<PAGE> 1
File Pursuant to Rule 497(e)
Registration No. 33-64240
SUPPLEMENT DATED NOVEMBER 26, 1997 TO THE PROSPECTUS
DATED MAY 1, 1997 FOR THE CANADA LIFE INSURANCE
COMPANY OF NEW YORK VARIABLE ACCOUNT 2
Effective November 26, 1997, the sections in the prospectus captioned Death
Benefit and Proceeds on Death of Last Surviving Annuitant Before Annuity Date
or Maturity Date (The Death Benefit) are amended to include the following:
The following applies to policies issued on or after November 26, 1997:
If we receive due proof of death of the last surviving annuitant before the
annuity date or maturity date ("such due proof"), we will pay the beneficiary a
death benefit. The death benefit is the greater of:
1. the premiums paid, less: a) any partial withdrawals, including
applicable surrender charges; and b) any incurred taxes; or
2. the policy value on the date we receive such due proof; or
3. the greatest policy value on any policy anniversary preceding
both the date the last surviving annuitant attained age 81 and
the date we receive such due proof of the annuitant's death,
adjusted for any of the following items that occur after such
policy anniversary: a) less any partial withdrawals, including
applicable surrender charges; b) less any incurred taxes; and c)
plus any premiums paid.
If on the date the policy was issued, any annuitant was attained age 81 or
more, then the death benefit is the policy value.
The Owner(s) of a policy issued prior to November 26, 1997 will be entitled to
the Death Benefit described above, unless the Owner(s) elects not to accept
this provision. The Company will not assess a charge in connection with the
election of this Death Benefit.
Effective November 26, 1997, the sections of the prospectus captioned Policy
Charges, Table of Expenses, Policy Administration Charge and Reduction or
Elimination of Policy Administration Charge are amended to reflect the lowering
of the policy value required on a policy anniversary for a waiver of the policy
administration charge from $75,000 to $35,000.
Effective November 26, 1997, the sections of the prospectus captioned Policy
Charges, Table of Expenses and Daily Administration Fee are amended to reflect
the lowering of the daily administration fee from an effective annual rate of
0.35% of Variable Account assets to an effective annual rate of 0.15% of
Variable Account assets.
Effective November 26, 1997, the section of the prospectus captioned Examples
has been revised as follows to reflect the lowering of the daily administration
fee:
A policyowner would pay the following expenses on a $1,000 investment,
assuming a 5% annual return on assets:
1. If the policy is surrendered at the end of the applicable time
period:
<TABLE>
<CAPTION>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Bond ............................................... $75 $110 $148 $241
Capital ............................................ $75 $110 $147 $240
Cash Management .................................... $69 $ 92 $117 $176
Common Stock ....................................... $74 $108 $144 $233
Communications and Information ..................... $78 $118 $161 $268
Frontier ........................................... $78 $120 $164 $273
Global Growth Opportunities ........................ $83 $134 $188 $320
Global Smaller Companies ........................... $83 $134 $188 $320
Global Technology .................................. $83 $134 $188 $320
High-Yield Bond .................................... $76 $113 $153 $251
Income ............................................. $75 $110 $147 $240
International ...................................... $83 $134 $188 $320
</TABLE>
2. If the policy is annuitized or not surrendered at the end of the
applicable time period:
<TABLE>
<CAPTION>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Bond ................................................ $21 $65 $112 $241
Capital ............................................. $21 $65 $111 $240
Cash Management ..................................... $15 $47 $ 81 $176
Common Stock ........................................ $20 $63 $108 $233
Communications and Information ...................... $24 $73 $125 $268
Frontier ............................................ $24 $75 $128 $273
Global Growth Opportunities ......................... $29 $89 $152 $320
Global Smaller Companies ............................ $29 $89 $152 $320
Global Technology ................................... $29 $89 $152 $320
High-Yield Bond ..................................... $22 $68 $117 $251
Income .............................................. $21 $65 $111 $240
International ....................................... $29 $89 $152 $320
</TABLE>
