Allstate Life Insurance Company

                       Supplement dated February 16, 2004
                                     to the
                       Prospectus dated July 28, 2003 for
                         Allstate(R) ChoiceRate Annuity

This supplement describes the Enhanced First Year Rate available that we may
offer from time to time with the Allstate ChoiceRate annuity contract
("Contract"). Please keep this supplement for future reference together with
your prospectus. All 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
Enhanced First Year Rate                                              8


Page 8: Replace the second and third sentence of the first paragraph, under the
subheading "INTEREST RATES" under the heading "Guarantee Periods" with the
following:

We will not change the interest rate that we credit to a Guarantee Period
Account until it expires (except when an Enhanced First Year Rate applies as
described below). The interest rates we quote will fluctuate from time to time
and will vary depending upon the date a Guarantee Period Account begins.


Page 8: Add the heading "Bonus Rate." before the beginning of the second
paragraph, under the subheading "INTEREST RATES" under the heading "Guarantee
Periods."


Page 8: Add the following section, after the last paragraph, under the
subheading "INTEREST RATES" under the heading "Guarantee Periods":

Enhanced First Year Rate. From time to time, we may offer a higher annualized
effective rate that applies only during the first year of a new Guarantee Period
Account ("Enhanced First Year Rate").

We will apply any Enhanced First Year Rate from the beginning of the applicable
Guarantee Period. At the end of the first year of the Guarantee Period, we will
credit interest for the remainder of the Guarantee Period at the lower
annualized effective interest rate we declared at the beginning of the Guarantee
Period.

Eligibility for an Enhanced First Year Rate may depend on your Issue Date, and
Enhanced First Year Rates may be available only for Guarantee Periods of certain
lengths. The Enhanced First Year Rate may vary depending upon your Issue Date,
and the date a Guarantee Period begins. The annualized effective interest rate
we declare for a Guarantee Period offering an Enhanced First Year Rate may be
lower than the annualized effective interest rate we may declare for Guarantee
Periods that do not have an Enhanced First Year Rate.

We may declare an Enhanced First Year Rate in our sole discretion. We can
neither predict nor guarantee what an Enhanced First Year Rate will be or
whether we will declare an Enhanced First Year Rate in the future. For current
information on Enhanced First Year Rates, please contact your financial
representative or Allstate Life at 1-800-203-0068.


Page 8: Replace the last sentence of the first paragraph, under the subheading
"HOW WE CREDIT INTEREST" under the heading "Guarantee Periods" with the
following:

Your annualized effective interest rate includes Bonus Rates and/or Enhanced
First Year Rates, if applicable.