COVA FINANCIAL LIFE INSURANCE COMPANY
COVA VARIABLE ANNUITY ACCOUNT FIVE
Supplement dated March 1, 1999
This supplement should be attached to your copy of the Prospectus for the
variable annuity contracts issued by Cova Financial Life Insurance Company
and Cova Variable Annuity Account Five.
1. As of the date of this supplement, the following investment portfolios are
now also available in connection with your contract:
AIM VARIABLE INSURANCE FUNDS, INC.:
MANAGED BY A I M ADVISORS, INC.
AIM V.I. Capital Appreciation
AIM V.I. Value
TEMPLETON VARIABLE PRODUCTS SERIES FUND, CLASS 1 SHARES
MANAGED BY FRANKLIN ADVISERS, INC.
Franklin Small Cap Investments
Franklin Growth Investments
MANAGED BY TEMPLETON INVESTMENT COUNSEL, INC.
Templeton International
Templeton Stock
Templeton Bond
2. The following supplements the information contained in the Cova Variable
Annuity Account Five Fee Table under the heading "Investment Portfolio
Expenses":
<TABLE>
<CAPTION>
Total
Annual
Management 12b-1 Other Portfolio
Fees Fees Expenses Expenses
---- ---- -------- --------
AIM VARIABLE INSURANCE FUNDS, INC.
Managed by A I M Advisors, Inc.
<S> <C> <C> <C>
AIM V.I. Capital Appreciation (a) .63% -- .05% .68%
AIM V.I. Value (a) .62% -- .08% .70%
TEMPLETON VARIABLE PRODUCTS SERIES FUND,
CLASS 1 SHARES
Managed by Franklin Advisers, Inc.
Franklin Small Cap Investments (b) .40% -- .60% 1.00%
Franklin Growth Investments (c) .40% -- .60% 1.00%
Managed by Templeton Investment Counsel,
Inc.
Templeton International (d) .69% -- .19% .88%
Templeton Stock (d) .69% -- .19% .88%
Templeton Bond .50% -- .18% .68%
<FN>
(a) A I M Advisors, Inc. ("AIM") may from time to time voluntarily waive or
reduce its respective fees. Effective May 1, 1998, the Funds reimburse AIM
in an amount up to 0.25% of the average net asset value of each Fund, for
expenses incurred in providing, or assuring that participating insurance
companies provide, certain administrative services. Currently, the fee only
applies to the average net asset value of each Fund in excess of the net
asset value of each Fund as calculated on April 30, 1998.
(b) The investment manager has agreed in advance to waive management fees and
make certain payments to reduce Fund expenses as necessary so that Total
Annual Portfolio Expenses do not exceed 1.00% of the Fund's Class 1 net
assets through 1998. The investment manager may end this arrangement at a
later date. Estimated Management Fees, Other Expenses and Total Annual
Portfolio Expenses before any waivers would be 0.75%, 0.60% and 1.35%,
respectively.
(c) The investment manager has agreed in advance to waive management fees and
make certain payments to reduce Fund expenses as necessary so that Total
Annual Portfolio Expenses do not exceed 1.00% of the Fund's Class 1 net
assets through 1998. The investment manager may end this arrangement at a
later date. Estimated Management Fees, Other Expenses and Total Annual
Portfolio Expenses before any waivers would be 0.60%, 0.60% and 1.20%,
respectively.
(d) 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
------ -------
AIM VARIABLE INSURANCE FUNDS, INC.
Managed by A I M Advisors, Inc.
<S> <C> <C>
AIM V.I. Capital Appreciation (a)$72.09 (a)$113.03
(b)$22.09 (b)$ 68.03
AIM V.I. Value (a)$72.29 (a)$113.63
(b)$22.29 (b)$ 68.63
TEMPLETON VARIABLE PRODUCTS SERIES FUND,
CLASS 1 SHARES
Managed by Franklin Advisers, Inc.
Franklin Small Cap Investments (a)$75.30 (a)$122.67
(b)$25.30 (b)$ 77.67
Franklin Growth Investments (a)$75.30 (a)$122.67
(b)$25.30 (b)$ 77.67
Managed by Templeton Investment Counsel, Inc.
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
Templeton Bond (a)$72.09 (a)$113.03
(b)$22.09 (b)$ 68.03
</TABLE>
4. The following supplements Section 4 - Investment Options:
AIM VARIABLE INSURANCE FUNDS, INC.
AIM Variable Insurance Funds, Inc. is a management investment company with
multiple portfolios. A I M Advisors, Inc. is the investment adviser to each
portfolio. The following portfolios are available under the contract:
AIM V.I. Capital Appreciation Fund
AIM V.I. Value Fund
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.
Franklin Advisers, Inc. is the investment manager of the Franklin Growth
Investments Fund and the Franklin Small Cap Investments Fund. Templeton
Investment Counsel, Inc. is the investment manager of the Templeton
International Fund, the Templeton Bond Fund and the Templeton Stock Fund. The
following portfolios are available under the contract:
Franklin Small Cap Investments Fund
Franklin Growth Investments Fund
Templeton International Fund
Templeton Stock Fund
Templeton Bond 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 guarantee, 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 1 AIM VARIABLE INSURANCE FUNDS, INC.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED 6/30/98
Accumulation Unit Performance
Column A Column B
Separate (reflects insurance (reflects all
Account charges and charges and
Inception portfolio expenses) portfolio expenses)
Date in Since Since
Portfolio Portfolio 1 year Inception 1 year Inception
- ----------- ---------- ------ --------- ------- ----------
AIM V.I. Capital
<S> <C> <C> <C> <C>
Appreciation 1/2/98 -- 12.45% -- 7.34%
AIM V.I. Value 1/2/98 -- 17.98% -- 12.86%
</TABLE>
<TABLE>
<CAPTION>
PART 2 AIM VARIABLE INSURANCE FUNDS, INC.
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 and charges and
portfolio expenses) portfolio expenses)
Portfolio
Inception Since Since Since
Portfolio Date 1 yr 5 yrs Inception 1 yr 5 yrs Inception 1 yr 5 yrs Inception
- ---------- --------- ---- ---- --------- ---- ----- --------- ---- ----- --------
AIM V.I.
Capital
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Appreciation 5/5/93 18.21% 19.66% 19.48% 16.81% 18.26% 18.08% 11.71% 13.66% 17.98%
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%
</TABLE>
<TABLE>
<CAPTION>
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 and charges and
portfolio expenses) portfolio expenses)
Portfolio 10 yrs or 10 yrs or 10 yrs or
Portfolio, Inception since since since
Class 1 Shares Date 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- -------------- --------- ---- ---- --------- ---- ----- --------- ---- ----- --------
Templeton
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
International 5/1/92 13.95% 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% 6.38% 15.64% 12.25%
Templeton
Bond 8/24/88 4.80% 5.57% 7.30% 3.40% 4.17% 5.90% 3.30% 4.07% 5.80%
</TABLE>
CC-4201 (2/99)
