ReliaStar Select*Life III

497 1 reliastar011306_497.htm RELIASTAR SELECT LIFE III FORM 497 ReliaStar Select*Life III

20 Washington Avenue South
Minneapolis, Minnesota 55401

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SELECT*LIFE III

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
ISSUED BY
RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
OF
RELIASTAR LIFE INSURANCE COMPANY

ReliaStar Life Insurance Company is offering the flexible premium variable
life insurance policy (Select*Life III) described in this prospectus. ReliaStar
designed the Policy to provide (1) insurance protection to age 95; and (2)
maximum flexibility regarding premium payments and death benefits. Subject to
certain restrictions, Policy owners may:

* vary the frequency and amount of premium payments;

* increase or decrease the level of death benefits payable under the
Policy; and

* allocate premiums to:

-- the Fixed Account, an account that provides a minimum specified
rate of interest; and

-- Sub-Accounts of ReliaStar Select*Life Variable Account, a
variable account allowing you to invest in certain portfolios of
the following Funds:

AIM Variable Insurance Funds Janus Aspen Series
The Alger American Fund Neuberger Berman Advisers Management Trust
Fidelity Variable Insurance Products Fund OCC Accumulation Trust
Fidelity Variable Insurance Products Fund II Pilgrim Variable Products Trust
The GCG Trust Putnam Variable Trust

If you allocate net premiums to Sub-Accounts of ReliaStar Select*Life
Variable Account, the amount of the Policy's death benefit may, and the total
value attributed to a Policy will, vary to reflect the investment performance of
the Sub-Accounts you select.

The Policy's primary purpose is to provide insurance protection for the
beneficiary. ReliaStar does not claim that investing in the Policy is in any way
similar or comparable to a systematic investment plan of a mutual fund. Please
note that replacing your existing insurance coverage with the Policy might not
be to your advantage.

Generally, the Policy will remain in force as long as the cash surrender
value (that is, the amount that ReliaStar would pay if you surrender the Policy)
is sufficient to pay certain monthly charges. However, under certain
circumstances the Policy provides a death benefit guarantee that allows the
Policy to remain in force without regard to the cash surrender value (See "Death
Benefit Guarantee").

INTERESTS IN THE POLICIES AND SHARES OF THE FUNDS ARE NOT DEPOSITS OR
OBLIGATIONS OF OR GUARANTEED BY A BANK, AND ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THESE SECURITIES OR
DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

Please read this prospectus carefully and keep it for future reference.
Call 1-800-456-6965 to obtain a current prospectus for any of the Funds. A
current prospectus for each of the Funds must accompany this prospectus and
should be read in conjunction with this prospectus.

THE DATE OF THIS PROSPECTUS IS MAY 1, 2001

TABLE OF CONTENTS

DEFINITIONS.............................................................. 5

PART 1. SUMMARY

The Policy............................................................... 7
Free Look Rights......................................................... 8
Premium Payments......................................................... 8
Charges Against Premium Payments......................................... 8
Charges Against the Accumulation Value................................... 8
Charge Upon Lapse or Total Surrender of the Policy....................... 8
Transfer and Partial Withdrawal Charges.................................. 9
Investment Advisory Fees and Other Fund Expenses......................... 9
The Variable Account.................................................... 11
The Fixed Account....................................................... 11
The Funds............................................................... 11
Surrenders.............................................................. 14
Partial Withdrawals..................................................... 15
Loans................................................................... 15
Transfers............................................................... 15
Death Benefit Overview.................................................. 15
Adjusting the Death Benefit............................................. 15
Death Benefit Guarantee................................................. 16
Lapse................................................................... 16
Taxation of Death Benefit Proceeds...................................... 16
Taxation of the Policy.................................................. 16

PART 2. DETAILED INFORMATION

ReliaStar Life Insurance Company........................................ 17
The Policies............................................................ 17
Deductions and Charges.................................................. 17
Premium Expense Charge.................................................. 17
Sales Charge........................................................... 18
Premium Tax Charge..................................................... 18
Premium Processing Charge.............................................. 18
Monthly Deduction....................................................... 18
Cost of Insurance...................................................... 18
Monthly Administrative Charge.......................................... 18
Monthly Mortality and Expense Risk Charge.............................. 19
Optional Insurance Benefit Charges..................................... 19
Surrender Charge........................................................ 19
General................................................................ 19
Contingent Deferred Administrative Charge.............................. 19
Contingent Deferred Sales Charge....................................... 19
Sales Charge Refund..................................................... 20
Initial Face Amount.................................................... 21
Requested Increases in Face Amount..................................... 21
Effect of Sales Charge Refund.......................................... 21
Partial Withdrawal and Transfer Charges................................. 22
Modification of Charges................................................. 22
The Variable Account.................................................... 22
Investments of the Variable Account..................................... 22
Performance Information................................................. 23
Death Benefit........................................................... 24
Guideline Premium Test................................................. 24
Death Benefit Options................................................... 24
Level Amount Option.................................................... 24
Variable Amount Option................................................. 24
Which Death Benefit Option to Choose.................................... 24

Requested Changes in Face Amount........................................ 24
Increases.............................................................. 25
Decreases.............................................................. 25
Effect of Requested Changes in Face Amount............................. 25
Insurance Protection.................................................... 26
Changing the Death Benefit Option....................................... 27
Accelerated Benefit Rider............................................... 27
Payment and Allocation of Premiums...................................... 27
Issuing the Policy...................................................... 27
Coverage............................................................... 27
Minimum Initial Premium................................................ 28
Conditional Receipt..................................................... 28
Allocating Premiums..................................................... 28
Crediting Net Premiums................................................. 28
Refunding Premiums..................................................... 29
Amount and Timing of Premiums........................................... 29
Planned Periodic Premiums............................................... 29
Paying Premiums by Mail................................................. 30
Death Benefit Guarantee................................................. 30
Requirements for the Death Benefit Guarantee............................ 30
Accumulation Value...................................................... 31
Illustration of Policy Benefits......................................... 32
Specialized Uses of the Policy.......................................... 32
Policy Lapse and Reinstatement.......................................... 32
Lapse.................................................................. 32
Reinstatement.......................................................... 33
Surrender Benefits...................................................... 33
Total Surrender......................................................... 33
Partial Withdrawal...................................................... 33
Effect of Partial Withdrawals.......................................... 33
Transfers............................................................... 34
Telephone/Fax Instructions............................................. 35
Excessive Trading...................................................... 35
Dollar Cost Averaging Service.......................................... 35
Portfolio Rebalancing Service.......................................... 36
Transfer Limits........................................................ 36
Transfer Charges....................................................... 36
Policy Loans............................................................ 36
General................................................................ 36
Immediate Effect of Policy Loans....................................... 37
Effect on Investment Performance....................................... 37
Effect on Policy Coverage.............................................. 38
Interest............................................................... 38
Repayment of Loan Amount............................................... 38
Tax Considerations..................................................... 38
Free Look and Conversion Rights......................................... 38
Free Look Rights....................................................... 38
At Initial Issue...................................................... 38
Following a Requested Increase in Face Amount......................... 38
Not Taken Policies.................................................... 39
Conversion Rights...................................................... 39
General Option........................................................ 39
Connecticut........................................................... 39
Additional Information on the Investments of the Variable Account....... 40
Investment Limits....................................................... 40
Addition, Deletion, or Substitution of Investments...................... 40
Voting Rights........................................................... 41
Disregarding Voting Instructions....................................... 41
Paid-up Life Insurance Option........................................... 41

General Provisions...................................................... 42
Ownership............................................................... 42
Proceeds................................................................ 42
Beneficiary............................................................. 42
Postponement of Payments................................................ 42
Settlement Options...................................................... 43
Interest on Settlement Options......................................... 43
Incontestability........................................................ 43
Misstatement of Age and Sex............................................. 44
Suicide................................................................. 44
Termination............................................................. 44
Amendment............................................................... 44
Reports................................................................. 44
Annual Statement....................................................... 44
Projection Report...................................................... 44
Other Reports.......................................................... 44
Dividends............................................................... 45
Collateral Assignment................................................... 45
Optional Insurance Benefits............................................. 45
Accelerated Benefit Rider.............................................. 45
Accidental Death Benefit Rider......................................... 45
Additional Insured Rider............................................... 45
Waiver of Monthly Deduction Rider...................................... 45
Children's Insurance Rider............................................. 45
Waiver of Specified Premium Rider...................................... 45
Federal Tax Matters..................................................... 45
Introduction............................................................ 45
Tax Status of the Policy................................................ 45
Tax Treatment of Policy Benefits........................................ 46
In General............................................................. 46
Modified Endowment Contracts........................................... 46
Distributions from Modified Endowment Contracts........................ 46
Distributions from Policies That Are Not Modified Endowment Contracts.. 47
Policy Loans........................................................... 47
Multiple Policies...................................................... 47
Business Uses of Policy................................................ 47
Other Tax Considerations............................................... 47
Possible Changes in Taxation............................................ 47
Other Considerations.................................................... 47
Taxation of ReliaStar Life Insurance Company............................ 48
Legal Developments Regarding Employment-Related Benefit Plans........... 48
Distribution of the Policies............................................ 48
Management.............................................................. 50
Directors and Officers.................................................. 50
State Regulation........................................................ 56
Massachusetts and Montana Residents..................................... 56
Legal Proceedings....................................................... 57
Bonding Arrangements.................................................... 57
Legal Matters........................................................... 57
Experts................................................................. 57
Registration Statement Contains Further Information..................... 57
Financial Statements.................................................... 58

Appendices............................................................. A-1

THE POLICY MAY NOT BE AVAILABLE IN ALL JURISDICTIONS. THIS PROSPECTUS
CONSTITUTES AN OFFERING OR SOLICITATION ONLY IN THOSE JURISDICTIONS WHERE SUCH
OFFERING OR SOLICITATION MAY LAWFULLY BE MADE.

RELIASTAR HAS NOT AUTHORIZED ANY PERSON TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS REGARDING THE POLICY OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS OR THE ACCOMPANYING FUND PROSPECTUSES. DO NOT RELY ON ANY SUCH
INFORMATION OR REPRESENTATIONS.

DEFINITIONS

ACCUMULATION VALUE. The total value attributable to a specific Policy, which
equals the sum of the Variable Accumulation Value (the total of the values in
each Sub-Account of the Variable Account) and the Fixed Accumulation Value
(the value in the Fixed Account). See "Accumulation Value" at page 31, and
Appendix B.

AGE. The Insured's age at the last birthday determined as of the beginning of
each Policy Year.

CASH SURRENDER VALUE. The Accumulation Value less any Surrender Charge, Loan
Amount and unpaid Monthly Deductions.

CASH VALUE. The Accumulation Value less any Surrender Charge.

CODE. Internal Revenue Code of 1986, as amended.

DEATH BENEFIT. The amount determined under the applicable Death Benefit Option.
We will reduce the proceeds payable to the beneficiary upon the Insured's
death by any Loan Amount and any unpaid Monthly Deductions. See "Death
Benefit" at page 24.

DEATH BENEFIT GUARANTEE. A feature guaranteeing that the Policy will not lapse
during the Death Benefit Guarantee Period specified in your Policy if, on
each Monthly Anniversary, the total premiums paid on the Policy, less any
partial withdrawals and any Loan Amount, equals or exceeds the total required
Minimum Monthly Premium payments specified in your Policy. See "Death Benefit
Guarantee" at page 30.

DEATH BENEFIT OPTION. One of two death benefit options available under the
Policy (the Level Amount Option and the Variable Amount Option). See "Death
Benefit -- Death Benefit Options" at page 24.

FACE AMOUNT. The minimum Death Benefit under the Policy as long as the Policy
remains in force. See "Death Benefit" at page 24.

FIXED ACCOUNT. ReliaStar Life Insurance Company's assets other than those
allocated to the Variable Account or any other separate account. See Appendix
A.

FIXED ACCUMULATION VALUE. The value attributable to a specific Policy based on
amounts in the Fixed Account. Unlike the Variable Accumulation Value, the
Fixed Accumulation Value will not reflect the investment performance of the
Funds. See "Accumulation Value" at page 31 and Appendix B.

FUNDS. Any open-end management investment company (or portfolio thereof) or unit
investment trust (or series thereof) in which a Sub-Account invests. See
"Summary" at page 7 and "Fund Expenses" at page 9.

INSURED. The person upon whose life we issue the Policy.

ISSUE DATE. The date insurance coverage under a Policy begins.

LOAN AMOUNT. The sum of all unpaid Policy loans including unpaid interest due
thereon. See "Policy Loans" at page 36.

MINIMUM FACE AMOUNT. The minimum Face Amount shown in the Policy (currently
$150,000 for issue ages 0-44 and $100,000 for issue ages 45-80). The minimum
Face Amount after issue is currently $125,000 for issue ages 0-44 and $75,000
for issue ages 45-80.

MINIMUM MONTHLY PREMIUM. A monthly premium amount that we determine when we
issue the Policy. Your Policy will specify this amount. See "Death Benefit
Guarantee" at page 30.

MONTHLY ANNIVERSARY. The same date in each succeeding month as the Policy Date.
If the Monthly Anniversary falls on a date other than a Valuation Date, then
the Monthly Anniversary will be the next Valuation Date. The first Monthly
Anniversary is on the Policy Date.

MONTHLY DEDUCTION. A monthly charge we deduct from the Accumulation Value of the
Policy. See "Deductions and Charges -- Monthly Deduction" at page 18.

NET PREMIUM. The premium you pay less a Premium Expense Charge.

PLANNED PERIODIC PREMIUM. The scheduled premium you select of a level amount at
a fixed interval. The Policy will show the initial Planned Periodic Premium
you select. See "Payment and Allocation of Premiums -- Planned Periodic
Premiums" at page 29.

POLICY. Select*Life III, the flexible premium variable life insurance policy
described in this prospectus.

POLICY ANNIVERSARY. The same date in each succeeding year as the Policy Date. If
the Policy Anniversary falls on a date other than a Valuation Date, the
Policy Anniversary will be the next Valuation Date.

POLICY DATE. The date shown on your Policy that ReliaStar uses to determine
Policy Years, Policy Months, Monthly Anniversaries, and Policy Anniversaries.

POLICY MONTH. A one-month period beginning on a Monthly Anniversary.

POLICY YEAR. A 12-month period beginning on a Policy Anniversary.

PREMIUM EXPENSE CHARGE. An amount (5% in Policy Years 1 to 10 and currently 3%
thereafter) ReliaStar deducts from each premium payment resulting in the Net
Premium. See "Deductions and Charges -- Premium Expense Charge" at page 17.

RATE CLASS. A group of Insureds we determine based on our expectation that they
will have similar mortality experience.

SEC. Securities and Exchange Commission.

SIGNATURE GUARANTEE. A guarantee of your signature by a member firm of the New
York, American, Boston, Midwest, Philadelphia, or Pacific Stock Exchange, or
by a commercial bank which is a member of the Federal Deposit Insurance
Corporation, or, in certain cases, by a member firm of the National
Association of Securities Dealers, Inc. that has entered into an appropriate
agreement with us.

SUB-ACCOUNT. A sub-division of the Variable Account that invests exclusively in
the shares of a specified Fund.

SURRENDER CHARGE. A charge imposed upon total surrender or lapse of the Policy
during the first 15 Policy Years and the first 15 years following any
requested increase in Face Amount. See "Deduction and Charges -- Surrender
Charge" at page 19.

UNIT VALUE. The unit measure by which we determine the value of the Policy's
interest in each Sub-Account. See Appendix B.

VALUATION DATE. Each day the New York Stock Exchange is open for business except
for days that a Sub-Account's corresponding Fund does not value its shares.
The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day; Rev. Dr. Martin Luther King, Jr. Day;
Presidents' Day; Good Friday; Memorial Day; July Fourth; Labor Day;
Thanksgiving Day; and Christmas Day. See Appendix B.

VALUATION PERIOD. The period beginning at the close of business on a Valuation
Date and ending at the close of business on the next Valuation Date. See
Appendix B.

VARIABLE ACCOUNT. ReliaStar Select*Life Variable Account, a separate investment
account we established to receive and invest Net Premiums paid under the
Policy and other variable life insurance policies we issue. See "The Variable
Account" at page 11.

VARIABLE ACCUMULATION VALUE. The value attributable to a specific Policy based
on amounts in the Variable Account. See "Accumulation Value" at page 31 and
Appendix B.

WE, US, OUR, THE COMPANY, OR RELIASTAR. ReliaStar Life Insurance Company.

YOU, YOUR. The Policy owner as designated in the application for the Policy or
as subsequently changed. If a Policy has been absolutely assigned, the
assignee is the Policy owner. A collateral assignee is not the Policy owner.

PART 1. SUMMARY

This is a brief summary of the Policy's features. Please read the entire
Prospectus and the Policy for more detailed information.

THE POLICY

Your Policy provides life insurance protection on the Insured. The Policy
includes the basic Policy, applications, and riders or endorsements. As long as
the Policy remains in force, we pay a Death Benefit at the death of the Insured.
While your Policy is in force, you may access a portion of your Cash Surrender
Value by taking loans or partial withdrawals.

Life insurance is not a short-term investment. You should evaluate your
need for life insurance coverage and this Policy's long-term potential and risks
before purchasing a Policy.

We pay compensation to firms for sales of this Policy. See "Distribution
of the Policies."

Under current Federal tax law, as long as the Policy qualifies as life
insurance, Accumulation Value increases will be subject to the same Federal
income tax treatment as traditional life insurance cash values. Therefore, any
increases should accumulate on a tax deferred basis until you request a
distribution. See "Federal Tax Matters -- Tax Status of the Policy." The
following chart outlines the various features, charges, and expenses of the
Policies. Additional, detailed information pertaining to charges and expenses is
contained in this Summary and in "Deductions and Charges."

HOW SELECT*LIFE III WORKS

FREE LOOK RIGHTS * If you return the Policy to us by (1) midnight of the
20th day after you receive it, (2) midnight of the
20th day after a written Notice of Right of
Withdrawal is mailed or delivered to you, or (3)
midnight of the 45th day after the date of your
application for the Policy is signed, we will send
you a refund of all premiums paid unless otherwise
stipulated by state law. See "Free Look and
Conversion Rights -- Free Look Rights."
* Certain states may allow a longer period of time for
the free look period and refund a different amount.

PREMIUM PAYMENTS * You choose when to pay and how much to pay.
* We may refuse to accept any premium less than $25.
* You cannot pay additional premiums after Age 95
except as needed to keep your Policy in force for the
remainder of the current Policy Year.
* We may refuse any premium that would disqualify your
Policy as life insurance under Section 7702 of the
Code.
* You may be required to pay enough premiums to
maintain the Death Benefit Guarantee in order to keep
the Policy in force during at least the first several
Policy Years. See "Death Benefit Guarantee" and
"Payment and Allocation of Premiums -- Amount and
Timing of Premiums."
* We deduct a Premium Expense Charge (5.00% of each
premium payment in Policy years 1-10 and currently
3.00% of each premium payment after the 10th Policy
Year) and credit the remaining premium (the Net
Premium) to the Variable Account or the Fixed Account
according to your instructions. See "Deductions and
Charges -- Premium Expense Charge."

CHARGES AGAINST PREMIUM PAYMENTS

We will deduct a Premium Expense Charge from each premium payment. The
charge applies in all Policy Years and is comprised of a sales charge (currently
2.50% of each premium payment in Policy Years 1-10 and 0.50% of each premium
payment after Policy Year 10) and a premium tax charge (2.50% of each premium
payment). We may also make a premium processing charge of $2.00 per premium
payment although we currently do not make this charge. See "Deductions and
Charges -- Premium Expense Charge."

CHARGES AGAINST THE ACCUMULATION VALUE

The Accumulation Value of the Policy is subject to the Monthly Deduction
charges. We will deduct the Monthly Deduction each month from both the Fixed
Accumulation Value and the Variable Accumulation Value on a proportionate basis
depending on their relative Accumulation Values at that time. However, we will
deduct the Monthly Mortality and Expense Risk Charge only from the Sub-Accounts
of the Variable Account. See "Deductions and Charges -- Monthly Deduction."

The Monthly Deduction includes:

* A charge for the cost of insurance -- varies based on the Insured's
sex, Age, Policy Year, Rate Class and Face Amount.

* Monthly Administrative Charge -- currently $8.25 per month and
guaranteed not to exceed $12.00 per month.

* Monthly Mortality and Expense Risk Charge -- currently equal to 1/12
of .90% of the Variable Accumulation Value during the first 10 policy
years. Each month thereafter, the deduction equals 1/12 of .30% of the
Variable Accumulation Value and is guaranteed not to exceed 1/12 of
.60% of the Variable Accumulation Value.

* Any charges for optional insurance benefits -- vary depending upon the
benefit(s) selected.

CHARGE UPON LAPSE OR TOTAL SURRENDER OF THE POLICY

* We assess a Surrender Charge if your Policy lapses or if you surrender
the Policy during the first 15 Policy Years (or during the first 15
years following a Face Amount increase).

* We will determine the maximum Surrender Charge for the initial Face
Amount and any requested increases in Face Amount on the Policy Date
and on the effective date of any such requested increase.

* The Surrender Charge for the initial Face Amount will depend on the
initial Face Amount, the Insured's Age on the Policy Date, and the
Insured's sex.

* You do not pay this charge if the Policy remains in force during the
entire relevant 15-year period. The Surrender Charge has two parts --
the Contingent Deferred Administrative Charge and the Contingent
Deferred Sales Charge, which are determined separately. Surrender
during the first two Policy Years and 24 months after increases in the
Face Amount may be eligible for a refund of part of the Contingent
Deferred Sales Charge. See "Deductions and Charges -- Surrender
Charge."

TRANSFER AND PARTIAL WITHDRAWAL CHARGES

We currently make no charge for the first 24 transfers in a Policy Year,
and assess a $25 charge for each subsequent transfer. We currently assess a $10
charge for each partial withdrawal. We guarantee that the transfer charge and
the partial withdrawal charge will not exceed $25 per transfer or partial
withdrawal. We do not and will not impose the transfer charge on transfers that
occur as a result of Policy loans or the exercise of conversion rights.

INVESTMENT ADVISORY FEES AND OTHER FUND EXPENSES

Because the Variable Account purchases shares of the Funds, the net asset
value of the Variable Account's investments will reflect the investment advisory
fees and other expenses incurred by the Funds. Set forth on this and the next
page is information provided by each Fund on its total annual expenses as of
December 31, 2000 as a percentage of each Fund's average net assets. We have not
independently verified this information. See the prospectuses for the Funds for
more information concerning these expenses.

INVESTMENT TOTAL FEES AND TOTAL NET
MANAGEMENT OTHER PORTFOLIO EXPENSES WAIVED PORTFOLIO
PORTFOLIO FEES EXPENSES EXPENSES OR REIMBURSED EXPENSES
----------------------------------------------------------- ------------ ---------- ----------- ----------------- ----------

AIM VARIABLE INSURANCE FUNDS
AIM V.I. Dent Demographic Trends Fund (a) (b) ............. 0.85% 0.78% 1.63% 0.13% 1.50%
THE ALGER AMERICAN FUND
Alger American Growth Portfolio (a) ....................... 0.75% 0.04% 0.79% N/A 0.79%
Alger American Leveraged AllCap Portfolio (a) ............. 0.85% 0.05% 0.90% N/A 0.90%
Alger American MidCap Growth Portfolio (a) ................ 0.80% 0.04% 0.84% N/A 0.84%
Alger American Small Capitalization Portfolio (a) ......... 0.85% 0.05% 0.90% N/A 0.90%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Fidelity VIP Equity-Income Portfolio --
Initial Class (a) (d) .................................... 0.48% 0.08% 0.56% N/A 0.56%
Fidelity VIP Growth Portfolio -- Initial Class (a) (d) 0.57% 0.08% 0.65% N/A 0.65%
Fidelity VIP High Income Portfolio --
Initial Class (a) (d) .................................... 0.58% 0.10% 0.68% N/A 0.68%
Fidelity VIP Money Market Portfolio --
Initial Class (c) ........................................ 0.27% 0.08% 0.35% N/A 0.35%
Fidelity VIP II Contrafund Portfolio --
Initial Class (a) (d) .................................... 0.57% 0.09% 0.66% N/A 0.66%
Fidelity VIP II Index 500 Portfolio --
Initial Class (a) (e) .................................... 0.24% 0.09% 0.33% N/A 0.33%
Fidelity VIP II Investment Grade Bond Portfolio --
Initial Class (a) ........................................ 0.43% 0.11% 0.54% N/A 0.54%
THE GCG TRUST
Fully Managed Series ...................................... 0.94% 0.01% 0.95% N/A 0.95%
Mid-Cap Growth Series ..................................... 0.88% 0.01% 0.89% N/A 0.89%
JANUS ASPEN SERIES
Janus Aspen Aggressive Growth Portfolio (a) (f) ........... 0.65% 0.01% 0.66% N/A 0.66%
Janus Aspen Growth Portfolio (a) (f) ...................... 0.65% 0.02% 0.67% N/A 0.67%

INVESTMENT TOTAL FEES AND TOTAL NET
MANAGEMENT OTHER PORTFOLIO EXPENSES WAIVED PORTFOLIO
PORTFOLIO FEES EXPENSES EXPENSES OR REIMBURSED EXPENSES
------------------------------------------------------------ ------------ ---------- ----------- ----------------- -----------

Janus Aspen International Growth Portfolio (a) (f) ......... 0.65% 0.06% 0.71% N/A 0.71%
Janus Aspen Worldwide Growth Portfolio (a) (f) ............. 0.65% 0.04% 0.69% N/A 0.69%
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust
Limited Maturity Bond Portfolio (a) ....................... 0.65% 0.11% 0.76% N/A 0.76%
Neuberger Berman Advisers Management Trust
Partners Portfolio (a) .................................... 0.82% 0.10% 0.92% N/A 0.92%
Neuberger Berman Advisers Management Trust
Socially Responsive Portfolio (a) (g) ..................... 0.85% 1.55% 2.40% 0.86% 1.54%
OCC ACCUMULATION TRUST
OCC Equity Portfolio (a) (h) ............................... 0.80% 0.15% 0.95% N/A 0.95%
OCC Global Equity Portfolio (a) (h) ........................ 0.80% 0.34% 1.14% N/A 1.14%
OCC Managed Portfolio (a) (h) .............................. 0.78% 0.08% 0.86% N/A 0.86%
OCC Small Cap Portfolio (a) (h) ............................ 0.80% 0.10% 0.90% N/A 0.90%
PILGRIM VARIABLE PRODUCTS TRUST
Pilgrim VP Growth Opportunities Portfolio (i)(j) ........... 0.75% 1.44% 2.19% 1.29% 0.90%
Pilgrim VP Growth + Value Portfolio (i)(j) ................. 0.75% 0.18% 0.93% 0.13% 0.80%
Pilgrim VP High Yield Bond Portfolio (i)(j) ................ 0.75% 0.38% 1.13% 0.33% 0.80%
Pilgrim VP International Value Portfolio (i)(j) ............ 1.00% 0.44% 1.44% 0.44% 1.00%
Pilgrim VP MagnaCap Portfolio (i)(j) ....................... 0.75% 7.15% 7.90% 7.00% 0.90%
Pilgrim VP MidCap Opportunities Portfolio (i)(j) ........... 0.75% 5.01% 5.76% 4.86% 0.90%
Pilgrim VP Research Enhanced Index
Portfolio (i)(j) .......................................... 0.75% 0.43% 1.18% 0.28% 0.90%
Pilgrim VP SmallCap Opportunities
Portfolio (i)(j) .......................................... 0.75% 0.23% 0.98% 0.08% 0.90%
PUTNAM VARIABLE TRUST
Putnam VT Growth and Income Fund --
Class IA Shares ........................................... 0.46% 0.04% 0.50% N/A 0.50%
Putnam VT New Opportunities Fund --
Class IA Shares ........................................... 0.52% 0.05% 0.57% N/A 0.57%
Putnam VT Small Cap Value Fund --
Class IA Shares ........................................... 0.80% 0.30% 1.10% N/A 1.10%
Putnam VT Voyager Fund -- Class IA Shares .................. 0.51% 0.05% 0.56% N/A 0.56%

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(a) The Company or its affiliates may receive compensation from an affiliate or
affiliates of certain of the Funds based upon an annual percentage of the
average net assets held in that Fund by the Company and by certain of the
Company's insurance company affiliates. These amounts are intended to
compensate the Company or the Company's affiliates for administrative,
recordkeeping, and other services provided by the Company and its
affiliates to Funds and/or the Funds' affiliates. Payments of such amounts
by an affiliate or affiliates of the Funds do not increase the fees paid by
the Funds or their shareholders. The percentage paid may vary from one Fund
company to another. The amounts we receive under these agreements may be
significant.

(b) Expenses have been restated to reflect current fees. The investment advisor
has agreed to waive fees and/or reimburse expenses (excluding interest,
taxes, dividend expense on short sales, extraordinary items and increases
in expenses due to expense offset arrangements, if any) to limit total
annual fund operating expenses to 1.50% of average daily net assets until
December 31, 2001. Total annual fund operating expenses before waivers were
1.63%.

(c) The annual class operating expenses provided are based on historical
expenses, adjusted to reflect the current management fee structure.

(d) Actual annual class operating expenses were lower because a portion of the
brokerage commissions that the fund paid was used to reduce the fund's
expenses, and/or because through arrangements with the fund's custodian,
credits realized as a result of uninvested cash balances were used to
reduce a portion of the fund's custodian expenses. See the accompanying
fund prospectus for details.

(e) The fund's manager has voluntarily agreed to reimburse the class's expenses
if they exceed a certain level. Including this reimbursement, the annual
class operating expenses were 0.28%. This arrangement may be discontinued
by the fund's manager at any time.

(f) Expenses are based upon expenses for the fiscal year ended December 31,
2000, restated to reflect a reduction in the management fee for Growth,
Aggressive Growth, International Growth and Worldwide Growth Portfolios.
All expenses are shown without the effect of any expense offset
arrangements.

(g) Neuberger Berman Management Inc. ("NBMI") has undertaken through April 30,
2002 to reimburse certain operating expenses, including the compensation of
NBMI and excluding taxes, interest, extraordinary expenses, brokerage
commissions and transaction costs, that exceed, in the aggregate, 1.50% of
the average daily net asset value of the Socially Responsive Portfolio. The
expense reimbursement agreement with respect to the Socially Responsive
Portfolio provides for NBMI to recoup through December 31, 2005 amounts
reimbursed by NBMI under the agreement, provided such recoupment would not
cause the Portfolio to exceed its expense limitation.

(h) Management Fees reflect effective management fees before taking into effect
any fee waiver. Other Expenses are shown before expense offsets afforded
the Portfolios. Total Portfolio Expenses for the Equity, Small Cap and
Managed Portfolios are limited by OpCap Advisors so that their respective
annualized operating expenses (net of any expense offset) do not exceed
1.00% of average daily net assets. Total Portfolio Expenses for the Global
Equity Portfolio are limited to 1.25% of average daily net assets.

(i) The table shows the estimated operating expenses for each Portfolio as a
ratio of expenses to average daily net assets. These estimates are based on
each Portfolio's actual operating expenses for its most recently completed
fiscal year and fee waivers to which the Adviser has agreed for each
Portfolio.

(j) ING Pilgrim Investments has entered into written expense limitation
agreements with each Portfolio which it advises under which it will limit
expenses of the Portfolio, excluding interest, taxes, brokerage and
extraordinary expenses, subject to possible reimbursement to ING Pilgrim
Investments within three years. The expense limit for each such Fund is
shown as "Total Net Portfolio Expenses." For each Portfolio, the expense
limits will continue through at least December 31, 2001.

THE VARIABLE ACCOUNT * ReliaStar Select*Life Variable Account is one of our
(ReliaStar Select*Life separate accounts and consists of several
Variable Sub-Accounts. We only invest premiums from our
Account) variable life insurance policies in the Variable
Account.

* We invest any Net Premiums you allocate to each
Sub-Account in shares of the Fund related to that
Sub-Account.
* Variable Accumulation Value will vary with the
investment performance of the Funds and the charges
deducted from the Variable Accumulation Value. See
"Accumulation Value."

THE FIXED ACCOUNT * Consists of all of our assets other than those in our
separate accounts (including the Variable Account).
* We credit interest of at least 4% per year on any
amounts you allocate to the Fixed Account.
* We may, in our sole discretion, credit interest in
excess of 4%. See Appendix A, "The Fixed Account."

THE FUNDS * You can instruct ReliaStar to place your Net Premium
in, or transfer to, up to 17 of 37 investment
portfolios over the lifetime of your Policy.

The following chart lists the currently available Funds and outlines
certain of their important characteristics.

INVESTMENT FUNDS




-----------------------
(1)  A non-diversified portfolio is a portfolio that may hold a larger position
     in a smaller number of securities than a diversified portfolio. This means
     that a single security's increase or decrease in value may have a greater
     impact on the return and net asset value of a non-diversified portfolio
     than a diversified portfolio.



                                       13

SURRENDERS * In general, you will receive the Cash Surrender Value
if you surrender the Policy.

* To determine the Cash Surrender Value, we reduce your
Accumulation Value by the Surrender Charge, if any,
and any Loan Amount and unpaid Monthly Deductions.
See "Surrender Benefits -- Total Surrender."

* Surrendering the Policy may have tax consequences.
See "Federal Tax Matters."

PARTIAL WITHDRAWALS * Once each Policy Year, after the first Policy Year,
you can withdraw part of your Cash Surrender Value.

* You will not incur a Surrender Charge, but partial
withdrawals are subject to a partial withdrawal
charge (currently $10, guaranteed not to exceed $25).
See "Surrender Benefits -- Partial Withdrawal."
* Partial withdrawals may reduce your Policy's Death
Benefit and will reduce your Accumulation Value.
* Partial withdrawals may also have tax consequences.
See "Federal Tax Matters."

LOANS * Depending on your state of residence, you can borrow
up to 75% of your Policy's Cash Value less any
existing Loan Amount.
* Interest is payable in advance for each Policy Year
and accrues daily at an effective annual rate that
will not exceed 8.00%.
* After the 10th Policy Year, we currently charge
interest at an annual rate of 5.21% on the portion of
your Loan Amount that is not in excess of (1) the
Accumulation Value, less (2) the total of all
premiums paid net of all partial withdrawals.
* We reserve the right to limit borrowing during the
first Policy Year. See "Policy Loans."

* Policy loans may have tax consequences. See "Federal
Tax Matters."

TRANSFERS * Currently, you can transfer all or part of your
Accumulation Value among the investment options.
* We currently do not limit the number of transfers per
Policy Year. We reserve the right to limit you to 4
transfers per Policy Year.
* There are certain restrictions on transfers from the
Fixed Account.

* We currently make no charge for the first 24
transfers in a Policy Year. We make a $25 charge for
each subsequent transfer. We reserve the right to
assess a maximum charge of $25 for each transfer. See
"Transfers."

DEATH BENEFIT OVERVIEW

You can choose one of two Death Benefit Options:

* Level Amount Option -- whereby the Death Benefit is the greater of the
Face Amount or the corridor percentage of Accumulation Value; or

* Variable Amount Option -- whereby the Death Benefit is equal to the
greater of the Face Amount plus the Accumulation Value, or the
corridor percentage of Accumulation Value. See "Death Benefit."

The Death Benefit until Age 95 under the Level Amount Option and the
Variable Amount Option will never be less than the Face Amount as long as the
Policy is in force and there is no Loan Amount or unpaid Monthly Deductions. At
Age 95, the Cash Surrender Value is automatically applied to purchase paid-up
life insurance. See "Paid-Up Life Insurance Option."

We will reduce the proceeds payable upon the death of the Insured under any
Death Benefit Option by any Loan Amount and any unpaid Monthly Deductions.

Under certain circumstances, you may receive a part of the Death Benefit
when the Insured has been diagnosed as having a terminal illness. See "Death
Benefit -- Accelerated Benefit Rider."

ADJUSTING THE DEATH BENEFIT

Although we reserve the right to limit Face Amount increases and decreases
during the first two Policy Years, you have flexibility to adjust the Death
Benefit by increasing or decreasing the Face Amount. You cannot decrease the
Face Amount below the Minimum Face Amount shown in the Policy. Any increase in
the Face Amount may require additional evidence of insurability satisfactory to
us and will result in additional charges. See "Death Benefit -- Requested
Changes in Face Amount."

Generally, you may also change the Death Benefit Option at any time after
the second Policy Year. See "Death Benefit -- Changing the Death Benefit
Option."

See "Death Benefit -- Insurance Protection" for a discussion of available
techniques to adjust the amount of insurance protection to satisfy changing
insurance needs.

Adjusting the Death Benefit may have tax consequences. You should consult a
tax adviser before adjusting the Death Benefit.

DEATH BENEFIT GUARANTEE

If you meet the requirements for the Death Benefit Guarantee, we will not
lapse your Policy during the Death Benefit Guarantee Period even if the Cash
Surrender Value is not sufficient to cover the Monthly Deduction that is due.

See "Death Benefit Guarantee."

LAPSE

If the Death Benefit Guarantee is not in effect, the Policy will lapse if
the Cash Surrender Value is less than the Monthly Deduction due and if you do
not make a sufficient payment during the grace period of 61 days. See "Policy
Lapse and Reinstatement."

TAXATION OF DEATH BENEFIT PROCEEDS

Under current Federal tax law, as long as the Policy qualifies as life
insurance the Death Benefit under the Policy will be subject to the same Federal
income tax treatment as proceeds of traditional life insurance. Therefore, the
Death Benefit should not be taxable income to the beneficiary. See "Federal Tax
Matters -- Tax Status of the Policy."

TAXATION OF THE POLICY

The Company believes it is reasonable to conclude that the Policy satisfies
the definition of a life insurance contract under Section 7702 of the Code.
Under certain circumstances, a Policy could be treated as a "modified endowment
contract." The Company will monitor Policies and will attempt to notify an owner
within one month of the date of any Policy transactions which place his or her
Policy in jeopardy of becoming a modified endowment contract. See "Federal Tax
Matters" for further discussion of the tax status of a Policy and the tax
consequences of being treated as a life insurance contract or a modified
endowment contract.

A Policy lapse, surrender, partial withdrawal or loan may have adverse tax
consequences in certain circumstances. See "Federal Tax Matters."

PART 2. DETAILED INFORMATION

This prospectus describes our standard Select*Life III Policy. There may be
differences in the policy features, benefits and charges because of state
requirements where we issue your Policy. We describe all such differences in
your Policy.

If you would like to know about variations specific to your state, please
ask your agent/registered representative. ReliaStar can provide him/her with the
list of variations that will apply to your Policy.

RELIASTAR LIFE INSURANCE COMPANY

ReliaStar Life Insurance Company is a stock life insurance company
organized in 1885 and incorporated under the laws of the State of Minnesota. We
are a direct, wholly owned subsidiary of ReliaStar Financial Corp., an indirect,
wholly owned subsidiary of ING Groep N.V. ING is a global financial institution
active in the field of insurance, banking, and asset management in more than 60
countries, with almost 106,000 employees. We offer individual life insurance and
annuities, employee benefits and retirement contracts. Our Home Office is at 20
Washington Avenue South, Minneapolis, Minnesota 55401 (telephone 612-372-5507).

From time to time, we may publish in advertisements, sales literature, and
reports, the ratings and other information assigned to us by one or more
independent rating organizations such as A.M. Best Company, Standard &
Poor's, Moody's, and Duff & Phelps. The purpose of the ratings is to reflect
our financial strength and/or claims-paying ability and should not be considered
as bearing on the investment performance of assets held in the Variable Account.
Each year the A.M. Best Company reviews the financial status of many insurers,
culminating in the assignment of Best's Ratings. These ratings reflect their
current opinion of the relative financial strength and operating performance of
an insurance company in comparison to the norms of the life/health insurance
industry. We have been assigned a rating of A+ by A.M. Best, which is a rating
assigned to companies demonstrating superior overall performance and a very
strong ability to meet obligations to policyholders over a long period. Such
ratings do not reflect the investment in the Variable Account.

ReliaStar is a charter member of the Insurance Marketplace Standards
Association ("IMSA"). Companies that belong to IMSA subscribe to a rigorous set
of standards that cover the various aspects of sales and service for
individually sold life insurance and annuities. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.

THE POLICIES

The Policies are flexible premium variable life insurance contracts with
death benefits, cash values, and other features of traditional life insurance
contracts.

DEDUCTIONS AND CHARGES

We deduct certain charges in connection with the Policy to compensate us
for (1) providing the insurance benefits of the Policy (including any riders),
(2) administering the Policy, (3) assuming certain risks in connection with the
Policy, and (4) incurring expenses in distributing the Policy.

We deduct some charges from each premium payment. We deduct certain other
charges monthly from both the Fixed Account and the Variable Account. We also
assess a charge for each partial withdrawal and we may assess a charge for each
transfer.

We may realize a profit on one or more of these charges, such as the
mortality and expense risk charge. We may use any such profits for any proper
corporate purpose, including, among other things, payments of sales expenses.

The Surrender Charge usually exceeds the Accumulation Value in the early
Policy Years. This occurs because the Surrender Charge is usually more than the
accumulated Minimum Monthly Premiums less Policy charges in the early Policy
Years.

PREMIUM EXPENSE CHARGE

We deduct the Premium Expense Charge from each premium payment. The Premium
Expense Charge equals 5.00% of each premium payment in Policy Years 1 to 10 and
3% (guaranteed not to

exceed 5.00%) in Policy Years after that. It consists of a sales charge and a
premium tax charge. The amount remaining after we deduct the Premium Expense
Charge is called the Net Premium.

SALES CHARGE. A sales charge of 2.50% of each premium payment is deducted
during the first ten Policy Years and a sales charge of .50% (guaranteed not to
exceed 2.5%) is currently deducted after the tenth Policy Year. In addition, we
may charge a contingent deferred sales charge if you surrender the Policy or the
Policy lapses. See "Deductions and Charges -- Surrender Charge."

PREMIUM TAX CHARGE. Various states and subdivisions impose a tax on
premiums received by insurance companies. Premium taxes vary from state to
state. A charge of 2.50% of each premium payment will be deducted by us. The
deduction represents an amount we consider necessary to pay all taxes imposed by
the state and any subdivisions.

PREMIUM PROCESSING CHARGE. We may make a charge of up to $2.00 per premium
payment to reimburse us for the cost of collecting and processing premiums,
although we currently make no such charge. If a premium processing charge is
made, it will be deducted from premium payments before the percentage deductions
for sales charge and premium taxes.

MONTHLY DEDUCTION

We deduct the charges described below from the Accumulation Value of the
Policy on a monthly basis. The total of these charges is called the Monthly
Deduction.

We will deduct the Monthly Deduction on each Monthly Anniversary from the
Fixed Account and the Sub-Accounts of the Variable Account on a proportionate
basis depending on their relative Accumulation Values at that time. For purposes
of determining these proportions, we reduce the Fixed Accumulation Value by the
Loan Amount. Because the cost of insurance portion of the Monthly Deduction can
vary from month to month, the Monthly Deduction itself will vary in amount from
month to month.

If the Cash Surrender Value is not sufficient to cover the Monthly
Deduction on a Monthly Anniversary, the Policy may lapse. See "Death Benefit
Guarantee" and "Policy Lapse and Reinstatement."

COST OF INSURANCE. We will determine the monthly cost of insurance by
multiplying the applicable cost of insurance rate or rates by the net amount at
risk under the Policy. The net amount at risk under the Policy for a Policy
Month is (1) the Death Benefit at the beginning of the Policy Month divided by
1.004074 (which reduces the net amount at risk, solely for purposes of computing
the cost of insurance, by taking into account assumed monthly earnings at an
annual rate of 5%), less (2) the Accumulation Value at the beginning of the
Policy Month (reduced by any charges for rider benefits). As a result, the net
amount at risk may be affected by changes in the Accumulation Value or in the
Death Benefit.

The Rate Class of an Insured may affect the cost of insurance. A Rate Class
is a group of Insureds we determine based upon our expectation that they will
have similar mortality experience. We currently place Insureds into standard
Rate Classes or into substandard Rate Classes that involve a higher mortality
risk. In an otherwise identical Policy, an Insured in the standard Rate Class
will have a lower cost of insurance than an Insured in a Rate Class with higher
mortality risks.

If there is an increase in the Face Amount and the Rate Class applicable to
the increase is different from that for the initial Face Amount or any prior
requested increases in Face Amount, the net amount at risk will be calculated
separately for each Rate Class. For purposes of determining the net amount at
risk for each Rate Class, we will first assume the Accumulation Value to be part
of the initial Face Amount. If the Accumulation Value is greater than the
initial Face Amount, it will then be assumed to be part of each increase in
order, starting with the first increase.

We base cost of insurance rates on the sex, Issue Age, Policy Year and Rate
Class(es) of the Insured. The actual monthly cost of insurance rates will
reflect our expectations as to future experience. They will not, however, be
greater than the guaranteed cost of insurance rates shown in the Policy, which
are based on the Commissioner's 1980 Standard Ordinary Mortality Tables for
smokers or nonsmokers, respectively.

MONTHLY ADMINISTRATIVE CHARGE. Each month we deduct an administrative
charge of $8.25 which is guaranteed not to exceed $12.00 each month.

MONTHLY MORTALITY AND EXPENSE RISK CHARGE. Each month during the first 10
Policy Years we will deduct a charge equal to 1/12 of .90% of the Variable
Accumulation Value. Each month thereafter we will deduct a charge equal to 1/12
of .30% of the Variable Accumulation Value, guaranteed not to exceed 1/12 of
.60% for the duration of the Policy. The mortality and expense risk we assume is
that our Cost of Insurance charges and other expense charges are not sufficient
to cover our costs of death benefits, and any other expenses incurred in issuing
and administering the Policies.

OPTIONAL INSURANCE BENEFIT CHARGES. Each month we deduct charges for any
optional insurance benefits added to the Policy by rider. See "General
Provisions -- Optional Insurance Benefits."

SURRENDER CHARGE

GENERAL. During the first 15 Policy Years and during the first 15 years
following any requested increase in Face Amount, there is a Surrender Charge if
you surrender the Policy or the Policy lapses. The Surrender Charge has two
parts -- The Contingent Deferred Administrative Charge and the Contingent
Deferred Sales Charge which are determined separately. The Surrender Charge will
not be affected by any decrease in Face Amount or by any change in Face Amount
resulting from a change in the Death Benefit Option. The maximum amount of the
Surrender Charge is $50.60 per thousand for a male Insured at Issue Age 61.

CONTINGENT DEFERRED ADMINISTRATIVE CHARGE. The maximum Contingent Deferred
Administrative Charge for the Initial Face Amount or any requested increase in
Face Amount is determined on the Policy Date or on the effective date of any
requested increase in Face Amount respectively. The maximum charge for the
Initial Face Amount during the first five Policy Years is $5.00 per $1,000 of
Face Amount, which decreases thereafter in equal monthly increments until it
becomes zero at the end of the 15 year period. For any requested increase in
Face Amount, an additional Contingent Deferred Administrative Charge begins at
zero, increases in equal monthly increments until it reaches the maximum after
three years, and then remains level for the next two years. Beginning five years
after the effective date of the increase, the additional Contingent Deferred
Administrative Charge reduces in equal monthly increments until it becomes zero
at the end of 15 years.

The Contingent Deferred Administrative Charge for the Initial Face Amount
or a requested increase in Face Amount can be determined by multiplying (a)
$5.00 by (b) the Initial Face Amount or the Face Amount of the increase, as the
case may be, and by (c) the applicable percentage from the Surrender Charge
Percentage Table shown on page 20, and then dividing this amount by 1000.

The calculation of the additional Contingent Deferred Administrative Charge
for a requested increase in Face Amount is the same as for the initial Face
Amount, except that (a) the charges are based on the amount of the increase, (b)
the years and months are measured from the effective date of the increase, and
(c) different surrender percentage factors apply.

CONTINGENT DEFERRED SALES CHARGE. The maximum Contingent Deferred Sales
Charge for the initial Face Amount or any requested increase in Face Amount will
be determined on the Policy Date or on the effective date of any requested
increase respectively. For the initial Face Amount, the Contingent Deferred
Sales Charge will remain level for the first five years in the relevant 15 year
period, and then reduces in equal monthly increments until it becomes zero at
the end of 15 years. For any requested increase in Face Amount, an additional
Contingent Deferred Sales Charge begins at zero, increases in equal monthly
increments until it reaches the maximum after three years, and then remains
level for the next two years. Beginning five years after the effective date of
the increase, the additional Contingent Deferred Sales Charge reduces in equal
monthly increments until it becomes zero at the end of 15 years. The Contingent
Deferred Sales Charge will vary depending upon the Insured's Age (on the Policy
Date or on the effective date of an increase in Face Amount) and the Insured's
Sex.

If you surrender the Policy during the first two Policy Years or during
the first 24 months following a requested increase in Face Amount, you may be
entitled to a refund of a portion of the Contingent Deferred Sales Charge. See
"Sales Charge Refund."

The Contingent Deferred Sales Charge will be equal to the lesser of:

(a) 47.50% of the premiums attributable to the initial Face Amount of the
Policy and any premiums attributable to an increase in Face Amount; or

(b) The result of the Contingent Deferred Sales Charge calculation
described below.

CONTINGENT DEFERRED SALES CHARGE CALCULATION. For purposes of (b) above,
the Contingent Deferred Sales Charge for the initial Face Amount or any
requested increase in Face Amount is determined by multiplying (i) the
applicable Charge per $1,000 of Face Amount from Appendix C by (ii) the Initial
Face Amount or the Face Amount of the increase, as applicable, and by (iii) the
applicable percentage from the Surrender Charge Percentage Table on the next
page, and then dividing this amount by 1000.

The additional Contingent Deferred Sales Charge for requested increases in
Face Amount will be calculated in the same manner as illustrated in the example
above. However, for purposes of determining the amount in (a) in the above
example, the cumulative premium paid is replaced by the premiums attributable to
the increase in Face Amount. The premiums attributable to the requested increase
will consist of a defined proportion of the existing Accumulation Value on the
date of the increase, plus an equal proportion of all premium payments made
after the effective date of the increase. The defined proportion is determined
by dividing (a) the Surrender Charge Guideline for the requested increase, by
(b) the sum of the Surrender Charge Guidelines for the Initial Face Amount and
each requested increase in Face Amount.

The Surrender Charge Guideline for the initial Face Amount or any requested
increase in Face Amount is determined by multiplying (i) the applicable
Guideline per $1,000 from Appendix D by (ii) the Initial Face Amount or the Face
Amount of the increase, as applicable, and dividing by 1000.

MASSACHUSETTS, MONTANA AND PENNSYLVANIA RESIDENTS. Appendix C and Appendix
D and the preceding descriptions of the Contingent Deferred Sales Charge do not
apply to policies issued in Massachusetts, Montana and Pennsylvania. The
Contingent Deferred Sales Charge applied to Policies issued in Massachusetts and
Montana is not affected by the Insured's sex. Therefore, the Contingent Deferred
Sales Charge made on Policies issued in these two states will differ from the
charge made in other states. In Pennsylvania, the Insured's sex will be a factor
in determining the amount of Contingent Deferred Sales Charge applied to a
Policy, but the charge will differ from the charge described above.

SURRENDER CHARGE PERCENTAGE TABLE

THE FOLLOWING PERCENTAGES OF THE
SURRENDER CHARGE WILL BE PAYABLE FOR:**
---------------------------------------
IF SURRENDER OR LAPSE OCCURS IN INITIAL FACE FACE AMOUNT
THE LAST MONTH OF POLICY YEAR:* AMOUNT INCREASES
------------------------------- -------------- -------------
1 100% 33%
2 100% 67%
3 100% 100%
4 100% 100%
5 100% 100%
6 90% 90%
7 80% 80%
8 70% 70%
9 60% 60%
10 50% 50%
11 40% 40%
12 30% 30%
13 20% 20%
14 10% 10%
15 and later 0% 0%

*For requested increases, years are measured from the date of the increase.

**The percentages reduce equally for each Policy Month during the years shown.
For example, during the seventh Policy Year, the percentage reduces equally
each month from 90% at the end of the sixth Policy Year to 80% at the end of
the seventh Policy Year.

SALES CHARGE REFUND

During the first two Policy Years and during the first 24 Policy Months
following the effective date of any requested increase in Face Amount, we may be
required to refund a portion of the Contingent Deferred Sales Charge if you
surrender the Policy. This refund is called the Sales Charge Refund.

Any amount used in the calculation described below will be determined on
the effective date of surrender.

INITIAL FACE AMOUNT. If the Policy is surrendered during the first two
Policy Years, a Sales Charge Refund will be made to the extent that the total
sales charge deducted (the sales charge deducted from each premium payment and
the Contingent Deferred Sales Charge) exceeds (i) 30% of actual premium payments
made during the first Policy Year up to the amount of the Surrender Charge
Guideline (see below) for the initial Face Amount, plus (ii) 9% of any actual
premium payments made that exceed (i). In addition, the amount of the refund
will never decrease as the result of the payment of a premium. After the second
Policy Year, there is no Sales Charge Refund with respect to the initial Face
Amount.

As described above, the Sales Charge Refund is calculated based on
percentages of premium payments. While the total sales charge deducted under the
Policy is not based solely on premium payments, it is possible to translate the
total sales charge into a percentage of premium payments. In general, the total
sales charge deducted (before calculating the Sales Charge Refund) will be 50%
of each premium payment until premium payments reach a certain level. The level
ranges from approximately 35% of a Surrender Charge Guideline for a male age 0,
up to approximately 111% of a Surrender Charge Guideline for a male age 40, and
down to approximately 44% of a Surrender Charge Guideline for a male age 75.
After premium payments reach this level, the total sales charge will equal 2.50%
of each additional premium payment. During the two Policy Years when the Sales
Charge Refund applies, however, the total sales charge will be limited to 30% of
actual first year premium payments up to the amount of a Surrender Charge
Guideline, 9% of actual premium payments until payments reach the level where
the total sales charge drops to 2.50%, and 2.50% of any additional premium
payments beyond that level. If you have any questions regarding the amount of
your Sales Charge Refund, please call us.

Due to the Sales Charge Refund, the total sales charge for the initial Face
Amount will be significantly less if a Policy is surrendered during the first
two Policy Years rather than shortly thereafter.

The Surrender Charge Guideline will equal the amount obtained by dividing
the Face Amount or the amount of the increase, as the case may be, by $1,000,
and multiplying the result by the applicable factor from Appendix D.

REQUESTED INCREASES IN FACE AMOUNT. If you cancel a requested increase in
Face Amount during the first 24 Policy Months following the increase (but after
the free look period -- see "Free Look and Conversion Rights -- Free Look
Rights"), and the Policy is surrendered at any time thereafter, a Sales Charge
Refund will be made to the extent that the total sales charge for the increase
(the sales charge deducted from the portion of premiums attributable to the
increase and the Contingent Deferred Sales Charge for the increase) exceeds (i)
30% of the premiums attributable to the increase in the 12 Policy Months
following the increase up to the amount of the Surrender Charge Guideline for
the increase (see immediately preceding paragraph), plus (ii) 9% of any premiums
attributable to the increase that exceed (i). In addition, the amount of the
refund will never decrease as the result of the payment of a premium. This
refund is only available if the increase is cancelled within the 24 Policy
Months following its effective date, and the Policy is subsequently surrendered.
No refund is available if the increase is cancelled after the 24-month period.

Calculating total sales charge deducted for an increase as a percentage of
premiums attributable to the increase is, in general, the same as described
above for the initial Face Amount. Thus, due to the Sales Charge Refund, the
total sales charge for a requested increase in Face Amount may be significantly
less if the increase is cancelled during the 24-month period following the
increase rather than shortly thereafter. If you have any questions regarding the
amount of your Sales Charge Refund, please call us.

For the purposes of the preceding paragraph, the premiums attributable to
the increase will be determined as described in the section entitled "Deductions
and Charges -- Surrender Charge -- Calculation of Contingent Deferred Sales
Charge," which means that, in effect, a proportionate amount of the existing
Accumulation Value on the effective date of the increase will be deemed to be a
premium payment for the increase, and subsequent premium payments will be
prorated.

EFFECT OF SALES CHARGE REFUND. The Sales Charge Refund will be applied to
maintain the Policy in force when the Cash Surrender Value is insufficient to
cover the Monthly Deduction. If the remaining

Sales Charge Refund (not already applied to keep the Policy in force) is
insufficient to cover the Monthly Deduction, this remaining Sales Charge Refund
may be applied for the grace period under the Policy. See "Policy Lapse and
Reinstatement." Any Sales Charge Refund not so applied will be refunded to you
upon the total surrender of the Policy.

PARTIAL WITHDRAWAL AND TRANSFER CHARGES

We currently make no charge for the first 24 transfers in a Policy Year and
assess a $25 charge for each subsequent transfer. We currently assess a $10.00
charge for each partial withdrawal. These charges are guaranteed not to exceed
$25.00 per transfer or partial withdrawal for the duration of the Policy. The
transfer charge will not be imposed on transfers that occur as a result of
Policy loans or the exercise of conversion rights.

MODIFICATION OF CHARGES

ReliaStar may modify any of the charges under the Policy, as well as the
minimum Face Amount set forth in this Prospectus, because of special
circumstances that result in lower sales, administrative, or mortality expenses.
For example, special circumstances may exist in connection with group or
sponsored arrangements, sales to our policyholders or those of affiliated
insurance companies, or sales to employees or clients of members of our
affiliated group of insurance companies. The amount of any reductions will
reflect the reduced sales effort and administrative costs resulting from, or the
different mortality experience expected as a result of, the special
circumstances. Modifications will not be unfairly discriminatory against any
person, including the affected Policy owners and owners of all other policies
funded by the Variable Account.

Persons purchasing under a sponsored arrangement may apply for simplified
underwriting. If we approve such simplified underwriting, the cost of insurance
may increase as a result of higher than anticipated mortality experience.
However, any such increase will not cause the cost of insurance charge to exceed
the guaranteed rates set forth in the Policy.

We and certain of our insurance company affiliates offer other variable
life insurance policies which also invest in the Funds. These policies may have
charges that could affect the value of the sub-accounts and may offer different
benefits more suitable to your needs. To obtain more information about these
policies, contact your agent or call 877-884-5050.

THE VARIABLE ACCOUNT

On October 11, 1984, we established the ReliaStar Select*Life Variable
Account as one of our separate accounts pursuant to the laws of the State of
Minnesota. The Variable Account:

* will receive and invest the Net Premiums paid and allocated to it
under this Policy;

* currently receives and invests net premiums for other classes of
flexible premium variable life insurance policies we issue and may do
so for additional classes in the future;

* meets the definition of a "separate account" under the federal
securities laws; and

* is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940 ("1940 Act"). Such registration does
not involve supervision by the SEC of the management or investment
policies or practices of the Variable Account, us, or the Funds.

We own the Variable Account's assets. However, Minnesota law provides that
we cannot charge the Variable Account with liabilities arising out of any other
business we may conduct. We are required to maintain assets which are at least
equal to the reserves and other liabilities of the Variable Account. We may
transfer assets which exceed these reserves and liabilities to our general
account (the Fixed Account).

INVESTMENTS OF THE VARIABLE ACCOUNT

There are currently 37 investment options (Funds) available under the
Variable Account. However, we only permit you to participate in a maximum of 17
investment options over the lifetime of your Policy. You should also read the
Funds' prospectuses for more detailed information, particularly because several
of the Funds and portfolios may have objectives that are quite similar. Please
call the telephone number listed on the first page of this Prospectus to request
a Fund's prospectus. THERE IS NO ASSURANCE THAT ANY FUND WILL ACHIEVE ITS
INVESTMENT OBJECTIVE(S).

Certain Funds offered under this Policy have investment objectives and
policies similar to the investment objectives and policies of other funds
managed by the Fund's investment adviser. The investment results of a Fund,
however, may be higher or lower than those of other funds managed by the same
adviser. There can be no assurance, and no representation is made, that the
investment results of any Fund will be comparable to those of another fund
managed by the same investment adviser.

Each Fund is an open-end management investment company. The investment
company receives investment advice from a registered investment adviser who,
other than ING Pilgrim Investments, LLC, is not associated with us.

PERFORMANCE INFORMATION

Performance information for the Sub-Accounts of the Variable Account and
the Funds available for investment by the Variable Account may appear in
advertisements, sales literature, or reports to Policy owners or prospective
purchasers. Such performance information for the Sub-Accounts will reflect
deductions of Fund expenses and be adjusted to reflect the Monthly Mortality and
Expense Risk Charge, but will not reflect deductions for other Policy expense
charges including the cost of insurance, the Monthly Administrative Charge, the
Premium Expense Charge, or the Surrender Charge or any charges for optional
insurance benefits. We will accompany quotations of performance information for
the Funds by performance information for the Sub-Accounts. Performance
information for the Funds will take into account all fees and charges at the
Fund level, but will not reflect any deductions from the Variable Account (such
as the Monthly Deduction, Surrender Charge, and any Charges for optional
insurance benefits or the Premium Expense Charge). Performance information
reflects only the performance of a hypothetical investment during a particular
time period in which the calculations are based. We may provide performance
information showing total returns and average annual total returns for periods
prior to the date a Sub-Account commenced operation. We will calculate such
performance information based on the assumption that the Sub-Accounts were in
existence for the same periods as those indicated for the Funds, with the level
of charges at the Variable Account level that were in effect at the inception of
the Sub-Accounts.

We provide individualized hypothetical illustrations of Accumulation Value,
Cash Surrender Value and Death Benefit based on historical investment returns of
the Funds. These illustrations will reflect deductions for Fund expenses and
Policy and Variable Account charges, including the Monthly Deduction, Premium
Expense Charge and the Surrender Charge. We will base these hypothetical
illustrations on the actual historical experience of the Funds as if the
Sub-Accounts had been in existence and a Policy issued for the same periods as
those indicated for the Funds. Subject to regulatory approval, we may base these
hypothetical illustrations on either the arithmetic or the weighted average of
Fund expenses reflecting the Fund expenses for the year ending December 31, 2000
and the Sub-Account assets as of December 31, 2000.

We may compare performance of the Sub-Accounts and/or the Funds in
advertisements and sales literature:

* to other variable life insurance issuers in general;

* to the performance of particular types of variable life insurance
policies investing in mutual funds;

* to investment series of mutual funds with investment objectives
similar to each of the Sub-Accounts, whose performance is reported by
Lipper Analytical Services, Inc. and Morningstar, Inc. (independent
services that monitor and rank the performances of variable life
insurance issuers in each of the major categories of investment
objectives on an industry-wide basis), or reported by other series,
companies, individuals or other industry or financial publications of
general interest, such as FORBES, MONEY, THE WALL STREET JOURNAL,
BUSINESS WEEK, BARRON'S, KIPLINGER'S, and FORTUNE; and

* to the Standard & Poor's Index of 500 common stocks and the Dow
Jones Industrials, which are widely used measures of stock market
performance.

We may also compare the performance of each Sub-Account to other widely
recognized indices. Unmanaged indices may assume the reinvestment of dividends,
but typically do not reflect any "deduction" for the expense of operating or
managing an investment portfolio.

DEATH BENEFIT

If the Insured dies while the Policy is in force, we will pay the Death
Benefit reduced by any Loan Amount and unpaid Monthly Deductions. This amount is
called the proceeds. We may pay all or part of the proceeds in cash to your
beneficiaries or under one or more of the settlement options we offer. See
"General Provisions -- Settlement Options."

GUIDELINE PREMIUM TEST. The Death Benefit will be determined with reference
to the requirements for the Guideline Premium Test for qualifying a Policy as a
life insurance contract under Code Section 7702(a)(2). Under these requirements,
the sum of the premiums paid under a Policy may not exceed the "guideline
premium limitations," as defined in Code Section 7702(a). The Death Benefit at
any time is never less than the Accumulation Value multiplied by the Corridor
Percentages, which vary according to the Age of the Insured, (as defined in Code
Section 7702(d)).

CORRIDOR PERCENTAGE TABLE

CORRIDOR CORRIDOR CORRIDOR
INSURED'S AGE ON PERCENTAGE OF INSURED'S AGE ON PERCENTAGE OF INSURED'S AGE ON PERCENTAGE OF
PREVIOUS POLICY ACCUMULATION PREVIOUS POLICY ACCUMULATION PREVIOUS POLICY ACCUMULATION
ANNIVERSARY VALUE ANNIVERSARY VALUE ANNIVERSARY VALUE
---------------- ------------- ---------------- ------------- ---------------- -------------

40 or younger 250% 54 157 68 117
41 243 55 150 69 116
42 236 56 146 70 115
43 229 57 142 71 114
44 222 58 138 72 113
45 215 59 134 73 111
46 209 60 130 74 109
47 203 61 128 75-90 105
48 197 62 126 91 104
49 191 63 124 92 103
50 185 64 122 93 102
51 178 65 120 94 101
52 171 66 119 95 or older 100
53 164 67 118

DEATH BENEFIT OPTIONS

The Policy provides two Death Benefit Options as shown below. You choose
the Death Benefit Option on the application for the Policy. Subject to certain
limitations, you can change the Death Benefit Option after issuance of the
Policy. See "Death Benefit -- Change in Death Benefit Option."

The Death Benefit prior to Age 95 depends on the Death Benefit Option
chosen as described below. At Age 95, the paid-up life insurance option is
automatically applied, and your death benefit may change. See "Paid-Up Life
Insurance Option".

OPTION A. (Level Amount Option.) Prior to Age 95, the Death Benefit is the
greater of the current Face Amount of the Policy or the Corridor Percentage of
Accumulation Value on the Valuation Date on or next following the date of the
Insured's death. Under Option A, the Death Benefit will remain level unless the
corridor percentage of Accumulation Value exceeds the current Face Amount, in
which case the amount of the Death Benefit will vary as the Accumulation Value
varies.

OPTION B. (Variable Amount Option.) Prior to Age 95, the Death Benefit is
equal to the greater of the current Face Amount plus the Accumulation Value of
the Policy, or the corridor percentage of the Accumulation Value on the
Valuation Date on or next following the date of the Insured's death. Under
Option B, the amount of the Death Benefit will always vary as the Accumulation
Value varies.

WHICH DEATH BENEFIT OPTION TO CHOOSE

If you prefer to have premium payments and favorable investment performance
reflected partly in the form of an increasing Death Benefit, you should choose
the Variable Amount Option. If you are satisfied with the amount of your
existing insurance coverage and prefer to have premium payments and favorable
investment performance reflected to the maximum extent in the Accumulation Value
and lower cost of insurance charges, you should choose the Level Amount Option.
If you require a specific Death Benefit which would include a return of the
premium paid, such as under an employer sponsored benefit plan, Option C may
meet your needs.

REQUESTED CHANGES IN FACE AMOUNT

Subject to certain limitations, you may request an increase or decrease in
the Face Amount after the first Policy Year. We reserve the right to limit
increases and decreases in the Face Amount during the

first two Policy Years. Changes in the Face Amount may have tax consequences.
You should consult a tax adviser before requesting a change in Face Amount.

INCREASES. For an increase in the Face Amount, you must submit a written
request to us. We may also require additional evidence of insurability
satisfactory to us. The effective date of the increase will be the Monthly
Anniversary on or next following our approval of the increase. The increase may
not be less than $5,000. We will currently permit increases up to the Insured's
Age 80, if our requirements are met. We will deduct any charges associated with
the increase (the increases in the cost of insurance and the Surrender Charge
upon lapse or total surrender -- see "Effect of Requested Changes in Face
Amount" below) from the Accumulation Value, whether or not you pay an additional
premium in connection with the increase. You will be entitled to limited free
look rights with respect to requested increases in Face Amount. See "Free Look
Rights."

DECREASES. For a decrease in the Face Amount, you must submit a written
request to us. Any decrease in the Face Amount will be effective on the Monthly
Anniversary on or next following our receipt of a written request. You cannot
request a decrease in the Face Amount more frequently than once every six
months. The Face Amount remaining in force after any requested decrease may not
be less than the Minimum Face Amount shown in the Policy. If, following a
decrease in Face Amount, the Policy would no longer qualify as life insurance
under Federal tax law (see "Federal Tax Matters -- Tax Status of the Policy"),
we will limit the decrease to the extent necessary to meet these requirements.

For purposes of determining the cost of insurance, we will apply decreases
in the Face Amount to reduce the current Face Amount in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

By reducing the current Face Amount in this manner, the Rate Class
applicable to the most recent increase in Face Amount will be eliminated first,
then the Rate Class applicable to the next most recent increase, and so on, for
the purposes of calculating the cost of insurance. This assumption will affect
the cost of insurance under the Policy only if different Rate Classes have been
applied to the current Face Amount. A Rate Class is a group of Insureds we
determine based upon our expectation that they will have similar mortality
experience. We currently place Insureds into standard Rate Classes or into
substandard Rate Classes that involve a higher mortality risk (for example, a
200% Rate Class or a 300% Rate Class). In an otherwise identical Policy, an
Insured in the standard Rate Class will have a lower cost of insurance than an
Insured in a substandard Rate Class with higher mortality risks. See "Deductions
and Charges -- Monthly Deduction."

For example, assume that the initial Face Amount was $200,000 with a
standard Rate Class, and that successive increases of $50,000 (at a Rate Class
of 200%) and $100,000 (at a Rate Class of 300%) were added. If a decrease of
$100,000 or less is requested, the amount of insurance at a 300% Rate Class will
be reduced first. If a decrease of more than $100,000 is requested, the amount
at a 300% Rate Class will be eliminated, and the excess over $100,000 will next
reduce the amount of insurance at a 200% Rate Class.

EFFECT OF REQUESTED CHANGES IN FACE AMOUNT. An increase or decrease in Face
Amount will affect the Monthly Deduction because the cost of insurance depends
upon the Face Amount. The charge for certain optional insurance benefits may
also be affected. See "Deductions and Charges -- Monthly Deduction." An increase
in the Face Amount will increase the Surrender Charge and Monthly Amount Charge,
but a decrease in the Face Amount will not reduce the Surrender Charge or the
Monthly Amount Charge. The Surrender Charge is, however, imposed only upon lapse
or total surrender of the Policy and not upon a requested decrease in Face
Amount. See "Deductions and Charges -- Surrender Charge."

An increase in the Face Amount will increase the Minimum Monthly Premium as
of the effective date of the increase. Therefore, additional premium payments
may be required to maintain the Death Benefit Guarantee. A decrease in the Face
Amount will reduce the Minimum Monthly Premium as of the effective date of the
decrease. A Face Amount decrease may also shorten the Death Benefit Guarantee
Period if a term insurance rider is attached. See "Death Benefit Guarantee."

The additional Surrender Charge on a requested increase in the Face Amount
will reduce the Cash Surrender Value (which is the Accumulation Value less any
Surrender Charge, Loan Amount and unpaid Monthly Deductions). If the resulting
Cash Surrender Value is not sufficient to cover the Monthly Deduction, the
Policy may lapse unless the Death Benefit Guarantee is in effect. See "Policy
Lapse and Reinstatement -- Lapse" and "Death Benefit Guarantee."

INSURANCE PROTECTION

As your insurance needs change, you may increase or decrease the pure
insurance protection provided by the Policy (that is, the difference between the
Death Benefit and the Accumulation Value) in one of several ways. These ways
include:

* increasing or decreasing the Face Amount of insurance;

* changing the level of premium payments; and

* making a partial withdrawal under the Policy.

Although the consequences of each of these methods will depend upon the
individual circumstances, they may be generally summarized as follows:

* AN INCREASE IN THE FACE AMOUNT (which is generally subject to
underwriting approval -- see "Death Benefit -- Requested Changes in
Face Amount") will likely increase the amount of pure insurance
protection, depending on the amount of Accumulation Value and the
resultant corridor percentage limitation. If the insurance protection
is increased, the Policy charges generally will increase as well.

* A DECREASE IN THE FACE AMOUNT will, subject to the corridor percentage
limitations (see "Death Benefit -- Death Benefit Options"), decrease
the pure insurance protection without reducing the Accumulation Value.
If the Face Amount is decreased, the Cost of Insurance charges
generally will decrease as well. (Note that the Surrender Charge will
not be reduced. See "Deductions and Charges -- Surrender Charge.")

* A CHANGE IN THE LEVEL OF PREMIUM can have a variety of effects, as
follows.

Under the Level Amount Option, until the corridor percentage of
Accumulation Value exceeds the Face Amount, (a) an increased
level of premium payments will reduce the amount of pure
insurance protection, and (b) a reduced level of premium payments
will increase the amount of pure insurance protection.

Under the Variable Amount Option, until the corridor percentage
of Accumulation Value exceeds the Face Amount plus the
Accumulation Value, the level of premium payments will not affect
the amount of pure insurance protection. (However, both the
Accumulation Value and the Death Benefit will be increased if
premium payments are increased, and reduced if premium payments
are reduced.)

Under any Death Benefit Option, if the Death Benefit is the
corridor percentage of Accumulation Value, then (a) an increased
level of premium payments will increase the amount of pure
insurance protection (subject to underwriting approval -- see
"Payment and Allocation of Premiums -- Amount and Timing of
Premiums"), and (b) a reduced level of premium payments will
reduce the pure insurance protection.

* A PARTIAL WITHDRAWAL will reduce the Death Benefit. See "Surrender
Benefits -- Partial Withdrawal." However, it has a limited effect on
the amount of pure insurance protection and charges under the Policy,
because the decrease in the Death Benefit is usually equal to the
amount of Accumulation Value withdrawn. The primary use of a partial
withdrawal is to withdraw Accumulation Value. Furthermore, it results
in a reduced amount of Accumulation Value and increases the
possibility that the Policy will lapse.

YOU SHOULD CONSIDER THE TECHNIQUES DESCRIBED IN THIS SECTION FOR CHANGING
THE AMOUNT OF PURE INSURANCE PROTECTION UNDER THE POLICY (FOR EXAMPLE, CHANGING
THE FACE AMOUNT, MAKING A PARTIAL WITHDRAWAL, AND CHANGING THE AMOUNT OF PREMIUM
PAYMENTS) TOGETHER WITH THE OTHER RESTRICTIONS AND CONSIDERATIONS DESCRIBED
ELSEWHERE IN THIS PROSPECTUS.

CHANGING THE DEATH BENEFIT OPTION

After the second Policy Year, you may change the Death Benefit Option. You
must submit a written request to change the Death Benefit Option. A change in
the Death Benefit Option will also change the Face Amount. If the Death Benefit
Option is changed from the Level Amount Option to the Variable Amount Option,
the Face Amount will be decreased by an amount equal to the Accumulation Value
on the effective date of the change. You cannot change from the Level Amount
Option to the Variable Amount Option if the resulting Face Amount would fall
below the minimum Face Amount (currently $25,000).

If you change the Death Benefit Option from the Variable Amount Option to
the Level Amount Option, we will increase the Face Amount by an amount equal to
the Policy's Accumulation Value on the effective date of the change.

An increase or decrease in Face Amount resulting from a change in the Death
Benefit Option will affect the future Monthly Deductions because the cost of
insurance depends upon the Face Amount. A change in the Face Amount resulting
from a change in the Death Benefit Option may also affect the charge for certain
optional insurance benefits. See "Deductions and Charges -- Monthly Deduction."
However, a Face Amount change resulting from a Death Benefit Option change will
not affect the Surrender Charge.

Changes in the Death Benefit Option do not currently require additional
evidence of insurability.

Changing the Death Benefit Option may have tax consequences. You should
consult a tax adviser before changing the Death Benefit Option.

ACCELERATED BENEFIT RIDER

Under certain circumstances, the Accelerated Benefit Rider allows a Policy
owner to accelerate benefits from the Policy that we otherwise would pay upon
the Insured's death. The benefit may vary state-by-state and you should consult
your registered representative as to whether and to what extent the rider is
available in a particular state and on any particular Policy. Generally, we will
provide an Accelerated Benefit if the Insured has a terminal illness that will
result in the death of the Insured within 12 months, as certified by a
physician. The Accelerated Benefit will not be more than 50% of the amount that
would be payable at the death of the Insured. The Accelerated Benefit will first
be used to pay off any outstanding Policy loans and interest due. The remainder
of the Accelerated Benefit will be paid in a lump sum to the Policy owner.
Limitations, as described in the Accelerated Benefit Rider, may apply.

We will establish a lien against the Policy for the amount of the
Accelerated Benefit plus an administrative charge, plus interest on the lien. We
will first use any proceeds from the Policy to repay this lien. We will reduce
your access to the Cash Value by the amount of the lien. We also will reduce the
proceeds payable to the beneficiary by the amount of the lien. We will assess an
administrative charge of up to $300 at the time we pay the Accelerated Benefit.
The Accelerated Benefit will not affect the premium payable on the Policy.
Receipt of a benefit under the Accelerated Benefit Rider may give rise to
Federal or state income tax. Consult a competent tax advisor for further
information.

The above information is not a complete summary of the Rider. All of the
terms and provisions of the Accelerated Benefit Rider are set forth in the Rider
and you should refer to the Rider in order to fully ascertain its benefits and
limitations.

PAYMENT AND ALLOCATION OF PREMIUMS

ISSUING THE POLICY

An individual applying for a Policy must complete an application and
personally deliver it to our licensed agent. We will only issue a Policy to an
applicant Age 80 or less who supplies evidence of insurability satisfactory to
us. The minimum Face Amount is currently $150,000 for issue ages 0 through 44
and $100,000 for issue ages 45 through 80, but we reserve the right to specify a
different minimum Face Amount for issuing a new Policy. Acceptance is subject to
our underwriting rules and we reserve the right to reject an application for any
reason permitted by law.

COVERAGE. Coverage under a Policy begins on the later of the Issue Date or
the date we receive at least the minimum initial premium (see immediately
following section). In general, if the applicant pays

at least the minimum initial premium with the application, the Issue Date will
be the later of the date of the application or the date of any medical
examination required by our underwriting procedures. However, if underwriting
approval has not occurred within 45 days after we receive the application or if
you authorize premiums to be paid by bank account monthly deduction, the Issue
Date will be the date of underwriting approval.

This Policy may be used with certain tax-qualified retirement plans. The
Policy includes attributes such as tax deferral on accumulated earnings.
Qualified retirement plans provide their own tax deferral benefits; the purchase
of this Policy does not provide additional tax deferral benefits beyond those
provided in the qualified plan. Accordingly, if you are purchasing this Policy
through a qualified plan, you should consider purchasing this Policy for its
Death Benefit and other non-tax related benefits. Please consult a tax advisor
for information specific to your circumstances to determine whether the Policy
is an appropriate investment for you.

If you authorize premiums to be paid by government allotment, the Issue
Date generally will be, subject to our underwriting approval, the first day of
the month in which we receive the first Minimum Monthly Premium through
government allotment, whether or not a Minimum Monthly Premium is collected with
the application. If a Minimum Monthly Premium is collected with the application,
it will be allocated to the Sub-Accounts of the Variable Account and the Fixed
Account on the Valuation Date next following the Issue Date.

MINIMUM INITIAL PREMIUM. The minimum initial premium is three Minimum
Monthly Premiums (see "Death Benefit Guarantee"). If, however, you authorize
premiums to be paid by bank account monthly deduction or government allotment,
we will accept one Minimum Monthly Premium together with the required
authorization forms. The Minimum Monthly Premium is specified in the Policy and
determines the payments required to maintain the Death Benefit Guarantee.

CONDITIONAL RECEIPT

If you make the first full modal premium payment with your application, you
may receive a conditional receipt. As described in your application, there are
various conditions associated with a conditional receipt. If you satisfy those
conditions, the insurance under the terms of your Policy will take effect as of
the date that you complete all required parts of the application, medical
examinations and tests or as of the date of issue that you request, if later.
Please review your application for details.

ALLOCATING PREMIUMS

You may choose the initial allocation of your Net Premiums (your Gross
Premiums less the Premium Expense Charge) to the Fixed Account and/or to the
Sub-Accounts of the Variable Account on the application for the Policy.

You may change the premium allocation at any time by notifying us in
writing. Changes will not be effective until the date we receive your request
and will only affect premiums we receive on or after that date. The new premium
allocation may be 100% to any Account or divided in whole percentage points
totaling 100%. We reserve the right to adjust any allocation to eliminate
fractional percentages. Changing the current premium allocation will not affect
the allocation of existing Accumulation Value.

CREDITING NET PREMIUMS. We will credit Net Premiums on the latest of the
following dates:

* The Valuation Date on which we receive the premium.

* The Valuation Date following the date of underwriting approval.

* The Valuation Date on or next following the Policy Date.

* The Valuation Date on or next following the date we receive at least
the required minimum initial premium payment.

* In the case of Policies issued under government allotment programs,
the Valuation Date next following the Issue Date.

Until the date on which Net Premiums are credited as described above, we
will hold premium payments in our General Account. No interest will be earned on
these premium payments during this period of time.

REFUNDING PREMIUMS. We will return all premiums paid without interest if
any of the following occur:

* We send notice to the applicant that the insurance is declined.

* The applicant refuses an offer for an alternative policy.

* The applicant does not supply required medical exams or tests within
30 days of the date of the application.

* The applicant returns the Policy under the limited free look right.
See "Free Look and Conversion Rights -- Free Look Rights."

AMOUNT AND TIMING OF PREMIUMS

The amount and frequency of premium payments will affect the Accumulation
Value, the Cash Surrender Value, and how long the Policy will remain in force
(including affecting whether the Death Benefit Guarantee is in effect -- see
"Death Benefit Guarantee"). After the initial premium, you may determine the
amount and timing of subsequent premium payments within the following
restrictions:

* In most cases, we will require that you pay cumulative premiums
sufficient to maintain the Death Benefit Guarantee to keep the Policy
in force during at least the first several Policy Years. See "Death
Benefit Guarantee."

* We may choose not to accept any premium less than $25.

* We reserve the right to limit the amount of any premium payment. In
general, during the first Policy Year we will not accept total premium
payments in excess of $250,000 on the life of any Insured, whether
such payments are received on a Policy or on any other insurance
policy issued by us or our affiliates. Also, we will not accept any
premium payment in excess of $50,000 on any Policy after the first
Policy Year. We may waive any of these premium limitations.

* We may require additional evidence of insurability satisfactory to us
if any premium would increase the difference between the Death Benefit
and the Accumulation Value (that is, the net amount at risk). A
premium payment would increase the net amount at risk if at the time
of payment the Death Benefit would be based upon the applicable
corridor percentage of Accumulation Value. See "Death Benefit -- Death
Benefit Options."

* In no event may the total of all premiums paid, both scheduled and
unscheduled, exceed the current maximum premium payments allowed for
life insurance under Section 7702 of the Code. If at any time you pay
a premium that would result in total premiums exceeding the current
maximum premiums allowed, we will only accept that portion of the
premium which would make total premiums equal the maximum. We will
return any part of the premium in excess of that amount, and we will
not accept further premiums until allowed by the current maximum
premium limitations.

* You may pay additional premiums (other than Planned Periodic Premiums)
at any time while the Policy is in force before Age 95. We may limit
the number and amount of these additional payments. However you may
always pay premiums if needed to keep your Policy in force for the
remainder of the current Policy Year.

* If you want to make a large premium payment under this Policy, and you
wish to avoid Modified Endowment Contract classification, you may
contact us in writing before making the payment and we will tell you
the maximum amount which you can pay into the Policy. See "Federal Tax
Matters -- Tax Status of the Policy."

PLANNED PERIODIC PREMIUMS

You may choose a Planned Periodic Premium schedule which indicates a
preference as to future amounts and frequency of payment. You may pay Planned
Periodic Premiums annually, semi-annually, quarterly or, if you choose, you can
pay the Planned Periodic Premiums by bank account monthly deduction or
government allotment.

Your Policy will show the amount and frequency of your initial Planned
Periodic Premium. You may change the Planned Periodic Premium at any time by
written request. We may limit the amount of any increase. Failure to make any
Planned Periodic Premium payment will not, however, necessarily result

in lapse of the Policy. On the other hand, making Planned Periodic Premium
payments will not guarantee that the Policy remains in force. See "Death
Benefit Guarantee" and "Policy Lapse and Reinstatement."

PAYING PREMIUMS BY MAIL

You may pay Planned Periodic Premiums and Unscheduled Additional Premiums
to the Company by mailing the payments to:

ReliaStar Life Insurance Company
P.O. Box 1880
Minneapolis, Minnesota 55480-1880

A payment is received by us when it is received at our offices. After you
have paid your initial premium, we suggest you send premium payments directly to
the Company, rather than through your agent/registered representative, to assure
the earliest crediting date because your premium payments won't be credited
until they get to the Company.

DEATH BENEFIT GUARANTEE

If you meet the requirements described below, we guarantee that we will not
lapse the Policy even if the Cash Surrender Value is not sufficient to cover the
Monthly Deduction that is due. This feature of the Policy is called the "Death
Benefit Guarantee." Each Policy will specify the Death Benefit Guarantee Period.
For a standard rated Policy without any term insurance riders, the Death Benefit
Guarantee Period is the first five Policy Years for issue ages 0-59 and the
first four Policy Years for issue ages 60-80.

In general, the two most significant benefits from the Death Benefit
Guarantee are as follows:

* First, during the early Policy Years, the Cash Surrender Value will
generally not be sufficient to cover the Monthly Deduction, so that
the Death Benefit Guarantee will be necessary to avoid lapse of the
Policy. See "Policy Lapse and Reinstatement". This occurs because the
Surrender Charge usually exceeds the Accumulation Value in these
years. In this regard, you should consider that if you request an
increase in Face Amount, an additional Surrender Charge would apply
for the 15 years following the increase, which could create a similar
possibility of lapse as exists during the early Policy Years.

* Second, to the extent the Cash Surrender Value declines due to poor
investment performance, or due to an additional Surrender Charge after
a requested increase, the Cash Surrender Value may not be sufficient
even in later Policy Years to cover the Monthly Deduction, so that the
Death Benefit Guarantee may also be necessary in later Policy Years to
avoid lapse of the Policy.

Thus, even though the Policy permits premium payments that are less than the
Minimum Monthly Premiums, you may lose the significant protection provided by
the Death Benefit Guarantee by paying less than the Minimum Monthly Premiums.

REQUIREMENTS FOR THE DEATH BENEFIT GUARANTEE

The Death Benefit Guarantee will be in effect if the sum of all premiums
paid minus any partial withdrawals and any loans are equal to or greater than
the sum of the Minimum Monthly Premiums since the Policy Date. You must satisfy
the requirements for the Death Benefit Guarantee as of each Monthly Anniversary,
even though you do not have to pay premiums monthly.

EXAMPLE: The Policy Date is January 1, 2000. The Minimum Monthly Premium
is $100 per month. No Policy loans or partial withdrawals are taken and no Face
Amount changes have occurred.

Case 1. You pay $100 each month. The Death Benefit Guarantee is
maintained.

Case 2. You pay $1,000 on January 1, 2000. The $1,000 maintains the Death
Benefit Guarantee without your paying any additional premiums for
the next 10 months (through October 31, 2000). However, you must
pay at least $100 by November 1, 2000 to maintain the Death
Benefit Guarantee through November 30, 2000.

We will determine (and the Policy will indicate) the amount of the initial
Minimum Monthly Premium at issuance of the Policy. The initial Minimum Monthly
Premium will depend upon the Insured's sex, Age at issue, Rate Class, optional
insurance benefits added by rider, and the initial Face Amount.

The following Policy changes may change the Minimum Monthly Premium:

* A requested increase or decrease in the Face Amount (see "Death
Benefit -- Requested Changes in Face Amount").

* A change in the Death Benefit Option (see "Death Benefit -- Changing
the Death Benefit Option").

* The addition or termination of a Policy rider (see "General Provisions
-- Optional Insurance Benefits").

We will notify you in writing of any changes in the Minimum Monthly Premium.

If you have not made sufficient premium payments to maintain the Death
Benefit Guarantee as of any Monthly Anniversary, we will send you notice of the
premium payment required to maintain the Death Benefit Guarantee. If we do not
receive the required premium payment within 61 days from the date of our notice,
the Death Benefit Guarantee will terminate. Except by administrative practice
during the first five Policy Years, the Death Benefit Guarantee cannot be
reinstated. This practice may be discontinued at any time without prior notice.

Even if the Death Benefit Guarantee terminates, the Policy will not
necessarily lapse. For a discussion of the circumstances under which the Policy
may lapse, see "Policy Lapse and Reinstatement."

ACCUMULATION VALUE

The Accumulation Value of the Policy (that is, the total value attributable
to a specific Policy in the Variable Account and the Fixed Account) is equal to
the sum of the Variable Accumulation Value (the value attributable to the
Variable Account) plus the Fixed Accumulation Value (the value attributable to
the Fixed Account). You should distinguish the Accumulation Value from the Cash
Surrender Value that would actually be paid to you upon total surrender of the
Policy, which is the Accumulation Value less any Surrender Charge, Loan Amount
and unpaid Monthly Deductions. See "Surrender Benefits -- Total Surrender." You
should also distinguish the Accumulation Value from the Cash Value, which
determines the amount available for Policy loans, and is the Accumulation Value
less any Surrender Charge. See "Policy Loans."

The Variable Accumulation Value will generally vary daily and will increase
or decrease to reflect the investment performance of the Funds in which
Sub-Accounts of the Variable Account have been invested.

We will increase the Variable Accumulation Value by:

* any Net Premiums credited to the Variable Account, and

* any transfers from the Fixed Account.

We will reduce the Variable Accumulation Value by:

* the Monthly Deduction attributable to the Variable Account,

* partial withdrawals from the Variable Account,

* any transfer and partial withdrawal charges attributable to the
Variable Account, and

* any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred from the Variable Account to the Fixed
Account as security for Policy loans -- see "Policy Loans").

We will increase the Fixed Accumulation Value by:

* any Net Premiums credited to the Fixed Account,

* any interest credited to the Fixed Account (determined at our
discretion, but guaranteed not to be less than 4%), and

* any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred to the Fixed Account as security for
Policy loans -- see "Policy Loans").

We will reduce the Fixed Accumulation Value by:

* the Monthly Deduction attributable to the Fixed Account,

* partial withdrawals from the Fixed Account,

* any transfer and partial withdrawal charges attributable to the Fixed
Account, and

* any amounts transferred from the Fixed Account to the Variable
Account.

See Appendix B for a detailed discussion of the calculation of Accumulation
Value.

ILLUSTRATION OF POLICY BENEFITS

In order to help you understand how your Policy values would vary over time
under different sets of assumptions, we will provide you with certain
personalized illustrations upon request. These will be based on the age and
insurance risk characteristics of the Insured under your Policy and such factors
as the specified face amount, death benefit option, premium payment amounts and
rates of return (within limits) that you request. You can request such
illustrations at any time.

We have also filed an example of such an illustration as an exhibit to the
registration statement referred to on page 57 of this Prospectus. This form of
illustration is available to you upon request and is incorporated herein by
reference. There may also be state specific product features that make the
illustrations applicable to you different from the form of illustration shown in
the exhibit. Subject to regulatory approval, personalized illustrations may be
based upon a weighted average rather than an arithmetic average of Fund
expenses.

SPECIALIZED USES OF THE POLICY

Because the Policy provides for an accumulation of Cash Surrender Value as
well as a Death Benefit, the Policy can be used for various individual and
business financial planning purposes. Purchasing the Policy in part for such
purposes entails certain risks. For example, if the investment performance of
the Sub-Accounts to which Accumulation Value is allocated is poorer than
expected or if sufficient premiums are not paid, the Policy may lapse or may not
accumulate sufficient Accumulation Value or Cash Surrender Value to fund the
purpose for which the Policy was purchased. Withdrawals and Policy loans may
significantly affect current and future Accumulation Value, Cash Surrender
Value, or Death Benefit proceeds. Depending upon Sub-Account investment
performance and the amount of a Policy loan, the loan may cause a Policy to
lapse. Because the Policy is designed to provide benefits on a long-term basis,
before purchasing a Policy for a specialized purpose a purchaser should consider
whether the long-term nature of the Policy is consistent with the purpose for
which it is being considered. Using a Policy for a specialized purpose may have
tax consequences. See "Federal Tax Matters."

POLICY LAPSE AND REINSTATEMENT

LAPSE. Unlike traditional life insurance policies, the failure to make a
Planned Periodic Payment will not by itself cause the Policy to lapse
(terminate). If the Death Benefit Guarantee is not in effect, the Policy will
lapse only if, as of any Monthly Anniversary, the Cash Surrender Value plus any
Sales Charge Refund is less than the Monthly Deduction due, and a grace period
of 61 days expires without a sufficient payment. If (during the first two Policy
Years or the first 24 Policy Months after a requested increase in Face Amount)
there exists any Sales Charge Refund (see "Sales Charge Refund") sufficient to
supplement the Cash Surrender Value so as to cover the Monthly Deduction, then
the Sales Charge Refund will be applied by us to keep the Policy in force. The
amount of Sales Charge Refund available for such application is reduced on each
Monthly Anniversary as so applied. Any payment made by you after we have kept
the Policy in force in this manner will first be used to reimburse us for the
amount of Sales Charge Refund so applied.

During the early Policy Years, the Cash Surrender Value (even when
supplemented by the Sales Charge Refund) will generally not be sufficient to
cover the Monthly Deduction, so that premium payments sufficient to maintain the
Death Benefit Guarantee will be required to avoid lapse. See "Death Benefit
Guarantee."

The Policy does not lapse, and the insurance coverage continues, until the
expiration of a 61-day grace period which begins on the date we send you written
notice indicating that the Cash Surrender Value plus any Sales Charge Refund is
less than the Monthly Deduction due. Our written notice will

indicate the amount of the payment required to avoid lapse. If you do not make a
sufficient payment within the grace period, then the Policy will lapse without
value.

As discussed above, any Sales Charge Refund will be applied to keep the
Policy in force when the Cash Surrender Value is less than the Monthly
Deduction. When a total surrender of the Policy is requested after the start of
a grace period, any remaining Sales Charge Refund (not already applied to keep
the Policy in force) will be so applied for the grace period, and consequently
not refunded, unless the surrender request is received by us within 30 days
after we mail the grace period notice to you. If such a request is timely
received, you will be refunded an amount equal to any unapplied Sales Charge
Refund that existed as of the Monthly Anniversary on which the Cash Surrender
Value deficiency causing the grace period notice occurred, plus any unearned
prepaid loan interest as of such Monthly Anniversary.

If the Insured dies during the grace period, the proceeds payable will
equal the amount of the Death Benefit on the Valuation Date on or next following
the date of the Insured's death, reduced by any Loan Amount and any unpaid
Monthly Deductions.

If the Death Benefit Guarantee is in effect, we will not lapse the Policy.
See "Death Benefit Guarantee."

REINSTATEMENT. Reinstatement means putting a lapsed Policy back in force.
You may reinstate a lapsed Policy by written request any time within five years
after it has lapsed if it has not been surrendered for its Cash Surrender Value.

To reinstate the Policy and any riders you must submit evidence of
insurability satisfactory to us and you must pay a premium large enough to keep
the Policy in force for at least two months.

A lapsed Death Benefit Guarantee cannot be reinstated after the fifth
Policy Year.

SURRENDER BENEFITS

Subject to certain limitations, you may make a total surrender of the
Policy or a partial withdrawal of the Policy's Cash Surrender Value by sending
us a written request. We will determine the amount available for a total
surrender or partial withdrawal at the end of the Valuation Period when we
receive your written request. Generally, we will pay any amounts from the
Variable Account upon total surrender or partial withdrawal within seven days
after we receive your written request. We may postpone payments, however, in
certain circumstances. See "General Provisions -- Postponement of Payments."
Surrendering the Policy may have tax consequences. See "Federal Tax Matters."

TOTAL SURRENDER

You may surrender the Policy at any time for its Cash Surrender Value by
making a written request. The Cash Surrender Value is the Accumulation Value of
the Policy reduced by any Surrender Charge, Loan Amount and unpaid Monthly
Deductions. If the Cash Surrender Value at the time of a surrender exceeds
$25,000, the written request must include a Signature Guarantee.

PARTIAL WITHDRAWAL

After the first Policy Year, you may withdraw part of the Cash Surrender
Value by sending us a written request. If the amount being withdrawn exceeds
$25,000, then the written request must include a Signature Guarantee. We
currently allow only one partial withdrawal in any Policy Year. When you make a
partial withdrawal we currently deduct your withdrawal amount plus a $10 charge
for each withdrawal. We guarantee that this charge will not exceed $25 for each
partial withdrawal. See "Deductions and Charges -- Partial Withdrawal and
Transfer Charges." The amount of any partial withdrawal must be at least $500
and, during the first 15 Policy Years, may not be more than 20% of the Cash
Surrender Value on the date we receive your written request.

Unless you specify a different allocation, we make partial withdrawals from
the Fixed Account and the Sub-Accounts of the Variable Account on a
proportionate basis based upon the Accumulation Value. We will determine these
proportions at the end of the Valuation Period during which we receive your
written request. For purposes of determining these proportions, we first
subtract any outstanding Loan Amount from the Fixed Accumulation Value.

EFFECT OF PARTIAL WITHDRAWALS. We will reduce the Accumulation Value by
the amount of any partial withdrawal. We will also reduce the Death Benefit by
the amount of the withdrawal, or, if the Death

Benefit is based on the corridor percentage of Accumulation Value (see "Death
Benefit -- Death Benefit Options"), by an amount equal to the corridor
percentage times the amount of the partial withdrawal.

If the Level Amount Option is in effect, we will reduce the Face Amount by
the amount of the partial withdrawal. When increases in the Face Amount have
occurred previously, we reduce the current Face Amount by the amount of the
partial withdrawal in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

(This assumption also applies to requested decreases in Face Amount -- see
"Death Benefit -- Requested Changes in Face Amount.") Thus, partial withdrawals
may affect the way in which the cost of insurance is calculated and the amount
of pure insurance protection under the Policy. See "Death Benefit -- Requested
Changes in Face Amount", "Deductions and Charges -- Monthly Deduction" and
"Death Benefit -- Insurance Protection."

We do not allow a partial withdrawal if the Face Amount after a partial
withdrawal would be less than the minimum Face Amount.

If the Variable Amount Option is in effect, a partial withdrawal does not
affect the Face Amount.

A partial withdrawal may also cause the termination of the Death Benefit
Guarantee because we deduct the amount of the partial withdrawal from the total
premiums paid in calculating whether you have paid sufficient premiums in order
to maintain the Death Benefit Guarantee.

Like partial withdrawals, Policy loans are a means of withdrawing money
from the Policy. See "Policy Loans." A partial withdrawal or a Policy loan may
have tax consequences depending on the circumstances of such withdrawal or loan.
See "Federal Tax Matters -- Tax Status of the Policy."

TRANSFERS

You may transfer all or part of the Variable Accumulation Value between the
Sub-Accounts or to the Fixed Account subject to any conditions the Funds whose
shares are involved may impose and any conditions we may impose on transfers.
See "Excessive Trading." You must make your transfer request in writing unless
you have completed a telephone transfer/fax instruction authorization form. You
may also direct us to automatically make periodic transfers under the Dollar
Cost Averaging or Portfolio Rebalancing services as described below.

To transfer all or part of the Variable Accumulation Value from a
Sub-Account, we redeem Accumulation Units and reinvest their values in other
Sub-Accounts, or the Fixed Account, as you direct in your request. We will
effect transfers, and determine all values in connection with transfers, at the
end of the Valuation Period during which we receive your request, except as
otherwise specified for the Dollar Cost Averaging or Portfolio Rebalancing
services. With respect to future Net Premium payments, however, your current
premium allocation will remain in effect unless (1) you have requested the
Portfolio Rebalancing service, or (2) you are transferring all of the Variable
Accumulation Value from the Variable Account to the Fixed Account in exercise of
conversion rights. See "Free Look and Conversion Rights -- Conversion Rights."

Transfers from the Fixed Account to the Variable Account are subject to the
following additional restrictions:

* your transfer request must be postmarked no more than 30 days before
or after the Policy Anniversary in any year, and only one transfer is
permitted during this period,

* you may only transfer up to 50% of the Fixed Accumulation Value, less
any Loan Amount, unless the balance, after the transfer, would be less
than $1,000, in which event you may transfer the full Fixed
Accumulation Value, less any Loan Amount, and

* you must transfer at least the lesser of $500 or the total Fixed
Accumulation Value, less any Loan Amount.

Some of these restrictions may be waived for transfers due to the Portfolio
Rebalancing service.

TELEPHONE/FAX INSTRUCTIONS. You are allowed to enter certain types of
instructions either by telephone or by fax if you complete a telephone/fax
instruction authorization form. If you complete the form, you can enter the
following types of instructions by telephone or fax:

* transfers between Sub-Accounts

* changes of allocations among fund options

By completing the telephone/fax form, you agree that we will not be liable for
any loss, liability, cost or expense when we act in accordance with the
telephone/fax transfer instructions that we receive or are recorded on voice
recording equipment. If we later determine that you did not make a telephone/fax
transfer request or the request was made without your authorization, and loss
results from such unauthorized transfer, you bear the risk of this loss. We
consider any requests made via fax as telephone requests and such requests are
bound by the conditions in the telephone/fax transfer authorization form you
sign. Any fax request should include your name, daytime telephone number, Policy
number and, in the case of transfers, the names of the Sub-Accounts from which
and to which money will be transferred and the allocation percentage. ReliaStar
will employ reasonable procedures to confirm that instructions communicated by
telephone/fax are genuine. If we do not employ such procedures, we may be liable
for any losses due to unauthorized or fraudulent instructions. Such procedures
may include, among others, requiring forms of personal identification prior to
acting upon telephone/fax instructions, providing written confirmation of such
instructions, and/or tape recording telephone instructions.

Telephone and fax transfers may not always be available. Telephone or fax
systems, whether yours, your service provider's or your agent's, can experience
outages or slowdowns for a variety of reasons. These outages or slowdowns may
prevent or delay our receipt of your request. If you are experiencing problems,
you should make your transfer request in writing.

EXCESSIVE TRADING

Excessive trading activity can disrupt orderly Fund management strategies
and increase Fund expenses by causing:

* increased trading and transaction costs;

* disruption of planned investment strategies;

* forced and unplanned portfolio turnover;

* lost opportunity costs; and

* large asset swings that decrease the Fund's ability to provide maximum
investment return to all Policy owners.

In response to excessive trading, we may place restrictions or refuse
transfers made by third-party agents acting on behalf of Policy owners such as a
market timing service. We will refuse or place restrictions on transfers when we
determine, in our sole discretion, that transfers are harmful to the Funds or
Policy owners as a whole.

DOLLAR COST AVERAGING SERVICE. You may request this service if your Face
Amount is at least $100,000 and your Accumulation Value, less any Loan Amount,
is at least $5,000. If you request this service, you direct us to automatically
make specific periodic transfers of a fixed dollar amount from any of the
Sub-Accounts to one or more of the Sub-Accounts or to the Fixed Account. We do
not permit transfers from the Fixed Account under this service. You may request
that we make transfers of this type on a monthly, quarterly, semi-annual, or
annual basis. This service is intended to allow you to use "Dollar Cost
Averaging," a long term investment method which provides for regular investments
over time. We make no guarantees that Dollar Cost Averaging will result in a
profit or protect against loss. You may discontinue this service at any time by
notifying us in writing.

If you are interested in the Dollar Cost Averaging service, you may obtain
a separate application form and full information concerning this service and its
restrictions from us or our registered representative.

We will discontinue the Dollar Cost Averaging service immediately (1) on
receipt of any request to begin a Portfolio Rebalancing service, (2) if the
Policy is in the grace period on any date when Dollar

Cost Averaging transfers are scheduled, or (3) if the specified transfer amount
from any Sub-Account is more than the Accumulation Value in that Sub-Account.

We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation would not affect any Dollar Cost Averaging
service requests already commenced.

PORTFOLIO REBALANCING SERVICE. You may request this service if your Face
Amount is at least $200,000 and your Accumulation Value, less any Loan Amount,
is at least $10,000. If you request this service, you direct us to automatically
make periodic transfers to maintain your specified percentage allocation of
Accumulation Value, less any Loan Amount, among the Sub-Accounts of the Variable
Account and the Fixed Account. We will also change your allocation of future Net
Premium payments to be equal to this specified percentage allocation. You may
request that we make transfers under this service on a quarterly, semi-annual,
or annual basis. This service is intended to maintain the allocation you have
selected consistent with your personal objectives.

The Accumulation Value in each Sub-Account of the Variable Account and the
Fixed Account will grow or decline at different rates over time. Portfolio
Rebalancing will periodically transfer Accumulation Values from those accounts
that have increased in value to those accounts that have increased at a slower
rate or declined in value. If all accounts decline in value, it will transfer
Accumulation Values from those that have decreased less in value to those that
have decreased more in value. We make no guarantees that Portfolio Rebalancing
will result in a profit or protect against loss. You may discontinue this
service at any time by notifying us in writing.

If you are interested in the Portfolio Rebalancing service you may obtain a
separate application form and full information concerning this service and its
restrictions from us or our registered representative.

If you are using the Portfolio Rebalancing service, we will discontinue
this service immediately (1) on receipt of any request to change the allocation
of premiums to the Fixed Account and Sub-Account of the Variable Account, (2) on
receipt of any request to begin a Dollar Cost Averaging service, (3) upon
receipt of any request to transfer Accumulation Value among the accounts, or (4)
if the policy is in the grace period or the Accumulation Value, less any Loan
Amount, is less than $7,500 on any Valuation Date when Portfolio Rebalancing
transfers are scheduled.

We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation could affect Portfolio Rebalancing services
currently in effect, but only after 30 days notice to affected Policy owners.

TRANSFER LIMITS. We currently do not limit the number of transfers,
although we reserve the right to limit you to no more than four transfers per
Policy Year. All transfers that are effective on the same Valuation Date will be
treated as one transfer transaction. Transfers made due to the Dollar Cost
Averaging or Portfolio Rebalancing services do not currently count toward the
limit on number of transfers.

TRANSFER CHARGES. We currently make no charge for the first 24 transfers
during a Policy Year. We make a $25 charge for each subsequent transfer. We
reserve the right to make a charge not to exceed $25 for each transfer for the
duration of the Policy. Further, no charge currently is made for transfers to
implement Dollar Cost Averaging and Portfolio Rebalancing. See "Deductions and
Charges -- Partial Withdrawal and Transfer Charges." In no event, however, will
we impose any charge in connection with the exercise of a conversion right or
transfers occurring as the result of Policy Loans. All transfers are also
subject to any charges and conditions imposed by the Fund whose shares are
involved. We will treat all transfers that are effective on the same Valuation
Date as one transfer transaction for the purpose of assessing any transfer
charge.

POLICY LOANS

GENERAL. As long as the Policy remains in effect, you may borrow money from
us using the Policy as security for the loan. We reserve the right to limit
loans during the first Policy year (except residents in Indiana who may take
loans during the first Policy year). The maximum amount you may borrow at any
time is equal to the loan value of the Policy, which is equal to 75% of the Cash
Value (100% in Texas and 90% in Alabama, Maryland and Virginia) less the
existing Loan Amount. If the Policy is in force as paid-up life insurance, the
loan value is equal to the Cash Value on the next Policy Anniversary less any

existing Loan Amount and loan interest to that date. Each Policy loan must be at
least $500 ($200 in Connecticut). After Age 65, we currently allow you to borrow
100% of the Cash Surrender Value.

You can make loan requests in writing or by telephoning us on any Valuation
Date. Any loan request in excess of $25,000 will require a Signature Guarantee.
Telephone loan requests cannot exceed $10,000. We currently do not require any
election form to make telephone loan requests. We will employ reasonable
procedures to confirm that loan requests made by telephone are genuine. In the
event we do not employ such procedures, we may be liable for any losses due to
unauthorized or fraudulent instructions. Such procedures may include, among
others, requiring forms of personal identification prior to acting upon
telephone instructions, providing written confirmations of such instructions
and/or tape recording telephone instructions.

Policy loans have priority over the claims of any assignee or other person.
You may repay a Policy loan in whole or in part at any time, on or before the
Insured reaches Age 95 and while the Insured is living.

We will normally pay the loan proceeds to you within seven days after we
receive your request. We may postpone payment of loan proceeds to you under
certain circumstances. See "General Provisions -- Postponement of Payments."

Payments you make generally will be treated as premium payments, rather
than Policy loan repayments, unless you indicate that we should treat the
payment otherwise or unless we decide, at our discretion, to apply the payment
as a Policy loan repayment. As a result, unless you indicate that a payment is a
loan repayment, all payments you make to the Policy will generally be subject to
the Premium Expense Charge. See "Deductions and Charges -- Premium Expense
Charge."

IMMEDIATE EFFECT OF POLICY LOANS. When we make a Policy loan, we will
segregate an amount equal to the Policy loan (which includes interest payable in
advance) within the Accumulation Value of your Policy and hold it in the Fixed
Account as security for the loan. As described below, you will pay interest to
us on the Policy loan, but we will also credit interest to you on the amount
held in the Fixed Account as security for the loan. We will include the amount
segregated in the Fixed Account as security for the Policy loan as part of the
Fixed Accumulation Value under the Policy, but we will credit that amount with
interest on a basis different from other amounts in the Fixed Account.

Unless you specify differently, amounts held as security for the Policy
loan will come proportionately from the Fixed Accumulation Value and the
Variable Accumulation Value (with the proportions being determined as described
below). We will transfer assets equal to the portion of the Policy loan coming
from the Variable Accumulation Value from the Sub-Accounts of the Variable
Account to the Fixed Account, THEREBY REDUCING THE POLICY VALUE HELD IN THE
SUB-ACCOUNTS. We do not treat these transfers as transfers for the purposes of
assessing the transfer charge or calculating the limit on the number of
transfers.

If you request an additional loan, we add the new loan amount to your
existing Policy loan. Thus, there is only one loan outstanding on your Policy at
any time.

EFFECT ON INVESTMENT PERFORMANCE. Amounts coming from the Variable Account
as security for Policy loans will no longer participate in the investment
performance of the Variable Account. We will credit all amounts held in the
Fixed Account as security for Policy loans (that is, the Loan Amount) with
interest at an effective annual rate equal to 5.50% (guaranteed to be not less
than 4.00%). WE WILL NOT CREDIT ADDITIONAL INTEREST TO THESE AMOUNTS. On the
Policy Anniversary, we will allocate any interest credited on these amounts to
the Fixed Account and the Variable Account according to the premium allocation
then in effect (see "Payment and Allocation of Premiums -- Allocating
Premiums").

Although you may repay Policy loans in whole or in part at any time before
the Insured's Age 95, Policy loans will permanently affect the Policy's
potential Accumulation Value. As a result, to the extent that the Death Benefit
depends upon the Accumulation Value (see "Death Benefit -- Death Benefit
Options"), Policy loans will also affect the Death Benefit under the Policy.
This effect could be favorable or unfavorable depending on whether the
investment performance of the assets allocated to the Sub-Account(s) is less
than or greater than the interest being credited on the assets transferred to
the Fixed Account while the loan is outstanding. Compared to a Policy under
which no loan is made, values

under the Policy will be lower when such interest credited is less than the
investment performance of assets held in the Sub-Account(s).

EFFECT ON POLICY COVERAGE. We will notify you if, on any Monthly
Anniversary, the Loan Amount is greater than the Accumulation Value plus any
Sales Charge Refund, less the then applicable Surrender Charge. If we do not
receive sufficient payment within 61 days from the date we send notice to you,
the Policy will lapse and terminate without value. Our written notice to you
will indicate the amount of the payment required to avoid lapse. The Policy may,
however, later be reinstated. See "Policy Lapse and Reinstatement."

A Policy loan may also cause termination of the Death Benefit Guarantee,
because we deduct the Loan Amount from the total premiums paid in calculating
whether you have paid sufficient premiums in order to maintain the Death Benefit
Guarantee. See "Death Benefit Guarantee."

We will reduce proceeds payable upon the death of the Insured by any Loan
Amount.

INTEREST. The interest rate charged on Policy loans will be an annual rate
of 7.40%, payable in advance. After the 10th Policy Year, we currently charge
interest at an annual rate of 5.21% payable in advance, on that portion of your
Loan Amount that is not in excess of (1) the Accumulation Value, less (2) the
total of all premiums paid less all partial withdrawals. We will charge interest
on any excess of this amount at the annual rate of 7.40%, payable in advance.

Interest is payable in advance (for the rest of the Policy Year) at the
time any Policy loan is made and at the beginning of each Policy Year thereafter
(for that entire Policy Year). If you do not pay interest when due, we will
deduct it from the Cash Surrender Value as an additional Policy loan (see
"Immediate Effect of Policy Loans" above) and we will add it to the existing
Loan Amount.

Because we charge interest in advance, we will refund any interest that we
have not earned to you upon lapse or surrender of the Policy or repayment of the
Policy Loan.

REPAYMENT OF LOAN AMOUNT. You may repay the Loan Amount any time while the
Insured is living and before Age 95. If not repaid, we will deduct the Loan
Amount from any amount payable under the Policy. As described above, unless you
provide us with notice to the contrary, we generally will treat any payments on
the Policy as premium payments, which are subject to the Premium Expense Charge,
rather than repayments on the Loan Amount. Any repayments on the Loan Amount
will result in amounts being reallocated from the Fixed Account and to the
Sub-Accounts of the Variable Account according to your current premium
allocation.

TAX CONSIDERATIONS. A Policy loan may have tax consequences depending on
the circumstances of the loan. See "Federal Tax Matters -- Tax Status of the
Policy."

FREE LOOK AND CONVERSION RIGHTS

FREE LOOK RIGHTS

AT INITIAL ISSUE. The Policy provides for an initial free look period
during which you have a right to return the Policy for cancellation and receive
a refund of all premiums paid. You must return the Policy to us or your agent
and ask us to cancel the Policy by the latest of:

* Midnight of the 20th day after receiving it;

* Midnight of the 20th day after a written Notice of Right of Withdrawal
is mailed or delivered to you; or

* Midnight of the 45th day after the date your application for the
Policy is signed.

FOLLOWING A REQUESTED INCREASE IN FACE AMOUNT. Any requested increase in
Face Amount is also subject to a free look period during which you have a right
to cancel the increase and receive a refund. You must notify us or your agent
and ask us to cancel the increase by the latest of:

* Midnight of the 20th day after receiving a new Policy Data Page;

* Midnight of the 20th day after a written Notice of Right of Withdrawal
is mailed or delivered to you; or

* Midnight of the 45th day after the date your request for the increase
is signed.

Upon requesting cancellation of the increase, you will receive a refund, if
you so request, or otherwise a restoration to the Policy's Accumulation Value
(allocated among the Fixed Account and the Sub-Accounts of the Variable Account
as if it were a Net Premium payment), in an amount equal to all Monthly
Deductions attributable to the increase in Face Amount, including rider cost
arising from the increase.

NOT TAKEN POLICIES. If you return your Policy to us after the end of the
free look period, but within 120 days after the Policy Issue Date, we call your
Policy a "not taken." By current administrative practice which we may change at
any time in our sole discretion and without notice to you, we limit the
Surrender Charge on not taken Policies to not more than $50. After 120 days, we
will apply the full Surrender Charge to all policy lapses and surrenders.

CONVERSION RIGHTS

During the first two Policy Years and the first two years following a
requested increase in Face Amount, we provide you with an option to convert the
Policy or any requested increase in Face Amount to a life insurance policy under
which the benefits do not vary with the investment experience of the Variable
Account. For policies issued in all states, except Connecticut, we make this
option available by permitting you to transfer all or a part of your Variable
Accumulation Value to the Fixed Account. For policies issued in Connecticut, you
may exchange this Policy for a different permanent fixed benefit life insurance
policy that we offer in that state. The two conversion right options are
discussed below.

GENERAL OPTION. In all states except Connecticut, you may exercise your
conversion right by transferring all or any part of your Variable Accumulation
Value to the Fixed Account. If, at any time during the first two Policy Years or
the first two years following a requested increase in Face Amount, you request
transfer from the Variable Account to the Fixed Account and indicate that you
are making the transfer in exercise of your conversion right, we will not assess
any transfer charge on the transfer, and the transfer will not count against the
limit on the number of transfers. At the time of such transfer, there is no
effect on the Policy's Death Benefit, Face Amount, net amount at risk, Rate
Class(es) or Issue Age -- only the method of funding the Accumulation Value
under the Policy will be affected. See "Death Benefit," "Accumulation Value" and
Appendix A, "The Fixed Account."

If you transfer all of the Variable Accumulation Value from the Variable
Account to the Fixed Account and indicate that you are making this transfer in
exercise of your Conversion Right, we will automatically credit all future
premium payments on the policy to the Fixed Account unless you request a
different allocation.

CONNECTICUT. During the first two Policy Years and during the first 24
months following a requested increase in Face Amount, you may convert the Policy
or the Face Amount increase to any fixed benefit whole life insurance policy we
offer. We will not require any evidence of insurability for the conversion. In
order to convert to a new policy, we must receive a written conversion request.
If the entire Policy is being converted, you must surrender the Policy to us.
The conversion must be made while the Policy is in force; and any outstanding
Loan Amount must be repaid.

The new policy will have the same Issue Age and rate class as the Policy.
If you are converting the entire Policy, the effective date of the conversion
will be the date on which we receive both your written conversion request and
the Policy. If you are converting a Face Amount increase, the effective date of
the conversion will be the date on which we receive your written conversion
request.

On the effective date of the conversion, the new policy will have, at your
option, either:

(1) A death benefit which is equal to the Death Benefit of the Policy on
the effective date of the conversion, or in the case of a Face Amount
increase, a death benefit equal to the increase in Face Amount; or

(2) A net amount at risk which equals the Death Benefit of the Policy on
the effective date of the conversion, less the Accumulation Value on
that date, or in the case of a Face Amount increase, a net amount at
risk which equals the Face Amount increase on the effective date of
conversion less the Accumulation Value on that date which is
considered to be part of the Face Amount increase.

The conversion will be subject to an equitable adjustment in payments and
Policy values to reflect variances, if any, in the payments and Policy values
under the Policy and the new policy. We may require

an additional premium payment. The old Policy's Surrender Charge will not be
applied. The new Policy's provisions and charges will be the same as those that
would have been in effect had the new Policy been issued on the Policy Date.

ADDITIONAL INFORMATION ON THE INVESTMENTS OF THE VARIABLE ACCOUNT

INVESTMENT LIMITS

Although the Variable Account currently consists of 37 investment options,
we currently only permit you to participate in a maximum of 17 investment
options over the lifetime of your Policy. You do not have to choose your
investment options in advance, but once you participate in the 17th Fund since
your Policy was issued, you would only be able to transfer within those 17 Funds
already used and which are still available.

The Fund shares are sold to separate accounts of insurance companies. These
insurance companies may or may not be affiliated with us. This is known as
"shared funding." The Funds may sell shares as the underlying investment for
both variable annuity and variable life insurance contracts. This process is
known as "mixed funding."

The Funds may sell shares to certain qualified pension and retirement plans
that qualify under Section 401 of the Code. As a result, a material conflict of
interest may arise between insurance companies, owners of different types of
contracts and retirement plans, or their participants.

If there is a material conflict, we will consider what should be done,
including removing the Fund from the Variable Account. There are certain risks
with mixed and shared funding, and with selling shares to qualified pension and
retirement plans. See the Funds' prospectuses.

There also is a possibility that one Fund might become liable for any
misstatement, inaccuracy or incomplete disclosure in another Fund's prospectus.

The Funds distribute dividends and capital gains. However, we automatically
reinvest distributions in additional Fund shares, at net asset value. The
Sub-Account receives the distributions which are then reflected in the Unit
Value of that Sub-Account. See "Accumulation Value."

ReliaStar has entered into service arrangements with the managers or
distributors of certain of the Funds. Under these arrangements, ReliaStar or its
affiliates may receive compensation from affiliates of the Funds. This
compensation is for providing administrative, recordkeeping, distribution and
other services to the Funds or their affiliates. Such compensation is paid based
upon assets invested in the particular Funds, or based on the aggregated net
asset goals. Payments of such amounts by an affiliate or affiliates of the Funds
do not increase the fees paid by the Funds or their shareholders. The percentage
paid may vary from one Fund to another. The amounts we receive may be
significant.

ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS

We reserve the right, subject to compliance with applicable law, to make
additions to, deletions from, or substitutions for the shares that are held by
the Variable Account or that the Variable Account may purchase.

* We reserve the right to establish additional Sub-Accounts of the
Variable Account, each of which would invest in a new Fund, or in
shares of another investment company, with a specified investment
objective. We may establish new Sub-Accounts when, in our sole
discretion, marketing needs or investment conditions warrant, and we
will make any new Sub-Accounts available to existing Policy owners on
a basis we determine.

* We may eliminate one or more Sub-Accounts, or prohibit additional new
premium or transfers into a Sub-Account, if, in our sole discretion,
marketing, tax, regulatory requirements or investment conditions
warrant.

* We reserve the right to eliminate the shares of any of the Funds and
to substitute shares of another Fund or of another open-end,
registered investment company. The new Funds may have higher fees and
charges than the ones they replaced, and not all Funds may be
available to all classes of Policies. We will not substitute any
shares attributable to your interest in a Sub-Account of the Variable
Account without notice and prior approval of the SEC, to the extent
required by the Investment Company Act of 1940 or other applicable
law.

Nothing contained herein shall prevent the Variable Account from:

* Purchasing other securities of other Funds or classes of policies,

* Permitting a conversion between Funds or classes of policies on the
basis of requests made by Policy owners, or

* Substituting the shares of one fund for shares of another fund in the
event of a merger of funds or similar transaction.

In the event of any such substitution, deletion or change, we may make
appropriate changes in this and other policies to reflect such substitution,
deletion or change. If you allocated all or a portion of your investments to any
of the current funds that are being substituted for or deleted, you may transfer
the portion of the Accumulation Value affected without paying a transfer charge.

If we deem it to be in the best interests of persons having voting rights
under the Policies, we may:

* operate the Variable Account as a management company under the 1940
Act,

* deregister the Variable Account under the 1940 Act in the event such
registration is no longer required, or

* combine the Variable Account with our other separate accounts.

VOTING RIGHTS

You have the right to instruct us how to vote the Fund shares attributable
to the Policy at regular meetings and special meetings of the Funds. We will
vote the Fund shares held in Sub-Accounts according to the instructions
received, as long as:

* The Variable Account is registered as a unit investment trust under
the Investment Company Act of 1940; and

* The Variable Account's assets are invested in Fund shares.

If we determine that, because of applicable law or regulation, we do not
have to vote according to the voting instructions received, we will vote the
Fund shares at our discretion.

All persons entitled to voting rights and the number of votes they may cast
are determined as of a record date, selected by us, not more than 90 days before
the meeting of the Fund. All Fund proxy materials and appropriate forms used to
give voting instructions will be sent to persons having voting interests.

We will vote any Fund shares held in the Variable Account for which we do
not receive timely voting instructions, or which are not attributable to Policy
owners, in proportion to the instructions received from all Policy owners having
a voting interest in the Fund. Any Fund shares held by us or any of our
affiliates in general accounts will, for voting purposes, be allocated to all
separate accounts having voting interests in the Fund in proportion to each
account's voting interest in the respective Fund, and will be voted in the same
manner as are the respective account's votes.

Owning the Policy does not give you the right to vote at meetings of our
stockholders.

DISREGARDING VOTING INSTRUCTIONS. We may, when required by state insurance
regulatory authorities, disregard voting instructions if the instructions
require that the shares be voted so as to cause a change in the
subclassification or investment objective of any Fund or to approve or
disapprove an investment advisory contract for any Fund. In addition, we may
disregard voting instructions in favor of changes initiated by a Policy owner in
the investment policy or the investment adviser of any Fund if we reasonably
disapprove of such changes. We would disapprove a change only if the proposed
change is contrary to state law or prohibited by state regulatory authorities,
or we determine that the change would have an adverse effect on the Variable
Account in that the proposed investment policy for a Fund may result in
speculative or unsound investments. In the event we do disregard voting
instructions, we will include a summary of that action and the reasons for such
action in the next annual report to owners.

PAID-UP LIFE INSURANCE OPTION

Before Age 95, if the Insured is living and the Policy is in force, you may
make a written request to direct us to apply the Cash Surrender Value of the
Policy to purchase paid-up life insurance. If the

insured is living at Age 95 and the Policy is in force, the Cash Surrender Value
of the Policy will automatically be applied to purchase paid-up life insurance
unless the Insured notifies us in writing before Age 95 that the Cash Surrender
Value should be paid in cash. The amount by which any paid-up insurance will
exceed its cash value cannot be greater than the amount by which the Policy's
Death Benefit exceeds the Policy's Accumulation Value. We will pay you, in cash,
any Cash Surrender Value not used to purchase paid-up life insurance. Any cash
paid out or Policy loans forgiven may be considered a taxable event.

GENERAL PROVISIONS

OWNERSHIP

While the Insured is alive, subject to the Policy's provisions you may:

* Change the amount and frequency of premium payments.
* Change the allocation of premiums.
* Change the Death Benefit Option.
* Change the Face Amount.
* Make transfers between accounts.
* Surrender the Policy for cash.
* Make a partial withdrawal for cash.
* Receive a cash loan.
* Assign the Policy as collateral.
* Change the beneficiary.
* Transfer ownership of the Policy.
* Enjoy any other rights the Policy allows.

Some of these transactions may have tax consequences and you should
consider any such tax consequences before taking any of these actions.

PROCEEDS

At the Insured's death, the proceeds payable include the Death Benefit then
in force:

* Plus any additional amounts provided by rider on the life of the
Insured;
* Plus any Policy loan interest that we have collected but not earned;
* Minus any Loan Amount; and
* Minus any unpaid Monthly Deductions.

We may pay the proceeds in a lump sum or, if you choose we may apply the
proceeds to one of the Settlement Options. If you or the Beneficiary do not
select a Settlement Option, and the proceeds are at least $5,000, we may deposit
the lump-sum payment into an interest bearing special account maintained by a
financial institution and retained by us in our General Account. In that case,
we provide the Beneficiary with a checkbook to access these funds from that
special account. The Beneficiary will receive any interest on the proceeds
deposited in that account.

BENEFICIARY

You may name one or more beneficiaries on the application when you apply
for the Policy. You may later change beneficiaries by written request. You may
also name a beneficiary whom you cannot change without his or her consent
(irrevocable beneficiary). If no beneficiary is surviving when the Insured dies,
we will pay the Death Benefit to you, if surviving, or otherwise to your estate.

POSTPONEMENT OF PAYMENTS

We generally make payments from the Variable Account for Death Benefits,
cash surrender, partial withdrawal, or loans within seven days after we receive
all the documents required for the payments.

We may, however, delay making a payment when we are not able to determine
the Variable Accumulation Value because (1) the New York Stock Exchange is
closed (other than customary weekend or holiday closings) or the SEC restricts
trading on the New York Stock Exchange, (2) the SEC by order permits
postponement for the protection of Policyholders, or (3) the SEC determines that
an emergency exists which makes disposing of securities not reasonably
practicable, or which makes it not reasonably practicable to determine the value
of the Variable Account's net assets. We may also postpone transfers and
allocations to and from any Sub-Account of the Variable Account under these
circumstances.

We may delay any of the payments that we make from the Fixed Account for up
to six months from the date we receive the documents required. We will pay
interest at an effective annual rate of 3.50% if we delay payment more than 30
days. We will not credit any additional interest to any delayed payments. The
time a payment from the Fixed Account may be delayed and the rate of interest
paid on such amounts may vary among states.

SETTLEMENT OPTIONS

Settlement Options are ways you can choose to have the Policy's proceeds
paid. These Settlement Options apply to proceeds paid:

* At the Insured's death.

* On total surrender of the Policy.

We pay the proceeds to one or more payees. We may pay the proceeds in a
lump sum or we may apply the proceeds to one of the following Settlement
Options. You may request that we use a combination of Options. You must apply at
least $2,500 to any Option for each payee under that Option. Under an
installment Option, each payment must be at least $25.00. We may adjust the
interval to make each payment at least $25.00.

Proceeds applied to any Option no longer earn interest at the rate applied
to the Fixed Account or participate in the investment performance of the Funds.

Option 1 -- Proceeds are left with us to earn interest. Withdrawals and any
changes are subject to our approval.

Option 2 -- Proceeds and interest are paid in equal installments of a
specified amount until the proceeds and interest are all paid.

Option 3 -- Proceeds and interest are paid in equal installments for a
specified period until the proceeds and interest are all paid.

Option 4 -- The proceeds provide an annuity payment with a specified number
of months "certain." The payments are continued for the life of
the primary payee. If the primary payee dies before the certain
period is over, the remaining payments are paid to a contingent
payee.

Option 5 -- The proceeds provide a life income for two payees. When one
payee dies, the surviving payee receives two-thirds of the
amount of the joint monthly payment for life.

Option 6 -- The proceeds are used to provide an annuity based on the rates
in effect when the proceeds are applied. We do not apply this
Option if a similar option would be more favorable to the payee
at that time.

INTEREST ON SETTLEMENT OPTIONS. We base the interest rate for proceeds
applied under Options 1 and 2 on the interest rate we declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors. The interest rate will never be less than an
effective annual rate of 3.50%.

In determining amounts we pay under Options 3, 4,and 5, we assume interest
at an effective annual rate of 3.50%. Also, for Option 3 and "certain" periods
under Option 4, we credit any excess interest we may declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors.

INCONTESTABILITY

After the Policy has been in force during the Insured's lifetime for two
years from the Policy's Issue Date, we cannot claim the Policy is void or refuse
to pay any proceeds unless the Policy has lapsed.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year contestable period measured from the effective date of the increase.

If the Policy is reinstated, we measure the contestable period from the
date of reinstatement with respect to statements made on the application for
reinstatement.

MISSTATEMENT OF AGE AND SEX

If the Insured's Age or sex or both are misstated (except where unisex
rates apply), the Death Benefit will be the amount that the most recent cost of
insurance would purchase using the current cost of insurance rate for the
correct Age and sex.

SUICIDE

If the Insured commits suicide, whether sane or insane, within two years of
the Policy's Issue Date (one year in Colorado and North Dakota), we do not pay
the Death Benefit. Instead, we refund all premiums paid for the Policy and any
attached riders, minus any Loan Amounts and partial withdrawals.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year suicide limitation for the proceeds associated with that increase. If
the Insured commits suicide, whether sane or insane, within two years of the
effective date of the increase, we pay the Death Benefit prior to the increase
and refund the cost of insurance for that increase.

TERMINATION

The Policy terminates when any of the following occurs:

* The Policy lapses. See "Policy Lapse and Reinstatement."
* The Insured dies.
* You surrender the Policy for its Cash Surrender Value.
* We amend the Policy according to the amendment provision described
below and you do not accept the amendment.

AMENDMENT

We reserve the right to amend the Policy in order to include any future
changes relating to the following:

* Any SEC rulings and regulations.
* The Policy's qualification for treatment as a life insurance policy
under the following:
-- The Code as amended.
-- Internal Revenue Service rulings and regulations.
-- Any requirements imposed by the Internal Revenue Service.

REPORTS

ANNUAL STATEMENT. We will send you an Annual Statement once each year,
showing the Face Amount, Death Benefit, Accumulation Value, Cash Surrender
Value, Loan Amount, premiums paid, Planned Periodic Premiums, interest credits,
partial withdrawals, transfers, and charges since the last statement.

Additional statements are available upon request. We may make a charge not
to exceed $50 for each additional Annual Statement you request.

We send semi-annual reports with financial information on the Funds,
including a list of investment holdings of each portfolio.

We send confirmation notices to you throughout the year for certain Policy
transactions such as partial withdrawals and loans.

PROJECTION REPORT. Upon request, we will provide you a report projecting
future results based on the Death Benefit Option you specify, the Planned
Periodic Premiums you specify, and the Accumulation Value of your Policy at the
end of the prior Policy Year. We may make a charge not to exceed $50 for each
Projection Report you request after the first report and after the first report
in a Policy Year.

OTHER REPORTS. The Company will mail to you at your last known address of
record at least annually a report containing such information as may be required
by any applicable law. To reduce expenses, only one copy of most financial
reports and prospectuses including reports and prospectuses for the Funds, will
be mailed to your household, even if you or other persons in your household have
more than one contract issued by ReliaStar or an affiliate. Call 1-800-456-6965
if you need additional copies of financial reports, prospectuses, or annual and
semi-annual reports, or if you would like to receive one copy for each contract
in all future mailings.

DIVIDENDS

The Policy does not entitle you to participate in our surplus. We do not
pay you dividends under the Policy.

The Sub-Account receives any dividends paid by the related Fund. Any such
dividend is credited to you through the calculation of the Sub-Account's daily
Unit Value.

COLLATERAL ASSIGNMENT

You may assign the benefits of the Policy as collateral for a debt. This
limits your rights to the Cash Surrender Value and the beneficiary's rights to
the proceeds. An assignment is not binding on us until we receive written
notice.

OPTIONAL INSURANCE BENEFITS

The Policy can include additional benefits, in the form of riders to the
Policy, if our requirements for issuing such benefits are met. We currently
offer the following benefit riders, although some riders may not be available in
some states.

ACCELERATED BENEFIT RIDER. Under certain circumstances we pay a part of
the Death Benefit to you when the Insured has been diagnosed as having a
terminal illness. See "Accelerated Benefit Rider."

ACCIDENTAL DEATH BENEFIT RIDER. Provides an additional benefit if the
Insured dies from an accidental injury.

ADDITIONAL INSURED RIDER. Provides a 10 year, guaranteed level premium and
level term coverage for the Insured, the Insured's spouse, or a child of the
Insured.

WAIVER OF MONTHLY DEDUCTION RIDER. The Monthly Deduction for the Policy is
waived while the Insured is totally disabled under the terms of the rider.

CHILDREN'S INSURANCE RIDER. Provides up to $10,000 of term life insurance
on the life of each of the Insured's children, up to age 25.

WAIVER OF SPECIFIED PREMIUM RIDER. Contributes a specified amount of
premium to the Policy each month while the Insured is totally disabled under the
terms of the rider. This rider may not be available in all states. Ask your
registered representative about the availability of this rider in your state.

FEDERAL TAX MATTERS

INTRODUCTION

The following summary provides a general description of the Federal income
tax considerations associated with the Policy and does not purport to be
complete or to cover all tax situations. This discussion is not intended as tax
advice. Counsel or other competent tax advisors should be consulted for more
complete information. This discussion is based upon the Company's understanding
of the present Federal income tax laws. No representation is made as to the
likelihood of continuation of the present Federal income tax laws or as to how
they may be interpreted by the Internal Revenue Service (the "IRS").

Any qualified plan contemplating the purchase of a life policy should
consult a tax advisor.

TAX STATUS OF THE POLICY

In order to qualify as a life insurance contract for Federal income tax
purposes and to receive the tax treatment normally accorded life insurance
contracts under Federal tax law, a Policy must satisfy certain requirements
which are set forth in the Internal Revenue Code. Guidance as to how these
requirements are to be applied is limited. Nevertheless, the Company believes
that it is reasonable to conclude that the Policies satisfy the applicable
requirements. If it is subsequently determined that a Policy does not satisfy
the applicable requirements, the Company may take appropriate steps to bring the
Policy into compliance with such requirements and reserves the right to restrict
Policy transactions in order to do so.

In certain circumstances, owners of variable life insurance contracts have
been considered for Federal income tax purposes to be the owners of the assets
of the variable account supporting their policies due to their ability to
exercise investment control over these assets. Where this is the case, the
policy owners have been currently taxed on income and gains attributable to the
variable account assets.

There is little guidance in this area, and some features of the Policies, such
as the flexibility of an owner to allocate premium payments and Policy
Accumulation Values, have not been explicitly addressed in published rulings.
While the Company believes that the Policies do not give owners investment
control over Variable Account assets, the Company reserves the right to modify
the Policies as necessary to prevent an owner from being treated as the owner of
the Variable Account assets supporting the Policy.

In addition, the Code requires that the investments of the Variable Account
be "adequately diversified" in order for the Policies to be treated as life
insurance contracts for Federal income tax purposes. It is intended that the
Variable Account, through the Funds, will satisfy these diversification
requirements.

The following discussion assumes that the Policy will qualify as a life
insurance contract for Federal income tax purposes.

TAX TREATMENT OF POLICY BENEFITS

IN GENERAL. The Company believes that the Death Benefit under a Policy
should be excludible from the gross income of the Beneficiary. Federal, state
and local transfer, and other tax consequences of ownership or receipt of Policy
proceeds depend on the circumstances of each owner or beneficiary. A tax advisor
should be consulted on these consequences.

Generally, the owner will not be deemed to be in constructive receipt of
the Policy Accumulation Value until there is a distribution. When distributions
from a Policy occur, including payments arising from any maturity benefits, or
when loans are taken out from or secured by (e.g., by assignment) a Policy, the
tax consequences depend on whether the Policy is classified as a "Modified
Endowment Contract."

MODIFIED ENDOWMENT CONTRACTS. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the Policies as to premiums and benefits, the individual
circumstances of each Policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
Policy Years. Certain changes in a Policy after it is issued could also cause it
to be classified as a Modified Endowment Contract. A current or prospective
owner should consult with a competent advisor to determine whether a Policy
transaction will cause the Policy to be classified as a Modified Endowment
Contract. The Company will monitor the Policies, however, and will attempt to
notify an owner within one month of the date of any Policy transactions if it
believes that such owner's Policy is in jeopardy of becoming a Modified
Endowment Contract. At this point, if the Policy owner wishes to avoid Modified
Endowment Contract status, he or she should, in turn, notify the Company
immediately. However, if the transaction was a premium payment, then the Policy
owner must notify the Company no later than 60 days following the Policy
Anniversary in which the premium payment occurred.

DISTRIBUTIONS FROM MODIFIED ENDOWMENT CONTRACTS. Policies classified as
Modified Endowment Contracts are subject to the following tax rules:

(1) All distributions, including distributions upon surrender and
withdrawals, will be treated as ordinary income subject to tax up to
an amount equal to the excess (if any) of the unloaned Policy
Accumulation Value (Cash Surrender Value for surrenders) immediately
before the distribution plus prior distributions over the owner's
total investment in the Policy at that time. "Total investment in the
Policy" means the aggregate amount of any premiums or other
considerations paid for a Policy, plus any previously taxed
distributions, minus any credited dividends.

(2) Loans taken from or secured by (e.g., by assignment) such a Policy are
treated as distributions and taxed accordingly.

(3) A 10 percent additional income tax is imposed on the amount included
in income except where distribution or loan is made when the owner has
attained age 591/2 or is disabled, or where the distribution is part
of a series of substantially equal periodic payments for the life (or
life expectancy) of the owner or the joint lives (or joint life
expectancies) of the owner and the owner's beneficiary or designated
beneficiary.

If a Policy becomes a Modified Endowment Contract, distributions that occur
during the contract year will be taxed as distributions from a Modified
Endowment Contract. In addition, distributions from a Policy within two years
before it becomes a Modified Endowment Contract will be taxed in this manner.
This means that a distribution made from a Policy that is not a Modified
Endowment Contract could later become taxable as a distribution from a Modified
Endowment Contract.

DISTRIBUTIONS FROM POLICIES THAT ARE NOT MODIFIED ENDOWMENT CONTRACTS.
Distributions from a Policy that is not a Modified Endowment Contract are
generally treated first as a recovery of an owner's investment in the Policy and
only after the recovery of all investment in the Policy as taxable income.
However, certain distributions which must be made in order to enable the Policy
to continue to qualify as a life insurance contract for Federal income tax
purposes if Policy benefits are reduced during the first 15 Policy Years may be
treated in whole or in part as ordinary income subject to tax.

Loans from or secured by a Policy that is not a Modified Endowment Contract
are generally not treated as distributions, except that upon a lapse or
cancellation of a Policy the amount of any outstanding Policy loan will be added
to the amount distributed to you and taxed accordingly. However, the tax
consequences associated with loans after the 10th Policy Year are less clear and
a tax adviser should be consulted about such loans.

Finally, neither distributions from nor loans from or secured by a Policy
that is not a Modified Endowment Contract are subject to the 10 percent
additional tax.

POLICY LOANS. In general, interest on a loan from a Policy will not be
deductible. Before taking out a Policy loan, you should consult a tax advisor
as to the tax consequences.

MULTIPLE POLICIES. All Modified Endowment Contracts that we (or our
affiliates) issue to the same owner during any calendar year are treated as one
Modified Endowment Contract for purposes of determining the amount includible in
the owner's income when a taxable distribution occurs.

BUSINESS USES OF POLICY. Businesses can use the Policies in various
arrangements, including nonqualified deferred compensation or salary continuance
plans, split dollar insurance plans, executive bonus plans, tax exempt and
nonexempt welfare benefit plans, retiree medical benefit plans and others. The
tax consequences of such plans may vary depending on the particular facts and
circumstances. If you are purchasing the Policy for any arrangement, the value
of which depends in part on its tax consequences, you should consult a qualified
tax adviser. In recent years, moreover, Congress has adopted new rules relating
to life insurance owned by businesses. Any business contemplating the purchase
of a new Policy or a change in an existing Policy should consult a tax adviser.

OTHER TAX CONSIDERATIONS. The transfer of the Policy or designation of a
beneficiary may have federal, state, and/or local transfer and inheritance tax
consequences, including the imposition of gift, estate, and generation-skipping
transfer taxes. For example, the transfer of the Policy to, or the designation
as a beneficiary of, or the payment of proceeds to, a person who is assigned to
a generation which is two or more generations below the generation of the Policy
owner may have generation skipping transfer tax consequences under federal tax
law. The individual situation of each Policy owner or beneficiary will determine
the extent, if any, to which federal, state, and local transfer and inheritance
taxes may be imposed and how ownership or receipt of Policy proceeds will be
treated for purposes of federal, state and local estate, inheritance, generation
skipping and other taxes.

POSSIBLE CHANGES IN TAXATION

Although the likelihood of legislative changes is uncertain, there is
always the possibility that the tax treatment of the Policy could change by
legislation or other means. Moreover, it is also possible that any change could
be retroactive (that is, effective prior to the date of the change). You should
consult a tax adviser with respect to legislative developments and their effect
on the Policy.

OTHER CONSIDERATIONS

The foregoing discussion is general and is not intended as tax advice. Any
person concerned about these tax implications should consult a competent tax
advisor. This discussion is based on our understanding of the present Federal
income tax laws as they are currently interpreted by the Internal Revenue
Service. We make no representations as to the likelihood of continuation of
these current laws and interpretations. In addition, the foregoing discussion is
not exhaustive and special rules not

described in this Prospectus may be applicable in certain situations. Moreover,
we have made no attempt to consider any applicable state or other tax laws.

TAXATION OF RELIASTAR LIFE INSURANCE COMPANY

We do not initially expect to incur any income tax burden upon the earnings
or the realized capital gains attributable to the Variable Account. Based on
this expectation, we currently make no charge to the Variable Account for
Federal income taxes which may be attributable to the Account. If, however, we
determine that we may incur such tax burden, we may assess a charge for such
burden from the Variable Account.

We may also incur state and local taxes, in addition to premium taxes, in
several states. At present these taxes are not significant. If there is a
material change in state or local tax laws, we may make charges for such taxes,
if any, attributable to the Variable Account.

LEGAL DEVELOPMENTS REGARDING EMPLOYMENT-RELATED BENEFIT PLANS

The Policy is based on actuarial tables which distinguish between men and
women and therefore provide different benefits to men and women of the same Age.
Employers and employee organizations should consider, in consultation with legal
counsel, the impact of the Supreme Court decision of July 6, 1983 in ARIZONA
GOVERNING COMMITTEE V. NORRIS. That decision stated that optional annuity
benefits provided under an employee's deferred compensation plan could not,
under Title VII of the Civil Rights Act of 1964, vary between men and women on
the basis of sex. Employers and employee organizations should also consider, in
consultation with legal counsel, the impact of Title VII generally, and
comparable state laws that may be applicable, on any employment-related
insurance or benefit plan for which a Policy may be purchased.

Because of the NORRIS decision, the charges under the Policy that vary
depending on sex may in some cases not vary on the basis of the Insured's sex.
Unisex rates to be provided by us will apply, if requested on the application,
for tax-qualified plans and those plans where an employer believes that the
NORRIS decision applies. In this case, references made to the mortality tables
applicable to this Policy are to be disregarded and substituted with an 80% male
20% female blend of the 1980 Commissioner's Standard Ordinary Smoker and
Non-Smoker Mortality Tables, Age Last Birthday.

DISTRIBUTION OF THE POLICIES

The principal underwriter (distributor) of our Policies is Washington
Square Securities, Inc. ("WSSI"), an affiliate of ReliaStar. It is registered as
a broker/dealer with the SEC and the NASD. We pay WSSI under a distribution
agreement.

We sell our policies through licensed insurance agents who are registered
representatives of affiliated and unaffiliated broker-dealers. Affiliated
broker-dealers who distribute our Policies include:

1. VESTAX Securities Corporation

2. Locust Street Securities, Inc.

3. Multi-Financial Securities, Corp.

4. IFG Network Securities, Inc.

5. Financial Network Investment Corporation

6. Granite Investment Services, Inc.

7. Guarantee Brokerage Services, Inc.

8. PrimeVest Financial Services, Inc.

9. Financial Northeastern Securities, Inc.

All broker/dealers who sell this Policy have entered into selling
agreements with us. Under these selling agreements, we pay a distribution
allowance to broker/dealers, who pay commissions to their agents/registered
representatives who sell this Policy.

In the first Policy Year, commissions generally will be no more than 35%
of the premiums paid up to the annualized Minimum Monthly Premium, plus 2.50%
of additional premiums. In any subsequent Policy Year, commissions generally
will be 2.50% of premiums paid in that year. Corresponding commissions will be
paid upon a requested increase in Face Amount. In addition, a commission of
.10% of the average monthly Accumulation Value excluding any Loan Amount during
each Policy Year may be paid. Further, registered representatives may be
eligible to receive certain overrides and other benefits based on the amount of
earned commissions.

For all Policies which use the ReliaStar Select*Life Variable Account, the
aggregate amount paid to WSSI under our Distribution Agreement was $69,346,267
in 2000, $51,164,472 in 1999, and $46,485,880 in 1998.

We pay wholesaler fees and marketing and training allowances. We may
provide repayments or make sponsor payments for broker/dealers to use in sales
contests for their registered representatives. We do hold training programs from
time to time at our own expense. We pay dealer concessions, wholesaling fees,
other allowances and the costs of all other incentives or training programs from
our resources which include sales charges.

Some broker/dealers receive a slightly lower distribution allowance because
we provide them with greater marketing and administrative support.

MANAGEMENT

The following is a list of the current directors and executive officers of
the Company, their principal occupation and business experience.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

Stephen M. Christopher(3) Chief Executive Officer, U.S. Life Group of
ReliaStar Life Insurance Company, Southland Life
Insurance Company, Equitable Life Insurance
Company of Iowa, Midwestern United Life Insurance
Company, Security-Connecticut Life Insurance
Company, Security Life of Denver Insurance Company
since 2001; Chief Executive Officer of Life
Insurance Company of Georgia since 2000; President
& Chief Executive Officer, of Midwestern
United Life Insurance Company from 1999 to 2001;
President and Chief Executive Officer of Security
Life of Denver from 1999 to 2001; President and
Chief Executive Officer of Southland Life
Insurance Company from 2000 to 2001; Director of
various subsidiaries of ING America Insurance
Holdings, Inc.

Paula Cludray-Engelke(3) Secretary of Ameribest Life Insurance Company,
Equitable Life Insurance Company of Iowa, First
Columbine Life Insurance Company, Golden American
Life Insurance Company, Life Insurance Company of
Georgia, Midwestern United Life Insurance Company,
Security Life of Denver Insurance Company,
Southland Life Insurance Company and United Life
and Annuity Insurance Company since 2001;
Secretary of Northern Life Insurance Company,
ReliaStar Life Insurance Company, ReliaStar Life
Insurance Company of New York and
Security-Connecticut Life Insurance Company since
2000; Secretary of Aetna Insurance Company of
America and Aetna Life Insurance and Annuity
Company since 2001; Assistant Secretary of Aetna
Insurance Company of America and Aetna Life
Insurance and Annuity Company since 2000.

Richard R. Crowl(3) Senior Vice President, General Counsel and
Secretary of ReliaStar Financial Corp. since 1996;
Senior Vice President and General Counsel of
Security-Connecticut Life Insurance Company since
1997; Senior Vice President and General Counsel of
Northern Life Insurance Company, ReliaStar Life
Insurance Company, and ReliaStar Life Insurance
Company of New York since 1996; Senior Vice
President and General Counsel of ReliaStar United
Services Life Insurance Company from 1996 to 1998
at which time this company merged into ReliaStar
Life Insurance Company; Senior Vice President and
General Counsel of ReliaStar Investment Research,
Inc. (formerly known as Washington Square
Advisers, Inc.) since 1986; Vice President and
Associate General Counsel of ReliaStar Financial
Corp. from 1989 to 1996; Vice President and
Associate General Counsel of ReliaStar Life
Insurance Company from 1985 to 1996; Director of
various subsidiaries of ING America Insurance
Holdings, Inc.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

Michael J. Dubes(3) Executive Vice President, U.S. Life Group of
ReliaStar Life Insurance Company, Equitable Life
Insurance Company of Iowa, Security-Connecticut
Life Insurance Company, Security Life of Denver
Insurance Company, Midwestern United Life
Insurance Company and Southland Life Insurance
Company since 2001; Chairman, President and Chief
Executive Officer of Washington Square Securities,
Inc. since 2001; President and Chief Executive
Officer of Northern Life Insurance Company from
1994 to 2001; Senior Vice President of ReliaStar
Life Insurance Company from 1987 to 2001; Senior
Vice President of Security-Connecticut Life
Insurance Company from 1999 to 2001; Chairman of
Washington Square Securities, Inc. from 1987 to
1994; Senior Vice President of ReliaStar Financial
Corp. since 1997; Director and Officer of various
subsidiaries of ReliaStar Financial Corp.

James R. Gelder(3) Chief Executive Officer, U.S. Life Group of
ReliaStar Life Insurance Company, Security Life of
Denver Insurance Company, Equitable Life Insurance
Company of Iowa, Midwestern United Life Insurance
Company and Southland Life Insurance Company since
2001; Senior Vice President, ReliaStar Financial
Corp. since 2000; President and Chief Executive
Officer of ReliaStar Life Insurance Company of New
York since 1999; Senior Vice President of
ReliaStar Life Insurance Company from 1999 to
2001; Executive Vice President of ReliaStar Life
Insurance Company of New York from 1998 to 1999;
President of Security-Connecticut Life Insurance
Company since 1998; Chief Executive Officer of
Security-Connecticut Life Insurance from 1998 to
2001; Executive Vice President and Chief Operating
Officer of Security-Connecticut Life Insurance
Company from 1997 to 1998; Vice President of
ReliaStar Life Insurance Company from 1994 to
1999; Director and Officer of various subsidiaries
of ReliaStar Financial Corp.

Paul H. Gulstrand(3) Executive Vice President, ReliaStar Life Insurance
Company since 2000; Senior Vice President of
ReliaStar Life Insurance Company from 1999 to
2000; Vice President of ReliaStar Life Insurance
Company from 1996 to 1999; Second Vice President
of ReliaStar Life Insurance Company from 1995 to
1996; Regional Vice President of ReliaStar Life
Insurance Company from 1994 to 1995.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

Wayne R. Huneke(2) Chief Financial Officer, Aetna Insurance Company
of America, Aetna Life Insurance and Annuity
Company, Ameribest Life Insurance Company,
Equitable Life Insurance Company of Iowa, First
Columbine Life Insurance Company, Golden American
Life Insurance Company, Life Insurance Company of
Georgia, Midwestern United Life Insurance Company,
Security Life of Denver Insurance Company,
Southland Life Insurance Company and USG Annuity
& Life Company since 2001; Vice President and
Chief Financial Officer of ReliaStar Life
Insurance Company of New York since 2000; Director
of Ameribest Life Insurance Company, Equitable
American Life Insurance Company, Equitable Life
Insurance Company of Iowa, First Columbine Life
Insurance Company, First Golden American Life
Insurance Company, Golden American Life Insurance
Company, Life Insurance Company of Georgia,
Security Life of Denver Insurance Company,
Southland Life Insurance Company, USG Annuity
& Life Company and United Life and Annuity
Insurance since 2001; Chief Financial Officer, ING
North America Insurance Corporation since 2000;
Chief Financial Officer, ING America Insurance
Holdings, Inc. since 2000; Director of Aetna
Insurance Company of America, Aetna Life Insurance
and Annuity Company, Aetna Retirement Holdings,
Inc. and Aetna Retirement Services, Inc. since
2000; Senior Executive Vice President of ReliaStar
Financial Corp. since 1999; and Senior Executive
Vice President and Chief Financial Officer of
ReliaStar Life Insurance Company since 2000;
Senior Executive Vice President of ReliaStar
Financial Life Insurance Company from 1999 to
2000; Senior Vice President of ReliaStar Financial
Corp. and ReliaStar Life Insurance Company from
1994 to 1999; Chief Financial Officer and
Treasurer of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company from 1994 to
1997; Director and Officer of various subsidiaries
of ReliaStar Financial Corp.

Mark S. Jordahl(3) Vice President and Chief Investment Officer,
ReliaStar Life Insurance Company of New York since
2000; Vice President and Chief Investment Officer
of Northern Life Insurance Company since 2000;
President and Chief Executive Officer of ReliaStar
Investment Research, Inc. since 1998; Senior Vice
President and Chief Investment Officer of
ReliaStar Life Insurance Company and ReliaStar
Financial Corp. since 1998; Senior Vice President
of Security-Connecticut Life Insurance Company
since 1998 and Chief Investment Officer since
2000; Vice President of ReliaStar Life Insurance
Company and ReliaStar Financial Corp from 1987 to
1998.

Kenneth U. Kuk(3) Executive Vice President of ReliaStar Financial
Corp. and ReliaStar Life Insurance Company since
1999; Senior Vice President of ReliaStar Financial
Corp. and ReliaStar Life Insurance Company from
1996 to 1999; Vice President of ReliaStar Life
Insurance Company from 1996 to 1998; Vice
President of ReliaStar Financial Corp. from 1991
to 1998; President of Washington Square Advisers,
Inc. from 1995 to 1998; Chairman of ReliaStar
Mortgage Corporation from 1988 to 1998; Director
of ReliaStar Life Insurance Company of New York.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

P. Randall Lowery(1) Director of Ameribest Life Insurance Company,
Equitable Life Insurance Company of Iowa, First
Columbine Life Insurance Company, Golden American
Life Insurance Company, Life Insurance Company of
Georgia, Midwestern United Life Insurance Company,
Northern Life Insurance Company, ReliaStar Life
Insurance Company, Security Life of Denver
Insurance Company, Southland Life Insurance
Company, USG Annuity & Life Company and United
Life and Annuity Insurance since 2001; Director of
Aetna Insurance Company of America, Aetna Life
Insurance and Annuity Company and Aetna Retirement
Services, Inc. since 2000.

Thomas J. McInerney(1) Director of Ameribest Life Insurance Company,
Equitable Life Insurance Company of Iowa, First
Columbine Life Insurance Company, Golden American
Life Insurance Company, Life Insurance Company of
Georgia, Midwestern United Life Insurance Company,
Northern Life Insurance Company, ReliaStar Life
Insurance Company, Security-Connecticut Life
Insurance Company, Security Life of Denver
Insurance Company, Southland Life Insurance
Company, USG Annuity & Life Company and United
Life and Annuity since 2001; President and
Director of Aetna Insurance Company of America
since 1999; President and Director of Aetna Life
Insurance and Annuity Company since 1997.

James R. Miller(3) Senior Vice President of ReliaStar Life Insurance
Company since 2000; Senior Vice President, Chief
Financial Officer and Treasurer, of ReliaStar Life
Insurance Company from 1997 to 2000; Senior Vice
President and Chief Financial Officer of ReliaStar
Financial Corp. since 2000; Senior Vice President,
Treasurer and Chief Financial Officer of ReliaStar
Financial Corp. from 1997 to 2000; Executive Vice
President and Chief Operating Officer of Northern
Life Insurance Company from 1992 to 1997; Vice
President of ReliaStar Financial Corp. from 1985
to 1992; Director and Officer of various
subsidiaries of ReliaStar Financial Corp.

Blake W. Mohr(3) Executive Vice President, ReliaStar Life Insurance
Company since 2000; Senior Vice President of
ReliaStar Life Insurance Company from 1999 to
2000; Vice President of ReliaStar Life Insurance
Company from 1996 to 1999; Second Vice President
of ReliaStar Life Insurance Company from 1993 to
1997.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

Robert C. Salipante(2) Chief Operating Officer, ReliaStar Life Insurance
Company since 2001; Chief Executive Officer of
Ameribest Life Insurance Company, Equitable Life
Insurance Company of Iowa, Golden American Life
Insurance Company, Midwestern United Life
Insurance Company, Security Life of Denver
Insurance Company, Security-Connecticut Life
Insurance Company, Southland Life Insurance
Company and USG Annuity & Life Company since
2001; Director of Ameribest Life Insurance
Company, Equitable Life Insurance Company of Iowa,
First Columbine Life Insurance Company, Golden
American Life Insurance Company, Life Insurance
Company of Georgia, Midwestern United Life
Insurance Company, Northern Life Insurance
Company, ReliaStar Life Insurance Company,
Security Life of Denver Insurance Company,
Southland Life Insurance Company, USG Annuity
& Life Company and United Life and Annuity
Insurance since 2001; Chief Executive Officer, ING
North America Insurance Corporation since 2000;
Director of Aetna Insurance Company of America,
Aetna Life Insurance and Annuity Company, Aetna
Retirement Holdings, Inc., and Aetna Retirement
Services, Inc., since 2000; Chairman of
Security-Connecticut Life Insurance Company since
2000; President and Chief Operating Officer of
ReliaStar Financial Corp. since 1999; President
and Chief Operating Officer of ReliaStar Life
Insurance Company from 1999 to 2001; Senior Vice
President of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company from 1996 to
1999; Vice Chairman of ReliaStar Life Insurance
Company of New York since 1999; President and
Chief Executive Officer of ReliaStar Life
Insurance Company of New York from 1998 to 1999;
Senior Vice President of ReliaStar Financial Corp.
from 1994 to 1996; Senior Vice President and Chief
Financial Officer of ReliaStar Financial Corp.
from 1992 to 1994; Director and Officer of various
subsidiaries of ReliaStar Financial Corp.

Chris D. Schreier(3) President of Ameribest Insurance Company,
Equitable Life Insurance Company of Iowa, Golden
American Life Insurance Company, Midwestern United
Life Insurance Company, ReliaStar Life Insurance
Company, Security Life of Denver Insurance
Company, Southland Life Insurance Company and USG
Annuity and Life Company since 2001; Director of
Southland Life Insurance Company and United Life
and Annuity Insurance Company since 2001; Vice
President and Assistant Treasurer of Northern Life
Insurance Company since 2000; Vice President and
Controller of ReliaStar Financial Corp. since
1999; Vice President of ReliaStar Life Insurance
Company of New York since 2000; Vice President and
Assistant Treasurer, Security-Connecticut Life
Insurance Company since 2000; Second Vice
President, ReliaStar Financial Corp. from
1994-1999; Second Vice President of ReliaStar Life
Insurance Company from 1996-1999; Treasurer,
ReliaStar Life Insurance Company of New York from
1997-1999.

Mark A. Tullis(1) Director of ReliaStar Life Insurance Company since
2001; Director of Midwestern United Life Insurance
Company since 2000; Director of Ameribest Life
Insurance Company, Equitable American Life
Insurance Company, Equitable Life Insurance
Company of Iowa, First Columbine Life Insurance
Company, First Golden American Life Insurance
Company, Golden American Life Insurance Company,
Life Insurance Company of Georgia, Security Life
of Denver Insurance Company, Southland Life
Insurance Company, USG Annuity & Life Company
and United Life and Annuity Insurance Company
since 1999.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- -----------------------

John G. Turner(3) Director and Vice Chairman, ING America Insurance
Holdings, Inc. since 2000; Chairman and Chief
Executive Officer of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1993;
Chairman of ReliaStar United Services Life
Insurance Company from 1995 until its merger with
ReliaStar Life Insurance Company in 1998; Chairman
of ReliaStar Life Insurance Company of New York
since 1995; Chairman of Northern Life Insurance
Company since 1992; Director and Officer of
various subsidiaries of ReliaStar Financial Corp.

Roger A. Weber(3) Senior Vice President of ReliaStar Life Insurance
Company since 1999; Vice President of ReliaStar
Life Insurance Company from 1996 to 1999; Vice
President and Chief Auditor of ReliaStar Financial
Corp. and ReliaStar Life Insurance Company in
1996; Second Vice President and Auditor of
ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1989 to 1996.

Theresa A. Wurst(3) Executive Vice President and Assistant Secretary,
ReliaStar Life Insurance Company since 2000;
Senior Vice President of ReliaStar Life Insurance
Company from 1999 to 2000; Vice President of
ReliaStar Life Insurance Company from 1993 to
1999.

------------------
(1) Director of ReliaStar Life Insurance Company
(2) Director and Officer of ReliaStar Life Insurance Company
(3) Officer of ReliaStar Life Insurance Company

The following is a list of the current directors and executive officers of
the principal underwriter and their business addresses.

NAME AND PRINCIPAL
BUSINESS ADDRESS POSITIONS AND OFFICES
---------------- ---------------------

Michael J. Dubes* Director, Chairman, President and Chief Executive
Officer

Miles Z. Gordon Director
2780 Skypark Drive, Ste. 300
Torrance, CA 90505

Brian Nygaard Director
5780 Powers Ferry Rd., NW
Atlanta, GA 30327-4390

Gene Grayson** Executive Vice President -- National Sales &
Marketing

Seth Schwartz** Vice President and Compliance Officer

Kenneth Severud** Vice President and Chief Operations Officer

Daniel S. Kuntz** Assistant Vice President, Chief Financial Officer
& Treasurer

Paula Cludray-Engelke* Secretary

------------------
* 20 Washington Avenue South
Minneapolis, Minnesota 55401

** 111 Washington Avenue South
Minneapolis, Minnesota 55401

STATE REGULATION

We are subject to the laws of the State of Minnesota governing insurance
companies and to regulation and supervision by the Insurance Division of the
State of Minnesota. We file an annual statement in a prescribed form with the
Insurance Division each year, and in each state we do business, covering our
operations for the preceding year and our financial condition as of the end of
that year. Our books and accounts are subject to review by the Insurance
Division and a full examination of our operations is conducted periodically
(usually every three years) by the National Association of Insurance
Commissioners. This regulation does not, however, involve supervision or
management of our investment practices or policies.

In addition, we are subject to regulation under the insurance laws of other
jurisdictions in which we operate.

We are also subject to supervision and verification by the State of
Minnesota regarding participating business allocated to the Participation Fund
Account, which was established in connection with the reorganization and
demutualization of the Company in 1989. The Participation Fund Account was
established for the purpose of maintaining the dividend practices relative to
certain policies previously issued by the Company's former Mutual Department.
The Participation Fund Account is not a separate account as described under
Minnesota Statutes Chapter 61A. An annual examination of the Participation Fund
Account is made by independent consulting actuaries representing the Insurance
Division of the State of Minnesota.

MASSACHUSETTS AND MONTANA RESIDENTS

If you are a resident of Massachusetts or Montana, you should disregard all
Policy provisions described in the prospectus that are based on the sex of the
Insured. We will issue this Policy in Massachusetts and Montana on a unisex
basis. You also should disregard references made to the mortality tables
applicable to this Policy and substitute these references with an 80% male 20%
female blend of the 1980 Commissioner's Standard Ordinary Smoker and Non-Smoker
Mortality Tables, Age Last Birthday. You should also be aware that the
Illustrations of Policy Values that are included as an exhibit to the
Registration Statement are sex distinct, and therefore, you should request a
unisex illustration.

LEGAL PROCEEDINGS

The Variable Account is not a party to any pending legal proceedings. The
Company is a defendant in various lawsuits in connection with the normal conduct
of its insurance operations. Some of the claims seek to be granted class action
status and many of the claims seek both compensatory and punitive damages. In
the opinion of management, the ultimate resolution of such litigation will not
have a material adverse impact to the financial position of the Company. It
should be noted, however, that a number of financial services companies have
been subjected to significant awards in connection with punitive damages claims
and the Company can make no assurances that it will not be subjected to such an
award. The defense of the putative class actions pending against the Company may
require the commitment of substantial internal resources and the retention of
legal counsel and expert advisors.

The Company was a defendant in litigation in New York State court regarding
an alleged reinsurance contract. The plaintiff alleged damages in excess of $100
million. The Company believed that no contract existed and the suit was without
merit. The trial court granted the Company's motion for summary judgment.
Plaintiff has appealed this decision, and the decision was affirmed upon appeal.

BONDING ARRANGEMENTS

The Company maintains a blanket bond is maintained providing $25,000,000
coverage for our officers and employees and those of Washington Square
Securities, Inc., (WSSI), subject to a $500,000 deductible.

LEGAL MATTERS

Legal matters in connection with the Variable Account and the Policy
described in this Prospectus have been passed upon by Michael S. Fischer,
Esquire, Attorney for the Company.

EXPERTS

The financial statements of ReliaStar Select*Life Variable Account as of
December 31, 2000 and for the year then ended and the statutory basis financial
statements of ReliaStar Life Insurance Company at December 31, 2000 and for the
year then ended, appearing in this Prospectus have been audited by Ernst &
Young LLP, independent auditors, and the financial statements of ReliaStar
Select*Life Variable Account at December 31, 1999 and 1998, and for each of the
two years then ended and the statutory basis financial statements of ReliaStar
Life Insurance Company at December 31, 1999 and for the year then ended have
been audited by Deloitte & Touche LLP, independent auditors, as set forth in
their respective reports thereon appearing elsewhere herein, and are included in
reliance upon such reports given on the authority of such firms as experts in
accounting and auditing.

Actuarial matters included in this Prospectus have been examined by Craig
A. Krogstad, F.S.A., M.A.A.A., as stated in the opinion filed as an exhibit to
the Registration Statement.

REGISTRATION STATEMENT CONTAINS FURTHER INFORMATION

A Registration Statement has been filed with the SEC under the Securities
Act of 1933 with respect to the Policies. This Prospectus does not contain all
information included in the Registration Statement, its amendments and exhibits.
For further information concerning the Variable Account, the Funds, the Policies
and us, please refer to the Registration Statement.

Statements in this Prospectus concerning provisions of the Policy and other
legal documents are summaries. Please refer to the documents as filed with the
SEC for a complete statement of the provisions of those documents.

Information may be obtained from the SEC's principal office in Washington,
D.C., for a fee it prescribes, or examined there without charge.

FINANCIAL STATEMENTS

The financial statements for the Variable Account reflect the operations of
the Variable Account and its Sub-Accounts as of December 31, 2000 and for each
of the three years in the period then ended. The financial statements are
audited. The periods covered are not necessarily indicative of the longer term
performance of the assets held in the Variable Account.

The statutory basis financial statements of ReliaStar Life Insurance
Company which are included in this Prospectus should be distinguished from the
financial statements of the Variable Account and should be considered only as
bearing upon the ability of ReliaStar Life Insurance Company to meet its
obligations under the Policies. They should not be considered as bearing on the
investment performance of the assets held in the Variable Account. These
statutory basis financial statements are as of December 31, 2000 and 1999, and
for the years then ended. The financial statements are audited. The periods
covered are not necessarily indicative of the longer term performance of the
Company.

INDEPENDENT AUDITORS' REPORT

Board of Directors
ReliaStar Life Insurance Company

We have audited the accompanying individual and combined statements of assets
and liabilities of ReliaStar Select*Life Variable Account as of December 31,
2000 and the related statements of operations and changes in policy owners'
equity for the year then ended. These financial statements are the
responsibility of the management of ReliaStar Life Insurance Company. Our
responsibility is to express an opinion on these financial statements based on
our audit. The combined statements of operations and changes in policy owners'
equity (consisting of the portfolios listed within the combined statements of
operations and changes in policy owners' equity) for the years ended December
31, 1999 and 1998, were audited by other auditors whose report dated February
11, 2000, expressed an unqualified opinion on those statements.

We have conducted our audit in accordance with auditing standards generally
accepted in the 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 misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 2000, by correspondence with the account custodians. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
sub-accounts constituting the Select*Life Variable Account as of December 31,
2000 and the results of their operations and changes in their policy owners'
equity for the year then ended in conformity with accounting principles
generally accepted in the United States.

/S/ ERNST & YOUNG LLP

Minneapolis, Minnesota
February 9, 2001

INDEPENDENT AUDITORS' REPORT

Board of Directors
ReliaStar Life Insurance Company

We have audited the accompanying combined statements of operations and changes
in policy owners' equity of ReliaStar Select*Life Variable Account (including
the sub-accounts which comprise the Account) for the years ended December 31,
1999 and 1998. These financial statements are the responsibility of the
management of ReliaStar Life Insurance Company. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. 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 includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the results of the operations and changes in policy
owners' equity of the respective sub-accounts constituting the ReliaStar
Select*Life Variable Account for the years ended December 31, 1999 and 1998, in
conformity with accounting principles generally accepted in the United States of
America.

/S/ DELOITTE & TOUCHE LLP

Minneapolis, Minnesota
February 11, 2000

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2000
(IN THOUSANDS, EXCEPT SHARES)

SHARES COST MARKET VALUE
ASSETS: ------------ ---------- -------------

Investments in mutual funds at market value:

The Alger American Fund:
Alger American Growth Portfolio ................................... 899,670 $ 51,608 $ 42,527
Alger American Leveraged AllCap Portfolio ......................... 42,267 2,039 1,640
Alger American MidCap Growth Portfolio ............................ 377,342 12,334 11,554
Alger American Small Capitalization Portfolio ..................... 306,717 9,061 7,205
AIM Variable Insurance Funds:
AIM V.I. Dent Demographic Trends Fund ............................. 432,041 4,313 3,547
Fidelity's Variable Insurance Products Fund (VIP):
VIP Equity-Income Portfolio -- IC Shares .......................... 3,958,138 86,633 101,012
VIP Growth Portfolio -- IC Shares ................................. 4,138,801 148,223 180,658
VIP High Income Portfolio -- IC Shares ............................ 1,799,877 20,564 14,723
VIP Money Market Portfolio -- IC Shares ........................... 43,174,427 43,174 43,175
VIP Overseas Portfolio -- IC Shares ............................... 997,163 19,533 19,933
Fidelity's Variable Insurance Products Fund (VIP II):
VIP II Asset Manager Portfolio -- IC Shares ....................... 1,727,987 27,872 27,647
VIP II Contrafund Portfolio -- IC Shares .......................... 3,080,702 72,063 73,136
VIP II Index 500 Portfolio -- IC Shares ........................... 551,167 74,990 82,416
VIP II Investment Grade Bond Portfolio -- IC Shares ............... 616,292 7,521 7,759
Janus Aspen Series:
Aggressive Growth Portfolio ....................................... 1,088,067 56,119 39,497
Growth Portfolio .................................................. 1,286,939 39,374 34,078
International Growth Portfolio .................................... 618,202 23,928 19,102
Worldwide Growth Portfolio ........................................ 1,627,888 70,135 60,200
Neuberger Berman Advisers Management Trust:
AMT Limited Maturity Bond Portfolio ............................... 317,701 4,134 4,190
AMT Partners Portfolio ............................................ 563,356 9,818 9,110
AMT Socially Responsive Portfolio ................................. 19,854 217 222
Pilgrim Variable Products Trust:
Pilgrim VP Growth Opportunities Portfolio ......................... 180,396 1,882 1,610
Pilgrim VP Growth + Value Portfolio ............................... 766,501 23,144 17,552
Pilgrim VP High Yield Bond Portfolio .............................. 259,901 1,127 897
Pilgrim VP International Value Portfolio .......................... 493,249 6,518 6,012
Pilgrim VP MagnaCap Portfolio ..................................... 13,167 135 134
Pilgrim VP MidCap Opportunities Portfolio ......................... 46,114 444 417
Pilgrim VP Research Enhanced Index Portfolio ...................... 497,154 2,392 2,182
Pilgrim VP SmallCap Opportunities Portfolio ....................... 1,041,308 28,926 27,834
OCC Accumulation Trust:
Equity Portfolio .................................................. 70,494 2,453 2,544
Global Equity Portfolio ........................................... 92,852 1,531 1,426
Managed Portfolio ................................................. 140,931 5,751 6,088
Small Cap Portfolio ............................................... 192,132 4,686 6,196
Putnam Variable Trust:
Putnam VT Asia Pacific Growth Fund -- Class IA Shares ............. 239,425 2,258 2,227
Putnam VT Diversified Income Fund -- Class IA Shares .............. 155,651 1,642 1,424
Putnam VT Growth and Income Fund -- Class IA Shares ............... 1,657,480 42,895 42,846
Putnam VT New Opportunities Fund -- Class IA Shares ............... 1,657,383 41,608 49,539
Putnam VT Utilities Growth and Income Fund -- Class IA Shares ..... 160,056 2,646 2,904
Putnam VT Voyager Fund -- Class IA Shares ......................... 2,552,283 108,489 124,603
----------
Total Assets .................................................... $1,079,766
==========
LIABILITIES AND POLICY OWNERS' EQUITY:
Due to ReliaStar Life Insurance Company
for contract charges .............................................. $ 64
Policy Owners' Equity .............................................. 1,079,702
----------
Total Liabilities and Policy Owners' Equity ....................... $1,079,766
==========

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND
CHANGES IN POLICYOWNERS' EQUITY
For the years ended December 31, 2000, 1999 and 1998
(In Thousands, Except Value Per Unit)

Total All Funds
------------------------------------------------------
2000 1999 1998
---------------- ---------------- ----------------

Net investment income:
Reinvested dividend income ....................... $ 14,867 $ 9,107 $ 7,644
Reinvested capital gains ......................... 96,904 41,674 34,463
Administrative expenses .......................... (9,393) (7,060) (4,152)
---------------- ---------------- ----------------
Net investment income (loss)
and capital gains .............................. 102,378 43,721 37,955
---------------- ---------------- ----------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .................................. 48,751 39,243 12,939
Increase (decrease) in unrealized appreciation
of investments .................................. (287,530) 152,399 55,885
---------------- ---------------- ----------------
Net realized and unrealized gains (losses) ..... (238,779) 191,642 68,824
---------------- ---------------- ----------------
Additions (reductions) from operations ......... (136,401) 235,363 106,779
---------------- ---------------- ----------------

Policy Owners' transactions:
Net premium payments ............................. 286,648 220,865 184,473
Transfers between funds and/or fixed account ..... (1,205) (627) (251)
Policy loans ..................................... (17,072) (12,966) (5,343)
Loan collateral interest crediting ............... 1,205 692 462
Surrenders ....................................... (29,637) (23,743) (16,659)
Death benefits ................................... (1,997) (1,708) (1,646)
Costs of insurance charges ....................... (49,885) (43,115) (34,996)
Death benefit guarantee charges .................. (6,564) (1,938) (630)
Monthly expense charges .......................... (11,328) (6,873) (5,413)
---------------- ---------------- ----------------
Additions (reductions) for policy
owners' transactions .......................... 170,165 130,587 119,997
---------------- ---------------- ----------------
Net additions (reductions) for the year ........ 33,764 365,950 226,776

Policy Owners' Equity, beginning of the year ...... 1,045,938 679,988 453,212
---------------- ---------------- ----------------
Policy Owners' Equity, end of the year ............ $ 1,079,702 $ 1,045,938 $ 679,988
================ ================ ================

Units Outstanding, beginning of the year .......... 36,956,472.845 29,584,452.030 21,952,826.717
Units Outstanding, end of the year ................ 44,400,752.180 36,956,472.845 29,584,452.030

Net Asset Value per Unit:
Select*Life I .................................. -- -- --
Select*Life Series 2000 ........................ -- -- --

[WIDE TABLE CONTINUED FROM ABOVE]

Alger American
Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ....................... $ -- $ 22 $ 3
Reinvested capital gains ......................... 5,677 1,535 182
Administrative expenses .......................... (353) (183) (16)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .............................. 5,324 1,374 169
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .................................. 1,644 441 37
Increase (decrease) in unrealized appreciation
of investments .................................. (14,672) 4,801 789
--------------- --------------- ---------------
Net realized and unrealized gains (losses) ..... (13,028) 5,242 826
--------------- --------------- ---------------
Additions (reductions) from operations ......... (7,704) 6,616 995
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ............................. 14,594 10,595 2,300
Transfers between funds and/or fixed account ..... 3,527 15,621 2,512
Policy loans ..................................... (438) (234) (40)
Loan collateral interest crediting ............... 27 13 --
Surrenders ....................................... (770) (270) (19)
Death benefits ................................... (47) (18) --
Costs of insurance charges ....................... (2,144) (1,284) (194)
Death benefit guarantee charges .................. (98) (35) (4)
Monthly expense charges .......................... (1,020) (275) (28)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions .......................... 13,631 24,113 4,527
--------------- --------------- ---------------
Net additions (reductions) for the year ........ 5,927 30,729 5,522

Policy Owners' Equity, beginning of the year ...... 36,594 5,865 343
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ............ $ 42,521 $ 36,594 $ 5,865
=============== =============== ===============

Units Outstanding, beginning of the year .......... 1,879,018.360 402,669.328 34,697.106
Units Outstanding, end of the year ................ 2,562,849.482 1,879,018.360 402,669.328

Net Asset Value per Unit:
Select*Life I .................................. $ 16.185540 $ 19.144387 $ 14.429571
Select*Life Series 2000 ........................ $ 16.632526 $ 19.516075 $ 14.592177

[WIDE TABLE CONTINUED FROM ABOVE]

Alger American
Leveraged AllCap Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ....................... $ -- $ -- $ --
Reinvested capital gains ......................... 8 -- --
Administrative expenses .......................... (5) -- --
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .............................. 3 -- --
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .................................. (3) -- --
Increase (decrease) in unrealized appreciation
of investments .................................. (399) -- --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) ..... (402) -- --
--------------- --------------- ---------------
Additions (reductions) from operations ......... (399) -- --
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ............................. 463 -- --
Transfers between funds and/or fixed account ..... 1,622 -- --
Policy loans ..................................... 6 -- --
Loan collateral interest crediting ............... -- -- --
Surrenders ....................................... -- -- --
Death benefits ................................... -- -- --
Costs of insurance charges ....................... (31) -- --
Death benefit guarantee charges .................. (17) -- --
Monthly expense charges .......................... (3) -- --
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions .......................... 2,040 -- --
--------------- --------------- ---------------
Net additions (reductions) for the year ........ 1,641 -- --

Policy Owners' Equity, beginning of the year ...... -- -- --
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ............ $ 1,641 $ -- $ --
=============== =============== ===============

Units Outstanding, beginning of the year .......... -- -- --
Units Outstanding, end of the year ................ 217,228.830 -- --

Net Asset Value per Unit:
Select*Life I .................................. $ -- $ -- $ --
Select*Life Series 2000 ........................ $ 7.549606 $ -- $ --

[WIDE TABLE CONTINUED FROM ABOVE]

Alger American
MidCap Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ....................... $ -- $ -- $ --
Reinvested capital gains ......................... 925 415 61
Administrative expenses .......................... (68) (27) (8)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .............................. 857 388 53
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .................................. 859 59 (30)
Increase (decrease) in unrealized appreciation
of investments .................................. (1,604) 622 218
--------------- --------------- ---------------
Net realized and unrealized gains (losses) ..... (745) 681 188
--------------- --------------- ---------------
Additions (reductions) from operations ......... 112 1,069 241
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ............................. 2,577 1,336 1,205
Transfers between funds and/or fixed account ..... 4,739 725 512
Policy loans ..................................... (48) (21) --
Loan collateral interest crediting ............... 4 1 --
Surrenders ....................................... (112) (67) (9)
Death benefits ................................... (7) (1) (11)
Costs of insurance charges ....................... (445) (223) (82)
Death benefit guarantee charges .................. (16) (7) (4)
Monthly expense charges .......................... (229) (45) (12)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions .......................... 6,463 1,698 1,599
--------------- --------------- ---------------
Net additions (reductions) for the year ........ 6,575 2,767 1,840

Policy Owners' Equity, beginning of the year ...... 4,977 2,210 370
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ............ $ 11,552 $ 4,977 $ 2,210
=============== =============== ===============

Units Outstanding, beginning of the year .......... 295,715.008 172,814.592 37,772.926
Units Outstanding, end of the year ................ 629,502.779 295,715.008 172,814.592

Net Asset Value per Unit:
Select*Life I .................................. $ 17.934136 $ 16.557934 $ 12.659555
Select*Life Series 2000 ........................ $ 18.429460 $ 16.879516 $ 12.802277

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND
CHANGES IN POLICYOWNERS' EQUITY, Continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands, Except Value Per Unit)

Alger American
Small Capitalization Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... 2,614 402 155
Administrative expenses ...................... (60) (32) (8)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 2,554 370 147
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares ............................... (2,148) 109 6
Increase (decrease) in unrealized appreciation
of investments ............................... (3,137) 1,171 133
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (5,285) 1,280 139
--------------- --------------- ---------------
Additions (reductions) from operations ..... (2,731) 1,650 286
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 2,710 1,603 1,373
Transfers between funds and/or fixed account . 1,468 911 555
Policy loans ................................. (41) (20) (19)
Loan collateral interest crediting ........... 3 2 --
Surrenders ................................... (102) (42) (8)
Death benefits ............................... (12) (5) --
Cost of insurance charges .................... (364) (236) (124)
Death benefit guarantee charges .............. (18) (10) (6)
Monthly expense charges ...................... (182) (50) (18)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 3,462 2,153 1,753
--------------- --------------- ---------------
Net additions (reductions) for the year .... 731 3,803 2,039

Policy Owners' Equity, beginning of the year .. 6,482 2,679 640
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 7,213 $ 6,482 $ 2,679
=============== =============== ===============

Units Outstanding, beginning of the year ...... 388,991.269 230,199.995 63,628.672
Units Outstanding, end of the year ............ 595,122.238 388,991.269 230,199.995

Net Asset Value per Unit:
Select*Life I .............................. $ 11.822079 $ 16.369247 $ 11.505655
Select*Life Series 2000 .................... $ 12.148813 $ 16.687171 $ 11.635433

[WIDE TABLE CONTINUED FROM ABOVE]

AIM V.I.
Dent Demographic Trends Fund
------------------------------------------
2000 1999 1998
-------------- --------- ---------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (10) -- --
-------------- --------- ---------
Net investment income (loss)
and capital gains .......................... (10) -- --
-------------- --------- ---------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. -- -- --
Increase (decrease) in unrealized appreciation
of investments .............................. (766) -- --
-------------- --------- ---------
Net realized and unrealized gains (losses) . (766) -- --
-------------- --------- ---------
Additions (reductions) from operations ..... (776) -- --
-------------- --------- ---------

Policy Owners' transactions:
Net premium payments ......................... 1,070 -- --
Transfers between funds and/or fixed account . 3,368 -- --
Policy loans ................................. (7) -- --
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... (1) -- --
Death benefits ............................... -- -- --
Cost of insurance charges .................... (58) -- --
Death benefit guarantee charges .............. (42) -- --
Monthly expense charges ...................... (7) -- --
-------------- --------- ---------
Additions (reductions) for policy
owners' transactions ...................... 4,323 -- --
-------------- --------- ---------
Net additions (reductions) for the year .... 3,547 -- --

Policy Owners' Equity, beginning of the year .. -- -- --
-------------- --------- ---------
Policy Owners' Equity, end of the year ........ $ 3,547 $ -- $ --
============== ========= =========

Units Outstanding, beginning of the year ...... -- -- --
Units Outstanding, end of the year ............ 450,039.898 -- --

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 7.879171 $ -- $ --

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP
Equity-Income Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 1,656 $ 1,476 $ 1,175
Reinvested capital gains ..................... 6,237 3,264 4,180
Administrative expenses ...................... (801) (864) (705)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 7,092 3,876 4,650
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 6,631 6,688 2,533
Increase (decrease) in unrealized appreciation
of investments .............................. (6,727) (5,132) 2,086
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (96) 1,556 4,619
--------------- --------------- ---------------
Additions (reductions) from operations ..... 6,996 5,432 9,269
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 12,023 15,156 18,161
Transfers between funds and/or fixed account . (8,160) (8,382) (2,096)
Policy loans ................................. (1,432) (2,073) (1,121)
Loan collateral interest crediting ........... 205 146 113
Surrenders ................................... (3,373) (3,298) (3,152)
Death benefits ............................... (142) (420) (264)
Cost of insurance charges .................... (3,898) (4,541) (4,711)
Death benefit guarantee charges .............. (274) (139) (114)
Monthly expense charges ...................... (529) (625) (659)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (5,580) (4,176) 6,157
--------------- --------------- ---------------
Net additions (reductions) for the year .... 1,416 1,256 15,426

Policy Owners' Equity, beginning of the year .. 99,592 98,336 82,910
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 101,008 $ 99,592 $ 98,336
=============== =============== ===============

Units Outstanding, beginning of the year ...... 3,274,491.085 3,348,679.958 3,053,047.193
Units Outstanding, end of the year ............ 3,123,716.907 3,274,491.085 3,348,679.958

Net Asset Value per Unit:
Select*Life I .............................. $ 44.043454 $ 40.949711 $ 38.822462
Select*Life Series 2000 .................... $ 27.127090 $ 25.020668 $ 23.531218

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP
Growth Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 226 $ 271 $ 537
Reinvested capital gains ..................... 22,462 17,026 14,057
Administrative expenses ...................... (1,732) (1,452) (971)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 20,956 15,845 13,623
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 6,878 10,864 4,873
Increase (decrease) in unrealized appreciation
of investments .............................. (51,728) 28,390 22,732
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (44,850) 39,254 27,605
--------------- --------------- ---------------
Additions (reductions) from operations ..... (23,894) 55,099 41,228
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 21,389 22,365 21,080
Transfers between funds and/or fixed account . (3,433) (3,110) (1,512)
Policy loans ................................. (4,275) (3,915) (1,618)
Loan collateral interest crediting ........... 347 196 138
Surrenders ................................... (6,480) (6,338) (4,327)
Death benefits ............................... (492) (409) (370)
Cost of insurance charges .................... (7,498) (7,181) (6,378)
Death benefit guarantee charges .............. (761) (270) (168)
Monthly expense charges ...................... (1,080) (1,047) (956)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (2,283) 291 5,889
--------------- --------------- ---------------
Net additions (reductions) for the year .... (26,177) 55,390 47,117

Policy Owners' Equity, beginning of the year .. 206,780 151,390 104,273
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 180,603 $ 206,780 $ 151,390
=============== =============== ===============

Units Outstanding, beginning of the year ...... 4,401,398.280 4,282,470.411 3,971,201.581
Units Outstanding, end of the year ............ 4,413,026.922 4,401,398.280 4,282,470.411

Net Asset Value per Unit:
Select*Life I .............................. $ 60.195166 $ 68.164143 $ 49.996221
Select*Life Series 2000 .................... $ 32.699801 $ 36.733274 $ 26.727479

The accompanying notes are an integral part of the financial statements.

Fidelity's VIP
High Income Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 1,313 $ 1,861 $ 1,415
Reinvested capital gains ..................... -- 70 899
Administrative expenses ...................... (149) (173) (160)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains ........................... 1,164 1,758 2,154
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (494) (177) 210
Increase (decrease) in unrealized appreciation
of investments .............................. (5,091) (69) (3,436)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (5,585) (246) (3,226)
--------------- --------------- ---------------
Additions (reductions) from operations ..... (4,421) 1,512 (1,072)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 3,200 4,236 5,161
Transfers between funds and/or fixed account . (2,263) (4,013) (469)
Policy loans ................................. (281) (325) (268)
Loan collateral interest crediting ........... 41 29 21
Surrenders ................................... (592) (557) (740)
Death benefits ............................... (51) (13) (88)
Cost of insurance charges .................... (856) (1,068) (1,230)
Death benefit guarantee charges .............. (97) (51) (31)
Monthly expense charges ...................... (100) (126) (144)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (999) (1,888) 2,212
--------------- --------------- ---------------
Net additions (reductions) for the year .... (5,420) (376) 1,140

Policy Owners' Equity, beginning of the year .. 20,141 20,517 19,377
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 14,721 $ 20,141 $ 20,517
=============== =============== ===============

Units Outstanding, beginning of the year ...... 982,653.237 1,053,934.152 916,625.159
Units Outstanding, end of the year ............ 945,010.544 982,653.237 1,053,934.152

Net Asset Value per Unit:
Select*Life I .............................. $ 23.456410 $ 30.499630 $ 28.427207
Select*Life Series 2000 .................... $ 12.674923 $ 16.349223 $ 15.116470

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP
Money Market Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 2,154 $ 1,087 $ 669
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (290) (181) (92)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains ........................... 1,864 906 577
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. -- -- --
Increase (decrease) in unrealized appreciation
of investments .............................. 1 -- --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 1 -- --
--------------- --------------- ---------------
Additions (reductions) from operations ..... 1,865 906 577
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 77,091 36,690 10,376
Transfers between funds and/or fixed account . (62,827) (14,511) (7,227)
Policy loans ................................. (1,267) (977) (31)
Loan collateral interest crediting ........... 140 100 18
Surrenders ................................... (1,315) (768) (285)
Death benefits ............................... (78) (113) (7)
Cost of insurance charges .................... (2,017) (1,337) (817)
Death benefit guarantee charges .............. (1,426) (534) (55)
Monthly expense charges ...................... (263) (156) (74)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 8,038 18,394 1,898
--------------- --------------- ---------------
Net additions (reductions) for the year .... 9,903 19,300 2,475

Policy Owners' Equity, beginning of the year .. 33,268 13,968 11,493
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 43,171 $ 33,268 $ 13,968
=============== =============== ===============

Units Outstanding, beginning of the year ...... 2,329,160.577 1,021,422.904 875,038.346
Units Outstanding, end of the year ............ 2,887,691.571 2,329,160.577 1,021,422.904

Net Asset Value per Unit:
Select*Life I .............................. $ 19.146973 $ 18.153875 $ 17.399235
Select*Life Series 2000 .................... $ 14.471548 $ 13.611549 $ 12.941412

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP
Overseas Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 393 $ 489 $ 551
Reinvested capital gains ..................... 2,475 789 1,626
Administrative expenses ...................... (214) (236) (247)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains ........................... 2,654 1,042 1,930
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 1,060 2,572 1,235
Increase (decrease) in unrealized appreciation
of investments .............................. (9,029) 5,914 187
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (7,969) 8,486 1,422
--------------- --------------- ---------------
Additions (reductions) from operations ..... (5,315) 9,528 3,352
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 4 1,521 5,928
Transfers between funds and/or fixed account . (1,926) (9,986) (2,715)
Policy loans ................................. (502) (508) (396)
Loan collateral interest crediting ........... -- 18 44
Surrenders ................................... (873) (1,003) (889)
Death benefits ............................... (105) (33) (60)
Cost of insurance charges .................... (888) (1,183) (1,589)
Death benefit guarantee charges .............. (19) (27) (37)
Monthly expense charges ...................... (120) (172) (241)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (4,429) (11,373) 45
--------------- --------------- ---------------
Net additions (reductions) for the year .... (9,744) (1,845) 3,397

Policy Owners' Equity, beginning of the year .. 29,669 31,514 28,117
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 19,925 $ 29,669 $ 31,514
=============== =============== ===============

Units Outstanding, beginning of the year ...... 1,162,674.433 1,752,679.671 1,733,459.426
Units Outstanding, end of the year ............ 973,168.864 1,162,674.433 1,752,679.671

Net Asset Value per Unit:
Select*Life I .............................. $ 25.482476 $ 31.755579 $ 22.444163
Select*Life Series 2000 .................... $ 18.165594 $ 22.456788 $ 15.745282

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP II
Asset Manager Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 1,071 $ 1,409 $ 1,161
Reinvested capital gains ..................... 2,524 1,785 3,484
Administrative expenses ...................... (260) (316) (323)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains ........................... 3,335 2,878 4,322
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 694 2,289 274
Increase (decrease) in unrealized appreciation
of investments .............................. (5,473) (1,681) 660
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (4,779) 608 934
--------------- --------------- ---------------
Additions (reductions) from operations ..... (1,444) 3,486 5,256
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... -- 1,752 5,834
Transfers between funds and/or fixed account . (2,195) (9,250) (717)
Policy loans ................................. (454) (626) (482)
Loan collateral interest crediting ........... -- 16 51
Surrenders ................................... (1,136) (1,691) (1,458)
Death benefits ............................... (57) (78) (60)
Cost of insurance charges .................... (1,231) (1,686) (2,041)
Death benefit guarantee charges .............. (31) (43) (52)
Monthly expense charges ...................... (137) (201) (255)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (5,241) (11,807) 820
--------------- --------------- ---------------
Net additions (reductions) for the year .... (6,685) (8,321) 6,076

Policy Owners' Equity, beginning of the year .. 34,335 42,656 36,580
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 27,650 $ 34,335 $ 42,656
=============== =============== ===============

Units Outstanding, beginning of the year ...... 1,510,293.812 2,091,427.861 2,034,040.832
Units Outstanding, end of the year ............ 1,272,447.855 1,510,293.812 2,091,427.861

Net Asset Value per Unit:
Select*Life I .............................. $ 25.501461 $ 26.757824 $ 24.280390
Select*Life Series 2000 .................... $ 18.515461 $ 19.272715 $ 17.348504

The accompanying notes are an integral part of the financial statements.

Fidelity's VIP II
Contrafund Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 260 $ 235 $ 180
Reinvested capital gains ..................... 9,444 1,722 1,324
Administrative expenses ...................... (642) (526) (229)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 9,062 1,431 1,275
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares ............................... 6,917 569 651
Increase (decrease) in unrealized appreciation
of investments ............................... (21,649) 11,058 7,367
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (14,732) 11,627 8,018
--------------- --------------- ---------------
Additions (reductions) from operations ..... (5,670) 13,058 9,293
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 16,473 18,650 16,875
Transfers between funds and/or fixed account . (5,489) 3,457 605
Policy loans ................................. (841) (563) (197)
Loan collateral interest crediting ........... 40 14 6
Surrenders ................................... (2,097) (1,275) (882)
Death benefits ............................... (67) (48) (130)
Cost of insurance charges .................... (3,649) (3,655) (2,823)
Death benefit guarantee charges .............. (543) (127) (15)
Monthly expense charges ...................... (571) (610) (512)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 3,256 15,843 12,927
--------------- --------------- ---------------
Net additions (reductions) for the year .... (2,414) 28,901 22,220

Policy Owners' Equity, beginning of the year .. 75,548 46,647 24,427
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 73,134 $ 75,548 $ 46,647
=============== =============== ===============

Units Outstanding, beginning of the year ...... 2,609,699.831 1,974,535.451 1,334,244.465
Units Outstanding, end of the year ............ 2,717,337.843 2,609,699.831 1,974,535.451

Net Asset Value per Unit:
Select*Life I .............................. $ 15.169918 $ 16.376549 $ 13.286083
Select*Life Series 2000 .................... $ 27.741157 $ 29.708780 $ 23.909755

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP II
Index 500 Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 845 $ 491 $ 278
Reinvested capital gains ..................... 369 333 644
Administrative expenses ...................... (708) (592) (229)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 506 232 693
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 3,117 2,738 1,033
Increase (decrease) in unrealized appreciation
of investments .............................. (12,639) 9,397 6,585
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (9,522) 12,135 7,618
--------------- --------------- ---------------
Additions (reductions) from operations ..... (9,016) 12,367 8,311
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 21,680 23,262 16,991
Transfers between funds and/or fixed account . (4,931) 9,341 3,742
Policy loans ................................. (1,492) (837) (264)
Loan collateral interest crediting ........... 67 33 14
Surrenders ................................... (2,072) (1,561) (670)
Death benefits ............................... (83) (151) (59)
Cost of insurance charges .................... (4,541) (4,256) (2,579)
Death benefit guarantee charges .............. (1,060) (250) (30)
Monthly expense charges ...................... (711) (643) (434)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 6,857 24,938 16,711
--------------- --------------- ---------------
Net additions (reductions) for the year .... (2,159) 37,305 25,022

Policy Owners' Equity, beginning of the year .. 84,588 47,283 22,261
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 82,429 $ 84,588 $ 47,283
=============== =============== ===============

Units Outstanding, beginning of the year ...... 2,420,819.714 1,628,829.448 981,434.839
Units Outstanding, end of the year ............ 2,603,815.252 2,420,819.714 1,628,829.448

Net Asset Value per Unit:
Select*Life I .............................. $ 31.947183 $ 35.507758 $ 29.701980
Select*Life Series 2000 .................... $ 31.624514 $ 34.868839 $ 28.934443

[WIDE TABLE CONTINUED FROM ABOVE]

Fidelity's VIP II
Investment Grade Bond Portfolio
IC Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 440 $ 208 $ 206
Reinvested capital gains ..................... -- 65 25
Administrative expenses ...................... (55) (50) (36)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 385 223 195
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (28) 52 128
Increase (decrease) in unrealized appreciation
of investments .............................. 318 (383) 47
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 290 (331) 175
--------------- --------------- ---------------
Additions (reductions) from operations ..... 675 (108) 370
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 1,378 1,615 2,363
Transfers between funds and/or fixed account . 16 548 (1,154)
Policy loans ................................. (69) (96) (50)
Loan collateral interest crediting ........... 9 7 4
Surrenders ................................... (200) (175) (106)
Death benefits ............................... (12) (6) (7)
Cost of insurance charges .................... (313) (316) (280)
Death benefit guarantee charges .............. (79) (19) (7)
Monthly expense charges ...................... (37) (35) (30)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 693 1,523 733
--------------- --------------- ---------------
Net additions (reductions) for the year .... 1,368 1,415 1,103

Policy Owners' Equity, beginning of the year .. 6,390 4,975 3,872
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 7,758 $ 6,390 $ 4,975
=============== =============== ===============

Units Outstanding, beginning of the year ...... 444,440.696 333,810.100 276,930.635
Units Outstanding, end of the year ............ 490,074.761 444,440.696 333,810.100

Net Asset Value per Unit:
Select*Life I .............................. $ 18.520221 $ 16.785852 $ 17.100659
Select*Life Series 2000 .................... $ 15.194977 $ 13.662210 $ 13.807112

[WIDE TABLE CONTINUED FROM ABOVE]

Janus Aspen Series
Aggressive Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 2,456 $ 98 $ --
Reinvested capital gains ..................... 2,547 168 --
Administrative expenses ...................... (343) (76) (7)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 4,660 190 (7)
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 2,604 870 95
Increase (decrease) in unrealized appreciation
of investments .............................. (26,058) 9,113 317
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (23,454) 9,983 412
--------------- --------------- ---------------
Additions (reductions) from operations ..... (18,794) 10,173 405
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 14,541 4,198 884
Transfers between funds and/or fixed account . 22,328 11,069 194
Policy loans ................................. (572) (153) (4)
Loan collateral interest crediting ........... 43 13 2
Surrenders ................................... (859) (111) (15)
Death benefits ............................... (23) (16) --
Cost of insurance charges .................... (2,056 (491) (88)
Death benefit guarantee charges .............. (100) (22) (4)
Monthly expense charges ...................... (1,156) (144) (13)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 32,146 14,343 956
--------------- --------------- ---------------
Net additions (reductions) for the year .... 13,352 24,516 1,361

Policy Owners' Equity, beginning of the year .. 26,141 1,625 264
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 39,493 $ 26,141 $ 1,625
=============== =============== ===============

Units Outstanding, beginning of the year ...... 790,834.555 110,510.717 24,053.408
Units Outstanding, end of the year ............ 1,752,759.651 790,834.555 110,510.717

Net Asset Value per Unit:
Select*Life I .............................. $ 22.006021 $ 32.536277 $ 14.550679
Select*Life Series 2000 .................... $ 22.613916 $ 33.167484 $ 14.714669

The accompanying notes are an integral part of the financial statements.

Janus Aspen Series
Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 817 $ 27 $ 41
Reinvested capital gains ..................... 1,925 50 32
Administrative expenses ...................... (259) (92) (10)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 2,483 (15) 63
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 48 1,286 (16)
Increase (decrease) in unrealized appreciation
of investments .............................. (8,901) 3,062 541
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (8,853) 4,348 525
--------------- --------------- ---------------
Additions (reductions) from operations ..... (6,370) 4,333 588
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 11,099 4,929 1,477
Transfers between funds and/or fixed account . 13,751 6,660 2,294
Policy loans ................................. (246) (44) 2
Loan collateral interest crediting ........... 19 3 --
Surrenders ................................... (388) (772) (74)
Death benefits ............................... (15) (13) (8)
Cost of insurance charges .................... (1,558) (669) (132)
Death benefit guarantee charges .............. (73) (19) (2)
Monthly expense charges ...................... (811) (147) (22)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 21,778 9,928 3,535
--------------- --------------- ---------------
Net additions (reductions) for the year .... 15,408 14,261 4,123

Policy Owners' Equity, beginning of the year .. 18,670 4,409 286
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 34,078 $ 18,670 $ 4,409
=============== =============== ===============

Units Outstanding, beginning of the year ...... 940,075.013 319,301.091 28,040.816
Units Outstanding, end of the year ............ 2,008,199.476 940,075.013 319,301.091

Net Asset Value per Unit:
Select*Life I .............................. $ 16.545548 $ 19.519150 $ 13.665622
Select*Life Series 2000 .................... $ 17.002489 $ 19.898078 $ 13.819668

[WIDE TABLE CONTINUED FROM ABOVE]

Janus Aspen Series
International Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 318 $ 16 $ 35
Reinvested capital gains ..................... 612 -- 5
Administrative expenses ...................... (149) (55) (16)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 781 (39) 24
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 4,698 1,568 52
Increase (decrease) in unrealized appreciation
of investments .............................. (8,683) 3,678 190
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (3,985) 5,246 242
--------------- --------------- ---------------
Additions (reductions) from operations ..... (3,204) 5,207 266
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 5,497 2,432 1,711
Transfers between funds and/or fixed account . 6,371 1,499 745
Policy loans ................................. (116) (39) (11)
Loan collateral interest crediting ........... 22 3 1
Surrenders ................................... (195) (81) (18)
Death benefits ............................... (27) (3) --
Cost of insurance charges .................... (774) (359) (167)
Death benefit guarantee charges .............. (36) (15) (5)
Monthly expense charges ...................... (354) (66) (26)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 10,388 3,371 2,230
--------------- --------------- ---------------
Net additions (reductions) for the year .... 7,184 8,578 2,496

Policy Owners' Equity, beginning of the year .. 11,918 3,340 844
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 19,102 $ 11,918 $ 3,340
=============== =============== ===============

Units Outstanding, beginning of the year ...... 580,535.174 296,248.488 87,549.532
Units Outstanding, end of the year ............ 1,107,540.195 580,535.174 296,248.488

Net Asset Value per Unit:
Select*Life I .............................. $ 16.824578 $ 20.176465 $ 11.158415
Select*Life Series 2000 .................... $ 17.289077 $ 20.567965 $ 11.284244

[WIDE TABLE CONTINUED FROM ABOVE]

Janus Aspen Series
Worldwide Growth Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 1,226 $ 56 $ 210
Reinvested capital gains ..................... 3,979 -- 81
Administrative expenses ...................... (520) (270) (57)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 4,685 (214) 234
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 11,165 3,533 99
Increase (decrease) in unrealized appreciation
of investments .............................. (27,191) 15,797 1,475
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (16,026) 19,330 1,574
--------------- --------------- ---------------
Additions (reductions) from operations ..... (11,341) 19,116 1,808
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 16,869 12,515 7,344
Transfers between funds and/or fixed account . 5,653 11,478 4,415
Policy loans ................................. (645) (256) (13)
Loan collateral interest crediting ........... 39 11 1
Surrenders ................................... (1,186) (426) (90)
Death benefits ............................... (86) (148) (53)
Cost of insurance charges .................... (2,897) (1,904) (755)
Death benefit guarantee charges .............. (110) (43) (12)
Monthly expense charges ...................... (1,046) (348) (106)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 16,591 20,879 10,731
--------------- --------------- ---------------
Net additions (reductions) for the year .... 5,250 39,995 12,539

Policy Owners' Equity, beginning of the year .. 54,947 14,952 2,413
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 60,197 $ 54,947 $ 14,952
=============== =============== ===============

Units Outstanding, beginning of the year ...... 2,640,454.020 1,180,179.061 245,314.904
Units Outstanding, end of the year ............ 3,432,297.501 2,640,454.020 1,180,179.061

Net Asset Value per Unit:
Select*Life I .............................. $ 17.113507 $ 20.456930 $ 12.539787
Select*Life Series 2000 .................... $ 17.585970 $ 20.853866 $ 12.681124

[WIDE TABLE CONTINUED FROM ABOVE]

Neuberger Berman
Advisers Management Trust
Limited Maturity Bond Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 208 $ 115 $ 79
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (28) (23) (9)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 180 92 70
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (59) (27) (21)
Increase (decrease) in unrealized appreciation
of investments .............................. 97 (49) 1
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 38 (76) (20)
--------------- --------------- ---------------
Additions (reductions) from operations ..... 218 16 50
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 1,174 1,521 1,242
Transfers between funds and/or fixed account . (183) 133 (296)
Policy loans ................................. (9) (61) (2)
Loan collateral interest crediting ........... 1 -- --
Surrenders ................................... (40) (29) (2)
Death benefits ............................... (13) (14) (5)
Cost of insurance charges .................... (192) (170) (94)
Death benefit guarantee charges .............. (7) (6) (2)
Monthly expense charges ...................... (96) (36) (11)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 635 1,338 830
--------------- --------------- ---------------
Net additions (reductions) for the year .... 853 1,354 880

Policy Owners' Equity, beginning of the year .. 3,337 1,983 1,103
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 4,190 $ 3,337 $ 1,983
=============== =============== ===============

Units Outstanding, beginning of the year ...... 307,256.114 185,303.929 107,550.694
Units Outstanding, end of the year ............ 361,351.818 307,256.114 185,303.929

Net Asset Value per Unit:
Select*Life I .............................. $ 11.287667 $ 10.655507 $ 10.584999
Select*Life Series 2000 .................... $ 11.599511 $ 10.862584 $ 10.704404

The accompanying notes are an integral part of the financial statements.

Neuberger Berman
Advisers Management Trust
Partners Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 68 $ 120 $ 11
Reinvested capital gains ..................... 1,442 208 342
Administrative expenses ...................... (75) (83) (45)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 1,435 245 308
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (335) (153) (137)
Increase (decrease) in unrealized appreciation
of investments .............................. (1,093) 529 (164)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (1,428) 376 (301)
--------------- --------------- ---------------
Additions (reductions) from operations ..... 7 621 7
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 2,594 3,534 5,576
Transfers between funds and/or fixed account . (1,458) (4,159) 3,196
Policy loans ................................. (19) (66) (55)
Loan collateral interest crediting ........... 1 2 2
Surrenders ................................... (191) (146) (58)
Death benefits ............................... (8) (15) --
Cost of insurance charges .................... (515) (653) (518)
Death benefit guarantee charges .............. (17) (18) (11)
Monthly expense charges ...................... (125) (93) (64)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 262 (1,614) 8,068
--------------- --------------- ---------------
Net additions (reductions) for the year .... 269 (993) 8,075

Policy Owners' Equity, beginning of the year .. 8,843 9,836 1,761
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 9,112 $ 8,843 $ 9,836
=============== =============== ===============

Units Outstanding, beginning of the year ...... 766,507.228 914,725.581 170,599.212
Units Outstanding, end of the year ............ 784,206.748 766,507.228 914,725.581

Net Asset Value per Unit:
Select*Life I .............................. $ 11.321723 $ 11.333244 $ 10.640408
Select*Life Series 2000 .................... $ 11.634457 $ 11.553436 $ 10.760407

[WIDE TABLE CONTINUED FROM ABOVE]

Neuberger Berman
Advisers Management Trust
Socially Responsive Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (1) -- --
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... (1) -- --
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. -- -- --
Increase (decrease) in unrealized appreciation
of investments .............................. 2 3 --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 2 3 --
--------------- --------------- ---------------
Additions (reductions) from operations ..... 1 3 --
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 108 23 --
Transfers between funds and/or fixed account . 92 26 --
Policy loans ................................. -- -- --
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... (3) -- --
Death benefits ............................... -- -- --
Cost of insurance charges .................... (11) (3) --
Death benefit guarantee charges .............. (12) (1) --
Monthly expense charges ...................... (2) -- --
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 172 45 --
--------------- --------------- ---------------
Net additions (reductions) for the year .... 173 48 --

Policy Owners' Equity, beginning of the year .. 48 -- --
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 221 $ 48 $ --
=============== =============== ===============

Units Outstanding, beginning of the year ...... 4,350.420 -- --
Units Outstanding, end of the year ............ 20,980.438 4,350.420 --

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 10.582035 $ 10.754901 $ --

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
Growth Opportunities Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 3 $ -- $ --
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (4) -- --
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... (1) -- --
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (1) -- --
Increase (decrease) in unrealized appreciation
of investments .............................. (272) -- --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (273) -- --
--------------- --------------- ---------------
Additions (reductions) from operations ..... (274) -- --
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 528 -- --
Transfers between funds and/or fixed account . 1,431 -- --
Policy loans ................................. (2) -- --
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... (1) -- --
Death benefits ............................... -- -- --
Cost of insurance charges .................... (35) -- --
Death benefit guarantee charges .............. (32) -- --
Monthly expense charges ...................... (4) -- --
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 1,885 -- --
--------------- --------------- ---------------
Net additions (reductions) for the year .... 1,611 -- --

Policy Owners' Equity, beginning of the year .. -- -- --
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 1,611 $ -- $ --
=============== =============== ===============

Units Outstanding, beginning of the year ...... -- -- --
Units Outstanding, end of the year ............ 180,021.854 -- --

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 8.938223 $ -- $ --

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
Growth + Value Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... 2,816 1,025 14
Administrative expenses ...................... (115) (25) (8)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 2,701 1,000 6
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (218) 586 --
Increase (decrease) in unrealized appreciation
of investments .............................. (6,511) 655 277
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (6,729) 1,241 277
--------------- --------------- ---------------
Additions (reductions) from operations ..... (4,028) 2,241 283
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 5,190 1,278 1,061
Transfers between funds and/or fixed account . 11,000 1,675 59
Policy loans ................................. (248) (20) 4
Loan collateral interest crediting ........... 10 1 --
Surrenders ................................... (113) (23) (4)
Death benefits ............................... (46) -- (94)
Cost of insurance charges .................... (614) (178) (115)
Death benefit guarantee charges .............. (52) (9) (3)
Monthly expense charges ...................... (325) (34) (11)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 14,802 2,690 897
--------------- --------------- ---------------
Net additions (reductions) for the year .... 10,774 4,931 1,180

Policy Owners' Equity, beginning of the year .. 6,776 1,845 665
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 17,550 $ 6,776 $ 1,845
=============== =============== ===============

Units Outstanding, beginning of the year ...... 286,240.204 151,938.013 65,399.595
Units Outstanding, end of the year ............ 822,989.711 286,240.204 151,938.013

Net Asset Value per Unit:
Select*Life I .............................. $ 20.812107 $ 23.255009 $ 12.022926
Select*Life Series 2000 .................... $ 21.386715 $ 23.706151 $ 12.158465

The accompanying notes are an integral part of the financial statements.

Pilgrim Variable Products Trust
High Yield Bond Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 84 $ 61 $ 24
Reinvested capital gains ..................... -- -- 1
Administrative expenses ...................... (7) (6) (2)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 77 55 23
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (34) (4) (43)
Increase (decrease) in unrealized appreciation
of investments .............................. (158) (82) 11
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (192) (86) (32)
--------------- --------------- ---------------
Additions (reductions) from operations ..... (115) (31) (9)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 356 325 482
Transfers between funds and/or fixed account . (19) 7 35
Policy loans ................................. -- (3) 2
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... (9) (2) (1)
Death benefits ............................... (3) -- (5)
Cost of insurance charges .................... (54) (52) (28)
Death benefit guarantee charges .............. (3) (2) (1)
Monthly expense charges ...................... (18) (8) (3)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 250 265 481
--------------- --------------- ---------------
Net additions (reductions) for the year .... 135 234 472

Policy Owners' Equity, beginning of the year .. 763 529 57
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 898 $ 763 $ 529
=============== =============== ===============

Units Outstanding, beginning of the year ...... 75,420.881 50,566.068 5,488.146
Units Outstanding, end of the year ............ 100,389.496 75,420.881 50,566.068

Net Asset Value per Unit:
Select*Life I .............................. $ 8.710944 $ 9.937790 $ 10.351379
Select*Life Series 2000 .................... $ 8.951649 $ 10.130924 $ 10.468149

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
International Value Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 97 $ 45 $ 21
Reinvested capital gains ..................... 1,020 352 68
Administrative expenses ...................... (39) (22) (7)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 1,078 375 82
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 122 497 47
Increase (decrease) in unrealized appreciation
of investments .............................. (883) 344 33
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (761) 841 80
--------------- --------------- ---------------
Additions (reductions) from operations ..... 317 1,216 162
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 1,589 1,001 975
Transfers between funds and/or fixed account . 700 229 218
Policy loans ................................. (36) (16) (4)
Loan collateral interest crediting ........... 5 3 2
Surrenders ................................... (50) (23) (9)
Death benefits ............................... (15) (13) --
Cost of insurance charges .................... (211) (153) (96)
Death benefit guarantee charges .............. (11) (6) (3)
Monthly expense charges ...................... (112) (27) (11)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 1,859 995 1,072
--------------- --------------- ---------------
Net additions (reductions) for the year .... 2,176 2,211 1,234

Policy Owners' Equity, beginning of the year .. 3,837 1,626 392
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 6,013 $ 3,837 $ 1,626
=============== =============== ===============

Units Outstanding, beginning of the year ...... 216,064.849 137,264.427 38,707.007
Units Outstanding, end of the year ............ 328,445.338 216,064.849 137,264.427

Net Asset Value per Unit:
Select*Life I .............................. $ 17.859703 $ 17.448357 $ 11.712172
Select*Life Series 2000 .................... $ 18.352810 $ 17.787065 $ 11.844211

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
MagnaCap Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... -- -- --
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... -- -- --
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. -- -- --
Increase (decrease) in unrealized appreciation
of investments .............................. (1) -- --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (1) -- --
--------------- --------------- ---------------
Additions (reductions) from operations ..... (1) -- --
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 36 -- --
Transfers between funds and/or fixed account . 108 -- --
Policy loans ................................. -- -- --
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... -- -- --
Death benefits ............................... -- -- --
Cost of insurance charges .................... (2) -- --
Death benefit guarantee charges .............. (5) -- --
Monthly expense charges ...................... (1) -- --
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 136 -- --
--------------- --------------- ---------------
Net additions (reductions) for the year .... 135 -- --

Policy Owners' Equity, beginning of the year .. -- -- --
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 135 $ -- $ --
=============== =============== ===============

Units Outstanding, beginning of the year ...... -- -- --
Units Outstanding, end of the year ............ 13,093.122 -- --

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 10.160952 $ -- $ --

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
MidCap Opportunities Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (1) -- --
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... (1) -- --
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (6) -- --
Increase (decrease) in unrealized appreciation
of investments .............................. (27) -- --
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (33) -- --
--------------- --------------- ---------------
Additions (reductions) from operations ..... (34) -- --
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 133 -- --
Transfers between funds and/or fixed account . 331 -- --
Policy loans ................................. 5 -- --
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... -- -- --
Death benefits ............................... -- -- --
Cost of insurance charges .................... (8) -- --
Death benefit guarantee charges .............. (9) -- --
Monthly expense charges ...................... (1) -- --
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 451 -- --
--------------- --------------- ---------------
Net additions (reductions) for the year .... 417 -- --

Policy Owners' Equity, beginning of the year .. -- -- --
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 417 $ -- $ --
=============== =============== ===============

Units Outstanding, beginning of the year ...... -- -- --
Units Outstanding, end of the year ............ 46,053.897 -- --

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 9.062225 $ -- $ --

The accompanying notes are an integral part of the financial statements.

Pilgrim Variable Products Trust
Research Enhanced Index Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 9 $ 36 $ 77
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (17) (15) (7)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... (8) 21 70
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (64) (25) (16)
Increase (decrease) in unrealized appreciation
of investments .............................. (260) 115 (56)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (324) 90 (72)
--------------- --------------- ---------------
Additions (reductions) from operations ..... (332) 111 (2)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 717 633 866
Transfers between funds and/or fixed account . 54 (9) 58
Policy loans ................................. (22) (18) (5)
Loan collateral interest crediting ........... 2 1 --
Surrenders ................................... (17) (17) (13)
Death benefits ............................... -- (4) --
Cost of insurance charges .................... (127) (115) (86)
Death benefit guarantee charges .............. (33) (10) (3)
Monthly expense charges ...................... (11) (14) (12)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 563 447 805
--------------- --------------- ---------------
Net additions (reductions) for the year .... 231 558 803

Policy Owners' Equity, beginning of the year .. 1,950 1,392 589
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 2,181 $ 1,950 $ 1,392
=============== =============== ===============

Units Outstanding, beginning of the year ...... 128,528.216 96,571.672 41,273.079
Units Outstanding, end of the year ............ 162,927.097 128,528.216 96,571.672

Net Asset Value per Unit:
Select*Life I .............................. $ 9.475103 $ 10.808243 $ 10.296187
Select*Life Series 2000 .................... $ 13.519441 $ 15.298625 $ 14.457253

[WIDE TABLE CONTINUED FROM ABOVE]

Pilgrim Variable Products Trust
SmallCap Opportunities Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ 58
Reinvested capital gains ..................... 2,681 1,382 107
Administrative expenses ...................... (188) (40) (11)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 2,493 1,342 154
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 425 473 10
Increase (decrease) in unrealized appreciation
of investments .............................. (4,345) 2,990 181
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (3,920) 3,463 191
--------------- --------------- ---------------
Additions (reductions) from operations ..... (1,427) 4,805 345
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 6,757 1,278 990
Transfers between funds and/or fixed account . 14,176 2,248 (2)
Policy loans ................................. (205) (95) (13)
Loan collateral interest crediting ........... 6 1 --
Surrenders ................................... (374) (64) (27)
Death benefits ............................... (2) (5) --
Cost of insurance charges .................... (977) (255) (179)
Death benefit guarantee charges .............. (389) (17) (1)
Monthly expense charges ...................... (109) (40) (30)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 18,883 3,051 738
--------------- --------------- ---------------
Net additions (reductions) for the year .... 17,456 7,856 1,083

Policy Owners' Equity, beginning of the year .. 10,380 2,524 1,441
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 27,836 $ 10,380 $ 2,524
=============== =============== ===============

Units Outstanding, beginning of the year ...... 237,818.778 134,480.431 90,105.753
Units Outstanding, end of the year ............ 633,723.874 237,818.778 134,480.431

Net Asset Value per Unit:
Select*Life I .............................. $ 28.971770 $ 28.891610 $ 12.082938
Select*Life Series 2000 .................... $ 45.831683 $ 45.340005 $ 18.810805

[WIDE TABLE CONTINUED FROM ABOVE]

OCC Accumulation Trust
Equity Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 15 $ 13 $ 3
Reinvested capital gains ..................... 193 59 12
Administrative expenses ...................... (16) (14) (5)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 192 58 10
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (46) 19 6
Increase (decrease) in unrealized appreciation
of investments .............................. 91 (54) 46
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 45 (35) 52
--------------- --------------- ---------------
Additions (reductions) from operations ..... 237 23 62
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 647 747 822
Transfers between funds and/or fixed account . 80 (131) 297
Policy loans ................................. (15) (4) 1
Loan collateral interest crediting ........... -- -- --
Surrenders ................................... (52) (12) (10)
Death benefits ............................... -- (3) --
Cost of insurance charges .................... (105) (112) (59)
Death benefit guarantee charges .............. (6) (5) (1)
Monthly expense charges ...................... (46) (20) (9)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 503 460 1,041
--------------- --------------- ---------------
Net additions (reductions) for the year .... 740 483 1,103

Policy Owners' Equity, beginning of the year .. 1,794 1,311 208
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 2,534 $ 1,794 $ 1,311
=============== =============== ===============

Units Outstanding, beginning of the year ...... 146,392.070 109,118.612 19,312.138
Units Outstanding, end of the year ............ 187,942.886 146,392.070 109,118.612

Net Asset Value per Unit:
Select*Life I .............................. $ 13.193209 $ 12.099718 $ 11.895001
Select*Life Series 2000 .................... $ 13.557536 $ 12.334780 $ 12.029100

[WIDE TABLE CONTINUED FROM ABOVE]

OCC Accumulation Trust
Global Equity Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 12 $ 16 $ 8
Reinvested capital gains ..................... 141 166 28
Administrative expenses ...................... (11) (9) (4)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 142 173 32
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. -- 108 (5)
Increase (decrease) in unrealized appreciation
of investments .............................. (55) (43) 22
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (55) 65 17
--------------- --------------- ---------------
Additions (reductions) from operations ..... 87 238 49
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 390 296 348
Transfers between funds and/or fixed account . (132) 43 86
Policy loans ................................. (13) (10) (2)
Loan collateral interest crediting ........... 1 -- --
Surrenders ................................... (26) (15) (7)
Death benefits ............................... -- (15) --
Cost of insurance charges .................... (57) (55) (39)
Death benefit guarantee charges .............. (2) (2) (1)
Monthly expense charges ...................... (23) (10) (5)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 138 232 380
--------------- --------------- ---------------
Net additions (reductions) for the year .... 225 470 429

Policy Owners' Equity, beginning of the year .. 1,201 731 302
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 1,426 $ 1,201 $ 731
=============== =============== ===============

Units Outstanding, beginning of the year ...... 88,327.523 67,997.586 31,784.854
Units Outstanding, end of the year ............ 100,164.451 88,327.523 67,997.586

Net Asset Value per Unit:
Select*Life I .............................. $ 13.900774 $ 13.383356 $ 10.662721
Select*Life Series 2000 .................... $ 14.284659 $ 13.643299 $ 10.782965

The accompanying notes are an integral part of the financial statements.

OCC Accumulation Trust
Managed Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 71 $ 84 $ 17
Reinvested capital gains ..................... 394 188 56
Administrative expenses ...................... (44) (48) (24)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 421 224 49
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (189) (23) 2
Increase (decrease) in unrealized appreciation
of investments .............................. 230 26 74
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 41 3 76
--------------- --------------- ---------------
Additions (reductions) from operations ..... 462 227 125
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 1,450 2,406 3,191
Transfers between funds and/or fixed account . (622) (2,222) 1,487
Policy loans ................................. (55) (15) (1)
Loan collateral interest crediting ........... 5 2 --
Surrenders ................................... (120) (84) (17)
Death benefits ............................... (1) (13) (76)
Cost of insurance charges .................... (311) (375) (294)
Death benefit guarantee charges .............. (9) (8) (4)
Monthly expense charges ...................... (97) (58) (32)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 240 (367) 4,254
--------------- --------------- ---------------
Net additions (reductions) for the year .... 702 (140) 4,379

Policy Owners' Equity, beginning of the year .. 5,388 5,528 1,149
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 6,090 $ 5,388 $ 5,528
=============== =============== ===============

Units Outstanding, beginning of the year ...... 471,347.494 507,204.969 112,854.997
Units Outstanding, end of the year ............ 485,838.805 471,347.494 507,204.969

Net Asset Value per Unit:
Select*Life I .............................. $ 12.222138 $ 11.226640 $ 10.778607
Select*Life Series 2000 .................... $ 12.559713 $ 11.444770 $ 10.900163

[WIDE TABLE CONTINUED FROM ABOVE]

OCC Accumulation Trust
Small Cap Portfolio
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 22 $ 15 $ 3
Reinvested capital gains ..................... -- -- 33
Administrative expenses ...................... (36) (25) (10)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... (14) (10) 26
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 165 (62) (13)
Increase (decrease) in unrealized appreciation
of investments .............................. 1,599 66 (151)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 1,764 4 (164)
--------------- --------------- ---------------
Additions (reductions) from operations ..... 1,750 (6) (138)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 1,416 1,581 1,525
Transfers between funds and/or fixed account . (604) 658 340
Policy loans ................................. (33) (23) (4)
Loan collateral interest crediting ........... 2 1 --
Surrenders ................................... (83) (32) (6)
Death benefits ............................... (20) (1) --
Cost of insurance charges .................... (246) (221) (140)
Death benefit guarantee charges .............. (11) (8) (3)
Monthly expense charges ...................... (102) (38) (18)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 319 1,917 1,694
--------------- --------------- ---------------
Net additions (reductions) for the year .... 2,069 1,911 1,556

Policy Owners' Equity, beginning of the year .. 4,125 2,214 658
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 6,194 $ 4,125 $ 2,214
=============== =============== ===============

Units Outstanding, beginning of the year ...... 450,944.640 237,553.351 64,284.089
Units Outstanding, end of the year ............ 470,057.476 450,944.640 237,553.351

Net Asset Value per Unit:
Select*Life I .............................. $ 12.846356 $ 8.981750 $ 9.223192
Select*Life Series 2000 .................... $ 13.201282 $ 9.156366 $ 9.327299

[WIDE TABLE CONTINUED FROM ABOVE]

Putnam VT
Asia Pacific Growth Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 144 $ -- $ 105
Reinvested capital gains ..................... -- -- --
Administrative expenses ...................... (30) (29) (18)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 114 (29) 87
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 77 30 (4)
Increase (decrease) in unrealized appreciation
of investments .............................. (2,129) 2,591 (145)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (2,052) 2,621 (149)
--------------- --------------- ---------------
Additions (reductions) from operations ..... (1,938) 2,592 (62)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 3 303 1,150
Transfers between funds and/or fixed account . (150) (810) (206)
Policy loans ................................. (56) (40) (14)
Loan collateral interest crediting ........... -- -- 1
Surrenders ................................... (95) (106) (51)
Death benefits ............................... -- -- (1)
Cost of insurance charges .................... (118) (166) (183)
Death benefit guarantee charges .............. (1) (3) (1)
Monthly expense charges ...................... (18) (27) (32)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (435) (849) 663
--------------- --------------- ---------------
Net additions (reductions) for the year .... (2,373) 1,743 601

Policy Owners' Equity, beginning of the year .. 4,602 2,859 2,258
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 2,229 $ 4,602 $ 2,859
=============== =============== ===============

Units Outstanding, beginning of the year ...... 246,200.626 317,373.587 236,947.013
Units Outstanding, end of the year ............ 213,834.585 246,200.626 317,373.587

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 10.413546 $ 18.686981 $ 9.003039

[WIDE TABLE CONTINUED FROM ABOVE]

Putnam VT
Diversified Income Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 128 $ 163 $ 88
Reinvested capital gains ..................... -- -- 37
Administrative expenses ...................... (14) (18) (18)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 114 145 107
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. (46) (78) 18
Increase (decrease) in unrealized appreciation
of investments .............................. (80) (49) (182)
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (126) (127) (164)
--------------- --------------- ---------------
Additions (reductions) from operations ..... (12) 18 (57)
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... (9) 254 895
Transfers between funds and/or fixed account . (165) (800) (71)
Policy loans ................................. (33) (10) (10)
Loan collateral interest crediting ........... -- -- 1
Surrenders ................................... (49) (58) (53)
Death benefits ............................... -- (9) (1)
Cost of insurance charges .................... (64) (122) (166)
Death benefit guarantee charges .............. (1) (3) (1)
Monthly expense charges ...................... (9) (16) (24)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (330) (764) 570
--------------- --------------- ---------------
Net additions (reductions) for the year .... (342) (746) 513

Policy Owners' Equity, beginning of the year .. 1,765 2,511 1,998
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 1,423 $ 1,765 $ 2,511
=============== =============== ===============

Units Outstanding, beginning of the year ...... 132,402.534 191,652.487 150,285.794
Units Outstanding, end of the year ............ 106,734.152 132,402.534 191,652.487

Net Asset Value per Unit:
Select*Life I .............................. $ 13.158926 $ 13.253124 $ 13.128436
Select*Life Series 2000 .................... $ 13.351259 $ 13.339586 $ 13.108403

The accompanying notes are an integral part of the financial statements.

Putnam VT
Growth and Income Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 696 $ 492 $ 458
Reinvested capital gains ..................... 3,276 2,457 2,991
Administrative expenses ...................... (333) (331) (201)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 3,639 2,618 3,248
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 573 685 435
Increase (decrease) in unrealized appreciation
of investments .............................. (1,155) (3,184) 243
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (582) (2,499) 678
--------------- --------------- ---------------
Additions (reductions) from operations ..... 3,057 119 3,926
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 7,739 9,574 10,650
Transfers between funds and/or fixed account . (1,817) (1,854) (1,739)
Policy loans ................................. (424) (375) (145)
Loan collateral interest crediting ........... 35 16 10
Surrenders ................................... (1,022) (812) (753)
Death benefits ............................... (126) (25) (129)
Cost of insurance charges .................... (1,884) (2,089) (2,010)
Death benefit guarantee charges .............. (232) (58) (14)
Monthly expense charges ...................... (301) (340) (333)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 1,968 4,037 5,537
--------------- --------------- ---------------
Net additions (reductions) for the year .... 5,025 4,156 9,463

Policy Owners' Equity, beginning of the year .. 37,818 33,662 24,199
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 42,843 $ 37,818 $ 33,662
=============== =============== ===============

Units Outstanding, beginning of the year ...... 1,559,790.647 1,409,556.585 1,169,049.817
Units Outstanding, end of the year ............ 1,634,925.328 1,559,790.647 1,409,556.585

Net Asset Value per Unit:
Select*Life I .............................. $ 25.404446 $ 23.687497 $ 23.505531
Select*Life Series 2000 .................... $ 26.261615 $ 24.291674 $ 23.912286

[WIDE TABLE CONTINUED FROM ABOVE]

Putnam VT
New Opportunities Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ -- $ -- $ --
Reinvested capital gains ..................... 4,868 490 353
Administrative expenses ...................... (555) (352) (175)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 4,313 138 178
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 978 1,400 416
Increase (decrease) in unrealized appreciation
of investments .............................. (23,233) 22,263 5,506
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (22,255) 23,663 5,922
--------------- --------------- ---------------
Additions (reductions) from operations ..... (17,942) 23,801 6,100
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 10,644 10,067 11,786
Transfers between funds and/or fixed account . 3,840 (4,660) (1,903)
Policy loans ................................. (1,013) (408) (121)
Loan collateral interest crediting ........... 31 12 4
Surrenders ................................... (1,520) (1,076) (683)
Death benefits ............................... (147) (34) (44)
Cost of insurance charges .................... (2,812) (2,385) (2,195)
Death benefit guarantee charges .............. (322) (40) (5)
Monthly expense charges ...................... (493) (442) (412)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 8,208 1,034 6,427
--------------- --------------- ---------------
Net additions (reductions) for the year .... (9,734) 24,835 12,527

Policy Owners' Equity, beginning of the year .. 59,286 34,451 21,924
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 49,552 $ 59,286 $ 34,451
=============== =============== ===============

Units Outstanding, beginning of the year ...... 1,537,759.325 1,513,397.971 1,197,940.702
Units Outstanding, end of the year ............ 1,739,017.365 1,537,759.325 1,513,397.971

Net Asset Value per Unit:
Select*Life I .............................. $ -- $ -- $ --
Select*Life Series 2000 .................... $ 28.492604 $ 38.550963 $ 22.763799

[WIDE TABLE CONTINUED FROM ABOVE]

Putnam VT
Utilities Growth and Income Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 92 $ 106 $ 87
Reinvested capital gains ..................... 163 112 149
Administrative expenses ...................... (25) (32) (24)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 230 186 212
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 100 279 149
Increase (decrease) in unrealized appreciation
of investments .............................. 101 (518) 100
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . 201 (239) 249
--------------- --------------- ---------------
Additions (reductions) from operations ..... 431 (53) 461
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... (2) 429 1,035
Transfers between funds and/or fixed account . (283) (869) 108
Policy loans ................................. (54) (43) (34)
Loan collateral interest crediting ........... -- 1 2
Surrenders ................................... (65) (130) (96)
Death benefits ............................... (6) (10) (4)
Cost of insurance charges .................... (134) (214) (237)
Death benefit guarantee charges .............. (4) (7) (3)
Monthly expense charges ...................... (18) (33) (37)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... (566) (876) 734
--------------- --------------- ---------------
Net additions (reductions) for the year .... (135) (929) 1,195

Policy Owners' Equity, beginning of the year .. 3,037 3,966 2,771
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 2,902 $ 3,037 $ 3,966
=============== =============== ===============

Units Outstanding, beginning of the year ...... 146,646.122 190,123.952 152,514.030
Units Outstanding, end of the year ............ 119,147.539 146,646.122 190,123.952

Net Asset Value per Unit:
Select*Life I .............................. $ 24.097592 $ 20.642919 $ 20.947449
Select*Life Series 2000 .................... $ 24.385990 $ 20.723572 $ 20.861089

[TABLE CONTINUED FROM ABOVE]

Putnam VT
Voyager Fund
Class IA Shares
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------

Net investment income:
Reinvested dividend income ................... $ 43 $ 95 $ 144
Reinvested capital gains ..................... 18,112 7,611 3,517
Administrative expenses ...................... (1,236) (863) (470)
--------------- --------------- ---------------
Net investment income (loss)
and capital gains .......................... 16,919 6,843 3,191
--------------- --------------- ---------------

Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares .............................. 3,667 2,077 915
Increase (decrease) in unrealized appreciation
of investments .............................. (46,020) 41,058 10,198
--------------- --------------- ---------------
Net realized and unrealized gains (losses) . (42,353) 43,135 11,113
--------------- --------------- ---------------
Additions (reductions) from operations ..... (25,434) 49,978 14,304
--------------- --------------- ---------------

Policy Owners' transactions:
Net premium payments ......................... 22,530 22,760 22,816
Transfers between funds and/or fixed account . 797 (2,189) (1,602)
Policy loans ................................. (2,120) (1,072) (428)
Loan collateral interest crediting ........... 100 47 27
Surrenders ................................... (4,056) (2,679) (2,127)
Death benefits ............................... (306) (72) (170)
Cost of insurance charges .................... (6,190) (5,408) (4,567)
Death benefit guarantee charges .............. (606) (124) (27)
Monthly expense charges ...................... (1,061) (947) (839)
--------------- --------------- ---------------
Additions (reductions) for policy
owners' transactions ...................... 9,088 10,316 13,083
--------------- --------------- ---------------
Net additions (reductions) for the year .... (16,346) 60,294 27,387

Policy Owners' Equity, beginning of the year .. 140,948 80,654 53,267
--------------- --------------- ---------------
Policy Owners' Equity, end of the year ........ $ 124,602 $ 140,948 $ 80,654
=============== =============== ===============

Units Outstanding, beginning of the year ...... 3,503,220.110 3,169,909.581 2,601,649.957
Units Outstanding, end of the year ............ 3,707,075.631 3,503,220.110 3,169,909.581

Net Asset Value per Unit:
Select*Life I .............................. $ 33.088979 $ 39.904396 $ 25.423734
Select*Life Series 2000 .................... $ 33.652215 $ 40.259562 $ 25.445248

The accompanying notes are an integral part of the financial statements.

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION:
ReliaStar Select*Life Variable Account (the "Account") is a separate account
of ReliaStar Life Insurance Company ("ReliaStar Life"), a wholly-owned
subsidiary of ReliaStar Financial Corp. On September 1, 2000, ReliaStar
Financial Corp. was acquired by ING America Insurance Holdings, Inc., a
subsidiary of ING Groep N.V. The Account is registered as a unit investment
trust under the Investment Company Act of 1940.

ReliaStar Select*Life Variable Account consists of Select*Life I and
Select*Life Series 2000, which incorporates Select*Life II, Select*Life III,
Variable Estate Design and Flex Design products. Payments received for the
policies under these products are allocated to sub-accounts of the Account,
each of which is invested in one of the following funds during the year:

The Alger American Fund Fidelity's VIP Fidelity's VIP II
----------------------- -------------- -----------------
Growth Portfolio Equity-Income Portfolio -- Asset Manager Portfolio -- IC
Shares Leveraged AllCap Portfolio IC Shares Contrafund Portfolio -- IC Shares
MidCap Growth Portfolio Growth Portfolio -- IC Shares Index 500 Portfolio -- IC Shares
Small Capitalization Portfolio High Income Portfolio -- IC Shares Investment Grade Bond Portfolio --
Money Market Portfolio -- IC Shares
IC Shares
Overseas Portfolio -- IC Shares

Janus Aspen Series Neuberger Berman Advisers Management Trust OCC Accumulation Trust
------------------ ------------------------------------------ ----------------------
Aggressive Growth Portfolio AMT Limited Maturity Bond Portfolio Equity Portfolio
Growth Portfolio AMT Partners Portfolio Global Equity Portfolio
International Growth AMT Socially Responsive Portfolio Managed Portfolio
Portfolio Small Capitalization Portfolio
Worldwide Growth Portfolio

AIM Variable Insurance Funds
----------------------------
AIM V.I. Dent Demographic Trends Fund

Pilgrim Variable Products Trust Putnam Variable Trust
------------------------------- ---------------------
VP Growth Opportunities Portfolio Putnam VT Asia Pacific Growth Fund -- Class IA Shares
VP Growth + Value Fund Portfolio Putnam VT Diversified Income Fund -- Class IA Shares
VP High Yield Bond Portfolio Putnam VT Growth and Income Fund -- Class IA Shares
VP International Value Portfolio Putnam VT New Opportunities Fund -- Class IA Shares
VP MagnaCap Portfolio Putnam VT Utilities Growth and Income Fund -- Class IA Shares
VP MidCap Opportunities Portfolio Putnam VT Voyager Fund -- Class IA Shares
VP Research Enhanced Index Portfolio
VP SmallCap Opportunities Portfolio

Fred Alger Management, Inc. is the investment adviser for the four portfolios
of The Alger American Fund and is paid fees for its services by The Alger
American Fund Portfolios. Fidelity Management & Research Company is the
investment adviser for Fidelity Variable Insurance Products Fund (VIP) and
Variable Insurance Products Fund II (VIP II) and is paid for its services by
the VIP and VIP II Portfolios. Janus Capital Corporation is the investment
adviser for the four portfolios of Janus Aspen Series and is paid fees for
its services by the Janus Aspen Series Portfolios. Neuberger Berman
Management, Inc. is the investment manager for the three portfolios of the
Neuberger Berman Advisers Management Trust and is paid fees for its services
by the Neuberger Berman Advisers Management Trust Portfolios. ING Pilgrim
Advisors, Inc., an affiliate of ReliaStar Life, is the investment adviser for
the eight Pilgrim Variable Products Trust Portfolios and is paid fees for its
services by the Portfolios. OpCap Advisors is the investment adviser for the
four Portfolios of the OCC Accumulation Trust and is paid fees for its
services by the OCC Accumulation Trust Funds. Putnam Investment Management,
Inc. is the investment adviser for Putnam Variable Trust and is paid fees for
its services by Putnam Variable Trust. A I M Advisors, Inc. is the investment
adviser for the AIM V.I. Dent Demographic Trends Fund and is paid fees for
its services by the fund. Further information is contained in the related
funds' prospectuses.

Fidelity VIP II Contrafund Portfolio is a registered trademark of FMMR
Corporation.

On July 29, 1998, Northstar Variable Trust Portfolio changed its name to
Northstar Galaxy Trust Portfolio (GT). Also on July 29, 1998, the Northstar
Variable Trust Growth Portfolio changed its name to Northstar Galaxy Trust
Growth + Value Portfolio.

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED

1. ORGANIZATION, CONTINUED:
On November 9, 1998, Northstar Galaxy Trust Income and Growth Portfolio
changed its name to Northstar Galaxy Trust Emerging Growth Portfolio.

On April 8, 1999, shareholders of the Northstar Galaxy Trust Multi-Sector
Bond Portfolio approved a proposal to modify the investment objective of the
Portfolio from the objective of seeking to maximize income consistent with
the preservation of capital to the objective of seeking capital appreciation.
Also on April 8, 1999, the name of the Portfolio was changed to Northstar
Galaxy Trust Research Enhanced Index Portfolio to better reflect the
Portfolio's investment objective.

On April 30, 1999, sub-accounts investing in Neuberger Berman Advisers
Management Trust Socially Responsive Portfolio were made available to
Select*Life policies.

On April 30, 1999, Fidelity VIP Overseas Portfolio, Fidelity VIP II Asset
Manager Portfolio, Putnam VT Asia Pacific Growth Fund, Putnam VT Diversified
Income Fund and Putnam VT Utilities Growth and Income Fund were closed to new
premium and transfers.

On November 1, 1999, Northstar Investment Management Corporation changed its
name to Pilgrim Advisors, Inc. Substantially the same personnel are
performing the investment advisory services on behalf of Pilgrim Advisors,
Inc.

On April 28, 2000, Pilgrim Advisors, Inc. merged with Pilgrim Investments,
Inc.

On May 1, 2000, Northstar Galaxy Trust Portfolio changed its name to Pilgrim
Variable Products Trust Portfolio (VP). Also on May 1, 2000, the Northstar
Galaxy Trust Emerging Growth Portfolio and the Northstar Galaxy Trust Growth
and Value Portfolio changed their names to Pilgrim VP SmallCap Opportunities
Portfolio and Pilgrim VP Growth + Value Portfolio, respectively. In addition,
sub-accounts investing in Pilgrim VP MagnaCap Portfolio, Pilgrim VP Growth
Opportunities Portfolio, Pilgrim VP MidCap Opportunities Portfolio, Alger
Leveraged AllCap Portfolio and AIM VI Dent Demographic Trends Fund were made
available to purchasers of products held in the ReliaStar Life's Select*Life
Variable Account.

2. SIGNIFICANT ACCOUNTING POLICIES:
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of increase and decrease in net assets from operations during the period.
Actual results could differ from those estimates.

INVESTMENTS: The market value of investments in the sub-accounts is based on
the closing net asset values of the fund shares held at the end of the year.
Investment transactions are accounted for on the trade date (date the order
to purchase or redeem is executed) and dividend income and capital gain
distributions are recorded on the ex-dividend date. Net realized gains and
losses on redemptions of shares of the funds are determined on the basis of
specific identification of fund share costs.

FEDERAL INCOME TAXES: The operations of the Account are included in the
federal income tax return of ReliaStar Life, which is taxed as a life
insurance company under the provisions of the Internal Revenue Code (IRC).
Under the current provisions of the IRC, ReliaStar Life does not expect to
incur federal income taxes on the earnings of the Account to the extent the
earnings are credited under the contracts. Based on this, no charge is being
made currently to the Account for federal income taxes. ReliaStar Life will
review periodically the status of this policy in the event of changes in the
tax law. A charge may be made in future years for any federal income taxes
that would be attributable to the contracts.

3. POLICY CHARGES:
ReliaStar Life makes certain charges to Policy Owners' Variable Accumulation
Values in the Account in accordance with the terms of the policies. These
charges are set forth in the policies and may include: cost of insurance
charge; monthly expense charge; death benefit guarantee charge; optional
insurance benefit charges; and surrender charges net of any sales charge
refunds.

RELIASTAR SELECT*LIFE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. INVESTMENTS:
For the year ended December 31, 2000, investment activity in the funds was as
follows (in thousands):

COST OF PROCEEDS
INVESTING FUND PURCHASES FROM SALES
-------------- ------------- ------------

The Alger American Fund:
Alger American Growth Portfolio ............................... $ 31,400 $ 12,437
Alger American Leveraged AllCap Portfolio ..................... 2,073 31
Alger American MidCap Growth Portfolio ........................ 25,272 17,951
Alger American Small Capitalization Portfolio ................. 38,456 32,443
AIM Variable Insurance Funds:
AIM V.I. Dent Demographic Trends Fund ......................... 4,514 201
Fidelity's VIP:
VIP Equity-Income Portfolio -- IC Shares ...................... 72,413 70,920
VIP Growth Portfolio -- IC Shares ............................. 31,140 12,484
VIP High Income Portfolio -- IC Shares ........................ 13,283 13,119
VIP Money Market Portfolio -- IC Shares ....................... 356,585 346,708
VIP Overseas Portfolio -- IC Shares ........................... 2,920 4,706
Fidelity's VIP II:
VIP II Asset Manager Portfolio -- IC Shares ................... 4,065 5,986
VIP II Contrafund Portfolio -- IC Shares . .................... 32,538 20,218
VIP II Index 500 Portfolio -- IC Shares ....................... 15,725 8,390
VIP II Investment Grade Bond Portfolio -- IC Shares ........... 7,450 6,374
Janus Aspen Series:
Aggressive Growth Portfolio ................................... 51,589 14,740
Growth Portfolio .............................................. 28,464 4,213
International Growth Portfolio ................................ 83,903 72,693
Worldwide Growth Portfolio .................................... 66,747 45,453
Neuberger Berman Advisers Management Trust:
AMT Limited Maturity Bond Portfolio ........................... 2,502 1,687
AMT Partners Portfolio ........................................ 4,711 3,018
AMT Socially Responsive Portfolio ............................. 189 16
Pilgrim Variable Products Trust:
Pilgrim VP Growth Opportunities Portfolio ..................... 1,945 62
Pilgrim VP Growth + Value Portfolio ........................... 21,734 4,219
Pilgrim VP High Yield Bond Portfolio .......................... 577 250
Pilgrim VP International Value Portfolio ...................... 37,675 34,739
Pilgrim VP MagnaCap Portfolio ................................. 147 12
Pilgrim VP MidCap Opportunities Portfolio ..................... 512 62
Pilgrim VP Research Enhanced Index Portfolio .................. 2,518 1,963
Pilgrim VP SmallCap Opportunities Portfolio ................... 35,528 14,123
OCC Accumulation Trust:
Equity Portfolio .............................................. 2,103 1,406
Global Equity Portfolio ....................................... 11,760 11,481
Managed Portfolio ............................................. 2,265 1,604
Small Cap Portfolio ........................................... 22,812 22,506
Putnam Variable Trust:
Putnam VT Asia Pacific Growth Fund -- Class IA Shares ......... 154 473
Putnam VT Diversified Income Fund -- Class IA Shares .......... 137 353
Putnam VT Growth and Income Fund -- Class IA Shares ........... 31,957 26,352
Putnam VT New Opportunities Fund -- Class IA Shares ........... 22,361 9,857
Putnam VT Utilities Growth and Income Fund -- Class IA
Shares ....................................................... 282 618
Putnam VT Voyager Fund -- Class IA Shares ..................... 33,724 7,719
---------- --------
Total ......................................................... $1,104,130 $831,587
========== ========

INDEPENDENT AUDITORS' REPORT

Board of Directors and Shareholder
ReliaStar Life Insurance Company
Minneapolis, Minnesota

We have audited the accompanying statutory basis statement of admitted assets,
liabilities, surplus and other funds of ReliaStar Life Insurance Company (the
Company) as of December 31, 2000, and the related statutory basis statements of
operations, changes in capital and surplus, and cash flows for the year then
ended. These statutory basis financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
statutory basis financial statements based on our audit. The statutory basis
financial statements of the Company as of December 31, 1999, and the year then
ended, were audited by other auditors whose report dated May 12, 2000 expressed
an adverse opinion as to their conformity with accounting principles generally
accepted in the United States, because the financial statements were presented
in accordance with statutory accounting practices prescribed or permitted by the
Minnesota Department of Commerce, and an unqualified opinion as to their
conformity with such statutory accounting practices.

We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the statutory basis financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the statutory
basis financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall statutory basis financial statement presentation. We
believe our audit provides a reasonable basis for our opinion.

As described in Note 1 to the statutory basis financial statements, the Company
presents its statutory basis financial statements in conformity with accounting
practices prescribed or permitted by the Minnesota Department of Commerce, which
practices differ from accounting principles generally accepted in the United
States. The variances between such practices and accounting principles generally
accepted in the United States also are described in Note 1. The effects on the
financial statements of the variances are not reasonably determined but are
presumed to be material.

In our opinion, because of the effects of the matter described in the preceding
paragraph, the statutory basis financial statements referred to above do not
present fairly, in conformity with accounting principles generally accepted in
the United States, the financial position of the Company as of December 31,
2000, or the results of its operations, or its cash flows for the year then
ended.

However, in our opinion, the 2000 statutory basis financial statements referred
to above present fairly, in all material respects, the financial position of the
Company as of December 31, 2000, and the results of its operations, and its cash
flows for the year then ended, in conformity with accounting practices
prescribed or permitted by the Minnesota Department of Commerce.

/S/ ERNST & YOUNG LLP

Ernst & Young, LLP
Minneapolis, Minnesota
March 21, 2001

INDEPENDENT AUDITORS' REPORT

Board of Directors and Shareholder
ReliaStar Life Insurance Company
Minneapolis, Minnesota

We have audited the accompanying statutory basis statement of admitted assets,
liabilities, and surplus and other funds of ReliaStar Life Insurance Company
(the Company) as of December 31, 1999, and the related statutory basis statement
of operations, changes in capital and surplus, and cash flows for the year then
ended. These statutory basis financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
statutory basis financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the statutory
basis financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the statutory basis financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall statutory basis financial statement presentation. We
believe our audit provides a reasonable basis for our opinion.

As more fully described in Note 1 to the financial statements, the Company has
prepared these financial statements using accounting practices prescribed or
permitted by the Insurance Department of the State of Minnesota, which practices
differ from accounting principles generally accepted in the United States of
America (generally accepted accounting principles). The effects on the financial
statements of the variances between the statutory basis of accounting and
generally accepted accounting principles are also described in Note 1.

In our opinion, because of the effects of the matters discussed in the preceding
paragraph, the determinable financial statements referred to above do not
present fairly, in conformity with generally accepted accounting principles, the
financial position of the Company as of December 31, 1999, or the results of its
operations, or its cash flows for the year then ended.

In our opinion, the statutory basis financial statements referred to above
present fairly, in all material respects, the admitted assets, liabilities, and
surplus and other funds of the Company as of December 31, 1999, and the results
of its operations, changes in capital and surplus, and its cash flows for the
year then ended, on the basis of accounting described in Note 1.

/S/ DELOITTE & TOUCHE LLP

Deloitte & Touche, LLP
Minneapolis, Minnesota
May 12, 2000

RELIASTAR LIFE INSURANCE COMPANY
(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
Statutory Basis Statements of Admitted Assets,
Liabilities, Surplus and Other Funds

DECEMBER 31 (IN MILLIONS) 2000 1999
------------------------------------------------------------------- ---------- ----------

ASSETS
Bonds (Market: 2000, $4,459.1; 1999, $3,868.6) ................... $ 4,463.9 $ 3,947.9
Stocks (Cost: 2000, $499.9 ; 1999, $490.7) ....................... 783.1 758.1
Mortgage Loans on Real Estate .................................... 574.5 791.2
Real Estate (Less Encumbrances: 2000, $0; 1999, $9.5) ............ 107.1 109.4
Policy Loans ..................................................... 260.4 250.3
Cash on Hand and on Deposit ...................................... 11.1 29.4
Short-Term Investments ........................................... 56.2 76.7
Other Invested Assets ............................................ 70.6 41.4
------------------------------------------------------------------- ---------- ----------
TOTAL CASH AND INVESTED ASSETS ................................... 6,326.9 6,004.4
Reinsurance Recoverable .......................................... 73.1 60.4
Life Insurance Premiums and Annuity Considerations Deferred and
Uncollected ..................................................... 123.3 175.7
Accident and Health Premiums Due and Unpaid ...................... 103.6 63.5
Investment Income Due and Accrued ................................ 85.2 76.2
Federal Income Tax Receivable .................................... 60.7 --
Other Assets ..................................................... 108.2 41.2
From Separate Account Statement .................................. 4,500.9 4,734.5
------------------------------------------------------------------- ---------- ----------
TOTAL ADMITTED ASSETS ............................................ $ 11,381.9 $ 11,155.9
=================================================================== ========== ==========
LIABILITIES, SURPLUS AND OTHER FUNDS
Aggregate Reserves for Policies and Contracts .................... $ 4,309.9 $ 4,150.4
Accumulations and Deposit Fund Liabilities ....................... 493.1 504.6
Policy and Contract Claims ....................................... 489.1 296.3
Policyholders' Dividends ......................................... 19.7 18.2
Other Policy and Contract Liabilities ............................ 64.2 66.7
Commissions Payable .............................................. 73.9 68.6
General Expenses Due or Accrued .................................. 60.1 37.9
Transfers to Separate Accounts Due or Accrued .................... (294.3) (258.0)
Taxes, Licenses, and Fees Due or Accrued, Excluding Federal Income
Taxes ........................................................... 9.5 6.7
Federal Income Taxes Due or Accrued .............................. -- 42.1
Unearned Investment Income ....................................... 8.2 7.8
Asset Valuation Reserve .......................................... 66.4 87.1
Other Liabilities ................................................ 404.9 241.9
From Separate Account Statement .................................. 4,497.9 4,731.9
------------------------------------------------------------------- ---------- ----------
TOTAL LIABILITIES ................................................ 10,202.6 10,002.2
------------------------------------------------------------------- ---------- ----------
SURPLUS AND OTHER FUNDS
Common Capital Stock ............................................. 2.5 2.5
Preferred Capital Stock .......................................... .1 .1
Surplus Note ..................................................... 100.0 100.0
Gross Paid In and Contributed Surplus ............................ 819.8 506.3
Unassigned Surplus ............................................... 257.0 544.9
Less Treasury Stock -- Preferred Stock ........................... (.1) (.1)
------------------------------------------------------------------- ---------- ----------
TOTAL SURPLUS AND OTHER FUNDS .................................... 1,179.3 1,153.7
------------------------------------------------------------------- ---------- ----------
TOTAL LIABILITIES, SURPLUS AND OTHER FUNDS ....................... $ 11,381.9 $ 11,155.9
=================================================================== ========== ==========

The accompanying notes are an integral part of the statutory basis financial
statements.

RELIASTAR LIFE INSURANCE COMPANY
(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
Statutory Basis Statements of Operations

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
------------------------------------------------------------------------------- --------- ----------

REVENUES
Premiums and Annuity Considerations .......................................... $ 1,861.3 $ 1,751.4
Deposit-Type Funds ........................................................... 700.3 732.9
Considerations for Supplementary Contracts and Dividend Accumulations ........ 300.7 286.6
Net Investment Income ........................................................ 413.5 478.5
Separate Account Fee Revenue ................................................. 113.2 91.2
Other Income ................................................................. 53.1 60.2
------------------------------------------------------------------------------- --------- ----------
TOTAL REVENUES ............................................................... 3,442.1 3,400.8
------------------------------------------------------------------------------- --------- ----------
BENEFITS AND EXPENSES
Death Benefits ............................................................... 680.2 592.4
Annuity Benefits ............................................................. 70.3 77.7
Disability and Accident and Health Benefits .................................. 300.8 224.2
Surrender Benefits and Other Fund Withdrawals ................................ 1,260.0 1,075.5
Payments on Supplementary Contracts and of Dividend Accumulations ............ 321.0 294.4
Change in Reserve for Policies and Contracts ................................. 154.7 15.1
Change in Liability for Accumulations and Deposit Funds ...................... (9.9) (25.0)
Other ........................................................................ 12.0 10.8
------------------------------------------------------------------------------- --------- ----------
Total Benefits ............................................................... 2,789.1 2,265.1
Commissions .................................................................. 283.2 255.9
General Insurance Expenses ................................................... 240.9 154.0
Insurance Taxes, Licenses and Fees, Excluding Federal Income Taxes ........... 34.1 28.5
Other ........................................................................ 26.4 3.4
Net Transfers to Separate Accounts ........................................... 302.0 406.8
------------------------------------------------------------------------------- --------- ----------
TOTAL BENEFITS AND EXPENSES .................................................. 3,675.7 3,113.7
------------------------------------------------------------------------------- --------- ----------
Net Gain (Loss) from Operations before Dividends to Policyholders and
Federal Income Taxes ........................................................ (233.6) 287.1
Dividends to Policyholders ................................................... 24.7 23.0
------------------------------------------------------------------------------- --------- ----------
Net Gain (Loss) from Operations before Federal Income Taxes .................. (258.3) 264.1
Federal Income Taxes (Excluding Taxes on Capital Gains and Losses) ........... (59.4) 55.7
------------------------------------------------------------------------------- --------- ----------
Net Gain (Loss) from Operations before Realized Capital Gains and Losses ..... (198.9) 208.4
Net Realized Capital Losses, Net of Tax ...................................... (44.1) (16.5)
------------------------------------------------------------------------------- --------- ----------
NET INCOME (LOSS) ............................................................ $ (243.0) $ 191.9
=============================================================================== ========== ==========

The accompanying notes are an integral part of the statutory basis financial
statements.

RELIASTAR LIFE INSURANCE COMPANY
(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
Statutory Basis Statements of Changes in Capital and Surplus

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
------------------------------------------------------------------------- ---------- ----------

CAPITAL AND SURPLUS, BEGINNING OF YEAR ................................. $ 1,153.7 $ 1,063.4
Net Income (Loss) ...................................................... (243.0) 191.9
Dividends to Parent .................................................... (61.1) (82.0)
Change in Net Unrealized Capital Gains and Losses ...................... 22.9 (15.9)
Change in Non-Admitted Assets and Related Items ........................ (.8) (4.8)
Change in Liability for Reinsurance in Unauthorized Companies .......... (25.0) (4.0)
Change in Reserve on Account of Change in Valuation Basis .............. (2.6) (3.5)
Change in Asset Valuation Reserve ...................................... 20.7 7.2
Capital Contribution from Parent ....................................... 313.5 --
Other Changes in Capital and Surplus, Net .............................. 1.0 1.4
------------------------------------------------------------------------- ---------- ----------
CAPITAL AND SURPLUS, END OF YEAR ....................................... $ 1,179.3 $ 1,153.7
========================================================================= ========== ==========

The accompanying notes are an integral part of the statutory basis financial
statements.

RELIASTAR LIFE INSURANCE COMPANY
(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)
Statutory Basis Statements of Cash Flows

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
----------------------------------------------------------------------- ---------- ----------

CASH FROM OPERATIONS
Premiums and Annuity Considerations .................................. $ 1,882.4 $ 1,740.4
Deposit-Type Funds ................................................... 700.3 732.9
Considerations for Supplementary Contracts and Dividends Accumulations 300.7 286.6
Commission and Expense Allowances on Reinsurance Ceded ............... 51.7 43.5
Net Investment Income ................................................ 408.0 480.2
Fees from Separate Accounts .......................................... 116.1 89.4
Other Income ......................................................... 7.8 9.8
Life and Accident and Health Claims .................................. (796.0) (802.4)
Surrender Benefits and Other Fund Withdrawals ........................ (1,260.0) (1,075.5)
Other Benefits to Policyholders ...................................... (411.1) (381.6)
Commissions, Other Expenses and Taxes ................................ (530.7) (437.6)
Net Transfers to Separate Accounts ................................... (341.3) (476.3)
Dividends to Policyholders ........................................... (23.2) (22.9)
Federal Income Taxes ................................................. (43.0) (32.8)
----------------------------------------------------------------------- ---------- ----------
Net Cash From Operations ............................................. 61.7 153.7
----------------------------------------------------------------------- ---------- ----------
CASH FROM INVESTMENTS
Proceeds from Investments Sold, Matured or Repaid

Bonds ............................................................... 1,511.9 857.3
Stocks .............................................................. 1,051.4 559.5
Mortgage Loans ...................................................... 265.3 159.5
Real Estate ......................................................... 10.7 44.5
Other Invested Assets ............................................... 14.4 9.9
Miscellaneous Proceeds .............................................. (.3) 6.2
Taxes on Capital Gains and Losses .................................... 9.2 (3.5)
----------------------------------------------------------------------- ---------- ----------
Total Investment Proceeds ......................................... 2,862.6 1,633.4
----------------------------------------------------------------------- ---------- ----------
Cost of Investments Acquired

Bonds ............................................................... (2,066.8) (796.1)
Stocks .............................................................. (1,063.3) (645.4)
Mortgage Loans ...................................................... (57.1) (176.7)
Real Estate ......................................................... (13.0) (9.8)
Other Invested Assets ............................................... (28.4) (7.7)
Miscellaneous Applications .......................................... (18.8) (2.4)
----------------------------------------------------------------------- ---------- ----------
Total Investments Acquired ........................................ (3,247.4) (1,638.1)
----------------------------------------------------------------------- ---------- ----------
Net Change in Policy Loans and Premium Notes ......................... (10.1) (5.5)
----------------------------------------------------------------------- ---------- ----------
Net Cash From Investments ............................................ (394.9) (10.2)
----------------------------------------------------------------------- ---------- ----------
CASH FROM FINANCING AND MISCELLANEOUS SOURCES
Dividends to Parent .................................................. (61.1) (82.0)
Capital Contribution from Parent ..................................... 313.5 --
Other Sources (Applications), Net .................................... 42.0 (13.4)
----------------------------------------------------------------------- ---------- ----------
Net Cash from Financing and Miscellaneous Sources .................... 294.4 (95.4)
----------------------------------------------------------------------- ---------- ----------
Net Change in Cash and Short-Term Investments ........................ (38.8) 48.1
Cash and Short-Term Investments at Beginning of Year ................. 106.1 58.0
----------------------------------------------------------------------- ---------- ----------
Cash and Short-Term Investments at End of Year ....................... $ 67.3 $ 106.1
======================================================================= ========== ==========

The accompanying notes are an integral part of the statutory basis financial
statements.

RELIASTAR LIFE INSURANCE COMPANY
(A Wholly Owned Subsidiary of ReliaStar Financial Corp.)

NOTES TO STATUTORY BASIS FINANCIAL STATEMENTS

NOTE 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS
ReliaStar Life Insurance Company (the Company) is principally engaged in the
business of providing individual life insurance and annuities; employee benefit
products and services; retirement plans; and life and health reinsurance. The
Company operates primarily in the United States and is authorized to conduct
business in all states, except New York.

BASIS OF PRESENTATION
The accompanying statutory basis financial statements of the Company have been
prepared in conformity with accounting practices prescribed or permitted by the
National Association of Insurance Commissioners (NAIC) and the State of
Minnesota. Such statutory insurance accounting practices differ from generally
accepted accounting principles. Significant differences include requiring the
immediate recognition of acquisition costs; providing only for income taxes
currently payable; recording assets considered non-admitted as a direct
adjustment of surplus; requiring an asset valuation reserve; establishing policy
reserves for life and annuity products based on statutory mortality and interest
rates; valuing bonds based primarily on amortized cost; for certain securities
sold, deferring any realized gain or loss due to changes in interest rates and
subsequently amortizing the deferred gain or loss over the remaining life of the
security sold; recognizing pension costs as paid; subsidiaries of the Company
are accounted for using the equity method of accounting; and retaining the
historical value of assets and liabilities upon a change in ownership. The
amounts in these financial statements pertain to the entire business of the
Company including, as appropriate, its Separate Account business.

Effective January 1, 2001 the Company will adopt the accounting practices set
forth in the Accounting Practices and Procedures Manual issued by the NAIC and
as adopted by the State of Minnesota. The impact on surplus of adopting these
standards at January 1, 2001 has not yet been completed.

All outstanding shares of the Company are owned by ReliaStar Financial Corp.
(ReliaStar), a holding and management company domiciled in Delaware. ReliaStar's
ultimate parent is ING Groep, N.V. (ING), a global financial services company
based in Amsterdam, Netherlands. ING acquired ReliaStar in September 2000. The
Company owns at December 31, 2000, directly and indirectly, capital stock of the
following companies: Northern Life Insurance Company, Norlic, Inc.,
Security-Connecticut Life Insurance Company, ReliaStar Life Insurance Company of
New York, ReliaStar Reinsurance Group (UK), Ltd. and NWNL Benefits Corporation.

USE OF ESTIMATES
The preparation of financial statements in conformity with accounting practices
prescribed or permitted by the NAIC and the State of Minnesota requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

During 2000, the Company accrued approximately $72 million for employee-related
termination costs associated with integration activities initiated as a result
of being acquired by ING.

INVESTMENTS
Security investments are valued in accordance with the requirements of the NAIC,
as follows:

Bonds not backed by other loans at amortized cost using the interest method;
loan-backed bonds and structured securities at amortized cost using the interest
method including anticipated prepayments at the date of purchase. Significant
changes in estimated cash flows from the original purchase assumptions are
accounted for using the interest method. Prepayment assumptions for loan-backed
bonds and

structured securities were obtained from vendor provided prepayment models,
broker-dealer survey values or internal estimates. These assumptions are
consistent with the current interest rate and economic environment. The
retrospective adjustment method is used to value all loan-backed bonds and
structured securities.

Preferred stocks in good standing are valued at cost, which approximates market
value.

Common stocks are carried at estimated market value.

Mortgage loans on real estate are carried at amortized cost.

Investment real estate and buildings owned and occupied by the Company are
carried at cost less accumulated depreciation and encumbrances, or market value
if lower.

Real estate acquired in satisfaction of debt is stated at the lower of the
appraised value of the asset foreclosed, or book value of the mortgage at the
date of foreclosure.

Policy loans are carried at the aggregate unpaid balance.

Short-term investments are carried at amortized cost, which approximates market
value.

Other invested assets, primarily joint ventures and limited partnerships, are
carried on the cost or equity basis.

Derivative instruments, such as interest rate swaps and equity indexed call
options, are valued in accordance with the NAIC Accounting Practices and
Procedures manual and the Purposes and Procedures manual of the Securities
Valuation Office. All derivative instruments are valued consistently with the
hedged items. The Company recognizes investment income on interest rate swap
agreements whereby the difference between the amounts paid and amounts received
or accrued on interest rate swap agreements are reflected in net investment
income. Equity indexed call options are used to hedge the Company's equity
indexed annuity product and are carried at estimated market value.

All other security investments are presented at values prescribed by or deemed
acceptable to the NAIC, generally market value.

Subsidiaries of the Company are accounted for using the equity method of
accounting. Insurance subsidiaries are carried at their statutory book value and
non-insurance subsidiaries are carried at their book value calculated in
accordance with generally accepted accounting principles. The reported net
income of the Company's subsidiaries is included in investment income, while all
other changes in the net assets of subsidiaries is included in unrealized gains
and losses. The assets and liabilities of the Company's subsidiaries are not
consolidated with the assets and liabilities of the Company.

The Company uses straight-line depreciation for all of its depreciable assets,
with useful lives varying depending on the asset. For real estate subject to
long-term leases, a depreciation method is used to result in accounting similar
to direct financing leases whereby the excess of aggregate rentals over cost
(reduced by estimated residual value) is recognized as investment income over
the term of the lease at an approximately constant periodic rate of return.

Realized investment gains and losses on sales of securities are included in the
determination of net income and are determined on the specific identification
method. Unrealized investment gains and losses are accounted for as direct
increases or decreases in surplus. Income tax effects of unrealized gains and
losses are not recognized. Realized gains and losses on expired futures
contracts have been deferred and are being amortized over the life of the asset
or liability the future contracts hedged.

Due and accrued income is excluded from investment income on mortgage loans,
bonds and short-term investments where interest is past due more than 90 days.
The total amount excluded at December 31, 2000 and 1999, was $2.5 million and
$1.5 million, respectively.

SEPARATE ACCOUNTS
The Company operates separate accounts. The assets and liabilities of the
separate accounts are primarily related to variable annuity, variable universal
life and 401(k) contracts and represent policyholder-directed funds that are
separately administered. The assets (primarily investments) and liabilities
(principally to contractholders) of each account are clearly identifiable and
distinguishable from other assets and liabilities of the Company. Assets are
carried at market value.

NON-ADMITTED ASSETS
Assets of the Company designated as "non-admitted," primarily furniture and
equipment, are excluded from admitted assets. The change in such assets, net of
depreciation, is reflected as a direct increase or decrease in surplus.

PARTICIPATION FUND ACCOUNT
On January 3, 1989, the Commissioner of Commerce of the State of Minnesota
approved a Plan of Conversion and Reorganization (the Plan) which provided,
among other things, for the conversion of the Company from a combined stock and
mutual life insurance company to a stock life insurance company.

The Plan provided for the establishment of a Participation Fund Account (PFA)
for the benefit of certain participating individual life insurance policies and
annuities issued by the Company prior to the effective date of the Plan. Under
the terms of the PFA, the insurance liabilities and assets (approximately $300
million as of December 31, 2000) with respect to such policies are segregated in
the accounting records of the Company to assure the continuation of policyholder
dividend practices.

AGGREGATE RESERVES FOR POLICIES AND CONTRACTS
Reserves for future policy and contract benefits for life insurance are computed
by the net level premium and preliminary term and other modified reserve methods
on the basis of interest rates and mortality assumptions prescribed by state
regulatory authorities. Annuity reserves are computed using interest rates and
mortality assumptions where needed as prescribed by state regulatory
authorities. Waiver of premium reserves (group disabled life reserves) are
determined using morbidity and termination assumptions primarily based on the
1970 Intercompany Group Disability Table, using an interest rate of 5.25% to
6.25% for disablements. Reserves for long-term disability policies are primarily
based on the 1981 Company Termination Table, using an interest rate of 5.5% to
10.3% for disablements prior to 1993 and the 1987 CGDT using an interest rate of
5.5% to 6.25% for disablements subsequent to 1992. Liabilities for unpaid
accident and health claims are estimates of the ultimate net cost of all
reported and unreported claims not yet settled. These reserves are estimated
using actuarial analyses and case basis evaluations.

The Company waives deduction of deferred fractional premiums upon the death of
the insured and returns any portion of the final premium beyond the date of
death. Surrender values are not promised in excess of the legally computed
reserves.

All substandard policies except Adjustable Life and Universal Life are valued as
standard plus an amount determined by valuation representing the excess amount
of the multiple table reserves over the standard reserves. All Adjustable Life
and Universal Life policies are valued directly on a multiple table basis.

As of December 31, 2000, the Company had insurance in force of $3.8 billion for
which the gross premiums are less than the net premiums according to the
standard valuation set by the State of Minnesota. Reserves to cover this
insurance totaled $12.5 million at December 31, 2000.

Of the total annuity reserves and deposit fund liabilities at December 31, 2000,
approximately 13% were subject to discretionary withdrawal -- with adjustment;
approximately 16% were subject to discretionary withdrawal -- without
adjustment; approximately 10% were not subject to discretionary withdrawal
provisions; and approximately 61% were related to "market value" reserves in
separate accounts without investment guarantees whose surrender values vary with
the market value of the invested assets supporting the reserves.

REINSURANCE
Reinsurance premiums and benefits paid or provided are accounted for on bases
consistent with those used for the underlying policies and the terms of the
reinsurance contract.

INCOME TAXES DUE AND ACCRUED
The provision for income taxes is based upon income that is estimated to be
currently taxable.

PREMIUM REVENUE AND BENEFITS TO POLICYHOLDERS
Premiums on life insurance and annuity contracts are generally recognized as
revenue over the premium paying period of the contract. Contract benefits are
recognized over the life of the contract by providing reserves for future policy
and contract benefits.

POLICY ACQUISITION COSTS
Costs of acquiring new business are charged to operating expenses when incurred.

NOTE 2. INVESTMENTS

BONDS
The statement value and estimated market values of investments in bonds by type
of investment were as follows:

Gross Unrealized
-----------------------
Estimated
Statement Market
DECEMBER 31, 2000 (IN MILLIONS) Value Gains (Losses) Value
----------------------------------------------------------- ----------- ---------- ---------- ------------

United States Government and Government Agencies
and Authorities .......................................... $ 231.1 $ 12.1 $ (.1) $ 243.1
States, Municipalities and Political Subdivisions ......... 7.9 .2 -- 8.1
Foreign Governments ....................................... 33.6 .9 (.2) 34.3
Public Utilities .......................................... 311.8 5.2 (3.4) 313.6
Corporate Securities ...................................... 2,574.9 40.0 (43.7) 2,571.2
Mortgage-Backed/Structured Finance ........................ 1,304.6 28.4 (44.2) 1,288.8
------------------------------------------------------------ --------- ------- ------- ---------
TOTAL ..................................................... $ 4,463.9 $ 86.8 $ (91.6) $ 4,459.1
============================================================ ========= ======= ======= =========

Gross Unrealized
------------------------
Estimated
Statement Market
DECEMBER 31, 1999 (IN MILLIONS) Value Gains (Losses) Value
----------------------------------------------------------- ----------- --------- ------------ ------------

United States Government and Government Agencies
and Authorities .......................................... $ 31.6 $ .7 $ (.5) $ 31.8
States, Municipalities and Political Subdivisions ......... 10.4 .1 (.8) 9.7
Foreign Governments ....................................... 31.2 .3 (.8) 30.7
Public Utilities .......................................... 260.4 2.2 (4.7) 257.9
Corporate Securities ...................................... 2,571.1 19.2 (65.1) 2,525.2
Mortgage-Backed/Structured Finance ........................ 1,043.2 4.4 (34.3) 1,013.3
------------------------------------------------------------ --------- ------ -------- ---------
TOTAL ..................................................... $ 3,947.9 $ 26.9 $ (106.2) $ 3,868.6
============================================================ ========= ====== ======== =========

The statement value and estimated market value of bonds, by contractual
maturity, are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations
with or without call or prepayment penalties.

Estimated
Statement Market
DECEMBER 31, 2000 (IN MILLIONS) Value Value
-------------------------------------------- ----------- ------------

Maturing in:
One Year or Less .......................... $ 212.6 $ 214.7
One to Five Years ......................... 1,414.2 1,422.9
Five to Ten Years ......................... 1,228.3 1,233.7
Ten Years or Later ........................ 304.2 299.0
Mortgage-Backed/Structured Finance ......... 1,304.6 1,288.8
--------------------------------------------- --------- ---------
TOTAL ...................................... $ 4,463.9 $ 4,459.1
============================================= ========= =========

The estimated market values for actively traded marketable bonds are determined
based upon quoted market prices. The estimated market values for marketable
bonds without an active market are obtained through several commercial pricing
services, which provide the estimated market values. Estimated market values of
privately placed bonds, which are not considered problems, are determined using
a matrix-based pricing model. The model considers the current level of risk-free
interest rates, current corporate spreads, the credit quality of the issuer and
cash flow characteristics of the security. Using this data, the model generates
market values which the Company considers reflective of the estimated market
value of each privately placed bond. Estimated market values for privately
placed bonds which are considered problems are determined through consideration
of factors such as the net worth of

borrower, the value of collateral, the capital structure of the borrower, the
presence of guarantees and the Company's evaluation of the borrower's ability to
compete in their relevant market.

At December 31, 2000, the largest industry concentration of the private
placement portfolio was mortgage-backed/structured finance where 18% of the
portfolio was invested, and the largest industry concentration of the marketable
bond portfolio was mortgage-backed/structured finance, where 33% of the
portfolio was invested.

STOCKS
The cost and statement value of stocks were as follows:

DECEMBER 31 (IN MILLIONS) 2000 1999
--------------------------------------- ---------- ----------

UNAFFILIATED
Cost ................................. $ 29.7 $ 28.2
Gross Unrealized Gains ............... -- 2.1
Gross Unrealized Losses .............. (1.6) (1.6)
---------------------------------------- ------- -------
Statement Value ...................... 28.1 28.7
Affiliated -- Statement Value ......... 755.0 729.4
---------------------------------------- ------- -------
TOTAL STATEMENT VALUE ................. $ 783.1 $ 758.1
======================================== ======= =======

MORTGAGE LOANS ON REAL ESTATE
The maximum and minimum lending rates for all mortgage loans issued during 2000
were 10.5% and 7.95%, respectively.

During 2000 and 1999, the Company did not reduce interest rates of outstanding
mortgage loans.

The maximum percentage of any one loan to the value of security at the time of
the loan was 80%. Fire insurance is required on all properties covered by
mortgage loans at least equal to the excess of the loan over the maximum loan
which would be permitted by law on the land without buildings. As of December
31, 2000, the Company held no mortgages with interest more than one year
overdue.

At December 31, 2000, the largest geographic concentration of commercial
mortgage loans was in the Midwest region of the United States, where
approximately 36% of the commercial mortgage loan portfolio was invested.

INVESTMENT INCOME
Investment income summarized by type of investment was as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
---------------------------------------- ----------- -----------

Bonds .................................. $ 314.2 $ 298.6
Common Stock-Affiliates ................ 15.9 92.2
Mortgage Loans on Real Estate .......... 58.4 62.2
Real Estate ............................ 24.6 28.3
Policy Loans ........................... 16.2 13.9
Short-Term Investments ................. 5.1 2.7
Other .................................. 15.7 14.0
----------------------------------------- -------- --------
Gross Investment Income ................ 450.1 511.9
Investment Expenses .................... 36.6 33.4
----------------------------------------- -------- --------
NET INVESTMENT INCOME .................. $ 413.5 $ 478.5
========================================= ======== ========

REALIZED INVESTMENT GAINS AND LOSSES
Net realized capital gains (losses) were as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
-------------------------------------------------------------------- ---------- -----------

Bonds ..............................................................
Gross Gains ....................................................... $ 13.7 $ 8.5
Gross Losses ...................................................... (63.0) (7.9)
Common Stock of Affiliates ......................................... -- (4.7)
Mortgage Loans on Real Estate ...................................... (9.1) .6
Real Estate ........................................................ (.4) (2.6)
Other .............................................................. (4.8) (6.1)
--------------------------------------------------------------------- ------- -------
Net Pretax Realized Capital Gains and Losses ....................... (63.6) (12.2)
Income Tax Benefit (Expense) ....................................... 9.6 (1.5)
Net Pretax Realized Capital Gains and Losses Transferred to Interest
Maintenance Reserve (IMR) ......................................... 15.2 (4.3)
Income Tax Expense (Benefit) Transferred to IMR .................... (5.3) 1.5
--------------------------------------------------------------------- ------- -------
NET REALIZED CAPITAL LOSSES, NET OF TAX ............................ $ (44.1) $ (16.5)
===================================================================== ======= =======

Proceeds from the sale of bonds were $967.5 million and $394.7 million during
2000 and 1999, respectively.

DERIVATIVE INSTRUMENTS
The Company has an established program prescribing the use of derivatives in its
asset/liability management activity. The investment policy of the Company
expressly precludes the use of such instruments for speculative purposes. The
policy details permissible uses and instruments and contains accounting and
management controls designed to assure compliance with these policies. The
Company is not a party to leveraged derivatives.

The insurance liabilities of the Company are sensitive to changes in market
interest rates. The Company has established procedures for evaluating these
liabilities and structures investment asset portfolios with compatible
characteristics. Investment assets are selected which provide yield, cash flow
and interest rate sensitivities appropriate to support the insurance products.

The Company uses interest rate swaps and equity indexed call options as part of
this asset/liability management program. The Company has acquired a significant
amount of certain shorter duration investments, such as floating rate or
adjustable rate investments. Acquisition of these assets shortens the duration
of an asset portfolio. The Company uses interest rate swaps to extend the
duration of these portfolios as an alternative to purchasing longer duration
investments. The equity indexed call options are based on the S&P 500 Index
and are used to hedge the Company's equity indexed annuity product. On the
termination date, the counterparty will make one payment to the Company based on
the level of the index and strike price.

The Company is exposed to credit-related losses in the event of nonperformance
by counterparties to derivative instruments, but it does not expect any
counterparties to fail to meet their obligations, given their high credit
ratings. In addition, the Company has established an issuer holder limitation
program whereby the maximum credit exposure to a single issuer is established
based upon the credit rating of the issuer and the structure of the investment.
The positive market value of swap positions are included in the computation of
the maximum issuer limitation.

NOTE 3. ENCUMBRANCES ON REAL ESTATE

Encumbrances on real estate consist of the following:

DECEMBER 31 (IN MILLIONS) 2000 1999
------------------------------------------------------------------------- ------ ---------

6.2% to 9.6% Mortgage Notes Assumed in Connection with
Real Estate Investments ................................................ $ -- $ 9.0
Capital Lease Obligation on Real Estate Occupied by the Company ......... -- .5
-------------------------------------------------------------------------- ---- ------
Total .................................................................. $ -- $ 9.5
========================================================================== ==== ======

The encumbrances on real estate were settled during 2000.

NOTE 4. EMPLOYEE BENEFIT PLANS

SUCCESS SHARING PLAN AND ESOP
The Success Sharing Plan and ESOP (Success Sharing Plan) was designed to
increase employee ownership and reward employees when certain ReliaStar
performance objectives are met. Essentially all employees are eligible to
participate in the Success Sharing Plan. The Success Sharing Plan has both
qualified and nonqualified components. The nonqualified component is equal to
25% of the annual award and is paid in cash to employees. The qualified
component is equal to 75% of the annual award which is contributed to the ESOP
portion of the Success Sharing Plan.

In addition, the Success Sharing Plan has a 401(k) feature whereby participants
may elect to contribute a percentage of their eligible earnings to the plan. The
Company matches participants' 401(k) contributions up to 6% of eligible
earnings.

Costs charged to expense for the Success Sharing Plan were $8.8 million and $7.5
million for the years ended December 31, 2000 and 1999, respectively.

PENSION AND OTHER POSTRETIREMENT BENEFITS
PENSION PLANS -- The Company sponsors a funded noncontributory defined benefit
retirement plan (the Plan) covering substantially all employees of the Company
and its affiliates. The Plan provides benefits to employees upon retirement.
Effective December 31, 1998, the qualified defined benefit retirement plan was
amended to suspend the accrual of additional benefits for future services.
Eligible employees retain all of their accrued benefits as of December 31, 1998,
which will be paid monthly at retirement according to the provisions of the
plan. Employees meeting certain age and service requirements will receive
certain transition benefits until retirement.

Annual pension expense for the Plan is equal to the funding for the plan year
determined under the projected unit credit actuarial cost method, including
amortization of prior service costs and considering ERISA minimum and maximum
funding requirements. No pension expense was required to be recorded for the
years ended December 31, 2000 and 1999. At January 1, 2000, the date of the most
recent actuarial valuation, the plan accumulated benefit obligation/present
value of accrued benefits and the amount of vested benefits for the Plan was
$192.3 million and $188.4 million, respectively, based on an assumed 8.5%
interest rate. The fair value of plan assets was $347.6 million as of January 1,
2000. Plan assets include 1.2 million shares of ReliaStar common stock with a
fair value of $48.3 million as of January 1, 2000.

The Company and ReliaStar also have unfunded noncontributory defined benefit
plans providing for benefits to employees in excess of limits for qualified
retirement plans.

POSTRETIREMENT BENEFITS -- The Company provides certain health care and life
insurance benefits to retired employees and their eligible dependents of the
Company and its affiliates (Postretirement Plan). The postretirement health care
plan is contributory, with retiree contribution levels adjusted annually; the
life insurance plan provides a flat amount of noncontributory coverage and
optional contributory coverage.

The amount of accumulated benefits obligation for retirees and vested employees
covered under the Postretirement Plan as of December 31, 2000 and 1999, was
$14.2 million and $11.1 million, respectively, and the amount of accumulated
benefits obligation for non-vested employees as of December 31, 2000 and 1999,
was $3.1 million and $2.5 million, respectively. The discount rate used in
determining the postretirement benefit obligation as of December 31, 2000, was
7.75%, and the health care cost trend rate used was 8.5% trending to 5.5% in
2007 and thereafter. A one-percentage point increase in the assumed health care
cost trend rate would not have a significant impact on the postretirement
benefit obligation or the service and interest cost components of annual
expense.

Annual expense recorded by the Company for the postretirement plan was $.2
million and $.9 million for the years ended December 31, 2000 and 1999,
respectively; and includes the expected cost of benefits from newly eligible or
vested employees, interest cost, gains and losses arising from differences
between actuarial assumptions and actual experience and the amortization of the
transition obligation.

STOCK INCENTIVE PLAN
Officers and key employees of the Company participated in the stock incentive
plans of ReliaStar. ReliaStar applies Accounting Principles Board Opinion No.
25 and related interpretations in accounting

for its plans. Accordingly, no compensation expense for stock-based compensation
plans has been allocated to the Company.

NOTE 5. INCOME TAXES

The Company will prepare two federal tax returns for the year ended December 31,
2000 as a result of being acquired by ING. One will include the period January
1, 2000 through September 1, 2000, the second will be for the period September
2, 2000 through December 31, 2000.

The tax return for the period January 1 through September 1, 2000 will be
consolidated with the following entities: ReliaStar Financial Corp., Northern
Life Insurance Company, Norlic, Inc., NWNL Benefits Corporation, ReliaStar
Investment Research, Inc., Washington Square Securities, Inc., Pilgrim Capital
Corporation, Pilgrim Advisors, Inc., Pilgrim Funding, Inc., IB Holdings, Inc.,
Northeastern Corporation, Successful Money Management Seminars, Inc., PrimeVest
Financial Services, Inc., PrimeVest Insurance Agency of Alabama, Inc.,
PrimeVest Insurance Agency of New Mexico, Inc., PrimeVest Insurance Agency of
Oklahoma, Inc., PrimeVest Insurance Agency of Texas, Inc., PrimeVest Insurance
Agency of Ohio, Inc., Branson Insurance Agency, Inc., Granite Investment
Services, Inc., Washington Square Insurance Agency, Inc., (Massachusetts),
Washington Square Insurance Agency, Inc., (Texas), Washington Square Insurance
Agency, Inc., (Ohio), Washington Square Insurance Agency, Inc., (New Mexico),
ReliaStar Bancshares, Inc., ReliaStar Bank, ReliaStar Investment Services,
Inc., ReliaStar Managing Underwriters, Inc., ReliaStar Payroll Agent, Inc.,
Financial Northeastern Securities, Inc., Financial Northeastern Corporation,
FNC Insurance Services, Inc., Pilgrim Group, Inc., Pilgrim Securities, Inc.,
Pilgrim Investment, Inc., Express America T.C. Corp., EAMC Liquidation Corp.,
Pilgrim Financial, Inc., Split Rock Financial, Inc., Bancwest Investment
Services, Inc., Pilgrim Lexington Acquisition Corp., Lexington Global Asset
Managers, Inc., Bancwest Insurance Agency, Inc. and ReliaStar National Trust
Company.

The tax return for the period September 2 through December 31, 2000 will be
consolidated with its insurance subsidiaries; Northern Life Insurance Company,
Security-Connecticut Life Insurance Company, and ReliaStar Life Insurance
Company of New York.

The method by which the total consolidated federal income tax for each entity is
allocated to each of these companies is subject to a written agreements.
Allocation is based on separate return calculations such that each company in
the consolidated return pays the same tax or receives the same refunds it would
have paid or received had it consistently filed separate federal income tax
returns. Intercompany tax balances are settled within a reasonable time after
filing of the consolidated federal income tax returns with the Internal Revenue
Service.

Federal income tax regulations allowed certain special deductions for 1983 and
prior years which are accumulated in a memorandum tax account designated as
"policyholders' surplus." Generally, this policyholders' surplus account will
become subject to tax at the then current rates only if the accumulated balance
exceeds certain maximum limitations or if certain cash distributions are deemed
to be paid out of the account. At December 31, 2000, the Company had accumulated
approximately $34.4 million in its separate policyholders' surplus account.

The difference between the U.S. federal income tax rate and the Company's
effective tax rate is summarized as follows:

YEAR ENDED DECEMBER 31 2000 1999
------------------------------------------------------- ---------- ----------

Statutory Tax Rate .................................... 35.0% 35.0%
Equity in After-Tax Earnings of Subsidiaries .......... 2.2 (12.2)
Deferred Acquisition Cost Tax ......................... (1.8) 1.8
Tax Reserves .......................................... (2.1) (3.4)
Integration Related Items ............................. (12.6) --
Other ................................................. 2.3 (.1)
-------------------------------------------------------- ----- -----
EFFECTIVE TAX RATE .................................... 23.0% 21.1%
======================================================== ===== =====

Net cash paid for federal income taxes was $33.8 million and $36.3 million
during 2000 and 1999, respectively.

NOTE 6. UNPAID ACCIDENT AND HEALTH CLAIMS

The change in the liability for unpaid accident and health claims and claim
adjustment expenses is summarized as follows:

(IN MILLIONS) 2000 1999
---------------------------------------- ----------- ----------

Balance at January 1 ................... $ 675.1 $ 505.9
Less Reinsurance Recoverables .......... 288.3 179.5
----------------------------------------- --------- --------
Net Balance at January 1 ............... 386.8 326.4
Incurred Related to:
Current Year .......................... 353.6 285.5
Prior Years ........................... 132.1 18.8
----------------------------------------- --------- --------
Total Incurred ......................... 485.7 304.3
Paid Related to:
Current Year .......................... 130.0 113.0
Prior Years ........................... 15.2 130.9
----------------------------------------- --------- --------
Total Paid ............................. 145.2 243.9
Net Balance at December 31 ............. 727.3 386.8
Plus Reinsurance Recoverables .......... 374.1 288.3
----------------------------------------- --------- --------
BALANCE AT DECEMBER 31 ................. $ 1,101.4 $ 675.1
========================================= ========= ========

The liability for unpaid accident and health claims and claim adjustment
expenses is included in Aggregate Reserves for Policies and Contracts and Policy
and Contract Claims on the Statutory Basis Statements of Admitted Assets,
Liabilities, Surplus and Other Funds. Incurred losses for 2000 and 1999 include
an increase for unfavorable development of the liability established as of
December 31, 1999 and 1998, respectively. During the third quarter of 2000 the
Company's reinsurance operations recorded reserve related adjustments to reflect
unfavorable development of loss experience in lines of business that it was
terminating, as well as adjustments resulting from being acquired by ING.

NOTE 7. BORROWED MONEY

Beginning in 2000, the Company began participating in reverse repurchase
transactions. Such transactions involve the sale of corporate securities to a
major securities dealer and a simultaneous agreement to repurchase the same
security in 90-180 days. The proceeds are invested in new securities of
intermediate duration. Amounts due related to reverse repurchase transaction as
of December 31, 2000 were $73.5 million and are included in other liabilities.

NOTE 8. SURPLUS NOTE

The Company has a surplus note with a principal value of $100.0 million from
ReliaStar. The Minnesota Commerce Commissioner has advised the Company that it
will permit the funds received from the surplus note to be treated as surplus
for statutory accounting purposes. The original note, dated April 1, 1989, was
issued in connection with ReliaStar Life's demutualization and was used to
offset the surplus reduction related to the cash distribution to the mutual
policyholders in the demutualization. This original 101/4% note was replaced by
a successor surplus note (the 1994 Note) dated November 1, 1994. The 1994 Note
provides, subject to the regulatory constraints discussed below, that (i) it is
a surplus note which will mature on September 15, 2003 with principal due at
maturity, but payable without penalty, in whole or in part before maturity; (ii)
interest is at 65/8% payable semi- annually; and (iii) in the event that
ReliaStar Life is in default in the payment of any required interest or
principal, ReliaStar Life cannot pay cash dividends on its capital stock (all of
which is owned directly by ReliaStar). The 1994 Note further provides that there
may be no payment of interest or principal without the express approval of the
Minnesota Department of Commerce. During the year ended December 31, 2000 total
interest paid on the 1994 Note was $6.6 million. Accrued interest was $1.9
million as of December 31, 2000. Interest paid on the 1994 Note since November
1, 1994 totaled $38.9 million.

NOTE 9. CAPITAL AND SURPLUS

The ability of the Company to pay cash dividends to its parent is restricted by
law or subject to approval of the insurance regulatory authorities of Minnesota.
These authorities recognize only statutory accounting practices for determining
the ability of an insurer to pay dividends to its shareholders.

Under Minnesota insurance law regulating the payment of dividends by the
Company, any such payment must be an amount deemed prudent by the Company's
Board of Directors and, unless otherwise approved by the Commissioner of the
Minnesota Department of Commerce (the Commissioner), must be paid solely from
the adjusted earned surplus of the Company. Adjusted earned surplus means the
earned surplus as determined in accordance with statutory accounting practices
(unassigned funds), less 25% of the amount of such earned surplus which is
attributable to net unrealized capital gains. Further, without approval of the
Commissioner, the Company may not pay in any calendar year any dividend which,
when combined with other dividends paid within the preceding 12 months, exceeds
the greater of (i) 10% of the Company's statutory surplus at the prior year-end
or (ii) 100% of the Company's statutory net gain from operations (not including
realized capital gains) for the prior calendar year.

The Company has 25,000,000 authorized shares of common stock with a par value of
$1.25 per share, 2,000,000 of which are outstanding. The Company also has
5,000,000 authorized shares of redeemable, cumulative, nonvoting preferred
stock, none of which are outstanding.

The Company holds 80,000 shares of preferred stock in treasury at cost.

Total unassigned surplus at December 31, 2000 was $257.0 million and has no
restrictions, except as described above.

NOTE 10. REINSURANCE

The Company is a member of reinsurance associations established for the purpose
of ceding the excess of life insurance over retention limits. The Company's
retention limit is $1,000,000 per insurable life for individual coverage. For
group coverage and reinsurance assumed, the retention is $500,000 per life with
per occurrence limitations, subject to certain maximums.

Reinsurance contracts do not relieve the Company from its obligations to
policyholders. Failure of reinsurers to honor their obligations could result in
losses to the Company; consequently, allowances are established for amounts
deemed uncollectible. The amount of the allowance for uncollectible reinsurance
receivables was immaterial at December 31, 2000 and 1999. The Company evaluates
the financial condition of its reinsurers and monitors concentrations of credit
risk to minimize its exposure to significant losses from reinsurer insolvencies.

As of December 31, 2000, $40.4 billion of life insurance in force was ceded to
other companies. The Company had assumed $54.1 billion of life insurance in
force as of December 31, 2000 (including $54.0 billion of reinsurance assumed
pertaining to Federal Employees' Group Life Insurance and Servicemans' Group
Life Insurance). Also included in these amounts are $19.2 billion of reinsurance
ceded and $27.8 billion of reinsurance assumed by the Life and Health
Reinsurance Division of ReliaStar Life.

The effect of reinsurance on premiums and recoveries is as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
-------------------------------------- ------------- -------------

Direct Premiums ...................... $ 1,538.2 $ 1,333.0
Reinsurance Assumed .................. 656.3 706.5
Reinsurance Ceded .................... (333.2) (288.1)
--------------------------------------- ---------- ----------
NET PREMIUMS ......................... $ 1,861.3 $ 1,751.4
======================================= ========== ==========
REINSURANCE RECOVERIES ............... $ 323.5 $ 287.6
======================================= ========== ==========

NOTE 11. RELATED PARTY TRANSACTIONS

The Company maintains intercompany loan agreements with its affiliates. As of
December 31, 2000, the Company had a note receivable from its parent totaling
$55.0 million. This short-term note is due on demand and has an interest rate of
6%.

The Company received cash dividends totaling $12.0 million and $8.0 million from
its subsidiaries during 2000 and 1999, respectively.

The Company and its affiliates have entered into agreements whereby they provide
certain management, administrative, legal and other services to each other. The
net amounts billed resulted in the Company recording a reduction of expenses
totaling $42.8 million and $33.2 million in 2000 and 1999, respectively. The net
costs allocated to the Company under these agreements may not be indicative of
costs the Company might incur if these services were not provided by the
Company's affiliates.

NOTE 12. COMMITMENTS AND CONTINGENCIES

LITIGATION
The Company is a defendant in various lawsuits in connection with the normal
conduct of its insurance operations. In the opinion of management, the ultimate
resolution of such litigation will not result in any material adverse impact to
the financial position of the Company as of December 31, 2000.

JOINT GROUP LIFE AND ANNUITY CONTRACTS
The Company has issued certain participating group annuity and group life
insurance contracts jointly with another insurance company. The Company has
entered into an arrangement with this insurer whereby the Company will gradually
transfer these liabilities (approximately $99 million at December 31, 2000) to
the other insurer over a ten- year period which commenced in 1993. The terms of
the arrangement specify the interest rate on the liabilities and provide for a
transfer of assets and liabilities scheduled in a manner consistent with the
expected cash flows of the assets allocated to support the liabilities. A
contingent liability exists with respect to the joint obligor's portion of the
contractual liabilities attributable to contributions received prior to July 1,
1993 in the event the joint obligor is unable to meet its obligations.

FINANCIAL INSTRUMENTS
The Company is a party to financial instruments with on and off-balance-sheet
risk in the normal course of business to reduce its exposure to fluctuations in
interest rates and equity prices. These financial instruments include
commitments to extend credit, financial guarantees, equity indexed call options
and interest rate swaps. Those instruments involve, to varying degrees, elements
of credit, interest rate, equity price or liquidity risk in excess of the amount
recognized in the Statutory Basis Statements of Admitted Assets, Liabilities,
Surplus and Other Funds.

The Company's exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for commitments to extend credit is
represented by the contractual amount of those instruments. The Company uses the
same credit policies in making commitments and conditional obligations as it
does for on-balance-sheet instruments. For swaps and equity indexed call
options, the contract or notional amounts do not represent exposure to credit
loss. The Company's exposure to credit loss is limited to those financial
instruments where the Company has an unrealized gain.

Unless otherwise noted, the Company does not require collateral or other
security to support financial instruments with credit risk.

DECEMBER 31 (IN MILLIONS) 2000 1999
--------------------------------------------------------------- ---------- ---------

CONTRACT OR NOTIONAL
Amount Financial Instruments Whose Contract Amounts Represent
Credit Risk:
Commitments to Extend Credit ................................. $ 27.0 $ 9.1
Financial Guarantees ......................................... 15.0 28.5
Financial Instruments Whose Notional or Contract Amounts Exceed
the Amount of Credit Risk:
Interest Rate Swap Agreements ................................ 155.0 339.5
Equity Indexed Call Options .................................. 6.3 3.8
---------------------------------------------------------------- ------- ------

COMMITMENTS TO EXTEND CREDIT -- Commitments to extend credit are legally binding
agreements to lend to a customer. Commitments generally have fixed expiration
dates or other termination clauses and may require payment of a fee. They
generally may be terminated by the Company in the event of deterioration in the
financial condition of the borrower. Since some of the commitments are expected
to expire without being drawn upon, the total commitment amounts do not
necessarily represent future liquidity requirements. The Company evaluates each
customer's creditworthiness on a case-by-case basis.

FINANCIAL GUARANTEES -- Financial guarantees are conditional commitments issued
by the Company guaranteeing the performance of the borrower to a third party.
Those guarantees are primarily issued to support public and private commercial
mortgage borrowing arrangements. The credit risk involved is essentially the
same as that involved in issuing commercial mortgage loans.

The Company is a partner in four real estate joint ventures where the Company
has guaranteed the repayment of loans of the partnership. As of December 31,
2000, the Company had guaranteed

repayment of $15.0 million ($28.5 million at December 31, 1999) of such loans
including the portion allocable to the PFA. If any payment were made under these
guarantees, the Company would be allowed to make a claim for repayment from the
joint venture, foreclose on the assets of the joint venture, including its real
estate investment, and, in certain instances, make a claim against the joint
venture's general partner.

For certain of these partnerships, the Company has made capital contributions
from time to time to provide the partnerships with sufficient cash to meet its
obligations, including operating expenses, tenant improvements and debt service.
Capital contributions during 2000 and 1999 were insignificant. Further capital
contributions may be required in future periods for certain of the joint
ventures. The Company cannot predict the amount of such future contributions.

INTEREST RATE SWAP AGREEMENTS -- The Company enters into interest rate swap
agreements to manage interest rate exposure. The primary reason for the interest
rate swap agreements is to extend the duration of adjustable rate investments.
Interest rate swap transactions generally involve the exchange of fixed and
floating rate interest payment obligations without the exchange of the
underlying principal amounts. Changes in market interest rates impact income
from adjustable rate investments and have an opposite (and approximately
offsetting) effect on the reported income from the swap portfolio. Notional
principal amounts are often used to express the volume of these transactions but
do not represent the much smaller amounts potentially subject to credit risk.
The amount subject to credit risk is approximately equal to the unrealized gain
on the agreements which was $3.2 million at December 31, 2000.

EQUITY INDEXED CALL OPTIONS -- The Company holds certain call options indexed to
the performance of the S&P 500 Index as part of its asset/liability
management strategy for its equity indexed annuity products. The Company held
five call options with an aggregate notional amount of $6.3 million and an
estimated fair value of $1.4 million as of December 31, 2000.

FUTURES CONTRACTS -- The Company previously entered into futures contracts to
manage interest rate risk as part of the Company's asset and liability
management program for its guaranteed investment contract (GIC) portfolio.
During 1997, the Company closed out all of its futures contracts and immediately
entered into zero coupon interest rate swaps. As of December 31, 2000, the
remaining deferred gain on the closed futures contracts was approximately $14
million, which is being amortized into income over the life of the liabilities
whose cash flows they supported.

LEASES
The Company has operating leases for office space and certain computer
processing and other equipment. Rental expense for these items was $11.8 million
and $12.2 million for 2000 and 1999, respectively.

Future minimum aggregate rental commitments at December 31, 2000 for operating
leases were as follows:

(IN MILLIONS)
-----------------------------------------------------------
2001 - $ 4.3 2004 - $ .6
2002 - $ 2.1 2005 - $ .5
2003 - $ .9 2006 and thereafter - $ 1.9
-------------------- ----------------------------------

NOTE 13. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following disclosures about financial instruments, whether or not recognized
in the balance sheet, are provided for financial instruments for which it is
practicable to estimate that value. In cases where quoted market prices are not
available, fair values are based on estimates using present value or other
valuation techniques. Those techniques are significantly affected by the
assumptions used, including the discount rate and estimates of future cash
flows. In that regard, the derived fair value estimates, in many cases, could
not be realized in immediate settlement of the instrument.

Certain financial instruments and all nonfinancial instruments have been
excluded from the following disclosures, accordingly, the aggregate fair value
amounts presented do not represent the underlying value of the Company.

The fair value estimates presented herein are based on pertinent information
available to management as of December 31, 2000 and 1999. Although management is
not aware of any factors that would

significantly affect the estimated fair value amounts, such amounts have not
been comprehensively revalued for purposes of these financial statements since
that date; therefore, current estimates of fair value may differ significantly
from the amounts presented herein.

The following methods and assumptions were used by the Company in estimating its
fair value disclosures for financial instruments:

BONDS -- The estimated market value disclosures for bonds satisfy the fair value
disclosure requirements (see Note 2).

STOCKS (UNAFFILIATED) -- Fair value equals carrying value for unaffiliated
common stocks as these securities are carried at NAIC value, which approximates
quoted market value. Fair value for preferred stocks equals NAIC market value,
which approximates quoted market value.

MORTGAGE LOANS ON REAL ESTATE -- The fair values for mortgage loans on real
estate are estimated using discounted cash flow analyses, using interest rates
currently being offered in the marketplace for similar loans to borrowers with
similar credit ratings. Loans with similar characteristics are aggregated for
purposes of the calculations.

CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS -- The carrying amounts for these
assets approximate the assets' fair values.

OTHER FINANCIAL INSTRUMENTS REPORTED AS ASSETS -- The carrying amounts for these
financial instruments (primarily premiums and other accounts receivable and
accrued investment income) approximate those assets' fair values.

INVESTMENT CONTRACT LIABILITIES -- The fair value for deferred annuities was
estimated to be the amount payable on demand at the reporting date as those
investment contracts have no defined maturity and are similar to a deposit
liability. The amount payable at the reporting date was calculated as the
account balance less applicable surrender charges.

The fair values for supplementary contracts without life contingencies and
immediate annuities were estimated using discounted cash flow analyses. The
discount rate was based upon treasury rates plus a pricing margin.

The carrying amounts reported for other investment contracts, which include
participating pension contracts and retirement plan deposits, approximate those
liabilities' fair value.

The fair value for GICs was estimated using discounted cash flow analyses. The
discount rate used was based upon current industry offering rates on GICs of
similar durations.

CLAIM AND OTHER DEPOSIT FUNDS -- The carrying amounts for claim and other
deposit funds approximate the liabilities' fair value.

ENCUMBRANCES -- The fair value for debt obligations was based upon discounted
cash flow analyses. The discount rate was based upon the Company's estimated
current incremental borrowing rates.

OTHER FINANCIAL INSTRUMENTS REPORTED AS LIABILITIES -- The carrying amounts for
other financial instruments (primarily normal payables of a short-term nature)
approximate those liabilities' fair values.

FINANCIAL GUARANTEES -- The fair values for financial guarantees were estimated
using discounted cash flow analyses based upon the expected future net amounts
to be expended. The estimated net amounts to be expended were determined based
on projected cash flows and a valuation of the underlying collateral.

INTEREST RATE SWAPS -- The fair value for interest rate swaps was estimated
using discounted cash flow analyses. The discount rate was based upon rates
currently being offered for similar interest rate swaps available from similar
counterparties.

The carrying amounts and estimated fair values of the Company's financial
instruments as of December 31, 2000 and 1999, are as follows:

2000 1999
---------------------------- ----------------------------
Carrying Fair Carrying Fair
DECEMBER 31 (IN MILLIONS) Amount Value Amount Value
-------------------------------------------------- ------------- ------------- ------------- -------------

FINANCIAL INSTRUMENTS RECORDED AS ASSETS:
Bonds ........................................... $ 4,463.9 $ 4,459.1 $ 3,947.9 $ 3,868.6
Stocks (Unaffiliated) ........................... 28.1 31.5 28.7 28.9
Mortgage Loans on Real Estate:
Commercial .................................... 574.3 580.8 626.0 613.8
Residential and Other ......................... .2 .2 165.2 164.6
Policy Loans .................................... 260.4 260.4 250.3 250.3
Cash and Short-Term Investments ................. 67.3 67.3 106.1 106.1
Other Financial Instruments Recorded
as Assets ...................................... 424.7 424.7 351.6 351.6
FINANCIAL INSTRUMENTS RECORDED AS LIABILITIES:
Investment Contracts
Deferred Annuities ............................ (1,321.2) (1,308.9) (1,425.4) (1,416.5)
GICs .......................................... (89.7) (106.7) (79.1) (96.8)
Supplementary Contracts and Immediate Annuities (217.5) (216.1) (210.1) (216.6)
Other Investment Contracts .................... (140.5) (140.2) (147.8) (147.8)
Claim and Other Deposit Funds ................... (56.6) (44.2) (59.5) (59.5)
Encumbrances .................................... -- -- (9.0) (9.0)
Other Financial Instruments Recorded
as Liabilities ................................. (301.1) (301.1) (230.7) (230.7)
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS:
Financial Guarantees ............................ -- (.8) -- (2.1)
Interest Rate Swaps ............................. -- 3.2 -- (.4)
-------------------------------------------------- ---------- ---------- ---------- ----------

Fair value estimates are made at a specific point in time, based on relevant
market information and information about the financial instrument. These
estimates do not reflect any premium or discount that could result from offering
for sale at one time the Company's holdings of a particular financial
instrument. Because no market exists for a significant portion of the Company's
financial instruments, fair value estimates are based on judgments regarding
future expected loss experience, current economic conditions, risk
characteristics of various financial instruments, and other factors. These
estimates are subjective in nature and involve uncertainties and matters of
significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial
instruments without attempting to estimate the value of anticipated future
business and the value of assets and liabilities that are not considered
financial instruments. In addition, the tax ramifications related to the
realization of the unrealized gains and losses can have a significant effect on
fair value estimates and have not been considered in the estimates.

APPENDIX A

THE FIXED ACCOUNT

The Fixed Account consists of all of our assets other than those in our
separate accounts. We have complete ownership and control of all of the assets
of the Fixed Account.

Because of exemptions and exclusions contained in the Securities Act of
1933 and the Investment Company Act of 1940, the Fixed Account has not been
registered under these acts. Neither the Fixed Account nor any interest in it is
subject to the provisions of these acts and as a result the SEC has not reviewed
the disclosures in this Prospectus relating to the Fixed Account. However,
disclosures relating to the Fixed Account are subject to generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in prospectuses.

We guarantee both principal and interest on amounts credited to the Fixed
Account. We credit interest at an effective annual rate of at least 4%,
independent of the investment experience of the Fixed Account. From time to
time, we may guarantee interest at a rate higher than 4%.

ANY INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN EXCESS
OF 4% PER YEAR WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK
THAT INTEREST CREDITED TO THE FIXED ACCOUNT MAY NOT EXCEED THE MINIMUM GUARANTEE
OF 4% FOR A GIVEN YEAR.

We do not use a specific formula for determining excess interest credits.
However, we consider the following:

* General economic trends,

* Rates of return currently available on our investments,

* Rates of return anticipated in our investments, regulatory and tax
factors, and

* Competitive factors.

We are not aware of any statutory limitations to the maximum amount of
interest we may credit and our Board of Directors has not set any limitations.

The Fixed Accumulation Value of the Policy is the sum of the Net Premiums
credited to the Fixed Account. It is increased by transfers and Loan Amounts
from the Variable Account, and interest credits. It is decreased by Monthly
Deductions and partial withdrawals taken from the Fixed Account and transfers to
the Variable Account. The Fixed Accumulation Value will be calculated at least
monthly on the monthly anniversary date.

You may transfer all or part of your Fixed Accumulation Value to the
Sub-Accounts of the Variable Account, subject to the following transfer
limitations:

* The request to transfer must be postmarked no more than 30 days before
the Policy Anniversary and no later than 30 days after the Policy
Anniversary. Only one transfer is allowed during this period.

* The Fixed Accumulation Value after the transfer must be at least equal
to the Loan Amount.

* No more than 50% of the Fixed Accumulation Value (minus any Loan
Amount) may be transferred unless the balance, after the transfer,
would be less than $1,000. If the balance would be less than $1,000,
the full Fixed Accumulation Value (minus any Loan Amount) may be
transferred.

* You must transfer at least:

-- $500, or

-- the total Fixed Accumulation Value (minus any Loan Amount) if
less than $500.

We make the Monthly Deduction from your Fixed Accumulation Value in
proportion to the total Accumulation Value of the Policy.

The Surrender Charge described in the Prospectus applies to the total
Accumulation Value, which includes the Fixed Accumulation Value. If the Owner
surrenders the Policy for its Cash Surrender Value, the Fixed Accumulation Value
will be reduced by any applicable Surrender Charge, any Loan Amount and unpaid
Monthly Deductions applicable to the Fixed Account.

A-1

APPENDIX B

CALCULATION OF ACCUMULATION VALUE

The Accumulation Value of the Policy is equal to the sum of the Variable
Accumulation Value plus the Fixed Accumulation Value.

VARIABLE ACCUMULATION VALUE

The Variable Accumulation Value is the total of your values in each
Sub-Account. The value for each Sub-Account is equal to:

1 multiplied by 2, where:

1
Is your current number of Accumulation Units (described below).

2
Is the current Unit Value (described below).

The Variable Accumulation Value will vary from Valuation Date to Valuation
Date (described below) reflecting changes in 1 and 2 above.

ACCUMULATION UNITS. When transactions are made which affect the Variable
Accumulation Value, dollar amounts are converted to Accumulation Units. The
number of Accumulation Units for a transaction is found by dividing the dollar
amount of the transaction by the current Unit Value.

The number of Accumulation Units for a Sub-Account increases when:

* Net Premiums are credited to that Sub-Account; or

* Transfers from the Fixed Account or other Sub-Accounts are credited to
that Sub-Account.

The number of Accumulation Units for a Sub-Account decreases when:

* You take out a Policy loan from that Sub-Account;

* You take a partial withdrawal from that Sub-Account;

* We take a portion of the Monthly Deduction from that Sub-Account; or

* Transfers are made from that Sub-Account to the Fixed Account or other
Sub-Accounts.

UNIT VALUE. The Unit Value for a Sub-Account on any Valuation Date is equal
to the previous Unit Value times the Net Investment Factor for that Sub-Account
(described below) for the Valuation Period (described below) ending on that
Valuation Date. The Unit Value was initially set at $10 when the Sub-Account
first purchased Fund shares.

NET INVESTMENT FACTOR. The Net Investment Factor is a number that reflects
charges to the Policy and the investment performance during a Valuation Period
of the Fund in which a Sub-Account is invested. If the Net Investment Factor is
greater than one, the Unit Value is increased. If the Net Investment Factor is
less than one, the Unit Value is decreased. The Net Investment Factor for a
Sub-Account is determined by dividing 1 by 2.

(1 \d 2), where:

1
Is the result of:

* The net asset value per share of the Fund shares in which the
Sub-Account invests, determined at the end of the current Valuation
Period;

* Plus the per share amount of any dividend or capital gain
distributions made on the Fund shares in which the Sub-Account invests
during the current Valuation Period;

* Plus or minus a per share charge or credit for any taxes reserved
which we determine has resulted from the investment operations of the
Sub-Account and to be applicable to the Policy.

B-1

2
Is the result of:

* The net asset value per share of the Fund shares held in the
Sub-Account, determined at the end of the last prior Valuation Period;

* Plus or minus a per share charge or credit for any taxes reserved for
during the last prior Valuation Period which we determine resulted
from the investment operations of the Sub-Account and was applicable
to the Policy.

VALUATION DATE; VALUATION PERIOD. A Valuation Date is each day the New York
Stock Exchange is open for trading. A Valuation Period is the period between two
successive Valuation Dates, commencing at the close of business of a Valuation
Date and ending at the close of business on the next Valuation Date.

FIXED ACCUMULATION VALUE
The Fixed Accumulation Value on the Policy Date is your Net Premium
credited to the Fixed Account on that date minus the Monthly Deduction
applicable to the Fixed Accumulation Value for the first Policy Month.

After the Policy Date, the Fixed Accumulation Value is calculated as:

1 + 2 + 3 + 4 - 5 - 6, where:

1
Is the Fixed Accumulation Value on the preceding Monthly Anniversary, plus
interest from the Monthly Anniversary to the date of the calculation.

2
Is the total of your Net Premiums credited to the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date premiums are credited
to the date of the calculation.

3
Is the total of your transfers from the Variable Account to the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

4
Is the total of your Loan Amounts transferred from the Variable Account since
the preceding Monthly Anniversary.

5
Is the total of your transfers to the Variable Account from the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

6
Is the total of your partial withdrawals from the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date of withdrawal to the
date of the calculation.

If the date of the calculation is a Monthly Anniversary, we also reduce the
Fixed Accumulation Value by the applicable Monthly Deduction for the Policy
Month following the Monthly Anniversary.

The minimum interest rate applied in the calculation of the Fixed
Accumulation Value is an effective annual rate of 4%. Interest in excess of the
minimum rate may be applied in the calculation of your Fixed Accumulation Value
in a manner which our Board of Directors determines.

B-2

APPENDIX C

MAXIMUM CONTINGENT DEFERRED SALES CHARGES
PER $1,000 OF FACE AMOUNT

CHARGE PER $1,000 OF FACE CHARGE PER $1,000 OF FACE
AMOUNT (INITIAL FACE AMOUNT OR AMOUNT (INITIAL FACE AMOUNT OR
INSURED'S AGE AT POLICY AMOUNT OF REQUESTED INCREASE) INSURED'S AGE AT POLICY AMOUNT OF REQUESTED INCREASE)
DATE OR EFFECTIVE DATE OF ------------------------------ DATE OR EFFECTIVE DATE OF ------------------------------
INCREASE, AS APPROPRIATE MALE FEMALE INCREASE, AS APPROPRIATE MALE FEMALE
-------------------------- ---------- ---------- ------------------------- ----------- -------------

0 $ 1.00 $ 1.00 41 $ 19.60 $ 16.10
1 1.10 1.00 42 20.40 17.20
2 1.20 1.00 43 21.30 18.00
3 1.30 1.00 44 22.10 18.90
4 1.40 1.00 45 23.00 19.50
5 1.50 1.00 46 23.90 20.60
6 1.60 1.00 47 24.90 21.70
7 1.80 1.00 48 25.90 22.50
8 2.00 1.00 49 27.00 23.30
9 2.20 1.20 50 28.20 24.20
10 2.50 1.40 51 29.40 25.20
11 2.80 1.60 52 30.70 26.20
12 3.00 1.80 53 32.10 27.20
13 3.20 2.00 54 33.50 28.00
14 3.50 2.20 55 35.00 29.50
15 3.80 2.40 56 36.70 30.70
16 4.00 2.60 57 38.40 32.00
17 4.20 2.80 58 40.20 33.40
18 4.50 3.00 59 42.20 34.80
19 4.80 3.20 60 44.30 36.40
20 5.00 3.50 61 45.60 38.10
21 5.30 3.90 62 45.40 40.00
22 5.90 4.20 63 45.30 41.90
23 6.30 4.50 64 44.90 43.90
24 6.90 5.00 65 44.60 45.50
25 7.50 5.50 66 44.30 45.00
26 7.80 6.10 67 43.90 44.60
27 8.40 6.70 68 43.60 44.10
28 8.80 7.30 69 43.30 43.70
29 9.40 7.70 70 43.10 43.30
30 10.00 8.00 71 42.80 42.90
31 10.80 8.60 72 42.60 42.50
32 11.50 9.20 73 42.40 42.10
33 12.30 9.80 74 42.20 41.70
34 13.10 10.40 75 41.90 41.20
35 14.00 11.00 76 41.60 40.80
36 14.90 11.60 77 41.30 40.40
37 15.70 12.20 78 41.00 39.90
38 16.80 12.80 79 40.70 39.50
39 17.90 13.90 80 40.50 39.10
40 19.00 15.00

C-1

APPENDIX D

SURRENDER CHARGE GUIDELINE PER $1,000 OF FACE AMOUNT

The following table provides the Surrender Charge Guideline factors that
are used in determining the Sales Charge Refund during the first two Policy
Years or the first two years following a requested increase in Face Amount (see
section entitled "Sales Charge Refund" in Prospectus). The Surrender Charge
Guideline factors are based upon the provisions of Rule 6e-3(T) adopted by the
Securities and Exchange Commission.

0 $ 5.97 $ 4.46 41 $ 37.23 $ 27.91
1 6.14 4.58 42 39.06 29.27
2 6.39 4.77 43 40.97 30.69
3 6.67 4.97 44 42.98 32.19
4 6.95 5.18 45 45.09 33.76
5 7.26 5.40 46 47.30 35.40
6 7.58 5.64 47 49.62 37.14
7 7.92 5.89 48 52.07 38.96
8 8.28 6.15 49 54.64 40.89
9 8.66 6.42 50 57.34 42.91
10 9.06 6.71 51 60.18 45.04
11 9.48 7.02 52 63.16 47.28
12 9.92 7.34 53 66.29 49.64
13 10.38 7.67 54 69.58 52.13
14 10.85 8.03 55 73.03 54.76
15 11.34 8.39 56 76.66 57.53
16 11.85 8.77 57 80.47 60.47
17 12.37 9.17 58 84.48 63.57
18 12.91 9.59 59 88.70 66.87
19 13.47 10.03 60 93.15 70.38
20 14.07 10.49 61 97.82 74.10
21 14.69 10.98 62 102.75 78.05
22 15.34 11.48 63 107.93 82.23
23 16.03 12.02 64 113.38 86.67
24 16.76 12.58 65 119.11 91.37
25 17.53 13.17 66 125.14 96.36
26 18.35 13.79 67 131.50 101.66
27 19.21 14.44 68 138.21 107.32
28 20.11 15.12 69 145.30 113.37
29 21.07 15.84 70 152.79 119.85
30 22.08 16.60 71 160.71 126.78
31 23.14 17.39 72 169.07 134.21
32 24.26 18.22 73 177.88 142.15
33 25.43 19.10 74 187.17 150.62
34 26.66 20.03 75 196.97 159.67
35 27.96 21.00 76 201.77 167.86
36 29.32 22.02 77 212.73 178.12
37 30.76 23.09 78 224.41 189.17
38 32.26 24.21 79 236.91 201.12
39 33.84 25.39 80 250.35 214.09
40 35.49 26.62

D-1