485BPOS 1 d485bpos.htm LIFETIME VARIABLE SELECT & PERSONAL ANNUITY SELECT Lifetime Variable Select & Personal Annuity Select

 

As Filed with the Securities and Exchange Commission on April 22, 2008

Registration File Nos. 333-61761

811-08963

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM N-4

 

 

 

      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933    ¨
      PRE-EFFECTIVE AMENDMENT NO.    ¨
     
      POST-EFFECTIVE AMENDMENT NO. 14    x
     
      and/or   
     
      REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940    ¨
     
     

AMENDMENT NO. 26

(Check appropriate box or boxes.)

   x

 

 

TIAA-CREF LIFE SEPARATE

ACCOUNT VA-1

(Exact name of registrant)

 

 

TIAA-CREF LIFE INSURANCE COMPANY

(Name of depositor)

730 Third Avenue

New York, NY 10017-3206

(Address of depositor’s principal executive offices)

Depositor’s Telephone Number, including Area Code: (800) 223-1200

 

 

 

Copy to:
Edward L. Hancock, Esquire       Jeffrey S. Puretz, Esq.
Teachers Insurance and Annuity
Association of America
     

Dechert LLP

1775 I Street, N.W.

8500 Andrew Carnegie Boulevard       Washington, DC 20006
Charlotte, North Carolina 28226      
(Name and address of agent for service)

 

 

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box)

¨  immediately upon filing pursuant to paragraph (b) of Rule 485

x  on May 1, 2008 pursuant to paragraph (b) of Rule 485

¨  60 days after filing pursuant to paragraph (a)(1) of Rule 485

¨  on (date) pursuant to paragraph (a)(1) of Rule 485

¨  75 days after filing pursuant to paragraph (a)(2) of Rule 485

¨  on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:

¨  This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Title of Securities Being Registered:   Individual, Flexible Premium Deferred Variable Annuity Contracts

Filing Fee:    None

 

 

 

 


 

PROSPECTUS

May 1, 2008

LIFETIME VARIABLE SELECT

Individual Flexible Premium Deferred Variable Annuity Contract Funded Through TIAA-CREF Life Separate Account VA-1

of TIAA-CREF Life Insurance Company

This prospectus describes information you should know before investing in the Lifetime Variable Select, an individual flexible premium deferred variable annuity contract offered by TIAA-CREF Life Insurance Company (“TIAA-CREF Life”) and funded through the TIAA-CREF Life Separate Account VA-1 (the “Separate Account”). Before you invest, please read this prospectus carefully, along with the accompanying fund prospectus, and keep it for future reference.

The contract is designed for individual investors who desire to accumulate funds on a tax-deferred basis for retirement or other long-term investment purposes, and to receive future payment of those funds as lifetime income or through other payment options. Whether the contract or certain investment accounts are available to you is subject to approval by regulatory authorities in your state.

You may allocate premiums to ten investment accounts which invest in the following mutual funds of the TIAA-CREF Life Funds:

 

nGrowth Equity Fund

 

nStock Index Fund

nGrowth & Income Fund

 

nSocial Choice Equity Fund

nInternational Equity Fund

 

nReal Estate Securities Fund

nLarge-Cap Value Fund

 

nBond Fund

nSmall-Cap Equity Fund

 

nMoney Market Fund

As with all variable annuities, your accumulation in your contract can increase or decrease, depending on how well the investment account’s mutual fund investment performs over time. TIAA-CREF Life doesn’t guarantee the investment performance of the funds or the investment accounts, and you bear the entire investment risk. Note that not all funds are available in all states.

Separate prospectuses for the funds accompany this prospectus. They provide more information about the funds listed above. Note that the accompanying prospectuses for the funds may provide information for other funds that are not readily available through the contract. When you consult the accompanying prospectuses, you should be careful to refer only to the information regarding the funds listed above.

More information about the separate account and the contract is on file with the Securities and Exchange Commission (“SEC”) in a Statement of Additional Information (“SAI”) dated May 1, 2008. You can receive a free copy of the SAI by writing us at TIAA-CREF Life, 730 Third Avenue, New York, New York 10017-3206 (attention: Central Services), or by calling 877 825-0411. The SAI is “incorporated by reference” into this prospectus; that means it’s legally part of the prospectus. The SAI’s table of contents is located on the last page of this prospectus. The SEC maintains a website (www.sec.gov) that contains the SAI, other material incorporated by reference into the prospectus and other information regarding the separate account.

The SEC has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

An investment in the Contract is not a deposit of the TIAA-CREF Trust Company, FSB, and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

LOGO

 


TABLE OF CONTENTS

 

 


 

This prospectus describes the variable annuity issued by TIAA-CREF Life. It doesn’t constitute an offering in any jurisdiction where such an offering can’t lawfully be made. No dealer, salesman, or anyone else is authorized to give any information or to make any representation about this offering other than what is contained in this prospectus. If anyone does so, you shouldn’t rely on it.


 

DEFINITIONS

Throughout the prospectus, “TIAA-CREF Life,” “we,” and “our” refer to TIAA-CREF Life Insurance Company. “You” and “your” mean any contractowner or any prospective contractowner.

The terms and phrases below are defined so you’ll know precisely how we’re using them. To understand some definitions, you may have to refer to other defined terms.

1940 Act.  The Investment Company Act of 1940, as amended.

Accumulation.  The total value of your accumulation units.

Accumulation Period.  The period that begins with your first premium and continues as long as you still have an amount accumulated in the separate account.

Accumulation Unit.  A share of participation in the separate account.

Annuitant.  The natural person whose life is used in determining the annuity payments to be received. The annuitant may be the contractowner or another person.

Annuity Unit.  A measure used to calculate the amount of annuity payments due a contractowner.

Beneficiary.  Any person or institution named to receive benefits if you die during the accumulation period or if you die while any annuity income or death benefit payments remain due. You don’t have to name the same beneficiary for both of these two situations.

Business Day.  Any day the New York Stock Exchange (“NYSE”) is open for trading. A business day ends at 4 p.m. Eastern Time, or when trading closes on the NYSE, if earlier.

Calendar Day.  Any day of the year. Calendar days end at the same time as business days.

Commuted Value.  The present value of annuity payments used when an annuity will be paid in a lump sum instead of a series of payments. For any contract, the commuted value is based on interest at an effective annual rate of 4 percent, calculated using the amounts that would have been paid if periodic payments were to continue and the annuity unit value used for each payment equaled the value as of the effective date of the calculation.

Contract.  The individual, flexible premium, deferred variable annuity contract described in this prospectus.

Contractowner.  The person (or persons) who controls all the rights and benefits under a contract.

 

Lifetime Variable Select   n    Prospectus   3


 

Income Change Method.  How you choose to have your variable annuity payments revalued. Under the annual income change method, your payments are revalued once each year. Under the monthly income change method, your payments are revalued every month.

Income Option.  Any of the ways you can receive annuity income. It is also referred to as an “annuity option.”

Internal Revenue Code (“IRC”).  The Internal Revenue Code of 1986, as amended.

Investment Account.  Each investment account is a sub-account of the separate account and invests its assets in shares of a corresponding underlying fund.

Premium.  Any amount you invest in the contract.

Second Annuitant.  The natural person whose life, together with the Annuitant’s life, is used in determining the amount of annuity payments and how long those payments will be received under the Two-Life Annuities Income Option.

Separate Account.  TIAA-CREF Life Separate Account VA-1, which was established by TIAA-CREF Life under New York State law to fund your variable annuity contract. The separate account holds its assets apart from TIAA-CREF Life’s other assets.

Survivor Income Option.  An option that continues lifetime annuity payments as long as either the annuitant or the second annuitant is alive.

TIAA.  Teachers Insurance and Annuity Association of America. TIAA-CREF Life is an indirect wholly owned subsidiary of TIAA.

TIAA-CREF Life.  TIAA-CREF Life Insurance Company.

Valuation Day.  Any business day, as well as the last calendar day of each month. Valuation days end as of the close of all U.S. national exchanges where securities or other investments of the separate account are principally traded. Valuation days that aren’t business days end at 4 p.m. Eastern Time.

SUMMARY

Read this summary together with the detailed information you’ll find in the rest of the prospectus.

WHAT IS THE LIFETIME VARIABLE SELECT?

Lifetime Variable Select is an individual flexible premium deferred variable annuity product that allows individual investors to accumulate funds on a

 

4   Prospectus   n   Lifetime Variable Select


 

tax-deferred basis for retirement or other long-term investment purposes, and to receive future payment based on the amounts accumulated as lifetime income or through other payment options.

Under the Lifetime Variable Select contract, you may allocate your premiums among ten investment accounts of a TIAA-CREF Life separate account that invest in the following mutual funds of the TIAA-CREF Life Funds:

 

n  Growth Equity Fund

 

n  Stock Index Fund

n  Growth & Income Fund

 

n  Social Choice Equity Fund

n  International Equity Fund

 

n  Real Estate Securities Fund

n  Large-Cap Value Fund

 

n  Bond Fund

n  Small-Cap Equity Fund

 

n  Money Market Fund

As with all variable annuity contracts, your accumulation in your contract can increase or decrease, depending on how well the fund underlying the investment account performs over time. TIAA-CREF Life doesn’t guarantee the investment performance of the funds or the investment accounts, and you bear the entire investment risk.

The contract accepts only after-tax dollars, which means your premiums can’t be excluded from your gross income for tax purposes. However, earnings on your accumulations in the separate account aren’t taxed until withdrawn or paid as annuity income. Withdrawals of accumulated investment earnings are taxable as ordinary income.

The contract is available to you provided it has been approved by the insurance department of your state of residence. Approvals are pending in certain jurisdictions.

WHAT EXPENSES MUST I PAY UNDER THE CONTRACT?

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering your contract.

The first table describes the fees that you will pay at the time that you transfer accumulation among investment accounts and lists certain categories of other contractowner transaction expenses for comparative purposes. State premium taxes may be deducted depending on your state of residence.

CONTRACTOWNER TRANSACTION EXPENSES

 

Sales load imposed on purchases (as a percentage of premiums)

   None

Deferred sales load (as a percentage of premiums or amount surrendered, as applicable)

   None

Premium taxes(1) (as a percentage of premiums, if applicable)

   1.0–3.5%

Surrender fees (as a percentage of amount surrendered)

   None

Transfer fee(2) (if applicable)

   $25

(1)

Only applicable in certain states. Where TIAA-CREF Life is required to pay this premium tax, it may deduct the amount of the premium tax paid from any premium payment.

 

(2)

There is no charge for the first 24 transfers in a contract year. However, we reserve the right to charge a $25 fee on all subsequent transfers. We currently do not impose a transfer fee.

 

Lifetime Variable Select   n    Prospectus   5


 

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

ANNUAL CONTRACT FEES

 

Annual Maintenance Fee(3)

                   $25

 

(3)

We impose the annual maintenance fee on every anniversary of your contract and on surrender of your contract. The annual maintenance fee is waived if your contract accumulations exceed $25,000 on the anniversary date of your contract or the date of surrender.

SEPARATE ACCOUNT ANNUAL EXPENSES

(as a percentage of average account value)

 

     Maximum
Contractual
Fees
   Fee
Waiver(4)
   Current
Fees

Mortality and expense risk charge

   1.00%    0.60%    0.40%

Administrative expense charge

   0.20%    0.00%    0.20%

Total separate account annual charges

   1.20%    0.60%    0.60%

 

(4)

TIAA-CREF Life has waived 0.60% of the mortality and expense risk charge, so that total current separate account annual charges are 0.60%. TIAA-CREF Life will provide at least three months’ notice before it raises the total separate account charges above 0.60%.

TIAA-CREF LIFE FUNDS ANNUAL EXPENSES

(as a percentage of fund average net assets)

These next two tables show the operating expenses charged by the various TIAA-CREF Life Funds available under your contract that you may pay periodically during the time you own the contract. The first table shows the maximum and minimum total operating expenses charged by these funds for the year ended December 31, 2007. The next table provides greater detail on the total operating expenses charged by each fund, and shows the total separate account and fund annual expenses. Expenses of the funds may be higher or lower in the future. More information concerning each fund’s fees and expenses is also contained in the TIAA-CREF Life Funds’ prospectus.

RANGE OF TOTAL ANNUAL FUND OPERATING EXPENSES

 

       Minimum
Expenses
     Maximum
Expenses

Total expenses that are deducted from fund assets, including management fees and other expenses

     0.06%      0.33%

 

6   Prospectus   n   Lifetime Variable Select


 

TOTAL ANNUAL FUND OPERATING EXPENSES BY FUND

 

    Management
(investment
advisory)
Fees
  Acquired
Fund Fees
and
Expenses
  Other
Expenses(5)
  Total
Annual
Fund
Operating
Expenses
  Current
Total
Separate
Account
Annual
Charges
  Current
Total
Separate
Account
and Fund
Annual
Expenses(6)

Growth Equity Fund

  0.25%   None   0.01%   0.26%   0.60%   0.86%

Growth & Income Fund

  0.23%   None   0.01%   0.24%   0.60%   0.84%

International Equity Fund

  0.29%   None   0.04%   0.33%   0.60%   0.93%

Large-Cap Value Fund

  0.24%   None   0.03%   0.27%   0.60%   0.87%

Small-Cap Equity Fund

  0.10%   None   0.01%   0.11%   0.60%   0.71%

Stock Index Fund

  0.06%   None   None   0.06%   0.60%   0.66%

Social Choice Equity Fund

  0.07%   None   None   0.07%   0.60%   0.67%

Real Estate Securities Fund

  0.25%   None   0.02%   0.27%   0.60%   0.87%

Bond Fund

  0.10%   None   None   0.10%   0.60%   0.70%

Money Market Fund

  0.06%   None   None   0.06%   0.60%   0.66%

(5)

Each fund’s investment manager pays for most of the fund’s advisory fees and operating expenses out of the fund’s management fees. However, a few categories of fund expenses are borne by the fund directly, including independent trustee fees, interest on borrowings, taxes and extraordinary expenses, and are reflected under “Other Expenses.”

 

(6)

If TIAA-CREF Life imposed the full amount of the administrative expense and mortality and expense risk charges, total annual separate account and fund expenses would be 1.46% for the Growth Equity Fund, 1.44% for the Growth & Income Fund, 1.53% for the International Equity Fund, 1.47% for the Large-Cap Value Fund, 1.31% for the Small-Cap Equity Fund, 1.26% for the Stock Index Fund, 1.27% for the Social Choice Equity Fund, 1.47% for the Real Estate Securities Fund, 1.30% for the Bond Fund, and 1.26% for the Money Market Fund.

 

Fund expenses are deducted from each underlying fund before TIAA-CREF Life is provided with the fund’s daily net asset value. TIAA-CREF Life then deducts separate account charges from the net asset value of the corresponding investment account.

Examples

The next two tables provide examples that are intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contractowner transaction expenses, separate account annual expenses, and fund fees and expenses.

These examples assume that you invest $10,000 in the specified investment account for the time periods indicated and that your investment earns a 5% return each year. The examples also assume that the full annual contract maintenance fee is charged, and that the maximum fees and expenses of the funds are assessed.

The first example assumes that the current separate account fee waivers are in place for each period. The second example assumes that there is no waiver of separate account charges.

 

Lifetime Variable Select   n    Prospectus   7


 

Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

EXAMPLE WITHOUT FEE WAIVERS

 

       1 Year      3 Years      5 Years      10 Years

Growth Equity Account

     $ 174      $ 537      $ 922      $ 1,996

Growth & Income Account

     $ 172      $ 531      $ 912      $ 1,974

International Equity Account

     $ 181      $ 558      $ 959      $ 2,074

Large-Cap Value Account

     $ 175      $ 540      $ 928      $ 2,007

Small-Cap Equity Account

     $ 158      $ 490      $ 843      $ 1,829

Stock Index Account

     $ 153      $ 475      $ 817      $ 1,773

Social Choice Equity Account

     $ 154      $ 478      $ 822      $ 1,784

Real Estate Securities Account

     $ 175      $ 540      $ 928      $ 2,007

Bond Account

     $ 157      $ 487      $ 838      $ 1,818

Money Market Account

     $ 153      $ 475      $ 817      $ 1,773

EXAMPLE WITH FEE WAIVERS

 

       1 Year      3 Years      5 Years      10 Years

Growth Equity Account

     $ 113      $ 349      $ 602      $ 1,311

Growth & Income Account

     $ 111      $ 343      $ 591      $ 1,287

International Equity Account

     $ 120      $ 371      $ 640      $ 1,393

Large-Cap Value Account

     $ 114      $ 353      $ 607      $ 1,323

Small-Cap Equity Account

     $ 98      $ 302      $ 520      $ 1,133

Stock Index Account

     $ 92      $ 286      $ 493      $ 1,072

Social Choice Equity Account

     $ 93      $ 289      $ 498      $ 1,085

Real Estate Securities Account

     $ 114      $ 353      $ 607      $ 1,323

Bond Account

     $ 97      $ 299      $ 515      $ 1,121

Money Market Account

     $ 92      $ 286      $ 493      $ 1,072

These tables are provided to help you understand the various expenses you would bear directly or indirectly as an owner of a contract. Remember that they don’t represent actual past or future expenses or investment performance. Actual expenses may be higher or lower. For more information, see “Charges.”

For condensed financial information pertaining to each investment account, please see Appendix A.

HOW DO I PURCHASE A CONTRACT?

To purchase a contract, you must complete an application and make an initial payment of at least $2,500. Additional contributions, including under an automatic investment plan using Electronic Funds Transfers (“EFT”), must be at least $50. For more information, see “Purchasing a Contract and Remitting Premiums.”

 

8   Prospectus   n   Lifetime Variable Select


 

CAN I CANCEL MY CONTRACT?

You can examine the contract and return it to TIAA-CREF Life for a refund, until the end of the “free look” period specified in your contract (which is a minimum of 10 days, but varies by state). In states that permit it, we’ll refund the accumulation value calculated on the date that you returned the contract and the refund request to us. (Note that the value of your initial premium may have gone down during the period.) In states that don’t allow us to refund accumulation value only, we’ll refund the premiums you paid to the contract. We will consider the contract returned on the date it’s postmarked and properly addressed with postage prepaid or, if it’s not postmarked, on the day we receive it. We will send you the refund within 7 days after we get written notice of cancellation and the returned contract. If you live in a state that requires refund of premiums, your total of premiums and transfers allocated to any investment account, other than the Money Market Account, during the “free look” period can’t exceed $10,000. For more information, see “Purchasing a Contract and Remitting Premiums.”

CAN I TRANSFER AMONG THE INVESTMENT ACCOUNT OPTIONS OR MAKE CASH WITHDRAWALS FROM THE CONTRACT?

Subject to limitations, you may transfer portions of your accumulation value among the investment accounts. All transfers must be for at least $250 or your entire contract accumulation. For more information see “Transfer Policies Regarding Market Timing and Frequent Trading.” All cash withdrawals must be for at least $1,000 or your entire contract accumulation, if less than $1,000. For more information, see “Transfers” and “Cash Withdrawals.”

Cash withdrawals may be taxed and you may have to pay a tax penalty if you take a cash withdrawal before age 59 1/2.

WHAT ARE MY OPTIONS FOR RECEIVING ANNUITY PAYMENTS UNDER THE CONTRACT?

Variable annuity payments are available under the contract. Variable annuity payments may increase or decrease, depending on how well the funds underlying the investment accounts perform over time. Your payments will also change depending on the income change method you choose—i.e., whether you choose to have your payments revalued monthly or annually.

The contract offers a variety of annuity options, including: One-Life Annuities, which pay income as long as the annuitant lives or until the end of a specified guaranteed period, whichever is longer; Fixed-Period Annuities, which pay income for a period of between 2 and 30 years; and Two-Life Annuities, which pay income as long as the annuitant lives, then continues at either the same or a reduced level for the life of the second annuitant or until the end of a specified guaranteed period, whichever is greater. For more information, see “The Contract—the Annuity Period.”

 

Lifetime Variable Select   n    Prospectus   9


 

WHAT DEATH BENEFITS ARE AVAILABLE UNDER THE CONTRACT?

If you die before receiving annuity payments, your beneficiary can receive a death benefit. The amount of the death benefit will be the greater of the amounts you’ve accumulated in your accounts or the total premiums paid under your contract (“adjusted” for any cash withdrawals). For more information, see “Death Benefits.”

TIAA-CREF LIFE INSURANCE COMPANY AND TIAA

The contracts are issued by TIAA-CREF Life Insurance Company, a stock life insurance company organized under the laws of the State of New York on November 20, 1996. All of the stock of TIAA-CREF Life is held by Teachers Insurance and Annuity Association of America (“TIAA”). TIAA-CREF Life’s headquarters are at 730 Third Avenue, New York, New York 10017-3206.

TIAA is a stock life insurance company organized under the laws of the State of New York. It was founded on March 4, 1918, by the Carnegie Foundation for the Advancement of Teaching. TIAA is the companion organization of the College Retirement Equities Fund (CREF), the first company in the United States to issue a variable annuity. CREF is a nonprofit membership corporation established in the State of New York in 1952. Together, TIAA and CREF, serving approximately 3.3 million people, form the principal retirement system for the nation’s education and research communities and represent one of the largest retirement systems in the world, based on assets under management. As of December 31, 2007, TIAA’s assets were approximately $196.4 billion; the combined assets for TIAA and CREF totaled approximately $417.8 billion (although neither TIAA nor CREF stands behind TIAA-CREF Life’s guarantees).

THE SEPARATE ACCOUNT

On July 27, 1998, we established TIAA-CREF Life Separate Account VA-1 under New York law. We own the assets in the separate account and we are obligated to pay all benefits under the contract. We may use the separate account to support other variable annuity contracts we issue. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act), and qualifies as a “separate account” within the meaning of the federal securities laws. This registration does not involve supervision of the management or investment practices or policies of the separate account by the SEC.

We have divided the separate account into investment accounts, each of which invests in shares of one underlying fund. The investment accounts buy and sell underlying fund shares at net asset value. Any dividends and distributions from an underlying fund are reinvested at net asset value in shares of that underlying fund.

 

10   Prospectus   n   Lifetime Variable Select


 

The assets in the separate account are kept separate from our general account and our other separate accounts. Assets equal to the reserves and contract liabilities of the separate account will not be charged with liabilities that arise from any other business we may conduct. We may transfer assets, in excess of the reserves and contract liabilities of the separate account, to our general account. All income, gains and losses, whether or not realized, of an investment account will be credited to or charged against that investment account without regard to our other income, gains or losses. The valuation of all assets in the separate account will be determined in accordance with all applicable laws and regulations. The separate account may include other investment accounts that are not available under the contracts and are not discussed in this prospectus.

TIAA-CREF LIFE FUNDS

GENERAL

TIAA-CREF Life Funds is an open-end management investment company that was organized as a business trust under Delaware law on August 13, 1998. TIAA-CREF Life Funds currently consists of ten funds but may add other funds in the future.

FUND PROSPECTUSES

The investment objectives, techniques and restrictions of the TIAA-CREF Life Funds, including the risks of investing in the funds, are described fully in the funds’ prospectus and SAI for the TIAA-CREF Life Funds. A copy of the prospectus or a profile of that prospectus accompanies this prospectus. The prospectus and SAI of the TIAA-CREF Life Funds may be obtained free of charge by writing TIAA-CREF Life Funds, 730 Third Avenue, New York, New York 10017-3206, by calling 877 825-0411, or by accessing the TIAA-CREF website at www.tiaa-cref.org. You should read the prospectus for the TIAA-CREF Life Funds carefully before investing in the investment accounts. You should consult your registered representative, who can provide advice on the investment accounts provided, as not all of them may be suitable for long-term investment needs.

The following summarizes each fund’s investment objective(s). There is no assurance that any of the funds will achieve its stated objective(s).

The funds available under your contract are:

Active Equity Funds:

The Growth Equity Fund seeks a favorable long-term return, mainly through capital appreciation, primarily from equity securities.

The Growth & Income Fund seeks a favorable long-term total return through both capital appreciation and investment income primarily from income-producing equity securities.

 

Lifetime Variable Select   n    Prospectus   11


 

The International Equity Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of foreign issuers.

The Large-Cap Value Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of large domestic companies.

The Small-Cap Equity Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of smaller domestic companies.

Index Funds:

The Stock Index Fund seeks a favorable long-term total return, mainly from capital appreciation, by investing primarily in a portfolio of equity securities selected to track the overall U.S. equity markets.

Specialty Funds:

The Social Choice Equity Fund seeks a favorable long-term total return that reflects the investment performance of the overall U.S. stock market while giving special consideration to certain social criteria.

The Real Estate Securities Fund seeks to obtain a favorable long-term total return through both capital appreciation and current income, by investing primarily in equity and fixed-income securities of companies principally engaged in or related to the real estate industry.

Fixed-Income and Money Market Funds:

The Bond Fund seeks as favorable a long-term total return through income as is consistent with preserving capital, primarily from investment-grade fixed-income securities.

The Money Market Fund seeks high current income consistent with maintaining liquidity and preserving capital. (Note that there is a possibility that, when contract charges are included, the yield on your Money Market Fund investment could be negative.)

INVESTMENT MANAGEMENT

Teachers Advisors, Inc. (“Advisors”), an indirect subsidiary of TIAA, manages the assets of the TIAA-CREF Life Funds. Advisors also manages the Stock Index Account of the TIAA Separate Account VA-1, TIAA-CREF Mutual Funds, and TIAA-CREF Institutional Mutual Funds. The same personnel also manage the CREF accounts on behalf of TIAA-CREF Investment Management, LLC, a registered investment advisor which is also a TIAA subsidiary.

 

12   Prospectus   n   Lifetime Variable Select


 

VOTING RIGHTS

The separate account is the legal owner of the shares of the underlying funds being offered through the investment accounts in your contract. It therefore has the right to vote its shares at any meeting of the underlying funds’ shareholders. Generally, open-end investment companies, such as the underlying funds, do not hold annual meetings of shareholders. However, if and when shareholder meetings are held, we will give you the right to instruct us how to vote the shares attributable to your contract. If we don’t receive timely instructions from you, we will vote your shares in the same proportion as the voting instructions received on all outstanding contracts. Please note that the effect of proportional voting is that a small number of contractowners may control the outcome of a vote. We may vote the shares of the underlying funds in our own right in some cases, if we determine that we may legally do so.

The number of underlying fund shares attributable to you is determined by dividing your interest in the applicable investment account by the net asset value of the underlying fund.

ADDING AND CLOSING ACCOUNTS OR SUBSTITUTING INVESTMENT PORTFOLIOS; ADDING OR DELETING INCOME METHODS

Where permitted by applicable law, we reserve the right to take certain actions that we deem necessary to serve your best interests and appropriate to carry out the purposes of this contract. When required by law, we will obtain approval by you, the SEC, and/or any appropriate regulatory authority. The actions that we may take include:

 

   

deregistering the separate account under the 1940 Act;

 

   

operating the separate account in any form permitted under the 1940 Act, or in any other form permitted by law;

 

   

taking any action necessary to comply with or obtain and continue any exemptions from the 1940 Act;

 

   

transferring any assets from an investment account: (a) into another investment account or investment account; or (b) into one or more separate accounts; or (c) into our general account;

 

   

adding, combining or removing investment accounts in the separate account;

 

   

substituting, for the underlying fund shares held in any investment account, the shares of another class issued by the underlying fund, or the shares of another investment company or any other investment permitted by law;

 

   

change the way we deduct or collect charges under the contract, but without increasing the charges unless and to the extent permitted by other provisions of this contract;

 

Lifetime Variable Select   n    Prospectus   13


 

   

making any other necessary technical changes in this contract in order to conform with any action this provision permits us to take; and

 

   

adding to, eliminating, or suspending your ability to allocate premiums or transfer accumulation value into any investment account.

We can add new investment accounts in the future that would invest in other underlying funds, funds or other investment vehicles. We don’t guarantee that the separate account, any existing investment account, or any investment account added in the future will always be available. We reserve the right to add or close investment accounts, substitute another underlying fund, fund or other investment vehicle without your consent, or combine investment accounts or underlying funds. A substituted underlying fund, fund or investment vehicle may have different fees and expenses. Substitutions and investment account closings may be made with respect to existing investments or the investment of future premiums, or both. However, no substitution will be made without any necessary approval of the SEC. An underlying fund also may discontinue offering its shares to the investment accounts. In addition, we reserve the right to make other structural and operational changes affecting the separate account and the contract.

We will notify you if any of these changes result in a material change in the underlying investments of an investment account of the separate account to which any part of your accumulation value is allocated. Information about any such change will be filed with any regulatory authority where required and will be subject to any required approval.

If you object to a material change and a portion of your accumulation value is attributable to the affected investment account, then you may transfer that value into another investment account.

To effect such transfers, we must receive your acceptable request at our Administrative Office within 60 days of the postmarked notice of material change. We will not deduct a transfer charge for this transaction.

THE CONTRACT—THE ACCUMULATION PERIOD

The contract is an individual flexible premium (you can contribute varying amounts) deferred variable annuity that accepts only after-tax dollars. The rights and benefits of the contract are summarized below. However, the descriptions you read here are qualified entirely by the contract itself. We plan on offering the contract in all fifty states, the District of Columbia and the United States Virgin Islands, although currently the contract will not be available to residents in those states where we haven’t yet received regulatory approval.

PURCHASING A CONTRACT AND REMITTING PREMIUMS

Initial Premiums. Generally, we’ll issue you a contract as soon as we receive your completed application and your initial premium at our home office. Initial

 

14   Prospectus   n   Lifetime Variable Select


 

premiums must be for at least $2,500. Please send your check, payable to TIAA-CREF Life Insurance Company, along with your completed application to:

TIAA-CREF

P.O. Box 530189

Atlanta, GA 30353-0189

Note that we cannot accept money orders, travelers checks, or cash. In addition, we will not accept a third-party check where the relationship of the payor to the account owner cannot be identified from the face of the check. We will credit your initial premium within two business days after we receive all necessary information and the premium itself. If we don’t have the necessary information within five business days, we’ll return your initial premium unless you instruct us otherwise upon being contacted.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the U.S. government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions, including us, to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth, Social Security number and other information that will allow us to identify you. Until you provide us with the information we need, we may not be able to open an account or effect any transactions for you.

If we are unable to verify your identity, or that of another person authorized to act on your behalf, or if we believe that we have identified potentially criminal activity, we reserve the right to take such action as we deem appropriate, which may include closing your account.

Additional Premiums. Subsequent premiums must be for at least $50. We reserve the right to limit premiums to no more than $1,000,000 a year. Send a check, payable to TIAA-CREF Life Insurance Company, along with a personalized payment coupon (supplied upon purchasing a contract) to:

TIAA-CREF

Personal Annuity Premiums

P.O. Box 530195

Atlanta, GA 30353-0195

If you don’t have a coupon, use a separate piece of paper to give us your name, address and contract number. These premiums will be credited as of the business day we receive them, and allocated in the same way as your prior premiums, unless you instruct otherwise. Currently, TIAA-CREF Life will accept premiums at any time both the contractowner and the annuitant are living and your contract is in the accumulation period. However, we reserve the right not to accept premiums under this contract after you have been given three months’ prior notice.

 

Lifetime Variable Select   n    Prospectus   15


 

Electronic Payment. You may make initial or subsequent investments by electronic payment. You may also establish an automatic investment plan using Electronic Funds Transfers (EFT) by completing an authorization form. A federal wire is usually received the same day and an ACH is usually received by the second day after transmission. Be aware that your bank may charge you a fee to wire funds, although ACH is usually less expensive than a federal wire. Here’s what you need to do:

 

  1. If you are sending in an initial premium, send us your completed application;

 

  2. Instruct your bank to wire money to:

Citibank, N.A.

ABA Number 021000089

New York, NY

Account of: TIAA-CREF Life Insurance Company

Account Number: 4068-4865

 

  3. Specify on the wire:

 

   

Your name, address and Social Security Number(s) or Taxpayer Identification Number

 

   

Indicate if this is for a new application or existing contract (provide contract number if existing)

Internet Transactions. If your state allows, you may complete and send us an application over the Internet, as long as you transmit your premium by electronic payment. Please visit the TIAA-CREF website at www.tiaa-cref.org and click on the after-tax personal annuities section for more information. Once completed, your transaction cannot be modified or cancelled (other than by exercising your “free look” right).

Certain Restrictions. You may only open one contract in any calendar year. Except as otherwise described in this prospectus, the contract doesn’t restrict how large your premiums are or how often you send them, although we reserve the right to impose restrictions in the future. Currently, your total premiums and transfers to the investment accounts, other than the Money Market Account, during the “free look” period can’t exceed $10,000 if you live in any of the following states: Georgia, Hawaii, Idaho, Iowa, Louisiana, Massachusetts, Michigan, Missouri, Nebraska, North Carolina, Oklahoma, Rhode Island, South Carolina, Utah, Washington, West Virginia, Wisconsin.

In addition, the total amount of premiums we accept from any financial advisory firm may be limited. Call us for more information.

We reserve the right to reject any premium payment or to place dollar limitations on the amount of a premium. If mandated under applicable law, including federal laws designed to counter terrorism and prevent money laundering, we may be required to reject a premium payment. We may also be required to block a contractowner’s account and refuse to pay any request for transfers, withdrawals, surrenders, or death benefits, until instructions are

 

16   Prospectus   n   Lifetime Variable Select


 

received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators.

More About Remitting Premiums. We will not be deemed to have received any premiums sent to the addresses designated in this prospectus for remitting premiums, until the third-party service administrator has received such premiums along with any necessary information.

ACCUMULATION UNITS

The premiums you allocate or transfers you make to the investment accounts purchase accumulation units. We calculate how many accumulation units to credit by dividing the amount allocated or transferred to the particular investment account by its accumulation unit value calculated at the close of the business day when we received your premium or completed transfer request. We may use a later business day for your initial premium. If we receive your premium or completed transfer request in good order anytime after the close of the business day, the accumulation unit value will be calculated the next business day. To determine how many accumulation units to subtract for transfers out and cash withdrawals, we use the unit value for the business day when we receive your completed transaction request and all required information and documents (unless you’ve chosen a later date).

The value of the accumulation units will depend mainly on the investment experience of the underlying funds, though the unit value reflects expense deductions from assets by TIAA-CREF Life. We calculate the unit value at the close of each valuation day. We multiply the previous day’s unit value by the net investment factor for the pertinent investment account of the separate account. The net investment factor reflects, for the most part, changes in the net asset value of the shares of the funds held by the investment account, and investment income and capital gains distributed to the investment account. The net investment factor is decreased by the separate account expense and risk charges.

TRANSFERS

You can transfer some (at least $250 at a time) or all of the amount you accumulate under your contract among the separate account’s investment accounts. Currently, we don’t charge you for transfers or limit the number of transfers you may make among the investment account options (except from the International Equity Account, as described below). If you make 25 or more transfers in any contract year, we reserve the right to impose a charge of $25 per transfer.

TRANSFER POLICIES REGARDING MARKET TIMING AND FREQUENT TRADING

There are contractowners who may try to profit from transferring money back and forth among investment accounts in an effort to “time” the market or for other reasons. As money is shifted in and out of these accounts, we incur

 

Lifetime Variable Select   n    Prospectus   17


 

transaction costs and the underlying funds incur expenses for buying and selling securities. In addition, excessive trading can interfere with efficient portfolio management and cause dilution, if traders are able to take advantage of pricing inefficiencies. These costs are borne by all contractowners, including long-term investors who do not generate the costs. The contract is not designed for market timing or frequent trading. The risk of pricing inefficiencies may be increased for underlying funds invested primarily in foreign securities.

To discourage market timing activity and control certain transfer activity, TIAA-CREF Life has adopted the following policies and procedures.

 

   

We reserve the right to allow you to make only one transfer from any one investment account to one or more other investment accounts within a 90-day period.

 

   

We will count as “one transfer” all transfers effected on the same valuation day from any one investment account to one or more other investment accounts.

 

   

If we regard the transfer activity as disruptive to the underlying funds’ efficient portfolio management, based on the timing or amount of the investment or because of a history of excessive trading by the investor, we may limit a contractowner’s ability to make transfers by telephone, fax or over the Internet.

 

   

We also may stop doing business with financial advisors who engage in excessive transfer activity on behalf of their clients.

 

   

Because we have discretion in applying these policies, it is possible that similar transfer activity could be handled differently because of the surrounding circumstances.

 

   

We seek to apply our market timing and other transfer policies uniformly to all contractowners. No exceptions are made with respect to the policies. The contract is not appropriate for market timing. You should not invest in the contract if you want to engage in market timing activity.

 

   

We do not include transfers made pursuant to the dollar cost averaging programs when applying our Market Timing/Transfer Policies.

 

   

We reserve the right to modify or terminate our market timing policies or transfer privileges at any time.

Contractowners seeking to engage in market timing may deploy a variety of strategies to avoid detection, and, despite our efforts to discourage market timing, there is no guarantee that TIAA-CREF Life or its agents will be able to identify all market timers or curtail their trading practices. If we do not identify or curtail market timers, there could be dilution in the value of account shares held by long-term owners, increased transaction costs, and interference with the efficient portfolio management of the affected investment account.

 

18   Prospectus   n   Lifetime Variable Select


 

Additionally, the TIAA-CREF Life Funds may have their own policies and procedures to deter market timing and excessive trading, which may include, but are not limited to, trading restrictions and prohibitions, and redemption and other fees. While we reserve the right to enforce these policies and procedures, we may not have the contractual authority or the operational capacity to apply the market timing and excessive trading policies and procedures of the TIAA-CREF Life Funds. However, we have entered into a written agreement, as required by SEC regulation, with each underlying fund or its principal underwriter that obligates us to provide to the TIAA-CREF Life Funds promptly upon request certain information about the trading activity of individual contractowners, and to execute instructions from the TIAA-CREF Life Funds to restrict or prohibit further purchases or transfers by specific contractowners who violate the market timing and excessive trading policies established by the TIAA-CREF Life Funds. Please see the TIAA-CREF Life Funds’ prospectus for more information on their various market timing policies and procedures.

CASH WITHDRAWALS

You can withdraw some or all of your accumulation in the investment accounts. Cash withdrawals must be for at least $1,000 (or your entire accumulation, if less than $1,000). Any withdrawal that would reduce your entire accumulation below $1,000 will be considered a request for a full surrender. We also reserve the right to cancel any contract where your total amount in the separate account falls below $1,000. There’s no charge for cash withdrawals.

If you withdraw your entire accumulation in the separate account, we’ll cancel your contract and all of our obligations to you under the contract will end.

Systematic withdrawals and dollar cost averaging

You may set up a program to make cash withdrawals or engage in dollar cost averaging automatically, subject to state regulatory approval. You may do so by specifying that we withdraw or transfer from an account accumulation any fixed number of accumulation units, dollar amount or percentage of accumulation, until you tell us to stop the transactions or until your accumulation is exhausted. You must have total accumulations of at least $10,000 under your contract to start a program, and the program must be set up so that at least $100 is automatically withdrawn or transferred at a time. Your withdrawal and transfer transactions cannot begin earlier than seven days after we receive all your required forms, and you may not begin a program during the “free look” period. We reserve the right to suspend the systematic withdrawal and dollar cost averaging programs at any time. Systematic withdrawals will terminate if a transaction would cause the contract accumulation to fall below $1,000. Note that systematic withdrawals and dollar cost averaging do not assure a profit or protect against a loss in declining markets.

 

Lifetime Variable Select   n    Prospectus   19


 

Withdrawals to pay advisory fees

You can set up a program to have monies withdrawn directly from your contract accumulations to pay your financial advisor. You will be required to complete and return certain forms to effect these cash withdrawals, indicating how you want these monies to be withdrawn. Funds will be withdrawn from each of your accounts on a pro rata basis. These payments will be treated as cash withdrawals for tax purposes. If you are under age 59 1/2 you will likely incur a 10 percent federal tax penalty on earnings in addition to regular income tax. You should discuss the potential for this penalty with a qualified tax adviser before agreeing to have advisory fees deducted from your contract. Before you set up this program, make sure you understand all the possible tax consequences. We reserve the right to determine which financial advisors are eligible for this type of fee arrangement.

General considerations for all transfers and cash withdrawals

You can tell us how much you want to transfer or withdraw in dollars, accumulation units, or as a percentage of your accumulation.

Transfers and cash withdrawals are effective at the end of the business day we receive your request and any required information and documentation. Transfers and cash withdrawals made at any time other than during a business day will be effective at the end of the next business day. You can also defer the effective date of a transfer or cash withdrawal to a future business day acceptable to us.

To request a transfer, write to TIAA-CREF Life’s home office, call our Automated Telephone Service at 800 842-2252 (there is an option to speak with a live person, if you wish), or go to the TIAA-CREF website’s account access feature at www.tiaa-cref.org. If you make a telephone or Internet transfer at any time other than during a business day, it will be effective at the close of the next business day. We can suspend or terminate your ability to transfer by telephone, fax, or over the Internet at any time for any reason.

TAX ISSUES

Make sure you understand the possible federal and other income tax consequences of transfers and cash withdrawals. Cash withdrawals are taxed at the rates for ordinary income—i.e., they are not treated as capital gains. Withdrawals before age 59 1/ 2 may subject you to early distribution taxes as well. For more information, see “Federal Income Taxes.”

CHARGES

SEPARATE ACCOUNT CHARGES

We deduct charges each valuation day from the assets of each investment account for various services required to administer the separate account and

 

20   Prospectus   n   Lifetime Variable Select


 

the contracts and to cover certain insurance risks borne by TIAA-CREF Life. The contract allows for total separate account charges (i.e., administrative expense and mortality and expense risk charges) of 1.20 percent of net assets of each investment account annually. TIAA-CREF Life has waived a portion of the mortality and expense risk charges so that current separate account charges are at an annual rate of 0.60 percent of net assets annually. While TIAA-CREF Life reserves the right to increase the separate account charges at any time (up to the 1.20 percent maximum), we will provide at least three months’ prior notice before we implement any such increases.

Administrative Expense Charge. This charge is for administration and operations, such as allocating premiums and administering accumulations. The daily deduction is equivalent to 0.20 percent of net assets annually.

Mortality and Expense Risk Charge. TIAA-CREF Life imposes a daily charge as compensation for bearing certain mortality and expense risks in connection with the contract. The current daily deduction is equal to 0.40 percent of net assets annually.

TIAA-CREF Life’s mortality risks come from its obligations under the contracts to make annuity payments under the One-Life Annuity and the Two-Life Annuity and to pay death benefits before the annuity starting date. TIAA-CREF Life assumes the risk of making annuity payments regardless of how long the annuitant(s) may live or whether the mortality experience of annuitants as a group is better than expected. TIAA-CREF Life also bears a risk in connection with its death benefit guarantee, since a death benefit may be more than the actual amount of an accumulation at the time when we receive proof of death.

TIAA-CREF Life’s expense risk is the possibility that TIAA-CREF Life’s actual expenses for administering and marketing the contract and for operating the separate account will be higher than the amount recovered through the administrative expense deduction.

If the mortality and expense risk charge allowed under the contract isn’t enough to cover TIAA-CREF Life’s costs, TIAA-CREF Life will absorb the deficit. On the other hand, if the charge more than covers costs, TIAA-CREF Life will profit. TIAA-CREF Life will pay a fee from its general account assets, which may include amounts derived from the mortality and expense risk charge, to Teachers Personal Investors Services, Inc. (“TPIS”), the principal distributor of the contract.

OTHER CHARGES AND EXPENSES

Fund Expenses. Each investment account purchases shares of the corresponding underlying fund at net asset value. Certain deductions and expenses of the underlying funds are paid out of the assets of the TIAA-CREF Life Funds. These expenses include charges for investment advice, portfolio accounting, custody, and similar services provided for the funds. Advisors is

 

Lifetime Variable Select   n    Prospectus   21


 

entitled to an annual fee based on a percentage of the average daily net assets of each fund, under an investment management agreement between Advisors and the TIAA-CREF Life Funds. The funds’ expenses are not fixed or specified under the terms of this contract, and they may change periodically. The fund fees are as follows:

 

     Annual Fund Expenses (as
a percentage of the average
daily net assets of the fund)

Growth Equity Fund

   0.26%

Growth & Income Fund

   0.24%

International Equity Fund

   0.33%

Large-Cap Value Fund

   0.27%

Small-Cap Equity Fund

   0.11%

Stock Index Fund

   0.06%

Social Choice Equity Fund

   0.07%

Real Estate Securities Fund

   0.27%

Bond Fund

   0.10%

Money Market Fund

   0.06%

For more information on underlying fund deductions and expenses, read the TIAA-CREF Life Funds prospectus.

No Deductions from Premiums. The contract provides for no front-end charges.

Premium Taxes. Currently, residents of several states may be subject to premium taxes on their contract. We normally deduct any charges for premium taxes from your accumulation when it’s applied to provide annuity payments. However, if a jurisdiction requires that premium taxes be paid at other times, such as when premiums are paid or when cash withdrawals are taken, we’ll deduct premium taxes then. State premium taxes currently range from 1.00 percent to 3.50 percent of premium payments.

Annual Maintenance Fee. Your contract will be subject to an annual maintenance fee of $25, which will be assessed on every annual anniversary of your contract and on surrender of your contract. We will waive the annual maintenance fee if your contract accumulations exceed $25,000 on the anniversary date of your contract or the day you surrender your contract.

Transfer Charge. Currently, we don’t charge you for transfers. If you make 25 or more transfers in any contract year, however, we reserve the right to impose a charge of $25 per transfer.

THE CONTRACT—THE ANNUITY PERIOD

You can apply your contract accumulation to provide variable annuity payments from one or more of the separate account’s investment accounts. Annuity payments will be based, among other things, on the amount of your accumulation, your choice of income option, and your choice among the payout options. Your payments will be based on the investment returns of the fund(s)

 

22   Prospectus   n   Lifetime Variable Select


 

underlying the investment account(s) you choose and the income charge method you choose. You may elect to receive monthly, quarterly, semi-annual or annual payments. If your annuity payments would be less than $100 under the payment option you choose, we may make annuity payments less frequently than that. The total value of annuity payments made to you may be more or less than the total premiums you paid under the contract.

WHEN ANNUITY PAYMENTS BEGIN

Generally you pick the date when you want annuity payments to begin when you first apply for a contract. The date you choose can’t be later than the annuitant’s 90th birthday. You can choose or change this annuity starting date at any time before annuity payments begin. In any case, the annuity starting date will be the first day of a month and can’t be earlier than fourteen months after the day your contract is issued (twelve months for contracts issued in Florida). Your first annuity check may be delayed while we process your choice of income options and calculate the amount of your initial payment.

For payments to begin on the annuity starting date you chose, we must have received all information and documentation necessary for the income option you’ve picked. If we haven’t received all the necessary information, we’ll defer the annuity starting date until the first day of the month after the information has reached us, but not beyond the annuitant’s 90th birthday. If you haven’t picked an income option by then or if we have not otherwise received all the necessary information, we will begin payments under a One-Life Annuity with, if allowed under federal tax law, a ten year guaranteed period. The payments will be made out of the investment accounts to which your accumulation was allocated, with the initial payments in the same proportion as the accumulation.

Technically all benefits are payable at TIAA-CREF Life’s home office, but if you instruct us, we’ll send your annuity payments by mail to your home address or (on your request) by mail or electronic fund transfer to your bank. If the address or bank where you want your payments changes, it’s your responsibility to let us know. We can send payments to your residence or most banks abroad. Our ability to combine and continue making annuity payments is subject to our financial strength and claims-paying ability.

INCOME PAYMENTS

Your initial income payments out of the investment accounts will be based on:

 

   

the value of your accumulation in an investment account on the last valuation day before the annuity starting date

 

   

the annuity option you choose

 

   

the length of the fixed period or guaranteed period, as applicable

 

   

the frequency of payment you choose

 

   

the ages of the annuitant and any second annuitant, and

 

Lifetime Variable Select   n    Prospectus   23


 

 

an assumed annual investment return of 4 percent and the current mortality basis, not to be less than that set forth in the contract’s rate schedule.

Subsequent payments will be based on the investment experience of the funds underlying the investment accounts relative to the 4 percent assumed annual investment return, and the income change method you choose. In general, your payments will increase if the performance of the investment account (net of expenses) is greater than 4 percent and decrease if the performance is less than 4 percent.

You may choose either an annual or monthly income change method for your variable annuity payments. Under the annual income change method, payments from the investment accounts will change each May 1, based on the net investment results of the funds underlying the investment account during the prior year (April 1 through March 31). Under the monthly income change method, payments from the investment accounts will change every month, based on the net investment results during the previous month. The amount of your next payment will be determined on the 20th day of each month (or, if the 20th is not a business day, the prior business day).

For a full discussion of how we determine the amount of variable annuity payments, see the SAI.

ANNUITY OPTIONS

You have a number of different annuity options. The current options are:

 

   

One-Life Annuities with or without Guaranteed Period. Pays income as long as the annuitant lives. If you opt for a guaranteed period (10, 15 or 20 years) and your annuitant dies before it’s over, income payments will continue to you or your beneficiary until the end of the period. The guaranteed period may be limited by applicable tax laws. If you don’t opt for a guaranteed period, all payments end at the annuitant’s death—so that it’s possible for you to receive only one payment if your annuitant dies less than a month after payments start.

 

   

Fixed-Period Annuities. Pays income for a stipulated period of not less than two or more than thirty years. At the end of the period you’ve chosen, payments stop. If you die before the period is up, your beneficiary becomes the contractowner. The period you choose may be limited by applicable tax laws.

 

   

Two-Life Annuities with or without Guaranteed Period. Pays income to you as long as the annuitant or second annuitant lives, then continues at either the same or a reduced level for the life of the survivor, or until the end of the specified guaranteed period, whichever period is longer. The guaranteed period may be limited by applicable tax laws. There are three types of two-life annuity options, all available with or without a guaranteed period—Full Benefit While Either the Annuitant or the Second Annuitant

 

24   Prospectus   n   Lifetime Variable Select


 

 

is Alive, Two-Thirds Benefit After the Death of Either the Annuitant or the Second Annuitant, and a Half-Benefit After the Death of the Annuitant.

From the investment accounts, you or your beneficiary have the right to receive in a lump sum the commuted value of any periodic payments or other amounts remaining due (i) while guaranteed period payments are being made, or (ii) under a Fixed-Period Annuity.

TRANSFERS DURING THE ANNUITY PERIOD

You will be able to transfer all or part of the future annuity income payable from each investment account one time each calendar quarter to another investment account.

We’ll process your transfer on the business day we receive your request if received by the close of the business day. Alternatively, you can choose to have a transfer take effect at the close of any future business day, or the last calendar day of the current or any future month, even if it’s not a business day. Transfers under the annual income payment method will affect your annuity payments beginning on the May 1 following the March 31 which is on or after the effective date of the transfer. Transfers under the monthly income payment method will affect your annuity payments beginning with the first payment due after the monthly payment valuation day that is on or after the transfer date.

You can switch between the annual and monthly income change methods, and the switch will go into effect on the following March 31.

For more information, see the SAI.

DEATH BENEFITS

AVAILABILITY; CHOOSING BENEFICIARIES

Death benefits are available if you or the annuitant dies during the accumulation period. When you fill out an application for a contract, you name one or more beneficiaries to receive the death benefit if you die. You can change your beneficiary at any time during the accumulation period. For more information on designating beneficiaries, contact TIAA-CREF Life or your legal adviser.

SPECIAL OPTION FOR SPOUSES

If your spouse is the sole beneficiary when you die, your spouse can choose to become the contractowner and continue the contract, or receive the death benefit. If your spouse does not make a choice within 60 days after we receive proof of death, your spouse will automatically become the contractowner. Your spouse will also become the annuitant if you were the annuitant.

 

Lifetime Variable Select   n    Prospectus   25


 

PAYMENT OF DEATH BENEFIT

To authorize payment and pay a death benefit, TIAA-CREF Life must have received all necessary forms and documentation, including proof of death and the selection of the method of payment. Even if we have not received all of the required information, the death benefits will be paid by the first day of the month following the 60th day after we receive proof of death. If no method of payment has been chosen by that time, we will pay the death benefit as annual payments for a fixed period ending in the twelve-month period before the fifth anniversary of the death. Payments will be made in the same proportion as each investment account’s accumulation to the contract’s total investment account accumulation. Payment of the death benefit in excess of your contract accumulation is subject to our financial strength and claims-paying ability.

AMOUNT OF DEATH BENEFIT

We calculate the death benefit every business day. The amount of the death benefit as of the death benefit date will equal the greater of (1) your accumulation or (2) the guaranteed minimum death benefit. The guaranteed minimum death benefit as of any valuation day is equal to the sum of all premiums credited less the adjusted sum of any withdrawals made. The adjusted sum of withdrawals is the sum of the products of each withdrawal multiplied by the greater of 1 and the ratio of A to B, where:

 

  A is the value of the guaranteed minimum death benefit on the valuation day preceding the withdrawal; and

 

  B is the contract accumulation on the valuation day of the withdrawal, excluding the effect of any transactions on that day.

If a benefit is payable under the guaranteed minimum death benefit provision on the day we first receive proof of death, any shortfall between the amount of the guaranteed minimum death benefit and the accumulated value of the entire contract will be deposited by TIAA-CREF Life into the Money Market Account. This amount will continue to participate in the investment experience of the Money Market Account until the day death benefits are paid.

METHODS OF PAYMENT OF DEATH BENEFITS

At present, the sole method of payment for death benefits is:

 

   

Single-Sum Payment. The entire death benefit is paid at once. When the beneficiary is an estate, the single-sum method is automatic, and TIAA-CREF Life reserves the right to pay death benefits only as a single sum to any beneficiary that is not a natural person. Single-sum payments must be made within five years of your death.

TIAA-CREF Life may offer alternative methods of payment for death benefits in the future, subject to any necessary regulatory approvals. You will be notified in advance if alternative death benefit payment methods become available.

 

26   Prospectus   n   Lifetime Variable Select


 

TIMING OF PAYMENTS

Usually we’ll make the following kinds of payments from the investment accounts within seven calendar days after we’ve received the information we need to process a request:

 

  1. Cash withdrawals;

 

  2. Transfers to another investment account or another company; and

 

  3. Death benefits.

We can extend the seven-day period only if (1) the NYSE is closed (or trading is restricted by the SEC) on a day that isn’t a weekend or holiday; (2) an SEC-recognized emergency makes it impractical for us to sell securities or determine the value of assets in the separate account; or (3) the SEC says by order that we can or must postpone payments to protect you and other separate account contractowners.

FEDERAL INCOME TAXES

The following discussion is based on our understanding of current federal income tax law, and is subject to change. For complete information on your personal tax situation, check with a qualified tax adviser.

TAXATION OF ANNUITIES

The following discussion assumes the contracts qualify as annuity contracts for federal income tax purposes (see the SAI for more information):

In General. Internal Revenue Code (“IRC”) section 72 governs annuity taxation generally. We believe an owner who is a natural person usually won’t be taxed on increases in the value of a contract until there is a distribution (i.e., the owner withdraws all or part of the accumulation or takes annuity payments). Since transfers among investment accounts under the contract aren’t considered distributions, they won’t be taxed. Assigning, pledging, or agreeing to assign or pledge any part of the accumulation usually will be considered a distribution.

Withdrawals of accumulated investment earnings are taxable as ordinary income. Generally under the IRC, withdrawals are first allocated to investment earnings.

The owner of any annuity contract who is not a natural person (such as a trust) generally must include in income any increases in the value of the contract during the taxable year.

The following discussion applies generally to contracts owned by a natural person:

Withdrawals. If you withdraw funds from your contract before the annuity starting date, IRC section 72(e) usually deems taxable any amounts received to the extent that the accumulation value at the time of your withdrawal exceeds your investment in the contract. The investment in the contract usually equals all premiums paid by the contractowner or on the contractowner’s behalf.

 

Lifetime Variable Select   n    Prospectus   27


 

If you withdraw your entire accumulation under a contract, you will be taxed only on the part that exceeds your investment in the contract.

Annuity Payments. Although tax consequences can vary with the income option you pick, IRC section 72(b) provides generally that, before you recover the investment in the contract, part of each annuity income payment is treated as recovery of your investment in the contract, and can be excluded from your income. After you recover your investment in the contract, all additional annuity payments are fully taxable.

Taxation of Death Benefit Proceeds. Amounts may be paid from a contract because an owner has died. If the payments are made in a single sum, they’re taxed the same way a full withdrawal from the contract is taxed. If they are distributed as annuity payments, they’re taxed as annuity payments.

Penalty Tax on Some Withdrawals. You may have to pay a penalty tax (10 percent of the amount treated as taxable income) on some withdrawals. However, there is usually no penalty on distributions:

 

 

(1)

on or after you reach age 59 1/2;

 

  (2) after you die (or after the annuitant dies, if the owner isn’t an individual);

 

  (3) after you become disabled; or

 

  (4) that are part of a series of substantially equal periodic (at least annual) payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your beneficiary.

Possible Tax Changes. Legislation is proposed from time to time that would change the taxation of annuity contracts. It is possible that such legislation could be enacted and that it could be retroactive (that is, effective prior to the date of the change). You should consult a tax adviser regarding legislative developments and their effect on the contract.

TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT

Transferring contract ownership, pledging the contract as security for a loan, designating an annuitant, payee or other beneficiary who is not also the owner, or exchanging a contract can have other tax consequences that we don’t discuss here. If you’re thinking about any of those transactions, contact a tax adviser.

WITHHOLDING

Annuity distributions are usually subject to withholding for the recipient’s federal income tax liability at rates that vary according to the type of distribution and the recipient’s tax status. However, recipients can usually choose not to have tax withheld from distributions.

MULTIPLE CONTRACTS

In determining gross income, section 72(e) will treat as one contract all TIAA-CREF Life and TIAA non-qualified deferred annuity contracts issued to

 

28   Prospectus   n   Lifetime Variable Select


 

the same owner during any calendar year. This could affect when income is taxable and how much might be subject to the 10 percent penalty tax (see above). Consult a tax adviser before buying more than one annuity contract for the purpose of gaining a tax advantage.

POSSIBLE CHARGE FOR TIAA-CREF LIFE’S TAXES

Currently we don’t charge the separate account for any federal, state, or local taxes on it or its contracts (other than premium taxes—see page 21), but we reserve the right to charge the separate account or the contracts for any tax or other cost resulting from the tax laws that we believe should be attributed to them.

OTHER TAX ISSUES

Federal Estate Taxes. While no attempt is being made to discuss the federal estate tax implications of the contract, a purchaser should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump-sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information.

Generation skipping transfer tax. Under certain circumstances, the IRC may impose a “generation skipping transfer tax” when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the owner. Regulations issued under the IRC may require us to deduct the tax from your contract, or from any applicable payment, and pay it directly to the IRS.

Annuity purchases by residents of Puerto Rico. The Internal Revenue Service has announced that income from an annuity received by residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rican branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity purchases by nonresident aliens and foreign corporations. The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser’s country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity contract purchase.

 

Lifetime Variable Select   n    Prospectus   29


 

Foreign Tax Credits. We may benefit from any foreign tax credits attributable to taxes paid by certain funds to foreign jurisdictions to the extent permitted under federal tax law.

TAX ADVICE

What we tell you here about federal and other taxes isn’t comprehensive and is for general information only. It doesn’t cover every situation. Taxation varies depending on the circumstances, and state and local taxes may also be involved. For complete information on your personal tax situation, check with a qualified tax adviser.

GENERAL MATTERS

TELEPHONE AND INTERNET TRANSACTIONS

You can use our Automated Telephone Service (“ATS”) or the TIAA-CREF website’s account access feature to check your accumulation balance and/or your current allocation percentages, transfer among the investment accounts and/or allocate future premiums to the investment accounts. You will be asked to enter your Personal Identification Number (PIN) and Social Security number for both systems. Both will lead you through the transaction process and will use reasonable procedures to confirm that instructions given are genuine. All transactions made over the ATS and the Internet are electronically recorded.

To use the ATS, you need a touch-tone phone. The toll-free number for the ATS is 800 842-2252. To use the Internet, access the TIAA-CREF website at www.tiaa-cref.org.

We can suspend or terminate your ability to transact by telephone, fax, or over the Internet at any time for any reason.

CONTACTING TIAA-CREF LIFE

We won’t consider any notice, form, request, or payment to have been received by TIAA-CREF Life until it reaches our home office at 730 Third Avenue, New York, New York 10017-3206 or the post office box specifically designated for the purpose. You can ask questions by calling us toll-free at 877 825-0411.

CUSTOMER COMPLAINTS

Customer complaints may be directed to our Planning and Service Center, Customer Relations Unit (A2-01), 8500 Andrew Carnegie Blvd., Charlotte, N.C. 28262, telephone 877 825-0411.

ELECTRONIC PROSPECTUSES

If you received this prospectus electronically and would like a paper copy, please call us at 877 825-0411, and we will send it to you free of charge.

 

30   Prospectus   n   Lifetime Variable Select


 

HOUSEHOLDING

To reduce costs and eliminate duplicate documents sent to your home, we may begin mailing only one copy of the prospectus, prospectus supplements, annual and semi-annual reports, or any other required documents, to your household, even if more than one contractowner lives there. If you would prefer to continue receiving your own copy of any of these documents, you may call us toll-free at 877 825-0411, or write us.

SIGNATURE REQUIREMENTS

For some transactions, we may require your signature to be notarized or guaranteed by a commercial bank or a member of a national securities exchange.

ERRORS OR OMISSIONS

We reserve the right to correct any errors or omissions on any form, report or statement that we send you.

DISTRIBUTING THE CONTRACTS

We offer the contracts to the public on a continuous basis. We anticipate continuing to offer the contracts, but reserve the right to discontinue the offering at any time in our sole discretion.

The contracts are distributed by Teachers Personal Investors Services, Inc. (“TPIS”) and, in some instances, TIAA-CREF Individual & Institutional Services, LLC (“Services”), subsidiaries of TIAA which are both registered with the SEC as broker/dealers and are members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). TPIS may also enter into selling agreements with third parties to distribute the contracts. TPIS is considered the “principal underwriter” for interests in the contract. Anyone distributing the contract must be a registered representative of either TPIS or Services or an entity that has entered into a selling agreement with TPIS. The main offices of TPIS and Services are located at 730 Third Avenue, New York, New York 10017-3206. No commissions are paid in connection with the distribution of the contracts, although we pay TPIS a fee from our general account assets for sales of the contracts. For fiscal years 2005, 2006, and 2007, we paid TPIS $299,993, $354,947 and $497,717, respectively, for distribution of the contracts, and TPIS paid these amounts to Services pursuant to a selling agreement. We intend to recoup payments made to TPIS through fees and charges imposed under the contracts.

LEGAL PROCEEDINGS

Neither the separate account, TIAA-CREF Life nor TPIS is involved in any legal action that we consider material to the separate account.

 

Lifetime Variable Select   n    Prospectus   31


 

STATEMENTS AND REPORTS

 

You will receive a confirmation statement each time you remit premiums, or make a transfer or cash withdrawal to or from the separate account or among the investment accounts. The statement will show the date and amount of each transaction. However, if you’re using an automatic investment plan, you’ll receive a statement confirming those transactions immediately following the end of each calendar quarter.

If you have any accumulation in the separate account, you will be sent a statement each quarter which sets forth the following:

 

  (1) premiums paid during the quarter;

 

  (2) the number and dollar value of accumulation units in the investment accounts credited to the contractowner during the quarter and in total; and

 

  (3) cash withdrawals from the investment accounts during the quarter.

You will also receive, at least semi-annually, reports containing the financial statements of the TIAA-CREF Life Funds and a schedule of investments held by the TIAA-CREF Life Funds.

 

32   Prospectus   n   Lifetime Variable Select


 

Table of Contents for the Statement of Additional Information

 

B-3    Variable Annuity Payments
B-3    Tax Status of the Contracts
B-4    General Matters
B-4    State Regulation
B-4    Legal Matters
B-4    Experts
B-5    Additional Information
B-5    Financial Statements
B-6    Index to Financial Statements

 

Lifetime Variable Select   n    Prospectus   33


 

Appendix A—condensed financial information

Presented below is condensed financial information for the separate account. The table shows per accumulation unit data and total returns for the Growth Equity, Growth & Income, International Equity, Stock Index, Social Choice Equity, Large-Cap Value, Small-Cap Equity, Real Estate Securities, Bond, and Money Market variable investment accounts of the separate account. The data should be read in conjunction with the financial statements and other financial information included in the SAI. The SAI is available without charge upon request.

 

34   Prospectus   n   Lifetime Variable Select


CONDENSED FINANCIAL INFORMATION

continued

 

       Growth Equity Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 15.13        $ 14.41        $ 13.75        $ 13.00     $ 10.20  

End of period

     $ 18.30        $ 15.13        $ 14.41        $ 13.75     $ 13.00  


TOTAL RETURN

       20.95 %        5.03 %        4.79 %        5.75 %     27.51 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       0.26 %        0.27 %        0.16 %        0.98 %     3.04 %

Thousands of Accumulation Units outstanding at end of period

       480          261          228          151       22  

Net assets at end of period (in thousands)

     $ 8,794        $ 3,942        $ 3,278        $ 2,070     $ 289  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

Lifetime Variable Select   n    Prospectus   35


CONDENSED FINANCIAL INFORMATION

continued

 

       Growth & Income Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 26.31        $ 22.65        $ 21.39        $ 19.57     $ 15.58  

End of period

     $ 31.05        $ 26.31        $ 22.65        $ 21.39     $ 19.57  


TOTAL RETURN

       18.02 %        16.16 %        5.93 %        9.28 %     25.62 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       1.03 %        1.20 %        1.16 %        2.01 %     6.82 %

Thousands of Accumulation Units outstanding at end of period

       492          248          195          116       15  

Net assets at end of period (in thousands)

     $ 15,304        $ 6,534        $ 4,419        $ 2,477     $ 301  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

36   Prospectus   n   Lifetime Variable Select


CONDENSED FINANCIAL INFORMATION

continued

 

       International Equity Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 26.94        $ 20.85        $ 18.24        $ 15.59     $ 11.12  

End of period

     $ 31.95        $ 26.94        $ 20.85        $ 18.24     $ 15.59  


TOTAL RETURN

       18.60 %        29.17 %        14.32 %        17.01 %     40.21 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       21.66 %        1.36 %        2.10 %        3.28 %     3.17 %

Thousands of Accumulation Units outstanding at end of period

       1,228          788          534          217       18  

Net assets at end of period (in thousands)

     $ 39,280        $ 21,212        $ 11,130        $ 3,950     $ 285  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

Lifetime Variable Select   n    Prospectus   37


CONDENSED FINANCIAL INFORMATION

continued

 

       Stock Index Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 35.35        $ 30.76        $ 29.18        $ 26.24     $ 20.17  

End of period

     $ 36.95        $ 35.35        $ 30.76        $ 29.18     $ 26.24  


TOTAL RETURN

       4.53 %        14.92 %        5.41 %        11.22 %     30.06 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       1.99 %        2.29 %        1.47 %        3.07 %     11.54 %

Thousands of Accumulation Units outstanding at end of period

       821          602          507          335       35  

Net assets at end of period (in thousands)

     $ 30,343        $ 21,280        $ 15,588        $ 9,763     $ 913  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

38   Prospectus   n   Lifetime Variable Select


CONDENSED FINANCIAL INFORMATION

continued

 

       Social Choice Equity Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 29.28        $ 25.70        $ 24.13        $ 21.60     $ 16.72  

End of period

     $ 30.34        $ 29.28        $ 25.70        $ 24.13     $ 21.60  


TOTAL RETURN

       3.62 %        13.95 %        6.46 %        11.71 %     29.25 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       2.86 %        1.90 %        1.33 %        2.23 %     5.05 %

Thousands of Accumulation Units outstanding at end of period

       198          170          157          99       19  

Net assets at end of period (in thousands)

     $ 6,028        $ 4,986        $ 4,032        $ 2,378     $ 414  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

Lifetime Variable Select   n    Prospectus   39


CONDENSED FINANCIAL INFORMATION

continued

 

       Large-Cap Value Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 50.13        $ 41.48        $ 39.76        $ 33.13     $ 24.98  

End of period

     $ 50.28        $ 50.13        $ 41.48        $ 39.76     $ 33.13  


TOTAL RETURN

       0.30 %        20.86 %        4.31 %        20.03 %     32.62 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       12.70 %        9.02 %        8.36 %        31.24 %     13.06 %

Thousands of Accumulation Units outstanding at end of period

       361          297          208          133       10  

Net assets at end of period (in thousands)

     $ 18,173        $ 14,868        $ 8,613        $ 5,298     $ 333  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

40   Prospectus   n   Lifetime Variable Select


CONDENSED FINANCIAL INFORMATION

continued

 

       Small-Cap Equity Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007      2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                 

Beginning of period

     $ 53.19      $ 45.40        $ 43.67        $ 36.67     $ 24.73  

End of period

     $ 49.89      $ 53.19        $ 45.40        $ 43.67     $ 36.67  


TOTAL RETURN

       (6.19 )%      17.14 %        3.96 %        19.12 %     48.26 %

RATIOS TO AVERAGE NET ASSETS

                                                 

Expenses(b)

       0.60 %      0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       8.50 %      10.08 %        13.41 %        29.85 %     18.83 %

Thousands of Accumulation Units outstanding at end of period

       231        204          152          97       12  

Net assets at end of period (in thousands)

     $ 11,533      $ 10,840        $ 6,896        $ 4,256     $ 452  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

Lifetime Variable Select   n    Prospectus   41


CONDENSED FINANCIAL INFORMATION

continued

 

       Real Estate Securities Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007      2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                 

Beginning of period

     $ 64.84      $ 48.66        $ 45.67        $ 34.55     $ 24.81  

End of period

     $ 54.07      $ 64.84        $ 48.66        $ 45.67     $ 34.55  


TOTAL RETURN

       (16.61 )%      33.25 %        6.55 %        32.18 %     39.24 %

RATIOS TO AVERAGE NET ASSETS

                                                 

Expenses(b)

       0.60 %      0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       11.45 %      9.92 %        15.56 %        35.27 %     65.57 %

Thousands of Accumulation Units outstanding at end of period

       285        309          222          174       18  

Net assets at end of period (in thousands)

     $ 15,430      $ 20,017        $ 10,308        $ 7,949     $ 633  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

42   Prospectus   n   Lifetime Variable Select


CONDENSED FINANCIAL INFORMATION

continued

 

       Bond Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 27.56        $ 26.49        $ 25.99        $ 25.23     $ 25.00  

End of period

     $ 28.93        $ 27.56        $ 26.49        $ 25.99     $ 25.23  


TOTAL RETURN

       4.97 %        4.07 %        1.89 %        3.04 %     0.90 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       5.41 %        4.43 %        4.70 %        5.48 %     6.32 %

Thousands of Accumulation Units outstanding at end of period

       949          593          510          262       22  

Net assets at end of period (in thousands)

     $ 27,467        $ 16,339        $ 13,495        $ 6,806     $ 551  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

Lifetime Variable Select   n    Prospectus   43


CONDENSED FINANCIAL INFORMATION

concluded

 

       Money Market Investment Account

 
       For the Years Ended December 31,

    For the Period
July 8, 2003
(commencement
of operations) to
December 31,
2003(a)


 
       2007        2006        2005        2004    

ACCUMULATION UNIT VALUE:

                                                   

Beginning of period

     $ 10.82        $ 10.36        $ 10.09        $ 10.02     $ 10.00  

End of period

     $ 11.32        $ 10.82        $ 10.36        $ 10.09     $ 10.02  


TOTAL RETURN

       4.62 %        4.44 %        2.63 %        0.71 %     0.20 %

RATIOS TO AVERAGE NET ASSETS

                                                   

Expenses(b)

       0.60 %        0.60 %        0.60 %        0.60 %     0.29 %

Investment income—net

       4.55 %        4.43 %        2.68 %        0.80 %     0.19 %

Thousands of Accumulation Units outstanding at end of period

       8,651          4,872          1,658          631       82  

Net assets at end of period (in thousands)

     $ 97,972        $ 52,699        $ 17,173        $ 6,371     $ 824  

 

(a)  The

percentages shown for this period are not annualized.

 

(b)  Does

not include expenses of the underlying TIAA-CREF Life Funds.

 

44   Prospectus   n   Lifetime Variable Select


 

PROSPECTUS

May 1, 2008

PERSONAL ANNUITY SELECT

Individual Flexible Premium Deferred Variable Annuity Contract Funded Through

TIAA-CREF Life Separate Account VA-1

of TIAA-CREF Life Insurance Company

This prospectus describes information you should know before investing in the Personal Annuity Select, an individual flexible premium deferred variable annuity contract offered by TIAA-CREF Life Insurance Company (“TIAA-CREF Life”) and funded through the TIAA-CREF Life Separate Account VA-1 (the “separate account”). Before you invest, please read this prospectus carefully, along with the accompanying fund prospectus, and keep it for future reference.

Important Note: TIAA-CREF Life is no longer offering for sale the Personal Annuity Select contract. However, existing contracts, or replacements for those contracts, remain in effect and existing contractowners can continue to contribute money to their contracts.

The contract is designed for individual investors who desire to accumulate funds on a tax-deferred basis for retirement or other long-term investment purposes, and to receive future payment of those funds as lifetime income or through other payment options. Whether the contract or certain investment accounts are available to you is subject to approval by regulatory authorities in your state.

You may allocate premiums to a TIAA-CREF Life fixed account or to the separate account’s eight investment accounts which invest in the following mutual funds of the TIAA-CREF Life Funds:

 

n Growth Equity Fund

 

n Small-Cap Equity Fund

n Growth & Income Fund

 

n Stock Index Fund

n International Equity Fund

 

n Social Choice Equity Fund

n Large-Cap Value Fund

 

n Real Estate Securities Fund

As with all variable annuity contracts, your accumulation in the separate account component of your contract can increase or decrease, depending on how well the investment accounts perform over time. TIAA-CREF Life doesn’t guarantee the investment performance of the underlying funds or the investment accounts, and you bear the entire investment risk. Note that not all funds are available in all states.

Separate prospectuses for the funds accompany this prospectus. They provide more information about the funds listed above. Note that the accompanying prospectuses for the funds may provide information for other funds that are not readily available through the contract. When you consult the accompanying prospectuses, you should be careful to refer only to the information regarding the funds listed above.

More information about the separate account and the contract is on file with the Securities and Exchange Commission (“SEC”) in a “Statement of Additional Information” (“SAI”) dated May 1, 2008. You can receive a free copy of the SAI by writing us at TIAA-CREF Life, 730 Third Avenue, New York, New York 10017-3206 (attention: Central Services), or by calling 877 825-0411. The SAI is “incorporated by reference” into this prospectus; that means it’s legally part of the prospectus. The SAI’s table of contents is located on the last page of this prospectus. The SEC maintains a website (www.sec.gov) that contains the SAI, other material incorporated by reference into the prospectus and other information regarding the separate account.

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

An investment in the contract is not a deposit of the TIAA-CREF Trust Company, FSB, and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

LOGO


TABLE OF CONTENTS


 

This prospectus describes the variable annuity issued by TIAA-CREF Life. It doesn’t constitute an offering in any jurisdiction where such an offering can’t lawfully be made. No dealer, salesman, or anyone else is authorized to give any information or to make any representation about this offering other than what is contained in this prospectus. If anyone does so, you shouldn’t rely on it.


 

DEFINITIONS

Throughout the prospectus, “TIAA-CREF Life,” “we,” and “our” refer to TIAA-CREF Life Insurance Company. “You” and “your” mean any contractowner or any prospective contractowner.

The terms and phrases below are defined so you’ll know precisely how we’re using them. To understand some definitions, you may have to refer to other defined terms.

1940 Act.  The Investment Company Act of 1940, as amended.

Accumulation.  The total value of your accumulation units plus the value in the fixed account.

Accumulation Period.  The period that begins with your first premium and continues as long as you still have an amount accumulated in either the separate account or the fixed account.

Accumulation Unit.  A share of participation in the separate account.

Annuitant.  The natural person whose life is used in determining the annuity payments to be received. The annuitant may be the contractowner or another person.

Annuity Unit.  A measure used to calculate the amount of annuity payments due a contractowner.

Beneficiary.  Any person or institution named to receive benefits if you die during the accumulation period or if you die while any annuity income or death benefit payments remain due. You don’t have to name the same beneficiary for both of these two situations.

Business Day.  Any day the New York Stock Exchange (“NYSE”) is open for trading. A business day ends at 4 p.m. Eastern Time, or when trading closes on the NYSE, if earlier.

Calendar Day.  Any day of the year. Calendar days end at the same time as business days.

Commuted Value.  The present value of annuity payments used when an annuity will be paid in a lump sum instead of a series of payments. For the fixed account, the commuted value is the sum of payments less the interest that would have been earned from the effective date of the commuted value calculation to the date each payment would have been made. For any investment account, the commuted value is based on interest at an effective annual rate of 4%, calculated using the amounts that would have been paid if periodic payments were to continue and the annuity unit value used for each payment equaled the value as of the effective date of the calculation.

 

Personal Annuity Select   n   Prospectus   3


 

Contract.  The fixed and separate account components of the individual, flexible premium, deferred annuity contract described in this prospectus.

Contractowner.  The person (or persons) who controls all the rights and benefits under a contract.

Fixed Account.  The component of the contract guaranteeing principal plus a specified rate of interest supported by assets held in TIAA-CREF Life’s general account.

General Account.  All of TIAA-CREF Life’s assets other than those allocated to the separate account or to any other TIAA-CREF Life separate account.

Income Change Method.  How you choose to have your variable annuity payments revalued. Under the annual income change method, your payments are revalued once each year. Under the monthly income change method, your payments are revalued every month.

Income Option.  Any of the ways you can receive annuity income. It is also referred to as an “annuity option.”

Internal Revenue Code (“IRC”).  The Internal Revenue Code of 1986, as amended.

Investment Account.  Each investment account is a sub-account of the Separate Account and invests its assets in shares of a corresponding underlying fund.

Premium.  Any amount you invest in the contract.

Second Annuitant.  The natural person whose life, together with the annuitant’s life, is used in determining the amount of annuity payments and how long those payments will be received under the Two-Life Annuities Income Option.

Separate Account.  TIAA-CREF Life Separate Account VA-1, which was established by TIAA-CREF Life under New York State law to fund your variable annuity contract. The separate account holds its assets apart from TIAA-CREF Life’s other assets.

Survivor Income Option.  An option that continues lifetime annuity payments as long as either the annuitant or the second annuitant is alive.

TIAA.  Teachers Insurance and Annuity Association of America. TIAA-CREF Life is an indirect wholly owned subsidiary of TIAA.

TIAA-CREF Life.  TIAA-CREF Life Insurance Company.

Valuation Day.  Any business day, as well as the last calendar day of each month. Valuation days end as of the close of all U.S. national exchanges where securities or other investments of the separate account are principally traded. Valuation days that aren’t business days end at 4 p.m. Eastern Time

 

4   Prospectus   n   Personal Annuity Select


 

SUMMARY

Read this summary together with the detailed information you’ll find in the rest of the prospectus.

WHAT IS THE PERSONAL ANNUITY SELECT?

Personal Annuity Select is an individual flexible premium deferred variable annuity product that allows individual investors to accumulate funds on a tax-deferred basis for retirement or other long-term investment purposes, and to receive future payment based on the amounts accumulated as lifetime income or through other payment options.

Under the Personal Annuity Select contract, you may allocate your premiums to a TIAA-CREF Life fixed account or to the TIAA-CREF Life separate account, which consists of eight investment accounts that invest in underlying mutual funds. As with all variable annuity contracts, your accumulation in the investment accounts component of your contract can increase or decrease, depending on how well the underlying mutual funds perform over time. TIAA-CREF Life doesn’t guarantee the investment performance of the funds or the investment accounts, and you bear the entire investment risk.

The contract accepts only after-tax dollars, which means your premiums can’t be excluded from your gross income for tax purposes. However, earnings on your accumulations in the separate account aren’t taxed until withdrawn or paid as annuity income. Withdrawals of accumulated investment earnings are taxable as ordinary income.

WHAT EXPENSES MUST I PAY UNDER THE CONTRACT?

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering your contract.

This first table lists certain categories of contractowner transaction expenses for comparative purposes. State premium taxes may be deducted depending on your state of residence.

 

CONTRACTOWNER TRANSACTION EXPENSES       

Sales load imposed on purchases (as a percentage of premiums)

     None

Deferred sales load (as a percentage of premiums or amount surrendered, as applicable)

     None

Premium taxes (as a percentage of premiums, if applicable)1

     1.0–3.5%

Surrender fees (as a percentage of amount surrendered)

     None

Exchange fee

     None

 

1

Only applicable in certain states. Where TIAA-CREF Life is required to pay this premium tax, it may deduct the amount of the premium tax paid from any premium payment.

This next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including fund fees and expenses.

 

Personal Annuity Select   n   Prospectus   5


 

SEPARATE ACCOUNT ANNUAL EXPENSES

(as a percentage of average account value)

 

      

Maximum

Contractual

Fees

     Fee
Waiver1
    

Current

Fees

Annual Contract Fees

     None      None      None

Mortality and expense risk charge

     1.00%      0.60%      0.40%

Administrative expense charge

     0.20%      0.00%      0.20%

Total separate account annual charges

     1.20%      0.60%      0.60%

 

1

TIAA-CREF Life has waived 0.60% of the mortality and expense risk charge, so that total current separate account annual charges are 0.60%. TIAA-CREF Life will provide at least three months’ notice before it raises the total separate account charges above 0.60%.

TIAA-CREF LIFE FUNDS ANNUAL EXPENSES

(as a percentage of fund average net assets)

These next two tables show the operating expenses charged by the various TIAA-CREF Life Funds available under your contract that you may pay periodically during the time you own the contract. The first table shows the maximum and minimum total operating expenses charged by these funds for the year ended December 31, 2007. The next table provides greater detail on the total operating expenses charged by each fund, and shows the total separate account and fund annual expenses.

Expenses of the funds may be higher or lower in the future. More information concerning each fund’s fees and expenses is also contained in the TIAA-CREF Life Funds’ prospectus.

RANGE OF TOTAL ANNUAL FUND OPERATING EXPENSES

 

       Minimum
Expenses
     Maximum
Expenses

Total expenses that are deducted from fund assets, including management fees and other expenses

     0.06%      0.33%

TOTAL ANNUAL FUND OPERATING EXPENSES BY FUND

 

    Management
(investment
advisory)
Fees
  Acquired
Fund
Fees and
Expenses
  Other
Expenses(1)
  Total
Annual
Fund
Operating
Expenses
  Current
Total
Separate
Account
Annual
Charges
  Current
Total
Separate
Account
and Fund
Annual
Expenses(2)

Growth Equity Fund

  0.25%   None   0.01%   0.26%   0.60%   0.86%

Growth & Income Fund

  0.23%   None   0.01%   0.24%   0.60%   0.84%

International Equity Fund

  0.29%   None   0.04%   0.33%   0.60%   0.93%

Large-Cap Value Fund

  0.24%   None   0.03%   0.27%   0.60%   0.87%

Small-Cap Equity Fund

  0.10%   None   0.01%   0.11%   0.60%   0.71%

Stock Index Fund

  0.06%   None   None   0.06%   0.60%   0.66%

Social Choice Equity Fund

  0.07%   None   None   0.07%   0.60%   0.67%

Real Estate Securities Fund

  0.25%   None   0.02%   0.27%   0.60%   0.87%

 

6   Prospectus   n   Personal Annuity Select


 

1

Each fund’s investment manager pays for most of the fund’s advisory fees and operating expenses out of the fund’s Management Fees. However, a few categories of fund expenses are borne by the fund directly, including independent trustee fees, interest on borrowings, taxes and extraordinary expenses, and are reflected under “Other Expenses.”

 

2

If TIAA-CREF Life imposed the full amount of the administrative expense and mortality and expense risk charges, total annual separate account and fund expenses would be 1.46% for the Growth Equity Fund, 1.44% for the Growth & Income Fund, 1.53% for the International Equity Fund, 1.47% for the Large-Cap Value Fund, 1.31% for the Small-Cap Equity Fund, 1.26% for the Stock Index Fund, 1.27% for the Social Choice Equity Fund, and 1.47% for the Real Estate Securities Fund.

Fund expenses are deducted from each underlying fund before TIAA-CREF Life is provided with the fund’s daily net asset value. TIAA-CREF Life then deducts separate account charges from the net asset value of the corresponding investment account.

Examples

The next two tables provide examples that are intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contractowner transaction expenses, separate account annual expenses, and fund fees and expenses.

These examples assume that you invest $10,000 in the contract for the time periods indicated. The examples also assume that your investment earns a 5% return each year and assumes the maximum fees and expenses of the funds.

The first example assumes that the current separate account fee waivers are in place for each period. The second example assumes that there is no waiver of separate account charges.

Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Example Without Fee Waivers

 

       1 Year      3 Years      5 Years      10 Years

Growth Equity Account

     $ 174      $ 537      $ 922      $ 1,996

Growth & Income Account

     $ 172      $ 531      $ 912      $ 1,974

International Equity Account

     $ 181      $ 558      $ 959      $ 2,074

Large-Cap Value Account

     $ 175      $ 540      $ 928      $ 2,007

Small-Cap Equity Account

     $ 158      $ 490      $ 843      $ 1,829

Stock Index Account

     $ 153      $ 475      $ 817      $ 1,773

Social Choice Equity Account

     $ 154      $ 478      $ 822      $ 1,784

Real Estate Securities Account

     $ 175      $ 540      $ 928      $ 2,007

 

Personal Annuity Select   n   Prospectus   7


 

Example With Fee Waivers

 

       1 Year      3 Years      5 Years      10 Years

Growth Equity Account

     $ 113      $ 349      $ 602      $ 1,311

Growth & Income Account

     $ 111      $ 343      $ 591      $ 1,287

International Equity Account

     $ 120      $ 371      $ 640      $ 1,393

Large-Cap Value Account

     $ 114      $ 353      $ 607      $ 1,323

Small-Cap Equity Account

     $ 98      $ 302      $ 520      $ 1,133

Stock Index Account

     $ 92      $ 286      $ 493      $ 1,072

Social Choice Equity Account

     $ 93      $ 289      $ 498      $ 1,085

Real Estate Securities Account

     $ 114      $ 353      $ 607      $ 1,323

These tables are provided to help you understand the various expenses you would bear directly or indirectly as an owner of a contract. Remember that they don’t represent actual past or future expenses or investment performance. Actual expenses may be higher or lower. For more information, see “Charges.”

For condensed financial information pertaining to each investment account, please see Appendix A.

HOW DO I PURCHASE A CONTRACT?

TIAA-CREF Life is no longer offering for sale the Personal Annuity Select contract.

In the event we resume offering the contract for new sales, to purchase a contract you will be required to complete an application and make an initial payment of at least $250, or $25 under an automatic investment plan using Electronic Funds Transfer (“EFT”). Additional contributions must be at least $25. For more information, see “Purchasing a Contract and Remitting Premiums.”

CAN I CANCEL MY CONTRACT?

You can examine the contract and return it to TIAA-CREF Life for a refund until the end of the “free look” period specified in your contract (which is a minimum of 10 days, but varies by state). In states that permit it, we’ll refund the accumulation value calculated on the date that you returned the contract and the refund request to us. (Note that the value of your initial premium may have gone down during the period.) In states that don’t allow us to refund accumulation value only, we’ll refund the premiums you paid to the contract. We will consider the contract returned on the date it’s postmarked and properly addressed with postage prepaid or, if it’s not postmarked, on the day we receive it. We will send you the refund within 7 days after we get written notice of cancellation and the returned contract. If you live in a state that requires refund of premiums, your total of premiums and transfers allocated to the separate account during the “free look” period can’t exceed $10,000. For more information, see “Purchasing a Contract and Remitting Premiums.”

 

8   Prospectus   n   Personal Annuity Select


 

CAN I TRANSFER AMONG THE INVESTMENT ACCOUNT OPTIONS OR MAKE CASH WITHDRAWALS FROM THE CONTRACT?

Subject to limitations, you may transfer portions of your accumulation value from the investment accounts to the fixed account and among the investment account options. All transfers must be for at least $250 or your entire contract accumulation. For more information see “Transfer Policies Regarding Market Timing and Frequent Trading.” All cash withdrawals must be for at least $1,000 or your entire contract accumulation, if less than $1,000. For more information, see “Transfers” and “Cash Withdrawals.”

Cash withdrawals may be taxed and you may have to pay a tax penalty if you take a cash withdrawal before age 59 1/2.

WHAT ARE MY OPTIONS FOR RECEIVING ANNUITY PAYMENTS UNDER THE CONTRACT?

You can choose fixed or variable annuity payments (or any combination of fixed and variable payments) by allocating your accumulation to the fixed account or to one or more of the separate account’s investment accounts. Annuity payments from the fixed account are guaranteed over the life of the contract. Annuity payments from the separate account’s investment accounts may increase or decrease, depending on how well the funds underlying the investment accounts perform over time. Your payments will also change depending on the income change method you choose—i.e., whether you choose to have your payments revalued monthly or annually.

The contract offers a variety of annuity options, including: One-Life Annuities, which pay income as long as the annuitant lives or until the end of a specified guaranteed period, whichever is longer; Fixed-Period Annuities, which pay income for a period of between 2 and 30 years; and Two-Life Annuities, which pay income as long as the annuitant lives, then continues at either the same or a reduced level for the life of the second annuitant or until the end of a specified guaranteed period, whichever is greater. For more information, see “The Contract—the Annuity Period.”

WHAT DEATH BENEFITS ARE AVAILABLE UNDER THE CONTRACT?

If you die before receiving annuity payments, your beneficiary can receive a death benefit. The amount of the death benefit will be the greater of the amounts you’ve accumulated in your accounts or the total premiums paid under your contract (less any cash withdrawals). For more information, see “Death Benefits.”

TIAA-CREF LIFE INSURANCE COMPANY AND TIAA

The contracts are issued by TIAA-CREF Life Insurance Company, a stock life insurance company organized under the laws of the State of New York on November 20, 1996. All of the stock of TIAA-CREF Life is held by Teachers

 

Personal Annuity Select   n   Prospectus   9


 

Insurance and Annuity Association of America (“TIAA”). TIAA-CREF Life’s headquarters are at 730 Third Avenue, New York, New York 10017-3206.

TIAA is a stock life insurance company organized under the laws of the State of New York. It was founded on March 4, 1918, by the Carnegie Foundation for the Advancement of Teaching. TIAA is the companion organization of the College Retirement Equities Fund (CREF), the first company in the United States to issue a variable annuity. CREF is a nonprofit membership corporation established in the State of New York in 1952. Together, TIAA and CREF, serving approximately 3.3 million people, form the principal retirement system for the nation’s education and research communities and represent one of the largest retirement systems in the world, based on assets under management. As of December 31, 2007, TIAA’s assets were approximately $196.4 billion; the combined assets for TIAA and CREF totaled approximately $417.8 billion (although neither TIAA nor CREF stands behind TIAA-CREF Life’s guarantees).

THE SEPARATE ACCOUNT

On July 27, 1998, we established TIAA-CREF Life Separate Account VA-1 under New York law. We own the assets in the separate account and we are obligated to pay all benefits under the contract. We may use the separate account to support other variable annuity contracts we issue. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act), and qualifies as a “separate account” within the meaning of the federal securities laws. This registration does not involve supervision of the management or investment practices or policies of the separate account by the SEC.

We have divided the separate account into investment accounts, each of which invests in shares of one underlying fund. The investment accounts buy and sell underlying fund shares at net asset value. Any dividends and distributions from an underlying fund are reinvested at net asset value in shares of that underlying fund.

The assets in the separate account are kept separate from our general account and our other separate accounts. Assets equal to the reserves and contract liabilities of the separate account will not be charged with liabilities that arise from any other business we may conduct. We may transfer assets, in excess of the reserves and contract liabilities of the separate account, to our general account. All income, gains and losses, whether or not realized, of an investment account will be credited to or charged against that investment account without regard to our other income, gains or losses. The valuation of all assets in the separate account will be determined in accordance with all applicable laws and regulations. The separate account may include other investment accounts that are not available under the contracts and are not discussed in this prospectus.

 

10   Prospectus   n   Personal Annuity Select


 

TIAA-CREF LIFE FUNDS

GENERAL

TIAA-CREF Life Funds is an open-end management investment company that was organized as a business trust under Delaware law on August 13, 1998. The TIAA-CREF Life Funds currently consists of ten funds but may add other funds in the future.

FUND PROSPECTUSES

The investment objectives, techniques and restrictions of the TIAA-CREF Life Funds, including the risks of investing in the funds, are described fully in the funds’ prospectus and SAI for the TIAA-CREF Life Funds. A copy of the prospectus or a profile of that prospectus accompanies this prospectus. The prospectus and SAI of the TIAA-CREF Life Funds may be obtained free of charge by writing TIAA-CREF Life Funds, 730 Third Avenue, New York, New York 10017-3206, by calling 877 825-0411, or by accessing the TIAA-CREF Web Center at www.tiaa-cref.org. You should read the prospectus for the TIAA-CREF Life Funds carefully before investing in the investment accounts. You should consult your registered representative, who can provide advice on the investment accounts provided, as not all of them may be suitable for long-term investment needs.

Note that not all of the ten funds described in the attached prospectus for the TIAA-CREF Life Funds are available under your contract. When you consult the TIAA-CREF Life Funds prospectus, you should be careful to refer only to the information regarding the funds listed below.

The following summarizes each fund’s investment objective(s). There is no assurance that any of the funds will achieve its stated objective(s).

The funds available under your contract are:

Active Equity Funds:

The Growth Equity Fund seeks a favorable long-term return, mainly through capital appreciation, primarily from equity securities.

The Growth & Income Fund seeks a favorable long-term total return through both capital appreciation and investment income primarily from income-producing equity securities.

The International Equity Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of foreign issuers.

The Large-Cap Value Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of large domestic companies.

 

Personal Annuity Select   n   Prospectus   11


 

The Small-Cap Equity Fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of smaller domestic companies.

Index Funds:

The Stock Index Fund seeks a favorable long-term total return, mainly from capital appreciation, by investing primarily in a portfolio of equity securities selected to track the overall U.S. equity markets.

Specialty Funds:

The Social Choice Equity Fund seeks a favorable long-term total return that reflects the investment performance of the overall U.S. stock market while giving special consideration to certain social criteria.

The Real Estate Securities Fund seeks to obtain a favorable long-term total return through both capital appreciation and current income, by investing primarily in equity and fixed-income securities of companies principally engaged in or related to the real estate industry.

INVESTMENT MANAGEMENT

Teachers Advisors, Inc. (“Advisors”), an indirect subsidiary of TIAA, manages the assets of the TIAA-CREF Life Funds. Advisors also manages the Stock Index Account of the TIAA Separate Account VA-1, TIAA-CREF Mutual Funds, and TIAA-CREF Institutional Mutual Funds. The same personnel also manage the CREF accounts on behalf of TIAA-CREF Investment Management, LLC, a registered investment advisor which is also a TIAA subsidiary.

VOTING RIGHTS

The separate account is the legal owner of the shares of the underlying funds being offered through the investment accounts in your contract. It therefore has the right to vote its shares at any meeting of the underlying funds’ shareholders. Generally, open-end investment companies, such as the underlying funds, do not hold annual meetings of shareholders. However, if and when shareholder meetings are held, we will give you the right to instruct us how to vote the shares attributable to your contract. If we don’t receive timely instructions from you, we will vote your shares in the same proportion as the voting instructions received on all outstanding contracts. Please note that the effect of proportional voting is that a small number of contractowners may control the outcome of a vote. We may vote the shares of the underlying funds in our own right in some cases, if we determine that we may legally do so.

The number of underlying fund shares attributable to you is determined by dividing your interest in the applicable investment account by the net asset value of the underlying fund.

 

12   Prospectus   n   Personal Annuity Select


 

ADDING AND CLOSING ACCOUNTS OR SUBSTITUTING INVESTMENT PORTFOLIOS; ADDING OR DELETING INCOME METHODS

Where permitted by applicable law, we reserve the right to take certain actions that we deem necessary to serve your best interests and appropriate to carry out the purposes of this contract. When required by law, we will obtain approval by you, the SEC, and/or any appropriate regulatory authority. The actions that we may take include:

 

   

deregistering the separate account under the 1940 Act;

 

   

operating the separate account in any form permitted under the 1940 Act, or in any other form permitted by law;

 

   

taking any action necessary to comply with or obtain and continue any exemptions from the 1940 Act;

 

   

transferring any assets from an investment account: (a) into another investment account or investment account; or (b) into one or more separate accounts; or (c) into our general account;

 

   

adding, combining or removing investment accounts in the separate account;

 

   

substituting, for the underlying fund shares held in any investment account, the shares of another class issued by the underlying fund, or the shares of another investment company or any other investment permitted by law;

 

   

change the way we deduct or collect charges under the contract, but without increasing the charges unless and to the extent permitted by other provisions of this contract;

 

   

making any other necessary technical changes in this contract in order to conform with any action this provision permits us to take; and

 

   

adding to, eliminating, or suspending your ability to allocate premiums or transfer accumulation value into any investment account.

We can add new investment accounts in the future that would invest in other underlying funds, funds or other investment vehicles. We don’t guarantee that the separate account, any existing investment account, or any investment account added in the future will always be available. We reserve the right to add or close investment accounts, substitute another underlying funds, fund or other investment vehicle without your consent, or combine investment accounts or underlying funds. A substituted underlying fund, fund or investment vehicle may have different fees and expenses. Substitutions and investment account closings may be made with respect to existing investments or the investment of future premiums, or both. However, no substitution will be made without any necessary approval of the SEC. An underlying fund also may discontinue offering its shares to the investment accounts. In addition, we

 

Personal Annuity Select   n   Prospectus   13


 

reserve the right to make other structural and operational changes affecting the separate account and the contract.

We will notify you if any of these changes result in a material change in the underlying investments of an investment account of the separate account to which any part of your accumulation value is allocated. Information about any such change will be filed with any regulatory authority where required and will be subject to any required approval.

If you object to a material change and a portion of your accumulation value is attributable to the affected investment account, then you may transfer that value into another investment account.

To effect such transfers, we must receive your acceptable request at our Administrative Office within 60 days of the postmarked notice of material change. We will not deduct a transfer charge for this transaction.

THE CONTRACT—THE ACCUMULATION PERIOD

The contract is an individual flexible premium (you can contribute varying amounts) deferred annuity that accepts only after-tax dollars. The rights and benefits under the separate account component of the contract are summarized below. However, the descriptions you read here are qualified entirely by the contract itself.

PURCHASING A CONTRACT AND REMITTING PREMIUMS

Initial Premiums. TIAA-CREF Life is no longer offering for sale the Personal Annuity Select contract. In the event we resume offering the contract for new sales, we will generally issue you a contract when we receive a completed application and your initial premium at our home office.

Please send your check, payable to TIAA-CREF Life Insurance Company, along with your completed application to:

TIAA-CREF

P.O. Box 530189

Atlanta, GA 30353-0189

Note that we cannot accept money orders, travelers check, or cash. In addition, we will not accept a third-party check where the relationship of the payor to the account owner cannot be identified from the face of the check. Initial premiums must be for at least $250. However, you may establish an automatic investment plan using electronic funds transfers with a minimum investment of $25 by completing an authorization form. (The initial payment must be made by check.) We will credit your initial premium within two business days after we receive all necessary information and the premium itself. If we don’t have the necessary information within five business days, we’ll return your initial premium unless you instruct us otherwise upon being contacted.

 

14   Prospectus   n   Personal Annuity Select


 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the U.S. government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions, including us, to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth, Social Security number and other information that will allow us to identify you. Until you provide us with the information we need, we may not be able to open an account or effect any transactions for you.

If we are unable to verify your identity, or that of another person authorized to act on your behalf, or if we believe that we have identified potentially criminal activity, we reserve the right to take such action as we deem appropriate, which may include closing your account.

Additional Premiums. Subsequent premiums must be for at least $25. Send a check, payable to TIAA-CREF Life Insurance Company, along with a personalized payment coupon (supplied upon purchasing a contract) to:

TIAA-CREF

Personal Annuity Premiums

P.O. Box 530195

Atlanta, GA 30353-0195

If you don’t have a coupon, use a separate piece of paper to give us your name, address and contract number. These premiums will be credited as of the business day we receive them, and allocated in the same way as your prior premiums, unless you instruct otherwise. Currently, TIAA-CREF Life will accept premiums at any time both the contractowner and the annuitant are living and your contract is in the accumulation period. However, we reserve the right not to accept premiums under this contract after you have been given three months’ prior notice.

Electronic Payment. You may make initial or subsequent investments by electronic payment. A federal wire is usually received the same day and an ACH is usually received by the second day after transmission. Be aware that your bank may charge you a fee to wire funds, although ACH is usually less expensive than a federal wire. Here’s what you need to do:

 

  1. If you are sending in an initial premium, send us your completed application;

 

  2. Instruct your bank to wire money to:

Citibank, N.A.

ABA Number 021000089

New York, NY

Account of: TIAA-CREF Life Insurance Company

Account Number: 4068-4865

 

Personal Annuity Select   n   Prospectus   15


 

  3. Specify on the wire:

 

   

Your name, address and Social Security Number(s) or Taxpayer Identification Number

 

   

Indicate if this is for a new application or existing contract (provide contract number if existing)

Certain Restrictions. You may only open one contract in any calendar year. Except as described below, the contract doesn’t restrict how large your premiums are or how often you send them although we reserve the right to impose restrictions in the future. Currently, your total premiums and transfers to the investment accounts during the “free look” period can’t exceed $10,000 if you live in any of the following states: Georgia, Hawaii, Idaho, Iowa, Louisiana, Massachusetts, Michigan, Missouri, Nebraska, North Carolina, Oklahoma, Rhode Island, South Carolina, Utah, Washington, West Virginia, Wisconsin.

Contributions to the fixed account are limited to $300,000 on a rolling twelve-month basis. New contributions and/or transfers from the investment accounts count toward this limit. Further, the total amount of premiums we accept from any financial advisory firm may be limited. Call us for more information.

We reserve the right to reject any premium payment or to place dollar limitations on the amount of a premium. If mandated under applicable law, including federal laws designed to counter terrorism and prevent money laundering, we may be required to reject a premium payment. We may also be required to block a contractowner’s account and refuse to pay any request for transfers, withdrawals, surrenders, or death benefits, until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators.

More About Remitting Premiums. We will not be deemed to have received any premiums sent to the addresses designated in this prospectus for remitting premiums, until the third-party service administrator has received such premiums along with any necessary information.

ACCUMULATION UNITS

The premiums you allocate or transfers you make to the investment accounts purchase accumulation units. We calculate how many accumulation units to credit by dividing the amount allocated or transferred to the particular investment account by its accumulation unit value calculated at the close of the business day when we received your premium or completed transfer request. We may use a later business day for your initial premium. If we receive your premium or completed transfer request in good order anytime after the close of the business day, the accumulation unit value will be calculated the next business day. To determine how many accumulation units to subtract for transfers out and cash withdrawals, we use the unit value for the business day when we receive your completed transaction request and all required information and documents (unless you’ve chosen a later date).

 

16   Prospectus   n   Personal Annuity Select


 

The value of the accumulation units will depend mainly on the investment experience of the underlying funds, though the unit value reflects expense deductions from assets by TIAA-CREF Life. We calculate the unit value at the close of each valuation day. We multiply the previous day’s unit value by the net investment factor for the pertinent investment account of the separate account. The net investment factor reflects, for the most part, changes in the net asset value of the shares of the funds held by the investment account, and investment income and capital gains distributed to the investment account. The net investment factor is decreased by the separate account expense and risk charges.

THE FIXED ACCOUNT

This prospectus provides information mainly about the separate account and the investment accounts. Following is a brief description of the fixed account.

You can allocate premiums to the fixed account or transfer from the investment accounts to the fixed account at any time. Premiums allocated and amounts transferred to the fixed account become part of the general account assets of TIAA-CREF Life, which support various insurance and annuity obligations. The general account includes all the assets of TIAA-CREF Life, except those held in the separate account (i.e., the investment accounts) or in any other TIAA-CREF Life separate account. Interests in the fixed account have not been registered under the Securities Act of 1933 (the 1933 Act), nor is the fixed account registered as an investment company under the 1940 Act. Neither the fixed account nor any interests therein are generally subject to the 1933 Act or 1940 Act.

TIAA-CREF Life guarantees that amounts allocated to the fixed account will earn an interest rate that is at least as high as the minimum guaranteed rate allowed by the law in effect at the time your contract is issued, in the state where your contract is issued. At our discretion, TIAA-CREF Life can credit amounts in the fixed account with interest at a higher rate. Please call us or consult your contract for information on the applicable guaranteed rate under your contract. Any amounts paid from the fixed account are subject to our financial strength and claims-paying ability.

For more information about the fixed account, see your contract.

TRANSFERS

You can transfer some (at least $250 at a time) or all of the amount you accumulate under your contract among the separate account’s investment accounts and from those accounts to the fixed account. Currently, we don’t charge you for transfers or limit the number of transfers you may make from the investment accounts to the fixed account or among the investment account options (except from the International Equity Account, as described below).

 

Personal Annuity Select   n   Prospectus   17


 

TRANSFER POLICIES REGARDING MARKET TIMING AND FREQUENT TRADING

There are contractowners who may try to profit from transferring money back and forth among investment accounts in an effort to “time” the market or for other reasons. As money is shifted in and out of these accounts, we incur transaction costs and the underlying funds incur expenses for buying and selling securities. In addition, excessive trading can interfere with efficient portfolio management and cause dilution, if traders are able to take advantage of pricing inefficiencies. These costs are borne by all contractowners, including long-term investors who do not generate the costs. The contract is not designed for market timing or frequent trading. The risk of pricing inefficiencies may be increased for underlying funds invested primarily in foreign securities.

To discourage market timing activity and control certain transfer activity, TIAA-CREF Life has adopted the following policies and procedures:

 

   

Under the contract, transfers or withdrawals from the fixed account to any of the variable investment accounts are limited to once every 180 days. TIAA-CREF Life may defer a transfer from the fixed account for up to six months.

 

   

We reserve the right to allow you to make only one transfer from any one investment account to one or more other investment accounts within a 90-day period.

 

   

We will count as “one transfer” all transfers effected on the same valuation day from any one investment account to one or more other investment accounts.

 

   

If we regard the transfer activity as disruptive to the underlying funds’ efficient portfolio management, based on the timing or amount of the investment or because of a history of excessive trading by the investor, we may limit a contractowner’s ability to make transfers by telephone, fax or over the Internet.

 

   

We also may stop doing business with financial advisors who engage in excessive transfer activity on behalf of their clients.

 

   

Because we have discretion in applying these policies, it is possible that similar transfer activity could be handled differently because of the surrounding circumstances.

 

   

We seek to apply our market timing and other transfer policies uniformly to all contractowners. No exceptions are made with respect to the policies. The contract is not appropriate for market timing. You should not invest in the contract if you want to engage in market timing activity.

 

   

We do not include transfers made pursuant to the dollar cost averaging when applying our Market Timing/Transfer Policies.

 

   

We reserve the right to modify or terminate our market timing policies or transfer privileges at any time.

 

18   Prospectus   n   Personal Annuity Select


 

Contractowners seeking to engage in market timing may deploy a variety of strategies to avoid detection, and, despite our efforts to discourage market timing, there is no guarantee that TIAA-CREF Life or its agents will be able to identify all market timers or curtail their trading practices. If we do not identify or curtail market timers, there could be dilution in the value of account shares held by long-term owners, increased transaction costs, and interference with the efficient portfolio management of the affected investment account.

Additionally, the TIAA-CREF Life Funds may have their own policies and procedures to deter market timing and excessive trading, which may include, but are not limited to, trading restrictions and prohibitions, and redemption and other fees. While we reserve the right to enforce these policies and procedures, we may not have the contractual authority or the operational capacity to apply the market timing and excessive trading policies and procedures of the TIAA-CREF Life Funds. However, we have entered into a written agreement, as required by SEC regulation, with TIAA-CREF Life Funds or its principal underwriter that obligates us to provide to the underlying fund promptly upon request certain information about the trading activity of individual contractowners, and to execute instructions from TIAA-CREF Life Funds to restrict or prohibit further purchases or transfers by specific contractowners who violate the market timing and excessive trading policies established by the TIAA-CREF Life Funds. Please see the TIAA-CREF Life Funds’ prospectus for more information on their various market timing policies and procedures.

Cash withdrawals

You can withdraw some or all of your accumulation in the investment accounts. Cash withdrawals must be for at least $1,000 (or your entire accumulation, if less than $1,000). We reserve the right to cancel any contract where no premiums have been paid to either the separate account or the fixed account for three years and your total amount in the separate account and the fixed account falls below $250. Currently, there’s no charge for cash withdrawals.

If you withdraw your entire accumulation in the separate account and the fixed account, we’ll cancel your contract and all of our obligations to you under the contract will end.

Systematic withdrawals and dollar cost averaging

You may set up a program to make cash withdrawals or engage in dollar cost averaging automatically, subject to state regulatory approval. You may do so by specifying that we withdraw or transfer from an account accumulation any fixed number of accumulation units, dollar amount or percentage of accumulation, or, from the fixed account, interest only, until you tell us to stop the transactions or until your accumulation is exhausted. You must have total accumulations of at least $10,000 under your contract to start a program, and the program must be set up so that at least $100 is automatically withdrawn or

 

Personal Annuity Select   n   Prospectus   19


 

transferred at a time (other than the “interest only” option). Your withdrawal and transfer transactions cannot begin earlier than seven days after we receive all your required forms, and you may not begin a program during the “free look” period. We reserve the right to suspend the systematic withdrawal and dollar cost averaging programs at any time. Note that systematic withdrawals and dollar cost averaging do not assure a profit or protect against a loss in declining markets.

Withdrawals to pay advisory fees

You can set up a program to have monies withdrawn directly from your contract accumulations to pay your financial advisor. You will be required to complete and return certain forms to effect these cash withdrawals, indicating how you want these monies to be withdrawn. Funds will be withdrawn from each of your accounts on a pro rata basis. These payments will be treated as cash withdrawals for tax purposes. If you are under age 59 1/2 you will likely incur a 10% federal tax penalty on earnings in addition to regular income tax. You should discuss the potential for this penalty with a qualified tax adviser before agreeing to have advisory fees deducted from your contract. Before you set up this program, make sure you understand all the possible tax consequences. We reserve the right to determine which financial advisors are eligible for this type of fee arrangement.

General considerations for all transfers and cash withdrawals

You can tell us how much you want to transfer or withdraw in dollars, accumulation units, or as a percentage of your accumulation.

Transfers and cash withdrawals are effective at the end of the business day we receive your request and any required information and documentation. Transfers and cash withdrawals made at any time other than during a business day will be effective at the end of the next business day. You can also defer the effective date of a transfer or cash withdrawal to a future business day acceptable to us. Transfers to the fixed account begin participating on the day after the business day we receive your transfer request and any required information and documentation.

To request a transfer, write to TIAA-CREF Life’s home office, call our Automated Telephone Service at 800 842-2252 (there is an option to speak with a live person, if you wish), or go to the TIAA-CREF website’s account access feature at www.tiaa-cref.org. If you make a telephone or Internet transfer at any time other than during a business day, it will be effective at the close of the next business day. We can suspend or terminate your ability to transfer by telephone, fax, or over the Internet at any time for any reason.

TAX ISSUES

Make sure you understand the possible federal and other income tax consequences of transfers and cash withdrawals. Cash withdrawals are taxed

 

20   Prospectus   n   Personal Annuity Select


 

at the rates for ordinary income—i.e., they are not treated as capital gains. Withdrawals before age 59 1/2 may subject you to early distribution taxes as well. For more information, see “Federal Income Taxes.”

CHARGES

SEPARATE ACCOUNT CHARGES

We deduct charges each valuation day from the assets of each investment account for various services required to administer the separate account and the contracts and to cover certain insurance risks borne by TIAA-CREF Life. The contract allows for total separate account charges (i.e., administrative expense and mortality and expense risk charges) of 1.20 percent of net assets of each investment account annually. TIAA-CREF Life has waived a portion of the mortality and expense risk charges so that current separate account charges are at an annual rate of 0.60 percent of net assets annually. While TIAA-CREF Life reserves the right to increase the separate account charges at any time (up to the 1.20% maximum), we will provide at least three months’ prior notice before we implement any such increase.

Administrative Expense Charge. This charge is for administration and operations, such as allocating premiums and administering accumulations. The daily deduction is equivalent to 0.20 percent of net assets annually.

Mortality and Expense Risk Charge. TIAA-CREF Life imposes a daily charge as compensation for bearing certain mortality and expense risks in connection with the contract. The current daily deduction is equal to 0.40 percent of net assets annually.

TIAA-CREF Life’s mortality risks come from its obligations under the contracts to make annuity payments under the One-Life Annuity and the Two-Life Annuity and to pay death benefits before the annuity starting date. TIAA-CREF Life assumes the risk of making annuity payments regardless of how long the annuitant(s) may live or whether the mortality experience of annuitants as a group is better than expected. TIAA-CREF Life also bears a risk in connection with its death benefit guarantee, since a death benefit may be more than the actual amount of an accumulation at the time when it’s payable.

TIAA-CREF Life’s expense risk is the possibility that TIAA-CREF Life’s actual expenses for administering and marketing the contract and for operating the separate account will be higher than the amount recovered through the administrative expense deduction.

If the mortality and expense risk charge allowed under the contract isn’t enough to cover TIAA-CREF Life’s costs, TIAA-CREF Life will absorb the deficit. On the other hand, if the charge more than covers costs, TIAA-CREF Life will profit. TIAA-CREF Life will pay a fee from its general account assets, which may include amounts derived from the mortality and expense risk

 

Personal Annuity Select   n   Prospectus   21


 

charge, to Teachers Personal Investors Services, Inc. (“TPIS”), the principal distributor of the contract.

OTHER CHARGES AND EXPENSES

Fund Expenses. Each investment account purchases shares of the corresponding underlying fund at net asset value. Certain deductions and expenses of the underlying funds are paid out of the assets of the TIAA-CREF Life Funds. These expenses include charges for investment advice, portfolio accounting, custody, and similar services provided for the funds. Advisors is entitled to an annual fee based on a percentage of the average daily net assets of each fund, under an investment management agreement between Advisors and the TIAA-CREF Life Funds. The funds’ expenses are not fixed or specified under the terms of this contract, and they may change periodically. The fees for the TIAA-CREF Life Funds available under your contract are currently as follows:

 

     Annual Fund Expenses (as a
percentage of the average
daily net assets of the fund)

Growth Equity Fund

   0.26%

Growth & Income Fund

   0.24%

International Equity Fund

   0.33%

Large-Cap Value Fund

   0.27%

Small-Cap Equity Fund

   0.11%

Stock Index Fund

   0.06%

Social Choice Equity Fund

   0.07%

Real Estate Securities Fund

   0.27%

For more information on underlying fund deductions and expenses, read the TIAA-CREF Life Funds prospectus.

No Deductions from Premiums. The contract provides for no front-end charges.

Premium Taxes. Currently, residents of several states may be subject to premium taxes on their contract. We normally deduct any charges for premium taxes from your accumulation when it’s applied to provide annuity payments. However, if a jurisdiction requires that premium taxes be paid at other times, such as when premiums are paid or when cash withdrawals are taken, we’ll deduct premium taxes then. State premium taxes currently range from 1.00% to 3.50% of premium payments.

THE CONTRACT—THE ANNUITY PERIOD

You can apply your contract accumulation to provide annuity payments. You can choose fixed or variable annuity payments (or any combination of fixed and variable payments) by allocating your accumulation to the fixed account or to one or more of the separate account’s investment accounts. Annuity payments will be based, among other things, on the amount of your accumulation, your choice of income option, and your choice among the fixed

 

22   Prospectus   n   Personal Annuity Select


 

and variable payout options. In the case of variable payments, your payments will also be based on the investment returns of the fund(s) underlying the investment account(s) you choose and the income charge method you choose. You may elect to receive monthly, quarterly, semi-annual or annual payments. If your annuity payments would be less than $100 under the payment option you choose, we may make annuity payments less frequently than that. The total value of annuity payments made to you may be more or less than the total premiums you paid under the contract.

WHEN ANNUITY PAYMENTS BEGIN

Generally you pick the date when you want annuity payments to begin when you first apply for a contract. The date you choose can’t be later than the annuitant’s 90th birthday. You can choose or change this annuity starting date at any time before annuity payments begin. In any case, the annuity starting date will be the first day of a month and can’t be earlier than fourteen months after the day your contract is issued. Your first annuity check may be delayed while we process your choice of income options and calculate the amount of your initial payment.

For payments to begin on the annuity starting date you chose, we must have received all information and documentation necessary for the income option you’ve picked. If we haven’t received all the necessary information, we’ll defer the annuity starting date until the first day of the month after the information has reached us, but not beyond the annuitant’s 90th birthday. If you haven’t picked an income option by then or if we have not otherwise received all the necessary information, we will begin payments under a One-Life Annuity with, if allowed under federal tax law, a ten year guaranteed period. The payments will be made out of the fixed and investment accounts to which your accumulation was allocated, in the same proportion as the accumulation.

Technically all benefits are payable at TIAA-CREF Life’s home office, but if you instruct us, we’ll send your annuity payments by mail to your home address or (on your request) by mail or electronic fund transfer to your bank. If the address or bank where you want your payments changes, it’s your responsibility to let us know. We can send payments to your residence or most banks abroad. Our ability to combine and continue making annuity payments is subject to our financial strength and claims-paying ability.

PAYMENT FROM THE FIXED ACCOUNT

Your payments from the fixed account are based on the value of the accumulation in your contract determined at the end of the last calendar day of the month before the annuity starting date. At the annuity starting date, the dollar amount of each annuity payment resulting from your accumulations is fixed, based upon:

 

   

the amount of your fixed account accumulation

 

   

the annuity option you choose

 

Personal Annuity Select   n   Prospectus   23


 

   

the length of the fixed period or guaranteed period, as applicable

 

   

the frequency of payment you choose

 

   

the ages of the annuitant and any second annuitant, and

 

   

the current annuity rates, which may not be less than those specified in your contract’s rate schedule.

Payments from the fixed account will not vary—they won’t change based on the investment experience of any investment account.

PAYMENT FROM THE INVESTMENT ACCOUNTS

Your initial income payments out of the investment accounts will be based on:

 

   

the value of your accumulation in the investment accounts on the last valuation day before the annuity starting date

 

   

the annuity option you choose

 

   

the length of the fixed period or guaranteed period, as applicable

 

   

the frequency of payment you choose

 

   

the ages of the annuitant and any second annuitant, and

 

   

an assumed annual investment return of 4% and the current mortality basis, which may not be less than that set forth in the contract’s rate schedule

Subsequent payments will be based on the investment experience of the funds underlying the investment accounts relative to the 4% assumed annual investment return, and the income change method you choose. In general, your payments will increase if the performance of the investment account (net of expenses) is greater than 4% and decrease if the performance is less than 4%.

You may choose either an annual or monthly income change method for your variable annuity payments. Under the annual income change method, payments from the investment accounts will change each May 1, based on the net investment results of the funds underlying the investment accounts during the prior year (April 1 through March 31). Under the monthly income change method, payments from the investment accounts will change every month, based on the net investment results during the previous month. The amount of your next payment will be determined on the 20th day of each month (or, if the 20th is not a business day, the prior business day).

For a full discussion of how we determine the amount of variable annuity payments, see the SAI.

ANNUITY OPTIONS

You have a number of different annuity options. The current options are:

 

   

One-Life Annuities with or without Guaranteed Period. Pays income as long as the annuitant lives. If you opt for a guaranteed period (10, 15 or 20 years) and your annuitant dies before it’s over, income payments will continue to you or your beneficiary until the end of the period. The

 

24   Prospectus   n   Personal Annuity Select


 

 

guaranteed period may be limited by applicable tax laws. If you don’t opt for a guaranteed period, all payments end at your annuitant’s death—so that it’s possible for you to receive only one payment if your annuitant dies less than a month after payments start.

 

   

Fixed-Period Annuities. Pays income for a stipulated period of not less than two or more than thirty years. At the end of the period you’ve chosen, payments stop. If you die before the period is up, your beneficiary becomes the contractowner. The period you choose may be limited by applicable tax laws.

 

   

Two-Life Annuities with or without Guaranteed Period. Pays income to you as long as the annuitant or the second annuitant lives, then continues at either the same or a reduced level for the life of the survivor, or until the end of the specified guaranteed period, whichever period is longer. The guaranteed period may be limited by applicable tax laws. There are three types of two-life annuity options, all available with or without a guaranteed period—Full Benefit While Either the Annuitant or the Second Annuitant is Alive, Two-Thirds Benefit After the Death of Either the Annuitant or the Second Annuitant, and a Half-Benefit After the Death of the Annuitant.

From the investment accounts, you or your beneficiary have the right to receive in a lump sum the commuted value of any periodic payments or other amounts remaining due (i) while guaranteed period payments are being made, or (ii) under a Fixed-Period Annuity.

TRANSFERS DURING THE ANNUITY PERIOD

You will be able to transfer all or part of the future annuity income payable from each investment account one time each calendar quarter to another investment account or to the fixed account. One time a calendar year, you will also be able to transfer the present value of future amounts payable from the fixed account to any of the investment accounts (provided they are equity accounts), either in a lump sum limited to 20% of annuity income in any year, or in installment payments over a five year period. Once income has been transferred to the fixed account, subsequent transfers may be made only from or among the investment accounts, but not back to the fixed account.

We’ll process your transfer on the business day we receive your request if received by the close of the business day. Alternatively, you can choose to have a transfer take effect at the close of any future business day, or the last calendar day of the current or any future month, even if it’s not a business day. Transfers under the annual income payment method will affect your annuity payments beginning on the May 1 following the March 31 which is on or after the effective date of the transfer. Transfers under the monthly income payment method and all transfers into or out of the fixed account will affect your annuity payments beginning with the first payment due after the monthly payment valuation day that is on or after the transfer date.

 

Personal Annuity Select   n   Prospectus   25


 

You can switch between the annual and monthly income change methods, and the switch will go into effect on the following March 31.

For more information, see the SAI.

DEATH BENEFITS

AVAILABILITY; CHOOSING BENEFICIARIES

Death benefits are available if you or the annuitant dies during the accumulation period. When you fill out an application for a contract, you name one or more beneficiaries to receive the death benefit if you die. You can change your beneficiary at any time during the accumulation period. For more information on designating beneficiaries, contact TIAA-CREF Life or your legal adviser.

SPECIAL OPTION FOR SPOUSES

If your spouse is the sole beneficiary when you die, your spouse can choose to become the contractowner and continue the contract, or receive the death benefit. If your spouse does not make a choice within 60 days after we receive proof of death, your spouse will automatically become the contractowner. Your spouse will also become the annuitant if you were the annuitant.

PAYMENT OF DEATH BENEFIT

To authorize payment and pay a death benefit, TIAA-CREF Life must have received all necessary forms and documentation, including proof of death and the selection of the method of payment. Even if we have not received all of the required information, death benefits must begin by the first day of the month following the 60th day after we receive proof of death. If no method of payment has been chosen by that time, we will pay the death benefit as annual payments for a fixed period ending in the twelve-month period before the fifth anniversary of the death. The fixed account accumulation will be used to provide payments from the fixed account and the investment account accumulation will be used to provide payments from the investment accounts initially in the same proportion as each investment account’s accumulation to the contract’s total investment account accumulation. Payment of the death benefit in excess of your account accumulation is subject to our financial strength and claims-paying ability.

AMOUNT OF DEATH BENEFIT

The amount of the death benefit will equal the greater of:

 

  (1) the amount you have accumulated in the investment accounts and the fixed account on the day we authorize payment of the death benefit, or

 

  (2) the total premiums paid under your contract minus any cash withdrawals (or any surrender charges paid on cash withdrawals).

 

26   Prospectus   n   Personal Annuity Select


 

If (2) is greater than (1), we’ll deposit the difference in the fixed account as of the day we authorize payment of the death benefit.

METHODS OF PAYMENT OF DEATH BENEFITS

You can choose in advance the method by which we’ll pay death benefits. The level of death benefits received will depend on the method of payment selected. You can block your beneficiaries from changing the method you’ve chosen or you can leave the choice to them. The method of payment you’ve chosen can be changed by notifying us in writing, provided death benefits haven’t yet started.

TIAA-CREF Life limits the methods of payment for death benefits to those suitable under federal income tax law for annuity contracts. With methods offering periodic payments, benefits are usually paid monthly, but the death benefit beneficiary can request to receive them quarterly, semi-annually, or annually instead. At present, the methods of payment for TIAA-CREF Life death benefits are:

 

   

Single-Sum Payment. The entire death benefit is paid at once. When the beneficiary is an estate, the single-sum method is automatic, and TIAA-CREF Life reserves the right to pay death benefits only as a single sum to any beneficiary that is not a natural person.

 

   

One-Life Annuities with or without Guaranteed Period. Payable monthly for the life of the death benefit beneficiary or through a specified guaranteed period, whichever is longer. The guaranteed period may be limited by applicable tax laws.

 

   

Fixed-Period Annuities. Payable over two to thirty years, as determined by you or your beneficiary. The payment period may be limited by applicable tax laws.

Single-sum payments must be made within five years of your death. Other methods of payment must begin within one year of your death.

The One-Life Annuities are available only if the death benefit beneficiary is a natural person. We reserve the right to require a change in choice if the chosen method results in payments of less than $100.

The amount of your death benefit payments under a One-Life Annuity or Fixed Period Annuity method is determined in the same way as annuity payments.

If your beneficiary dies while guaranteed or fixed period payments are being made, any periodic payments or other amounts remaining due will be paid to the person named by you or the beneficiary. We may pay the commuted value of these payments in a lump sum unless the beneficiary directs otherwise.

 

Personal Annuity Select   n   Prospectus   27


 

TIMING OF PAYMENTS

Usually we’ll make the following kinds of payments from the investment accounts within seven calendar days after we’ve received the information we need to process a request:

 

  1. Cash withdrawals;
  2. Transfers to another investment account, the fixed account or another company; and
  3. Death benefits.

We can extend the seven-day period only if (1) the New York Stock Exchange is closed (or trading is restricted by the SEC) on a day that isn’t a weekend or holiday; (2) an SEC-recognized emergency makes it impractical for us to sell securities or determine the value of assets in the separate account; or (3) the SEC says by order that we can or must postpone payments to protect you and other separate account contractowners.

FEDERAL INCOME TAXES

The following discussion is based on our understanding of current federal income tax law, and is subject to change. For complete information on your personal tax situation, check with a qualified tax adviser.

TAXATION OF ANNUITIES

The following discussion assumes the contracts qualify as annuity contracts for federal income tax purposes (see the SAI for more information):

In General. Internal Revenue Code (“IRC”) section 72 governs annuity taxation generally. We believe an owner who is a natural person usually won’t be taxed on increases in the value of a contract until there is a distribution (i.e., the owner withdraws all or part of the accumulation or takes annuity payments). Since transfers among investment accounts under the contract aren’t considered distributions, they won’t be taxed. Assigning, pledging, or agreeing to assign or pledge any part of the accumulation usually will be considered a distribution. Withdrawals of accumulated investment earnings are taxable as ordinary income. Generally under the IRC, withdrawals are first allocated to investment earnings.

The owner of any annuity contract who is not a natural person (such as a trust) generally must include in income any increases in the value of the contract during the taxable year.

The following discussion applies generally to contracts owned by a natural person:

Withdrawals. If you withdraw funds from your contract before the annuity starting date, IRC section 72(e) usually deems taxable any amounts received to the extent that the accumulation value at the time of your withdrawal exceeds your investment in the contract. The investment in the contract usually equals all premiums paid by the contractowner or on the contractowner’s behalf.

 

28   Prospectus   n   Personal Annuity Select


 

If you withdraw your entire accumulation under a contract, you will be taxed only on the part that exceeds your investment in the contract.

Annuity Payments. Although tax consequences can vary with the income option you pick, IRC section 72(b) provides generally that, before you recover the investment in the contract, part of each annuity income payment is treated as recovery of your investment in the contract, and can be excluded from your income. After you recover your investment in the contract, all additional annuity payments are fully taxable.

Taxation of Death Benefit Proceeds. Amounts may be paid from a contract because an owner has died. If the payments are made in a single sum, they’re taxed the same way a full withdrawal from the contract is taxed. If they are distributed as annuity payments, they’re taxed as annuity payments.

Penalty Tax on Some Withdrawals. You may have to pay a penalty tax (10 percent of the amount treated as taxable income) on some withdrawals. However, there is usually no penalty on distributions:

 

 

(1)

on or after you reach age 59 1/2;

 

  (2) after you die (or after the annuitant dies, if the owner isn’t an individual);

 

  (3) after you become disabled; or

 

  (4) that are part of a series of substantially equal periodic (at least annual) payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your beneficiary.

Possible Tax Changes. Legislation is proposed from time to time that would change the taxation of annuity contracts. It is possible that such legislation could be enacted and that it could be retroactive (that is, effective prior to the date of the change). You should consult a tax adviser regarding legislative developments and their effect on the contract.

TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT

Transferring contract ownership, pledging the contract as security for a loan, designating an annuitant, payee or other beneficiary who is not also the owner, or exchanging a contract can have other tax consequences that we don’t discuss here. If you’re thinking about any of those transactions, contact a tax adviser.

WITHHOLDING

Annuity distributions are usually subject to withholding for the recipient’s federal income tax liability at rates that vary according to the type of distribution and the recipient’s tax status. However, recipients can usually choose not to have tax withheld from distributions.

MULTIPLE CONTRACTS

In determining gross income, section 72(e) will treat as one contract all TIAA-CREF Life and TIAA nonqualified deferred annuity contracts issued to

 

Personal Annuity Select   n   Prospectus   29


 

the same owner during any calendar year. This could affect when income is taxable and how much might be subject to the 10 percent penalty tax (see above). Consult a tax adviser before buying more than one annuity contract for the purpose of gaining a tax advantage.

POSSIBLE CHARGE FOR TIAA-CREF LIFE’S TAXES

Currently we don’t charge the separate account for any federal, state, or local taxes on it or its contracts (other than premium taxes), but we reserve the right to charge the separate account or the contracts for any tax or other cost resulting from the tax laws that we believe should be attributed to them.

OTHER TAX ISSUES

Federal Estate Taxes. While no attempt is being made to discuss the federal estate tax implications of the contract, a purchaser should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump-sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information.

Generation Skipping Transfer Tax. Under certain circumstances, the IRC may impose a “generation skipping transfer tax” when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the owner. Regulations issued under the IRC may require us to deduct the tax from your contract, or from any applicable payment, and pay it directly to the IRS.

Annuity Purchases by Residents of Puerto Rico. The Internal Revenue Service has announced that income from an annuity received by residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rican branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity Purchases by Nonresident Aliens and Foreign Corporations. The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser’s country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity contract purchase.

Foreign Tax Credits. We may benefit from any foreign tax credits attributable to taxes paid by certain funds to foreign jurisdictions to the extent permitted under federal tax law.

 

30   Prospectus   n   Personal Annuity Select


 

TAX ADVICE

What we tell you here about federal and other taxes isn’t comprehensive and is for general information only. It doesn’t cover every situation. Taxation varies depending on the circumstances, and state and local taxes may also be involved. For complete information on your personal tax situation, check with a qualified tax adviser.

GENERAL MATTERS

TELEPHONE AND INTERNET TRANSACTIONS

You can use our Automated Telephone Service (“ATS”) or the TIAA-CREF Web Center’s account access feature to check your accumulation balance and/or your current allocation percentages, transfer among the investment accounts and the fixed account, and/or allocate future premiums to the investment accounts or the fixed account. You will be asked to enter your Personal Identification Number (PIN) and Social Security number for both systems. Both will lead you through the transaction process and will use reasonable procedures to confirm that instructions given are genuine. All transactions made over the ATS and the Internet are electronically recorded.

To use the ATS, you need a touch-tone phone. The toll-free number for the ATS is (800) 842-2252. To use the Internet, access the TIAA-CREF website at www.tiaa-cref.org.

We can suspend or terminate your ability to transact by telephone, fax, or over the Internet at any time for any reason.

CONTACTING TIAA-CREF LIFE

We won’t consider any notice, form, request, or payment to have been received by TIAA-CREF Life until it reaches our home office at 730 Third Avenue, New York, New York 10017-3206 or the post office box specifically designated for the purpose. You can ask questions by calling us toll-free at 877 825-0411.

CUSTOMER COMPLAINTS

Customer complaints may be directed to our Planning and Service Center, Customer Relations Unit (A2-01), 8500 Andrew Carnegie Blvd., Charlotte, NC 28262, telephone 877 825-0411.

ELECTRONIC PROSPECTUSES

If you received this prospectus electronically and would like a paper copy, please call us at 877 825-0411, and we will send it to you free of charge.

HOUSEHOLDING

To reduce costs and eliminate duplicate documents sent to your home, we may begin mailing only one copy of the prospectus, prospectus supplements,

 

Personal Annuity Select   n   Prospectus   31


 

annual and semi-annual reports, or any other required documents, to your household, even if more than one contractowner lives there. If you would prefer to continue receiving your own copy of any of these documents, you may call us toll-free at 877 825-0411, or write us.

SIGNATURE REQUIREMENTS

For some transactions, we may require your signature to be notarized or guaranteed by a commercial bank or a member of a national securities exchange.

ERRORS OR OMISSIONS

We reserve the right to correct any errors or omissions on any form, report or statement that we send you.

DISTRIBUTING THE CONTRACTS

TIAA-CREF Life is no longer offering for sale the contract. However, existing contracts, or replacements for those contracts, remain in effect and existing contractowners can continue to contribute money to their contracts.

The contracts are distributed by Teachers Personal Investors Services, Inc. (“TPIS”) and, in some instances, TIAA-CREF Individual & Institutional Services, LLC (“Services”), subsidiaries of TIAA which are both registered with the SEC as broker/dealers and are members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). TPIS may also enter into selling agreements with third parties to distribute the contracts. TPIS is considered the “principal underwriter” for interests in the contract. Anyone distributing the contract must be a registered representative of either TPIS or Services or an entity that has entered into a selling agreement with TPIS. The main offices of TPIS and Services are located at 730 Third Avenue, New York, New York 10017-3206. No commissions are paid in connection with the distribution of the contracts, although we pay TPIS a fee from our general account assets for sales of the contracts. For fiscal years 2005, 2006, and 2007, we paid TPIS $299,993, $354,947 and $497,717, respectively, for distribution of the contracts, and TPIS retained these amounts. We intend to recoup payments made to TPIS through fees and charges imposed under the contract.

LEGAL PROCEEDINGS

Neither the separate account, TIAA-CREF Life nor TPIS is involved in any legal action that we consider material to the separate account.

STATEMENTS AND REPORTS

You will receive a confirmation statement each time you remit premiums, or make a transfer or cash withdrawal to or from the separate account or among the investment accounts. The statement will show the date and amount of each

 

32   Prospectus   n   Personal Annuity Select


 

transaction. However, if you’re using an automatic investment plan, you’ll receive a statement confirming those transactions immediately following the end of each calendar quarter.

If you have any accumulation in the separate account, you will be sent a statement each quarter which sets forth the following:

 

  (1) Premiums paid during the quarter;

 

  (2) the number and dollar value of accumulation units in the investment accounts credited to the contractowner during the quarter and in total;

 

  (3) cash withdrawals from the investment accounts during the quarter; and

 

  (4) any transfers between the separate account’s investment accounts and the fixed account during the quarter.

You will also receive, at least semi-annually, reports containing the financial statements of the TIAA-CREF Life Funds and a schedule of investments held by the TIAA-CREF Life Funds.

 

Personal Annuity Select   n   Prospectus   33


 

Table of Contents for the Statement of

Additional Information

 

B-3    Variable Annuity Payments
B-3    Tax Status of the Contracts
B-4    General Matters
B-5    State Regulation
B-5    Legal Matters
B-6    Experts
B-6    Additional Information
B-6    Financial Statements
B-7    Index to Financial Statements

 

34   Prospectus   n   Personal Annuity Select


 

APPENDIX A—CONDENSED FINANCIAL INFORMATION

Presented below is condensed financial information for the separate account. The table shows per accumulation unit data and total returns for the Stock Index, Growth Equity, Growth & Income, International Equity, Social Choice Equity, Large-Cap Value, Small-Cap Equity, and Real Estate Securities variable investment accounts of the separate account. The data should be read in conjunction with the financial statements and other financial information included in the SAI. The SAI is available without charge upon request.

 

Personal Annuity Select   n   Prospectus   35


CONDENSED FINANCIAL INFORMATION

continued

 

     Stock Index Investment Account

   
 
     For the Years Ended December 31,

    December 1, 1998
(commencement
of operations) to
Dec. 31, 1998(a)
 
     2007     2006     2005     2004     2003     2002     2001     2000     1999    

ACCUMULATION UNIT VALUE:

 

                                                                       

Beginning of period

   $ 35.35     $ 30.76     $ 29.18     $ 26.24     $ 20.14     $ 25.70     $ 29.12     $ 31.55     $ 26.10     $ 25.00  

End of period

   $ 36.95     $ 35.35     $ 30.76     $ 29.18     $ 26.24     $ 20.14     $ 25.70     $ 29.12     $ 31.55     $ 26.10  


TOTAL RETURN

     4.53 %     14.92 %     5.41 %     11.22 %     30.26 %     (21.64 )%     (11.72 )%     (7.72 )%     20.91 %     4.39 %

RATIOS TO AVERAGE NET ASSETS:

                                                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.47 %     0.30 %     0.30 %     0.30 %     0.30 %     0.02 %

Investment income—net

     1.99 %     2.06 %     1.09 %     1.26 %     3.54 %     1.54 %     0.73 %     0.98 %     5.09 %     0.18 %

Thousands of Accumulation Units outstanding at end of period

     3,915       4,056       4,303       4,449       4,397       3,363       2,667       2,062       723       4  

Net assets at end of period
(in thousands)

   $ 150,569     $ 147,889     $ 136,162     $ 132,964     $ 117,326     $ 68,585     $ 68,574     $ 60,021     $ 22,827     $ 104  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

36   Prospectus   n   Personal Annuity Select


CONDENSED FINANCIAL INFORMATION

continued

 

     Growth Equity Investment Account

 
     For the Years Ended December 31,

    For the Period ended
March 1, 2000
(commencement
of operations) to
Dec. 2000(a)
 
     2007     2006     2005     2004     2003     2002     2001    

ACCUMULATION UNIT VALUE:

                                                                

Beginning of period

   $ 15.12     $ 14.41     $ 13.75     $ 13.00     $ 10.18     $ 14.59     $ 18.98     $ 25.00  

End of period

   $ 18.30     $ 15.12     $ 14.41     $ 13.75     $ 13.00     $ 10.18     $ 14.59     $ 18.98  


TOTAL RETURN

     21.03 %     4.98 %     4.80 %     5.75 %     27.71 %     (30.22 )%     (23.12 )%     (24.09 )%

RATIOS TO AVERAGE NET ASSETS:

                                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.47 %     0.30 %     0.30 %     0.25 %

Investment income (loss)—net

     0.26 %     0.16 %     0.05 %     0.29 %     0.80 %     0.30 %     0.08 %     (0.18 )%

Thousands of Accumulation Units outstanding at end of period

     1,683       1,513       1,733       1,848       2,119       1,950       1,587       1,018  

Net assets at end of period (in thousands)

   $ 31,942     $ 23,582     $ 25,602     $ 26,002     $ 27,938     $ 19,979     $ 23,151     $ 19,327  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

Personal Annuity Select   n   Prospectus   37


CONDENSED FINANCIAL INFORMATION

continued

 

     Growth & Income Investment Account

 
     For the Years Ended December 31,

    For the Period ended
March 1, 2000
(commencement
of operations) to
Dec. 2000(a)
 
     2007     2006     2005     2004     2003     2002     2001    

ACCUMULATION UNIT VALUE:

                                                                

Beginning of period

   $ 26.31     $ 22.66     $ 21.39     $ 19.57     $ 15.55     $ 20.52     $ 23.69     $ 25.00  

End of period

   $ 31.05     $ 26.31     $ 22.66     $ 21.39     $ 19.57     $ 15.55     $ 20.52     $ 23.69  


TOTAL RETURN

     18.02 %     16.15 %     5.93 %     9.28 %     25.81 %     (24.20 )%     (13.39 )%     (5.23 )%

RATIOS TO AVERAGE NET ASSETS:

                                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.47 %     0.30 %     0.30 %     0.25 %

Investment income—net

     1.03 %     0.99 %     0.75 %     1.02 %     1.57 %     0.97 %     0.92 %     1.63 %

Thousands of Accumulation Units outstanding at end of period

     1,634       1,485       1,553       1,639       1,653       1,278       1,017       521  

Net assets at end of period (in thousands)

   $ 52,889     $ 40,516     $ 36,489     $ 35,832     $ 32,820     $ 20,075     $ 20,869     $ 12,353  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

38   Prospectus   n   Personal Annuity Select


CONDENSED FINANCIAL INFORMATION

continued

 

     International Equity Investment Account

 
     For the Years Ended December 31,

    For the Period ended
March 1, 2000
(commencement
of operations) to
Dec. 2000(a)
 
     2007     2006     2005     2004     2003     2002     2001    

ACCUMULATION UNIT VALUE:

                                                                

Beginning of period

   $ 26.94     $ 20.85     $ 18.24     $ 15.59     $ 11.10     $ 13.01     $ 17.13     $ 25.00  

End of period

   $ 31.95     $ 26.94     $ 20.85     $ 18.24     $ 15.59     $ 11.10     $ 13.01     $ 17.13  


TOTAL RETURN

     18.60 %     29.17 %     14.32 %     17.01 %     40.41 %     (14.68 )%     (24.04 )%     (31.48 )%

RATIOS TO AVERAGE NET ASSETS:

                                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.47 %     0.30 %     0.30 %     0.25 %

Investment income—net

     21.66 %     1.18 %     1.21 %     1.57 %     1.89 %     2.34 %     1.17 %     1.24 %

Thousands of Accumulation Units outstanding at
end of period

     2,569       2,203       1,840       1,572       1,290       1,013       669       436  

Net assets at end of period (in thousands)

   $ 83,930     $ 60,301     $ 39,020     $ 29,078     $ 20,361     $ 11,290     $ 8,703     $ 7,470  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

Personal Annuity Select   n   Prospectus   39


CONDENSED FINANCIAL INFORMATION

continued

 

     Social Choice Equity Investment Account

 
     For the Years Ended December 31,

    For the Period ended
March 1, 2000
(commencement
of operations) to
Dec. 2000(a)
 
     2007     2006     2005     2004     2003     2002     2001    

ACCUMULATION UNIT VALUE:

                                                                

Beginning of period

   $ 29.28     $ 25.70     $ 24.13     $ 21.60     $ 16.69     $ 21.11     $ 24.29     $ 25.00  

End of period

   $ 30.34     $ 29.28     $ 25.70     $ 24.13     $ 21.60     $ 16.69     $ 21.11     $ 24.29  


TOTAL RETURN

     3.62 %     13.95 %     6.47 %     11.71 %     29.44 %     (20.92 )%     (13.11 )%     (2.84 )%

RATIOS TO AVERAGE NET ASSETS:

                                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.48 %     0.30 %     0.30 %     0.25 %

Investment income—net

     2.86 %     1.65 %     1.01 %     1.28 %     1.70 %     1.51 %     1.17 %     1.86 %

Thousands of Accumulation Units outstanding at end of period

     594       619       682       639       586       352       196       69  

Net assets at end of period (in thousands)

   $ 18,828     $ 18,655     $ 17,928     $ 15,490     $ 12,696     $ 5,875     $ 4,141     $ 1,676  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

40   Prospectus   n   Personal Annuity Select


CONDENSED FINANCIAL INFORMATION

continued

 

     Large-Cap Value Investment Account

 
     For the Years Ended December 31,

    For the Period
September 4, 2002
(commencement
of operations) to
Dec. 31, 2002(a)
 
     2007     2006     2005     2004     2003    

ACCUMULATION UNIT VALUE:

                                                

Beginning of period

   $ 50.12     $ 41.47     $ 39.76     $ 33.13     $ 24.98     $ 25.00  

Ending of period

   $ 50.28     $ 50.12     $ 41.47     $ 39.76     $ 33.13     $ 24.98  


TOTAL RETURN

     0.31 %     20.85 %     4.31 %     20.03 %     32.62 %     (0.09 )%

RATIOS TO AVERAGE NET ASSETS:

                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.55 %     0.10 %

Investment income—net

     12.70 %     8.64 %     7.58 %     19.32 %     12.64 %     0.82 %

Thousands of Accumulation Units outstanding at end of period

     491       503       443       406       194       7  

Net assets at end of period (in thousands)

   $ 25,979     $ 25,759     $ 18,800     $ 16,615     $ 6,581     $ 173  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

Personal Annuity Select   n   Prospectus   41


CONDENSED FINANCIAL INFORMATION

continued

 

     Small-Cap Equity Investment Account

 
     For the Years Ended December 31,

   

For the Period
September 4, 2002
(commencement
of operations) to
Dec. 31, 2002(a)

 
     2007     2006     2005     2004     2003    

ACCUMULATION UNIT VALUE:

                                                

Beginning of period

   $ 53.17     $ 45.39     $ 43.67     $ 36.67     $ 24.73     $ 25.00  

Ending of period

   $ 49.89     $ 53.17     $ 45.39     $ 43.67     $ 36.67     $ 24.73  


TOTAL RETURN

     (6.17 )%     17.13 %     3.94 %     19.11 %     48.26 %     (1.08 )%

RATIOS TO AVERAGE NET ASSETS:

                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.57 %     0.10 %

Investment income—net

     8.50 %     8.96 %     14.05 %     17.34 %     28.61 %     0.85 %

Thousands of Accumulation Units outstanding at end of period

     333       409       388       415       328       10  

Net assets at end of period (in thousands)

   $ 17,330     $ 22,291     $ 18,045     $ 18,452     $ 12,208     $ 241  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

42   Prospectus   n   Personal Annuity Select


CONDENSED FINANCIAL INFORMATION

concluded

 

     Real Estate Securities Investment Account

 
     For the Years Ended December 31,

    For the Period
September 4, 2002
(commencement
of operations) to
Dec. 31, 2002(a)
 
     2007     2006     2005     2004     2003    

ACCUMULATION UNIT VALUE:

                                                

Beginning of period

   $ 64.84     $ 48.67     $ 45.67     $ 34.55     $ 24.81     $ 25.00  

Ending of period

   $ 54.07     $ 64.84     $ 48.67     $ 45.67     $ 34.55     $ 24.81  


TOTAL RETURN

     (16.61 )%     33.24 %     6.56 %     32.18 %     39.24 %     (0.74 )%

RATIOS TO AVERAGE NET ASSETS:

                                                

Expenses(b)

     0.60 %     0.60 %     0.60 %     0.60 %     0.55 %     0.10 %

Investment income—net

     11.45 %     9.67 %     14.87 %     22.08 %     2.87 %     2.88 %

Thousands of Accumulation Units outstanding at end of period

     453       681       611       613       403       14  

Net assets at end of period (in thousands)

   $ 26,024     $ 45,401     $ 30,623     $ 28,643     $ 14,151     $ 347  

 

(a) The percentages shown for this period are not annualized.

 

(b) Does not include expenses of underlying TIAA-CREF Life Fund.

 

Personal Annuity Select   n   Prospectus   43


 

STATEMENT OF ADDITIONAL INFORMATION

LIFETIME VARIABLE SELECT AND

PERSONAL ANNUITY SELECT

Individual Flexible Premium Deferred Variable

Annuity Contracts

TIAA-CREF LIFE FUNDS

MAY 1, 2008

LOGO


 

STATEMENT OF ADDITIONAL INFORMATION

LIFETIME VARIABLE SELECT AND

PERSONAL ANNUITY SELECT

Individual Flexible Premium Deferred Variable

Annuity Contracts

Funded through

TIAA-CREF LIFE SEPARATE ACCOUNT VA-1

And sponsored by

TIAA-CREF LIFE INSURANCE COMPANY

MAY 1, 2008

This Statement of Additional Information is not a prospectus and should be read in connection with the current prospectuses dated May 1, 2008 (the “Prospectuses”), for the Lifetime Variable Select and Personal Annuity Select variable annuity contracts. The Prospectuses are available without charge by writing us at: TIAA-CREF Life Insurance Company, 730 Third Avenue, New York, N.Y. 10017-3206 or calling us toll-free at 800 223-1200. Defined terms used in the Prospectuses are incorporated into this Statement of Additional Information.

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND SHOULD BE READ ONLY IN CONJUNCTION WITH THE PROSPECTUSES FOR THE CONTRACTS.

LOGO


Table of Contents

 


 

 

 

VARIABLE ANNUITY PAYMENTS

The amount of variable annuity payments we pay will depend upon the number and value of your annuity units in a particular investment account. The number of annuity units is first determined on the day before the annuity payments begin. The amount of the annuity payments will change according to the income change method chosen.

Number of Annuity Units Payable. When a contractowner or beneficiary starts receiving variable annuity payments, the number of annuity units payable from each investment account under an income change method will be determined by dividing the value of the account accumulation to be applied to provide the annuity payments, by the product of the annuity unit value for that income change method, and a factor that represents the present value of an annuity that continues for as long as annuity payments would need to be paid. This factor will reflect an interest rate for discounting future payments of 4 percent, the timing and frequency of future payments, and, if applicable, the mortality assumptions for the person(s) on whose life (lives) the annuity payments will be based. Mortality assumptions will be based on the settlement mortality schedules set forth in the contract.

The number of annuity units for each investment account and income change method remains fixed unless there is a “transfer” of annuity units or you change your income change method. The number of annuity units payable from a particular investment account and income change method under your contract will be reduced by the number of annuity units you transfer out of that investment account or income change method under your contract. The number of annuity units payable will be increased by any internal transfers you make to that investment account and income change method.

Calculating Annuity Unit Values. The annuity unit value for each investment account is calculated separately for each income change method for each business day and for the last calendar day of each month. The annuity unit value for each income change method is determined by updating the annuity unit value from the previous valuation day to reflect the net investment performance of each investment account for the current valuation period relative to the 4 percent assumed investment return. We further adjust the annuity unit value to reflect the fact that annuity payment amounts are redetermined only once a month or once a year (depending on the revaluation method chosen). The purpose of the adjustment is to equitably apportion any account gains or losses among those annuitants who receive annuity income for the entire period between valuation dates and those who start or stop receiving annuity income between the two dates. In general, from period

to period your payments will increase if the net performance of the investment accounts is greater than a 4 percent net annual rate of return and decrease if the net performance is less than a 4 percent net annual rate of return.

For participants under the annual income change method, the value of the annuity unit for payments remains level until the following May 1. For those who have already begun receiving annuity income as of March 31, the value of the annuity unit for payments due on and after the next succeeding May 1 is equal to the annuity unit value determined as of such March 31.

For participants under the monthly income change method, the value of the annuity unit for payments changes on the payment valuation day of each month for the payment due on the first day of the following month.

TIAA-CREF Life reserves the right to modify the specific dates that payments will change and the associated payment valuation date. We also can delete or stop offering the annual or monthly income change methods.

TAX STATUS OF THE CONTRACTS

Diversification Requirements. Section 817(h) of the Internal Revenue Code (IRC) and the regulations under it provide that separate account investments underlying a nonqualified contract must be “adequately diversified” for it to qualify as an annuity contract under IRC section 72. The separate account intends to comply with the diversification requirements of the regulations under section 817(h). This will affect how we make investments.

Under the IRC, you could be considered the owner of the assets of the separate account used to support your contract. If this happens, you’d have to include income and gains from the separate account assets in your gross income. The IRS has published rulings stating that a variable contractowner will be considered the owner of separate account assets if the contractowner has any powers of control that the actual owner of the assets might have, such as the ability to exercise investment control.

Your ownership rights under the contract are similar but not identical to those described by the IRS in rulings that held that contractowners were not owners of separate account assets, so the IRS therefore might not rule the same way in your case. TIAA-CREF Life reserves the right to change the contract if necessary to help prevent you from being considered the owner of the separate account’s assets.

Required Distributions. All payments upon death of a contractowner will be made according to the requirements of section 72(s) of the IRC. Under that IRC section, if you die before


 

Lifetime Variable Select and Personal Annuity Select   n    Statement of Additional Information   B-3


 

we begin making annuity payments, all payments under the contract must be distributed within five years of your death.

However, if your beneficiary is a natural person and payments begin within one year of your death, and within 60 days of the date we receive due proof of death, the distribution may be made over the lifetime of your beneficiary or over a period not to exceed your beneficiary’s life expectancy, as defined in the IRC. If your spouse is the sole beneficiary entitled to payments, he or she may choose to become the owner and continue the contract. If you die on or after the date we begin making annuity payments, the remaining interest in the contract must be distributed at least as quickly as under the method of distribution being used as of the date of your death. If the owner is not a natural person, the death of the annuitant is treated as the death of the owner for these distribution requirements.

The contract is designed to comply with section 72(s). TIAA-CREF Life will review the contract and amend it if necessary to make sure that it continues to comply with the section’s requirements.

GENERAL MATTERS

ASSIGNMENT OF CONTRACTS

You can assign the contract at any time prior to the annuity starting date. You should consult a qualified tax adviser before assigning your contract.

PAYMENT TO AN ESTATE, GUARDIAN, TRUSTEE, ETC.

We reserve the right to pay in one sum the commuted value of any benefits due an estate, corporation, partnership, trustee or other entity not a natural person. Neither TIAA-CREF Life nor the separate account will be responsible for the conduct of any executor, trustee, guardian, or other third party to whom payment is made.

BENEFITS BASED ON INCORRECT INFORMATION

If the amounts of benefits provided under a contract were based on information that is incorrect, benefits will be recalculated on the basis of the correct data. If any overpayments or underpayments have been made by the separate account, appropriate adjustments will be made.

PROOF OF SURVIVAL

We reserve the right to require satisfactory proof that anyone named to receive benefits under a contract is living on the date payment is due. If this proof is not received after a request in writing is made, the separate account will have the right to make reduced payments or to withhold payments entirely until such proof is received.

FINANCIAL SUPPORT AGREEMENT

The contracts are issued by TIAA-CREF Life. All of the stock of TIAA-CREF Life is held by Teachers Insurance and Annuity Association of America (TIAA).

TIAA-CREF Life has a financial support agreement with TIAA. Under this agreement, TIAA will provide support so that TIAA-CREF Life will have the greater of (a) capital and surplus of $250 million, (b) the amount of capital and surplus necessary

to maintain TIAA-CREF Life’s capital and surplus at a level not less than 150% of the NAIC Risk Based Capital model or (c) such other amount as necessary to maintain TIAA-CREF Life’s financial strength rating at least the same as TIAA’s rating at all times. This agreement is not an evidence of indebtedness or an obligation or liability of TIAA and does not provide any contractowner of TIAA-CREF Life with recourse to TIAA.

MANAGEMENT RELATED SERVICE CONTRACTS

We have an agreement with State Street Bank and Trust Company, a trust company established under the laws of the Commonwealth of Massachusetts, to perform investment accounting and recordkeeping functions for the investment securities, other non-cash investment properties, and/or monies in the separate account of TIAA-CREF Life. TIAA-CREF Life on behalf of the separate account has entered an agreement whereby JPMorgan will provide certain custodial settlement and other associated services to the separate account.

STATE REGULATION

TIAA-CREF Life and the separate account are subject to regulation by the State of New York Superintendent of Insurance (“Superintendent”) as well as by the insurance regulatory authorities of certain other states and jurisdictions.

TIAA-CREF Life and the separate account must file with the Superintendent periodic statements on forms promulgated by the State of New York Insurance Department. The separate account’s books and assets are subject to review and examination by the Superintendent and the Superintendent’s agents at all times, and a full examination into the affairs of the separate account is made at least every five years. In addition, a full examination of the separate account’s operations is usually conducted periodically by some other states.

LEGAL MATTERS

All matters of applicable state law pertaining to the contracts, including TIAA-CREF Life’s right to issue the contracts, have been passed upon by George W. Madison, Executive Vice President and General Counsel of TIAA-CREF Life. Dechert LLP has provided advice to the separate account related to certain matters under the federal securities law.

EXPERTS

The statements of assets and liabilities of TIAA-CREF Life Separate Account VA-1 as of December 31, 2007, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements, and the statutory basis financial statements of TIAA CREF Life as of December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, included in this Statement of Additional Information, have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.


 

B-4   Statement of Additional Information   n    Lifetime Variable Select and Personal Annuity Select


 

ADDITIONAL INFORMATION

A registration statement has been filed with the Securities and Exchange Commission (“SEC”), under the 1933 Act, with respect to the contracts discussed in the Prospectus and in this Statement of Additional Information. Not all of the information set forth in the registration statement, and its amendments and exhibits, has been included in the Prospectus or this Statement of Additional Information. Statements contained in this registration statement concerning the contents of the contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, you should refer to the instruments filed with the SEC.

 

FINANCIAL STATEMENTS

Audited financial statements of the separate account and TIAA-CREF Life follow.

TIAA-CREF Life’s financial statements should be considered only as bearing upon TIAA-CREF Life’s ability to meet its obligations under the contracts. They should not be considered as bearing on the investment performance of the assets held in the separate account.


 

Lifetime Variable Select and Personal Annuity Select   n    Statement of Additional Information   B-5


Index to Financial Statements

 

TIAA-CREF LIFE SEPARATE ACCOUNT VA-1
Audited Financial Statements
For the Fiscal Year Ended December 31, 2007:
1   Report of Independent Registered Public Accounting Firm
2   Statements of Assets and Liabilities
4   Statements of Operations
6   Statements of Changes in Net Assets
8   Notes to Financial Statements
 
 
 
 
 

 

 
 
 
 
 

 

 

 

B-6   Statement of Additional Information   n    Lifetime Variable Select and Personal Annuity Select


Report of independent registered public accounting firm

 

To the Contractowners of TIAA-CREF Life Separate Account VA-1 and the Board of Directors of TIAA-CREF Life Insurance Company:

In our opinion, the accompanying statements of assets and liabilities and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of each of the Sub-Accounts listed in Note 1 of TIAA-CREF Life Separate Account VA-1 at December 31, 2007, and the results of each of their operations for the year ended and the changes in each of their net assets for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of the TIAA-CREF Life Insurance Company; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which include confirmation of fund shares owned at December 31, 2007 with the transfer agent of the investee mutual funds, provides a reasonable basis of our opinion.

LOGO

PricewaterhouseCoopers LLP

April 11, 2008

 

TIAA-CREF Life Separate Account VA-1   n   Statement of Additional Information   1


Statement of assets and liabilities

TIAA-CREF Life Separate Account VA-1  n  December 31, 2007

 

        Growth Equity
Sub-Account
     Growth & Income
Sub-Account
     International Equity
Sub-Account
     

ASSETS

                 

Investments, at cost

     $ 31,327,335      $ 50,267,294      $ 115,556,956     

Shares held in corresponding Funds

       2,260,225        2,345,870        5,128,806     

Investments, at value

       40,729,256        68,170,989        123,193,913   

Amounts due from TIAA

       6,428        22,278        16,160     

Total assets

     $ 40,735,684      $ 68,193,267      $ 123,210,073   
 

NET ASSETS

                 

Seed money

       88,664        141,805        153,360   

Accumulation fund

       39,577,668        66,017,949        121,329,562   

Annuity fund

       1,069,352        2,033,513        1,727,151     

Net assets

     $ 40,735,684      $ 68,193,267      $ 123,210,073   
 

 

2   Statement of Additional Information   n    TIAA-CREF Life Separate Account VA-1    See notes to financial statements


 

     Stock Index
Sub-Account
     Social Choice Equity
Sub-Account
     Large-Cap Value
Sub-Account
     Small-Cap Equity
Sub-Account
     Real Estate Securities
Sub-Account
     Bond
Sub-Account
     Money Market
Sub-Account
                               
    $ 144,629,594      $ 21,104,613      $ 49,733,691      $ 34,124,528      $ 54,826,374      $ 27,874,203      $ 97,972,437
      5,705,355        916,376        1,410,300        1,062,059        1,563,765        1,118,834        97,972,437
    180,859,745        24,852,109        44,142,399        28,856,153        41,439,707        27,467,377        97,972,438
      52,396        4,746        9,516        6,507        13,852              
  $ 180,912,141      $ 24,856,855      $ 44,151,915      $ 28,862,660      $ 41,453,559      $ 27,467,377      $ 97,972,438
 
                               
    163,615        136,985        218,668        215,924        234,285        11,572        11,320
    175,011,894        24,032,561        42,865,731        28,148,224        39,884,621        27,455,805        97,961,118
      5,736,632        687,309        1,067,516        498,512        1,334,653              
  $ 180,912,141      $ 24,856,855      $ 44,151,915      $ 28,862,660      $ 41,453,559      $ 27,467,377      $ 97,972,438
 

 

See notes to financial statements   TIAA-CREF Life Separate Account VA-1  n   Statement of Additional Information   3


Statement of operations

TIAA-CREF Life Separate Account VA-1  n  For the Year Ended December 31, 2007

 

        Growth Equity
Sub-Account
     Growth & Income
Sub-Account
     International Equity
Sub-Account
      

INVESTMENT INCOME

                

Income:

                

Reinvested dividends

     $ 273,994      $ 919,976      $ 23,305,865      

Total Income

       273,994        919,976        23,305,865      

Expenses—note 2:

                

Administrative expenses

       64,221        113,394        210,839    

Mortality and expense risk charges

       127,445        225,409        418,353      

Total expenses

       191,666        338,803        629,192      

Investment income—net

       82,328        581,173        22,676,673      

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS—Note 3

                

Net realized gain (loss) on investments

       2,413,505        1,544,015        6,039,618    

Net change in unrealized appreciation (depreciation) on investments

       3,489,697        6,866,292        (12,401,749 )    

Net realized and unrealized gain (loss) on investments

       5,903,202        8,410,307        (6,362,131 )    

Net increase in net assets resulting from operations

     $ 5,985,530      $ 8,991,480      $ 16,314,542    
 

 

4   Statement of Additional Information   n    TIAA-CREF Life Separate Account VA-1    See notes to financial statements


 

     Stock Index
Sub-Account
       Social Choice Equity
Sub-Account
       Large-Cap Value
Sub-Account
       Small-Cap Equity
Sub-Account
       Real Estate Securities
Sub-Account
       Bond
Sub-Account
       Money Market
Sub-Account
 
                               
                               
    $ 4,701,362        $ 871,574        $ 6,178,407        $ 3,025,450        $ 7,142,897        $ 1,298,197        $ 3,919,829  
      4,701,362          871,574          6,178,407          3,025,450          7,142,897          1,298,197          3,919,829  
                               
    364,380          50,879          93,872          67,153          120,125          44,082          155,488  
      725,120          100,748          185,723          132,990          237,403          86,182          303,584  
      1,089,500          151,627          279,595          200,143          357,528          130,264          459,072  
      3,611,862          719,947          5,898,812          2,825,307          6,785,369          1,167,933          3,460,757  
                               
    6,213,326          (1,140,918 )        1,190,524          (334,013 )        2,205,325          29,476          (19 )
      (1,987,545 )        1,284,557          (7,314,842 )        (4,409,026 )        (18,672,718 )        (88,060 )        19  
      4,225,781          143,639          (6,124,318 )        (4,743,039 )        (16,467,393 )        (58,584 )         
  $ 7,837,643        $ 863,586        $ (225,506 )      $ (1,917,732 )      $ (9,682,024 )      $ 1,109,349        $ 3,460,757  
   

 

See notes to financial statements   TIAA-CREF Life Separate Account VA-1  n   Statement of Additional Information   5


Statement of changes in net assets

TIAA-CREF Life Separate Account VA-1

 

       Growth Equity Sub-Account        Growth & Income Sub-Account      
        For the year ended
December 31, 2007
       For the year ended
December 31, 2006
       For the year ended
December 31, 2007
       For the year ended
December 31, 2006
      

FROM OPERATIONS

                     

Investment income—net

     $ 82,328        $ 49,462        $ 581,173        $ 437,373    

Net realized gain (loss) on investments

       2,413,505          (3,190 )        1,544,015          1,025,355    

Net change in unrealized appreciation (depreciation) on investments

       3,489,697          1,264,301          6,866,292          5,082,760      

Net increase in net assets resulting from operations

       5,985,530          1,310,573          8,991,480          6,545,488      

FROM CONTRACTOWNER TRANSACTIONS

                     

Premiums

       2,191,380          1,808,069          3,922,661          2,874,687    

Net contractowner transfers (to) from fixed account

       6,535,265