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).