COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT ONE
Supplement dated November 13, 1998 to
Prospectus dated May 1, 1998
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by Cova Financial Services Life Insurance
Company ("Cova Life") and Cova Variable Annuity Account One ("Variable Account
One").
Shares of the MFS/Foreign & Colonial Emerging Markets Equity Series of the MFS
Variable Insurance Trust are no longer offered for sale. No initial purchase
payments, additional purchase payments, Dollar Cost Averaging or transfers will
be allowed into this Series. All other investment options remain available to
you, including the Templeton Developing Markets Fund, Class 1 Shares, which has
investment objectives similar to the MFS/Foreign & Colonial Emerging Markets
Equity Series. For existing Contract owners investing in the MFS/Foreign &
Colonial Emerging Markets Equity Series through the Dollar Cost Averaging
Program, other investment options will be made available to you.
CUSTOMER SERVICE: (800) 343-8496
Issued by Cova Financial Services Life Insurance Company
Distributed by: Cova Life Sales Company
One Tower Lane, Suite 3000
Oakbrook Terrace, Illinois 60181-4644
CL-4136(11/98)
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 is added to your prospectus as an Appendix:
<TABLE>
<CAPTION>
ACCUMULATION UNIT VALUE HISTORY
The following schedule includes accumulation unit values for the periods
indicated. This data has been extracted from the Separate Account's Financial
Statements. This information should be read in conjunction with the Separate
Account's Financial Statements and related notes which are included in the
Statement of Additional Information.
Year or Year or Year or Year or Year or Year or Year or
Period Period Period Period Period Period Period Period
Ended Ended Ended Ended Ended Ended Ended Ended
6/30/98 12/31/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
(unaudited)
---------- ----------- ----------- ---------- ---------- ---------- ---------- ---------
COVA SERIES TRUST
Managed by Lord, Abbett & Co.
Bond Debenture Sub-Account
<S> <C> <C> <C>
Beginning of Period $12.88 $11.29 $ 10.10 * * * * *
End of Period $13.51 $12.88 11.29
Number of Accum. Units Outstanding 6,151,600 3,945,097 659,663
Mid-Cap Value Sub-Account
Beginning of Period $10.47 $10.00 * * * * * *
End of Period $11.21 $10.47
Number of Accum. Units Outstanding 795,251 194,386
Large Cap Research Sub-Account
Beginning of Period $ 9.90 $10.00 * * * * * *
End of Period $11.34 $ 9.90
Number of Accum. Units Outstanding 464,192 124,559
Developing Growth Sub-Account
Beginning of Period $10.53 $10.00 * * * * * *
End of Period $11.31 $10.53
Number of Accum. Units Outstanding 701,432 148,658
Managed by J.P. Morgan Investment
Management Inc.
Select Equity Sub-Account
Beginning of Period $14.05 $10.84 $ 10.08 * * * * *
End of Period $15.80 $14.05 10.84
Number of Accum. Units Outstanding 8,986,842 6,903,606 2,044,523
Small Cap Stock Sub-Account
Beginning of Period $13.49 $11.31 $ 10.51 * * * * *
End of Period $14.02 $13.49 11.31
Number of Accum. Units Outstanding 4,937,599 3,940,243 1,237,405
International Equity Sub-Account
Beginning of Period $11.46 $10.97 $ 10.21 * * * * *
End of Period $13.06 $11.46 10.97
Number of Accum. Units Outstanding 6,578,152 5,440,592 1,306,892
Quality Bond Sub-Account
Beginning of Period $11.16 $10.37 $ 9.90 * * * * *
End of Period $11.53 $11.16 10.37
Number of Accum. Units Outstanding 2,191,199 1,433,081 508,830
Large Cap Stock Sub-Account
Beginning of Period $14.89 $11.33 $ 10.00 * * * * *
End of Period $17.66 $14.89 11.33
Number of Accum. Units Outstanding 2,624,260 1,473,929 1,389,606
LORD ABBETT SERIES FUND, INC.
Growth and Income Sub-Account
Beginning of Period $30.84 $25.09 $ 21.31 $ 16.64 $ 16.42 $ 14.50 $ 12.73 $ 10.15
End of Period $33.66 $30.84 25.09 21.31 16.64 16.42 14.50 12.73
Number of Accum. Units Outstanding 18,092,138 15,788,404 11,732,301 8,947,108 6,875,139 4,994,582 2,560,999 1,426,577
GENERAL AMERICAN CAPITAL COMPANY
Money Market Fund
Beginning of Period $10.67 $10.23 $ 10.00 * * * * *
End of Period $10.89 $10.67 10.23
Number of Accum. Units Outstanding 966,618 311,051 34,964
AIM VARIABLE INSURANCE FUNDS, INC.
Managed by A I M Advisors, Inc.
AIM V.I. Capital Appreciation Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.21
Number of Accum. Units Outstanding 94,788
AIM V.I. International Equity Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.80
Number of Accum. Units Outstanding 147,132
AIM V.I. Value Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.76
Number of Accum. Units Outstanding 232,878
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
Managed by Alliance Capital Management L.P.
Premier Growth Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $12.75
Number of Accum. Units Outstanding 252,882
Real Estate Investment Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $ 9.30
Number of Accum. Units Outstanding 91,408
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Managed by Goldman Sachs Asset Management
Goldman Sachs Growth and Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/29/98) $10.00
End of Period $10.78
Number of Accum. Units Outstanding 196,770
Managed by Goldman Sachs Asset Management
International
Goldman Sachs International Equity Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/29/98) $10.00
End of Period $11.43
Number of Accum. Units Outstanding 36,457
Goldman Sachs Global Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/29/98) $10.00
End of Period $10.30
Number of Accum. Units Outstanding 13,367
INVESTORS FUND SERIES
Managed by Scudder Kemper Investments, Inc.
Kemper Small Cap Value Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.16
Number of Accum. Units Outstanding 98,352
Kemper Government Securities Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.26
Number of Accum. Units Outstanding 9,388
Kemper Small Cap Growth Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.25
Number of Accum. Units Outstanding 32,699
LIBERTY VARIABLE INVESTMENT TRUST
Managed by Newport Fund Management Inc.
Newport Tiger, Variable Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $ 7.32
Number of Accum. Units Outstanding 17,974
MFS VARIABLE INSURANCE TRUST
Managed by Massachusetts Financial Services Company
MFS Emerging Growth Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $12.07
Number of Accum. Units Outstanding 224,942
MFS Research Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.81
Number of Accum. Units Outstanding 182,395
MFS Growth With Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.54
Number of Accum. Units Outstanding 245,170
MFS High Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.40
Number of Accum. Units Outstanding 68,090
MFS World Governments Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.17
Number of Accum. Units Outstanding 961
MFS/Foreign & Colonial Emerging
Markets Equity Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $ 8.68
Number of Accum. Units Outstanding 55,324
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Managed by OppenheimerFunds, Inc.
Oppenheimer High Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.41
Number of Accum. Units Outstanding 33,269
Oppenheimer Bond Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.32
Number of Accum. Units Outstanding 152,219
Oppenheimer Growth Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.63
Number of Accum. Units Outstanding 43,786
Oppenheimer Growth & Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.23
Number of Accum. Units Outstanding 158,887
Oppenheimer Strategic Bond Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.26
Number of Accum. Units Outstanding 42,968
PUTNAM VARIABLE TRUST
Managed by Putnam Investment Management, Inc.
Putnam VT Growth and Income Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.92
Number of Accum. Units Outstanding 531,714
Putnam VT International Growth Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.90
Number of Accum. Units Outstanding 234,012
Putnam VT International New Opportunities
Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.55
Number of Accum. Units Outstanding 26,554
Putnam VT New Value Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $10.31
Number of Accum. Units Outstanding 26,905
Putnam VT Vista Sub-Account ** ** ** ** ** ** **
Beginning of Period (1/2/98) $10.00
End of Period $11.61
Number of Accum. Units Outstanding 67,315
TEMPLETON VARIABLE PRODUCTS SERIES FUND,
CLASS 1 SHARES
Managed by Templeton Asset Management Ltd.
Templeton Developing Markets Sub-Account ** ** ** ** ** ** **
Beginning of Period (5/1/98) $10.00
End of Period $ 7.37
Number of Accum. Units Outstanding 10,126
Managed by Templeton Investment Counsel, Inc.
Templeton International Sub-Account ** ** ** ** ** ** **
Beginning of Period (5/1/98) $10.00
End of Period $ 9.64
Number of Accum. Units Outstanding 20,935
Managed by Franklin Mutual Advisers, Inc.
Mutual Shares Investments Sub-Account ** ** ** ** ** ** **
Beginning of Period $10.00
End of Period $ 9.51
Number of Accum. Units Outstanding 33,463
</TABLE>
<TABLE>
<CAPTION>
Year or For the period
Period from 12/11/89
Ended (Start of
12/31/90 Operations)
through
12/31/89
------------ -------------
LORD ABBETT SERIES FUND, INC.
Growth and Income Sub-Account
<S> <C> <C>
Beginning of Period $10.06 $ 10.00
End of Period 10.15 10.06
Number of Accum. Units Outstanding 1,041,032 14,482
<FN>
* The accumulation unit values shown for the beginning of the period for the
Select Equity, Small Cap Stock, International Equity, Quality Bond and
Large Cap Stock portfolios managed by J.P. Morgan Investment Management
Inc., and the Bond Debenture Portfolio managed by Lord, Abbett & Co.
reflect the date these investment portfolios were offered for sale through
the Separate Account (5/1/96). The Money Market Fund managed by Conning
Asset Management Company started regular investment operations on June 3,
1996. The Mid-Cap Value, Large Cap Research and Developing Growth
Portfolios started regular investment operations through the Separate
Account on August 20, 1997.
** The accumulation unit values shown reflect the date the investment
portfolio was offered through the Separate Account which is shown above
under "beginning of period."
</FN>
</TABLE>
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.
<TABLE>
<CAPTION>
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.
Accumulation Unit Performance
Column A Column B
(reflects insurance (reflects all charges
charges and portfolio and portfolio
expenses) expenses)
----------------------- ------------------------
Separate Account
Inception Date Since Since
Portfolio in Portfolio 1 yr 5 yrs Inception 1 yr 5 yrs Inception
- --------- ----------------- ------------------------- ------------------------
COVA SERIES TRUST
<S> <C> <C> <C> <C> <C> <C>
Small Cap Stock 5/1/96 16.63% -- 14.20% 11.51% -- 12.25%
Large Cap Stock 5/1/96 29.38% -- 29.99% 24.25% -- 28.27%
Select Equity 5/1/96 22.89% -- 23.01% 17.76% -- 21.19%
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%
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%
GENERAL AMERICAN
CAPITAL COMPANY
Money Market 6/3/96 4.30% -- 4.20% -0.81% -- 1.95%
LORD ABBETT SERIES
FUND, INC.
Growth and Income 12/11/89 15.78% 16.73% 15.24% 10.66% 16.12% 15.12%
AIM VARIABLE INSURANCE
FUNDS, INC.
AIM V.I. Capital 1/2/98 -- -- 12.11% -- -- 7.00%
Appreciation
AIM V.I. International 1/2/98 -- -- 18.01% -- -- 12.89%
Equity
AIM V.I. Value 1/2/98 -- -- 17.65% -- -- 12.53%
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
Premier Growth 1/2/98 -- -- 27.52% -- -- 22.39%
Real Estate Investment 1/2/98 -- -- -7.04% -- -- -12.14%
LIBERTY VARIABLE INVESTMENT
TRUST
Newport Tiger, Variable 1/2/98 -- -- -26.83% -- -- -31.91%
Series
INVESTORS FUND SERIES
Kemper Small Cap Value 1/2/98 -- -- 1.60% -- -- -3.50%
Kemper Government 1/2/98 -- -- 2.64% -- -- -2.46%
Securities
Kemper Small Cap Growth 1/2/98 -- -- 12.45% -- -- 7.34%
MFS VARIABLE INSURANCE TRUST
MFS Emerging Growth 1/2/98 -- -- 20.73% -- -- 15.61%
MFS Research 1/2/98 -- -- 18.09% -- -- 12.97%
MFS Growth with Income 1/2/98 -- -- 15.36% -- -- 10.24%
MFS High Income 1/2/98 -- -- 3.97% -- -- -1.14%
MFS World Governments 1/2/98 -- -- 1.73% -- -- -3.38%
MFS/Foreign & Colonial
Emerging Markets Equity 1/2/98 -- -- -13.24% -- -- -18.33%
OPPENHEIMER VARIABLE ACCOUNT
FUNDS
Oppenheimer High Income 1/2/98 -- -- 4.07% -- -- -1.03%
Oppenheimer Bond 1/2/98 -- -- 3.23% -- -- -1.87%
Oppenheimer Growth 1/2/98 -- -- 16.27% -- -- 11.16%
Oppenheimer Growth & Income 1/2/98 -- -- 12.33% -- -- 7.22%
Oppenheimer Strategic Bond 1/2/98 -- -- 2.63% -- -- -2.47%
PUTNAM VARIABLE TRUST
Putnam VT Growth and Income 1/2/98 -- -- 9.17% -- -- 4.06%
Putnam VT New Value 1/2/98 -- -- 3.13% -- -- -1.97%
Putnam VT Vista 1/2/98 -- -- 16.11% -- -- 11.00%
Putnam VT International 1/2/98 -- -- 18.97% -- -- 13.85%
Growth
Putnam VT International New 1/2/98 -- -- 15.53% -- -- 10.41%
Opportunities
</TABLE>
<TABLE>
<CAPTION>
PART 2
Certain investment portfolios ("Existing Funds") have been in existence for some
time and therefore have an investment performance history. In order to show how
investment performance of the Existing Funds affects accumulation unit values,
we have developed performance information.
The chart below shows the investment performance of the Existing Funds and the
accumulation unit performance calculated by assuming that accumulation units
were invested in the Existing Funds for the same periods.
The performance figures in Column A for the Existing Funds reflect the fees and
expenses paid by the Portfolio. Column B presents performance figures for the
accumulation units which reflect the insurance charges as well as the fees and
expenses of the Portfolio. Column C presents performance figures for the
accumulation units which reflect the insurance charges, the contract maintenance
charge, the fees and expenses of the Portfolio and assumes that you make a
withdrawal at the end of the period and therefore the withdrawal charge is
reflected.
Fund Performance Accumulation Unit Performance
Column A Column B Column C
(reflects insurance (reflects all charges
charges and and portfolio expenses)
portfolio expenses)
---------------------- ----------------------- ----------------------
Portfolio 10 yrs or 10 yrs or 10 yrs or
Inception since since since
Portfolio Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- ----------------- ----------- ------------------------ ------------------------ -----------------------
AIM VARIABLE INSURANCE
FUNDS, INC.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM V.I. Capital 5/5/93 18.21% 19.66% 19.48% 16.81% 18.26% 18.08% 11.71% 13.66% 17.98%
Appreciation
AIM V.I. International 5/5/93 13.76% 16.18% 15.40% 12.36% 14.78% 14.00% 7.26% 10.18% 13.90%
Equity
AIM V.I. Value 5/5/93 26.33% 20.73% 21.62% 24.93% 19.33% 20.22% 19.83% 14.73% 20.12%
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
Premier Growth 6/26/92 43.63% 26.24% 24.87% 42.23% 24.84% 23.47% 37.13% 20.24% 23.37%
Real Estate Investment 1/9/97 8.35% -- 10.23% 6.95% -- 8.83% 1.85% -- 4.23%
LIBERTY VARIABLE INVESTMENT
TRUST
Newport Tiger, Variable
Series 5/1/95 -51.57% -- -12.62% -52.97% -- -14.02% -58.07% -- -18.62%
GENERAL AMERICAN CAPITAL COMPANY
Money Market 10/1/87 5.76% 5.15% 6.02% 4.36% 3.75% 4.62% -0.74% -0.85% 4.52%
INVESTORS FUND SERIES
Kemper Small Cap Value 5/1/96 9.14% -- 11.60% 7.74% -- 10.20% 2.64% -- 5.60%
Kemper Government
Securities 9/3/87 8.73% 6.35% 7.87% 7.33% 4.95% 6.47% 2.23% 0.35% 6.37%
Kemper Small Cap Growth 5/2/94 32.29% -- 26.14% 30.89% -- 24.74% 25.79% -- 20.14%
MFS VARIABLE INSURANCE TRUST
MFS Emerging Growth 7/24/95 33.72% -- 27.38% 32.32% -- 25.98% 27.22% -- 21.38%
MFS Research 7/26/95 25.78% -- 25.24% 24.38% -- 23.84% 19.28% -- 19.24%
MFS Growth with Income 10/9/95 27.77% -- 28.96% 26.37% -- 27.56% 21.27% -- 22.96%
MFS High Income 7/26/95 11.34% -- 12.15% 9.94% -- 10.75% 4.84% -- 6.15%
MFS World Governments 6/14/94 2.75% -- 4.85% 1.35% -- 3.45% -3.75% -- -1.15%
MFS/Foreign & Colonial
Emerging Markets Equity 10/16/97 -- -- -21.39% -- -- -22.38% -- -- -27.48%
OPPENHEIMER VARIABLE ACCOUNT
FUNDS
Oppenheimer High Income 4/30/86 13.20% 11.43% 13.83% 11.80% 10.03% 12.43% 6.70% 5.43% 12.33%
Oppenheimer Bond 4/3/85 9.82% 7.30% 9.39% 8.42% 5.90% 7.99% 3.32% 1.30% 7.89%
Oppenheimer Growth 4/3/85 29.14% 21.75% 16.18% 27.74% 20.35% 14.78% 22.64% 15.75% 14.68%
Oppenheimer Growth & Income 7/5/95 31.56% -- 35.67% 30.16% -- 34.27% 25.06% -- 29.67%
Oppenheimer Strategic Bond 5/3/93 8.01% 7.76% 7.55% 6.61% 6.36% 6.15% 1.51% 1.76% 6.05%
PUTNAM VARIABLE TRUST
Putnam VT Growth and Income 2/1/88 17.87% 19.37% 16.85% 16.47% 17.97% 15.45% 11.37% 13.37% 15.35%
Putnam VT New Value 1/2/97 9.08% -- 14.32% 7.68% -- 12.92% 2.58% -- 8.32%
Putnam VT Vista 1/2/97 30.45% -- 27.75% 29.05% -- 26.35% 23.95% -- 21.75%
Putnam VT International
Growth 1/2/97 20.21% -- 24.80% 18.81% -- 23.40% 13.71% -- 18.80%
Putnam VT International New
Opportunities 1/2/97 3.99% -- 10.58% 2.59% -- 9.18% -2.51% -- 4.58%
TEMPLETON VARIABLE PRODUCTS
SERIES FUND, CLASS 1 SHARES
Templeton Developing
Markets* 3/1/96 -48.81% -- -25.10% -50.21% -- -26.50% -55.31% -- -31.10%
Templeton International 5/1/92 13.95% 19.07% 16.27% 12.55% 17.67% 14.87% 7.45% 13.07% 14.77%
Mutual Shares
Investments 5/1/98 -- -- -4.70% -- -- -4.93% -- -- -10.03%
<FN>
* Past fee waivers by the portfolio's manager increased its total returns.
</FN>
</TABLE>
CL-4118(10/98)
