Rule 497
File No. 33-39171
AIG Life Insurance Company
Variable Account I
Supplement dated September 9, 1997 to the Prospectus dated May 1, 1997.
This supplement provides information regarding the High Yield Portfolio of the
Alliance Variable Product Series Fund, Inc. (the Alliance Fund). Nineteen
portfolios are now available to contract owners. Additional information
regarding the High Yield Portfolio may be found in the prospectus for the
Alliance Fund dated May 1, 1997 as amended August 22, 1997, which sets forth the
disclosure regarding the High Yield Portfolio. The Alliance Fund prospectus is
enclosed with this Prospectus. The High Yield Portfolio is managed by Alliance
Capital Management L.P. the Fund's Investment Manager.
This Supplement amends the contents of the Prospectus, under the headings
indicated, as follows:
SUMMARY OF EXPENSES
Annual Fund Expenses After Expense Reimbursements*
Portfolio Management Other Total Portfolio
Fee Expenses Expenses
Alliance High Yield 0.0% 0.95% 0.95%
* Total operating expenses for the High Yield portfolio before expense
reimbursements are estimated to be 1.75%.
Expenses on a hypothetical $1,000 Single Premium policy, assuming 5% growth:
If you surrender
1 Year 3 Year 5 Year 10 Year
High Yield 80 114 149 275
Expenses on a hypothetical $1000 Flexible Premium policy, assuming 5% growth:
If you surrender
1 Year 3 Year 5 Year 10 Year
High Yield 78 111 147 275
Expenses on a hypothetical $1000 Single or Flexible Premium policy, assuming 5%
growth:
If you annuitize or
if you do not surrender
High Yield 1 Year 3 Years 5 Years 10 Years
24 75 129 275
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
High Yield Portfolio
This Portfolio seeks the highest level of current income available without
assuming undue risk by investing principally in high-yielding fixed income
securities. As a secondary objective, this Portfolio seeks capital appreciation
where consistent with its primary objective. Many of the high-yielding
securities in which the High-Yield Portfolio invests are rated in the lower
rating categories (i.e. below investment grade) by nationally recognized rating
services. These securities, which are often referred to as "junk bonds", are
subject to greater risk of loss of principal and interest than higher rated
securities and are considered to be predominately speculative with respect to
the issuer's capacity to pay interest and repay principal. There can be of
course no assurance that the investment objective will be achieved.
THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR VARIABLE
ACCOUNT I DATED MAY 1, 1997 AND THE ALLIANCE FUND PROSPECTUS DATED MAY 1, 1997
AS AMENDED AUGUST 22, 1997.
