SUPPLEMENT
dated
December 22, 2000
to the
USAA Life Insurance Company Variable Annuity Prospectus,
USAA Life Insurance Company Variable Universal Life Policy Prospectus and
USAA Life Investment Trust Prospectus
dated May 1, 2000
SUBSTITUTION OF INVESTMENT OPTIONS UNDER USAA LIFE INSURANCE COMPANY VARIABLE
ANNUITY AND VARIABLE UNIVERSAL LIFE POLICY
This prospectus supplement relates to the prospectuses for USAA Life
Insurance Company's Variable Annuity and Variable Universal Life policies and
for USAA Life Investment Trust. Please retain it for future reference.
On December 13, 2000, USAA Life Insurance Company ("USAA Life"),
together with USAA Life Insurance Company Variable Annuity Separate Account and
USAA Life Variable Universal Life Insurance Separate Account (the "Separate
Accounts"), filed an application (the "Application") with the Securities and
Exchange Commission (the "SEC") for an order permitting USAA Life and the
Separate Accounts to substitute certain portfolios of the Vanguard Variable
Insurance Funds for their investments in the USAA Life Money Market Fund and
the USAA Life International Fund, series of USAA Life Investment Trust, and the
Deutsche VIT Equity 500 Index Fund, the Deutsche VIT Small Cap Index Fund, and
the Deutsche VIT EAFE(R) Equity Index Fund, series of Deutsche VIT Funds. The
chart below lists the proposed fund substitutions:
CURRENT FUND NEW FUND
USAA Life Money Market Fund Vanguard Money Market Portfolio
USAA Life International Fund Vanguard International Portfolio
Deutsche VIT EAFE(R) Index Fund Vanguard International Portfolio
Deutsche VIT Equity 500 Index Fund Vanguard Equity Index Portfolio
Deutsche VIT Small Cap Index Fund Vanguard Small Company Growth Portfolio
USAA Life is taking this action to enhance the investment fund
selection within USAA Life's variable annuity and variable universal life
plans. The New Funds have similar investment objectives, lower advisory fees
and, generally, lower overall fund expenses than the Current Funds. YOU WILL
INCUR NO COSTS, AS ALL EXPENSES ASSOCIATED WITH THE APPLICATION AND THE
SUBSTITUTION WILL BE BORNE BY USAA LIFE.
For a period beginning 30 days before May 1, 2001, the proposed date
of the substitutions, and ending no earlier than 60 days after the date the
substitutions are effected, you may freely reallocate your account value among
the then available variable fund accounts without limitation and free of
transfer charges. As a result of the substitutions, all investments in the USAA
Life Money Market Fund and the USAA Life International Fund will be redeemed.
After the substitutions, the Current Funds will no longer be available
investment options within USAA Life's variable annuity and variable universal
life plans.
This supplement is for your information and you are not required to
take action at this time.
If you have any questions regarding the Substitution, please contact
one of USAA Life's service representatives at 1-800-531-2923.
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