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AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VL-R
CORPORATE AMERICA - VARIABLE
FLEXIBLE PREMIUM
VARIABLE LIFE INSURANCE POLICY
SUPPLEMENT DATED DECEMBER 1, 2000 TO
PROSPECTUS DATED OCTOBER 2, 2000
AS SUPPLEMENTED NOVEMBER 7, 2000
Effective November 29, 2000 American General Life Insurance Company ("AGL")
is amending the prospectus for the purposes of reflecting that the Ayco Large
Cap Growth Fund I is available as an investment option under the Policy, as well
as other minor changes in the mutual fund annual expenses.
AYCO LARGE CAP GROWTH FUND I
1. On Page 3 of the prospectus, the paragraph titled "INVESTMENT OPTION
CURRENTLY NOT AVAILABLE", immediately after "Basic Questions You May Have" is
deleted in its entirety.
2. On Page 13 of the prospectus, Footnote 2 is deleted in its entirety and
replaced with the following footnote:
Fees and charges for Ayco Series Trust are for fiscal year 2000 and are
the fees and charges that the Trust anticipates it will charge.
3. On page 30 of the prospectus, the 2nd paragraph under "SEPARATE
ACCOUNT VL-R" is deleted in its entirety and replaced with the following
paragraph:
For record keeping and financial reporting purposes, Separate Account VL-R
is divided into 65 separate "divisions," 41 of which correspond to the 41
variable investment options available under the Policy. The remaining 24
divisions, and some of these 41 divisions, represent investment options
available under other variable life policies we offer. We hold the Mutual Fund
shares in which we invest your accumulation value for an investment option in
the division that corresponds to that investment option.
4. On page 51 of the prospectus, under "FINANCIAL STATEMENTS", the last
sentence of this paragraph is deleted in its entirety and replaced with the
following sentence:
"No financial statements of Separate Account VL-R are included because, at
the date of this prospectus, none of the 41 divisions of Separate Account
VL-R were available under the Corporate America - Variable policies."
MUTUAL FUNDS' ANNUAL EXPENSES
On page 10 of the prospectus, the section titled "WHAT CHARGES AND EXPENSES WILL
THE MUTUAL FUNDS DEDUCT FORM AMOUNTS I INVEST THROUGH MY POLICY?" is deleted in
its entirety and replaced with the following paragraph:
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WHAT CHARGES AND EXPENSES WILL THE MUTUAL FUNDS DEDUCT FROM AMOUNTS I INVEST
THROUGH MY POLICY?
Each Mutual Fund pays its investment management fees and other operating
expenses. Because they reduce the investment return of a Fund, these fees and
expenses also will reduce indirectly the return you will earn on any
accumulation value that you have invested in that Fund. The charges and expenses
that we show in the following table are for each Fund's most recent fiscal year
ended, unless we indicate otherwise:
<TABLE>
<CAPTION>
THE MUTUAL FUNDS' ANNUAL EXPENSES/1/ (as a percentage of average net assets)
FUND OTHER FUND TOTAL FUND
MANAGEMENT OPERATING OPERATING
FEES (AFTER EXPENSES (AFTER EXPENSES (AFTER
EXPENSE 12b-1 EXPENSE EXPENSE
NAME OF FUND REIMBURSEMENT) FEES REIMBURSEMENT) REIMBURSEMENT)
-------------------------------------- -------------- ------ ---------------- ----------------
<S> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:/1/
AIM V.I. International Equity Fund 0.75% 0.22% 0.97%
AIM V.I. Value Fund 0.61% 0.15% 0.76%
AMERICAN CENTURY VARIABLE
PORTFOLIOS, INC.:/1/
VP Value Fund 1.00% 0.00% 1.00%
AYCO SERIES TRUST:/2/
Ayco Large Cap Growth Fund I 0.80% 0.20% 1.00%
DREYFUS INVESTMENT PORTFOLIOS:/1/
MidCap Stock Portfolio/3/ 0.75% 0.22% 0.97%
DREYFUS VARIABLE INVESTMENT
FUND:/1/
Quality Bond Portfolio 0.65% 0.09% 0.74%
Small Cap Portfolio 0.75% 0.03% 0.78%
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND:/1,4/
VIP Equity-Income Portfolio 0.48% 0.25% 0.10% 0.83%
VIP Growth Portfolio 0.58% 0.25% 0.10% 0.93%
VIP Asset Manager Portfolio 0.53% 0.25% 0.11% 0.89%
VIP Contrafund Portfolio 0.58% 0.25% 0.12% 0.95%
</TABLE>
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<TABLE>
<CAPTION>
FUND OTHER FUND TOTAL FUND
MANAGEMENT OPERATING OPERATING
FEES (AFTER EXPENSES (AFTER EXPENSES (AFTER
EXPENSE 12b-1 EXPENSE EXPENSE
NAME OF FUND REIMBURSEMENT) FEES REIMBURSEMENT) REIMBURSEMENT)
-------------------------------------- -------------- ------ ---------------- ----------------
<S> <C> <C> <C> <C>
JANUS ASPEN SERIES - SERVICE
SHARES:/5/
International Growth Portfolio 0.65% 0.25% 0.11% 1.01%
Worldwide Growth Portfolio 0.65% 0.25% 0.05% 0.95%
Aggressive Growth Portfolio 0.65% 0.25% 0.02% 0.92%
J. P. MORGAN SERIES TRUST II:/1/
J. P. Morgan Small Company
Portfolio/3/ 0.60% 0.55% 1.15%
MFS VARIABLE INSURANCE TRUST:/1/
MFS Emerging Growth Series /3/ 0.74% 0.09% 0.83%
MFS Research Series /3/ 0.74% 0.11% 0.85%
MFS Capital Opportunities Series/3/ 0.74% 0.16% 0.90%
MFS New Discovery Series/3/ 0.88% 0.17% 1.05%
NEUBERGER BERMAN ADVISERS
MANAGEMENT TRUST:/1/
Mid-Cap Growth Portfolio/3/ 0.85% 0.15% 1.00%
NORTH AMERICAN FUNDS VARIABLE
PRODUCT SERIES I:/1/
International Equities Fund 0.35% 0.08% 0.43%
MidCap Index Fund 0.31% 0.07% 0.38%
Money Market Fund 0.50% 0.07% 0.57%
Nasdaq-100 Index Fund /6/ 0.40% 0.10% 0.50%
Stock Index Fund 0.26% 0.06% 0.32%
Small Cap Index Fund 0.35% 0.04% 0.39%
Science & Technology Fund 0.90% 0.05% 0.95%
PIMCO VARIABLE INSURANCE
TRUST:/1,7/
PIMCO Short-Term Bond Portfolio/3/ 0.25% 0.35% 0.60%
PIMCO Real Return Bond Portfolio/3/ 0.25% 0.40% 0.65%
</TABLE>
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<TABLE>
<CAPTION>
FUND OTHER FUND TOTAL FUND
MANAGEMENT OPERATING OPERATING
FEES (AFTER EXPENSES (AFTER EXPENSES (AFTER
EXPENSE 12b-1 EXPENSE EXPENSE
NAME OF FUND REIMBURSEMENT) FEES REIMBURSEMENT) REIMBURSEMENT)
-------------------------------------- -------------- ------ ---------------- ----------------
<S> <C> <C> <C> <C>
PIMCO Total Return Bond
Portfolio/3/ 0.25% 0.40% 0.65%
PUTNAM VARIABLE TRUST - CLASS IB
SHARES:/8/
Putnam VT Diversified Income Fund 0.68% 0.15% 0.10% 0.93%
Putnam VT Growth and Income Fund 0.46% 0.15% 0.04% 0.65%
Putnam VT International Growth
and Income Fund 0.80% 0.15% 0.18% 1.13%
SAFECO RESOURCE SERIES TRUST:/1/
Equity Portfolio 0.74% 0.02% 0.76%
Growth Opportunities Portfolio 0.74% 0.04% 0.78%
THE UNIVERSAL INSTITUTIONAL FUNDS,
INC.:/1/
Equity Growth Portfolio/3/ 0.29% 0.56% 0.85%
High Yield Portfolio/3/ 0.19% 0.61% 0.80%
VANGUARD VARIABLE INSURANCE
FUND:
High Yield Bond Portfolio 0.26% 0.03% 0.29%
REIT Index Portfolio 0.15% 0.12% 0.27%
VAN KAMPEN LIFE INVESTMENT
TRUST:/1/
Strategic Stock Portfolio/3/ 0.24% 0.41% 0.65%
WARBURG PINCUS TRUST:/1/
Small Company Growth Portfolio 0.90% 0.24% 1.14%
</TABLE>
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/1/Most of the Mutual Funds' advisers or administrators have entered into
arrangements under which they pay certain amounts to AGL. The fees do not have
a direct relationship to the Mutual Funds' Annual Expenses, and do not increase
the amount of charges you pay under your Policy. (See "Certain arrangements"
under "More About Policy Charges" and "Service Agreements").
/2/Fees and charges for Ayco Series Trust are for fiscal year 2000 and are the
fees and charges that the Trust anticipates it will charge.
/3/For the Funds indicated, management fees and other expenses as shown for
fiscal year 1999 would have been the percentages shown below without certain
voluntary expense reimbursements from the investment adviser. Current and
future fees and expenses may vary from the fiscal year 1999 fees and expenses.
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<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL
FEES EXPENSES ANNUAL EXPENSES
----------- --------- ----------------
<S> <C> <C> <C>
DREYFUS INVESTMENT PORTFOLIOS
MidCap Stock Portfolio 0.75% 0.71% 1.46%
J.P. MORGAN SERIES TRUST II
J.P. Morgan Small Company Portfolio 0.60% 1.97% 2.57%
MFS VARIABLE INSURANCE TRUST
MFS Emerging Growth Series 0.75% 0.09% 0.84%
MFS Research Series 0.75% 0.11% 0.86%
MFS Capital Opportunities Series 0.75% 0.27% 1.02%
MFS New Discovery Series 0.90% 1.59% 2.49%
NEUBERGER BERMAN ADVISERS MANAGEMENT
TRUST
Mid-Cap Growth Portfolio 0.85% 0.23% 1.08%
PIMCO VARIABLE INSURANCE TRUST
PIMCO Short-Term Bond Portfolio 0.25% 1.17% 1.42%
PIMCO Real Return Bond Portfolio 0.25% 0.67% 0.92%
PIMCO Total Return Bond Portfolio 0.25% 0.44% 0.69%
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
Equity Growth Portfolio 0.55% 0.56% 1.11%
High Yield Portfolio 0.50% 0.61% 1.11%
VAN KAMPEN LIFE INVESTMENT TRUST
Strategic Stock Portfolio 0.50% 0.41% 0.91%
</TABLE>
No other Funds received any such reimbursements.
/4/The prospectuses for Fidelity Variable Insurance Products Fund under "Fund
Distribution" discuss this 12b-1 fee.
/5/Expenses are based on the estimated expenses that the new Service Shares
class of each Portfolio expects to incur in its initial fiscal year. The
prospectus for Janus Aspen Series under "Fees and Expenses" discusses the 12b-1
fee.
/6/Fees and charges for the Nasdaq-100 Index Fund are estimated for the current
fiscal year.
/7/AGL has entered into a service agreement with PIMCO Variable Insurance Trust
under which a portion of the Other Fund Operating Expenses is paid to AGL to
reimburse AGL for services provided to the PIMCO Variable Insurance Trust.
/8/The prospectus for Putnam Variable Trust - Class IB Shares under
"Distribution Plan" discusses this 12b-1 fee.
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