i:\legal\sec.reg\ecnl96\prosup96.doc
First Variable Life Insurance Company
10 Post Office Square - 12th Floor
Boston, MA 02109
January 8, 1997
VIA EDGAR
Securities and Exchange Commission
Division of Investment Management
Office of Insurance Products
450 Fifth Street, N.W.
Washington, DC 20549
Re: First Variable Annuity Fund E
File Nos. 33-86738 and 811-4092
Dear Sir/Madam:
On behalf of the above captioned Registration and pursuant to Securities Act
Rule 497(e), we hereby submit for filing a supplement to the prospectus for
certain variable annuity contracts of the Registrant.
Please do not hesitate to contact the undersigned at (617) 631-5052 should
you have any questions or comments.
Very truly yours,
s/Arnold R. Bergman
Arnold R. Bergman
Vice President, Legal and Administration
<PAGE>
Rule 497(e)
File No. 33-86738
[GRAPHIC OMITTED]
10 Post Office Square
Boston, Massachusetts 02109
Supplement to:
CAPITAL FIVE VA /VISTA Variable Annuity Prospectus dated May 1, 1996
CAPITAL NO LOAD Variable Annuity Prospectus dated May 1, 1996
FUND A Variable Annuity Prospectus dated May 1, 1996
_____________________
Supplement dated January 8, 1997
Pursuant to an Order of the U.S. Securities and Exchange Commission dated
November 29, 1996, 1996, the Company received approval to substitute shares
(the "Substitution") of the Prime Money Fund II ("Prime Money Shares") of the
Federated Insurance Series for shares of the Cash Management Portfolio ("Cash
Management Shares") of Variable Investors Series Trust held in the Separate
Account. The Substitution was effected January 2, 1997 (the "Substitution
Date").
An Owner of a Contract that is funded, in whole or in part, by Cash
Management Shares on the Substitution Date is permitted from the Substitution
Date until February 17, 1997 to transfer his or her Cash Management
Sub-Account value to any other Sub-Account without any limitation or charge
being imposed. A complete list of all available Sub-Accounts in which to
transfer value is set forth in the May 1, 1996 Variable Annuity Prospectus. A
written request must be received by the Company at its Variable Service
Center prior to the close of business February 17, 1997 to effect such
transfer.
The name of the Cash Management Sub-Account is changed to the "Federated
Prime Money Fund Sub-Account." The investment objectives and fees of the
Prime Money Shares are described more fully in the May 1, 1996 Variable
Annuity Prospectus and in the accompanying prospectus of Federated Insurance
Series.
