LIFE OF VIRGINIA SEPARATE ACCOUNT III
Prospectus Supplement Dated March 14, 1997
to Prospectus Dated May 1, 1996
for the
Variable Life Insurance Policy
Form P1097 1/87
THE LIFE INSURANCE COMPANY OF VIRGINIA
6610 West Broad Street, Richmond, Virginia
23230
(804) 281-6000
This supplement should be retained with your prospectus for the Policy.
The attached prospectus for the Policy is hereby supplemented by inserting the
following disclosure immediately after the end of the information appearing
under the heading "Dollar-Cost Averaging" on page 24 of the prospectus:
Portfolio Rebalancing
Owners may elect to have Life of Virginia automatically transfer amounts on a
quarterly, semi-annual or annual basis to maintain a specified percentage of
Cash Value in each of two or more Investment Subdivisions designated by the
Owner. This privilege is intended to permit owners to use "Portfolio
Rebalancing," a strategy that maintains over time the Owner's desired allocation
percentage in the designated Investment Subdivisions. The percentage of Cash
Value in each of the Investment Subdivisions may shift from the Premium Payment
allocation percentage due to the performance of the Investment Subdivisions.
Life of Virginia makes no representations or guarantees that Portfolio
Rebalancing will result in a profit or protect against loss.
Owners must complete the Portfolio Rebalancing agreement to participate in the
Portfolio Rebalancing program. Owners may designate the Investment Subdivisions
and specify the rebalancing percentages in the agreement. The specified
percentages must be in whole percentages and must be at least 1%. The date that
a rebalancing transfer is effected is measured from the Policy Date, or other
date selected at the sole discretion of Life of Virginia, based on the
rebalancing frequency chosen by an Owner. Cash Value must be allocated to each
of the designated Investment Subdivisions for rebalancing to become effective.
Portfolio Rebalancing is offered free of charge and will continue as long as
there is Cash Value in each of the designated Investment Subdivisions. Prior to
that time, Owners may discontinue rebalancing by sending Life of Virginia a
written cancellation notice. Owners may make changes to their Portfolio
Rebalancing program by calling Life of Virginia's Telephone Transfer Line at
800-772-3844. Portfolio Rebalancing transfers are not included for the purpose
of determining any transfer charge. Owners should consider the possible effects
of electing other automatic programs such as Dollar-Cost Averaging concurrent
with Portfolio Rebalancing. Life of Virginia reserves the right to exclude
investment subdivisions from Portfolio Rebalancing. Life of Virginia also
reserves the right to discontinue Portfolio Rebalancing upon 30 days written
notice to the Owner.
THE LIFE INSURANCE COMPANY OF VIRGINIA
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