COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT ONE
Supplement dated January 15, 1999
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by Cova Financial Services Life Insurance
Company and Cova Variable Annuity Account One.
1. As of the date of this supplement, the following investment portfolios are
now also available in connection with your contract:
Templeton International Fund
Templeton Stock Fund
Templeton Developing Markets Fund
2. The following supplements the information contained in the Cova Variable
Annuity Account One Fee Table under the heading "Investment Portfolio Expenses:"
<TABLE>
<CAPTION>
TEMPLETON VARIABLE PRODUCTS SERIES FUND, CLASS 1 SHARES
Management 12b-1 Other Total Annual
Fees Fees Expenses Portfolio Expenses
---- ---- -------- ------------------
Managed by Templeton Investment Counsel, Inc.
<S> <C> <C> <C>
Templeton International * .69% -- .19% .88%
Templeton Stock * .69% -- .19% .88%
Managed by Templeton Asset Management Ltd.
Templeton Developing Markets 1.25% -- .33% 1.58%
<FN>
* Management Fees and Total Annual Portfolio Expenses have been restated to
reflect the management fee schedule approved by shareholders and effective May
1, 1997. Actual Management Fees and Total Annual Portfolio Expenses before May
1, 1997 were lower.
</FN>
</TABLE>
3. The following supplements the information contained under the heading
"Examples:"
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets:
(a) upon surrender at the end of each time period;
(b) if the contract is not surrendered or is annuitized.
<TABLE>
<CAPTION>
Time Periods
1 year 3 years
Managed by Templeton Investment Counsel, Inc.
<S> <C> <C>
Templeton International (a)$74.10 (a)$119.07
(b)$24.10 (b)$ 74.07
Templeton Stock (a)$74.10 (a)$119.07
(b)$24.10 (b)$ 74.07
Managed by Templeton Asset Management Ltd.
Templeton Developing Markets (a)$81.08 (a)$139.90
(b)$31.08 (b)$ 94.90
</TABLE>
4. The following supplements Section 4 - Investment Options:
TEMPLETON VARIABLE PRODUCTS SERIES FUND
Templeton Variable Products Series Fund is a mutual fund with multiple
portfolios. Templeton Variable Products Series Fund issues two classes of shares
- - Class 1 and Class 2. Only shares of Class 1 are available under your contract.
Templeton Investment Counsel, Inc. is the investment manager of the Templeton
International Fund and the Templeton Stock Fund and Templeton Asset Management
Ltd. is the investment manager of the Templeton Developing Markets Fund. The
following portfolios are available under the contract:
Templeton International Fund
Templeton Stock Fund
Templeton Developing Markets Fund
5. The following is added to Section 10 - Other Information:
YEAR 2000
Cova has developed and initiated plans to assure that its computer systems will
function properly in the year 2000 and later years. These efforts have included
receiving assurances from outside service providers that their computer systems
will also function properly in this context. Included within these plans are the
computer systems of the advisers and sub-advisers of the various investment
portfolios underlying the Separate Account.
Although an assessment of the total cost of implementing these plans has not
been completed, the total amounts to be expended are not expected to have a
material effect on Cova's financial position or results of operations. Cova
believes that it has taken all reasonable steps to address these potential
problems. There can be no assurance, however, that the steps taken will be
adequate to avoid any adverse impact.
6. The following supplements the performance information contained in Appendix
B:
<TABLE>
<CAPTION>
PART 2 TEMPLETON VARIABLE PRODUCTS SERIES 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 charges
charges and portfolio and portfolio
expenses) expenses)
Portfolio 10 yrs 10 yrs 10 yrs
Portfolio, Inception or since or since or since
Class 1 Shares Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- ---------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Templeton International 5/1/92 3.95% 19.07% 16.27% 12.55% 17.67% 14.87% 7.45% 13.07% 14.77%
Templeton Stock 8/24/88 7.88% 17.14% 13.75% 6.48% 15.74% 12.35% 1.38% 11.14% 12.25%
Templeton Developing
Markets 3/1/96 -48.81% -- -25.10% -50.21% -- -26.50% -55.31% -- -31.10%
</TABLE>
CL-4143 (1/99)
