EXHIBIT 10.12

                               SECOND AMENDMENT OF
                              DISTRIBUTION CONTRACT

         This amendment ("Second Amendment") to the Distribution Contract, dated
April 4, 1997 ("Distribution Contract"), by and between United Investors Life
Insurance Company ("UILIC") and Target/United Funds, Inc. f/k/a TMK/United
Funds, Inc. (the "Fund")(a copy of which is attached hereto as Exhibit "A"), as
amended by the Agreement Amending Distribution Contract ("First Amendment"),
dated the March 3, 1998 (a copy of which is attached hereto as Exhibit "B") is
made effective as of the 31st day of December, 1998, except as otherwise
provided herein.

         1. The parties hereby agree as follows:

                  a. To rescind the provision for termination of the
Distribution Contract contained in the First Amendment and extend the
Distribution Contract for the term provided in Section 8 thereof.

                  b. The second full paragraph of the Distribution Contract
shall be amended, retroactively to April 18, 1997, by deleting the word "two" in
the first sentence and replacing it with the word "three" and by inserting ",
United Investors Universal Life Variable Account" after the phrase "United
Investors Life Variable Account" in the first sentence.

                  c. Section 1 of the Distribution Contract shall be amended,
retroactively to April 18, 1997, by deleting the word "two" and replacing it
with the word "three" in the third line.

         2. In all other respects, the Distribution Contract is unchanged, and
the parties ratify and confirm the Distribution Contract, as amended by this
Second Amendment.

         IN WITNESS WHEREOF, the parties have executed this Second Amendment by
their duly authorized representatives to become effective as provided herein.

                                  UNITED INVESTORS LIFE INSURANCE COMPANY


                                  By: /s/ Anthony L. McWhorter
                                  Its:  President

                                  TARGET/UNITED FUNDS, INC.


                                  By:  /s/ Robert L. Hechler
                                  Its:   President