American Skandia's Variable Life Insurance Meeting the Changing Face of American Investors

Business Wire, March 10, 1999

SHELTON, Conn.--(BUSINESS WIRE)--March 10, 1999--

-- Wealth transfer between generations expected to reach $10

trillion by 2020

-- Without proper planning, Uncle Sam will get more than expected

-- American Skandia combines best of life insurance and world-class

investment options

American Skandia has launched variable life insurance -- changing the way investors consider life insurance in their financial plans. The product, AS Trophy, is largely used by investors to accumulate assets tax-deferred, and then to transfer those assets income tax-free to their beneficiaries. By 2020, wealth transfer between generations will reach about $10 trillion, but without proper planning, experts warn the tax bite could be very large. In fact, the estate tax alone could take up to 55% of a decedent's assets.

Combining the tax advantages of life insurance with world-class money management helps AS Trophy solve two problems. First, it enables tax-efficient transfer of wealth, and second, it affords access to well-known investment options.

AS Trophy is a single premium variable life insurance policy designed to minimize the impact of income and estate taxes. The death benefit is always greater than the initial amount invested, and the policy is guaranteed to never lapse, even with catastrophic market conditions. Earnings grow tax-deferred - free of income and capital gains taxes that can limit a portfolio's appreciation. And, because AS Trophy is life insurance, the death benefit can be passed on to beneficiaries income tax-free.

"We are among the innovators to deliver a solution for the changing needs of American investors. As a result, we are rapidly changing the way investors have traditionally viewed and used life insurance," said Patricia Abram, Senior Vice President and National Sales Manager at American Skandia.

"There is an increasing realization," Abram continued, "among American seniors that they must plan carefully to transfer their wealth in the most cost-effective way possible to their heirs. American Skandia, recognizing this essential market need and developing a powerful variable life insurance policy, has created an ideal solution to maximize the amount of money investors can pass-along to their beneficiaries."

Possible strategies for AS Trophy include the following: Investors who intend to pass-on their assets to children, but who also desire access to the assets in the future, may choose to own AS Trophy personally. If estate taxes are a concern, gifts can be used to purchase AS Trophy. Assets invested in a "B Trust" will be protected from tax erosion through AS Trophy. If investors seek to preserve assets for their grandchildren and future generations, they may use AS Trophy as the funding vehicle for a "Generation Skipping Transfer Tax Trust."

American Skandia's fundamental strategy includes forming investment alliances that draw upon the collective experience, market savvy and depth of research of some of the world's finest investment management companies. Financial advisors have entrusted over $19 billion in assets across American Skandia's product lines, which include mutual funds, variable annuities, variable life insurance and qualified retirement plans. Further information on American Skandia is available on the company web site located at www.americanskandia.com.

Variable annuities, variable life insurance and qualified retirement plans are issued by American Skandia Life Assurance Corporation. Mutual funds are issued by American Skandia Advisor Funds. American Skandia Marketing, Incorporated distributes all products. American Skandia is located at One Corporate Drive, Shelton, CT 06484.

AS Trophy(SM) is a modified single premium variable life insurance policy issued by American Skandia Life Assurance Corporation on Form VLI-IND (11/97), VLI-SVIND (11/97) or a state variation thereof. The policy or certain of its investment options may not be available in all states. Call 1-800-SKANDIA for a prospectus containing more complete information on charges, expenses and tax consequences. It should be read carefully before you invest or send money.