AMERICAN GENERAL LIFE INSURANCE CO SEPARATE ACCOUNT D
497, 1996-10-10
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          AMERICAN GENERAL LIFE INSURANCE COMPANY SEPARATE ACCOUNT D

                     SUPPLEMENT DATED OCTOBER 14, 1996 TO
                 PROSPECTUS DATED MAY 1, 1996 AND JULY 1, 1996


I.   The fourth  paragraph under the Section entitled  "CONTRACT  ISSUANCE AND
     PURCHASE  PAYMENTS"  states  that we reserve the right to transfer to the
     Global Money  Division the account value of any Division that falls below
     $500.  This right does not apply to the Account  Value of a Division that
     falls below $500 immediately  following a transfer under the Sierra Asset
     Management  Program,  which  is  described  under  the  Section  entitled
     "TRANSFER, SURRENDER AND PARTIAL WITHDRAWAL OF OWNER ACCOUNT VALUE."

II.  Regarding  the  Section   entitled   "TRANSFER,   SURRENDER  AND  PARTIAL
     WITHDRAWAL OF OWNER ACCOUNT VALUE - Transfers":

     1.   The minimum value requirements stated in the second paragraph do not
          apply to transfer requests we receive in conjunction with the Sierra
          Asset Management Program; and

     2.   The minimum  Variable Account Value required for acceptance into the
          Sierra Asset  Management  Program is $10,000  (instead of $40,000 as
          stated in the sixth paragraph).







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