COVA FINANCIAL LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT FIVE
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:
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CONDENSED FINANCIAL INFORMATION
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.
Period Year or
Ended Period Ended
6/30/98 12/31/97
(unaudited)
RUSSELL INSURANCE FUNDS
Multi-Style Equity Sub-Account *
<S> <C>
Beginning of Period $10.00
End of Period $11.99
Number of Accum. Units Outstanding 15,243
Aggressive Equity Sub-Account *
Beginning of Period $10.00
End of Period $10.67
Number of Accum. Units Outstanding 3,302
Non-U.S. Sub-Account *
Beginning of Period $10.00
End of Period $11.24
Number of Accum. Units Outstanding 5,491
Core Bond Sub-Account *
Beginning of Period $10.00
End of Period $10.35
Number of Accum. Units Outstanding 13,610
GENERAL AMERICAN CAPITAL COMPANY
Money Market Sub-Account
Beginning of Period $10.67 $10.63
End of Period $10.89 $10.67
Number of Accum. Units Outstanding 50,373 14,091
<FN>
* The number of accumulation unit values shown for the beginning of the
period reflect the date they were first offered for sale under the
contracts which was January 2, 1998. The accumulation unit values shown for
the beginning of the period for the General American Money Market
Sub-Account reflect the date they were first offered for sale through the
Separate Account which was on December 4, 1997.
</FN>
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3. The following information replaces the information contained in Appendix B
- Performance Information:
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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 Chart below reflects the performance of the accumulation units invested in
the Portfolios for the periods shown.
Column A presents performance figures for the accumulation units which reflect
the insurance charges and fees and expenses of each portfolio. Column B presents
performance figures for the accumulation units which reflect the insurance
charges, the contract maintenance charge, the fees and expenses of each
portfolio, and assumes that you make a withdrawal at the end of the period and
therefore the withdrawal charge is reflected.
PART 1
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A (reflects Column B (reflects
insurance charges all charges
and portfolio expenses) and portfolio expenses)
---------------------- -----------------------
Separate Account
Inception Date 1 Since 1 Since
Portfolio in Portfolio Year Inception Year Inception
- --------- ----------------- ----------------- ------------------
Russell Insurance Funds
<S> <C> <C> <C> <C>
Multi-Style Equity 1/2/98 -- 18.19% -- 13.07%
Aggressive Equity 1/2/98 -- 6.70% -- 1.60%
Non-U.S. 1/2/98 -- 12.43% -- 7.31%
Core Bond 1/2/98 -- 3.55% -- -1.56%
General American Capital Company
Money Market 12/4/97 -- 2.36% -- -2.74%
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<CAPTION>
PART 2
The contracts are relatively new and therefore have no meaningful performance
history. However, the portfolios of Russell Insurance Funds and the Money Market
Fund of General American Capital Company have been in existence for some time
and have an investment performance history. In order to show how the historical
performance of the portfolios affects the contract's accumulation unit values,
the following performance was developed. The information is based upon the
historical experience of the portfolios and is for the periods shown. The chart
below shows the investment performance of the portfolios and the accumulation
unit performance calculated by assuming that the contracts were invested in the
portfolios for the same periods.
The performance figures in Column A reflect the fees and expenses paid by each
portfolio. Column B presents performance figures for the accumulation units
which reflect the insurance charges and the fees and expenses of each portfolio.
Column C presents performance figures for the accumulation units which reflect
the insurance charges, the contract maintenance charge, the fees and expenses of
each portfolio, and assumes that you make a withdrawal at the end of the period
and therefore the withdrawal charge is reflected.
PART 2
Average Annual Total Return for the periods ended 6/30/98:
Accumulation Unit Performance
Column B Column C
(reflects insurance (reflects all charges
Portfolio Performance charges and and portfolio
Column A portfolio expenses) 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
- ------------------------------------------------------------------------------------------------------------------------------------
Russell Insurance Funds
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Multi-Style Equity 1/2/97 34.35% -- 34.01% 32.95% -- 32.61% 27.85% -- 28.01%
Aggressive Equity 1/2/97 24.54% -- 28.07% 23.14% -- 26.67% 18.04% -- 22.07%
Non-U.S. 1/2/97 1.16% -- 8.62% -0.24% -- 7.22% -5.34% -- 2.62%
Core Bond 1/2/97 10.64% -- 9.18% 9.24% -- 7.78% 4.14% -- 3.18%
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%
- ------------------------------------------------------------------------------------------------------------------------------------
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CC-4121(10/98)
