<PAGE> 1
SUPPLEMENT DATED JULY 2, 1996 TO
PROSPECTUS DATED MAY 1, 1996
IL ANNUITY AND INSURANCE CO. SEPARATE ACCOUNT I
VISIONARY VARIABLE ANNUITY
This supplement is intended to be used with the prospectus
dated May 1, 1996. This supplement, together with the prospectus and any
supplements previously furnished to you, constitute a current prospectus for
the Visionary Variable Annuity.
The Dollar Cost Averaging Service and the Automatic Account
Balancing Service are now available on a monthly, as well as quarterly, basis.
--------------------------
The following sentence replaces the first sentence in the
section on page 25 of the prospectus entitled "Dollar-Cost Averaging":
If elected at the time of the application or at any
time thereafter before the Annuity Commencement Date by
Written Request, an Owner may systematically or automatically
transfer (on a monthly or quarterly basis) specified dollar
amounts from one or more Variable Accounts or the Fixed
Account to one or more other Variable Accounts.
--------------------------
The following sentence replaces the first sentence in the
section on page 33 of the prospectus entitled "Dollar-Cost Averaging":
An Owner may elect to automatically transfer (on a
monthly or quarterly basis) specified dollar amounts from the
Fixed Account (as well as one or more Variable Accounts) to
one or more Variable Accounts.
--------------------------
The following sentence replaces the first sentence in the
section on page 25 of the prospectus entitled "Automatic Account Balancing
Service":
If elected at the time of the application or
requested at any time thereafter before the Annuity
Commencement Date by Written Request, an Owner may instruct
the Company to automatically transfer (on a monthly or
quarterly basis) Contract Value among specified Variable
Accounts in order to match the Owner's currently effective
Premium Payment allocation schedule.
--------------------------
The following sentence replaces the first sentence of
the third paragraph in the section on page 45 of the prospectus entitled
"Distribution of the Contracts":
The Company may pay sales commissions to broker-
dealers up to an amount equal to 7.2% of the Premium Payments
paid under a Contract.
<PAGE> 2
SUPPLEMENT DATED JULY 2, 1996 TO
PROSPECTUS DATED MAY 1, 1996
IL ANNUITY AND INSURANCE CO. SEPARATE ACCOUNT I
VISIONARY VARIABLE ANNUITY
For Residents of the State of Maryland
This supplement is intended to be used with the prospectus
dated May 1, 1996. This supplement, together with the prospectus and any
supplements previously furnished to you, constitute a current prospectus for
the Visionary Variable Annuity.
The following information supplements footnote 1 of the
Expense Table on page 8 of the Prospectus, as well as the second paragraph of
the section on page 13 of the Prospectus entitled "Withdrawal Charge
(Contingent Deferred Sales Charge)":
For Maryland Owners 58 years of age and older on the date the
Contract is issued, the maximum withdrawal charge is 7% of the
amount withdrawn during the first two Contract Years,
declining to 6.5% for withdrawals made during the third
Contract Year, and 6% during the fourth Contract Year.
Thereafter, the Withdrawal Charges decreases by 1% for each
subsequent Contract Year until it is zero in year ten.
---------------------------------
The following chart replaces the chart on page 34 of the
Prospectus in the section entitled "Charge for Partial or Full Withdrawal":
<TABLE>
<CAPTION>
=============================================================================================
Age 57 or under Age 58 or older
--------------- ---------------
- ---------------------------------------------------------------------------------------------
Contract Charge as % of Contract Charge as % Contract Charge as %
Year Withdrawal Year of Withdrawal Year of Withdrawal
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1-6 7% 1-2 7% 7 3%
7 6% 3 6.5% 8 2%
8 4% 4 6% 9 1%
9 2% 5 5% 10 0%
10 0% 6 4%
=============================================================================================
</TABLE>
