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Prospectus Supplement*
September 3, 1996
Privileged Assets Select Annuity
30325C (4/96)
The following information modifies the disclosure of the prospectus
for the APL Variable Annuity Account 1, The Privileged Assets
Select Annuity dated May 1, 1996.
Subaccounts Available for investment: Subaccount
Janus Aspen Series Growth Portfolio CSG
TCI Value CVL
Warburg Pincus Trust-Post-
Venture Capital Portfolio CVC
Strong Short-Term Bond Fund II CSB
Investment Goals and Policies of the Funds:
Janus Series Growth Portfolio
Objective: long term growth of capital in a manner consistent with
the preservation of capital. Invests primarily in common stocks,
with an emphasis on companies with larger market capitalizations.
TCI Value
Objective: long-term capital growth, with income as a secondary
objective. Invests primarily in securities that management
believes to be undervalued at the time of purchase.
Warburg Pincus Trust-Post-Venture Capital Portfolio
Objective: long-term growth of capital. Invests primarily in
equity securities of issuers in their post-venture capital stage of
development.
Strong Short-Term Bond Fund II
Objective: total return by investing for a high level of current
income with a low degree of share-price fluctuation. Invests
primarily in short- and intermediate-term, investment grade debt
obligations.
The Expense Summary Section on page 9 is revised to include the
following:
Expense Summary
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows:*
<TABLE>
<CAPTION>
Janus Aspen Warburg Pincus
Series Growth TCI Trust-Post-Venture Strong Short-Term
Portfolio Value Capital Portfolio Bond Fund II
<S> <C> <C> <C> <C>
Management fees .65% 1.00% .64% .625%
Other expenses .13 -- .76 .375
Total .78%*** 1.00%*** 1.40%+ 1.000%++
/TABLE
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* Premium taxes imposed by some state and local governments are not
reflected in this table. American Partners Life has entered into
certain arrangements under which it is compensated for the
administrative services it provides to the funds.
*** The figures given above are based on gross expenses before
expense offset arrangements, if any, during 1995, for these two
funds. As of the date of this prospectus, certain fees are being
waived or expenses are being assumed by the respective investment
managers or service providers for certain of the underlying mutual
funds, in each case on a voluntary basis. Without such waivers or
reimbursements, the "Management fees," "Other expenses" and "Total"
that would have been incurred for the last completed fiscal year
would be: .85%, .13 and .98%, respectively, for Janus Aspen Series
Growth. See the Portfolios' prospectuses for a discussion of fee
waiver and expense reimbursements.
+ This is a new portfolio, operating expenses are based on
annualized estimates of such expenses to be incurred in the current
fiscal year. Absent the waiver of fees by the Portfolio's
investment adviser and co-administrator, Management Fees for the
Portfolio would equal 1.25%. Other Expenses would equal .81% and
Total Portfolio Operating Expenses would equal 2.06%. The
investment adviser has undertaken to limit the Portfolio's Total
Portfolio Operating Expenses through December 31, 1996.
++ Annualized operating expenses of the fund at June 30, 1995.
Example:* You would pay the following expenses on a $1,000
investment, assuming 5% annual return and surrender, on surrender
or selection of an annuity payout plan at the end of each time
period:
<TABLE>
<CAPTION>
Janus Aspen Warburg Pincus
Series Growth TCI Trust-Post-Venture Strong Short-Term
Portfolio Value Capital Portfolio Bond Fund II
<S> <C> <C> <C> <C>
1 year $ 21.18 $ 23.43 $ 27.53 $ 23.43
3 years 65.38 72.18 84.46 72.18
5 years 112.16 123.55 143.98 123.55
10 years 241.45 264.41 304.89 264.41
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
*In this example, the $30 annual contract administrative charge is
approximated as a .286% charge based on the expected average
contract size. American Partners Life has entered into certain
arrangements under which it is compensated for administrative
services it provides to the funds.
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Investors Research Corporation serves as the investment manager of
TCI Portfolios, Inc. Janus Capital Corporation is the investment
manager for Janus Aspen Series Worldwide Growth Portfolio and Janus
Aspen Series Growth Portfolio. Warburg, Pincus Counsellors, Inc.
is the investment adviser of Warburg Pincus Trust-Post-Venture
Capital Portfolio. Strong Capital Management, Inc. serves as the
investment advisor of Strong Short-Term Bond Fund II.
Page 33 of the prospectus is revised as follows:
The Distribution of the contracts paragraph is replaced with:
"The contracts will be distributed by American Express
Service Corporation, the principal underwriter for the
variable account."
The third paragraph in the section About American Partners Life is
replaced with:
"American Express Service Corporation is the principal
underwriter for the variable account. Its service office is
located at 80 South 8th Street, Minneapolis, MN 55440-0010.
American Express Service Corporation is registered with the
SEC under the Securities Exchange Act of 1934 as a broker-
dealer and is a member of the National Association of
Securities Dealers, Inc. American Express Service
Corporation is a wholly-owned subsidiary of American Express
Travel Related Service company which is a wholly-owned
subsidiary of American Express Company."
* valid until next prospectus update
