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SUPPLEMENT DATED OCTOBER 1, 1997 TO
PROSPECTUS DATED MAY 1, 1997
INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - 3
This Supplement updates certain information contained in your Prospectus.
Please read it and keep it with your Prospectus for future reference.
1. Effective July 11, 1997, the VAN KAMPEN AMERICAN CAPITAL LIFE INVESTMENT
TRUST - REAL ESTATE SECURITIES PORTFOLIO (formerly, "Van Kampen American
Capital Life Investment Trust - Real Estate Securities Fund") changed its
name to the following:
VAN KAMPEN AMERICAN CAPITAL LIFE INVESTMENT TRUST -
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Accordingly, any and all references in the Prospectus are amended to
reflect this name change.
2. The following information is added to the "FEDERAL TAX CONSIDERATIONS"
section as the second provision:
PUERTO RICO
Under the Puerto Rico tax code, Distributions prior to Annuitization
are treated as nontaxable return of principal until the principal is fully
recovered; thereafter, all Distributions are fully taxable. Distributions
after Annuitization are treated as part taxable income and part nontaxable
return of principal. The amount excluded from gross income after
Annuitization is equal to the amount of the Distribution in excess of 3% of
the total Purchase Payments paid, until an amount equal to the total
Purchase Payments paid has been excluded; thereafter, the entire
Distribution is included in gross income. Puerto Rico does not impose an
early withdrawal penalty tax. Generally, Puerto Rico does not require
income tax to be withheld from Distributions of income. A personal tax
advisor should be consulted.
