VIA EDGAR
March 5, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Kemper Investors Life Insurance Company ("KILICO") and
KILICO Variable Annuity Separate Account
("Variable Annuity Separate Account")
(File No. 811-3199)
Commissioners:
Attached for filing, pursuant to Section 30(d) and Rule 30d-2 of the
Investment Company Act of 1940 ("1940 Act"), is the most recent annual
report of the Variable Annuity Separate Account referenced above. The
annual report consists of cover letters from KILICO for each of the variable
annuity products offered through the Variable Annuity Separate Account plus
the most recent individual annual reports of the mutual fund subaccount
options available through the Variable Annuity Separate Account. Because
the most recent 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 individual annual reports of the underlying funds set forth below.
The Variable Annuity Separate Account includes the following underlying
fund options as follows:
Kemper Investors Fund (File No. 811-5002)
Fidelity Variable Insurance Products Fund (File No. 811-03329)
Fidelity Variable Insurance Products Fund II (File No. 811-05511)
Janus Aspen Series (File No. 811-7736)
Lexington Emerging Markets Fund (File No. 811-8250)
Lexington Natural Resources Trust (File No. 811-05710)
Please call the undersigned at 847-550-7740 if you have any questions
or comments.
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Securities and Exchange Commission
March 5, 1998
Page 2
Yours truly,
/s/ Kurt W. Bernlohr
Kurt W. Bernlohr
Senior Counsel
KWB/sw
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February 27, 1998
Dear Kemper Investors Life Policyowner:
Zurich Kemper Life is pleased to send you the 1997 Annual Report for the
funds underlying your investment choices in the Kemper Advantage III
variable annuity.
The Kemper Advantage III is one of our many products designed to meet your
long-term insurance and financial needs. Please review this report for a
summary of operations and related financial statements.
Zurich Kemper Life is part of the Zurich Group, one of the world's largest
and most respected financial services organizations. If you have any
questions on this product or others in the Zurich family, please contact
your financial representative or our Client Services Team at 1-888-477-9700.
Or, check out our website at www.zurichkemper.com.
As always, we continue our pledge to assist you in meeting your financial
needs.
Sincerely,
/s/ John B. Scott
John B. Scott
President
Chief Executive Officer
Securities distributed through Investors Brokerage Services, Inc. Kemper
Advantage III is underwritten by Kemper Investors Life Insurance Company.
<PAGE>
February 27, 1998
Dear Kemper Investors Life Policyowner:
Zurich Kemper Life is pleased to send you the 1997 Annual Report for the
funds underlying your investment choices in the Kemper Passport variable
and market value-adjusted annuity.
The Kemper Passport is one of our many products designed to meet your
long-term insurance and financial needs. Please review this report for a
summary of operations and related financial statements.
Zurich Kemper Life is part of the Zurich Group, one of the world's largest
and most respected financial services organizations. If you have any
questions on this product or others in the Zurich family, please contact
your financial representative or our Client Services Team at 1-800-621-5001.
Or, check out our website at www.zurichkemper.com.
As always, we continue our pledge to assist you in meeting your financial
needs.
Sincerely,
/s/ John B. Scott
John B. Scott
President
Chief Executive Officer
Securities distributed through Investors Brokerage Services, Inc. Kemper
Passport is underwritten by Kemper Investors Life Insurance Company.
