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Allstate Life Insurance Company
Allstate Life Insurance Company Separate Account A
Supplement, dated August 15, 2003
to the
Prospectus dated May 1, 2003 for the
Allstate Advisor Variable Annuities (Advisor, Advisor Plus, Advisor Preferred)
This supplement describes the asset allocation program now available with the
Allstate Advisor, Allstate Advisor Plus, and Allstate Advisor Preferred variable
annuity contracts (each, a "Contract"), offered by Allstate Life Insurance
Company. Please keep this supplement for future reference together with your
prospectus. All capitalized terms have the same meaning as those included in the
prospectus.
Your prospectus is amended as follows:
Page 3: Add the following to the list of "Important Terms":
Page
TrueBalanceSM Asset Allocation Program 23
Page 7: Insert the following bullet before the first bullet under the subheading
"Special Services" contained in "The Contracts at a Glance":
o TrueBalanceSM Asset Allocation Program
Page 23: Insert the following section at the end of the last paragraph under the
heading "Investment Alternatives: The Variable Sub-Accounts":
TRUEBALANCESM ASSET ALLOCATION PROGRAM
We currently offer the TrueBalance asset allocation program in which
you may participate. The TrueBalance program is an option available to
Contract Owners at no additional charge. Participation in the
TrueBalance program may be limited if you have added certain options to
your Contract which impose restrictions on the investment alternatives
in which you may invest, such as the Income Protection Benefit Option.
See the "Income Protection Benefit Option" section of this prospectus
for more information.
Asset allocation is the process by which your Contract Value is
invested in different asset classes in a way that matches your risk
tolerance, time horizon, and investment goals. Theoretically, different
asset classes tend to behave differently under various economic and
market conditions. By spreading your Contract Value across a range of
asset classes, you may, over time, be able to reduce the risk of
investment volatility and potentially enhance returns. Asset allocation
does not guarantee a profit or protect against loss in a declining
market.
Your sales representative will help you determine whether participating
in an asset allocation program is appropriate for you. If you decide to
participate in the TrueBalance program, you will complete an investment
style questionnaire that will help you and your sales representative to
identify your investment style. Once you and your sales representative
have identified your investment style, you will select one of five
asset allocation model portfolios, each of which represents a
diversified allocation of a portion of your Contract Value among
Variable Sub-Accounts with different levels of risk. The model
portfolios, which have been prepared by Standard & Poor's Investment
Advisory Services LLC ("SPIAS"), represent five different investment
styles: conservative, moderately conservative, moderate, moderately
aggressive and aggressive. Allstate Life and the principal underwriter
of the Contracts, Allstate Distributors, L.L.C. ("Allstate
Distributors"), do not intend to provide any personalized investment
advice in connection with the TrueBalance program and you should not
rely on this program as providing individualized investment
recommendations to you.
Each of the five model portfolios contains a mix of Variable
Sub-Accounts that is designed to meet the investment goals of the
applicable investment style. On the business day we approve your
participation in the TrueBalance program, we will automatically
reallocate any existing Contract Value in the Variable Sub-Accounts
according to the model portfolio you selected. If any portion of your
existing Contract Value is allocated to the Standard Fixed Account or
MVA Fixed Account Options and you wish to allocate any portion of it to
the model portfolio, you must transfer that portion to the Variable
Sub-Accounts. In addition, as long as you participate in the
TrueBalance program, you must allocate all of your purchase payments
(and Credit Enhancements for Allstate Advisor Plus Contracts) to the
Fixed Account Options and/or the Variable Sub-Accounts currently
offered in your model portfolio. Any purchase payments (and Credit
Enhancements for Allstate Advisor Plus Contracts) you allocate to the
DCA Fixed Account Option will be automatically transferred, along with
interest, in equal monthly installments to the Variable Sub-Accounts
according to the model portfolio you selected.
The model portfolios will be reviewed and analyzed annually by SPIAS to
determine that the Variable Sub-Accounts and allocation percentages
continue to support each model portfolio's investment objectives. We
will update your Variable Sub-Accounts and allocation percentages
annually to match the updated SPIAS model portfolios. Changes to the
model portfolios may include changes to the asset classes, changes to
the allocation percentages for asset classes and changes to the
Variable Sub-Accounts included in the model portfolios. By electing to
participate in the TrueBalance program, you authorize us to
automatically reallocate your Contract Value allocated to the Variable
Account to reflect the updated model portfolio, without any further
instructions from you. You will be notified in advance of any change to
the model portfolio you choose with a date on which the change will be
implemented. On the implementation date, all of your Contract Value in
the Variable Sub-Accounts will be reallocated according to the current
allocation percentages established by SPIAS for your model portfolio,
unless you request to terminate your participation in the TrueBalance
program before the implementation date.
You may only select one model portfolio at a time. However, you may
change your selection of model portfolio at any time. For example, if
you have selected the TrueBalance moderate portfolio, you may switch to
the TrueBalance moderately conservative portfolio. Each change you make
in your model portfolio selection will count against the 12 transfers
you can make each Contract Year without paying a transfer fee. You
should consult with your sales representative before making a change to
your model portfolio selection to determine whether the new model
portfolio is appropriate for your needs.
Since the performance of each Variable Sub-Account may cause a shift in
the percentage allocated to each Variable Sub-Account, at least once
every calendar quarter we will automatically rebalance all of your
Contract Value in the Variable Sub-Accounts according to your model
portfolio.
Unless you notify us otherwise, any purchase payments you make after
electing the TrueBalance program will be allocated to your model
portfolio and/or to the Fixed Account Options according to your most
recent instructions on file with us. Once you elect to participate in
the TrueBalance program, you may allocate subsequent purchase payments
to any of the Fixed Account Options available with your Contract and/or
to any of the Variable Sub-Accounts included in your model portfolio.
You may not allocate subsequent purchase payments to a Variable
Sub-Account that is not included in your model portfolio. Subsequent
purchase payments allocated to the Variable Sub-Accounts will be
automatically rebalanced according to the current allocation
percentages for your model portfolio at the next calendar quarter. You
may make transfers to any of the investment alternatives, except the
DCA Fixed Account Option. However, all of your Contract Value in the
Variable Sub-Accounts will be automatically rebalanced according to the
current percentage allocations for your model portfolio at the next
calendar quarter. Transfers to investment alternatives that are not
included in the model portfolio you selected may be inconsistent with
the investment style you selected and with the purpose of the
TrueBalance program. You should consult with your sales representative
before making transfers outside the model portfolio allocations.
If you make a partial withdrawal from any of the Variable Sub-Accounts,
your remaining Contract Value in the Variable Sub-Accounts will be
automatically rebalanced according to your model portfolio allocations
at the next calendar quarter. If you are participating in the
Systematic Withdrawal Program when you add the TrueBalance program or
change your selection of model portfolios, you may need to update your
withdrawal instructions. If you have any questions, please consult your
sales representative or call us at 1-800-203-0068.
Your participation in the TrueBalance program is subject to the
program's terms and conditions, and you may terminate your
participation or change model portfolios at any time by notifying us in
a form satisfactory to us. We reserve the right to modify or terminate
the TrueBalance program at any time.