Exhibit 26(d)(vii)

Prudential Pruco Life Insurance Company

Phoenix, Arizona

A Stock Company subsidiary of

The Prudential Insurance Company of America

================================================================================

Insured JOHN DOE xxxxx xxx Policy Number

JUN 4, l986 Contract Date

Face Amount $50,000--

Premium Period LIFE

Agency R-NK 1

================================================================================

We will pay the beneficiary the proceeds of this contract promptly if we

receive due proof that the Insured died. We make this promise subject to

all the provisions of the contract.

The Death Benefit will be the insurance amount, plus the amount of any

extra benefit (unless the contract is in default or there is contract

debt). The Death Benefit may be fixed or variable depending on the payment

of premiums, the investment experience of the separate account and the

level of charges made. But the Insurance Amount will not be less than the

face amount. (We describe the insurance amount on page 14.)

The cash value may increase or decrease daily depending on the payment of

premiums, the separate account investment experience and the charges made.

There is no guaranteed minimum.

We specify a schedule of premiums. Additional unscheduled premiums may be

paid at your option subject to the limitations in the contract.

Please read this contract with care. A guide to its contents is on the last

page. A summary is on page 5. If there is ever a question about it, or if

there is a claim, just see one of our representatives or get in touch with

one of our offices.

Right to Cancel Contract.--You may return this contract to us within (1) 10

days after you get it, or (2) 45 days after Part 1 of the application was

signed, or (3) 10 days after we mail or deliver the Notice of Withdrawal

Right, whichever is latest. All you have to do is take the contract or mail

it to one of our offices or to the representative who sold it to you. It

will be canceled from the start and we will promptly give you the value of

your Contract Fund on the date you return the contract to us. We will also

give back any charges we made in accord with this contract.

Signed for Pruco Life Insurance Company

an Arizona Corporation

/s/ ISABELLA L. KIRCHNER /s/ DONALD G. SOUTHWELL

Secretary President

Modified Premium Variable Life Insurance Policy with variable insurance amount.

Insurance payable only upon death. Scheduled premiums payable throughout

Insured's lifetime. Provision for optional additional premiums. Benefit reflect

premium payments, investment results and charges. Guaranteed minimum death

benefit if scheduled premiums duly paid and no contract debtor or withdrawals.

Increase in face amount at attained age 21 If contract issued at age l4 or

lower. Non-participating.

VALB--86

ENDORSEMENTS

(Only we can endorse this contract.)

Page 2 (VALB--86)

CONTRACT DATA

INSURED'S SEX AND ISSUE AGE M-35

INSURED JOHN DOE XX XXX XXX POLICY NUMBER

FACE AMOUNT $50,000-- SEP 10, 1996 CONTRACT DATE

PREMIUM PERIOD LIFE

AGENCY R-NK 1

BENEFICIARY CLASS 1 MARY DOE, WIFE

CLASS 2 ROBERT DOE, SON

FIXED LOAN INTEREST RATE

LIST OF CONTRACT MINIMUMS

THE MINIMUM UNSCHEDULED PREMIUM IS $25.

THE MINIMUM INCREASE IN FACE AMOUNT IS $25,000.

THE MINIMUM DECREASE IN FACE AMOUNT IS $10,000.

THE MINIMUM FACE AMOUNT IS $50,000.

***** END OF LIST *****

LIST OF SUPPLEMENTARY BENEFITS

***** NONE *****

SUMMARY OF FACE AMOUNT

EFFECTIVE RATING CONTRACT CHANGE

AMOUNT DATE CLASS DATE

INITIAL $50,000-- SEP 10, 1986 NONSMOKER SEP 10, 2016

*****END OF SUMMARY *****

SCHEDULE OF PREMIUMS

PLANNED PAYMENT DATES OF SCHEDULED PREMIUMS OCCUR ON THE CONTRACT DATE AND AT

INTERVALS OF 12 MONTHS AFTER THAT DATE.

SCHEDULED PREMIUMS ARE $ 468.00 EACH

CHANGING ON SEP 10, 2016 TO $2903.50 EACH

***** END OF SCHEDULE *****

CONTRACT DATA CONTINUED ON NEXT PAGE

PAGE 3 (86)

CONTRACT DATA CONTINUED POLICY NO. XX XXX XXX

SCHEDULE OF EXPENSE CHARGES FROM PREMIUM PAYMENTS

FROM EACH PREMIUM PAID WE DEDUCT A PER-PAYMENT PROCESSING CHARGE OF UP TO $2.00.

FROM THE REMAINDER WE DEDUCT A CHARGE OF UP TO 7.5% WHICH IS USED TO PAY FOR

SALES CHARGES AND STATE PREMIUM TAXES. AFTER DEDUCTION OF THIS AMOUNT, THE

BALANCE IS THE INVESTED PREMIUM AMOUNT (SEE PAGE 14).

***** END OF SCHEDULE *****

SCHEDULE OF MONTHLY DEDUCTIONS FROM THE CONTRACT FUND

THE MONTHLY ADMINISTRATION CHARGE IS NO MORE THAN $3.50. THE MONTHLY CHARGE TO

GUARANTEE THE MINIMUM DEATH BENEFIT IS NO MORE THAN $.50.

***** END OF SCHEDULE *****

***** SCHEDULE ON OTHER CHARGES *****

THERE IS A FEE OF UP TO $15 FOR ANY PARTIAL WITHDRAWAL OR DECREASE IN FACE

AMOUNT.

***** END OF SCHEDULE *****

SCHEDULE OF MAXIMUM SURRENDER CHARGES

FOR FULL SURRENDER AT THE END OF THE CONTRACT YEAR INDICATED, THE MAXIMUM CHARGE

WE WILL DEDUCT FROM THE CONTRACT FUND IS SHOWN BELOW. FOR SURRENDER OTHER THAN

YEAR-END THE AMOUNT OF THE CHARGE WILL REFLECT THE NUMBER OF COMPLETED CONTRACT

MONTHS SINCE THE BEGINNING OF THE CONTRACT YEAR (SEE PAGE 17).

YEAR OF DEFERRED DEFERRED UNDERWRITING

SURRENDER SALES CHARGES AND ISSUE CHARGE TOTAL

--------- ------------- ---------------- -----

1 $217.00 $250.00 $467.00

2 $217.00 $250.00 $467.00

3 $217.00 $250.00 $467.00

4 $217.00 $250.00 $467.00

5 $217.00 $250.00 $467.00

6 $173.50 $200.00 $373.50

7 $130.00 $150.00 $280.00

8 $87.00 $100.00 $187.00

9 $43.50 $50.00 $93.50

10 $0.00 $0.00 $0.00

11 AND LATER ZERO ZERO ZERO

***** END OF SCHEDULE *****

CONTRACT DATA CONTINUED ON NEXT PAGE

PAGE 3A (86)

CONTRACT DATA CONTINUED POLICY NO. XX XXX XXX

LIST OF SUBACCOUNTS AND PORTFOLIOS

EACH SUBACCOUNT OF THE PRUCO LIFE VARIABLE APPRECIABLE ACCOUNT INVESTS IN A

SPECIFIC PORTFOLIO OF THE PRUCO LIFE SERIES FUND. WE SHOW BELOW THE SUBACCOUNTS

AND THE FUND PORTFOLIOS THEY INVEST IN.

FUND

SUBACCOUNT PORTFOLIO

- ---------- ---------

MONEY MARKET MONEY MARKET

BOND BOND

COMMON STOCK COMMON STOCK

AGGRESSIVELY MANAGED FLX AGGRESSIVELY MANAGED FLX

CONSERVATIVELY MANAGED FLX CONSERVATIVELY MANAGED FLX

HIGH YIELD BOND HIGH YIELD BOND

STOCK INDEX STOCK INDEX

HIGH DIVIDEND STOCK HIGH DIVIDEND STOCK

***** END OF LIST *****

LIST OF FIXED ACCOUNT OPTIONS

FIXED RATE OPTION

***** END OF LIST *****

SCHEDULE OF INITIAL ALLOCATION OF NET PREMIUMS

MONEY MARKET SUBACCOUNT 25%

CONSERVATIVELY MANAGED FLX SUBACCOUNT 50%

FIXED RATE OPTION 25%

***** END OF LIST *****

SERVICE OFFICE - PLEASE DIRECT ANY COMMUNICATIONS ABOUT THIS CONTRACT TO:

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

P.O. BOX XXXX, MINNEAPOLIS, MN XXXXX

PAGE 3B (86)

POLICY. NO. XX XXX XXX

TABULAR VALUES

WE EXPLAIN THIS TABLE UNDER CONTRACT FUND AND TABULAR VALUES. ACTUAL CONTRACT

FUND VALUES AND CASH VALUES MAY BE MORE OR LESS THAN AMOUNT SHOWN (SEE CONTRACT

FUND AND CASH VALUE OPTION.)

END OF TABULAR TABULAR

CONTRACT CONTRACT CASH

YEAR FUND VALUE

---- ---- -----

1 288.00 0.00

2 581.50 114.50

3 878.00 411.00

4 1178.00 711.00

5 1479.60 1012.50

6 1782.00 1408.50

7 2084.00 1804.00

8 2385.00 2198.20

9 2683.00 2590.10

10 2979.00 2979.00

11 3270.50 3270.50

12 3556.50 3556.50

13 3835.50 3835.50

14 4106.50 4106.50

15 4367.50 4367.50

16 4615.00 4615.00

17 4845.00 4845.00

18 5053.00 5053.00

19 5234.50 5234.50

20 5384.00 5384.00

ATTAINED

AGE

---

60 5490.50 5490.50

62 5105.00 5105.00

85 3750.00 3750.00

TABULAR CASH VALUES ARE THE TABULAR CONTRACT FUND VALUES MINUS A

SURRENDER CHARGE. WE SHOW ON A PRIOR CONTRACT PAGE WHAT THE

MAXIMUM SURRENDER CHARGE WILL BE.

THE TABULAR CONTRACT FUND VALUES AND TABULAR CASH VALUES SHOWN ARE THE AMOUNTS

WHICH WILL APPLY IF ALL SCHEDULED PREMIUMS HAVE BEEN PAID ON THEIR DUE DATES,

THERE HAVE BEEN NO UNSCHEDULED PREMIUMS PAID, THERE IS NOT CONTRACT DEBT, THE

SUBACCOUNTS AND THE FIXED ACCOUNT OPTIONS YOU HAVE CHOSEN EARN EXACTLY THE

ASSUMED RATE OF RETURN AND WE HAVE DEDUCTED THE MAXIMUM MORTALITY CHARGES.

Page 4(86)

CONTRACT SUMMARY

We offer this summary to help you understand this contract. We do not intend

that it change any of the provisions of the contract.

This is a contract of life insurance. Premiums are to be paid throughout the

Insured's lifetime. We specify a schedule of premiums that will keep the

contract in force. Additional premiums may be paid at your option, subject to

limits in the contract. The death benefit and the cash value will vary with the

payment of premiums, the investment performance of the Separate Account

subaccounts that you select, the interest credited to any portion of the

contract fund not allocated to the subaccounts, and the mortality and expense

charges deducted.

The face amount shown on page 3 is the guaranteed death benefit. The death

benefit will not decrease below the guaranteed death benefit if the contract is

not in default past its days of grace and there is no contract debt. (We

describe on page 9 the way the contract can go into default.) Subject to certain

requirements, you may increase or decrease the face amount. If the contract

remains in default past its days of grace the contract may end or it may stay

in force with reduced benefits. If either occurs, you may be able to reinstate

its full benefits.

Proceeds is a word we use to mean the amount we would pay if we were to settle

the contract in one sum. To compute the proceeds that may arise from the

Insured's death, we start with a basic amount. We may adjust that amount if

there is a loan or if the contract is in default. The table on page 23 tells

what the basic amount is. The amount depends on how the contract is in force.

The table will refer you to the parts of the contract that tell you how we

adjust the basic amount. If you surrender the contract, the proceeds will be the

net cash value. We describe it under Cash Value Option on page 17.

Proceeds often are not taken in one sum. For instance, on surrender, you may be

able to put proceeds under a settlement option to provide retirement income or

for some other purpose. Also, for all or part of the proceeds that arise from

the Insured's death, you may be able to choose a manner of payment for the

beneficiary. If an option has not been chosen, the beneficiary may be able to

choose one. We will pay interest under the Interest Payment Option from the date

of death on any proceeds to which no other manner of payment applies. This will

be automatic as we state on page 21. There is no need to ask for it

You and we may agree on a change in the ownership of this contract. Also, unless

we endorse it to say otherwise, the contract gives you these rights, subject to

certain limitations and requirements:

o You may change the beneficiary under it.

o You may borrow on it up to its loan value.

o You may surrender it for its net cash value.

o You may change the allocation of future net premiums among the subaccounts

and the fixed account.

o You may transfer amounts among subaccounts and the fixed account.

o You may change the face amount.

o You may withdraw a portion of the contract's value.

The contract, as issued, may or may not have extra benefits that we call

Supplementary Benefits. If it does, we list them under Supplementary Benefits on

the Contract Data pages and describe them after page 24. The contract may or may

not have other extra benefits. If it does, we add them by rider. Any extra

benefit ends as soon as the contract is in default past its days of grace,

unless the form that describes it states otherwise.

(Contract Summary Continued on Page 23)

Page 5 (VALB--86)

GENERAL PROVISIONS

Definitions.--We define here some of the words and phrases used all through this

contract. We explain others, not defined here, in other parts of the text.

We, Our, Us and Company -- Pruco Life Insurance Company, an Arizona Corporation.

You and Your.--The owner of the Contract.

Insured.--The person named as the Insured on the first page. He or she need not

be the owner.

Example: Suppose we issue a contract on the life of your spouse. You applied for

it and named no one else as owner. Your spouse is the Insured and you are the

owner.

SEC.--The Securities and Exchange Commission.

PLVAA.-- The Pruco Life Variable Appreciable Account.

Issue Date.--The contract date.

Monthly Date.--The contract date and the same day as the contract date in each

later month.

Example: If the contract date is March 9, 1986, the Monthly Dates are each March

9, April 9, May 9 and so on.

Anniversary or Contract Anniversary.--The same day and month as the contract

date in each later year.

Example: If the contract date is March 9, 1986, the first anniversary is March

9, 1987. The second is March 9, 1988, and so on.

Contract Year.--A year that starts on the contract date or on an anniversary.

Example: If the contract date is March 9, 1986, the first contract year starts

then and ends on March 8, 1987. The second starts on March 9, 1987 and ends on

March 8, 1988, and so on.

Contract Month.--A month that starts on a Monthly Date.

Example: If March 9, 1986 is a Monthly Date, a contract month starts then and

ends on April 8, 1986. The next contract month starts on April 9, 1986 and ends

on May 8, 1986, and so on.

Attained Age.--The Insured's attained age at any time is the issue age plus the

length of time since the contract date. You will find the issue age near the top

of page 3.

The Contract.--This policy, and the attached copy of the initial application

together with copies of any subsequent applications to change the policy, and

any additional Contract Data pages added to this policy, form the whole

contract. We assume that all statements in the application were made to the best

of the knowledge and belief of the person(s) who made them; in the absence of

fraud they are deemed to be representations and not warranties. We relied on

those statements when we issued the contract. We will not use any statement,

unless made in the application, to try to void the contract or to deny a claim.

Contract Modifications.--Only a Company officer with the rank or title of Vice

President or above may agree to modify this contract, and then only in writing.

Non-participating.--This contract will not share in our profits or surplus

earnings. We will pay no dividends on it.

Service Office.--This is the office that will service this contract. Its mailing

address is the one we show on the Contract Data pages, unless we notify you of

another one.

Ownership and Control.--Unless we endorse this contract to say otherwise: (1)

the owner of the contract is the Insured; and (2) while the Insured is living

the owner alone is entitled to (a) any contract benefit and value, and (b) the

exercise of any right and privilege granted by the contract or by us.

Suicide Exclusion.--If the Insured, whether sane or insane, dies by suicide

within two years from the issue date, we will pay no more under this contract

than the sum of the premiums paid, minus any contract debt and minus any partial

withdrawals.

Also, for any increase in the face amount, if the Insured, whether sane or

insane, dies by suicide within two years from the effective date of the

increase, we will pay, as to the increase in amount, no more than the sum of the

scheduled premiums that were due for the increase.

Currency.--Any money we pay, or that is paid to us, must be in United States

currency. Any amount we owe will be payable at our Service Office.

Misstatement of Age or Sex.--If the Insured's stated age or sex or both are not

correct, we will adjust each benefit and any amount to be paid to reflect the

correct age and sex. Any death benefit will be based on what the most recent

charge for mortality would have provided at the correct age and sex. Where

required, we have given the insurance regulator a detailed statement of how we

will make these changes.

The Schedule of Premiums may show that premiums change or stop on a certain

date. We may have used that date because the Insured would attain a certain age

on that date. If we find that the issue age was wrong, we will correct that

date.

(Continued on Next Page)

Page 6 (VALB--86)

GENERAL PROVISIONS (Continued)

Incontestability.--Except as we state in the next sentence, we will not contest

this contract after it has been in force during the Insured's lifetime for two

years from the issue date. There are two exceptions: (1) non-payment of enough

premium to provide the required charges; and (2) any change in the contract that

requires our approval and that would increase our liability. For any such

change, we will not contest the change after it has been in effect during the

Insured's lifetime for two years from the date it takes effect.

Assignment.--We will not be deemed to know of an assignment unless we receive

it, or a copy of it, at our Service Office. We are not obliged to see that an

assignment is valid or sufficient.

Annual Report.--Each year we will send you a report. It will show: (1) the

current death benefit; (2) the investment amount; (3) the amount of the

investment amount in each subaccount; (4) the amount in the fixed account; (5)

the net cash value; (6) premiums paid, interest credited and monthly charges

deducted since the last report; (7) any partial withdrawals since the last

report; and (8) any contract debt and the interest on the debt for the prior

year. The report will also include any other data that may be currently required

where this contract is delivered. No report will be sent if this contract is

being continued under extended term insurance.

You may ask for a similar report at some other time during the year. Or you may

request from time to time a report projecting results under your contract on the

basis of premium payment assumptions and assumed investment results. We have the

right to make a reasonable charge for reports such as these that you ask for,

and to limit the scope and frequency of such reports.

Increase in Face Amount at Age 21 for Contracts Issued at Age 14 or Lower.--If

this contract was issued at age 14 or lower, it shows on page 3 an increase in

face amount at attained age 21 which applies if the contract is not then in

default beyond its days of grace. Any references in the contract to face amount

or death benefit which apply at or after attained age 21 will be based upon the

increased face amount, unless otherwise stated.

Payment of Death Claim.--If we settle this contract in one sum as a death claim,

we will usually pay the proceeds within 7 days after we receive at our Service

Office proof of death and any other information we need to pay the claim. But we

have the right to defer paying portion of the proceeds greater than the minimum

guaranteed death benefit that is to come from the subaccounts if (1) the New

York Stock Exchange is closed; or (2) the SEC requires that trading be

restricted or declares an emergency.

BASIS OF COMPUTATION

Mortality Tables Described.--Except as we state in the next paragraph, (1) we

base all net premiums and net values to which we refer in this contract on the

Insured's issue age and sex and on the length of time since the contract date;

(2) we use the Commissioners 1980 Standard Ordinary Mortality Table; and (3) we

use continuous functions based on age last birthday.

For extended insurance, we base net premiums and net values on the Commissioners

1980 Extended Term Insurance Table.

Interest Rate.--For all net premiums and net values to which we refer in this

contract we use an effective rate of 4% a year.

Exclusions.--When we compute net values we exclude the value of any

Supplementary Benefits and any other extra benefits added by rider to this

contract.

Values After 20 Contract Years.--Tabular values not shown on page 4 will be the

net level premium reserves, taking into account modified premiums. To compute

them, we will use the mortality tables and interest rate we describe above.

There will be the same exclusions.

Minimum Legal Values.--The cash, loan and other values in this contract are at

least as large as those set by law where it is delivered. Where required, we

have given the insurance regulator a detailed statement of how we compute values

and benefits.

Pruco Life Insurance Company,

By /s/ Isabella L. Kirchner

Secretary

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PLI 207-86

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Page 7 (VALB--86)

PREMIUM PAYMENT AND REINSTATEMENT

Payment of Premiums.--Premiums may be paid at our Service Office or to any of

our authorized representatives. If we are asked to do so, we will give a signed

receipt.

Premium payments will in most cases be credited as of the date of receipt, to

both the premium account and the contract fund. (See Contract Fund, page 14 and

Premium Account, page 9.) Premium credits to the premium account are the full

premium paid with no deductions. Premium credits to the contract fund are the

invested premium amounts (see page 14). But in the following cases, to the

extent stated, premium payments will be credited as of a date other than the

date of receipt:

1. The first scheduled premium is due on the Contract Date. But if the first

premium payment is received after the Contract Date, the scheduled portion will

be credited to the contract fund and the premium account as of the Contract

Date. And any portion of that first premium payment in excess of the first

scheduled premium will be credited as of the date of receipt. If the first

premium is received before the Contract Date, the entire payment will be

credited as of the Contract Date.

2. If a premium payment is received during the 61 day period after the day when

a scheduled premium was due and had not yet been paid, here is what we will do.

We will determine whether the premium account, (see page 9), just before receipt

of that payment was a negative amount. If not--that is, if the premium account

was zero or higher--the premium payment will be credited as of the date of

receipt. But if the premium account was negative by no more than the scheduled

premium on the due date, that portion of the premium payment required to bring

the premium account up to zero will be credited to the premium account as of the

due date; any remaining portion of the premium payment will be credited to the

premium account as of the date of receipt. If the premium account is negative by

more than the scheduled premium then due, the premium payment will be credited

as of the date of receipt, except in the situation described in 3 below.

3. On each Monthly Date we will determine if the contract is in default. (See

Default on page 9.) We will notify you of the minimum payment amount needed to

bring the contract out of default. If one or more premium payments are made

during the days of grace after that Monthly Date (see Grace Period on page 9),

we will credit to the contract fund and the premium account, as of the

applicable Monthly Dates, such parts of the payments as are needed to end the

default status; any remaining part of these premium payments will be credited to

the contract fund and premium account as of the date of receipt.

Scheduled Premiums.--We show the amount and frequency of the scheduled premiums

in the Schedule of Premiums. The first scheduled premium is due on the contract

date. There is no insurance under this contract unless an amount at least equal

to the first scheduled premium is paid.

The scheduled premium shown is the minimum required, at the frequency chosen, to

continue the contract in full force if you pay all scheduled premiums when due,

you make no withdrawals, any interest credited and investment returns are at the

assumed rate, mortality and expense charges are at the maximum rate and any

contract debt does not exceed the cash value. An increase in the face amount

increases the scheduled premium.

If you wish to pay, on a regular basis, higher premiums than the amount of the

scheduled premiums, we will bill you for the higher amount you choose. Or if you

wish, you may from time to time make a smaller premium payment than the amount

of the scheduled premium, subject to the minimum premium amount shown on page 3.

If scheduled premiums that are due are not paid, or if smaller payments are

made, the contract may then or at some future time go into default. Payment of

less than the scheduled premium increases the risk that the contract will end if

investment results are not favorable. The conditions under which default will

exist are described below.

Unscheduled Premiums.--Except as we state in the next paragraph, unscheduled

premiums may be paid at any time during the Insured's lifetime, as long as the

contract is not in default beyond its days of grace. We show on page 3 the

minimum premium we will accept. We have the right to limit unscheduled premiums

to a total of $10,000 in any contract year.

We have the right to refuse any payment that increases the insurance amount by

more than it increases the contract fund.

Premium Change on Contract Change Date(s).--We show the Contract Change Date(s)

in the Contract Data pages. We also show in the Schedule of Premiums on page 3

that the amount of each scheduled premium will change on each Contract Change

Date and what the new premium will be. However, when a Contract Change Date

arrives we will recompute a new premium amount to be used in calculating the

premium account. The new premium that we recompute will be no greater than the

new premium for that date which we show on page 3. In addition, if the premium

account is less than zero, we will set the premium account to zero.

(Continued on Next Page)

Page 8 (VALB--86)

PREMIUM PAYMENT AND REINSTATEMENT (Continued)

The Schedule of Premiums may also show that the premium changes at other times.

This may occur, for example, with a contract issued with extra benefits or in an

extra rating class if, in either case, this calls for a higher or extra premium

for a limited period of time.

Allocations.--You may allocate all or a part of your invested premium amount to

one or more of the subaccounts and fixed account option(s) listed in the

Contract Data pages. You may choose to allocate nothing to a particular

subaccount or fixed account option. But any allocation you make must be at least

10%; you may not choose a fractional percent.

Example: You may choose a percentage of 0, or 100, or 10, 11, 12, and so on, up

to 90. But you may not choose a percentage of 1 through 9, or 91 through 99, or

any percentage that is not a whole number. The total for all subaccounts must be

100%.

The initial allocation of invested premium amounts (see page 14) is shown in the

Contract Data pages. You may change the allocation for future invested premium

amounts at any time if the contract is not in default. To do so, you must notify

us in writing in a form that meets our needs. The change will take effect on the

date we receive your notice at our Service Office.

A premium might be paid when the contract fund is less than zero. In that case,

when we receive that premium, we first use as much of the invested premium

amount as we need to eliminate the deficit in the contract fund. We will then

allocate any remainder of the invested premium amount in accord with your most

recent request. (We describe contract fund on page 14.)

Default.--Unless the contract is already in the grace period, on each Monthly

Date, after we deduct any charges from the contract fund (which we describe on

page 14) and add any credits to it, we will determine whether the contract is in

default. To do so, we will compute the amount which will accrue to the tabular

contract fund on the next Monthly Date if, during the current contract month:

(1) any interest credited and investment returns are at the assumed rate (see

Assumed Rate of Return on page 13); (2) we make the other charges and credits we

have set, including interest on contract debt; and (3) we receive no premiums or

loan repayments make no loans nor grant any partial withdrawals. We will

compare this amount to the contract fund. If this amount is not more than the

contract fund the contract is not in default. If this amount is more than the

Contract Fund the difference is the fund deficit. In this case the contract is

in default if the premium account, which we define below, is also less than

zero. See Excess Contract Debt on page 19 for another way the contract may end.

Grace Period.--The days of grace begin on any monthly date (other than the

contract date) on which the contract goes into default. We grant 61 days from

the date we mail you a notice of default to make the required payments which we

define below. During the days of grace we will continue to accept premiums and

make the charges we have set. If the monthly date was a scheduled premium due

date, when we receive a premium payment during the days of grace we will first

determine whether it satisfies case 2 under Payment of Premiums above. If it

does, the default will end. If it does not, or if the monthly date when the

contract went into default was not a scheduled premium due date, here is what we

will do:

Within 30 days after any default we will send you a notice that your contract is

in default. We will indicate the minimum payment required to keep your contract

in force and the length of the grace period for payment of such amount.

If at any time during the days of grace, we have received payments that in total

are at least equal to the lesser of (a) the sum of the fund deficit on the date

of default and any additional fund deficits on any subsequent Monthly Dates

since the date of default, and (b) the sum of the amount by which the premium

account is negative on the date of default and any scheduled premiums due since

the date of default, the default will end.

If the contract is still in default when the days of grace are over, it will end

and have no value, except as we state under Contract Value Options (which we

describe on page 16).

Premium Account.--On the contract date, the premium account is equal to the

premium credited on that date minus the scheduled premium then due. On any other

day, the premium account is equal to:

1. what it was on the prior day; plus

2. if the premium account was greater than zero on the prior day, interest on

the excess at 4% a year; minus

3. if the premium account was less than zero on the prior day, interest on the

amount of the deficit at 4% a year; plus

4. any premium credited on that day; minus

5. any scheduled premium due on that day; minus

6. any partial withdrawals on that day.

(Continued on Next Page)

Page 9 (VALB--86)

PREMIUM PAYMENT AND REINSTATEMENT (Continued)

The contract might be in default, as described above. If so, the premium account

is less than zero. If a premium payment is received on any day during the days

of grace while the contract is in default and the premium account is negative by

no more than one scheduled premium, that payment, to the extent that it is

required to bring the premium account up to zero, will, as we describe under

Payment of Premiums above, be credited to the premium account as of the Monthly

Date when the scheduled premium was due, whether that date is the date of

default or a subsequent Monthly Date. Any remaining portion of the premium

payment will be credited as of the actual date of receipt. In this case the

premium account for all days from the monthly date to the actual date of receipt

will be recalculated.

Reinstatement.--If this contract is still in default after the last day of

grace, you may reinstate it, if all these conditions are met:

1. No more than three years must have elapsed since the date of default.

2. You must not have surrendered the contract for its net cash value.

3. You must give us any facts we need to satisfy us that the insured is

insurable for the contract.

4. We must be paid a premium at least equal to the amount required to bring

the premium account up to zero on the first Monthly Date on which a

scheduled premium is due after the date of reinstatement. From this amount

we will deduct the expense charges from premium payments described in the

Contract Data pages, plus any charges with 4% interest for any extra

benefits, plus any other charges with 4% interest. The contract fund will

be equal to the remainder, plus the cash value of the contract immediately

before reinstatement, plus a refund of that part of any surrender charge

deducted at the time of default which would be charged if the contract were

surrendered immediately after reinstatement.

If we approve, you may be able to reinstate the contract for a premium less

than that described above. We will deduct the same charges and adjust the

contract fund in the same manner. If you do so, the premium account will be

less than zero. You may need to pay more than the scheduled premiums to

guarantee that the contract will not go into default at some future time.

5. If before reinstatement the contract is in force as reduced paid-up

insurance (see page 16), any contract debt under reduced paid-up insurance

must be repaid with interest or carried over to the reinstated contract.

If we approve the reinstatement, these statements apply. The date of

reinstatement will be the date of your request or the date the required

premium is paid, if later. And we will start to make daily and monthly

charges and credits again as of the date of reinstatement.

CHANGING THE FACE AMOUNT AND PARTIAL WITHDRAWALS

Face Amount.--The face amount is shown on page 3. It will change if you increase

or decrease it.

Increase in Face Amount.--After the first contract year, you may be able to

increase the face amount once each contract year. Your right to do so is subject

to all these conditions and the paragraph that follows:

1. You must ask for the increase in writing and in a form that meets our

needs; if you are not the Insured and the Insured is age 8 or over, he or

she must sign the form too.

2. The amount of the increase must be at least equal to the minimum increase

in face amount, which we show on page 3.

3. You must give us any facts we need to satisfy us that the Insured is

insurable for the amount of the increase.

4. If we ask you to do so, you must send us the contract to be endorsed.

5. The contract must not be in default.

6. We must not have changed the basis on which benefits and charges are

calculated under newly issued contracts since the Issue Date.

7. You must make any required payment.

8. The insured must be eligible for the same rating class and benefits as

shown on page 3.

9. We must not be waiving premiums in accord with any Waiver of Premium

benefit that may be included in the contract.

An increase will take effect only if we approve your request for it at our

Service Office. If the increase is approved we will recompute the contract's

scheduled premiums, maximum surrender charges, tabular values, monthly

deductions and expense charges. We will send you new Contract Data pages showing

the amount and effective date of the increase and the recomputed values. If the

insured is not living on the effective date, the increase will not take effect.

(Continued on Next Page)

Page 10 (VALB--86)

CHANGING THE FACE AMOUNT AND PARTIAL WITHDRAWALS (Continued)

Decrease in Face Amount.--After the first contract year, you may be able to

decrease the face amount. Your right to do so is subject to all these conditions

and the paragraphs that follow:

1. You must ask for the decrease in writing and in a form that meets our

needs.

2. The amount of the decrease must be at least equal to the minimum decrease

in face amount, which we show on page 3.

3. The face amount after the decrease must be at least equal to the minimum

face amount, which we show on page 3.

4. It we ask you to do so, you must send us the contract to be endorsed.

A decrease will take effect only if we approve your request for it at our

Service Office. If the decrease is approved, we will recompute the contract's

scheduled premiums, maximum surrender charges, tabular values, monthly

deductions and expense charges. A decrease in face amount may also effect the

amount of any extra benefits this contract might have. We will send you new

Contract Data pages showing the amount and effective date of the decrease and

the recomputed values. If the Insured is not living on the effective date, the

decrease will not take effect.

We may deduct an administrative fee of up to $15.00, and a proportionate part of

any then applicable surrender.

Partial Withdrawals.--After the first contract year, you may be able to make

partial withdrawals from the contract. Your right to do so is subject to all

these conditions and the paragraphs that follow:

1. You must ask for the partial withdrawal in writing and in a form that meets

our needs.

2. The amount withdrawn, plus the net cash value after withdrawal, may not be

more than the net cash value before withdrawal.

3. The cash value after withdrawal must not be less than the tabular cash

value.

4. The amount you withdraw must be at least $500.

5. You may make up to four partial withdrawals in any contract year.

6. If we ask you to do so, you must send us the contract to be endorsed.

We may deduct an administrative fee of up to $15.00.

We will usually pay any partial withdrawal within seven days after we receive

your request and, if we request it, the contract at our Service Office. But we

have the right to deter paying the portion of the proceeds that is to come from

the portion of the contract fund in the PLVAA if (1) the New York Stock Exchange

is closed; or (2) the SEC requires that trading be restricted or declares an

emergency. We have the right to postpone paying you the remainder of the

proceeds for up to six months. If we do so for more than thirty days, we will

pay interest at the rate of 3% a year.

An amount withdrawn may not be repaid, except as an unscheduled premium subject

to charges.

We will tell you how much you may withdraw if you ask us.

Page 11 (VALB--86)

SEPARATE ACCOUNT

The Separate Account.--The words separate account, where we use them in this

contract without qualification, mean the Pruco Life Variable Appreciable Account

(PLVAA) and any other separate account that we establish. PLVAA is a unit

investment trust registered with the SEC under the Investment Company Act of

1940. We established PLVAA to support variable life insurance contracts. We own

the assets of this separate account; we keep them separate from the assets of

our general account.

Subaccounts.--A separate account may have several subaccounts. We list the

subaccounts in the Contract Data pages. You determine, using percentages, how

invested premium amounts will be allocated among the subaccounts. We may

establish additional subaccounts.

The Fund.--The word fund, where we use it in this contract without

qualification, means the fund we identify in the Contract Data pages. The fund

is registered with the SEC under the Investment Company Act of 1940 as an

open-end diversified management investment company. The fund has several

portfolios; there is a portfolio that corresponds to each of the subaccounts of

PLVAA. We list these portfolios in the Contract Data pages.

Separate Account Investments.--We use the assets of PLVAA to buy shares in the

fund. Each subaccount of PLVAA is invested in a specific portfolio. Income and

realized and unrealized gains and losses from assets in each of these

subaccounts are credited to, or charged against, that subaccount. This is

without regard to income, gains, or losses in our other investment accounts.

We will determine the value of the assets in PLVAA at the end of each business

day. When we use the term business day, we mean a day when the New York Stock

Exchange is open for trading. We might need to know the value of an asset on a

day that is not a business day or on which trading in that asset does not take

place. In this case, we will use the value of that asset as of the end of the

last prior business day on which trading took place.

Example: It we need to know the value of an asset on a Sunday, we will normally

use the value of the asset as of the end of business on Friday.

We will always keep assets in the separate account with a total value at least

equal to the amount of the investment amounts under contracts like this one. To

the extent those assets do not exceed this amount, we use them only to support

those contracts; we do not use those assets to support any other business we

conduct. We may use any excess over this amount in any way we choose.

If we create additional separate accounts, we may invest the assets in them in a

different way. But we will do so only with the consent of the SEC and, where

required, of the insurance regulator where this contract is delivered.

Change in Investment Policy.--A portfolio of the fund might make a material

change in its investment policy. In that case, we will send you a notice of the

change. Within 60 days after you receive the notice, or within 60 days after the

effective date of the change, if later, you may transfer to the Fixed Account

any amounts in the subaccount investing in that portfolio.

Change of Fund.--A portfolio might, in our judgment, become unsuitable for

investment by a subaccount. This might happen because of a change in investment

policy, or a change in the laws or regulations, or because the shares are no

longer available for investment, or for some other reason. If that occurs, we

have the right to substitute another portfolio of the fund, or to invest in a

fund other than the one we show in the Contract Data pages. But we would first

seek the consent of the SEC and, where required, the insurance regulator where

this contract is delivered.

FIXED ACCOUNT

The Fixed Account.--If you choose, you may allocate all or part of your invested

premium amount to the fixed account. The fixed account is funded by the general

account of Pruco Life. The fixed account is credited with interest as described

under Guaranteed Interest and Excess Interest on page 14.

Fixed Account Options.--We may have more than one fixed account option. We list

the fixed account option(s) in the Contract Data pages.

Page 12 (VALB--86)

TRANSFERS

Transfers Among Subaccounts and into the Fixed Account.--You may transfer

amounts among subaccounts of PLVAA and into the Fixed Account as often as four

times in a contract year it the contract is not in default or if the contract is

being continued under the reduced paid up option. In addition, at any time

within the first two contract years or within two years of the effective date

of any increase, the entire amount in all subaccounts may be transferred to the

fixed account. If we establish new separate accounts, transfers into or out of

these separate accounts will be allowed only with our consent. To make a

transfer, you must notify us in writing in a form that meets our needs. The

transfer will take effect on the date we receive your notice at our Service

Office.

Transfers Among Fixed Account Options and into the Subaccounts.--You may

transfer amounts among the available Fixed Account Options and into the

subaccounts only with our consent.

INVESTMENT AMOUNT AND ASSUMED RATE OF RETURN

Investment Amount.--The investment amount for this contract is an amount we use

to compute the investment return. The investment amount is allocated among the

subaccounts. The amount of the investment amount and its allocation to

subaccounts depend on (1) how you choose to allocate net premiums; (2) whether

or not you transfer amounts among subaccounts and the fixed account; (3) the

investment performance of the subaccounts to which amounts are allocated or

transferred; (4) the deductions we make from the contract fund; (5) the amount

and timing of premium payments you make; (6) whether or not you take any loan;

and (7) whether or not you make any partial withdrawals or change the face

amount. The investment amount exists only if the contract is not in default past

the days of grace or if it is being continued as reduced paid-up insurance.

The investment amount at any time is equal to the contract fund, minus the

amount of any contract loan and interest accrued on the loan since the last

transaction date, minus the amount in the Fixed Account.

Assumed Rate of Return.--The assumed rate of return is an effective rate of 4% a

year. This is the same as .01074598% a day compounded daily.

Page 13 (VALB--86)

INSURANCE AMOUNT

The insurance amount on any date is equal to the greater of (1) the face amount,

which we show on the page 3, plus any excess of the contract fund over the

tabular contract fund, and (2) the contract fund divided by the net single

premium per $1 at the insured's attained age on that date.

CONTRACT FUND

Contract Fund Defined.--On the contract date the contract fund is equal to the

invested premium amounts credited (see below), minus any of the charges

described in items (g) through (m) below which may have been due on that date.

On any day after that the contract fund is equal to what it was on the previous

day, plus any invested premium amounts credited, plus these items:

(a) any increase due to investment results in the value of the subaccounts to

which that portion of the contract fund that is in the investment amount

is allocated;

(b) guaranteed interest at an effective rate of 4% a year on that portion of

the contract fund that is not in the investment amount; and

(c) any excess interest on that portion of the contract fund that is not in

the investment amount;

and minus these items:

(d) any decrease due to investment results in the value of the subaccounts to

which that portion of the contract fund that is in the investment amount

is allocated;

(e) a charge against the investment amount at a rate of not more than

.00163894% a day (.60% a year) for mortality and expense risks that we

assume;

(f) any amount charged against the investment amount for Federal or State

income taxes;

(g) a charge to guarantee the minimum death benefit;

(h) a charge for the cost of expected mortality;

(i) any charges for extra rating class;

(j) any charges for extra benefits;

(k) any charge for administration;

(l) any partial withdrawals; and

(m) any surrender charges and administrative charges that may result from a

partial withdrawal or a decrease in face amount.

We describe under Reinstatement on page 10 what the contract fund will be equal

to on any reinstatement date.

There is no contract fund for a contract in force under extended insurance.

Invested Premium Amount.--This is the portion of each premium paid that we will

add to the contract fund. It is equal to the premium paid minus the expense

charges described in the Contract Data pages under Schedule of Expense Charges

from Premium Payments.

Guaranteed Interest.--We will credit interest to the contract fund each day on

any portion of the contract fund not in the investment amount. We will credit

.01074598% a day, which is equivalent to an effective rate of 4% a year.

Excess Interest.--We may credit interest in addition to the guaranteed interest

on that portion of the contract fund not in the investment amount. The rate of

any excess interest will be determined from time to time and will continue

thereafter until a new rate is determined. We may use different rates of excess

interest for different portions of the contract fund not in the investment

amount. We may from time to time guarantee rates of excess interest on some

portions of the contract fund.

Cost of Expected Mortality.--On each Monthly Date, we will deduct a charge for

the cost of expected mortality. The amount deducted is computed as the annual

mortality rate multiplied by the coverage amount. The coverage amount is the

difference between the adjusted death benefit and the adjusted contract fund. If

the insurance amount equals the face amount plus any excess of the contract fund

over the tabular contract fund, the adjusted death benefit is equal to the face

amount multiplied by the Factor for Adjusting the Insurance Amount (See Table of

Adjustment Factors), and the adjusted contract fund is equal to the tabular

contract fund at the end of the month less any excess of the tabular contract

fund at the beginning of the month over the actual contract fund after deduction

of any charges due on the Monthly Date, all multiplied by the Factor for

Adjusting the Contract Fund. If the insurance amount exceeds the face amount

plus any excess of the contract fund over the tabular contract fund, the

adjusted death benefit is equal to the insurance amount multiplied by the Factor

for Adjusting the Insurance Amount, and the adjusted contract fund is equal to

the net single premium at the end of the month for the insurance amount on the

Monthly Date, all multiplied by the Factor for Adjusting the Contract Fund. The

adjustment factors depend on the month as shown in the table that follows.

(Continued on Next Page)

Page 14 (VALB--86)

CONTRACT FUND (Continued)

We will not charge more than the maximum guaranteed rates, which are based on

the Insured's sex and attained age and the mortality table described in the

Basis of Computation. We may charge less. At least once every five years, but

not more often than once a year, we will consider the need to change the rates.

We will change them only if we do so for all contracts like this one dated in

the same year as this one.

Charge for Extra Rating Class.--If there is an extra charge because of the

rating class of the Insured, we will deduct it from the contract fund at the

beginning of each contract month. Any charge is included in the amount shown in

the Contract Data pages under Schedule of Monthly Deductions from the Contract

Fund.

Charge for Extra Benefits.--If the contract has extra benefits, we will deduct

the charges for such benefits from the contract fund at the beginning of each

contract month. Charges for any such extra benefits are included in the amount

shown in the Contract Data pages under Schedule of Monthly Deductions from

Contract Fund.

Charges For Administration and Minimum Death Benefit Guarantees.--On each

monthly date, we will deduct a charge for administration. We will also deduct a

charge for guaranteeing the minimum death benefit regardless of the investment

performance of the separate account. We show the amount of these charges in the

Contract Data pages under Schedule of Monthly Deductions from the Contract Fund.

- --------------------------------------------------------------------------------

TABLE OF ADJUSTMENT FACTORS

- --------------------------------------------------------------------------------

Factor for Adjusting Factor for Adjusting

Month the Insurance Amount the Contract Fund

February .076597042 .076481870

A month with 30 days .082059446 .081927252

A month with 31 days .084790207 .084649064

- --------------------------------------------------------------------------------

Page 15 (VALB-86)

CONTRACT VALUE OPTIONS

Benefit After the Grace Period.--If the contract is in default beyond its days

of grace, we will use any net cash value (which we describe under Cash Value

Option) to keep the contract in force as one of two kinds of insurance. One kind

is extended insurance. The second kind is reduced paid-up insurance. We describe

each below. You will find under Automatic Benefit which kind it will be. Any

extra benefit(s) will end as soon as the contract is in default past its days of

grace, unless the form that describes the extra benefit states otherwise.

Extended Insurance.--This will be term insurance of a fixed amount on the

Insured's life. We will pay the amount of term insurance if the Insured dies in

the term we describe below. Before the end of the term there will be cash values

but no loan value.

The amount of term insurance will be the death benefit on the day of default,

minus any part of that death benefit which was provided by extra benefits. The

term is a period of time that will start on the day the contract went into

default. The length of the term will be what is provided when we use the net

cash value at the net single premium rate. This rate depends on the Insured's

issue age and sex and on the length of time since the contract date.

There may be extra days of term insurance. This will occur if, on the day the

contract goes into default, the term of extended insurance provided by the net

cash value does not exceed 90 days, or the number of days the contract was in

force before the default began, if less. The number of extra days will be (1)

90, or the number of days the contract was in force before the default began, if

less, minus (2) the number of days of extended insurance that would be provided

by the net cash value if there were no contract debt. The extra days, if any.

start on the day after the last day of term insurance provided by the net cash

value, if any. If there is no such term insurance, the extra days start on the

day the contract goes into default. The term insurance for the extra days has no

cash value. There will be no extra days if you replace the extended insurance

with reduced paid-up insurance or you surrender the contract before the extra

days start.

Reduced Paid-up Insurance.--This will be paid-up variable life insurance on the

Insured's life. The death benefit may change from day to day, as we explain

below, but if there is no contract debt, it will not be less than a minimum

guaranteed amount. There will be cash values and loan values.

The minimum guaranteed amount of insurance will be computed by using the net

cash value at the net single premium rate determined as of the day the contract

went into default. The net single premium rate depends on the Insured's issue

age and sex and on the length of time since the contract date. The amount

payable in the event of death thereafter will be the greater of (a) the minimum

guaranteed amount and (b) the contract fund divided by the net single premium

per $1 at the Insured's attained age. In either case the amount will be adjusted

for any contract debt.

Except when it is provided as the automatic benefit, (see below), the reduced

paid-up insurance option will be available only when the guaranteed death

benefit under the option will be $5000 or more.

If we issued the contract in a rating class for which we do not provide extended

insurance, you may not allocate the contract fund of the reduced paid-up

insurance to any subaccount without our consent.

Computations.--We will make all computations for either of these benefits as of

the date the contract goes into default. But we will consider any loan you take

out or pay back or any premium payments or partial withdrawals you make in the

days of grace.

Automatic Benefit.--When the contract is in default, it will stay in force as

extended insurance. But it will stay in force as reduced paid-up insurance if

either of these statements applies: (1) We issued the contract in a rating class

for which we do not provide extended insurance; in this case the phrase No

Extended Insurance is in the Rating Class in the Contract Data pages. (2) The

amount of reduced paid-up insurance would be at least as great as the amount of

extended term insurance.

Optional Benefit.--You may choose to replace any extended insurance that has a

net cash value by reduced paid-up insurance. To make this choice, you must do so

in writing to us in a form that meets our needs, not more than three months

after the date the contract goes into default. You must also send the contract

to us to be endorsed.

(Continued on Next Page)

Page 16 (VALB--86)

CONTRACT VALUE OPTIONS (Continued)

Cash Value Option.--You may surrender this contract for its net cash value. The

net cash value at any time is the cash value at that time, less any contract

debt. To surrender this contract, you must ask us in writing in a form that

meets our needs. You must also send the contract to us. Here is how we will

compute the cash value for surrender of the contract or for its continuation

under extended insurance or reduced paid-up insurance.

1. If the contract is not in default: The cash value on surrender is the

contract fund, minus any surrender charge, consisting of a deferred sales charge

and a deferred underwriting and issue charge. The schedule of Maximum Surrender

Charges for this contract is in the Contract Data pages.

2. If the contract is in default during its days of grace: We will compute the

net cash value as of the date the contract went into default. But we will adjust

this value for any loan you take out or pay back, and any premium payments,

partial withdrawals or decreases in face amount you make in the days of grace.

3. If the contract is in default beyond its days of grace: The net cash value as

of any date will be the net value on that date of any extended insurance benefit

then in force. Or it will be the net value on that date of any reduced paid-up

insurance benefit then in force, less any contract debt.

Within 30 days after a contract anniversary, the net cash value of any extended

insurance will not be less than the value on that anniversary.

We will usually pay any cash value within seven days after we receive your

request and the contract at our Service Office. But we have the right to defer

paying the portion of the proceeds that is to come from the portion of the

contract fund in the PLVAA if (1) the New York Stock Exchange is closed; or (2)

the SEC requires that trading be restricted or declares an emergency. We have

the right to postpone paying you the remainder of the proceeds for up to six

months. If we do so for more than thirty days, we will pay interest at the rate

of 3% a year.

Tabular Values.--We show tabular contract fund values and tabular cash values at

the end of contract years in the Contract Data pages. The tabular contract fund

at the end of any contract year is the amount which will then be in the contract

fund if all scheduled premiums have been paid on their due dates, there have

been no unscheduled premiums paid, there is no contract debt, the subaccounts

you have chosen earn exactly the assumed rate of return, we have credited no

excess interest, and we have deducted the maximum mortality and expense charges.

The tabular cash values are the amounts which, under the same conditions, will

then be used to provide extended insurance or reduced paid-up insurance or will

be paid in cash, if the maximum surrender charges are applied. The tabular cash

value shown is equal to the tabular contract fund value as of the same date

after deducting any surrender charges (at the maximum rate) from the tabular

contract fund value. (See Cash Value Option above.)

If we need to compute tabular values at some time during a contract year, we

will count the time since the start of the year. We will let you know the

tabular values for other durations if you ask for them.

Page 17 (VALB--86)

LOANS

Loan Requirements.--After the first anniversary, you may borrow from us on the

contract. All these conditions must be met:

1. The Insured is living.

2. The contract is in force other than as extended insurance.

3. The contract debt will not be more than the loan value. (We explain these

terms below.)

4. As sole security for the loan, you assign the contract to us in a form that

meets our needs.

5. Except when used to pay premiums on this contract, the amount you borrow at

anyone time must be at least $500.

If there is already contract debt when you borrow from us, we will add the new

amount you borrow to that debt.

Contract Debt.--Contract debt at any time means the loan on the contract, plus

the interest we have charged that is not yet due and that we have not yet added

to the loan.

Loan Value.--You may borrow any amount up to the difference between the loan

value and any existing contract debt. At any time the loan value is 90% of the

cash value.

There is one exception. If the contract is in default, the loan value during the

days of grace is what it was on the date of default.

Example 1: Suppose the contract has a loan value of $6,000. About eight months

ago you borrowed $1,500. By now there is interest of $55 charged but not yet

due. The contract debt is now $1,555, which is made up of the $1,500 loan and

the $55 interest.

Example 2: Suppose, in example 1, you want to borrow all that you can. We will

lend you $4,445 which is the difference between the $6,000 loan value and the

$1,555 contract debt. This will increase the contract debt to $6,000. We will

add the new amount borrowed to the existing loan and will charge interest on it,

too.

Interest Charge.--You may select either the Fixed Loan Rate Option or the

Variable Loan Rate Option. Both are described below. We show on page 3 the

option you have selected. You may request a change to the loan rate option at

any time. If we agree, we will tell you the effective date of the change.

Fixed Loan Rate Option.--We charge interest daily on any loan at the effective

rate of 5 1/2% a year. Interest is due on each contract anniversary, or when the

loan is paid back if that comes first. If interest is not paid when due. it

becomes part of the loan. Then we start to charge interest on it, too.

Example 3: Suppose the contract date is in 1987. Six months before the

anniversary in 1996 you borrow $1,600 out of a $4,000 loan value. We charge

5 1/2% a year. Three months later, but still three months before the

anniversary, we will have charged about $22 interest. This amount will be a few

cents more or less than $22 since some months have more days than others. The

interest will not be due until the anniversary unless the loan is paid back

sooner. The loan will still be $1,600. The contract debt will be $1,622, since

contract debt includes interest charged but not yet due.

On the anniversary in 1996 we will have charged about $44 interest. The interest

will then be due.

Example 4: Suppose the $44 interest in example 3 was paid on the anniversary.

The loan and contract debt each became $1,600 right after the payment.

Example 5: Suppose the $44 interest in example 3 was not paid on the

anniversary. The interest became part of the loan, and we began to charge

interest on it, too. The loan and contract debt each became $1,644.

Variable Loan Rate Option.--We charge interest daily on any loan. Interest is

due on each contract anniversary, or when the loan is paid back it that comes

first. If interest is not paid when due, it becomes part of the loan. Then we

start to charge interest on it, too.

The loan interest rate is the annual rate we set from time to time. The rate

will never be greater than is permitted by law. It will change only on a

contract anniversary.

Before the start of each contract year, we will determine the loan interest rate

we can charge for that contract year.

To do this, we will first find the rate that is the greater of (1) The Published

Monthly Average (which we describe below) for the calendar month ending two

months before the calendar month of the contract anniversary; and (2) 5%.

If that greater rate is at least 1/2% more than the loan interest rate we had

set for the current contract year, we have the right to increase the loan

interest rate by at least 1/2%, up to that greater rate. If it is at least 4%

less, we will decrease the loan interest rate to be no more than the greater

rate. We will not change the loan interest rate by less than 1/2%.

(Continued on Next Page)

Page 18 (VALB--86)