KILICO VARIABLE SEPARATE ACCOUNT 2
N-30D, 2000-09-13
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                      [ZURICH KEMPER LIFE LETTERHEAD]


VIA EDGAR

September 13, 2000

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

     Re:  Kemper Investors Life Insurance Company ("KILICO")
          and KILICO Variable Separate Account - 2
          ("Variable Separate Account")
          File No. 811-08347

Commissioners:

     Attached for filing, pursuant to Section 30(d) and Rule 30d-2 of the
Investment Company Act of 1940, is the most recent semiannual report of the
Variable Separate Account referenced above for the First Foundation Variable
Life Insurance product ("First Foundation").  The semi-annual report consists
of the most recent semi-annual reports of the mutual fund subaccount options
available through the Variable Separate Account for First Foundation.  Because
the most recent semi-annual reports of the funds have been filed with the SEC
by their respective Investment Managers/Advisers, KILICO is filing herewith
only the cover letter prepared by KILICO and hereby incorporates by reference
the semi-annual reports of the underlying funds set forth below.

     The Variable Separate Account for First Foundation includes the
underlying fund options as follows:

     Evergreen Variable Annuity Trust  (File No. 811-8716)
     Goldman Sachs Variable Insurance Trust  (File No. 811-08361)
     The Universal Institutional Funds, Inc.  (File No. 811-7607)
     Fidelity Variable Insurance Products Fund  (File No. 811-3329)
     Fidelity Variable Insurance Products Fund II  (File No. 811-5511)

     Please call the undersigned at 847-969-3524 if you have any questions or
comments.

Yours truly,

/s/ Juanita M. Thomas

Juanita M. Thomas
Vice President and
 Assistant General Counsel

<PAGE>

                       [ZURICH KEMPER LIFE LETTERHEAD]


September 5, 2000


<First Foundation Policyholder>
<Address>
<City, State, Zip>


Dear <First Foundation Policyholder>:

Zurich Kemper Life is pleased to send you the 2000 Semi-Annual Reports for
the funds underlying your investment choices in the First Foundation variable
life insurance policy.

First Foundation is one of our many products designed to meet your long-term
insurance and financial needs.  Please review these reports for a summary of
the funds' operations and related financial statements.

Zurich Kemper Life is a member of the Zurich Financial Services Group, one of
the world's largest and most respected financial services organizations.  If
you have any questions about this product or others in the Zurich family,
please contact your financial representative or me at (847) 550-7286.

As always, we continue our pledge to assist you in meeting your financial
needs.

Sincerely,

/s/ James E. Hohmann

James E. Hohmann
President, Financial Institutions

First Foundation is distributed by BFP Securities, LLC and issued by Kemper
Investors Life Insurance Company.






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