Supplement to Prospectus Dated May 3, 1999
                         Supplement dated August 18, 1999

This Supplement should be retained with the current Prospectus for your variable
annuity  contract  issued  by  American   Skandia  Life  Assurance   Corporation
("American  Skandia").  If you do not have a current prospectus,  please contact
American Skandia at 1-800-444-3970.

The investment objectives/policies of the following portfolios of the Galaxy VIP
Fund found in the section of the Prospectus  entitled  "INVESTMENT  OBJECTIVES -
What are the investment  objectives and policies of the  Portfolios?" is amended
and restated as follows:

GAL VIP Small Company Growth: seeks capital appreciation. The Portfolio attempts
to achieve  this  objective by investing at least 65% of its total assets in the
equity securities,  primarily common stocks, of small companies that have market
capitalizations  of $1.5 billion or less. The Portfolio invests primarily in the
common stock of U.S.  companies  but may invest up to 20% of its total assets in
foreign equity securities.

GAL VIP High Quality Bond: seeks a high level of current income  consistent with
prudent risk of capital.  The Portfolio invests primarily in obligations  issued
or guaranteed by the U.S. Government, its agencies or instrumentalities, as well
as in corporate  debt  obligations  such as notes and bonds.  The Portfolio also
invests in  asset-backed  and  mortgage-backed  securities  and in money  market
instruments,  such as commercial paper and bank  obligations.  Nearly all of the
Portfolio's   investments  will  be  of  investment  grade  quality.  These  are
securities  which have one of the top four highest rating assigned by Standard &
Poor's Ratings Group ("S&P") or Moody's Investors Service,  Inc.  ("Moody's") or
are unrated  securities  determined  to be of comparable  quality.  Under normal
market conditions, the Portfolio will invest at least 65% of its total assets in
high  quality  debt  obligations  that have one of the top two  highest  ratings
assigned by S&P or Moody's or unrated securities  determined to be of comparable
quality.




(GAL3)