Filed pursuant to Rule 497(e)
Registration No. 333-14233
SUPPLEMENT DATED AUGUST 25, 1997
TO THE PROSPECTUS DATED FEBRUARY 3, 1997
OF
LIFEUSA FUNDS, INC.
The following chart replaces the chart found on page 3 in the section
"Investment Objectives and Policies":
LIFEUSA GLOBAL PORTFOLIO
<TABLE>
<CAPTION>
<S> <C>
Investment Range
(Percent of the Aggressive
Underlying Funds Growth Portfolio's Assets)
--------------------------------------- -----------------------------------
IAI International Fund 10 - 70%
IAI Developing Countries Fund 10 - 70%
IAI Latin America Fund 0 - 70%
IAI Growth Fund 10 - 50%
</TABLE>
The following language replaces the disclosure found on page 14
in the section "Dividends, Distribution and Tax Status":
Principal Preservation Portfolio will declare and pay monthly dividends
from net investment income and will distribute annually net realized capital
gains, if any.
