ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE ANNUITY ACCOUNT TWO
________________________________________________________________
SUPPLEMENT TO VISTA CAPITAL ADVANTAGE PROSPECTUS
DATED DECEMBER 27, 1996
The ANNUAL TRUST EXPENSE table under the section entitled "Fee Tables" on
page 10 is replaced with the following:
ANNUAL TRUST EXPENSES
(as a percentage of average net assets for the Trust's
fiscal year ended August 31, 1996):
<TABLE>
<CAPTION>
ADVISORY FEE ADMINISTRATION FEE TOTAL ANNUAL
(AFTER WAIVER OF FEE) (AFTER WAIVER OF FEE) OTHER EXPENSES EXPENSES
--------------------- --------------------- -------------- ------------
<S> <C> <C> <C> <C>
International Equity......... 0.00% 0.00% 1.10% 1.10%
Capital Growth............... 0.00% 0.00% .90% .90%
Growth and Income............ 0.00% 0.00% .90% .90%
Asset Allocation............. 0.00% 0.00% .85% .85%
U.S. Government Income....... 0.00% 0.00% .80% .80%
Money Market................. 0.00% 0.00% .55% .55%
</TABLE>
- ---------------
*Reflects current waiver arrangements to maintain Total Annual Expenses at
the levels indicated above. Absent such waivers, the Advisory Fee for the
International Equity, Capital Growth, Growth and Income, Asset Allocation,
U.S. Government Income and Money Market Portfolios would be 0.80%, 0.60%,
0.60%, 0.55%, 0.50% and 0.25%, respectively, and Total Annual Expenses for
the International Equity, Capital Growth, Growth and Income, Asset
Allocation, U.S. Government Income and Money Market Portfolios would be
4.22%, 1.97%, 1.98%, 2.33%, 1.79% and 1.74%, respectively.
THE ABOVE EXPENSES FOR THE UNDERLYING FUNDS WERE PROVIDED BY THE
TRUST. NEITHER THE COMPANY NOR THE SEPARATE ACCOUNT HAVE
INDEPENDENTLY VERIFIED THE ACCURACY OF SUCH INFORMATION.
Date: December 30, 1996
Please keep this Supplement with your prospectus
