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Prospectus Supplement*
November 22, 1996
Variable Universal Life Policy - New York (Flexible Premium
Variable Life Insurance Policy) S-6171 U (6/96)
The following information adds to and modifies the disclosure of
the prospectus dated April 30, 1996. THIS PROPSECTUS NOW ALSO MUST
BE ACCOMPANIED OR PRECEDED BY THE PROSPECTUSES FOR AIM VARIABLE
INSURANCE FUNDS, INC. AND PUTNAM CAPITAL MANAGER TRUST.
The following two subaccounts are added to the IDS Life Variable
Life Separate Account which invest in two new funds:
Subaccount invests exclusively in shares of
YGI AIM V.I. Growth and Income Fund
YNO PCM New Opportunities Fund
The subaccounts now invest in the following Funds:
IDS Life Series Fund Equity Portfolio
IDS Life Series Fund Income Portfolio
IDS Life Series Fund Money Market Portfolio
IDS Life Series Fund Managed Portfolio
IDS Life Series Fund Government Securities Portfolio
IDS Life Series Fund International Equity Portfolio
AIM V.I. Growth and Income Fund
PCM New Opportunities Fund
The two new funds have the following investment objectives:
AIM V.I. Growth and Income Fund
Objective: to seek growth of capital, with current income as a
secondary objective. The fund seeks to achieve its objective by
investing primarily in dividend-paying common stocks which have
prospects for both growth of capital and dividend income.
PCM New Opportunities Fund
Objective: long-term capital appreciation. Invests principally in
common stocks of companies in sectors of the economy that
management believes possess above-average, long-term growth
potential.
IDS Life Insurance Company is the investment manager, American
Express Financial Corporation is the investment advisor and
American Express Trust Company acts as custodian of the investments
of the IDS Life Series Fund. A I M Advisors, Inc. is the
investment manager of the AIM V.I. Growth and Income Fund. Putnam
Investment Management, Inc. is the investment manager of the PCM
New Opportunities Fund.
All funds are available to serve as the underlying investment for
variable life insurance, and some funds are available to serve as
the underlying investment for variable life insurance contracts,
variable annuities and qualified plans. It is conceivable that in
the future it may be disadvantageous for variable life insurance
separate accounts, variable annuity separate accounts and/or
qualified plans to invest in the available funds simultaneously.
Although IDS Life and the funds do not currently foresee any such
disadvantages, the boards of directors or trustees of the
appropriate funds will monitor events in order to identify any <PAGE>
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material conflicts between such policy owners, contract owners and
qualified plans to determine what action, if any, should be taken
in response to a conflict. If a board were to conclude that
separate funds should be established for variable life insurance,
variable annuity and qualified plan separate accounts, the variable
life insurance policyholders would not bear any expenses associated
with establishing separate funds.
Relationship between the funds and the subaccounts
Shares of the IDS Life Series Fund are sold only to fund life
insurance benefits under variable life insurance policies issued by
IDS Life and IDS Life Insurance Company of New York ("IDS Life of
New York"). Currently IDS Life Series Fund shares are sold only
to:
o the respective subaccounts of the variable account;
o IDS Life Variable Account for Smith Barney;
o IDS Life of New York Account 7; and
o IDS Life of New York Account 8.
Shares of AIM V.I. Growth and Income Fund and PCM New Opportunities
Fund serve as the underlying investments for variable life
insurance contracts and variable annuities issued by IDS Life, IDS
Life of New York and other insurance companies and for qualified
plans.
Rates of return of the new subaccounts
Average annual rates of return, for the periods ending Sept. 30,
1996, in the following table reflect all charges incurred by the
funds and charges against the subaccounts (including the mortality
and expense risk charge). The rates do not reflect the premium
expense charge, surrender charge or monthly deduction. These
performance figures are calculated on the basis of historical
performance of the funds. These figures show what the performance
of the subaccounts would have been if these subaccounts had existed
during the illustrated periods.
Subaccount Investment 1 Year 3 Years 5 Years Since Inception*
YGI AIM V.I. 12.91% N/A N/A 17.70%
Growth and
Income Fund
YNO PCM New 24.11% N/A N/A 27.41%
Opportunities
Fund
*Since inception date of the funds, 5/94.
The following Fund Expenses apply:
The investment management fee equals, on an annual basis, the
following percent of the average daily net assets of the funds:
0.5% of the IDS Life Series Fund Money Market Portfolio
0.95: of the IDS Life Series Fund International Equity
Portfolio
0.7% of the IDS Life Series Fund Equity, Income, Managed and
Government Securities Portfolios
0.65% of the AIM V.I. Growth and Income Fund
0.7% of the PCM New Opportunities Fund
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The funds also pay certain other expenses or nonadvisory expenses
such as taxes and brokerage commissions. IDS Life has agreed to a
voluntary limit of 0.1%, on an annual basis, of the average daily
net assets of each of the IDS Life Series Fund portfolios for these
nonadvisory expenses, even though actual expenses on Government
Securities and Money Market portfolios ranged up to 0.2%. Other
expenses for the period ended Dec. 31, 1995 were 0.14% for PCM New
Opportunities Fund. For AIM V.I. Growth and Income Fund other
expenses (annualized) were 0.52% for the period ended Dec. 31,
1995. Premium taxes imposed by some state and local governments
are not reflected in these figures.
Form No. S-6171-1A (11/96)
*Valid until next prospectus update
