VIA EDGAR
February 26, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Kemper Investors Life Insurance Company ("KILICO") and
KILICO Variable Separate Account ("Variable Separate Account")
(File No. 811-5025)
Commissioners:
Attached for filing, pursuant to Section 30(d) and Rule 30d-2 of the
Investment Company Act of 1940 ("1940 Act"), is the most recent annual report
of the Variable Separate Account referenced above. The annual report
consists of cover letters from KILICO for the Power V variable life insurance
product offered through the Variable Separate Account plus the most recent
individual annual reports of the mutual fund subaccount options available
through the Variable Separate Account. Because the most recent annual
reports of the funds have been filed with the SEC by their respective
Investment Managers/Advisers, KILICO is filing herewith only the cover letter
prepared by KILICO and hereby incorporates by reference the individual annual
reports of the underlying funds set forth below.
The Variable Separate Account includes the underlying fund options as
follows:
Investors Fund Series (File No. 811-5002)
American Skandia Trust (File No. 811-5186)
Fidelity Variable Insurance Products Fund (File No. 811-03329)
Fidelity Variable Insurance Products Fund II (File No. 811-05511)
Fidelity Variable Insurance Products Fund III (File No. 811-07205)
Scudder Variable Life Investment Fund (File No. 811-4257)
Please call the undersigned at 847-969-3507 if you have any questions or
comments.
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Securities and Exchange Commission
February 26, 1999
Page 2
Yours truly,
/s/ Frank J. Julian
Frank J. Julian
Vice President, Associate General
Counsel and Assistant Secretary
FJJ/sw
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[ZURICH KEMPER LIFE LETTERHEAD]
February 26, 1999
Dear Kemper Investors Life Policyowner:
Zurich Kemper Life is pleased to send you the 1998 Annual Reports for the
funds underlying your investment choices in the Kemper Power V variable life
insurance policy.
The Kemper Power V is one of our many products designed to meet your
long-term insurance and financial needs. Please review these reports for a
summary of the funds' operations and related financial statements.
Zurich Kemper Life is part of the Zurich Group, one of the world's largest
and most respected financial service organizations. If you have any
questions on this product or others in the Zurich family, please contact your
financial representative or our Client Services Team at 1-888-962-8854. Or,
check out our website at www.zurichkemper.com.
As always, we continue our pledge to assist you in meeting your financial
needs.
Sincerely,
/s/ John B. Scott
John B. Scott
President
Chief Executive Officer
Securities distributed through Investors Brokerage Services, Inc. Kemper
Power V is underwritten by Kemper Investors Life Insurance Company.
