SUPPLEMENT DATED AUGUST 3, 1995
TO PROSPECTUS DATED MAY 1, 1995
FOR GRANDMASTER II(TM) FLEXIBLE PAYMENT VARIABLE ANNUITY
ISSUED BY NATIONAL INTEGRITY LIFE INSURANCE COMPANY
THIS SUPPLEMENT MODIFIES THE PROSPECTUS AND SHOULD BE
READ AND RETAINED WITH THE PROSPECTUS.
The first three paragraphs under DEATH BENEFITS AND SIMILAR BENEFIT
DISTRIBUTIONS beginning on page 19 is REPLACED by the following:
A death benefit is available to a beneficiary if a participant dies prior to his
or her retirement date. The amount of the death benefit is the greatest of (1)
the participant's annuity value, (2) the participant's annuity value at the
beginning of the seventh participation year, plus subsequent contributions and
minus subsequent withdrawals, inclusive of any market value adjustments made,
and (3) the minimum death benefit, which equals total contributions less the sum
of withdrawals, inclusive of any market value adjustments made.
For certificates having a Participation Date on or after January 1, 1995, we
will offer an administrative program which has the effect of locking in the
increase IF ANY in your annuity value on each contract anniversary for purposes
of calculation of the minimum death benefit. Under this program you will have
the option to "step up" your minimum death benefit to your annuity value on each
contract anniversary if your annuity value on such contract anniversary is
greater than the minimum death benefit described in (3) above (TOTAL
CONTRIBUTIONS) and is greater than your annuity value on any previous contract
anniversary. This will be effected as a tax-free exchange into an identical
contract, but without new surrender charges. Once you elect this option, "total
contributions" for purposes of calculation of the minimum death benefit
described in (3) above will equal your highest annuity value (WHICH IS GREATER
THAN TOTAL CONTRIBUTIONS LESS WITHDRAWALS) as of any contract anniversary, less
withdrawals made subsequent to such contract anniversary, inclusive of any
market value adjustments.
IN SOME STATES it will not be necessary to elect this option. In those states,
your contract will provide that the amount of the death benefit is automatically
the greatest of (1), (2) or (3) above, or your highest annuity value at the
beginning of any participation year, plus subsequent contributions and minus
subsequent withdrawals, inclusive of any market value adjustments made. NOT
AVAILABLE IN ALL STATES.
