examined by the IRS. No material adjustments were proposed by the IRS as a result of these examinations. In the opinion of management, adequate provision has been made for any additional taxes which may become due with respect to open years.

The components of deferred tax liabilities and assets at December 31, 2003 and 2002 are as follows:


	2003			2002
	($ in millions)

Deferred policy acquisition costs	$	334.6		$	134.1

Fixed maturity securities and equity securities		118.0			187.5

Other, net		(11.0	)		82.6

Nonlife subsidiaries		(42.0	)		(10.4	)


Total deferred tax liabilities		399.6			393.8


Reserves		122.5			133.0

Accrued expenses		59.6			(8.6	)

Deferred compensation and benefits		28.9			25.6

Policyholder dividends		35.0			(5.2	)

Real estate and mortgages		(25.6	)		9.9


Total deferred tax assets		220.4			154.7


Net deferred tax liability	$	179.2		$	239.1

The Company is required to establish a valuation allowance for any portion of the deferred tax asset that management believes will not be realized. In the opinion of management, it is more likely than not that it will realize the benefit of the deferred tax assets; therefore, no such valuation allowance has been established.

F-95

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

13. The Group Pension Transaction:

On December 31, 1993 (the “Group Pension Transaction Date”), the Company entered into an agreement (the “Agreement”) with AEGON USA, Inc. (“AEGON”) under which the Company transferred a substantial portion of its group pension business (hereafter referred to as the “Group Pension Transaction”), including its full service group pension contracts, consisting primarily of tax-deferred annuity, 401(k) and managed funds lines of business, to AEGON’s wholly-owned subsidiary, AUSA Life Insurance Company, Inc. (“AUSA”). The Company also transferred to AUSA the corporate infrastructure supporting the group pension business, including data processing systems, facilities and regional offices. AUSA was newly formed by AEGON solely for the purpose of facilitating this transaction. In connection with the transaction, the Company and AEGON entered into certain service agreements. These agreements, among other things, provided that the Company would continue to manage the transferred assets, and that AUSA would continue to provide certain administrative services to the Company’s remaining group pension contracts not included in the transfer.

Pursuant to the Agreement, the Company agreed to make a $200 million capital investment in AEGON by purchasing $150 million face amount of Series A Notes and $50 million face amount of Series B Notes (hereinafter referred to as the “Notes”). The Series A Notes pay interest at 6.44% per annum and the Series B Notes pay interest at 6.24% per annum. The Series B Notes matured on December 31, 2002 and the Series A Notes matured on April 7, 2003. The Company’s investment in the Series A Notes was intended to provide AEGON with the funding necessary to capitalize AUSA.

In accordance with GAAP, the transaction did not constitute a sale because the Company retained substantially all the risks and rewards associated with the existing deposits on the transferred business (the “Existing Deposits”). Accordingly, the Company reflected the transferred assets and liabilities on its balance sheet under separate captions entitled “Assets transferred in Group Pension Transaction” and “Liabilities transferred in Group Pension Transaction” until the expiration of the agreement, December 31, 2002. In addition, the Company reported in its GAAP earnings the profits from the Existing Deposits as discussed below.

Pursuant to the Agreement, which expired on December 31, 2002, the Company received from AUSA: (i) payments on an annual basis through December 31, 2002 (the “Group Pension Payments”) equal to all of the earnings from the Existing Deposits, (ii) a final payment (the “Final Value Payment”) at December 31, 2002 based on the remaining fair value of the Existing Deposits, and (iii) a contingent payment (the “New Business Growth Payment”) at December 31, 2002 based on new business growth subsequent to the Transaction Date.

With respect to the Group Pension Payments, the annual results from the Existing Deposits were measured on a basis in accordance with the Agreement (such basis hereafter referred to as the “Earnings Formula”) which was substantially the same as GAAP, except that: (i) asset impairments on fixed maturity securities were only recognized when such securities were designated with an NAIC rating of “6”, and (ii) no impairment losses were recognized on mortgage loans until such loans were disposed of, or at the time and in the calculation, of the Final Value Payment. All mortgage loans had been disposed of prior to the calculation of the Final Payment.

Earnings which emerged from the Existing Deposits pursuant to the application of the Earnings Formula were recorded in the Company’s financial statements only after adjustments (primarily to recognize asset impairments in accordance with SFAS Nos. 114 and 115) to reflect such earnings on a basis entirely in accordance with GAAP (such earnings hereafter referred to as the “Group Pension Profits”). Losses which arose from the application of the Earnings Formula for any annual period were reflected in the Company’s results of operations (after adjustments to reflect such losses in accordance with GAAP) only up to the amount for which the Company is at risk (as described below), which at any time is equal to the then outstanding principal amount of the Series A Notes.

Operating losses reported in any annual period pursuant to the Earnings Formula were carried forward to reduce any earnings in subsequent years reported pursuant to the Earnings Formula. Any resultant deficit remaining at December 31, 2002 would be deducted from the Final Value Payment and New Business Growth Payment, if any, due to the Company. If a deficit still remained, it would be applied (as provided for in the Agreement) as an offset against the principal payment due to the Company upon maturity of the Series A Notes. As of December 31, 2002, there were no operating losses reported in any annual period during the term of the agreement, nor was the Company eligible for any New Business Growth payment.

F-96

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

13. The Group Pension Transaction: (continued)

For the years ended December 31, 2002 and 2001, AUSA reported earnings to the Company pursuant to the application of the Earnings Formula of $19.1 million and $27.4 million, respectively, and the Company recorded Group Pension Profits of $28.2 million and $30.7 million, respectively. In addition, the Company earned $12.8 million of interest income on the Notes in each of the aforementioned years. In addition, the Company recorded earnings from the Final Value Payment of $54.1 million (before expenses of approximately $6.0 million relating thereto, which are recorded in “other operating costs and expenses” in the 2002 consolidated statement of income and comprehensive income), on December 31, 2002.

The following sets forth certain summarized financial information relating to the Group Pension Transaction for the periods indicated, including information regarding the components of revenue and expense comprising the Group Pension Profits. In accordance with GAAP, the Group Pension Transaction did not constitute a sale because the Company retained substantially all the risks and rewards associated with the business transferred to Aegon. Accordingly, over the life of the transaction the Company was required to reflect the transferred assets and liabilities on its balance sheet under separate captions entitled “Assets transferred in Group Pension Transaction” and “Liabilities transferred in Group Pension Transaction”. As a result of the expiration of the transaction at December 31, 2002 and the recognition of earnings from the Final Value Payment from Aegon, the Company has no further interest in the transferred assets and liabilities and, accordingly, such assets and liabilities are no longer reflected on the Company’s balance sheet.


	For the Year Ended December 31,
	2003		2002		2001
	($ in millions)

Revenues:

Product policy fees	$	—	$	18.3	$	19.6

Net investment income		—		88.2		102.0

Net realized gains (losses) on investments (2)		—		0.8		1.5


Total revenues				107.3		123.1

Benefits and Expenses:

Interest credited to policyholders’ account balances		—		63.5		74.8

Other operating costs and expenses		—		15.6		17.6


Total benefits and expenses		—		79.1		92.4


Group Pension Profits		—		28.2		30.7


Final Value Payment (1)		—		54.1		—


Total	$	—	$	82.3	$	30.7

(1)	Expenses of approximately $6.0 million relating to the Final Value Payment are recorded in “other operating costs and expenses” on the Company’s consolidated statement of income and comprehensive income for 2002.

(2)	Includes in 2001 $2.5 million of pretax realized losses ($1.6 million after-tax) relating to the impairment of certain investments which was included in the fourth quarter 2001 Other Charges (see Note 25).

F-97

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

14. Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments approximate their carrying amounts, except for mortgage loans, long-term debt and investment-type contracts. The methods and assumptions utilized in estimating the fair values of the Company’s financial instruments are summarized as follows:

Fixed Maturity and Equity Securities —

The estimated fair values of fixed maturity securities are based upon quoted market prices, where available. The fair values of fixed maturity securities not actively traded and other non-publicly traded securities are estimated using values obtained from independent pricing services or, in the case of private placements, by discounting expected future cash flows using a current market interest rate commensurate with the credit quality and term of the investments. Equity securities primarily consist of investments in common stocks and limited partnership interests. The fair value of the Company’s investments in common stocks is determined based on quoted market prices, where available. The fair value of the Company’s investments in limited partnership interests is based on amounts reported by such partnerships to the Company.

Mortgage Loans —

The fair value of mortgage loans is estimated by discounting expected future cash flows, using current interest rates for similar loans to borrowers with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. The fair value of mortgages in process of foreclosure is the estimated fair value of the underlying collateral. At December 31, 2003 and 2002, the fair value of mortgage loans was $1,926.9 million and $2,065.5 million, respectively.

Policy Loans —

Policy loans are an integral component of insurance contracts and have no maturity dates. Management has determined that it is not practicable to estimate the fair value of policy loans.

Long-term Debt —

The fair value of long-term debt is determined based on contractual cash flows discounted at market rates. The carrying value and fair value of long-term debt at December 31, 2003 were $216.9 million and $244.3 million, respectively. The carrying value and fair value of long-term debt at December 31, 2002 were $216.9 million and $234.1 million, respectively.

Separate Account Assets and Liabilities —

The estimated fair value of assets and liabilities held in separate accounts is based on quoted market prices.

Investment-Type Contracts —

The fair values of annuities are based on estimates of the value of payments available upon full surrender. The carrying value and fair value of annuities at December 31, 2003 were $1,727.4 million and $1,701.1 million, respectively. The carrying value and fair value of annuities at December 31, 2002 were $1,459.2 million and $1,439.4 million, respectively.

15. Reinsurance:

Life insurance business is primarily ceded on a yearly renewable term basis under various reinsurance contracts except for the level term product which utilizes a coinsurance agreement. The Company’s general practice is to retain no more than $4.0 million of risk on any one person for individual products and $6.0 million for last survivor products.

F-98

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Reinsurance: (continued)

The Company has entered into coinsurance agreements with other insurers related to a portion of its extended term insurance, guaranteed interest contract and long-term disability claim liabilities, and reinsures approximately 50% of its block of paid-up life insurance policies.

The following table summarizes the effect of reinsurance for the years indicated:


	2003			2002			2001
	($ in millions)

Direct premiums (includes $61.4 million, $65.0 million and $68.3 million of accident and health premiums for 2003, 2002, and 2001, respectively)	$	821.6		$	801.7		$	803.6

Reinsurance assumed		8.0			7.2			6.0

Reinsurance ceded (includes $(61.1) million, ($64.6) million and ($67.8) million of accident and health premiums for 2003, 2002, and 2001, respectively)		(124.4	)		(118.5	)		(114.3	)


Net premiums	$	705.2		$	690.4		$	695.3


Universal life and investment type product policy fee income ceded	$	38.0		$	34.5		$	27.7


Policyholders’ benefits ceded	$	150.5		$	129.0		$	126.4


Interest credited to policyholders’ account balances ceded	$	2.4		$	2.9		$	3.7

The Company is primarily liable with respect to ceded insurance should any reinsurer be unable to meet its obligations under these agreements. To limit the possibility of such losses, the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk.

16. Long Term Debt:

The Company’s long term debt at December 31, 2003 and 2002 consists of the following:


	2003		2002
	($ in millions)

Surplus notes	$	1.9	$	1.9

Intercompany Surplus Notes		215.0		215.0


Total long term debt	$	216.9	$	216.9

Surplus and Senior Notes —

On January 12, 2000, the MONY Group filed a registration statement on Form S-3 with the Securities and Exchange Commission (the “SEC”) to register certain securities. This registration, known as a “Shelf Registration”, provides the Company with the ability to offer various securities to the public, when it deems appropriate, to raise proceeds up to an amount not to exceed $1.0 billion in the aggregate for all issuances of securities thereunder. It is the intention of the Company to use this facility to raise proceeds for mergers and acquisitions and for other general corporate matters, as it considers necessary.

On March 8, 2000, the MONY Group issued $300.0 million principal amount of senior notes (the “$300 million Senior Notes”) pursuant to the aforementioned Shelf Registration. The $300 million Senior Notes mature on March 15, 2010 and bear interest at 8.35% per annum. The principal amount of the $300 million Senior Notes is payable at maturity and interest is payable semi-annually. The net proceeds to the MONY Group from the issuance of the $300 million Senior Notes, after deducting underwriting commissions and other expenses (primarily legal and accounting fees), were approximately $296.6 million. Approximately $280.0 million of the net proceeds from the issuance of the Senior Notes was used by the MONY Group to finance

F-99

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

16. Long Term Debt: (continued)

MONY Life’s repurchase, on March 8, 2000, of all of its outstanding $115.0 million face amount 9.5% coupon surplus notes, and $116.5 million face amount of its $125.0 million face amount 11.25% coupon surplus notes (hereafter referred to as the “9.5% Notes” and the “11.25% Notes”, respectively), which were previously outstanding. The balance of the net proceeds from the issuance of the Senior Notes was retained by the MONY Group for general corporate purposes. In the third quarter of 2000 and first quarter of 2001, the Company repurchased another $6.5 million and $0.1 million face amount of the 11.25% Notes, respectively, resulting in a remaining balance of $1.9 million at December 31, 2002. MONY Group’s financing of MONY Life’s repurchase of its 9.5% Notes and 11.25% Notes consisted of a capital contribution by MONY Group to MONY Life of $65.0 million and the purchase by MONY Group from MONY Life of two separate newly issued “intercompany” surplus notes. The intercompany surplus note issued to replace the 9.5% Notes has a par value of $115.0 million, a coupon rate of interest of 8.65%, and matures on December 31, 2012. The intercompany surplus note issued to replace the 11.25% Notes has a par value of $100.0 million, a coupon rate of interest of 8.65%, and matures on August 15, 2024. Principal on the intercompany surplus notes is payable at maturity and interest is payable semi-annually.

17. Securities Lending and Concentration of Credit Risk:

Securities Lending Risk: —

Pursuant to a securities lending agreement with a major financial institution, the Company from time to time lends securities to approved borrowers. At December 31, 2003 and 2002, securities loaned by the Company under this agreement had a fair value of approximately $405.3 million and $351.8 million, respectively. The minimum collateral on securities loaned is 102 percent of the market value of the loaned securities. Such securities are marked to market on a daily basis; the collateral is increased or decreased in accordance with the Company’s agent agreement.

Concentration of Credit Risk: —

At December 31, 2003 and 2002, the Company had no single investment or series of investments with a single issuer (excluding U.S. Treasury securities and obligations of U.S. government agencies) exceeding 1.0% and 1.3%, respectively, of total cash and invested assets.

The Company’s fixed maturity securities are diversified by industry type. The industries (excluding U.S. Treasury securities and obligations of U.S. government agencies) that comprise 10.0% or more of the carrying value of the fixed maturity securities at December 31, 2003 are Consumer Goods of $1,698.1 million (20.0%).

The Company held below investment grade fixed maturity securities with a carrying value of $824.9 million at December 31, 2003. These investments consist mostly of privately issued bonds which are monitored by the Company through extensive internal analysis of the financial condition of the issuers and which generally include protective debt covenants. At December 31, 2002, the carrying value of the Company’s investments in below investment grade fixed maturity securities amounted to $892.7 million.

F-100

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

17. Securities Lending and Concentration of Credit Risk: (continued)

The Company has significant investments in commercial and agricultural mortgage loans and real estate (including joint ventures and partnerships). The locations of property collateralizing mortgage loans and real estate investment carrying values at December 31, 2003 and 2002 are as follows:


	2003				2002
	($ in millions)

Geographic Region

Mountain	$	376.9	19.3	%	$	392.4	18.8	%

Southeast		456.6	23.3			457.2	21.9

Midwest		382.5	19.6			367.8	17.7

West		344.8	17.6			367.1	17.6

Northeast		158.1	8.1			261.9	12.6

Southwest		237.6	12.1			238.0	11.4


Total	$	1,956.5	100.0	%	$	2,084.4	100.0	%

The states with the largest concentrations of mortgage loans and real estate investments at December 31, 2003 are: California, $220.1 million (11.3%); Arizona, $206.3 million (10.5%); Texas, $179.0 million (9.2%); Virginia, $130.3 million (6.7%); Georgia, $111.5 million (5.7%); Washington, $96.1 million (4.9%); and, the District of Columbia, $93.2 million (4.8%).

As of December 31, 2003 and 2002, the real estate and mortgage loan portfolio was also diversified by property type as follows:


	2003				2002
	($ in millions)

Property Type

Office buildings	$	845.6	43.2	%	$	924.2	44.3	%

Agricultural		347.9	17.8			308.3	14.8

Hotel		267.3	13.7			274.3	13.2

Retail		143.7	7.3			142.9	6.9

Other		104.4	5.3			123.2	5.9

Industrial		163.5	8.4			188.2	9.0

Apartment buildings		84.1	4.3			123.3	5.9


Total	$	1,956.5	100.0	%	$	2,084.4	100.0	%

18. Commitments and Contingencies:

(i) Since late 1995 a number of purported class actions have been commenced in various state and federal courts against MONY Life and MLOA alleging that they engaged in deceptive sales practices in connection with the sale of whole and universal life insurance policies from the early 1980s through the mid 1990s. Although the claims asserted in each case are not identical, they seek substantially the same relief under essentially the same theories of recovery (i.e., breach of contract, fraud, negligent misrepresentation, negligent supervision and training, breach of fiduciary duty, unjust enrichment and violation of state insurance and/or deceptive business practice laws). Plaintiffs in these cases seek primarily equitable relief (e.g., reformation, specific performance, mandatory injunctive relief prohibiting MONY Life and MLOA from canceling policies for failure to make required premium payments, imposition of a constructive trust and creation of a claims resolution facility to adjudicate any individual issues remaining after resolution of all class-wide issues) as opposed to compensatory damages, although they also seek compensatory damages in unspecified amounts. MONY Life and MLOA have answered the complaints in each action (except for one being voluntarily held in abeyance). MONY Life and MLOA have denied any wrongdoing and have asserted numerous affirmative defenses.

F-101

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Commitments and Contingencies: (continued)

On June 7, 1996, the New York State Supreme Court certified one of those cases, Goshen v. The Mutual Life Insurance Company of New York and MONY Life Insurance Company of America (now known as DeFilippo, et al v. The Mutual Life Insurance Company of New York and MONY Life Insurance Company of America), the first of the class actions filed, as a nationwide class consisting of all persons or entities who have, or at the time of the policy’s termination had, an ownership interest in a whole or universal life insurance policy issued by MONY Life and MLOA and sold on an alleged “vanishing premium” basis during the period January 1, 1982 to December 31, 1995. On March 27, 1997, MONY Life and MLOA filed a motion to dismiss or, alternatively, for summary judgment on all counts of the complaint. All of the other putative class actions have been consolidated and transferred by the Judicial Panel on Multidistrict Litigation to the United States District Court for the District of Massachusetts. While most of the cases before the District Court have been held in abeyance pending the outcome in Goshen, in June 2003, the Court granted plaintiffs in two of the constituent cases (the McLean and Snipes cases) leave to amend their complaints to delete all class action claims and allegations other than (in the case of McLean) those predicated on alleged violations of the Massachusetts and Illinois consumer protection statutes. On November 19, 2003, the Court in McLean entered an order granting defendants dispositive motion seeking dismissal of the individual claims of the proposed class representatives of the putative statewide class comprised of Massachusetts purchasers, but denying that motion as to the individual claims of the proposed class representatives of the putative state-wide class of Illinois purchasers only. The order is now on appeal to the United States Court of Appeals for the First Circuit.

On October 21, 1997, the New York State Supreme Court granted MONY Life’s and MLOA’s motion for summary judgment and dismissed all claims filed in the Goshen case against MONY Life and MLOA. On December 20, 1999, the New York State Court of Appeals affirmed the dismissal of all but one of the claims in the Goshen case (a claim under New York’s General Business Law), which has been remanded back to the New York State Supreme Court for further proceedings consistent with the opinion. The New York State Supreme Court subsequently reaffirmed that, for purposes of the remaining New York General Business Law claim, the class is now limited to New York purchasers only. On July 2, 2002, the New York Court of Appeals affirmed the New York State Supreme Court’s decision limiting the class to New York purchasers. In addition, the New York State Supreme Court has further held that the New York General Business Law claims of all class members whose claims accrued prior to November 29, 1992 are barred by the applicable statute of limitations. On September 25, 2002 in light of the New York Court of Appeals’ decision, MONY Life and MLOA filed a motion to decertify the class with respect to the sole remaining claim in the case. By orders dated April 16, and May 6, 2003, the New York State Supreme Court denied preliminarily the motion for decertification, but held the issue of decertification in obeyance pending appeals by plaintiffs in related cases and a hearing on whether the present class, or a modified class, can satisfy the requirements of the class action statute in New York. MONY Life and MLOA have appealed from the denial of their motion for decertification, which appeal is presently pending in the Appellate Division, First Department. MONY Life and MLOA intend to defend themselves vigorously the sole remaining claim. There can be no assurance, however, that the present litigation relating to sales practices will not have a material adverse effect on them.

(ii) Between September 22 and October 8, 2003, ten substantially similar putative class action lawsuits were filed against MONY Group, its directors, AXA Financial and/or AIMA in the Court of Chancery of the State of Delaware in and for New Castle County, entitled Beakovitz v. AXA Financial, Inc., et al., C.A. No. 20559-NC (Sept. 22, 2003); Belodoff v. The MONY Group Inc., et al., C.A. No. 20558-NC (Sept. 22, 2003); Brian v. The MONY Group Inc., et al., C.A. No. 20567-NC (Sept. 23, 2003); Bricklayers Local 8 and Plasterers Local 233 Pension Fund v. The MONY Group Inc., et al., C.A. No. 20599-NC (Oct. 8, 2003); Cantor v. The MONY Group Inc., et al., C.A. No. 20556-NC (Sept. 22, 2003); E.M. Capital, Inc. v. The MONY Group Inc., et al., C.A. No. 20554-NC (Sept. 22, 2003); Garrett v. The MONY Group Inc., et al., C.A. No. 20577-NC (Sept. 25, 2003); Lebedda v. The MONY Group Inc., et al., C.A. No. 20590-NC (Oct. 3, 2003); Martin v. Roth, et al., C.A. No. 20555-NC (Sept. 22, 2003); and Muskal v. The MONY Group Inc., et al., C.A. No. 20557-NC (Sept. 22, 2003).

By order dated November 4, 2003, Vice Chancellor Stephen P. Lamb, to whom the cases had been assigned, consolidated all ten actions under the caption In re The MONY Group Inc., Shareholders Litigation, Consolidated C.A. No. 20554-NC, and ordered plaintiffs to file a consolidated amended complaint. On or about November 5, 2003, plaintiffs filed a Consolidated Class Action Complaint on behalf of a putative class consisting of all MONY Group stockholders, excluding the defendants and their affiliates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Commitments and Contingencies: (continued)

The consolidated complaint alleges that the $31.00 cash price per share to be paid to MONY Group stockholders in connection with the proposed merger is inadequate and that MONY Group’s directors breached their fiduciary duties in negotiating and approving the merger agreement by, among other things, (i) failing to maximize stockholder value, (ii) improperly diverting merger consideration from MONY Group’s stockholders to MONY Group’s management by amending and extending management’s change-in-control agreements, (iii) failing to comply with Delaware law in determining the “fair value” of MONY Group’s stock and (iv) disseminating incomplete and inaccurate information regarding the proposed merger. The consolidated amended complaint alleges that AXA Financial and AIMA aided and abetted the alleged breaches of fiduciary duty by MONY Group and its directors. The complaint seeks various forms of relief, including damages and injunctive relief that would, if granted in its entirety, prevent completion of the merger. Defendants served and filed their answers to the consolidated amended complaints on December 29, 2003.

In addition, MONY Group, its directors and AXA Financial have been named in two putative class action lawsuits filed in New York State Supreme Court in Manhattan, entitled Laufer v. The MONY Group, et al., Civ. No. 602957-2003 (Sept. 19, 2003) and North Border Investments v. Barrett, et al., Civ. No. 602984-2003 (Sept. 22, 2003). The complaints in these actions contain allegations substantially similar to those in the original consolidated complaint in the Delaware cases, and likewise purport to assert claims against MONY Group and its directors for breach of fiduciary duty and against AXA Financial for aiding and abetting a breach of fiduciary duty. The Laufer and North Border complaints also seek various forms of relief, including damages and injunctive relief that would, if granted, prevent the completion of the merger. On December 29 and 30, 2003, respectively, defendants served their answers to the Laufer and North Border complaints. MONY Group has denied the material allegations of the complaints and intends to vigorously defend the actions.

Subsequent Events —

On January 16, 2004, after the filing and mailing of the definitive proxy statement on January 8, 2004, plaintiffs sought and were granted leave to further amend their complaint to include additional allegations relating to the accuracy and/or completeness of information provided by the MONY Group in such proxy statement. Thereafter, plaintiffs requested a hearing on their motion for a preliminary injunction to enjoin the stockholder vote which had been scheduled to occur at the special meeting on February 24, 2004. A hearing on plaintiffs’ motion for a preliminary injunction was held on February 13, 2004. By order dated March 1, 2004, and an opinion released on February 17, 2004, Vice Chancellor Lamb granted plaintiffs’ motion to the limited extent of enjoining MONY Group from proceeding with the special meeting until MONY Group provides supplemental disclosure to its stockholders relating to the amount of the benefits that the MONY Group executives would receive under the change-in-control agreements relative to the amounts received by executives in the other transactions the independent directors and their advisors had considered at least ten days before the special meeting. Vice Chancellor Lamb otherwise rejected plaintiffs’ arguments in support of an injunction based on the directors’ purported breach of fiduciary duty, the associated aiding and abetting claims and plaintiffs’ other disclosure claims.

On March 9, 2004, plaintiffs filed a second amended complaint which included, among other things, allegations that (i) the MONY Group’s board of directors decision to reschedule the special meeting and set a new record date reflects an attempt by MONY Group to manipulate the vote by disenfranchising its long-term stockholders, (ii) MONY Group selectively communicated its intent to change the record date to certain investors so as to enable them to acquire voting power prior to the public announcement of the new record date, (iii) the press release issued in connection with the board’s decision to reschedule the meeting and record dates was materially false and misleading in that it failed to disclose and/or misrepresented the manipulation of the voting process and the true reason for the changing of such dates and (iv) the rescheduling of the meeting and record dates constitutes a breach of fiduciary duty by the MONY Group’s defendants. The second amended complaint seeks an order directing that MONY Group reinstate the record date of January 2, 2004 or, alternatively, denying voting power with respect to MONY Group shares allegedly purchased with knowledge of the prospect of a new record date.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Commitments and Contingencies: (continued)

(iii) On February 3, 2004, MONY Group commenced an action in the United States District Court for the Southern District of New York, entitled The MONY Group Inc. v. Highfields Capital Management LP, Longleaf Partners Small-Cap Fund and Southeastern Asset Management, No. 04 Civ. 00916. MONY Group’s complaint alleges, among other things, that: (i) the furnishing by defendants, in solicitation materials sent to MONY Group’s stockholders, of a duplicate copy of MONY Group’s proxy voting card, without first filing a proxy statement and making the requisite disclosures in connection therewith, violates the federal proxy rules; (ii) certain of defendants’ solicitation materials contained false and misleading statements; and (iii) the defendants are acting as members of a “group” under Section 13(d) of the Securities Exchange Act and the rules promulgated thereunder in opposing the proposed merger, requiring the defendants to make certain securities filings and disclosures regarding their holdings, plans and intentions before engaging in a solicitation of MONY Group’s stockholders.

Subsequent Events —

Based on the first of these allegations, on February 3, 2004, Judge Loretta Preska granted MONY Group’s request for a temporary restraining order and prohibited defendants from enclosing any proxy voting card, including a duplicate copy of MONY Group’s proxy voting card, in their solicitation materials, pending a determination on whether a preliminary injunction should be issued. By order dated February 11, 2004, Judge Richard Holwell denied MONY Group’s motion for a preliminary injunction and dissolved the temporary restraining order. Later that day, MONY Group filed a notice of appeal from Judge Holwell’s order and made an emergency application to the United States Court of Appeals for the Second Circuit, seeking an expedited appeal from the denial of the preliminary injunction, as well as a stay of Judge Holwell’s order dissolving the temporary restraining order or a preliminary injunction pending appeal. A single judge of the Second Circuit denied MONY Group’s request for a stay or injunction pending appeal, but the Court granted MONY Group’s motion for an expedited appeal, which is now pending.

On February 20, 2004 defendants Southeastern Asset Management and Longleaf Partners Small-Cap Fund served a joint answer to the complaint. Discovery in the litigation is currently proceeding with respect to MONY Group’s 13(d) and proxy disclosure claims.

(iv) In July 2002, pursuant to a jury verdict, the Company was found liable and ordered to pay a former joint venture partner some of the proceeds distributed to the Company from the disposition of a real estate asset in 1999, which was formerly owned by the joint venture. As a result of the verdict, which the Company appealed, the Company recorded a charge aggregating $13.7 million pre-tax in its results of operations for the quarter ended June 30, 2002. Approximately, $6.8 million of this charge was reflected in the income statement caption entitled “net realized gains/(losses) on investments” because it represented the return of proceeds originally included in the determination of the realized gain recognized by the Company in 1999 upon receipt of the aforementioned distribution. The balance of the charge, which was reflected in the income statement caption entitled “other operating costs and expenses” represented management’s best estimate of the interest that the court would have required the Company to pay its former joint venture partner, as well as legal costs. In the first quarter of 2003, the Company settled the litigation for approximately $4.3 million less than the provision previously recorded. Accordingly, during the first quarter of 2003, the Company reversed such over-accrual to income, approximately $3.0 million of which was recorded as realized gains and $1.0 million as a reduction to other expenses. The Company’s appeal was subsequently withdrawn.

(v) In December 2002 the SEC and self-regulatory organizations (National Association of Securities Dealers, Inc. (“NASD”)) directed all broker-dealers, including the Company, to evaluate their procedures with respect to mutual fund sales charge breakpoints. The outcome of the Company’s evaluation, including any determination it made with respect to sales charges paid by its customers, did not have a material adverse effect on the Company’s results of operations, cash flows, or financial position.

(vi) Recently, there has been a significant increase in federal and state regulatory activity in the financial services industry relating to numerous issues, including market timing and late trading of mutual fund and variable insurance products. The Company, like many others in the financial services industry, has received requests for information from the SEC and the NASD

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Commitments and Contingencies: (continued)

seeking documentation and other information relating to these issues. In addition, the SEC recently advised the Company of its plan to conduct an on-site examination of the Company’s variable annuities separate account. The Company has been responding to these requests and continues to cooperate fully with the regulators.

(vii) It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected as a result of the settlement, or re-evaluation of, the matters discussed above. Management believes, however, that the ultimate payments in connection with such matters should not have a material adverse affect on the Company’s financial statements. In addition to the matters discussed above, the Company is involved in various other legal actions and proceedings (some of which involve demands for unspecified damages) in connection with its business. In the opinion of management of the Company, resolution of contingent liabilities, income taxes and other matters will not have a material adverse effect on the Company’s financial position or results of operations.

(viii) At December 31, 2003, the Company had commitments to fund the following: $96.4 million of equity partnership investments, $5.0 million private fixed maturity security with an interest rate of 5.7%, $3.2 million of fixed rate agricultural loans with periodic interest rate reset dates with initial rates ranging from 5.25% to 6.35%, $132.7 million fixed and floating rate commercial mortgages with interest rates ranging from 3.67% to 8.0%.

(ix) The Company has entered into various operating lease agreements for office space, furniture and equipment. These leases have remaining non-cancelable lease terms in excess of one year. Total rental expense for these operating leases, which includes lease abandonment charges taken in connection with the Company’s reorganization activities (see Note 25), amounted to $25.6 million in 2003, $32.6 million in 2002, and $44.0 million in 2001. The future minimum rental obligations for the next five years and thereafter under these leases are: $30.4 million for 2004, $27.1 million for 2005, $23.8 million for 2006, $22.1 million for 2007, $20.7 million for 2008, and $86.7 million for the years thereafter.

In 1988, the Company financed one of its real estate properties under a sale/leaseback arrangement with the proceeds received from the sale, amortized into income over the life of the lease. The lease has a term of 20 years beginning December 21, 1988 and requires minimum annual rental payments of $7.9 million in 2004, $8.0 million in 2005, $8.2 million in 2006, $8.4 million for 2007 and $8.5 million for 2007. The Company has the option to renew the lease at the end of the lease term.

19. Statutory Financial Information and Regulatory Risk-Based Capital:

The combined statutory net loss reported by the Company for the years ended December 31, 2003, 2002, and 2001 was $38.5 million, $83.5 million, and $30.2 million, respectively. The combined statutory surplus of the Company as of December 31, 2003 and 2002 was $926.8 million and $906.4 million, respectively. Each of MONY Life, MLOA and USFL exceeds the minimum risk based capital requirements imposed by their respective state of domicile.

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

20. Closed Block — Summary Financial Information:

Summarized financial information of the Closed Block as of and for the years ended December 31, 2003 and 2002 is presented below.


	December 31, 2003		December 31, 2002
	($ in millions)

Assets:

Fixed maturity securities:

Available-for-sale, at estimated fair value (amortized cost, $4,087.4 and $3,873.2)	$	4,348.9	$	4,160.9

Mortgage loans on real estate		593.6		633.6

Real estate		10.7		8.3

Other invested assets		9.8		0.9

Policy loans		1,078.0		1,119.0

Cash and cash equivalents		33.6		59.2

Premiums receivable		9.7		11.1

Deferred policy acquisition costs		368.8		430.5

Other assets		206.9		210.5


Total Closed Block assets	$	6,660.0	$	6,634.0


Liabilities:

Future policy benefits	$	6,930.9	$	6,901.4

Policyholders’ account balances		290.2		291.6

Other policyholders’ liabilities		140.9		159.1

Other liabilities		326.9		328.0


Total Closed Block liabilities	$	7,688.9	$	7,680.1


	For the Years Ended December 31,
	2003		2002			2001
	($ in millions)

Revenues:

Premiums	$	479.2	$	509.1		$	551.4

Net investment income		393.5		396.5			397.6

Net realized gains/(losses) on investments		12.2		(51.4	)		6.0

Other income		1.9		2.2			2.4


Total revenues		886.8		856.4			957.4


Benefits and Expenses:

Benefits to policyholders		562.6		566.8			606.9

Interest credited to policyholders’ account balances		8.8		8.6			8.9

Amortization of deferred policy acquisition costs		45.2		49.1			59.4

Dividends to policyholders		220.7		185.5			233.1

Other operating costs and expenses		6.5		6.1			7.0


Total benefits and expenses		843.8		816.1			915.3


Contribution from the Closed Block	$	43.0	$	40.3		$	42.1

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

20. Closed Block—Summary Financial Information: (continued)

The carrying value of fixed maturity securities in the Closed Block at December 31, 2003 and 2002 is net of “other than temporary impairment” adjustments of $56.4 million and $60.5 million, respectively.

At December 31, 2003 and 2002, there were $15.1 million and $0.6 million of fixed maturity securities in the Closed Block which have been non-income producing for the twelve months preceding such dates.

At December 31, 2003 and 2002, there were problem fixed maturity securities in the Closed Block of $129.9 million and $123.3 million, respectively. There were no potential problem or restructured fixed maturity securities at December 31, 2003 and 2002.

The amortized cost and estimated fair value of fixed maturity securities in the Closed Block, by contractual maturity dates, excluding scheduled sinking funds, as of December 31, 2003 are as follows:


	Amortized Cost		Estimated Fair Value
	($ in millions)

Due in one year or less	$	130.3	$	134.0

Due after one year through five years		1,007.7		1,097.1

Due after five years through ten years		1,496.5		1,612.1

Due after ten years		1,054.1		1,083.1


Subtotal		3,688.6		3,926.3

Mortgage and asset-backed securities		398.8		422.6


	$	4,087.4	$	4,348.9

Mortgage loans on real estate in the Closed Block at December 31, 2003 and 2002 consist of the following:


	2003			2002
	($ in millions)

Commercial mortgage loans	$	556.1		$	599.4

Agricultural and other loans		44.8			42.7


Subtotal		600.9			642.1

Less: valuation allowances		(7.4	)		(8.6	)


Mortgage loans, net of valuation allowances	$	593.5		$	633.5

An analysis of the valuation allowances for the years ended December 31, 2003 and 2002 is as follows:


	2003			2002
	($ in millions)

Beginning balance	$	8.6		$	12.3

(Decrease)/increase in allowance		(1.2	)		0.8

Reduction due to paydowns, payoffs, and writeoffs		—			(1.3	)

Transfer to real estate — foreclosures		—			(3.2	)


Valuation allowances	$	7.4		$	8.6

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

20. Closed Block—Summary Financial Information: (continued)

Impaired mortgage loans along with related valuation allowances as of December 31, 2003 and 2002 were as follows:


	2003			2002
	($ in millions)

Investment in impaired mortgage loans (before valuation allowances):

Loans that have valuation allowances	$	9.5		$	47.4

Loans that do not have valuation allowances		14.2			73.2


Subtotal		23.7			120.6

Valuation allowances		(2.6	)		(10.7	)


Impaired mortgage loans, net of valuation allowances	$	21.1		$	109.9

For the years ended December 31, 2003 and 2002, the Closed Block recognized $1.8 million and $9.9 million, respectively, of interest income on impaired loans.

At December 31, 2003 and 2002, there were $0.0 million and $0.1 million, respectively, of mortgage loans in the Closed Block which were non-income producing for the twelve months preceding such dates.

At December 31, 2003 and 2002, the Closed Block had restructured mortgage loans of $4.7 million and $8.5 million, respectively. Interest income of $0.4 million and $0.6 million was recognized on such loans for the years ended December 31, 2003 and 2002, respectively. Gross interest income on these loans that would have been recorded in accordance with the original terms of such loans amounted to approximately $0.6 million and $1.0 million for the respective periods.

The pre-tax Contribution from the Closed Block includes only those revenues, benefit payments, dividends, premium taxes, state guaranty fund assessments, and investment expenses considered in funding the Closed Block. However, many expenses associated with operating the Closed Block and administering the policies included therein were excluded from and, accordingly, are not funded in the Closed Block. These expenses are reported in the Company’s statement of income and comprehensive income in the separate line items to which they apply based on the nature of such expenses. Federal income taxes applicable to the Closed Block, which are funded in the Closed Block, are reflected as a component of federal income tax expense in the Company’s statement of income and comprehensive income. Since many expenses related to the Closed Block are funded outside the Closed Block, operating costs and expenses outside the Closed Block are disproportionate to the level of business outside the Closed Block.

21. The Closed Block Business:

The Closed Block Business (“CBB”) is comprised of certain amounts within MONY Holdings and MONY Life. Within MONY Holdings, the CBB includes: (i) the Insured Notes, (ii) the capitalized costs of issuing the Insured Notes, (iii) the DSCA Sub-account CBB (see Note 22), (iv) the Swap, and (v) the Insurance Policy (see Note 1). Within MONY Life, the CBB includes: (i) the Closed Block discussed in Notes 3 and 20 and (ii) an amount of capital (hereafter referred to as “Surplus and Related Assets”) outside the Closed Block, but within MONY Life, that when aggregated with the assets and liabilities in the Closed Block results in an aggregate carrying value of assets in the CBB within MONY Life in excess of the carrying value of the liabilities in the CBB within MONY Life. The amount by which the assets in the CBB within MONY Life exceed the liabilities in the CBB within MONY Life represents a sufficient amount of capital based on regulatory standards to support the CBB within MONY Life. All business of MONY Holdings and its subsidiary, consolidated, other than the CBB is defined in the Insured Notes indenture as the Ongoing Business (“OB”). The determination of the amount of Surplus and Related Assets was based on Statutory Accounting Practices as required by the Insured Notes indenture. As the Closed Block’s results of operations emerge, an equal amount of the Surplus and Related Assets is intended to become available to the OB. The investment of the Surplus and Related Assets is restricted to permitted investments and subject to certain concentration limitations as outlined in the Insured Note indenture (see Note 1).

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

21. The Closed Block Business: (continued)

The following tables set forth certain summarized financial information attributable to the OB and the CBB of MONY Holdings and its subsidiary, MONY Life, as of and for the years ended December 31, 2003 and 2002:


	As of December 31, 2003
	Ongoing Business		Closed Block Business(1)		Total
	($ in millions)

Assets:

Fixed maturity securities available-for-sale, at fair value	$	2,589.6	$	5,806.7	$	8,396.3

Fixed maturity securities, trading		78.3		—		78.3

Equity securities available-for-sale, at fair value		251.7		—		251.7

Mortgage loans on real restate		918.9		863.5		1,782.4

Real estate held for investment		163.4		10.7		174.1

Other invested assets		77.3		22.2		99.5

Policy loans		102.0		1,078.0		1,180.0

Debt service coverage account — OB		66.9		—		66.9

Debt service coverage account — CBB		—		7.5		7.5

Cash and cash equivalents		289.9		60.9		350.8

Accrued investment income		55.2		149.2		204.4

Amounts due from reinsurers		516.4		88.6		605.0

Deferred policy acquisition costs		956.6		368.8		1,325.4

Other assets		532.5		17.3		549.8

Separate account assets		4,854.9		—		4,854.9


Total assets	$	11,453.6	$	8,473.4	$	19,927.0


Liabilities:

Future policy benefits	$	1,110.6	$	6,930.9	$	8,041.5

Policyholders’ account balances		2,975.6		290.2		3,265.8

Other policyholders’ liabilities		127.0		140.9		267.9

Other liabilities		793.5		394.9		1,188.4

Long term debt		216.9		300.0		516.9

Separate account liabilities		4,851.9		—		4,851.9


Total liabilities	$	10,075.5	$	8,056.9	$	18,132.4

(1)	Includes the assets and liabilities of MONY Holdings as of December 31, 2003.

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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

21. The Closed Block Business: (continued)


	As of December 31, 2002
	Ongoing Business		Closed Block Business(1)		Total
	($ in millions)

Assets:

Fixed maturity securities available-for-sale, at fair value	$	2,248.4	$	5,579.8	$	7,828.2

Equity securities available-for-sale, at fair value		247.7		—		247.7

Mortgage loans on real restate		927.0		950.4		1,877.4

Real estate to be disposed of		26.8		—		26.8

Real estate held for investment		171.9		8.3		180.2

Other invested assets		82.9		14.4		97.3

Policy loans		93.5		1,119.0		1,212.5

Debt service coverage account — OB		64.7		—		64.7

Debt service coverage account — CBB		—		9.4		9.4

Cash and cash equivalents		128.7		95.0		223.7

Accrued investment income		54.3		149.7		204.0

Amounts due from reinsurers		602.5		92.7		695.2

Deferred policy acquisition costs		795.9		430.5		1,226.4

Other assets		526.1		17.7		543.8

Separate account assets		4,140.6		—		4,140.6


Total assets	$	10,111.0	$	8,466.9	$	18,577.9


Liabilities:

Future policy benefits	$	1,048.5	$	6,901.4	$	7,949.9

Policyholders’ account balances		2,488.1		291.6		2,779.7

Other policyholders’ liabilities		130.1		159.1		289.2

Other liabilities		761.5		421.2		1,182.7

Long term debt		216.9		300.0		516.9

Separate account liabilities		4,137.6		—		4,137.6


Total liabilities	$	8,782.7	$	8,073.3	$	16,856.0

(1)	Includes the assets and liabilities of MONY Holdings as of December 31, 2002.

F-110

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

21. The Closed Block Business: (continued)


	For the Year Ended December 31, 2003
	Ongoing Business		Closed Block Business(1)		Total
	($ in millions)

Revenues:

Premiums	$	226.0	$	479.2	$	705.2

Universal life and investment-type product policy fees		210.9		—		210.9

Net investment income		231.2		495.7		726.9

Net realized losses on investments		25.4		21.0		46.4

Other income		224.6		2.0		226.6


Total revenues		918.1		997.9		1,916.0

Benefits and Expenses:

Benefits to policyholders		278.9		562.6		841.5

Interest credited to policyholders’ account balances		130.6		8.8		139.4

Amortization of deferred policy acquisition cost		74.8		45.2		120.0

Dividends to policyholders		3.6		220.7		224.3

Other operating costs and expenses		424.6		115.7		540.3


Total benefits and expenses		912.5		953.0		1,865.5


Net income from continuing operations before income taxes	$	5.6	$	44.9	$	50.5

(1)	Includes: (i) revenues and expenses associated with the DSCA, the Insured Notes and the Swap (ii) the net contribution to income from the Surplus and Related Assets, and (iii) the results of operations from the Closed Block.


	For the Year Ended December 31, 2002
	Ongoing Business			Closed Block Business(1)			Total
	($ in millions)

Revenues:

Premiums	$	181.3		$	509.1		$	690.4

Universal life and investment-type product policy fees		200.5			—			200.5

Net investment income		247.0			480.1			727.1

Net realized losses on investments		(76.8	)		(74.2	)		(151.0	)

Group Pension Profits		82.3			—			82.3

Other income		167.0			2.3			169.3


Total revenues		801.3			917.3			1,718.6

Benefits and Expenses:

Benefits to policyholders		236.3			566.8			803.1

Interest credited to policyholders’ account balances		110.7			8.6			119.3

Amortization of deferred policy acquisition cost		107.0			49.1			156.1

Dividends to policyholders		2.5			185.5			188.0

Other operating costs and expenses		393.3			81.4			474.7


Total benefits and expenses		849.8			891.4			1,741.2


Net (loss)/income from continuing operations before income taxes	$	(48.5	)	$	25.9		$	(22.6	)

F-111

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

21. The Closed Block Business: (continued)

(1)

Includes: (i) revenues and expenses associated with the DSCA, the Insured Notes and the Swap for the period from April 30, 2002 (the date of MONY Holdings’ commencement of operations) through December 31, 2002, (ii) the net contribution to income from the Surplus and Related Assets from April 30, 2002 (the date of MONY Holdings’ commencement of operations) through December 31, 2002, and (iii) the results of operations from the Closed Block from January 1, 2002 through December 31, 2002.

The statutory surplus of MONY Life as of December 31, 2003 and 2002 was $926.8 million and $906.4 million, respectively, of which $436.8 million and $409.8 million, respectively, was attributable to the OB and $490.0 million and $496.6 million, respectively, was attributable to the CBB. The statutory net gain from operations of MONY Life for the years ended December 31, 2003 and 2002 was $87.4 million and $154.6 million, respectively, of which $9.2 million and $59.3 million, respectively, was attributable to the OB and $78.2 million and $95.3 million, respectively, was attributable to the CBB. The net gain from operations attributable to the CBB includes: (i) the net contribution to income from the Surplus and Related Assets and (ii) the results of operations from the Closed Block.

22. The Insured Notes:

Dividends from MONY Life are the principal source of cash inflow, which will enable MONY Holdings to meet its obligations under the Insured Notes. The ability of MONY Life to declare and pay MONY Holdings a dividend is governed by the Insurance Law of the State of New York. The Insurance Law of the State of New York permits a stock life insurance company to pay dividends each calendar year, without the prior approval of the superintendent of the insurance department, in an amount equal to the lesser of (a) ten percent of its “policyholders’ surplus” as of the end of the preceding calendar year or (b) the company’s “net gain from operations” for the preceding calendar year (not including realized capital gains), as determined in accordance with Statutory Accounting Practices prescribed or permitted by the Insurance Department of the State of New York (hereafter referred to as the “NY Dividend Statute”).

In addition, pursuant to the Note indenture, dividends to MONY Holdings from MONY Life are required to be allocated between the OB and the CBB. This allocation, while principally based on separately applying the NY Dividend Statute to the “policyholders’ surplus” and “net gain from operations” attributable to the OB and the CBB, is subject to certain adjustments described in the Note indenture. The amount of the dividend attributable to the CBB is required to be deposited in the DSCA — Subaccount CBB. As described in the Note indenture, the amount of the dividend deposited in the DSCA — Subaccount CBB will not generally be available for dividend to the MONY Group until all the obligations to pay principal, interest and other amounts on the Insured Notes are fully extinguished. Under limited circumstances, if the fair value of the DSCA exceeds amounts set forth in the Note indenture, such excess can become available earlier for dividend to the MONY Group. The amount of such dividend attributable to the OB will generally be available to MONY Holdings to pay dividends to the MONY Group. See Note 1 for additional information regarding the Insured Notes.

In 2003, MONY Life paid a dividend to MONY Holdings in the amount of $25.0 million, of which $13.8 million was retained by MONY Holdings in its DSCA Sub-account CBB and $11.2 million was paid by MONY Holdings in the form of a dividend to MONY Group. In 2002, MONY Life paid a dividend to MONY Holdings in the amount of $90.0 million, of which $15.6 million was retained by MONY Holdings in the DSCA Sub-account CBB and $74.4 million was paid by MONY Holdings in the form of a dividend to MONY Group.

F-112

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

23. Stock-Based Compensation:

Stock Incentive Plans —

1998 Stock Incentive Plan and 2002 Stock Option Plan

In November 1998, upon approval of the New York Insurance Department, MONY Group adopted the 1998 Stock Incentive Plan (the “1998 SIP”) for employees of the Company and certain of its career financial professionals, as well as certain employees of other subsidiaries of the MONY Group. As a condition for its approval of the 1998 SIP, the New York Insurance Department restricted options under the plan to no more than five percent of the shares of MONY Group’s common stock outstanding as of the date of its initial public offering (2,361,908 shares). Options granted under the 1998 SIP may be Incentive Stock Options (“ISOs”) qualifying under Section 422(a) of the Internal Revenue Code or Non-Qualified Stock Options (“NQSOs”).

Pursuant to the 1998 SIP, options may be granted at a price not less than 100% of the fair value of MONY Group’s common stock as determined on the date of grant. In addition, one-third of each option granted pursuant to the 1998 SIP shall become exercisable on each of the first three anniversaries following the date such option is granted and will remain exercisable for a period not to exceed 10 years from the date of grant. As of December 31, 2003, options to acquire 2,404,138 common shares of the MONY Group had been issued to employees and certain career financial professionals of the Company under the 1998 SIP. Options to acquire 1,627,782 of these common shares remained outstanding as of December 31, 2003.

In May 2002, MONY Group’s shareholders approved the 2002 Stock Option Plan (the “2002 SOP”) and the allocation of 5,000,000 shares of MONY Group common stock for grants under that 2002 SOP Plan. Options granted under the plan may not be exercised, transferred or otherwise disposed of by the grantee prior to December 24, 2003, even if vested. Options granted under the 2002 SOP are NQSOs. Options may be granted at a price not less than 100% of the fair value of MONY Group’s common stock as determined on the date of grant, and vesting provisions are determined at the discretion of the MONY Group’s board of directors. As of December 31, 2003, options to acquire 1,881,425 common shares of the MONY Group had been issued to employees and certain career financial professionals of the Company and 1,881,425 of these options were outstanding under the 2002 SOP. All options granted through December 31, 2003 under the 2002 SOP vest one-third ratably on the December 31st after each of the first three anniversaries following the date such option was granted, and will remain exercisable for a period not to exceed 10 years from the date of grant.

A summary of the Company’s activity under these stock incentive plans for the years ended December 31, 2003, 2002 and 2001 is presented below:


	Number of Shares		Weighted Average Exercise Price

Outstanding, December 31, 2000	1,684,008		$	31.34

Granted	327,093		$	35.78

Exercised	(17,031	)	$	30.10

Forfeited, expired or cancelled	(71,749	)	$	33.80


Outstanding, December 31, 2001	1,922,321		$	32.02

Granted	1,405,495		$	35.77

Exercised	(33,114	)	$	30.85

Forfeited, expired or cancelled	(166,319	)	$	33.68


Outstanding, December 31, 2002	3,128,383		$	33.60

Granted	836,025		$	21.96

Exercised	(327,327	)	$	30.19

Forfeited, expired or cancelled	(127,874	)	$	33.17


Outstanding, December 31, 2003	3,509,207		$	31.17

F-113

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

23. Stock-Based Compensation: (continued)

During 2003 there were 836,025 options granted with a weighted average exercise price of $21.96 and a weighted average fair value of $7.59.

As of December 31, 2003 there were 1,729,280 options exercisable, with exercise prices ranging from $27.06 to $44.25, and a weighted average remaining contractual life of 6.7 years.

At December 31, 2003 there were 3,509,207 options outstanding with exercise prices ranging from $20.90 to $44.25, and a weighted average remaining contractual life of approximately 7.7 years. Approximately 28.4% or 996,940 of the options outstanding at December 31, 2003 had an exercise price of $30.50. These options had a remaining contractual life of approximately 5.9 years.

At the effective date of the initial grants of options pursuant to the 1998 SIP, the Company elected to apply the accounting prescribed by APB 25 to option grants to employees and, accordingly, make the required pro forma disclosures of net income and earnings per share as if the fair value accounting prescribed by SFAS 123 had been adopted (see Note 4). Pursuant to the requirements of APB 25, the options granted by the Company under the 1998 SIP and the 2002 SOP to employees qualify as non-compensatory. Accordingly, the Company is not required to recognize any compensation expense with respect to such option grants. Based on the definition of an “employee” prescribed in the Internal Revenue Code, the Company’s career financial professionals do not qualify as employees. Accordingly, with respect to grants of options under both the SIP and the SOP to career financial professionals, the Company adopted the accounting provisions of SFAS 123. Pursuant to the guidance in SFAS 123 and related interpretations, vesting provisions attached to stock based compensation issued to non-employees constitute a performance based condition which requires variable plan accounting. Under variable plan accounting, the fair value of the option grant must be re-measured at the end of each accounting period, until the options are 100 percent vested. Accordingly, the compensation cost charged to expense during any particular accounting period represents the difference between the vested percentage of the fair value of the options at the end of the accounting period and the cumulative compensation cost charged to expense in prior periods. Compensation cost is determined based on the fair value of such options using a Black-Scholes option-pricing model. Such compensation cost is required to be recognized over the vesting period. The compensation expense related to options granted to career financial professionals varies with and primarily relates to the production of business and as such is recognized as DPAC and is amortized on a basis consistent with how earnings emerge from the underlying products that gave rise to such DPAC. The deferred expense amount relating to options granted to career financial professionals which were outstanding was $0.5 million and $0.0 million for the years ended December 31, 2003 and 2002, respectively.

Restricted Stock Plan —

In May 2001, MONY Group shareholders approved The MONY Group Inc. Restricted Stock Ownership Plan (the “Plan”). Pursuant to the terms of the Plan, management has the authority to grant up to 1,000,000 restricted shares of MONY Group common stock to eligible employees, as defined in the Plan, and to establish vesting and forfeiture conditions relating thereto. During 2002 and 2001, MONY Group granted 97,143 and 352,050 restricted shares, respectively, to certain members of management pursuant to the Plan. The 2002 and 2001 awards made under the Plan are conditioned on: (i) the expiration of a vesting period and (ii) an increase in the average per share price of MONY Group common stock above specified targets. In accordance with APB No. 25, compensation expense is recognized on the awards proportionally over the vesting period of the award provided that the condition with respect to the average price of MONY Group common stock is satisfied at the end of any period. In March 2003, MONY Group granted 334,050 restricted shares to certain members of management under the Plan. The 2003 awards made under the Plan are conditioned only on the expiration of a vesting period.

F-114

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

24. Goodwill and Other Intangible Assets

In accordance with the adoption of SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS 142”) goodwill is periodically tested for impairment and is no longer amortized. The following tables set forth the impact of the adoption of SFAS 142 on the Company’s net income for the years ended December 31, 2003, 2002 and 2001. In addition, as required by SFAS 142, management tested the carrying value of the Company’s goodwill at December 31, 2003 and determined that no impairment exists.


	For the Years Ended December 31,
	2003		2002			2001
	($ in millions)

Reported net income/(loss)	$	56.2	$	(5.6	)	$	(34.0	)

Add back: goodwill amortization		—		—			1.3


Adjusted net income/(loss)	$	56.2	$	(5.6	)	$	32.7

The goodwill amortization recorded for the year ended December 31, 2001 was included in the Protection Products and Other Products segments as follows:


	For the Year Ended December 31, 2001
	($ in millions)

Protection Products	$	1.1

Other Products		0.2


Total	$	1.3

The following table summarizes the significant components of goodwill, and the related amortization, by segment for the periods presented. Goodwill is reflected under the caption “other assets” in the Company’s balance sheet.


	2003				2002
	Protection Products Segment		Other Products Segment		Protection Products Segment		Other Products Segment
	($ in millions)

Beginning Balance	$	17.9	$	1.3	$	17.9	$	1.3

Amortization		—		—		—		—


Ending Balance	$	17.9	$	1.3	$	17.9	$	1.3

25. Reorganization and Other Charges:

During 2003, the Company recorded charges aggregating $5.8 million as part of the Company’s continuing initiative to enhance operating efficiency and effectively allocate resources. These charges consisted of: (i) severance and related benefits of $1.1 million incurred in connection with the merger of MONY Asset Management, Inc.’s (“MAM”) operations into Boston Advisors, a subsidiary of The Advest Group, Inc., and the resulting termination of certain employees of MONY Life that provided professional services to MAM pursuant to a service agreement between MAM and MONY Life; (ii) losses from the abandonment of leased offices of $1.3 million; (iii) losses from the abandonment of leased space in the Company’s home office of $2.0 million; (iv) write-offs of unused furniture and equipment in certain abandoned agency offices of $1.3 million; and (v) moving and alteration costs incurred in connection with the consolidation of leased space in the Company’s home office of $0.2 million. The severance actions were substantially completed during the fourth quarter of 2003. The reserves established for the abandonment of leased agency offices and leased space in the Company’s home office are expected to run-off through 2008 and 2016, respectively. All of the charges recorded in 2003 represent “costs associated with exit or disposal activities” as described in SFAS 146, Accounting for Costs Associated with Exit or Disposal Activities (“SFAS 146”).

F-115

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

25. Reorganization and Other Charges: (continued)

During the fourth quarter of 2002 and 2001, the Company recorded reorganization and other charges aggregating approximately $7.2 million and $144.4 million, respectively, as part of the Company’s initiative to enhance operating efficiency, more effectively allocate resources and capital, and discontinue certain non-core operations. Of these charges, $7.2 million and $19.0 million, respectively, met the definition of “restructure charges” as defined by Emerging Issues Task Force Consensus 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)”. The 2002 restructure charge consisted of severance and related benefits resulting from headcount reductions of 161 and 26, respectively, in the Company’s home office and career agency system, as well as losses from the abandonment of certain leased offices and equipment. The 2001 restructure charge consisted of severance and related benefits of $10.3 million resulting from headcount reductions of 117 and 240, in the Company’s home office and career agency system, respectively, and $8.7 million of other miscellaneous items. These actions were substantially completed in 2002. The remaining restructuring reserves primarily relate to lease abandonment costs and are expected to run-off through 2007. The balance of the charge in 2001, $125.4 million, was unrelated to the Company’s restructure activities and consisted of: (i) impairments of certain invested assets and valuation related write -downs of private equity securities held in the Company’s equity method venture capital portfolio, (ii) the write-off of deferred sales charges in the Company’s mutual fund business to reflect revised estimates of recoverability which are principally due to the decline in the value of the Company’s internet funds, (iii) write-downs of certain information technology assets, and (iv) other miscellaneous items.

The following tables summarize the components of the aforementioned charges recorded in 2003, 2002 and 2001, respectively. None of the charges referred to below as “Reorganization Charges” have been allocated to the Company’s operating segments, however, the charges in 2001 referred to as “Other Charges” have been allocated to the Company’s operating segments. All Reorganization Charges incurred in 2003, 2002 and 2001 are reported as reconciling items.

2003:


	Operating		Net Realized Losses		Total
	($ in millions)

Reorganization Charges (1):

Severance benefits and incentive compensation	$	1.1	$	—	$	1.1

Leased offices and equipment		2.5		—		2.5

Lease abandonment and other		2.2		—		2.2


Total Reorganization Charges before tax	$	5.8	$	—	$	5.8


Total Reorganization Charges after tax	$	3.8	$	—	$	3.8

(1)	All of the reorganization charges recorded in 2003 are “costs associated with exit or disposal activities” as described in SFAS 146.

F-116

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

25. Reorganization and Other Charges: (continued)

2002:


	Operating		Net Realized Losses		Total
	($ in millions)

Reorganization Charges (1):

Severance benefits and incentive compensation	$	6.1	$	—	$	6.1

Leased offices and equipment		1.1		—		1.1


Total Reorganization Charges before tax	$	7.2	$	—	$	7.2


Total Reorganization Charges after tax	$	4.7	$	—	$	4.7

(1)	All of the reorganization charges recorded in 2002 meet the definition of “restructuring charges” as defined by EITF 94-3.

2001:


	Operating		Net Realized Losses		Total
	($ in millions)

Reorganization Charges:

Severance benefits and incentive compensation	$	22.8	$	—	$	22.8

Leased offices and equipment		8.7		—		8.7

Deferred policy acquisition costs		17.0		—		17.0

Other		8.3		—		8.3


Subtotal — Reorganization Charges		56.8		—		56.8

Other Charges:

Asset impairments and valuation related write-downs		29.9		20.1		50.0

Deferred sales charges		7.0		—		7.0

Information technology assets		9.4		—		9.4

Other		21.2		—		21.2


Subtotal — Other Charges		67.5		20.1		87.6


Total — Reorganization and Other Charges before tax	$	124.3	$	20.1	$	144.4


Total — Reorganization and Other Charges after tax	$	80.8	$	13.1	$	93.9

All charges referred to as Reorganization Charges included in the tables above, except $17.0 million related to DPAC in 2001 and $5.3 million related to investment expenses in 2001, are included in “other operating costs and expenses” in the Company’s 2001 consolidated statement of income and comprehensive income.

F-117

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

25. Reorganization and Other Charges: (continued)

The following table indicates the line items in the Company’s consolidated and segmented income statements for the year ended December 31, 2001 that the Other Charges in the table above are reflected in.


	Protection		Accumulation		Other		Reconciling		Total
	($ in millions)

Premiums	$	1.0	$	—	$	—	$	—	$	1.0

Net investment income		20.3		3.8		3.3		5.3		32.7

Group pension profit		2.5		—		—		—		2.5

Benefits to policyholders		1.8		3.9		—		—		5.7

Amortization of deferred policy acquisition costs		—		2.0		—		17.0		19.0

Other operating costs and expenses		17.6		10.3		1.0		34.5		63.4


Total Other Operating Charges		43.2		20.0		4.3		56.8		124.3


Net realized losses on investments		14.9		2.8		2.4		—		20.1


Total Reorganization and Other Charges	$	58.1	$	22.8	$	6.7	$	56.8	$	144.4

Set forth below is certain information regarding the liability recorded in connection with the Company’s restructuring actions, as well as the changes therein during the year ended December 31, 2003. Such liability is reflected in “accounts payable and other liabilities” on the Company’s consolidated statement of financial position.


	December 31, 2002		Charges		Cash Payments			Change in Reserve Estimates			December 31, 2003
	($ in millions)

Restructuring Charges Liability:

Severance benefits	$	7.8	$	1.1	$	(7.3	)	$	(0.7	)	$	0.9

Other restructure charges (1)		4.4		4.7		(5.5	)		—			3.6


Total Restructuring Charges Liability	$	12.2	$	5.8	$	(12.8	)	$	(0.7	)	$	4.5

(1)	Cash payments include in 2003 the non-cash write-off of $1.3 million in unused equipment in certain abandoned leased offices.

F-118

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