<PAGE>
PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
SEPARATE ACCOUNT V
SUPPLEMENT DATED MARCH 11, 1998
TO THE PROSPECTUS DATED APRIL 30, 1997
AS SUPPLEMENTED DECEMBER 5, 1997, AUGUST 8, 1997
AND JUNE 13, 1997
FOR THE PROVIDIAN MARQUEE VARIABLE ANNUITY A UNITS
OFFERED BY
PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
(A MISSOURI STOCK COMPANY)
The number of fixed options referred to in the third paragraph on page 1 is
hereby increased from three to four.
* * * * *
The definition of "General Account Guaranteed Option" appearing on page 3 is
hereby deleted and replaced in its entirety as follows:
Any of the following four General Account options offered by your Contract and
to which you may allocate your Net Purchase Payments: the Dollar Cost Averaging
Fixed Account Option, the One-Year Guaranteed Rate Option, the Multi-Year
Guaranteed Rate Option, and the Guaranteed Equity Option. The General Account
Guaranteed Options are available for sale in most, but not all, states and the
structure and characteristics of these options vary by state. (See "The General
Account," at Appendix A.)
* * * * *
The number of General Account Guaranteed Options referred to in the first
sentence of the paragraph appearing under the heading "THE PROVIDIAN MARQUEE
VARIABLE ANNUITY A UNITS" on page 5 is hereby increased from three to four.
* * * * *
The second paragraph under the heading "GENERAL ACCOUNT GUARANTEED OPTIONS"
(which heading appears on page 5) is hereby deleted and replaced in its entirety
as follows:
The Dollar Cost Averaging Fixed Account Option described in Appendix A may not
be available in all states. Please see your sales representative for details of
the availability of this option before purchasing. If your state of issue is
any state other than those listed in the immediately following sentence, then
your General Account Guaranteed Options
<PAGE>
(other than the Dollar Cost Averaging Fixed Account Option) are described in
Part 1 of Appendix A. If your state of issue is IN, MD, MA, OK, PA or TX, then
your General Account Guaranteed Options (other than the Dollar Cost Averaging
Fixed Account Option) are described in Part 2 of Appendix A. Please read
Appendix A and the relevant Part 1 or Part 2 carefully.
* * * * *
The paragraph under the heading "EXCHANGES" (which heading appears on page 6) is
hereby deleted and replaced in its entirety as follows:
You may make unlimited Exchanges among Portfolios or into the General Account
Guaranteed Options, provided that you maintain a minimum balance of $250 in each
Subaccount or $1,000 in each General Account Guaranteed Option (except the
Dollar Cost Averaging Fixed Account), respectively, to which you have allocated
a portion of your Accumulated Value. However, prior to the Annuity Date, no
Exchanges (except through Dollar Cost Averaging) will be allowed from the Dollar
Cost Averaging Fixed Account. No fee is currently imposed for such Exchanges;
however, we reserve the right to charge a $15 fee for Exchanges in excess of 12
per Contract Year. Exchanges must not reduce the value of any allocation to any
Subaccount or General Account Guaranteed Option (except the Dollar Cost
Averaging Fixed Account Option) below $250 or $1,000, respectively, or that
remaining amount will be transferred to your other Subaccounts or General
Account Guaranteed Options on a pro rata basis. The Guaranteed Equity Option is
illiquid for the entire guarantee period, and transfers from the Guaranteed Rate
Options (where permitted) may be subject to additional limitations and charges.
(See also "Charges and Deductions," page 17, and "The General Account," at
Appendix A.) ...... Page 19
* * * * *
The second paragraph under the heading "GENERAL ACCOUNT GUARANTEED OPTIONS"
(which heading appears on page 16) is hereby deleted and replaced in its
entirety as follows:
The Dollar Cost Averaging Fixed Account Option described in Appendix A may not
be available in all states. Please see your sales representative for details of
the availability of this option before purchasing. If your state of issue is
any state other than those listed in the immediately following sentence, then
your General Account Guaranteed Options (other than the Dollar Cost Averaging
Fixed Account Option) are described in Part 1 of Appendix A. If your state of
issue is IN, MD, MA, OK, PA or TX, then your General Account Guaranteed Options
(other than the Dollar Cost Averaging Fixed Account Option) are described in
Part 2 of Appendix A. Please read Appendix A and the relevant Part 1 or Part 2
carefully.
<PAGE>
* * * * *
The following is hereby added as the third paragraph under the heading "FULL AND
PARTIAL WITHDRAWALS" (which heading appears on page 20):
Partial withdrawals from the Dollar Cost Averaging Fixed Account Option are made
on a first-in, first-out basis, so that amounts put into the Dollar Cost
Averaging Fixed Account Option first will be withdrawn first. For federal
income tax purposes, however, partial withdrawals are generally taken out of
earnings first and then purchase payments. (See "Federal Tax Considerations,"
page 24.)
* * * * *
The heading "DOLLAR COST AVERAGING OPTION" (which heading appears on page 20) is
hereby deleted and replaced in its entirety as follows:
DOLLAR COST AVERAGING OPTIONS
Dollar Cost Averaging Money Market Option
* * * * *
The following subheading and sentence are hereby added to the heading "DOLLAR
COST AVERAGING OPTIONS" (which heading appears on page 20) after the third
paragraph thereunder:
Dollar Cost Averaging Fixed Account Option
For information about the Dollar Cost Averaging Fixed Account Option, see
Appendix A.
* * * * *
The fifth paragraph under the heading "THE GENERAL ACCOUNT" (which heading
appears on page A-1) is hereby deleted and replaced in its entirety as follows:
There are four fixed options under the General Account: the Dollar Cost
Averaging Fixed Account Option, the One-Year Guaranteed Rate Option, the Multi-
Year Guaranteed Rate Option, and the Guaranteed Equity Option, each described
below.
The Dollar Cost Averaging Fixed Account Option
----------------------------------------------
The Dollar Cost Averaging Fixed Account Option may not be available in all
states. Please see your sales representative for details of the availability of
this option before purchasing.
<PAGE>
The Dollar Cost Averaging Fixed Account Option has a one-year interest rate
guarantee. The current interest rate the Company credits may vary on different
portions of the Dollar Cost Averaging Fixed Account Option. The credited
interest rate will never be less than the minimum effective annual interest rate
of 3%.
If prior to the Annuity Date you have at least $5,000 in the Dollar Cost
Averaging Fixed Account, you may choose to have a specified dollar amount
automatically transferred from this Account to any Portfolios in the Separate
Account. The automatic transfer will occur monthly on a first-in, first-out
basis, so that amounts put into the Account first will be transferred out of the
Account first.
The main objective of Dollar Cost Averaging is to shield your investment from
short-term price fluctuations. Since the same dollar amount is transferred to
Portfolios each month, more units are purchased in a Portfolio if the value per
unit is low and fewer units are purchased if the value per unit is high.
Therefore, a lower average cost per unit may be achieved over the long term.
This plan of investing allows investors to take advantage of market fluctuations
but does not assure a profit or protect against a loss in declining markets.
This Dollar Cost Averaging Option may be elected on the customer order form or
at a later date. The minimum amount that may be transferred each month into any
Portfolio is $250. The maximum amount that may be transferred is equal to the
Accumulated Value in the Dollar Cost Averaging Fixed Account Option when
elected, divided by 12.
If the Company receives a Dollar Cost Averaging Fixed Account Option request
prior to the 28th day of any month, the first transfer from the Dollar Cost
Averaging Fixed Account Option will occur on the 28th day of that month. If the
Company receives a Dollar Cost Averaging Fixed Account Option request on or
after the 28th day of any month, the first transfer will occur on the 28th day
of the following month. The dollar amount will be allocated to the Portfolios
in the proportions you specify (in whole percentages only) on the appropriate
Company form. If, on any transfer date, the Accumulated Value is equal to or
less than the amount you have elected to have transferred, the entire amount
will be transferred and the option will end. You may change the transfer amount
once each Contract Year. You may change the choice of Portfolios to which
transfers are allocated at any time. The Company must receive notice of any
change on the appropriate Company form or by telephone at least seven days
before the next transfer date. Transfers must be scheduled for at least six,
but not more than twenty-four, months each time the Dollar Cost Averaging Fixed
Account Option is elected.
Prior to the Annuity Date, no Exchanges (except through automatic Dollar Cost
Averaging Exchanges) will be allowed from the Dollar Cost Averaging Fixed
Account. On the Annuity Date, any funds remaining in the Dollar Cost Averaging
Fixed Account will be applied to the Annuity Payment Option selected.
<PAGE>
You may discontinue automatic transfers from the Dollar Cost Averaging Fixed
Account Option after satisfying the minimum number of required transfers by
contacting the Company by phone or by written notice at least seven days before
the next transfer date. If for any reason you terminate automatic transfers
from the Dollar Cost Averaging Fixed Account, any remaining value attributable
to the Dollar Cost Averaging Fixed Account will remain in the Dollar Cost
Averaging Fixed Account and will continue to earn interest until such time as
you either restart automatic transfers or make a full withdrawal of the funds.
If you wish to restart automatic transfers but have less than $5,000 in the
Dollar Cost Averaging Fixed Account, an exception will be made and automatic
transfers will continue until the value in the Dollar Cost Averaging Fixed
Account is depleted. After such a resumption of automatic transfers, you will
not be able to discontinue the automatic transfers until the value in the Dollar
Cost Averaging Fixed Account is depleted.
The Company may defer payment of a partial or full withdrawal from the Dollar
Cost Averaging Fixed Account Option for up to six months from its receipt of
written notice.
<PAGE>
PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
SEPARATE ACCOUNT V
SUPPLEMENT DATED MARCH 11, 1998
TO THE PROSPECTUS DATED APRIL 30, 1997
AS SUPPLEMENTED DECEMBER 5, 1997, AUGUST 8, 1997
AND JUNE 13, 1997
FOR THE PROVIDIAN MARQUEE VARIABLE ANNUITY
OFFERED BY
PROVIDIAN LIFE AND HEALTH INSURANCE COMPANY
(A MISSOURI STOCK COMPANY)
The number of fixed options referred to in the third paragraph on page 1 is
hereby increased from three to four.
* * * * *
The definition of "General Account Guaranteed Option" appearing on page 3 is
hereby deleted and replaced in its entirety as follows:
Any of the following four General Account options offered by your Contract and
to which you may allocate your Net Purchase Payments: the Dollar Cost Averaging
Fixed Account Option, the One-Year Guaranteed Rate Option, the Multi-Year
Guaranteed Rate Option, and the Guaranteed Equity Option. The General Account
Guaranteed Options are available for sale in most, but not all, states, and the
structure and characteristics of these options vary by state. (See "The General
Account," at Appendix A.)
* * * * *
The number of General Account Guaranteed Options referred to in the first
sentence of the paragraph appearing under the heading "THE PROVIDIAN MARQUEE
VARIABLE ANNUITY" on page 5 is hereby increased from three to four.
* * * * *
The second paragraph under the heading "GENERAL ACCOUNT GUARANTEED OPTIONS"
(which heading appears on page 5) is hereby deleted and replaced in its entirety
as follows:
The Dollar Cost Averaging Fixed Account Option described in Appendix A may not
be available in all states. Please see your sales representative for details of
the availability of this option before purchasing. If your state of issue is
any state other than those listed in the immediately following sentence, then
your General Account Guaranteed Options
<PAGE>
(other than the Dollar Cost Averaging Fixed Account Option) are described in
Part 1 of Appendix A. If your state of issue is IN, MD, MA, OK, PA or TX, then
your General Account Guaranteed Options (other than the Dollar Cost Averaging
Fixed Account Option) are described in Part 2 of Appendix A. Please read
Appendix A and the relevant Part 1 or Part 2 carefully.
* * * * *
The paragraph under the heading "EXCHANGES" (which heading appears on page 6) is
hereby deleted and replaced in its entirety as follows:
You may make unlimited Exchanges among Portfolios or into the General Account
Guaranteed Options, provided that you maintain a minimum balance of $250 in each
Subaccount or $1,000 in each General Account Guaranteed Option (except the
Dollar Cost Averaging Fixed Account), respectively, to which you have allocated
a portion of your Accumulated Value. However, prior to the Annuity Date, no
Exchanges (except through Dollar Cost Averaging) will be allowed from the Dollar
Cost Averaging Fixed Account. No fee is currently imposed for such Exchanges;
however, we reserve the right to charge a $15 fee for Exchanges in excess of 12
per Contract Year. Exchanges must not reduce the value of any allocation to any
Subaccount or General Account Guaranteed Option (except the Dollar Cost
Averaging Fixed Account Option) below $250 or $1,000, respectively, or that
remaining amount will be transferred to your other Subaccounts or General
Account Guaranteed Options on a pro rata basis. The Guaranteed Equity Option is
illiquid for the entire guarantee period, and transfers from the Guaranteed Rate
Options (where permitted) may be subject to additional limitations and charges.
(See also "Charges and Deductions," page 16, and "The General Account," at
Appendix A.) ...... Page 19
* * * * *
The second paragraph under the heading "GENERAL ACCOUNT GUARANTEED OPTIONS"
(which heading appears on page 16) is hereby deleted and replaced in its
entirety as follows:
The Dollar Cost Averaging Fixed Account Option described in Appendix A may not
be available in all states. Please see your sales representative for details of
the availability of this option before purchasing. If your state of issue is
any state other than those listed in the immediately following sentence, then
your General Account Guaranteed Options (other than the Dollar Cost Averaging
Fixed Account Option) are described in Part 1 of Appendix A. If your state of
issue is IN, MD, MA, OK, PA or TX, then your General Account Guaranteed Options
(other than the Dollar Cost Averaging Fixed Account Option) are described in
Part 2 of Appendix A. Please read Appendix A and the relevant Part 1 or Part 2
carefully.
<PAGE>
* * * * *
The following is hereby added as the third paragraph under the heading "FULL AND
PARTIAL WITHDRAWALS" (which heading appears on page 19):
Partial withdrawals from the Dollar Cost Averaging Fixed Account Option are made
on a first-in, first-out basis, so that amounts put into the Dollar Cost
Averaging Fixed Account Option first will be withdrawn first. For federal
income tax purposes, however, partial withdrawals are generally taken out of
earnings first and then purchase payments. (See "Federal Tax Considerations,"
page 24.)
* * * * *
The heading "DOLLAR COST AVERAGING OPTION" (which heading appears on page 20) is
hereby deleted and replaced in its entirety as follows:
DOLLAR COST AVERAGING OPTIONS
Dollar Cost Averaging Money Market Option
* * * * *
The following subheading and sentence are hereby added to the heading "DOLLAR
COST AVERAGING OPTIONS" (which heading appears on page 20) after the third
paragraph thereunder:
Dollar Cost Averaging Fixed Account Option
For information about the Dollar Cost Averaging Fixed Account Option, see
Appendix A.
* * * * *
The fifth paragraph under the heading "THE GENERAL ACCOUNT" (which heading
appears on page A-1) is hereby deleted and replaced in its entirety as follows:
There are four fixed options under the General Account: the Dollar Cost
Averaging Fixed Account Option, the One-Year Guaranteed Rate Option, the Multi-
Year Guaranteed Rate Option, and the Guaranteed Equity Option, each described
below.
The Dollar Cost Averaging Fixed Account Option
----------------------------------------------
The Dollar Cost Averaging Fixed Account Option may not be available in all
states. Please see your sales representative for details of the availability of
this option before purchasing.
<PAGE>
The Dollar Cost Averaging Fixed Account Option has a one-year interest rate
guarantee. The current interest rate the Company credits may vary on different
portions of the Dollar Cost Averaging Fixed Account Option. The credited
interest rate will never be less than the minimum effective annual interest rate
of 3%.
If prior to the Annuity Date you have at least $5,000 in the Dollar Cost
Averaging Fixed Account, you may choose to have a specified dollar amount
transferred from this Account to any Portfolios in the Separate Account on a
monthly basis. The automatic transfer will occur monthly on a first-in, first-
out basis, so that amounts put into the Account first will be transferred out of
the Account first.
The main objective of Dollar Cost Averaging is to shield your investment from
short-term price fluctuations. Since the same dollar amount is transferred to
Portfolios each month, more units are purchased in a Portfolio if the value per
unit is low and fewer units are purchased if the value per unit is high.
Therefore, a lower average cost per unit may be achieved over the long term.
This plan of investing allows investors to take advantage of market fluctuations
but does not assure a profit or protect against a loss in declining markets.
This Dollar Cost Averaging Option may be elected on the customer order form or
at a later date. The minimum amount that may be transferred each month into any
Portfolio is $250. The maximum amount that may be transferred is equal to the
Accumulated Value in the Dollar Cost Averaging Fixed Account Option when
elected, divided by 12.
If the Company receives a Dollar Cost Averaging Fixed Account Option request
prior to the 28th day of any month, the first transfer from the Dollar Cost
Averaging Fixed Account Option will occur on the 28th day of that month. If the
Company receives a Dollar Cost Averaging Fixed Account Option request on or
after the 28th day of any month, the first transfer will occur on the 28th day
of the following month. The dollar amount will be allocated to the Portfolios
in the proportions you specify (in whole percentages only) on the appropriate
Company form. If, on any transfer date, the Accumulated Value is equal to or
less than the amount you have elected to have transferred, the entire amount
will be transferred and the option will end. You may change the transfer amount
once each Contract Year. You may change the choice of Portfolios to which
transfers are allocated at any time. The Company must receive notice of any
change on the appropriate Company form or by telephone at least seven days
before the next transfer date. Transfers must be scheduled for at least six,
but not more than twenty-four, months each time the Dollar Cost Averaging Fixed
Account Option is elected.
Prior to the Annuity Date, no Exchanges (except through Dollar Cost Averaging)
will be allowed from the Dollar Cost Averaging Fixed Account. On the Annuity
Date, any funds remaining in the Dollar Cost Averaging Fixed Account will be
applied to the Annuity Payment Option selected.
<PAGE>
You may discontinue automatic transfers from the Dollar Cost Averaging Fixed
Account Option after satisfying the minimum number of required transfers by
contacting the Company by phone or by written notice at least seven days before
the next transfer date. If for any reason you terminate automatic transfers
from the Dollar Cost Averaging Fixed Account, any remaining value attributable
to the Dollar Cost Averaging Fixed Account will remain in the Dollar Cost
Averaging Fixed Account and will continue to earn interest until such time as
you either restart automatic transfers or make a full withdrawal of the funds.
If you wish to restart automatic transfers but have less than $5,000 in the
Dollar Cost Averaging Fixed Account, an exception will be made and automatic
transfers will continue until the value in the Dollar Cost Averaging Fixed
Account is depleted. After such a resumption of automatic transfers, you will
not be able to discontinue the automatic transfers until the value in the Dollar
Cost Averaging Fixed Account is depleted.
The Company may defer payment of a partial or full withdrawal from the Dollar
Cost Averaging Fixed Account Option for up to six months from its receipt of
written notice.
