ESTATE DESIGNER
FIRSTLINE
FIRSTLINE II
VARIABLE SURVIVORSHIP
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
issued by
Security Life of Denver Insurance Company
and its
Security Life Separate Account L1
Supplement Effective as of April 29, 2011
This supplement updates and amends certain information contained in your current variable life insurance
prospectus and supplements thereto. Please read it carefully and keep it with your prospectus for future reference.
__________________________________________________________________________
IMPORTANT INFORMATION REGARDING
FUND NAME CHANGES
Effective April 29, 2011, certain of the funds available through Security Life Separate Account L1 will change their names as follows:
Former Fund Name | Current Fund Name |
ING Columbia Small Cap Value Portfolio | ING Columbia Small Cap Value II Portfolio |
ING Van Kampen Comstock Portfolio | ING Invesco Van Kampen Comstock Portfolio |
ING Van Kampen Equity and Income Portfolio | ING Invesco Van Kampen Equity and Income Portfolio |
ING Van Kampen Growth and Income Portfolio | ING Invesco Van Kampen Growth and Income Portfolio |
ING Wells Fargo Health Care Portfolio | ING BlackRock Health Sciences Opportunities Portfolio |
IMPORTANT INFORMATION ABOUT THE FUNDS AVAILABLE
THROUGH THE POLICIES
The following chart lists the funds that are, effective April 29, 2011, available through the policies, along with each fund’s investment adviser/subadviser and investment objective. More detailed information about these funds can be found in the current prospectus and Statement of Additional Information for each fund. If you received a summary prospectus for any of the funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus.
There is no assurance that the stated investment objectives of any of the funds will be achieved. Shares of the funds will rise and fall in value and you could lose money by allocating policy value to the subaccounts that invest in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the 1940 Act.
X.EFFV-11 | Page 1 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
American Funds® – Growth Fund | Investment Adviser: | Seeks growth of capital by investing |
(Class 2) | Capital Research and Management | primarily in common stocks. |
CompanySM | ||
American Funds® – Growth- | Investment Adviser: | Seeks capital growth over time and |
Income Fund (Class 2) | Capital Research and Management | income by investing primarily in U.S. |
CompanySM | common stocks or other securities that | |
demonstrate the potential for | ||
appreciation and/or dividends. | ||
American Funds® – International | Investment Adviser: | Seeks growth of capital over time by |
Fund (Class 2) | Capital Research and Management | investing primarily in common stocks |
CompanySM | of companies located outside the | |
United States. | ||
BlackRock Global Allocation V.I. | Investment Adviser: | Seeks to provide high total return |
Fund (Class III) | BlackRock Advisors, LLC | through a fully managed investment |
Subadvisers: | policy utilizing U.S. and foreign | |
BlackRock Investment Management, | equity, debt and money market | |
LLC; BlackRock International Limited | instruments, the combination of which | |
will be varied from time to time both | ||
with respect to types of securities and | ||
markets in response to changing | ||
market and economic trends. | ||
Fidelity® VIP Contrafund® | Investment Adviser: | Seeks long-term capital appreciation. |
Portfolio (Service Class) | Fidelity Management & Research | |
Company | ||
Subadvisers: | ||
FMR Co., Inc. and other affiliates of Fidelity Management & Research |
||
Company | ||
Fidelity® VIP Equity-Income | Investment Adviser: | Seeks reasonable income. Also |
Portfolio (Service Class) | Fidelity Management & Research | considers the potential for capital |
Company | appreciation. Seeks to achieve a yield | |
Subadvisers: | which exceeds the composite yield on | |
FMR Co., Inc. and other affiliates of | the securities comprising the S&P | |
Fidelity Management & Research | 500® Index. | |
Company | ||
ING Artio Foreign Portfolio | Investment Adviser: | Seeks long-term growth of capital. |
(Class I) | Directed Services LLC | |
Subadviser: | ||
Artio Global Management, LLC | ||
ING Blackrock Health Sciences | Investment Adviser: | Seeks long-term capital growth. |
Opportunities Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
BlackRock Advisors, LLC | ||
ING BlackRock Large Cap Growth | Investment Adviser: | Seeks long-term growth of capital. |
Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
BlackRock Investment Management, LLC |
||
ING Clarion Global Real Estate | Investment Adviser: | Seeks high total return, consisting of |
Portfolio (Class S) | ING Investments, LLC | capital appreciation and current |
Subadviser: | income. | |
ING Clarion Real Estate Securities | ||
LLC |
X.EFFV-11 | Page 2 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
ING DFA Global Allocation | Investment Adviser: | Seeks high level of total return, |
Portfolio (Class I) 1 | Directed Services LLC | consisting of capital appreciation and |
Subadviser: | income. | |
Dimensional Fund Advisors LP | ||
ING DFA World Equity Portfolio | Investment Adviser: | Seeks long-term capital appreciation. |
(Class I) 1 | Directed Services LLC | |
Subadviser: | ||
Dimensional Fund Advisors LP | ||
ING FMRSM Diversified Mid Cap | Investment Adviser: | Seeks long-term growth of capital. |
Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
Fidelity Management & Research | ||
Company | ||
ING Franklin Templeton Founding | Investment Adviser: | Seeks capital appreciation and |
Strategy Portfolio (Class I) 1 | Directed Services LLC | secondarily, income. |
ING Global Resources Portfolio | Investment Adviser: | A non-diversified portfolio that seeks |
(Class I) | Directed Services LLC | long-term capital appreciation. |
Subadviser: | ||
ING Investment Management Co. | ||
ING Invesco Van Kampen Growth | Investment Adviser: | Seeks long-term growth of capital and |
and Income Portfolio (Class S) | Directed Services LLC | income. |
Subadviser: | ||
Invesco Advisers, Inc. | ||
ING JPMorgan Emerging Markets | Investment Adviser: | Seeks capital appreciation. |
Equity Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
J.P. Morgan Investment Management Inc. |
||
ING JPMorgan Small Cap Core | Investment Adviser: | Seeks capital growth over the long |
Equity Portfolio (Class I) | Directed Services LLC | term. |
Subadviser: | ||
J.P. Morgan Investment Management Inc. |
||
ING Large Cap Growth Portfolio | Investment Adviser: | Seeks long-term capital growth. |
(Class I) | Directed Services LLC | |
Subadviser: | ||
ING Investment Management Co. | ||
ING Limited Maturity Bond | Investment Adviser: | Seeks highest current income |
Portfolio (Class S) | Directed Services LLC | consistent with low risk to principal |
Subadviser: | and liquidity and secondarily, seeks to | |
ING Investment Management Co. | enhance its total return through capital | |
appreciation when market factors, | ||
such as falling interest rates and rising | ||
bond prices, indicate that capital | ||
appreciation may be available without | ||
significant risk to principal. | ||
ING Liquid Assets Portfolio | Investment Adviser: | Seeks high level of current income |
(Class I) | Directed Services LLC | consistent with the preservation of |
Subadviser: | capital and liquidity. | |
ING Investment Management Co. |
X.EFFV-11 | Page 3 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
ING MFS Total Return Portfolio | Investment Adviser: | Seeks above-average income |
(Class I) | Directed Services LLC | (compared to a portfolio entirely |
Subadviser: | invested in equity securities) | |
Massachusetts Financial Services | consistent with the prudent | |
Company | employment of capital. Secondarily | |
seeks reasonable opportunity for | ||
growth of capital and income. | ||
ING MFS Utilities Portfolio | Investment Adviser: | Seeks total return. |
(Class S) | Directed Services LLC | |
Subadviser: | ||
Massachusetts Financial Services | ||
Company | ||
ING Marsico Growth Portfolio | Investment Adviser: | Seeks capital appreciation. |
(Class I) | Directed Services LLC | |
Subadviser: | ||
Marsico Capital Management, LLC | ||
ING PIMCO Total Return Bond | Investment Adviser: | Seeks maximum total return, |
Portfolio (Class I) | Directed Services LLC | consistent with preservation of capital |
Subadviser: | and prudent investment management. | |
Pacific Investment Management | ||
Company LLC | ||
ING Pioneer Fund Portfolio | Investment Adviser: | Seeks reasonable income and capital |
(Class I) | Directed Services LLC | growth. |
Subadviser: | ||
Pioneer Investment Management, Inc. | ||
ING Pioneer Mid Cap Value | Investment Adviser: | Seeks capital appreciation. |
Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
Pioneer Investment Management, Inc. | ||
ING Retirement Growth Portfolio | Investment Adviser: | Seeks a high level of total return |
(Class I) 1 | Directed Services LLC | (consisting of capital appreciation and |
Asset Allocation Consultants: | income) consistent with a level of risk | |
Asset Allocation Committee | that can be expected to be greater than | |
that of the ING Retirement Moderate | ||
Growth Portfolio. | ||
ING Retirement Moderate Growth | Investment Adviser: | Seeks a high level of total return |
Portfolio (Class I) 1 | Directed Services LLC | (consisting of capital appreciation and |
Asset Allocation Consultants: | income) consistent with a level of risk | |
Asset Allocation Committee | that can be expected to be greater than | |
that of ING Retirement Moderate | ||
Portfolio but less than that of ING | ||
Retirement Growth Portfolio. | ||
ING Retirement Moderate Portfolio | Investment Adviser: | Seeks a high level of total return |
(Class I) 1 | Directed Services LLC | (consisting of capital appreciation and |
Asset Allocation Consultants: | income) consistent with a level of risk | |
Asset Allocation Committee | that can be expected to be less than | |
that of ING Retirement Moderate | ||
Growth Portfolio. | ||
ING T. Rowe Price Capital | Investment Adviser: | Seeks, over the long-term, a high total |
Appreciation Portfolio (Class I) | Directed Services LLC | investment return, consistent with the |
Subadviser: | preservation of capital and prudent | |
T. Rowe Price Associates, Inc. | investment risk. |
X.EFFV-11 | Page 4 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
ING T. Rowe Price Equity Income | Investment Adviser: | Seeks substantial dividend income as |
Portfolio (Class I) | Directed Services LLC | well as long-term growth of capital. |
Subadviser: | ||
T. Rowe Price Associates, Inc. | ||
ING T. Rowe Price International | Investment Adviser: | Seeks long-term growth of capital. |
Stock Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
T. Rowe Price Associates, Inc. | ||
ING U.S. Stock Index Portfolio | Investment Adviser: | Seeks total return. |
(Class I) | Directed Services LLC | |
Subadviser: | ||
ING Investment Management Co. | ||
ING Baron Small Cap Growth | Investment Adviser: | Seeks capital appreciation. |
Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
BAMCO, Inc. | ||
ING Columbia Small Cap Value II | Investment Adviser: | Seeks long-term growth of capital. |
Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
Columbia Management Investment Advisers, LLC |
||
ING Global Bond Portfolio | Investment Adviser: | Seeks to maximize total return |
(Class S) | Directed Services LLC | through a combination of current |
Subadviser: | income and capital appreciation. | |
ING Investment Management Co. | ||
ING Invesco Van Kampen | Investment Adviser: | Seeks capital growth and income. |
Comstock Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
Invesco Advisers, Inc. | ||
ING Invesco Van Kampen Equity | Investment Adviser: | Seeks total return, consisting of long- |
and Income Portfolio (Class I) | Directed Services LLC | term capital appreciation and current |
Subadviser: | income. | |
Invesco Advisers, Inc. | ||
ING JPMorgan Mid Cap Value | Investment Adviser: | Seeks growth from capital |
Portfolio (Class I) | Directed Services LLC | appreciation. |
Subadviser: | ||
J. P. Morgan Investment Management Inc. |
||
ING Oppenheimer Global Portfolio | Investment Adviser: | Seeks capital appreciation. |
(Class I) | Directed Services LLC | |
Subadviser: | ||
OppenheimerFunds, Inc. | ||
ING Pioneer High Yield Portfolio | Investment Adviser: | Seeks to maximize total return |
(Class I) | Directed Services LLC | through income and capital |
Subadviser: | appreciation. | |
Pioneer Investment Management, Inc. | ||
ING T. Rowe Price Diversified Mid | Investment Adviser: | Seeks long-term capital appreciation. |
Cap Growth Portfolio (Class I) | Directed Services LLC | |
Subadviser: | ||
T. Rowe Price Associates, Inc. |
X.EFFV-11 | Page 5 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
ING UBS U.S. Large Cap Equity | Investment Adviser: | Seeks long-term growth of capital and |
Portfolio (Class I) | Directed Services LLC | future income. |
Subadviser: | ||
UBS Global Asset Management | ||
(Americas) Inc. | ||
ING Balanced Portfolio (Class I) | Investment Adviser: | Seeks total return consisting of capital |
ING Investments, LLC | appreciation (both realized and | |
Subadviser: | unrealized) and current income; the | |
ING Investment Management Co. | secondary investment objective is | |
long-term capital appreciation. | ||
ING Intermediate Bond Portfolio | Investment Adviser: | Seeks to maximize total return |
(Class I) | ING Investments, LLC | consistent with reasonable risk. The |
Subadviser: | portfolio seeks its objective through | |
ING Investment Management Co. | investments in a diversified portfolio | |
consisting primarily of debt securities. | ||
It is anticipated that capital | ||
appreciation and investment income | ||
will both be major factors in | ||
achieving total return. | ||
ING Growth and Income Portfolio | Investment Adviser: | Seeks to maximize total return |
(Class I) | ING Investments, LLC | through investments in a diversified |
Subadviser: | portfolio of common stocks and | |
ING Investment Management Co. | securities convertible into common | |
stocks. It is anticipated that capital | ||
appreciation and investment income | ||
will both be major factors in | ||
achieving total return. | ||
ING Index Plus LargeCap Portfolio | Investment Adviser: | Seeks to outperform the total return |
(Class I) | ING Investments, LLC | performance of the S&P 500® Index, |
Subadviser: | while maintaining a market level of | |
ING Investment Management Co. | risk. | |
ING Index Plus MidCap Portfolio | Investment Adviser: | Seeks to outperform the total return |
(Class I) | ING Investments, LLC | performance of the Standard & Poor’s |
Subadviser: | MidCap 400 Index, while maintaining | |
ING Investment Management Co. | a market level of risk. | |
ING Index Plus SmallCap Portfolio | Investment Adviser: | Seeks to outperform the total return |
(Class I) | ING Investments, LLC | performance of the Standard & Poor’s |
Subadviser: | SmallCap 600 Index, while | |
ING Investment Management Co. | maintaining a market level of risk. | |
ING International Index Portfolio | Investment Adviser: | Seeks investment results (before fees |
(Class S) | ING Investments, LLC | and expenses) that correspond to the |
Subadviser: | total return of a widely accepted | |
ING Investment Management Co. | international index. | |
ING RussellTM Large Cap Growth | Investment Adviser: | A non diversified portfolio that seeks |
Index Portfolio (Class I) | ING Investments, LLC | investment results (before fees and |
Subadviser: | expenses) that correspond to the total | |
ING Investment Management Co. | return of the Russell Top 200® | |
Growth Index. | ||
ING RussellTM Large Cap Index | Investment Adviser: | Seeks investment results (before fees |
Portfolio (Class I) | ING Investments, LLC | and expenses) that correspond to the |
Subadviser: | total return of the Russell Top 200® | |
ING Investment Management Co. | Index. |
X.EFFV-11 | Page 6 of 9 | April 2011 |
Investment Adviser/ | ||
Fund Name | Subadviser | Investment Objective |
ING RussellTM Large Cap Value | Investment Adviser: | A non diversified portfolio that seeks |
Index Portfolio (Class I) | ING Investments, LLC | investment results (before fees and |
Subadviser: | expenses) that correspond to the total | |
ING Investment Management Co. | return of the Russell Top 200® Value | |
Index. | ||
ING RussellTM Mid Cap Growth | Investment Adviser: | A non-diversified portfolio that seeks |
Index Portfolio (Class I) | ING Investments, LLC | investment results (before fees and |
Subadviser: | expenses) that correspond to the total | |
ING Investment Management Co. | return of the Russell Midcap® Growth | |
Index. | ||
ING RussellTM Small Cap Index | Investment Adviser: | Seeks investment results (before fees |
Portfolio (Class I) | ING Investments, LLC | and expenses) that correspond to the |
Subadviser: | total return of the Russell 2000® | |
ING Investment Management Co. | Index. | |
ING Small Company Portfolio | Investment Adviser: | Seeks growth of capital primarily |
(Class S) | ING Investments, LLC | through investment in a diversified |
Subadviser: | portfolio of common stocks of | |
ING Investment Management Co. | companies with smaller market | |
capitalizations. | ||
ING U.S. Bond Index Portfolio | Investment Adviser: | Seeks investment results (before fees |
(Class I) | ING Investments, LLC | and expenses) that correspond to the |
Subadviser: | total return of the Barclays Capital | |
Neuberger Berman Fixed Income | U.S. Aggregate Bond Index. | |
LLC | ||
ING SmallCap Opportunities | Investment Adviser: | Seeks long-term capital appreciation. |
Portfolio (Class I) | ING Investments, LLC | |
Subadviser: | ||
ING Investment Management Co. | ||
M Business Opportunity Value | Investment Adviser: | Seeks to provide long-term capital |
Fund 2 | M Financial Investment Advisers, Inc. | appreciation. |
Subadviser: | ||
Iridian Asset Management LLC | ||
M Capital Appreciation Fund 2 | Investment Adviser: | Seeks to provide maximum capital |
M Financial Investment Advisers, Inc. | appreciation. | |
Subadviser: | ||
Frontier Capital Management | ||
Company, LLC | ||
M International Equity Fund 2 | Investment Adviser: | Seeks to provide long-term capital |
M Financial Investment Advisers, Inc. | appreciation. | |
Subadviser: | ||
Brandes Investment Partners, L.P. | ||
M Large Cap Growth Fund 2 | Investment Adviser: | Seeks to provide long-term capital |
M Financial Investment Advisers, Inc. | appreciation. | |
Subadviser: | ||
DSM Capital Partners LLC | ||
Neuberger Berman AMT Socially | Investment Adviser: | Seeks long-term growth of capital by |
Responsive Portfolio® (Class I) | Neuberger Berman Management LLC | investing primarily in securities of |
Subadviser: | companies that meet the portfolio’s | |
Neuberger Berman LLC | financial criteria and social policy. |
1 |
This fund is structured as a “fund of funds.” A fund structured as a “fund of funds” may have higher fees and expenses than a fund that invests directly in debt and equity securities because it also incurs the fees and expenses of the underlying funds in which it invests. Please refer to the fund prospectus for information about the aggregate annual operating expenses of the fund and its corresponding underlying fund or funds. |
2 |
This fund is only available through broker/dealers associated with the M Financial Group. |
X.EFFV-11 | Page 7 of 9 | April 2011 |
IMPORTANT INFORMATION ABOUT FUNDS CLOSED TO NEW INVESTMENT
The subaccounts that invest in the following funds have been closed to new investment:
Fidelity® VIP Investment Grade Bond Portfolio
ING American Century Small-Mid Cap Value Portfolio
ING Large Cap Value Portfolio
ING MidCap Opportunities Portfolio
ING PIMCO Total Return Portfolio
ING Strategic Allocation Conservative Portfolio
ING Strategic Allocation Growth Portfolio
ING Strategic Allocation Moderate Portfolio
Invesco V.I. Core Equity Fund
Van Eck VIP Global Hard Assets Fund
Policy owners who have policy value allocated to one or more of the subaccounts that correspond to these funds may leave their policy value in those subaccounts, but future allocations and transfers into those subaccounts are prohibited. If your most recent premium allocation instructions includes a subaccount that corresponds to one of these funds, premium received that would have been allocated to a subaccount corresponding to one of these funds may be automatically allocated among the other available subaccounts according to your most recent premium allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting our ING Customer Service Center at P.O. Box 5065, Minot, ND 58702-5065, 1-877-253-5050 or www.ingservicecenter.com. See the “Transfers” section of your policy prospectus for information about making allocation changes.
Your failure to provide us with alternative allocation instructions before we return your premium payment(s) may result in your policy entering the 61 day grace period and/or your policy lapsing without value. See the “Lapse” section of your policy prospectus for more information about how to keep your policy from lapsing. See also the “Reinstatement” section of your policy prospectus for information about how to put your policy back in force if it has lapsed.
IMPORTANT INFORMATION ABOUT THE COMPANY’S
INTEREST BEARING RETAINED ASSET ACCOUNT
Unless the beneficiary elects otherwise, death benefit proceeds generally will be paid into an interest bearing retained asset account that is backed by our general account. This account is not FDIC insured and can be accessed by the beneficiary through a draftbook feature. The beneficiary may access the entire death benefit proceeds at any time through the draftbook without penalty. Interest credited on this account may be less than could be earned if the lump-sum payment was invested outside of the policy. Additionally, interest credited on this account may be less than interest paid under other settlement options available through the policy, and we seek to earn a profit on this account.
At the time of death benefit election, the beneficiary may elect to receive the death benefit proceeds directly by check rather than through the retained asset account draftbook feature by notifying us at the ING Customer Service Center at P.O. Box 5065, Minot, ND 58702-5065, 1-877-253-5050 or www.ingservicecenter.com.
X.EFFV-11 | Page 8 of 9 | April 2011 |
MORE INFORMATION IS AVAILABLE
More information about the funds available through your policy, including information about the risks associated with investing in them, can be found in the current prospectus and Statement of Additional Information for each fund. You may obtain these documents by contacting us at our:
ING Customer Service Center
P.O. Box 5065
Minot, ND 58702-5065
1-877-253-5050
If you received a summary prospectus for any of the funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus.
X.EFFV-11 | Page 9 of 9 | April 2011 |
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