The following is a supplement to your Allstate Advisor variable annuity
prospectus. Please review and retain this supplement with your current
prospectus. If you have any questions, call 1-800-203-0068.
Allstate Life Insurance Company
Allstate Financial Advisors Separate Account I
Supplement, dated October 1, 2004
to the
Prospectus dated May 1, 2004, as amended for the
Allstate Advisor Variable Annuities (Advisor, Advisor Plus, Advisor Preferred)
This supplement is divided into two parts. The first part amends the
above-referenced prospectus to describe the addition of 7 new Variable
Sub-Accounts and the closure of 4 Variable Sub-Accounts for new investments. The
second part describes changes related to the TrueReturnSM Accumulation Benefit
Option.
Variable Sub-Account Additions and Closures
This supplement amends the above-referenced prospectus for the Allstate Advisor,
Advisor Plus, and Advisor Preferred variable annuity contracts (each, a
"Contract"), offered by Allstate Life Insurance Company, to describe the
addition of 7 new Variable Sub-Accounts and the closure of 4 Variable
Sub-Accounts for new investments. Please keep this supplement for future
reference together with your prospectus.
Variable Sub-Account Additions:
o Effective October 1, 2004, the following Variable Sub-Accounts are
added as investment alternatives to your Contract:
FTVIP Franklin Large Cap Growth Securities-Class 2
Lord Abbett Series Fund - All Value
Lord Abbett Series Fund - Bond-Debenture
Lord Abbett Series Fund - Growth and Income
Lord Abbett Series Fund - Growth Opportunities
Lord Abbett Series Fund - Mid-Cap Value
Oppenheimer Bond/VA
Variable Sub-Account Closures:
Effective October 1, 2004, the following Variable Sub-Accounts are closed
("Closed Variable Sub-Accounts") as investment alternatives under your Contract:
Putnam VT Health Sciences
Putnam VT New Opportunities
Putnam VT Research
Putnam VT Utilities Growth and Income
If you have a Dollar Cost Averaging Program, Automatic Portfolio Rebalancing
Program, or Automatic Additions Program ("Automatic Programs") involving any
Closed Variable Sub-Accounts on October 1, 2004, you will continue to be able to
make additions and transfers to these Closed Sub-Accounts through these
Automatic Programs. Effective October 1, 2004, outside of these Automatic
Programs, you may not allocate purchase payments or make transfers to the Closed
Variable Sub-Accounts.
As a result of the changes described above, your prospectus is amended as
follows:
General: Change all references throughout the prospectus to the availability of
42 Variable Sub-Accounts to 45 Variable Sub-Accounts. To each reference, add the
following footnote: "Up to 47 Variable Sub-Accounts are currently offered with
Contracts issued prior to May 1, 2003. In addition, the four Closed Variable
Sub-Accounts are offered with the Automatic Programs for Contracts with
Automatic Program involving the Closed Variable Sub-Accounts prior to October 1,
2004."
Page 1: Replace the third paragraph with the following:
Each Contract currently offers several investment alternatives ("investment
alternatives"). The investment alternatives include up to 3 fixed account
options ("Fixed Account Options"), depending on the Contract, and include 45*
variable sub-accounts ("Variable Sub-Accounts") of the Allstate Financial
Advisors Separate Account I ("Variable Account").
Each Variable Sub-Account invests exclusively in shares of the following mutual
funds ("Funds"):
Franklin Templeton Variable Insurance Products Trust (Class 2)
Lord Abbett Series Fund, Inc. (Class VC)
Oppenheimer Variable Account Funds (Service Shares)
Putnam Variable Trust (Class IB)
Van Kampen Life Investment Trust (Class II)
The Universal Institutional Funds, Inc. (Class I & II)
*Up to 47 Variable Sub-Accounts are currently offered with Contracts issued
prior to May 1, 2003. In addition, the four Closed Variable Sub-Accounts
are offered with the Automatic Programs for the Contracts with Automatic
Programs involving the Closed Variable Sub-Accounts prior to October 1, 2004.
See page 30 for information about recent Portfolio liquidations, mergers and
name changes.
Page 8: Replace the subheading "Investment Alternatives" under the heading The
Contracts at a Glance" with the following:
Investment Alternatives
Each Contract offers several investment alternatives including:
o up to 3 Fixed Account Options that credit interest at rates we guarantee,
and
o 45* Variable Sub-Accounts investing in Portfolios offering professional
money management by these investment advisers:
o Franklin Advisers, Inc.
o Franklin Advisory Services, LLC
o Franklin Mutual Advisers, LLC
o Lord, Abbett & Co. LLC
o OppenheimerFunds, Inc.
o Putnam Investment Management, LLC
o Templeton Asset Management Ltd.
o Templeton Investment Counsel, LLC
o Van Kampen Asset Management
o Van Kampen**
*Up to 47 Variable Sub-Accounts are currently offered with Contracts issued
prior to May 1, 2003. In addition, the four Closed Variable Sub-Accounts
are offered with the Automatic Programs for the Contracts with Automatic
Programs involving the Closed Variable Sub-Accounts prior to October 1,
2004.
**Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
Not all fixed account options are available in all states or with all Contracts.
To find out current rates being paid on the Fixed Account Option(s), or to find
out how the Variable Sub-Accounts have performed, please call us at 1-
800-203-0068.
Page 13: Under the subheading "PORTFOLIO ANNUAL EXPENSES - Minimum and Maximum,"
please replace the PORTFOLIO ANNUAL EXPENSES table with the following:
PORTFOLIO ANNUAL EXPENSES
- --------------------------------------------------------------------------------
Minimum Maximum
- --------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses(1)
(expenses that are deducted from
Portfolio assets, which may include
management fees, distribution and/or
services (12b-1) fees, and other expenses) 0.74% 23.69%
- --------------------------------------------------------------------------------
(1) Expenses are shown as a percentage of Portfolio average daily net assets
(before waiver or reimbursement) as of December 31, 2003 (except as
otherwise noted).
PORTFOLIO ANNUAL EXPENSES - Full Table (1) The next table shows the Portfolio
operating expenses for each Portfolio available under the Contract. These
expenses may vary from year to year. Advisers and/or other service providers of
certain Portfolios have agreed to waive their fees and/or other Portfolio
expenses in order to keep the Portfolio's expenses below specified limits. The
expenses shown in the table below do not show the effect of any such fee waiver
or expense reimbursement. All fee waiver and expense reimbursements are
described in the footnotes to the table. More detail concerning each Portfolio's
fees and expenses appears in the prospectus for each Portfolio.
Page 13: Under the subheading "PORTFOLIO ANNUAL EXPENSES - Full Table" under the
heading "Expense Table", add the following to the end of the Portfolio Annual
Expenses Table:
Total Annual
PORTFOLIO Management Rule 12b-1 Other Portfolio
Fees Fees Expenses Expenses
- --------------------------------------------------------------------------------------------------------------------
FTVIP Franklin Large Cap Growth Securities Fund - Class 2(16)(17) 0.75% 0.25% 0.04% 1.04%
Lord Abbett Series Fund - All Value Portfolio (18)(19) 0.75% N/A 22.94% 23.69%
Lord Abbett Series Fund - Bond-Debenture Portfolio (19) 0.50% N/A 0.49% 0.99%
Lord Abbett Series Fund - Growth and Income Portfolio 0.50% N/A 0.35% 0.85%
Lord Abbett Series Fund - Growth Opportunities Portfolio (18)(19) 0.80% N/A 11.07% 11.87%
Lord Abbett Series Fund - Mid-Cap Value Portfolio 0.75% N/A 0.33% 1.08%
Oppenheimer Bond Fund/VA - Service Shares 0.71% 0.25% 0.02% 0.98%
1. Figures shown in the Table are for the year ended December 31, 2003
(except as otherwise noted).
16. The Fund administration fee is paid indirectly through the management
fee.
17. While the maximum amount payable under the Portfolio's Class 2 Rule
12b-1 plan is 0.35% per year of the Portfolio's Class 2 average annual
net assets, the Portfolio's Board of Trustees has set the current rate
at 0.25% per year.
18. Expenses have been restated based on estimates for the current fiscal
year (the year ending December 31, 2004).
19. Through the year ending December 31, 2004, Lord, Abbett & Co. LLC has
contractually agreed to reimburse a portion of the Portfolios'
expenses to the extent necessary to maintain its "Other Expenses" at
an aggregate rate of 0.40% of its average daily net assets. Based on
these reimbursements, "Management Fees", "Rule 12b-1 Fees", "Other
Expenses", and "Total Annual Portfolio Expenses" are as follows:
Portfolio Management Fees Rule 12b-1 Other Expenses Total Annual
Fees Portfolio
Expenses
--------------------------------------------- ----------------- -------------- ------------------- -----------
Lord Abbett Series Fund - All Value 0.75% N/A 0.40% 1.15%
Portfolio
Lord Abbett Series Fund - Bond-Debenture 0.50% N/A 0.40% 0.90%
Portfolio
Lord Abbett Series Fund - Growth 0.80% N/A 0.40% 1.20%
Opportunities Portfolio
Effective October 1, 2004, the Putnam VT Health Sciences Variable Sub-Account
(Class IB), the Putnam VT New Opportunities Variable Sub-Account (Class IB), the
Putnam VT Research Variable Sub-Account (Class IB), and the Putnam VT Utilities
Growth and Income Variable Sub-Account (Class IB) closed to new investments.
Page 17: Under the subheading "Example 1" replace the expense example table with
the following:
- ------------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor Preferred
(with 5-year Withdrawal Charge
Allstate Advisor Allstate Advisor Plus Option)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- -------- ------ ------- ------- ------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Expenses $3,335 $6,998 $9,184 $11,563 $3,493 $7,262 $9,443 $11,571 $3,280 $6,965 $8,975 $11,571
Annual Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $983 $1,608 $2,259 $4,177 $1,141 $1,911 $2,618 $4,450 $929 $1,613 $2,150 $4,450
Annual Portfolio
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Allstate Advisor Preferred Allstate Advisor Preferred
(with 3-year Withdrawal (with No Withdrawal Charge
Charge Option) Option)
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $3,291 $6,642 $8,990 $11,574 $2,791 $6,659 $9,006 $11,576
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Costs Based on Minimum
Annual Portfolio
Expenses $939 $1,303 $2,199 $4,539 $439 $1,333 $2,247 $4,627
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Page 18: Under the subheading "Example 2" replace the expense example table with
the following:
- ------------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor Allstate Advisor Plus Allstate Advisor Preferred
(with 5-year Withdrawal Charge
Option)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- -------- ------ ------- ------- ------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $2,740 $6,573 $8,929 $11,563 $2,770 $6,625 $8,975 $11,571 $2,770 $6,625 $8,975 $11,571
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $388 $1,183 $2,004 $4,177 $419 $1,273 $2,150 $4,450 $419 $1,273 $2,150 $4,450
Annual Portfolio
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Allstate Advisor Preferred Allstate Advisor Preferred
(with 3-year Withdrawal Charge (with No Withdrawal Charge
Option) Option)
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $2,781 $6,642 $8,990 $11,574 $2,791 $6,659 $9,006 $11,576
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Costs Based on Minimum
Annual Portfolio
Expenses $429 $1,303 $2,199 $4,539 $439 $1,333 $2,247 $4,627
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Page 19: Add the following to the end of the second paragraph under "Financial
Information:"
No Accumulation Unit Values are shown for the FTVIP Franklin Large Cap Growth
Securities Variable Sub-Account, Lord Abbett Series Fund - All Value Variable
Sub-Account, Lord Abbett Series Fund - Bond-Debenture Variable Sub-Account, Lord
Abbett Series Fund - Growth and Income Variable Sub-Account, Lord Abbett Series
Fund - Growth Opportunities Variable Sub-Account, Lord Abbett Series Fund -
Mid-Cap Value Variable Sub-Account and Oppenheimer Bond - Variable Sub-Account
which were first offered with the Contracts on October 1, 2004.
Page 28: Under the heading "Investment Alternatives: The Variable Sub-Accounts"
add the following to the table describing the Portfolios:
Portfolio: Each Portfolio Seeks: Investment Adviser
-------------------------------------------------------------------------------------------------------------------------
FTVIP Franklin Large Cap Growth Securities Capital appreciation Franklin Advisers, Inc.
Fund - Class 2
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - All Value Long-term growth of capital and income Lord, Abbett & Co. LLC
Portfolio without excessive fluctuations in market
value
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Bond-Debenture High current income and the Lord, Abbett & Co. LLC
Portfolio opportunity for capital appreciation
to produce a high total return
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Growth and Long-term growth of capital and Lord, Abbett & Co. LLC
Income Portfolio income without excessive fluctuations
in market value
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Growth Capital appreciation Lord, Abbett & Co. LLC
Opportunities Portfolio
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Mid-Cap Value Capital appreciation through Lord, Abbett & Co. LLC
Portfolio investments, primarily in equity
securities, which are believed to be
undervalued in the marketplace
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Oppenheimer Bond Fund/VA - Service Shares High level of current income. OppenheimerFunds, Inc.
As a secondary objective, the Fund
seeks capital appreciation when
consistent with its primary objective.
-------------------------------------------------------------------------------------------------------------------------
Effective October 1, 2004, the Putnam VT Health Sciences Variable Sub-Account
(Class IB), the Putnam VT New Opportunities Variable Sub-Account (Class IB), the
Putnam VT Research Variable Sub-Account (Class IB), and the Putnam VT Utilities
Growth and Income Variable Sub-Account (Class IB) closed to new investments.
Page 47- Under the subheading "Unrestricted Variable Sub-Accounts" under the
subheading "Income Protection Benefit Option" add the following variable
Sub-Account to the list:
Oppenheimer Bond/VA
Page 47- Under the subheading "Restricted Variable Sub-Accounts" under the
subheading "Income Protection Benefit Option" add the following to the list of
Restricted Variable Sub-Accounts:
FTVIP Franklin Large Cap Growth Securities - Class 2
Lord Abbett Series Fund - All Value
Lord Abbett Series Fund - Bond-Debenture
Lord Abbett Series Fund - Growth and Income
Lord Abbett Series Fund - Growth Opportunities
Lord Abbett Series Fund - Mid-Cap Value
* Effective October 1, 2004, the Putnam VT Research Variable Sub-Account (Class
IB), and the Putnam VT Utilities Growth and Income Variable Sub-Account (Class
IB) closed to new investments.
TrueReturnSM Accumulation Benefit Option
This supplement describes changes related to the TrueReturnSM Accumulation
Benefit Option available with the Allstate Advisor, Allstate Advisor Plus, and
Allstate Advisor Preferred variable annuity contracts (each, a "Contract"),
offered by Allstate Life Insurance Company. Please keep this supplement for
future reference together with your prospectus. All capitalized terms have the
same meaning as those included in the prospectus.
Your prospectus is amended as follows:
Page 23: Replace the 3rd to last sentence in the fourth paragraph under the
subheading "TRUERETURNSM ACCUMULATION BENEFIT OPTION" under the heading
"Contract Value" with the following:
The Model Portfolio Option under a Guarantee Option has specific investment
requirements that are described in the "Investment Restrictions" section below
and may depend upon the Rider Date of your TrueReturn Option.
Page 24: Replace the last three sentences under the subheading "Accumulation
Benefit" under the heading "Contract Value" with the following: Guarantee Option
1 offers a higher AB Factor and more rider periods than Guarantee Option 2.
Guarantee Option 1 and Guarantee Option 2 have different investment
restrictions. See "Investment Requirements" below for more information. Page 25:
Replace the 2nd sentence of the first paragraph under the subheading "Investment
Requirements" under the heading "Contract Value" with the following:
The specific requirements will depend on the Model Portfolio Option you select
and the effective date of your TrueReturn Option. These requirements are
described below in more detail.
Page 25: Replace the third paragraph under the subheading "Investment
Requirements" under the heading "Contract Value" with the following:
On the Rider Date, you must select only one of the Model Portfolio Options in
which to allocate your Contract Value. We currently offer one Model Portfolio
Option with each of the available Guarantee Options. The Model Portfolio Options
that are available under Guarantee Options may differ depending upon the
effective date of your TrueReturn Option. Please refer to the Model Portfolio
Option 1 and Model Portfolio Option 2 sections for more details. We may add
Model Portfolio Options in the future. The following table summarizes the Model
Portfolio Option currently available for use with each Guarantee Period under
the TrueReturn Option:
- --------------------------------------------------------------------------------
Guarantee Option 1 Guarantee Option 2
- ------------------------------------ -------------------------------------------
- ------------------------------------ -------------------------------------------
Model Portfolio Option 1 Model Portfolio Option 2
- ------------------------------------ -------------------------------------------
Page 25: Delete the sixth paragraph under the subheading "Investment
Requirements" under the heading "Contract Value".
Page 26: Replace the sub-section entitled "Model Portfolio Options 1 and 2"
under the heading "Contract Value" with the following:
Model Portfolio Option 1.
If you choose or transfer your entire Contract Value into Model Portfolio Option
1 under Guarantee Option 1, you must allocate a certain percentage of your
Contract Value into each of three asset categories. Please note that certain
Investment Alternatives are not available under Model Portfolio Option 1. You
may choose the Variable Sub-Accounts in which you want to invest, provided you
maintain the percentage allocation requirements for each category. You may also
make transfers among the Variable Sub-Accounts within each category at any time,
provided you maintain the percentage allocation requirements for each category.
However, each transfer you make will count against the 12 transfers you can make
each Contract Year without paying a transfer fee.
Effective October 1, 2004, certain Variable Sub-Accounts under Model Portfolio 1
have been reclassified into different asset categories. These changes apply to
True Return Options effective prior to and on or after October 1, 2004. The
following table describes the percentage allocation requirements for Model
Portfolio Option 1 and Variable Sub-Accounts available under each category(1):
- -------------------------------------- -----------------------------------------
Model Portfolio Option 1
- -------------------------------------- -----------------------------------------
- -------------------------------------- -----------------------------------------
20% Category A
50% Category B
30% Category C
0% Category D
- ----------------------------------------------------- --------------------------
- ---------------------------------------------------- ---------------------------
Category A Category D (Variable Sub-Accounts not available
Putnam VT Money Market under Model Portfolio Option 1)
Van Kampen LIT Money Market
Category B Oppenheimer Global Securities/VA
FTVIP Franklin U.S. Government Putnam VT Health Sciences(4)
Lord Abbett Series Fund - Bond-Debenture (2) Putnam VT New Opportunities(4)
Oppenheimer Bond/VA (2) Putnam VT Vista
Oppenheimer High Income/VA Van Kampen LIT Aggressive Growth
Oppenheimer Strategic Bond/VA Van Kampen UIF Equity Growth (Class I & II)(3)(5)
Putnam VT High Yield Van Kampen UIF Small Company Growth(3)
Putnam VT Income
Van Kampen UIF Emerging Markets Debt(3)
Van Kampen UIF U.S. Real Estate(3)
Category C
FTVIP Franklin Growth and Income Securities
FTVIP Franklin Income Securities
FTVIP Franklin Large Cap Growth Securities (2)
FTVIP Franklin Small Cap Value Securities
FTVIP Mutual Shares Securities
FTVIP Templeton Developing Markets Securities
FTVIP Templeton Foreign Securities
Lord Abbett Series Fund - All Value (2)
Lord Abbett Series Fund - Growth and Income (2)
Lord Abbett Series Fund - Growth Opportunities (2)
Lord Abbett Series Fund - Mid Cap Value (2)
Oppenheimer Aggressive Growth/VA
Oppenheimer Balanced/VA
Oppenheimer Capital Appreciation/VA
Oppenheimer Main Street/VA
Oppenheimer Main Street Small Cap/VA
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT International Equity
Putnam VT Investors
Putnam VT New Value
Putnam VT Research(4)
Putnam VT The George Putnam Fund of Boston
Putnam VT Utilities Growth and Income(4)
Putnam VT Voyager
Van Kampen LIT Comstock
Van Kampen LIT Emerging Growth
Van Kampen LIT Growth and Income
Van Kampen UIF Equity and Income(3)
Van Kampen UIF Global Franchise(3)
Van Kampen UIF U.S. Mid Cap Value (Class I & II)(3)(5)
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option
1. We will use the percentage allocations as of your most recent instructions.
(1)The FTVIP Franklin Small Cap Variable Sub-Account and the FTVIP Templeton
Global Income Securities Variable Sub-Account, which were closed to new
investments effective May 1, 2003, are not available with the TrueReturn Option.
You must transfer any portion of your Contract Value that is allocated to these
Variable Sub-Accounts to any of the remaining Variable Sub-Accounts available
with the TrueReturn Option prior to adding the TrueReturn Option to your
Contract.
(2) Variable Sub-Account was first offered under the Contracts on October 1,
2004. See the first part of this two part supplement (Variable Sub-Account
Additions and Closures) for additional information.
(3) Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
(4)The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004. If you add the TrueReturn Option to your
Contract on or after October 1, 2004, you must transfer any portion of your
Contract Value that is allocated to these Variable Sub-Accounts to any of the
remaining Variable Sub-Accounts available with the TrueReturn Option prior to
adding the TrueReturn Option to your Contract.
(5)The Van Kampen UIF Equity Growth Variable Sub-Account (Class II) and the Van
Kampen UIF U.S. Mid Cap Value Variable Sub-Account (Class II) are offered with
Contracts issued on or after May 1, 2004. Only Contract Owners of Contracts
issued prior to May 1, 2004 may invest in the Van Kampen UIF Equity Growth
Variable Sub-Account (Class I) and the Van Kampen UIF U.S. Mid Cap Value
Variable Sub-Account (Class I).
Model Portfolio Option 2.
The investment requirements under Model Portfolio Option 2 depend on the Rider
Date of your TrueReturn Option.
Rider Date prior to October 1, 2004
If your TrueReturn Option Rider Date is prior to October 1, 2004 and you select
Model Portfolio Option 2, you must allocate your Contract Value among four asset
categories in accordance with the percentage allocation requirements set out in
the table below. You may choose the Variable Sub-Accounts in which you want to
invest, provided you maintain the percentage allocation requirements for each
category. You may also make transfers among the Variable Sub-Accounts within
each category at any time, provided you maintain the percentage allocation
requirements for each category. However, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table describes the percentage allocation requirements for Model
Portfolio Option 2 (Rider Date prior to October 1, 2004) and the Variable
Sub-Accounts available under each category(1):
- --------------------------------------------------------------------------------
Model Portfolio Option 2 (Rider Date Prior to October 1, 2004)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
10% Category A
20% Category B
50% Category C
20% Category D
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ----------------------------------------------------
Category A
Putnam VT Money Market Category D
Van Kampen LIT Money Market FTVIP Franklin Small Cap Value Securities
FTVIP Templeton Developing Markets Securities
Category B FTVIP Templeton Foreign Securities
FTVIP Franklin U.S. Government Oppenheimer Aggressive Growth/VA
Lord Abbett Series Fund - Bond-Debenture (2) Oppenheimer Capital Appreciation/VA
Oppenheimer Bond/VA (2) Oppenheimer Global Securities/VA
Oppenheimer High Income/VA Oppenheimer Main Street Small Cap/VA
Oppenheimer Strategic Bond/VA Putnam VT Health Sciences(4)
Putnam VT High Yield Putnam VT International Equity
Putnam VT Income Putnam VT Investors
Van Kampen UIF Emerging Markets Debt(3) Putnam VT New Opportunities(4)
Van Kampen UIF U.S. Real Estate(3) Putnam VT Vista
Putnam VT Voyager
Category C Van Kampen LIT Aggressive Growth
Van Kampen LIT Emerging Growth
FTVIP Franklin Growth and Income Securities Van Kampen UIF Equity Growth (Class I & II)(3)(5)
FTVIP Franklin Income Securities Van Kampen UIF Global Franchise(3)
FTVIP Franklin Large Cap Growth Securities (2) Van Kampen UIF Small Company Growth(3)
FTVIP Mutual Shares Securities
Lord Abbett Series Fund - All Value (2)
Lord Abbett Series Fund - Growth and Income (2)
Lord Abbett Series Fund - Growth Opportunities (2)
Lord Abbett Series Fund - Mid Cap Value (2)
Oppenheimer Balanced/VA
Oppenheimer Main Street/VA
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT New Value
Putnam VT Research(4)
Putnam VT The George Putnam Fund of Boston
Putnam VT Utilities Growth and Income(4)
Van Kampen LIT Comstock
Van Kampen LIT Growth and Income
Van Kampen UIF Equity and Income(3)
Van Kampen UIF U.S. Mid Cap Value (Class I & II)(3)(5)
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option 2
(Rider Date prior to October 1, 2004). We will use the percentage allocations as
of your most recent instructions.
(1)The FTVIP Franklin Small Cap Variable Sub-Account and the FTVIP Templeton
Global Income Securities Variable Sub-Account, which were closed to new
investments effective May 1, 2003, are not available with the TrueReturn Option.
You must transfer any portion of your Contract Value that is allocated to these
Variable Sub-Accounts to any of the remaining Variable Sub-Accounts available
with the TrueReturn Option prior to adding the TrueReturn Option to your
Contract.
(2) Variable Sub-Account was first offered under the Contracts on October 1,
2004. See the first part of this two part supplement (Variable Sub-Account
Additions and Closures) for additional information.
(3)Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
(4)The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004.
(5)The Van Kampen UIF Equity Growth Variable Sub-Account (Class II) and the Van
Kampen UIF U.S. Mid Cap Value Variable Sub-Account (Class II) are offered with
Contracts issued on or after May 1, 2004. Only Contract Owners of Contracts
issued prior to May 1, 2004 may invest in the Van Kampen UIF Equity Growth
Variable Sub-Account (Class I) and the Van Kampen UIF U.S. Mid Cap Value
Variable Sub-Account (Class I).
Rider Date on or after October 1, 2004
If your TrueReturn Option Rider Date is on or after October 1, 2004, and you
select Model Portfolio Option 2 , you may allocate your Contract Value among any
of a selected group of available Variable Sub-Accounts listed below. However,
you may not allocate your Contract Value among any of the excluded Variable
Sub-Accounts listed below. You may choose to invest in or transfer among any of
the available Variable Sub-Accounts. However, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table lists the available and excluded Variable Sub-Accounts under
Model Portfolio Option 2 (Rider Date on or after October 1, 2004)(1,2):
- --------------------------------------------------------------------------------
Model Portfolio Option 2 (Rider Date on or after October 1, 2004)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Available Excluded
- ------------------------------------- ------------------------------------------
- ------------------------------------- ------------------------------------------
Oppenheimer Global Securities/VA
FTVIP Franklin Growth and Income Securities Putnam VT Vista
FTVIP Franklin Income Securities Van Kampen LIT Aggressive Growth
FTVIP Franklin Large Cap Growth Securities (3) Van Kampen UIF Equity Growth (Class I & II)(4)(5)
FTVIP Franklin Small Cap Value Securities Van Kampen UIF Small Company Growth(4)
FTVIP Franklin U.S. Government
FTVIP Mutual Shares Securities
FTVIP Templeton Developing Markets Securities
FTVIP Templeton Foreign Securities
Lord Abbett Series Fund - All Value (3)
Lord Abbett Series Fund - Bond-Debenture (3)
Lord Abbett Series Fund - Growth and Income (3)
Lord Abbett Series Fund - Growth Opportunities (3)
Lord Abbett Series Fund - Mid Cap Value (3)
Oppenheimer Aggressive Growth/VA
Oppenheimer Balanced/VA
Oppenheimer Bond/VA (3)
Oppenheimer Capital Appreciation/VA
Oppenheimer High Income/VA
Oppenheimer Main Street/VA
Oppenheimer Main Street Small Cap/VA
Oppenheimer Strategic Bond/VA
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT High Yield
Putnam VT Income
Putnam VT International Equity
Putnam VT Investors
Putnam VT Money Market
Putnam VT New Value
Putnam VT The George Putnam Fund of Boston
Putnam VT Voyager
Van Kampen LIT Comstock
Van Kampen LIT Emerging Growth
Van Kampen LIT Growth and Income
Van Kampen LIT Money Market
Van Kampen UIF Emerging Markets Debt(4)
Van Kampen UIF Equity and Income(4)
Van Kampen UIF Global Franchise(4)
Van Kampen UIF U.S. Mid Cap Value (Class I & II)(4)(5)
Van Kampen UIF U.S. Real Estate(4)
- ----------------------------------------------------- --------------------------
(1)The FTVIP Franklin Small Cap Variable Sub-Account and the FTVIP Templeton
Global Income Securities Variable Sub-Account, which were closed to new
investments effective May 1, 2003, are not available with the TrueReturn Option.
You must transfer any portion of your Contract Value that is allocated to these
Variable Sub-Accounts to any of the remaining Variable Sub-Accounts offered with
the Contract prior to adding the TrueReturn Option to your Contract.
(2)The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004. If you add the TrueReturn Option to your
Contract on or after October 1, 2004, you must transfer any portion of your
Contract Value that is allocated to these Variable Sub-Accounts to any of the
remaining Variable Sub-Accounts available with the TrueReturn Option prior to
adding the TrueReturn Option to your Contract.
(3) Variable Sub-Account was first offered under the Contracts on October 1,
2004. See the first part of this two part supplement (Variable Sub-Account
Additions and Closures) for additional information.
(4)Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
(5) The Van Kampen UIF Equity Growth Variable Sub-Account (Class II) and the Van
Kampen UIF U.S. Mid Cap Value Variable Sub-Account (Class II) are offered with
Contracts issued on or after May 1, 2004. Contract Owners of Contracts issued
prior to May 1, 2004 may only invest in the Van Kampen UIF Equity Growth
Variable Sub-Account (Class I) and the Van Kampen UIF U.S. Mid Cap Value
Variable Sub-Account (Class I).
The following is a supplement to your Morgan Stanley Variable Annuity
prospectus. Please review and retain this supplement with your current
prospectus. If you have any questions, call 1-800-654-2397.
Allstate Life Insurance Company
Allstate Financial Advisors Separate Account I
Supplement, dated October 1, 2004
to the
Prospectus dated May 1, 2004 for
The Morgan Stanley Variable Annuities (Morgan Stanley Variable Annuity,
Morgan Stanley Variable Annuity - L Share)
This supplement describes changes related to the TrueReturnSM Accumulation
Benefit Option available with the Morgan Stanley Variable Annuity and Morgan
Stanley Variable Annuity - L Share variable annuity contracts (each, a
"Contract"), offered by Allstate Life Insurance Company. Please keep this
supplement for future reference together with your prospectus. All capitalized
terms have the same meaning as those included in the prospectus.
Your prospectus is amended as follows:
Page 20: Replace the 3rd to last sentence in the fourth paragraph under the
subheading "TRUERETURNSM ACCUMULATION BENEFIT OPTION" under the heading
"Contract Value" with the following:
The Guarantee Option you select has specific investment requirements, which are
described in the "Investment Restrictions" section below and may depend upon the
Rider Date of your TrueReturn Option.
Page 21: Replace the last three sentences under the subheading "Accumulation
Benefit" under the heading "Contract Value" with the following:
Guarantee Option 1 offers a higher AB Factor and more rider periods
than Guarantee Option 2. Guarantee Option 1 and Guarantee Option 2 have
different investment restrictions. See "Investment Requirements" below
for more information.
Page 21: Replace the 2nd sentence of the first paragraph under the subheading
"Investment Requirements" under the heading "Contract Value" with the following:
The specific requirements will depend on the Guarantee Option you select and the
effective date of your TrueReturn Option. These requirements are described below
in more detail.
Page 21: Replace the third paragraph under the subheading "Investment
Requirements" under the heading "Contract Value" with the following:
On the Rider Date, you must select only one of the Model Portfolio Options in
which to allocate your Contract Value. We currently offer one Model Portfolio
Option with each of the available Guarantee Options that may differ depending
upon the effective date of your TrueReturn Option. Please refer to the Model
Portfolio Option 1 and Model Portfolio Option 2 sections for more details.
We may add Model Portfolio Options in the future. The following table summarizes
the Model Portfolio Option currently available for use with each Guarantee
Period under the TrueReturn Option:
- --------------------------------------- -------------------------------------
Guarantee Option 1 Guarantee Option 2
- --------------------------------------- -------------------------------------
Model Portfolio Option 1 Model Portfolio Option 2
- -------------------------------------- -------------------------------------
Page 22: Delete the sixth paragraph under the subheading "Investment
Requirements" under the heading "Contract Value".
Page 22: Replace the sub-section entitled "Model Portfolio Options 1 and 2"
under the heading "Contract Value" with the following:
Model Portfolio Option 1.
If you choose or transfer your entire Contract Value into Model Portfolio Option
1 under Guarantee Option 1, you must allocate a certain percentage of your
Contract Value into each of three asset categories. Please note that certain
Investment Alternatives are not available under Model Portfolio Option 1. You
may choose the Variable Sub-Accounts in which you want to invest, provided you
maintain the percentage allocation requirements for each category. You may also
make transfers among the Variable Sub-Accounts within each category at any time,
provided you maintain the percentage allocation requirements for each category.
However, each transfer you make will count against the 12 transfers you can make
each Contract Year without paying a transfer fee.
Effective October 1, 2004, certain Variable Sub-Accounts under Model Portfolio 1
have been reclassified into different asset categories. These changes apply to
True Return Options effective prior to and on or after October 1, 2004. The
following table describes the percentage allocation requirements for Model
Portfolio Option 1 and Variable Sub-Accounts available under each category*:
- ----------------------------------------------- --------------------------
Model Portfolio Option 1
- ----------------------------------------------- --------------------------
20% Category A
50% Category B
30% Category C
0% Category D
- ----------------------------------------------- --------------------------
Category A Category D (Variable Sub-Accounts not available
Morgan Stanley VIS Money Market Portfolio under Model Portfolio Option 1)
Category B AIM V.I. Capital Appreciation Fund
FTVIP Franklin High Income Fund AllianceBerstein Premier Growth Portfolio
Morgan Stanley VIS High Yield Portfolio Morgan Stanley VIS Aggressive Equity Portfolio
Morgan Stanley VIS Limited Duration Portfolio Morgan Stanley VIS European Growth Portfolio
Morgan Stanley VIS Quality Income Plus Portfolio Morgan Stanley VIS Global Advantage Portfolio
Van Kampen UIF Emerging Markets Debt Portfolio** Morgan Stanley VIS Information Portfolio
Van Kampen UIF U.S. Real Estate Portfolio** Van Kampen LIT Aggressive Growth Portfolio
Category C Van Kampen UIF Equity Growth Portfolio**
AIM V.I. Basic Value Fund Van Kampen UIF Small Company Growth Portfolio**
AIM V.I. Mid Cap Core Equity Fund
AIM V.I. Premier Equity Fund
AllianceBernstein Growth and Income Portfolio
AllianceBernstein Growth Portfolio
AllianceBernstein Small Cap Value Portfolio
FTVIP Franklin Income Securities Fund
FTVIP Mutual Shares Securities Fund
FTVIP Templeton Foreign Securities Fund
Morgan Stanley VIS Dividend Growth Portfolio
Morgan Stanley VIS Equity Portfolio
Morgan Stanley VIS Global Dividend Growth
Morgan Stanley VIS Income Builder Portfolio
Morgan Stanley VIS Strategist Portfolio
Morgan Stanley VIS S&P 500 Index Portfolio
Morgan Stanley VIS Utilities Portfolio
Putnam VT Growth and Income Fund
Putnam VT International Equity Fund
Putnam VT The George Putnam Fund of Boston
Putnam VT Voyager Fund
Van Kampen LIT Comstock Portfolio
Van Kampen LIT Emerging Growth Portfolio
Van Kampen LIT Growth and Income Portfolio
Van Kampen UIF Emerging Markets Equity Portfolio**
Van Kampen UIF Equity and Income Portfolio**
Van Kampen UIF Global Franchise Portfolio**
Van Kampen UIF Mid Cap Growth Portfolio**
Van Kampen UIF U.S. Mid Cap Value Portfolio**
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option
1. We will use the percentage allocations as of your most recent instructions.
* Effective May 1, 2004, the Putnam VT Investors Fund - Class IB is no longer
available for new investments. If you are currently invested in the Variable
Sub-Account that invests in this Portfolio you may continue your investment. If
you are currently enrolled in one of our automatic transaction programs, such as
automatic additions, portfolio rebalancing or dollar cost averaging, we will
continue to effect automatic transactions to the Portfolio in accordance with
that program. If you add this rider on or after May 1, 2004, you must transfer
any portion of your Contract Value that is allocated to this Variable
Sub-Account to any of the remaining Variable Sub-Accounts available with the
TrueReturn Option prior to adding the TrueReturn Option to your Contract.
**Morgan Stanley Investment Management, Inc., the adviser to the UIF Portfolios,
does business in certain instances using the name Van Kampen.
Model Portfolio Option 2.
The investment requirements under Model Portfolio Option 2 depend on the
effective date of your TrueReturn Option.
Rider Date prior to October 1, 2004
If your TrueReturn Option Rider Date is prior to October 1, 2004 and you select
Model Portfolio Option 2, you must allocate your Contract Value among four asset
categories in accordance with the percentage allocation requirements set out in
the table below. You may choose the Variable Sub-Accounts in which you want to
invest, provided you maintain the percentage allocation requirements for each
category. You may also make transfers among the Variable Sub-Accounts within
each category at any time, provided you maintain the percentage allocation
requirements for each category. However, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table describes the percentage allocation requirements for Model
Portfolio Option 2 (Rider Date prior to October 1, 2004) and the Variable
Sub-Accounts available under each category*:
- --------------------------------------------------------------------------------
Model Portfolio Option 2 (Rider Date Prior to October 1, 2004)
- --------------------------------------------------------------------------------
10% Category A
20% Category B
50% Category C
20% Category D
- ----------------------------------------------------- -----------------------------------------------
Category A Category D
Morgan Stanley VIS Money Market Portfolio Morgan Stanley VIS Aggressive Equity Portfolio
Morgan Stanley VIS European Growth Portfolio
Category B Morgan Stanley VIS Global Advantage Portfolio
FTVIP Franklin High Income Fund Morgan Stanley VIS Global Dividend Growth Portfolio
Morgan Stanley VIS High Yield Portfolio Morgan Stanley VIS Information Portfolio
Morgan Stanley VIS Limited Duration Portfolio AIM V.I. Capital Appreciation Fund
Morgan Stanley VIS Quality Income Plus Portfolio AIM V.I. Mid Cap Core Equity Fund
Van Kampen UIF Emerging Markets Debt Portfolio** AllianceBernstein Growth Portfolio
Van Kampen UIF U.S. Real Estate Portfolio** AllianceBernstein Premier Growth Portfolio
AllianceBernstein Small Cap Value Portfolio
Category C FTVIP Templeton Foreign Securities
Morgan Stanley VIS Dividend Growth Portfolio Putnam VT International Equity Fund
Morgan Stanley VIS Equity Portfolio Putnam VT Investors Fund*
Morgan Stanley VIS Income Builder Portfolio Putnam VT Voyager Fund
Morgan Stanley VIS S&P 500 Index Portfolio Van Kampen LIT Aggressive Growth Portfolio
Morgan Stanley VIS Strategist Portfolio Van Kampen LIT Emerging Growth Portfolio
Morgan Stanley VIS Utilities Portfolio Van Kampen UIF Emerging Markets Equity Portfolio**
AIM V.I. Basic Value Fund Van Kampen UIF Equity Growth Portfolio**
AIM V.I. Premier Equity Fund Van Kampen UIF Global Franchise Portfolio**
AllianceBernstein Growth and Income Portfolio Van Kampen UIF Mid Cap Growth Portfolio**
FTVIP Franklin Income Securities Fund Van Kampen UIF Small Company Growth Portfolio**
FTVIP Mutual Shares Securities Fund
Putnam VT Growth and Income Fund
Putnam VT The George Putnam Fund of Boston
Van Kampen LIT Comstock Portfolio
Van Kampen LIT Growth and Income Portfolio
Van Kampen UIF Equity and Income Portfolio**
Van Kampen UIF U.S. Mid Cap Value Portfolio**
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option 2
(Rider Date prior to October 1, 2004). We will use the percentage allocations as
of your most recent instructions. * Effective May 1, 2004, the Putnam VT
Investors Fund - Class IB is no longer available for new investments. If you are
currently invested in the Variable Sub-Account that invests in this Portfolio
you may continue your investment. If you are currently enrolled in one of our
automatic transaction programs, such as automatic additions, portfolio
rebalancing or dollar cost averaging, we will continue to effect automatic
transactions to the Portfolio in accordance with that program. If you add this
rider on or after May 1, 2004, you must transfer any portion of your Contract
Value that is allocated to this Variable Sub-Account to any of the remaining
Variable Sub-Accounts available with the TrueReturn Option prior to adding the
TrueReturn Option to your Contract.
** Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
Rider Date on or after October 1, 2004
If your TrueReturn Option Rider Date is on or after October 1, 2004 and you
select Model Portfolio Option 2, you may allocate your Contract Value among any
of a selected group of available Variable Sub-Accounts listed below. However,
you may not allocate your Contract Value among any of the excluded Variable
Sub-Accounts listed below. You may choose to invest in or transfer among any of
the available Variable Sub-Accounts, however, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table lists the available and excluded Variable Sub-Accounts under
Model Portfolio Option 2(Rider Date on or after October 1, 2004)*:
- --------------------------------------------------------------------------------
Model Portfolio Option 2 (Rider Date on or after October 1, 2004)
- --------------------------------- -------------------------------------------
Available Excluded
- --------------------------------- -------------------------------------------
AIM V.I. Basic Value Fund AIM V.I. Capital Appreciation Fund
AIM V.I. Mid Cap Core Equity Fund AllianceBerstein Premier Growth Portfolio
AIM V.I. Premier Equity Fund Morgan Stanley VIS Aggressive Equity Portfolio
AllianceBernstein Growth Portfolio Morgan Stanley VIS European Growth Portfolio
AllianceBernstein Growth and Income Portfolio Morgan Stanley VIS Global Advantage Portfolio
AllianceBernstein Small Cap Value Portfolio Morgan Stanley VIS Information Portfolio
FTVIP Franklin High Income Fund Van Kampen LIT Aggressive Growth Portfolio
FTVIP Franklin Income Securities Fund Van Kampen UIF Equity Growth Portfolio**
FTVIP Mutual Shares Securities Fund Van Kampen UIF Small Company Growth Portfolio**
FTVIP Templeton Foreign Securities Fund
Morgan Stanley VIS Dividend Growth Portfolio
Morgan Stanley VIS Equity Portfolio
Morgan Stanley VIS Global Dividend Growth
Morgan Stanley VIS High Yield Portfolio
Morgan Stanley VIS Income Builder Portfolio
Morgan Stanley VIS Limited Duration Portfolio
Morgan Stanley VIS Money Market Portfolio
Morgan Stanley VIS Quality Income Plus Portfolio
Morgan Stanley VIS S&P 500 Index Portfolio
Morgan Stanley VIS Strategist Portfolio
Morgan Stanley VIS Utilities Portfolio
Putnam VT Growth and Income Fund
Putnam VT International Equity Fund
Putnam VT The George Putnam Fund of Boston
Putnam VT Voyager Fund
Van Kampen LIT Comstock Portfolio
Van Kampen LIT Growth and Income Portfolio
Van Kampen LIT Emerging Growth Portfolio
Van Kampen UIF Emerging Markets Debt Portfolio**
Van Kampen UIF Emerging Markets Equity Portfolio**
Van Kampen UIF Equity and Income Portfolio**
Van Kampen UIF Global Franchise Portfolio**
Van Kampen UIF Mid Cap Growth Portfolio**
Van Kampen UIF U.S. Mid Cap Value Portfolio**
Van Kampen UIF U.S. Real Estate Portfolio**
- --------------------------------------------------------------------------------
* Effective May 1, 2004, the Putnam VT Investors Fund - Class IB is no longer
available for new investments. If you are currently invested in the Variable
Sub-Account that invests in this Portfolio you may continue your investment. If
you are currently enrolled in one of our automatic transaction programs, such as
automatic additions, portfolio rebalancing or dollar cost averaging, we will
continue to effect automatic transactions to the Portfolio in accordance with
that program. If you add this rider on or after May 1, 2004, you must transfer
any portion of your Contract Value that is allocated to this Variable
Sub-Account to any of the remaining Variable Sub-Accounts available with the
TrueReturn Option prior to adding the TrueReturn Option to your Contract.
** Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
The following is a supplement to your Allstate Advisor variable annuity
prospectus. Please review and retain this supplement with your current
prospectus. If you have any questions, call 1-800-203-0068.
Allstate Life Insurance Company
Allstate Financial Advisors Separate Account I
Supplement, dated October 1, 2004,
to the
Prospectus dated May 1, 2004, as amended, for the
Allstate Advisor Variable Annuities (Advisor, Advisor Preferred)
This supplement is divided into two parts. The first part amends the
above-referenced prospectus to describe the addition of 7 new Variable
Sub-Accounts and the closure of 4 Variable Sub-Accounts for new investments. The
second part describes changes related to the TrueReturnSM Accumulation Benefit
Option.
- ----------------------------------------------------- --------------------------
Variable Sub-Account Additions and Closures
This supplement amends the above-referenced prospectus for the Allstate Advisor
and Allstate Advisor Preferred variable annuity contracts (each, a "Contract"),
offered by Allstate Life Insurance Company, to describe the addition of 7 new
Variable Sub-Accounts and the closure of 4 Variable Sub-Accounts for new
investments. Please keep this supplement for future reference together with your
prospectus. All capitalized terms have the same meaning as those included in the
prospectus.
Variable Sub-Account Additions:
Effective October 1, 2004, the following Variable Sub-Accounts are added as
investment alternatives to your Contract:
FTVIP Franklin Large Cap Growth Securities - Class 2
Lord Abbett Series Fund - All Value
Lord Abbett Series Fund - Bond-Debenture
Lord Abbett Series Fund - Growth and Income
Lord Abbett Series Fund - Growth Opportunities
Lord Abbett Series Fund - Mid-Cap Value
Oppenheimer Bond/VA
Variable Sub-Account Closures:
Effective October 1, 2004, the following Variable Sub-Accounts are closed
("Closed Variable Sub-Accounts") as investment alternatives under your Contract:
Putnam VT Health Sciences
Putnam VT New Opportunities
Putnam VT Research
Putnam VT Utilities Growth and Income
If you have a Dollar Cost Averaging Program, Automatic Portfolio Rebalancing
Program, or Automatic Additions Program ("Automatic Programs") involving any
Closed Variable Sub-Accounts, you will continue to be able to make additions to
these Sub-Accounts through these Automatic Programs. Effective October 1, 2004,
outside of these Automatic Programs, additional allocations will not be allowed
into these Variable Sub-Accounts.
As a result of the changes described above, your prospectus is amended as
follows:
General: Change all references throughout the prospectus from the availability
of "49" Variable Sub-Accounts to "52" Variable Sub-Accounts. To each reference,
add the following footnote: "In addition, the four Closed Variable Sub-Accounts
are offered with the Automatic Programs for Contracts with Automatic Programs
involving the Closed Variable Sub-Accounts prior to October 1, 2004."
Page 1: Replace the third paragraph with the following:
Each Contract currently offers several investment alternatives ("investment
alternatives"). The investment alternatives include up to 3 fixed account
options ("Fixed Account Options"), depending on the Contract, and include 52*
variable sub-accounts ("Variable Sub-Accounts") of the Allstate Financial
Advisors Separate Account I ("Variable Account"). Each Variable Sub-Account
invests exclusively in shares of the following mutual funds ("Funds"):
Franklin Templeton Variable Insurance Products Trust (Class 2)
Lord Abbett Series Funds, Inc.
Oppenheimer Variable Account Funds (Service Shares)
Putnam Variable Trust (Class IB)
STI Classic Variable Trust
Van Kampen Life Investment Trust (Class II)
The Universal Institutional Funds, Inc. (Class II)
* In addition, the four Closed Variable Sub-Accounts are offered with the
Automatic Programs for Contracts with Automatic Programs involving the Closed
Variable Sub-Accounts prior to October 1, 2004. See page 27 for information
about recent Portfolio liquidations and name changes.
Page 7: Replace the subheading "Investment Alternatives" under the heading "The
Contracts at a Glance" with the following:
Investment Alternatives
Each Contract offers several investment alternatives including:
o up to 3 Fixed Account Options that credit interest at rates we guarantee,
and
o 52* Variable Sub-Accounts investing in Portfolios offering professional
money management by these investment advisers:
o Franklin Advisers, Inc.
o Franklin Advisory Services, LLC
o Franklin Mutual Advisers, LLC
o Lord, Abbett & Co. LLC
o OppenheimerFunds, Inc.
o Putnam Investment Management, LLC.
o Templeton Asset Management Ltd.
o Templeton Investment Counsel, LLC
o Trusco Capital Management, Inc.
o Van Kampen Asset Management
o Van Kampen**
* In addition, the four Closed Variable Sub-Accounts are offered with the
Automatic Programs for Contracts with Automatic Programs involving the
Closed Variable Sub-Accounts prior to October 1, 2004.
** Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van
Kampen.
Not all fixed account options are available in all states or with all Contracts.
To find out current rates being paid on the Fixed Account Option(s), or to find
out how the Variable Sub-Accounts have performed, please call us at
1-800-203-0068.
Page 12: Under the subheading "Portfolio Annual Expenses - Minimum and Maximum,"
please replace the ANNUAL PORTFOLIO EXPENSES table with the following:
The next table shows the minimum and maximum total operating expenses charged by
the Portfolio that you may pay periodically during the time that you own the
Contract. Advisers and/or other service providers of certain Portfolios may have
agreed to waive their fees and/or reimburse Portfolio expenses in order to keep
the Portfolio's expenses below specified limits. The range of expenses shown in
this table does not show the effect of any such fee waiver or expense
reimbursement. More detail concerning each Portfolio's fees and expenses appears
in the second table below and in the prospectus for each Portfolio.
PORTFOLIO ANNUAL EXPENSES
- ------------------------------------------------------------------------
Minimum Maximum
- ------------------------------------------------------------------------
Total Annual Portfolio Operating
Expenses*
(expenses that are deducted from
Portfolio assets, which may include
management fees, distribution and/or
services (12b-1) fees, and other
expenses) 0.74% 23.69%
- -----------------------------------------------------------------------
* Expenses are shown as a percentage of Portfolio average daily net assets
(before waiver or reimbursement) as of December 31, 2003 (except as otherwise
noted).
Portfolio Annual Expenses - Full Table (1)
The next table shows the Portfolio operating expenses for each Portfolio
available under the Contract. These expenses may vary from year to year.
Advisers and/or other service providers of certain Portfolios have agreed to
waive their fees and/or other Portfolio expenses in order to keep the
Portfolio's expenses below specified limits. The expenses shown in the table
below do not show the effect of any such fee waiver or expense reimbursement.
All fee waiver and expense reimbursements are described in the footnotes to the
table. More detail concerning each Portfolio's fees and expenses appears in the
prospectus for each Portfolio.
Page 12: Add the following to the expense table under the subheading "Portfolio
Annual Expenses - Full Table":
Total Annual
Management Rule 12b-1 Other Portfolio
Portfolio Fees Fees Expenses Expenses
-------------------------------------------------------------------------------------------------------------------------
FTVIP Franklin Large Cap Growth Securities Fund - Class 2(15)(16) 0.75% 0.25% 0.04% 1.04%
Lord Abbett Series Fund - All Value Portfolio (17)(18) 0.75% N/A 22.94% 23.69%
Lord Abbett Series Fund - Bond-Debenture Portfolio (18) 0.50% N/A 0.49% 0.99%
Lord Abbett Series Fund - Growth and Income Portfolio 0.50% N/A 0.35% 0.85%
Lord Abbett Series Fund - Growth Opportunities Portfolio (17)(18) 0.80% N/A 11.07% 11.87%
Lord Abbett Series Fund - Mid-Cap Value Portfolio 0.75% N/A 0.33% 1.08%
Oppenheimer Bond Fund/VA - Service Shares 0.71% 0.25% 0.02% 0.98%
1. Figures shown in the Table are for the year ended December 31, 2003
(except as otherwise noted).
15. The Fund administration fee is paid indirectly through the management
fee.
16. While the maximum amount payable under the Portfolio's Class 2 Rule
12b-1 plan is 0.35% per year of the Portfolio's Class 2 average annual
net assets, the Portfolio's Board of Trustees has set the current rate
at 0.25% per year.
17. Expenses have been restated based on estimates for the current fiscal
year (the year ending December 31, 2004).
18. Through the year ending December 31, 2004, Lord, Abbett & Co. LLC has
contractually agreed to reimburse a portion of the Portfolios' expenses
to the extent necessary to maintain its "Other Expenses" at an
aggregate rate of 0.40% of its average daily net assets. Based on these
reimbursements, "Management Fees", "Rule 12b-1 Fees", "Other Expenses",
and "Total Annual Portfolio Expenses" are as follows:
Portfolio Management Rule 12b-1 Other Expenses Total Annual
Fees Fees Portfolio
Expenses
------------------------------------------------- ----------------- -------------- ------------------- ----------------
Lord Abbett Series Fund - All Value Portfolio 0.75% N/A 0.40% 1.15%
Lord Abbett Series Fund - Bond-Debenture 0.50% N/A 0.40% 0.90%
Portfolio
Lord Abbett Series Fund - Growth Opportunities 0.80% N/A 0.40% 1.20%
Portfolio
Effective October 1, 2004, the Putnam VT Health Sciences Variable Sub-Account
(Class IB), the Putnam VT New Opportunities Variable Sub-Account (Class IB), the
Putnam VT Research Variable Sub-Account (Class IB), and the Putnam VT Utilities
Growth and Income Variable Sub-Account (Class IB) closed to new investments.
Page 15: Under the subheading "Example 1" replace the expense example table with
the following:
- -----------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor
- -----------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
- -----------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $3,335 $6,998 $9,184 $11,563
- -----------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $983 $1,608 $2,259 $4,177
Annual Portfolio
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor Preferred Allstate Advisor Preferred Allstate Advisor Preferred
(with 5-year Withdrawal Charge (with 3-year Withdrawal (with No Withdrawal
Option) Charge Option) Charge Option)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- -------- ------ ------- ------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $3,280 $6,965 $8,975 $11,571 $3,291 $6,642 $8,990 $11,574 $2,791 $6,659 $9,006 $11,576
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $929 $1,613 $2,150 $4,450 $939 $1,303 $2,199 $4,539 $439 $1,333 $2,247 $4,627
Annual Portfolio
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Page 16: Under the subheading "Example 2" replace the expense example table with
the following:
- -----------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor
- -----------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
- -----------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $2,740 $6,573 $8,929 $11,563
- -----------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $388 $1,183 $2,004 $4,177
Annual Portfolio
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Allstate Advisor Preferred Allstate Advisor Preferred Allstate Advisor Preferred
(with 5-year Withdrawal (with 3-year Withdrawal (with No Withdrawal
Charge Option) Charge Option) Charge Option)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- -------- ------ ------- ------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Maximum
Annual Portfolio
Expenses $2,770 $6,625 $8,975 $11,571 $2,781 $6,642 $8,990 $11,574 $2,791 $6,659 $9,006 $11,576
- ------------------------------------------------------------------------------------------------------------------------------------
Costs Based on Minimum $419 $1,273 $2,150 $4,450 $429 $1,303 $2,199 $4,539 $439 $1,333 $2,247 $4,627
Annual Portfolio
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Page 17: Add the following to the end of the second paragraph under "Financial
Information:"
No Accumulation Unit Values are shown for the following Variable Sub-Accounts:
FTVIP Franklin Large Cap Growth Securities - Class 2, Lord Abbett Series Fund -
All Value, Lord Abbett Series Fund - Bond-Debenture, Lord Abbett Series Fund -
Growth and Income, Lord Abbett Series Fund - Growth Opportunities, Lord Abbett
Series Fund - Mid-Cap Value and Oppenheimer Bond/VA which were first offered
under the Contracts on October 1, 2004.
Page 25: Under the heading "Investment Alternatives: The Variable Sub-Accounts"
add the following to the table describing the Portfolios:
Portfolio: Each Portfolio Seeks: Investment Adviser:
-------------------------------------------------------------------------------------------------------------------------
FTVIP Franklin Large Cap Growth Capital appreciation Franklin Advisers, Inc.
Securities Fund - Class 2
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - All Value Long-term growth of capital and Lord, Abbett & Co. LLC
Portfolio income without excessive fluctuations
in market value
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - High current income and the Lord, Abbett & Co. LLC
Bond-Debenture Portfolio opportunity for capital appreciation
to produce a high total return
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Growth and Long-term growth of capital and Lord, Abbett & Co. LLC
Income Portfolio income without excessive fluctuations
in market value
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Growth Capital appreciation Lord, Abbett & Co. LLC
Opportunities Portfolio
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund - Mid-Cap Capital appreciation through Lord, Abbett & Co. LLC
Value Portfolio investments, primarily in equity
securities, which are believed to be
undervalued in the marketplace
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Oppenheimer Bond Fund/VA - Service High level of current income. As a OppenheimerFunds, Inc.
Shares secondary objective, the Fund seeks
capital appreciation when consistent
with its primary objective.
-------------------------------------------------------------------------------------------------------------------------
Effective October 1, 2004, the Putnam VT Health Sciences Variable Sub-Account
(Class IB), the Putnam VT New Opportunities Variable Sub-Account (Class IB), the
Putnam VT Research Variable Sub-Account (Class IB), and the Putnam VT Utilities
Growth and Income Variable Sub-Account (Class IB) closed to new investments.
Page 42- Under the subheading "Unrestricted Variable Sub-Accounts" under the
subheading "Income Protection Benefit Option" add the following variable
Sub-Account to the list:
Oppenheimer Bond/VA
Pages 42-43- Under the subheading "Restricted Variable Sub-Accounts" under the
subheading "Income Protection Benefit Option" add the following to the list of
Restricted Variable Sub-Accounts:
FTVIP Franklin Large Cap Growth Securities - Class 2
Lord Abbett Series Fund - All Value
Lord Abbett Series Fund - Bond-Debenture
Lord Abbett Series Fund - Growth and Income
Lord Abbett Series Fund - Growth Opportunities
Lord Abbett Series Fund - Mid-Cap Value
Add two asterisks** to the following Restricted Variable Sub-Accounts:
Putnam VT Research
Putnam VT Utilities Growth and Income
** Effective October 1, 2004, the Putnam VT Research Variable Sub-Account, and
the Putnam VT Utilities Growth and Income Variable Sub-Account closed to new
investments.
TrueReturnSM Accumulation Benefit Option
This supplement describes changes related to the TrueReturnSM Accumulation
Benefit Option available with the Allstate Advisor and Allstate Advisor
Preferred variable annuity contracts (each, a "Contract"), offered by Allstate
Life Insurance Company. Please keep this supplement for future reference
together with your prospectus. All capitalized terms have the same meaning as
those included in the prospectus.
Your prospectus is amended as follows:
Page 21: Replace the 3rd to last sentence in the fourth paragraph under the
subheading "TRUERETURNSM ACCUMULATION BENEFIT OPTION" under the heading
"Contract Value" with the following:
The Model Portfolio Option under a Guarantee Option has specific investment
requirements that are described in the "Investment Restrictions" section below
and may depend upon the Rider Date of your TrueReturn Option.
Page 22: Replace the last three sentences under the subheading "Accumulation
Benefit" under the heading "Contract Value"with the following:
Guarantee Option 1 offers a higher AB Factor and more rider periods than
Guarantee Option 2. Guarantee Option 1 and Guarantee Option 2 have different
investment restrictions. See "Investment Requirements" below for more
information.
Page 22: Replace the 2nd sentence of the first paragraph under the subheading
"Investment Requirements" under the heading "Contract Value" with the following:
The specific requirements will depend on the Model Portfolio Option you select
and the effective date of your TrueReturn Option. These requirements are
described below in more detail.
Page 22: Replace the third paragraph under the subheading "Investment
Requirements" under the heading "Contract Value" with the following:
On the Rider Date, you must select only one of the Model Portfolio Options in
which to allocate your Contract Value. We currently offer one Model Portfolio
Option with each of the available Guarantee Options. The Model Portfolio Options
that are available under Guarantee Options may differ depending upon the
effective date of your TrueReturn Option. Please refer to the Model Portfolio
Option 1 and Model Portfolio Option 2 sections for more details. We may add
Model Portfolio Options in the future. The following table summarizes the Model
Portfolio Option currently available for use with each Guarantee Period under
the TrueReturn Option:
- ----------------------------------------------------- --------------------------
Guarantee Option 1 Guarantee Option 2
- ----------------------------------------------------- --------------------------
Model Portfolio Option 1 Model Portfolio Option 2
- ----------------------------------------------------- --------------------------
Page 23: Delete the last paragraph under the subheading "Investment
Requirements" under the heading "Contract Value".
Page 23: Replace the sub-section entitled "Model Portfolio Options 1 and 2"
under the heading "Contract Value" with the following:
Model Portfolio Option 1.
If you choose or transfer your entire Contract Value into Model Portfolio Option
1 under Guarantee Option 1, you must allocate a certain percentage of your
Contract Value into each of three asset categories. Please note that certain
Investment Alternatives are not available under Model Portfolio Option 1. You
may choose the Variable Sub-Accounts in which you want to invest, provided you
maintain the percentage allocation requirements for each category. You may also
make transfers among the Variable Sub-Accounts within each category at any time,
provided you maintain the percentage allocation requirements for each category.
However, each transfer you make will count against the 12 transfers you can make
each Contract Year without paying a transfer fee.
Effective October 1, 2004, certain Variable Sub-Accounts under Model Portfolio 1
have been reclassified into different asset categories. These changes apply to
True Return Options effective prior to and on or after October 1, 2004. The
following table describes the percentage allocation requirements for Model
Portfolio Option 1 and Variable Sub-Accounts available under each category(1):
- --------------------------------------------------------------------------------
Model Portfolio Option 1
- --------------------------------------------------------------------------------
20% Category A
50% Category B
30% Category C
0% Category D
- --------------------------------------------------------------------------------
Category A Category D
Putnam VT Money Market (Variable Sub-Accounts not available under
Van Kampen LIT Money Market Model Portfolio Option 1)
Category B Oppenheimer Global Securities/VA
FTVIP Franklin U.S. Government Putnam VT Health Sciences(1)
Lord Abbett Series Fund - Bond-Debenture(2) Putnam VT New Opportunities(1)
Oppenheimer Bond/VA(2) Putnam VT Vista
Oppenheimer High Income/VA STI Classic Mid-Cap Equity
Oppenheimer Strategic Bond/VA Van Kampen LIT Aggressive Growth
Putnam VT High Yield Van Kampen UIF Equity Growth(3)
Putnam VT Income Van Kampen UIF Small Company Growth(3)
STI Classic Investment Grade Bond
Van Kampen UIF Emerging Markets Debt(3)
Van Kampen UIF U.S. Real Estate(3)
Category C
FTVIP Franklin Growth and Income Securities
FTVIP Franklin Income Securities
FTVIP Franklin Large Cap Growth Securities
FTVIP Franklin Small Cap Value Securities
FTVIP Mutual Shares Securities
FTVIP Templeton Developing Markets Securities
FTVIP Templeton Foreign Securities
Lord Abbett Series Fund - All Value(2)
Lord Abbett Series Fund - Growth and Income(2)
Lord Abbett Series Fund - Growth Opportunities(2)
Lord Abbett Series Fund - Mid-Cap Value(2)
Oppenheimer Aggressive Growth/VA
Oppenheimer Balanced/VA
Oppenheimer Capital Appreciation/VA
Oppenheimer Main Street/VA
Oppenheimer Main Street Small Cap/VA
Putnam VT The George Putnam Fund of Boston
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT International Equity
Putnam VT Investors
Putnam VT New Value
Putnam VT Research(1)
Putnam VT Utilities Growth and Income(1)
Putnam VT Voyager
STI Classic Capital Appreciation
STI Classic Growth and Income
STI Classic International Equity
STI Classic Small Cap Value Equity
STI Classic Value Income Stock
Van Kampen LIT Comstock
Van Kampen LIT Emerging Growth
Van Kampen LIT Growth and Income
Van Kampen UIF Equity and Income(3)
Van Kampen UIF Global Franchise(3)
Van Kampen UIF U.S. Mid Cap Value(3)
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option
1. We will use the percentage allocations as of your most recent instructions.
(1) The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004. If you choose this rider on or after
October 1, 2004, you must transfer any portion of your Contract Value that is
allocated to these Variable Sub-Accounts to any of the remaining Variable
Sub-Accounts available with the TrueReturn Option prior to adding the TrueReturn
Option to your Contract.
(2) The Variable Sub-Account was first offered under the Contracts on October 1,
2004. See the first part of this two-part supplement (Variable Sub-Account
Additions and Closures) for additional information.
(3) Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
Model Portfolio Option 2.
The investment requirements under Model Portfolio Option 2 depend on the Rider
Date of your TrueReturn Option.
Rider Date prior to October 1, 2004
If your TrueReturn Option Rider Date is prior to October 1, 2004 and you select
Model Portfolio Option 2, you must allocate your Contract Value among four asset
categories in accordance with the percentage allocation requirements set out in
the table below. You may choose the Variable Sub-Accounts in which you want to
invest, provided you maintain the percentage allocation requirements for each
category. You may also make transfers among the Variable Sub-Accounts within
each category at any time, provided you maintain the percentage allocation
requirements for each category. However, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table describes the percentage allocation requirements for Model
Portfolio Option 2 (Rider Date prior to October 1, 2004) and the Variable
Sub-Accounts available under each category(1):
- --------------------------------------------------------------------------------
Model Portfolio Option 2
(Rider Date prior to October 1, 2004)
- --------------------------------------------------------------------------------
10% Category A
20% Category B
50% Category C
20% Category D
- --------------------------------------------------------------------------------
Category A Category D
Putnam VT Money Market FTVIP Franklin Small Cap Value Securities
Van Kampen LIT Money Market FTVIP Templeton Developing Markets Securities
FTVIP Templeton Foreign Securities
Category B Oppenheimer Aggressive Growth/VA
FTVIP Franklin U.S. Government Oppenheimer Capital Appreciation/VA
Lord Abbett Series Fund - Bond-Debenture(2) Oppenheimer Global Securities/VA
Oppenheimer Bond/VA(2) Oppenheimer Main Street Small Cap/VA
Oppenheimer High Income/VA Putnam VT Health Sciences(1)
Oppenheimer Strategic Bond/VA Putnam VT International Equity
Putnam VT High Yield Putnam VT Investors
Putnam VT Income Putnam VT New Opportunities(1)
STI Classic Investment Grade Bond Putnam VT Vista
Van Kampen UIF Emerging Markets Debt(3) Putnam VT Voyager
Van Kampen UIF U.S. Real Estate(3) STI Classic Capital Appreciation
STI Classic International Equity
Category C STI Classic Mid-Cap Equity
FTVIP Franklin Growth and Income Securities STI Classic Small Cap Value Equity
FTVIP Franklin Income Securities Van Kampen LIT Aggressive Growth
FTVIP Franklin Large Cap Growth Securities Van Kampen LIT Emerging Growth
FTVIP Mutual Shares Securities Van Kampen UIF Equity Growth(3)
Lord Abbett Series Fund - All Value(2) Van Kampen UIF Global Franchise(3)
Lord Abbett Series Fund - Growth and Income(2) Van Kampen UIF Small Company Growth(3)
Lord Abbett Series Fund - Growth Opportunities(2)
Lord Abbett Series Fund - Mid-Cap Value(2)
Oppenheimer Balanced/VA
Oppenheimer Main Street/VA
Putnam VT The George Putnam Fund of Boston
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT New Value
Putnam VT Research(1)
Putnam VT Utilities Growth and Income(1)
STI Classic Growth and Income
STI Classic Value Income Stock
Van Kampen LIT Comstock
Van Kampen LIT Growth and Income
Van Kampen UIF Equity and Income(3)
Van Kampen UIF U.S. Mid Cap Value(3)
- ----------------------------------------------------- --------------------------
Each calendar quarter, we will use the Automatic Portfolio Rebalancing Program
to automatically rebalance your Contract Value in each Variable Sub-Account and
return it to the percentage allocation requirements for Model Portfolio Option 2
(Rider Date prior to October 1, 2004). We will use the percentage allocations as
of your most recent instructions.
(1) The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004.
(2) The Variable Sub-Account was first offered under the Contracts on October 1,
2004. See the first part of this two-part supplement (Variable Sub-Account
Additions and Closures) for additional information.
(3) Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.
Rider Date on or after October 1, 2004
If your TrueReturn Option Rider Date is on or after October 1, 2004, and you
select Model Portfolio Option 2, you may allocate your Contract Value among any
of a selected group of available Variable Sub-Accounts listed below. However,
you may not allocate your Contract Value among any of the excluded Variable
Sub-Accounts listed below. You may choose to invest in or transfer among any of
the available Variable Sub-Accounts. However, each transfer you make will count
against the 12 transfers you can make each Contract Year without paying a
transfer fee.
The following table lists the available and excluded Variable Sub-Accounts
available under Model Portfolio Option 2 (Rider Date on or after October 1,
2004)(1):
- --------------------------------------------------------------------------------
Model Portfolio Option 2
(Rider Date on or after October 1, 2004)
- ---------------------------------------------------- ---------------------------
Available Excluded
- ----------------------------------------------------- --------------------------
- ----------------------------------------------------- --------------------------
FTVIP Franklin Growth and Income Securities Oppenheimer Global Securities/VA
FTVIP Franklin Income Securities Putnam VT Vista
FTVIP Franklin Large Cap Growth Securities STI Classic Mid-Cap Equity
FTVIP Franklin Small Cap Value Securities Van Kampen LIT Aggressive Growth
FTVIP Franklin U.S. Government Van Kampen UIF Equity Growth(3)
FTVIP Mutual Shares Securities Van Kampen UIF Small Company Growth(3)
FTVIP Templeton Developing Markets Securities
FTVIP Templeton Foreign Securities
Lord Abbett Series Fund - All Value(2)
Lord Abbett Series Fund - Bond-Debenture(2)
Lord Abbett Series Fund - Growth and Income(2)
Lord Abbett Series Fund - Growth Opportunities(2)
Lord Abbett Series Fund - Mid-Cap Value(2)
Oppenheimer Aggressive Growth/VA
Oppenheimer Balanced/VA
Oppenheimer Bond/VA(2)
Oppenheimer Capital Appreciation/VA
Oppenheimer High Income/VA
Oppenheimer Main Street Small Cap/VA
Oppenheimer Main Street/VA
Oppenheimer Strategic Bond/VA
Putnam VT The George Putnam Fund of Boston
Putnam VT Global Asset Allocation
Putnam VT Growth and Income
Putnam VT High Yield
Putnam VT Income
Putnam VT International Equity
Putnam VT Investors
Putnam VT Money Market
Putnam VT New Value
Putnam VT Voyager
STI Classic Capital Appreciation
STI Classic Growth and Income
STI Classic International Equity
STI Classic Investment Grade Bond
STI Classic Small Cap Value Equity
STI Classic Value Income Stock
Van Kampen LIT Comstock
Van Kampen LIT Emerging Growth
Van Kampen LIT Growth and Income
Van Kampen LIT Money Market
Van Kampen UIF Emerging Markets Debt(3)
Van Kampen UIF Equity and Income(3)
Van Kampen UIF Global Franchise(3)
Van Kampen UIF U.S. Mid Cap Value(3)
Van Kampen UIF U.S. Real Estate(3)
- ----------------------------------------------------- --------------------------
(1) The Putnam VT Health Sciences Variable Sub-Account (Class IB, Category D
under TrueReturn), the Putnam VT New Opportunities Variable Sub-Account (Class
IB, Category D under TrueReturn), the Putnam VT Research Variable Sub-Account
(Class IB, Category C under TrueReturn), and the Putnam VT Utilities Growth and
Income Variable Sub-Account (Class IB, Category C under TrueReturn) were only
offered with Contracts issued prior to October 1, 2004 and closed to new
investments effective October 1, 2004. If you add the True Return Option to your
Contract on or after October 1, 2004, you must transfer any portion of your
Contract Value that is allocated to these Variable Sub-Accounts to any of the
remaining Variable Sub-Accounts available with the TrueReturn Option prior to
adding the TrueReturn Option to your Contract.
(2) The Variable Sub-Account was first offered under the Contracts on
October 1, 2004. See the first part of this two-part supplement (Variable
Sub-Account Additions and Closures) for additional information.
(3) Morgan Stanley Investment Management, Inc., the adviser to the UIF
Portfolios, does business in certain instances using the name Van Kampen.