<PAGE> 1
Filed pursuant to Rule 497(e)
File No. 33-79906
SUPPLEMENT TO PROSPECTUS
FOR
WESTERN-SOUTHERN LIFE ASSURANCE COMPANY
SEPARATE ACCOUNT 2
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 2
is amended and supplemented as follows:
1. INDIVIDUAL RETIREMENT ANNUITIES. This section, appearing at
page 22 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.
2. QUALIFIED CONTRACTS AND QUALIFIED PLANS. This section,
appearing at pages 21 to 25 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.
3. ADMINISTRATOR. Information regarding the Administrator of
the VI Trust and the SA Trust, appearing at pages 9 and 40 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
40 of the Prospectus), began providing such services immediately upon
the termination of Signature. IBT provides the same services
previously supplied by Signature. Although its
<PAGE> 2
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 40 of the Prospectus.
This Supplement is dated January 1, 1997.
