AMERICAN GENERAL LIFE INSURANCE CO SEPARATE ACCOUNT D
497, 1998-01-30
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                             SIERRA ASSET MANAGER
               COMBINATION FIXED AND VARIABLE ANNUITY CONTRACTS

                    AMERICAN GENERAL LIFE INSURANCE COMPANY
                              SEPARATE ACCOUNT D

                     Supplement Dated January 30, 1998 to
                        Prospectus Dated May 1, 1997 as
                         Supplemented November 6, 1997


On December 23, 1997,  shareholders  of the Short Term Global  Government Fund
(the "Global Government Fund") of The Sierra Variable Trust ("Trust") approved
the  reorganization and merger of the Global Government Fund with and into the
Short  Term High  Quality  Bond Fund of the  Trust.  That  reorganization  was
completed on January 30, 1998.  As a result,  the Global  Government  Fund has
ceased to exist. Accordingly,  American General Life Insurance Company ("AGL")
has  removed  the Short Term  Global  Government  Division  from its  Separate
Account D, effective January 30, 1998.

On December 23, 1997,  shareholders of each of the Funds and the Portfolios of
the  Trust  (other  than  the  Global   Government  Fund)  also  approved  the
appointment of Composite  Research & Management Co.  ("Composite")  as the new
investment adviser, effective January 30, 1998.

The Trust has  advised  AGL that the name of the Global  Money Fund is now the
Money Market Fund.  Accordingly,  AGL has changed the name of its Global Money
Division to the name "Money Market Division."

The Separate  Account D Prospectus  is amended to (1) delete  reference to the
Global  Government  Fund on page 12, (2) reduce the number  "forty-three,"  to
"forty-two,"  where it appears on page 12, (3) substitute the name  "Composite
Research  &  Management  Co." for both the name  "Sierra  Investment  Advisors
Corporation"  and the name "Sierra  Investment  Services  Corporation"  in the
first full  paragraph on page 12, and (4)  substitute  the name "Money Market"
for the name "Global Money," where the latter appears on the cover page and on
pages 7-8, 12, and 14.

              PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

<PAGE>

                             SIERRA ASSET MANAGER
               COMBINATION FIXED AND VARIABLE ANNUITY CONTRACTS

                    AMERICAN GENERAL LIFE INSURANCE COMPANY
                              SEPARATE ACCOUNT D

                     Supplement Dated January 30, 1998 to
           Statement of Additional Information Dated May 1, 1997 as
                         Supplemented November 6, 1997


The Trust has  advised  AGL that the name of the Global  Money Fund is now the
Money Market Fund.  Accordingly,  AGL has changed the name of its Global Money
Division to the name "Money Market Division."

The  Separate  Account D Statement  of  Additional  Information  is amended to
substitute  the term "Money  Market  Fund" for the term  "Global  Money Fund,"
where the latter appears on 5-7.


              PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE




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