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ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
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SUPPLEMENT TO THE POLARIS II PROSPECTUS DATED APRIL 1, 1999
Anchor National no longer offers the plus and max options as part of the Income
Protector feature for new contracts. Your contract includes the base Income
Protector feature as well as the plus and max options if we: (1) received your
application and Request for Transfer/1035 Exchange by March 31, 1999; (2)
received the transferred funds by May 31, 1999; and (3) issued your contract in
a state in which the Income Protector feature was available on March 31, 1999.
The plus and max options remain available to you until you switch to the Income
Phase of your contract. You may elect these options at any time.
The income benefit base for the plus or max option accumulates at specified
annual growth rates from the date the option you elect becomes effective. Once
you elect an option, we guarantee the then current growth rate for the life of
your contract. The current growth rates are as follows:
- --------------------------------------- ----------------------------------------
Option Current Growth Rate*
- --------------------------------------- ----------------------------------------
The Income Protector Plus 3.25%
- --------------------------------------- ----------------------------------------
The Income Protector Max 6.50%
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* Growth rates are subject to change in the future.
Generally, to elect the plus and max options you must complete the Income
Protector election form available through our Annuity Service Center. Once
effective, the option applies for the life of your contract. Your income benefit
base will begin accumulating at the applicable growth rate on the contract
anniversary following our receipt of your election form. In order to take income
using the Income Protector feature, you may not begin the Income Phase of your
contract until:
- Your 7th contract anniversary, if you annuitize using the base Income
Protector; or
- If you elect the plus or max option, seven years following the later
of (a) the date the option becomes effective or (b) your latest
step-up date.
The base Income Protector is a standard feature of your contract at no extra
charge. If you elect the Income Protector plus or max option, we charge a fee as
follows:
- --------------------------------------- ----------------------------------------
Option Fee as a % of Income Benefit Base
- --------------------------------------- ----------------------------------------
The Income Protector Plus .15%
- --------------------------------------- ----------------------------------------
The Income Protector Max .30%
- --------------------------------------- ----------------------------------------
For more information on the plus and max options, please see the prospectus you
received at the time you purchased your contract or contact our Annuity Service
Center at (800) 445-7862 or your financial representative.
Date: June 4, 1999
Please keep this Supplement with your Prospectus
