Supplement Dated October 2, 2000 to
Prospectus Dated May 1, 2000 for
VISIONARY CHOICE
A Flexible Premium Deferred Variable Annuity Contract
Issued by
IL Annuity and Insurance Company
And its
IL Annuity and Insurance Co. Separate Account 1
THIS SUPPLEMENT PROVIDES ADDITIONAL INFORMATION TO THE INFORMATION FOUND ON
PAGES 24 AND 37 OF THE MAY 1, 2000 PROSPECTUS. PLEASE READ IT CAREFULLY AND KEEP
IT WITH YOUR MAY 1, 2000 PROSPECTUS FOR FUTURE REFERENCE.
DOLLAR COST AVERAGING PLUS ("DCA PLUS") PROGRAM
IL Annuity (we, us) is currently offering a 6-month DCA Plus program. Under this
program, you may allocate a minimum of $1,000 of your initial or subsequent
premium payments to the DCA Plus program. (We may allow a lower minimum
allocation for qualified plan transfers or rollovers, including IRAs). Amounts
over $250,000 will require our approval. Dollar cost averaging transfers for
this program may only be made from the DCA fixed account into the variable
accounts you selected. You must transfer at least $100 to each variable account.
The DCA Plus program allows you to earn a higher rate of interest on assets you
place in the DCA Plus program that you would normally earn on assets you place
in the standard Fixed Account. The DCA Plus interest rate we will credit to your
allocation is guaranteed for the 6-month period. We may change the DCA Plus
interest rate from time to time for any new allocations to the DCA Plus program,
so that different allocations you make to the DCA Plus program may be credited
with different DCA Plus interest rates.
Under the 6-month DCA Plus program, transfers will occur each month over the
6-month period with the final transfer including all amounts remaining in the
program.
We will process transfers under the DCA Plus program until either the amounts in
the DCA Plus account are exhausted, or you instruct us in writing to stop
transfers. If you cancel the program, you will no longer receive the higher
interest rate of the DCA Plus program. Unless you instruct us otherwise, when we
receive your written notice to discontinue transfers under the DCA Plus program,
we will automatically transfer the amount remaining in the DCA Plus account to
the standard Fixed Account. If you cancel your Policy during the free-look
period, we will credit the standard Fixed Account rate to any amounts you
allocated to the DCA Plus program.
You may have only one dollar cost averaging program in place at one time, either
one standard dollar cost averaging or one DCA Plus program.
There is no additional charge for the DCA Plus program and transfers under the
DCA Plus program do not count towards the twelve transfers we allow each
Contract year without charge.
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We reserve the right to discontinue, modify or amend the DCA Plus program at any
time. Any change to the DCA Plus program will not affect Contract owners
currently enrolled in the program.
If you have chosen the Living Benefit option, premiums allocated to the DCA Plus
program will not be included in the amount of the Eligible Premium Payment on
which the Living Benefit is based.
