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
AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. Capital Appreciation Sub-Account
Beginning of Period $10.00
End of Period $11.21
Number of Accum. Units Outstanding 94,788
AIM V.I. International Equity Sub-Account
Beginning of Period $10.00
End of Period $11.80
Number of Accum. Units Outstanding 147,132
AIM V.I. Value Sub-Account
Beginning of Period $10.00
End of Period $11.76
Number of Accum. Units Outstanding 232,878
MFS VARIABLE INSURANCE TRUST
MFS Emerging Growth Sub-Account
Beginning of Period $10.00
End of Period $12.07
Number of Accum. Units Outstanding 224,942
MFS Research Sub-Account
Beginning of Period $10.00
End of Period $11.81
Number of Accum. Units Outstanding 182,395
MFS Growth With Income Sub-Account
Beginning of Period $10.00
End of Period $11.54
Number of Accum. Units Outstanding 245,170
MFS High Income Sub-Account
Beginning of Period $10.00
End of Period $10.40
Number of Accum. Units Outstanding 68,090
MFS World Governments Sub-Account
Beginning of Period $10.00
End of Period $10.17
Number of Accum. Units Outstanding 961
MFS/Foreign & Colonial Emerging Markets Equity Sub-Account
Beginning of Period $10.00
End of Period $ 8.68
Number of Accum. Units Outstanding 55,324
VARIABLE INSURANCE PRODUCTS FUND
VIP Growth Sub-Account
Beginning of Period $10.00
End of Period $11.25
Number of Accum. Units Outstanding 3,710
VIP Equity-Income Sub-Account
Beginning of Period $10.00
End of Period $10.60
Number of Accum. Units Outstanding 3,470
VARIABLE INSURANCE PRODUCTS FUND II
VIP II Contrafund Sub-Account
Beginning of Period $10.00
End of Period $11.18
Number of Accum. Units Outstanding 2,210
VARIABLE INSURANCE PRODUCTS FUND III
VIP III Growth Opportunities Sub-Account
Beginning of Period $10.00
End of Period $10.56
Number of Accum. Units Outstanding 3,657
VIP III Growth & Income Sub-Account
Beginning of Period $10.00
End of Period $11.09
Number of Accum. Units Outstanding 38,401
The investment portfolios managed by A I M Advisors, Inc. and Massachusetts
Financial Services Company commenced investment operations on January 2, 1998.
The investment portfolios managed by Fidelity Management & Research Company,
Inc. commenced investment operations on February 17, 1998.
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>
<TABLE>
<CAPTION>
PART 1 VARIABLE INSURANCE PRODUCTS FUND
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
- ---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
VIP Growth 2/17/98 -- 12.47% -- 7.35%
VIP Equity-Income 2/17/98 -- 5.98% -- 0.87%
</TABLE>
<TABLE>
<CAPTION>
PART 1 VARIABLE INSURANCE PRODUCTS FUND II
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
- ---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
VIP II Contrafund 2/17/98 -- 11.78% -- 6.66%
</TABLE>
<TABLE>
<CAPTION>
PART 1 VARIABLE INSURANCE PRODUCTS FUND III
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
- ---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
VIP III Growth 2/17/98 -- 5.65% -- 0.54%
Opportunities
VIP III Growth 2/17/98 -- 10.87% -- 5.76%
& Income
</TABLE>
<TABLE>
<CAPTION>
PART 1 AIM VARIABLE INSURANCE FUNDS, INC.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
- ---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
AIM V.I. Capital 1/2/98 -- 12.11% -- 7.00%
Appreciation
AIM V.I. 1/2/98 -- 18.01% -- 12.89%
International
Equity
AIM V.I. Value 1/2/98 -- 17.65% -- 12.53%
</TABLE>
<TABLE>
<CAPTION>
PART 1 MFS VARIABLE INSURANCE TRUST
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Portfolio Date in 1 yr since 1 yr since
Portfolio inception inception
- ---------------- --------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
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%
</TABLE>
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.
<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>
<TABLE>
<CAPTION>
PART 2 VARIABLE INSURANCE PRODUCTS 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>
VIP Growth 10/9/86 29.23% 19.56% 16.58% 27.83% 18.16% 15.18% 22.73% 13.56% 15.08%
VIP Equity-Income 10/9/86 21.65% 20.01% 14.97% 20.25% 18.61% 13.57% 15.15% 14.01% 13.47%
</TABLE>
<TABLE>
<CAPTION>
PART 2 VARIABLE INSURANCE PRODUCTS FUND II
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
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception since since since
Portfolio Date 1 yr inception 1 yr inception 1 yr inception
- ---------------- --------- ------------- ------------ ------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
VIP II Contrafund 1/3/95 29.82% 29.34% 28.42% 27.94% 23.32% 23.34%
</TABLE>
<TABLE>
<CAPTION>
PART 2 VARIABLE INSURANCE PRODUCTS FUND III
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
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception since since since
Portfolio Date 1 yr inception 1 yr inception 1 yr inception
- ---------------- --------- ------------- ------------ ------- ------------- ----------- ------------
VIP III Growth
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Opportunities 1/3/95 25.31% 26.44% 23.91% 25.04% 18.81% 20.44%
VIP III Growth
& Income 12/31/96 31.05% 31.39% 29.65% 29.99% 24.55% 25.39%
</TABLE>
<TABLE>
<CAPTION>
PART 2 AIM VARIABLE INSURANCE FUNDS, INC.
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
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception since since since
Portfolio Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- ---------------- --------- ------- ------ ------------ ------ ------- ---------- ------ ----- ----------
AIM V.I. Capital
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Appreciation 5/5/93 18.21% 19.66% 19.48% 16.81% 18.26% 18.08% 11.71% 13.66% 17.98%
AIM V.I.
International
Equity 5/5/93 13.76% 16.18% 15.40% 12.36% 14.78% 14.00% 7.26% 10.18% 13.90%
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%
</TABLE>
<TABLE>
<CAPTION>
PART 2 MFS VARIABLE INSURANCE TRUST
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
charges and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception since since since
Portfolio Date 1 yr inception 1 yr inception 1 yr inception
- --------------- --------- ------------- ------------ ------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
CL-4117(10/98)
