Lincoln Benefit Life Company
Lincoln Benefit Life Variable Annuity Account
Supplement, dated January 14, 2005,
to
The LBL Advantage Variable Annuity Prospectus
dated May 1, 2004
This supplement amends certain disclosure contained in the above-referenced
prospectus for certain variable annuity contracts issued by Lincoln Benefit Life
Company.
We have received notice that the Board of Trustees ("Board") of PIMCO Advisors
VIT has approved the liquidation, on or about April 29, 2005 (the "Closing
Date"), of the PEA Science and Technology Portfolio (the "PEA Portfolio").
The Board based its decision, in part, upon the fact that the PEA Portfolio is
relatively small in asset size and has failed to garner significant exposure in
the variable contract market. In addition, the Board believes the outlook for
future growth of the PEA Portfolio is not encouraging.
Due to the liquidation of the PEA Portfolio, we will no longer accept new
premiums for investment in, nor will we permit transfers to, the PEA Science and
Technology Portfolio Sub-Account ("PEA Sub-Account") on or after April 29, 2005.
Because the PEA Sub-Account will no longer be offered as an investment
alternative as of the Closing Date, you may wish to transfer, prior to April 29,
2005, some or all of your interest in the PEA Sub-Account to the other
investment alternatives currently offered by your Contract. Any value remaining
in the PEA Sub-Account will be transferred automatically, as of the Closing
Date, to the PIMCO VIT Money Market Sub-Account, an investment alternative
already available under your Contract. These transfers are not subject to a
transfer fee.
If you currently have allocations made to the PEA Sub-Account through automatic
additions, automatic portfolio rebalancing, dollar cost averaging or systematic
withdrawal programs, your allocation in the PEA Sub-Account will also need to be
changed in these programs. If you do not change this allocation to other
investment alternatives currently available under your Policy, any allocation to
the PEA Sub-Account will be automatically allocated, as of the Closing Date, to
the PIMCO VIT Money Market Sub-Account.
If your interest in the PEA Sub-Account is transferred automatically on the
Closing Date to the PIMCO VIT Money Market Sub-Account, for 60 days following
the Closing Date, you may transfer your interest in the PIMCO VIT Money Market
Sub-Account to any other investment alternative(s) available under your
Contract. This transfer is not subject to a transfer fee.
We will send you a confirmation that shows the amount that we credited to the
PIMCO VIT Money Market Sub-Account or to the investment alternative that you
chose and the date of the transaction. For additional information on how to
transfer to another investment alternative, or how to make a change to your
current allocation(s), please contact your financial representative or call our
Customer Service Center at the number listed below.
Attached, as Appendix A, is a list of the Portfolios and Fixed Account
Investment Alternatives currently available under your Contract.
Please keep this supplement for future reference together with your
prospectuses.
Number for Customer Service Center: 1-800-865-5237
Appendix A
The LBL Advantage Variable Annuity contract offers a variety of Investment
Alternatives that encompass investment choices ranging from aggressive to
conservative. Below is a listing of the Portfolios and Fixed Account Investment
Alternatives currently available. Also included is the investment objective for
each Portfolio.
For more complete information about each Portfolio, including expenses and risks
associated with the Portfolio, please refer to the relevant prospectus for the
Portfolio.
PORTFOLIOS
AIM V.I. Basic Value Fund - Series I
Seeks long-term growth of capital.
AIM V.I. Dent Demographics Trends Fund - Series I
Seeks long-term growth of capital.
Alger American Growth Portfolio - Class S Seeks long-term capital appreciation.
Fidelity VIP Equity-Income Portfolio - Service Class 2 Seeks reasonable income.
Fidelity VIP Growth Portfolio - Service Class 2
Seeks capital appreciation.
Fidelity VIP Investment Grade Bond Portfolio - Service Class 2
Seeks as high a level of current income as is consistent with the preservation
of capital.
Fidelity VIP Overseas Portfolio - Service Class 2 Seeks long-term growth of
capital.
Janus Aspen Series Capital Appreciation Portfolio: Institutional Shares
Seeks long-term growth of capital.
Janus Aspen Series Foreign Stock Portfolio: Service Shares
Seeks long-term growth of capital.
Janus Aspen Series Worldwide Growth Portfolio: Service Shares
Seeks long-term growth of capital in a manner consistent with the preservation
of capital.
Lazard Emerging Markets Portfolio
Seeks long-term capital appreciation
MFS New Discovery Series - Service Class
Seeks capital appreciation.
MFS Utilities Series - Service Class Seeks capital growth and current income.
Oppenheimer Main Street Small Cap Fund/VA - Service Shares
Seeks capital appreciation.
Oppenheimer International Growth Fund/VA - Service Shares
Seeks capital appreciation.
PAVIT OpCap Balanced Portfolio Seeks growth of capital and investment income.
PAVIT OpCap Small Cap Portfolio
Seeks capital appreciation.
PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) - Administrative Shares
Seeks to maximize total return, consistent with preservation of capital and
prudent investment management.
PIMCO VIT Money Market Portfolio - Administrative Shares
Seeks to obtain maximum current income consistent with preservation of capital
and daily liquidity.
PIMCO VIT Real Return Portfolio - Administrative Shares
Seeks maximum real return, consistent with preservation of real capital and
prudent investment management.
PIMCO VIT Total Return Portfolio - Administrative Shares
Seeks to maximize total return, consistent with preservation of capital and
prudent investment management.
Putnam VT High Yield Fund - Class IB
Seeks high current income. Capital growth is a secondary goal when consistent
with achieving high current income. The fund seeks its goal by investing at
least 80% in U.S. corporate rated below investment grade (junk bonds) and that
have intermediate to long-term maturities (three years or longer.)
Putnam VT International Growth and Income Fund - Class IB Seeks capital growth.
Current income is a secondary objective.
Rydex VT OTC Fund
Seeks investment results that correspond to a benchmark for over-the-counter
securities. The Portfolio's current benchmark is the NASDAQ 100 Index.
Rydex VT Sector Rotation Fund
Seeks long-term capital appreciation.
Salomon Brothers Variable All Cap Fund - Class I
Seeks capital appreciation.
Salomon Brothers Variable Investors Fund - Class I
Seeks long-term growth of capital with current income as a secondary objective.
Scudder VIT EAFE Equity Index Fund - Class B
Seeks to replicate as closely as possible before deduction of expenses,
performance of the MSCI EAFE Index which emphasizes stocks of companies in major
markets in Europe, Australia, and the Far East.
Scudder VIT Equity 500 Index Fund - Class B
Seeks to replicate as closely as possible before deduction of expenses,
performance of the S&P 500 Index which emphasizes stocks of large U.S.
companies.
Scudder VIT Small Cap Index Fund - Class B
Seeks to replicate as closely as possible before deduction of expenses, the
performance of the Russell 2000 Index which emphasizes stocks of small U.S.
companies.
Van Kampen UIF Equity Growth Portfolio, Class I
Seeks long-term capital appreciation by investing primarily in growth-oriented
equity securities of large capitalization companies.
Van Kampen UIF High Yield Portfolio, Class I
Seeks above-average total return over a market cycle of three to five years by
investing primarily in high yield securities (commonly referred to as "junk
bonds").
Van Kampen UIF U.S. Mid Cap Value Portfolio, Class I
Seeks above-average total return over a market cycle of three to five years by
investing in common stocks and other equity securities.
Van Kampen UIF U.S. Real Estate Portfolio, Class II
Seeks to provide above-average current income and long-term capital appreciation
by investing primarily in equity securities of companies in the U.S. real estate
industry, including real estate investment trusts.
Van Kampen LIT Aggressive Growth Portfolio, Class II
Seeks capital growth.
Van Kampen LIT Growth and Income Portfolio, Class II Seeks long-term growth of
capital and income.
Fixed Account Options
Standard Fixed Account
Guaranteed Maturity Fixed Account