UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    Form 13F

                               FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended:          MARCH 31, 2009
                                                        ---------------

Check here if Amendment [ ]; Amendment Number:
  This Amendment (Check only one.):                -----------------------
                                                [ ] is a restatement.
                                                [ ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:        ALLSTATE LIFE INSURANCE COMPANY
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Address:     3075 SANDERS ROAD, SUITE G4A
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             NORTHBROOK, IL.  60062-7127
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Form 13F File Number:   28-01037

The institutional manager filing this report and the person by whom it is signed
hereby represent that the person signing the report is authorized to submit it,
that all information contained herein is true, correct and complete, and that it
is understood that all required items, statements, schedules, lists, and tables,
are considered integral parts of this form.

Person Signing this Report on Behalf of Reporting Manager:

Name:        PAUL SCHUTT
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Title:       ASSISTANT VICE PRESIDENT INVESTMENT OPERATIONS
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Phone:       847-402-5169
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Signature, Place, and Date of Signing:

 /s/  PAUL SCHUTT                 NORTHBROOK,IL.                 05/13/09
 ----------------------------  -----------------       -----------------------
      [Signature]                [City, State]                     [Date]

Report Type (Check only one.):

[X] 13F HOLDINGS REPORT. (Check here if all holdings of this reporting manager
    are reported in this report.)

[ ] 13F NOTICE. (Check here if no holdings reported are in this report, and all
    holdings are reported by other reporting manager(s).).)

[ ] 13F COMBINATION REPORT. (Check here if a portion of the holdings for
    this reporting manager are reported in this report and a portion are
    reported by other reporting manager(s).)


List of Other Managers Reporting for this Manager:

FORM 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: ONE ------------------------------------ Form 13F Information Table Entry Total: 39 ------------------------------------ Form 13F Information Table Value Total: 221,601 (THOUSAND) ------------------------------------ List of Other Included Managers: Provide a numbered list of the name(s) and Form 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. [If there are no entries in this list, state "NONE" and omit the column headings and list entries.] No. Form 13F File Number Name 1 028-10298 ALLSTATE INVESTMENTS LLC ------------------------------------

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY TITLE OF VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE - ----------------------- -------- --------- -------- ------- --- ---- ------- --------- ------ ------- ------ DOMINION RESOURCES, INC. COMMON 25746U109 952.79 30,745.00 SH DEFINED 1 X 3M COMPANY 0% 11/21/2032 DEBT 88579YAB7 7,884.49 10,223,000.00 PRN DEFINED 1 X ALLERGAN INC 1.500000% 04/01/2026 DEBT 018490AL6 5,720.00 5,500,000.00 PRN DEFINED 1 X ALZA CORP 0% 07/28/2020 DEBT 02261WAB5 8,738.13 10,250,000.00 PRN DEFINED 1 X AMGEN INC .375000% 02/01/2013 DEBT 031162AQ3 7,735.00 8,500,000.00 PRN DEFINED 1 X ARCHER DANIELS .875000% 02/15/2014 DEBT 039483AW2 928.75 1,000,000.00 PRN DEFINED 1 X BECKMAN COULTER INC 2.500000% 12/15/2036 DEBT 075811AD1 950.00 1,000,000.00 PRN DEFINED 1 X BEST BUY 2.250000% 01/15/2022 DEBT 086516AF8 10,807.50 11,000,000.00 PRN DEFINED 1 X CAMERON INTL CORP 2.500000% 06/15/2026 DEBT 13342BAB1 12,360.00 12,000,000.00 PRN DEFINED 1 X CARNIVAL CORP 2.000000% 04/15/2021 DEBT 143658AN2 8,302.50 9,000,000.00 PRN DEFINED 1 X CHESAPEAKE ENERGY CORP 2.250000% 12/15/2038 DEBT 165167CB1 772.50 1,500,000.00 PRN DEFINED 1 X CMS ENERGY CORP 2.875000% 12/01/2024 DEBT 125896AW0 1,565.63 1,500,000.00 PRN DEFINED 1 X COSTCO WHOLESALE CORP 0% 08/19/2017 DEBT 22160QAC6 336.40 320,000.00 PRN DEFINED 1 X DANAHER CORP 0% 01/22/2021 DEBT 235851AF9 9,046.63 10,550,000.00 PRN DEFINED 1 X DOMINION RESOURCES INC 2.125000% 12/15/2023 DEBT 25746UAT6 2,110.00 2,000,000.00 PRN DEFINED 1 X DST SYSTEMS INC 4.125000% 08/15/2023 DEBT 233326AB3 1,462.50 1,500,000.00 PRN DEFINED 1 X EMC CORP 1.750000% 12/01/2013 DEBT 268648AM4 2,294.19 2,350,000.00 PRN DEFINED 1 X FISHER SCIENTIFIC INTL 3.250000% 03/01/2024 DEBT 338032AX3 9,905.19 8,350,000.00 PRN DEFINED 1 X FLUOR CORP 1.500000% 02/15/2024 DEBT 343412AA0 223.78 175,000.00 PRN DEFINED 1 X HCC INSURANCE HOLDINGS 1.300000% 04/01/2023 DEBT 404132AB8 11,028.56 9,825,000.00 PRN DEFINED 1 X HENRY SCHEIN INC 3.000000% 08/15/2034 DEBT 806407AB8 1,060.00 1,000,000.00 PRN DEFINED 1 X HOLOGIC INC 2.000000% 12/15/2037 DEBT 436440AA9 682.50 1,000,000.00 PRN DEFINED 1 X INTEL CORP 2.950000% 12/15/2035 DEBT 458140AD2 4,971.50 6,100,000.00 PRN DEFINED 1 X INTL GAME TECHNOLOGY 2.600000% 12/15/2036 DEBT 459902AP7 15,911.72 16,425,000.00 PRN DEFINED 1 X LABORATORY CORP AMERICA HOLDINGS DEBT 50540RAG7 10,515.63 12,500,000.00 PRN DEFINED 1 X LIBERTY MEDIA CORP 3.250000% 03/15/2031 DEBT 530715AR2 362.50 1,000,000.00 PRN DEFINED 1 X LIBERTY MEDIA LLC 3.12500% 03/30/2023 DEBT 530718AF2 1,164.38 1,500,000.00 PRN DEFINED 1 X MEDTRONIC INC 1.625000% 04/15/2013 DEBT 585055AM8 7,511.88 8,500,000.00 PRN DEFINED 1 X MYLAN LABORATORIES INC 1.250000% 03/15/2012 DEBT 628530AG2 856.25 1,000,000.00 PRN DEFINED 1 X NABORS INDUSTRIES INC .940000% 05/15/2011 DEBT 629568AP1 7,965.00 9,000,000.00 PRN DEFINED 1 X OMNICOM GROUP INC 0% 07/01/2038 DEBT 681919AT3 8,811.25 9,500,000.00 PRN DEFINED 1 X RAYONIER TRS HOLDINGS IN 3.750000% 10/15/2012 DEBT 75508AAB2 3,610.00 4,000,000.00 PRN DEFINED 1 X SCHLUMBERGER LIMITED 2.125000% 06/01/2023 DEBT 806857AD0 249.00 200,000.00 PRN DEFINED 1 X TEVA PHARMACEUT FIN BV 1.750000% 02/01/2026 DEBT 88165FAA0 8,029.00 7,400,000.00 PRN DEFINED 1 X TEVA PHARMACEUT FIN LLC .250000% 02/01/2024 DEBT 88164RAB3 3,537.00 2,700,000.00 PRN DEFINED 1 X TJX COMPANIES INC 0% 02/13/2021 DEBT 872540AL3 9,185.75 10,150,000.00 PRN DEFINED 1 X TRANSOCEAN INC 1.500000% 12/15/2037 DEBT 893830AV1 11,147.50 13,000,000.00 PRN DEFINED 1 X US BANCORP 1.231250% 12/11/2035 DEBT 902973AM8 8,407.50 9,500,000.00 PRN DEFINED 1 X WYETH 2.390000% 01/15/2024 DEBT 983024AD2 14,497.80 14,600,000.00 PRN DEFINED 1 X - ------------------------------------------------------------------------------------ "STOCK" 1 953 30,745 - ------------------------------------------------------------------------------------ DEBT 38 220,648 235,618,000 - ------------------------------------------------------------------------------------ REPORT TOTALS 39 221,601 235,648,745 - ------------------------------------------------------------------------------------