<PAGE>
Rule 497(e)
File No. 33-90684
AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT II
PROSPECTUS SUPPLEMENT
December 11, 1997
Supplement to the Flexible Premium Variable Universal Life
Insurance Policies Prospectus dated May 1, 1997.
This supplement provides information regarding changes in the
investment options available under the Policy. The following
portfolios are no longer available to Owners as investment
options for future premium allocation:
The Growth Investors Portfolio and Conservative Investors
Portfolio of the ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.;
the Worldwide Balanced Fund of the VAN ECK WORLDWIDE INSURANCE
TRUST; the VIP Overseas Portfolio of the FIDELITY INVESTMENTS
VARIABLE INSURANCE PRODUCTS FUND II; and the Short- Term
Retirement Portfolio, Medium-Term Retirement Portfolio and
Long-Term Retirement Portfolio of the TOMORROW FUNDS
RETIREMENT TRUST.
At any time, the Owner may transfer remaining Policy Account
Value from the above portfolios to any other investment
options available under the Policy.
This supplement also provides information regarding the
following investment options that are now available to Owners:
Capital Appreciation Fund and International Equity Fund of the
AIM VARIABLE INSURANCE FUNDS, INC. ("AIM Funds"); the Global
Bond Portfolio and Premier Growth Portfolio of the ALLIANCE
VARIABLE PRODUCTS SERIES FUND, INC. ("Alliance Fund"); the VIP
II Contrafund Portfolio of the FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND II ("Fidelity Fund II"); the
Worldwide Emerging Markets Fund of the VAN ECK WORLDWIDE
INSURANCE TRUST ("Van Eck Funds").<PAGE>
This supplement adds the following information to the
Prospectus under the headings indicated:
- PERFORMANCE INFORMATION
AVERAGE ANNUAL TOTAL RETURNS*
As of December 31, 1996
<TABLE>
<CAPTION> Since
Portfolio Inception Date 1 Year 3 Years 5 Years Inception
<S> <C> <C> <C> <C> <C>
AIM
Capital Appreciation 05/05/93 17.56% 17.81% N/A 20.10%
International Equity 05/05/93 20.05% 11.46% N/A 14.60%
ALLIANCE
Global Bond 07/15/91 6.21% 7.91% 7.93% 9.29%
Premier Growth 06/26/92 22.70% 19.92% N/A 19.18%
FIDELITY
VIP II Contrafund 01/03/95 21.22% N/A N/A 30.19%
VAN ECK
Worldwide Emerging
Markets 12/21/95 26.82% N/A N/A 25.00%
</TABLE>
* This performance information reflects the total of the
income generated by the portfolio net of the total portfolio
operating expenses, plus capital gains and losses, realized or
unrealized, and net of the mortality and expense risk charge.
The performance results do not reflect: monthly deductions;
cost of insurance; surrender charges; sales loads and any
state or local premium taxes (see "Charges and Deductions"
in the Prospectus). If these charges were included, the total
return figures would be lower. The data assumes the
Subaccounts under the Policy were in existence on the
portfolio's inception date.
- The Funds and the Investment Advisors
Under "ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.," the
following language is added:
Global Bond Portfolio - seeks a high level of return from a
combination of current income and capital appreciation by<PAGE>
investing in a globally diversified portfolio of high quality
debt securities denominated in the U.S. Dollar and a range of
foreign currencies.
Premier Growth Portfolio - seeks growth of capital rather than
current income. In pursuing its investment objectives, the
Portfolio will employ aggressive investment policies. Since
investments will be made based upon the potential for capital
appreciation, current income will be incidental to the
objective of capital growth. The Portfolio is not intended
for investors whose principal objective is assured income or
preservation of capital.
Under "FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND
II," the following language is added:
VIP II Contrafund Portfolio - seeks to increase the value of
your investment over the long term by investing mainly in
equity securities of companies that are undervalued or
out-of-favor.
Under "VAN ECK WORLDWIDE INSURANCE TRUST," the following
language is added:
Worldwide Emerging Markets Fund - seeks long-term capital
appreciation by investing primarily in equity securities in
emerging markets around the world.
The following language is added as a new paragraph:
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund - seeks to provide capital
appreciation through investments in common stocks, with
emphasis on medium-sized and smaller emerging growth
companies.
International Equity Fund ("International Fund") - seeks to
provide long-term growth of capital by investing in
international equity securities, the issuers of which are
considered by AIM Advisors Inc. to have strong earnings
momentum.
AIM Advisors, Inc., 11 Greenway Plaza, Suite 100, Houston, TX
77046-1173, serves as the investment advisor to the AIM Funds
pursuant to a new master investor advisory agreement. More
detailed information regarding management of the Funds,
investment objectives, investment advisory fees and other
charges assessed by the AIM Funds are contained in the
prospectus for the Funds included with this Prospectus.<PAGE>
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