[Zurich Kemper Life Letterhead]
Via EDGAR
December 14, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: KILICO Variable Annuity Separate Account of
Kemper Investors Life Insurance Company
SEC File Nos. 33-43501 and 811-3199
Commissioners:
Enclosed for filing pursuant to the requirements of Rule 497(e) under the
Securities Act of 1933 is a prospectus supplement dated December 14, 1999 to
the prospectus dated May 1, 1999.
Please call the undersigned at 847-969-3524 if there are any questions.
Yours truly,
/s/ Juanita M. Thomas
Juanita M. Thomas
Assistant General Counsel
Enclosure
JMT/sw
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SUPPLEMENT DATED DECEMBER 14, 1999
TO PROSPECTUS DATED MAY 1, 1999 FOR
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INDIVIDUAL AND GROUP VARIABLE,
FIXED AND MARKET
VALUE ADJUSTED DEFERRED ANNUITY
CONTRACTS
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KEMPER PASSPORT
Issued By
KILICO VARIABLE ANNUITY SEPARATE ACCOUNT
and
KEMPER INVESTORS LIFE INSURANCE COMPANY
This Supplement corrects certain information contained in your Prospectus
concerning withdrawals that are permitted without Withdrawal Charge. Please
read it carefully and keep it with your Prospectus for future reference.
The section entitled "G. Withdrawal During Accumulation Period.", appearing
on pages 21 and 22 of the Prospectus, is hereby deleted and replaced with the
following:
"The Owner may redeem some or all of the Contract Value minus
previous withdrawals, plus or minus any applicable Market Value
Adjustment and minus any Withdrawal Charge. Withdrawals will
have tax consequences. (See "Federal Tax Matters.") A withdrawal
of the entire Contract Value is called a surrender.
In any Contract Year, an Owner may withdraw up to 15% of the
Contract Value without Withdrawal Charge. If the Owner withdraws
a larger amount, the excess amount withdrawn is subject to a
Withdrawal Charge.
See "Contract Charges and Expenses - Withdrawal Charge" for a
discussion of charges applicable to partial withdrawals and
surrenders.
If Contract Value is allocated to more than one investment
option, an Owner must specify the source of the partial
withdrawal. If an Owner does not specify the source, we
redeem Accumulation Units on a pro rata basis from all
investment options in which the Owner has an interest.
Accumulation Units attributable to the earliest Contribution
Years are redeemed first.
S-1
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Partial withdrawals are subject to the following:
* A Purchase Payment must be made 30 days before a
partial withdrawal of such Purchase Payment is made.
* The minimum withdrawal is $1,000 (before any Market
Value Adjustment), or the Owner's entire interest in
the investment option(s) from which withdrawal is
requested.
* The Owner must leave at least $1,000 in each investment
option from which the withdrawal is requested, unless
the total value is withdrawn and the minimum Contract
Value must be at least $2,500.
Election to withdraw shall be made in writing to Kemper Investors
Life Insurance Company, Customer Service, 1 Kemper Drive, Long
Grove, Illinois 60049 and should be accompanied by the Contract
if surrender is requested. Withdrawal requests are processed
only on days when the New York Stock Exchange is open. The
Withdrawal Value attributable to the Subaccounts is determined
on the basis of the Accumulation Unit values, as calculated
after we receive the request. The Withdrawal Value attributable
to the Subaccounts is paid within 7 days after we receive the
request. However, we may suspend withdrawals or delay payment:
* during any period when the New York Stock Exchange is
closed
* when trading in a Portfolio is restricted or the SEC
determines that an emergency exists
* as the SEC by order may permit.
For withdrawal requests from the MVA Option, we may defer any
payment for up to six months, as permitted by state law.
During the deferral period, we will continue to credit interest
at the current Guaranteed Interest Rate for the same Guarantee
Period."
The portion of the section entitled "C. WITHDRAWAL CHARGE.", appearing on
page 26 of the Prospectus, is hereby deleted and replaced with the following:
"We do not deduct a sales charge from any Purchase Payment.
However, a Withdrawal Charge covers Contract sales expenses,
including commissions and other promotion and acquisition
expenses.
S-2
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Each Contract Year, an Owner may withdraw up to 15% of the
Contract Value without Withdrawal Charge. If the Owner
withdraws a larger amount, the excess amount withdrawn is
subject to a Withdrawal Charge."
S-3
