SCUDDER



                            SCUDDER VARIABLE LIFE INVESTMENT FUND





                                                               November 22, 1996

Dear Investor,

        I'm writing to you today to provide you with some important  information
regarding  the Scudder  Variable  Life  Investment  Fund.  This  information  is
provided to you on the reverse  side of this letter and is a  supplement  to the
1996 Prospectus. Please keep it in your files with your Prospectus.

        We've provided updated financial data on the Global Discovery  Portfolio
for the period May 1, 1996 (commencement of operations) to June 30, 1996 and for
the six months  ended June 30, 1996 for the  remainder  of the  portfolios.  The
information  provided includes each Portfolio's net asset values,  distributions
paid and total returns.  This information was reported in the Semiannual  Report
dated June 30, 1996.

        If you have any questions  about this  information,  please feel free to
call us at 1-800-225-2470.

        Sincerely,

        /s/David B. Watts

        David B. Watts
        President
        Scudder Variable Life Investment Fund






    This letter is for  explanatory  purposes and is not part of the  prospectus
supplement.

                                  (over please)
                                                                 

<PAGE>


Supplement to Prospectus Dated May 1, 1996


FINANCIAL HIGHLIGHTS


The following table  supplements the expense and financial  information found on
pages 2 through 7 in the Scudder  Variable Life Investment Fund prospectus dated
May 1,  1996.  In this table you will find a variety  of  information  about the
income and the expenses of each Portfolio for the stated  period.  You will also
find  the  following:  (1) the net  gain  or  loss on the  investments,  (2) the
distributions, if any, of income and gain, and (3) the change in net asset value
per share from the beginning to the end of the stated period.


If  you  would  like  more   detailed   information   concerning  a  Portfolio's
performance, a complete portfolio listing and unaudited financial statements are
available  in the  Fund's  Semiannual  Report  dated  June  30,  1996 and may be
obtained  without  charge by  calling a  Participating  Insurance  Company or by
writing to  broker/dealers  offering the previously  mentioned  variable annuity
contracts and Scudder  Variable Life  insurance  policies,  or Scudder  Investor
Services, Inc.



<TABLE>
<CAPTION>
           For the                    Net Asset               Net Realized              Distributions   Distributions     
     Six Months Ended                 Value at      Net      & Unrealized   Total from    from Net       from Net
     June 30, 1996 (e)               Beginning   Investment   Investment    Investment   Investment      Realized
        (Unaudited)                  of Period     Income     Gain (Loss)   Operations     Income         Gains
        -----------                  ---------     ------     -----------   ----------     ------         -----
     <S>              <C>          <C>           <C>           <C>          <C>           <C>  
 Money Market  Portfolio ............ $ 1.00       $ .025           --            --        $(.025)          --    
               
 Bond Portfolio ..................... $ 7.16       $  .19       $ (.33)       $ (.14)       $ (.42)          --
                                 
 Balanced Portfolio ................. $10.95       $  .15       $  .50        $  .65        $ (.15)      $ (.30)
                                 
 Growth and Income Portfolio ........ $ 7.98       $  .13       $  .55        $  .68        $ (.11)      $ (.10)
                                 
 Capital Growth Portfolio ........... $15.08       $  .09       $ 1.26        $ 1.35        $ (.09)      $(1.26)
                                 
 Global Discovery Portfolio (f) ..... $ 6.00(b)      $.01 (a)   $  .09        $  .10             --          --
                  
 International Portfolio ............  $11.82       $  .10       $  .98        $ 1.08        $ (.29)          --
</TABLE>
 
   (a) Portion of expense reduction. See last column.
   (b) Original Capital.
   (c) Annualized.
   (d) Not Annualized.
   (e) Except for the Money Market Portfolio all per share amounts have been 
       calculated using the monthly average shares out-standing during the 
       period method.
   (f) For the period May 1, 1996 (commencement of operations) to June 30, 1996.

November 22, 1996

<PAGE>



                                                     




<TABLE>
<CAPTION>
                                                           Ratio of       Ratio of Net                                             
                Net Asset                 Net Assets      Operating       Investment
                 Value at      Total        End of       Expenses to      Income to     Portfolio     Average       Per Share
     Total        End of      Return        Period        Average Net     Average Net   Turnover    Commission    Reimbursement
 Distributions    Period       % (d)     ($ millions)     Assets % (c)    Assets % (c)   Rate %      Rate Paid   of Expenses (a)
 -------------    ------       -----     ------------     ------------    ------------   ------      ---------   ---------------
                                                                        
   <S>            <C>          <C>            <C>              <C>           <C>        <C>           <C>           <C>             
       --         $ 1.00       2.49           82               .48           4.95           --             --            --
                                                                                                    
   $(.42)         $ 6.60      (2.17)          63               .64           5.99       119.65 (c)         --            --
                                                                                                    
   $(.45)         $11.15       6.05           79               .63           2.74       87.10 (c)     $.0515             --
                                                                                                    
   $(.21)         $ 8.45       8.62           68               .68           3.09       37.48 (c)     $.0493             --
                                                                                                    
   $(1.35)        $15.08       9.09          390               .54           1.23       68.45 (c)     $.0593             --
                                                                                                    
       --         $ 6.10       1.67           10            1.50 (a)         1.56       10.42 (d)     $ .0014        $  .01
                                                                                                    
   $(.29)         $12.61       9.24          662              1.06           1.64       33.62 (c)     $.0002             --
                                                                                                    
</TABLE>