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SUPPLEMENT DATED JULY 19, 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.
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The following paragraph is added as the sixth paragraph in the section
on page 26 of the prospectus entitled "FULL AND PARTIAL WITHDRAWALS":
Systematic Withdrawal Program. The Systematic Withdrawal
Program provides an automatic monthly or quarterly payment to you, the
Owner, from the amounts you have accumulated in the Variable Accounts
and/or the Fixed Account. The minimum amount you may withdraw is
$100. To use the program, you must maintain a $1,000 balance in your
Contract. You may elect to participate in the Systematic Withdrawal
Program at any time before the Annuity Commencement Date by sending a
Written Request to the Annuity Service Center of IL Annuity (we or
us). Once you elect the program, it remains in effect unless the
balance in your Contract drops below $1,000. You may cancel the
program at any time by sending us a Written Request or by calling us
by telephone if we have your telephone authorization form on file.
We will assess a Withdrawal Charge on each withdrawal made
during the first nine Contract Years, unless the amount you withdraw
under the Systematic Withdrawal Program qualifies as a Free Withdrawal
Amount. (See "Withdrawal Charge -- Free Withdrawal Amount.") We do
not deduct any other charges for this program.
All Systematic Withdrawals will be paid to you on the same day
each month, provided that day is a Valuation Day. If it is not, then
payment will be made on the next Valuation Day. Systematic
withdrawals may be taxable, subject to withholding, and subject to a
10% penalty tax. (See "Federal Tax Matters.") We reserve the right
to discontinue offering the Systematic Withdrawal Program at any time
and for any reason.
