AIG LIFE INSURANCE COMPANY
VARIABLE ACCOUNT I
SUPPLEMENT DATED SEPTEMBER 16, 1998, TO THE INDIVIDUAL AND GROUP SINGLE
PREMIUM AND FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS PROSPECTUS
DATED JULY 4, 1998.
This Supplement provides information regarding a change in the investment
options available under the Contract. The North American Government Income
Portfolio of the ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC. ("Alliance") is no
longer available as an investment option. The Technology Portfolio of the
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC. ("Alliance") is available to
Contract Owners in addition to the Alliance Portfolios offered in the
Prospectus.
This Supplement amends the contents of the Prospectus, under the
headings indicated, as follows:
SUMMARY OF EXPENSES
Annual Fund Expenses After Expense Reimbursements
Total
Management Other Portfolio
Portfolio Fee Expenses* Expenses**
Technology Portfolio 0.76 0.19 0.95
* "Other Expenses" are based upon the expenses outlined under the section
entitled "Management of the Fund" in the Fund's Prospectus.
** "Total Portfolio Expenses" for the Technology Portfolio before
reimbursement was 1.19%.
Expenses on a hypothetical $1,000 policy, assuming 5% growth:
If you surrender
Portfolio 1 Year 3 Years 5 Years 10 Years
Technology Portfolio 78 120 165 275
If you annuitize or if you do not surrender
Portfolio 1 Year 3 Years 5 Years 10 Years
Technology Portfolio 24 75 129 275
<TABLE>
CONDENSED FINANCIAL INFORMATION
ACCUMULATION UNIT VALUES*
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993 1992
TECHNOLOGY PORTFOLIO
Accumulation Unit Value
Beginning of Period 10.89 10.00 N/A N/A N/A N/A
End of Period 11.43 10.89 N/A N/A N/A N/A
Accum Units o/s @ end of period 4,818,385.19 2,127,691.68 N/A N/A N/A N/A
</TABLE>
*Funds were first invested in the Technology Portfolio on January 22, 1996.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
Technology Portfolio
This Portfolio seeks growth of capital through investment in companies
expected to benefit from advances in technology. The Portfolio invests
principally in a diversified portfolio of securities of companies which use
technology extensively in the development of new or improved products or
processes.
THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED.
THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR
VARIABLE ACCOUNT I DATED JULY 4, 1998, AND THE ALLIANCE FUND PROSPECTUS DATED
MAY 1, 1998.
