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Filed pursuant to Rule 497(e)
File No. 33-76582
SUPPLEMENT TO PROSPECTUS
FOR
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
SEPARATE ACCOUNT 1
PROSPECTUS DATED MAY 1, 1996
The Prospectus dated May 1, 1996 for individual variable annuity
contracts offered by Western-Southern Life Assurance Company Separate Account 1
is amended and supplemented as follows:
1. "FREE" AMOUNTS. This section, appearing at page 19 of the Prospectus,
discloses that withdrawals of 10% of any Purchase Payment (to the extent
not already withdrawn) may be made without surrender charge in each
Contract year from two through seven. That disclosure is amended to allow
such withdrawals to be made also in the first year of the Contract. After
seven years, any portion of a Purchase Payment not previously withdrawn may
be withdrawn in full without surrender charge.
2. INDIVIDUAL RETIREMENT ANNUITIES. This section, appearing at page 26
of the Prospectus, states, in its second paragraph, that the maximum
contribution to a spousal individual retirement account is the lesser of
$2250 or 100% of compensation. That disclosure is amended to reflect
changes in the Internal Revenue Code that increase the maximum permissible
contribution to an amount that is the lesser of $4000 or 100% of
compensation.
3. QUALIFIED CONTRACTS AND QUALIFIED PLANS. This section, appearing at
pages 24 to 27 of the Prospectus, is supplemented by the addition of the
following disclosure regarding Savings Incentive Match Plans for
Employees:
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE) - Employers may
establish Savings Incentive Match Plans for Employees as defined under
Section 408(p) of the Code. Employers may establish individual retirement
annuities for employee salary deferral contributions and employer
contributions. Employees who have earned or expect to earn over $5000
annually, may defer the lesser of $6000 (indexed annually) or 100% of
earned income through a salary deferral arrangement. Employee salary
deferral arrangements are excluded from federal income taxes and also may
be excluded from state taxes. The employer is required to make a company
contribution based on one of two schedules. The schedules are either a
dollar for dollar match based on the employee salary deferral up to a
maximum of 3% or make a 2% nonelective contribution based on compensation
(which may not exceed $160,000 in 1997) to all eligible employees.
Employer contributions may not exceed $6000. Employers sponsoring SIMPLE
plans may not maintain additional qualified retirement plans. For certain
individuals, there are adverse tax consequences applied to distributions
taken in the first two years of participation.
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4. ADMINISTRATOR. Information regarding the Administrator of the VI
Trust and the SA Trust, appearing at pages 10 and 43 of the Prospectus, is
amended to disclose that, effective December 1, 1996, Signature Financial
Services, Inc. ceased providing administrative and fund accounting
services to the Trusts and that Investors Bank & Trust Company ("IBT"),
the Custodian for the Trusts (see "Custodian" at page 44 of the
Prospectus), began providing such services immediately upon the
termination of Signature. IBT provides the same services previously
supplied by Signature. Although its fee structure is higher than
Signature's, the increase will not affect the expenses being paid by
Contract Owners owing to existing agreements under which Touchstone
Advisors, Inc., as Sponsor, has agreed to reimburse the Trusts for total
expenses exceeding the Expense Caps (as defined in the Prospectus). This
commitment remains in effect at least until March 31, 1998. For
information regarding the Expense Caps, see "Portfolio Expenses" beginning
at page 3 of the Prospectus and "Sponsor" at page 44 of the Prospectus.
This Supplement is dated January 1, 1997.
