prospectus - farmers insurance group · a prospectus for each of the portfolios available through...

Includes prospectuses for:

American Funds Insurance Series®

Deutsche Variable Series I

Deutsche Variable Series II

Dreyfus Variable Investment Fund

Dreyfus Socially Responsible Growth Fund, Inc., The

Fidelity® Variable Insurance Products

Franklin Templeton Variable Insurance Products Trust

Janus Aspen Series

PIMCO Variable Insurance Trust

Principal Variable Contracts Funds, Inc.

ProspectusMay 1, 2016 This prospectus does not constitute an offer to sell or a solicitation of an offer to buy securities in any state, to any person, to whom it is not lawful to make such an offer in such state. Farmers EssentialLife Variable Universal Life is issued by Farmers New World Life Insurance Company.

This cover is not part of the prospectus.

LIFE INSURANCE

Farmers EssentialLife® Variable Universal Life

FARMERS ESSENTIAL LIFE® VARIABLE UNIVERSAL LIFE PROSPECTUS AND

UNDERLYING PORTFOLIO PROSPECTUSES

TABLE OF CONTENTS

Page

Farmers Essential Life® Variable Universal Life Prospectus ..............................................................American Funds Insurance Series® (Service Class 2 Shares)

American Funds Insurance Series Asset Allocation Fund ....................................................................American Funds Insurance Series Capital Income Builder® Fund ........................................................American Funds Insurance Series Growth Fund .................................................................................American Funds Insurance Series Global Growth Fund.......................................................................American Funds Insurance Series Global Growth and Income Fund......................................................American Funds Insurance Series Growth—Income Fund ...................................................................American Funds Insurance Series International Fund..........................................................................

Deutsche Variable Series I (Class A Shares)Deutsche Bond VIP.........................................................................................................................Deutsche Global Small Cap VIP .......................................................................................................Deutsche CROCI International VIP® ................................................................................................

Deutsche Variable Series II (Class A Shares)Deutsche Large Cap Value VIP ........................................................................................................Deutsche Government & Agency Securities VIP ................................................................................Deutsche High Income VIP..............................................................................................................Deutsche Government Money Market VIP (formerly Deutsche Money Market VIP) .............................

Dreyfus Variable Investment Fund (Service Class Shares)Opportunistic Small Cap Portfolio ....................................................................................................

The Dreyfus Socially Responsible Growth Fund, Inc. (Service Class Shares) ......................................Fidelity® Variable Insurance Products (“VIP”) Funds (Service Class Shares)

Fidelity VIP Growth Portfolio® ........................................................................................................Fidelity VIP Index 500 Portfolio® .....................................................................................................Fidelity VIP Mid Cap Portfolio® ......................................................................................................

Fidelity® VIP Freedom Funds (Service Class 2 Shares)Fidelity VIP Freedom 2005 Portfolio® ..............................................................................................Fidelity VIP Freedom 2010 Portfolio® ..............................................................................................Fidelity VIP Freedom 2015 Portfolio® ..............................................................................................Fidelity VIP Freedom 2020 Portfolio® ..............................................................................................Fidelity VIP Freedom 2025 Portfolio® ..............................................................................................Fidelity VIP Freedom 2030 Portfolio® ..............................................................................................Fidelity® VIP Freedom Income Portfolio...........................................................................................

Fidelity® VIP FundsManager Portfolios (Service Class 2 Shares)Fidelity VIP FundsManager 20% Portfolio® ......................................................................................Fidelity VIP FundsManager 50% Portfolio® ......................................................................................Fidelity VIP FundsManager 70% Portfolio® ......................................................................................Fidelity VIP FundsManager 85% Portfolio® ......................................................................................

Franklin Templeton Variable Insurance Products (“VIP”) Trust (Class 2 Shares)Franklin Small-Mid Cap Growth VIP Fund .......................................................................................Franklin Small Cap Value VIP Fund .................................................................................................

Janus Aspen SeriesJanus Aspen Balanced Portfolio (Service Shares) ...............................................................................Janus Aspen Forty Portfolio (Institutional Shares) ..............................................................................

PIMCO Variable Insurance Trust (“VIT”) (Administrative Class Shares)PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged) .................................................................PIMCO VIT Low Duration Portfolio.................................................................................................

Principal Variable Contracts Funds, Inc. (“PVC”) (Class 2 Shares) Strategic Asset Management(“SAM”) PortfoliosPVC SAM Balanced Portfolio ..........................................................................................................PVC SAM Conservative Balanced Portfolio ......................................................................................PVC SAM Conservative Growth Portfolio.........................................................................................PVC SAM Flexible Income Portfolio ................................................................................................PVC SAM Strategic Growth Portfolio ...............................................................................................

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69 74 79

87 83

91 95

99 104 108

112 116 120 124

127 130

134 139 144

149 155 161 167 173 179 185

191 197 203 209

215 221

227 232

236 240

244 249 254 259 264

ProspectusMay 1, 2016

Farmers EssentialLife® Variable Universal LifeFlexible Premium Variable Universal Life Insurance Policy

Issued byFarmers New World Life Insurance Company

ThroughFarmers Variable Life Separate Account A

Home Office Service Center3003 – 77th Avenue, S.E. P. O. Box 724208Mercer Island, Washington 98040 Atlanta, Georgia 31139Phone: (206) 232-8400 Phone: (877) 376-8008 (toll free) 8:00 a.m. to 6:00 p.m. Eastern Time

This prospectus describes Farmers EssentialLife®

Variable Universal Life, an individual flexiblepremium variable life insurance policy (the “Policy”),issued by Farmers New World Life InsuranceCompany. The Policy provides life insurance, with alife insurance benefit (called the “Death BenefitAmount Payable”) that we will pay if the Insured dieswhile the Policy is in force. The amount of lifeinsurance may increase or decrease depending on thenumber of years the Policy is in force and theinvestment experience of the Subaccounts of theFarmers Variable Life Separate Account A (the“Variable Account”) in which you invest.

Investment Risk — Your Contract Value will varyaccording to the investment performance of thePortfolio(s) in which you invest and the Policy chargesdeducted. You bear the investment risk on amountsyou allocate to the Subaccounts. You may be requiredto pay additional Premiums to keep the Policy inforce if investment performance is too low. ThePolicy is not suitable as a short-term savings vehiclebecause the Surrender and insurance charges may beconsiderable.

Loans and Partial Surrenders — You may borrowagainst or withdraw money from this Policy, withinlimits. Loans and partial Surrenders reduce the Policy’sDeath Benefit Amount Payable and its Cash SurrenderValue, and increase the risk that your Policy will Lapsewithout value unless you pay additional Premiums. Ifyour Policy Lapses while loans are outstanding, youwill have no Cash Surrender Value and you will likelyhave to pay a significant amount in taxes.

You may choose one of two death benefit options. Thedeath benefit will be at least the Face Amount shownon your Policy’s specifications page, adjusted for anyincreases or decreases in Face Amount, and reduced byany Outstanding Loan Amount and unpaid MonthlyDeductions.

Tax Risk — Tax laws are unclear in a variety of areas.You should review the “Federal Tax Considerations”section of this prospectus carefully, especially if youare purchasing this Policy with the intention oftaking Policy loans or partial Surrenders at anytime in the future, or if you intend to keep thePolicy in force after the Insured reaches AttainedAge 100. You should consult a tax adviser to learnmore about the tax risks of this Policy.

This prospectus provides basic information that youshould know before investing. You should keep thisprospectus for future reference. You should considerwhether this Policy is suitable for you in light of yourlife insurance needs.

Replacing your existing life insurance with thisPolicy may not be to your advantage. In addition, itmay not be to your advantage to finance thepurchase of or to maintain this Policy through aloan or through Surrenders or partial Surrendersfrom another policy.

An investment in this Policy is not a bank deposit, andthe Policy is not insured or guaranteed by the FederalDeposit Insurance Corporation or any othergovernment agency.

Investing in this Policy involves risk, includingpossible loss of Premiums. Please read the “PolicyRisks” section of this prospectus. It describes someof the risks associated with investing in the Policy.

This Policy has 42 funding choices – one Fixed Account(paying at least a guaranteed minimum fixed rate ofinterest) and 41 Subaccounts. The Subaccounts invest inthe following 41 Portfolios:

❑ American Funds Insurance Series® – Service Class 2Shares

American Funds Insurance Series Asset AllocationFund

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American Funds Insurance Series Capital IncomeBuilder® Fund

American Funds Insurance Series Growth FundAmerican Funds Insurance Series Global Growth

FundAmerican Funds Insurance Series Global

Growth and Income FundAmerican Funds Insurance Series Growth—Income

FundAmerican Funds Insurance Series International

Fund

❑ Deutsche Variable Series I – Class A SharesDeutsche Bond VIPDeutsche Global Small Cap VIPDeutsche CROCI® International VIP

❑ Deutsche Variable Series II – Class A SharesDeutsche Large Cap Value VIPDeutsche Government & Agency Securities VIPDeutsche High Income VIPDeutsche Government Money Market VIP

(formerly Deutsche Money Market VIP)1

❑ Dreyfus Variable Investment Fund – Service ClassShares

Opportunistic Small Cap Portfolio

❑ The Dreyfus Socially Responsible Growth Fund,Inc. – Service Class Shares

❑ Fidelity® Variable Insurance Products (“VIP”)Funds – Service Class Shares

Fidelity® VIP Growth PortfolioFidelity® VIP Index 500 PortfolioFidelity® VIP Mid Cap Portfolio

❑ Fidelity® VIP Freedom Funds – Service Class 2Shares

Fidelity® VIP Freedom 2005 PortfolioFidelity® VIP Freedom 2010 PortfolioFidelity® VIP Freedom 2015 PortfolioFidelity® VIP Freedom 2020 PortfolioFidelity® VIP Freedom 2025 PortfolioFidelity® VIP Freedom 2030 PortfolioFidelity® VIP Freedom Income Portfolio

❑ Fidelity® VIP FundsManager Portfolios – ServiceClass 2 Shares

Fidelity® VIP FundsManager 20% PortfolioFidelity® VIP FundsManager 50% PortfolioFidelity® VIP FundsManager 70% PortfolioFidelity® VIP FundsManager 85% Portfolio

❑ Franklin Templeton Variable Insurance Products(“VIP”) Trust – Class 2 Shares

Franklin Small-Mid Cap Growth VIP FundFranklin Small Cap Value VIP Fund

❑ Janus Aspen SeriesJanus Aspen Balanced Portfolio (Service Shares)Janus Aspen Forty Portfolio (Institutional Shares)

❑ PIMCO Variable Insurance Trust (“VIT”) –Administrative Class Shares

PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged)

PIMCO VIT Low Duration Bond Portfolio

❑ Principal Variable Contracts Funds, Inc.(“PVC”) Strategic Asset Management (“SAM”)Portfolios – Class 2 Shares

PVC SAM Balanced PortfolioPVC SAM Conservative Balanced PortfolioPVC SAM Conservative Growth PortfolioPVC SAM Flexible Income PortfolioPVC SAM Strategic Growth Portfolio

1 Effective May 2, 2016, Deutsche Money Market VIP willchange its name to Deutsche Government Money MarketVIP.

A prospectus for each of the Portfolios available through this Policy must accompany this prospectus. Please readthese documents before investing and save them for future reference.

The Securities and Exchange Commission has not approved or disapproved this Policy or determinedthat this prospectus is accurate or complete.

Anyone who tells you otherwise is committing a federal crime.

Not FDIC Insured May Lose Value No Bank Guarantee

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Table of Contents

Policy Benefits/Risks Summary ................................. 4Policy Benefits .......................................................... 4

Your Policy in General ............................................ 4Premium Flexibility ................................................ 4Death Benefit ......................................................... 5Full and Partial Surrenders ....................................... 5Transfers ................................................................ 5Loans..................................................................... 6

Policy Risks .............................................................. 6Risk of Poor Investment Performance ....................... 6Risks of Market Timing and Disruptive Trading......... 6Risk of Lapse.......................................................... 6Tax Risks ............................................................... 7Limits on Partial Surrenders ..................................... 7Loan Risks ............................................................. 7Increase in Current Fees and Expenses ...................... 8Effects of Surrender Charges.................................... 8

Portfolio Risks .......................................................... 8Fee Table .................................................................. 9Redemption Fees....................................................... 13Distribution Costs ..................................................... 13Personalized Illustrations .......................................... 13Farmers New World Life Insurance Company and

the Fixed Account.................................................. 13Farmers New World Life Insurance Company............ 13The Fixed Account .................................................. 13

The Variable Account and the Portfolios ................... 14The Variable Account.............................................. 14The Portfolios ......................................................... 14Investment Objectives of the Portfolios ..................... 15Selection of the Portfolios ........................................ 18Availability of the Portfolios .................................... 19Your Right to Vote Portfolio Shares.......................... 19

The Policy ................................................................. 20Purchasing a Policy ................................................. 20Tax-Free ‘Section 1035’ Exchanges .......................... 20When Insurance Coverage Takes Effect .................... 20Cancelling a Policy (Right-to-Examine Period) .......... 21Other Policies ......................................................... 22Ownership Rights ................................................... 22Modifying the Policy............................................... 22Policy Termination.................................................. 23

Premiums ................................................................. 23Premium Flexibility ................................................ 23Minimum Premiums................................................ 24Allocating Premiums ............................................... 24

Your Contract Values ............................................... 25Subaccount Value ................................................... 25Subaccount Unit Value ............................................ 26Fixed Account Value ............................................... 26Loan Account Value................................................ 26

Charges and Deductions............................................ 27Premium Deductions ............................................... 27Monthly Deduction ................................................. 27Mortality and Expense Risk Charge .......................... 30Surrender Charge .................................................... 30Transfer Charge ...................................................... 31Loan Charges ......................................................... 31Portfolio Management Fees and Expenses ................. 31Other Charges......................................................... 31

Death Benefit ............................................................ 31Death Benefit Amount Payable................................. 31Death Benefit Options ............................................. 32Changing Death Benefit Options .............................. 33Effects of Partial Surrenders on the Death Benefit ...... 33Changing the Face Amount ...................................... 34Payment Options..................................................... 35

Supplemental Benefits (Riders) ................................. 35Full and Partial Surrenders....................................... 35

Full Surrender......................................................... 35Partial Surrenders.................................................... 36When We Will Make Payments ................................ 37

Transfers .................................................................. 37Third Party Transfers............................................... 38Telephone Transfers ................................................ 38Policy and Procedures Regarding Disruptive Trading

and Market Timing .............................................. 39Automatic Asset Rebalancing Program ..................... 41Dollar Cost Averaging Program................................ 41

Loans........................................................................ 42Effects of Policy Loans............................................ 42

Policy Lapse and Reinstatement ................................ 43Lapse ..................................................................... 43Reinstatement ......................................................... 44

Federal Tax Considerations ...................................... 44Tax Status of the Policy ........................................... 44Tax Treatment of Policy Benefits ............................. 45

Additional Information ............................................. 49Distribution of the Policies....................................... 49Legal Proceedings ................................................... 50Financial Statements ............................................... 50

Table of Contents for the SAI .................................... 51Glossary ................................................................... 52Appendix A—Guaranteed Maximum Cost of

Insurance Rates ................................................... A-1Appendix B—Monthly Underwriting and Sales

Expense Charges ................................................. B-1Appendix C—Table of Surrender Charge Factors ... C-1

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Policy Benefits/Risks Summary

This summary provides only a brief overview of the more important benefits and risks of the Policy. Youmay obtain more detailed information about the Policy later in this prospectus and in the Statement of AdditionalInformation (“SAI”). For your convenience, we have provided a Glossary at the end of the prospectus that definescertain words and phrases used in the prospectus.

Policy Benefits

Your Policy in General

• Tax-Deferred Accumulation. This Policy is an individual flexible premium variable life insurance policy. ThePolicy offers lifetime insurance protection, with a death benefit payable if the Insured dies while the Policy is ineffect. The Policy gives you the potential for long-term life insurance coverage with the opportunity for tax-deferred cash value accumulation. The Policy’s Contract Value will increase or decrease depending on theinvestment performance of the Subaccounts, the Premiums you pay, the fees and charges we deduct, the interestwe credit to any money you place in the Fixed Account, and the effects of any Policy transactions (such astransfers, loans and partial Surrenders) on your Contract Value.

• Long-Term Savings Vehicle. The Policy is designed to be long-term in nature in order to provide significant lifeinsurance benefits for you. However, purchasing this Policy involves certain risks. You should purchase thePolicy only if you have the financial ability to keep it in force for a substantial period of time. You shouldconsider the Policy in conjunction with other insurance you own. The Policy is not suitable as a short-termsavings vehicle. There may be adverse consequences if you decide to Surrender your Policy early; youmay be required to pay a Surrender Charge that applies during the first nine years of the Policy and thefirst nine years after each increase in Face Amount.

• Personalized Illustrations. You may request personalized illustrations from your agent in connection with thepurchase of this Policy that reflect your own particular circumstances. These hypothetical illustrations, whichare provided to you without charge, may help you to understand the long-term effects of different levels ofinvestment performance, the possibility of Lapse, and the charges and deductions under the Policy. They willalso help you to compare this Policy to other life insurance policies. The personalized illustrations are basedon hypothetical rates of return and are not a representation or guarantee of investment returns or cashvalue.

• Fixed Account. You may place money in the Fixed Account where we guarantee that it will earn interest at anannual rate of at least 2.5%. We may declare higher rates of interest, but are not obligated to do so. Money youplace in the Fixed Account will be reduced by applicable Policy fees and charges. The Fixed Account is part ofour General Account.

• Separate Account. You may allocate premium(s) and Contract Value to one or more Subaccounts of theVariable Account. Each Subaccount invests exclusively in one of the Portfolios listed on the cover of thisprospectus. Investment returns from amounts allocated to the Subaccounts will vary each day with theinvestment experience of these Subaccounts. Investment returns may be negative and will be reduced byapplicable Policy fees and charges. You bear the risk that the Contract Value of your Policy will decline asa result of the unfavorable investment performance of the Subaccounts you have chosen.

Premium Flexibility

• Flexible Premiums. You can select a premium plan. You can vary the frequency and amount of Premiumssubject to certain limitations discussed in the Premium Flexibility section of this Prospectus. You may be able toskip premium payments under certain circumstances. However, you greatly increase your risk of Lapse if youdo not regularly pay Premiums at least as large as the current minimum premium. After you pay an InitialPremium, you can pay subsequent Premiums (minimum $25) at any time. You may also choose to havePremiums deducted directly from your bank account.

• Minimum Premiums. Paying the minimum Premiums for the Policy may reduce your risk of Lapse, butwill not necessarily keep your Policy in force. It is likely that additional Premiums will be necessary to keepthe Policy in force until maturity.

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• Right-to-Examine Period. You may cancel a Policy during the “Right-to-Examine Period” by returning it witha signed request for cancellation to our Home Office. If you decide to cancel the Policy during the Right-to-Examine Period, we will refund an amount equal to the greater of the sum of all Premiums paid for the Policy orthe Contract Value at the end of the Valuation Date on which we receive the returned Policy at our HomeOffice.

Death Benefit

• As long as the Policy remains in force, we will pay a death benefit payment to the Beneficiary upon the death ofthe Insured.

• You may choose one of two death benefit options under the Policy. If you do not choose a death benefitoption, then the selection will automatically default to Option B.

• Option A is a variable death benefit through Attained Age 99 that is the greater of:O the Face Amount of your Policy plus the Contract Value on the date of the Insured’s death; orO the Contract Value on the date of the Insured’s death multiplied by the applicable death benefit

percentage.

• Option B is a level death benefit through Attained Age 99 that is the greater of:O the Face Amount of your Policy on the date of the Insured’s death; orO the Contract Value on the date of the Insured’s death multiplied by the applicable death benefit

percentage.

• For Attained Ages 100 through 120, the death benefit equals the Contract Value.

• Any death benefit will be increased by any additional insurance benefits that are payable under the terms of anyriders you added to the Policy, and will be reduced by the amount of any Outstanding Loan Amount (and anyinterest you owe) and any due and unpaid Monthly Deductions.

• Change in Death Benefit Option and Face Amount. After the first Policy year, you may change the deathbenefit option or increase or decrease the Face Amount once each Policy year if you send us a signed request fora Policy change and, in certain instances, the Insured provides evidence of insurability satisfactory to us (but youmay not change both the death benefit option and Face Amount during the same Policy year, unless donesimultaneously).

Full and Partial Surrenders

• Full Surrender. At any time while the Policy is in force, you may submit a written request to fully Surrenderyour Policy and receive the Cash Surrender Value (that is, the Contract Value, minus the applicable SurrenderCharge, minus any Monthly Deductions due and payable, and minus any Outstanding Loan Amount and anyinterest you owe). A Surrender may have tax consequences.

• Partial Surrenders. After the first Policy year, you may submit a written request to withdraw part of the CashSurrender Value, subject to the following rules. Partial Surrenders may have tax consequences.

▪ You may make only one partial Surrender each calendar quarter.▪ You must request at least $500.▪ You may not request more than 75% of the Cash Surrender Value.▪ For each partial Surrender, we deduct a processing fee equal to the lesser of $25 or 2% of the partial

Surrender from the Subaccounts and the Fixed Account on a pro-rata basis, or on a different basis if you sorequest.

▪ The Subaccounts and Fixed Account will be reduced by the amount of the partial Surrender on a pro-ratabasis, or on a different basis if you so request.

▪ If you select a level death benefit (Option B), the Face Amount will be reduced by the amount of the partialSurrender (but not by the processing fee).

Transfers

• Each Policy year, you may make an unlimited number of transfers from and among the Subaccounts and onetransfer from the Fixed Account.

• Transfers from Subaccounts must be a minimum of $250, or the total value in the Subaccount if less.

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• Transfers from the Fixed Account may not be for more than 25% of the value in the Fixed Account. If thebalance in the Fixed Account after the transfer is less than $250, then the entire balance will be transferred.

• We charge $25 for the 13th and each additional transfer during a Policy year.

Loans

• You may take a loan against the Policy for amounts up to the Cash Surrender Value, as calculated at the end ofthe Business Day on which we receive your signed request at the Service Center, minus the loan interest youwould have to pay by the next Policy anniversary, and minus three Monthly Deductions, or the number ofMonthly Deductions due before the next Policy anniversary, if fewer.

• The loan amount requested must be at least $250, unless otherwise required by state law.

• Amounts in the loan account earn interest at the guaranteed minimum rate of 2.5% per year.

• For Policy years 1 through 15, we will charge you loan interest at a rate of 4.5%, compounded annually. ForPolicy years 16 and beyond, we will charge you loan interest at a rate of 2.5%, compounded annually. Theserates may change at our discretion, but are guaranteed not to exceed 6.5%.

• You may repay all or part of your outstanding loans at any time. Loan repayments must be at least $25, or theamount of the loan if less, and must be clearly marked as “loan repayment” or they will be credited asPremiums.

• We deduct any unpaid loans, plus any interest you owe, from the Contract Value to determine the CashSurrender Value (and from the Death Benefit on the Insured’s death).

• A loan may have adverse tax consequences.

Policy Risks

Risk of Poor Investment Performance

If you invest your Contract Value in one or more Subaccounts, you will be subject to the risk thatinvestment performance will be unfavorable and that your Contract Value will decrease. You could lose everythingyou invest and your Policy could Lapse without value, unless you pay additional Premiums. In addition, we deductPolicy fees and charges from your Contract Value, which can significantly reduce your Contract Value. Duringtimes of declining investment performance, the deduction for monthly charges based on the Risk Insurance Amountcould accelerate and further reduce your Contract Value.

If you allocate Premiums and Contract Value to the Fixed Account, we will credit your Contract Value inthe Fixed Account with a declared rate of interest. You assume the risk that the rate may decrease, although it willnever be lower than a guaranteed minimum annual effective rate of 2.5%.

Risks of Market Timing and Disruptive Trading

This Policy and the underlying Portfolios are not designed for market timers. However, there is noassurance that we will be able to identify and prevent all market timing and other forms of disruptive trading in thePolicy and the underlying Portfolios. For a discussion of our policies and procedures on market timing and of thepotential costs and risks to you that can result if market timing or disruptive trading occurs in the underlyingPortfolios, see the “Policy and Procedures Regarding Disruptive Trading and Market Timing” section.

Risk of Lapse

Paying the minimum premium is one way to reduce the risk that your Policy will Lapse without value. Yougreatly increase the risk of your Policy lapsing if you do not regularly pay Premiums at least as large as the currentminimum premium. However, paying the minimum Premiums for the Policy will not necessarily keep yourPolicy in force.

You also increase the risk that your Policy will Lapse if you take out a loan, take partial Surrenders orincrease the Face Amount of your Policy. These activities, any increase in the current charges, or any unfavorableinvestment returns will significantly increase the risk of your Policy lapsing. It is likely that additional Premiumswill be necessary to keep your Policy in force until maturity.

For a full discussion on the conditions that will cause the Policy to enter the grace period and the GracePremium Test, please see the “Policy Lapse and Reinstatement – Lapse” section of this prospectus.

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Whenever your Policy enters the 61-day grace period, you must make a payment before the grace periodends that is large enough to keep your Policy in force. Market performance alone will not be deemed to constitute asufficient payment. If you do not make a large enough payment before the end of the grace period, your Policy willterminate without value, insurance coverage will no longer be in force, and you will receive no benefits. A PolicyLapse may have adverse tax consequences.

Tax Risks

A Policy must satisfy certain requirements in the Tax Code in order to qualify as a life insurance contract forfederal income tax purposes and to receive the tax treatment normally accorded life insurance contracts underfederal tax law. There is limited guidance as to how these requirements are to be applied. Nevertheless, we believethat a Policy issued on a standard Premium Class basis should satisfy the applicable Tax Code requirements. Thereis, however, some uncertainty about the application of the Tax Code requirements to a Policy issued on a specialPremium Class basis, particularly if the full amount of Premiums permitted under the Policy is paid.

Depending on the total amount of Premiums you pay during the first seven years of a Policy, the Policy maybe treated as a modified endowment contract (“MEC”) under federal tax laws. In addition, any Section 1035Exchange coming from a policy that is a MEC makes the new Policy a MEC. If a Policy is treated as a MEC, thenpartial Surrenders and loans under a Policy will be taxable as ordinary income, to the extent there are earnings in thePolicy. In addition, a 10% penalty tax may be imposed on the taxable portion of partial Surrenders and loans takenbefore you reach age 59 1/2. There may be tax consequences to distributions from Policies that are not MECs.However, the 10% penalty tax will not apply to distributions from Policies that are not MECs. Loans from orsecured by a Policy that is not a MEC are generally not treated as distributions. However, the tax consequencesassociated with Policy loans from this Policy are less clear because the difference between the interest rate wecharge on Policy loans and the rate we credit to the loan account results in a net cost to you that could be viewed asnegligible and, as a result, it is possible that such a loan could be treated as, in substance, a taxable distribution. Youshould consult a qualified tax adviser about such loans.

The federal tax laws are unclear in a variety of areas. You should review the “Federal Tax Considerations”section of this prospectus carefully, especially if you are purchasing this Policy with the intention of takingPolicy loans or partial Surrenders at any time in the future, and/or you intend to keep the Policy in force afterthe Insured reaches Attained Age 100. You should consult a qualified tax adviser for assistance in all tax mattersinvolving your Policy.

Limits on Partial Surrenders

The Policy permits you to take only one partial Surrender in any calendar quarter, and only after the firstPolicy year has been completed. The amount you may withdraw is limited to 75% of the Cash Surrender Value. Youmay not withdraw less than $500. If 75% of the Cash Surrender Value is less than $500, then a partial Surrender isnot available.

A partial Surrender reduces the Cash Surrender Value and Contract Value and will increase the risk that thePolicy will Lapse. A partial Surrender also may have tax consequences.

In addition, a partial Surrender will reduce the death benefit. If you select a level death benefit (Option B), apartial Surrender will permanently reduce the Face Amount by the amount of the partial Surrender (not including theprocessing fee). If a variable death benefit (Option A) is in effect when you make a partial Surrender, the FaceAmount will remain the same but the death benefit will be reduced by the amount that the Contract Value isreduced.

Loan Risks

A Policy loan, whether or not repaid, will affect Contract Value over time because we subtract the amountof the loan from the Subaccounts and Fixed Account and place this amount into the loan account as collateral. Wecredit a fixed interest rate of 2.5% per year to the loan account. For Policy years 1 through 15, we will charge youloan interest at a rate of 4.5%, compounded annually. For Policy years 16 and beyond, we will charge you loaninterest at a rate of 2.5%, compounded annually. These rates may change at our discretion, but are guaranteed not toexceed 6.5%. As a result, the loan collateral does not participate in the investment results of the Subaccounts, nordoes it receive as high an interest rate as amounts allocated to the Fixed Account. The longer the loan is outstanding,the greater the effect on Contract Value is likely to be. Depending on the investment results of the Subaccounts andthe interest rates charged against the loan and credited to the Fixed Account, the effect could be favorable orunfavorable.

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A Policy loan affects the death benefit because a loan reduces the Death Benefit Amount Payable by theamount of the outstanding loan plus any interest you owe on Policy loans.

A Policy loan will increase the risk that the Policy will Lapse. There is a risk that if the loan amount,together with poor investment performance and payment of monthly insurance charges, reduces your CashSurrender Value (or Contract Value, in certain circumstances) to an amount that is not large enough to pay theMonthly Deduction when due, then the Policy will enter the 61-day grace period, and possibly Lapse. Adverse taxconsequences could result. In addition, the tax consequences of loans are uncertain. You should consult a qualifiedtax adviser about such loans.

Increase in Current Fees and Expenses

Certain fees and expenses are currently assessed at less than their maximum levels. We may increase thesecurrent charges in the future up to the guaranteed maximum levels. If fees and expenses are increased, you may needto increase the amount and/or frequency of Premiums you pay to keep the Policy in force.

Effects of Surrender Charges

There are significant Surrender Charges under this Policy during the first nine Policy years and during thenine years after any elected increase in Face Amount. It is likely that you will receive no Cash Surrender Value ifyou Surrender your Policy in the early Policy years. You should purchase this Policy only if you have the financialability to keep it in force at the initial Face Amount for a substantial period of time.

Even if you do not ask to Surrender your Policy, Surrender Charges may play a role in determining whetheryour Policy will Lapse. The Cash Surrender Value is one measure we use to determine whether your Policy willenter a grace period and possibly Lapse.

Portfolio Risks

A comprehensive discussion of the risks of each Portfolio may be found in each Portfolio’s prospectus.Please refer to the prospectuses for the Portfolios for more information.

There is no assurance that any of the Portfolios will achieve its stated investment objective.

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Fee Table

The following tables describe the fees and charges that you will pay when buying and owning the Policy.1 Ifthe amount of a charge depends on the personal characteristics of the Insured, then the fee table lists the minimumand maximum charges we assess under the Policy, and the fees and charges of a representative Insured with thecharacteristics listed below. These charges may not be typical of the charges you will pay since the Insured under thePolicy may not be of the same age, gender, and risk class as the representative Insured. Other fees or charges are notdependent on the Insured’s personal characteristics but rather are based on either (a) decisions or choices made bythe Policy Owner, or (b) the Policy itself where the fees or charges apply to all Policy Owners.

The first table describes the fees and charges that you will pay when you pay Premiums, fully Surrender thePolicy, partially Surrender the Policy, transfer cash value among the Subaccounts and the Fixed Account, increasethe Face Amount of the Policy, request an additional annual report, or make a claim under the Accelerated BenefitRider for Terminal Illness.

Transaction Fees

Charge When Charge is Deducted

Amount Deducted2

GuaranteedMaximum Charge Current Charge

Premium Expense Charge(As a percentage of Premiums paid)

Upon payment of eachpremium

7% in all years 7% in years 1-10; 3%in years 11+

Partial Surrender Processing Fee(As a percentage of the amount withdrawn,not to exceed $25.00)

Upon partial Surrender 2.0% 2.0%

Surrender Charge3

(Per $1,000 of Face Amount on Issue Dateand on the Face Amount of any increase.)

Upon full Surrender of thePolicy during first 9 Policy

years, or within 9 yearsfollowing any increase in

Face Amount

/ Minimum Charge in Policy Year 14 $3.00 $3.00

/ Maximum Charge in Policy Year 15 $44.40 $44.40

/ Charge for a Policy issued to a maleat age 35, during Policy Year 1

$10.06 $10.06

1 The actual charges assessed under the Policy may be somewhat higher or lower than the charges shown in the fee table because fee tablecharges have been rounded off in accordance with SEC regulations.

2 We may use rates lower than the guaranteed maximum charge. Current charges are the fees and rates currently in effect. Any change incurrent charges will be prospective only and will not exceed the guaranteed maximum charge.

3 The Surrender Charge is equal to (a) + (b), where (a) is the Surrender Charge for the Face Amount on the Issue Date; and (b) is theSurrender Charge for each increase in Face Amount. To calculate the Surrender Charge for the Face Amount on the Issue Date: (i) locatethe appropriate Surrender Charge factor from a table in Appendix C of this prospectus, or the “Surrender Charge Factors” table in yourPolicy, for the Insured’s Issue Age and the number of complete years that have elapsed since your Policy was issued, then (ii) multiply thisfactor by the Face Amount on the Issue Date and divide the result by 1,000. To calculate the Surrender Charge for increases in FaceAmount that are issued with the same Premium Class as that shown on your Policy specifications page: (i) locate the appropriate SurrenderCharge factor from a table in Appendix C of this prospectus, or the “Surrender Charge Factors” table in your Policy, for the Insured’sAttained Age at the time of increase and the number of complete years that have elapsed since the increase, then (ii) multiply this factor bythe amount of the increase in Face Amount and divide the result by 1,000. For increases in Face Amount that are issued with a PremiumClass different from that shown on your Policy specifications page, the same process is followed, but a different table from the “SurrenderCharge Factors” table in your Policy may apply; see Appendix C of this prospectus for an exhaustive list of Surrender Charge factor tables.The applicable Surrender Charge factor varies by Issue Age, gender, nicotine use, underwriting class, and number of full Policy years sincethe Issue Date. The Surrender Charges shown in the table may not be typical of the charges you will pay. You can obtain more detailedinformation about the Surrender Charges that apply to your Policy by contacting your agent and by referring to the Appendix C—Table ofFactors in this prospectus.

4 This minimum charge is based on a female Insured age 0 at issue.5 This maximum charge is based on a male Insured for a Policy that is issued at age 68.

PAGE 9

Transaction Fees


Amount Deducted2


Transfer Charge Upon transfer First 12 transfers in aPolicy year are free,

$25 for eachsubsequent transfer

First 12 transfers in aPolicy year are free,

$25 for eachsubsequent transfer

Additional Annual Report Fee Upon request for additionalannual report

$25 $0

Optional Riders with Transaction Fees:

Accelerated Benefit Rider for TerminalIllness6

When a benefit is paidunder this rider

$250 plus theactuarial discount

$150 plus the actuarialdiscount

The table below describes the fees and charges that you will pay periodically during the time you own thePolicy, not including Portfolio fees and expenses. Portfolio fees and expenses are additional daily charges that youwill pay and they are shown in the table following this one.

Periodic Charges Other Than Portfolio Operating Expenses


Amount Deducted2


Monthly Administration Charge Monthly on the Issue Dateand on each monthly

due date

$12.00 $12.00, up to AttainedAge 100

Cost of Insurance7 for the Base Policy(No Special Premium Class Charge orExtra Ratings8)

Monthly on the Issue Dateand on each monthly

due date11

Per $1,000 of RiskInsurance Amount12

Per $1,000 of RiskInsurance Amount

/ Minimum Charge9 $0.02 $0.01

/ Maximum Charge10 $37.12 $37.12

/ Charge for a Policy insuring a male,Issue Age 35, in the standard non-nicotine Premium Class, in Policyyear 5 with a Face Amount less than$150,000

$0.12 $0.06

6 The administrative charge for this rider varies by state. It is guaranteed to equal $150 in Texas and $0 in Mississippi and Nebraska, andwill not exceed $250 in the other states. In addition to the administrative charge, we reduce the single sum benefit at the time of paymentby an actuarial discount to compensate us for lost income due to the early payment of the death benefit. The actuarial discount may besignificant, depending on the death benefit amount being accelerated and the Moody’s Corporate Bond Yield Averages Rate. The amountof the administrative fee and the actuarial discount will be communicated to the Policy Owner, who may accept or refuse the offer toaccelerate the benefit.

7 Cost of insurance charges are based on the Insured’s Issue Age, gender, Premium Class, the Risk Insurance Amount, the number of monthssince the Issue Date, and the amount of the Face Amount. The cost of insurance rate you pay increases annually with the age of theInsured. We currently charge higher cost of insurance rates for Policies with a Face Amount of less than $150,000. If you reduce your FaceAmount below $150,000 at any time, then the higher rates will apply in most cases. The cost of insurance charges shown in the table maynot be representative of the charges you will pay. Your Policy will indicate the guaranteed maximum cost of insurance charge applicable toyour Policy. You can obtain more information about your cost of insurance charges by contacting your agent.

8 Table rating factor charges and extra ratings are additional charges assessed on policies insuring individuals considered to have highermortality risks based on our underwriting standards and guidelines.

9 The minimum charge is based on a female Insured, Issue Age 3, in the juvenile underwriting class.10 This maximum charge is based on a male Insured, at Attained Age 99, in the nicotine underwriting class, who does not have a table rating

factor charge. This maximum charge will be higher for a Policy with a table rating factor charge or a flat extra charge.11 The cost of insurance charge is assessed until the Insured attains age 100.12 The Risk Insurance Amount, on the Monthly Due Date, equals the adjusted death benefit, minus the adjusted Contract Value on that date.

The adjusted death benefit and the adjusted Contract Value are determined by using the Contract Value on the respective Monthly DueDate and deducting all applicable charges and fees, except the cost of insurance charge.

PAGE 10



Amount Deducted2


Table Rating Factor Charge13

(Factor multiplied by Cost of InsuranceCharge)

Monthly on the Issue Dateand on each monthly due

date

/ Minimum Charge 1 1

/ Maximum Charge 5 5

/ Charge for an Insured in a preferredor standard Premium Class (not in aSpecial Premium Class)

1 1

Flat Extra Charge14

(Per $1,000 of Risk Insurance Amount)Monthly on the Issue Dateand on each monthly due

date

/ Minimum Charge $0 $0

/ Maximum Charge $1.25 $1.25

/ Charge for an Insured in a standardPremium Class

$0 $0

Monthly Underwriting and Sales ExpenseCharge15,16

(Per $1,000 of original Face Amount andany Face Amount increase)

Monthly on Issue Date andon each Monthly Due Dateduring first 5 Policy yearsor within 5 years after anyincrease in Face Amount



/ Charge for a Policy issued to a maleat age 35, in a non-nicotine standardclass, during the first year

$0.26 $0.261

13 If the Insured is in a special Premium Class, the cost of insurance charge will be the base rate times the table rating factor charge shown onthe Policy specifications page. The table rating factor charge shown in the table may not be representative of the charges you will pay. Ifthe table rating factor charge applies to your Policy, the factor will be shown on the Policy specifications page. You can obtain moreinformation about this charge by contacting your agent.

14 A flat extra charge is assessed on Policies insuring individuals considered to have higher mortality risks according to our underwritingstandards and guidelines. Flat extra charges usually apply to Insureds in hazardous occupations, to Insureds who participate in hazardousavocations, such as aviation, and to Insureds with certain physical impairments. The flat extra charge can range from $0 to $1.25 monthlyper $1,000 of Risk Insurance Amount, but the amount of the charge is determined and fixed for any particular Policy unless additionalunderwriting is performed to reduce or remove the flat extra charge. Any flat extra charge will be shown on the Policy specifications page.If no flat extra charge duration is shown in the Policy specifications page, the flat extra charge applies in all years until the Insured’sAttained Age of 100. The flat extra charge shown in the table may not be representative of the charges you will pay. You can obtain moreinformation about this charge by contacting your agent.

15 The monthly underwriting and sales expense charge is a flat charge that is assessed during the first 5 Policy years after issue or after anincrease in Face Amount. The charge is set based on the Insured’s age at issue or when the Face Amount is increased; the rate of the chargewill increase with the Insured’s age. The monthly underwriting and sales expense charge shown in the table may not be representative ofthe charges you will pay. You can obtain more information about this charge by contacting your agent.

16 We may provide a discount on the base monthly underwriting and sales expense charge if a “qualifying” policy is in force, applied for, orpending when we receive your Policy application. Qualifying policies currently include those where the Policy Owner, the payor of thePolicy or the primary Insured on the Policy is an active driver on a Farmers auto policy, or is one of the named Insureds under a Farmershomeowner’s or renter’s policy, or owns another life insurance or commercial policy issued by us. We refer to this discount as the MonthlyUnderwriting and Sales Expense Charge discount, or “MUSEC discount.” We may also provide the MUSEC discount prospectively if,after issue, you purchase a qualifying policy, subject to state restrictions. Contact us or your agent for details concerning the rate ofMUSEC discount that may be applied to your Policy. The size of the qualifying policy does not affect the amount of the discount.

17 This minimum charge is based on a female Insured that is 0 at issue, assuming no subsequent increases in Face Amount.18 This maximum charge is based on a male Insured at age 80.

PAGE 11



Amount Deducted2


Mortality and Expense Risk Charge(As an annualized percentage of daily netassets in each Subaccount)

Daily 0.60% 0.30%

Loan Interest Spread19 At the end of each Policyyear

4.0% 2.0%

Optional Riders with Periodic Charges:20

Accidental Death Benefit Rider20

(Per $1,000 of rider Face Amount)Monthly on the Issue Dateand on each monthly due

date



/ Charge for an Insured at AttainedAge 35

$0.08 $0.06

Monthly Disability Benefit Rider20,23

(Per $100 of monthly benefit)Monthly on Issue Date andon each Monthly Due Date

/ Minimum Charge24 $6 $4

/ Maximum Charge25 $62 $45

/ Charge at the Insured’s AttainedAge 35

$7 $4.5

Waiver of Deduction Rider20,23

(As a percentage of all other monthlycharges)

Monthly on the Issue Dateand on each monthly due

date

/ Minimum Charge24 6% 4%

/ Maximum Charge25 60% 45%

/ Charge at the Insured’s AttainedAge 35

7% 4.5%

Children’s Term Insurance Rider(Per $1,000 of rider amount)

Monthly on Issue Date andon each Monthly Due Date

$0.87 $0.78

19 The loan interest spread is the difference between the amount of interest we charge you for a loan (rate not to exceed 6.5%, compoundedannually, guaranteed maximum) and the amount of interest we credit to the amount in your loan account (2.5% annually, guaranteedminimum). The maximum loan interest spread is 4% annually of the loan amount. The current loan interest spread is 2.0% annually of theloan amount in Policy years 1 through 15, and 0% in Policy years 16 and over.

20 Charges for the accidental death benefit rider, the monthly disability benefit rider (when available), and waiver of deduction rider vary withthe age of the Insured. The rider charges shown in the table may not be representative of the charges you will pay. The rider will indicatethe maximum guaranteed rider charges applicable to your Policy. You can obtain more information about these rider charges by contactingyour agent.

21 The minimum charge is based on a female Insured at Attained Age 11.22 The maximum charge is based on a male Insured at Attained Age 69 whose occupation and/or avocations at issue lead us to believe the

Insured’s risk of accidental death is roughly triple that of a representative Insured.23 The monthly disability benefit rider charge and the waiver of deduction rider charge are dependent on the Insured’s Attained Age and

generally increase as the Insured ages. The rider charges shown in the table may not be representative of the charges you will pay. Therider will indicate the maximum guaranteed rider charges applicable to your Policy. Effective August 7, 2015, the monthly disabilitybenefit rider is no longer available and cannot be added to a Policy; monthly disability benefit riders that are in force as of August 7, 2015are not affected. You can obtain more information about these rider charges by contacting your agent.

24 The minimum charge is for an Insured at Attained Age 21.25 The maximum charge is for an Insured at Attained Age 56 or older whose medical condition, occupation or avocations at issue lead us to

believe the Insured’s risk of disability is roughly triple that of a representative Insured.

PAGE 12

The following table shows the range of Portfolio fees and expenses for the fiscal year ended December 31,2015. Expenses of the Portfolios may be higher or lower in the future. You can obtain more detailed informationconcerning each Portfolio’s fees and expenses in the prospectus for each Portfolio.

Range of Annual Operating Expenses for the Portfolios During 20151

Lowest HighestTotal Annual Portfolio Operating Expenses (total of all expenses that arededucted from Portfolio assets, including management fees, 12b-1 fees, andother expenses)

0.20% 1.29%

1 The Portfolio expenses used to prepare this table were provided to Farmers by the fund(s). Farmers has not independently verifiedsuch information. The expenses shown are those incurred for the year ended December 31, 2015. Current or future expenses may begreater or less than those shown.

Redemption Fees

A Portfolio may assess a redemption fee of up to 2% on Subaccount assets that are redeemed out of thePortfolio in connection with a partial Surrender or transfer. Each Portfolio determines the amount of the redemptionfee and when the fee is imposed. The redemption fee will reduce your Contract Value. For more information, see thePortfolio prospectus.

Distribution Costs

For information concerning the compensation paid for the sale of the Policies, see the “AdditionalInformation – Distribution of the Policies” section.

Personalized Illustrations

Your Policy can Lapse before maturity, depending on the Premiums you pay and the investment results ofthe Subaccounts in which you invest your Contract Value. Your agent can provide you, free of charge, withpersonalized illustrations that can show how many years your Policy would stay in force under various premium andhypothetical investment scenarios. You should request personalized illustrations from your agent to help youdecide what level of premium payments to pay in your particular circumstances.

Farmers New World Life Insurance Company and the Fixed Account

Farmers New World Life Insurance Company

Farmers New World Life Insurance Company (“Farmers”) is located at 3003—77th Avenue S.E., MercerIsland, Washington 98040. We are obligated to pay all amounts promised under the Policy.

The Fixed Account

You may allocate some or all of your premium payments and transfer some or all of your Contract Value tothe Fixed Account. The Fixed Account offers a guarantee of principal accumulating at a specified rate of interest thatwill be reduced by deductions for fees and expenses. The Fixed Account is part of Farmers’ General Account. Weuse our general assets to support our insurance and annuity obligations other than those funded by our separateinvestment accounts. Subject to applicable law, Farmers has sole discretion over investment of the Fixed Account’sassets. Farmers bears the full investment risk for all amounts contributed to the Fixed Account. Farmers guaranteesthat the amounts allocated to the Fixed Account will be credited interest daily at an annual net effective interest rateof at least 2.5%. We will determine any interest rate credited in excess of the guaranteed rate at our sole discretion.All assets in the General Account are subject to our general liabilities from business operations.

Money you place in the Fixed Account will earn interest that is compounded annually and accrues daily atthe current interest rate in effect at the time of your allocation. We intend to credit the Fixed Account with interest atcurrent rates in excess of the minimum guaranteed rate of 2.5%, but we are not obligated to do so. We have nospecific formula for determining current interest rates.

The Fixed Account Value will not share in the investment performance of our General Account. Becausewe, in our sole discretion, anticipate changing the current interest rate from time to time, different allocations youmake to the Fixed Account will be credited with different current interest rates. You assume the risk that interestcredited to amounts in the Fixed Account may not exceed the minimum 2.5% guaranteed rate.

PAGE 13

We reserve the right to change the method of crediting interest from time to time, provided that suchchanges do not reduce the guaranteed rate of interest below 2.5% per year or shorten the period for which theinterest rate applies to less than one year (except for the year in which such amount is received or transferred).

We currently allocate amounts from the Fixed Account for partial Surrenders, transfers to the Subaccounts,or charges for the Monthly Deduction on a last in, first out basis (“LIFO”) for the purpose of crediting interest.

The Fixed Account is not registered with the Securities and Exchange Commission (“SEC”). Thedisclosures included in this prospectus about the Fixed Account are for your information and have not beenreviewed by the staff of the SEC. However, Fixed Account disclosure is subject to general applicable provisions ofthe federal securities laws relating to the accuracy and completeness of statements made in this prospectus.

The Variable Account and the Portfolios

The Variable Account

Farmers established the Variable Account as a separate investment account under the law of the State ofWashington on April 6, 1999. Farmers owns the assets in the Variable Account. Farmers may use the VariableAccount to support other variable life insurance policies Farmers issues. The Variable Account is registered with theSEC as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act”) and qualifies as a“separate account” within the meaning of the federal securities laws.

The Variable Account is divided into Subaccounts, each of which invests in shares of one Portfolio of afund.

Income, gains, and losses credited to, or charged against, a Subaccount of the Variable Account reflect theSubaccount’s own investment experience and not the investment experience of our other assets. The VariableAccount’s assets may not be used to pay any of our liabilities other than those arising from the Policies and fromother variable life insurance policies supported by the Variable Account. If the Variable Account’s assets exceed therequired reserves and other liabilities, we may transfer to our General Account the excess related to seed capital, aswell as earned fees and charges to which we are entitled under the Policy.

Changes to the Variable Account. We reserve the right in our sole discretion, and subject to applicable law,to add, close, remove, or combine one or more Subaccounts, combine the Variable Account with one or more otherseparate accounts, or operate the Variable Account as a different kind of investment company. Subject to obtainingany approvals or consents required by law, the assets of one or more Subaccounts may also be transferred to anyother Subaccount if, in our sole discretion, conditions warrant. In addition, we reserve the right to modify theprovisions of the Policy to reflect changes to the Subaccounts and the Variable Account and to comply withapplicable law. Some of these future changes may be the result of changes in applicable laws or interpretation ofthe law.

The Portfolios

Each Subaccount of the Variable Account invests exclusively in shares of a designated Portfolio of a fund.Shares of each Portfolio are purchased and redeemed at net asset value, without a sales charge. Any dividends anddistributions from a Portfolio are reinvested at net asset value in shares of that Portfolio. Each fund available underthe Policy is registered with the SEC under the 1940 Act as an open-end, management investment company. Suchregistration does not involve supervision of the management or investment practices or policies of the Funds by theSEC.

The assets of each Portfolio are separate from the assets of any other Portfolio, and each Portfolio hasseparate investment objectives and policies. As a result, each Portfolio operates as a separate investment Portfolioand the income or losses of one Portfolio has no effect on the investment performance of any other Portfolio.

Each of the Portfolios is managed by an investment adviser registered with the SEC under the InvestmentAdvisers Act of 1940, as amended. Each investment adviser is responsible for the selection of the investments of thePortfolio. These investments must be consistent with the investment objective, policies and restrictions of thatPortfolio.

Some of the Portfolios have been established by investment advisers that manage retail mutual Funds solddirectly to the public having similar names and investment objectives to the Portfolios available under the Policy.While some of the Portfolios may be similar to, and may in fact be modeled after, publicly traded mutual Funds, youshould understand that the Portfolios are not otherwise directly related to any publicly traded mutual fund.

PAGE 14

Consequently, the investment performance of publicly traded mutual Funds and any similarly named Portfolio maydiffer substantially from the Portfolios available through this Policy.

An investment in a Subaccount, or in any Portfolio, including the Deutsche Government Money Market VIP(formerly Deutsche Money Market VIP), is not Insured or guaranteed by the U.S. Government and there can be noassurance that the Deutsche Government Money Market VIP (formerly Deutsche Money Market VIP) will be ableto maintain a stable net asset value per share. During extended periods of low interest rates, and due in part toinsurance charges, the yields on the money market Subaccount may become extremely low and possibly negative.

Investment Objectives of the Portfolios

The following table summarizes each Portfolio’s investment objective(s) and policies. There is noassurance that any of the Portfolios will achieve its stated objective(s). You can find more detailedinformation about the Portfolios, including a description of the risks, conditions of investing, and fees andexpenses of each Portfolio in the prospectuses for the Portfolios that are attached to this prospectus. Youshould read the prospectuses for the Portfolios carefully.

Portfolio Investment Objective and Investment AdvisorAmerican Funds Asset AllocationFund (Class 2)

To provide you with high total return (including income and capitalgains) consistent with preservation of capital over the long term. CapitalResearch and Management Company is the investment advisor for thefund.

American Funds Capital IncomeBuilder (Class 2)

Seeks (1) to provide you with a level of current income that exceeds theaverage yield on U.S. stocks generally and (2) to provide you with agrowing stream of income over the years. The fund’s secondary objectiveis to provide you with growth of capital. Capital Research andManagement Company is the investment advisor for the fund.

American Funds Growth Fund(Class 2)

To provide you with growth of capita. Capital Research and ManagementCompany is the investment advisor for the fund.

American Funds Global GrowthFund (Class 2)

To provide you with long-term growth of capital. Capital Research andManagement Company is the investment advisor for the fund.

American Funds Global Growthand Income Fund (Class 2)

To provide you with long-term growth of capital while providing currentincome. Capital Research and Management Company is the investmentadvisor for the fund.

American Funds Growth-IncomeFund (Class 2)

To achieve long-term growth of capital and income. Capital Researchand Management Company is the investment advisor for the fund.

American Funds InternationalFund (Class 2)

To provide you with long-term growth of capital. Capital Research andManagement Company is the investment advisor for the fund.

Deutsche Bond VIP (Class AShares)

The fund seeks to maximize total return consistent with preservation ofcapital and prudent investment management. Deutsche InvestmentManagement Americas Inc. is the investment advisor for the fund.

Deutsche Large Cap Value VIP(Class A Shares)

The fund seeks to achieve a high rate of total return. Deutsche InvestmentManagement Americas Inc. is the investment advisor for the fund.

Deutsche Global Small Cap VIP(Class A Shares)

The fund seeks above-average capital appreciation over the long term.Deutsche Investment Management Americas Inc. is the investmentadvisor for the fund.

Deutsche Government & AgencySecurities VIP (Class A Shares)

The fund seeks high current income consistent with preservation ofcapital. Deutsche Investment Management Americas Inc. is theinvestment advisor for the fund.

Deutsche High Income VIP (ClassA Shares)

The fund seeks to provide a high level of current income. DeutscheInvestment Management Americas Inc. is the investment advisor for thefund.

Deutsche CROCI® InternationalVIP (Class A Shares)

The fund seeks long-term growth of capital. Deutsche InvestmentManagement Americas Inc. is the investment advisor for the fund.

PAGE 15

Portfolio Investment Objective and Investment AdvisorDeutsche Government MoneyMarket VIP (formerly DeutscheMoney Market VIP) (Class AShares)1

The fund seeks maximum current income to the extent consistent withstability of principal. Deutsche Investment Management Americas Inc. isthe investment advisor for the fund.

Dreyfus VIF Opportunistic SmallCap Portfolio (Service ClassShares)

Seeks capital growth. Investment adviser is The Dreyfus Corporation.

Fidelity® VIP Growth Portfolio(Service Class Shares)

The Fund seeks to achieve capital appreciation. Fidelity Management &Research Company (FMR) is the Fund’s manager. Fidelity InvestmentsMoney Management, Inc. (FIMM), FMR Co., Inc. (FMRC) and otherinvestment advisers serve as sub-advisers for the Fund.

Fidelity® VIP Index 500 Portfolio(Service Class Shares)

The Fund seeks investment results that correspond to the total return ofcommon stocks publicly traded in the United States, as represented bythe S&P 500® Index. Fidelity Management & Research Company (FMR)is the Fund’s manager. Geode Capital Management, LLC (Geode®) andFMR Co., Inc. (FMRC) serve as the sub-advisers for the Fund.

Fidelity® VIP Mid Cap Portfolio(Service Class Shares)

The Fund seeks long-term growth of capital. Fidelity Management andResearch Company (FMR) is the Fund’s manager. FMR Co., Inc.(FMRC) and other investment advisers serve as sub-advisers for theFund.

Fidelity® VIP Freedom 2005Portfolio (Service Class 2 Shares)

The Fund seeks high total return with a secondary objective of principalpreservation as the fund approaches its target date and beyond. FidelityManagement & Research Company (FMR) (the Adviser) is the fund’smanager. FMR Co., Inc. (FMRC) and other investment advisers serve assub-advisers for the fund.











Fidelity® VIP Freedom IncomePortfolio (Service Class 2 Shares)

The Fund seeks high total return with a secondary objective of principalpreservation. Fidelity Management & Research Company (FMR) (theAdviser) is the fund’s manager. FMR Co., Inc. (FMRC) and otherinvestment advisers serve as sub-advisers for the fund.

PAGE 16

Portfolio Investment Objective and Investment AdvisorFidelity® VIP FundsManager 20%Portfolio (Service Class 2 Shares)

The Fund seeks high current income and, as a secondary objective,capital appreciation. Fidelity Management & Research Company (FMR)(the Adviser) is the fund’s manager. FMR Co., Inc. (FMRC) and otherinvestment advisers serve as sub-advisers for the fund.

Fidelity® VIP FundsManager 50%Portfolio (Service Class 2 Shares)

The Fund seeks high total return. Fidelity Management & ResearchCompany (FMR) (the Adviser) is the fund’s manager. FMR Co., Inc.(FMRC) and other investment advisers serve as sub-advisers for the fund.





Franklin Small Cap Value VIPFund (Class 2 Shares)

Seeks long-term total return. Under normal market conditions, the Fundinvests at least 80% of its net assets in investments of small capitalizationcompanies. The investment advisor is Franklin Advisory Services, LLC.

Franklin Small-Mid Cap GrowthVIP Fund (Class 2 Shares)

Seeks long-term capital growth. Under normal market conditions, theFund invests at least 80% of its net assets in investments of smallcapitalization and mid-capitalization companies. The investment advisoris Franklin Advisers, Inc.

Janus Aspen Balanced Portfolio(Service Shares)

Seeks long-term capital growth, consistent with preservation of capitaland balanced by current income. Investment adviser is Janus CapitalManagement LLC.

Janus Aspen Forty Portfolio(Institutional Shares)

Seeks long-term growth of capital. Investment adviser is Janus CapitalManagement LLC.

PIMCO VIT Foreign BondPortfolio (U.S. Dollar-Hedged)(Administrative Class Shares)

Seeks maximum total return, consistent with preservation of capital andprudent investment management. Investment adviser is PacificInvestment Management Company LLC.

PIMCO VIT Low DurationPortfolio (Administrative ClassShares)

Seeks maximum total return, consistent with preservation of capital andprudent investment management. Investment adviser is PacificInvestment Management Company LLC.

PVC SAM Balanced Portfolio(Class 2 Shares)

Seeks to provide as high a level of total return (consisting of reinvestedincome and capital appreciation) as is consistent with reasonable risk.The investment advisor is Principal Management Corporation and thesub-advisor is Edge Asset Management, Inc.

PVC SAM Conservative BalancedPortfolio (Class 2 Shares)

Seeks to provide a high level of total return (consisting of reinvestment ofincome and capital appreciation), consistent with a moderate degree ofprincipal risk. The investment advisor is Principal ManagementCorporation and the sub-advisor is Edge Asset Management, Inc.

PVC SAM Conservative GrowthPortfolio (Class 2 Shares)

Seeks to provide long-term capital appreciation. The investment advisoris Principal Management Corporation and the sub-advisor is Edge AssetManagement, Inc.

PVC SAM Flexible IncomePortfolio (Class 2 Shares)

Seeks to provide a high level of total return (consisting of reinvestment ofincome with some capital appreciation). The investment advisor isPrincipal Management Corporation and the sub-advisor is Edge AssetManagement, Inc.

PVC SAM Strategic GrowthPortfolio (Class 2 Shares)

Seeks to provide long-term capital appreciation. The investment advisoris Principal Management Corporation and the sub-advisor is Edge AssetManagement, Inc.

The Dreyfus Socially ResponsibleGrowth Fund, Inc. (Service ClassShares)

Seeks to provide capital growth, with current income as a secondary goal.Investment advisor is The Dreyfus Corporation.

1 Effective May 2, 2016, Deutsche Money Market VIP will change its name to Deutsche Government Money Market VIP.

PAGE 17

In addition to the Variable Account, the Funds may sell shares to other separate investment accountsestablished by other insurance companies to support variable annuity contracts and variable life insurance policies aswell as to qualified plans. It is possible that, in the future, it may become disadvantageous for variable life insuranceseparate accounts and variable annuity separate accounts to invest in the Funds simultaneously. Although neitherFarmers nor the mutual Funds currently foresee any such disadvantages, either to variable life insurance policyOwners or to variable annuity contract Owners, each fund’s Board of Directors (Trustees) will monitor events inorder to identify any material conflicts between the interests of such variable life insurance policy Owners andvariable annuity contract Owners, and will determine what action, if any, it should take. Such action could includethe sale of fund shares by one or more of the separate accounts, which could have adverse consequences. Materialconflicts could result from, for example, (1) changes in state insurance laws, (2) changes in federal income tax laws,or (3) differences in voting instructions between those given by variable life insurance policy Owners and thosegiven by variable annuity contract Owners.

If a fund’s Board of Directors (or Trustees) were to conclude that separate Funds should be established forvariable life insurance and variable annuity separate accounts, Farmers will bear the attendant expenses, but variablelife insurance policy Owners and variable annuity contract Owners would no longer have the economies of scaleresulting from a larger combined fund.

Please read the attached prospectuses for the Portfolios to obtain more complete informationregarding the Portfolios.

Selection of the Portfolios

The Portfolios offered through the Policies are selected by Farmers, and Farmers may consider various factors,including, but not limited to asset class coverage, the strength of the investment adviser’s (and/or sub-adviser’s)reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Wealso consider whether the Portfolio or one of its service providers (e.g., the investment adviser) will make payments tous in connection with certain administrative, marketing, and support services, or whether the Portfolio’s adviser was anaffiliate. We review the Portfolios periodically and may remove a Portfolio, or limit its availability to new Premiumsand/or transfers of Contract Value if we determine that a Portfolio no longer satisfies one or more of the selectioncriteria and/or if the Portfolio has not attracted significant allocations from Policy Owners.

You are responsible for choosing to invest in the Portfolios and the amounts allocated to each that areappropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance.Since you bear the investment risk of investing in the Subaccounts, you should carefully consider any decisionsregarding allocations of premium and Contract Value to each Subaccount.

In making your investment selections, we encourage you to thoroughly investigate all of the informationregarding the Portfolios that is available to you, including each Portfolio’s prospectus, statement of additionalinformation, and annual and semi-annual reports. Other sources such as the Portfolio’s website or newspapers andfinancial and other magazines provide more current information, including information about any regulatory actions orinvestigations relating to a Portfolio. After you select Subaccounts in which to allocate premium or Contract Value, youshould monitor and periodically re-evaluate your investment allocations to determine if they are still appropriate.

You bear the risk of any decline in the Contract Value of your Policy resulting from the performanceof the Subaccounts you have chosen.

We do not provide investment advice and we do not recommend or endorse any of the particular Portfoliosavailable as investment options in the Policy.

Revenue We Receive From the Portfolios and/or Their Service Providers. We (and our affiliates) maydirectly or indirectly receive payments from the Portfolios and/or their service providers (investment advisers,administrators, and/or distributors), in connection with certain administrative, marketing and other services we (andour affiliates) provide and expenses we incur. We (and/or our affiliates) generally receive three types of payments:

• Rule 12b-1 Fees. We and/or our affiliate, Farmers Financial Solutions, LLC (“FFS”), the principalunderwriter and distributor for the Policies, receive some or all of the 12b-1 fees from the Portfolios thatcharge a 12b-1 fee. See the prospectuses for the Portfolios for more information. The 12b-1 fees we and/orFFS receive are calculated as a percentage of the average daily net assets of the Portfolios owned by theSubaccounts available under this Policy and certain other variable insurance products that we issue.

• Administrative, Marketing and Support Service Fees (“Support Fees”). We and/or FFS may receivecompensation from some of the Portfolios’ service providers for administrative and other services we

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perform relating to Variable Account operations that might otherwise have been provided by thePortfolios. The amount of this compensation is based on a percentage of the average assets of theparticular Portfolios attributable to the Policy and to certain other variable insurance products that weissue. These percentages currently range from 0.00% to 0.25% and may be significant. Some serviceproviders may pay us more than others.

The chart below provides the current maximum combined percentages of 12b-1 fees and Support Fees that we anticipatewill be paid to us and/or FFS on an annual basis:

Incoming Payments to Farmers and/or FFSFrom the following Funds and

their Service Providers:Maximum %

of assets*From the following Funds and their

Service Providers:Maximum %

of assets*American 0.25% Franklin Templeton 0.25%Deutsche 0.25% Janus 0.25%Dreyfus 0.25% PIMCO 0.25%Fidelity® 0.25% Principal 0.25%

* Payments are based on a percentage of the average assets of each underlying Portfolio owned by the Subaccounts available under thisPolicy and under certain other variable insurance products offered by us.

• Other payments. We and/or FFS also may directly or indirectly receive additional amounts or differentpercentages of assets under management from some of the Portfolio’s service providers with regard tothe variable insurance products we issue. These payments may be derived, in whole or in part, from theadvisory fees deducted from assets of the Portfolios. Policy Owners, through their indirect investment inthe Portfolios, bear the costs of these advisory fees. Certain investment advisers or their affiliates mayprovide us and/or FFS with wholesaling services to assist us in the distribution of the Policy, may payus and/or FFS amounts to participate in sales meetings or may reimburse our sales costs, and mayprovide us and/or FFS with occasional gifts, meals, tickets, or other compensation or reimbursement.The amounts in the aggregate may be significant and may provide the investment adviser (or otheraffiliates) with increased access to us and FFS.

Proceeds from these payments made by the Portfolios, investment advisers, and/or their affiliates may beused for any corporate purpose, including payment of expenses that we and FFS incur in promoting, issuing,distributing, and administering the Policies, and that we incur, in our role as intermediary, in marketing andadministering the underlying Portfolios. We and our affiliates may profit from these payments.

For further details about the compensation payments we make in connection with the sale of the Policies,see the “Additional Information – Distribution of the Policies” section.

Availability of the Portfolios

We do not guarantee that each Portfolio will always be available for investment through the Policies.

We reserve the right, subject to applicable law, to add new Portfolios or classes of Portfolio shares, removeor close existing Portfolios or classes of Portfolio shares, or substitute Portfolio shares held by any Subaccount forshares of a different Portfolio. New or substitute Portfolios or classes of Portfolio shares may have different fees andexpenses and their availability may be limited to certain classes of purchasers. If the shares of a Portfolio are nolonger available for investment or if, in our judgment, further investment in any Portfolio should becomeinappropriate, we may redeem the shares of that Portfolio and substitute shares of another Portfolio. We will not add,remove or substitute any shares without notice and prior approval of the SEC and state insurance authorities, to theextent required by the 1940 Act or other applicable law.

Your Right to Vote Portfolio Shares

Even though we are the legal Owner of the Portfolio shares held in the Subaccounts, and have the right tovote on all matters submitted to shareholders of the Portfolios, we will vote our shares only as you and other PolicyOwners instruct, so long as such action is required by law.

Before a vote of a Portfolio’s shareholders occurs, we will send voting materials to you. We will ask you toinstruct us on how to vote and to return your proxy to us in a timely manner. You will have the right to instruct us onthe number of Portfolio shares that corresponds to the amount of Contract Value you have in that Portfolio (as of adate set by the Portfolio). The number of votes you have will be calculated separately for each Subaccount in whichyou have an investment.

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We do not require a minimum number of votes received from Policy Owners in order to cast our votes.Instead, if we do not receive your voting instructions, or if we do not receive them within the time allowed to castyour vote, we will vote our Portfolio shares attributable to your Policy in proportion to the instructions that wetimely receive from all Policy Owners who have a voting interest in the Portfolio’s shares. Because we do notrequire a minimum number of votes received, one result of “proportional voting” is that a small number of PolicyOwners, who choose to timely vote, may control the outcome of a vote.

Should federal securities laws, regulations and interpretations change, we may elect to vote Portfolio sharesin our own right. Under current legal requirements, we may disregard the voting instructions we receive from PolicyOwners only in certain narrow circumstances prescribed by SEC regulations. In the event we disregard votinginstructions from Policy Owners, we will send a summary in the next annual report to impacted Policy Ownersadvising them of the actions and the reasons we took such action.

The Policy

Purchasing a Policy

To purchase a Policy, you must send the application and, in most cases, an Initial Premium, to us throughany licensed Farmers insurance agent who is also a registered representative of a broker-dealer having a sellingagreement with the principal underwriter that offers the Policy, Farmers Financial Solutions, LLC.

There may be delays in our receipt of an application that are outside of our control because of the failure ofthe agent to forward the application to us promptly, or because of delays in determining that the Policy is suitable foryou. Any such delays will affect when your Policy can be issued and when your Initial Premium is allocated to oneor more Subaccounts of the Variable Account and/or to the Fixed Account.

Acceptance of an application is subject to our insurance underwriting. Interest is not credited to your InitialPremium and any other amounts submitted with the application during the underwriting review process. This is trueregardless of whether the application is declined or withdrawn, an offer to insure is not taken, or a Policy issued. Weuse different underwriting standards in relation to the Policy. We can provide you with details as to these underwritingstandards when you apply for a Policy. We must receive evidence of insurability that satisfies our underwritingstandards before we will issue a Policy. We reserve the right to reject an application for any reason permitted by law.

We reserve the right to decline an application for any reasons subject to the requirements imposed by law inthe jurisdiction where the requested insurance Policy was to be issued and delivered. If the application is declined orcanceled, the full amount paid with the application will be refunded.

We determine the minimum Face Amount (an amount that is used to determine the death benefit) for aPolicy based on the Attained Age of the Insured when we issue the Policy. The minimum Face Amount for thepreferred and premier Premium Classes is $150,000, $75,000 for standard/nicotine Premium Class Insuredsage 21-50, and $50,000 for all others. The maximum Issue Age for Insureds in the preferred and premierunderwriting classes is age 75; in the juvenile underwriting class is age 20; and in the standard Premium Classes isage 80. We base the minimum Initial Premium for your Policy on a number of factors including the age, gender andPremium Class of the Insured and the Face Amount. We currently require a minimum Initial Premium as shown onyour Policy specifications page.

Tax-Free “Section 1035” Exchanges

You can generally exchange one life insurance policy for another in a ‘tax-free exchange’ underSection 1035 of the Tax Code. Before making an exchange, you should compare both policies carefully. Rememberthat if you exchange another policy for the one described in this prospectus, you might have to pay a SurrenderCharge on your old policy. There will be a new Surrender Charge period for this Policy and other charges may behigher (or lower) and the benefits may be different. This Policy will have new suicide and incontestability periods,during which benefits may be denied in certain circumstances. Your old policy’s suicide and incontestability periodsmay have expired. If the exchange does not qualify for Section 1035 treatment, you may have to pay federal incomeand penalty taxes on the exchange. You should not exchange another policy for this one unless you determine, afterknowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell youthis Policy (that person will generally earn a commission if you buy this Policy through an exchange or otherwise).

When Insurance Coverage Takes Effect

Temporary Insurance Coverage. If the primary proposed Insured meets our eligibility requirements fortemporary insurance coverage, then we will provide the primary proposed Insured and children to be covered under

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a Children’s Term Insurance Rider with temporary insurance coverage in the amount applied for (excluding anyriders and supplemental benefits) or $500,000, whichever is less. The conditions and eligibility requirements fortemporary insurance coverage are detailed in the Temporary Insurance Agreement included with the Policyapplication.

Temporary insurance coverage terminates automatically, and without notice, on the earliest of:

• The date insurance coverage under the Policy becomes effective;

• The date you receive notice that either the temporary insurance coverage or the application has beendeclined, and in no event later than 12:01 a.m. Pacific Time of the fifth day after Farmers has mailed aletter giving such notice; or

• The date Farmers receives your signed request to cancel.

Insurance Coverage Under the Policy. If we issue the Policy as applied for, insurance coverage under thePolicy will take effect on the Issue Date, provided sufficient payment has been received. If we issue a Policy otherthan as applied for, insurance coverage under the Policy will take effect either upon the completion of allunderwriting and Owner payment for and acceptance of the Policy, or on the Issue Date, whichever is later. TheIssue Date will be printed in the Policy and may be several days later than when the Policy is delivered to you.Insurance coverage under the Policy will not begin before the Issue Date printed in the Policy, if issued.

Generally, we will issue the Policy if we determine that the Insured meets our underwriting requirements,we accept the original application, and we receive the Owner’s payment. On the Issue Date, we will allocate yourpremium(s) (after subtracting the premium expense charge and the Monthly Deductions for the first month) to theFixed Account until the Reallocation Date.

Backdating. We may sometimes backdate a Policy, if you request, by assigning an Issue Date earlier thanthe Record Date so that you can obtain lower cost of insurance rates, based on a younger insurance age. We will notbackdate a Policy earlier than the date the application is signed. For a backdated Policy, Monthly Deductions,including cost of insurance charges and underwriting and sales expense charges, will begin on the backdated IssueDate. You will therefore incur charges for the period between the Issue Date and the Record Date as thoughinsurance coverage under the Policy is in effect during this period, even though such coverage does not in fact beginuntil the Record Date (or a few days prior to the Record Date in some cases).

Cancelling a Policy (Right-to-Examine Period)

You may cancel a Policy during the “Right-to-Examine Period” by returning it with a signed request forcancellation to our Home Office. In most states, the Right-to-Examine Period expires 10 days after you receive thePolicy. This period will be longer if required by state law. If you decide to cancel the Policy during the Right-to-Examine Period, we will treat the Policy as if we never issued it. Within seven calendar days after we receive thereturned Policy, we will refund an amount equal to the greater of the sum of all Premiums paid for the Policy or theContract Value at the end of the Valuation Date on which we receive the returned Policy, which must be sent alongwith a signed request for cancellation to our Home Office.

Policies Sold in California. If you purchase your Policy in California, and are 60 years of age or older at thetime, the Right-to-Examine Period lasts for 30 days from the date you receive the Policy. You may cancel the Policyat any time during the Right-to-Examine Period by returning it with a signed request for cancellation to our HomeOffice.

During the 30-day Right-to-Examine Period (plus 10 days), we will place your premium in the FixedAccount, unless you specifically direct that we allocate your premium to the Subaccounts and Fixed Account youselected on the application. We will credit your premium(s) placed in the Fixed Account with interest at the currentFixed Account interest rate. If your premium is placed solely in the Fixed Account, we will refund to you allPremiums and Policy fees you paid as of the business day on which we receive your cancelled Policy, which mustbe sent along with a signed request for cancellation to our Home Office.

If you have directed that your premium be invested in the Subaccounts, rather than the Fixed Account,during the Right-to-Examine Period, we will refund you only the Contract Value. The Contract Value refunded willbe as of the business day we receive your cancelled Policy, which must be sent along with a signed request forcancellation to our Home Office. Any amounts refunded will reflect the investment performance of the Subaccountsyou selected, and the fees and charges that we deduct. You bear the risk that a refund of your Contract Valuecould be less than the premium you paid for this Policy. If you decide to cancel this Policy after the Right-to-Examine Period has expired, we will impose a Surrender Charge on the transaction.

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Other Policies

We offer other life insurance policies that have different investment options, death benefits, policy features,and optional benefits. These other policies also have different charges that would result in different performancelevels than this Policy. For more information about the other policies, please contact our Home Office or your agent.

Ownership Rights

The Policy belongs to the Owner named in the application. The Owner may exercise all of the Ownershiprights and privileges described in the Policy. The Insured is the Owner unless the application specifies a differentperson (another natural person or entity) as the Owner or a new Owner or co-Owner is named by the Owner. If theOwner dies before the Insured and no successor Owner is named, then Ownership of the Policy will pass to theInsured. The Owner may designate the Beneficiary (the person to receive the Death Benefit Amount Payable whenthe Insured dies) in the application.

Changing the Owner • You may change the Owner by providing a written request to us at any time whilethe Insured is alive, subject to any existing assignments of your Policy.

• The change takes effect on the date that the written request is signed.• We are not liable for any actions we may have taken before we received the written

request.• Changing the Owner does not automatically change the Beneficiary.

Changing the Owner may have tax consequences. You should consult a tax adviserbefore changing the Owner.

Selecting andChanging theBeneficiary

• If you designate more than one Beneficiary, then each Beneficiary shares equally inany Death Benefit Amount Payable unless the Beneficiary designation statesotherwise.

• If the Beneficiary dies before the Insured, then any contingent Beneficiary becomesthe Beneficiary.

• If both the Beneficiary and contingent Beneficiary die before the Insured, then wewill pay the Death Benefit Amount Payable to the Owner or the Owner’s estate oncethe Insured dies.

• You can request a delay clause that provides that if the Beneficiary dies within aspecified number of days (maximum 180 days) following the Insured’s death, thenthe Death Benefit Amount Payable will be paid as if the Beneficiary had died first.

• You can change the Beneficiary by providing us with a written request while theInsured is living.

• The change in Beneficiary is effective as of the date you sign the written request.• We are not liable for any actions we may have taken before we received the written

request.

Modifying the Policy

Assigning the Policy –CollateralAssignment

• You may assign Policy rights while the Insured is alive.• The Owner retains any Ownership rights that are not assigned.• The assignee may not change the Owner or the Beneficiary, and may not elect or

change an optional method of payment. We will pay any amount payable to theassignee in a lump sum.

• Claims under any assignment are subject to proof of interest and the extent of theassignment.

• We are not:• bound by any assignment unless we receive and record a Written Notice of the

assignment.• responsible for the validity of any assignment.• liable for any payment we made before we received Written Notice of the

assignment.Assigning the Policy may have tax consequences. See the “Federal Tax Considerations”section.

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Only one of our officers may modify the Policy or waive any of our rights or requirements under the Policy.Any modification or waiver must be in writing. No agent may bind us by making any promise not contained in thePolicy.

Upon notice to you, we may modify the Policy to:

• conform the Policy, our operations, or the Variable Account’s operations to the requirements of any law(or regulation issued by a government agency) to which the Policy, our company or the VariableAccount is subject;

• assure continued qualification of the Policy as a life insurance contract under the federal tax laws; or• reflect a change in the Variable Account’s operations.

If we modify the Policy, we will make appropriate endorsements to the Policy. If any provision of the Policyconflicts with the laws of a jurisdiction that govern the Policy, we will amend the provision to conform with suchlaws.

Policy Termination

Your Policy will terminate on the earliest of:

• the Maturity Date (Insured’s Attained Age 121);• the date the Insured dies;• the end of the grace period without a sufficient payment; or• the date you Surrender the Policy in full.

Premiums

Premium Flexibility

You have flexibility to determine the frequency and the amount of the Premiums you pay. You do not haveto pay Premiums according to any schedule. However, you greatly increase your risk of Lapse if you do notregularly pay Premiums at least as large as the current minimum premium. Paying the minimum Premiums forthe Policy will not necessarily keep your Policy in force. It is likely that additional Premiums will be necessary tokeep the Policy in force until maturity.

Before the Issue Date of the Policy (or if premium is paid on delivery of the Policy, before the RecordDate), we will require you to pay the minimum premium indicated on your Policy specifications page. Thereafter,you may pay Premiums ($25 minimum) at any time. You must send all Premiums to our Service Center or to youragent. We reserve the right to limit the number and amount of any unscheduled Premiums. You may not pay anyPremiums once the Insured reaches Attained Age 100.

We deduct a premium expense charge from each premium payment, after which the remainder of thepremium payment is allocated to the Subaccounts and the Fixed Account based on your current allocationpercentages for premium payments (Initial Premiums are assessed the premium expense charge and the remainder ofthe premium is allocated to the Fixed Account until the Reallocation Date). We retain the premium expense chargeto compensate us for certain expenses such as premium taxes and selling expenses.

We will treat any payment you make as a premium unless you clearly mark it as a loan repayment.We have the right to limit or refund any premium, if the premium would disqualify the Policy as a life insurancecontract under the Tax Code, or if the payment would increase the death benefit by more than the amount of thepremium.

Planned Premiums. You may determine a planned premium schedule that allows you to pay levelPremiums at fixed intervals over a specified period of time. You are not required to pay Premiums according to thisschedule. You may change the amount and frequency of your planned Premiums by sending us a written request.We have the right to limit the amount of any increase in planned Premiums. Even if you pay your planned Premiumson schedule, your Policy will Lapse unless your Cash Surrender Value is positive or your Policy passes the GraceExemption Test. See the “Policy Risks – Risk of Lapse” and the “Policy Lapse and Reinstatement – Lapse” sections.

Electronic Payments and Billing. If you authorize electronic payment of your Premiums from your bankaccount, the total amount of Premiums being debited, must be at least $25 per month. If you request to be billed foryour planned Premiums, the total amount billed must be at least $300 per year. You can be billed on an annual,semi-annual, quarterly or monthly basis for the applicable fraction of $300, but the total for the year must add up toat least $300.

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You can stop paying Premiums at any time and your Policy will continue in force until the earlier of theMaturity Date (when the Insured reaches Attained Age 121), or the date when either (1) the Insured dies, or (2) thePolicy Lapses, or (3) we receive your signed request to Surrender the Policy in full.

Tax Code Processing. If we receive any premium payment that we anticipate will cause a Policy to becomea modified endowment contract (“MEC”) or will cause a Policy to lose its status as life insurance underSection 7702 of the Tax Code, we will not accept the excess portion of that premium. We will immediately notifythe Owner and give an explanation of the issue by sending a letter to the Owner’s address of record. We will refundthe excess premium no later than 2 weeks after receipt of the premium at the Service Center (the “refund date”),except in the following circumstances:

a. the tax problem resolves itself prior to the refund date; orb. the tax problem relates to a MEC and we receive a signed acknowledgment from the Owner prior to the

refund date instructing us to process the premium notwithstanding the tax issue involved.

During this two-week period, we will hold such excess premium in a suspense account until the refund date.Premiums held in the suspense account will not be credited interest. Farmers will treat the excess premium as havingbeen received on the date the tax problem resolves itself or the date Farmers receives the signed acknowledgement atthe Service Center. We will then process the excess premium accordingly.

Minimum Premiums

Paying the minimum premium is one way to reduce the risk that your Policy will Lapse without value. Yougreatly increase the risk of your Policy lapsing if you do not regularly pay Premiums at least as large as the currentminimum premium. However, paying the minimum Premiums for the Policy will not necessarily keep yourPolicy in force.

It is likely that you will be required to pay additional Premiums in order to keep your Policy in force untilmaturity.

For a full discussion on the conditions that will cause the Policy to enter the grace period, please see the“Policy Lapse and Reinstatement-Lapse” section of this prospectus.

The initial minimum premium is shown on your Policy specifications page. The minimum premiumdepends on a number of factors including the age, gender, and Premium Class of the proposed Insured, and the FaceAmount.

The minimum premium will change if:

• you increase or decrease the Face Amount;• you change the death benefit option;• you change or add a rider;• you take a partial Surrender when you have elected the level death benefit option (Option B); or• the Insured’s Premium Class changes (for example, from nicotine to non-nicotine, or from substandard

to standard).

Your Policy can Lapse before maturity, depending on the amount of Premiums you pay, whether you takeloans and partial Surrenders or increase the Face Amount of your Policy, if the investment results of the Subaccountsin which you invest your Contract Value are unfavorable, or whether your current insurance charge increases. Youragent can provide you with a personalized illustration that can show how many years your Policy would stay inforce under various premium and hypothetical investment scenarios. For certain Issue Ages, classes and Policy sizes,this illustration may show that regular payments of the minimum premium will keep your Policy in force severalyears even if investment results are very low and even if we impose the maximum charges allowed by the Policy, solong as you do not take a loan or partial Surrender or increase the Face Amount of your Policy. This is not true forall ages, classes, and investment results, however. So we encourage you to ask your agent for a personalizedillustration to help you decide what level of premium payments to pay in your particular circumstances.

Allocating Premiums

When you apply for a Policy, you must instruct us to allocate your Initial Premium(s) to one or moreSubaccounts of the Variable Account and to the Fixed Account according to the following rules:

• You must put at least 1% of each premium in any Subaccount you select or the Fixed Account.• Allocation percentages must be in whole numbers and the sum of the percentages must equal 100.

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You can change the allocation instructions for additional Premiums without charge at any time by providingus with written notification (or any other notification we deem satisfactory). Any allocation change will be effectiveon the date we record the change. Any future Premiums will be allocated in accordance with the new allocation,unless we receive contrary written instructions. Changing your allocation instructions will not change the way yourexisting Contract Value is apportioned among the Subaccounts or the Fixed Account. We reserve the right to limitthe number of premium allocation changes. We also reserve the right to limit the number of Subaccount allocationsin effect at any one time.

Investment returns from amounts allocated to the Subaccounts will vary with the investment experience ofthese Subaccounts and will be reduced by applicable Policy fees and charges. You bear the risk of any decline inthe Contract Value of your Policy resulting from the performance of the Subaccounts you have chosen.

On the Issue Date, we will allocate your premium(s) received, minus the premium expense charge, minusthe Monthly Deduction(s), to the Fixed Account unless your state requires that we immediately allocate yourpremium to the Subaccounts. We also allocate any Premiums we receive from the Issue Date to the ReallocationDate (the Record Date, plus the number of days in your state’s right to examine period, plus 10 days) to the FixedAccount. While held in the Fixed Account, premium(s) will be credited with interest at the current Fixed Accountrate. On the Reallocation Date, we will reallocate the Contract Value in the Fixed Account to the Subaccounts (at theunit value next determined) in accordance with the allocation percentages provided in the application.

Unless additional underwriting is required or a situation described above in the “Tax Code Processing”section occurs, we invest all Premiums paid after the Reallocation Date on the Business Day they are received in ourService Center. We credit these Premiums to the Subaccounts at the unit value next computed at the end of aBusiness Day on which we receive them at our Service Center. If we receive your additional Premiums after theclose of a Business Day, we will calculate and credit them as of the end of the next Business Day.

Your Contract Values

Your Contract Value: • varies from day to day, depending on the investment experience of the Subaccountsyou choose, the interest credited to the Fixed Account, the charges deducted and anyother Policy transactions (such as additional premium payments, transfers, partialSurrenders and Policy loans);

• serves as the starting point for calculating values under a Policy;• equals the sum of all values in each Subaccount, the loan account (the Loan Account

Value), and the Fixed Account (the Fixed Account Value);• is determined on the Issue Date and on each Business Day;• on the Issue Date, equals the Initial Premium received, minus the premium expense

charge, and minus the Monthly Deductions; and• has no guaranteed minimum amount and may be more or less than Premiums paid.

Subaccount Value

Each Subaccount’s value is determined at the end of each Business Day. We determine your Policy’s valuein each Subaccount by multiplying the number of units that your Policy has in the Subaccount by the AccumulationUnit value of that Subaccount at the end of the Business Day.

The number of unitsin any Subaccount onany Business Dayequals:

• the number of units you had in any Subaccount at the end of the preceding BusinessDay; plus

• units purchased with additional Premiums since the preceding Business Day andallocated to the Subaccounts, net of the premium expense charge; plus

• units purchased via transfers from another Subaccount, the Fixed Account, or loanaccount, to the Subaccount since the preceding Business Day; minus

• units redeemed as part of a transfer to another Subaccount, the Fixed Account, or theloan account, plus units redeemed to cover any associated transfer fees since thepreceding Business Day; minus

• units redeemed to pay partial Surrenders and partial Surrender fees assessed againstthe Subaccount since the preceding Business Day; minus

• units redeemed to pay for the pro-rata share of the Monthly Deductions on theBusiness Day on or after the Monthly Due Date.

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Every time you allocate or transfer money to or from a Subaccount, we convert that dollar amount intounits. We determine the number of units we credit to, or subtract from, your Policy by dividing the dollar amount ofthe allocation, transfer, or partial Surrender, by the unit value for that Subaccount at the end of the Business Day forthat transaction.

Subaccount Unit Value

The Accumulation Unit value (or price) of each Subaccount will reflect the investment performance of thePortfolio in which the Subaccount invests. Unit values will vary among Subaccounts. The unit value of eachSubaccount was originally established at the figure shown on the Variable Account’s financial statements. The unitvalue may increase or decrease from one Business Day to the next. For a discussion of how unit values arecalculated, see the SAI.

Fixed Account Value

On the Issue Date, the Fixed Account Value is equal to the Initial Premium paid, less the premium expensecharge, less the first Monthly Deduction. Any subsequent premium payments that are received by us prior to theReallocation Date, minus the premium expense charge, will also be allocated to the Fixed Account.

The Fixed AccountValue on anyBusiness Day afterthe Issue Date equals:

• the Fixed Account Value on the preceding Business Day plus interest from thepreceding Business Day to the current Business Day; plus

• the portion of the premium(s), minus the premium expense charge, allocated to theFixed Account since the preceding Business Day, plus interest from the date suchpremium(s) were received to the current Business Day; plus

• any amounts transferred to the Fixed Account since the preceding Business Day, plusinterest from the effective date of such transfers since the preceding Business Day tothe current Business Day; minus

• the amount of any transfer from the Fixed Account to the Subaccounts and the loanaccount, and any associated transfer fees, since the preceding Business Day, plusinterest on each transferred amount and transfer fees from the effective date of suchtransfers since the preceding Business Day to the current Business Day; minus

• the amount of any partial Surrenders and any applicable partial Surrender feesdeducted from the Fixed Account since the preceding Business Day, plus interest onthose Surrendered amounts from the effective date of each partial Surrender since thepreceding Business Day to the current Business Day; minus

• the amount equal to a pro-rata share of the Monthly Deduction on the Business Dayon or after each Monthly Due Date, for the month beginning on that Monthly DueDate.

Your Policy’s guaranteed minimum Fixed Account Value will not be less than the minimum values requiredby the state where we deliver your Policy.

Loan Account Value

The Loan AccountValue on anyBusiness Day afterthe Issue Date equals:

• the Loan Account Value on the preceding Business Day plus interest from thepreceding Business Day to the date of calculation; plus

• any amounts transferred to the loan account since the preceding Business Day, plusinterest from the effective date of such transfers to the date of calculation; minus

• the amount of any transfer from the loan account to the Subaccounts and the FixedAccount since the preceding Business Day, plus interest from the effective date ofsuch transfers since the preceding Business Day to the date of calculation.

Interest is charged daily on Policy loans. Interest is due and payable at the end of each Policy year or, ifearlier, on the date of any Policy loan increase or repayment. Any interest not paid when due will be transferredfrom the Fixed Account and Subaccounts to the loan account on a pro-rata basis, if sufficient Funds are available fortransfer. Unpaid interest becomes part of the Outstanding Loan Amount and accrues interest daily.

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Charges and Deductions

This section describes the charges and deductions that we make under the Policy to compensate for: (1) theservices and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The fees andcharges we deduct under the Policy may result in a profit to us.

Services and benefitswe provide:

• the death benefit, Surrender and loan benefits under the Policy, and the benefitsprovided by riders.

• investment options, including premium allocations.• administration of elective options.• the distribution of reports to Owners.

Costs and expenseswe incur:

• costs associated with processing and underwriting applications, issuing andadministering the Policy (including any riders).

• overhead and other expenses for providing services and benefits.• sales and marketing expenses, including compensation paid in connection with the

sale of the Policies.• other costs of doing business, such as collecting Premiums, maintaining records,

processing claims, affecting transactions, and paying federal, state and local premiumand other taxes and fees.

Risks we assumeinclude but are notlimited to:

• that the cost of insurance charges we deduct are insufficient to meet our actual claimsbecause Insureds die sooner than we anticipate.

• that the costs of providing the services and benefits under the Policies exceed thecharges we deduct.

All of the charges we deduct are used to pay aggregate Policy costs and expenses, including a profit to us,that we incur in providing the services and benefits under the Policy and assuming the risks associated with thePolicy.

Premium Deductions

When you make a premium payment, and before we allocate the net premium payment to the Subaccountsand/or the Fixed Account, we deduct a premium expense charge currently equal to 7% of the premium payment forPremiums paid in Policy years 1-10 and 3% of the premium payment for Premiums paid in Policy years 11+. Thepremium expense charge will never exceed 7% of the premium payment. We determine the amount that we willallocate to the Subaccounts and the Fixed Account according to your instructions. For Policy years 1 through 10, the7% of each premium that we retain is the sum of 4.8%, which compensates us for a portion of our sales expenses,and 2.2%, which compensates us for the estimated average state premium taxes we expect to incur in the future. ForPolicy years 11 and over, the 3% of each premium that we retain is the sum of 0.8%, which compensates us for aportion of our sales expenses, and 2.2%, which compensates us for the estimated average state premium taxes weexpect to incur in the future. State premium tax rates vary from state to state and currently range from 0% to 3.50%in the states in which the Policy is sold. The estimated charge does not necessarily reflect the actual premium taxrate that applies to a particular Policy. If the actual premium tax rate is less than 2.2%, the difference between theactual rate and the 2.2% will be retained by us to help cover additional premium tax charges that may be imposed inthe future, and to help cover premium taxes imposed on Policies in states that charge a higher premium tax rate.

Monthly Deduction

We take a Monthly Deduction from the Contract Value on the Issue Date and on the Business Day on orafter each subsequent Monthly Due Date (the same day of each succeeding month as the Issue Date). We will makedeductions by canceling units in each Subaccount and withdrawing Funds from the Fixed Account. We will take theMonthly Deduction on a pro-rata basis from all accounts except the loan account (i.e., in the same proportion thatthe value in each Subaccount and the Fixed Account bears to the sum of all Subaccounts and the Fixed Account onthe Monthly Due Date). Because portions of the Monthly Deduction can vary from month-to-month, the MonthlyDeduction will also vary.

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The Monthly Deduction is equal to:

• The monthly administration charge; plus• The cost of insurance charge for the Policy; plus• The monthly underwriting and sales expense charge, if any; plus• The risk charges of any attached riders.

Monthly Administration Charge. We deduct this charge to compensate us for a portion of ouradministrative expenses such as recordkeeping, processing death benefit claims and Policy changes, and overheadcosts. The monthly administration charge currently equals $12.00. We may increase or decrease this charge but it isguaranteed never to be higher than $12.00.

Cost of Insurance Charge. We assess a monthly cost of insurance charge to compensate us for theanticipated cost of paying a death benefit in excess of your Contract Value. The charge depends on a number ofvariables (e.g., the Face Amount, the Contract Value, the Insured’s Issue Age, gender, and Premium Class, and thenumber of months since the Issue Date) that will cause it to vary from Policy to Policy and from month to month.

The cost of insurance charge is equal to Risk of Insurance Amount divided by 1,000, then multiplied by thenumber produced from the following:

1. the monthly cost of insurance rate per $1,000; times2. the table rating factor charge for your Policy, if any, as shown on your Policy’s specifications page; plus3. the flat extra charge for your Policy, if any, as shown on your Policy’s specifications page.

The guaranteed maximum monthly cost of insurance rate will be the rate shown in the table in Appendix A(or on your Policy specifications page), except that a different table of guaranteed maximum monthly cost ofinsurance rate per $1,000 may apply to increases in Face Amount that are issued with a Premium Class differentfrom that shown on your Policy specifications page.

The table rating factor charge is a factor by which the cost of insurance rate may be multiplied if thisPolicy is in a special Premium Class. This factor is applied to both current and guaranteed cost of insurance rates.This factor is deducted as part of the cost of insurance charge and compensates us for additional costs associatedwith policies in a special Premium Class. If applicable to you, your Policy specifications page will show you theamount of this factor.

The flat extra charge is an extra amount that may be added to the cost of insurance charge if your Policy isin a special Premium Class. The flat extra charge is a rate per $1,000 of Risk Insurance Amount per month. Thischarge, if any, will be shown on your Policy’s specifications page. This charge compensates us for additional costswe anticipate from Policies in a special Premium Class.

The Risk Insurance Amount on the Monthly Due Date is:

1. the adjusted death benefit; minus2. the adjusted Contract Value on that date.

The adjusted death benefit and the adjusted Contract Value are what the death benefit and the ContractValue would be on that date if the cost of insurance charge for this Policy was zero. The adjusted death benefit andthe adjusted Contract Value are determined by using the Contract Value on the respective Monthly Due Date anddeducting all applicable charges and fees, except the cost of insurance charge.

The Risk Insurance Amount may increase or decrease each month depending on investment experience ofthe Portfolios in which you are invested, the payment of additional Premiums, the fees and charges deducted underthe Policy, the death benefit option you chose, Policy riders, any Policy transactions (such as loans, partialSurrenders, changes in death benefit option) and the application of the death benefit percentage formula. Therefore,the cost of insurance charges can increase or decrease each month.

Cost of insurance rates are based on the Insured’s age, gender, Premium Class of the Insured, the RiskInsurance Amount, the number of months since the Issue Date, and the amount of the Face Amount. The cost ofinsurance rates are generally higher for male Insureds than for female Insureds of the same age and Premium Class,and ordinarily increase with age. Cost of insurance rates may never exceed the guaranteed maximum cost ofinsurance rates. Sample rates are shown in Appendix A.

The Premium Class of the Insured will affect the cost of insurance rates. We currently place Insureds intopremier, preferred and standard Premium Classes and into special Premium Classes involving higher mortality risks.

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The cost of insurance rates for Insureds in special Premium Classes involving higher mortality risks aremultiples of the standard rates. If the Insured is in a special Premium Class, the guaranteed maximum monthly costof insurance rate will be the rate shown in the table in the Policy times a table rating factor charge shown on yourPolicy specifications page.

We calculate the cost of insurance separately for the initial Face Amount and for any increase in FaceAmount. If you request and we approve an increase in your Policy’s Face Amount, then a different Premium Class(and a different cost of insurance rate) may apply to the increase, based on the Insured’s age and circumstances atthe time of the increase.

The Policies are based on 2001 C.S.O. mortality tables that distinguish between men and women. As aresult, the Policy may pay different benefits to men and women of the same age and Premium Class. We also offerPolicies based on unisex mortality tables if required by state law.

We currently charge cost of insurance rates that are higher for Policies having a Face Amount less than$150,000. If you reduce your Face Amount below $150,000 at any time, then the higher rates will apply in mostcases.

Monthly Underwriting and Sales Expense Charge. We deduct this charge each month during the first 5Policy years after the Issue Date to compensate us for a portion of the expenses of selling, underwriting and issuingthe Policy. This charge is imposed for an additional 5 Policy years each time you choose to increase the FaceAmount after the Issue Date. The rate for this charge depends upon the Insured’s age at issue or at the time of anyincrease in Face Amount. The charge is calculated by multiplying the rate for this charge by the amount of FaceAmount issued or by the amount by which the Face Amount is increased above the Face Amount immediately priorto the current increase. The underwriting and sales expense charge is not imposed on any increases in Face Amountthat are due to a change in death benefit option. The monthly underwriting and sales expense charge will not bereduced as a result of a reduction in the Face Amount.

The amount of the monthly underwriting and sales expense charge is computed on the Issue Date, or on theMonthly Due Date for increases in Face Amount, as follows:

1. Find the appropriate monthly underwriting and sales expense charge per $1,000 for the Insured’s IssueAge in Appendix B; then

2. Multiply this charge per $1,000 by the original Face Amount; and then3. Divide the result by 1,000.

If you choose to increase the Face Amount after the Issue Date, we will assess an additional monthlyunderwriting and sales expense charge for 5 years after the increase takes effect. The additional charge will beassessed only on the amount of the increase in Face Amount, using the charge applicable to the Insured’s AttainedAge at the time of the increase. The additional charge will be calculated by following the four steps outlined above.

• Monthly Underwriting and Sales Expense Charge discount (“MUSEC discount”). We may providea discount on the base monthly underwriting and sales expense charge if a “qualifying” policy is inforce, applied for, or pending when we receive your Policy application. Qualifying policies currentlyinclude those where the Policy Owner, the payor of the Policy or the primary Insured on the Policy is anactive driver on a Farmers auto policy, or is one of the named Insureds under a Farmers home owner’sor renter’s policy, or owns another life insurance or commercial policy issued by us. We may alsoprovide the discount prospectively if, after issue, you purchase a qualifying policy, subject to staterestrictions. Contact us or your agent for details concerning the rate of MUSEC discount that may beapplied to your Policy. The size of the qualifying policy does not affect the amount of the discount.

Rider Charges. The Monthly Deduction includes charges for certain optional insurance benefits you add toyour Policy by rider. The rider charges are summarized in the Fee Table in this prospectus. Any rider chargesapplicable to your Policy will be indicated in the rider you receive. If you add one or more of the following riders toyour Policy, your Monthly Deduction will include the corresponding rider charges:

• Accidental Death Benefit Rider• Children’s Term Insurance Rider• Waiver of Deduction Rider• Monthly Disability Benefit Rider (not available effective August 7, 2015)

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Mortality and Expense Risk Charge

We deduct a daily charge from your Contract Value in each Subaccount to compensate us for a portion ofcertain mortality and expense risks we assume. The mortality risk is the risk that an Insured will live for a shortertime than we project. The expense risk is the risk that the expenses we incur will exceed the maximum charges wecan impose according to the terms of the Policy. The mortality and expense risk charge is equal to:

• your Contract Value in each Subaccount; multiplied by• the daily portion of the annual mortality and expense risk charge rate, which is currently 0.30%.• We reserve the right, at our discretion, to increase the annual mortality and expense risk charge rate to

no more than 0.60%.

If this charge and the other charges we impose do not cover our actual costs, we absorb the loss. Conversely,if the charges we impose more than cover actual costs, the excess is added to our surplus. We expect to profit fromthe mortality and expense risk charge. We may use any profits for any lawful purpose including coveringdistribution costs.

Surrender Charge

We deduct a Surrender Charge if, during the first nine Policy Years, or within nine years following anyincrease in Face Amount, you fully Surrender the Policy. In the case of a full Surrender, we pay you the ContractValue, less any Surrender Charge, less any Monthly Deduction due and unpaid, and less any Outstanding LoanAmount (including any interest you owe). The payment you receive is called the Cash Surrender Value.

The Surrender Charge may be significant. You should carefully calculate this charge before yourequest a full Surrender. Under some circumstances the level of Surrender Charges might result in no CashSurrender Value available if you Surrender your Policy during the period when Surrender Charges apply. This willdepend on a number of factors, but is more likely if:

1. you pay Premiums equal to or not much higher than the minimum premium shown in your Policy, or2. investment performance is too low.

The Surrender Charge is equal to the sum of:

1. the Surrender Charge for the Face Amount on the Issue Date; plus2. the Surrender Charge for each increase in Face Amount.

To calculate the Surrender Charge for the Face Amount on the Issue Date, (i) locate the appropriateSurrender Charge factor from a table in Appendix C of this prospectus, or the “Surrender Charge Factors” table inyour Policy, for the Insured’s Issue Age and the number of complete years that have elapsed since your Policy wasissued, then (ii) multiply this factor by the Face Amount on the Issue Date and divide the result by 1,000.

To calculate the Surrender Charge for increases in Face Amount that are issued with the same PremiumClass as that shown on your Policy specifications page, (i) locate the appropriate Surrender Charge factor from atable in Appendix C of this prospectus, or the “Surrender Charge Factors” table in your Policy, for the Insured’sAttained Age at the time of increase and the number of complete years that have elapsed since the increase, then(ii) multiply this factor by the amount of the increase in Face Amount and divide the result by 1,000.

For increases in Face Amount that are issued with a Premium Class different from that shown on yourPolicy specifications page, the same process is followed, but a different table from the “Surrender Charge Factors”table in your Policy may apply; see Appendix C of this prospectus for an exhaustive list of surrender charge factortables. The applicable Surrender Charge factor varies by Issue Age, gender, nicotine use, and number of full Policyyears since the Issue Date.

An example of calculating the Surrender Charge follows:

This example is for a Policy issued to a male Insured, in the standard non-nicotine Premium Class. The FaceAmount is $150,000 and the Issue Age is 32. The Surrender Charge in Policy year 1 will be $1,300.50 ($150,000multiplied by the Surrender Charge factor (8.67) divided by 1,000).

Partial Surrender Processing Fee. Upon partial Surrender, we deduct a partial Surrender processing feeequal to the lesser of 2% of the amount of the partial Surrender or $25. The partial Surrender processing fee will bededucted from the Subaccounts and the Fixed Account on a pro-rata basis, or on different basis if you so request.

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Transfer Charge

• We currently allow you to make 12 transfers each Policy year free from charge. Any unused free transfers donot carry over to the next Policy year.

• We charge $25 for each additional transfer. We will not increase this charge.• For purposes of assessing the transfer charge, each written or telephone request is considered to be one transfer,

regardless of the number of Subaccounts (or Fixed Account) affected by the transfer.• We deduct the transfer charge from the Subaccounts and Fixed Account on a pro-rata basis, or on a different

basis if you so request.• Transfers we effect on the Reallocation Date, and transfers due to loans, dollar cost averaging, and death benefit

processing do not count as transfers for the purpose of assessing this charge.

Loan Charges

• For years 1 through 15, we will charge you loan interest at a rate of 4.5%, compounded annually. For years 16and beyond, we will charge you loan interest at a rate 2.5%, compounded annually. These rates may change atour discretion, but are guaranteed not to exceed 6.5%.

• Interest is charged daily, and is due and payable at the end of each Policy year, or on the date of any Policy loanincrease or repayment, if earlier.

• Unpaid interest becomes part of the Outstanding Loan Amount and accrues interest daily.• Amounts in the loan account earn interest at the guaranteed minimum rate of 2.5% per year.

Portfolio Management Fees and Expenses

Each Portfolio deducts Portfolio management fees and expenses from the amounts you have invested in thePortfolios through the Subaccounts. You pay these Portfolio fees and expenses indirectly. In addition, somePortfolios deduct 12b-1 fees at an annual rate of up to 0.25% of average daily Portfolio assets. For 2015, total annualPortfolio fees and charges for the Portfolios offered through this Policy ranged from 0.20% to 1.29% of averagedaily Portfolio assets. See the prospectuses for the Portfolios for more information.

Redemption Fees. A Portfolio may assess a redemption fee of up to 2% on Subaccount assets that areredeemed out of the Portfolio in connection with a partial Surrender or transfer. Each Portfolio determines theamount of the redemption fee and when the fee is imposed. The redemption fee is retained by or paid to the Portfolioand is not retained by us. The redemption fee will be deducted from your Contract Value. For more information oneach Portfolio’s redemption fee, see the Portfolio prospectus.

Other Charges

• We may charge a fee not to exceed $25 for each additional annual report you request. We currently charge $0for each additional annual report you request.

• Any riders attached to the Policy will have their own charges. See the Fee Table for more information.

Death Benefit

Death Benefit Amount Payable

As long as the Policy is in force, we will pay the Death Benefit Amount Payable once we receivesatisfactory proof of the Insured’s death at our Home Office. We may require return of the Policy. We will pay theDeath Benefit Amount Payable to the primary Beneficiary or a contingent beneficiary. If the Beneficiary dies beforethe Insured and there is no contingent beneficiary, we will pay the Death Benefit Amount Payable to the Owner orthe Owner’s estate. We will pay the Death Benefit proceeds in a lump sum or a series of payments according to thepayment option selected by the Beneficiary. For more information, see the “Additional Information – PaymentOptions” section in the SAI.

Death benefitAmount Payableequals:

• the death benefit (described below) in effect as of the date of the Insured’s death;minus

• any Monthly Deductions due and unpaid at the date of the Insured’s death; minus• any Outstanding Loan Amount you owe on the Policy loan(s); plus• the amounts to be paid under the terms of any riders you added to the Policy.

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If all or a part of the Death Benefit Amount Payable is paid in one lump sum and the amount is at least$10,000, we will place the lump-sum payment into an interest-bearing special account opened in the Beneficiary’sname unless the Beneficiary elects to receive the lump sum by check or payment by check is required by applicablelaw. We will provide the Beneficiary with a checkbook to access these Funds from the special account within sevendays of our receipt of due proof of death and payment instructions at the Service Center. The Beneficiary canwithdraw all or a portion of the Death Benefit Amount Payable at any time, and will receive interest on the proceedsremaining in the account. The special account is part of our General Account, is not FDIC Insured, and is subject tothe claims of our creditors. We may receive a benefit from the amounts held in the account.

We may further adjust the amount of the Death Benefit Amount Payable under certain circumstances. Seethe “Our Right to Contest the Policy,” the “Suicide Exclusion,” and the “Misstatement of Age or Gender” sections inthe SAI.

Death Benefit Options

In your application, you tell us how much life insurance coverage you initially want to purchase on the lifeof the Insured. We call this the “Face Amount” of insurance. You also choose whether the death benefit we will payis Option A (variable death benefit through Attained Age 99), or Option B (level death benefit through AttainedAge 99). For Attained Ages 100 through 120, the death benefit equals the Contract Value.

You may change the death benefit option after the first Policy year if you send us a signed request for aPolicy change, and, if you change from Option A to Option B, you send evidence of insurability satisfactory to us atthe Service Center. A change in death benefit option may have tax consequences.

The variable deathbenefit underOption A is thegreater of:

• your Policy’s Face Amount, plus your Contract Value on the date of the Insured’sdeath; or

• your Contract Value on the date of the Insured’s death multiplied by the applicabledeath benefit percentage.

Under Option A, the death benefit varies with the Contract Value.

The level deathbenefit underOption B is thegreater of:

• your Policy’s Face Amount on the date of the Insured’s death; or

• your Contract Value on the date of the Insured’s death multiplied by the applicabledeath benefit percentage.

Under Option B, your death benefit generally equals the Face Amount and will remain level, unless theContract Value becomes so large that the Tax Code requires a higher death benefit (Contract Value times theapplicable death benefit percentage).

Under Option A, your death benefit will tend to be higher than under Option B. However, the monthlyinsurance charges we deduct will also be higher to compensate us for our additional risk. Because of this, yourContract Value will tend to be higher under Option B than under Option A.

In order for the Policy to qualify as life insurance, federal tax law requires that your death benefit be at leastas much as your Contract Value multiplied by the applicable death benefit percentage. The death benefit percentageis based on the Insured person’s Attained Age. For example, the death benefit percentage is 250% for an Insured atage 40 or under, and it declines for older Insureds. The following table indicates the applicable death benefitpercentages for different Attained Ages:

Attained Age Death Benefit Percentage

40 and under 250%41 to 45 250% minus 7% for each age over age 4046 to 50 209% minus 6% for each age over age 4651 to 55 178% minus 7% for each age over age 5156 to 60 146% minus 4% for each age over age 5661 to 65 128% minus 2% for each age over age 6166 to 70 119% minus 1% for each age over age 6671 to 74 113% minus 2% for each age over age 7175 to 90 105%91 to 94 104% minus 1% for each age over age 91

95 and above 100%

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If the Tax Code requires us to increase the death benefit by reference to the death benefit percentages, thatincrease in the death benefit will increase our risk, and will result in a higher monthly cost of insurance.

Option A Example. Assume that the Insured’s Attained Age is under 40, that there have been no decreasesin the Face Amount, and that there are no outstanding loans. Under Option A, a Policy with a Face Amount of$50,000 will have a death benefit equal to the greater of $50,000 plus Contract Value or 250% of the ContractValue. Thus, a Policy with a Contract Value of $10,000 will have a death benefit of $60,000 (that is, the greater of$60,000 ($50,000 + $10,000) or $25,000 (250% of $10,000)).

However, once the Contract Value exceeds $33,334, the death benefit determined by reference to the deathbenefit percentage ($33,334 X 250% = $83,335) will be greater than the Face Amount plus Contract Value($50,000 + $33,334 = $83,334). Each additional dollar of Contract Value above $33,334 will increase the deathbenefit by $2.50. This is a circumstance in which we have the right to prohibit you from paying additional Premiumsbecause an additional dollar of premium would increase the death benefit by more than one dollar.

Similarly, under this scenario, any time Contract Value exceeds $33,334, each dollar taken out of ContractValue will reduce the death benefit by $2.50.

Option B Example. Assume that the Insured’s Attained Age is under 40, there have been no partialSurrenders or decreases in Face Amount, and that there are no outstanding loans. Under Option B, a Policy with a$100,000 Face Amount will generally have a $100,000 death benefit. However, because the death benefit must beequal to or be greater than 250% of Contract Value, any time the Contract Value exceeds $40,000, the death benefitwill be determined as required by the Tax Code (Contract Value X 250%) and will exceed the Face Amount of$100,000. Each additional dollar added to the Contract Value above $40,000 will increase the death benefit by$2.50. This is a circumstance in which we have the right to prohibit you from paying additional Premiums becausean additional dollar of premium would increase the death benefit by more than one dollar.

Similarly, so long as the Contract Value exceeds $40,000, each dollar taken out of the Contract Value willreduce the death benefit by $2.50.

Changing Death Benefit Options

After the first Policy year, you may change death benefit options or increase or decrease the Face Amountonce each Policy year if you send us a signed request for a Policy change and, in certain instances, the Insuredprovides evidence of insurability satisfactory to us (but you may not change both the death benefit option and FaceAmount during the same Policy year, unless done simultaneously). Surrender Charges may apply. You may notdecrease the Face Amount below the minimum Face Amount shown on your Policy specifications page.

A change in death benefit option may affect the future monthly cost of insurance charge, which varies withthe Risk Insurance Amount. Generally, the Risk Insurance Amount is the amount by which the death benefit exceedsthe Contract Value. (See the “Charges and Deductions – Monthly Deduction – Cost of Insurance Charge” section.)If the death benefit does not equal Contract Value times the death benefit percentage under either Options A or B,changing from Option A (variable death benefit) to Option B (level death benefit) will generally decrease the futureRisk Insurance Amount. This would decrease the future cost of insurance charges. Changing from Option B (leveldeath benefit) to Option A (variable death benefit) generally results in a Risk Insurance Amount that remains level.Such a change, however, results in an increase in cost of insurance charges over time, since the cost of insurancerates increase with the Insured’s age. Changing the death benefit option may have tax consequences. You shouldconsult a qualified tax adviser before changing the death benefit option.

After any reduction in Face Amount or change in death benefit option, the monthly underwriting and salesexpense charge and the Surrender Charge for the Policy will continue to be based on the same Face Amount onwhich they were based immediately before the change and on any subsequent requested increase in Face Amount.

For a more detailed discussion on changing death benefit options, see the SAI.

Effects of Partial Surrenders on the Death Benefit

If you have selected the variable death benefit (Option A), a partial Surrender will not affect the FaceAmount. But if you have selected the level death benefit (Option B), a partial Surrender will reduce the FaceAmount by the amount of the partial Surrender (not including the processing fee). The reduction in Face Amountwill be subject to the terms of the “Changing the Face Amount” section below.

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Changing the Face Amount

When you apply for the Policy, you tell us how much life insurance coverage you initially want on the lifeof the Insured. We call this the Face Amount. After the first Policy year, you may change the Face Amount subjectto the conditions described below. You may change the Face Amount or the death benefit option once eachPolicy year, but you may not change both the Face Amount and the death benefit option during the same Policyyear unless done simultaneously. We will send you a Policy endorsement with the change to attach to your Policy.

Increasing the Face Amount could increase the death benefit. Decreasing the Face Amount could decreasethe death benefit. The amount of change in the death benefit will depend, among other things, upon the selecteddeath benefit option and the degree to which the death benefit exceeds the Face Amount prior to the change.Changing the Face Amount could affect the subsequent level of death benefit we pay and your Contract Value. Anincrease in the Face Amount may increase the Risk Insurance Amount, thereby increasing your cost of insurancecharge. Conversely, a decrease in the Face Amount may decrease the Risk Insurance Amount, thereby decreasingyour cost of insurance charge.

We will not permit any change that would result in your Policy being disqualified as a life insurancecontract under Section 7702 of the Tax Code. However, changing the Face Amount may have other taxconsequences. You should consult a qualified tax adviser before changing the Face Amount.

Increases

• You may increase the Face Amount by submitting a signed, written request and providing evidence ofinsurability satisfactory to us. The increase will be effective on the Monthly Due Date following ourapproval of your request. We can deny your request for reasons including, but not limited to, thefollowing:

O We do not wish to increase the death benefits due to the Insured’s health, occupation,avocations, or any factor that we believe has a bearing on the Insured’s risk of death.

O We conclude the Insured has an excessive amount of insurance coverage.O We conclude the Owner no longer has an insurable interest in the Insured.

• You can increase the Face Amount at any time after the first Policy year and before the Insured’sAttained Age 81.

• The minimum increase is $10,000.

• An additional monthly underwriting and sales expense charge will be imposed each month during the60 months following each increase in Face Amount. We assess this charge on the amount of theincrease in Face Amount. See the “Charges and Deductions – Monthly Deductions – MonthlyUnderwriting and Sales Expense Charge” section of this prospectus for an explanation of how thischarge is calculated.

• An additional Surrender Charge will be imposed on full Surrenders occurring within 9 years of eachincrease in Face Amount.

• Increasing the Face Amount will increase your Policy’s minimum premium.

Decreases

• You may decrease the Face Amount, but not below the minimum Face Amount shown on your Policyspecifications page.

• You must submit a signed, written request to decrease the Face Amount. Evidence of insurability is notrequired.

• Any decrease will be effective on the Monthly Due Date following our approval of your request.

• Any decrease will first be used to reduce:O the most recent increase; thenO the next most recent increases in succession; and thenO the Face Amount on the Issue Date.

• A reduction in Face Amount will not reduce any monthly underwriting and sales expense charges orSurrender Charges on the Policy.

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• A decrease in Face Amount may require that a portion of a Policy’s Cash Surrender Value bedistributed as a partial Surrender in order to maintain federal tax compliance. Decreasing the FaceAmount may also cause your Policy to become a Modified Endowment Policy, or “MEC,” underfederal tax law and receive less favorable tax treatment than other life insurance policies. See the“Federal Tax Considerations – Tax Treatment of Policy Benefits – Modified Endowment Contracts”section.

• Decreasing the Face Amount will reduce your Policy’s minimum premium.

• Decreasing the Face Amount may increase the rates we charge you for the cost of insurance. Except forjuvenile policies, we currently charge higher rates if the Face Amount is below $150,000 than if it is atleast $150,000.

Payment Options

There are several ways of receiving proceeds under the death benefit and Surrender provisions of the Policy,other than in a lump sum. None of these options vary with the investment performance of the Variable Account. Fora discussion of the settlement options described in your Policy, see the SAI.

Supplemental Benefits (Riders)

Except where otherwise noted, the following supplemental benefits (riders) are available and may be addedto a Policy. The charge for these benefits, if any, may be deducted from your Policy’s Contract Value as part of theMonthly Deduction. See the “Fee Table” in this prospectus. The riders available with this Policy provide fixedbenefits that do not vary with the investment experience of the Variable Account.

• Accelerated Benefit Rider for Terminal Illness – accelerated payment of a portion of the death benefitin the event the Insured develops a terminal illness.

• Accidental Death Benefit Rider – payment of an accidental death benefit if the Insured’s death wascaused by accidental bodily injury.

• Automatic Increase Benefit – automatic increases in Face Amount.

• Children’s Term Insurance Rider – term insurance on the Insured’s dependent children.

• Waiver of Deduction Rider – waiver of Monthly Deductions due to the Insured’s total disability.

• Monthly Disability Benefit Rider – monthly disability benefit to the Fixed Account if the Insured istotally disabled. Effective August 7, 2015, the Monthly Disability Benefit Rider is no longer availableand cannot be added to a Policy; Monthly Disability Benefit Riders that are in force as of August 7,2015 are not affected.

The benefits and restrictions are described in each rider. We will provide samples of these provisions uponrequest. You should consult a tax adviser to learn about the tax consequences associated with each rider. Each ridermay not be available in all states, and a rider may vary by state.

Full and Partial Surrenders

Full Surrender

You may make a written request to fully Surrender your Policy for its Cash Surrender Value, as calculatedat the end of the Business Day on which we receive your signed request, unless you specify a later Business Day inyour request. Please send your written request to the Service Center. The Cash Surrender Value is the amount wepay when you fully Surrender your Policy while it is in force.

The Cash Surrender Value on any Business Day equals:

• the Contract Value as of such date; minus• any Surrender Charge as of such date; minus• any Monthly Deductions due and unpaid as of such date; minus• any Outstanding Loan Amount (including interest you owe) as of such date.

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Full SurrenderConditions:

• You must make your Surrender request in writing.• Your written Surrender request must contain your signature.• Send your written request to the Service Center.• The Insured must be alive and the Policy must be in force when you make your

written request. A Surrender is effective as of the end of the Business Day on whichwe receive your written request and your Policy.

• You will incur a Surrender Charge if you Surrender the Policy during the first ninePolicy years or within nine years after any increase in the Face Amount. See the“Charges and Deductions” section.

• Once you Surrender your Policy, all coverage and other benefits under it cease andcannot be reinstated.

• We will pay you the Cash Surrender Value in a lump sum usually within sevencalendar days unless you request other arrangements.

We will price complete Surrender requests that we receive from you at our Service Center before the NYSEcloses for regular trading (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the Accumulation Unitvalue determined at the close of that regular trading session of the NYSE. If we receive your complete Surrenderrequest after the close of regular trading on the NYSE, we will price your Surrender request using the AccumulationUnit value determined at the close of the next regular trading session of the NYSE.

Surrendering the Policy may have adverse tax consequences, including a penalty tax. See the “Federal TaxConsiderations” section.

Partial Surrenders

After the first Policy year, you may request a partial Surrender of a portion of your Cash Surrender Value,subject to certain conditions. Partial Surrenders may have tax consequences. See the “Federal Tax Considerations”section.

Partial SurrenderConditions:

• You must make your partial Surrender request in writing.• Your written partial Surrender request must contain your signature.• Send your written request to the Service Center.• You may make only one partial Surrender each calendar quarter.• You partial Surrender request must be at least $500.• You cannot withdraw more than 75% of the Cash Surrender Value without

Surrendering the Policy.• You can specify the Subaccount(s) and Fixed Account from which to make the

partial Surrender, otherwise we will deduct the amount from the Subaccounts and theFixed Account on a pro-rata basis (that is, according to the percentage of ContractValue contained in each Subaccount and the Fixed Account). No portion of the loanaccount may be withdrawn.

• We will price complete partial Surrender requests that we receive from you at ourService Center before the NYSE closes for regular trading (usually, 4:00 p.m.Eastern Time, 1:00 p.m. Pacific Time) using the Accumulation Unit valuedetermined at the close of that regular trading session. If we receive your completepartial Surrender request after the close of regular trading on the NYSE, we will priceyour partial Surrender request using the Accumulation Unit value determined at theclose of the next regular trading session of the NYSE.

• We will reduce your Contract Value by the amount of the partial Surrender yourequested plus any processing fee.

• We generally will pay a partial Surrender request within seven calendar days after theBusiness Day when we receive the request.

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Processing Fee for Partial Surrenders. Whenever you take a partial Surrender, we deduct a processing feeaccording to your instructions (or on a pro rata basis if you provide no instructions) from the Subaccounts and theFixed Account equal to the lesser of $25 or 2% of the amount withdrawn.

If the level death benefit (Option B) is in effect at the time of a partial Surrender, we will reduce the FaceAmount by the amount of the partial Surrender (but not by the processing fee). See the “Death Benefit – Changingthe Face Amount – Decreases” section. We will not allow any partial Surrender to reduce the Face Amount belowthe minimum Face Amount set forth in your Policy specifications page.

Income taxes, tax penalties and certain restrictions may apply to any full Surrender or partial Surrenders youmake.

When We Will Make Payments

We usually pay the amounts of any full Surrender, partial Surrender, Death Benefit Amount Payable, loans,or settlement options within seven calendar days after we receive all applicable Written Notices and/or due proofs ofdeath. However, we can postpone such payments if:

• the NYSE is closed, other than customary weekend and holiday closings, or trading on the NYSE isrestricted as determined by the SEC; or

• the SEC permits, by an order, the postponement for the protection of Policy Owners; or

• the SEC determines that an emergency exists that would make the disposal of securities held in theVariable Account or the determination of their value not reasonably practicable.

If you have submitted a recent check or draft, we have the right to defer payment of a full Surrender, apartial Surrender, Death Benefit Amount Payable, or payments under a settlement option until such check or drafthas been honored.

If mandated under applicable law, we may be required to reject a premium payment and/or otherwise blockaccess to a Policy Owner’s account and thereby refuse to pay any request for transfers, partial Surrenders, a fullSurrender, loans, or death benefits. We may also be required to provide additional information about you, theInsured, your Beneficiary, or your account to government regulators. Once blocked, monies would be held in thataccount until instructions are received from the appropriate regulator.

We have the right to defer payment of any full Surrender, partial Surrender, Death Benefit Amount Payable,loans, or settlement options from the Fixed Account for up to six months from the date we receive your writtenrequest.

Transfers

You may make transfers from the Subaccounts or from the Fixed Account, subject to the conditions statedbelow. You may not make any transfers from the loan account. We determine the amount you have available fortransfers at the end of the Business Day when we receive your transfer request. We may modify or revoke thetransfer privilege at any time. The following features apply to transfers under the Policy:

• You may make an unlimited number of transfers in a Policy year from and among the Subaccounts(subject to the “Policy and Procedures Regarding Disruptive Trading and Market Timing” sectionbelow).

• You may only make one transfer each Policy year from the Fixed Account (unless you choose dollarcost averaging).

• You may request transfers in writing (in a form we accept), or by telephone. You should send writtenrequests to the Service Center.

• For Subaccount transfers, you must transfer at least the lesser of $250, or the total value in theSubaccount.

• For Fixed Account transfers, you may not transfer more than 25% of the value in the Fixed Account,unless the balance after the transfer is less than $250, in which case the entire amount will betransferred.

• We charge $25 for the 13th and each additional transfer during a Policy year, and unless you instruct usotherwise we deduct the transfer charge from the Subaccounts and Fixed Account on a pro-rata basis.

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Any unused free transfers do not carry over to the next Policy year. Transfers we affect on theReallocation Date, and transfers resulting from loans, dollar cost averaging, and death benefitprocessing are not treated as transfers for the purpose of assessing the transfer charge.

• We consider each written or telephone request to be a single transfer, regardless of the number ofSubaccounts (or Fixed Account) involved.

• We will price complete transfer requests that we receive at our Service Center before the NYSE closesfor regular trading (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the AccumulationUnit value determined at the close of that regular trading session of the NYSE. If we receive yourcomplete transfer request after the close of regular trading on the NYSE, we will price the transferrequest using the Accumulation Unit value determined at the close of the next regular trading session ofthe NYSE.

We reserve the right to modify, restrict, suspend or eliminate transfer privileges at any time, for any class ofPolicies, for any reason.

Third Party Transfers

If you authorize a third party to transact transfers on your behalf, we will honor their transfer instructions, solong as they comply with our administrative systems, rules and procedures, which we may modify or rescind at anytime. However, you may not authorize a registered representative or an agent to transact transfers on yourbehalf. We take no responsibility for any third party asset allocation program. Please note that any fees and chargesassessed for third party asset allocation services are separate and distinct from the Policy fees and charges set forthin this prospectus. We neither recommend nor discourage the use of asset allocation services.

Telephone Transfers

Your Policy, as applied for and issued, will automatically receive telephone transfer privileges unless youprovide other instructions. (In some states you may have to elect telephone transfers.) To make a telephone transfer,you must call the Service Center toll-free at 1-877-376-8008, open between 8:00 a.m. and 6:00 p.m. Eastern Time.Any telephone transfer requests directed to another number may not be considered received at our Service Center.

Please note the following regarding telephone transfers:

• We are not liable for any loss, damage, cost or expense from complying with telephone instructions wereasonably believe to be authentic. You bear the risk of any such loss.

• We will employ reasonable procedures to confirm that telephone instructions are genuine.

• Such procedures may include requiring forms of personal identification prior to acting upon telephoneinstructions, providing written confirmation of transactions to you, and/or tape recording telephoneinstructions received from you.

• If we do not employ reasonable confirmation procedures, we may be liable for losses due tounauthorized or fraudulent instructions.

We will price any complete telephone transfer request that we receive at the Service Center before theNYSE closes for regular trading (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time) using the AccumulationUnit value determined at the end of that regular trading session of the NYSE. We cannot guarantee that telephonetransfer transactions will always be available. For example, our Service Center may be closed during severe weatheremergencies or there may be interruptions in telephone service or problems with computer systems that are beyondour control. Outages or slowdowns may prevent or delay our receipt of your request. If the volume of calls isunusually high, we might not have someone immediately available to receive your order. Although we have takenprecautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances.

The corresponding Portfolio of any Subaccount determines its net asset value per each share once daily, asof the close of the regular business session of the NYSE (usually, 4:00 p.m. Eastern Time, 1:00 p.m. Pacific Time),which coincides with the end of each Business Day. Therefore, we will price any transfer request we receive afterthe close of the regular business session of the NYSE, on any day the NYSE is open for regular trading, using thenet asset value for each share of the applicable Portfolio determined as of the close of the next regular businesssession of the NYSE.

We reserve the right to modify, restrict, suspend or eliminate the transfer privileges (including the telephonetransfer facility) at any time, for any class of Policies, for any reason.

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Policy and Procedures Regarding Disruptive Trading and Market Timing

Statement of Policy. This Policy is not designed for use by organizations or individuals engaged in markettiming or for use by investors who make frequent transfers, programmed transfers, transfers into and then out of aSubaccount in a short period of time, or transfers of large amounts at one time (“Disruptive Trading”).

Market timing and other kinds of Disruptive Trading can increase your investment risks and have harmfuleffects for you, for other Policy Owners, for the underlying Portfolios, and for other persons who have materialrights under the Policy, such as Insureds and beneficiaries. These risks and harmful effects include:

• dilution of the interests of long-term investors in a Subaccount if market timers manage to transfer intoan underlying Portfolio at prices that are below the true value or to transfer out of the underlyingPortfolio at prices that are above the true value of the underlying Portfolio’s investments (some markettimers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”);

• reduced investment performance due to adverse effects on Portfolio management by:O impeding a Portfolio manager’s ability to sustain an investment objective;O causing the underlying Portfolio to maintain a higher level of cash than would otherwise be the

case; orO causing an underlying Portfolio to liquidate investments prematurely (or otherwise at an

inopportune time) in order to pay partial Surrenders or transfers out of the underlying Portfolio;and

• increased costs to you in the form of increased brokerage and administrative expenses. These costs areborne by all Policy Owners invested in those Subaccounts, not just those making the transfers.

Policy Against Disruptive Trading. We have adopted internal policies and procedures intended to detectand deter market timing and other forms of Disruptive Trading. We do not make special arrangements or grantexceptions or waivers to accommodate any persons or class of persons with regard to these internal policies andprocedures. Do not invest with us if you intend to conduct market timing or potentially Disruptive Trading.

For these purposes, we do not include transfers made pursuant to Dollar Cost Averaging or Automatic AssetRebalancing.

Detection. We monitor the transfer activities of Owners in order to detect market timing and other forms ofDisruptive Trading activity. However, despite our monitoring we may not be able to detect or halt all DisruptiveTrading activity. Our ability to detect Disruptive Trading may be limited by operational or technological systems, aswell as by our ability to predict strategies employed by market timers to avoid detection. As a result, despite ourefforts, there is no assurance that we will be able to identify and curtail all Disruptive Trading by such PolicyOwners or intermediaries acting on their behalf.

In addition, because other insurance companies (and retirement plans) with different market timing policiesand procedures may invest in the underlying Portfolios, we cannot guarantee that all harmful trading will be detectedor that an underlying Portfolio will not suffer harm from Disruptive Trading in the Subaccounts of variable productsissued by these other insurance companies (or retirement plans) that invest in the underlying Portfolios.

As a result, to the extent we are not able to detect Disruptive Trading activity, or other insurance companies(or retirement plans) fail to detect such activity, it is possible that a market timer may be able to engage in DisruptiveTrading transactions that may interfere with underlying Portfolio management and cause you to experiencedetrimental effects such as increased costs, lower performance and a dilution of your interest in a underlyingPortfolio.

Deterrence. We impose limits on transfer activity within the Policy in order to deter Disruptive Trading.

We will accept the following transfers only if the order is sent to us with an original signature and by firstclass U.S. Mail:

• transfers in excess of $250,000 per Policy, per day; and• transfers into or out of the following Subaccounts in excess of $50,000 per Policy, per day:

• American Funds Insurance Series Global Growth Fund;• American Funds Insurance Series Global Growth & Income Fund;• American Funds Insurance Series Growth—Income Fund;• American Funds Insurance Series International Fund;• Deutsche Global Small Cap VIP;• Deutsche CROCI® International VIP; and• PIMCO VIT Foreign Bond Portfolio (U.S. Dollar-Hedged).

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If you send a transfer request in excess of these restrictions by any other method (such as fax, phone, orovernight mail), we will not honor your request.

If we identify suspicious transfer activity, we will advise you in writing that we are monitoring your transferactivity and that we will impose restrictions if we identify a pattern of Disruptive Trading activity. If we identifysuch a pattern as a result of continued monitoring, we will notify you in writing that all future transfers must berequested through first class U.S. Mail. This means that we would accept only written transfer requests with anoriginal signature transmitted to us only by first class U.S. mail. We may also restrict the transfer privileges of othersacting on your behalf, including your registered representative or an asset allocation or investment advisory service.

To further deter any market timing and Disruptive Trading activities, we may at any time and without priornotice:

• terminate all telephone, website, email or fax transfer privileges;• limit the total number of transfers;• place further limits on the dollar amount that may be transferred;• require a minimum period of time between transfers; or• refuse transfer requests from intermediaries acting on behalf of you.

As a result of our ability to impose these restrictions to discourage market timing and other forms ofDisruptive Trading, some Policy Owners may be able to market time through the Policy, while others would bear theharm associated with the timing.

We reserve the right to reject any premium payment or transfer request from any person without priornotice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on anunderlying Portfolio’s operations, or (2) if an underlying Portfolio would reject or has rejected our purchase order, orhas instructed us not to allow that purchase or transfer, or (3) you have a history of large or frequent transfers. Wemay impose other restrictions on transfers, or even prohibit transfers for any Policy Owner who, in our view, hasabused, or appears likely to abuse, the transfer privilege. We also reserve the right to reverse a potentially harmfultransfer if an underlying Portfolio refuses or reverses our order; in such instances some Policy Owners may betreated differently than others. For all of these purposes, we may aggregate two or more variable insurance productsthat we believe are connected.

In addition to our internal policies and procedures, we will administer your Policy to comply with anyapplicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement,administer, and charge you for any fee or restriction, including redemption fees, imposed by any underlyingPortfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that weare unable to purchase or redeem shares of any of the underlying Portfolios.

Under our current policies and procedures, we do not:

• impose redemption fees on transfers;• expressly limit the number, size or frequency of transfers in a given period (except for certain

Subaccounts listed above where transfers that exceed a certain size are prohibited); or• allow a certain number of transfers in a given period.

Redemption fees, other transfer limits, and other procedures or restrictions may be more or less successfulthan ours in deterring market timing or other forms of Disruptive Trading and in preventing or limiting harm fromsuch trading.

We may revise our policies and procedures in our sole discretion at any time and without prior notice, as wedeem necessary or appropriate (1) to better detect and deter market timing or other Disruptive Trading if we discoverthat our current procedures do not adequately curtail such activity, (2) to comply with state or federal regulatoryrequirements, or (3) to impose additional or alternative restrictions on Owners engaging in frequent transfer activityamong the underlying Portfolios under the Policy. The actions we take will be based on policies and procedures thatwe apply uniformly to all Policy Owners.

Underlying Portfolio Frequent Trading Policies. The underlying Portfolios may have adopted their ownpolicies and procedures with respect to frequent purchases and redemptions of their respective shares. Theprospectuses for the underlying Portfolios describe any such policies and procedures. The frequent trading policiesand procedures of one underlying Portfolio may be different, and more or less restrictive, than the frequent tradingpolicies and procedures of another underlying Portfolio and the policies and procedures we have adopted for thePolicy to discourage market timing and other programmed, large, frequent, or short-term transfers.

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You should be aware that, as required by SEC regulation, we have entered into a written agreementwith each underlying fund or principal underwriter that obligates us to provide the fund, upon writtenrequest, with information about you and your trading activities in the fund’s Portfolios. In addition, we areobligated to execute instructions from the Funds that may require us to restrict or prohibit your investmentin a specific Portfolio if the fund identifies you as violating the frequent trading policies that the fund hasestablished for that Portfolio.

If we receive a premium payment from you with instructions to allocate it into a fund that has directed us torestrict or prohibit your trades into the fund, then we will request new allocation instructions from you. If yourequest a transfer into a fund that has directed us to restrict or prohibit your trades, then we will not effect thetransfer.

Omnibus Order. Policy Owners and other persons with material rights under the Policy also should beaware that the purchase and redemption orders received by the underlying Portfolios generally are “omnibus” ordersfrom intermediaries such as retirement plans and separate accounts funding variable insurance products. Theomnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participantsand individual Owners of variable insurance products. The omnibus nature of these orders may limit the underlyingPortfolios’ ability to apply their respective frequent trading policies and procedures. We cannot guarantee that theunderlying Portfolios will not be harmed by transfer activity relating to the retirement plans or other insurancecompanies that may invest in the underlying Portfolios. These other insurance companies are responsible for theirown policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfullydiscourage harmful transfer activity, it will affect other Owners of underlying Portfolio shares, as well as the Ownersof all of the variable annuity or life insurance policies, including ours, whose variable investment options correspondto the affected underlying Portfolios. In addition, if an underlying Portfolio believes that an omnibus order wesubmit may reflect one or more transfer requests from Owners engaged in market timing and other programmed,large, frequent, or short-term transfers, the underlying Portfolio may reject the entire omnibus order and therebydelay or prevent us from implementing your request.

Automatic Asset Rebalancing Program

Under the Automatic Asset Rebalancing (“AAR”) program, we will automatically transfer amounts amongthe Subaccounts each quarter to reflect your most recent instructions for allocating Premiums. The Automatic AssetRebalancing program may not be used to transfer amounts into and out of the Fixed Account. No transfer fees apply,and transfers under the AAR program are not included when we determine the number of free transfers permittedeach year. For more information, see the SAI. The AAR program is not available if you elect to enroll in the DollarCost Averaging program discussed below.

Dollar Cost Averaging Program

Under the Dollar Cost Averaging Program, you may authorize us to transfer a fixed dollar amount atmonthly intervals from the Fixed Account to one or more Subaccounts. You may designate up to eight Subaccountsto receive the transfers.

You may enroll in the Dollar Cost Averaging program at any time by submitting a request to the ServiceCenter. We make transfers on the same day of every month on your Monthly Due Date. Transfers under thisprogram are not included when we determine the number of free transfers permitted each year. We must receiveyour request at least five Business Days before the transfer date for your transfers to begin on that date. When youenroll in the dollar cost averaging program, your total Fixed Account Value must be at least equal to the amount youdesignate to be transferred on each transfer date. Transfers from the Fixed Account under this program must be atleast $100. If on any transfer date the amount remaining in the Fixed Account is less than the amount designated tobe transferred, the entire balance will be transferred out of the Fixed Account and applied pro-rata to the selectedSubaccounts, and the dollar cost averaging request will expire. The Dollar Cost Averaging program is not availableif you elect to enroll in the Automatic Asset Rebalancing program discussed above.

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Loans

While the Policy is in force, you may borrow money from us using the Policy as the only security for theloan. A loan that is taken from, or secured by, a Policy may have tax consequences. See the “Federal TaxConsiderations” section.

Loan Conditions: • You may take a loan against the Policy for amounts up to the Cash Surrender Value,as calculated at the end of the Business Day on which we receive your signedrequest, minus loan interest you would have to pay by the next Policy anniversary,and minus three Monthly Deductions, or the number of Monthly Deductions dueprior to the next Policy anniversary, if fewer.

• To secure the loan, we transfer an amount equal to the loan from the Subaccountsand Fixed Account to the loan account, which is a part of our General Account. Ifyour loan request does not specify any allocation instructions, we will transfer theloan from the Subaccounts and the Fixed Account on a pro-rata basis (that is,according to the percentage of Contract Value contained in each Subaccount and theFixed Account).

• Amounts in the loan account earn interest at the guaranteed minimum rate of2.5% per year, compounded annually. We may credit the loan account with aninterest rate different from the Fixed Account.

• We normally pay the amount of the loan within seven calendar days after we receivea proper loan request at the Service Center. We may postpone payment of loansunder certain conditions. See the “Full and Partial Surrenders – When We Will MakePayments” section.

• We charge you interest on your loan. The loan interest rate for Policy years 1 through15 is 4.5% per year, compounded annually. The loan interest rate for Policy years 16and beyond is 2.5% per year, compounded annually. This loan interest rate isguaranteed never to exceed 6.5% per year, compounded annually. Interest accruesdaily and is due and payable at the end of each Policy year, or on the date of any loanincrease or repayment, if earlier. Unpaid interest becomes part of the OutstandingLoan Amount and accrues interest daily.

• You may repay all or part of your Outstanding Loan Amount at any time by sendingthe repayment to the Service Center. Loan repayments must be at least $25, andmust be clearly marked as “loan repayment” or they will be credited asPremiums.

• Upon each loan repayment, we will transfer an amount equal to the loan repaymentfrom the loan account to the fixed and/or Subaccounts according to your currentpremium allocation instructions.

• We deduct any Outstanding Loan Amount (including any interest you owe), from theCash Surrender Value and from the Death Benefit on the Insured’s death.

• Unpaid loan amounts (including any interest you owe) will reduce the CashSurrender Value and possibly cause your Policy to fail the Grace Premium Test,which may result in the Policy entering the 61-day grace period. See “Policy Lapseand Reinstatement.”

Effects of Policy Loans

Risk of Policy Lapse. There are risks involved in taking a Policy loan, one of which is an increased potentialfor the Policy to Lapse. A Policy loan, whether or not repaid, affects the Policy, the Contract Value and the deathbenefit. We deduct any Outstanding Loan Amount (including any interest you owe on the loans) from the proceedspayable upon the death of the Insured and from the Cash Surrender Value. Repaying the loan causes the DeathBenefit Amount Payable and Cash Surrender Value to increase by the amount of the repayment. We will notify you(or any assignee of record) if the sum of your Outstanding Loan Amount (including any interest you owe on theloans) is more than the Contract Value. If you do not submit a sufficient payment during the 61-day grace period,your Policy will Lapse without value, insurance coverage will no longer be in effect, and you will receive nobenefits.

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Risk of Investment Performance. As long as a loan is outstanding, we hold an amount equal to theOutstanding Loan Amount in the loan account. The amount in the loan account is not affected by the VariableAccount’s investment performance and may not be credited with the same interest rates currently accruing on theFixed Account. Amounts transferred from the Variable Account to the loan account will affect the Contract Valuebecause we credit such amounts with an interest rate we declare rather than a rate of return reflecting the investmentresults of the Variable Account.

Tax Risks. The federal tax consequences of a Policy loan are uncertain. A Policy loan may have adverse taxconsequences. You should review the “Federal Tax Considerations” section of this prospectus carefully, especiallyif you are purchasing this Policy with the intention of taking Policy loans or a partial Surrender at any time inthe future, and/or you intend to keep the Policy in force after the Insured reaches age 100. You should consulta qualified tax adviser before taking out a Policy loan.

Policy Lapse and Reinstatement

Lapse

The following flow chart shows the process used to determine if the Policy will enter the 61-day graceperiod:

After deducting the monthlydeduction then due, is theCash Surrender Valuepositive?

Is the Contract Valueminus any outstandingPolicy loan amountpositive?**

Grace Premium Test:Does the total premiumspaid, minus total partialsurrenders taken, minusthe outstanding policyloan amount equal orexceed the cumulativeminimum premiumspaid?**

Policy stays inforce

Yes

Yes

YesNo

Policy enters 61-day grace period

No

No

** These two conditions make up the Grace Exemption Test. If the answer to both questions is “Yes,” then the Grace Exemption Test ispassed.

If your Policy enters into a grace period, we will mail a notice to your last known address and to anyassignee of record. We will mail the notice at least 61 days before the end of the grace period. The notice willspecify the minimum payment that you must pay to prevent your Policy from lapsing and the final date by which wemust receive the payment at the Service Center in order to keep the Policy from lapsing. If we do not receive thespecified minimum payment by the end of the grace period, all coverage under the Policy will terminate.

It is possible that we may require you to pay an additional premium (over and above the premium specifiedin the Lapse notice) if the investment performance of your Policy is unfavorable during the grace period.

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In order to prevent your Policy from lapsing, the premium payment you pay must be large enough to causeeither one of the following conditions:

Condition One: After deducting the Monthly Deduction due on the first two Monthly Due Dates followingthe first day of the grace period, the Cash Surrender Value would be positive.

Condition Two: The Policy passes the Grace Premium Test after two more minimum Premiums are addedto the cumulative minimum Premiums following the first date of the grace period.

Reinstatement

We will consider reinstating a Lapsed Policy within three years, unless otherwise required by state law, afterthe Policy enters a grace period that ends with a Lapse (and prior to the Maturity Date).

If your Policy has Lapsed, you must do the following to reinstate the Policy:

• complete a reinstatement application;

• meet both Condition One and Two below.

Condition One: You must pay sufficient premium payments so that the Policy has a positive CashSurrender Value after deducting all Monthly Deductions due from the first day of the grace period to theeffective date of the reinstatement of the Policy, plus pay for the Monthly Deductions on the three due datesfollowing reinstatement; and

Condition Two: You must pay sufficient premium payments so that the Grace Exemption Test (describedin the diagram above) is passed as of the effective date of the reinstatement of the Policy, plus pay anadditional three minimum premium payments.

You must also provide evidence of insurability to demonstrate:

• that there has been no material change in the health of the Insured since the Issue Date; and

• that there has been no material change in the health of any natural persons covered under any ridersattached to this Policy since that rider’s Issue Date.

We will not reinstate any indebtedness unless required by state law.

We will not consider your request for reinstatement unless you have made sufficient premium payments andprovided the requested evidence of insurability. Until we have received all required Premiums and evidence ofinsurability, we will hold your Premiums in the Reinstatement Suspense Account without interest. If yourreinstatement Premiums have been in our Reinstatement Suspense Account for more than 60 days, we will send anotice to your address of record reminding you that your Policy will remain Lapsed until you send in the requireditems and we approve your application. After we have held your reinstatement Premiums in our ReinstatementSuspense Account for 90 days, we will return your reinstatement Premiums to you and you will be required to re-apply for reinstatement of your Policy.

We may decline a request for reinstatement. We will not reinstate a Policy that has been Surrendered for theCash Surrender Value or that had an Outstanding Loan Amount on the date of Lapse.

Federal Tax Considerations

The following summary provides a general description of the federal income tax considerations associatedwith a Policy and does not purport to be complete or to cover all situations. This discussion is not intended as taxadvice. Please consult counsel or other qualified tax advisors for more complete information. We base thisdiscussion on our understanding of the present federal income tax laws as they are currently interpreted by theInternal Revenue Service (the “IRS”). Federal income tax laws and the current interpretations by the IRS maychange.

Tax Status of the Policy

A Policy must satisfy certain requirements set forth in the Tax Code in order to qualify as a life insurancecontract for federal income tax purposes and to receive the tax treatment normally accorded life insurance contractsunder federal tax law. There is limited guidance as to how these requirements are to be applied. Nevertheless, webelieve that a Policy issued on a standard Premium Class basis should satisfy the applicable Tax Code requirements.There is, however, some uncertainty about the application of the Tax Code requirements if a Policy is issued on aspecial Premium Class basis, particularly if the full amount of Premiums permitted under the Policy is paid. If it is

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subsequently determined that a Policy does not satisfy the applicable requirements, we may take appropriate steps tobring the Policy into compliance with such requirements and we reserve the right to restrict Policy transactions andmake other changes to your Policy that may be necessary in order to do so.

In some circumstances, Owners of variable life insurance contracts who retain excessive control over theinvestment of the underlying Portfolio assets of the Variable Account may be treated as the Owners of those assetsand may be subject to tax on income produced by those assets. Although there is limited published guidance in thisarea and it does not address certain aspects of the Policies, we believe that the Owner of a Policy should not betreated as the Owner of the underlying assets. We reserve the right to modify the Policies to bring them intoconformity with applicable standards should such modification be necessary to prevent Owners of the Policies frombeing treated as the Owners of the underlying Portfolio assets of the Variable Account.

In addition, the Tax Code requires that the investments of the Variable Account be “adequately diversified”in order to treat the Policy as a life insurance contract for federal income tax purposes. We intend that the VariableAccount, through the Portfolios, will satisfy these diversification requirements.

The following discussion assumes that the Policy will qualify as a life insurance contract for federal incometax purposes.

Tax Treatment of Policy Benefits

In General. We believe that the death benefit under a Policy generally should be excludible from theBeneficiary’s gross income. Federal, state and local transfer, and other tax consequences of Ownership or receipt ofPolicy proceeds depend on your circumstances and the Beneficiary’s circumstances. You should consult a taxadvisor on these consequences.

Generally, you will not be deemed to be in constructive receipt of the Contract Value. When distributionsfrom a Policy occur, or when loans are taken out from or secured by (e.g., by assignment), a Policy, the taxconsequences depend on whether the Policy is classified as a “Modified Endowment Contract.”

Modified Endowment Contracts. Under the Tax Code, certain life insurance contracts are classified as“Modified Endowment Contracts,” (“MEC”) with less favorable income tax treatment than other life insurancecontracts. Due to the flexibility of the Policies as to Premiums and benefits, the individual circumstances of eachPolicy will determine whether it is classified as a MEC. In general a Policy will be classified as a MEC if the amountof Premiums paid into the Policy causes the Policy to fail the “7-pay test.” A Policy will fail the 7-pay test if at anytime in the first seven Policy years, the amount paid into the Policy exceeds the sum of the level Premiums thatwould have been paid at that point under a Policy that provided for paid-up future benefits after the payment ofseven level annual payments.

If there is a reduction in the benefits under the Policy during the first seven Policy years, for example, as aresult of a partial Surrender, the 7-pay test will have to be reapplied as if the Policy had originally been issued at thereduced Face Amount. If there is a “material change” in the Policy’s benefits or other terms, even after the firstseven Policy years, the Policy will have to be retested as if it were a newly issued Policy. A material change canoccur, for example, when there is an increase in the death benefit that is due to the payment of an unnecessarypremium. Unnecessary Premiums are Premiums paid into the Policy which are not needed in order to provide adeath benefit equal to the lowest death benefit that was payable in the first seven Policy years. To prevent yourPolicy from becoming a MEC it may be necessary to limit premium payments or to limit reductions in benefits. Acurrent or prospective Policy Owner should consult with a competent tax advisor to determine whether a Policytransaction will cause the Policy to be classified as a Modified Endowment Contract.

Upon issuance of your Policy, we will notify you if your Policy is classified as a MEC based on the InitialPremium we receive. If any future payment we receive would cause your Policy to become a MEC, you will benotified. We will not invest that premium in the Policy until you notify us that you want to continue your Policy as aMEC.

Distributions (other than Death Benefits) from Modified Endowment Contracts (“MEC”). Policiesclassified as MECs are subject to the following tax rules:

• All distributions other than death benefits from a MEC, including distributions upon Surrender and partialSurrender, will be treated first as distributions of gain taxable as ordinary income and as tax-free recovery ofthe Policy Owner’s investment in the Policy only after all gain has been distributed.

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

PAGE 45

• A 10% additional income tax is imposed on the amount included in income except where thedistribution or loan is made when you have Attained Age 59 1/2 or are disabled, or where the distributionis part of a series of substantially equal periodic payments for your life (or life expectancy) or the jointlives (or joint life expectancies) of you, and the Beneficiary.

• If a Policy becomes a MEC, distributions that occur during the Policy year will be taxed as distributionsfrom a MEC. In addition, distributions from a Policy within two years before it becomes a MEC will betaxed in this manner. This means that a distribution from a Policy that is not a MEC at the time whenthe distribution is made could later become taxable as a distribution from a MEC.

Distributions (other than Death Benefits) from Policies that are not Modified Endowment Contracts.Distributions other than Death Benefits from a Policy that is not a MEC are generally treated first as a recovery ofyour investment in the Policy, and as taxable income after the recovery of all investment in the Policy. However,certain distributions which must be made in order to enable the Policy to continue to qualify as a life insurancecontract for federal income tax purposes if Policy benefits are reduced during the first 15 Policy years may be treatedin whole or in part as ordinary income subject to tax.

Loans from or secured by a Policy that is not a MEC are generally not treated as distributions. However, thetax consequences associated with Policy loans from this Policy are less clear because the difference between theinterest rate we charge on Policy loans and the rate we credit to the loan account results in a net cost to you thatcould be viewed as negligible and, as a result, it is possible that such a loan could be treated as, in substance, ataxable distribution. You should consult a tax advisor about such loans.

Finally, neither distributions from nor loans from or secured by a Policy that is not a MEC are subject to the10% additional tax.

Investment in the Policy. Your investment in the Policy is generally your aggregate Premiums. When adistribution is taken from the Policy, your investment in the Policy is reduced by the amount of the distribution thatis tax-free.

Policy Loans. If a loan from a Policy is outstanding when the Policy is cancelled or Lapses, the amount ofthe outstanding indebtedness will be added to the amount distributed and will be taxed accordingly. In general,interest you pay on a loan from a Policy will not be deductible. Before taking out a Policy loan, you should consult atax advisor as to the tax consequences. If your Policy has a large amount of indebtedness when it Lapses or isSurrendered, you might owe taxes that are much more than the Surrender Value you receive.

This Policy may be purchased with the intention of accumulating cash value on a tax-free basis for someperiod (such as, until retirement) and then periodically borrowing from the Policy without allowing the Policy toLapse. The aim of this strategy is to continue borrowing from the Policy until its Contract Value is just enough topay off the Policy loans that have been taken out. Anyone contemplating taking advantage of this strategy should beaware that it involves several risks. First, this strategy will fail to achieve its goal if the Policy is a MEC or becomesa MEC after the periodic borrowing begins. Second, this strategy has not been ruled on by the Internal RevenueService or the courts and it may be subject to challenge by the IRS, since it is possible that loans under this Policywill be treated as taxable distributions. Finally, there is a significant risk that poor investment performance, togetherwith ongoing deductions for insurance charges, will lead to a substantial decline in the Contract Value that couldresult in the Policy lapsing. In that event, assuming Policy loans have not already been subject to tax as distributions,a significant tax liability could arise when the Lapse occurs. Anyone considering using the Policy as a source of tax-free income by taking out Policy loans should consult a competent tax advisor before purchasing the Policy aboutthe tax risks inherent in such a strategy.

Multiple Policies. All MECs that we issue (or that our affiliates issue) to the same Owner during anycalendar year are treated as one MEC for purposes of determining the amount includible in the Owner’s incomewhen a taxable distribution occurs.

Withholding. To the extent that Policy distributions are taxable, they are generally subject to withholdingfor the recipient’s federal income tax liability. Recipients can generally elect, however, not to have tax withheldfrom distributions.

Life Insurance Purchases by Residents of Puerto Rico. The Internal Revenue Service has announced thatincome received by residents of Puerto Rico under life insurance contracts issued by a Puerto Rico branch of aUnited States life insurance company is U.S.-source income that is generally subject to United States federal incometax.

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Other Policy Owner Tax Matters. The tax consequences of continuing the Policy after the Insured reachesage 100 are unclear. The IRS has issued Revenue Procedure 2010-28 providing a safe harbor concerning theapplication of Sections 7702 and 7702A to life insurance contracts that have mortality guarantees based on the 2001CSO Table and which may continue in force after an insured attains age 100. If a contract satisfies all therequirements of Sections 7702 and 7702A using all of the Age 100 Safe Harbor Testing Method requirements setforth in Rev. Proc. 2010-28, the IRS will not challenge the qualification of that contract under Sections 7702 and7702A. Rev. Proc. 2010-28 also states that: “No adverse inference should be drawn with respect to the qualificationof a contract as a life insurance contract under Section 7702, or its status as not a MEC under Section 7702A, merelyby reason of a failure to satisfy all of the requirements of [the Age 100 Safe Harbor].

You should consult a tax advisor if you intend to keep the Policy in-force after the Insured reaches age 100.It is possible that the Internal Revenue Service might tax you as though you have Surrendered the Policywhen the Insured reaches age 100, even if you keep the Policy in force. This could potentially result in a verylarge tax liability for you. The tax liability might be much larger than the Cash Surrender Value of thisPolicy.

Business Uses of the Policy. The Policy may be used in various arrangements, including nonqualifieddeferred compensation or salary continuance plans, split-dollar insurance plans, executive bonus plans, retireemedical benefit plans and others. The tax consequences of such plans and business uses of the Policy may varydepending on the particular facts and circumstances of each individual arrangement and business use of the Policy.Therefore, if you are contemplating using the Policy in any arrangement the value of which depends in part on its taxconsequences, you should be sure to consult a tax advisor as to the tax attributes of the arrangement.

Employer-owned Life Insurance Contracts. Pursuant to section 101(j) of the Code, unless certaineligibility, notice and consent requirements are satisfied, the amount excludible as a death benefit payment under anemployer-owned life insurance contract will generally be limited to the Premiums paid for such contract (althoughcertain exceptions may apply in specific circumstances). An employer-owned life insurance contract is a lifeinsurance contract owned by an employer that insures an employee of the employer and where the employer is adirect or indirect beneficiary under such contract. It is the employer’s responsibility to verify the eligibility of theintended insured under employer-owned life insurance contracts and to provide the notices and obtain the consentsrequired by section 101(j). These requirements generally apply to employer-owned life insurance contracts issued ormaterially modified after August 17, 2006. A tax advisor should be consulted by anyone considering the purchase ormodification of an employer-owned life insurance contract.

Non-Individual Owners and Business Beneficiaries of Policies. If a Policy is owned or held by acorporation, trust or other non-natural person, this could jeopardize some (or all) of such entity’s interest deductionunder Code Section 264, even where such entity’s indebtedness is in no way connected to the Policy unless one ofthe exceptions under Code Section 264(f)(4) applies. In addition, under Section 264(f)(5), if a business (other than asole proprietorship) is directly or indirectly a beneficiary of a Policy, this Policy could be treated as held by thebusiness for purposes of the Section 264(f) entity-holder rules. Therefore, it would be advisable to consult with aqualified tax advisor before any non-natural person is made an Owner or holder of a Policy, or before a business(other than a sole proprietorship) is made a beneficiary of a Policy.

In Revenue Ruling 2011-9, the IRS held that the status of an Insured as an employee “at the time firstcovered” for purposes of Section 264(f)(4) does not carry over from a policy given up in a Section 1035 tax-freeexchange to a policy received in such an exchange. Therefore, the pro rata interest expense disallowance exceptionof Section 264(f)(4) does not apply to new policies received in Section 1035 tax-free exchanges unless such policiesalso qualify for the exception provided by Section 264(f)(4) of the Code.

Split-Dollar Arrangements. The Sarbanes-Oxley Act of 2002 prohibits, with limited exceptions, publicly-traded companies, including non-U.S. companies that have securities listed on exchanges in the United States, fromextending, directly or through a subsidiary, many types of personal loans to their directors or executive officers. It ispossible that this prohibition may be interpreted as applying to split-dollar life insurance policies for directors andexecutive officers of such companies, since such insurance arguably can be viewed as involving a loan from theemployer for at least some purposes.

Although the prohibition on loans is generally effective as of July 30, 2002, there is an exception for loansoutstanding as of the date of enactment, so long as there is no material modification to the loan terms and the loan isnot renewed after July 30, 2002. Any affected business contemplating the payment of a premium on an existingPolicy, or the purchase of a new Policy, in connection with a split-dollar life insurance arrangement should consultlegal counsel.

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In addition, the IRS and Treasury have issued guidance relating to split-dollar insurance arrangements thatsignificantly affect the tax treatment of such arrangements. This guidance affects all split-dollar arrangements, notjust those involving publicly-traded companies. Any business contemplating the purchase of a new Policy or achange in an existing Policy should consult a tax advisor.

Estate, Gift and Generation-Skipping Transfer Taxes. The transfer of the Policy or designation of abeneficiary may have federal, state, and/or local transfer and inheritance tax consequences, including the impositionof gift, estate, and generation-skipping transfer taxes. For example, when the Insured dies, the death proceeds willgenerally be includable in the Owner’s estate for purposes of federal estate tax if the Insured owned the Policy. If theOwner was not the Insured, the fair market value of the Policy would be included in the Owner’s estate upon theOwner’s death. The Policy would not be includable in the Insured’s estate if the Insured did not retain incidents ofOwnership at death or had given up Ownership more than three years before death.

Moreover, under certain circumstances, the Tax Code may impose a “generation skipping transfer tax”when all or part of a life insurance policy is transferred to, or a death benefit is paid to, an individual two or moregenerations younger than the Owner. Regulations issued under the Tax Code may require us to deduct the tax fromyour Policy, or from any applicable payment, and pay it directly to the IRS.

Qualified tax advisers should be consulted concerning the estate and gift tax consequences of PolicyOwnership and distributions under federal, state and local law. The individual situation of each Owner or beneficiarywill determine the extent, if any, to which federal, state, and local transfer and inheritance taxes may be imposed andhow Ownership or receipt of Policy proceeds will be treated for purposes of federal, state and local estate,inheritance, generation-skipping and other taxes.

The American Taxpayer Relief Act of 2012 (“ATRA”). ATRA permanently establishes the federal estatetax, gift tax and generation-skipping transfer tax exemptions at $5,000,000, indexed for inflation. ATRA alsopermanently establishes the maximum federal estate tax, gift tax and generation-skipping transfer tax rate at 40%.ATRA allows a deceased spouse’s estate to transfer any unused portion of the deceased spouse’s exemption amountto a surviving spouse. ATRA also unified the estate tax, gift tax and generation skipping transfer tax exemptions andprovided for indexing of these exemptions for inflation beginning in 2012.

The Health Care and Education Reconciliation Act of 2010 (the “Act”). The Act imposes a 3.8% tax intaxable years beginning in 2013 on an amount equal to the lesser of (a) “net investment income”; or (b) the excess ofa taxpayer’s modified adjusted gross income over a specified income threshold ($250,000 for married couples filingjointly, $125,000 for married couples filing separately, and $200,000 for everyone else). Regulations issued by theIRS define “net investment income” for this purpose as including taxable distributions from life insurance policiesover allowable deductions, as such term is defined in the Act. Please consult the impact of the Act on you with acompetent tax advisor.

Accelerated Benefit Rider for Terminal Illness. The tax consequences associated with adding or electing toreceive benefits under the Accelerated Benefit Rider for Terminal Illness are unclear. A tax advisor should beconsulted about the tax consequences of adding this rider to a Policy or requesting payment under the rider.

Alternative Minimum Tax. There may also be an indirect tax upon the income in the Policy or the proceedsof a Policy under the federal corporate alternative minimum tax, if the Policy Owner is subject to that tax.

Life Insurance Purchases by Nonresident Aliens and Foreign Corporations. The discussion aboveprovides general information regarding U.S. federal income tax consequences to life insurance purchasers that areU.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federalwithholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies.In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by thepurchaser’s country of citizenship or residence. Prospective purchasers are advised to consult with a qualified taxadviser regarding U.S., state, and foreign taxation with respect to a life insurance policy purchase.

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

Possible Charges for Our Taxes. At the present time, we make no charge for any federal, state or localtaxes (other than the charge for state premium taxes) that may be attributable to the Subaccounts or to the Policy. Wereserve the right to impose charges for any future taxes or economic burden we may incur.

Possible Tax Law Changes. While the likelihood of legislative changes is uncertain, there is always apossibility that the tax treatment of the Policy could change by legislation or otherwise. It is even possible that any

PAGE 48

legislative change could be retroactive (effective prior to the date of the change). Consult a tax advisor with respectto legislative developments and their effect on the Policy.

Subaccount

Additional Information

Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a distribution agreement withFarmers Financial Solutions, LLC (“FFS”), our affiliate, for the distribution and sale of the Policies. Pursuant to thisagreement, FFS serves as principal underwriter for the Policies. FFS is affiliated with Farmers through Farmers’parent that provides management-related services to the parent companies of FFS. FFS offers the Policies for salethrough its sales representatives. We reimburse FFS for certain expenses it incurs in order to pay for the distributionof the Policies.

Compensation to Broker-Dealers Selling the Policies. We pay commissions to FFS for sales of the Policiesby FFS’ sales representatives. Sales commissions may vary, but the commissions payable for Policy sales by salesrepresentatives of FFS are expected not to exceed 69% of Premiums up to a target premium set by Farmers receivedwithin the first two Policy years (we may pay additional amounts) and 5.14% of premium received in excess of thetarget premium through the 10th Policy year. After year 10, the commission is not expected to exceed 0.185% of thePolicy’s Contract Value each year. FFS may be required to return to us first year commissions if the Policy is notcontinued through the first Policy year.

Special Compensation Paid to FFS. We pay for FFS’ operating and other expenses, including overhead,legal, and accounting fees. We may also pay for certain sales expenses of FFS: sales representative trainingmaterials; marketing materials and advertising expenses; and certain other expenses of distributing the Policies. Inaddition, we contribute indirectly to the deferred compensation for FFS’ sales representatives. FFS pays its salesrepresentatives a portion of the commissions received for their sales of the Policies.

FFS’ sales representatives and their managers are also eligible for various cash benefits, such as cashproduction incentive bonuses based on aggregate sales of our variable insurance policies (including this Policy) and/or other insurance products we issue, as well as certain insurance benefits and financing arrangements. Cashproduction incentive bonuses may equate to a sizeable percentage of first year Premiums up to a target premium setby Farmers.

In addition, FFS’ sales representatives who meet certain productivity, persistency and length of servicestandards and/or their managers may be eligible for additional non-cash compensation. Non-cash compensationitems that FFS and we may provide jointly include attendance at conferences, conventions, seminars and trips(including travel, lodging and meals in connection therewith), entertainment, awards, merchandise and other similaritems. By selling this Policy, sales representatives and/or their managers may qualify for these productivity benefits.FFS’ sales representatives and managers may receive other payments from us for services that do not directlyinvolve the sale of the Policies, including payments made for the recruitment and training of personnel, productionof promotional literature and similar services.

Exclusive Access to FFS’ Distribution Network. In exchange for the amounts we pay to FFS, we receiveexclusive access to FFS’ distribution network. The amounts we pay are designed especially to encourage the sale ofour products by FFS. See the SAI for a discussion of the amounts of commissions and bonuses we have paid FFS inconnection with its exclusive offering of the Policies and other Farmers variable life products.

The prospect of receiving, or the actual receipt, of the additional compensation may provide FFS and/or itssales representatives with an incentive to recommend the Policies to prospective Owners over the sales of otherinvestments with respect to which FFS either does not receive additional compensation or receives lower levels ofadditional compensation.

Ask your sales representative for further information about the compensation your salesrepresentative and FFS may receive in connection with your purchase of a Policy. Also inquire about anyrevenue sharing arrangements that we may have with FFS, including the conflicts of interest that sucharrangements may create.

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No specific charge is assessed directly to Policy Owners or the Variable Account to cover commissions andother incentives and payments described above in connection with the distribution of the Policies. However, weintend to recoup commissions and other sales expenses through the fees and charges we deduct under the Policy andthrough other corporate revenue.

You should be aware that FFS and its sales representatives may receive different compensation or incentivesfor selling one product over another. In some cases, these payments may create an incentive for the selling firm or itssales representatives to recommend or sell this Policy to you. You may wish to take these payments into accountwhen considering and evaluating any recommendations relating to the Policy.

Legal Proceedings

Like other life insurance companies, we are involved in lawsuits that arise in the ordinary course of theCompany’s business. These actions are in various stages of discovery and development, and some seek punitive aswell as compensatory damages. In addition, we are, from time to time, involved as a party to various governmentaland administrative proceedings. While it is not possible to predict the outcome of such matters with absolutecertainty, at the present time, it appears that there are no pending or threatened lawsuits that are likely to have amaterial adverse impact on the Variable Account, on FFS’ ability to perform under its principal underwritingagreement, or on the Company’s ability to meet its obligations under the Policy.

Financial Statements

The audited financial statements of Farmers New World Life Insurance Company and of Farmers VariableLife Separate Account A are contained in the SAI. You should consider the financial statements of Farmers NewWorld Life Insurance Company as bearing only upon our ability to meet our obligations under the Policies. For afree copy of these audited financial statements and/or the SAI, please call or write to us at our Service Center.

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Table of Contents for the SAI

Page

Glossary................................................................................................................................................ 2

General Provisions ................................................................................................................................ 5The Policy ....................................................................................................................................... 5Our Right to Contest the Policy.......................................................................................................... 5Suicide Exclusion ............................................................................................................................. 5Misstatement of Age or Gender ......................................................................................................... 6Addition, Deletion or Substitution of Investments................................................................................ 6Resolving Material Conflicts ............................................................................................................. 6

Additional Information.......................................................................................................................... 7Changing Death Benefit Options ........................................................................................................ 7Payment Options .............................................................................................................................. 8Dollar Cost Averaging ...................................................................................................................... 9Automatic Asset Rebalancing Program............................................................................................... 10Subaccount Unit Value...................................................................................................................... 10Additional Information about Farmers and the Variable Account .......................................................... 11Third Party Administration Agreement ............................................................................................... 12Distribution of the Policies ................................................................................................................ 12Reports to Owners ............................................................................................................................ 13Records ........................................................................................................................................... 13Legal Matters ................................................................................................................................... 13Experts ............................................................................................................................................ 13Other Information ............................................................................................................................. 14

Financial Statements ............................................................................................................................. 14

Index to Financial Statements ................................................................................................................ F-1

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Glossary

For your convenience, we are providing a glossary of the special terms we use in this prospectus.

Accumulation UnitAn accounting unit we use to calculate Subaccountvalues. It measures the net investment results of eachof the Subaccounts.

Attained AgeThe Insured’s age on the Issue Date plus the number ofPolicy years completed since the Issue Date.

BeneficiaryThe natural person(s) or entity(ies) you select to receive theDeath Benefit Amount Payable from this Policy.

Business DayEach day that the NYSE is open for regular trading.Farmers New World Life Insurance Company is opento administer the Policy on each day the NYSE is openfor regular trading. When we use the term “BusinessDay” in this prospectus, it has the same meaning as theterm “Valuation Day” found in the Policy.

Cash Surrender ValueThe amount we will pay you if you fully Surrender thePolicy while it is in force. The Cash Surrender Valueon the date you Surrender is equal to: the ContractValue, minus any Surrender Charge, minus anyMonthly Deductions due and unpaid, and minus anyOutstanding Loan Amount.

Company (we, us, our, Farmers, FNWL)Farmers New World Life Insurance Company

Contract ValueThe sum of the values you have in the Subaccounts andthe Fixed Account. If you have a loan outstanding, theContract Value includes any amounts we hold in theloan account to secure the loan.

Death Benefit Amount PayableThe amount we will pay to the Beneficiary when wereceive proof of the Insured’s death, equal to deathbenefit in effect as of the date of the Insured’s death,minus any Monthly Deductions due and unpaid at thedate of the Insured’s death, minus any OutstandingLoan Amount, plus the amounts to be paid under theterms of any riders you added to the Policy.

Face AmountThe dollar amount of insurance selected by the Owner;used to determine the death benefit. The Face Amounton the Issue Date is set forth on the Policyspecifications page. You may increase or decrease theFace Amount under certain conditions. Certain actions

you take, such as changing the death benefit option ortaking a partial Surrender, may affect the amount of theFace Amount. The actual Death Benefit AmountPayable we pay under the Policy may be more or lessthan the Face Amount.

Fixed AccountAn option to which you can direct your Contract Valueunder the Policy. It provides a guarantee of principaland interest. The assets supporting the Fixed Accountare held in our General Account and are not part of, ordependent on, the investment performance of theVariable Account.

Fixed Account ValueThe portion of your Contract Value allocated to theFixed Account.

Fund(s)Investment companies that are registered with the SEC.This Policy allows you to invest in the portfolios of theFunds that are listed on the front page of thisprospectus.

General AccountThe account containing all of Farmers’ assets, otherthan those held in its separate accounts.

Home OfficeThe address of our Home Office is 3003—77thAvenue S.E., Mercer Island, Washington 98040.

Initial PremiumThe amount you must pay before insurance coveragebegins under this Policy.

InsuredThe natural person whose life is Insured by this Policy.

Issue AgeThe Insured’s age as of the last birthday on the IssueDate.

Issue DateThe date when life insurance coverage begins. Wemeasure Policy months, Policy years, and Policyanniversaries from the Issue Date. On the Issue Date,we place your Initial Premium (minus the premiumexpense charge) in the Fixed Account. The firstMonthly Deduction occurs on the Issue Date. Theentire Contract Value remains allocated to the FixedAccount until the Reallocation Date.

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Loan Account ValueThe portion of your Contract Value allocated to theloan account.

LapseWhen life insurance coverage ends without valuebecause you have not made a sufficient payment by theend of a 61-day grace period. On any Monthly DueDate, the Policy enters a 61-day grace period unless:(i) the Cash Surrender Value is positive, afterdeducting the Monthly Deduction that is due; or (ii) theContract Value exceeds the Outstanding Loan Amountand your Policy passes the Grace Premium Test (whichrequires that a minimum premium amount is paid).

Maturity DateThe Policy anniversary when the Insured reaches age121 and life insurance coverage under this Policy ends.The Maturity Date is shown on the Policyspecifications page.

Monthly DeductionThe amount we deduct from the Contract Value eachmonth to pay for the insurance coverage. The MonthlyDeduction includes the cost of insurance charge, themonthly administration charge, the risk charges of anyattached riders, and any monthly underwriting andsales expense charge.

Monthly Due DateThe day of each month when we determine theMonthly Deductions and deduct them from ContractValue. It is the same date each month as the Issue Date.If there is no Business Day that coincides with theIssue Date in the calendar month, the Monthly DueDate is the next Business Day.

NYSEThe New York Stock Exchange

Outstanding Loan AmountThe total amount of all outstanding Policy loans,including both principal and interest due, minus thetotal amount of all loan repayments. We deduct anamount equal to the Outstanding Loan Amount fromthe Subaccounts and the Fixed Account and place it inthe loan account as collateral for the loans. The loanaccount is part of our General Account. TheOutstanding Loan Amount, or Loan Account Value, isdefined as the “Policy Loan Balance” in the Policy.

PortfolioA series of a Fund with its own objective and policies,which represents shares of beneficial interest in aseparate Portfolio of securities and other assets.Portfolio is sometimes referred to herein as a Fund.

Premium ClassA classification that affects the cost of insurance rateand the premium required to insure an individual.

PremiumsAll payments you make under the Policy other thanloan repayments. When we use the term “premium” inthis prospectus, it generally has the same meaning as“Premium Payments” in the Policy, refers to plannedor unplanned premium payments, and means apremium without a premium expense charge applied.

Premium Expense ChargeAn amount deduced from each premium paymentbefore the remainder of the premium payment isallocated to the Subaccounts and/or Fixed Accountbased on your current allocation percentage forpremium payments. Initial Premiums are assessed thepremium expense charge, and the remainder isallocated to the Fixed Account until the ReallocationDate.

Reallocation DateThe date we reallocate any premium (plus interest)held in the Fixed Account to the Subaccounts and/orFixed Account as you directed in your application. TheReallocation Date is the Record Date, plus the numberof days in your state’s right to examine period, plus10 days.

Record DateThe date we record your Policy in our books as an inforce policy.

Right-to-Examine PeriodThe period when you may return the Policy and receivea refund. The length of the Right-to-Examine Periodvaries by state. It will be at least 10 days from the dateyou receive the Policy. The first page of your Policyshows your right to examine period.

Service CenterThe address of the Service Center is P.O. Box 724208,Atlanta, GA 31139. McCamish Systems, L.L.C.(registered and known as “Infosys McCamish Systems,LLC” in the State of California only) is theadministrator of the Policy. You can call the ServiceCenter office toll-free at 1-877-376-8008.

SubaccountA division of the Variable Account that investsexclusively in shares of one Portfolio of a fund. Theinvestment performance of each Subaccount is linkeddirectly to the investment performance of the Portfolioin which it invests.

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SurrenderThe termination of the Policy at the option of theOwner.

Surrender ChargeThe amount, based on the Face Amount, we chargeyou to fully Surrender this Policy. The SurrenderCharge is equal to (a) + (b), where (a) is the SurrenderCharge for the Face Amount on the Issue Date; and(b) is the Surrender Charge for each increase in FaceAmount. The Surrender Charge applies during the firstnine Policy years and within nine years following anyincrease in the Face Amount.

Tax CodeThe Internal Revenue Code of 1986, as amended.

Variable AccountFarmers Variable Life Separate Account A. It is aseparate investment account that is divided intoSubaccounts, each of which invests in a correspondingPortfolio of a designated fund.

Written NoticeThe Written Notice you must sign and send us torequest or exercise your rights as Owner under thePolicy. To be complete, it must: (1) be in a form weaccept, (2) contain the information and documentationthat we determine is necessary, and (3) be received atour Service Center.

You (your, Owner)The person entitled to exercise all rights as Ownerunder the Policy.

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Appendix A—Guaranteed Maximum Cost of Insurance Rates

GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATESPer $1,000 of Risk Insurance Amount

AttainedAge

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*Attained

Age

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

0 N/A 0.06001 N/A 0.03500 39 0.11757 0.22277 0.09671 0.17182

1 N/A 0.03834 N/A 0.02583 40 0.12675 0.24198 0.10255 0.18268

2 N/A 0.02750 N/A 0.01916 41 0.13760 0.26538 0.10923 0.19520

3 N/A 0.02000 N/A 0.01666 42 0.15095 0.29297 0.11674 0.21107

4 N/A 0.01750 N/A 0.01583 43 0.16681 0.32558 0.12592 0.22862

5 N/A 0.01750 N/A 0.01500 44 0.18435 0.36238 0.13676 0.24950

6 N/A 0.01833 N/A 0.01583 45 0.20356 0.39920 0.14928 0.27374

7 N/A 0.01833 N/A 0.01750 46 0.22277 0.43604 0.16431 0.30216

8 N/A 0.01833 N/A 0.01750 47 0.23864 0.46703 0.18184 0.33729

9 N/A 0.01916 N/A 0.01750 48 0.25118 0.49048 0.20105 0.37912

10 N/A 0.02000 N/A 0.01833 49 0.26705 0.52065 0.22277 0.42599

11 N/A 0.02333 N/A 0.02083 50 0.28795 0.56005 0.24700 0.47624

12 N/A 0.02833 N/A 0.02250 51 0.31471 0.61121 0.27458 0.53155

13 N/A 0.03333 N/A 0.02583 52 0.34732 0.67332 0.30551 0.59108

14 N/A 0.04334 N/A 0.02833 53 0.38498 0.74807 0.33812 0.65569

15 N/A 0.05501 N/A 0.03000 54 0.43269 0.83717 0.37242 0.72454

16 N/A 0.06502 N/A 0.03250 55 0.48629 0.93226 0.41176 0.79765

17 N/A 0.07419 N/A 0.03417 56 0.54161 1.03082 0.45446 0.87587

18 N/A 0.07920 N/A 0.03667 57 0.59527 1.12189 0.49970 0.95500

19 N/A 0.08170 N/A 0.03834 58 0.64897 1.20883 0.54664 1.03756

20 N/A 0.07920 N/A 0.03750 59 0.71194 1.31107 0.59443 1.12611

21 0.07920 0.11340 0.03917 0.05251 60 0.78840 1.43713 0.64478 1.21812

22 0.07920 0.11924 0.04000 0.05501 61 0.88176 1.59135 0.70019 1.31784

23 0.08003 0.12508 0.04000 0.05751 62 0.99037 1.76877 0.75899 1.42359

24 0.08086 0.13176 0.04167 0.06085 63 1.10924 1.95930 .82119 1.53200

25 0.08337 0.13927 0.04250 0.06585 64 1.23333 2.15024 0.88933 1.64904

26 0.08670 0.14678 0.04584 0.07002 65 1.36266 2.33731 0.96510 1.77557

27 0.08837 0.15095 0.04751 0.07419 66 1.49387 2.51876 1.04768 1.91334

28 0.08670 0.15179 0.05001 0.07920 67 1.63122 2.70230 1.13961 2.06666

29 0.08587 0.15095 0.05251 0.08420 68 1.77642 2.89051 1.24177 2.23476

30 0.08503 0.15012 0.05501 0.08921 69 1.93972 3.09808 1.35336 2.42029

31 0.08420 0.15095 0.05835 0.09588 70 2.13062 3.33638 1.47947 2.63021

32 0.08503 0.15346 0.06168 0.10255 71 2.36296 3.62993 1.62358 2.86556

33 0.08754 0.15847 0.06585 0.11090 72 2.63536 3.97231 1.78151 3.12222

34 0.08921 0.16431 0.07086 0.12174 73 2.92321 4.31861 1.95420 3.40297

35 0.09338 0.17099 0.07669 0.13259 74 3.23355 4.69520 2.14598 3.69761

36 0.09755 0.18101 0.08253 0.14344 75 3.57270 5.11567 2.35698 4.00801

37 0.10339 0.19270 0.08754 0.15262 76 3.95664 5.58418 2.58905 4.34483

38 0.11090 0.20690 0.09171 0.16181 77 4.40517 6.12911 2.84664 4.70924

A-1PAGE 55

GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATESPer $1,000 of Risk Insurance Amount

AttainedAge

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*Attained

Age

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

78 4.92894 6.75812 3.12826 5.10421 90 17.58287 20.53619 10.88246 13.83189

79 5.51951 7.45576 3.43845 5.53102 91 19.12353 22.05253 11.58260 14.27591

80 6.18263 8.22452 3.82529 6.06583 92 20.76683 23.63636 12.75537 15.24260

81 6.90909 9.04868 4.30288 6.72401 93 22.53307 25.30420 14.36966 16.62877

82 7.68497 9.90463 4.81112 7.40691 94 24.43244 27.11897 16.42157 18.59746

83 8.53991 10.82608 5.34786 8.10961 95 26.35437 28.98442 18.70919 20.97702

84 9.50017 11.87958 5.95007 8.84722 96 28.27211 30.79253 21.02122 23.30415

85 10.58031 13.08901 6.56439 9.53442 97 30.36217 32.73942 22.55449 24.71403

86 11.78364 14.41951 7.29574 10.33521 98 32.64693 34.84234 23.39817 25.28542

87 13.10250 15.85547 8.20718 11.33853 99 35.15185 37.11809 25.17504 26.84313

88 14.52614 17.37749 9.17863 12.35414 100+ N/A N/A N/A N/A

89 16.04444 18.97012 10.15602 13.29346

* Attained ages 0-20 are juvenile issues

If the Insured is in a special Premium Class, the guaranteed maximum monthly cost of insurance rate will bethe rate shown in the table times the table rating factor shown on the policy specifications page.

The rates shown above are for the base policy only. Separate maximum charges apply to each rider.

A-2PAGE 56

Appendix B—Monthly Underwriting and Sales Expense Charges

CURRENT AND GUARANTEED MAXIMUM MONTHLY UNDERWRITINGAND SALES EXPENSE CHARGE

Per $1,000 of Face AmountIssue

Age orAttainedAge at

Increase

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

IssueAge or

AttainedAge at

Increase

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

0 N/A 0.0750 N/A 0.0720 37 0.2900 0.3490 0.2330 0.2460

1 N/A 0.0760 N/A 0.0720 38 0.3060 0.3640 0.2450 0.2560

2 N/A 0.0770 N/A 0.0730 39 0.3210 0.3790 0.2570 0.2660

3 N/A 0.0780 N/A 0.0740 40 0.3370 0.3940 0.2700 0.2760

4 N/A 0.0790 N/A 0.0750 41 0.3520 0.4150 0.2810 0.2870

5 N/A 0.0800 N/A 0.0760 42 0.3680 0.4360 0.2920 0.2980

6 N/A 0.0830 N/A 0.0780 43 0.3830 0.4570 0.3030 0.3100

7 N/A 0.0850 N/A 0.0810 44 0.3980 0.4780 0.3140 0.3210

8 N/A 0.0880 N/A 0.0830 45 0.4140 0.4990 0.3250 0.3320

9 N/A 0.0910 N/A 0.0860 46 0.4410 0.5320 0.3460 0.3520

10 N/A 0.0930 N/A 0.0880 47 0.4680 0.5640 0.3670 0.3710

11 N/A 0.0980 N/A 0.0920 48 0.4950 0.5970 0.3880 0.3910

12 N/A 0.1030 N/A 0.0970 49 0.5220 0.6290 0.4090 0.4110

13 N/A 0.1080 N/A 0.1010 50 0.5490 0.6620 0.4300 0.4300

14 N/A 0.1130 N/A 0.1060 51 0.5910 0.7070 0.4610 0.4610

15 N/A 0.1180 N/A 0.1100 52 0.6320 0.7530 0.4910 0.4920

16 N/A 0.1260 N/A 0.1160 53 0.6730 0.7980 0.5220 0.5230

17 N/A 0.1340 N/A 0.1220 54 0.7140 0.8430 0.5530 0.5530

18 N/A 0.1420 N/A 0.1280 55 0.7550 0.8890 0.5840 0.5840

19 N/A 0.1500 N/A 0.1340 56 0.8160 0.9520 0.6380 0.6380

20 N/A 0.1580 N/A 0.1400 57 0.8770 1.0150 0.6930 0.6930

21 0.1590 0.1730 0.1400 0.1420 58 0.9380 1.0770 0.7470 0.7470

22 0.1610 0.1880 0.1400 0.1450 59 0.9990 1.1400 0.8010 0.8010

23 0.1620 0.2030 0.1400 0.1470 60 1.0600 1.2030 0.8550 0.8550

24 0.1630 0.2180 0.1400 0.1500 61 1.1080 1.2220 0.9030 0.9030

25 0.1640 0.2330 0.1400 0.1520 62 1.1560 1.2420 0.9500 0.9500

26 0.1730 0.2420 0.1460 0.1590 63 1.2040 1.2610 0.9980 0.9980

27 0.1830 0.2500 0.1510 0.1660 64 1.2510 1.2800 1.0450 1.0450

28 0.1930 0.2590 0.1580 0.1730 65 1.2990 1.2990 1.0930 1.0930

29 0.2020 0.2680 0.1630 0.1800 66 1.3510 1.3510 1.1440 1.1440

30 0.2120 0.2760 0.1690 0.1860 67 1.4020 1.4020 1.1950 1.1950

31 0.2210 0.2850 0.1770 0.1940 68 1.4540 1.4540 1.2460 1.2460

32 0.2310 0.2930 0.1850 0.2020 69 1.5050 1.5050 1.2970 1.2970

33 0.2400 0.3020 0.1930 0.2100 70 1.5570 1.5570 1.3480 1.3480

34 0.2490 0.3100 0.2000 0.2180 71 1.6450 1.6450 1.4310 1.4310

35 0.2580 0.3190 0.2080 0.2250 72 1.7330 1.7330 1.5150 1.5150

36 0.2740 0.3340 0.2210 0.2350 73 1.8210 1.8210 1.5980 1.5980

B-1PAGE 57

CURRENT AND GUARANTEED MAXIMUM MONTHLY UNDERWRITINGAND SALES EXPENSE CHARGE

Per $1,000 of Face AmountIssue

Age orAttainedAge at

Increase

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

IssueAge or

AttainedAge at

Increase

MaleNon-

NicotineMale

Nicotine*

FemaleNon-

NicotineFemale

Nicotine*

74 1.9090 1.9090 1.6820 1.6820 78 2.1230 2.1230 1.8760 1.8760

75 1.9970 1.9970 1.7650 1.7650 79 2.1640 2.1640 1.9130 1.9130

76 2.0390 2.0390 1.8020 1.8020 80 2.2060 2.2060 1.9500 1.9500

77 2.0810 2.0810 1.8390 1.8390

* Attained ages 0-20 are juvenile issues

B-2PAGE 58

Appendix C—Table of Surrender Charge Factors

TABLE OF SURRENDER CHARGE FACTORSMale Non-Nicotine (Premier, Preferred, & Standard)

Number of Full Policy Years Completed Since the Issue Date or Since Increase in Face AmountIssueAge 0 1 2 3 4 5 6 7 8

9 ormore

21 5.22 4.96 4.65 4.38 4.12 3.86 3.29 2.19 1.10 0.00

22 5.33 5.06 4.74 4.48 4.21 3.94 3.36 2.24 1.12 0.00

23 5.47 5.20 4.87 4.59 4.32 4.05 3.45 2.30 1.15 0.00

24 5.63 5.35 5.01 4.73 4.45 4.17 3.55 2.36 1.18 0.00

25 5.83 5.54 5.19 4.90 4.61 4.31 3.67 2.45 1.22 0.00

26 6.11 5.80 5.44 5.13 4.83 4.52 3.85 2.57 1.28 0.00

27 6.48 6.16 5.77 5.44 5.12 4.80 4.08 2.72 1.36 0.00

28 6.92 6.57 6.16 5.81 5.47 5.12 4.36 2.91 1.45 0.00

29 7.35 6.98 6.54 6.17 5.81 5.44 4.63 3.09 1.54 0.00

30 7.78 7.39 6.92 6.54 6.15 5.76 4.90 3.27 1.63 0.00

31 8.22 7.81 7.32 6.90 6.49 6.08 5.18 3.45 1.73 0.00

32 8.67 8.24 7.72 7.28 6.85 6.42 5.46 3.64 1.82 0.00

33 9.13 8.67 8.13 7.67 7.21 6.76 5.75 3.83 1.92 0.00

34 9.59 9.11 8.54 8.06 7.58 7.10 6.04 4.03 2.01 0.00

35 10.06 9.56 8.95 8.45 7.95 7.44 6.34 4.23 2.11 0.00

36 10.63 10.10 9.46 8.93 8.40 7.87 6.70 4.46 2.23 0.00

37 11.28 10.72 10.04 9.48 8.91 8.35 7.11 4.74 2.37 0.00

38 11.94 11.34 10.63 10.03 9.43 8.84 7.52 5.01 2.51 0.00

39 12.60 11.97 11.21 10.58 9.95 9.32 7.94 5.29 2.65 0.00

40 13.25 12.59 11.79 11.13 10.47 9.81 8.35 5.57 2.78 0.00

41 13.85 13.16 12.33 11.63 10.94 10.25 8.73 5.82 2.91 0.00

42 14.43 13.71 12.84 12.12 11.40 10.68 9.09 6.06 3.03 0.00

43 15.09 14.34 13.43 12.68 11.92 11.17 9.51 6.34 3.17 0.00

44 15.74 14.95 14.01 13.22 12.43 11.65 9.92 6.61 3.31 0.00

45 16.26 15.45 14.47 13.66 12.85 12.03 10.24 6.83 3.41 0.00

46 16.76 15.92 14.92 14.08 13.24 12.40 10.56 7.04 3.52 0.00

47 17.48 16.61 15.56 14.68 13.81 12.94 11.01 7.34 3.67 0.00

48 18.37 17.45 16.35 15.43 14.51 13.59 11.57 7.72 3.86 0.00

49 19.41 18.44 17.27 16.30 15.33 14.36 12.23 8.15 4.08 0.00

50 20.60 19.57 18.33 17.30 16.27 15.24 12.98 8.65 4.33 0.00

51 21.81 20.72 19.41 18.32 17.23 16.14 13.74 9.16 4.58 0.00

52 22.91 21.76 20.39 19.24 18.10 16.95 14.43 9.62 4.81 0.00

53 24.04 22.84 21.40 20.19 18.99 17.79 15.15 10.10 5.05 0.00

54 25.27 24.01 22.49 21.23 19.96 18.70 15.92 10.61 5.31 0.00

55 26.43 25.11 23.52 22.20 20.88 19.56 16.65 11.10 5.55 0.00

56 27.53 26.15 24.50 23.13 21.75 20.37 17.34 11.56 5.78 0.00

57 28.84 27.40 25.67 24.23 22.78 21.34 18.17 12.11 6.06 0.00

58 30.45 28.93 27.10 25.58 24.06 22.53 19.18 12.79 6.39 0.00

59 32.22 30.61 28.68 27.06 25.45 23.84 20.30 13.53 6.77 0.00

C-1PAGE 59

TABLE OF SURRENDER CHARGE FACTORSMale Non-Nicotine (Premier, Preferred, & Standard)


9 ormore

60 33.90 32.21 30.17 28.48 26.78 25.09 21.36 14.24 7.12 0.00

61 35.40 33.63 31.51 29.74 27.97 26.20 22.30 14.87 7.43 0.00

62 36.90 35.06 32.84 31.00 29.15 27.31 23.25 15.50 7.75 0.00

63 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

64 39.90 37.91 35.51 33.52 31.52 29.53 25.14 16.76 8.38 0.00

65 41.40 39.33 36.85 34.78 32.71 30.64 26.08 17.39 8.69 0.00

66 42.90 40.76 38.18 36.04 33.89 31.75 27.03 18.02 9.01 0.00

67 44.40 42.18 39.52 37.30 35.08 32.86 27.97 18.65 9.32 0.00

68 44.40 42.18 39.51 37.29 35.07 32.85 27.97 18.64 9.32 0.00

69 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

70 43.30 41.13 38.53 36.37 34.20 32.04 27.27 18.18 9.09 0.00

71 42.50 40.37 37.82 35.70 33.57 31.45 26.77 17.85 8.92 0.00

72 41.60 39.52 37.02 34.94 32.86 30.78 26.20 17.47 8.73 0.00

73 40.70 38.66 36.22 34.18 32.15 30.11 25.64 17.09 8.54 0.00

74 39.90 37.90 35.51 33.51 31.52 29.52 25.13 16.75 8.37 0.00

75 39.00 37.05 34.71 32.76 30.81 28.86 24.57 16.38 8.19 0.00

76 38.60 36.67 34.35 32.42 30.49 28.56 24.31 16.21 8.10 0.00

77 38.10 36.19 33.90 32.00 30.09 28.19 24.00 16.00 8.00 0.00

78 37.60 35.72 33.46 31.58 29.70 27.82 23.68 15.79 7.89 0.00

79 37.20 35.34 33.10 31.24 29.38 27.52 23.43 15.62 7.81 0.00

80 36.70 34.86 32.66 30.82 28.99 27.15 23.12 15.41 7.70 0.00

TABLE OF SURRENDER CHARGE FACTORSMale Nicotine (Ages 0-20 are juvenile issues.)


9 ormore

0 3.27 3.11 2.91 2.75 2.58 2.42 2.06 1.37 0.69 0.00

1 3.30 3.14 2.94 2.77 2.61 2.44 2.08 1.39 0.69 0.00

2 3.36 3.19 2.99 2.82 2.65 2.49 2.12 1.41 0.71 0.00

3 3.44 3.27 3.06 2.89 2.72 2.55 2.17 1.44 0.72 0.00

4 3.51 3.33 3.12 2.95 2.77 2.60 2.21 1.47 0.74 0.00

5 3.60 3.42 3.20 3.02 2.84 2.66 2.27 1.51 0.76 0.00

6 3.68 3.50 3.28 3.09 2.91 2.72 2.32 1.55 0.77 0.00

7 3.78 3.59 3.36 3.18 2.99 2.80 2.38 1.59 0.79 0.00

8 3.88 3.69 3.45 3.26 3.07 2.87 2.44 1.63 0.81 0.00

9 3.98 3.78 3.54 3.34 3.14 2.95 2.51 1.67 0.84 0.00

10 4.09 3.89 3.64 3.44 3.23 3.03 2.58 1.72 0.86 0.00

11 4.17 3.96 3.71 3.50 3.29 3.09 2.63 1.75 0.88 0.00

12 4.26 4.05 3.79 3.58 3.37 3.15 2.68 1.79 0.89 0.00

13 4.34 4.12 3.86 3.65 3.43 3.21 2.73 1.82 0.91 0.00

14 4.43 4.21 3.94 3.72 3.50 3.28 2.79 1.86 0.93 0.00

C-2PAGE 60



9 ormore

15 4.52 4.29 4.02 3.80 3.57 3.34 2.85 1.90 0.95 0.00

16 4.63 4.40 4.12 3.89 3.66 3.43 2.92 1.94 0.97 0.00

17 4.75 4.51 4.23 3.99 3.75 3.52 2.99 2.00 1.00 0.00

18 4.87 4.63 4.33 4.09 3.85 3.60 3.07 2.05 1.02 0.00

19 5.00 4.75 4.45 4.20 3.95 3.70 3.15 2.10 1.05 0.00

20 5.13 4.87 4.57 4.31 4.05 3.80 3.23 2.15 1.08 0.00

21 7.23 6.87 6.43 6.07 5.71 5.35 4.55 3.04 1.52 0.00

22 7.46 7.09 6.64 6.27 5.89 5.52 4.70 3.13 1.57 0.00

23 7.67 7.29 6.83 6.44 6.06 5.68 4.83 3.22 1.61 0.00

24 7.87 7.48 7.00 6.61 6.22 5.82 4.96 3.31 1.65 0.00

25 8.10 7.70 7.21 6.80 6.40 5.99 5.10 3.40 1.70 0.00

26 8.39 7.97 7.47 7.05 6.63 6.21 5.29 3.52 1.76 0.00

27 8.77 8.33 7.81 7.37 6.93 6.49 5.53 3.68 1.84 0.00

28 9.20 8.74 8.19 7.73 7.27 6.81 5.80 3.86 1.93 0.00

29 9.61 9.13 8.55 8.07 7.59 7.11 6.05 4.04 2.02 0.00

30 10.01 9.51 8.91 8.41 7.91 7.41 6.31 4.20 2.10 0.00

31 10.42 9.90 9.27 8.75 8.23 7.71 6.56 4.38 2.19 0.00

32 10.85 10.31 9.66 9.11 8.57 8.03 6.84 4.56 2.28 0.00

33 11.31 10.74 10.07 9.50 8.93 8.37 7.13 4.75 2.38 0.00

34 11.80 11.21 10.50 9.91 9.32 8.73 7.43 4.96 2.48 0.00

35 12.32 11.70 10.96 10.35 9.73 9.12 7.76 5.17 2.59 0.00

36 12.86 12.22 11.45 10.80 10.16 9.52 8.10 5.40 2.70 0.00

37 13.44 12.77 11.96 11.29 10.62 9.95 8.47 5.64 2.82 0.00

38 14.05 13.35 12.50 11.80 11.10 10.40 8.85 5.90 2.95 0.00

39 14.70 13.97 13.08 12.35 11.61 10.88 9.26 6.17 3.09 0.00

40 15.43 14.66 13.73 12.96 12.19 11.42 9.72 6.48 3.24 0.00

41 16.22 15.41 14.44 13.62 12.81 12.00 10.22 6.81 3.41 0.00

42 17.02 16.17 15.15 14.30 13.45 12.59 10.72 7.15 3.57 0.00

43 17.83 16.94 15.87 14.98 14.09 13.19 11.23 7.49 3.74 0.00

44 18.67 17.74 16.62 15.68 14.75 13.82 11.76 7.84 3.92 0.00

45 19.55 18.57 17.40 16.42 15.44 14.47 12.32 8.21 4.11 0.00

46 20.47 19.45 18.22 17.19 16.17 15.15 12.90 8.60 4.30 0.00

47 21.43 20.36 19.07 18.00 16.93 15.86 13.50 9.00 4.50 0.00

48 22.46 21.34 19.99 18.87 17.74 16.62 14.15 9.43 4.72 0.00

49 23.59 22.41 21.00 19.82 18.64 17.46 14.86 9.91 4.95 0.00

50 24.75 23.51 22.03 20.79 19.55 18.32 15.59 10.40 5.20 0.00

51 25.86 24.57 23.02 21.72 20.43 19.14 16.29 10.86 5.43 0.00

52 26.95 25.60 23.99 22.64 21.29 19.94 16.98 11.32 5.66 0.00

53 28.18 26.77 25.08 23.67 22.26 20.85 17.75 11.84 5.92 0.00

54 29.61 28.13 26.35 24.87 23.39 21.91 18.65 12.44 6.22 0.00

55 31.03 29.48 27.62 26.07 24.51 22.96 19.55 13.03 6.52 0.00

C-3PAGE 61



9 ormore

56 32.43 30.81 28.86 27.24 25.62 24.00 20.43 13.62 6.81 0.00

57 34.24 32.53 30.47 28.76 27.05 25.34 21.57 14.38 7.19 0.00

58 36.45 34.63 32.44 30.62 28.80 26.97 22.96 15.31 7.65 0.00

59 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

60 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

61 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

62 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

63 38.40 36.48 34.18 32.26 30.34 28.42 24.19 16.13 8.06 0.00

64 39.90 37.91 35.51 33.52 31.52 29.53 25.14 16.76 8.38 0.00

65 41.40 39.33 36.85 34.78 32.71 30.64 26.08 17.39 8.69 0.00

66 42.90 40.76 38.18 36.04 33.89 31.75 27.03 18.02 9.01 0.00

67 44.40 42.18 39.52 37.30 35.08 32.86 27.97 18.65 9.32 0.00

68 44.40 42.18 39.51 37.29 35.07 32.85 27.97 18.64 9.32 0.00

69 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

70 43.30 41.13 38.53 36.37 34.20 32.04 27.27 18.18 9.09 0.00

71 42.50 40.37 37.82 35.70 33.57 31.45 26.77 17.85 8.92 0.00

72 41.60 39.52 37.02 34.94 32.86 30.78 26.20 17.47 8.73 0.00

73 40.70 38.66 36.22 34.18 32.15 30.11 25.64 17.09 8.54 0.00

74 39.90 37.90 35.51 33.51 31.52 29.52 25.13 16.75 8.37 0.00

75 39.00 37.05 34.71 32.76 30.81 28.86 24.57 16.38 8.19 0.00

76 38.60 36.67 34.35 32.42 30.49 28.56 24.31 16.21 8.10 0.00

77 38.10 36.19 33.90 32.00 30.09 28.19 24.00 16.00 8.00 0.00

78 37.60 35.72 33.46 31.58 29.70 27.82 23.68 15.79 7.89 0.00

79 37.20 35.34 33.10 31.24 29.38 27.52 23.43 15.62 7.81 0.00

80 36.70 34.86 32.66 30.82 28.99 27.15 23.12 15.41 7.70 0.00

TABLE OF SURRENDER CHARGE FACTORSFemale Non-Nicotine (Premier, Preferred, & Standard)


9 ormore

21 4.65 4.42 4.14 3.91 3.67 3.44 2.93 1.95 0.98 0.00

22 4.75 4.51 4.23 3.99 3.75 3.52 2.99 2.00 1.00 0.00

23 4.84 4.60 4.31 4.07 3.82 3.58 3.05 2.03 1.02 0.00

24 4.94 4.69 4.40 4.15 3.90 3.66 3.11 2.07 1.04 0.00

25 5.03 4.78 4.48 4.23 3.97 3.72 3.17 2.11 1.06 0.00

26 5.25 4.99 4.67 4.41 4.15 3.89 3.31 2.21 1.10 0.00

27 5.48 5.21 4.88 4.60 4.33 4.06 3.45 2.30 1.15 0.00

28 5.72 5.43 5.09 4.80 4.52 4.23 3.60 2.40 1.20 0.00

29 5.98 5.68 5.32 5.02 4.72 4.43 3.77 2.51 1.26 0.00

30 6.26 5.95 5.57 5.26 4.95 4.63 3.94 2.63 1.31 0.00

31 6.59 6.26 5.87 5.54 5.21 4.88 4.15 2.77 1.38 0.00

C-4PAGE 62



9 ormore

32 6.96 6.61 6.19 5.85 5.50 5.15 4.38 2.92 1.46 0.00

33 7.37 7.00 6.56 6.19 5.82 5.45 4.64 3.10 1.55 0.00

34 7.79 7.40 6.93 6.54 6.15 5.76 4.91 3.27 1.64 0.00

35 8.20 7.79 7.30 6.89 6.48 6.07 5.17 3.44 1.72 0.00

36 8.62 8.19 7.67 7.24 6.81 6.38 5.43 3.62 1.81 0.00

37 9.08 8.63 8.08 7.63 7.17 6.72 5.72 3.81 1.91 0.00

38 9.63 9.15 8.57 8.09 7.61 7.13 6.07 4.04 2.02 0.00

39 10.20 9.69 9.08 8.57 8.06 7.55 6.43 4.28 2.14 0.00

40 10.70 10.17 9.52 8.99 8.45 7.92 6.74 4.49 2.25 0.00

41 11.11 10.55 9.89 9.33 8.78 8.22 7.00 4.67 2.33 0.00

42 11.53 10.95 10.26 9.69 9.11 8.53 7.26 4.84 2.42 0.00

43 11.96 11.36 10.64 10.05 9.45 8.85 7.53 5.02 2.51 0.00

44 12.35 11.73 10.99 10.37 9.76 9.14 7.78 5.19 2.59 0.00

45 12.83 12.19 11.42 10.78 10.14 9.49 8.08 5.39 2.69 0.00

46 13.43 12.76 11.95 11.28 10.61 9.94 8.46 5.64 2.82 0.00

47 14.08 13.38 12.53 11.83 11.12 10.42 8.87 5.91 2.96 0.00

48 14.75 14.01 13.13 12.39 11.65 10.92 9.29 6.20 3.10 0.00

49 15.47 14.70 13.77 12.99 12.22 11.45 9.75 6.50 3.25 0.00

50 16.23 15.42 14.44 13.63 12.82 12.01 10.22 6.82 3.41 0.00

51 17.16 16.30 15.27 14.41 13.56 12.70 10.81 7.21 3.60 0.00

52 17.94 17.04 15.97 15.07 14.17 13.28 11.30 7.53 3.77 0.00

53 18.72 17.78 16.66 15.72 14.79 13.85 11.79 7.86 3.93 0.00

54 19.58 18.60 17.43 16.45 15.47 14.49 12.34 8.22 4.11 0.00

55 20.53 19.50 18.27 17.25 16.22 15.19 12.93 8.62 4.31 0.00

56 21.75 20.66 19.36 18.27 17.18 16.10 13.70 9.14 4.57 0.00

57 23.05 21.90 20.51 19.36 18.21 17.06 14.52 9.68 4.84 0.00

58 24.44 23.22 21.75 20.53 19.31 18.09 15.40 10.26 5.13 0.00

59 25.92 24.62 23.07 21.77 20.48 19.18 16.33 10.89 5.44 0.00

60 27.40 26.03 24.39 23.02 21.65 20.28 17.26 11.51 5.75 0.00

61 28.90 27.46 25.72 24.28 22.83 21.39 18.21 12.14 6.07 0.00

62 30.40 28.88 27.06 25.54 24.02 22.50 19.15 12.77 6.38 0.00

63 31.90 30.31 28.39 26.80 25.20 23.61 20.10 13.40 6.70 0.00

65 34.90 33.16 31.06 29.32 27.57 25.83 21.99 14.66 7.33 0.00

66 36.40 34.58 32.40 30.58 28.76 26.94 22.93 15.29 7.64 0.00

67 37.90 36.01 33.73 31.84 29.94 28.05 23.88 15.92 7.96 0.00

68 39.40 37.43 35.06 33.09 31.12 29.15 24.82 16.54 8.27 0.00

69 40.90 38.85 36.40 34.35 32.31 30.26 25.76 17.17 8.58 0.00

70 42.40 40.28 37.73 35.61 33.49 31.37 26.71 17.80 8.90 0.00

71 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

72 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

73 43.10 40.94 38.35 36.20 34.04 31.89 27.15 18.10 9.05 0.00

C-5PAGE 63



9 ormore

74 42.20 40.09 37.55 35.44 33.33 31.22 26.58 17.72 8.86 0.00

75 41.40 39.33 36.84 34.77 32.70 30.63 26.08 17.38 8.69 0.00

76 41.00 38.95 36.49 34.44 32.39 30.34 25.83 17.22 8.61 0.00

77 40.60 38.57 36.13 34.10 32.07 30.04 25.57 17.05 8.52 0.00

78 40.20 38.19 35.77 33.76 31.75 29.74 25.32 16.88 8.44 0.00

79 38.80 36.86 34.53 32.59 30.65 28.71 24.44 16.29 8.14 0.00

80 38.80 36.86 34.53 32.59 30.65 28.71 24.44 16.29 8.14 0.00

TABLE OF SURRENDER CHARGE FACTORSFemale Nicotine (Ages 0-20 are juvenile issues.)


9 ormore

0 3.00 2.85 2.67 2.52 2.37 2.22 1.89 1.26 0.63 0.00

1 3.03 2.88 2.70 2.55 2.39 2.24 1.91 1.27 0.64 0.00

2 3.08 2.93 2.74 2.59 2.43 2.28 1.94 1.29 0.65 0.00

3 3.15 2.99 2.80 2.65 2.49 2.33 1.98 1.32 0.66 0.00

4 3.22 3.06 2.87 2.70 2.54 2.38 2.03 1.35 0.68 0.00

5 3.29 3.13 2.93 2.76 2.60 2.43 2.07 1.38 0.69 0.00

6 3.36 3.19 2.99 2.82 2.65 2.49 2.12 1.41 0.71 0.00

7 3.45 3.28 3.07 2.90 2.73 2.55 2.17 1.45 0.72 0.00

8 3.53 3.35 3.14 2.97 2.79 2.61 2.22 1.48 0.74 0.00

9 3.62 3.44 3.22 3.04 2.86 2.68 2.28 1.52 0.76 0.00

10 3.72 3.53 3.31 3.12 2.94 2.75 2.34 1.56 0.78 0.00

11 3.79 3.60 3.37 3.18 2.99 2.80 2.39 1.59 0.80 0.00

12 3.86 3.67 3.44 3.24 3.05 2.86 2.43 1.62 0.81 0.00

13 3.94 3.74 3.51 3.31 3.11 2.92 2.48 1.65 0.83 0.00

14 4.02 3.82 3.58 3.38 3.18 2.97 2.53 1.69 0.84 0.00

15 4.10 3.90 3.65 3.44 3.24 3.03 2.58 1.72 0.86 0.00

16 4.19 3.98 3.73 3.52 3.31 3.10 2.64 1.76 0.88 0.00

17 4.28 4.07 3.81 3.60 3.38 3.17 2.70 1.80 0.90 0.00

18 4.38 4.16 3.90 3.68 3.46 3.24 2.76 1.84 0.92 0.00

19 4.47 4.25 3.98 3.75 3.53 3.31 2.82 1.88 0.94 0.00

20 4.57 4.34 4.07 3.84 3.61 3.38 2.88 1.92 0.96 0.00

21 5.09 4.84 4.53 4.28 4.02 3.77 3.21 2.14 1.07 0.00

22 5.18 4.92 4.61 4.35 4.09 3.83 3.26 2.18 1.09 0.00

23 5.28 5.02 4.70 4.44 4.17 3.91 3.33 2.22 1.11 0.00

24 5.35 5.08 4.76 4.49 4.23 3.96 3.37 2.25 1.12 0.00

25 5.45 5.18 4.85 4.58 4.31 4.03 3.43 2.29 1.14 0.00

26 5.65 5.37 5.03 4.75 4.46 4.18 3.56 2.37 1.19 0.00

27 5.95 5.65 5.30 5.00 4.70 4.40 3.75 2.50 1.25 0.00

28 6.29 5.98 5.60 5.28 4.97 4.65 3.96 2.64 1.32 0.00

C-6PAGE 64



9 ormore

29 6.59 6.26 5.87 5.54 5.21 4.88 4.15 2.77 1.38 0.00

30 6.87 6.53 6.11 5.77 5.43 5.08 4.33 2.89 1.44 0.00

31 7.18 6.82 6.39 6.03 5.67 5.31 4.52 3.02 1.51 0.00

32 7.57 7.19 6.74 6.36 5.98 5.60 4.77 3.18 1.59 0.00

33 8.02 7.62 7.14 6.74 6.34 5.93 5.05 3.37 1.68 0.00

34 8.44 8.02 7.51 7.09 6.67 6.25 5.32 3.54 1.77 0.00

35 8.83 8.39 7.86 7.42 6.98 6.53 5.56 3.71 1.85 0.00

36 9.21 8.75 8.20 7.74 7.28 6.82 5.80 3.87 1.93 0.00

37 9.62 9.14 8.56 8.08 7.60 7.12 6.06 4.04 2.02 0.00

38 10.05 9.55 8.94 8.44 7.94 7.44 6.33 4.22 2.11 0.00

39 10.48 9.96 9.33 8.80 8.28 7.76 6.60 4.40 2.20 0.00

40 10.92 10.37 9.72 9.17 8.63 8.08 6.88 4.59 2.29 0.00

41 11.37 10.80 10.12 9.55 8.98 8.41 7.16 4.78 2.39 0.00

42 11.83 11.24 10.53 9.94 9.35 8.75 7.45 4.97 2.48 0.00

43 12.30 11.69 10.95 10.33 9.72 9.10 7.75 5.17 2.58 0.00

44 12.75 12.11 11.35 10.71 10.07 9.44 8.03 5.36 2.68 0.00

45 13.13 12.47 11.69 11.03 10.37 9.72 8.27 5.51 2.76 0.00

46 13.43 12.76 11.95 11.28 10.61 9.94 8.46 5.64 2.82 0.00

47 14.08 13.38 12.53 11.83 11.12 10.42 8.87 5.91 2.96 0.00

48 14.75 14.01 13.13 12.39 11.65 10.92 9.29 6.20 3.10 0.00

49 15.47 14.70 13.77 12.99 12.22 11.45 9.75 6.50 3.25 0.00

50 16.23 15.42 14.44 13.63 12.82 12.01 10.22 6.82 3.41 0.00

51 17.16 16.30 15.27 14.41 13.56 12.70 10.81 7.21 3.60 0.00

52 17.94 17.04 15.97 15.07 14.17 13.28 11.30 7.53 3.77 0.00

53 18.72 17.78 16.66 15.72 14.79 13.85 11.79 7.86 3.93 0.00

54 19.58 18.60 17.43 16.45 15.47 14.49 12.34 8.22 4.11 0.00

55 20.53 19.50 18.27 17.25 16.22 15.19 12.93 8.62 4.31 0.00

56 21.75 20.66 19.36 18.27 17.18 16.10 13.70 9.14 4.57 0.00

57 23.05 21.90 20.51 19.36 18.21 17.06 14.52 9.68 4.84 0.00

58 24.44 23.22 21.75 20.53 19.31 18.09 15.40 10.26 5.13 0.00

59 26.21 24.90 23.33 22.02 20.71 19.40 16.51 11.01 5.50 0.00

60 27.40 26.03 24.39 23.02 21.65 20.28 17.26 11.51 5.75 0.00

61 28.90 27.46 25.72 24.28 22.83 21.39 18.21 12.14 6.07 0.00

62 30.40 28.88 27.06 25.54 24.02 22.50 19.15 12.77 6.38 0.00

63 31.90 30.31 28.39 26.80 25.20 23.61 20.10 13.40 6.70 0.00

64 33.40 31.73 29.73 28.06 26.39 24.72 21.04 14.03 7.01 0.00

65 34.90 33.16 31.06 29.32 27.57 25.83 21.99 14.66 7.33 0.00

66 36.40 34.58 32.40 30.58 28.76 26.94 22.93 15.29 7.64 0.00

67 37.90 36.01 33.73 31.84 29.94 28.05 23.88 15.92 7.96 0.00

68 39.40 37.43 35.06 33.09 31.12 29.15 24.82 16.54 8.27 0.00

69 40.90 38.85 36.40 34.35 32.31 30.26 25.76 17.17 8.58 0.00

C-7PAGE 65



9 ormore

70 42.40 40.28 37.73 35.61 33.49 31.37 26.71 17.80 8.90 0.00

71 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

72 43.90 41.70 39.07 36.87 34.68 32.48 27.65 18.43 9.21 0.00

73 43.10 40.94 38.35 36.20 34.04 31.89 27.15 18.10 9.05 0.00

74 42.20 40.09 37.55 35.44 33.33 31.22 26.58 17.72 8.86 0.00

75 41.40 39.33 36.84 34.77 32.70 30.63 26.08 17.38 8.69 0.00

76 41.00 38.95 36.49 34.44 32.39 30.34 25.83 17.22 8.61 0.00

77 40.60 38.57 36.13 34.10 32.07 30.04 25.57 17.05 8.52 0.00

78 40.20 38.19 35.77 33.76 31.75 29.74 25.32 16.88 8.44 0.00

79 38.80 36.86 34.53 32.59 30.65 28.71 24.44 16.29 8.14 0.00

80 38.80 36.86 34.53 32.59 30.65 28.71 24.44 16.29 8.14 0.00

C-8PAGE 66

The Statement of Additional Information (“SAI”) dated May 1, 2016 contains additional information aboutthe Policy and the Variable Account. The Table of Contents for the SAI appears near the end of this prospectus. TheSAI has been filed with the SEC and is incorporated by reference into this prospectus.

You can obtain the SAI (at no cost) by writing to the Service Center at the address shown on the front coveror by calling 1-877-376-8008.

The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other informationabout us and the Policy. More information about us and the Policy (including the SAI) may also be reviewed andcopied at the SEC’s Public Reference Room in Washington, DC, or may be obtained, upon payment of a duplicatingfee, by writing the Public Reference Section of the SEC, 100 F Street, N.E., Washington, DC 20549. Additionalinformation on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090.

Farmers Financial Solutions, LLC (“FFS”) serves as the principal underwriter and distributor of the Policies.You may obtain more information about FFS and its registered representatives at http://www.finra.org or by calling1-800-289-9999. You also can obtain an investor brochure from the Financial Industry Regulatory Authority(“FINRA”), describing its Public Disclosure Program.

SEC File No. 333-149540/811-09507

PAGE 67

[THIS PAGE INTENTIONALLY LEFT BLANK]

PAGE 68


Asset Al location Fund

Summary prospectus Class 2 shares May 1, 2016

Before you invest, you may want to review the fund’s prospectus and statementof additional information, which contain more information about the fund and itsrisks. You can find the fund’s prospectus, statement of additional information andother information about the fund online at americanfunds.com/afis. You can also get this information at no cost by calling (800) 421-9900, ext. 65413 or by sending an email request to [email protected]. The current prospectus and statement of additional information, dated May 1, 2016, are incorporated by reference into this summary prospectus.

PAGE 69

1 American Funds Insurance Series – Asset Allocation Fund / Summary prospectus

Investment objective The fund’s investment objective is to provide you with high total return (including income and capital gains) consistent with preservation of capital over the long term.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold an interest in Class 2 shares of the fund. It does not reflect insurance contract fees and expenses. If insurance contract fees and expenses were reflected, expenses shown would be higher.

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment) Class 2

Management fee 0.28% Distribution and/or service (12b-1) fees 0.25 Other expenses 0.01 Total annual fund operating expenses 0.54

Example This example is intended to help you compare the cost of investing in Class 2 shares of the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The example does not reflect insurance contract expenses. If insurance contract expenses were reflected, expenses shown would be higher. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 year 3 years 5 years 10 years

Class 2 $55 $173 $302 $677

Portfolio turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 76% of the average value of its portfolio.

Principal investment strategies In seeking to pursue its investment objective, the fund varies its mix of equity securities, debt securities and money market instruments. Under normal market conditions, the fund’s investment adviser expects (but is not required) to maintain an investment mix falling within the following ranges: 40%-80% in equity securities, 20%-50% in debt securities and 0%-40% in money market instruments and cash. As of December 31, 2015, the fund was approximately 66% invested in equity securities, 24% invested in debt securities and 10% invested in money market instruments and cash. The proportion of equities, debt and money market securities held by the fund varies with market conditions and the investment adviser’s assessment of their relative attractiveness as investment opportunities.

The fund invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments (debt securities maturing in one year or less). The fund may invest up to 15% of its assets in common stocks and other equity securities of issuers domiciled outside the United States and up to 5% of its assets in debt securities of issuers domiciled outside the United States. In addition, the fund may invest up to 25% of its debt assets in lower quality debt securities (rated Ba1 or below and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser). Such securities are sometimes referred to as “junk bonds.”

The investment adviser uses a system of multiple portfolio managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers who decide how their respective segments will be invested.

The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively priced securities that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

PAGE 70

American Funds Insurance Series – Asset Allocation Fund / Summary prospectus 2

Principal risks This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments.

Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at, the companies in which the fund invests.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Thinly traded securities — There may be little trading in the secondary market for particular bonds, other debt securities or derivatives, which may make them more difficult to value, acquire or sell.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact revenues. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Asset allocation — The fund’s percentage allocation to equity securities, debt securities and money market instruments could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.

PAGE 71

3 American Funds Insurance Series – Asset Allocation Fund / Summary prospectus

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The 60%/40% S&P/Barclays Index is a composite blend of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Index and represents a broad measure of the U.S. stock and bond markets, including market sectors in which the fund may invest. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.

Calendar year total returns

Highest/Lowest quarterly results during this period were:

Highest 11.57% (quarter ended September 30, 2009)

Lowest –16.35% (quarter ended December 31, 2008)

(%)

0

10

20

30

–30

–10

–20

’12 ’14’06 ’07 ’08 ’09

23.98

’10

12.50

’11 ’13–40

23.69

1.30

–29.51

14.66 16.19

5.406.55

’15

1.40

Average annual total returns For the periods ended December 31, 2015: 1 year 5 years 10 years Lifetime*

Fund 1.40% 9.24% 6.45% 8.08%

S&P 500 Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

1.38 12.57 7.31 9.31

Barclays U.S. Aggregate Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

0.55 3.25 4.51 6.25

60%/40% S&P/Barclays Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes)

1.28 8.95 6.48 8.36

* Lifetime results are from August 1, 1989, the date the fund began investment operations. Class 2 shares were first offered on April 30, 1997; therefore, results for the fund prior to that date assume a hypothetical investment in Class 1 shares, reduced by the .25% annual expense that applies to Class 2 shares and is described in the “Plan of distribution” section of this prospectus. Results for Class 1 shares are comparable to those of Class 2 shares because both classes invest in the same portfolio of securities.

PAGE 72

INA2IPX-070-0516P Printed in USA CGD/AFD/8024 Investment Company File No. 811-03857

Management Investment adviser Capital Research and Management CompanySM

Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:

Portfolio manager/ Series title (if applicable)

Portfolio manager experience in this fund

Primary title with investment adviser

Alan N. Berro President

16 years Partner – Capital World Investors

J. David Carpenter 3 years Partner – Capital World Investors

David A. Daigle 7 years Partner – Capital Fixed Income Investors

Jeffrey T. Lager 9 years Partner – Capital World Investors

James R. Mulally 10 years Partner – Capital Fixed Income Investors

Tax information See your variable insurance contract prospectus for information regarding the federal income tax treatment of your variable insurance contract and related distributions.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as an insurance company), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information. The fund is not sold directly to the general public but instead is offered as an underlying investment option for variable insurance contracts. In addition to payments described above, the fund and its related companies may make payments to the sponsoring insurance company (or its affiliates) for distribution and/or other services. These payments may be a factor that the insurance company considers in including the fund as an underlying investment option in the variable insurance contract. The prospectus (or other offering document) for your variable insurance contract may contain additional information about these payments.

PAGE 73


Capital Income Builder®



PAGE 74

1 American Funds Insurance Series – Capital Income Builder / Summary prospectus

Investment objectives The fund has two primary investment objectives. It seeks (1) to provide you with a level of current income that exceeds the average yield on U.S. stocks generally and (2) to provide you with a growing stream of income over the years. The fund’s secondary objective is to provide you with growth of capital.



Management fee 0.50% Distribution and/or service (12b-1) fees* 0.25 Other expenses* 0.06 Total annual fund operating expenses 0.81

* Based on estimated amounts for the current fiscal year.




Class 2 $83 $259 $450 $1,002


Principal investment strategies The fund normally will invest at least 90% of its assets in income-producing securities (with at least 50% of its assets in common stocks and other equity securities). The fund invests primarily in a broad range of income-producing securities, including common stocks and bonds. In seeking to provide you with a level of current income that exceeds the average yield on U.S. stocks, the fund generally looks to the average yield on stocks of companies listed on the S&P 500 Index. The fund may also invest significantly in common stocks, bonds and other securities of issuers domiciled outside the United States.


The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued securities that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

PAGE 75

American Funds Insurance Series – Capital Income Builder / Summary prospectus 2


Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.



Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

PAGE 76

3 American Funds Insurance Series – Capital Income Builder / Summary prospectus




Investment results The following bar chart shows the fund’s investment results of the Class 2 shares of the fund for its first full calendar year of operations, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of market results. This information provides some indication of the risks of investing in the fund. The 70%/30% MSCI ACWI/Barclays Index is a composite blend of 70% of the MSCI All Country World Index (ACWI) and 30% of the Barclays U.S. Aggregate Index and represents a broad measure of the global stock and bond markets, including market sectors in which the fund may invest. The Lipper Global Equity Income Funds Average includes funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.



Highest 2.79% (quarter ended December 31, 2015)

Lowest –4.97% (quarter ended September 30, 2015)

(%)

2

4

6

8

–4

0

–2

’15–6

–1.23

Average annual total returns For the periods ended December 31, 2015: 1 year Lifetime

Fund (inception date — 5/1/14) –1.23% –0.67%

MSCI All Country World Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

–2.36 –0.29

Barclays U.S. Aggregate Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

0.55 2.09

70%/30% MSCI ACWI/Barclays Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

–1.30 0.55

Lipper Global Equity Income Funds Average (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

–3.48 –2.57

PAGE 77







David J. Betanzos 2 years Partner – Capital Fixed Income Investors Darcy Kopcho 2 years Partner – Capital International Investors

Theodore R. Samuels 2 years Partner – Capital International Investors

Philip Winston 2 years Partner – Capital International Investors



PAGE 78


Growth Fund



PAGE 79

1 American Funds Insurance Series – Growth Fund / Summary prospectus

Investment objective The fund’s investment objective is to provide you with growth of capital.







Class 2 $61 $192 $335 $750


Principal investment strategies The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The fund may invest up to 25% of its assets in common stocks and other securities of issuers domiciled outside the United States.


The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

PAGE 80

American Funds Insurance Series – Growth Fund / Summary prospectus 2


Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.


Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.




Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Growth Funds Index and the Lipper Capital Appreciation Funds Index include mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.



Highest 18.50% (quarter ended June 30, 2009)


(%)

01020304050

–30–40

–10–20

–50

’12 ’14 ’15’06 ’07 ’08 ’09 ’10

18.68

’11 ’13

12.35 8.51

–60

30.11

6.86

39.41

–43.97

17.8910.22

–4.27

PAGE 81



Fund 6.86% 11.23% 6.93% 12.17%


1.38 12.57 7.31 11.08

Lipper Growth Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

2.15 11.55 6.48 9.36

Lipper Capital Appreciation Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

0.74 10.22 7.28 9.48

* Lifetime results are from February 8, 1984, the date the fund began investment operations. Class 2 shares were first offered on April 30, 1997; therefore, results for the fund prior to that date assume a hypothetical investment in Class 1 shares, reduced by the .25% annual expense that applies to Class 2 shares and is described in the “Plan of distribution” section of this prospectus. Results for Class 1 shares are comparable to those of Class 2 shares because both classes invest in the same portfolio of securities.






Gregory D. Johnson 9 years Partner – Capital World Investors

Michael T. Kerr 11 years Partner – Capital World Investors

Ronald B. Morrow 13 years Partner – Capital World Investors

Andraz Razen 3 years Partner – Capital World Investors

Martin Romo Less than 1 year Partner – Capital World Investors

Alan J. Wilson 2 years Partner – Capital World Investors



PAGE 82


Global Growth Fund



PAGE 83

1 American Funds Insurance Series – Global Growth Fund / Summary prospectus

Investment objective The fund’s investment objective is to provide you with long-term growth of capital.







Class 2 $82 $255 $444 $990


Principal investment strategies The fund invests primarily in common stocks of companies around the world that the investment adviser believes have the potential for growth. As a fund that seeks to invest globally, the fund will allocate its assets among securities of companies domiciled in various countries, including the United States and countries with emerging markets (but in no fewer than three countries). Under normal market conditions, the fund will invest significantly in issuers domiciled outside the United States (i.e., at least 40% of its net assets, unless market conditions are not deemed favorable by the fund’s investment adviser, in which case the fund would invest at least 30% of its net assets in issuers outside the United States).



PAGE 84

American Funds Insurance Series – Global Growth Fund / Summary prospectus 2






Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.



PAGE 85


Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Global Funds Index includes mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.





(%)

01020304050

–30–40

–10–20

–50

’12 ’14 ’15’06 ’07 ’08 ’09 ’10

11.75

’11 ’13–60

29.18

6.94

42.30

–38.39

22.5620.43

–8.89

2.3114.85

Average annual total returns For the periods ended December 31, 2015: 1 year 5 years 10 years Lifetime

Fund (inception date — 4/30/97) 6.94% 9.56% 7.90% 9.31%


–2.36 6.09 4.76 5.47

Lipper Global Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

–1.16 6.14 4.80 5.81






Patrice Collette 1 year Partner – Capital World Investors

Isabelle de Wismes 4 years Partner – Capital World Investors

Galen Hoskin 2 years Partner – Capital World Investors

Jonathan Knowles 3 years Partner – Capital World Investors



PAGE 86


Global Growth and Income Fund



PAGE 87

1 American Funds Insurance Series – Global Growth and Income Fund / Summary prospectus

Investment objective The fund’s investment objective is to provide you with long-term growth of capital while providing current income.







Class 2 $91 $284 $493 $1,096


Principal investment strategies The fund invests primarily in common stocks of well-established companies around the world, which the investment adviser believes have the potential for growth and/or to pay dividends. As a fund that seeks to invest globally, the fund will allocate its assets among securities of companies domiciled in various countries, including the United States and countries with emerging markets (but in no fewer than three countries). Under normal market conditions, the fund will invest significantly in issuers domiciled outside the United States (i.e., at least 40% of its net assets, unless market conditions are not deemed favorable by the fund’s investment adviser, in which case the fund would invest at least 30% of its net assets in issuers outside the United States).

The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund tends to invest in stocks that the investment adviser believes to be relatively resilient to market declines.



PAGE 88

American Funds Insurance Series – Global Growth and Income Fund / Summary prospectus 2










PAGE 89


Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Global Funds Index includes mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.



Highest 19.48% (quarter ended September 30, 2009)


(%)

01020304050

–30–40

–10–20

–50

’12’07 ’08 ’09 ’10 ’11 ’13

12.67

–60

22.54

–41.17

17.5611.78

–4.85

39.72

’14

5.64

’15

–1.34

Average annual total returns For the periods ended December 31, 2015: 1 year 5 years Lifetime

Fund (inception date — 5/1/06) –1.34% 7.39% 5.19%


–2.36 6.09 3.82

Lipper Global Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

–1.16 6.14 3.95






Bradford F. Freer 2 years Partner – Capital World Investors

Nicholas J. Grace Less than 1 year Partner – Capital World Investors

Martin Romo 7 years Partner – Capital World Investors

Andrew B. Suzman 7 years Partner – Capital World Investors



PAGE 90


Growth-Income Fund



PAGE 91

1 American Funds Insurance Series – Growth-Income Fund / Summary prospectus

Investment objectives The fund’s investment objectives are to achieve long-term growth of capital and income.







Class 2 $55 $173 $302 $677


Principal investment strategies The fund invests primarily in common stocks or other securities that the investment adviser believes demonstrate the potential for appreciation and/or dividends. The fund may invest up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States. The fund is designed for investors seeking both capital appreciation and income.



PAGE 92

American Funds Insurance Series – Growth-Income Fund / Summary prospectus 2









Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Growth and Income Funds Index includes mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.





(%)

01020

4030

–40

–10

–30–20

’12 ’14 ’15’06 ’07 ’08 ’09 ’10

11.43

’11

17.48

’13

10.6315.20

1.45

–50–37.85

5.04

33.5031.24

–1.83

PAGE 93



Fund 1.45% 11.56% 6.63% 10.80%


1.38 12.57 7.31 11.08

Lipper Growth and Income Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

–1.61 9.00 5.50 9.53

* Lifetime results are from February 8, 1984, the date the fund began investment operations. Class 2 shares were first offered on April 30, 1997; therefore, results for the fund prior to that date assume a hypothetical investment in Class 1 shares, reduced by the .25% annual expense that applies to Class 2 shares and is described in the “Plan of distribution” section of this prospectus. Results for Class 1 shares are comparable to those of Class 2 shares because both classes invest in the same portfolio of securities.






Donald D. O’Neal Vice Chairman of the Board

11 years Partner – Capital Research Global Investors

Dylan Yolles Vice President 11 years

Partner – Capital International Investors

J. Blair Frank 10 years Partner – Capital Research Global Investors

Claudia P. Huntington 22 years Partner – Capital Research Global Investors

William L. Robbins 4 years Partner – Capital International Investors



PAGE 94


International Fund



PAGE 95

1 American Funds Insurance Series – International Fund / Summary prospectus

Investment objective The fund’s investment objective is to provide you with long-term growth of capital.







Class 2 $81 $252 $439 $978


Principal investment strategies The fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in developing countries, that the investment adviser believes have the potential for growth.



PAGE 96

American Funds Insurance Series – International Fund / Summary prospectus 2









PAGE 97


Investment results The following bar chart shows how the investment results of the Class 2 shares of the fund have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper International Funds Index includes mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Figures shown reflect fees and expenses associated with an investment in the fund, but do not reflect insurance contract fees and expenses. If insurance contract fees and expenses were included, results would have been lower. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com/afis.




Lowest –21.89% (quarter ended September 30, 2011)

(%)

01020304050

–30–40

–10–20

–50

’12 ’14’06 ’07 ’08 ’09 ’10

7.23

’11 ’13–60

21.64

43.07

17.91

–13.96

–42.12

–2.65

’15

20.0218.98

–4.53


Fund –4.53% 2.78% 3.81% 7.63%

MSCI All Country World ex USA Index (reflects no deduction for sales charges, account fees, expenses or U.S. federal income taxes)

–5.66 1.06 2.92 5.42

Lipper International Funds Index (reflects no deduction for sales charges, account fees or U.S. federal income taxes)

–1.34 3.23 3.63 6.18

* Lifetime results are from May 1, 1990, the date the fund began investment operations. Class 2 shares were first offered on April 30, 1997; therefore, results for the fund prior to that date assume a hypothetical investment in Class 1 shares, reduced by the .25% annual expense that applies to Class 2 shares and is described in the “Plan of distribution” section of this prospectus. Results for Class 1 shares are comparable to those of Class 2 shares because both classes invest in the same portfolio of securities.






Sung Lee Vice President

10 years Partner – Capital Research Global Investors

L. Alfonso Barroso 7 years Partner – Capital Research Global Investors

Jesper Lyckeus 9 years Partner – Capital Research Global Investors

Christopher Thomsen 10 years Partner – Capital Research Global Investors



PAGE 98

Summary Prospectus | May 1, 2016

Deutsche Bond VIP

Class A

Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks.You can findthe fund’s prospectus, Statement of Additional Information and other information about the fund online at deutschefunds.com/vipros.You canalso get this information at no cost by e-mailing a request to [email protected], calling (800) 728-3337 or by contacting your insurance company.The prospectus and Statement of Additional Information, both dated May 1, 2016, as supplemented, are incorporated by reference into thisSummary Prospectus.

INVESTMENT OBJECTIVE

The fund seeks to maximize total return consistent withpreservation of capital and prudent investmentmanagement.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses you may pay ifyou buy and hold shares of the fund. This information doesnot reflect fees associated with the separate account thatinvests in the fund or any variable life insurance policy orvariable annuity contract for which the fund is an invest-ment option. These fees will increase expenses.

SHAREHOLDER FEES(paid directly from your investment) None

ANNUAL FUND OPERATING EXPENSES(expenses that you pay each year as a % of the value of your investment)

Management fee 0.39

Distribution/service (12b-1) fees None

Other expenses 0.30

Total annual fund operating expenses 0.69

Fee waiver/expense reimbursement 0.05

Total annual fund operating expenses after fee waiver/expense reimbursement 0.64

The Advisor has contractually agreed through April 30,2017 to waive its fees and/or reimburse fund expenses tothe extent necessary to maintain the fund’s total annualoperating expenses at a ratio no higher than 0.64%(excluding certain expenses such as extraordinaryexpenses, taxes, brokerage and interest expenses) forClass A shares. The agreement may only be terminatedwith the consent of the fund’s Board.

EXAMPLEThis Example is intended to help you compare the cost ofinvesting in the fund with the cost of investing in othermutual funds. The Example assumes that you invest$10,000 in the fund for the time periods indicated and then

redeem all of your shares at the end of those periods. TheExample also assumes that your investment has a 5%return each year and that the fund’s operating expenses(including one year of capped expenses in each period)remain the same. This example does not reflect any feesor sales charges imposed by a variable contract for whichthe fund is an investment option. If they were included,your costs would be higher.

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

1Year 3Years 5Years 10Years

$65 $216 $379 $854

PORTFOLIO TURNOVERThe fund pays transaction costs, such as commissions,when it buys and sells securities (or “turns over” its port-folio). A higher portfolio turnover may indicate highertransaction costs. These costs are not reflected in annualfund operating expenses or in the expense example, butcan affect the fund’s performance.

Portfolio turnover rate for fiscal year 2015: 197%.

PRINCIPAL INVESTMENT STRATEGY

Main investments. Under normal circumstances, the fundinvests at least 80% of net assets, plus the amount ofany borrowings for investment purposes, in bonds of anymaturity. The fund invests mainly in US dollar-denominatedfixed income securities, including corporate bonds, USgovernment and agency bonds and mortgage- and asset-backed securities. The fund may also invest significantly inforeign investment grade fixed income securities,non-investment grade securities (high yield or junk bonds)of US and foreign issuers (including issuers in countrieswith new or emerging securities markets), or, to maintainliquidity, in cash or money market instruments.

The fund may also invest in affiliated mutual funds. Thefund may invest up to 5% of net assets in shares of thefollowing funds: Deutsche Enhanced Emerging Markets

1

PAGE 99

Fixed Income Fund, which invests primarily in high yieldemerging market bonds; Deutsche Floating Rate Fund,which invests primarily in senior loans; and Deutsche HighIncome Fund, which invests primarily in high yield bonds.

Management process. In choosing securities, portfoliomanagement uses distinct processes for various types ofsecurities.

US investment grade securities. Portfolio managementtypically:� ranks securities based on portfolio management’sassessment of creditworthiness, cash flow and price

� seeks to determine the value of each security by exam-ining the issuer’s credit quality, debt structure, optionvalue and liquidity risks to identify any inefficienciesbetween this value and market trading price

� uses credit analysis in an effort to determine the issuer’sability to fulfill its contracts

� uses a bottom-up approach that subordinates sectorweightings to individual securities that portfolio manage-ment believes may add above-market value

Foreign investment grade and emerging markets high

yield securities. Portfolio management uses a relativevalue strategy that seeks to identify the most attractiveforeign markets, then searches those markets for securi-ties that portfolio management believes offer incrementalvalue over USTreasuries.With emerging market securities,portfolio management also considers short-term factorssuch as market sentiment, capital flows, and new issueprograms.

High yield securities (other than emerging markets

securities). Portfolio management typically:� analyzes economic conditions for improving or under-valued sectors and industries

� uses independent credit research and on-site manage-ment visits to evaluate individual issuer’s debt service,growth rate, and both downgrade and upgrade potential

� assesses new issues versus secondary market opportu-nities

� seeks issues within attractive industry sectors and withstrong long-term fundamentals and improving credit

Derivatives. Portfolio management generally may usefutures contracts, options on interest rate swaps, optionson interest rate futures contracts, or interest rate swaps,which are types of derivatives (a contract whose value isbased on, for example, indices, currencies or securities),for duration management (i.e., reducing or increasing thesensitivity of the fund’s portfolio to interest rate changes)or for non-hedging purposes to seek to enhance potentialgains. Portfolio management may also use (i) optioncontracts in order to gain exposure to a particular marketor security, to seek to increase the fund’s income, or tohedge against changes in a particular market or security, (ii)total return swaps to seek to enhance potential gains byincreasing or reducing the fund’s exposure to a particularsector or market or as a substitute for direct investment, or(iii) credit default swaps to seek to increase the fund’s

income, to gain exposure to a bond issuer’s credit qualitycharacteristics without directly investing in the bond orto hedge the risk of default on bonds held in the fund’sportfolio. In addition, portfolio management generally mayuse forward currency contracts (i) to hedge exposure tochanges in foreign currency exchange rates on foreigncurrency denominated portfolio holdings; (ii) to facilitatetransactions in foreign currency denominated securities; or(iii) for non-hedging purposes to seek to enhance poten-tial gains.

The fund may also use other types of derivatives (i) forhedging purposes; (ii) for risk management; (iii) fornon-hedging purposes to seek to enhance potential gains;or (iv) as a substitute for direct investment in a particularasset class or to keep cash on hand to meet shareholderredemptions.

Securities Lending.The fund may lend securities (up toone-third of total assets) to approved institutions.

ActiveTrading.The fund may trade actively. This couldraise transaction costs (thus lowering returns).

MAIN RISKS

There are several risk factors that could hurt the fund’sperformance, cause you to lose money or cause the fund’sperformance to trail that of other investments. The fundmay not achieve its investment objective, and is notintended to be a complete investment program. An invest-ment in the fund is not a deposit of a bank and is notinsured or guaranteed by the Federal Deposit InsuranceCorporation or any other governmental agency.

Interest rate risk.When interest rates rise, prices of debtsecurities generally decline. The fund may be subject toa greater risk of rising interest rates due to the currentperiod of historically low rates. The longer the duration ofthe fund’s debt securities, the more sensitive the fund willbe to interest rate changes. (As a general rule, a 1% risein interest rates means a 1% fall in value for every year ofduration.)

Credit risk.The fund’s performance could be hurt if anissuer of a debt security suffers an adverse change in finan-cial condition that results in the issuer not making timelypayments of interest or principal, a security downgrade oran inability to meet a financial obligation. Credit risk isgreater for lower-rated securities.

Because the issuers of high-yield debt securities or junkbonds (debt securities rated below the fourth highestcredit rating category) may be in uncertain financial health,the prices of their debt securities can be more vulnerableto bad economic news, or even the expectation of badnews, than investment-grade debt securities. Credit riskfor high-yield securities is greater than for higher-ratedsecurities.

For securities that rely on third-party guarantors to supporttheir credit quality, the same risks may apply if the finan-cial condition of the guarantor deteriorates or the guarantor

2 Deutsche Bond VIP

Summary Prospectus May 1, 2016

PAGE 100

ceases to insure securities. Because guarantors mayinsure many types of securities, including subprime mort-gage bonds and other high-risk bonds, their financialcondition could deteriorate as a result of events that havelittle or no connection to securities owned by the fund.

Some securities issued by US government agencies orinstrumentalities are backed by the full faith and credit ofthe US government. Other securities that are supportedonly by the credit of the issuing agency or instrumentalityare subject to greater credit risk than securities backedby the full faith and credit of the US government. This isbecause the US government might provide financialsupport, but has no obligation to do so, if there is a poten-tial or actual loss of principal or failure to make interestpayments.

Because of the rising US government debt burden, it ispossible that the US government may not be able to meetits financial obligations or that securities issued by theUS government may experience credit downgrades. Sucha credit event may also adversely impact the financialmarkets and the fund.

High-yield debt securities risk. High-yield debt securitiesor junk bonds are generally regarded as speculative withrespect to the issuer’s continuing ability to meet principaland interest payments. High-yield debt securities’ totalreturn and yield may generally be expected to fluctuatemore than the total return and yield of investment-gradedebt securities. A real or perceived economic downturn oran increase in market interest rates could cause a declinein the value of high-yield debt securities, result inincreased redemptions and/or result in increased portfolioturnover, which could result in a decline in net asset valueof the fund, reduce liquidity for certain investments and/orincrease costs. High-yield debt securities are often thinlytraded and can be more difficult to sell and value accuratelythan investment-grade debt securities as there may beno established secondary market. Investments in high-yield debt securities could increase liquidity risk for thefund. In addition, the market for high-yield debt securitiescan experience sudden and sharp volatility which is gener-ally associated more with investments in stocks.

Prepayment and extension risk.When interest rates fall,issuers of high interest debt obligations may pay off thedebts earlier than expected (prepayment risk), and thefund may have to reinvest the proceeds at lower yields.When interest rates rise, issuers of lower interest debtobligations may pay off the debts later than expected(extension risk), thus keeping the fund’s assets tied up inlower interest debt obligations. Ultimately, any unexpectedbehavior in interest rates could increase the volatility ofthe fund’s share price and yield and could hurt fund perfor-mance.

Senior loans risk. The fund invests in senior loans thatmay not be rated by a rating agency, registered with theSecurities and Exchange Commission or any state securi-ties commission or listed on any national securities

exchange. Therefore, there may be less publicly availableinformation about them than for registered or exchange-listed securities. The Advisor relies on its own evaluation ofthe creditworthiness of borrowers, but will consider, andmay rely in part on, analyses performed by others. As aresult, the fund is particularly dependent on the analyticalabilities of the Advisor.

Senior loans may not be considered “securities,” andpurchasers, such as the fund, therefore may not be entitledto rely on the anti-fraud and misrepresentation protec-tions of the federal securities laws. Senior loans involveother risks, including credit risk, interest rate risk, liquidityrisk, and prepayment and extension risk.

Affiliates of the Advisor may participate in the primary andsecondary market for senior loans. Because of limitationsimposed by applicable law, the presence of the Advisor’saffiliates in the senior loan market may restrict the fund’sability to participate in a restructuring of a senior loan or toacquire some senior loans, or affect the timing or price ofsuch acquisition. The fund also may be in possession ofmaterial non-public information about a borrower as aresult of its ownership of a senior loan. Because of prohibi-tions on trading in securities of issuers while inpossession of such information, the fund might be unableto enter into a transaction in a publicly-traded security ofthat borrower when it would otherwise be advantageousto do so. If the Advisor wishes to invest in the publiclytraded securities of a borrower, it may not have access tomaterial non-public information regarding the borrowerto which other lenders have access.

Foreign investment risk. The fund faces the risksinherent in foreign investing. Adverse political, economicor social developments could undermine the value of thefund’s investments or prevent the fund from realizing thefull value of its investments. Financial reporting standardsfor companies based in foreign markets differ from thosein the US. Additionally, foreign securities markets generallyare smaller and less liquid than US markets. To the extentthat the fund invests in non-US dollar denominated foreignsecurities, changes in currency exchange rates may affectthe US dollar value of foreign securities or the income orgain received on these securities.

Emerging markets risk. Foreign investment risks aregreater in emerging markets than in developed markets.Investments in emerging markets are often consideredspeculative.

Derivatives risk. Risks associated with derivatives mayinclude the risk that the derivative is not well correlatedwith the security, index or currency to which it relates; therisk that derivatives may result in losses or missed opportu-nities; the risk that the fund will be unable to sell thederivative because of an illiquid secondary market; the riskthat a counterparty is unwilling or unable to meet its obli-gation; and the risk that the derivative transaction could

3 Deutsche Bond VIP


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expose the fund to the effects of leverage, which couldincrease the fund’s exposure to the market and magnifypotential losses.

Security selection risk.The securities in the fund’s port-folio may decline in value. Portfolio management could bewrong in its analysis of industries, companies, economictrends, the relative attractiveness of different securities orother matters.

Market risk.The market value of the securities in whichthe fund invests may be impacted by the prospects of indi-vidual issuers, particular sectors or governments and/orgeneral economic conditions throughout the world due toincreasingly interconnected global economies and financialmarkets.

Counterparty risk. A financial institution or othercounterparty with whom the fund does business, or thatunderwrites, distributes or guarantees any investments orcontracts that the fund owns or is otherwise exposed to,may decline in financial health and become unable tohonor its commitments. This could cause losses for thefund or could delay the return or delivery of collateral orother assets to the fund.

Liquidity risk. In certain situations, it may be difficult orimpossible to sell an investment and/or the fund may sellcertain investments at a price or time that is not advan-tageous in order to meet redemption requests or othercash needs. Unusual market conditions, such as an unusu-ally high volume of redemptions or other similar conditionscould increase liquidity risk for the fund, and in extremeconditions the fund could have difficulty meeting redemp-tion requests.

Pricing risk. If market conditions make it difficult to valuesome investments, the fund may value these investmentsusing more subjective methods, such as fair value pricing.In such cases, the value determined for an investmentcould be different from the value realized upon such invest-ment’s sale. As a result, you could pay more than themarket value when buying fund shares or receive less thanthe market value when selling fund shares.

Securities lending risk. Any decline in the value of a port-folio security that occurs while the security is out on loanis borne by the fund and will adversely affect performance.Also, there may be delays in recovery of securities loanedor even a loss of rights in the collateral should theborrower of the securities fail financially while holding thesecurity.

Active trading risk.The fund may trade actively. This couldraise transaction costs (thus lowering returns).

Operational and technology risk. Cyber-attacks, disrup-tions, or failures that affect the fund’s service providers orcounterparties, issuers of securities held by the fund, orother market participants may adversely affect the fundand its shareholders, including by causing losses for thefund or impairing fund operations.

PAST PERFORMANCE

How a fund’s returns vary from year to year can give anidea of its risk; so can comparing fund performance tooverall market performance (as measured by an appro-priate market index). Past performance may not indicatefuture results. All performance figures below assume thatdividends and distributions were reinvested. For morerecent performance figures, go to deutschefunds.com (theWeb site does not form a part of this prospectus) or callthe phone number included in this prospectus. This informa-tion doesn’t reflect fees associated with the separateaccount that invests in the fund or any variable life insur-ance policy or variable annuity contract for which the fundis an investment option. These fees will reduce returns.

CALENDAR YEAR TOTAL RETURNS (%) (CLASS A)

4.72 4.18

-16.77

10.076.79 5.68 7.77

-3.03

6.63

-0.29

-30

-20

-10

0

10

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Returns Period ending

Best Quarter 4.95% September 30, 2009Worst Quarter -11.29% December 31, 2008Year-to-Date 4.37% March 31, 2016

AVERAGE ANNUAL TOTAL RETURNS(For periods ended 12/31/2015 expressed as a %)

ClassInception

1Year

5Years

10Years

Class A 7/16/1985 -0.29 3.27 2.28

Barclays U.S. AggregateBond Index (reflects nodeduction for fees,expenses or taxes) 0.55 3.25 4.51

MANAGEMENT

Investment Advisor

Deutsche Investment Management Americas Inc.

Portfolio Manager(s)

John D. Ryan, Managing Director. Portfolio Manager ofthe fund. Began managing the fund in 2012.

Gary Russell, CFA, Managing Director. Portfolio Managerof the fund. Began managing the fund in 2012.

Thomas M. Farina, CFA, Managing Director. PortfolioManager of the fund. Began managing the fund in 2016.

Gregory M. Staples, CFA, Managing Director. PortfolioManager of the fund. Began managing the fund in 2016.

4 Deutsche Bond VIP


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PURCHASE AND SALE OF FUND SHARES

The fund is intended for use in a variable insurance

product.You should contact the sponsoring insurancecompany for information on how to purchase and sellshares of the fund.

TAX INFORMATION

The fund normally distributes its net investment incomeand realized capital gains, if any, to its shareholders, theseparate accounts of participating insurance companies.These distributions may not be taxable to the holders ofvariable annuity contracts and variable life insurance poli-cies. For information concerning the federal income taxconsequences for the holders of such contracts or policies,holders should consult the prospectus used in connec-tion with the issuance of their particular contracts orpolicies.

PAYMENTS TO FINANCIAL INTERMEDIARIES

If you purchase the fund through selected affiliated andunaffiliated brokers, dealers, participating insurance compa-nies or other financial intermediaries, the fund, theAdvisor, and/or the Advisor’s affiliates, may pay the finan-cial intermediary for the sale of fund shares and relatedservices. These payments may create a conflict of interestby influencing the financial intermediary and your sales-person to recommend the fund over another investment.Ask your salesperson or visit your insurance company’sWeb site for more information.

5 Deutsche Bond VIP

Summary Prospectus May 1, 2016 1A-BOND-SUM

PAGE 103


Deutsche Global Small Cap VIP

Class A



The fund seeks above-average capital appreciation overthe long term.





Management fee 0.89


Other expenses 0.23





EXAMPLEThis Example is intended to help you compare the cost ofinvesting in the fund with the cost of investing in othermutual funds. The Example assumes that you invest$10,000 in the fund for the time periods indicated and thenredeem all of your shares at the end of those periods. The

Example also assumes that your investment has a 5%return each year and that the fund’s operating expenses(including one year of capped expenses in each period)remain the same. This example does not reflect any feesor sales charges imposed by a variable contract for whichthe fund is an investment option. If they were included,your costs would be higher.



$109 $351 $612 $1,359




Main investments.The fund invests at least 80% of netassets, plus the amount of any borrowings for investmentpurposes, in common stocks and other equities of smallcompanies throughout the world (companies with marketvalues similar to the smallest 30% of the aggregate marketcapitalization of the S&P Developed Broad Market Index).Companies in which the fund invests typically have amarket capitalization of between $500 million and $5 billionat the time of purchase. As part of the investment processthe fund may own stocks even if they are outside thismarket capitalization range.While the market capitalizationrange of the S&P Developed Broad Market Index changesthroughout the year, as of the most recent reconstitutiondate of the index (March 18, 2016), companies in the indexhad a median market capitalization of approximately $953billion.

1

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While the fund may invest in securities of any country,portfolio management generally focuses on countries withdeveloped economies (including the US).

The fund may invest up to 20% of total assets in commonstocks and other equities of large companies or in debtsecurities, including up to 5% of net assets in junk bonds(grade BB/Ba and below).

Management process. In choosing securities, portfoliomanagement uses a combination of three analyticaldisciplines:� Bottom-up research. Portfolio management looks forindividual companies that it believes have a history ofabove average growth, strong competitive positioning,attractive prices relative to potential growth, sound finan-cial strength and effective management, among otherfactors.

� Growth orientation. Portfolio management generallylooks for companies that it believes have above-averagepotential for sustainable growth of revenue or earningsand whose market value appears reasonable in light oftheir business prospects.

� Analysis of global themes. Portfolio managementconsiders global economic outlooks, seeking to identifyindustries and companies that are likely to benefit fromsocial, political and economic changes.


MAIN RISKS


Stock market risk.When stock prices fall, you shouldexpect the value of your investment to fall as well. Stockprices can be hurt by poor management on the part of thestock’s issuer, shrinking product demand and other busi-ness risks. These may affect single companies as well asgroups of companies. In addition, movements in financialmarkets may adversely affect a stock’s price, regardless ofhow well the company performs. The market as a wholemay not favor the types of investments the fund makes,which could affect the fund’s ability to sell them at anattractive price. To the extent that the fund invests in aparticular geographic region, capitalization or sector, thefund’s performance may be affected by the general perfor-mance of that region, capitalization or sector.

Small company risk. Small company stocks tend to bemore volatile than medium-sized or large company stocks.Because stock analysts are less likely to follow smallcompanies, less information about them is available to

investors. Industry-wide reversals may have a greaterimpact on small companies, since they may lack the finan-cial resources of larger companies. Small company stocksare typically less liquid than large company stocks.



Growth investing risk. As a category, growth stocks mayunderperform value stocks (and the stock market as awhole) over any period of time. Because the prices ofgrowth stocks are based largely on the expectation offuture earnings, growth stock prices can decline rapidlyand significantly in reaction to negative news about suchfactors as earnings, the economy, political developments,or other news.



Credit risk.The fund’s performance could be hurt if anissuer of a debt security suffers an adverse change in finan-cial condition that results in the issuer not making timelypayments of interest or principal, security downgrade orinability to meet a financial obligation. Credit risk is greaterfor lower-rated securities.

Because the issuers of high-yield debt securities or junkbonds (debt securities rated below the fourth highestcredit rating category) may be in uncertain financial health,the prices of their debt securities can be more vulnerableto bad economic news, or even the expectation of badnews, than investment-grade debt securities. High-yield

2 Deutsche Global Small Cap VIP


PAGE 105

debt securities are considered speculative, and credit riskfor high-yield securities is greater than for higher-ratedsecurities.


Prepayment and extension risk.When interest rates fall,issuers of high interest debt obligations may pay off thedebts earlier than expected (prepayment risk), and thefund may have to reinvest the proceeds at lower yields.When interest rates rise, issuers of lower interest debtobligations may pay off the debts later than expected(extension risk), thus keeping the fund’s assets tied up inlower interest debt obligations. Ultimately, any unexpectedbehavior in interest rates could increase the volatility ofthe fund’s share price and yield and could hurt fundperformance.

Liquidity risk. In certain situations, it may be difficult orimpossible to sell an investment and/or the fund may sellcertain investments at a price or time that is not advan-tageous in order to meet redemption requests or othercash needs. Unusual market conditions, such as an unusu-ally high volume of redemptions or other similar conditionscould increase liquidity risk for the fund.




PAST PERFORMANCE



22.089.33

-49.96

48.2026.64

-9.90

15.3735.94

-4.13

1.16

-100

-50

0

50

100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 30.33% June 30, 2009Worst Quarter -28.40% December 31, 2008Year-to-Date -2.20% March 31, 2016


ClassInception

1Year

5Years

10Years

Class A 5/1/1996 1.16 6.51 5.56

S&P DevelopedSmallCap Index (reflectsno deduction for fees,expenses or taxes) 0.65 8.04 6.43

MANAGEMENT

Investment Advisor



Joseph Axtell, CFA, Managing Director. PortfolioManager of the fund. Began managing the fund in 2002.






PAGE 106

TAX INFORMATION





Summary Prospectus May 1, 2016 1A-GSC-SUM

PAGE 107


Deutsche CROCI® International VIP

Class A



The fund seeks long-term growth of capital.





Management fee 0.79


Other expenses 0.26





EXAMPLEThis Example is intended to help you compare the cost ofinvesting in the fund with the cost of investing in othermutual funds. The Example assumes that you invest$10,000 in the fund for the time periods indicated and thenredeem all of your shares at the end of those periods. TheExample also assumes that your investment has a 5%

return each year and that the fund’s operating expenses(including one year of capped expenses in each period)remain the same. This example does not reflect any feesor sales charges imposed by a variable contract for whichthe fund is an investment option. If they were included,your costs would be higher.



$95 $322 $568 $1,272




Main investments. Although the fund can invest incompanies of any size and from any country, it investsmainly in common stocks of established companies incountries with developed economies (other than theUnited States). The fund’s equity investments may alsoinclude preferred stocks, depositary receipts and othersecurities with equity characteristics, such as convertiblesecurities and warrants.

Management process. Portfolio management will selectapproximately 50 stocks of companies that offer economicvalue utilizing the Cash Return on Capital Invested(CROCI®) strategy as the primary factor, in addition toother factors. Under the CROCI® strategy, economic valueis measured using various metrics such as the CROCI®

Economic Price Earnings Ratio (CROCI® Economic P/ERatio). The CROCI® Economic P/E Ratio is a proprietarymeasure of company valuation using the same relationship

1

PAGE 108

between valuation and return as an accounting P/E ratio(i.e., price/book value divided by return on equity). TheCROCI® Economic P/E Ratio and other CROCI® metricsmay be adjusted from time to time. The CROCI® strategymay apply other measures of company valuation, as deter-mined by the CROCI® Investment Strategy and ValuationGroup. Portfolio management may use criteria other thanthe CROCI® strategy in selecting investments. At times,the number of stocks held in the fund may be higher orlower than 50 stocks at the discretion of portfolio manage-ment or as a result of corporate actions, mergers or otherevents. Portfolio management will select stocks from auniverse consisting of approximately 330 of the largestequities by market capitalization in the MSCI EAFE Index,excluding financial stocks.

The fund is rebalanced periodically in accordance with theCROCI® strategy’s rules (re-selecting approximately 50stocks that will make up the fund), and the regionalweighting in the fund is targeted to match the regionalweighting of the fund’s benchmark, the MSCI EAFE Index.The region-neutral approach attempts to reduce the riskof significant regional over or underweights in the fundrelative to the MSCI EAFE Index benchmark. The CROCI®

strategy does not form opinions about relative attractive-ness of different regions and targets region neutrality inorder to seek to reduce currency risks relative to thebenchmark, as well keeping the focus of the strategy onstock selection, rather than regional allocation. During theselection process, certain portfolio selection buffers areapplied in an attempt to reduce the annual turnover of thestrategy. Portfolio management will take additionalmeasures to attempt to reduce portfolio turnover, marketimpact and transaction costs in connection with implemen-tation of the strategy, by applying liquidity controls andmanaging the fund with tax efficiency in mind. TheCROCI® strategy is supplied by the CROCI® InvestmentStrategy and Valuation Group, a unit within Deutsche AssetManagement, through a licensing agreement with thefund’s Advisor.

Portfolio management may utilize forward currencycontracts to hedge against changes in value of the non−UScurrency exposure of the fund’s investments. To maintainan approximate hedge against such changes, portfoliomanagement expects to periodically reset the fund’sforward currency contracts.

CROCI® Investment Process.The CROCI® InvestmentProcess is based on the belief that the data used in tradi-tional valuations (i.e. accounting data) does not accuratelyappraise assets, reflect all liabilities or represent the realvalue of a company. This is because the accounting rulesare not always designed specifically for investors and oftenutilize widely differing standards which can makemeasuring the real asset value of companies difficult. TheCROCI® Investment Process seeks to generate data thatwill enable valuation comparisons on a consistent basis

resulting in what portfolio management believes is an effec-tive and efficient stock selection process targetinginvestment in real value. Many technical aspects of thegenerally accepted accounting principles of large publicfinancial companies make these companies poorly suitedto consistent valuation using standards maintained by theCROCI® Investment Strategy and Valuation Group. Accord-ingly, financial stocks have been excluded from the fund’sinvestable universe.

Derivatives. Portfolio management generally may usefutures contracts, which are a type of derivative (a contractwhose value is based on, for example, indices, curren-cies or securities) as a substitute for direct investment in aparticular asset class or to keep cash on hand to meetshareholder redemptions. In addition, portfolio manage-ment generally may use forward currency contracts tohedge the fund’s exposure to changes in foreign currencyexchange rates on its foreign currency denominated port-folio holdings or to facilitate transactions in foreigncurrency denominated securities. Portfolio managementgenerally may use structured notes to gain exposure tocertain foreign markets that may not permit direct invest-ment.




MAIN RISKS



2 Deutsche CROCI® International VIP


PAGE 109

Stock market risk.When stock prices fall, you shouldexpect the value of your investment to fall as well. Stockprices can be hurt by poor management on the part of thestock’s issuer, shrinking product demand and other busi-ness risks. These may affect single companies as well asgroups of companies. In addition, movements in financialmarkets may adversely affect a stock’s price, regardless ofhow well the company performs. The market as a wholemay not favor the types of investments the fund makes,which could affect the fund’s ability to sell them at anattractive price. To the extent that the fund invests in aparticular geographic region, capitalization or sector, thefund’s performance may be affected by the general perfor-mance of that region, capitalization or sector.

CROCI® risk.The fund will be managed using the CROCI®

Investment Process which is based on portfolio manage-ment’s belief that, over time, stocks which display morefavorable financial metrics (for example, the CROCI®

Economic P/E ratio) as generated by this process mayoutperform stocks which display less favorable metrics.This premise may not prove to be correct and prospectiveinvestors should evaluate this assumption prior toinvesting in the fund.

The calculation of financial metrics used by the fund (suchas, among others, the CROCI® Economic P/E ratio) aredetermined by the CROCI® Investment Strategy and Valua-tion Group using publicly available information. Thispublicly available information is adjusted based onassumptions made by the CROCI® Investment Strategyand Valuation Group that, subsequently, may prove not tohave been correct. As financial metrics are calculated usinghistorical information, there can be no guarantee of thefuture performance of the CROCI® strategy.

Currency risk. Changes in currency exchange rates mayaffect the value of the fund’s investment and the fund’sshare price. To the extent the fund’s forward currencycontracts are not successful in hedging against suchchanges, the fund’s US dollar share price may go down ifthe value of the local currency of the non−US marketsin which the fund invests depreciates against the US dollar.This is true even if the local currency value of securitiesin the fund’s holdings goes up. Furthermore, the fund’s useof forward currency contracts may eliminate some or allof the benefit of an increase in the value of a foreigncurrency versus the US dollar. The value of the US dollarmeasured against other currencies is influenced by avariety of factors. These factors include: interest rates,national debt levels and trade deficits, changes in balancesof payments and trade, domestic and foreign interest andinflation rates, global or regional political, economic orfinancial events, monetary policies of governments, actualor potential government intervention, global energy prices,political instability and government monetary policies andthe buying or selling of currency by a country’sgovernment.

In order to minimize transaction costs or for other reasons,the fund’s exposure to non−US currencies of the fund’sinvestments may not be fully hedged at all times. Currencyexchange rates can be very volatile and can change quicklyand unpredictably. Therefore, the value of an investment inthe fund may also go up or down quickly andunpredictably.




Derivatives risk. Risks associated with derivatives mayinclude the risk that the derivative is not well correlatedwith the security, index or currency to which it relates; therisk that derivatives may result in losses or missed opportu-nities; the risk that the fund will be unable to sell thederivative because of an illiquid secondary market; the riskthat a counterparty is unwilling or unable to meet its obli-gation; and the risk that the derivative transaction couldexpose the fund to the effects of leverage, which couldincrease the fund’s exposure to the market and magnifypotential losses.






PAGE 110


PAST PERFORMANCE


Prior to May 1, 2014, the fund had a different investmentmanagement team that operated with a different invest-ment strategy. Performance would have been different ifthe fund’s current strategy described above had been ineffect.


25.9114.59

-48.21

33.52

1.62

-16.67

20.65 20.23

-11.76 -5.48

-80

-60

-40

-20

0

20

40

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 23.01% September 30, 2009Worst Quarter -26.71% September 30, 2008Year-to-Date -3.92% March 31, 2016


ClassInception

1Year

5Years

10Years

Class A 5/1/1987 -5.48 0.16 0.22

MSCI EAFE® Index(reflects no deduction forfees, expenses or taxes) -0.81 3.60 3.03

MANAGEMENT

Investment Advisor



Di Kumble, CFA, Managing Director. Portfolio Managerof the fund. Began managing the fund in 2014.

John Moody,Vice President. Portfolio Manager of thefund. Began managing the fund in 2016.




TAX INFORMATION





Summary Prospectus May 1, 2016 1A-CINT-SUM

PAGE 111


Deutsche Large Cap Value VIP

Class A



The fund seeks to achieve a high rate of total return.





Management fee 0.64


Other expenses 0.14




The Advisor has contractually agreed through April 30,2017 to waive its fees and/or reimburse certain operatingexpenses of the fund to the extent necessary to main-tain the fund’s total annual operating expenses (excludingcertain expenses such as extraordinary expenses, taxes,brokerage and interest expenses) at a ratio no higher than0.75% for Class A shares. The agreement may only beterminated with the consent of the fund’s Board.





$77 $246 $430 $963




Main Investments. Under normal circumstances, the fundinvests at least 80% of net assets, plus the amount ofany borrowings for investment purposes, in commonstocks and other equity securities of large US companiesthat are similar in size to the companies in the Russell1000® Value Index and that portfolio management believesare undervalued. These are typically companies that havebeen sound historically, but are temporarily out of favorwith the market. While the market capitalization range ofthe Russell 1000® Value Index changes throughout theyear, as of the most recent reconstitution date of the indexJune 26, 2015 the market capitalization range of theRussell 1000® Value Index was between $252 million and$367.19 billion.

1

PAGE 112

Although the fund can invest in stocks of any economicsector (which is comprised of two or more industries), attimes it may emphasize certain sectors, even investingmore than 25% of total assets in any one sector. The fundmay invest up to 20% of net assets in foreign securities.

Management process. Portfolio management employsa “relative value process” that seeks to identify securitiesthat have strong fundamentals but are at the lower endof their valuation range. Current valuations are comparedto historical valuations to make these determinations.

Portfolio management seeks to achieve superior long-termrisk-adjusted returns by:� Exploiting market inefficiencies through a bottom-up,relative value, research-driven approach

� Identifying companies with leading market positions thatare selling below long-term valuation levels

� Analyzing business models and market and issuer finan-cial factors

� Integrating risk management into the stock selectionand portfolio construction processes

Typically, portfolio management expects to invest in 60-80holdings, drawing on an analysis of economic outlooksfor various sectors and industries.

Portfolio management will normally sell a stock when itbelieves the stock’s reward to risk ratio has diminished, thestock’s fundamental factors have changed, other invest-ments offer better opportunities or in the course ofadjusting the fund’s emphasis on a given industry.

Derivatives. Portfolio management generally may usefutures contracts, which are a type of derivative (a contractwhose value is based on, for example, indices, curren-cies or securities), as a substitute for direct investment ina particular asset class, to keep cash on hand to meetshareholder redemptions or other needs while maintainingexposure to the stock market.




MAIN RISKS

There are several risk factors that could hurt the fund’sperformance, cause you to lose money or cause the fund’sperformance to trail that of other investments. The fundmay not achieve its investment objective, and is not

intended to be a complete investment program. An invest-ment in the fund is not a deposit of a bank and is notinsured or guaranteed by the Federal Deposit InsuranceCorporation or any other governmental agency.

Stock market risk.When stock prices fall, you shouldexpect the value of your investment to fall as well. Stockprices can be hurt by poor management on the part of thestock’s issuer, shrinking product demand and other busi-ness risks. These may affect single companies as well asgroups of companies. In addition, movements in financialmarkets may adversely affect a stock’s price, regardless ofhow well the company performs. The market as a wholemay not favor the types of investments the fund makes,which could affect the fund’s ability to sell them at anattractive price. To the extent the fund invests in aparticular capitalization or sector, the fund’s performancemay be affected by the general performance of thatparticular capitalization or sector.


Value investing risk. As a category, value stocks mayunderperform growth stocks (and the stock market as awhole) over any period of time. In addition, value stocksselected for investment by portfolio management may notperform as anticipated.

Focus risk.To the extent that the fund focuses its invest-ments in particular industries, asset classes or sectorsof the economy, any market price movements, regulatoryor technological changes, or economic conditions affectingcompanies in those industries, asset classes or sectorsmay have a significant impact on the fund’s performance.



2 Deutsche Large Cap Value VIP


PAGE 113







PAST PERFORMANCE

How a fund’s returns vary from year to year can give anidea of its risk; so can comparing fund performance tooverall market performance (as measured by an appro-priate market index). Past performance may not indicatefuture results. All performance figures below assume thatdividends and distributions were reinvested. For morerecent performance figures, go to deutschefunds.com (theWeb site does not form a part of this prospectus) or callthe phone number included in this prospectus. This informa-tion doesn’t reflect fees associated with the separate

account that invests in the fund or any variable life insur-ance policy or variable annuity contract for which the fundis an investment option. These fees will reduce returns.


15.41 13.15

-36.40

25.3710.77

-0.07

9.79

30.89

10.72

-6.87

-60

-40

-20

0

20

40

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 15.86% June 30, 2009Worst Quarter -22.50% December 31, 2008Year-to-Date -7.52% March 31, 2016


ClassInception

1Year

5Years

10Years

Class A 5/1/1996 -6.87 8.17 5.50

Russell 1000ValueIndex (reflects no deduc-tion for fees, expensesor taxes) -3.83 11.27 6.16

MANAGEMENT

Investment Advisor



Deepak Khanna, CFA, Managing Director. Lead PortfolioManager of the fund. Began managing the fund in 2014.




TAX INFORMATION




PAGE 114




Summary Prospectus May 1, 2016 2A-LCV-SUM

PAGE 115


Deutsche Government & Agency Securities VIP

Class A



The fund seeks high current income consistent with pres-ervation of capital.





Management fee 0.45


Other expenses 0.29





EXAMPLEThis Example is intended to help you compare the cost ofinvesting in the fund with the cost of investing in othermutual funds. The Example assumes that you invest$10,000 in the fund for the time periods indicated and thenredeem all of your shares at the end of those periods. The

Example also assumes that your investment has a 5%return each year and that the fund’s operating expenses(including one year of capped expenses in each period)remain the same. This example does not reflect any feesor sales charges imposed by a variable contract for whichthe fund is an investment option. If they were included,your costs would be higher.



$59 $220 $396 $903




Main investments. Under normal circumstances, the fundinvests at least 80% of net assets, plus the amount ofany borrowings for investment purposes, in US govern-ment securities and repurchase agreements of USgovernment securities. US government-related debt instru-ments in which the fund may invest include: (i) directobligations of the USTreasury; (ii) securities such as GinnieMaes which are mortgage-backed securities issued andguaranteed by the Government National Mortgage Asso-ciation (GNMA) and supported by the full faith and credit ofthe United States; and (iii) securities issued or guaran-teed, as to their payment of principal and interest, by USgovernment agencies or government sponsored entities,some of which may be supported only by the credit of theissuer.

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The fund normally invests all of its assets in securitiesissued or guaranteed by the US government, its agenciesor instrumentalities, except the fund may invest up to 10%of its net assets in cash equivalents, such as moneymarket funds, and short-term bond funds. These securitiesmay not be issued or guaranteed by the US government,its agencies or instrumentalities.

Management process. In deciding which types of govern-ment bonds to buy and sell, portfolio management firstconsiders the relative attractiveness of USTreasuriescompared to other US government and agency securitiesand then determines allocations. Their decisions are gener-ally based on a number of factors, including changes insupply and demand within the bond market.

In choosing individual bonds, portfolio managementreviews each bond’s fundamentals, compares the yields ofshorter maturity bonds to those of longer maturity bondsand uses technical analysis to project prepayment ratesand other factors that could affect a bond’s attractiveness.Portfolio management may also adjust the duration (ameasure of sensitivity to interest rate movements) of thefund’s portfolio, based upon their analysis.

Derivatives. Portfolio management generally may usefutures contracts and interest rate swap contracts, whichare types of derivatives (contracts whose value are basedon, for example, indices, currencies or securities) to gainexposure to different parts of the yield curve whilemanaging overall duration. In addition, portfolio manage-ment generally may use options and total return swapcontracts, which are types of derivatives, to seek toenhance potential gains by increasing or decreasing thefund’s exposure to a particular sector or market or as asubstitute for direct investment.

The fund may also use other types of derivatives (I) forhedging; (ii) for risk management; (iii) for non-hedgingpurposes to seek to enhance potential gains; or (IV) as asubstitute for direct investment in a particular asset classor to keep cash on hand to meet shareholder redemptions.



MAIN RISKS


Interest rate risk.When interest rates rise, prices of debtsecurities generally decline. The fund may be subject toa greater risk of rising interest rates due to the current

period of historically low rates. The longer the duration ofthe fund’s debt securities, the more sensitive the fund willbe to interest rate changes. (As a general rule, a 1% risein interest rates means a 1% fall in value for every year ofduration.)

Prepayment and extension risk.When interest rates fall,issuers of high interest debt obligations may pay off thedebts earlier than expected (prepayment risk), and thefund may have to reinvest the proceeds at lower yields.When interest rates rise, issuers of lower interest debtobligations may pay off the debts later than expected(extension risk), thus keeping the fund’s assets tied up inlower interest debt obligations. Ultimately, any unexpectedbehavior in interest rates could increase the volatility ofthe fund’s share price and yield and could hurt fundperformance.


Credit risk. The fund’s performance could be hurt if anissuer of a debt security suffers an adverse change in finan-cial condition that results in the issuer not making timelypayments of interest or principal, a security downgrade oran inability to meet a financial obligation.

Some securities issued by US government agencies orinstrumentalities are backed by the full faith and credit ofthe US government. Other securities that are supportedonly by the credit of the issuing agency or instrumentalityare subject to greater credit risk than securities backedby the full faith and credit of the US government. This isbecause the US government might provide financialsupport, but has no obligation to do so, if there is a poten-tial or actual loss of principal or failure to make interestpayments.


Counterparty risk. A financial institution or othercounterparty with whom the fund does business, or thatunderwrites, distributes or guarantees any investments orcontracts that the fund owns or is otherwise exposed to,may decline in financial health and become unable to

2 Deutsche Government & Agency Securities VIP


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honor its commitments. This could cause losses for thefund or could delay the return or delivery of collateral orother assets to the fund.








PAST PERFORMANCE

How a fund’s returns vary from year to year can give anidea of its risk; so can comparing fund performance tooverall market performance (as measured by an appro-priate market index). Past performance may not indicatefuture results. All performance figures below assume thatdividends and distributions were reinvested. For morerecent performance figures, go to deutschefunds.com (the

Web site does not form a part of this prospectus) or callthe phone number included in this prospectus. This informa-tion doesn’t reflect fees associated with the separateaccount that invests in the fund or any variable life insur-ance policy or variable annuity contract for which the fundis an investment option. These fees will reduce returns.


4.165.95 4.93

8.086.61 7.46

2.93

-3.04

5.29

-0.02

-10

-5

0

5

10

15

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 4.81% June 30, 2010Worst Quarter -2.57% June 30, 2013Year-to-Date 1.31% March 31, 2016


ClassInception

1Year

5Years

10Years

Class A 9/3/1987 -0.02 2.45 4.18

Barclays GNMA Index(reflects no deduction forfees, expenses or taxes) 1.39 3.05 4.66

MANAGEMENT

Investment Advisor



Gregory M. Staples, CFA, Managing Director. PortfolioManager of the fund. Began managing the fund in 2016.

Scott Agi, CFA, Director. Portfolio Manager of the fund.Began managing the fund in 2014.




TAX INFORMATION

The fund normally distributes its net investment incomeand realized capital gains, if any, to its shareholders, theseparate accounts of participating insurance companies.These distributions may not be taxable to the holders ofvariable annuity contracts and variable life insurance poli-cies. For information concerning the federal income tax



PAGE 118

consequences for the holders of such contracts or poli-cies, holders should consult the prospectus used inconnection with the issuance of their particular contractsor policies.




Summary Prospectus May 1, 2016 2A-GAS-SUM

PAGE 119


Deutsche High Income VIP

Class A



The fund seeks to provide a high level of current income.





Management fee 0.50


Other expenses 0.25









$74 $237 $414 $928




Main investments. Under normal circumstances, the fundgenerally invests at least 65% of net assets, plus theamount of any borrowings for investment purposes, in junkbonds, which are those rated below the fourth highestcredit rating category (that is, grade BB/Ba and below). Thefund may invest up to 50% of total assets in bonds denomi-nated in US dollars or foreign currencies from foreignissuers, including issuers in emerging markets. The fundinvests in securities of varying maturities and intends tomaintain a dollar-weighted effective average portfolio matu-rity that will not exceed ten years. Subject to its portfoliomaturity policy, the fund may purchase individual securitieswith any stated maturity. Because the fund may invest infixed income securities of varying maturities, the fund’sdollar-weighted average effective portfolio maturity willvary. As of December 31, 2015, the fund had a dollar-weighted average effective portfolio maturity of 6.13 years.

1

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Management process. Portfolio management focuses oncash flow and total return analysis, and broad diversifica-tion among countries, sectors, industries and individualissuers and maturities. Portfolio management uses anactive process that emphasizes relative value in a globalenvironment, managing on a total return basis, and usingintensive research to identify stable to improving creditsituations that may provide yield compensation for the riskof investing in junk bonds.

The investment process involves a bottom-up approach,where relative value and fundamental analysis are used toselect the best securities within each industry, and atop-down approach to assess the overall risk and return inthe market and which considers macro trends in theeconomy. To select securities or investments, portfoliomanagement:� analyzes economic conditions for improving or under-valued sectors and industries;

� uses independent credit research to evaluate individualissuers’ debt service, growth rate, and both downgradeand upgrade potential;

� assesses new offerings versus secondary market oppor-tunities; and

� seeks issuers within attractive industry sectors and withstrong long-term fundamentals and improving credits.

Derivatives. Portfolio management generally may usecredit default swaps, which are a type of derivative (acontract whose value is based on, for example, indices,currencies or securities) to seek to increase the fund’sincome, to gain exposure to a bond issuer’s credit qualitycharacteristics without directly investing in the bond, orto hedge the risk of default on bonds held in the fund’sportfolio. In addition, portfolio management generally mayuse forward currency contracts to hedge exposure tochanges in foreign currency exchange rates on foreigncurrency denominated portfolio holdings or to facilitatetransactions in foreign currency denominated securities.



MAIN RISKS


Credit risk.The fund’s performance could be hurt if anissuer of a debt security suffers an adverse change in finan-cial condition that results in the issuer not making timelypayments of interest or principal, a security downgrade oran inability to meet a financial obligation. Credit risk isgreater for lower-rated securities.

Because the issuers of high-yield debt securities or junkbonds (debt securities rated below the fourth highestcredit rating category) may be in uncertain financial health,the prices of their debt securities can be more vulnerableto bad economic news, or even the expectation of badnews, than investment-grade debt securities. Credit riskfor high-yield securities is greater than for higher-ratedsecurities.

High-yield debt securities risk. High-yield debt securitiesor junk bonds are generally regarded as speculative withrespect to the issuer’s continuing ability to meet principaland interest payments. High-yield debt securities’ totalreturn and yield may generally be expected to fluctuatemore than the total return and yield of investment-gradedebt securities. A real or perceived economic downturn oran increase in market interest rates could cause a declinein the value of high-yield debt securities, result inincreased redemptions and/or result in increased portfolioturnover, which could result in a decline in net asset valueof the fund, reduce liquidity for certain investments and/orincrease costs. High-yield debt securities are often thinlytraded and can be more difficult to sell and value accuratelythan investment-grade debt securities as there may beno established secondary market. Investments in high-yield debt securities could increase liquidity risk for thefund. In addition, the market for high-yield debt securitiescan experience sudden and sharp volatility which is gener-ally associated more with investments in stocks.


Prepayment and extension risk.When interest rates fall,issuers of high interest debt obligations may pay off thedebts earlier than expected (prepayment risk), and thefund may have to reinvest the proceeds at lower yields.When interest rates rise, issuers of lower interest debtobligations may pay off the debts later than expected(extension risk), thus keeping the fund’s assets tied up inlower interest debt obligations. Ultimately, any unexpectedbehavior in interest rates could increase the volatility ofthe fund’s share price and yield and could hurt fund perfor-mance.

Foreign investment risk. The fund faces the risksinherent in foreign investing. Adverse political, economicor social developments could undermine the value of the

2 Deutsche High Income VIP


PAGE 121

fund’s investments or prevent the fund from realizing thefull value of its investments. Financial reporting standardsfor companies based in foreign markets differ from thosein the US. Additionally, foreign securities markets generallyare smaller and less liquid than US markets. To the extentthat the fund invests in non-US dollar denominated foreignsecurities, changes in currency exchange rates may affectthe US dollar value of foreign securities or the income orgain received on these securities.







Pricing risk. If market conditions make it difficult to valuesome investments, the fund may value these investmentsusing more subjective methods, such as fair value pricing.

In such cases, the value determined for an investmentcould be different from the value realized upon such invest-ment’s sale. As a result, you could pay more than themarket value when buying fund shares or receive less thanthe market value when selling fund shares.



PAST PERFORMANCE



10.470.96

-23.94

39.99

14.003.84

14.917.91

1.47

-4.44

-40

-20

0

20

40

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 14.85% June 30, 2009Worst Quarter -16.35% December 31, 2008Year-to-Date 1.52% March 31, 2016



PAGE 122


ClassInception

1Year

5Years

10Years

Class A 4/6/1982 -4.44 4.54 5.39

Credit Suisse HighYieldIndex (reflects no deduc-tion for fees, expensesor taxes) -4.93 4.73 6.55

MANAGEMENT

Investment Advisor



Gary Russell, CFA, Managing Director. Portfolio Managerof the fund. Began managing the fund in 2006.

Thomas R. Bouchard, Director. Portfolio Manager of thefund. Began managing the fund in 2016.




TAX INFORMATION





Summary Prospectus May 1, 2016 2A-HI-SUM

PAGE 123


Deutsche Government Money Market VIP(formerly Deutsche Money Market VIP)

Class A



The fund seeks maximum current income to the extentconsistent with stability of principal.





Management fee1 0.24


Other expenses 0.20


1 The “Management fee” has been restated to reflect the fund’s newinvestment management agreement adopted by the fund’s Board.

EXAMPLEThis Example is intended to help you compare the cost ofinvesting in the fund with the cost of investing in othermutual funds. The Example assumes that you invest$10,000 in the fund for the time periods indicated and thenredeem all of your shares at the end of those periods. TheExample also assumes that your investment has a 5%return each year and that the fund’s operating expensesremain the same.This example does not reflect any fees orsales charges imposed by a variable contract for whichthe fund is an investment option. If they were included,your costs would be higher.



$45 $141 $246 $555


The fund is a money market fund that is managed in accor-dance with federal regulations which govern the quality,maturity, diversity and liquidity of instruments in which amoney market fund may invest.

The fund operates as a “government money market fund,”as such term is defined under federal regulations. The fundinvests at least 99.5% of its total assets at the time ofinvestment in cash, US government securities, and/orrepurchase agreements that are collateralized by theseinstruments.

The fund follows policies designed to maintain a stable$1.00 share price.

The fund primarily invests in the following types ofinvestments:� USTreasury bills, notes, bonds and other obligationsissued or guaranteed by the US government, its agen-cies or instrumentalities.

� Repurchase agreements backed by these instruments.In a repurchase agreement, the fund buys securitiesat one price with a simultaneous agreement to sell backthe securities at a future date at an agreed-upon price.

The fund may invest in floating and variable rate instru-ments (obligations that do not bear interest at fixed rates).

Under normal circumstances, the fund invests at least80% of net assets, plus the amount of any borrowings forinvestment purposes, in US government securities and/orrepurchase agreements that are collateralized by USgovernment securities.

Management process.Working in consultation with port-folio management, a credit team screens potentialsecurities and develops a list of those that the fund maybuy. Portfolio management, looking for attractive yield and

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weighing considerations such as credit quality, economicoutlooks and possible interest rate movements, thendecides which securities on this list to buy.

MAIN RISKS

There are several risk factors that could reduce the yieldyou get from the fund, cause the fund’s performance totrail that of other investments, or cause you to lose money.

Money market fund risk.You could lose money byinvesting in the fund. Although the fund seeks to preservethe value of your investment at $1.00 per share, it cannotguarantee it will do so. An investment in the fund is notinsured or guaranteed by the Federal Deposit InsuranceCorporation or any other government agency. The Advisorhas no legal obligation to provide financial support to thefund, and you should not expect that the Advisor willprovide financial support to the fund at any time.

Interest rate risk. Rising interest rates could cause thevalue of the fund’s investments — and therefore its shareprice as well — to decline. Conversely, any decline ininterest rates is likely to cause the fund’s yield to decline,and during periods of unusually low interest rates, thefund’s yield may approach zero. A low interest rate envi-ronment may prevent the fund from providing a positiveyield or paying fund expenses out of current income and,at times, could impair the fund’s ability to maintain a stable$1.00 share price. Over time, the total return of a moneymarket fund may not keep pace with inflation, which couldresult in a net loss of purchasing power for long-terminvestors.

If there is an insufficient supply of US government securi-ties to meet investor demand, it could result in lower yieldson such securities and increase interest rate risk for thefund.

Security selection risk. Although short-term securitiesare relatively stable investments, it is possible that thesecurities in which the fund invests will not perform asexpected. This could cause the fund’s returns to lag behindthose of similar money market funds and could result in adecline in share price.


Repurchase agreement risk. If the party that sells thesecurities to the fund defaults on its obligation to repur-chase them at the agreed-upon time and price, the fundcould lose money.

Counterparty risk. A financial institution or othercounterparty with whom the fund does business, or thatunderwrites, distributes or guarantees any investments orcontracts that the fund owns or is otherwise exposed to,may decline in financial health and become unable to

honor its commitments. This could cause losses for thefund or could delay the return or delivery of collateral orother assets to the fund.

Credit risk. The fund’s performance could be hurt and thefund’s share price could fall below $1.00 if an issuer of adebt security suffers an adverse change in financial condi-tion that results in the issuer not making timely paymentsof interest or principal, a security downgrade or an inabilityto meet a financial obligation.

Some securities issued by US government agencies orinstrumentalities are backed by the full faith and credit ofthe US government. Others are supported only by thecredit of that agency or instrumentality. For this lattergroup, if there is a potential or actual loss of principal andinterest on these securities, the US government mightprovide financial support, but has no obligation to do so.


Liquidity and transaction risk.The liquidity of portfoliosecurities can deteriorate rapidly due to credit eventsaffecting issuers or guarantors or due to general marketconditions and a lack of willing buyers.When there are nowilling buyers and an instrument cannot be readily sold at adesired time or price, the fund may have to accept a lowerprice or may not be able to sell the instrument at all. Ifdealer capacity in debt instruments is insufficient formarket conditions, it may further inhibit liquidity andincrease volatility in the debt markets. Additionally, marketparticipants other than the fund may attempt to sell debtholdings at the same time as the fund, which could causedownward pricing pressure and contribute to illiquidity.An inability to sell one or more portfolio securities canadversely affect the fund’s ability to maintain a $1.00 shareprice or prevent the fund from being able to take advan-tage of other investment opportunities.

Unusual market conditions, an unusually high volume ofredemption requests or other similar conditions couldcause the fund to be unable to pay redemption proceedswithin a short period of time. If the fund is forced to sellsecurities at an unfavorable time and/or under unfavorableconditions, such sales may adversely affect the fund’sability to maintain a $1.00 share price.

Prepayment and extension risk.When interest rates fall,issuers of high interest debt obligations may pay off thedebts earlier than expected (prepayment risk), and thefund may have to reinvest the proceeds at lower yields.When interest rates rise, issuers of lower interest debtobligations may pay off the debts later than expected(extension risk), thus keeping the fund’s assets tied up in

2 Deutsche Government Money Market VIP


PAGE 125

lower interest debt obligations. Ultimately, any unexpectedbehavior in interest rates could increase the volatility ofthe fund’s share price and yield and could hurt fundperformance.


PAST PERFORMANCE

How a fund’s returns vary from year to year can give anidea of its risk. Past performance may not indicate futureresults. All performance figures below assume that divi-dends were reinvested. The 7-day yield, which is oftenreferred to as the “current yield,” is the income generatedby the fund over a seven-day period. This amount is thenannualized, which means that we assume the fund gener-ates the same income every week for a year. For morerecent performance figures, go to deutschefunds.com (theWeb site does not form a part of this prospectus) or callthe phone number included in this prospectus. This informa-tion doesn’t reflect fees associated with the separateaccount that invests in the fund or any variable life insur-ance policy or variable annuity contract for which the fundis an investment option. These fees will reduce returns.

Prior to May 2, 2016, the fund operated with a differentinvestment strategy. Performance may have been differentif the fund’s current investment strategy had been ineffect.


4.655.00

2.64

0.340.01 0.01 0.01 0.01 0.01 0.01

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Best Quarter 1.26% September 30, 2007Worst Quarter 0.00% March 31, 2014Year-to-Date 0.01% March 31, 2016


ClassInception

1Year

5Years

10Years

Class A 4/6/1982 0.01 0.01 1.25

Total returns would have been lower if operating expenseshad not been reduced.

7-day yield as of December 31, 2015: 0.01%

MANAGEMENT

Investment Advisor





TAX INFORMATION




3 Deutsche Government Money Market VIP

Summary Prospectus May 1, 2016 2A-MM-SUM

PAGE 126

0121SP0416

Opportunistic Small Cap Portfolio

A Series of Dreyfus Variable Investment Fund

Summary Prospectus April 29, 2016

Initial Shares Service Shares

Before you invest, you may want to review the fund's prospectus, which contains more information about the fund and its risks. You can find the fund's prospectus and other information about the fund, including the statement of additional information and most recent reports to shareholders, online at www.dreyfus.com/vifunddocuments. You can also get this information at no cost by calling 1-800-DREYFUS (inside the U.S. only) or by sending an e-mail request to [email protected]. The fund's prospectus and statement of additional information, dated April 29, 2016 (each as revised or supplemented), are incorporated by reference into this summary prospectus.

Investment Objective The fund seeks capital growth.

Fees and Expenses This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. These figures do not reflect any fees or charges imposed by participating insurance companies under their Variable Annuity contracts (VA contracts) or Variable Life Insurance policies (VLI policies), and if such fees and/or charges were included, the fees and expenses would be higher. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)


Management fees .75 .75 Distribution and/or service (12b-1) fees none .25 Other expenses .10 .10 Total annual fund operating expenses .85 1.10

Example

The Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the fund's operating expenses remain the same. The Example does not reflect fees and expenses incurred under VA contracts and VLI policies; if they were reflected, the figures in the Example would be higher. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 Year 3 Years 5 Years 10 Years

Initial Shares $87 $271 $471 $1,049 Service Shares $112 $350 $606 $1,340

Portfolio Turnover

The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 65.26% of the average value of its portfolio.

PAGE 127

Opportunistic Small Cap Portfolio Summary 2

Principal Investment Strategy To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the stocks of small cap companies. The fund currently considers small cap companies to be those companies with market capitalizations that fall within the range of the companies in the Russell 2000® Index, the fund's benchmark index. Stocks are selected for the fund's portfolio based primarily on bottom-up fundamental analysis. The fund's portfolio managers use a disciplined investment process that relies, in general, on proprietary fundamental research and valuation. Generally, elements of the process include analysis of mid-cycle business prospects, estimation of the intrinsic value of the company and the identification of a revaluation catalyst. In general, the fund seeks exposure to securities and sectors that are perceived to be attractive from a valuation and fundamental standpoint.

Principal Risks An investment in the fund is not a bank deposit. It is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. It is not a complete investment program. The fund's share price fluctuates, sometimes dramatically, which means you could lose money.

� Risks of stock investing. Stocks generally fluctuate more in value than bonds and may decline significantly over short time periods. There is the chance that stock prices overall will decline because stock markets tend to move in cycles, with periods of rising prices and falling prices. The market value of a stock may decline due to general market conditions or because of factors that affect the particular company or the company's industry.

� Small and midsize company risk. Small and midsize companies carry additional risks because the operating histories of these companies tend to be more limited, their earnings and revenues less predictable (and some companies may be experiencing significant losses), and their share prices more volatile than those of larger, more established companies. The shares of smaller companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the fund's ability to sell these securities.

� Growth and value stock risk. By investing in a mix of growth and value companies, the fund assumes the risks of both. Investors often expect growth companies to increase their earnings at a certain rate. If these expectations are not met, investors can punish the stocks inordinately, even if earnings do increase. In addition, growth stocks may lack the dividend yield that may cushion stock prices in market downturns. Value stocks involve the risk that they may never reach their expected full market value, either because the market fails to recognize the stock's intrinsic worth, or the expected value was misgauged. They also may decline in price even though in theory they are already undervalued.

� Market sector risk. The fund may significantly overweight or underweight certain companies, industries or market sectors, which may cause the fund's performance to be more or less sensitive to developments affecting those companies, industries or sectors.

� Liquidity risk. When there is little or no active trading market for specific types of securities, it can become more difficult to sell the securities in a timely manner at or near their perceived value. In such a market, the value of such securities and the fund's share price may fall dramatically. Investments that are illiquid or that trade in lower volumes may be more difficult to value.

Performance The following bar chart and table provide some indication of the risks of investing in the fund. The bar chart shows changes in the performance of the fund's Initial shares from year to year. The table compares the average annual total returns of the fund's shares to those of a broad measure of market performance. The fund's past performance is not necessarily an indication of how the fund will perform in the future. More recent performance information may be available at www.dreyfus.com.

Performance information reflects the fund's expenses only and does not reflect the fees and charges imposed by participating insurance companies under their VA contracts or VLI policies. Because these fees and charges will reduce total return, policyowners should consider them when evaluating and comparing the fund's performance. Policyowners should consult the prospectus for their contract or policy for more information.

PAGE 128

Opportunistic Small Cap Portfolio Summary 3

Year-by-Year Total Returns as of 12/31 each year (%) Initial Shares

15141312111009080706

20.56

48.55

1.60

-2.28

3.77

-11.06

-37.59

26.04 31.11

-13.82

Best Quarter Q4, 2010: 21.59% Worst Quarter Q3, 2011: -30.07%

Average Annual Total Returns (as of 12/31/15)

1 Year 5 Years 10 Years

Initial Shares -2.28% 8.91% 3.85% Service Shares -2.52% 8.64% 3.59% Russell 2000 Index reflects no deduction for fees, expenses or taxes -4.41% 9.19% 6.80%

Portfolio Management The fund's investment adviser is The Dreyfus Corporation (Dreyfus).

The fund is managed since June 2011 by a team of portfolio managers employed by Dreyfus and The Boston Company Asset Management, LLC (TBCAM), an affiliate of Dreyfus. The team consists of David Daglio, the lead portfolio manager, James Boyd and Dale Dutile. Mr. Daglio, a senior vice president at TBCAM, has been the fund's primary or lead portfolio manager since February 2010. Messrs. Boyd and Dutile are each equity research analysts and portfolio managers at TBCAM and have been portfolio managers of the fund since February 2010.

Purchase and Sale of Fund Shares Fund shares are offered only to separate accounts established by insurance companies to fund VA contracts and VLI policies. Individuals may not purchase shares directly from, or place sell orders directly with, the fund. The VA contracts and the VLI policies are described in the separate prospectuses issued by the participating insurance companies, over which the fund assumes no responsibility. Policyowners should consult the prospectus of the separate account of the participating insurance company for more information about buying, selling (redeeming), or exchanging fund shares.

Tax Information The fund's distributions are taxable as ordinary income or capital gains. Since the fund's shareholders are the participating insurance companies and their separate accounts, the tax treatment of dividends and distributions will depend on the tax status of the participating insurance company. Accordingly, no discussion is included as to the federal personal income tax consequences to policyowners. For this information, policyowners should consult the prospectus of the separate account of the participating insurance company or their tax advisers.

Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares through a broker-dealer or other financial intermediary (such as an insurance company), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

This prospectus does not constitute an offer or solicitation in any state or jurisdiction in which, or to any person to whom, such offering or solicitation may not lawfully be made.

PAGE 129

0111SP0416

The Dreyfus Socially Responsible Growth

Fund, Inc.

Summary Prospectus April 29, 2016


Before you invest, you may want to review the fund's prospectus, which contains more information about the fund and its risks. You can find the fund's prospectus and other information about the fund, including the statement of additional information and most recent reports to shareholders, online at www.dreyfus.com/vifunddocuments. You can also get this information at no cost by calling 1-800-DREYFUS (inside the U.S. only) or by sending an e-mail request to [email protected]. The fund's prospectus and statement of additional information, dated April 29, 2016 (each as revised or supplemented), are incorporated by reference into this summary prospectus.

Investment Objective The fund seeks to provide capital growth, with current income as a secondary goal.

Fees and Expenses This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. These figures do not reflect any fees or charges imposed by participating insurance companies under their Variable Annuity contracts (VA contracts) or Variable Life Insurance policies (VLI policies), and if such fees and/or charges were included, the fees and expenses would be higher. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)


Management fees .75 .75 Distribution (12b-1) fees none .25 Other expenses (including shareholder services fees) .11 .11 Total annual fund operating expenses .86 1.11

Example

The Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the fund's operating expenses remain the same. The Example does not reflect fees and expenses incurred under VA contracts and VLI policies; if they were reflected, the figures in the Example would be higher. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


Initial Shares $88 $274 $477 $1,061 Service Shares $113 $353 $612 $1,352

Portfolio Turnover

The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 59.57% of the average value of its portfolio.

PAGE 130

The Dreyfus Socially Responsible Growth Fund Summary 2

Principal Investment Strategy To pursue its goals, the fund, under normal circumstances, invests at least 80% of its net assets in the common stocks of companies that, in the opinion of the fund's management, meet traditional investment standards and conduct their business in a manner that contributes to the enhancement of the quality of life in America.

The fund's investment strategy combines a disciplined investment process that consists of computer modeling techniques, fundamental analysis and risk management with a social investment process. In selecting stocks, the portfolio managers begin by using computer models to identify and rank stocks within an industry or sector, based on several characteristics, including value, growth and financial profile.

Next, based on fundamental analysis, the portfolio managers designate the most attractive of the higher ranked securities as potential purchase candidates, drawing on a variety of sources, including company management and internal as well as Wall Street research.

The portfolio managers then evaluate each stock considered to be a potential purchase candidate to determine whether the com-pany enhances the quality of life in America by considering its record in the areas of protection and improvement of the environment and the proper use of our natural resources, occupational health and safety, consumer protection and product purity and equal employment opportunity.

The portfolio managers then further examine the companies determined to be eligible for purchase, by industry or sector, and select investments from those companies the portfolio managers consider to be the most attractive based on financial considera-tions.

Principal Risks An investment in the fund is not a bank deposit. It is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. It is not a complete investment program. The fund's share price fluctuates, sometimes dramatically, which means you could lose money.

� Risks of stock investing. Stocks generally fluctuate more in value than bonds and may decline significantly over short time periods. There is the chance that stock prices overall will decline because stock markets tend to move in cycles, with periods of rising prices and falling prices. The market value of a stock may decline due to general market conditions or because of factors that affect the particular company or the company's industry.

� Social investment risk. Socially responsible investment criteria may limit the number of investment opportunities available to the fund, and as a result, at times the fund's returns may be lower than those funds that are not subject to such special investment considerations.

� Market sector risk. The fund may significantly overweight or underweight certain companies, industries or market sectors, which may cause the fund's performance to be more or less sensitive to developments affecting those companies, industries or sectors.

Performance The following bar chart and table provide some indication of the risks of investing in the fund. The bar chart shows changes in the performance of the fund's Initial shares from year to year. The table compares the average annual total returns of the fund's shares to those of a broad measure of market performance. The fund's past performance is not necessarily an indication of how the fund will perform in the future. More recent performance information may be available at www.dreyfus.com.

Performance information reflects the fund's expenses only and does not reflect the fees and charges imposed by participating insurance companies under their VA contracts or VLI policies. Because these fees and charges will reduce total return, policyowners should consider them when evaluating and comparing the fund's performance. Policyowners should consult the prospectus for their contract or policy for more information.

PAGE 131


Year-by-Year Total Returns as of 12/31 each year (%) Initial Shares

15141312111009080706

11.98

34.34

13.45

-3.20

9.20 7.78

-34.42

33.75

14.82

0.90

Best Quarter Q2, 2009: 17.32% Worst Quarter Q4, 2008: -21.47%

Average Annual Total Returns (as of 12/31/15)


Initial Shares -3.20% 10.76% 7.05% Service Shares -3.41% 10.48% 6.78% S&P 500® Index reflects no deduction for fees, expenses or taxes 1.39% 12.55% 7.30%

Portfolio Management The fund's investment adviser is The Dreyfus Corporation (Dreyfus).

Investment decisions for the fund are made by members of the Active Equity Team of Mellon Capital Management Corporation (Mellon Capital), an affiliate of Dreyfus. The team members are C. Wesley Boggs, William S. Cazalet, CAIA and Ronald P. Gala, CFA. Messrs. Boggs and Gala have each served as a primary portfolio manager of the fund since May 2012, and Mr. Cazalet has served as a primary portfolio manager of the fund since December 2014. Mr. Boggs is a vice president, senior portfolio manager and active equity strategist at Mellon Capital. Mr. Cazalet is a managing director and head of active equity strategies at Mellon Capital. Mr. Gala is a managing director and senior portfolio manager at Mellon Capital. Each member of the team also is an employee of Dreyfus.

Purchase and Sale of Fund Shares Fund shares are offered only to separate accounts established by insurance companies to fund VA contracts and VLI policies. Individuals may not purchase shares directly from, or place sell orders directly with, the fund. The VA contracts and the VLI policies are described in the separate prospectuses issued by the participating insurance companies, over which the fund assumes no responsibility. Policyowners should consult the prospectus of the separate account of the participating insurance company for more information about buying, selling (redeeming), or exchanging fund shares.

Tax Information The fund's distributions are taxable as ordinary income or capital gains. Since the fund's shareholders are the participating insurance companies and their separate accounts, the tax treatment of dividends and distributions will depend on the tax status of the participating insurance company. Accordingly, no discussion is included as to the federal personal income tax consequences to policyowners. For this information, policyowners should consult the prospectus of the separate account of the participating insurance company or their tax advisers.

Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares through a broker-dealer or other financial intermediary (such as an insurance company), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

This prospectus does not constitute an offer or solicitation in any state or jurisdiction in which, or to any person to whom, such offering or solicitation may not lawfully be made.

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Printed on recycled paper. 50% post-consumer. Process chlorine free. Vegetable-based ink.

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Initial Class, Service Class, and Service Class 2Growth Portfolio

Summary ProspectusApril 28, 2016

Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund (including the fund’s SAI) online at advisor.fidelity.com/vipfunddocuments. You can also get this information at no cost by calling 1-866-997-1254 or by sending an e-mail request to [email protected]. The fund’s prospectus and SAI dated April 28, 2016 are incorporated herein by reference.

245 Summer Street, Boston, MA 02210

PAGE 134

2Summary Prospectus

Fund Summary

Fund/Class:VIP Growth Portfolio/Initial Class, Service Class, Service Class 2

Investment ObjectiveThe fund seeks to achieve capital appreciation.

Fee TableThe following table describes the fees and expenses that may be incurred, directly or indirectly, when you, as a variable product

owner, buy and hold interests in a separate account that invests in shares of the fund. The table does not include any fees or other expenses of any variable annuity or variable life insurance product; if it did, overall fees and expenses would be higher.

Fees(fees paid directly from your investment) Not Applicable

Annual Operating Expenses(expenses that you pay each year as a % of the value of your investment)

Initial ClassService Class

Service Class 2

Management fee 0.55% 0.55% 0.55%

Distribution and/or Service (12b-1) fees None 0.10% 0.25%

Other expenses 0.09% 0.09% 0.09%

Total annual operating expenses 0.64% 0.74% 0.89%

This example helps compare the cost of investing in the fund with the cost of investing in other funds.

Let’s say, hypothetically, that the annual return for shares of the fund is 5% and that the fees and the annual operating expenses for shares of the fund are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant

to suggest actual or expected fees and expenses or returns, all of which may vary. This example does not include any fees or other expenses of any variable annuity or variable life insurance product; if it did, overall expenses would be higher. For every $10,000 invested, here’s how much you, as a variable product owner, would pay in total expenses if all interests in a separate account that invests in shares of the fund were redeemed at the end of each time period indicated:

Initial Class Service Class Service Class 2

1 year $ 65 $ 76 $ 91

3 years $ 205 $ 237 $ 284

5 years $ 357 $ 411 $ 493

10 years $ 798 $ 918 $ 1,096

Portfolio TurnoverThe fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 63% of the average value of its portfolio.

Principal Investment Strategies• Normally investing primarily in common stocks.

• Investing in companies that Fidelity Management & Research Company (FMR) believes have above-average growth potential (stocks of these companies are often called “growth” stocks).

• Investing in domestic and foreign issuers.

• Using fundamental analysis of factors such as each issuer’s finan-cial condition and industry position, as well as market and economic conditions, to select investments.

Principal Investment Risks• Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regula-tory, market, or economic developments. Different parts of the market, including different market sectors, and different types of securities can react differently to these developments.

• Foreign Exposure. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform dif-ferently from the U.S. market.

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3 Summary Prospectus

• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can perform differently from, the market as a whole.

• “Growth” Investing. “Growth” stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks.

You could lose money by investing in the fund.

PerformanceThe following information is intended to help you understand the risks of investing in the fund. The information illustrates the

changes in the performance of the fund’s shares from year to year and compares the performance of the fund’s shares to the perfor-mance of a securities market index over various periods of time. The index description appears in the Additional Index Information sec-tion of the prospectus. Returns for shares of the fund do not include the effect of any sales charges or other expenses of any variable annuity or variable life insurance product; if they did, returns for shares of the fund would be lower. Past performance is not an indica-tion of future performance.

Year-by-Year Returns

40302010

0-10-20-30-40-50

2015201420132012201120102009200820072006

7.17%11.30%36.34%14.69%0.20%24.17%28.29%-47.17%26.96%6.85%

Calendar Years

Percentage (%)

During the periods shown in the chart for Initial Class: Returns Quarter endedHighest Quarter Return 16.48% March 31, 2012Lowest Quarter Return –26.99% December 31, 2008

Average Annual Returns

For the periods ended December 31, 2015Past 1

yearPast 5 years

Past 10 years

Initial Class 7.17% 13.32% 7.87%

Service Class 7.05% 13.21% 7.76%

Service Class 2 6.90% 13.04% 7.60%

Russell 3000® Growth Index (reflects no deduction for fees, expenses, or taxes) 5.09% 13.30% 8.49%

Investment AdviserFMR (the Adviser) is the fund’s manager. FMR Co., Inc. (FMRC) and other investment advisers serve as sub-advisers for the fund.

Portfolio Manager(s)Jason Weiner (portfolio manager) has managed the fund since November 2006.

Purchase and Sale of SharesOnly Permitted Accounts, including separate accounts of insur-ance companies and qualified funds of funds that have signed the

appropriate agreements with the fund, if applicable, can buy or sell shares. Insurance companies offer variable annuity and variable life insurance products through separate accounts. A qualified fund of funds is an eligible insurance-dedicated mutual fund that invests in other mutual funds.

Permitted Accounts - not variable product owners - are the share-holders of the fund. Variable product owners hold interests in separate accounts, including separate accounts that are sharehold-ers of qualified funds of funds. The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insurance product prospectus.

PAGE 136

4Summary Prospectus

Fund Summary – continued

The price to buy one share is its net asset value per share (NAV). Shares will be bought at the NAV next calculated after an order is received in proper form.

The price to sell one share is its NAV. Shares will be sold at the NAV next calculated after an order is received in proper form.

The fund is open for business each day the New York Stock Exchange (NYSE) is open.

The fund has no minimum investment requirement.

Tax InformationVariable product owners seeking to understand the tax conse-quences of their investment should consult with their tax advisers or the insurance company that issued their variable product, or refer to their variable annuity or variable life insurance product prospectus. Insurance company separate accounts generally do not pay tax on dividends or capital gain distributions from the fund.

Payments to Broker-Dealers and Other Financial IntermediariesThe fund, the Adviser, Fidelity Distributors Corporation (FDC), and/or their affiliates may pay intermediaries, which may include insur-ance companies and their affiliated broker-dealers and service-pro-viders (who may be affiliated with the Adviser or FDC), for the sale of fund shares and related services. These payments may create a conflict of interest by influencing your intermediary and your invest-ment professional to recommend the fund over another investment. Ask your investment professional or visit your intermediary’s web site for more information.

PAGE 137

FDC is a member of the Securities Investor Protection Corporation (SIPC). You may obtain information about SIPC, including the SIPC brochure, by visiting www.sipc.org or calling SIPC at 202-371-8300.

Fidelity and Fidelity Investments & Pyramid Design are registered service marks of FMR LLC. © 2016 FMR LLC. All rights reserved.

Any third-party marks that may appear above are the marks of their respective owners.

The term “VIP” as used in this document refers to Fidelity® Variable Insurance Products.

1.907806.107 VGRO-SUM-0416

PAGE 138


Initial Class, Service Class, and Service Class 2Index 500 Portfolio




PAGE 139

2Summary Prospectus

Fund Summary

Fund/Class:VIP Index 500 Portfolio/Initial Class, Service Class, Service Class 2

Investment ObjectiveThe fund seeks investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the S&P 500® Index.

Fee TableThe following table describes the fees and expenses that may be incurred, directly or indirectly, when you, as a variable product owner, buy and hold interests in a separate account that invests in shares of the fund. The table does not include any fees or other expenses of any variable annuity or variable life insurance product; if it did, overall fees and expenses would be higher.



Initial Class Service ClassService Class 2

Management fee 0.045% 0.045% 0.045%


Other expenses 0.055% 0.055% 0.055%






1 year $ 10 $ 20 $ 36

3 years $ 32 $ 64 $ 113

5 years $ 56 $ 113 $ 197

10 years $ 128 $ 255 $ 443


Principal Investment Strategies• Normally investing at least 80% of assets in common stocks included in the S&P 500® Index.

• Lending securities to earn income for the fund.

Principal Investment Risks• Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regula-tory, market, or economic developments. Different parts of the market, including different market sectors, and different types of securities can react differently to these developments.

• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can perform differently from, the market as a whole. Changes in the financial condition of an issuer or counterparty (e.g., broker-dealer or other borrower in a securities lending transaction) can increase the risk of default by an issuer or counterparty, which can affect a security’s or instrument’s value or result in delays in recovering securities and/or capital from a counterparty.

PAGE 140


• Correlation to Index. The performance of the fund and its index may vary somewhat due to factors such as fees and expenses of the fund, transaction costs, sample selection, regulatory restrictions, and timing differences associated with additions to and deletions from its index.


PerformanceThe following information is intended to help you understand the risks of investing in the fund. The information illustrates the

changes in the performance of the fund’s shares from year to year and compares the performance of the fund’s shares to the perfor-mance of a securities market index over various periods of time. The index description appears in the Additional Index Information sec-tion of the prospectus. Returns for shares of the fund do not include the effect of any sales charges or other expenses of any variable annuity or variable life insurance product; if they did, returns for shares of the fund would be lower. Past performance is not an indica-tion of future performance.


40302010

0-10-20-30-40

2015201420132012201120102009200820072006

1.33%13.57%32.25%15.91%2.04%15.02%26.61%-37.00%5.45%15.73%

Calendar Years

Percentage (%)

During the periods shown in the chart for Initial Class: Returns Quarter endedHighest Quarter Return 15.98% June 30, 2009Lowest Quarter Return –21.91% December 31, 2008



yearPast 5 years

Past 10 years

Initial Class 1.33% 12.48% 7.26%

Service Class 1.24% 12.36% 7.15%

Service Class 2 1.08% 12.20% 6.99%

S&P 500® Index (reflects no deduction for fees,expenses,or taxes) 1.38% 12.57% 7.31%

Investment AdviserFidelity Management & Research Company (FMR) (the Adviser) is the fund’s manager. Geode Capital Management, LLC (Geode) and FMR Co., Inc. (FMRC) serve as sub-advisers for the fund.

Portfolio Manager(s)Deane Gyllenhaal (senior portfolio manager) has managed the fund since September 2014.

Patrick Waddell (senior portfolio manager) has managed the fund since February 2004.

Louis Bottari (portfolio manager) has managed the fund since January 2009.

Peter Matthew (assistant portfolio manager) has managed the fund since August 2012.

Purchase and Sale of SharesOnly Permitted Accounts, including separate accounts of insur-ance companies and qualified funds of funds that have signed the appropriate agreements with the fund, if applicable, can buy or sell shares. Insurance companies offer variable annuity and variable life insurance products through separate accounts. A qualified fund of funds is an eligible insurance-dedicated mutual fund that invests in other mutual funds.

Permitted Accounts - not variable product owners - are the share-holders of the fund. Variable product owners hold interests in

PAGE 141

4Summary Prospectus


separate accounts, including separate accounts that are sharehold-ers of qualified funds of funds. The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insurance product prospectus.







PAGE 142





1.907828.112 VI5-SUM-0416

PAGE 143


Initial Class, Service Class, and Service Class 2Mid Cap Portfolio


Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund (including the fund’s SAI) online at advisor.fidelity.com/vipfunddocuments. You can also get this information at no cost by calling 1-866-997-1254 or by sending an e-mail request to [email protected]. The fund’s prospectus and SAI dated April 28, 2016, are incorporated herein by reference.


PAGE 144

2Summary Prospectus

Fund Summary

Fund/Class:VIP Mid Cap Portfolio/Initial Class, Service Class, Service Class 2

Investment ObjectiveThe fund seeks long-term growth of capital.






Service Class 2

Management fee 0.55% 0.55% 0.55%








1 year $ 64 $ 75 $ 90

3 years $ 202 $ 233 $ 281

5 years $ 351 $ 406 $ 488

10 years $ 786 $ 906 $ 1,084


Principal Investment Strategies• Normally investing primarily in common stocks.

• Normally investing at least 80% of assets in securities of compa-nies with medium market capitalizations (which, for purposes of this fund, are those companies with market capitalizations similar

to companies in the Russell Midcap® Index or the S&P MidCap 400® Index).

• Potentially investing in companies with smaller or larger market capitalizations.

• Investing in domestic and foreign issuers.

• Investing in either “growth” stocks or “value” stocks or both.

• Using fundamental analysis of factors such as each issuer’s finan-cial condition and industry position, as well as market and economic conditions, to select investments.

Principal Investment Risks• Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regula-tory, market, or economic developments. Different parts of the

PAGE 145


market, including different market sectors, and different types of securities can react differently to these developments.

• Foreign Exposure. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform dif-ferently from the U.S. market.

• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can per-form differently from, the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers.

• Mid Cap Investing. The value of securities of medium size, less well-known issuers can perform differently from the market as a whole and other types of stocks and can be more volatile than that of larger issuers.


PerformanceThe following information is intended to help you understand the risks of investing in the fund. The information illustrates the changes in the performance of the fund’s shares from year to year and compares the performance of the fund’s shares to the perfor-mance of a securities market index over various periods of time. The index description appears in the Additional Index Information sec-tion of the prospectus. Returns for shares of the fund do not include the effect of any sales charges or other expenses of any variable annuity or variable life insurance product; if they did, returns for shares of the fund would be lower. Past performance is not an indica-tion of future performance.


5040302010

0-10-20-30-40

2015201420132012201120102009200820072006

-1.39%6.29%36.23%14.83%-10.61%28.83%40.09%-39.44%15.63%12.70%

Calendar Years

Percentage (%)




yearPast 5 years

Past 10 years

Initial Class –1.39% 7.94% 7.64%

Service Class –1.50% 7.84% 7.53%

Service Class 2 –1.63% 7.68% 7.37%

S&P MidCap 400® Index (reflects no deduction for fees, expenses, or taxes) –2.18% 10.68% 8.18%

Investment AdviserFidelity Management & Research Company (FMR) (the Adviser) is the fund’s manager. FMR Co., Inc. (FMRC) and other investment advisers serve as sub-advisers for the fund.

Portfolio Manager(s)Tom Allen (portfolio manager) has managed the fund since June 2001.

Purchase and Sale of SharesOnly Permitted Accounts, including separate accounts of insur-ance companies and qualified funds of funds that have signed the appropriate agreements with the fund, if applicable, can buy or sell shares. Insurance companies offer variable annuity and variable life insurance products through separate accounts. A qualified fund of funds is an eligible insurance-dedicated mutual fund that invests in other mutual funds.

PAGE 146

4Summary Prospectus


Permitted Accounts - not variable product owners - are the share-holders of the fund. Variable product owners hold interests in separate accounts, including separate accounts that are sharehold-ers of qualified funds of funds. The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insurance product prospectus.







PAGE 147


Fidelity and Fidelity Investments & Pyramid Design are a registered service marks of FMR LLC. © 2016 FMR LLC. All rights reserved.



1.907844.107 VMC-SUM-0416

PAGE 148

Fidelity® Variable Insurance ProductsInitial Class, Service Class, and Service Class 2Freedom 2005 Portfolio




PAGE 149

2Summary Prospectus

Fund Summary

Fund/Class:VIP Freedom 2005 PortfolioSM/Initial Class, Service Class, Service Class 2

Investment ObjectiveThe fund seeks high total return with a secondary objective of princi-pal preservation as the fund approaches its target date and beyond.





Service Class 2

Management fee None None None



Acquired fund fees and expenses 0.52% 0.52% 0.52%

Total annual operating expenses(a) 0.52% 0.62% 0.77%

(a) Differs from the ratios of expenses to average net assets in the Financial Highlights section of the prospectus because of acquired fund fees and expenses.





1 year $ 53 $ 63 $ 79

3 years $ 167 $ 199 $ 246

5 years $ 291 $ 346 $ 428

10 years $ 653 $ 774 $ 954

Portfolio TurnoverThe fund will not incur transaction costs, such as commissions, when it buys and sells shares of underlying Fidelity® funds (or “turns over” its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the fund were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual operating expenses or in the example and would affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 23% of the average value of its portfolio.

Principal Investment Strategies• FMR Co., Inc (FMRC) may continue to seek high total return for several years beyond the fund’s target retirement date in an effort to achieve the fund’s overall investment objective.

• Investing in a combination of Fidelity® Variable Insurance Products (VIP) domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity® funds).

• Allocating assets among underlying Fidelity® funds according to a “neutral” asset allocation strategy shown in the “glide path” below that becomes increasingly conservative until it reaches an allocation

PAGE 150


similar to that of the VIP Freedom Income Portfolio (approximately 17% in domestic equity funds, 7% in international equity funds, 46%

in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2005)).

• As of December 31, 2015, the fund’s neutral asset allocation to underlying Fidelity® funds was approximately:

Domestic Equity Funds* 26.0%

International Equity Funds* 11.0%

Bond Funds* 41.4%

Short-Term Funds* 21.6%

*The Adviser may change these percentages over time. As a result of the active asset allocation strategy (discussed below), actual allocations may differ from the neutral allocations above.

• FMRC may use an active asset allocation strategy to increase or decrease neutral asset class exposures reflected above by up to 10 percentage points for Equity Funds (includes domestic equity and international equity funds), Bond Funds and Short-Term Funds to reflect FMRC’s market outlook, which is primarily focused on the intermediate term. The asset allocations in the glide path and pie chart above are referred to as “neutral” because they do not reflect any decisions made by FMRC to overweight or underweight an asset class.

• FMRC may also make active asset allocations within other asset classes (including Commodities, High Yield Debt, Floating Rate Debt, Real Estate Debt, Inflation-Protected Debt, and Emerging Markets Debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. Such asset classes are not

reflected in the neutral asset allocations reflected in the glide path and pie chart above.

• Designed for investors who retired in or within a few years of 2005 (target retirement date) at or around age 65 and plan to gradually withdraw the value of their account in the fund over time.

Principal Investment RisksShareholders should consider that no target date fund is intended as a complete retirement program and there is no guarantee that any single fund will provide sufficient retirement income at or through your retirement. The fund’s share price fluctuates, which means you could lose money by investing in the fund, including losses near, at or after the target retirement date.

• Asset Allocation Risk. The fund is subject to risks resulting from the Adviser’s asset allocation decisions. The selection of under-lying funds and the allocation of the fund’s assets among various asset classes could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. In addi-tion, the fund’s active asset allocation strategy may cause the fund to have a risk profile different than that portrayed above from time to time and may increase losses.

• Investing in Other Funds. The fund bears all risks of invest-ment strategies employed by the underlying funds, including the risk that the underlying funds will not meet their investment objectives.

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4Summary Prospectus


• Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regula-tory, market, or economic developments. Different parts of the market, including different market sectors, and different types of securities can react differently to these developments.

• Interest Rate Changes. Interest rate increases can cause the price of a debt or money market security to decrease.

• Foreign Exposure. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. Foreign exchange rates also can be extremely volatile.

• Prepayment. The ability of an issuer of a debt security to repay principal prior to a security’s maturity can cause greater price vola-tility if interest rates change.

• Issuer-Specific Changes. The value of an individual secu-rity or particular type of security can be more volatile than, and can perform differently from, the market as a whole. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a security to decrease. The value of securities of smaller issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds) and certain types of

other securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.

• Leverage Risk. Leverage can increase market exposure, magnify investment risks, and cause losses to be realized more quickly.

• “Value” Investing. “Value” stocks can perform differently from the market as a whole and other types of stocks and can continue to be undervalued by the market for long periods of time.


PerformanceThe following information is intended to help you understand the risks of investing in the fund. The information illustrates the changes in the performance of the fund’s shares from year to year and compares the performance of the fund’s shares to the perfor-mance of a securities market index and a hypothetical composite of market indexes over various periods of time. The indexes have characteristics relevant to the fund’s investment strategies. Index descriptions appear in the Additional Index Information section of the prospectus. Returns for shares of the fund do not include the effect of any sales charges or other expenses of any variable annuity or variable life insurance product; if they did, returns for shares of the fund would be lower. Past performance is not an indication of future performance.


30

20

10

0

-10

-20

-30

2015201420132012201120102009200820072006

-0.25%4.30%9.74%9.57%0.18%11.34%23.02%-23.83%8.65%9.59%

Calendar Years

Percentage (%)

During the periods shown in the chart for Initial Class: Returns Quarter endedHighest Quarter Return 12.01% September 30, 2009Lowest Quarter Return –12.39% December 31, 2008

PAGE 152




yearPast 5 years

Past 10 years

Initial Class –0.25% 4.62% 4.53%

Service Class –0.35% 4.51% 4.42%

Service Class 2 –0.49% 4.37% 4.27%

Barclays® U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes) 0.55% 3.25% 4.51%

Fidelity Freedom 2005 Composite IndexSM (reflects no deduction for fees or expenses) –0.03% 4.83% 4.47%

Investment AdviserFMR Co., Inc. (FMRC) (the Adviser), an affiliate of Fidelity Management & Research Company (FMR), is the fund’s manager.

Portfolio Manager(s)Andrew Dierdorf (co-manager) has managed the fund since June 2011.

Brett Sumsion (co-manager) has managed the fund since January 2014.

Purchase and Sale of SharesOnly Permitted Accounts, including separate accounts of insurance companies that have signed the appropriate agreements with the fund, can buy or sell shares. Insurance companies offer variable annuity and variable life insurance products through separate accounts.

Permitted Accounts - not variable product owners - are the share-holders of the fund. Variable product owners hold interests in separate accounts. The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insur-ance product prospectus.





Tax InformationVariable product owners seeking to understand the tax conse-quences of their investment should consult with their tax advisers or the insurance company that issued their variable product, or refer to their variable annuity or variable life insurance product prospectus.

Insurance company separate accounts generally do not pay tax on dividends or capital gain distributions from the fund.


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VIP Freedom 2005 Portfolio and Fidelity Freedom 2005 Composite Index are service marks of FMR LLC.



1.907899.113 VIPF2005-SUM-0416

PAGE 154





PAGE 155

2Summary Prospectus

Fund Summary







Service Class 2











1 year $ 56 $ 66 $ 82

3 years $ 176 $ 208 $ 255

5 years $ 307 $ 362 $ 444

10 years $ 689 $ 810 $ 990





PAGE 156







Bond Funds* 37.8%










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4Summary Prospectus













30

20

10

0

-10

-20

-30

2015201420132012201120102009200820072006

-0.29%4.53%13.49%11.78%-0.19%12.95%24.27%-25.05%8.71%9.82%

Calendar Years

Percentage (%)


PAGE 158




yearPast 5 years

Past 10 years

Initial Class –0.29% 5.70% 5.18%

Service Class –0.31% 5.61% 5.09%

Service Class 2 –0.53% 5.45% 4.92%















PAGE 159






1.907900.113 VIPF2010-SUM-0416

PAGE 160





PAGE 161

2Summary Prospectus

Fund Summary







Service Class 2











1 year $ 59 $ 69 $ 85

3 years $ 186 $ 218 $ 265

5 years $ 324 $ 379 $ 460

10 years $ 726 $ 847 $ 1,025





PAGE 162







Bond Funds* 34.4%










PAGE 163

4Summary Prospectus













30

20

10

0

-10

-20

-30

2015201420132012201120102009200820072006

-0.33%4.70%14.41%12.23%-0.36%13.09%25.28%-27.03%9.33%11.04%

Calendar Years

Percentage (%)


PAGE 164




yearPast 5 years

Past 10 years

Initial Class –0.33% 5.95% 5.30%

Service Class –0.44% 5.85% 5.19%

Service Class 2 –0.51% 5.71% 5.05%

S&P 500® Index (reflects no deduction for fees, expenses, or taxes) 1.38% 12.57% 7.31%














PAGE 165






1.907901.113 VIPF2015-SUM-0416

PAGE 166





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2Summary Prospectus

Fund Summary







Service Class 2











1 year $ 61 $ 72 $ 87

3 years $ 192 $ 224 $ 271

5 years $ 335 $ 390 $ 471

10 years $ 750 $ 871 $ 1,049





PAGE 168







Bond Funds* 32.0%






• Designed for investors who anticipate retiring in or within a few years of 2020 (target retirement date) at or around age 65 and plan to gradually withdraw the value of their account in the fund over time.




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4Summary Prospectus













302010

0-10-20-30-40

2015201420132012201120102009200820072006

-0.27%4.82%16.01%13.38%-1.03%14.49%28.97%-32.60%10.23%11.95%

Calendar Years

Percentage (%)


PAGE 170




yearPast 5 years

Past 10 years

Initial Class –0.27% 6.36% 5.27%

Service Class –0.37% 6.24% 5.16%

Service Class 2 –0.46% 6.10% 5.01%















PAGE 171






1.907902.113 VIPF2020-SUM-0416

PAGE 172





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2Summary Prospectus

Fund Summary







Service Class 2











1 year $ 64 $ 75 $ 90

3 years $ 202 $ 233 $ 281

5 years $ 351 $ 406 $ 488

10 years $ 786 $ 906 $ 1,084





PAGE 174







Bond Funds* 29.0%










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4Summary Prospectus













40302010

0-10-20-30-40

2015201420132012201120102009200820072006

-0.18%5.06%19.95%15.11%-2.11%15.79%30.05%-34.16%10.50%12.49%

Calendar Years

Percentage (%)


PAGE 176




yearPast 5 years

Past 10 years

Initial Class –0.18% 7.23% 5.74%

Service Class –0.36% 7.10% 5.62%

Service Class 2 –0.50% 6.96% 5.47%















PAGE 177






1.907903.113 VIPF2025-SUM-0416

PAGE 178





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2Summary Prospectus

Fund Summary







Service Class 2











1 year $ 67 $ 78 $ 93

3 years $ 211 $ 243 $ 290

5 years $ 368 $ 422 $ 504

10 years $ 822 $ 942 $ 1,120





PAGE 180







Bond Funds* 18.4%










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4Summary Prospectus






• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can per-form differently from, the market as a whole. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a security to decrease. The value of securities of smaller issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds) and certain types of other secu-rities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt

securities and certain types of other securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.


• “Growth” Investing. “Growth” stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks.





40302010

0-10-20-30-40

2015201420132012201120102009200820072006

-0.24%4.96%21.66%15.58%-2.60%16.08%31.66%-38.04%11.37%13.20%

Calendar Years

Percentage (%)


PAGE 182




yearPast 5 years

Past 10 years

Initial Class –0.24% 7.48% 5.52%

Service Class –0.34% 7.37% 5.42%

Service Class 2 –0.53% 7.20% 5.26%















PAGE 183






1.907904.113 VIPF2030-SUM-0416

PAGE 184

Fidelity® Variable Insurance ProductsInitial Class, Service Class, and Service Class 2Freedom Income Portfolio




PAGE 185

2Summary Prospectus

Fund Summary

Fund/Class:VIP Freedom Income PortfolioSM/Initial Class, Service Class, Service Class 2

Investment ObjectiveThe fund seeks high total return with a secondary objective of princi-pal preservation.





Service Class 2











1 year $ 47 $ 57 $ 73

3 years $ 148 $ 179 $ 227

5 years $ 258 $ 313 $ 395

10 years $ 579 $ 701 $ 883

Portfolio TurnoverThe fund will not incur transaction costs, such as commissions, when it buys and sells shares of underlying Fidelity® funds (or “turns over” its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the fund were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual operating expenses or in the example and would affect the fund’s performance. During the most

recent fiscal year, the fund’s portfolio turnover rate was 36% of the average value of its portfolio.

Principal Investment Strategies• Investing in a combination of Fidelity® Variable Insurance Products (VIP) domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity® funds).

PAGE 186


• Allocating assets among underlying Fidelity® funds according to a stable “neutral” asset allocation strategy shown in the “glide path” below.

• Allocating assets among underlying Fidelity® funds according to a stable “neutral” asset allocation of approximately:

Domestic Equity Funds* 17%

International Equity Funds* 7%

Bond Funds* 46%

Short-Term Funds* 30%






• Asset Allocation Risk. The fund is subject to risks resulting from the Adviser’s asset allocation decisions. The selection of underlying funds and the allocation of the fund’s assets among various asset classes could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. In addition, the fund’s active asset allocation strategy may cause the fund to have a risk profile different than that portrayed above from time to time and may increase losses.

• Investing in Other Funds. The fund bears all risks of investment strategies employed by the underlying funds, including the risk that the underlying funds will not meet their investment objectives.

• Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regula-tory, market, or economic developments. Different parts of the

PAGE 187

4Summary Prospectus


market, including different market sectors, and different types of securities can react differently to these developments.


• Foreign Exposure. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market.


• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can per-form differently from, the market as a whole. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a security to decrease. The value of securities of smaller issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds) and certain types of other secu-rities involve greater risk of default or price changes due to changes

in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.





20

10

0

-10

-20

2015201420132012201120102009200820072006

-0.34%3.78%5.55%6.52%1.63%7.49%14.95%-10.45%6.10%6.94%

Calendar Years

Percentage (%)




yearPast 5 years

Past 10 years

Initial Class –0.34% 3.40% 4.02%

Service Class –0.42% 3.30% 3.92%

Service Class 2 –0.57% 3.13% 3.76%


Fidelity Freedom Income Composite IndexSM (reflects no deduction for fees or expenses) 0.12% 3.48% 3.82%

PAGE 188













PAGE 189



VIP Freedom Income Portfolio and Fidelity Freedom Income Composite Index are service marks of FMR LLC.



1.907898.113 VIPFINC-SUM-0416

PAGE 190


Service Class and Service Class 2FundsManager 20% Portfolio




PAGE 191

2Summary Prospectus

Fund Summary

Fund/Class:VIP FundsManager® 20% Portfolio/Service Class, Service Class 2

Investment ObjectiveThe fund seeks high current income and, as a secondary objective, capital appreciation.




Service Class

Service Class 2

Management fee 0.25% 0.25%

Distribution and/or Service (12b-1) fees 0.10% 0.25%

Other expenses 0.00% 0.00%

Acquired fund fees and expenses 0.38% 0.38%

Total annual operating expenses(a) 0.73% 0.88%

Fee waiver and/or expense reimbursement(b) 0.15% 0.15%

Total annual operating expenses after fee waiver and/or expense reimbursement(a) 0.58% 0.73%


(b) FMR Co., Inc. (FMRC) has contractually agreed to waive 0.05% of the fund’s management fee. This arrangement will remain in effect through April 30, 2017. In addition, Fidelity Management & Research Company (FMR) has contractually agreed to reimburse 0.10% of class-level expenses for Ser-vice Class and Service Class 2. This arrangement will remain in effect for at least one year from the effective date of the prospectus, and will remain in effect thereafter as long as Service Class and Service Class 2 continue to be sold to unaffiliated insurance companies. If Service Class and Service Class 2 are no longer sold to unaffiliated insurance companies, FMR, in its sole discretion, may discontinue the arrangement.




Service Class Service Class 2

1 year $ 59 $ 75

3 years $ 213 $ 260

5 years $ 386 $ 468

10 years $ 887 $ 1,066

Portfolio TurnoverThe fund will not incur transaction costs, such as commissions, when it buys and sells shares of underlying Fidelity® funds (or “turns over” its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the fund were to buy

and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual operating expenses or in the example and would affect the fund’s performance. During the most

PAGE 192


recent fiscal year, the fund’s portfolio turnover rate was 44% of the average value of its portfolio.

Principal Investment Strategies• Normally investing in a combination of underlying Fidelity® retail and Variable Insurance Products (VIP) funds (underlying Fidelity® funds).

• Using a target asset allocation among underlying Fidelity® funds of approximately:

Domestic Equity Funds 14%

International Equity Funds 6%

Fixed-Income Funds 50%

Money Market Funds 30%

• Actively managing underlying Fidelity® fund holdings to achieve portfolio characteristics similar to the Fidelity VIP FundsManager 20% Composite IndexSM, which is a hypothetical representation of the performance of the asset classes in which the underly-ing Fidelity funds invest, based on combinations of the following unmanaged indexes: Dow Jones U.S. Total Stock Market IndexSM (equities); MSCI EAFE Index (international equities); Barclays® U.S. Aggregate Bond Index (bonds); and Barclays® U.S. 3 Month Treasury Bellwether Index (short-term investments).

• Using proprietary fundamental and quantitative fund research, considering factors including fund performance, a fund manager’s experience and investment style, and fund characteristics such as expense ratio, asset size, and portfolio turnover to select underlying funds.

Principal Investment Risks• Investing in Other Funds. The fund bears all risks of invest-ment strategies employed by the underlying funds, including the risk that the underlying funds will not meet their investment objectives.




• Geographic Exposure. Social, political, and economic condi-tions and changes in regulatory, tax, or economic policy in a country or region could significantly affect the market in that country or region.

• Industry Exposure. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single industry or group of related industries.


• Issuer-Specific Changes. The value of an individual security or particular type of security can be more volatile than, and can per-form differently from, the market as a whole. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a security to decrease. Lower-quality debt securities (those of less than invest-ment-grade quality, also referred to as high yield debt securities or junk bonds) and certain types of other securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic develop-ments and can be difficult to resell.


• Commodity-Linked Investing. The value of commodities and commodity-linked investments may be affected by the performance of the overall commodities markets as well as weather, political, tax, and other regulatory and market developments. Commodity-linked investments may be more volatile and less liquid than the underlying commodity, instruments, or measures.



PAGE 193

4Summary Prospectus



20

10

0

-10

201520142013201220112010200920082007

-0.03%4.21%5.53%5.68%2.30%7.36%10.43%-8.33%6.12%

Calendar Years

Percentage (%)

During the periods shown in the chart for Service Class: Returns Quarter endedHighest Quarter Return 5.75% September 30, 2009Lowest Quarter Return –4.18% September 30, 2008



yearPast 5 years

Life of class(a)

Service Class –0.03% 3.52% 3.85%

Service Class 2 –0.17% 3.36% 3.69%


Fidelity VIP FundsManager 20% Composite IndexSM (reflects no deduction for fees or expenses) 0.48% 3.67% 4.08%

(a) From April 13, 2006


Portfolio Manager(s)Xuehai En (portfolio manager) has managed the fund since October 2008.








Payments to Broker-Dealers and Other Financial IntermediariesThe fund, the Adviser, Fidelity Distributors Corporation (FDC), and/or their affiliates may pay intermediaries, which may include insurance companies and their affiliated broker-dealers and service-providers (who may be affiliated with the Adviser or FDC), for the sale of fund shares and related services. These payments may create a conflict of interest by influencing your intermediary and your

PAGE 194


investment professional to recommend the fund over another invest-ment. Ask your investment professional or visit your intermediary’s web site for more information.

PAGE 195


Fidelity, Fidelity Investments & Pyramid Design, and VIP FundsManager are registered service marks of FMR LLC. © 2016 FMR LLC. All rights reserved.

Fidelity VIP FundsManager 20% Composite Index is a service mark of FMR LLC.



1.907924.109 VIPFM-20-SUM-0416

PAGE 196






PAGE 197

2Summary Prospectus

Fund Summary


Investment ObjectiveThe fund seeks high total return.





Service Class

Service Class 2














1 year $ 79 $ 94

3 years $ 273 $ 320

5 years $ 489 $ 570

10 years $ 1,113 $ 1,287

Portfolio TurnoverThe fund will not incur transaction costs, such as commissions, when it buys and sells shares of underlying Fidelity® funds (or “turns over” its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the fund were to buy and sell other types of securities directly, a higher portfolio turnover

rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual operating expenses or in the example and would affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 24% of the average value of its portfolio.

PAGE 198








• Actively managing underlying Fidelity® fund holdings to achieve portfolio characteristics similar to the Fidelity VIP FundsManager 50% Composite IndexSM, which is a hypothetical representation of the performance of the asset classes in which the underly-ing Fidelity funds invest, based on combinations of the following unmanaged indexes: Dow Jones U.S. Total Stock Market IndexSM (equities); MSCI EAFE Index (international equities); Barclays® U.S. Aggregate Bond Index (bonds); and Barclays® U.S. 3 Month Treasury Bellwether Index (short-term investments).






• Geographic Exposure. Social, political, and economic condi-tions and changes in regulatory, tax, or economic policy in a country

or region could significantly affect the market in that country or region.








PAGE 199

4Summary Prospectus



20

10

0

-10

-20

-30

201520142013201220112010200920082007

0.06%5.18%14.79%10.24%-0.42%11.89%18.82%-22.48%6.99%

Calendar Years

Percentage (%)

During the periods shown in the chart for Service Class: Returns Quarter endedHighest Quarter Return 10.64% September 30, 2009Lowest Quarter Return –10.40% December 31, 2008



yearPast 5 years

Life of class(a)

Service Class 0.06% 5.81% 4.74%

Service Class 2 –0.02% 5.65% 4.59%












Tax InformationVariable product owners seeking to understand the tax consequences of their investment should consult with their tax advisers or the insurance company that issued their variable product, or refer to their variable annuity or variable life insurance product prospectus. Insurance company separate accounts generally do not pay tax on dividends or capital gain distributions from the fund.


PAGE 200



PAGE 201






1.907925.110 VIPFM-50-SUM-0416

PAGE 202






PAGE 203

2Summary Prospectus

Fund Summary







Service Class

Service Class 2














1 year $ 92 $ 107

3 years $ 314 $ 361

5 years $ 560 $ 640

10 years $ 1,264 $ 1,437



PAGE 204








• Actively managing underlying Fidelity® fund holdings to achieve portfolio characteristics similar to the Fidelity VIP FundsManager 70% Composite IndexSM, which is a hypothetical representation of the performance of the asset classes in which the underlying Fidelity® funds invest, based on combinations of the following unmanaged indexes: Dow Jones U.S. Total Stock Market IndexSM (equities); MSCI EAFE Index (international equities); Barclays® U.S. Aggregate Bond Index (bonds); and Barclays® U.S. 3 Month Treasury Bellwether Index (short-term investments).















PAGE 205

4Summary Prospectus



302010

0-10-20-30-40

201520142013201220112010200920082007

0.41%5.24%21.75%13.10%-2.79%14.32%24.44%-32.03%7.80%

Calendar Years

Percentage (%)

During the periods shown in the chart for Service Class: Returns Quarter endedHighest Quarter Return 13.93% June 30, 2009Lowest Quarter Return –16.06% December 31, 2008



yearPast 5 years

Life of class(a)

Service Class 0.41% 7.18% 4.96%

Service Class 2 0.29% 7.03% 4.80%














PAGE 206



PAGE 207






1.907927.109 VIPFM-70-SUM-0416

PAGE 208






PAGE 209

2Summary Prospectus

Fund Summary







Service Class

Service Class 2














1 year $ 101 $ 116

3 years $ 342 $ 389

5 years $ 608 $ 688

10 years $ 1,368 $ 1,539



PAGE 210








• Actively managing underlying Fidelity® fund holdings to achieve portfolio characteristics similar to the Fidelity VIP FundsManager 85% Composite IndexSM, which is a hypothetical representation of the performance of the asset classes in which the underlying Fidelity® funds invest, based on combinations of the following unmanaged indexes: Dow Jones U.S. Total Stock Market IndexSM (equities); MSCI EAFE Index (international equities); and Barclays® U.S. Aggregate Bond Index (bonds).















PAGE 211

4Summary Prospectus



302010

0-10-20-30-40

201520142013201220112010200920082007

0.39%5.29%27.86%14.13%-5.30%16.07%28.56%-38.14%8.52%

Calendar Years

Percentage (%)

During the periods shown in the chart for Service Class: Returns Quarter endedHighest Quarter Return 16.72% June 30, 2009Lowest Quarter Return –19.81% December 31, 2008



yearPast 5 years

Life of class(a)

Service Class 0.39% 7.87% 4.93%

Service Class 2 0.35% 7.71% 4.77%














PAGE 212



PAGE 213






1.907928.109 VIPFM-85-SUM-0416

PAGE 214

MAY 1, 2016

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the

Fund and its risks. You can find the Fund’s prospectus, statement of additional information and other information

about the Fund online at franklintempleton.com/ftviptfunds. You can also get this information at no cost by calling

1-888-FRANKLIN or by sending an e-mail request to [email protected]. The Fund’s

prospectus and statement of additional information, both dated May 1, 2016, as may be amended from time to

time, are incorporated by reference into this Summary prospectus, which means that they are legally a part of this

Summary prospectus. Shares of the insurance funds of Franklin Templeton Variable Insurance Products Trust are

not offered to the public; they are offered and sold only to: (1) insurance company separate accounts to serve as the

underlying investment vehicles for variable contracts; (2) certain qualified plans; and (3) other mutual funds (fund

of funds). This Summary prospectus is not intended for use by other investors. Please check with your insurance

company for availability. Please read this Summary prospectus together with your variable annuity or variable life

insurance product prospectus.

SUMMARY PROSPECTUSFRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST | CLASS 2

Franklin Small-Mid Cap Growth VIP Fund

PAGE 215

S U M M A RY P RO S P E C T U S

2 - Franklin Small-Mid Cap Growth VIP Fund - Class 2

Investment GoalLong-term capital growth.

Fees and Expenses of the FundThis table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. The table and the example do not include any fees or sales charges imposed by variable insurance contracts, qualified retirement plans or funds of funds. If they were included, your costs would be higher.

Annual Fund Operating Expenses(expenses that you pay each year as a percentage of the value of your investment)

Class 2

Management fees 0.77%

Distribution and service (12b-1) fees 0.25%

Other expenses 0.04%

Total annual Fund operating expenses 1.06%

ExampleThis Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example reflects adjustments made to the Fund’s operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


Class 2 $108 $337 $585 $1,294

Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual Fund operating expenses or in the example, affect the Fund’s

performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 37.85% of the average value of its portfolio.

Principal Investment StrategiesUnder normal market conditions, the Fund invests at least 80% of its net assets in the equity securities of small-capitalization (small-cap) and mid-capitalization (mid-cap) companies. For this Fund, small-cap companies are companies within the market capitalization range of companies in the Russell 2500™ Index, at the time of purchase, and mid-cap companies are companies within the market capitalization range of companies in the Russell Midcap® Index, at the time of purchase. Under normal market conditions, the Fund invests predominantly in equity securities, predominantly in common stock.

The Fund, from time to time, may have significant positions in particular sectors such as technology (including healthcare technology, technology services and electronic technology), industrials, consumer discretionary and healthcare.

The investment manager uses fundamental, “bottom-up” research to seek companies meeting its criteria of growth potential, quality and valuation. In seeking sustainable growth characteristics, the investment manager looks for companies that it believes can produce sustainable earnings and cash flow growth, evaluating the long term market opportunity and competitive structure of an industry to target leaders and emerging leaders. In assessing value, the investment manager considers whether security prices fully reflect the balance of the sustainable growth opportunities relative to business and financial risks.

Principal RisksYou could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.

Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand

PAGE 216



unrelated to the issuer. This is a basic risk associated with all securities. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.

Stock prices tend to go up and down more dramatically than those of debt securities. A slower-growth or recessionary economic environment could have an adverse effect on the prices of the various stocks held by the Fund.

Growth Style Investing Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term.

Smaller and Midsize Companies Securities issued by smaller and midsize companies may be more volatile in price than those of larger companies, involve substantial risks and should be considered speculative. Such risks may include greater sensitivity to economic conditions, less certain growth prospects, lack of depth of management and funds for growth and development, and limited or less developed product lines and markets. In addition, smaller and midsize companies may be particularly affected by interest rate

increases, as they may find it more difficult to borrow money to continue or expand operations, or may have difficulty in repaying any loans.

Focus To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, the Fund may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments.

Liquidity From time to time, the trading market for a particular security or type of security in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security. Market prices for such securities may be volatile.

Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund’s investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.

PAGE 217



PerformanceThe following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year for Class 2 shares. The table shows how the Fund’s average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compare with those of a broad measure of market performance. The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future.

The inclusion of the S&P 500® Index shows how the Fund’s performance compares to a group of securities in an additional leading stock index.

Performance reflects all Fund expenses but does not include any fees or sales charges imposed by variable insurance contracts, qualified plans or funds of funds. If they had been included, the returns shown below would be lower. Investors should consult the variable insurance contract prospectus, or the disclosure documents for qualified plans or funds of funds for more information.

Annual Total Returns

Best Quarter: Q3’09 17.18%

Worst Quarter: Q4’08 -27.15%

As of March 31, 2016, the Fund’s year-to-date return was -3.11%.

-2.66%

7.47%

38.15%

10.85%

-4.83%

27.62%

43.57%

-42.50%

11.24%8.69%

2015201420132012201120102009200820072006Year

Average Annual Total ReturnsFor the periods ended December 31, 2015


Franklin Small-Mid Cap Growth VIP Fund - Class 2 -2.66% 8.80% 6.87%

Russell Midcap® Growth Index (index reflects no deduction for fees, expenses or taxes) -0.20% 11.54% 8.16%

S&P 500® Index (index reflects no deduction for fees, expenses or taxes) 1.38% 12.57% 7.31%

No one index is representative of the Fund’s portfolio.

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Investment ManagerFranklin Advisers, Inc. (Advisers)

Portfolio ManagersEdward B. JamiesonPresident, Chief Investment Officer and Director of Advisers and portfolio manager of the Fund since 2005.Michael McCarthy, CFAExecutive Vice President of Advisers and portfolio manager of the Fund since 1995.James Cross, CFAPortfolio Manager of Advisers and portfolio manager of the Fund since 2006.

Purchase and Sale of Fund SharesShares of the Fund are sold to insurance companies’ separate accounts (Insurers) to fund variable annuity or variable life insurance contracts and to qualified plans. Insurance companies offer variable annuity and variable life insurance products through separate accounts. Shares of the Fund may also be sold to other mutual funds, either as underlying funds in a fund of funds or in other structures. In addition, Fund shares are held by a limited number of Insurers, qualified retirement plans and, when applicable, funds of funds. Substantial withdrawals by one or more Insurers, qualified retirement plans or funds of funds could reduce Fund assets, causing total Fund expenses to become higher than the numbers shown in the fees and expenses table above.

The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insurance product prospectus. The terms of offerings of funds of funds are included in those funds’ prospectuses. The terms of offering of qualified

retirement plans are described in their disclosure documents. Investors should consult the variable contract prospectus, fund of fund prospectus, or plan disclosure documents for more information on fees and expenses imposed by variable insurance contracts, funds of funds or qualified retirement plans, respectively.

TaxesBecause shares of the Fund are generally purchased through variable annuity contracts or variable life insurance contracts, the Fund’s distributions (which the Fund expects, based on its investment goals and strategies to consist of ordinary income, capital gains or some combination of both) will be exempt from current taxation if left to accumulate within the variable contract. You should refer to your contract prospectus for more information on these tax consequences.

Payments to Sponsoring Insurance Companies and Other Financial IntermediariesThe Fund or its distributor (and related companies) may pay broker/dealers or other financial intermediaries (such as banks and insurance companies, or their related companies) for the sale and retention of variable contracts which offer Fund shares and/or for other services. These payments may create a conflict of interest for an intermediary or be a factor in the insurance company’s decision to include the Fund as an investment option in its variable contract. For more information, ask your financial advisor, visit your intermediary’s website, or consult the Contract prospectus or this Fund prospectus.

PAGE 219

MAY 1, 2016

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the

Fund and its risks. You can find the Fund’s prospectus, statement of additional information and other information

about the Fund online at franklintempleton.com/ftviptfunds. You can also get this information at no cost by calling

1-888-FRANKLIN or by sending an e-mail request to [email protected]. The Fund’s

prospectus and statement of additional information, both dated May 1, 2016, as may be amended from time to

time, are incorporated by reference into this Summary prospectus, which means that they are legally a part of this

Summary prospectus. Shares of the insurance funds of Franklin Templeton Variable Insurance Products Trust are

not offered to the public; they are offered and sold only to: (1) insurance company separate accounts to serve as the

underlying investment vehicles for variable contracts; (2) certain qualified plans; and (3) other mutual funds (fund

of funds). This Summary prospectus is not intended for use by other investors. Please check with your insurance

company for availability. Please read this Summary prospectus together with your variable annuity or variable life

insurance product prospectus.

SUMMARY PROSPECTUSFRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST | CLASS 2

Franklin Small Cap Value VIP Fund

PAGE 221


2 - Franklin Small Cap Value VIP Fund - Class 2

Investment GoalLong-term total return.

Fees and Expenses of the FundThis table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. The table and the example do not include any fees or sales charges imposed by variable insurance contracts, qualified retirement plans or funds of funds. If they were included, your costs would be higher.

Annual Fund Operating Expenses(expenses that you pay each year as a percentage of the value of your investment)

Class 2

Management fees 0.62%

Distribution and service (12b-1) fees 0.25%

Other expenses 0.03%

Acquired fund fees and expenses1 0.01%

Total annual Fund operating expenses 0.91%

Fee waiver and/or expense reimbursement2 -0.01%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2 0.90%

1. Total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights, which reflect the operating expenses of the Fund and do not include acquired fund fees and expenses.

2. The investment manager has contractually agreed in advance to reduce its fee as a result of the Fund’s investment in a Franklin Templeton money fund (acquired fund) for at least the next 12-month period. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time periods set forth above.

ExampleThis Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example reflects adjustments made to the Fund’s operating expenses due to the fee waivers and/or expense reimbursements by management as described

above for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


Class 2 $92 $289 $503 $1,119

Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual Fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 27.05% of the average value of its portfolio.

Principal Investment StrategiesUnder normal market conditions, the Fund invests at least 80% of its net assets in investments of small-capitalization (small-cap) companies. Small-cap companies are companies with market capitalizations (the total market value of a company’s outstanding stock) under $3.5 billion at the time of purchase.

The Fund generally invests in equity securities that the Fund’s investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation. The Fund invests predominantly in common stocks. A stock price is undervalued, or is a “value,” when it trades at less than the price at which the investment manager believes it would trade if the market reflected all factors relating to the company’s worth. Following this strategy, the Fund invests in companies that the investment manager believes have, for example: stock prices that are low relative to current, or historical or future earnings, book value, cash flow or sales; recent sharp price declines but the potential for good long-term earnings prospects; and valuable intangibles not reflected in the stock price. The Fund also may invest in equity real estate investment trusts (REITs).

The types of companies the Fund may invest in include those that may be considered out of favor, such as companies attempting to recover from bankruptcy, business setbacks or adverse events

PAGE 222



(turnarounds) or cyclical downturns, or that may be considered potential takeover targets.

The Fund may invest up to 25% of its total assets in foreign securities.

Principal RisksYou could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.

Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all securities. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.

Stock prices tend to go up and down more dramatically than those of debt securities. A slower-growth or recessionary economic environment could have an adverse effect on the prices of the various stocks held by the Fund.

Value Style Investing A value stock may not increase in price as anticipated by the investment manager if other investors fail to recognize the company’s value and bid up the price, the markets favor faster-growing companies, or the factors that the investment manager believes will increase the price of the security do not occur.

Cyclical stocks in which the Fund may invest tend to lose value more quickly in periods of anticipated economic downturns than non-cyclical stocks. Companies that may be considered out of favor, particularly companies emerging from bankruptcy, may tend to lose value more quickly in periods of anticipated economic downturns, may have difficulty retaining customers and suppliers and, during economic downturns, may have difficulty paying their debt obligations or finding additional financing.

Smaller Companies Securities issued by smaller companies may be more volatile in price than those of

larger companies, involve substantial risks and should be considered speculative. Such risks may include greater sensitivity to economic conditions, less certain growth prospects, lack of depth of management and funds for growth and development and limited or less developed product lines and markets. In addition, smaller companies may be particularly affected by interest rate increases, as they may find it more difficult to borrow money to continue or expand operations, or may have difficulty in repaying any loans.

Real Estate Investment Trusts (REITs) A REIT’s performance depends on the types, values and locations of the properties it owns and how well those properties are managed. A decline in rental income may occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. Because a REIT may be invested in a limited number of projects or in a particular market segment, it may be more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT under the U.S. federal tax laws could adversely affect the value of a particular REIT or the market for REITs as a whole.

Focus To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, the Fund may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments.

Foreign Securities Investing in foreign securities typically involves more risks than investing in U.S. securities, including risks related to currency exchange rates and policies, country or government specific issues, less favorable trading practices or regulation and greater price volatility. Certain of these risks also may apply to securities of U.S. companies with significant foreign operations.

Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund’s investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.

PAGE 223



PerformanceThe following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year for Class 2 shares. The table shows how the Fund’s average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compare with those of a broad measure of market performance. The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future.

Performance reflects all Fund expenses but does not include any fees or sales charges imposed by variable insurance contracts, qualified plans or funds of funds. If they had been included, the returns shown below would be lower. Investors should consult the variable insurance contract prospectus, or the disclosure documents for qualified plans or funds of funds for more information.

Annual Total Returns

Best Quarter: Q2’09 24.33%

Worst Quarter: Q4’08 -27.34%

As of March 31, 2016, the Fund’s year-to-date return was 5.15%.

-7.39%0.57%

36.24%

18.39%

-3.76%

28.22%29.16%

-33.02%-2.38%

16.98%

2015201420132012201120102009200820072006Year

Average Annual Total ReturnsFor the periods ended December 31, 2015


Franklin Small Cap Value VIP Fund - Class 2 -7.39% 7.65% 6.24%

Russell 2500™ Value Index (index reflects no deduction for fees, expenses or taxes) -5.49% 9.23% 6.51%

PAGE 224



Investment ManagerFranklin Advisory Services, LLC (Advisory Services)

Portfolio ManagersSteven B. RaineriVice President of Advisory Services and portfolio manager of the Fund since 2012.Christopher Meeker, CFAPortfolio Manager of Advisory Services and portfolio manager of the Fund since 2015.Donald G. Taylor, CPAPresident and Chief Investment Officer of Advisory Services and portfolio manager of the Fund since inception (1998).

Purchase and Sale of Fund SharesShares of the Fund are sold to insurance companies’ separate accounts (Insurers) to fund variable annuity or variable life insurance contracts and to qualified plans. Insurance companies offer variable annuity and variable life insurance products through separate accounts. Shares of the Fund may also be sold to other mutual funds, either as underlying funds in a fund of funds or in other structures. In addition, Fund shares are held by a limited number of Insurers, qualified retirement plans and, when applicable, funds of funds. Substantial withdrawals by one or more Insurers, qualified retirement plans or funds of funds could reduce Fund assets, causing total Fund expenses to become higher than the numbers shown in the fees and expenses table above.

The terms of the offering of interests in separate accounts are included in the variable annuity or variable life insurance product prospectus. The terms of offerings of funds of funds are included in those funds’ prospectuses. The terms of offering of qualified

retirement plans are described in their disclosure documents. Investors should consult the variable contract prospectus, fund of fund prospectus, or plan disclosure documents for more information on fees and expenses imposed by variable insurance contracts, funds of funds or qualified retirement plans, respectively.

TaxesBecause shares of the Fund are generally purchased through variable annuity contracts or variable life insurance contracts, the Fund’s distributions (which the Fund expects, based on its investment goals and strategies to consist of ordinary income, capital gains or some combination of both) will be exempt from current taxation if left to accumulate within the variable contract. You should refer to your contract prospectus for more information on these tax consequences.

Payments to Sponsoring Insurance Companies and Other Financial IntermediariesThe Fund or its distributor (and related companies) may pay broker/dealers or other financial intermediaries (such as banks and insurance companies, or their related companies) for the sale and retention of variable contracts which offer Fund shares and/or for other services. These payments may create a conflict of interest for an intermediary or be a factor in the insurance company’s decision to include the Fund as an investment option in its variable contract. For more information, ask your financial advisor, visit your intermediary’s website, or consult the Contract prospectus or this Fund prospectus.

PAGE 225

Before you invest, you may want to review the Portfolio’s Prospectus, whichcontains more information about the Portfolio and its risks. You can find thePortfolio’s Prospectus and other information about the Portfolio online atjanus.com/variable-insurance. You can also get this information at no cost bycalling a Janus representative at 1-877-335-2687 or by sending an email requestto [email protected].

SUMMARY PROSPECTUS DATED MAY 1, 2016

Balanced PortfolioTicker: N/A Service Shares


Balanced Portfolio seeks long-term capital growth, consistent with preservation of capital and balanced by current income.

FEES AND EXPENSES OF THE PORTFOLIO

This table describes the fees and expenses that you may pay if you buy and hold Shares of the Portfolio. Owners of variableinsurance contracts that invest in the Shares should refer to the variable insurance contract prospectus for adescription of fees and expenses, as the following table and examples do not reflect deductions at the separateaccount level or contract level for any charges that may be incurred under a contract. Inclusion of these chargeswould increase the fees and expenses described below.

ANNUAL FUND OPERATING EXPENSES(expenses that you pay each year as a percentage of the value of your investment)

Management Fees 0.55%

Distribution/Service (12b-1) Fees 0.25%

Other Expenses 0.09%

Total Annual Fund Operating Expenses 0.89%

EXAMPLE:The Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutualfunds. The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated, reinvest all dividendsand distributions, and then redeem all of your Shares at the end of each period. The Example also assumes that yourinvestment has a 5% return each year and that the Portfolio’s operating expenses remain the same. Although your actual costsmay be higher or lower, based on these assumptions your costs would be:


Service Shares $ 91 $ 284 $ 493 $ 1,096

Portfolio Turnover: The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turnsover” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflectedin annual fund operating expenses or in the Example, affect the Portfolio’s performance. During the most recent fiscal year,the Portfolio’s turnover rate was 73% of the average value of its portfolio.

PRINCIPAL INVESTMENT STRATEGIES

The Portfolio pursues its investment objective by normally investing 35-65% of its assets in equity securities and theremaining assets in fixed-income securities and cash equivalents. The Portfolio normally invests at least 25% of its assets infixed-income senior securities. The Portfolio’s fixed-income investments may reflect a broad range of credit qualities and mayinclude corporate debt securities, U.S. Government obligations, mortgage-backed securities and other mortgage-relatedproducts, and short-term securities. In addition, the Portfolio may invest up to 35% of its net assets in high-yield/high-riskbonds, also known as “junk” bonds. The Portfolio may also invest in foreign securities, which may include investments inemerging markets. As of December 31, 2015, approximately 60.75% of the Portfolio’s assets were held in equity securities,including common stocks and preferred stocks.

In choosing investments for the Portfolio, the portfolio managers apply a “bottom up” approach with two portfolio managersfocusing on the equity portion of the Portfolio and the other portfolio managers focusing on the fixed-income portion of thePortfolio. With respect to corporate issuers, the portfolio managers look at companies one at a time to determine if acompany is an attractive investment opportunity and if it is consistent with the Portfolio’s investment policies. The portfolio

1 Balanced Portfolio 109-56-81024 05-16

PAGE 227

managers may also consider economic factors, such as the effect of interest rates on certain of the Portfolio’s fixed-incomeinvestments. The portfolio managers share day-to-day responsibility for the Portfolio’s investments.

The Portfolio may also invest its assets in derivatives, which are instruments that have a value derived from, or directly linkedto, an underlying asset, such as equity securities, fixed-income securities, commodities, currencies, interest rates, or marketindices. In particular, the Portfolio may use forward currency contracts to offset risks associated with an investment, currencyexposure, or market conditions.

The Portfolio may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to one-third of itstotal assets as determined at the time of the loan origination.

PRINCIPAL INVESTMENT RISKS

The biggest risk is that the Portfolio’s returns will vary, and you could lose money. The Portfolio is designed for long-terminvestors seeking a balanced portfolio, including common stocks and bonds. Common stocks tend to be more volatile thanmany other investment choices.

Market Risk. The value of the Portfolio’s holdings may decrease if the value of an individual company or security, or multiplecompanies or securities, in the Portfolio decreases or if the portfolio managers’ belief about a company’s intrinsic worth isincorrect. Further, regardless of how well individual companies or securities perform, the value of the Portfolio’s holdingscould also decrease if there are deteriorating economic or market conditions. It is important to understand that the value ofyour investment may fall, sometimes sharply, in response to changes in the market, and you could lose money. Market riskmay affect a single issuer, industry, economic sector, or the market as a whole.

Growth Securities Risk. The Portfolio invests in companies after assessing their growth potential. Securities of companiesperceived to be “growth” companies may be more volatile than other stocks and may involve special risks. If the portfoliomanagers’ perception of a company’s growth potential is not realized, the securities purchased may not perform as expected,reducing the Portfolio’s returns. In addition, because different types of stocks tend to shift in and out of favor depending onmarket and economic conditions, “growth” stocks may perform differently from the market as a whole and other types ofsecurities.

Fixed-Income Securities Risk. The Portfolio may hold debt and other fixed-income securities to generate income. Typically,the values of fixed-income securities change inversely with prevailing interest rates. Therefore, a fundamental risk of fixed-income securities is interest rate risk, which is the risk that the value of such securities will generally decline as prevailinginterest rates rise, which may cause the Portfolio’s net asset value to likewise decrease. For example, while securities withlonger maturities and durations tend to produce higher yields, they also tend to be more sensitive to changes in prevailinginterest rates and are therefore more volatile than shorter-term securities and are subject to greater market fluctuations as aresult of changes in interest rates. The Portfolio may be subject to heightened interest rate risk because the Federal Reservehas ended its monetary stimulus program known as quantitative easing and interest rates are at historically low levels. Theconclusion of quantitative easing and/or rising interest rates may expose fixed-income markets to increased volatility and mayreduce the liquidity of certain Portfolio investments. These developments could cause the Portfolio’s net asset value tofluctuate or make it more difficult for the Portfolio to accurately value its securities. These developments or others also couldcause the Portfolio to face increased shareholder redemptions, which could force the Portfolio to liquidate investments atdisadvantageous times or prices, therefore adversely affecting the Portfolio as well as the value of your investment. Theamount of assets deemed illiquid remaining within the Portfolio may also increase, making it more difficult to meetshareholder redemptions and further adversely affecting the value of the Portfolio. How specific fixed-income securities mayreact to changes in interest rates will depend on the specific characteristics of each security. Fixed-income securities are alsosubject to credit risk, prepayment risk, valuation risk, and liquidity risk. Credit risk is the risk that the credit strength of anissuer of a fixed-income security will weaken and/or that the issuer will be unable to make timely principal and interestpayments and that the security may go into default. Prepayment risk is the risk that during periods of falling interest rates,certain fixed-income securities with higher interest rates, such as mortgage- and asset-backed securities, may be prepaid bytheir issuers thereby reducing the amount of interest payments. Valuation risk is the risk that one or more of the fixed-income securities in which the Portfolio invests are priced differently than the value realized upon such security’s sale. Intimes of market instability, valuation may be more difficult. Liquidity risk is the risk that fixed-income securities may bedifficult or impossible to sell at the time that the portfolio managers would like or at the price the portfolio managers believe

2 Janus Aspen Series

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the security is currently worth. Liquidity risk may be increased to the extent that the Portfolio invests in Rule 144A andrestricted securities.

Sovereign Debt Risk. The Portfolio may invest in U.S. and non-U.S. government debt securities (“sovereign debt”).Investments in U.S. sovereign debt are considered low risk. However, investments in non-U.S. sovereign debt can involve ahigh degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not bewilling or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’swillingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, its cashflow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, and therelative size of its debt position in relation to its economy as a whole. In the event of default, there may be limited or no legalremedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Portfolio may collectall or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Portfolio invests innon-U.S. sovereign debt, it may be subject to currency risk.

Mortgage- and Asset-Backed Securities Risk. Mortgage- and asset-backed securities represent interests in “pools” ofcommercial or residential mortgages or other assets, including consumer loans or receivables. Mortgage- and asset-backedsecurities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in mortgage-and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly intimes of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected intimes of declining interest rates. These risks may reduce the Portfolio’s returns. In addition, investments in mortgage- andasset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk,valuation risk, and liquidity risk than various other types of fixed-income securities.

Foreign Exposure Risk. The Portfolio may have exposure to foreign markets as a result of its investments in foreignsecurities, including investments in emerging markets, which can be more volatile than the U.S. markets. As a result, itsreturns and net asset value may be affected to a large degree by fluctuations in currency exchange rates or political oreconomic conditions in a particular country. In some foreign markets, there may not be protection against failure by otherparties to complete transactions. It may not be possible for the Portfolio to repatriate capital, dividends, interest, and otherincome from a particular country or governmental entity. In addition, a market swing in one or more countries or regionswhere the Portfolio has invested a significant amount of its assets may have a greater effect on the Portfolio’s performancethan it would in a more geographically diversified portfolio. To the extent the Portfolio invests in foreign debt securities, suchinvestments are sensitive to changes in interest rates. Additionally, investments in securities of foreign governments involvethe risk that a foreign government may not be willing or able to pay interest or repay principal when due. The Portfolio’sinvestments in emerging market countries may involve risks greater than, or in addition to, the risks of investing in moredeveloped countries.

High-Yield/High-Risk Bond Risk. High-yield/high-risk bonds (also known as “junk” bonds) may be more sensitive than othertypes of bonds to economic changes, political changes, or adverse developments specific to the company that issued thebond, which may adversely affect their value.

Derivatives Risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referencedsecurities. Gains or losses from a derivative investment can be substantially greater than the derivative’s original cost, and cantherefore involve leverage. Leverage may cause the Portfolio to be more volatile than if it had not used leverage. Derivativescan be less liquid than other types of investments and entail the risk that the counterparty will default on its paymentobligations. To the extent that the Portfolio uses forward currency contracts, there is a risk that unanticipated changes incurrency prices may negatively impact the Portfolio’s performance, among other things.

Securities Lending Risk. The Portfolio may seek to earn additional income through lending its securities to certain qualifiedbroker-dealers and institutions. There is the risk that when portfolio securities are lent, the securities may not be returned ona timely basis, and the Portfolio may experience delays and costs in recovering the security or gaining access to the collateralprovided to the Portfolio to collateralize the loan. If the Portfolio is unable to recover a security on loan, the Portfolio mayuse the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral coulddecrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to thePortfolio.

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Management Risk. The Portfolio is an actively managed investment portfolio and is therefore subject to the risk that theinvestment strategies employed for the Portfolio may fail to produce the intended results. The Portfolio may underperform itsbenchmark index or other mutual funds with similar investment objectives.

An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation orany other government agency.

PERFORMANCE INFORMATION

The following information provides some indication of the risks of investing in the Portfolio by showing how the Portfolio’sperformance has varied over time. The Portfolio’s Service Shares commenced operations on December 31, 1999. The returnsshown for the Service Shares for periods prior to December 31, 1999 reflect the historical performance of a different class ofshares (the Institutional Shares), restated based on the Service Shares’ estimated fees and expenses (ignoring any fee andexpense limitations). The bar chart depicts the change in performance from year to year during the periods indicated, butdoes not include charges or expenses attributable to any insurance product, which would lower the performance illustrated.The Portfolio does not impose any sales or other charges that would affect total return computations. Total return figuresinclude the effect of the Portfolio’s expenses. The table compares the average annual returns for the Service Shares of thePortfolio for the periods indicated to broad-based securities market indices. The indices are not actively managed and are notavailable for direct investment. All figures assume reinvestment of dividends and distributions.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Updated performance information isavailable at janus.com/variable-insurance or by calling 1-877-335-2687.

Annual Total Returns for Service Shares (calendar year-end)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

10.41% 10.29%

– 16.06%

25.58%

8.12%1.35%

13.37%19.80%

8.24%0.41%

Best Quarter: 3rd Quarter 2009 11.42% Worst Quarter: 3rd Quarter 2011 – 11.06%

Average Annual Total Returns (periods ended 12/31/15)


SinceInception(9/13/93)

Balanced Portfolio

Service Shares 0.41% 8.39% 7.58% 9.65%

S&P 500® Index(reflects no deduction for fees, expenses, or taxes)

1.38% 12.57% 7.31% 9.01%

Barclays U.S. Aggregate Bond Index(reflects no deduction for fees, expenses, or taxes)

0.55% 3.25% 4.51% 5.41%

Balanced Index(reflects no deduction for fees, expenses, or taxes)

1.25% 8.48% 6.30% 7.65%

The Portfolio’s primary benchmark index is the S&P 500® Index. The Portfolio also compares its performance to theBarclays U.S. Aggregate Bond Index and the Balanced Index. The indices are described below.

• The S&P 500® Index is a commonly recognized, market-capitalization weighted index of 500 widely held equity securities,designed to measure broad U.S. equity performance.


PAGE 230

• The Barclays U.S. Aggregate Bond Index is made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality orbetter, have at least one year to maturity, and have an outstanding par value of at least $100 million.

• The Balanced Index is an internally-calculated, hypothetical combination of unmanaged indices that combines total returnsfrom the S&P 500® Index (55%) and the Barclays U.S. Aggregate Bond Index (45%).

MANAGEMENT

Investment Adviser: Janus Capital Management LLC

Portfolio Managers: Jeremiah Buckley, CFA, is Executive Vice President and Co-Portfolio Manager of the Portfolio, whichhe has co-managed since December 2015. Marc Pinto, CFA, is Executive Vice President and Co-Portfolio Manager of thePortfolio, which he has co-managed since May 2005. Mayur Saigal is Executive Vice President and Co-Portfolio Manager ofthe Portfolio, which he has co-managed since December 2015. Darrell Watters is Executive Vice President and Co-PortfolioManager of the Portfolio, which he has co-managed since December 2015.

PURCHASE AND SALE OF PORTFOLIO SHARES

Purchases of Shares may be made only by the separate accounts of insurance companies for the purpose of funding variableinsurance contracts or by certain qualified retirement plans. Redemptions, like purchases, may be effected only through theseparate accounts of participating insurance companies or through qualified retirement plans. Requests are duly processed atthe NAV next calculated after your order is received in good order by the Portfolio or its agents. Refer to the appropriateseparate account prospectus or plan documents for details.

TAX INFORMATION

Because Shares of the Portfolio may be purchased only through variable insurance contracts and certain qualified retirementplans, it is anticipated that any income dividends or net capital gains distributions made by the Portfolio will be exempt fromcurrent federal income taxation if left to accumulate within the variable insurance contract or qualified retirement plan. Thefederal income tax status of your investment depends on the features of your qualified retirement plan or variable insurancecontract.

PAYMENTS TO INSURERS, BROKER-DEALERS, AND OTHER FINANCIAL INTERMEDIARIES

Portfolio shares are generally available only through an insurer’s variable contracts, or through certain employer or otherretirement plans (Retirement Products). Retirement Products are generally purchased through a broker-dealer or otherfinancial intermediary. The Portfolio or its distributor (and/or their related companies) may make payments to the insurerand/or its related companies for distribution and/or other services; some of the payments may go to broker-dealers and otherfinancial intermediaries. These payments may create a conflict of interest for an intermediary, or be a factor in the insurer’sdecision to include the Portfolio as an underlying investment option in a variable contract. Ask your financial advisor, visityour intermediary’s website, or consult your insurance contract prospectus for more information.

5 Balanced Portfolio

PAGE 231

Before you invest, you may want to review the Portfolio’s Prospectus, whichcontains more information about the Portfolio and its risks. You can find thePortfolio’s Prospectus and other information about the Portfolio online atjanus.com/variable-insurance. You can also get this information at no cost bycalling a Janus representative at 1-877-335-2687 or by sending an email requestto [email protected].

SUMMARY PROSPECTUS DATED MAY 1, 2016

Forty PortfolioTicker: JACAX Institutional Shares


Forty Portfolio seeks long-term growth of capital.

FEES AND EXPENSES OF THE PORTFOLIO

This table describes the fees and expenses that you may pay if you buy and hold Shares of the Portfolio. Owners of variableinsurance contracts that invest in the Shares should refer to the variable insurance contract prospectus for adescription of fees and expenses, as the following table and examples do not reflect deductions at the separateaccount level or contract level for any charges that may be incurred under a contract. Inclusion of these chargeswould increase the fees and expenses described below.

ANNUAL FUND OPERATING EXPENSES(expenses that you pay each year as a percentage of the value of your investment)

Management Fees (may adjust up or down) 0.65%

Other Expenses 0.09%

Total Annual Fund Operating Expenses 0.74%

EXAMPLE:The Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutualfunds. The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated, reinvest all dividendsand distributions, and then redeem all of your Shares at the end of each period. The Example also assumes that yourinvestment has a 5% return each year and that the Portfolio’s operating expenses remain the same. Although your actual costsmay be higher or lower, based on these assumptions your costs would be:


Institutional Shares $ 76 $ 237 $ 411 $ 918

Portfolio Turnover: The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turnsover” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflectedin annual fund operating expenses or in the Example, affect the Portfolio’s performance. During the most recent fiscal year,the Portfolio’s turnover rate was 55% of the average value of its portfolio.

PRINCIPAL INVESTMENT STRATEGIES

The Portfolio pursues its investment objective by normally investing primarily in a core group of 20-40 common stocksselected for their growth potential. The Portfolio may invest in companies of any size, from larger, well-established companiesto smaller, emerging growth companies. The Portfolio may also invest in foreign securities, which may include investments inemerging markets. As of December 31, 2015, the Portfolio held stocks of 37 companies. Of these holdings, 20 comprisedapproximately 65.92% of the Portfolio’s holdings.

The portfolio managers apply a “bottom up” approach in choosing investments. In other words, the portfolio managers lookat companies one at a time to determine if a company is an attractive investment opportunity and if it is consistent with thePortfolio’s investment policies.

The Portfolio may lend portfolio securities on a short-term or long-term basis, in an amount equal to up to one-third of itstotal assets as determined at the time of the loan origination.

1 Forty Portfolio 109-56-81225 05-16

PAGE 232

PRINCIPAL INVESTMENT RISKS

The biggest risk is that the Portfolio’s returns will vary, and you could lose money. The Portfolio is designed for long-terminvestors seeking an equity portfolio, including common stocks. Common stocks tend to be more volatile than many otherinvestment choices.

Market Risk. The value of the Portfolio’s holdings may decrease if the value of an individual company or security, or multiplecompanies or securities, in the Portfolio decreases or if the portfolio managers’ belief about a company’s intrinsic worth isincorrect. Further, regardless of how well individual companies or securities perform, the value of the Portfolio’s holdingscould also decrease if there are deteriorating economic or market conditions. It is important to understand that the value ofyour investment may fall, sometimes sharply, in response to changes in the market, and you could lose money. Market riskmay affect a single issuer, industry, economic sector, or the market as a whole.

Growth Securities Risk. The Portfolio invests in companies after assessing their growth potential. Securities of companiesperceived to be “growth” companies may be more volatile than other stocks and may involve special risks. If the portfoliomanagers’ perception of a company’s growth potential is not realized, the securities purchased may not perform as expected,reducing the Portfolio’s returns. In addition, because different types of stocks tend to shift in and out of favor depending onmarket and economic conditions, “growth” stocks may perform differently from the market as a whole and other types ofsecurities.

Nondiversification Risk. The Portfolio is classified as nondiversified under the Investment Company Act of 1940, asamended. This gives the portfolio managers more flexibility to hold larger positions in a smaller number of securities. As aresult, an increase or decrease in the value of a single security held by the Portfolio may have a greater impact on thePortfolio’s NAV and total return.

Foreign Exposure Risk. The Portfolio may have exposure to foreign markets as a result of its investments in foreignsecurities, including investments in emerging markets, which can be more volatile than the U.S. markets. As a result, itsreturns and net asset value may be affected to a large degree by fluctuations in currency exchange rates or political oreconomic conditions in a particular country. In some foreign markets, there may not be protection against failure by otherparties to complete transactions. It may not be possible for the Portfolio to repatriate capital, dividends, interest, and otherincome from a particular country or governmental entity. In addition, a market swing in one or more countries or regionswhere the Portfolio has invested a significant amount of its assets may have a greater effect on the Portfolio’s performancethan it would in a more geographically diversified portfolio. To the extent the Portfolio invests in foreign debt securities, suchinvestments are sensitive to changes in interest rates. Additionally, investments in securities of foreign governments involvethe risk that a foreign government may not be willing or able to pay interest or repay principal when due. The Portfolio’sinvestments in emerging market countries may involve risks greater than, or in addition to, the risks of investing in moredeveloped countries.

Securities Lending Risk. The Portfolio may seek to earn additional income through lending its securities to certain qualifiedbroker-dealers and institutions. There is the risk that when portfolio securities are lent, the securities may not be returned ona timely basis, and the Portfolio may experience delays and costs in recovering the security or gaining access to the collateralprovided to the Portfolio to collateralize the loan. If the Portfolio is unable to recover a security on loan, the Portfolio mayuse the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral coulddecrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to thePortfolio.

Management Risk. The Portfolio is an actively managed investment portfolio and is therefore subject to the risk that theinvestment strategies employed for the Portfolio may fail to produce the intended results. The Portfolio may underperform itsbenchmark index or other mutual funds with similar investment objectives.

An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation orany other government agency.


PAGE 233

PERFORMANCE INFORMATION

The following information provides some indication of the risks of investing in the Portfolio by showing how the Portfolio’sperformance has varied over time. The bar chart depicts the change in performance from year to year during the periodsindicated, but does not include charges or expenses attributable to any insurance product, which would lower theperformance illustrated. The Portfolio does not impose any sales or other charges that would affect total return computations.Total return figures include the effect of the Portfolio’s expenses. The table compares the average annual returns for theInstitutional Shares of the Portfolio for the periods indicated to broad-based securities market indices. The indices are notactively managed and are not available for direct investment. All figures assume reinvestment of dividends and distributions.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Updated performance information isavailable at janus.com/variable-insurance or by calling 1-877-335-2687.

Annual Total Returns for Institutional Shares (calendar year-end)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

9.35%

36.99%

– 44.15%

46.33%

6.75%

– 6.69%

24.16%31.23%

8.73% 12.22%

Best Quarter: 2nd Quarter 2009 22.15% Worst Quarter: 3rd Quarter 2008 – 25.35%

Average Annual Total Returns (periods ended 12/31/15)


SinceInception(5/1/97)

Forty Portfolio

Institutional Shares 12.22% 13.15% 9.26% 11.02%

Russell 1000® Growth Index(reflects no deduction for fees, expenses, or taxes)

5.67% 13.53% 8.53% 6.61%

S&P 500® Index(reflects no deduction for fees, expenses, or taxes)

1.38% 12.57% 7.31% 7.13%

The Portfolio’s primary benchmark index is the Russell 1000® Growth Index. The Portfolio also compares its performance tothe S&P 500® Index. The Russell 1000® Growth Index is used to calculate the Portfolio’s performance fee adjustment. Theindices are described below.

• The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-bookratios and higher forecasted growth values.

• The S&P 500® Index is a commonly recognized, market-capitalization weighted index of 500 widely held equity securities,designed to measure broad U.S. equity performance.

3 Forty Portfolio

PAGE 234

MANAGEMENT

Investment Adviser: Janus Capital Management LLC

Portfolio Managers: A. Douglas Rao is Executive Vice President and Co-Portfolio Manager of the Portfolio, which he hasmanaged or co-managed since June 2013. Nick Schommer, CFA, is Executive Vice President and Co-Portfolio Manager ofthe Portfolio, which he has co-managed since January 2016.

PURCHASE AND SALE OF PORTFOLIO SHARES

Purchases of Shares may be made only by the separate accounts of insurance companies for the purpose of funding variableinsurance contracts or by certain qualified retirement plans. Redemptions, like purchases, may be effected only through theseparate accounts of participating insurance companies or through qualified retirement plans. Requests are duly processed atthe NAV next calculated after your order is received in good order by the Portfolio or its agents. Refer to the appropriateseparate account prospectus or plan documents for details.

TAX INFORMATION

Because Shares of the Portfolio may be purchased only through variable insurance contracts and certain qualified retirementplans, it is anticipated that any income dividends or net capital gains distributions made by the Portfolio will be exempt fromcurrent federal income taxation if left to accumulate within the variable insurance contract or qualified retirement plan. Thefederal income tax status of your investment depends on the features of your qualified retirement plan or variable insurancecontract.

PAYMENTS TO INSURERS, BROKER-DEALERS, AND OTHER FINANCIAL INTERMEDIARIES

Portfolio shares are generally available only through an insurer’s variable contracts, or through certain employer or otherretirement plans (Retirement Products). Retirement Products are generally purchased through a broker-dealer or otherfinancial intermediary. The Portfolio or its distributor (and/or their related companies) may make payments to the insurerand/or its related companies for distribution and/or other services; some of the payments may go to broker-dealers and otherfinancial intermediaries. These payments may create a conflict of interest for an intermediary, or be a factor in the insurer’sdecision to include the Portfolio as an underlying investment option in a variable contract. Ask your financial advisor, visityour intermediary’s website, or consult your insurance contract prospectus for more information.


PAGE 235

PIMCO Foreign Bond Portfolio (U.S.Dollar-Hedged)

PVIT | SUMMARY PROSPECTUS

SUMMARY PROSPECTUSApril 29, 2016§

Share Class: Administrative Summary Prospectus

Before you invest, you may want to review the Portfolio’s prospectus, which, assupplemented, contains more information about the Portfolio and its risks. You can find thePortfolio’s prospectus and other information about the Portfolio online at http://pvit.pimco-funds.com/FundReports.aspx. You can also get this information at no cost by calling1.800.927.4648 or by sending an email request to [email protected]. ThePortfolio’s prospectus and Statement of Additional Information, both dated April 29, 2016,as supplemented, along with the financial statements included in the Portfolio’s most recentannual report to shareholders dated December 31, 2015, are incorporated by reference intothis Summary Prospectus.

Investment ObjectiveThe Portfolio seeks maximum total return, consistent with preservation ofcapital and prudent investment management.

Fees and Expenses of the PortfolioThis table describes the fees and expenses that you may pay if you buy andhold Administrative Class shares of the Portfolio. Overall fees and expensesof investing in the Portfolio are higher than shown because the table doesnot reflect variable contract fees and expenses.

Shareholder Fees (fees paid directly from your investment): None

Annual Portfolio Operating Expenses (expenses that you payeach year as a percentage of the value of your investment):

AdministrativeClass


Distribution and/or Service (12b-1) Fees 0.15%

Total Annual Portfolio Operating Expenses 0.90%

Example. The Example is intended to help you compare the cost ofinvesting in Administrative Class shares of the Portfolio with the costs ofinvesting in other mutual funds. The Example assumes that you invest$10,000 for the time periods indicated, and then redeem all your shares atthe end of those periods. The Example also assumes that your investmenthas a 5% return each year and that the Portfolio’s operating expensesremain the same. Although your actual costs may be higher or lower, theExample shows what your costs would be based on these assumptions. TheExample does not reflect fees and expenses of any variable annuity contractor variable life insurance policy, and would be higher if it did.


Administrative Class $92 $287 $498 $1,108

Portfolio TurnoverThe Portfolio pays transaction costs when it buys and sells securities (or“turns over” its portfolio). A higher portfolio turnover rate may indicatehigher transaction costs. These costs, which are not reflected in the AnnualPortfolio Operating Expenses or in the Example table, affect the Portfolio’s

performance. During the most recent fiscal year, the Portfolio’s portfolioturnover rate was 302% of the average value of its portfolio.

Principal Investment StrategiesThe Portfolio seeks to achieve its investment objective by investing undernormal circumstances at least 80% of its assets in Fixed IncomeInstruments that are economically tied to foreign (non-U.S.) countries,representing at least three foreign countries, which may be represented byforwards or derivatives such as options, futures contracts or swapagreements. “Fixed Income Instruments” include bonds, debt securities andother similar instruments issued by various U.S. and non-U.S. public- orprivate-sector entities. The Portfolio will normally limit its foreign currencyexposure (from non-U.S. dollar-denominated securities or currencies) to20% of its total assets.

Pacific Investment Management Company LLC (“PIMCO”) selects thePortfolio’s foreign country and currency compositions based on anevaluation of various factors, including, but not limited to, relative interestrates, exchange rates, monetary and fiscal policies, trade and currentaccount balances. The Portfolio may invest, without limitation, in securitiesand instruments that are economically tied to emerging market countries.The average portfolio duration of this Portfolio normally varies within threeyears (plus or minus) of the portfolio duration of the securities comprisingthe Barclays Global Aggregate ex-USD (USD Hedged) Index, as calculatedby PIMCO, which as of March 31, 2016 was 7.68 years. Duration is ameasure used to determine the sensitivity of a security’s price to changes ininterest rates. The longer a security’s duration, the more sensitive it will beto changes in interest rates. The Portfolio invests primarily in investmentgrade debt securities, but may invest up to 10% of its total assets in highyield securities (“junk bonds”) rated B or higher by Moody’s InvestorsService, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s RatingsServices (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCOto be of comparable quality (except that within such 10% limitation, thePortfolio may invest in mortgage-related securities rated below B). ThePortfolio is non-diversified, which means that it may invest its assets in asmaller number of issuers than a diversified fund.

The Portfolio may invest, without limitation, in derivative instruments, suchas options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictionsdescribed in the Portfolio’s prospectus or Statement of AdditionalInformation. The Portfolio may purchase or sell securities on a when-issued,delayed delivery or forward commitment basis and may engage in shortsales. The Portfolio may, without limitation, seek to obtain market exposureto the securities in which it primarily invests by entering into a series ofpurchase and sale contracts or by using other investment techniques (suchas buy backs or dollar rolls). The “total return” sought by the Portfolioconsists of income earned on the Portfolio’s investments, plus capitalappreciation, if any, which generally arises from decreases in interest rates,foreign currency appreciation, or improving credit fundamentals for aparticular sector or security. The Portfolio may also invest up to 10% of itstotal assets in preferred stocks.

Principal Risks

PAGE 236

PIMCO Foreign Bond Portfolio (U.S. Dollar-Hedged)

. SUMMARY PROSPECTUS | PVIT2

It is possible to lose money on an investment in the Portfolio. The principalrisks of investing in the Portfolio, which could adversely affect its net assetvalue, yield and total return, are:

Interest Rate Risk: the risk that fixed income securities will decline invalue because of an increase in interest rates; a portfolio with a longeraverage portfolio duration will be more sensitive to changes in interest ratesthan a portfolio with a shorter average portfolio duration

Call Risk: the risk that an issuer may exercise its right to redeem a fixedincome security earlier than expected (a call). Issuers may call outstandingsecurities prior to their maturity for a number of reasons (e.g., declininginterest rates, changes in credit spreads and improvements in the issuer’scredit quality). If an issuer calls a security that the Portfolio has invested in,the Portfolio may not recoup the full amount of its initial investment andmay be forced to reinvest in lower-yielding securities, securities with greatercredit risks or securities with other, less favorable features

Credit Risk: the risk that the Portfolio could lose money if the issuer orguarantor of a fixed income security, or the counterparty to a derivativecontract, is unable or unwilling to meet its financial obligations

High Yield Risk: the risk that high yield securities and unrated securities ofsimilar credit quality (commonly known as “junk bonds”) are subject togreater levels of credit, call and liquidity risks. High yield securities areconsidered primarily speculative with respect to the issuer’s continuingability to make principal and interest payments, and may be more volatilethan higher-rated securities of similar maturity

Market Risk: the risk that the value of securities owned by the Portfoliomay go up or down, sometimes rapidly or unpredictably, due to factorsaffecting securities markets generally or particular industries

Issuer Risk: the risk that the value of a security may decline for a reasondirectly related to the issuer, such as management performance, financialleverage and reduced demand for the issuer’s goods or services

Liquidity Risk: the risk that a particular investment may be difficult topurchase or sell and that the Portfolio may be unable to sell illiquidsecurities at an advantageous time or price or achieve its desired level ofexposure to a certain sector. Liquidity risk may result from the lack of anactive market, reduced number and capacity of traditional marketparticipants to make a market in fixed income securities, and may bemagnified in a rising interest rate environment or other circumstanceswhere investor redemptions from fixed income mutual funds may be higherthan normal, causing increased supply in the market due to selling activity

Derivatives Risk: the risk of investing in derivative instruments (such asfutures, swaps and structured securities), including liquidity, interest rate,market, credit and management risks, mispricing or valuation complexity.Changes in the value of the derivative may not correlate perfectly with, andmay be more sensitive to market events than, the underlying asset, rate orindex, and the Portfolio could lose more than the initial amount invested.The Portfolio’s use of derivatives may result in losses to the Portfolio, areduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterpartyto the transaction will not fulfill its contractual obligations to the otherparty, as many of the protections afforded to centrally-cleared derivative

transactions might not be available for OTC derivatives. For derivativestraded on an exchange or through a central counterparty, credit risk resideswith the creditworthiness of the Portfolio’s clearing broker, or theclearinghouse itself, rather than to a counterparty in an OTC derivativetransaction. Changes in regulation relating to a mutual fund’s use ofderivatives and related instruments could potentially limit or impact thePortfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employcertain strategies that use derivatives and/or adversely affect the value orperformance of derivatives and the Portfolio

Equity Risk: the risk that the value of equity securities, such as commonstocks and preferred stocks, may decline due to general market conditionswhich are not specifically related to a particular company or to factorsaffecting a particular industry or industries. Equity securities generally havegreater price volatility than fixed income securities

Mortgage-Related and Other Asset-Backed Securities Risk: therisks of investing in mortgage-related and other asset-backed securities,including interest rate risk, extension risk, prepayment risk, and credit risk

Foreign (Non-U.S.) Investment Risk: the risk that investing in foreign(non-U.S.) securities may result in the Portfolio experiencing more rapid andextreme changes in value than a portfolio that invests exclusively insecurities of U.S. companies, due to smaller markets, differing reporting,accounting and auditing standards, increased risk of delayed settlement ofportfolio transactions or loss of certificates of portfolio securities, and therisk of unfavorable foreign government actions, including nationalization,expropriation or confiscatory taxation, currency blockage, or politicalchanges or diplomatic developments. Foreign securities may also be lessliquid and more difficult to value than securities of U.S. issuers

Emerging Markets Risk: the risk of investing in emerging marketsecurities, primarily increased foreign (non-U.S.) investment risk

Sovereign Debt Risk: the risk that investments in fixed incomeinstruments issued by sovereign entities may decline in value as a result ofdefault or other adverse credit event resulting from an issuer’s inability orunwillingness to make principal or interest payments in a timely fashion

Currency Risk: the risk that foreign (non-U.S.) currencies will decline invalue relative to the U.S. dollar and affect the Portfolio’s investments inforeign (non-U.S.) currencies or in securities that trade in, and receiverevenues in, or in derivatives that provide exposure to, foreign (non-U.S.)currencies

Issuer Non-Diversification Risk: the risks of focusing investments in asmall number of issuers, including being more susceptible to risksassociated with a single economic, political or regulatory occurrence than amore diversified portfolio might be. Portfolios that are “non-diversified”may invest a greater percentage of their assets in the securities of a singleissuer (such as bonds issued by a particular state) than portfolios that are“diversified”

Leveraging Risk: the risk that certain transactions of the Portfolio, such asreverse repurchase agreements, loans of portfolio securities, and the use ofwhen-issued, delayed delivery or forward commitment transactions, orderivative instruments, may give rise to leverage, magnifying gains and

PAGE 237

Summary Prospectus

April 29, 2016 | SUMMARY PROSPECTUS .3

losses and causing the Portfolio to be more volatile than if it had not beenleveraged. This means that leverage entails a heightened risk of loss

Management Risk: the risk that the investment techniques and riskanalyses applied by PIMCO will not produce the desired results and thatlegislative, regulatory, or tax restrictions, policies or developments mayaffect the investment techniques available to PIMCO and the individualportfolio manager in connection with managing the Portfolio. There is noguarantee that the investment objective of the Portfolio will be achieved

Short Sale Risk: the risk of entering into short sales, including thepotential loss of more money than the actual cost of the investment, andthe risk that the third party to the short sale may fail to honor its contractterms, causing a loss to the Portfolio

Please see “Description of Principal Risks” in the Portfolio’s prospectus for amore detailed description of the risks of investing in the Portfolio. Aninvestment in the Portfolio is not a deposit of a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency.

Performance InformationThe performance information below shows summary performanceinformation for the Portfolio in a bar chart and an Average Annual TotalReturns table. The information provides some indication of the risks ofinvesting in the Portfolio by showing changes in its performance from yearto year and by showing how the Portfolio’s average annual returns comparewith the returns of a broad-based securities market index. The Portfolio’sperformance information reflects applicable fee waivers and/or expenselimitations in effect during the periods presented. Absent such fee waiversand/or expense limitations, if any, performance would have beenlower. Performance shown does not reflect any charges or expensesimposed by an insurance company and if it did, performance shown wouldbe lower. The bar chart and the table show performance of the Portfolio’sAdministrative Class shares. The Portfolio’s past performance is notnecessarily an indication of how the Portfolio will perform in the future.

Effective December 1, 2015, the Portfolio’s broad-based securities marketindex is the Barclays Global Aggregate ex-USD (USD Hedged) Index. TheBarclays Global Aggregate ex-USD (USD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets,excluding USD. The two major components of this index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The index alsoincludes Euro-Yen corporate bonds and Canadian Government securities. Itis not possible to invest directly in an unmanaged index. The Portfolio’s newbroad-based securities market index was selected as its use is more closelyaligned with the Portfolio’s principal investment strategies. Prior toDecember 1, 2015, the Portfolio’s primary benchmark was the JPMorganGBI Global ex-U.S. Index Hedged in USD. The JPMorgan GBI Global ex-U.S.Index Hedged in USD is an unmanaged market index representative of thetotal return performance in U.S. dollars of major non-U.S. bond markets.

Performance for the Portfolio is updated daily and monthly and may beobtained as follows: daily updates on the net asset value may be obtainedby calling 1-888-87-PIMCO and monthly performance may be obtained athttp://pvit.pimco-funds.com.

Calendar Year Total Returns — Administrative Class*

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15-5

0

5

10

15

20

2.19%3.62%

-2.39%

15.60%

8.49%6.76%

10.85%

0.50%

11.16%

0.29%

(%)

Years

*For the periods shown in the bar chart, the highest quarterly return was 7.08% in the Q32009, and the lowest quarterly return was -4.20% in the Q2 2015.

Average Annual Total Returns (for periods ended 12/31/15)1 Year 5 Years 10 Years

Administrative Class Return 0.29% 5.80% 5.56%

Barclays Global Aggregate ex-USD (USD Hedged) Index(reflects no deductions for fees, expenses or taxes)

1.36% 4.31% 4.24%

JPMorgan GBI Global ex-U.S. Index Hedged in USD(reflects no deductions for fees, expenses or taxes)

1.68% 4.49% 4.42%

Investment Adviser/Portfolio ManagerPIMCO serves as theinvestment adviser forthe Portfolio. ThePortfolio’s portfolio isjointly managed byAndrew Balls, Sachin

Gupta and Lorenzo Pagani. Mr. Balls is CIO Global and a Managing Directorof PIMCO. Mr. Gupta is an Executive Vice President of PIMCO. Dr. Pagani isa Managing Director of PIMCO. Messrs. Balls and Gupta and Dr. Paganihave jointly managed the Portfolio since September 2014.

Purchase and Sale of Portfolio SharesShares of the Portfolio currently are sold to segregated asset accounts(“Separate Accounts”) of insurance companies that fund variable annuitycontracts and variable life insurance policies (“Variable Contracts”).Investors do not deal directly with the Portfolio to purchase and redeemshares. Please refer to the prospectus for the Separate Account forinformation on the allocation of premiums and on transfers of accumulatedvalue among sub-accounts of the Separate Account.

Tax InformationThe shareholders of the Portfolio are the insurance companies offering thevariable products. Please refer to the prospectus for the Separate Accountand the Variable Contract for information regarding the federal income taxtreatment of distributions to the Separate Account.

PAGE 238

PIMCO Foreign Bond Portfolio (U.S. Dollar-Hedged)


Payments to Insurance Companies and OtherFinancial IntermediariesThe Portfolio and/or its related companies (including PIMCO) may pay theinsurance company and other intermediaries for the sale of the Portfolioand/or other services. These payments may create a conflict of interest byinfluencing the insurance company or intermediary and your salesperson torecommend a Variable Contract and the Portfolio over another investment.Ask your insurance company or salesperson or visit your financialintermediary’s Web site for more information.

PVIT0335S_042916

PAGE 239

PIMCO Low Duration Portfolio

PVIT | SUMMARY PROSPECTUS

SUMMARY PROSPECTUSApril 29, 2016§

Share Class: Administrative Summary Prospectus

Before you invest, you may want to review the Portfolio’s prospectus, which, assupplemented, contains more information about the Portfolio and its risks. You can find thePortfolio’s prospectus and other information about the Portfolio online at http://pvit.pimco-funds.com/FundReports.aspx. You can also get this information at no cost by calling1.800.927.4648 or by sending an email request to [email protected]. ThePortfolio’s prospectus and Statement of Additional Information, both dated April 29, 2016,as supplemented, along with the financial statements included in the Portfolio’s most recentannual report to shareholders dated December 31, 2015, are incorporated by reference intothis Summary Prospectus.

Investment ObjectiveThe Portfolio seeks maximum total return, consistent with preservation ofcapital and prudent investment management.

Fees and Expenses of the PortfolioThis table describes the fees and expenses that you may pay if you buy andhold Administrative Class shares of the Portfolio. Overall fees and expensesof investing in the Portfolio are higher than shown because the table doesnot reflect variable contract fees and expenses.

Shareholder Fees (fees paid directly from your investment): None

Annual Portfolio Operating Expenses (expenses that you payeach year as a percentage of the value of your investment):

AdministrativeClass


Distribution and/or Service (12b-1) Fees 0.15%

Other Expenses(1) 0.01%

Total Annual Portfolio Operating Expenses(2) 0.66%

1 “Other Expenses” reflect interest expense and is based on the amount incurred duringthe Portfolio’s most recent fiscal year as a result of entering into certain investments,such as reverse repurchase agreements. Interest expense is required to be treated as aPortfolio expense for accounting purposes and is not payable to PIMCO. The amount ofinterest expense (if any) will vary based on the Portfolio’s use of such investments as aninvestment strategy.

2 Total Annual Portfolio Operating Expenses excluding interest expense is 0.65% forAdministrative Class shares.

Example. The Example is intended to help you compare the cost ofinvesting in Administrative Class shares of the Portfolio with the costs ofinvesting in other mutual funds. The Example assumes that you invest$10,000 for the time periods indicated, and then redeem all your shares atthe end of those periods. The Example also assumes that your investmenthas a 5% return each year and that the Portfolio’s operating expensesremain the same. Although your actual costs may be higher or lower, theExample shows what your costs would be based on these assumptions. TheExample does not reflect fees and expenses of any variable annuity contractor variable life insurance policy, and would be higher if it did.


Administrative Class $67 $211 $368 $822

Portfolio TurnoverThe Portfolio pays transaction costs when it buys and sells securities (or“turns over” its portfolio). A higher portfolio turnover rate may indicatehigher transaction costs. These costs, which are not reflected in the AnnualPortfolio Operating Expenses or in the Example table, affect the Portfolio’sperformance. During the most recent fiscal year, the Portfolio’s portfolioturnover rate was 181% of the average value of its portfolio.

Principal Investment StrategiesThe Portfolio seeks to achieve its investment objective by investing undernormal circumstances at least 65% of its total assets in a diversifiedportfolio of Fixed Income Instruments of varying maturities, which may berepresented by forwards or derivatives such as options, futures contracts, orswap agreements. “Fixed Income Instruments” include bonds, debtsecurities and other similar instruments issued by various U.S. and non-U.S.public- or private-sector entities. The average portfolio duration of thisPortfolio normally varies from one to three years based on PacificInvestment Management Company LLC’s (“PIMCO”) forecast for interestrates. Duration is a measure used to determine the sensitivity of a security’sprice to changes in interest rates. The longer a security’s duration, the moresensitive it will be to changes in interest rates.

The Portfolio invests primarily in investment grade debt securities, but mayinvest up to 10% of its total assets in high yield securities (“junk bonds”)rated B or higher by Moody’s Investors Service, Inc. (“Moody’s”), orequivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch,Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparablequality. The Portfolio may invest up to 30% of its total assets in securitiesdenominated in foreign currencies, and may invest beyond this limit in U.S.dollar-denominated securities of foreign issuers. The Portfolio will normallylimit its foreign currency exposure (from non-U.S. dollar-denominatedsecurities or currencies) to 20% of its total assets. The Portfolio may investup to 10% of its total assets in securities and instruments that areeconomically tied to emerging market countries (this limitation does notapply to investment grade sovereign debt denominated in the local currencywith less than 1 year remaining to maturity, which means the Portfolio mayinvest, together with any other investments denominated in foreigncurrencies, up to 30% of its total assets in such instruments).

The Portfolio may invest, without limitation, in derivative instruments, suchas options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictionsdescribed in the Portfolio’s prospectus or Statement of AdditionalInformation. The Portfolio may purchase or sell securities on a when-issued,delayed delivery or forward commitment basis and may engage in shortsales. The Portfolio may, without limitation, seek to obtain market exposureto the securities in which it primarily invests by entering into a series ofpurchase and sale contracts or by using other investment techniques (suchas buy backs or dollar rolls). The “total return” sought by the Portfolioconsists of income earned on the Portfolio’s investments, plus capitalappreciation, if any, which generally arises from decreases in interest rates,

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foreign currency appreciation, or improving credit fundamentals for aparticular sector or security. The Portfolio may also invest up to 10% of itstotal assets in preferred stocks.

Principal RisksIt is possible to lose money on an investment in the Portfolio. The principalrisks of investing in the Portfolio, which could adversely affect its net assetvalue, yield and total return, are:

Interest Rate Risk: the risk that fixed income securities will decline invalue because of an increase in interest rates; a portfolio with a longeraverage portfolio duration will be more sensitive to changes in interest ratesthan a portfolio with a shorter average portfolio duration

Call Risk: the risk that an issuer may exercise its right to redeem a fixedincome security earlier than expected (a call). Issuers may call outstandingsecurities prior to their maturity for a number of reasons (e.g., declininginterest rates, changes in credit spreads and improvements in the issuer’scredit quality). If an issuer calls a security that the Portfolio has invested in,the Portfolio may not recoup the full amount of its initial investment andmay be forced to reinvest in lower-yielding securities, securities with greatercredit risks or securities with other, less favorable features

Credit Risk: the risk that the Portfolio could lose money if the issuer orguarantor of a fixed income security, or the counterparty to a derivativecontract, is unable or unwilling to meet its financial obligations

High Yield Risk: the risk that high yield securities and unrated securities ofsimilar credit quality (commonly known as “junk bonds”) are subject togreater levels of credit, call and liquidity risks. High yield securities areconsidered primarily speculative with respect to the issuer’s continuingability to make principal and interest payments, and may be more volatilethan higher-rated securities of similar maturity

Market Risk: the risk that the value of securities owned by the Portfoliomay go up or down, sometimes rapidly or unpredictably, due to factorsaffecting securities markets generally or particular industries

Issuer Risk: the risk that the value of a security may decline for a reasondirectly related to the issuer, such as management performance, financialleverage and reduced demand for the issuer’s goods or services

Liquidity Risk: the risk that a particular investment may be difficult topurchase or sell and that the Portfolio may be unable to sell illiquidsecurities at an advantageous time or price or achieve its desired level ofexposure to a certain sector. Liquidity risk may result from the lack of anactive market, reduced number and capacity of traditional marketparticipants to make a market in fixed income securities, and may bemagnified in a rising interest rate environment or other circumstanceswhere investor redemptions from fixed income mutual funds may be higherthan normal, causing increased supply in the market due to selling activity

Derivatives Risk: the risk of investing in derivative instruments (such asfutures, swaps and structured securities), including liquidity, interest rate,market, credit and management risks, mispricing or valuation complexity.Changes in the value of the derivative may not correlate perfectly with, andmay be more sensitive to market events than, the underlying asset, rate orindex, and the Portfolio could lose more than the initial amount invested.

The Portfolio’s use of derivatives may result in losses to the Portfolio, areduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterpartyto the transaction will not fulfill its contractual obligations to the otherparty, as many of the protections afforded to centrally-cleared derivativetransactions might not be available for OTC derivatives. For derivativestraded on an exchange or through a central counterparty, credit risk resideswith the creditworthiness of the Portfolio’s clearing broker, or theclearinghouse itself, rather than to a counterparty in an OTC derivativetransaction. Changes in regulation relating to a mutual fund’s use ofderivatives and related instruments could potentially limit or impact thePortfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employcertain strategies that use derivatives and/or adversely affect the value orperformance of derivatives and the Portfolio

Equity Risk: the risk that the value of equity securities, such as commonstocks and preferred stocks, may decline due to general market conditionswhich are not specifically related to a particular company or to factorsaffecting a particular industry or industries. Equity securities generally havegreater price volatility than fixed income securities

Mortgage-Related and Other Asset-Backed Securities Risk: therisks of investing in mortgage-related and other asset-backed securities,including interest rate risk, extension risk, prepayment risk, and credit risk

Foreign (Non-U.S.) Investment Risk: the risk that investing in foreign(non-U.S.) securities may result in the Portfolio experiencing more rapid andextreme changes in value than a portfolio that invests exclusively insecurities of U.S. companies, due to smaller markets, differing reporting,accounting and auditing standards, increased risk of delayed settlement ofportfolio transactions or loss of certificates of portfolio securities, and therisk of unfavorable foreign government actions, including nationalization,expropriation or confiscatory taxation, currency blockage, or politicalchanges or diplomatic developments. Foreign securities may also be lessliquid and more difficult to value than securities of U.S. issuers

Emerging Markets Risk: the risk of investing in emerging marketsecurities, primarily increased foreign (non-U.S.) investment risk

Sovereign Debt Risk: the risk that investments in fixed incomeinstruments issued by sovereign entities may decline in value as a result ofdefault or other adverse credit event resulting from an issuer’s inability orunwillingness to make principal or interest payments in a timely fashion

Currency Risk: the risk that foreign (non-U.S.) currencies will decline invalue relative to the U.S. dollar and affect the Portfolio’s investments inforeign (non-U.S.) currencies or in securities that trade in, and receiverevenues in, or in derivatives that provide exposure to, foreign (non-U.S.)currencies

Leveraging Risk: the risk that certain transactions of the Portfolio, such asreverse repurchase agreements, loans of portfolio securities, and the use ofwhen-issued, delayed delivery or forward commitment transactions, orderivative instruments, may give rise to leverage, magnifying gains andlosses and causing the Portfolio to be more volatile than if it had not beenleveraged. This means that leverage entails a heightened risk of loss

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Summary Prospectus

April 29, 2016 | SUMMARY PROSPECTUS .3

Management Risk: the risk that the investment techniques and riskanalyses applied by PIMCO will not produce the desired results and thatlegislative, regulatory, or tax restrictions, policies or developments mayaffect the investment techniques available to PIMCO and the individualportfolio manager in connection with managing the Portfolio. There is noguarantee that the investment objective of the Portfolio will be achieved

Short Sale Risk: the risk of entering into short sales, including thepotential loss of more money than the actual cost of the investment, andthe risk that the third party to the short sale may fail to honor its contractterms, causing a loss to the Portfolio

Please see “Description of Principal Risks” in the Portfolio’s prospectus for amore detailed description of the risks of investing in the Portfolio. Aninvestment in the Portfolio is not a deposit of a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency.

Performance InformationThe performance information below shows summary performanceinformation for the Portfolio in a bar chart and an Average Annual TotalReturns table. The information provides some indication of the risks ofinvesting in the Portfolio by showing changes in its performance from yearto year and by showing how the Portfolio’s average annual returns comparewith the returns of a broad-based securities market index. The Portfolio’sperformance information reflects applicable fee waivers and/or expenselimitations in effect during the periods presented. Absent such fee waiversand/or expense limitations, if any, performance would have been lower.Performance shown does not reflect any charges or expenses imposed byan insurance company and if it did, performance shown would be lower.The bar chart and the table show performance of the Portfolio’sAdministrative Class shares. The Portfolio’s past performance is notnecessarily an indication of how the Portfolio will perform in the future.

The BofA Merrill Lynch 1-3 Year U.S. Treasury Index is an unmanaged indexcomprised of U.S. Treasury securities, other than inflation-protectionsecurities and STRIPS, with at least $1 billion in outstanding face value anda remaining term to final maturity of at least one year and less than threeyears.

Performance for the Portfolio is updated daily and monthly and may beobtained as follows: daily updates on the net asset value may be obtainedby calling 1-888-87-PIMCO and monthly performance may be obtained athttp://pvit.pimco-funds.com.

Calendar Year Total Returns — Administrative Class*

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15-5

0

5

10

15

20

3.97%

7.36%

-0.42%

13.32%

5.29%

1.11%

5.85%

-0.14%

0.85% 0.31%

(%)

Years

*For the periods shown in the bar chart, the highest quarterly return was 8.04% in the Q22009, and the lowest quarterly return was -2.37% in the Q3 2008.

Average Annual Total Returns (for periods ended 12/31/15)1 Year 5 Years 10 Years

Administrative Class Return 0.31% 1.58% 3.67%

BofA Merrill Lynch 1-3 Year U.S. Treasury Index (reflectsno deductions for fees, expenses or taxes)

0.54% 0.70% 2.42%

Investment Adviser/Portfolio ManagerPIMCO serves as the investment adviserfor the Portfolio. The Portfolio’s portfolio isjointly managed by Scott A. Mather andJerome Schneider. Mr. Mather is CIO U.S.Core Strategies and a Managing Directorof PIMCO. Mr. Schneider is a Managing

Director of PIMCO. Messrs. Mather and Schneider have jointly managed thePortfolio since September 2014.

Purchase and Sale of Portfolio SharesShares of the Portfolio currently are sold to segregated asset accounts(“Separate Accounts”) of insurance companies that fund variable annuitycontracts and variable life insurance policies (“Variable Contracts”).Investors do not deal directly with the Portfolio to purchase and redeemshares. Please refer to the prospectus for the Separate Account forinformation on the allocation of premiums and on transfers of accumulatedvalue among sub-accounts of the Separate Account.

Tax InformationThe shareholders of the Portfolio are the insurance companies offering thevariable products. Please refer to the prospectus for the Separate Accountand the Variable Contract for information regarding the federal income taxtreatment of distributions to the Separate Account.

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Payments to Insurance Companies and OtherFinancial IntermediariesThe Portfolio and/or its related companies (including PIMCO) may pay theinsurance company and other intermediaries for the sale of the Portfolioand/or other services. These payments may create a conflict of interest byinfluencing the insurance company or intermediary and your salesperson torecommend a Variable Contract and the Portfolio over another investment.Ask your insurance company or salesperson or visit your financialintermediary’s Web site for more information.

PVIT0340S_042916

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Strategic Asset Management ("SAM") Balanced Portfolio Account - Class 1 and Class 2 SharesPrincipal Variable Contracts Funds, Inc. Summary Prospectus May 1, 2016

Before you invest, you may want to review the Account's prospectus, which contains more information about the Account and its risks. You can find the Account's prospectus and other information about the Account online at www.principalfunds.com/pvcprospectus. You can also get this information at no cost by calling 1 800-222-5852 or by sending an email request to [email protected].

This Summary Prospectus incorporates by reference the Statutory Prospectus dated May 1, 2016, and the Statement of Additional Information dated May 1, 2016 (which may be obtained in the same manner as the Prospectus).

Objective: The Portfolio seeks to provide as high a level of total return (consisting of reinvested income and capital appreciation) as is consistent with reasonable risk.

Fees and Expenses of the AccountThis table describes the fees and expenses that you may pay if you buy and hold shares of the Account. These fees and expenses do not reflect the fees and expenses of any variable insurance contract that may invest in the Account and would be higher if they did.

Annual Account Operating Expenses(expenses that you pay each year as a percentage of the value of your investment)

Class 1 Class 2Management Fees 0.23% 0.23%Distribution and/or Service (12b-1) Fees N/A 0.25%Other Expenses —% —%Acquired Fund Fees and Expenses 0.70% 0.70%Total Annual Account Operating Expenses 0.93% 1.18%

ExampleThis Example is intended to help you compare the cost of investing in the Account with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Account for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Account’s operating expenses remain the same. If separate account expenses and contract level expenses were included, expenses would be higher. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Number of years you own your shares1 3 5 10

SAM Balanced Portfolio - Class 1 $95 $296 $515 $1,143SAM Balanced Portfolio - Class 2 120 375 649 1,432

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Portfolio TurnoverAs a fund of funds, the Account does not pay transaction costs, such as commissions, when it buys and sells shares of underlying funds (or “turns over” its portfolio); however, the Account does pay such transaction costs when it buys and sells other investments. Also, an underlying fund pays transaction costs when it buys and sells portfolio securities, and a higher portfolio turnover for the underlying fund may indicate higher transaction costs. These costs, which are not reflected in annual account operating expenses or in the examples, affect the performance of the underlying fund and the Account. During its most recent fiscal year, the Account's portfolio turnover rate was 26.1% of the average value of its portfolio.

Principal Investment StrategiesThe SAM Portfolios operate as funds of funds and invest principally in Institutional Class shares of Principal Funds, Inc. and Class 1 shares of Principal Variable Contracts Funds, Inc. equity funds, fixed-income funds and specialty funds ("Underlying Funds"); the Sub-Advisor generally categorizes the Underlying Fund based on the investment profile of the Underlying Fund. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the Sub-Advisor in accordance with its outlook for the economy, the financial markets and the relative market valuations of the Underlying Funds.

The Portfolio:• Generally invests between 20% and 60% of its assets in fixed-income funds, and less than 40% in any

one fixed-income fund (fixed-income funds that generally invest in fixed income instruments such as real estate securities, mortgage-backed securities (securitized products), government and government-sponsored securities, and corporate bonds)

• Generally invests between 40% and 80% of its assets in equity funds that invest in small, medium, and large market capitalization companies, and less than 30% in any one equity fund (equity funds that generally invest in domestic and foreign equity securities) and

• Generally invests less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund (specialty funds that generally offer unique combinations of traditional equity securities and fixed-income securities or that use alternative investment strategies that aim to offer diversification beyond traditional equity and fixed-income securities and include investments in such assets as infrastructure, commodities, currencies, and public timber companies)

The Portfolio may temporarily exceed the applicable percentage ranges for short periods, and the Sub-Advisor may alter the percentage ranges when it deems appropriate.

Principal RisksThe broad diversification of the Portfolio is designed to cushion severe losses in any one investment sector and moderate overall price volatility. However, the Portfolio is subject to the particular risks of the Underlying Funds in which it invests, and its share prices and performance will fluctuate with the shares prices and performance of the Underlying Funds. The Portfolio operates as a fund of funds and thus bears both its own expenses and, indirectly, its proportionate share of the expenses of the Underlying Funds in which it invests. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. If you sell your shares when their value is less than the price you paid, you will lose money.

The principal risks of investing in the Portfolio that are inherent in the fund of funds, in alphabetical order, are:

Asset Allocation Risk. A fund's selection and weighting of asset classes may cause it to underperform other funds with a similar investment objective.

Conflict of Interest Risk. The Advisor and its affiliates earn different fees from different underlying funds and may have an incentive to allocate more fund-of-fund assets to underlying funds from which they receive higher fees.

Fund of Funds Risk. The performance and risks of a fund of funds directly correspond to the performance and risks of the underlying funds in which the fund invests. Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies in which the fund invests.

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The principal risks of investing in the Portfolio that are inherent in the Underlying Funds, in alphabetical order, are:

Equity Securities Risk. The value of equity securities could decline if the issuer's financial condition declines or in response to overall market and economic conditions. A fund's principal market segment (such as market capitalization or style), may underperform other market segments or the equity markets as a whole.

• Growth Stock Risk. If growth companies do not increase their earnings at a rate expected by investors, the market price of the stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• Small and Medium Market Capitalization Companies. Investments in small and medium sized companies may involve greater risk and price volatility than investments in larger, more mature companies.

• Value Stock Risk. Value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that the portfolio manager believed would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock judged to be undervalued actually may be appropriately priced at a low level.

Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit quality risk. The market value of fixed-income securities generally declines when interest rates rise, and an issuer of fixed-income securities could default on its payment obligations.

Foreign Currency Risk. Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

Foreign Securities Risk. The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

Investment Company Securities Risk. Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies in which the fund invests.

Portfolio Duration Risk. Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates.

Real Estate Securities Risk. Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

Redemption Risk. A fund that serves as an underlying fund for a fund of funds is subject to certain risks. When a fund of funds reallocates or rebalances its investments, an underlying fund may experience relatively large redemptions or investments. These transactions may cause the underlying fund to sell portfolio securities to meet such redemptions, or to invest cash from such investments, at times it would not otherwise do so, and may as a result increase transaction costs and adversely affect underlying fund performance.

Securitized Products Risk. Investments in securitized products are subject to risks similar to traditional fixed income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

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U.S. Government Securities Risk. Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities.

U.S. Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored or -chartered enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. Treasury.

PerformanceThe following information provides some indication of the risks of investing in the Account. Past performance is not necessarily an indication of how the Account will perform in the future. You may get updated performance information online at www.principal.com.

The bar chart shows changes in the Account’s performance from year to year. The table shows how the Account’s average annual returns for 1, 5, and 10 years (or, if shorter, the life of the Account) compare with those of one or more broad measures of market performance. Performance figures for the Accounts do not include any separate account expenses, cost of insurance, or other contract-level expenses; total returns for the Accounts would be lower if such expenses were included.

Performance reflects the performance of the predecessor fund.

Total Returns as of December 31 (Class 1 Shares)

Highest return for a quarter during the period of the bar chart above: Q2 '09 13.21 %Lowest return for a quarter during the period of the bar chart above: Q4 '08 (14.58)%

Average Annual Total ReturnsFor the periods ended December 31, 2015 Past 1 Year Past 5 Years Past 10 YearsSAM Balanced Portfolio - Class 1 (0.81)% 7.26% 5.89%SAM Balanced Portfolio - Class 2 (1.08)% 6.98% 5.63%Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) 0.48% 12.18% 7.35%Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, ortaxes)

0.55% 3.25% 4.51%

MSCI EAFE Index NDTR D (reflects no deduction for fees, expenses, or taxes) (0.81)% 3.60% 3.03%SAM Balanced Blended Index (reflects no deduction for fees, expenses, or taxes) 0.56% 7.49% 5.93%

Performance of a blended index shows how the Portfolio’s performance compares to a blend of indices with similar investment objectives. Performance of the components of the blended index are also shown. The weightings for SAM Balanced Blended Index are 45% Russell 3000® Index, 40% Barclays U.S. Aggregate Bond Index, and 15% MSCI EAFE Index NDTR D. The custom or blended index returns reflect the allocation in effect for the time period(s) for which the fund returns are disclosed. Previous weightings or allocations of the custom or blended index are not restated.

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Management

Investment Advisor: Principal Management Corporation

Sub-Advisor and Portfolio Managers:Edge Asset Management, Inc. • Charles D. Averill (since 2010), Portfolio Manager• Jill R. Cuniff (since 2010), President and Portfolio Manager• Todd A. Jablonski (since 2010), Portfolio Manager

Tax InformationThe Fund intends to comply with applicable variable asset diversification regulations. Taxation to you will depend on what you do with your variable life insurance or variable annuity contract. See your variable product prospectus for information about the tax implications of investing in the Accounts.

Payments to Broker-Dealers and Other Financial IntermediariesIf you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank, insurance company, investment adviser, etc.), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, to recommend one share class of the Fund over another share class, or to recommend one variable annuity, variable life insurance policy or mutual fund over another. Ask your salesperson or visit your financial intermediary's website for more information.

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Strategic Asset Management ("SAM") Conservative Balanced Portfolio Account - Class 1 and Class 2 SharesPrincipal Variable Contracts Funds, Inc. Summary Prospectus May 1, 2016



Objective: The Portfolio seeks to provide a high level of total return (consisting of reinvestment of income and capital appreciation), consistent with a moderate degree of principal risk.







SAM Conservative Balanced Portfolio - Class 1 $90 $281 $488 $1,084SAM Conservative Balanced Portfolio - Class 2 115 359 622 1,375

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one fixed-income fund (fixed-income funds that generally invest in fixed income instruments such as high yield securities (or “junk” bonds), real estate securities, mortgage-backed securities (securitized products), government and government-sponsored securities, and corporate bonds)

• Generally invests between 20% and 60% of its assets in equity funds, and less than 30% in any one equity fund (equity funds that generally invest in domestic and foreign equity securities) and


The Portfolio may temporarily exceed these percentage ranges for short periods, and the Sub-Advisor may alter the percentage ranges when it deems appropriate.






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High Yield Securities Risk. High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.


Portfolio Duration Risk. Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates. .




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The bar chart shows changes in the Account's performance from year to year. The table shows how the Account's average annual returns for 1, 5, and 10 years (or, if shorter, the life of the Account) compare with those of one or more broad measures of market performance. Performance figures for the Accounts do not include any separate account expenses, cost of insurance, or other contract-level expenses; total returns for the Accounts would be lower if such expenses were included.




Average Annual Total Returns

For the periods ended December 31, 2015 Past 1 Year Past 5 Years Past 10 YearsSAM Conservative Balanced Portfolio - Class 1 (0.78)% 5.98% 5.53%SAM Conservative Balanced Portfolio - Class 2 (0.93)% 5.71% 5.27%Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes) 0.55% 3.25% 4.51%Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) 0.48% 12.18% 7.35%MSCI EAFE Index NDTR D (reflects no deduction for fees, expenses, or taxes) (0.81)% 3.60% 3.03%SAM Conservative Balanced Blended Index (reflects no deduction for fees, expenses, ortaxes)

0.63% 6.13% 5.57%

Performance of a blended index shows how the Portfolio’s performance compares to a blend of indices with similar investment objectives. Performance of the components of the blended index are also shown. The weightings for SAM Conservative Balanced Blended Index are 60% Barclays U.S. Aggregate Bond Index, 30% Russell 3000® Index, and 10% MSCI EAFE Index NDTR D. The custom or blended index returns reflect the allocation in effect for the time period(s) for which the fund returns are disclosed. Previous weightings or allocations of the custom or blended index are not restated.

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ManagementInvestment Advisor: Principal Management Corporation




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Strategic Asset Management ("SAM") Conservative Growth Portfolio Account - Class 1 and Class 2 SharesPrincipal Variable Contracts Funds, Inc. Summary Prospectus May 1, 2016



Objective: The Portfolio seeks to provide long-term capital appreciation.







SAM Conservative Growth Portfolio - Class 1 $101 $315 $547 $1,213SAM Conservative Growth Portfolio - Class 2 126 393 681 1,500

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The Portfolio:• Generally invests between 0% and 40% of its assets in fixed-income funds, and less than 30% in any one

fixed-income fund (fixed-income funds that generally invest in fixed-income instruments such as government and government-sponsored securities and corporate bonds)

• Generally invests between 60% and 100% of its assets in equity funds that invest in small, medium, and large market capitalization companies, and less than 40% in any one equity fund (equity funds that generally invest in domestic and foreign equity securities) and



Principal RisksThe broad diversification of the Portfolio is designed to cushion severe losses in any one investment sector and moderate overall price volatility. However, the Portfolio is subject to the particular risks of the Underlying Funds in which it invests, and its share prices and performance will fluctuate with the shares prices and performance of the Underlying Funds. The Portfolio operates as a fund of funds and thus bears both its own expenses and, indirectly, its proportionate share of the expenses of the Underlying Funds in which it invests. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Agency or any other government agency. If you sell your shares when their value is less than the price you paid, you will lose money.





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• Small and Medium Market Capitalization Companies. Investments in small and medium-size companies may involve greater risk and price volatility than investments in larger, more mature companies.










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Average Annual Total Returns

For the periods ended December 31, 2015 Past 1 Year Past 5 Years Past 10 YearsSAM Conservative Growth Portfolio - Class 1 (1.09)% 8.25% 5.85%SAM Conservative Growth Portfolio - Class 2 (1.34)% 7.99% 5.59%Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) 0.48% 12.18% 7.35%Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, ortaxes)

0.55% 3.25% 4.51%

MSCI EAFE Index NDTR D (reflects no deduction for fees, expenses, or taxes) (0.81)% 3.60% 3.03%SAM Conservative Growth Blended Index (reflects no deduction for fees, expenses, ortaxes)

0.41% 8.79% 6.19%

Performance of a blended index shows how the Portfolio’s performance compares to a blend of indices with similar investment objectives. Performance of the components of the blended index are also shown. The weightings for SAM Conservative Growth Blended Index are 60% Russell 3000® Index, 20% Barclays U.S. Aggregate Bond Index and 20% MSCI EAFE Index NDTR D. The custom or blended index returns reflect the allocation in effect for the time period(s) for which the fund returns are disclosed. Previous weightings or allocations of the custom or blended index are not restated.

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Management





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Strategic Asset Management ("SAM") Flexible Income Portfolio Account - Class 1 and Class 2 SharesPrincipal Variable Contracts Funds, Inc. Summary Prospectus May 1, 2016



Objective: The Portfolio seeks to provide a high level of total return (consisting of reinvestment of income with some capital appreciation).







SAM Flexible Income Portfolio - Class 1 $80 $249 $433 $966SAM Flexible Income Portfolio - Class 2 105 328 569 1,259

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one fixed-income fund (fixed-income funds that generally invest in fixed income instruments such as high yield securities (or “junk” bonds), real estate securities, mortgage-backed securities (securitized products), government and government-sponsored securities, and corporate bonds)

• Generally invests between 5% and 45% of its assets in equity funds, and less than 30% in any one equity fund (equity funds that generally invest in domestic and foreign equity securities) and


The Portfolio may temporarily exceed these percentage ranges for short periods, and the Sub-Advisor may alter the percentage ranges when it deems appropriate.






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High Yield Securities Risk. High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.






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The bar chart shows changes in the Account's performance from year to year. The table shows how the Account's average annual returns for 1, 5, and 10 years (or, if shorter, the life of the Account) compare with those of one or more broad measures of market performance. Performance figures for the Accounts do not include any separate account expenses, cost of insurance, or other contract-level expenses; total returns for the Accounts would be lower if such expenses were included.




Average Annual Total ReturnsFor the periods ended December 31, 2015 Past 1 Year Past 5 Years Past 10 YearsSAM Flexible Income Portfolio - Class 1 (1.31)% 5.22% 5.27%SAM Flexible Income Portfolio - Class 2 (1.55)% 4.96% 5.01%Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, ortaxes)

0.55% 3.25% 4.51%

Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) 0.48% 12.18% 7.35%MSCI EAFE Index NDTR D (reflects no deduction for fees, expenses, or taxes) (0.81)% 3.60% 3.03%SAM Flexible Income Blended Index (reflects no deduction for fees, expenses, ortaxes)

0.65% 5.17% 5.27%

Performance of a blended index shows how the Portfolio’s performance compares to a blend of indices with similar investment objectives. Performance of the components of the blended index are also shown. The weightings for SAM Flexible Income Blended Index are 75% Barclays U.S. Aggregate Bond Index, 20% Russell 3000® Index, and 5% MSCI EAFE Index NDTR D. The custom or blended index returns reflect the allocation in effect for the time period(s) for which the fund returns are disclosed. Previous weightings or allocations of the custom or blended index are not restated.

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Management





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Strategic Asset Management ("SAM") Strategic Growth Portfolio Account - Class 1 and Class 2 SharesPrincipal Variable Contracts Funds, Inc. Summary Prospectus May 1, 2016



Objective: The Portfolio seeks to provide long-term capital appreciation.







SAM Strategic Growth Portfolio - Class 1 $100 $312 $542 $1,201SAM Strategic Growth Portfolio - Class 2 125 390 676 1,489

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The Portfolio:• Generally invests between 75% and 100% of its assets in equity funds that invest in small, medium, and

large market capitalization companies, and less than 50% in any one equity fund (equity funds that generally invest in domestic and foreign equity securities) and








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• Small and Medium Market Capitalization Companies. Investments in small and medium sized companies may involve greater risk and price volatility than investments in larger, more mature companies.









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Highest return for a quarter during the period of the bar chart above: Q3 ‘09 15.95 %Lowest return for a quarter during the period of the bar chart above: Q4 '08 (22.38)%

Average Annual Total ReturnsFor the periods ended December 31, 2015 Past 1 Year Past 5 Years Past 10 YearsSAM Strategic Growth Portfolio - Class 1 (1.62)% 9.07% 5.91%SAM Strategic Growth Portfolio - Class 2 (1.87)% 8.79% 5.65%Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) 0.48% 12.18% 7.35%MSCI EAFE Index NDTR D (reflects no deduction for fees, expenses, or taxes) (0.81)% 3.60% 3.03%Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, ortaxes)

0.55% 3.25% 4.51%

SAM Strategic Growth Blended Index (reflects no deduction for fees, expenses, ortaxes)

0.24% 9.62% 6.25%

Performance of a blended index shows how the Portfolio’s performance compares to a blend of indices with similar investment objectives. Performance of the components of the blended index are also shown. The weightings for SAM Strategic Growth Blended Index are 70% Russell 3000® Index, 25% MSCI EAFE Index NDTR D and 5% Barclays U.S. Aggregate Bond Index. The custom or blended index returns reflect the allocation in effect for the time period(s) for which the fund returns are disclosed. Previous weightings or allocations of the custom or blended index are not restated.

ManagementInvestment Advisor: Principal Management Corporation



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PAGE 268

SERVICE CENTER P.O. BOX 724208 ATLANTA, GA 31139

Life Insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.

Securities distributed by Farmers Financial Solutions, LLC, 30801 Agoura Road, Building 1, Agoura Hills, CA 91301. Member FINRA & SIPC.

Farmers EssentialLife® Variable Universal Life Policy form 2007-034

36-4436 5-16

25-7660 (10/15) (over) 30165

Farmers® Privacy Notice

This notice describes our privacy policies and procedures in safeguarding information about customers and former customers that obtain financial products or services for personal, family or household purposes. Please note that if state law is more protective of an individual’s privacy than federal privacy law, we will protect information in accordance with state law while also meeting federal requirements.

Information we collect

We collect and maintain personal information to provide you with coverage, products or services and to service your account.

We collect certain information ("nonpublic personal information") about you and the members of your household ("you") from the following sources:

- Information you provide on applications or other forms, such as your social security number, assets, income and property information;

- Information about your transactions with us, our affiliates or others, such as your policy coverage, premiums and payment history;

- Information from your visits to farmers.com or other websites we operate, use of our mobile sites and application, use of our social media sites, and interaction with our online advertisements;

- Information we receive from a consumer reporting agency or insurance support organization, such as motor vehicle records, credit report information and claims history; and

- If you obtain a life, long-term care or disability product, information we receive from you, medical professionals who have provided care to you and insurance support organizations regarding your health.

How we protect your information

We restrict access to personal information about you to individuals, such as our employees and agents, who provide you with our products and services. We require individuals with access to your customer information to protect it and keep it confidential. We maintain physical, electronic, and procedural safeguards that comply with applicable regulatory standards to guard your nonpublic personal information. We do not disclose any nonpublic personal information about you except as described in this notice.

Information we disclose

We may disclose the nonpublic personal information we collect about you, as described above, to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and to other third parties, all as permitted by law.

Many employers, benefit plans or plan sponsors restrict the information that can be shared about their employees or members by companies that provide them with products or services. If you have a relationship with Farmers or one of its affiliates as a result of products or services provided through an employer, benefit plan or plan sponsor, we will follow the privacy restrictions of that organization.

We are permitted to disclose personal health information (1) to process a transaction, for instance, to determine eligibility for coverage, to process claims or to prevent fraud; (2) with your written authorization, and (3) otherwise as permitted by law.

Sharing information with affiliates

The Farmers Insurance Group® of Companies includes affiliates that offer a variety of financial products and services in addition to insurance. Sharing information enables our affiliates to offer you a more complete range of products and services.

We may disclose nonpublic personal information, as described under Information we collect, to our affiliates, which include:

- Financial service providers such as insurance companies and reciprocals, investment companies, underwriters and brokers/dealers; and

- Non-financial service providers, such as management companies, attorneys-in-fact and billing companies.

We are permitted by law to share information with our affiliates about our transactions with you.

In addition, we may share consumer report information, such as information from credit reports and certain application information, received from you and from third parties, such as consumer reporting agencies and insurance support organizations.

Your choice

If you prefer that we not share consumer report information with our affiliates, except as otherwise permitted by law, you may request an Opt-Out Form by calling toll free, 1-800-327-6377, (please have all of your policy numbers available when requesting Opt-Out Forms). A form will be mailed to your attention, please verify that all of your Farmers policy numbers are listed and if not, please add them to the form. Once completed, mail it to the return address printed on the form. We will implement your request within a reasonable time after we receive the form. If you decide not to opt-out or if you have previously submitted a request to opt-out on each of your policies, no further action is required.

Modifications to our privacy policy

We reserve the right to change our privacy practices in the future, which may include sharing nonpublic personal information with nonaffiliated third parties. Before we make any changes, we will provide you with a revised privacy notice and give you the opportunity to opt-out of that type of information sharing.

Website

Our website privacy notices contain additional information about website use. Please review those notices if you transmit personal information to Farmers over the Internet.

Recipients of this notice

While any policyholder may request a copy of this notice, we are providing this notice to the named policyholder residing at the mailing address to which we send your policy information. If there is more than one policyholder on a policy, only the named policyholder will receive this notice. You may receive more than one copy of this notice if you have more than one policy with Farmers. You also may receive notices from affiliates, other than those listed below.

More information about the federal laws

This notice is required by federal law. For more information, please visit Farmers.com.

Signed: Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange, Mid-Century Insurance Company, Farmers Insurance Company, Inc. (A Kansas Corp.), Farmers Insurance Company of Arizona, Farmers Insurance Company of Idaho, Farmers Insurance Company of Oregon, Farmers Insurance Company of Washington, Farmers Insurance of Columbus, Inc., Farmers New Century Insurance Company, Farmers Group, Inc., Farmers Reinsurance Company, Farmers Services Insurance Agency, Farmers Services Corporation, Farmers Texas County Mutual Insurance Company, Farmers Underwriters Association, Farmers Value Added, Inc., Farmers Financial Solutions, LLC member FINRA & SIPC*, FFS Holding, LLC, Farmers Services, LLC; ZFUS Services, LLC; Leschi Life Assurance Company, FIG Holding Company, FIG Leasing Co., Inc.; Fire Underwriters Association, Illinois Farmers Insurance Company, Mid-Century Insurance Company of Texas, Prematic Service Corporation (California), Prematic Service Corporation (Nevada), Texas Farmers Insurance Company, Farmers New World Life Insurance Company, Truck Underwriters Association, Civic Property and Casualty Company, Exact Property and Casualty Company, Neighborhood Spirit Property and Casualty Company and Farmers Life Insurance Company of New York.

The above is a list of the affiliates on whose behalf this privacy notice is being provided. It is not a comprehensive list of all affiliates of the Farmers Insurance Group of Companies.

* You may obtain more information about the Securities Investor Protection Corporation (SIPC) including the SIPC brochure by contacting SIPC at (202) 371-8300 or via the internet at www.sipc.org. For information about FINRA and Broker Check you may call the FINRA Broker Check hotline at (800) 289-9999 or access the FINRA website at www.finra.org.

31-4951 44403 LSR0034 CA (10/13)

Notice of Insurance Information Practices – California You have certain rights under state and federal laws. These rights apply to information we collect about you. This data is for personal, family or household insurance. You will receive, or may already have, a "Farmers® Privacy Notice" (FPN). Your state provides other rights explained in this Notice. These rights are not limited by the FPN. This Notice applies to Proposed Insureds and Insureds. It also applies to Policy Owners and former Policy Owners. Collection of Information In order to underwrite and administer your policy, we must collect information. This may include personal, financial and health data. The amount and type of data may vary based on the coverage applied for. We may collect data about: • Your age, occupation, avocations, physical condition and health history. • Your mode of living and personal traits except as related to your sexual orientation. • HIV or sexually transmitted disease, nicotine or drug use. • Prescription drug, drug treatment, alcohol or mental health disorder history. • Non-medical data, such as motor vehicle and criminal records, may be obtained. Your Agent may collect data to evaluate and update your insurance. You are the most important source of information. At times we must verify or collect extra data. In those instances, we may contact: • Medical professionals who have cared for you or your family. • Employers, business associates, friends and neighbors. • Other insurance companies where you have applied for insurance. • Consumer Reporting Agencies (CRA), Insurance Support Organizations (ISO) such as the MIB, Inc. Data may be collected and transmitted by electronic means. It may also be collected by correspondence, phone or personal contact. A CRA or ISO may be asked to collect data. The CRA or ISO may submit a report to Farmers New World Life Insurance Company (FNWL). You may ask to be interviewed as part of the report. If ordered, the report will be prepared by:

Intellisys, P.O. Box 2340, Lee's Summit, MO 64063 The report may contain: • Data about your age, occupation and health. • Your mode of living, avocations and personal traits, except as related to your sexual orientation. If FNWL obtains a report, we will provide you with a copy. We will tell you who issued the report and how to contact them. You have the right to view your file. You may view the file in person. You may obtain a copy or phone summary upon written request. There may be costs related to your request. These costs will be your responsibility. Information We Disclose In some cases, FNWL or your Agent will disclose personal data to third parties. We may disclose information without your consent. This disclosure, as permitted by law, may include: • Your Agent, in order to service your policy. • Persons who perform professional, business or insurance functions for FNWL. This may include performing marketing

services on our behalf. • Persons assisting FNWL in determining eligibility for coverage or payment. • Persons assisting FNWL in detecting or preventing criminal activity in insurance. This may include fraud, material

misrepresentation or nondisclosure. • Persons who conduct actuarial or scientific research studies, audits or evaluations. • Another insurance company or an ISO to detect/prevent criminal activity/fraud. • A regulatory, law enforcement or other governmental authority. • Affiliates, as permitted by law. The law allows us to share your financial information with affiliates to market products

or services to you. You cannot prevent these disclosures. • Non-affiliated third parties, as permitted by law. This includes sharing data to perform joint marketing services, as

permitted by law. • Reports prepared by a CRA or ISO may be retained by that organization. It may be disclosed to others, as allowed by

law. Access and Correction You can request access to information in your file. This includes any Investigative Consumer Report we have. You may ask to correct, amend or delete data in your file that you believe to be wrong or irrelevant. Access and correction procedures will be sent to you upon request. Obtaining Additional Information We take your rights and our responsibilities very seriously. If you have questions, please write to us at the address given.

Farmers New World Life Insurance Company Mercer Island Life Office: 3003 77th Ave. S.E., Mercer Island, WA 98040-2890 (206) 232-8400 Columbus Life Office: PO Box 182325, Columbus, OH 43218-2325 (614) 764-9975

31-4952 44405 LSR0035 MT (10/13)

Notice of Insurance Information Practices – Montana You have certain rights under state and federal law with respect to the privacy of information we obtain about you when you engage in insurance transactions involving insurance primarily for personal, family or household use. You will receive, or already may have received, a notice entitled “Farmers� Privacy Notice” that explains certain of your rights. Your state gives you additional protections that are explained in this notice. Our information practices, as described in this notice, apply to Proposed Insureds, Insureds, Policyholders and former Policyholders. Collection of Information To properly underwrite and administer your insurance coverage, a certain amount of personal financial and/or health information must be collected. The amount and type of information may vary depending on the amount and type of coverage applied for, but in general, information will be sought in the following categories: • Personal information, such as information about your age, occupation, physical condition, mode of living, avocations

and other personal characteristics except as may be related to your sexual orientation. This may include non-medical information, such as motor vehicle and criminal records.

• Health/Medical information, such as your health history. This may include information related to HIV, sexually transmitted disease, nicotine use, drug use or treatment, prescription drug history, alcoholism or mental health disorder.

You are the most important source of information, but data may also be collected or verified by contacting medical professionals and institutions that have provided care, or who possess information regarding care to you or members of your family proposed for coverage, employers and business associates, friends and neighbors, other insurance companies from which you may have applied for insurance, consumer reporting agencies, insurance support organizations, such as the Medical Information Bureau, Inc., and other organizations. Information may also be collected and transmitted in electronic format, by exchanges of correspondence, by phone or by face-to-face contact. In some cases, an insurance support organization or consumer reporting agency may be requested to collect information and submit an investigative consumer report to Farmers New World Life Insurance Company (FNWL). If you are the subject of an investigative consumer report, you may request to be interviewed in connection with the preparation of the report, and you are entitled to receive a copy of the report. Information We Disclose In some circumstances, FNWL or your Agent may disclose the personal and medical information described above to third parties. Following are the categories of parties or organization to which information may be disclosed, without your authorization, as permitted by law: 1. Persons, including insurance support organizations, other insurers, or non-affiliated parties, who need this information to

perform professional, business or insurance functions for FNWL, including performing marketing and other services on our behalf.

2. Persons, including insurance support organizations, other insurers, or non-affiliated parties, who assist FNWL in determining your eligibility for insurance coverage or payment, or for detecting or preventing criminal activity, fraud, material misrepresentation or material nondisclosure in connection with an insurance transaction.

3. Persons conducting actuarial or scientific research studies, audits or evaluations. 4. An insurance regulatory, law enforcement, or other governmental authority. 5. Affiliates, as permitted by law. 6. Non-affiliated third parties, as permitted by law. This includes sharing information with non-affiliated third parties with

whom we perform joint marketing of financial services and products when permitted by state and federal law. Information obtained from a report prepared by a consumer reporting agency or insurance-support organization may be retained by that organization and may be disclosed to others for which it performs such services, to the extent permitted by state and federal law. You have the right, upon written request to FNWL, to learn of any disclosures we have made of medical record information, including the name, address and affiliation of any person that received or examined medical information during the last three years, the date of such receipt or examination, and to the extent practicable, a description of the information disclosed. Access and Correction Procedures have been established by which you can obtain access to personal information about you appearing in your policy file, including any investigative consumer report we have obtained. Other procedures have been instituted by which you may request correction, amendment or deletion of any information in your file that you believe to be inaccurate or irrelevant. A description of these procedures will be sent to you upon request. Obtaining Additional Information We take your rights and our responsibilities very seriously. If you have further questions, please write to us at the address provided on this form.

Farmers New World Life Insurance Company Mercer Island Life Office: 3003 77th Ave. S.E., Mercer Island, WA 98040-2890 (206) 232-8400 Columbus Life Office: PO Box 182325, Columbus, OH 43218-2325 (614) 764-9975

31-4953 00309 LSR0036 (2/10)

"Do-Not-Call Policy for Customers" Dear Valued Customer: This notice is being provided to you pursuant to Nevada state law. If you don't want to receive telephone calls from a Farmers® agent or other Farmers representative to discuss the purchase of a product or service, you can ask us to place your phone number(s) on Farmers' do-not-call list. We'll document your request - and honor it. Please allow up to 30 days for your request to be honored. You can make your request by writing to the company, telephoning the company, or talking to the Farmers representative who calls you. - Please give the number of each residential and/or wireless telephone you want to add to the do-not-call

list. If you give your name, it will be included in our documentation. - Within 30 days of your request, you should no longer receive solicitation calls from anyone representing

Farmers. Your phone number(s) will remain on Farmers' do-not-call list for five years after your request, unless you give written permission for it to be removed.

- If any of your telephone numbers change and you want to put it on the do-not-call list, you must inform us of the new number. Your new request will be honored for five years from that date.

Farmers agents are independent business people and are thus responsible for training their own employees or representatives on the use of the do-not-call list. Whether they're Farmers agents, agent representatives or Farmers employees, if they conduct telephone solicitations, they'll receive training. Here's just some of what that training includes: - They know Farmers' internal procedures for documenting consumers' requests to be placed on our

do-not-call list. - They may not deny or interfere with your right to be placed on the Farmers do-not-call list. - They may not remove your telephone number from the list, or add your number to the list, without your

authorization first. - The list won't be sold or shared in any way (except with a subsidiary or affiliate company) without your

prior express permission. Telephone sales rules typically allow companies to contact their own customers, even if those customers appear on the national or state do-not-call list. If you're a Farmers customer, please note that we may still contact you for non-solicitation purposes, including billing, claims and other service-related matters. This will help to ensure that we give you the most appropriate coverages and the best possible customer experience. Farmers respects your privacy, and we take pride in our efforts to protect the privacy of information we obtain from you in the normal course of business. We will comply with all applicable telephone sales rules, including those related to your do-not-call rights. You may obtain further information concerning provisions of the law by contacting Farmers or the Nevada Attorney General's office. Our Farmers contact information is listed below: Farmers Insurance Group PO Box 4820 Pocatello, ID 83205-4820 Phone: 1-888-327-6335 http://www.farmers.com

The Nevada Attorney General's contact information is the following: Bureau of Consumer Protection Office of the Nevada Attorney General 555 E. Washington Street, Suite 3900 Las Vegas, Nevada 89101 Phone: (702) 486-3420 e-mail: [email protected]

Farmers New World Life Insurance Company

3003 77th Avenue S.E., Mercer Island, Washington 98040

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