COVA FINANCIAL LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT FIVE
Supplement dated November 13, 1998 to
Prospectus dated May 1, 1998
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by Cova Financial Life Insurance Company
("Cova Life") and Cova Variable Annuity Account Five ("Variable Account Five").
Shares of the MFS/Foreign & Colonial Emerging Markets Equity Series of the MFS
Variable Insurance Trust are no longer offered for sale. No initial purchase
payments, additional purchase payments, Dollar Cost Averaging or transfers will
be allowed into this Series. All other investment options remain available to
you, including the Templeton Developing Markets Fund, Class 1 Shares, which has
investment objectives similar to the MFS/Foreign & Colonial Emerging Markets
Equity Series. For existing Contract owners investing in the MFS/Foreign &
Colonial Emerging Markets Equity Series through the Dollar Cost Averaging
Program, other investment options will be made available to you.
CUSTOMER SERVICE: (800) 343-8496
Issued by Cova Financial Life Insurance Company
Distributed by: Cova Life Sales Company
One Tower Lane, Suite 3000
Oakbrook Terrace, Illinois 60181-4644
CC-4137(11/98)
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:
<TABLE>
<CAPTION>
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 Period from Commencement
Ended Period Ended Year or Period of Operations
6/30/98 12/31/97 ended 12/31/96 through 12/31/95
(unaudited)
COVA SERIES TRUST
Managed by Lord Abbett & Co.
Bond Debenture Sub-Account
<S> <C> <C> <C>
Beginning of Period $12.88 $11.30 $ 10.15 *
End of Period $13.51 $12.88 11.30
Number of Accum. Units Outstanding 514,574 347,400 39,545
Mid-Cap Value Sub-Account
Beginning of Period $10.47 $10.05 * *
End of Period $11.21 $10.47
Number of Accum. Units Outstanding 35,910 8,510
Developing Growth Sub-Account
Beginning of Period $10.53 $10.83 * *
End of Period $11.31 $10.53
Number of Accum. Units Outstanding 39,321 6,039
Large Cap Research Sub-Account
Beginning of Period $10.76 * *
End of Period $11.34
Number of Accum. Units Outstanding 11,717
Managed by J.P. Morgan Investment
Management Inc.
Select Equity Sub-Account
Beginning of Period $14.05 $10.84 $ 10.15 *
End of Period $15.80 $14.05 10.84
Number of Accum. Units Outstanding 928,711 700,550 185,509
Small Cap Stock Sub-Account
Beginning of Period $13.49 $11.31 $ 10.91 *
End of Period $14.02 $13.49 11.31
Number of Accum. Units Outstanding 604,932 487,580 113,118
International Equity Sub-Account
Beginning of Period $11.46 $10.97 $ 10.10 *
End of Period $13.06 $11.46 10.97
Number of Accum. Units Outstanding 702,336 554,105 124,032
Quality Bond Sub-Account
Beginning of Period $11.16 $10.37 $ 9.95 *
End of Period $11.53 $11.16 10.37
Number of Accum. Units Outstanding 332,630 234,643 64,534
Large Cap Stock Sub-Account
Beginning of Period $14.89 $11.34 $ 10.16 *
End of Period $17.66 $14.89 11.34
Number of Accum. Units Outstanding 938,807 686,677 126,231
LORD ABBETT SERIES FUND, INC.
Growth and Income Sub-Account
Beginning of Period $30.84 $25.09 $ 21.31 $ 19.54
End of Period $33.66 $30.84 25.09 21.31
Number of Accum. Units Outstanding 987,161 791,310 375,304 125,555
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
AIM VARIABLE INSURANCE FUNDS, INC.
Managed by A I M Advisors, Inc.
AIM V.I. Capital Appreciation Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.24
Number of Accum. Units Outstanding 197
AIM V.I. International Equity Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.83
Number of Accum. Units Outstanding 7,499
AIM V.I. Value Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.80
Number of Accum. Units Outstanding 3,207
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
Managed by Alliance Capital Management L.P.
Premier Growth Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $12.77
Number of Accum. Units Outstanding 19,347
Real Estate Investment Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $ 9.31
Number of Accum. Units Outstanding 5,218
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Managed by Goldman Sachs Asset Management
Goldman Sachs Growth and Income Sub-Account
Beginning of Period (1/29/98) $10.00 ** ** **
End of Period $10.78
Number of Accum. Units Outstanding 10,615
Managed by Goldman Sachs Asset Management
International
Goldman Sachs International Equity Sub-Account
Beginning of Period (1/29/98) $10.00 ** ** **
End of Period $11.45
Number of Accum. Units Outstanding 7,952
Goldman Sachs Global Income Sub-Account
Beginning of Period (1/29/98) $10.00 ** ** **
End of Period $10.32
Number of Accum. Units Outstanding 10
INVESTORS FUND SERIES
Managed by Scudder Kemper Investments, Inc.
Kemper Small Cap Value Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.19
Number of Accum. Units Outstanding 3,878
Kemper Government Securities Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.31
Number of Accum. Units Outstanding 10
Kemper Small Cap Growth Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.26
Number of Accum. Units Outstanding 2,450
LIBERTY VARIABLE INVESTMENT TRUST
Managed by Newport Fund Management Inc.
Newport Tiger, Variable Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $ 7.34
Number of Accum. Units Outstanding 10
MFS VARIABLE INSURANCE TRUST
Managed by Massachusetts Financial Services Company
MFS Emerging Growth Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $12.08
Number of Accum. Units Outstanding 23,507
MFS Research Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.81
Number of Accum. Units Outstanding 12,520
MFS Growth With Income Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.54
Number of Accum. Units Outstanding 34,700
MFS High Income Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.42
Number of Accum. Units Outstanding 7,496
MFS World Governments Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.17
Number of Accum. Units Outstanding 325
MFS/Foreign & Colonial Emerging
Markets Equity Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $ 8.69
Number of Accum. Units Outstanding 1,940
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Managed by OppenheimerFunds, Inc.
Oppenheimer High Income Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.42
Number of Accum. Units Outstanding 5,199
Oppenheimer Bond Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.34
Number of Accum. Units Outstanding 9,165
Oppenheimer Growth Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.65
Number of Accum. Units Outstanding 1,995
Oppenheimer Growth & Income Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.25
Number of Accum. Units Outstanding 3,884
Oppenheimer Strategic Bond Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.28
Number of Accum. Units Outstanding 631
PUTNAM VARIABLE TRUST
Managed by Putnam Investment Management, Inc.
Putnam VT Growth and Income Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.94
Number of Accum. Units Outstanding 41,144
Putnam VT International Growth Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.92
Number of Accum. Units Outstanding 26,433
Putnam VT International New Opportunities
Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.57
Number of Accum. Units Outstanding 1,162
Putnam VT New Value Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $10.33
Number of Accum. Units Outstanding 1,154
Putnam VT Vista Sub-Account
Beginning of Period (1/2/98) $10.00 ** ** **
End of Period $11.63
Number of Accum. Units Outstanding 3,408
<FN>
* The Lord Abbett Series Fund, Inc. Growth and Income Portfolio started
regular investment operations on July 20, 1995 and the Quality Bond
Portfolio started regular investment operations on August 16, 1995. The
accumulation unit values shown for the beginning of the period for the
Select Equity, Small Cap Stock, Large Cap Stock, International Equity,
Quality Bond and Bond Debenture Portfolios reflect the dates these
investment portfolios were first offered for sale to the public which were
as follows: May 15, 1996 for the Select Equity and Small Cap Stock
Portfolios; May 16, 1996 for the Large Cap Stock Portfolio; May 14, 1996
for the International Equity Portfolio; May 20, 1996 for the Quality Bond
and Bond Debenture Portfolios; and November 7, 1997 for the Developing
Growth and Mid-Cap Value Portfolios. The accumulation unit values for the
beginning of the period for the General American Capital Company Money
Market Sub-Account reflect the date they were first offered for sale
through the Separate Account which was on December 4, 1997. The Separate
Account had not invested in the following Portfolios which are advised by
Lord, Abbett & Co. as of December 31, 1997: Large Cap Research and Lord
Abbett Growth and Income.
** The accumulation unit values shown reflect the date the investment
portfolio was offered through the Separate Account which is shown above
under "beginning of period."
</FN>
</TABLE>
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.
<TABLE>
<CAPTION>
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.
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
- --------- ----------------- ----------------- ------------------
COVA SERIES TRUST
<S> <C> <C> <C> <C> <C> <C>
Small Cap Stock 5/15/96 16.63% 17.20% 11.51% 15.25%
Large Cap Stock 5/16/96 29.38% 30.67% 24.25% 28.90%
Select Equity 5/15/96 22.89% 23.95% 17.76% 22.11%
International Equity 5/14/96 8.34% 13.34% 3.23% 11.33%
Quality Bond 5/20/96 8.94% 6.94% 3.83% 4.79%
Bond Debenture 5/20/96 11.92% 15.30% 6.81% 13.30%
Developing Growth 11/7/97 -- 4.45% -- -0.65%
Large Cap Research 2/17/98 -- 5.47% -- 0.36%
Mid-Cap Value 11/7/97 -- 11.55% -- 6.44%
LORD ABBETT SERIES
FUND, INC.
Growth and Income 7/20/95 15.78% 20.27% 10.66% 19.07%
GENERAL AMERICAN CAPITAL
COMPANY
Money Market 12/4/97 -- 2.36% -- -2.74%
AIM VARIABLE INSURANCE
FUNDS, INC.
AIM V.I. Capital 1/2/98 -- 12.45% -- 7.34%
Appreciation
AIM V.I. International 1/2/98 -- 18.34% -- 13.22%
Equity
AIM V.I. Value 1/2/98 -- 17.98% -- 12.86%
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
Premier Growth 1/2/98 -- 27.74% -- 22.61%
Real Estate Investment 1/2/98 -- -6.90% -- -11.99%
LIBERTY VARIABLE INVESTMENT
TRUST
Newport Tiger, Variable
Series 1/2/98 -- -26.59% -- -31.66%
INVESTORS FUND SERIES
Kemper Small Cap Value 1/2/98 -- 1.87% -- -3.24%
Kemper Government
Securities 1/2/98 -- 3.07% -- -2.03%
Kemper Small Cap Growth 1/2/98 -- 12.64% -- 7.53%
GOLDMAN SACHS VARIABLE
INSURANCE TRUST
Goldman Sachs Growth and
Income 1/29/98 -- 7.85% -- 2.74%
Goldman Sachs International
Equity 1/29/98 -- 14.48% -- 9.37%
Goldman Sachs Global
Income 1/29/98 -- 3.20% -- -1.90%
MFS VARIABLE INSURANCE TRUST
MFS Emerging Growth 1/2/98 -- 20.82% -- 15.70%
MFS Research 1/2/98 -- 18.14% -- 13.03%
MFS Growth with Income 1/2/98 -- 15.43% -- 10.32%
MFS High Income 1/2/98 -- 4.15% -- -0.95%
MFS World Governments 1/2/98 -- 1.66% -- -3.45%
MFS/Foreign & Colonial
Emerging Markets Equity 1/2/98 -- -13.12% -- -18.20%
OPPENHEIMER VARIABLE ACCOUNT
FUNDS
Oppenheimer High Income 1/2/98 -- 4.23% -- -0.87%
Oppenheimer Bond 1/2/98 -- 3.42% -- -1.69%
Oppenheimer Growth 1/2/98 -- 16.45% -- 11.34%
Oppenheimer Growth & Income 1/2/98 -- 12.54% -- 7.43%
Oppenheimer Strategic Bond 1/2/98 -- 2.77% -- -2.33%
PUTNAM VARIABLE TRUST
Putnam VT Growth and
Income 1/2/98 -- 9.37% -- 4.26%
Putnam VT New Value 1/2/98 -- 3.28% -- -1.83%
Putnam VT Vista 1/2/98 -- 16.29% -- 11.17%
Putnam VT International
Growth 1/2/98 -- 19.19% -- 14.07%
Putnam VT International New
Opportunities 1/2/98 -- 15.71% -- 10.59%
</TABLE>
<TABLE>
<CAPTION>
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.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98:
Portfolio Performance Accumulation Unit Performance
Column A Column B (reflects Column C (reflects
insurance charges all charges
and portfolio expenses) and portfolio 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
- ----------------- ------------ --------------------------- ------------------------- --------------------------
AIM VARIABLE INSURANCE
FUNDS, INC.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM V.I. Capital 5/5/93 18.21% 19.66% 19.48% 16.81% 18.26% 18.08% 11.71% 13.66% 17.98%
Appreciation
AIM V.I. International 5/5/93 13.76% 16.18% 15.40% 12.36% 14.78% 14.00% 7.26% 10.18% 13.90%
Equity
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%
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
Premier Growth 6/26/92 43.63% 26.24% 24.87% 42.23% 24.84% 23.47% 37.13% 20.24% 23.37%
Real Estate Investment 1/9/97 8.35% -- 10.23% 6.95% -- 8.83% 1.85% -- 4.23%
COVA SERIES TRUST
Select Equity 5/1/96 24.53% -- 24.74% 22.89% -- 23.01% 17.76% -- 21.19%
Small Cap Stock 5/1/96 18.26% -- 15.84% 16.63% -- 14.20% 11.51% -- 12.25%
International Equity 5/1/96 9.88% -- 13.62% 8.34% -- 12.00% 3.23% -- 10.01%
Quality Bond 5/1/96 10.49% -- 8.70% 8.94% -- 7.28% 3.83% -- 5.20%
Large Cap Stock 5/1/96 31.23% -- 31.80% 29.38% -- 29.99% 24.25% -- 28.27%
Bond Debenture 5/1/96 13.53% -- 15.99% 11.92% -- 14.39% 6.81% -- 12.44%
Mid-Cap Value 8/20/97 -- -- 13.08% -- -- 12.10% -- -- 6.87%
Large Cap Research 8/20/97 -- -- 14.52% -- -- 13.44% -- -- 8.21%
Developing Growth 8/20/97 -- -- 14.19% -- -- 13.14% - - -- 7.91%
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%
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Goldman Sachs Growth and
Income 1/12/98 -- -- 13.90% -- -- 13.25% -- -- 8.15%
Goldman Sachs International
Equity 1/12/98 -- -- 19.50% -- -- 18.85% -- -- 13.75%
Goldman Sachs Global Income 1/12/98 -- -- 2.70% -- -- 2.05% -- -- -3.05%
LIBERTY VARIABLE INVESTMENT
TRUST
Newport Tiger, Variable
Series 5/1/95 -51.57% -- -12.62% -52.97% -- -14.02% -58.07% -- -18.62%
LORD ABBETT SERIES FUND, INC.
Growth and Income 12/11/89 17.30% 18.37% 16.83% 15.78% 16.73% 15.24% 10.66% 16.12% 15.12%
INVESTORS FUND SERIES
Kemper Small Cap Value 5/1/96 9.14% -- 11.60% 7.74% -- 10.20% 2.64% -- 5.60%
Kemper Government
Securities 9/3/87 8.73% 6.35% 7.87% 7.33% 4.95% 6.47% 2.23% 0.35% 6.37%
Kemper Small Cap Growth 5/2/94 32.29% -- 26.14% 30.89% -- 24.74% 25.79% -- 20.14%
MFS VARIABLE INSURANCE TRUST
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%
OPPENHEIMER VARIABLE ACCOUNT
FUNDS
Oppenheimer High Income 4/30/86 13.20% 11.43% 13.83% 11.00% 10.03% 12.43% 6.70% 5.40% 12.33%
Oppenheimer Bond 4/3/85 9.82% 7.30% 9.39% 8.42% 5.90% 7.99% 3.32% 1.30% 7.89%
Oppenheimer Growth 4/3/85 29.14% 21.75% 16.18% 27.74% 20.35% 14.78% 22.64% 15.75% 14.68%
Oppenheimer Growth & Income 7/5/95 31.56% -- 35.67% 30.16% -- 34.27% 25.06% -- 29.67%
Oppenheimer Strategic Bond 5/3/93 8.01% 7.76% 7.55% 6.61% 6.36% 6.15% 1.51% 1.76% 6.05%
PUTNAM VARIABLE TRUST
Putnam VT Growth and Income 2/1/88 17.87% 19.37% 16.85% 16.47% 17.97% 15.45% 11.37% 13.37% 15.35%
Putnam VT New Value 1/2/97 9.08% -- 14.32% 7.68% -- 12.92% 2.58% -- 8.32%
Putnam VT Vista 1/2/97 30.05% -- 27.75% 29.05% -- 26.35% 23.95% -- 21.75%
Putnam VT International
Growth 1/2/97 20.21% -- 24.80% 18.81% -- 23.40% 13.71% -- 18.80%
Putnam VT International New
Opportunities 1/2/97 3.99% -- 10.58% 2.59% -- 9.18% -2.51% -- 4.58%
TEMPLETON VARIABLE PRODUCTS
SERIES FUND, CLASS 1 SHARES
Templeton Developing Markets*3/1/96 -48.81% -- -25.10% -50.21% -- -26.50% -55.31% -- -31.10%
Templeton International 5/1/92 13.95% 19.07% 16.27% 12.55% 17.67% 14.87% 7.45% 13.07% 14.77%
Mutual Shares Investments 5/1/98 -- --- -4.70% -- -- -4.93% -- -- -10.03%
<FN>
* Past fee waivers by the portfolio's manager increased its total returns.
</FN>
</TABLE>
CC-4123(10/98)
