SUPPLEMENT DATED MARCH 1, 1997 TO
PROSPECTUS DATED MAY 1, 1996 FOR
PERIODIC PAYMENT VARIABLE ANNUITY CONTRACTS
KEMPER ADVANTAGE III
ISSUED BY
KEMPER INVESTORS LIFE INSURANCE COMPANY
Kemper Investors Life Insurance Company ("KILICO") has revised Contracts that
are issued as Individual Retirement Annuities (IRAs), Simplified Employee
Pensions (SEPs) or Non-Qualified Plan Contracts (Non-Qualified). Contracts
issued as IRAs, SEPs or Non-Qualified are changed to provide for modification
of the Dollar Cost Averaging feature to permit dollar cost averaging out of the
General Account. This change is described below with reference to that part of
the Prospectus modified by this Supplement.
Dollar Cost Averaging
The following is added after the first sentence of the first paragraph under
"Dollar Cost Averaging" appearing on page 27 of the Prospectus:
"A Contract Owner may predesignate a portion of the Contract Value under
the Contract attributable to the General Account to be automatically
transferred on a monthly or quarterly basis for a specified duration of at
least one year to one or more of the Subaccounts during the Accumulation
Period."
ADIIIB
