<PAGE>
VARIFUND(R) ANNUITY
[LOGO OF VARIFUND APPEARS HERE]
VARIABLE SUB-ACCOUNT PERFORMANCE Average Annual Total Returns For
Single Premium Variable Annuity Periods Ending June 30, 1999
Assuming Contract Continues
<TABLE>
<CAPTION>
One Three Five Ten
Portfolio Type Portfolio YTD Year Year Year Year
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Equity Portfolios Alger American Growth 15.16% 33.23% 30.07% 28.28% 20.71%
Alger American Leveraged AllCap 24.62% 55.41% 31.64% N/A N/A
Alger American MidCap Growth 12.08% 20.29% 18.65% 23.58% N/A
Alger American Small Capitalization 12.50% 13.84% 10.48% 18.05% 15.94%
Berger Small Company Growth 14.87% 2.91% 8.99% N/A N/A
CLASF Capital 11.34% 14.66% 16.56% 19.47% N/A
CLASF Value Equity 7.21% 2.95% 12.08% 12.71% N/A
Dreyfus Capital Appreciation 6.72% 14.25% 24.65% 24.26% N/A
Dreyfus Growth & Income 10.27% 14.93% 12.37% 20.55% N/A
Dreyfus Socially Responsible 11.95% 21.44% 25.92% 23.80% N/A
Fidelty VIP II Contrafund 10.44% 22.06% 24.34% N/A N/A
Fidelty VIP Growth 13.58% 32.01% 25.01% 25.78% 15.15%
Montgomery Growth 18.30% 11.41% 18.61% N/A N/A
Fidelty VIP II Index 500 11.23% 20.65% 26.75% 25.65% N/A
Fidelty VIP III Growth Opportunities 5.70% 17.44% 22.58% N/A N/A
Seligman Frontier (6.74)% (15.86)% 1.80% N/A N/A
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International Berger-IPT International 5.47% 4.72% N/A N/A N/A
CLASF International Equity 10.84% 10.24% 10.24% N/A N/A
Fidelty VIP Overseas 7.32% 3.58% 11.08% 9.12% 8.97%
Montgomery Emerging Markets 30.30% 9.20% (7.63)% N/A N/A
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Specialty Portfolio Seligman Communications & Information 20.06% 43.77% 29.50% N/A N/A
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Balanced CLASF Managed 2.25% 2.26% 8.02% 9.55% N/A
Fidelity VIP II Asset Manager 4.49% 9.18% 14.83% 12.62% N/A
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Fixed Income Portfolios CLASF Bond (4.11)% 0.51% 4.39% 5.39% N/A
Fidelty VIP High Income 7.17% (2.89)% 7.31% 9.16% 9.76%
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Money Market CLASF Money Market 1.29% 2.87% 3.18% 3.17% N/A
<CAPTION>
Since Fund
Fund Inception
Portfolio Type Portfolio Inception Date
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Portfolios Alger American Growth 20.85% 01/08/89
Alger American Leveraged AllCap 39.32% 01/25/95
Alger American MidCap Growth 22.06% 05/03/93
Alger American Small Capitalization 17.59% 09/20/88
Berger Small Company Growth 10.13% 05/01/96
CLASF Capital 15.40% 04/23/93
CLASF Value Equity 9.91% 12/04/89
Dreyfus Capital Appreciation 19.32% 03/31/93
Dreyfus Growth & Income 19.50% 05/02/94
Dreyfus Socially Responsible 21.59% 10/07/93
Fidelty VIP II Contrafund 26.22% 01/03/95
Fidelty VIP Growth 16.17% 10/09/96
Montgomery Growth 21.32% 02/09/96
Fidelty VIP II Index 500 19.75% 08/27/92
Fidelty VIP III Growth Opportunities 22.95% 01/03/95
Seligman Frontier 12.62% 10/11/94
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International Berger-IPT International 7.57% 05/01/97
CLASF International Equity 11.35% 04/24/95
Fidelty VIP Overseas 7.33% 01/26/87
Montgomery Emerging Markets (5.41)% 02/02/96
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Specialty Portfolio Seligman Communications & Information 25.75% 10/11/94
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Balanced CLASF Managed 8.09% 12/04/89
Fidelity VIP II Asset Manager 11.24% 09/06/89
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Fixed Income Portfolios CLASF Bond 5.59% 12/04/89
Fidelty VIP High Income 9.69% 09/19/85
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Money Market CLASF Money Market 2.96% 12/04/89
</TABLE>
CLASF Money Market Portfolio current yield (annualized yield for a seven day
period ended June 30, 1999) is 4.23% VariFund Fixed Account 1 year rate was
4.50% as of July 1, 1999. The performance data quoted is after the deduction of
all fees and charges, except for possible surrender charges. For performance
figures after deduction of all fees and charges, including the maximum possible
surrender charge, please see the reverse side. Performance data represents past
performance and is not a guarantee of future results. Investment returns and
principal value may fluctuate so that an investor's shares, when redeemed, may
be more or less than his or her original cost. Performance figures for
portfolios with inception dates prior to December 4, 1989 reflect performance if
VariFund existed at the inception of those portfolios. Contact your registered
representative or call Canada Life Insurance Company of New York, Ardslay, NY at
(914) 893-2300 for a prospectus containing full details including information on
fees and charges. Please read the prospectus carefully before investing or
sending money.
Date of first use May 31, 1999
<PAGE>
VARIFUND(R) ANNUITY
VARIABLE SUB-ACCOUNT PERFORMANCE Average Annual Total Returns For
Single Premium Variable Annually Periods Ending June 30, 1998
Assuming Contract Is Surrendered
At End Of Period
<TABLE>
<CAPTION>
Since Sub-Account
One Three Five Ten Sub-Acct Inception
Portfolio Type Portfolio YTD Year Year Year Year Inception Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity Portfolios Alger American Growth 9.76 % 27.83 % 29.17 % N/A N/A 26.91 % 05/01/96
Alger American Leveraged AllCap 19.22 % 50.01 % 30.77 % N/A N/A 27.95 % 05/01/96
Alger American MidCap Growth 6.68 % 14.89 % 17.58 % N/A N/A 15.16 % 05/01/96
Alger American Small Capitalization 7.10 % 8.44 % 9.23 % N/A N/A 7.39 % 05/01/96
Berger Small Company Growth 9.47 % (2.49)% N/A N/A N/A (4.36)% 05/01/98
CLASF Capital 5.94 % 9.26 % 15.45 % 19.20 % N/A (5.31)% 05/01/93
CLASF Value Equity 1.81 % (2.45)% 10.87 % 12.37 % N/A 9.91 % 12/04/89
Dreyfus Capital Appreciation 1.32 % 8.85 % N/A N/A N/A 10.71 % 05/01/98
Dreyfus Growth & Income 4.87 % 9.53 % 11.17 % N/A N/A 12.26 % 05/01/96
Dreyfus Socially Responsible 6.55 % 16.04 % 24.97 % N/A N/A 23.71 % 05/01/96
Fidelity VIP II Contrafund 5.04 % 16.66 % N/A N/A N/A 16.82 % 05/01/98
Fidelity VIP Growth 8.18 % 26.61 % 24.05 % 25.57 % N/A 22.74 % 05/01/94
Montgomery Growth 12.90 % 6.01 % N/A N/A N/A 18.07 % 05/01/97
Fidelity VIP II Index 500 5.83 % 15.25 % 25.81 % N/A N/A 25.39 % 05/01/96
Fidelity VIP III Growth Opportunities 0.30 % 12.04 % N/A N/A N/A 11.66 % 05/01/98
Seligman Frontier (12.14)% (21.28)% 0.33 % N/A N/A 9.61 % 05/01/95
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International Berger-IPT International 0.07 % (0.68)% N/A N/A N/A 5.64 % 05/01/97
CLASF International Equity 5.44 % 4.84 % 8.71 % N/A N/A 10.77 % 05/01/95
Fidelity VIP Overseas 1.92 % (1.62)% 9.85 % 8.73 % N/A 7.89 % 05/01/94
Montgomery Emerging Markets 24.90 % 3.80 % (9.42)% N/A N/A (8.35)% 05/01/98
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Speciality Seligman Communications &
Portfolio Information 14.66 % 38.37 % 28.60 % N/A N/A 23.37 % 05/01/95
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Balanced CLASF Managed (3.15)% (3.14)% 6.72 % 9.17 % N/A 8.09 % 12/04/89
Fidelity VIP II Asset Manager (0.91)% 3.78 % 13.68 % 12.28 % N/A 11.41 % 05/01/94
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Fixed Income CLASF Bond (9.51)% (4.89)% 2.99 % 4.95 % N/A 5.59 % 12/04/89
Fidelity VIP High Income 1.77 % (8.29)% 5.99 % 8.80 % N/A 8.40 % 05/01/94
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Money Market CLASF Money Market (4.11)% (2.53)% 1.75 % 2.69 % N/A 2.96 % 12/04/89
</TABLE>
The above figures are SEC required "standardized" performance returns which
include the deduction of all fees and charges, including the maximum possible
sales charge. These figures may not be applicable to your contract, since you
may not have to pay these early withdrawal charges. Please see the prospectus
for more details. CLASF refers to Canada Life of America Series Fund, Inc.
Fidelity VIP and Fidelity VIP II refer to Fidelity Investments Variable
Insurance Products Fund and Fidelity Variable Insurance Products Fund(R).
Annuities are not deposits of, or guaranteed by a depository institution. They
are not insured by FDIC or any federal agency, and as such are subject to
investment risk including possible loss of principal invested. The FIXED account
portions of a variable annuity (NOT the separate accounts) are tracked by the
issuing insurance company.
Variable Annuity Contract Issued By: Canada Life Insurance Company of New York,
410 Saw Mill River Road, Ardsley, NY 10502 and distributed by its affiliate
Canada Life of American Financial Services, Inc. 6701 Powers Ferry Road, N.W.
Atlanta GA 30039.
