<PAGE> 1
SUPPLEMENT DATED MARCH 5, 1998 TO
PROSPECTUS DATED MAY 1, 1997
IL ANNUITY AND INSURANCE CO. SEPARATE ACCOUNT I
VISIONARY VARIABLE ANNUITY
This supplement is intended to be used with the prospectus
dated May 1, 1997. This supplement, together with the prospectus and any
supplements previously furnished to you, constitute a current prospectus for
the Visionary Variable Annuity.
* * * *
Recently, IL Annuity learned that the Board of Trustees of the
Van Eck Worldwide Insurance Trust has voted to propose the closing of the Van
Eck Worldwide Balanced Portfolio (the "Balanced Portfolio"). The Van Eck Board
concluded that the Balanced Portfolio's small size, together with decision of
its investment adviser to discontinue the voluntary absorption of all expenses
of the Balanced Portfolio, will have an adverse effect on performance. This
could have the effect of further reducing assets and increasing the Balanced
Portfolio's expense ratio.
AS A RESULT, EFFECTIVE APRIL 1, 1998, IL ANNUITY IS CLOSING
THE VAN ECK WORLDWIDE BALANCED VARIABLE ACCOUNT TO TRANSFERS AND NEW PREMIUM
PAYMENTS. After that date, Contract owners will not be permitted to allocate
new Premium Payments, or transfer Contract Value, to the Van Eck Worldwide
Balanced Variable Account.
In addition, the Van Eck Worldwide Balanced Portfolio will be
deleted, wherever listed, from any instructions you have given us regarding
your premium allocation, dollar cost averaging, automatic account balancing, or
systematic withdrawals, and we will reassign the percentages previously
assigned to the Balanced Portfolio on a pro-rata basis among the remaining
Portfolios listed in your instructions. If you want us to treat your account
differently, please call the Service Center.
In addition, as of the date of this supplement, the Van Eck
Worldwide Hard Assets Variable Account will be an Eligible Variable Account for
purposes of calculating the Living Benefit. New allocations to the Van Eck
Worldwide Hard Assets Variable Account will be treated as Eligible Premium
Payments for purposes of calculating the Living Benefit on the Living Benefit
Date, once the new allocations have been held in that Variable Account for 10
years.
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SUPPLEMENT DATED MARCH 5, 1998 TO
PROSPECTUS DATED AUGUST 8, 1997
IL ANNUITY AND INSURANCE CO. SEPARATE ACCOUNT I
VISIONARY CHOICE VARIABLE ANNUITY
This supplement is intended to be used with the prospectus
dated August 8, 1997. This supplement, together with the prospectus and any
supplements previously furnished to you, constitute a current prospectus for
the Visionary Choice Variable Annuity.
* * * *
Recently, IL Annuity learned that the Board of Trustees of the
Van Eck Worldwide Insurance Trust has voted to propose the closing of the Van
Eck Worldwide Balanced Portfolio (the "Balanced Portfolio"). The Van Eck Board
concluded that the Balanced Portfolio's small size, together with decision of
its investment adviser to discontinue the voluntary absorption of all expenses
of the Balanced Portfolio, will have an adverse effect on performance. This
could have the effect of further reducing assets and increasing the Balanced
Portfolio's expense ratio.
AS A RESULT, EFFECTIVE APRIL 1, 1998, IL ANNUITY IS CLOSING
THE VAN ECK WORLDWIDE BALANCED VARIABLE ACCOUNT TO TRANSFERS AND NEW PREMIUM
PAYMENTS. After that date, Contract owners will not be permitted to allocate
new Premium Payments, or transfer Contract Value, to the Van Eck Worldwide
Balanced Variable Account.
In addition, the Van Eck Worldwide Balanced Portfolio will be
deleted, wherever listed, from any instructions you have given us regarding
your premium allocation, dollar cost averaging, automatic account balancing, or
systematic withdrawals and we will reassign the percentages previously assigned
to the Balanced Portfolio on a pro-rata basis among the remaining Portfolios
listed in your instructions. If you want us to treat your account differently,
please call the Service Center.
In addition, as of the date of this supplement, the Van Eck
Worldwide Hard Assets Variable Account will be an Eligible Variable Account for
purposes of calculating the Living Benefit. New allocations to the Van Eck
Worldwide Hard Assets Variable Account will be treated as Eligible Premium
Payments for purposes of calculating the Living Benefit on the Living Benefit
Date, once the new allocations have been held in that Variable Account for 10
years.
