[Zurich Kemper Life Letterhead]
Via EDGAR
February 9, 2000
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. 2-72671 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 February 9, 2000 to
the prospectus dated May 1, 1999.
Please call the undersigned at 847-969-3523 if there are any questions.
Yours truly,
/s/ Allen R. Reed
Allen R. Reed
Assistant General Counsel
Enclosure
ARR/sb
<PAGE>
SUPPLEMENT DATED FEBRUARY 9, 2000
TO PROSPECTUS DATED MAY 1, 1999 FOR
KEMPER INVESTORS LIFE INSURANCE COMPANY
- -----------------------------------------------------------------------------
PERIODIC PAYMENT
VARIABLE ANNUITY CONTRACTS
- -----------------------------------------------------------------------------
KEMPER ADVANTAGE III
Issued By
KILICO VARIABLE ANNUITY SEPARATE ACCOUNT
of
KEMPER INVESTORS LIFE INSURANCE COMPANY
This Supplement amends certain information contained in your Prospectus
concerning death benefit for Contracts issued as Individual Retirement
Annuities, Simplified Employee Pensions or Non-Qualified Contracts between
March 1, 1997 and March 31, 2000. Please read it carefully and keep it with
your Prospectus for future reference.
The third paragraph under the section entitled "6. Death Benefit.", appearing
on page 23 of the Prospectus, is hereby deleted and replaced with the
following:
"For Contracts issued between March 1, 1997 and March 31, 2000 as
Individual Retirement Annuities, Simplified Employee Pensions or
Non-Qualified Contracts, the death benefit will be determined as
follows. If death occurs prior to the deceased's attainment of
age 90, the death benefit will be the greater of:
* the total amount of Purchase Payments minus Debt minus
the aggregate amount of all previous partial withdrawals,
* the Contract Value minus Debt, or
* the greatest Anniversary Value immediately preceding
the date of death, minus Debt. The greatest Anniversary
Value is equal to the highest Anniversary Value determined
from the following. An Anniversary Value is calculated
for each contract anniversary before the deceased's 81st
birthday. The Anniversary Value for a particular Contract
Anniversary is the Contract Value on that anniversary, plus
the dollar amount of any Purchase Payments made since that
anniversary minus any withdrawals since that anniversary.
If death occurs on or after the deceased's 90th birthday,
the death benefit will be the Contract Value minus Debt
and minus previous withdrawals."
