AIM VARIABLE INSURANCE FUNDS INC, 497, 1999-05-07

AIM VARIABLE INSURANCE FUNDS INC
497, 1999-05-07

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<PAGE> 1

AIM V.I. AGGRESSIVE GROWTH FUND

---------------------------------------------------------------------

AIM V.I. Aggressive Growth Fund seeks to achieve long-term growth of
capital.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

An investment in the fund is not a
deposit of a bank and is not insured
or guaranteed by the Federal Deposit
Insurance Corporation or any other
government agency. There is a risk
that you could lose a portion or all
of your money.

As with all other mutual fund
securities, the Securities and
Exchange Commission has not approved
or disapproved these securities or
determined whether the information
in this prospectus is adequate or
accurate. Anyone who tells you
otherwise is committing a crime.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 2

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND
1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

Future Fund Closure 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

The AIM Family of Funds, The AIM Family of Funds and Design (i.e., the AIM
logo), AIM and Design, AIM, AIM LINK, AIM Institutional Funds, aimfunds.com, La
Familia AIM de Fondos, La Familia AIM de Fondos and Design and Invest with
Discipline are registered service marks and AIM Bank Connection is a service
mark of A I M Management Group Inc.

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 3
-------------------------------
AIM V.I. AGGRESSIVE GROWTH FUND
-------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve long-term growth of capital.

The fund seeks to meet this objective by investing primarily in common stocks,
convertible bonds, convertible preferred stocks and warrants of small- and
medium-sized companies whose earnings the fund's portfolio managers expect to
grow more than 15% per year. The fund may also invest up to 25% of its total
assets in foreign securities.

The portfolio managers focus on companies they believe are likely to benefit
from new or innovative products, services or processes as well as those that
have experienced above-average, long-term growth in earnings and have excellent
prospects for future growth. The portfolio managers consider whether to sell a
particular security when any of those factors materially changes.

In anticipation of or in response to adverse market conditions, for cash
management purposes, or for defensive purposes, the fund may temporarily hold
all or a portion of its assets in cash, money market instruments, bonds or other
debt securities. As a result, the fund may not achieve its investment objective.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer, the value of its assets, general economic
conditions, interest rates, investor perceptions and market liquidity. This is
especially true with respect to common stocks of smaller companies, whose prices
may go up and down more than common stocks of larger, more-established
companies. Also, since common stocks of smaller companies may not be traded as
often as common stocks of larger, more-established companies, it may be
difficult or impossible for the fund to sell securities at a desirable price.

The prices of foreign securities may be further affected by other factors,
including:

- - Currency exchange rates--The dollar value of the fund's foreign investments
will be affected by changes in the exchange rates between the dollar and the
currencies in which those investments are traded.

- - Political and economic conditions--The value of the fund's foreign investments
may be adversely affected by political and social instability in their home
countries and by changes in economic or taxation policies in those countries.

- - Regulations--Foreign companies generally are subject to less stringent
regulations, including financial and accounting controls, than are U.S.
companies. As a result, there generally is less publicly available information
about foreign companies than about U.S. companies.

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

These factors may affect the prices of securities issued by foreign companies
located in developing countries more than those in countries with mature
economies. For example, many developing countries have, in the past, experienced
high rates of inflation or sharply devaluated their currencies against the U.S.
dollar, thereby causing the value of investments in companies located in those
countries to decline. Transaction costs are often higher in developing countries
and there may be delays in settlement procedures.

If the seller of a repurchase agreement in which the fund invests defaults on
its obligation or declares bankruptcy, the fund may experience delays in selling
the securities underlying the repurchase agreement. As a result, the fund may
incur losses arising from decline in the value of those securities, reduced
levels of income and expenses of enforcing its rights.

The value of your shares could be adversely affected if the computer systems
used by the fund's investment advisor and the fund's other service providers are
unable to distinguish the year 2000 from the year 1900.

The fund's investment advisor and independent technology consultants are
working to avoid year 2000-related problems in its systems and to obtain
assurances that other service providers are taking similar steps. Year 2000
problems may also affect issuers in whose securities the fund invests.

1
<PAGE> 4
-------------------------------
AIM V.I. AGGRESSIVE GROWTH FUND
-------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor . The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

The advisor has acted as an investment advisor since its organization in 1976.
Today, the advisor, together with its subsidiaries, advises or manages over 110
investment portfolios, including the fund, encompassing a broad range of
investment objectives.

ADVISOR COMPENSATION

The advisor is to receive a fee from the fund calculated at the annual rate of
0.80% of the first $150 million of average daily net assets and 0.625% of
average daily net assets over $150 million.

PORTFOLIO MANAGERS

The advisor uses a team approach to investment management. The individual
members of the team who are primarily responsible for the day-to-day management
of the fund's portfolio, all of whom are officers of A I M Capital Management,
Inc., a wholly owned subsidiary of the advisor, are

- - Robert M. Kippes, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1989.

- - Kenneth A. Zschappel, Senior Portfolio Manager, who has been responsible for
the fund since 1998 and has been associated with the advisor and/or its
affiliates since 1990.

- - Charles D. Scavone, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1996. From 1994 to 1996, Mr. Scavone was Associate Portfolio Manager for
the Van Kampen American Capital Asset Management, Inc.

- - Ryan E. Crane, Portfolio Manager, who has been responsible for the fund since
1999 and has been associated with the advisor and/or its affiliates since
1994.

2
<PAGE> 5
-------------------------------
AIM V.I. AGGRESSIVE GROWTH FUND
-------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

The fund ordinarily effects orders to purchase and redeem shares at the fund's
next computed net asset value after it receives an order. Life insurance
companies participating in the fund serve as the fund's designee for receiving
orders of separate accounts that invest in the fund.

PRICING OF SHARES

The fund prices its shares based on its net asset value. The fund values
portfolio securities for which market quotations are readily available at market
value. The fund values short-term investments maturing within 60 days at
amortized cost, which approximates market value. The fund values all other
securities and assets at their fair value. Securities and other assets quoted in
foreign currencies are valued in U.S. dollars based on the prevailing exchange
rates on that day. In addition, if, between the time trading ends on a
particular security and the close of the New York Stock Exchange (NYSE), events
occur that materially affect the value of the security, the fund may value the
security at its fair value as determined in good faith by or under the
supervision of the Board of Directors. The effect of using fair value pricing is
that the fund's net asset value will be subject to the judgment of the Board of
Directors or its designee instead of being determined by the market. Because the
fund may invest in securities that are primarily listed on foreign exchanges,
the value of the fund's shares may change on days when the separate account will
not be able to purchase or redeem shares. The fund determines the net asset
value of its shares as of the close of the NYSE on each day the NYSE is open for
business.

TAXES

The amount, timing and character of distributions to the separate account may be
affected by special tax rules applicable to certain investments purchased by the
fund. Holders of variable contracts should refer to the prospectus for their
contracts for information regarding the tax consequences of owning such
contracts and should consult their tax advisors before investing.

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

The fund generally distributes long-term and short-term capital gains (including
any net gains from foreign currency transactions), if any, annually to separate
accounts of participating life insurance companies.

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

FUTURE FUND CLOSURE

Due to the sometime limited availability of common stocks of small-cap companies
that meet the investment criteria for AIM V.I. Aggressive Growth Fund, the fund
may periodically suspend or limit the offering of its shares and it will be
closed to new participants when fund assets reach $200 million.

During closed periods, the fund will accept additional investments from
existing participants.

3
<PAGE> 6
-------------------------------
AIM V.I. AGGRESSIVE GROWTH FUND
-------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1,
THROUGH
DECEMBER 31, 1998
- -------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income 0.04
Net gains (losses) on securities (both realized and
unrealized) (0.14)
Total from investment operations (0.10)
Less distributions:
Dividends from net investment income (0.05)
Net asset value, end of period $ 9.85
Total return(a) (0.94)%
- -------------------------------------------------------------------------------
Ratios/supplemental data:
- -------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $4,399
Ratio of expenses to average net assets(b) 1.16%(c)
Ratio of net investment income to average net assets(d) 0.96%(c)
Portfolio turnover rate 30%
- -------------------------------------------------------------------------------
</TABLE>

(a) Total return is not annualized.
(b) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
4.62% (annualized).
(c) Ratios are annualized and based on average net assets of $2,430,925.
(d) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursement was (2.50)% (annualized).

4
<PAGE> 7
-------------------------------
AIM V.I. AGGRESSIVE GROWTH FUND
-------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

More information may be obtained free of charge upon request. The Statement of
Additional Information (SAI), a current version of which is on file with the
Securities and Exchange Commission (SEC), contains more details about the fund
and is incorporated by reference into the prospectus (is legally a part of this
prospectus). Annual and semiannual reports to shareholders contain additional
information about the fund's investments. The fund's annual report also
discusses the market conditions and investment strategies that significantly
affected the fund's performance during its last fiscal year.

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

You also can obtain copies of the fund's SAI and other information at the
SEC's Public Reference Room in Washington, D.C., on the SEC's website
(http://www.sec.gov) or by sending a letter, including a duplicating fee, to the
SEC's Public Reference Section, Washington, D.C. 20549-6009. Please call the SEC
at 1-800-SEC-0330 for information about the Public Reference Room.

- -----------------------------------
AIM V.I. Aggressive Growth Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 8

AIM V.I. BALANCED FUND
-------------------------------------------------------------------

AIM V.I. Balanced Fund seeks to achieve as high a total return as
possible, consistent with preservation of capital.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 9

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 10
----------------------
AIM V.I. BALANCED FUND
----------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve as high a total return as
possible, consistent with preservation of capital.

The fund seeks to meet this objective by investing in a broadly diversified
portfolio of high-yielding securities, including common stocks, preferred
stocks, convertible securities and bonds. The fund normally invests a minimum of
30% and a maximum of 70% of its total assets in equity securities and a minimum
of 30% and a maximum of 70% of its total assets in non-convertible debt
securities. The fund may also invest up to 25% of its total assets in
convertible securities. The fund may invest up to 10% of its total assets in
lower-quality debt securities, i.e., "junk bonds." The fund may also invest up
to 20% of its total assets in foreign securities.

In selecting the percentages of assets to be invested in equity or debt
securities, the portfolio managers consider such factors as the general market
and economic conditions, as well as trends, yields, interest rates and changes
in fiscal and monetary policies. The portfolio managers will primarily purchase
equity securities for growth of capital and debt securities for income purposes.
However, the portfolio managers will focus on companies whose securities have
the potential for both growth of capital and income generation. The portfolio
managers consider whether to sell a particular security when they believe that
security no longer has that potential.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund and that the income you may receive from the fund may vary. The value of
your investment in the fund will go up and down with the prices of the
securities in which the fund invests. The price of equity securities change in
response to many factors, including the historical and prospective earnings of
the issuer, the value of its assets, general economic conditions, interest
rates, investor perceptions and market liquidity. Interest rate increases may
cause the price of a debt security to decrease; the longer a debt security's
duration, the more sensitive it is to this risk. The issuer of a security may
default or otherwise be unable to honor a financial obligation.

The values of convertible securities in which the fund invests may also be
affected by market interest rates, the risk that the issuer may default on
interest or principal payments and the value of the underlying stock into which
these securities may be converted. Specifically, since these types of
convertible securities pay fixed interest or dividends, their values may fall if
interest rates rise. Additionally, an issuer may have the right to buy back
certain of the convertible securities at a time and at a price that is
unfavorable to the fund.

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 11
----------------------
AIM V.I. BALANCED FUND
----------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

The advisor is to receive a fee from the fund calculated at the annual rate of
0.75% of the first $150 million of average daily net assets and 0.50% of average
daily net assets over $150 million.

PORTFOLIO MANAGERS

- - Claude C. Cody, IV, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Robert G. Alley, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Craig A. Smith, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1989.

- - Carolyn L. Gibbs, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Meggan M. Walsh, Portfolio Manager, who has been responsible for the fund
since 1998 and has been associated with the advisor and/or its affiliates
since 1991.

- - Jan H. Friedli, Portfolio Manager, who has been responsible for the fund since
1999 and has been associated with the advisor and/or its affiliates since
1999. From 1997 to 1999, he was global fixed-income portfolio manager for
Nicholas-Applegate Capital Management. From 1994 to 1997, he was international
fixed-income trader and analyst for Strong Capital Management.

2
<PAGE> 12
----------------------
AIM V.I. BALANCED FUND
----------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 13
----------------------
AIM V.I. BALANCED FUND
----------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1,
THROUGH
DECEMBER 31, 1998
- -------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.00
Income from investment operations:
Net investment income 0.12
Net gains on securities (both realized and
unrealized) 1.18
Total from investment operations 1.30
Less Distributions:
Dividends from net investment income (0.14)
Distributions from net realized gains (0.02)
Total Distributions (0.16)
Net asset value, end of period $ 11.14
Total return(a) 13.02%
- -------------------------------------------------------------------------
Ratios/supplemental data:
- -------------------------------------------------------------------------
Net assets, end of period (000s omitted) $10,343
Ratio of expenses to average net assets(b) 1.18%(c)
Ratio of net investment income to average net
assets(d) 3.71%(c)
Portfolio turnover rate 9%
- -------------------------------------------------------------------------
</TABLE>

(a) Total return is not annualized.
(b) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
2.83% (annualized).
(c) Ratios are annualized and based on average net assets of $4,218,617.
(d) After fee waivers and/or expense reimbursements, Ratio of net investment
income to average net assets prior to fee waivers and/or expense
reimbursement was 2.07% (annualized).

4
<PAGE> 14
----------------------
AIM V.I. BALANCED FUND
----------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. Balanced Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 15

AIM V.I. CAPITAL APPRECIATION FUND
-----------------------------------------------------------------------

AIM V.I. Capital Appreciation Fund seeks to provide growth of capital
through investments in common stocks, with emphasis on medium- and
small-sized growth companies.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 16

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 4

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 17
----------------------------------
AIM V.I. CAPITAL APPRECIATION FUND
----------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is growth of capital through investment in
common stocks, with emphasis on medium- and small-sized growth companies.

The fund may also invest up to 20% of its total assets in foreign securities.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 18
----------------------------------
AIM V.I. CAPITAL APPRECIATION FUND
----------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

The bar chart and table shown below provide an indication of the risks of
investing in the fund. The fund's past performance is not necessarily an
indication of its future performance. The bar chart and performance table shown
do not reflect charges at the separate account level. If they did, the
performance shown would be lower.

ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
The following bar chart shows changes in the performance of the fund's shares
from year to year.
[GRAPH]

<TABLE>
<CAPTION>
Annual
Years Ended Total
December 31 Returns
----------- -------
<S> <C>
1994.......................... 2.50%
1995.......................... 35.69%
1996.......................... 17.58%
1997.......................... 13.51%
1998.......................... 19.30%
</TABLE>

During the periods shown in the bar chart, the highest quarterly return was
24.04% (quarter ended December 31, 1998) and the lowest quarterly return was
- -14.75% (quarter ended September 30, 1998.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(for the periods ended SINCE INCEPTION
December 31, 1998) 1 YEAR 5 YEARS INCEPTION DATE
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Capital Appreciation Fund 19.30% 17.23% 18.77% 05/05/93
Standard & Poor's 500 Index(1) 28.60% 24.05% 22.60%(2) 04/30/93(2)
- ---------------------------------------------------------------------------------------------
</TABLE>

(1) The Standard & Poor's 500 Index is an unmanaged index of common stocks
frequently used as a general measure of U.S. stock market performance.
(2) The average annual total return given is since the date closest to the
inception date of the fund.

2
<PAGE> 19
----------------------------------
AIM V.I. CAPITAL APPRECIATION FUND
----------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.62% of average net assets.

PORTFOLIO MANAGERS

- - Robert M. Kippes, Senior Portfolio Manager, who has been responsible for the
fund since 1993 and has been associated with the advisor and/or its affiliates
since 1989.

- - Charles D. Scavone, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1996. From 1994 to 1996 Mr. Scavone was an Associate Portfolio Manager
for Van Kampen American Capital Management, Inc.

- - David P. Barnard, Senior Portfolio Manager, who has been responsible for the
fund since 1993 and has been associated with the advisor and/or its affiliates
since 1982.

- - Kenneth A. Zschappel, Senior Portfolio Manager, who has been responsible for
the fund since 1995 and has been associated with the advisor and/or its
affiliates since 1990.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

3
<PAGE> 20
----------------------------------
AIM V.I. CAPITAL APPRECIATION FUND
----------------------------------

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

(a) Total returns are not annualized for periods less than one year.
(b) Ratios are based on average net assets of $566,139,574.
(c) Annualized.

4
<PAGE> 21
----------------------------------
AIM V.I. CAPITAL APPRECIATION FUND
----------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. Capital Appreciation Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 22

AIM V.I. CAPITAL DEVELOPMENT FUND

------------------------------------------------------------------------

AIM V.I. Capital Development Fund seeks to provide long-term growth of
capital.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 23

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 1
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 2

Pricing of Shares 2

Taxes 2

Dividends and Distributions 2

FINANCIAL HIGHLIGHTS 3
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to make any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 24
---------------------------------
AIM V.I. CAPITAL DEVELOPMENT FUND
---------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is long-term growth of capital.

The fund seeks to meet this objective by investing primarily in securities,
including common stocks, convertible securities and bonds, of small- and
medium-sized companies. The fund may also invest up to 25% of its total assets
in foreign securities.

Among factors which the portfolio managers may consider when purchasing these
securities are: (1) the growth prospects for a company's products; (2) the
economic outlook for its industry; (3) a company's new product development; (4)
its operating management capabilities; (5) the relationship between the price of
the security and its estimated fundamental value; (6) relevant market, economic
and political environments; and (7) financial characteristics, such as balance
sheet analysis and return on assets. The portfolio managers sell a particular
security when any one of these factors materially changes or when the securities
are no longer considered medium-sized company securities.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the securities in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer, the value of its assets, general economic
conditions, interest rates, investor perceptions and market liquidity. This is
especially true with respect to common stocks of smaller companies, whose prices
may go up and down more than common stock of larger, more-established companies.
Also, since common stock of smaller companies may not be traded as often as
common stock of larger, more-established companies, it may be difficult or
impossible for the fund to sell securities in the fund at a desirable price.

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

1
<PAGE> 25
---------------------------------
AIM V.I. CAPITAL DEVELOPMENT FUND
---------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

The advisor is to receive a fee from the fund calculated at the annual rate of
0.75% of the first $350 million of average daily net assets and 0.625% of
average daily net assets over $350 million.

PORTFOLIO MANAGERS

- - Edgar M. Larsen, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1996. From 1981 to 1996 Mr. Larsen was among other offices, Senior Vice
President and portfolio manager for John Hancock Advisers, Inc. and its
predecessors.

- - Paul J. Rasplicka, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1994.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

2
<PAGE> 26
---------------------------------
AIM V.I. CAPITAL DEVELOPMENT FUND
---------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1,
THROUGH
DECEMBER 31, 1998
- -------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income 0.03(a)
Net gains (losses) on securities (both realized and
unrealized) (0.78)
Total from investment operations (0.75)
Less distributions:
Dividends from net investment income (0.04)
Net asset value, end of period $ 9.21
Total return(b) (7.51)%
- -------------------------------------------------------------------------------
Ratios/supplemental data:
- -------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $3,172
Ratio of expenses to average net assets(c) 1.21%(d)
Ratio of net investment income to average net assets(e) 0.62%
Portfolio turnover rate 45%
- -------------------------------------------------------------------------------
</TABLE>

(a) Calculated using average shares outstanding.
(b) Total returns is not annualized.
(c) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
5.80% (annualized).
(d) Ratios are annualized and based on average net assets of $1,891,388.
(e) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursement were (3.97)% (annualized).

3
<PAGE> 27
---------------------------------
AIM V.I. CAPITAL DEVELOPMENT FUND
---------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- ------------------------------------
AIM V.I. Capital Development Fund
SEC 1940 Act file number: 811-7452
- ------------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 28

AIM V.I. DIVERSIFIED INCOME FUND
-----------------------------------------------------------------------

AIM V.I. Diversified Income Fund seeks to achieve a high level of
current income.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 29

Table of Contents
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 30
--------------------------------
AIM V.I. DIVERSIFIED INCOME FUND
--------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve a high level of current income.

The fund seeks to meet this objective by investing primarily in (1) domestic
and foreign corporate debt securities; (2) U.S. Government securities, including
U.S. Government agency mortgage-backed securities; (3) securities issued by
foreign governments, their agencies or instrumentalities, and (4) lower-quality
debt securities, i.e., "junk bonds," of U.S. and foreign companies. The fund's
assets will normally be invested in each of these four sectors, however the fund
may invest up to 100% of its total assets in U.S. Government securities.

The fund may invest up to 50% of its total assets in foreign securities,
including securities of issuers located in developing countries. The fund may
invest up to 25% of its total assets in government securities of any one foreign
country. The fund may also invest up to 10% of its total assets in equity
securities and convertible debt securities of U.S. and foreign companies. The
fund may invest in debt obligations issued by certain supranational entities,
such as the World Bank.

The portfolio managers focus on securities that they believe have favorable
prospects for current income, whether denominated in the U.S. dollar or in other
currencies. The portfolio managers consider whether to sell a particular
security when any of those factors materially changes.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund and that the income you may receive from your investment may vary. The
value of your investment in the fund will go up and down with the prices of the
securities in which the fund invests. Debt securities are particularly
vulnerable to credit risk and interest rate fluctuations. Interest rate
increases may cause the price of a debt security to decrease. The longer a debt
security's duration, the more sensitive it is to this risk. Junk bonds are less
sensitive to risk than are higher-quality bonds. Some of the securities
purchased by the fund are not guaranteed by the U.S. Government. The agency or
instrumentality issuing such security may default or otherwise be unable to
honor a financial obligation.

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or price changes due to changes in the credit quality of the issuer
because they are generally unsecured and may be subordinated to other creditors'
claims. The value of junk bonds often fluctuates in response to company,
political or economic developments and can decline significantly over short
periods of time or during periods of general or regional economic difficulty.
During those times the bonds could be difficult to value or sell at a fair
price. Credit ratings on junk bonds do not necessarily reflect their actual
market risk.

The prices of foreign securities may be further affected by other factors
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

U.S. Government agency mortgage-backed securities provide a higher coupon at
the time of purchase than current prevailing market interest rates. The fund may
purchase such securities at a premium, which means that a faster principal
prepayment rate than expected will reduce both the market value of and income
from such securities.

The prices of equity securities fluctuates in response to many factors,
including the historical and prospective earnings of the issuer, the value of
its assets, general economic conditions, interest rates, investor perceptions
and market liquidity.

1
<PAGE> 31
--------------------------------
AIM V.I. DIVERSIFIED INCOME FUND
--------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
The following chart shows changes in the performance of the fund's shares from
year to year.

Year Ended Annual Total
December 31 Return
----------- ------------
1994 -5.07%
1995 19.02%
1996 10.19%
1997 9.39%
1998 3.58%

During the periods shown in the bar chart, the highest quarterly return was
5.54% (quarter ended June 30, 1995) and the lowest quarterly return was -3.16%
(quarter ended March 31, 1994.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(for the periods ended SINCE INCEPTION
DECEMBER 31, 1998) 1 YEAR 5 YEARS INCEPTION DATE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Diversified Income Fund 3.58% 7.12% 7.38% 05/05/93
Lehman Aggregate Bond Index(1) 8.69% 7.27% 7.25%(2) 04/30/93(2)
- ---------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Lehman Aggregate Bond Index is an unmanaged index generally considered
representative of treasury issues, agency issues, corporate bond issues and
mortgage-backed securities.
(2) The average annual total return given is since the date closest to the
inception of the fund.

2
<PAGE> 32
--------------------------------
AIM V.I. DIVERSIFIED INCOME FUND
--------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.60% of average net assets.

PORTFOLIO MANAGERS

- - Robert G. Alley, Senior Portfolio Manager, who has been responsible for the
fund since 1993 and has been associated with the advisor and/or its affiliates
since 1992.

- - John L. Pessarra, Senior Portfolio Manager, who has been responsible for the
fund since 1993 and has been associated with the advisor and/or its affiliates
since 1990.

- - Carolyn L. Gibbs, Senior Portfolio Manager, who has been responsible for the
fund since 1995 and has been associated with the advisor and/or its affiliates
since 1992.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

The fund ordinarily effects orders to purchase and redeem shares received at the
fund's next computed net asset value after it receives an order. Life insurance
companies participating in the fund serve as the fund's designee for receiving
orders of separate accounts that invest in the fund.

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 33
--------------------------------
AIM V.I. DIVERSIFIED INCOME FUND
--------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

(a) Total returns are not annualized for periods less than one year.
(b) Ratios are based on average net assets of $96,686,554.
(c) Annualized.
(d) After fee waivers and/or expense reimbursement. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.03% and 1.69% (annualized) for January 31, 1995 and 1994, respectively.
(e) After fee waivers and/or expense reimbursement. Ratios of net investment
income to average net assets prior to fee waivers and/or expense
reimbursements were 7.95% and 6.14% (annualized) for January 31, 1995 and
1994, respectively.

4
<PAGE> 34
--------------------------------
AIM V.I. DIVERSIFIED INCOME FUND
--------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- ------------------------------------
AIM V.I. Diversified Income Fund
SEC 1940 Act file number: 811-7452
- ------------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 35

AIM V.I. GLOBAL UTILITIES FUND

------------------------------------------------------------------------

AIM V.I. Global Utilities Fund seeks to achieve a high level of current
income and secondarily, growth of capital, by investing primarily in the
common and preferred stocks of public utility companies (either domestic
or foreign).

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 36

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 37
------------------------------
AIM V.I. GLOBAL UTILITIES FUND
------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objectives are to achieve a high level of current income
and secondarily, growth of capital, by investing primarily in the common and
preferred stocks of public utility companies (either domestic or foreign).

The fund seeks to meet these objectives by investing, normally, at least 65%
of its total assets in securities of domestic and foreign public utility
companies. Public utility companies include companies that provide electricity,
natural gas, water and sanitary services to the public, telephone or telegraph
companies, and other companies providing public communications services. The
fund may also invest in developing utility technology companies and in holding
companies that derive a substantial portion of their revenues from utility
related activities.

The fund may invest up to 80% of its total assets in foreign securities,
including securities of issuers located in developing countries. Developing
countries are those countries that are in the initial stages of their industrial
cycles. The fund will normally invest in the securities of companies located in
at least four different countries, including the United States. The fund may
invest up to 25% of its total assets in convertible securities of public utility
companies. The fund may also invest up to 25% of its total assets in public
utility company, non-convertible bonds. The fund may invest up to 10% of its
total assets in lower-quality debt securities, i.e., "junk bonds."

The portfolio managers focus on securities that have favorable prospects for
high current income and growth of capital. The portfolio managers consider
whether to sell a particular security when any of those factors materially
changes.

The fund is a non-diversified portfolio. With respect to 50% of its total
assets, it is permitted to invest more than 5% of its assets in the securities
of any one issuer.

In anticipation of or in response to adverse market conditions, the fund may
invest up to 100% of its total assets in securities of U.S. issuers.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund and that the income you may receive from the fund may vary. The value of
your investment in the fund will go up and down with the prices of the
securities in which the fund invests. The prices of equity securities change in
response to many factors, including the historical and prospective earnings of
the issuer, the value of its assets, general economic conditions, interest
rates, investor perceptions and market liquidity. Interest rate increases may
cause the price of a debt security to decrease; the longer a debt security's
duration, the more sensitive it is to this risk. The issuer of a security may
default or otherwise be unable to honor a financial obligation.

The value of the fund's shares is particularly vulnerable to factors affecting
the utility company industry, such as substantial economic, operational or
regulatory changes. Such changes may, among other things, increase compliance
costs or the costs of doing business. In addition, increases in fuel, energy and
other prices have historically limited the growth potential of utility
companies. Because the fund focuses its investments in the public utility
industry, the value of your shares may rise and fall more than the value of
shares of a fund that invests more broadly.

The prices of foreign securities may be further affected by other factors,
including:

- - Political and economic conditions--The value of the fund's foreign investments
may be adversely affected by political and social instability in countries and
by changes in economic or taxation policies in those countries.

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

Because it is non-diversified, the fund may invest in fewer issuers than if it
were a diversified fund. The value of the fund's shares may vary more widely,
and the fund may be subject to greater investment and credit risk, than if the
fund invested more broadly.

1
<PAGE> 38
------------------------------
AIM V.I. GLOBAL UTILITIES FUND
------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

The bar chart and table shown below provide an indication of the risks of
investing in the fund. The fund's past performance is not necessarily an
indication of its future performance. The bar chart and performance table shown
does not reflect charges at the separate account level. If they did, the
performance shown would be lower.

<TABLE>
<CAPTION>
Annual
Year Ended Total
December 31 Return
- ----------- ------

During the periods shown in the bar chart, the highest quarterly return was
12.15% (quarter ended December 31, 1998 and the lowest quarterly return was
- -4.98% (quarter ended September 30, 1998.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(for the periods ending SINCE INCEPTION
December 31, 1998) 1 YEAR INCEPTION DATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AIM V.I. Global Utilities Fund 16.49% 15.44% 05/02/94
Lipper Utility Fund Index(1) 18.40% 15.80%(2) 04/30/94(2)
- -----------------------------------------------------------------------------------------------------
</TABLE>

(1) Lipper Utility Fund Index measures the performance of the 30 largest
utilities funds charted by Lipper Analytical Services, Inc., an independent
mutual funds performance monitor.
(2) The average annual total return given is since the date closest to the
inception date of the fund.

2
<PAGE> 39
------------------------------
AIM V.I. GLOBAL UTILITIES FUND
------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.65% of average net assets.

PORTFOLIO MANAGERS

- - Claude C. Cody, IV, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Robert G. Alley, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Craig A. Smith, Senior Portfolio Manager, who has been responsible with the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1989.

- - Carolyn L. Gibbs, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - Meggan M. Walsh, Portfolio Manager, who has been responsible for the fund
since 1998 and has been associated with the advisor and/or its affiliates
since 1991.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 40
------------------------------
AIM V.I. GLOBAL UTILITIES FUND
------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED DECEMBER 31, JANUARY 31,
1998 1997 1996 1995 1995
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.26 $ 12.55 $ 11.64 $ 9.69 $10.00
Income from investment operations:
Net investment income 0.35 0.32 0.40 0.29 0.27
Net gains (losses) on securities (both
realized and unrealized) 2.15 2.40 0.99 1.98 (0.33)
Total from investment operations 2.50 2.72 1.39 2.27 (0.06)
Less distributions:
Dividends from net investment income (0.28) -- (0.41) (0.31) (0.25)
Distributions from net realized gains (0.12) (0.01) (0.07) (0.01) --
Total distributions (0.40) (0.01) (0.48) (0.32) (0.25)
Net asset value, end of period $ 17.36 $ 15.26 $ 12.55 $11.64 $ 9.69
Total return(a) 16.49% 21.63% 12.07% 23.73% (0.56)%
- ---------------------------------------------------------------------------------------------------------
Ratios/supplemental data:
- ---------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $28,134 $22,079 $13,576 $8,394 $2,958
Ratio of expenses to average net assets 1.11%(b) 1.28% 1.40%(c) 1.47%(c)(d) 1.31%(d)(e)
Ratio of investment income to average net assets 2.46%(b) 2.81% 3.56%(c) 3.76%(c)(d) 4.39%(d)(e)
Portfolio turnover rate 32% 28% 47% 58% 69%
- ---------------------------------------------------------------------------------------------------------
</TABLE>

(a) Total returns are not annualized for periods less than one year.
(b) Ratios are based on average net assets of $24,844,324.
(c) After fee waivers and/or expense reimbursements. Ratios of expenses and net
investment income to average net assets prior to fee waivers and/or expense
reimbursements were 1.55%, 3.42% for 1996 and 2.44% (annualized) and 2.79%
(annualized) for 1995.
(d) Annualized.
(e) After fee waivers and/or expense reimbursements. Ratios of expenses and net
investment income to average net assets prior to fee waivers and/or expense
reimbursements were 2.80% (annualized) and 2.90% (annualized), respectively.

4
<PAGE> 41
------------------------------
AIM V.I. GLOBAL UTILITIES FUND
------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. Global Utilities Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 42

AIM V.I. GOVERNMENT
SECURITIES FUND

------------------------------------------------------------------------

AIM V.I. Government Securities Fund seeks to achieve a high level of
current income consistent with reasonable concern for safety of
principal by investing in debt securities issued, guaranteed or
otherwise backed by the United States Government.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 43

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 44
-----------------------------------
AIM V.I. GOVERNMENT SECURITIES FUND
-----------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve a high level of current income
consistent with reasonable concern for safety of principal by investing in debt
securities issued, guaranteed or otherwise backed by the United States
Government.

The fund may invest in securities of all maturities issued or guaranteed by
the U.S. Government or its agencies and instrumentalities, including: (1) U.S.
Treasury obligations, and (2) obligations issued or guaranteed by U.S.
Government agencies and instrumentalities and supported by (a) the full faith
and credit of the U.S. Treasury, (b) the right of the issuer to borrow from the
U.S. Treasury, or (c) the credit of the agency or instrumentality. The fund
intends to maintain a dollar-weighted average portfolio maturity of between
three and ten years. The fund may invest in high-coupon U.S. Government agency
mortgage-backed securities, which consist of interests in underlying mortgages
with maturities of up to thirty years. The fund may also invest up to 20% of its
assets in foreign securities.

The portfolio managers focus on securities that they believe have favorable
prospects for current income, consistent with their concern for safety of
principal. The portfolio managers consider whether to sell a particular security
when any of those factors materially changes.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund and that the income you may receive from your investment may vary. The
value of your investment in the fund will go up and down with the prices of the
securities in which the fund invests. Debt securities are particularly
vulnerable to credit risk and interest rate fluctuations. Interest rate
increases can cause the price of a debt security to decrease. The longer a debt
security's duration, the more sensitive it is to this risk. The prices of
high-coupon U.S. Government agency mortgage-backed securities fall more slowly
when interest rates rise than do prices of other fixed-rate securities. Some of
the securities purchased by the fund are not guaranteed by the U.S. Government.
The agency or instrumentality issuing such security may default or otherwise be
unable to honor a financial obligation.

High-coupon U.S. Government agency mortgage-backed securities provide a higher
coupon at the time of purchase than current prevailing market interest rates.
The fund may purchase such securities at a premium. If the securities experience
a faster principal prepayment rate than expected, both the market value of, and
income from, such securities will decrease.

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 45
-----------------------------------
AIM V.I. GOVERNMENT SECURITIES FUND
-----------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

ANNUAL TOTAL RETURNS

The following chart shows changes in the performance of the fund's shares from
year to year.
[GRAPH]

<TABLE>
<CAPTION>
Annual
Year Ended Total
December 31 Return
- ----------- ------

During the periods shown in the bar chart, the highest quarterly return was
5.48% (quarter ended June 30, 1995) and the lowest quarterly return was -2.82%
(quarter ended March 31, 1994.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(for the periods ended SINCE INCEPTION
December 31, 1998) 1 YEAR 5 YEARS INCEPTION DATE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Government Securities Fund 7.73% 5.80% 5.76% 05/05/93
Lehman Intermediate Government Bond Index(1) 8.49% 6.45% 6.31%(2) 04/30/93(2)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Lehman Intermediate Government Bond Index is an unmanaged composite
generally considered representative of intermediate publicly issued debt of
U.S. Government agencies and quasi-federal corporations, and corporate debt
guaranteed by the U.S. Government.
(2) The average annual total return given is since the date closest to the
inception date of the fund.

2
<PAGE> 46
-----------------------------------
AIM V.I. GOVERNMENT SECURITIES FUND
-----------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.50% of the fund's average net assets.

PORTFOLIO MANAGERS

- - Karen Dunn Kelley, Senior Portfolio Manager, who has been responsible for the
fund since 1993 and has been associated with the advisor and/or its affiliates
since 1989.

- - Marcel S. Theriot, Portfolio Manager, who has been responsible for the fund
since 1998 and has been associated with the advisor and/or its affiliates
since 1994.

- - Scot W. Johnson, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1994.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 47
-----------------------------------
AIM V.I. GOVERNMENT SECURITIES FUND
-----------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED DECEMBER 31, JANUARY 31,
1998 1997 1996 1995 1995 1994
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.67 $ 9.87 $ 10.17 $ 9.39 $ 10.24 $ 10.00
Income from investment operations:
Net investment income 0.63(a) 0.59 0.58 0.54 0.53 0.38
Net gains (losses) on securities (both
realized and unrealized) 0.20 0.22 (0.35) 0.74 (0.88) 0.10
Total from investment operations 0.83 0.81 0.23 1.28 (0.35) 0.48
Less distributions:
Dividends from net investment income (0.32) (0.01) (0.53) (0.50) (0.50) (0.24)
Net asset value, end of period $ 11.18 $ 10.67 $ 9.87 $ 10.17 $ 9.39 $ 10.24
Total return(b) 7.73% 8.16% 2.29% 13.84% (3.42)% 4.78%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/supplemental data:
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $58,185 $33,800 $24,527 $19,545 $12,887 $10,643
Ratio of expenses (exclusive of interest
expense) to average net assets 0.76%(c) 0.87% 0.91% 1.19%(d) 0.95%(e) 1.00%(d)(e)
Ratio of net investment income to average net
assets 5.70%(c) 5.85% 5.80% 5.78%(d) 5.51%(f) 4.74%(d)(f)
Portfolio turnover rate 78% 66% 32% 41% 29% 0%
- -----------------------------------------------------------------------------------------------------------------------
Borrowings for the period:
Amount of debt outstanding at end of period
(000s omitted) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Average amount of debt outstanding during the
period (000s omitted)(g) $ 940 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Average number of shares outstanding during the
period (000s omitted)(g) 3,992 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Average amount of debt per share during the
period $0.2355 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Calculated using average shares outstanding.
(b) Total returns are not annualized for periods less than one year.
(c) Ratios are based on average net assets of $44,391,219.
(d) Annualized.
(e) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.10% and 1.80% (annualized) for January 1995 and 1994, respectively.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income to average net assets prior to fee waivers and/or expense
reimbursements were 5.35% and 3.94% (annualized) for January 1995 and 1994,
respectively.
(g) Averages computed on a daily basis.

4
<PAGE> 48
-----------------------------------
AIM V.I. GOVERNMENT SECURITIES FUND
-----------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- ------------------------------------
AIM V.I. Government Securities Fund
SEC 1940 Act file number: 811-7452
- ------------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 49

AIM V.I. GLOBAL GROWTH
AND INCOME FUND

------------------------------------------------------------------------

Shares of the fund are currently offered only to insurance company
separate accounts.
AIM V.I. Global Growth and Income Fund seeks to provide long-term growth
of capital together with current income.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please
read it before investing and keep it
for future reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 50

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND
1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Advisor Arrangements 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 51
--------------------------------------
AIM V.I. GLOBAL GROWTH AND INCOME FUND
--------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objectives are long-term growth of capital together with
current income.

The fund seeks to meet this objectives by investing at least 65% of its total
assets in a combination of blue-chip equity securities and high-quality
government bonds of U.S. and foreign issuers. "Blue chip" equity securities are
those which (1) offered, during the issuer's most recent fiscal year, an above
average dividend yield relative to the latest reported dividend yield on the
Morgan Stanley Capital International World Index, and (2) are issued by a
company with total equity market capitalization of at least $1 billion.
High-quality government bonds are rated within one of the two highest ratings
categories of Moody's Investors Service, Inc. or Standard & Poor's Ratings
Services, or are deemed by the portfolio managers to be of comparable quality.

The fund may invest up to 35% of its total assets in other equity securities,
convertible securities and government and corporate debt securities that are
investment grade, i.e., rated within one of the four highest ratings categories
of Moody's or S&P. The fund may purchase debt obligations issued or guaranteed
by the U.S. or foreign governments, including foreign states, provinces or
municipalities, or their agencies, authorities or instrumentalities and debt
obligations of supranational organizations, such as the World Bank. The fund
will normally invest in securities of issuers in at least three countries,
including the United States. However, the fund may not invest more than 40% of
its assets in securities of issuers in any one country, other than the U.S. The
fund may invest in the securities of issuers located in developing countries,
i.e., those that are in the initial stages of their industrial cycles. The fund
may invest up to 100% of its total assets in either equity or debt securities in
response to general economic changes and market conditions around the world.

The portfolio managers allocate assets among securities of countries and in
currency denominations where opportunities for meeting the fund's investment
objectives are expected to be the most attractive. The portfolio managers
consider whether to sell a particular security when opportunities for meeting
the fund's investment objectives are no longer considered attractive.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

These factors may affect the prices of securities issued by foreign companies
located in developing or emerging market countries more than those in countries
with mature economies. For example, many developing countries have, in the past,
experienced high rates of inflation or sharply devalued their currencies against
the U.S. dollar, thereby causing the value of investments in companies located
in those countries to decline. Transaction costs are often higher in developing
countries and there may be delays in settlement procedures.

1
<PAGE> 52
--------------------------------------
AIM V.I. GLOBAL GROWTH AND INCOME FUND
--------------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

FUND MANAGEMENT
- --------------------------------------------------------------------------------

ADVISOR ARRANGEMENTS

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor and
is responsible for its day-to-day management including the fund's investment
decisions and the execution of securities transactions. The advisor is located
at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. INVESCO Asset
Management Limited (the subadvisor), serves as the fund's subadvisor, is located
at 11 Devonshire Square, London, England EC2M4YR. The subadvisor is responsible
for providing the advisor with economic and market research, securities analysis
and investment recommendations with respect to the fund. Both entities are
affiliated.

ADVISOR COMPENSATION

The advisor is to receive compensation from the fund calculated at the annual
rate of 1.00% of the fund's daily average net assets.

PORTFOLIO MANAGERS

The advisor uses a team approach to investment management. The individual
members of the team who are primarily responsible for the day-to-day management
of the fund's portfolio, are

- - Paul Griffiths, Portfolio Manager, who has been responsible for the fund since
1998 and has been associated with the advisor and/or its affiliates since
1994.

- - Michael Lindsell, Portfolio Manager, who has been responsible for the fund
since 1998 and has been associated with the advisor and/or its affiliates
since 1992.

- - John Nadell, Portfolio Manager, who has been responsible for the fund since
1998 and has been associated with the advisor and/or its affiliates since
1994.

2
<PAGE> 53
--------------------------------------
AIM V.I. GLOBAL GROWTH AND INCOME FUND
--------------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

The fund currently offers shares only to insurance company separate accounts.
In the future, the fund may offer them to pension and retirement plans that
qualify for special federal income tax treatment.

The Board of Directors monitors for possible conflicts among separate accounts
(and will do so for plans) buying shares of the fund. A fund's net asset value
could decrease if it had to sell investment securities to pay redemption
proceeds to a separate account (or plan) withdrawing because of a conflict.

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of that
fund.

3
<PAGE> 54
--------------------------------------
AIM V.I. GLOBAL GROWTH AND INCOME FUND
--------------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

More information may be obtained free of charge upon request. The Statement of
Additional Information (SAI), a current version of which is on file with the
Securities and Exchange Commission (SEC), contains more details about the fund
and is incorporated by reference into the prospectus (is legally a part of this
prospectus). Semiannual reports to shareholders contain additional information
about the fund's investments.

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

You also can obtain copies of the fund's SAI and other information at the
SEC's Public Reference Room in Washington, DC, on the SEC's website
(http://www.sec.gov) or by sending a letter, including a duplicating fee, to the
SEC's Public Reference Section, Washington, DC 20549-6009. Please call the SEC
at 1-800-SEC-0330 for information about the Public Reference Room.

- ----------------------------------------
AIM V.I. Global Growth and Income Fund
SEC 1940 Act file number: 811-7452
- ----------------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 55

AIM V.I. GROWTH

AND INCOME FUND
------------------------------------------------------------------------

AIM V.I. Growth and Income Fund seeks to provide growth of capital with
a secondary objective of current income.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 56

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 57
-------------------------------
AIM V.I. GROWTH AND INCOME FUND
-------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's primary investment objective is growth of capital with a secondary
objective of current income.

The fund seeks to meet these objectives by investing at least 65% of its net
assets in income-producing securities, including dividend-paying common stocks
and convertible securities. The portfolio managers purchase securities of
established companies that have long-term above-average growth in earnings and
dividends, and growth companies that they believe have the potential for
above-average growth in earnings and dividends. The fund may invest up to 20% of
its total assets in foreign securities. The portfolio managers sell a particular
security when they believe the security no longer has that potential or the
capacity to generate income.

The fund may engage in active and frequent trading of portfolio securities to
achieve its investment objectives. If the fund does trade in this way, it may
incur increased transaction costs and brokerage commissions, both of which can
lower the actual return on your investment.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund and that the income you may receive from your investment may vary. The
value of your investment in the fund will go up and down with the prices of the
securities in which the fund invests. The price of equity securities change in
response to many factors, including the historical and prospective earnings of
the issuer, the value of its assets, general economic conditions, interest
rates, investor perceptions and market liquidity. The values of the convertible
securities in which the fund may invest also will be affected by market interest
rates, the risk that the issuer may default on interest or principal payments
and the value of the underlying common stock into which these securities may be
converted. Specifically, since these types of convertible securities pay fixed
interest and dividends, their values may fall if market interest rates rise and
rise if market interest rates fall. Additionally, an issuer may have the right
to buy back certain of the convertible securities at a time and at a price that
is unfavorable to the fund.

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 58
-------------------------------
AIM V.I. GROWTH AND INCOME FUND
-------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
The following chart shows changes in the performance of the fund's shares from
year to year.
[GRAPH]

<TABLE>
<CAPTION>
Annual
Year Ended Total
December 31 Return
- ----------- ------

During the periods shown in the bar chart, the highest quarterly return was
26.48% (quarter ended December 31, 1998) and the lowest quarterly return was
- -11.76% (quarter ended September 30, 1998.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- -----------------------------------------------------------------------------------------------------------------
(for the periods ended SINCE INCEPTION
December 31, 1998) 1 YEAR INCEPTION DATE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AIM V.I. Growth and Income Fund 27.68% 22.49% 05/02/94
Standard & Poor's 500 Index(1) 28.60% 26.66%(2) 04/30/93(2)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>

2
<PAGE> 59
-------------------------------
AIM V.I. GROWTH AND INCOME FUND
-------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.61% of the fund's average net assets.

PORTFOLIO MANAGERS

- - Lanny H. Sachnowitz, Senior Portfolio Manager, who has been responsible for
the fund since 1994, and has been associated with the advisor and/or its
affiliates since 1987.

- - Brant H. DeMuth, Portfolio Manager, who has been responsible for the fund
since 1998, and has been associated with the advisor and/or its affiliates
since 1996. From 1992 to 1996, Mr. DeMuth was portfolio manager for Colorado
Public Employee Retirement Association.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 60
-------------------------------
AIM V.I. GROWTH AND INCOME FUND
-------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED DECEMBER 31, JANUARY 31,
1998 1997 1996 1995 1995
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.87 $ 15.03 $ 12.68 $ 9.98 $10.00
Income from investment operations:
Net investment income 0.26(a) 0.13 0.16 0.14 0.11
Net gains (losses) on securities (both
realized and unrealized) 4.95 3.74 2.36 3.11 (0.02)
Total from investment operations 5.21 3.87 2.52 3.25 0.09
Less distributions:
Dividends from net investment income (0.09) (0.01) (0.14) (0.14) (0.11)
Distributions from net realized gains (0.24) (0.02) (0.03) (0.41) --
Total distributions (0.33) (0.03) (0.17) (0.55) (0.11)
Net asset value, end of period $ 23.75 $ 18.87 $ 15.03 $ 12.68 $ 9.98
Total return(b) 27.68% 25.72% 19.95% 32.65% 0.90%
- ---------------------------------------------------------------------------------------------------------------------
Ratios/supplemental data:
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $1,262,059 $639,113 $209,332 $38,567 $7,380
Ratio of expenses to average net assets 0.65%(c) 0.69% 0.78% 0.78%(d) 1.07%(d)(e)
Ratio of net investment income to average net
assets 1.34%(c) 1.15% 2.05% 1.92%(d) 1.95%(d)(e)
Portfolio turnover rate 140% 135% 148% 145% 96%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Calculated using average shares outstanding.
(b) Total returns are not annualized for periods less than one year.
(c) Ratios are based on average net assets of $905,305,521.
(d) Annualized.
(e) After fee waivers and/or expense reimbursements. Ratios of expenses and net
investment income to average net assets prior to fee waivers and/or expense
reimbursements were 1.72% (annualized) and 1.30% (annualized), respectively.

4
<PAGE> 61
-------------------------------
AIM V.I. GROWTH AND INCOME FUND
-------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. Growth and Income Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 62

AIM V.I. HIGH YIELD FUND

------------------------------------------------------------------------

AIM V.I. High Yield Fund seeks to achieve a high level of current
income.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 63

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 2

Pricing of Shares 2

Taxes 2

Dividends and Distributions 2

FINANCIAL HIGHLIGHTS 3
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 64
------------------------
AIM V.I. HIGH YIELD FUND
------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve a high level of current income.
The fund's investment objective may be changed by the fund's Board of Directors
without shareholder approval.

The fund seeks to meet this objective by investing at least 65% of the value
of its assets in publicly traded, lower-quality debt securities, i.e., "junk
bonds." The fund will primarily invest in junk bonds rated B or above by Moody's
Investors Services, Inc. or Standard & Poor's Rating Services or deemed by the
portfolio managers to be of comparable quality. The fund will invest at least
80% of its total assets in debt securities, including convertible debt
securities and/or cash or cash equivalents. The fund may also invest in
preferred stock. The fund may invest up to 25% of its total assets in foreign
securities.

Although the portfolio managers focus on debt securities that they believe
have favorable prospects for high current income, they also consider the
possibility of growth of capital of the security. The portfolio managers
consider whether to sell a particular security when any of those factors
materially changes.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

Compared to higher-quality debt securities, junk bonds involve greater risk of
default or price changes due to changes in the credit quality of the issuer
because they are generally unsecured and may be subordinated to other creditors
claims. The value of junk bonds often fluctuates in response to company,
political or economic growth developments and can decline significantly over
short periods of time or during periods of general or regional economic
difficulty. During those times, the bonds could be difficult to value or to sell
at a fair price. Credit ratings on junk bonds do not necessarily reflect their
actual market risk.

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 65
------------------------
AIM V.I. HIGH YIELD FUND
------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

The advisor is to receive a fee from the fund calculated at the annual rate of
0.625% of the first $200 million of average daily net assets, 0.55% of the next
$300 million of average daily net assets, 0.50% of the next $500 million of
average daily net assets and 0.45% of average daily net assets over $1 billion.

PORTFOLIO MANAGERS

- - John L. Pessarra, Senior Portfolio Manager, who has been responsible for the
fund since 1998, and has been associated with the advisor and/or its
affiliates since 1990.

- - Kevin E. Rogers, Senior Portfolio Manager, who has been responsible for the
fund since 1998, and has been associated with the advisor and/or its
affiliates since 1991.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

2
<PAGE> 66
------------------------
AIM V.I. HIGH YIELD FUND
------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1,
THROUGH
DECEMBER 31, 1998
- -------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.00
Income from investment operations:
Net investment income 0.39
Net gains (losses) on securities (both
realized and unrealized) (1.15)
Total from investment operations (0.76)
Less dividends from net investment income (0.40)
Net asset value, end of period $ 8.84
Total return(a) (7.61)%
- -------------------------------------------------------------------------------
Ratios/supplemental data:
- -------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $ 7,966
Ratio of expenses to average net assets(b) 1.13%(c)
Ratio of net investment income to average net
assets(d) 9.75%(c)
Portfolio turnover rate 39%
- -------------------------------------------------------------------------------
</TABLE>

(a) Total return is not annualized.
(b) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
2.50% (annualized).
(c) Ratios are based on average net assets of $4,940,917.
(d) After fee waivers and/or expense reimbursements. Ratio of net investment
income to average net assets prior to fee waivers and/or expense
reimbursement was 8.36% (annualized).

3
<PAGE> 67
------------------------
AIM V.I. HIGH YIELD FUND
------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. High Yield Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 68

AIM V.I. INTERNATIONAL
EQUITY FUND

------------------------------------------------------------------------

AIM V.I. International Equity Fund seeks to provide long-term growth of
capital by investing in a diversified portfolio of international equity
securities whose issuers are considered to have strong earnings
momentum.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 69

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 70
----------------------------------
AIM V.I. INTERNATIONAL EQUITY FUND
----------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to provide long-term growth of capital by
investing in a diversified portfolio of international equity securities whose
issuers are considered to have strong earnings momentum.

The fund seeks to meet this objective by investing at least 70% of its total
assets in marketable equity securities of foreign companies that are listed on a
recognized foreign securities exchange or traded in a foreign over-the-counter
market. The fund will normally invest in companies located in at least four
countries outside of the United States, emphasizing investment in companies in
the developed countries of Western Europe and the Pacific Basin. The fund may
invest up to 20% of its total assets in securities of issuers located in
developing countries, i.e., those that are in the initial stages of their
industrial cycles. The fund may invest up to 20% of its total assets in
securities exchangeable for or convertible into equity securities of foreign
companies.

The portfolio managers focus on companies that have experienced above-average,
long-term growth in earnings and have strong prospects for future growth. In
selecting countries in which the fund will invest, the portfolio managers also
consider such factors as the prospect for relative economic growth among
countries or regions, economic or political conditions, currency exchange
fluctuations, tax considerations and the liquidity of a particular security. The
portfolio managers consider whether to sell a particular security when any of
those factors materially changes.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

The prices of foreign securities may be further affected by other factors,
including:

- - Currency exchange rates--The dollar value of the fund's foreign investment
will be affected by changes in the exchange rates between the dollar and the
currencies in which those investments are traded.

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 71
----------------------------------
AIM V.I. INTERNATIONAL EQUITY FUND
----------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Annual
Year Ended Total
December 31 Return
- ----------- ------

During the periods shown in the bar chart, the highest quarterly return was
14.36% (quarter ended March 31, 1998 and the lowest quarterly return was -13.81%
(quarter ended September 30, 1998.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(for the periods SINCE INCEPTION
ended December 31, 1998) 1 YEAR 5 YEARS INCEPTION DATE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. International Equity Fund 15.49% 11.33% 13.36% 05/05/93
Morgan Stanley Capital International EAFE Index(1) 20.00% 9.19% 9.56%(2) 04/30/93(2)
- ---------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Morgan Stanley Capital International Europe, Australasia and Far East
Index measures performance of global stock markets in 20 developed
countries.
(2) The average annual total return given is since the date closest to the
inception date of the fund.

2
<PAGE> 72
----------------------------------
AIM V.I. INTERNATIONAL EQUITY FUND
----------------------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.75% of average net assets.

PORTFOLIO MANAGERS

- - A. Dale Griffin, III, Senior Portfolio Manager, who has been responsible for
the fund since 1992 and has been associated with the advisor and/or its
affiliates since 1989.

- - Clas G. Olsson, Senior Portfolio Manager, who has been responsible for the
fund since 1997 and has been associated with the advisor and/or its affiliates
since 1994.

- - Barrett K. Sides, Senior Portfolio Manager, who has been responsible for the
fund since 1995 and has been associated with the advisor and/or its affiliates
since 1990.

- - Jason T. Holzer, Portfolio Manager, who has been responsible for the fund
since 1999 and has been associated with the advisor and/or its affiliates
since 1996. From 1994 to 1996 he was an associate with JMB Realty.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

The fund generally distributes long-term and short-term capital gains (including
any net gains from foreign currency transactions), if any, annually to separate
accounts or participating life insurance companies.

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

3
<PAGE> 73
----------------------------------
AIM V.I. INTERNATIONAL EQUITY FUND
----------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED DECEMBER 31, JANUARY 31,
1998 1997 1996 1995 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.15 $ 16.36 $ 13.66 $ 11.03 $ 12.49 $ 10.00
Income from investment operations:
Net investment income (loss) 0.15 0.10 0.07 0.07 0.06 --
Net gains (losses) on securities (both
realized and unrealized) 2.50 1.03 2.67 2.58 (1.49) 2.49
Total from investment operations 2.65 1.13 2.74 2.65 (1.45) 2.49
Less distributions:
Dividends from net Investment Income (0.16) (0.08) (0.04) (0.02) (0.03) --
Distributions from net realized gains -- (0.28) -- -- -- --
Total distributions (0.16) (0.36) (0.04) (0.02) (0.03) --
Net asset value, end of period $ 19.62 $ 17.13 $ 16.36 $ 13.66 $ 11.03 $ 12.49
Total return(a) 15.49% 6.94% 20.05% 20.04% (11.48)% (24.90)%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/supplemental data:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $240,314 $211,023 $165,738 $ 82,257 $55,019 $23,533
Ratio of expenses to average net assets(b) 0.91%(b) 0.93% 0.96% 1.15%(c) 1.27%(d) 1.98%(c)(d)
Ratio of net investment income (loss) to average
net assets 0.80%(b) 0.68% 0.78% 0.75%(c) 0.60%(e) (0.15)%(c)(e)
Portfolio turnover rate 76% 57% 59% 67% 64% 26%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Total returns are not annualized for periods less than one year.
(b) Ratios are based on average net assets of $232,550,286.
(c) Annualized.
(d) After fee waivers and/or expense reimbursements, Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.28% and 3.06% (annualized), for January 1995 and 1994 respectively.
(e) After fee waivers and/or expense reimbursements. Ratio of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursement were 0.59% and (1.23)% for 1995 and 1994, respectively.

4
<PAGE> 74
----------------------------------
AIM V.I. INTERNATIONAL EQUITY FUND
----------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. International Equity Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 75

AIM V.I. TELECOMMUNICATIONS FUND

------------------------------------------------------------------------

Shares of the fund are currently offered only to insurance company
separate accounts. AIM V.I. Telecommunications Fund seeks to provide
long-term growth of capital.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 76

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND
1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

FUND MANAGEMENT 2
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 2

Advisor Compensation 2

Portfolio Managers 2

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 3

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 77
--------------------------------
AIM V.I. TELECOMMUNICATIONS FUND
--------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is long-term growth of capital.

The fund seeks to meet this objective by investing primarily in equity
securities of companies throughout the world engaged in the development,
manufacture or sale of telecommunications services or equipment. The fund will
invest, normally, at least 65% of its total assets in common and preferred
stocks and warrants to acquire such stocks issued by telecommunications
companies. The fund considers a "telecommunications company" to be one that (1)
derives at least 50% of its revenues or earnings from telecommunications
activities, or (2) devotes at least 50% of its assets to such activities, based
on its most recent fiscal year. Such companies include those that develop,
manufacture, or sell communications services and equipment, computer and
electronic components and equipment, mobile communications, and broadcasting.
The fund may invest up to 35% of its assets in debt securities issued by
telecommunications companies and/or equity and debt securities of other
companies the portfolio managers believe will benefit from developments in the
telecommunications industry. The fund may also invest up to 5% of its total
assets in lower-quality debt securities, i.e., "junk bonds."

The fund will normally invest in the equity securities of companies located in
at least three different countries, including the United States, and may invest
a significant portion of its assets in the securities of U.S. issuers. However,
the fund will not invest more than 40% of its total assets in the securities of
issuers in any one country, other than the U.S. The fund may invest
substantially in securities denominated in one or more currencies.

The portfolio managers allocate the fund's assets among countries, sectors and
in currency denominations that are expected to provide the best opportunities
for long-term growth of capital. The portfolio managers consider whether to sell
a particular security when any of those factors materially changes.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

There is a risk that you could lose all or a portion of your investment in the
fund. The value of your investment in the fund will go up and down with the
prices of the common stocks in which the fund invests. The prices of equity
securities change in response to many factors, including the historical and
prospective earnings of the issuer of the stock, the value of its assets,
general economic conditions, interest rates, investor perceptions, and market
liquidity.

The value of the fund's shares is particularly vulnerable to factors affecting
the telecommunications industry, such as substantial government regulation.
Because the fund focuses its investments in the telecommunications industry, the
value of your fund shares may rise and fall more than the value of shares of a
fund that invests more broadly.

In addition, the prices of securities issued by foreign issuers may be further
affected by other factors, including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 78
--------------------------------
AIM V.I. TELECOMMUNICATIONS FUND
--------------------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

SEC Rules do not allow us to provide a bar chart and performance table for funds
that do not have at least a full calendar year of performance.

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor and
is responsible for its day-to-day management. The advisor is located at 11
Greenway Plaza, Suite 100, Houston, Texas 77046-1173. The advisor supervises all
aspects of the fund's operations and provides investment advisory services to
the fund, including obtaining and evaluating economic, statistical and financial
information to formulate and implement investment programs for the fund.

ADVISOR COMPENSATION

The advisor is to receive compensation from the fund calculated at the annual
rate of 1.00% of the fund's daily average net assets.

PORTFOLIO MANAGERS

- - Jonathan C. Schoolar, Senior Portfolio Manager, who has been responsible for
the fund since 1999 and has been associated with the advisor and/or its
affiliates since 1986.

- - Claude C. Cody IV, Portfolio Manager, who has been responsible for the fund
since 1999 and has been associated with the advisor and/or its affiliates
since 1992.

- - Paul A. Rogge, Senior Portfolio Manager, who has been responsible for the fund
since 1999 and has been associated with the advisor and/or its affiliates
since 1991.

- - David P. Barnard, Senior Portfolio Manager, who has been responsible for the
fund since 1999 and has been associated with the advisor and/or its affiliates
since 1982.

- - Kenneth A. Zschappel, Senior Portfolio Manager, who has been responsible for
the fund since 1999 and has been associated with the advisor and/or its
affiliates since 1990.

- - Robert M. Kippes, Senior Portfolio Manager, who has been responsible for the
fund since 1999 and has been associated with the advisor and/or its affiliates
since 1989.

- - Bradley T. Conger, Portfolio Manager, who has been responsible for the fund
since 1999 and has been associated with the advisor and/or its affiliates
since 1997. From 1993 to 1997, Mr. Conger was a member of the Goldman Sachs
international equity sales team.

2
<PAGE> 79
--------------------------------
AIM V.I. TELECOMMUNICATIONS FUND
--------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of that
fund.

3
<PAGE> 80
--------------------------------
AIM V.I. TELECOMMUNICATIONS FUND
--------------------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

More information may be obtained free of charge upon request. The Statement of
Additional Information (SAI), a current version of which is on file with the
Securities and Exchange Commission (SEC), contains more details about the fund
and is incorporated by reference into the prospectus (is legally a part of this
prospectus). Semiannual reports to shareholders contain additional information
about the fund's investments.

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- ----------------------------------
AIM V.I. Telecommunications Fund
SEC 1940 Act file number: 811-7452
- ----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 81
AIM V.I. VALUE FUND
------------------------------------------------------------------------

AIM V.I. Value Fund seeks to achieve long-term growth of capital by
investing primarily in equity securities judged by the fund's investment
advisor to be undervalued relative to the investment advisor's appraisal
of the current or projected earnings of the companies issuing the
securities, or relative to current market values of assets owned by the
companies issuing the securities or relative to the equity market
generally. Income is a secondary objective.

PROSPECTUS
MAY 3, 1999

This prospectus contains important
information. Please read it before
investing and keep it for future
reference.

As with all other mutual fund
securities, the Securities and
Exchange Commission has not approved
or disapproved these securities or
determined whether the information in
this prospectus is adequate or
accurate. Anyone who tells you
otherwise is committing a crime.

[AIM LOGO APPEARS HERE] INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 82

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE AND STRATEGIES 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PRINCIPAL RISKS OF INVESTING IN THE FUND 1
- - - - - - - - - - - - - - - - - - - - - - - - -

PERFORMANCE INFORMATION 2
- - - - - - - - - - - - - - - - - - - - - - - - -

Annual Total Returns 2

Performance Table 2

FUND MANAGEMENT 3
- - - - - - - - - - - - - - - - - - - - - - - - -

The Advisor 3

Advisor Compensation 3

Portfolio Managers 3

OTHER INFORMATION 3
- - - - - - - - - - - - - - - - - - - - - - - - -

Purchase and Redemption of Shares 3

Pricing of Shares 3

Taxes 3

Dividends and Distributions 4

FINANCIAL HIGHLIGHTS 4
- - - - - - - - - - - - - - - - - - - - - - - - -

OBTAINING ADDITIONAL INFORMATION Back Cover
- - - - - - - - - - - - - - - - - - - - - - - - -
</TABLE>

No dealer, salesperson or any other person has been authorized to give any
information or to make any representations other than those contained in this
prospectus, and you should not rely on such other information or
representations.
<PAGE> 83
-------------------
AIM V.I. VALUE FUND
-------------------

INVESTMENT OBJECTIVE AND STRATEGIES
- --------------------------------------------------------------------------------

The fund's investment objective is to achieve long-term growth of capital by
investing primarily in equity securities judged by the fund's investment advisor
to be undervalued relative to the investment advisor's appraisal of the current
or projected earnings of the companies issuing the securities, or relative to
current market values of assets owned by the companies issuing the securities or
relative to the equity market generally. Income is a secondary objective.

The fund also may invest in preferred stocks and debt instruments that have
prospects for growth of capital. The fund also may invest up to 25% of its total
assets in foreign securities.

The portfolio managers focus on undervalued equity securities of (1)
out-of-favor cyclical growth companies; (2) established growth companies that
are undervalued compared to historical relative valuation parameters; (3)
companies where there is early but tangible evidence of improving prospects that
are not yet reflected in the price of the company's equity securities; and (4)
companies whose equity securities are selling at prices that do not reflect the
current market value of their assets and where there is reason to expect
realization of this potential in the form of increased equity values. The
portfolio managers consider whether to sell a particular security when they
believe the company no longer fits into any of the above categories.

In anticipation of or in response to adverse market conditions, for cash
management purposes, or for defensive purposes, the fund may temporarily hold
all or a portion of its assets in cash, money market instrument, bonds or other
debt securities. As a result, the fund may not achieve its investment
objectives.

PRINCIPAL RISKS OF INVESTING IN THE FUND
- --------------------------------------------------------------------------------

The prices of foreign securities may be further affected by other factors,
including:

- - Markets--The securities markets of other countries are smaller than U.S.
securities markets. As a result, many foreign securities may be less liquid
and more volatile than U.S. securities.

1
<PAGE> 84
-------------------
AIM V.I. VALUE FUND
-------------------

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

The bar chart and table shown below provide an indication of the risks of
investing in the fund. The fund's past performance is not necessarily an
indication of its future performance. The bar chart and performance table shown
do not reflect charges at the separate rate account level. If they did, the
performance shown would be lower.

<TABLE>
<CAPTION>
Annual
Year Ended Total
December 31 Return
- ----------- ------

During the periods shown in the bar chart, the highest quarterly return was
27.04% (quarter ended December 31, 1998) and the lowest quarterly return was
- -12.00% (quarter ended September 30, 1998.)

PERFORMANCE TABLE

The following performance table compares the fund's performance to that of a
broad-based securities market index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------------------------------
(for the periods SINCE INCEPTION
ended December 31, 1998) 1 YEAR 5 YEARS INCEPTION DATE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Value Fund 32.41% 21.70% 21.90% 05/05/93
Standard & Poor's 500 Index(1) 28.60% 24.05% 22.60%(2) 04/30/93(2)
- --------------------------------------------------------------------------------------------------------
</TABLE>

2
<PAGE> 85
-------------------
AIM V.I. VALUE FUND
-------------------

FUND MANAGEMENT
- --------------------------------------------------------------------------------

THE ADVISOR

A I M Advisors, Inc. (the advisor) serves as the fund's investment advisor. The
advisor is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.
The advisor supervises all aspects of the fund's operations and provides
investment advisory services to the fund, including obtaining and evaluating
economic, statistical and financial information to formulate and implement
investment programs for the fund.

ADVISOR COMPENSATION

During the fund's last fiscal year ended December 31, 1998, the advisor received
compensation of 0.61% of average net assets.

PORTFOLIO MANAGERS

- - Joel E. Dobberpuhl, Senior Portfolio Manager, who has been responsible for the
fund since 1993, and has been associated with the advisor and/or its
affiliates since 1990.

- - Robert A. Shelton, Senior Portfolio Manager, who has been responsible for the
fund since 1997 and has been associated with the advisor and/or its affiliates
since 1995. From 1991 to 1995, Mr. Shelton was a financial analyst for CS
First Boston.

- - Evan G. Harrel, Senior Portfolio Manager, who has been responsible for the
fund since 1998 and has been associated with the advisor and/or its affiliates
since 1998. From 1994 to 1998, Mr. Harrel was Vice President and portfolio
manager of Van Kampen American Capital Asset Management, Inc. and portfolio
manager of various growth and equity funds.

OTHER INFORMATION
- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF SHARES

PRICING OF SHARES

TAXES

3
<PAGE> 86
-------------------
AIM V.I. VALUE FUND
-------------------

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS

The fund generally declares and pays dividends, if any, annually to separate
accounts of participating life insurance companies.

CAPITAL GAINS DISTRIBUTIONS

At the election of participating life insurance companies, dividends and
distributions are automatically reinvested at net asset value in shares of the
fund.

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the fund's
financial performance. Certain information reflects financial results for a
single fund share.

The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the fund (assuming reinvestment of all
dividends and distributions).

The table shows the financial highlights for a share of the fund outstanding
during each of the fiscal years (or periods) indicated.

This information has been audited by Tait, Weller & Baker, whose report, along
with the fund's financial statements, is included in the fund's annual report,
which is available upon request.

<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED DECEMBER 31, JANUARY 31,
1998 1997 1996 1995 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.83 $ 17.48 $ 16.11 $ 11.83 $ 12.17 $ 10.00
Income from investment operations:
Net investment income 0.09 0.08 0.30 0.11 0.10 0.02
Net gains (losses) on securities (both
realized and unrealized) 6.59 4.05 2.09 4.18 (0.35) 2.17
Total from investment operations 6.68 4.13 2.39 4.29 (0.25) 2.19
Less distributions:
Dividends from net investment income (0.13) (0.19) (0.10) (0.01) (0.09) (0.02)
Distributions from net realized gains (1.13) (0.59) (0.92) -- -- --
Total distributions (1.26) (0.78) (1.02) (0.01) (0.09) (0.02)
Net asset value, end of period $ 26.25 $ 20.83 $ 17.48 $ 16.11 $ 11.83 $ 12.17
Total return(a) 32.41% 23.69% 15.02% 36.25% (2.03)% 21.94%
- ------------------------------------------------------------------------------------------------------------------------------
Ratios/supplemental data:
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $1,221,384 $690,841 $369,735 $257,212 $109,257 $38,255
Ratio of expenses to average net assets 0.66%(b) 0.70% 0.73% 0.75%(c) 0.82% 1.00%(c)(d)
Ratio of net investment income to average net
assets 0.68%(b) 1.05% 2.00% 1.11%(c) 1.17% 0.51%(c)(d)
Portfolio turnover rate 100% 127% 129% 145% 143% 87%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Total returns are not annualized for periods less than one year.
(b) Ratios are based on average net assets of $907,594,296.
(c) Annualized.
(d) After fee waivers and/or expense reimbursements. Ratios of expenses and net
investment income to average net assets prior to fee waivers and/or expense
reimbursements were 1.35% (annualized) and 0.16% (annualized), respectively.

4
<PAGE> 87
-------------------
AIM V.I. VALUE FUND
-------------------

OBTAINING ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

If you wish to obtain free copies of the fund's current SAI, please send a
written request to A I M Distributors, Inc., 11 Greenway Plaza, Suite 100,
Houston, Texas 77046-1173 or call (800) 410-4246.

- -----------------------------------
AIM V.I. Value Fund
SEC 1940 Act file number: 811-7452
- -----------------------------------

[AIM LOGO APPEARS HERE] www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--