VIA EDGAR


March 11, 1997

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

    	Re:	Kemper Investors Life Insurance Company ("KILICO") and
		       KILICO Variable Separate Account ("Variable Separate Account")
		       (File No. 811-5025)

Commissioners:

     Attached for filing, pursuant to Section 30(d) and Rule 30d-2 of the
Investment Company Act of 1940 ("1940 Act"), is the most recent annual report
of the Variable Separate Account referenced above.  The annual report consists
of cover letters from KILICO for each of the variable life insurance products
offered through the Variable Separate Account plus the most recent individual
annual reports of the mutual fund subaccount options available through the
Variable Separate Account.  Because the most recent annual reports of the funds
have been filed with the SEC by their respective Investment Managers/Advisers,
KILICO is filing herewith only the cover letter prepared by KILICO and hereby
incorporates by reference the individual annual reports of the underlying
funds set forth below.

    	The Variable Separate Account includes the underlying fund options as
follows:

    	Kemper Investors Fund  (File No. 811-5002)
	    American Skandia Trust  (File No. 811-5186)

     Please call the undersigned at 847-550-7389 if you have any questions or
comments.

Yours truly,


/s/ Frank J. Julian
Frank J. Julian
Associate General Counsel

FJJ/sw









Dear Kemper Investors Life Policyowner:


Zurich Kemper Life is pleased to send you the 1996 Annual Report for the funds
underlying your investment choices in the Kemper Select variable life
insurance policy as of December 31, 1996.

1996 was a year of incredible growth in the stock market and for some of the
funds available to you in your Kemper Select policy. Within Kemper Select's
unique portfolio of quality funds, you have the choice and ability to
diversify your money according to your investment objectives and financial
needs.

Along with the growth potential of the cash values that accumulate within your
policy, Kemper Select also offers the life insurance protection you need and
many options if you decide to start receiving payments.  You can receive
guaranteed payments over a certain period of time, for the rest of your life
or over the lifetimes of both you and your spouse.

As always, please remember to review your Kemper Select Prospectus before you
invest further or send any additional money.  Zurich Kemper Life is committed
to helping you satisfy your long-term insurance and financial needs.  If you
have any questions or concerns regarding your Kemper Select policy, please
feel free to contact our Client Services Team at 800-621-5001.  Or, check out
our exciting, diverse web site at www.ZurichKemper.com for the latest news and
information regarding new products, improved technology, etc.  Thank you for
continuing to be a part of the Zurich Kemper Life family and we pledge to
assist you in taking care of your financial needs because that's the way life
should be.



Sincerely,


/s/ John B. Scott
John B. Scott
President
Chief Executive Officer

Securities distributed through Investors Brokerage Services, Inc.  








Dear Kemper Investors Life Policyowner:


Zurich Kemper Life is pleased to send you the 1996 Annual Reports for the
funds underlying your investment choices in the Kemper Power V variable life
insurance policy as of December 31, 1996.

1996 was a year of incredible growth in the stock market and for some of the
funds available in your Kemper Power V policy. Within Kemper Power V's unique
team of quality investment managers, you have the choice and ability to
diversify your money between many different options.  You can also take
advantage of the opportunity to diversify your accounts through Zurich Kemper
Life's unlimited tax-free transfer feature.

Along with the growth potential of the cash values that accumulate within your
policy, Kemper Power V also offers the life insurance protection you need and
many options available to you if you decide to start receiving payments.  You
can receive guaranteed payments over a certain period of time, for the rest of
your life or over the lifetimes of both you and your spouse.

As always, please remember to review your Kemper Power V Prospectus before you
invest further or send any additional money.  Zurich Kemper Life is committed
to helping you satisfy your long-term insurance and financial needs.  If you
have any questions or concerns regarding your Kemper Power V annuity, please
feel free to contact Client Services at 888-962-8854.  Or, check out our
exciting and diverse web site at www.ZurichKemper.com for the latest news and
information regarding new products, improved technology, etc.  Thank you for
continuing to be a part of the Zurich Kemper Life family and we pledge to
assist you in taking care of your financial needs because that's the way life
should be.


Sincerely,


/s/ John B. Scott
John B. Scott
President
Chief Executive Officer

Securities distributed through Investors Brokerage Services, Inc.