AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT II
SUPPLEMENT DATED JUNE 11, 1998, TO THE GROUP FLEXIBLE PREMIUM VARIABLE
UNIVERSAL LIFE INSURANCE POLICIES PROSPECTUS DATED MAY 1, 1998
This Supplement provides information regarding a change in the
investment options available under the Contract. The Conservative Investors
Portfolio, Growth Investors Portfolio and Short-Term Multi Market Portfolio of
the ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC. ("Alliance") are available to
Contract Owners in addition to the Alliance Portfolios offered in the
Prospectus.
This Supplement amends the contents of the Prospectus, under the
headings indicated, as follows:
PERFORMANCE INFORMATION
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS*
As of December 31, 1997
Since
Portfolio Inception Date 1 Year 3 Years 5 Years 10 Years Inception
<S> <C> <C> <C> <C> <C> <C>
Conservative Investors 10/28/94 10.22% 9.52% N/A N/A 9.17%
Growth Investors 10/28/94 15.29% 13.83 N/A N/A 12.47%
Short-Term Multi Market(1) 11/28/90 N/A N/A N/A N/A N/A
</TABLE>
* The 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 Policy' Subaccounts were in existence on the portfolio'
inception date. The Policy was first offered on May 4, 1995.
(1) Performance information is not included because as of December 31,
1997, the Portfolio has not been available to Policies under this
Prospectus for a full year.
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
Conservative Investors Portfolio
This Portfolio seeks the highest total return without, in the view of
the Fund's Adviser, undue risk to the principal by investing in a diversified
mix of publicly traded equity and fixed-income securities.
Growth Investors Portfolio
This Portfolio seeks the highest total return consistent with what the
Fund's Adviser considers to be reasonable risk by investing in a diversified mix
of publicly traded equity and fixed-income securities.
Short-Term Multi Market Portfolio
This Portfolio seeks the highest level of current income, consistent with
what the Fund's Adviser considers to be prudent investment risk, that is
available from a portfolio of high-quality debt securities denominated in U.S.
dollars and selected foreign currencies and having remaining maturities of not
more than three years.
THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED.
THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR
VARIABLE ACCOUNT II DATED MAY 1, 1998 AND THE ALLIANCE FUND PROSPECTUS DATED MAY
1, 1998.
