<PAGE> 1
The attached are incorporated by reference herein to the semi-annual reports
filed by and on behalf of the following:
The Alger American Fund, filed September 3, 1997
Portfolios which include: Alger American Small Capitalization; Alger
American Growth; Alger American MidCap Growth; and Alger American
Leveraged AllCap
Berger Institutional Products Trust, filed August 28, 1997
Portfolios which include: Berger/BIAM IPT-International Fund
Canada Life of America Series Fund, Inc., filed August 27, 1997
Portfolios which include: Money Market; Managed; Bond; Value Equity,
International Equity; and Capital.
Dreyfus Variable Investment Fund, filed August 30, 1997
Portfolios which include: Dreyfus Growth and Income
The Dreyfus Socially Responsible Growth Fund, Inc., filed August 30, 1997
Portfolios which include: Dreyfus Socially Responsible
Fidelity Investments Variable Insurance Products Fund, filed August 21, 1997
Portfolios which include: Fidelity VIP Growth; Fidelity VIP High
Income; and Fidelity VIP Overseas
Fidelity Investments Variable Insurance Products Fund II, filed August 21, 1997
Portfolios which include: Fidelity VIP II Asset Manager; and Fidelity
VIP II Index 500
Seligman Portfolios, Inc., filed August 29, 1997
Portfolios which include: Communications and Information; and
Frontier
The Montgomery Funds III, filed September 4, 1997
Portfolios which include: Montgomery Variable Series Emerging Markets
Fund; and Montgomery Variable Series Growth Fund
<PAGE> 2
August 1997
Dear VariFund Policyowner:
Enclosed for your review are the Canada Life of America Series Fund Semi-Annual
Report, the Semi-Annual Reports for the Fidelity Investment Variable Insurance
Products Fund and Fidelity Investments Variable Insurance Products II, the
Seligman Portfolios Inc., the Dreyfus Variable Investment Fund, the Montgomery
Variable Funds III , the Berger/BIAM Fund and the Alger American Fund for the
period ending June 30, 1997. We encourage you to review this information and
refer to it as needed throughout the year.
In addition, and for your convenience, the tear-off form below is provided to
allow you to make an additional contribution to your VariFund contract. A
postage paid envelope is also enclosed. For other information, please contact
your registered representative.
Sincerely,
Alex J. Sywak
Senior Marketing Coordinator
- -------------------------------------------------------------------------------
Policyowner:_____________________________________Policy Number_________________
I would like to make an additional deposit into my VariFund flexible premium
variable deferred annuity. Please apply my contribution of $____________ as
follows: (Total must equal 100%)
______ This payment only
______ This payment and all future payments
______ Re-allocate all current assets
<TABLE>
<S> <C>
___% Money Market ___% Fidelity VIP Overseas
___% Managed ___% Fidelity VIP II Asset Manager
___% Bond ___% Fidelity Index 500
___% Value Equity ___% Dreyfus Growth & Income
___% Capital ___% Dreyfus Socially Responsible
___% International Equity ___% Alger Small Cap
___% Seligman Frontier ___% Alger Growth
___% Seligman Communication & Information ___% Alger MidCap
___% Fidelity VIP Growth ___% Alger Leveraged AllCap
___% Fidelity VIP High Income ___% Montgomery Emerging Markets
___% Fixed Account (Specify 1, 3, 5, 7 or 10 Years*) ___% Montgomery Growth
___% Berger / BIAM IPT International
</TABLE>
____________ ___________________________________
Date Contract Owner Signature
*3,5,7 and 10 Years are subject to state approvals
Canada Life Insurance Company of America
Investment Products
6201 Powers Ferry Road
Atlanta, GA 30339
<PAGE> 3
VARIFUND(TM) ANNUITY
VARIABLE SUB-ACCOUNT PERFORMANCE Average Annual Total Returns For
Periods Ending June 30, 1997
Assuming Contract Continues
<TABLE>
<CAPTION>
ONE THREE FIVE TEN SINCE INCEPTION
PORTFOLIO TYPE PORTFOLIO YEAR YEAR YEAR YEAR INCEPTION DATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY PORTFOLIOS Alger American Growth 21.92% 24.38% 20.43% N/A 17.86% 01/08/89
Alger American Leveraged AllCap 11.82% N/A N/A N/A 36.49% 01/25/95
Alger American MidCap Growth 8.84% 23.36% N/A N/A 21.19% 05/03/93
Alger American Small Capitalization (4.17)% 17.66% 14.40% N/A 17.35% 09/20/88
CLASF Capital 10.78% 19.38% N/A N/A 13.45% 04/23/93
CLASF Value Equity 12.54% 13.28% 9.63% N/A 9.40% 12/04/89
Dreyfus Growth & Income 10.57% N/A N/A N/A 23.59% 05/02/94
Dreyfus Socially Responsible 27.60% N/A N/A N/A 19.74% 10/07/93
Fidelity Index 500 32.08% 26.65% N/A N/A 17.96% 08/27/92
Fidelity VIP Growth 16.18% 23.24% 18.16% 12.67% 13.81% 10/09/86
Montgomery Growth N/A N/A N/A N/A 31.49% 02/09/96
Seligman Frontier 10.86% N/A N/A N/A 25.05% 10/11/94
----------------------------------------------------------------------------------------------------------------
INTERNATIONAL Berger-IPT International N/A N/A N/A N/A 1.56%* 05/01/97
CLASF International Equity 22.88% N/A N/A N/A 18.08% 04/24/95
Fidelity VIP Overseas 20.88% 10.90% 9.65% 7.34% 7.49% 01/28/87
Montgomery Emerging Markets 20.60% N/A N/A N/A 18.26% 02/02/96
----------------------------------------------------------------------------------------------------------------
SPECIALTY PORTFOLIO Seligman Communications & Information 19.42% N/A N/A N/A 19.48% 10/11/94
----------------------------------------------------------------------------------------------------------------
BALANCED CLASF Managed 8.10% 10.60% 8.12% N/A 8.11% 12/04/89
Fidelity VIP II Asset Manager 18.68% 12.39% 10.78% N/A 10.80% 09/06/89
----------------------------------------------------------------------------------------------------------------
FIXED INCOME
PORTFOLIOS CLASF Bond 5.59% 6.46% 5.41% N/A 6.06% 12/04/89
Fidelity VIP High Income 12.78% 12.28% 11.60% 9.87% 10.56% 09/19/85
----------------------------------------------------------------------------------------------------------------
MONEY MARKET CLASF Money Market 3.18% 3.16% 2.34% N/A 2.90% 12/04/89
</TABLE>
CLASF MONEY MARKET PORTFOLIO current yield (annualized yield for a seven day
period ended June 30, 1997) is 5.38%. VARIFUND FIXED ACCOUNT rate was 5.00% as
of July 1, 1997. The performance data quoted is after the deduction of all fees
and charges, except for possible surrender charges. For performance figures
after the deduction of all fees and charges, including the maximum possible
surrender charge, please see the reverse side. Performance data represents past
performance and is not a guarantee of future results. Investment returns and
principal value may fluctuate so that an investor's shares, when redeemed, may
be more or less than his or her original cost. Performance figures for
portfolios with inception dates prior to December 4, 1989 reflect performance if
VariFund existed at the inception of those portfolios. Contact your registered
representative or call Canada Life Insurance Company of America at (800)
905-1959 for a Prospectus containing full details including information on fees
and charges. Please read the prospectus carefully before investing or sending
money. *ACTUAL CUMULATIVE RETURN SINCE INCEPTION.
<PAGE> 4
<TABLE>
<CAPTION>
VARIABLE SUB-ACCOUNT PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING JUNE 30, 1997 - ASSUMING CONTRACT IS SURRENDERED AT END PERIOD
ONE THREE FIVE TEN SINCE INCEPTION
PORTFOLIO TYPE PORTFOLIO YEAR YEAR YEAR YEAR INCEPTION DATE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY PORTFOLIOS Alger American Growth 16.52% 23.40% 20.17% N/A 17.86% 01/08/89
Alger American Leveraged AllCap 6.42% N/A N/A N/A 35.29% 01/25/95
Alger American MidCap Growth 3.44% 22.37% N/A N/A 20.71% 05/03/93
Alger American Small Capitalization (9.57)% 16.57% 14.08% N/A 17.35% 09/20/88
CLASF Capital 5.38% 18.32% N/A N/A 12.87% 04/23/93
CLASF Value Equity 7.14% 12.10% 9.25% N/A 9.40% 12/04/89
Dreyfus Growth & Income 5.17% N/A N/A N/A 22.68% 05/02/94
Dreyfus Socially Responsible 22.20% N/A N/A N/A 19.00% 10/07/93
Fidelity Index 500 26.68% 25.71% N/A N/A 17.56% 08/27/92
Fidelity VIP Growth 10.78% 22.24% 17.88% 12.67% 13.81% 10/09/86
Montgomery Growth N/A N/A N/A N/A 27.98% 02/09/96
Seligman Frontier 5.46% N/A N/A N/A 23.93% 10/11/94
INTERNATIONAL Berger-IPT International N/A N/A N/A N/A (3.84)%* 05/01/97
CLASF International Equity 17.48% N/A N/A N/A 16.38% 04/24/95
Fidelity VIP Overseas 15.48% 9.67% 9.27% 7.34% 7.49% 01/28/87
Montgomery Emerging Markets 15.06% N/A N/A N/A 14.56% 02/02/96
SPECIALTY PORTFOLIO Seligman Communications & Information 14.02% N/A N/A N/A 18.26% 10/11/94
BALANCED CLASF Managed 2.70% 9.36% 7.72% N/A 8.11% 12/04/89
Fidelity VIP II Asset Manager 13.28% 11.19% 10.42% N/A 10.68% 09/06/89
FIXED INCOME PORTFOLIOS CLASF Bond 0.19% 5.12% 4.97% N/A 6.06% 12/04/89
Fidelity VIP High Income 7.38% 11.08% 11.25% 9.87% 10.56% 09/19/85
MONEY MARKET CLASF Money Market (2.22%) 1.73% 1.84% N/A 2.90% 12/04/89
</TABLE>
The above figures are SEC required "standardized" performance returns which
include the deduction of all fees and charges, including the maximum possible
sales charge. These firgures may not be applicable to your contract, since you
may not have to pay these early withdrawal charges. Please see the prospectus
for more details. CLASF refers to Canada Life of America Series Fund, Inc.
Fidelity VIP and and Fidelity VIP II refer to Fidelity Investments Variable
Insurance Products Fund and Fidelity Variable Insurance Products Fund II.
*Actual cumulative return since inception less the maximum possible sales
charge.
Annuities are not deposits of, obligations of, or guaranteed by any depository
institution. They are not insured by FDIC or any federal agency, and as such
are subject to investment risk including possible loss of principal invested.
The FIXED account portions of a variable annuity (NOT the separate accounts)
are backed by the issuing insurance company.
Issued By: Canada Life Insurance Company of America,
6201 Powers Ferry Road, N.W. Atlanta, GA 30339
Distributed By: Canada Life of America Financial Services, Inc. 6201 Powers
Ferry Road, N.W., Atlanta, GA 30339
July, 1997
