SUPPLEMENT TO THE PROSPECTUS
TMK/United Funds, Inc.
The following replaces the information on pages 4 through 13 in the Financial
Highlights information for each Portfolio with respect to the fiscal year ended
December 31, 1996.
<TABLE>
Small Asset Limited- High
Growth IncomeInternational Cap Balanced Strategy Term Bond Bond Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period .......... $6.8260 $8.6756 $5.2790 $7.6932 $5.9000 $5.0137 $5.2521 $5.3592 $4.4448
------- ------- ------- ------- ------- ------- ------- ------- -------
Income from investment
operations:
Net investment
income ........ 0.0990 0.0856 0.0644 0.0170 0.1594 0.1814 0.2842 0.3407 0.4216
Net realized and
unrealized gain
(loss) on
investments ... 0.7478 1.6280 0.7329 0.6367 0.5003 0.1206 (0.0870) (0.1588) 0.1302
------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations ...... 0.8468 1.7136 0.7973 0.6537 0.6597 0.3020 0.1972 0.1819 0.5518
------- ------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment
income ........ (0.0990) (0.0856) (0.0644) (0.0170) (0.1594) (0.1814) (0.2842) (0.3407) (0.4216)
Distribution from
capital gains . (0.7771) (0.1663) (0.0129) (0.3123) (0.2036) (0.0000) (0.0012) (0.0000) (0.0000)
------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.8761) (0.2519) (0.0773) (0.3293) (0.3630) (0.1814) (0.2854) (0.3407) (0.4216)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value,
end of period ... $6.7967 $10.1373 $5.9990 $8.0176 $6.1967 $5.1343 $5.1639 $5.2004 $4.5750
======= ======== ======= ======= ======= ======= ======= ======= =======
Total return ...... 12.40% 19.75% 15.11% 8.50% 11.19% 6.05% 3.79% 3.43% 12.46%
Net assets, end of period
(000 omitted) ... $513,163 $462,391 $79,849 $97,408 $42,427 $8,474 $3,715 $92,367 $97,406
Ratio of expenses to
average net assets 0.73% 0.73% 1.00% 0.91% 0.70% 0.93% 0.76% 0.59% 0.71%
Ratio of net investment
income to average
net assets ...... 1.44% 0.97% 1.42% 0.25% 3.18% 3.92% 5.92% 6.39% 9.10%
Portfolio turnover
rate ............ 243.00% 22.95% 75.01% 133.77% 44.23% 49.92% 15.81% 64.02% 58.91%
Average commission rate
paid ............ $0.0572 $0.0586 $0.0217 $0.0448 $0.0579 $0.0375
</TABLE>
To be attached to page 3 of the Prospectus of TMK/United Funds, Inc. dated April
4, 1997.
This Supplement is dated April 21, 1997.
INSTRUCTIONS
This supplement to the TMK/United Funds, Inc. Prospectus relates to your
Advantage policy (Advantage I Variable Life or Advantage II Variable Annuity)
issued by United Investors Life Insurance Company.
U1147
<PAGE>
TMK/UNITED FUNDS, INC.
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED April 4, 1997
The following replaces the information on page 3 under the heading "Total
Return" with respect to average annual total return quotations.
One-year Five-year
period from period from Period from
1-1-96 to 1-1-92 to 7-13-87* to
12-31-96 12-31-96 12-31-96
----------- ----------- -----------
Bond Portfolio 3.43% 7.31% 8.66%
High Income Portfolio 12.46% 11.99% 9.73%
Growth Portfolio 12.40% 17.05% 15.66%
Income Portfolio 19.75% 15.72% 15.88**
International Portfolio 15.11% 8.34%***
Small Cap Portfolio 8.50% 22.99%***
Balanced Portfolio 11.19% 12.71%***
Limited-Term Bond Portfolio 3.79% 6.72%***
Asset Strategy Portfolio 6.05% 4.68%****
*Date of initial public offering.
**Period from July 16, 1991, date of initial offering, to December 31, 1996.
***Period from May 3, 1994, date of initial offering, to December 31, 1996.
****Period from May 1, 1995, date of initial offering, to December 31, 1996.
Science and Technology Portfolio commenced operations in 1997.
This Supplement is to be attached to page 3 of the Statement of Additional
Information of TMK/United Funds, Inc. dated April 4, 1997.
This Supplement is dated April 21, 1997.
