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PROSPECTUS SUPPLEMENT
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
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SEPARATE ACCOUNT KGC
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1997
***
The first paragraph under "C. RIGHT TO REVOKE ALL OTHER CONTRACTS" on page
20 of the Prospectus is amended to read in its entirety as follows:
In Georgia, Idaho, Indiana, Michigan, Missouri, Nebraska, North Carolina,
Oklahoma, Oregon, South Carolina, Texas, Utah, Washington and West
Virginia, an Owner may revoke the Contract at any time within ten days
(20 days in Idaho) after receipt of the Contract and receive a refund
as described under "B. Right to Revoke Individual Retirement Annuity."
***
Part 1 of APPENDIX B- SURRENDER CHARGES AND THE MARKET VALUE ADJUSTMENT is
deleted and replaced in its entirety by the following:
PART 1: SURRENDER CHARGES
FULL SURRENDER
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Assume a payment of $50,000 is made on the issue date and no additional
payments are made. Assume there are no withdrawals and that the
Withdrawal Without Surrender Charge Amount is equal to 15% of the
Accumulated Value. The table below presents examples of the surrender charge
resulting from a full surrender, based on hypothetical Accumulated Values.
<TABLE>
<CAPTION>
WITHDRAWAL
WITHOUT
HYPOTHETICAL SURRENDER SURRENDER
CONTRACT ACCUMULATED CHARGE CHARGE SURRENDER
YEAR VALUE AMOUNT PERCENTAGE CHARGE
---- ----- ------- ---------- -------
<S> <C> <C> <C> <C>
1 $ 54,000.00 $ 8,100.00 7% $ 3,213.00
2 58,320.00 8,748.00 6% 2,974.32
3 62,985.60 9,447.84 5% 2,500.00
4 68,024.45 10,203.67 4% 2,000.00
5 73,466.40 11,019.96 3% 1,500.00
6 79,343.72 11,901.56 2% 1,000.00
7 85,691.21 12,853.68 0% 0.00
</TABLE>
WITHDRAWALS
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Assume a payment of $50,000 is made on the issue date and no additional
payments are made. Assume that the Withdrawal Without Surrender Charge Amount
is equal to 15% of the current
<PAGE>
Accumulated Value in the Contract. The table below presents examples of the
surrender charge resulting from withdrawals from the Owner's Contract based
on hypothetical Accumulated Values.
<TABLE>
<CAPTION>
WITHDRAWAL
WITHOUT
HYPOTHETICAL SURRENDER SURRENDER
CONTRACT ACCUMULATED CHARGE CHARGE SURRENDER
YEAR VALUE WITHDRAWALS AMOUNT PERCENTAGE CHARGE
---- ----- ----------- ------ ---------- ------
<S> <C> <C> <C> <C> <C>
1 $ 54,000.00 $ 0.00 $ 8,100.00 7% 0.00
2 58,320.00 0.00 8,748.00 6% 0.00
3 62,985.60 0.00 9,447.84 5% 0.00
4 68,024.45 30,000.00 10,203.67 4% 791.85
5 41,066.40 10,000.00 6,159.96 3% 115.20
6 33,551.72 5,000.00 5,032.76 2% 0.00
7 30,835.85 10,000.00 4,625.38 0% 0.00
</TABLE>
***
Supplement Dated August 11, 1997.
