FORM OF
SUPPLEMENT DATED OCTOBER 22, 2001 TO
PROSPECTUS DATED MAY 1, 2001 FOR
CONSULTANT I FLEXIBLE PREMIUM INDIVIDUAL
DEFERRED VARIABLE ANNUITY CONTRACT
Issued by LINCOLN BENEFIT LIFE COMPANY
In connection with LINCOLN BENEFIT LIFE VARIABLE ANNUITY ACCOUNT
This supplement updates certain information contained in the prospectus and
supersedes any inconsistent information. You should attach this supplement to
the prospectus and retain it with the prospectus for future reference. You may
obtain an additional copy of the prospectus, free of charge, by writing or
calling Lincoln Benefit Life Company ("Lincoln Benefit") at the address or
telephone number set forth below.
The purpose of this supplement is to notify you of a proposal to substitute
shares of the Strong Discovery Fund II Portfolio with shares of the T. Rowe
Price MidCap Growth Fund Portfolio.
Subaccounts that invest in the T. Rowe Price MidCap Growth Fund Portfolio
already are currently available under your Contract. On October 19, 2001 Lincoln
Benefit filed an application with the Securities and Exchange Commission (the
"Commission") requesting an order approving the Substitution. Upon obtaining the
order from the Commission approving the Substitutions, and subject to any prior
approval by applicable insurance authorities, Lincoln Benefit and Lincoln
Benefit Life Variable Annuity Account propose to effect the Substitution as soon
as is practicable.
Lincoln Benefit has proposed the Substitution because the adviser to the Strong
Discovery Fund II Portfolio has determined that it no longer is economic to
continue to offer shares of the Strong Discovery Fund II Portfolio, and the
adviser intends to close the portfolio to new investments and ultimately to
liquidate it. Lincoln Benefit has selected the T. Rowe Price MidCap Growth Fund
Portfolio to replace the Strong Discovery Fund II Portfolio because the T. Rowe
Price MidCap Growth Fund Portfolio has similar investment objectives, more
assets, better long-term performance, and lower expenses.
We currently waive the transfer fee on all transfers and, while we reserve the
right at any time to impose that fee on any transfer after the first in each
month, we have no current intention of collecting that fee. Accordingly, prior
to the Substitution you may make transfers from the Strong Discovery Fund II
Portfolio without any transfer fee or limit on the number of transfers, as
provided in our current prospectus. In addition, Contract owners will receive a
Notice within five (5) days after the Substitution that the Substitution has
taken place. For a period of thirty (30) days from the mailing of the Notice,
Contract owners may transfer all assets, as substituted, to any other available
subaccount without limitation or charge. During the thirty (30) day period after
the Notice is mailed, we will not exercise our right to impose a transfer fee
with respect to transfers involving the assets affected by the Substitution.
In preparation for the Substitution, starting on November 5, 2001, we will not
permit you to allocate new premiums or make additional transfers to the
Subaccount that invests in the Strong Discovery Fund II Portfolio. Even after
that date, if you are enrolled in one of our automatic transaction programs,
such as dollar cost averaging, portfolio rebalancing, and systematic
withdrawals, we will continue to effect automatic transactions involving the
Strong Discovery Fund II Portfolio. When the SEC approves our application and we
effect the Substitution, however, we will substitute the T. Rowe Price MidCap
Growth Fund Portfolio for the Strong Discovery Fund II Portfolio for all
purposes under your Contract. Thus, for example, unless you instruct us
otherwise, we will allocate to the T. Rowe Price MidCap Growth Fund Portfolio
any percentage of your new purchase payments that previously would have been
allocated to the Strong Discovery Fund II Portfolio. Likewise, unless you
instruct us otherwise, we will substitute the T. Rowe Price MidCap Growth Fund
Portfolio for the Strong Discovery Fund II Portfolio in effecting transactions
under our automatic transaction programs such as dollar cost averaging,
portfolio rebalancing, and systematic withdrawals.
You may obtain a prospectus by writing or calling Lincoln Benefit at the address
or telephone number set out below.
Lincoln Benefit Life Company
Street Address: 2940 South 84th St., Lincoln, NE 68506
Mailing Address: P. O. Box 82532, Lincoln, NE 68501-2532
Telephone Number: 1-800-525-9287