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SEPARATE ACCOUNT OF
USAA LIFE INSURANCE COMPANY
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FLEXIBLE PREMIUM DEFERRED COMBINATION
FIXED AND VARIABLE ANNUITY CONTRACT
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SUPPLEMENT DATED JANUARY 1, 1998 TO
PROSPECTUS DATED MAY 1, 1997
USAA Life Insurance Company has reduced its mortality and expense risk
charge, by more than 38%, from an annual rate of 1.05% to 0.65%, effective
January 1, 1998.
The reduction applies to all outstanding and new contracts.
Accordingly, the Prospectus is amended as follows. The mortality and
expense risk charge, as specified on pages 7A, 9A, 15A and 16A is amended to
read 0.65%. The Total Separate Account Annual Expenses, as specified on page
9A is amended to read 0.75%. The breakdown of the mortality and expense risk
charge, as specified on page 16A, is amended to read approximately 0.40% for
mortality risks and 0.25% for expense risks.
The Example, as set out on page 9A, is amended to read as follows:
NAME OF FUND ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
USAA Life Variable Annuity
Money Market Fund Account $12 $39 $69 $156
USAA Life Variable Annuity
Income Fund Account 12 39 69 156
USAA Life Variable Annuity
Growth and Income Fund Account 12 39 69 156
USAA Life Variable Annuity
World Growth Fund Account 15 49 85 195
USAA Life Variable Annuity
Diversified Assets Fund Account 12 39 69 156
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USAA Life Variable Annuity
Aggressive Growth Fund Account 16 50 88 201
USAA Life Variable Annuity
International Fund Account 20 63 111 253
Scudder VLIF Capital Growth
Portfolio 14 45 79 179
Alger American Growth Portfolio 17 53 93 213
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The Charts, as set out on page 29A, are amended to read as follows:
[New graphs depicting results as calculated using new lower M&E
charge appear here.]
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