COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT ONE
SUPPLEMENT DATED OCTOBER 28, 1998 TO
PROSPECTUS DATED MAY 1, 1998
The following information is in addition to certain information contained in
your prospectus for the Cova variable annuity.
1. The following paragraph is added to Section 4 - Investment Options - Dollar
Cost Averaging:
Cova reserves the right to modify, terminate or suspend the Dollar Cost
Averaging Program.
2. The following information for the period ended June 30, 1998 is added to
Appendix A - Condensed Financial Information:
Period
Ended
6/30/98
(unaudited)
-----------
COVA SERIES TRUST
Managed by Lord, Abbett & Co.
Bond Debenture Sub-Account
Beginning of Period $12.88
End of Period $13.51
Number of Accum. Units Outstanding 6,151,600
Mid-Cap Value Sub-Account
Beginning of Period $10.47
End of Period $11.21
Number of Accum. Units Outstanding 795,251
Large Cap Research Sub-Account
Beginning of Period $ 9.90
End of Period $11.34
Number of Accum. Units Outstanding 464,192
Developing Growth Sub-Account
Beginning of Period $10.53
End of Period $11.31
Number of Accum. Units Outstanding 701,432
Managed by J.P. Morgan Investment
Management Inc.
Select Equity Sub-Account
Beginning of Period $14.05
End of Period $15.80
Number of Accum. Units Outstanding 8,986,842
Small Cap Stock Sub-Account
Beginning of Period $13.49
End of Period $14.02
Number of Accum. Units Outstanding 4,937,599
International Equity Sub-Account
Beginning of Period $11.46
End of Period $13.06
Number of Accum. Units Outstanding 6,578,152
Quality Bond Sub-Account
Beginning of Period $11.16
End of Period $11.53
Number of Accum. Units Outstanding 2,191,199
Large Cap Stock Sub-Account
Beginning of Period $14.89
End of Period $17.66
Number of Accum. Units Outstanding 2,624,260
LORD ABBETT SERIES FUND, INC.
Growth and Income Sub-Account
Beginning of Period $30.84
End of Period $33.66
Number of Accum. Units Outstanding 18,092,138
GENERAL AMERICAN CAPITAL COMPANY
Money Market Sub-Account
Beginning of Period $10.67
End of Period $10.89
Number of Accum. Units Outstanding 966,618
3. The following information replaces the information contained in Appendix B
- Performance Information:
FUTURE PERFORMANCE WILL VARY AND THE RESULTS SHOWN ARE NOT NECESSARILY
REPRESENTATIVE OF FUTURE RESULTS.
Note: The figures in Part 1 and Part 2 below present investment performance
information for the periods ended June 30, 1998. While these numbers represent
the returns as of that date, they do not represent performance information of
the portfolios since that date. Performance information for the periods after
June 30, 1998 may be significantly different (lower) than the numbers shown
below.
PART 1
The portfolios listed below began operations before June 30, 1998. As a result,
performance information is available for the accumulation unit values investing
in these portfolios.
Column A presents performance figures for the accumulation units which reflect
the insurance charges as well as the fees and expenses of the investment
portfolio. Column B presents performance figures for the accumulation units
which reflect the insurance charges, the contract maintenance charge, the fees
and expenses of the investment portfolio, and assume that you make a withdrawal
at the end of the period and therefore the withdrawal charge is reflected. The
inception dates shown below reflect the dates the Separate Account first
invested in the Portfolio. The performance returns for accumulation units
investing in the portfolios in existence for less than one year are not
annualized.
<TABLE>
<CAPTION>
PART 1 COVA SERIES TRUST
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation
Column A Unit Performance
(reflects Column B
insurance (reflects
charges and all charges
Separate Account portfolio and portfolio
Inception Date expenses) expenses)
Portfolio in Portfolio 1 yr 5 yrs since 1 yr 5 yrs since
- ----------------- ---------------- ---------- -------- ------------- ---------- --------- ----------
inception inception
------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Select Equity 5/1/96 22.89% -- 23.01% 17.76% -- 21.19%
Small Cap Stock 5/1/96 16.63% -- 14.20% 11.51% -- 12.25%
International Equity 5/1/96 8.34% -- 12.00% 3.23% -- 10.01%
Quality Bond 5/1/96 8.94% -- 7.28% 3.83% -- 5.20%
Large Cap Stock 5/1/96 29.38% -- 29.99% 24.25% -- 28.27%
Bond Debenture 5/1/96 11.92% -- 14.39% 6.81% -- 12.44%
Mid-Cap Value 8/20/97 -- -- 12.10% -- -- 6.87%
Large Cap Research 8/20/97 -- -- 13.44% -- -- 8.21%
Developing Growth 8/20/97 -- -- 13.14% -- -- 7.91%
</TABLE>
<TABLE>
<CAPTION>
PART 1 LORD ABBETT SERIES FUND, INC.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation
Column A Unit Performance
(reflects Column B
insurance (reflects
charges and all charges
Separate Account portfolio and portfolio
Inception Date expenses) expenses)
Portfolio in Portfolio 1 yr 5 yrs since 1 yr 5 yrs since
- ----------------- ---------------- ---------- -------- ------------- ---------- --------- ----------
inception inception
------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth and Income 12/11/89 15.78% 16.73% 15.24% 10.66% 16.12% 15.12%
</TABLE>
<TABLE>
<CAPTION>
PART 1 GENERAL AMERICAN CAPITAL COMPANY
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation
Column A Unit Performance
(reflects Column B
insurance (reflects
charges and all charges
Separate Account portfolio and portfolio
Inception Date expenses) expenses)
Portfolio in Portfolio 1 yr since 1 yr since
- ----------------- ---------------- ---------- ------------- ---------- ----------
inception inception
------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Money Market 6/3/96 4.30% 4.20% -0.81% 1.95%
</TABLE>
PART 2
Shares of the General American Capital Company Money Market Fund were first
offered under the Contract on June 3, 1996. However, the Money Market Fund has
been in existence for some time and therefore has an investment performance
history. In order to show how investment performance of the Money Market Fund
affects accumulation unit values, we have developed performance information.
The chart below shows the investment performance of the Money Market Fund and
the accumulation unit performance calculated by assuming that accumulation units
were invested in the Money Market Fund for the same periods.
The performance figures in Column A for the Money Market Fund reflect the fees
and expenses paid by the Money Market Fund. Column B presents performance
figures for the accumulation units which reflect the insurance charges as well
as the fees and expenses of the Money Market Fund. Column C presents performance
figures for the accumulation units which reflect the insurance charges, the
contract maintenance charge, the fees and expenses of the Money Market Fund and
assumes that you make a withdrawal at the end of the period and therefore the
withdrawal charge is reflected.
<TABLE>
<CAPTION>
PART 2 GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Fund Performance Accumulation Unit Performance
Column A Column B Column C
(reflects insurance (reflects all
Portfolio charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs
- ---------------- --------- ------- ------ ------------ ------- ----------- ------------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 10/1/87 5.76% 5.15% 6.02% 4.36% 3.75% 4.62% -0.74% -0.85% 4.52%
</TABLE>
CL-4116 (10/98)
