VARIABLE ANNUITY ACCOUNT C
                    Aetna Life Insurance and Annuity Company
       Supplement dated June 21, 1996 to the Prospectus dated May 1, 1996
Group Installment Variable Annuity Contracts for Rewrite of Qualified 401 Plans
 
AT  A JUNE 17, 1996 SPECIAL MEETING  OF THE SHAREHOLDERS OF AETNA VARIABLE FUND,
AETNA  INCOME  SHARES  AND  AETNA  INVESTMENT  ADVISERS  FUND,  INC   ("FUNDS"),
SHAREHOLDERS  OF  THE  RESPECTIVE  FUNDS APPROVED  A  PROPOSAL  TO  INCREASE THE
ADVISORY FEES FOR EACH  OF THE FUNDS EFFECTIVE  AUGUST 1, 1996. THEREFORE,  THIS
SUPPLEMENT  AMENDS THE INFORMATION CONTAINED IN  THE MAY 1, 1996 PROSPECTUS (THE
"PROSPECTUS"), AS DESCRIBED BELOW.
 
- - THE FOLLOWING TABLE MODIFIES THE INFORMATION CONTAINED UNDER "ANNUAL  EXPENSES
  OF  THE FUNDS" ON  PAGE 8 OF  THE PROSPECTUS TO  REFLECT INCREASES IN ADVISORY
  FEES OF THE RESPECTIVE FUNDS EFFECTIVE AUGUST 1, 1996 AS IF THE INCREASES  HAD
  BEEN  IN EFFECT  FOR THE  YEAR ENDED DECEMBER  31, 1996.  THE OTHER INVESTMENT
  OPTIONS ARE NOT AFFECTED BY THIS CHANGE.
 


                                                          INVESTMENT                         TOTAL FUND
                                                         ADVISORY FEES   OTHER EXPENSES*   ANNUAL EXPENSES
                                                         -------------   ---------------   ---------------
                                                                                  
Aetna Variable Fund                                          0.50%            0.06%             0.56%
Aetna Income Shares                                          0.40%            0.08%             0.48%
Aetna Investment Advisers Fund, Inc.                         0.50%            0.08%             0.58%

 
* As of May 1, 1996, the  Company provides administrative services to the  Funds
  and assumes the Funds' ordinary recurring direct costs under an Administrative
  Services  Agreement. The "Other  Expenses" shown are not  based on figures for
  the year  ended December  31, 1995,  but reflect  the fee  payable under  this
  Agreement.
 
- - THE  FOLLOWING ILLUSTRATION APPLIES  TO THE FUNDS EFFECTIVE  AUGUST 1, 1996 TO
  REFLECT THE  INCREASES  IN  THE  RESPECTIVE ADVISORY  FEES  AND  MODIFIES  THE
  INFORMATION FOUND IN THE "HYPOTHETICAL ILLUSTRATION (EXAMPLE)" FOUND ON PAGE 8
  IN THE PROSPECTUS:
 


                                               EXAMPLE A                               EXAMPLE B
                                 -------------------------------------   -------------------------------------
                                 IF  YOU MAKE A COMPLETE WITHDRAWAL OF   IF  YOU  DO   NOT  MAKE  A   COMPLETE
                                 YOUR  CONTRACT  AT  THE  END  OF  THE   WITHDRAWAL OF YOUR CONTRACT OR IF YOU
                                 APPLICABLE TIME PERIOD:                 ANNUITIZE:*
                                 1 YEAR   3 YEARS   5 YEARS   10 YEARS   1 YEAR   3 YEARS   5 YEARS   10 YEARS
                                 ------   -------   -------   --------   ------   -------   -------   --------
                                                                              
 Aetna Variable Fund               $70      $112      $146      $214       $19      $ 57      $ 99      $214
 Aetna Income Shares               $69      $110      $142      $206       $18      $ 55      $ 95      $206
 Aetna Investment Advisers
  Fund, Inc.                       $70      $113      $147      $217       $19      $ 58      $100      $217

 
* This Example  would not  apply if  a nonlifetime  variable annuity  option  is
  selected  and  a lump  sum settlement  is requested  within three  years after
  annuity payments  start  since the  lump  sum payment  will  be treated  as  a
  withdrawal  during the Accumulation Period and will be subject to any deferred
  sales charge that would then apply. (Refer to Example A.)
 
- -THE FOLLOWING INFORMATION SUPPLEMENTS  THE INFORMATION FOUND UNDER  "INVESTMENT
 OPTIONS  -- THE FUNDS" WITH RESPECT TO THE INVESTMENT ADVISERS FOUND ON PAGE 11
 IN THE PROSPECTUS:
 
Effective August 1,  1996, Aeltus  Investment Management,  Inc. ("Aeltus")  will
become the subadviser for the following Funds:
 
      Aetna Variable Fund
      Aetna Income Shares
      Aetna Variable Encore Fund(1)
      Aetna Investment Advisers Fund, Inc.
 
(1) It  is  currently expected  that the  proposal relating  to the  approval of
    Aeltus as a subadviser for the Aetna Variable Encore Fund will be  submitted
    to  shareholders at a meeting to be held on July 19, 1996. If approved, such
    proposal would  be  effective  on  August  6,  1996.  (Refer  to  your  Fund
    prospectus for further information.)
 
Form No. X75984.1                                                      June 1996