<PAGE> 1
AUGUST 14 1997 SUPPLEMENT TO PROSPECTUS DATED AUGUST 14, 1997
INDEX ANNUITY
THE FOLLOWING INFORMATION SUPPLEMENTS THE PROSPECTUSES FOR FUND BD III AND
FUND BD IV FOR VARIABLE ANNUITIES.
The Roll-Up Death Benefit Value, as described on page 14, is restated as
follows:
ROLL-UP DEATH BENEFIT VALUE: On the contract date, the Roll-Up Death
Benefit Value is equal to the purchase payment. On each anniversary of the
contract date, the Roll-Up Death Benefit Value will be recalculated as follows:
(a) The Roll-Up Death Benefit Value on the previous contract date
anniversary; minus
(b) any Partial Surrender Reductions since the previous contract date
anniversary.
THE RESULT, INCREASED BY 7%, IS THE NEW ROLL-UP DEATH BENEFIT VALUE. IF
RECALCULATED ON A DATE OTHER THAN THE ANNIVERSARY, THE DEATH BENEFIT VALUE IS
CALCULATED AS ABOVE, EXCEPT FOR THE 7% INCREASE.
8/97
L-12686
