Rule 497(e)
File No. 33-39171
AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT I
PROSPECTUS SUPPLEMENT
December 11, 1997
Supplement to the Individual Deferred Variable Annuity Contracts Prospectus
dated May 1, 1997.
This supplement provides information regarding a change in the investment
options available under the Contract. The following portfolios are no
longer available to Owners as investment options:
Short-Term Multi-Market Portfolio, Conservative Investors Portfolio and
Growth Investors Portfolio of the ALLIANCE VARIABLE PRODUCTS SERIES FUND,
INC.<PAGE>
Rule 497(e)
File No. 33-39171
AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT I
PROSPECTUS SUPPLEMENT
December 11, 1997
Supplement to the Individual and Group Single Premium and
Flexible Premium Variable Annuity Contracts Prospectus dated
May 1, 1997.
This supplement provides information regarding changes in the
investment options available under the Contract. The
following portfolios are no longer available to Contract
Owners as investment options for future premium allocation:
Growth Investors Portfolio and Conservative Investors
Portfolio of the ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.;
Worldwide Balanced Fund of the VAN ECK WORLDWIDE INSURANCE
TRUST; VIP Overseas Portfolio of the FIDELITY INVESTMENTS
VARIABLE INSURANCE PRODUCTS FUND; and the Short-Term
Retirement Portfolio, Medium-Term Retirement Portfolio and
Long-Term Retirement Portfolio of the TOMORROW FUNDS
RETIREMENT TRUST.
At any time, the Contract Owner may transfer remaining
Contract Value from the above portfolios to any other
investment options available under the Contract.
This supplement also provides information regarding the
following investment options that are now available to
Contract Owners:
Capital Appreciation Fund and International Equity Fund of the
AIM VARIABLE INSURANCE FUNDS, INC. ("AIM Funds"); Global Bond
Portfolio and Premier Growth Portfolio of the ALLIANCE
VARIABLE PRODUCTS SERIES FUND, INC. ("Alliance Fund"); VIP II
Contrafund Portfolio of the FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND II ("Fidelity Fund II"); Worldwide
Emerging Markets Fund of the VAN ECK WORLDWIDE INSURANCE TRUST
("Van Eck Funds").<PAGE>
This supplement adds the following information to the
Prospectus under the headings indicated:
- SUMMARY OF EXPENSES
Annual Fund Expenses After Expense Reimbursements (as of
December 31, 1996)
<TABLE>
<CAPTION>
Management Other Total Portfolio
Portfolio Fee Expenses Expenses
<S> <C> <C> <C>
AIM Capital Appreciation 0.64% 0.09% 0.73%
AIM International Equity 0.75% 0.21% 0.96%
Alliance Global Bond 0.44% 0.50% 0.94%
Alliance Premier Growth 0.72% 0.23% 0.95%
Fidelity VIP II Contrafund 0.61% 0.10% 0.71%
Van Eck Worldwide
Emerging Markets* . 0.00% 0.00% 0.00%
</TABLE>
* If not waived, the gross expenses of Van Eck Worldwide
Emerging Markets Fund would have been 2.64% (Management Fee
of 1.00% and Other Expenses of 1.64% - Annualized).
Expenses on a hypothetical $1,000 single premium policy,
assuming 5% growth:
<TABLE>
<CAPTION>
If you surrender
Portfolio 1 Year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
AIM Capital Appreciation $78 $108 $138 $252
AIM International Equity $80 $114 $149 $276
Alliance Global Bond $80 $114 $149 $274
Alliance Premier Growth $80 $114 $149 $275
Fidelity VIP II Contrafund $78 $107 $137 $250
Van Eck Worldwide
Emerging Markets . $71 $86 $101 $175
2<PAGE>
</TABLE>
Expenses on a hypothetical $1,000 flexible premium policy,
assuming 5% growth:
<TABLE>
<CAPTION>
If you surrender
Portfolio 1 Year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
AIM Capital Appreciation $76 $105 $135 $252
AIM International Equity $79 $111 $147 $276
Alliance Global Bond $78 $111 $146 $274
Alliance Premier Growth $78 $111 $146 $275
Fidelity VIP II Contrafund $76 $104 $134 $250
Van Eck Worldwide
Emerging Markets . $69 $82 $98 $175
</TABLE>
Expenses on a hypothetical $1,000 single or flexible premium
policy, assuming 5% growth:
<TABLE>
<CAPTION>
If you annuitize or if you do not surrender
Portfolio 1 Year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
AIM Capital Appreciation $22 $69 $117 $252
AIM International Equity $25 $75 $129 $276
Alliance Global Bond $24 $75 $128 $274
Alliance Premier Growth $24 $75 $129 $275
Fidelity VIP II Contrafund $22 $68 $116 $250
Van Eck Worldwide
Emerging Markets . $15 $46 $80 $175
</TABLE>
- THE FUNDS
Under "ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.," the
following language is added:
Global Bond Portfolio - seeks a high level of return from a
combination of current income and capital appreciation by
investing in a globally diversified portfolio of high quality
debt securities denominated in the U.S. Dollar and a range of
foreign currencies.
Premier Growth Portfolio - seeks growth of capital rather than
current income. In pursuing its investment objectives, the
Portfolio will employ aggressive investment policies. Since
investments will be made based upon the potential for capital
appreciation, current income will be incidental to the
objective of capital growth. The Portfolio is not intended for
3<PAGE>
investors whose principal objective is assured income or
preservation of capital.
Under "FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUNDS," the following language is added:
VIP II Contrafund Portfolio - seeks to increase the value of
investment over the long term, by investing mainly in equity
securities of companies that are undervalued or out-of-favor.
Under "VAN ECK WORLDWIDE INSURANCE TRUST," the following
language is added:
Worldwide Emerging Markets Fund - seeks long-term capital
appreciation by investing primarily in equity securities in
emerging markets around the world.
The following language is added as a new paragraph:
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund - seeks to provide capital
appreciation through investments in common stocks, with
emphasis on medium-sized and smaller emerging growth
companies.
International Equity Fund ("International Fund") - seeks to
provide long-term growth of capital by investing in
international equity securities, the issuers of which are
considered by AIM Advisor, Inc. to have strong earnings
momentum.
AIM Advisors, Inc., 11 Greenway Plaza, Suite 100, Houston, TX
77046-1173, serves as the investment advisor to the AIM Funds
pursuant to a new master investor advisory agreement. More
detailed information regarding management of the Funds,
investment objectives, investment advisory fees and other
charges assessed by the AIM Funds are contained in the
prospectus for the Funds included with this Prospectus.
4<PAGE>
. . . Rule 497(e)
. . . File No. 33-39171
AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT I
PROSPECTUS SUPPLEMENT
December 11, 1997
Supplement to the Individual Deferred Variable Annuity Contracts Prospectus
dated May 1, 1997.
This supplement provides information regarding changes in the investment
options available under the Contract. The following portfolios are no
longer available to Owners as investment options for future premium
allocation:
Growth Investors Portfolio and Conservative Investors Portfolio of the
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.; Worldwide Balanced Fund of
the VAN ECK WORLDWIDE INSURANCE TRUST; VIP Overseas Portfolio of the
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND; and the Short-Term
Retirement Portfolio, Medium-Term Retirement Portfolio and Long-Term
Retirement Portfolio of the TOMORROW FUNDS RETIREMENT TRUST.
At any time, the Owner may transfer Contract Value from the above
portfolios to any other investment options available under the Contract.
This supplement also provides information regarding the following
investment options that are now available to Owners:
Capital Appreciation Fund and International Equity Fund of the AIM VARIABLE
INSURANCE FUNDS, INC. ("AIM Funds"); Global Bond Portfolio and Premier
Growth Portfolio of the ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
("Alliance Fund"); VIP II Contrafund Portfolio of the FIDELITY INVESTMENTS
VARIABLE INSURANCE PRODUCTS FUND II ("Fidelity Fund II"); Worldwide
Emerging Markets Fund of the VAN ECK WORLDWIDE INSURANCE TRUST ("Van Eck
Funds").<PAGE>
This supplement adds the following information to the Prospectus under the
headings indicated:
- SUMMARY OF EXPENSES
Annual Fund Expenses After Expense Reimbursements (as of December 31, 1996)
<TABLE>
<CAPTION>
Management Other Total Portfolio
Portfolio Fee Expenses Expenses
<S> <C> <C> <C>
AIM Capital Appreciation . 0.64% 0.09% 0.73%
AIM International Equity . 0.75% 0.21% 0.96%
Alliance Global Bond . . . 0.44% 0.50% 0.94%
Alliance Premier Growth . . 0.72% 0.23% 0.95%
Fidelity VIP II Contrafund 0.61% 0.10% 0.71%
Van Eck Worldwide
Emerging Markets* . . . . 0.00% 0.00% 0.00%
</TABLE>
* If not waived, the gross expenses of Van Eck Worldwide Emerging Markets
Fund would have been 2.64% (Management Fee of 1.00% and Other Expenses
of 1.64% - Annualized).
Expenses on a hypothetical $1,000 policy, assuming 5% growth:
<TABLE>
<CAPTION>
If you surrender
Portfolio 1 Year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
AIM Capital Appreciation . $76 $114 $153 $252
AIM International Equity . $79 $120 $165 $276
Alliance Global Bond . $78 $120 $164 $274
Alliance Premier Growth $78 $120 $165 $275
Fidelity VIP II Contrafund $76 $113 $152 $250
Van Eck Worldwide
Emerging Markets . . . . $69 $91 $116 $175
</TABLE>
2<PAGE>
Expenses on a hypothetical $1,000 policy, assuming 5% growth:
<TABLE>
<CAPTION>
If you annuitize or if you do not surrender
Portfolio 1 Year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
AIM Capital Appreciation . $22 $69 $117 $252
AIM International Equity . $25 $75 $129 $276
Alliance Global Bond . . . $24 $75 $128 $274
Alliance Premier Growth . . $24 $75 $129 $275
Fidelity VIP II Contrafund $22 $68 $116 $250
Van Eck Worldwide
Emerging Markets . . . . $15 $46 $80 $175
</TABLE>
- THE FUNDS
Under "ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.," the following
language is added:
Global Bond Portfolio - seeks a high level of return from a combination of
current income and capital appreciation by investing in a globally
diversified portfolio of high quality debt securities denominated in the
U.S. Dollar and a range of foreign currencies.
Premier Growth Portfolio - seeks growth of capital rather than current
income. In pursuing its investment objectives, the Portfolio will employ
aggressive investment policies. Since investments will be made based upon
the potential for capital appreciation, current income will be incidental
to the objective of capital growth. The Portfolio is not intended for
investors whose principal objective is assured income or preservation of
capital.
Under "FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUNDS," the
following language is added:
VIP II Contrafund Portfolio - seeks to increase the value of investment
over the long term, by investing mainly in equity securities of companies
that are undervalued or out-of-favor.
Under "VAN ECK WORLDWIDE INSURANCE TRUST", the following language is added:
Worldwide Emerging Markets Fund - seeks long-term capital appreciation by
investing primarily in equity securities in emerging markets around the
world.
The following language is added as a new paragraph:
3<PAGE>
AIM VARIABLE INSURANCE FUNDS, INC.
Capital Appreciation Fund - seeks to provide capital appreciation through
investments in common stocks, with emphasis on medium-sized and smaller
emerging growth companies.
International Equity Fund ("International Fund") - seeks to provide long-
term growth of capital by investing in international equity securities, the
issuers of which are considered by AIM Advisors, Inc. to have strong
earnings momentum.
AIM Advisors, Inc., 11 Greenway Plaza, Suite 100, Houston, TX 77046-1173,
serves as the investment advisor to the AIM Funds pursuant to a new master
investor advisory agreement. More detailed information regarding management
of the Funds, investment objectives, investment advisory fees and other
charges assessed by the AIM Funds are contained in the prospectus for the
Funds included with this Prospectus.
4<PAGE>
