[ZURICH KEMPER LIFE LETTERHEAD]
Via EDGAR
June 25, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: KILICO Variable Annuity Separate account of
Kemper Investors Life Insurance Company
File No.: 2-72671
Commissioners:
Enclosed for filing pursuant to the requirements of 497(e) under the
Securities Act of 1933 is a prospectus supplement dated June 24, 1998 to the
prospectus dated May 1, 1998. The supplement provides for a substitution of
shares of the Kemper Money Market Portfolio for shares of the Short-Term
Bond Portfolio of the Janus Aspen Series.
Please call the undersigned at 847-969-3523 if you have any questions.
Sincerely,
/s/ Allen R. Reed
Allen R. Reed
Assistant General Counsel
Enclosure
ARR/sw
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KEMPER INVESTORS LIFE INSURANCE COMPANY
KILICO VARIABLE ANNUITY SEPARATE ACCOUNT
SUPPLEMENT DATED JUNE 24, 1998
TO
PROSPECTUS DATED MAY 1, 1998
On or about June 10, 1998, Kemper Investors Life Insurance Company (KILICO)
and several other applicants filed an application with the Securities and
Exchange Commission seeking an order approving the substitution of shares of
the Kemper Money Market Portfolio for shares of the Short-Term Bond Portfolio
of Janus Aspen Series ("Janus Aspen Short-Term Bond Portfolio") currently
held by an investment subaccount of KILICO Variable Annuity Separate Account
(the "Account"). To the extent required by law, approvals of such
substitutions will also be obtained from the state insurance regulators in
certain jurisdictions. The effect of such a share substitution would be to
replace the Short-Term Bond Portfolio with the Kemper Money Market Portfolio
as an investment option under the Contracts described in your May 1, 1998
prospectus.
The investment objective of the Kemper Money Market Portfolio is to seek
maximum current income to the extent consistent with stability of principal
from a portfolio of high quality money market instruments. Contract Owners
and prospective purchasers should carefully read the prospectus for this
fund. This prospectus was attached to the May 1, 1998 prospectus for the
Contracts which was previously sent to you.
From the date of this supplement to the date of the proposed substitution,
each Contract owner will be permitted to make a transfer of all amounts
under a Contract invested in the investment subaccount corresponding to
Janus Aspen Short-Term Bond Portfolio on the date of the supplement to
another subaccount. Also, KILICO will not exercise any rights reserved
under any Contract to impose additional restrictions on transfers until at
least thirty (30) days after the proposed substitution.
If the proposed substitution is carried out, each Contract Owner affected by
the substitutions will be sent a written notice informing them that the
substitution was carried out.
This supplement should be retained with the Prospectus for future reference.
