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AMERICAN GENERAL LIFE INSURANCE COMPANY
SEPARATE ACCOUNT D
WM STRATEGIC ASSET MANAGER
FLEXIBLE PAYMENT VARIABLE AND FIXED INDIVIDUAL DEFERRED ANNUITY CONTRACTS
SUPPLEMENT DATED OCTOBER 2, 1998
TO
PROSPECTUS DATED APRIL 1, 1998
AS SUPPLEMENTED AUGUST 21, 1998
Effective October 2, 1998, all American General Life Insurance Company Separate
Account D, WM Strategic Asset Manager Flexible Payment Variable and Fixed
Individual Deferred Annuity Contracts will be changed to reflect a 15% instead
of 10% free withdrawal privilege. This change of the 10% free withdrawal
privilege to a 15% free withdrawal privilege is subject to applicable state
insurance department approvals.
ON PAGE 30, PLEASE DELETE THE THREE FULL PARAGRAPHS IMMEDIATELY PRECEDING
THE SECTION ENTITLED "TRANSFER CHARGES," AND INSERT IN THEIR PLACE THE
FOLLOWING:
The following applies to Contracts issued prior to October 2, 1998:
. The Surrender Charge does not apply to the portion of your first
withdrawal or total surrender in any Contract Year that does not
exceed 10% of the amount of your purchase payments that (a) have not
previously been withdrawn and (b) have been credited to the Contract
for at least one year. If multiple withdrawals are made during a
Contract Year, the amount eligible for the free withdrawal will be
recalculated at the time of each withdrawal. After the first Contract
Year, non-automatic and automatic withdrawals may be made in the same
Contract Year subject to the 10% limitation. For withdrawals under a
systematic withdrawal plan, Purchase Payments credited for 30 days or
more are eligible for the 10% free withdrawal.
. The Surrender Charge will not apply to any amounts withdrawn which are
in excess of the amount permitted by the 10% free withdrawal
privilege, described above, if such amounts are required to be
withdrawn to obtain or retain favorable tax treatment. This exception
is subject to our approval.
. A free withdrawal pursuant to any of the foregoing Surrender Charge
exceptions is not deemed to be a withdrawal of purchase payments,
except for purposes of computing the 10% free withdrawal described in
the preceding paragraphs. See "Penalty Tax on Premature
Distributions."
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The following applies to Contracts issued on or after October 2, 1998:
. The Surrender Charge does not apply to the portion of your first
withdrawal or total surrender in any Contract Year that does not
exceed 15% of the amount of your purchase payments that (a) have not
previously been withdrawn and (b) have been credited to the Contract
for at least one year. If multiple withdrawals are made during a
Contract Year, the amount eligible for the free withdrawal will be
recalculated at the time of each withdrawal. After the first Contract
Year, non-automatic and automatic withdrawals may be made in the same
Contract Year subject to the 15% limitation. For withdrawals under a
systematic withdrawal plan, Purchase Payments credited for 30 days or
more are eligible for the 15% free withdrawal.
. The Surrender Charge will not apply to any amounts withdrawn which are
in excess of the amount permitted by the 15% free withdrawal
privilege, described above, if such amounts are required to be
withdrawn to obtain or retain favorable tax treatment. This exception
is subject to our approval.
. A free withdrawal pursuant to any of the foregoing Surrender Charge
exceptions is not deemed to be a withdrawal of purchase payments,
except for purposes of computing the 15% free withdrawal described in
the preceding paragraphs. See "Penalty Tax on Premature
Distributions."
On all Contracts purchased on or after October 2, 1998, and upon receipt of
applicable state insurance department approvals, we will, as required (i) offer
Owners a new Contract which reflects the 15% free withdrawal privilege, or (ii)
issue an amendment to the Owner's existing Contract which reflects the 15% free
withdrawal privilege.
All capitalized terms not defined in this Supplement have the same meaning as
stated in the Prospectus.
