AMERICAN SEPARATE ACCOUNT NO 3, 497, 1995-09-01

AMERICAN SEPARATE ACCOUNT NO 3
497, 1995-09-01

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SUPPLEMENT, DATED AUGUST 28, 1995, TO PROSPECTUS, DATED MAY 1, 1995,
 
                 FOR
 
THE AMERICAN SEPARATE ACCOUNT NO. 3
VARIABLE UNIVERSAL LIFE INSURANCE POLICY
 
The discussion on page 18 of the Prospectus regarding the Calvert Responsibly
Invested Balanced Portfolio (the "Portfolio") is supplemented as set forth
below. Under the Policies, Policyowners may allocate account values to the
Calvert Responsibly Invested Balanced Fund of the Separate Account, which
invests in shares of the Portfolio.
 
 
Calvert Asset Management Company, Inc., the Adviser to the Portfolio, has
notified American Life that it anticipates annual expenses of the Portfolio
for 1995 will exceed .85% of average net assets. Expenses constituted 0.80% of
the average net assets of the Portfolio for 1994 and .93% of the average net
assets of the Portfolio for the first six months of 1995.
 
 ...............................................................................
 
                                       THE AMERICAN LIFE INSURANCE COMPANY OF
                                       NEW YORK