UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                    FORM 13F

                               FORM 13F COVER PAGE


Report for the Calendar Year or Quarter Ended: September 30, 2002

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

                                 Address:  3075 Sanders Road, Suite G4A

                                           Northbrook, IL  60062-7127

                                 13F File Number:  028-01037

The institutional investment 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 submission.
Person Signing this Report on Behalf of Reporting Manager:

Name:  Doug Welch

Title: Assistant Vice-President Investment Operations

Phone: 847-402-2170

Signature,                               Place,             and Date of Signing:
___________________________________      Northbrook, IL     November 13, 2002

Report Type (Check only one.):
                                         | X|  13F HOLDINGS REPORT.
                                         |__|  13F NOTICE.
                                         |__|  13F COMBINATION REPORT.

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: 185 Form 13F Information Table Value Total: 1,056,086 (thousand) List of Other Included Managers: No. 13F File Number Name 1 To be assigned Allstate Investments, L.L.C. - --- ------------------------------ ------------------------------------- - --- ------------------------------ ------------------------------------- - --- ------------------------------ ------------------------------------- - --- ------------------------------ -------------------------------------

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY FORM 13F INFORMATION TABLE VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE DEFINED NONE - ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- -------- BAXTER INTL COMMON STOCK 071813109 947 31,000 SH DEFINED 1 X COMCAST CLASS A SPECIAL COMMON STOCK 200300200 709 34,000 SH DEFINED 1 X EL PASO ENERGY CAPITAL TRUST I, 4.75%, NON-REDEEM P/S 283678209 565 31,400 SH DEFINED 1 X EQUITY RESIDENTIAL SERIES G NON-REDEEM P/S 29476L859 2,340 100,000 SH DEFINED 1 X FORD MOTOR CO CAP TR II REDEEMABLE P/S 345395206 8,259 205,000 SH DEFINED 1 X GENERAL MOTORS SERIES B REDEEMABLE P/S 370442733 15,174 678,000 SH DEFINED 1 X MEDTRONICS COMMON STOCK 585055106 737 17,500 SH DEFINED 1 X NATIONAL AUSTRALIA BANK 7.875% CONVERTIB NON-REDEEM P/S 632525309 1,079 33,000 SH DEFINED 1 X NEW VALLEY CORP. WARRANTS WARRANTS 649080116 1 16,800 SH DEFINED 1 X NOVELLUS SYSTEM INC COMMON STOCK 670008101 510 24,500 SH DEFINED 1 X OMNICOM GROUP COMMON STOCK 681919106 607 10,900 SH DEFINED 1 X SEALED AIR CORP., $2.00, CONVERTIBLE NON-REDEEM P/S 81211K209 275 12,500 SH DEFINED 1 X SIMON PROPERTY GROUP 6.5% PFD B NON-REDEEM P/S 828806406 4,750 50,000 SH DEFINED 1 X

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE DEFINED NONE - ------------------------------ ---------------- --------- -------- ---------- --- ---- ------- ------------ -------- -------- ------ ABGENIX INC DEBT 00339BAB3 564 900,000 PRN DEFINED 1 X ADVANCED ENERGY DEBT 007973AC4 906 1,350,000 PRN DEFINED 1 X AFFILIATED COMPUTER SVCS INC DEBT 008190AF7 1,811 1,500,000 PRN DEFINED 1 X AFFILIATED MANAGERS DEBT 008252AC2 2,941 3,450,000 PRN DEFINED 1 X AGILENT TECH INC DEBT 00846UAA9 14,128 17,550,000 PRN DEFINED 1 X AGILENT TECH INC DEBT 00846UAB7 1,208 1,500,000 PRN DEFINED 1 X ALLERGAN INC DEBT 018490AA0 4,382 6,900,000 PRN DEFINED 1 X ALZA CORP. DEBT 02261WAB5 11,422 14,550,000 PRN DEFINED 1 X AMER INTL GROUP DEBT 026874AP2 19,663 31,650,000 PRN DEFINED 1 X AMERICA ONLINE DEBT 02364JAC8 14,499 28,500,000 PRN DEFINED 1 X AMERICAN INTERNATIONAL GROUP DEBT 026874AN7 3,960 4,500,000 PRN DEFINED 1 X AMGEN INC DEBT 031162AC4 32,513 46,200,000 PRN DEFINED 1 X AMGEN INC DEBT 031162AE0 3,484 4,950,000 PRN DEFINED 1 X ANADARKO PETROLEUM CORP DEBT 032511AP2 10,495 17,100,000 PRN DEFINED 1 X ANALOG DEVICES DEBT 032654AC9 2,296 2,355,000 PRN DEFINED 1 X ANALOG DEVICES DEBT 032654AD7 26,003 26,670,000 PRN DEFINED 1 X APOGENT TECH DEBT 03760AAE1 6,329 6,450,000 PRN DEFINED 1 X AVIRON DEBT 053762AD2 811 900,000 PRN DEFINED 1 X AVON PRODUCTS DEBT 054303AP7 6,405 12,000,000 PRN DEFINED 1 X BARNES & NOBLE DEBT 067774AD1 1,188 1,200,000 PRN DEFINED 1 X BAXTER INTL DEBT 071813AR0 9,702 9,900,000 PRN DEFINED 1 X BEA SYSTEMS DEBT 073325AD4 2,422 3,150,000 PRN DEFINED 1 X BEST BUY DEBT 086516AC5 1,965 3,000,000 PRN DEFINED 1 X BEST BUY DEBT 086516AD3 6,386 9,750,000 PRN DEFINED 1 X BEST BUY DEBT 086516AE1 995 1,275,000 PRN DEFINED 1 X BEST BUY DEBT 086516AF8 878 1,125,000 PRN DEFINED 1 X BISYS GROUP DEBT 055472AB0 1,100 1,200,000 PRN DEFINED 1 X BJ SERVICES CO DEBT 055482AE3 5,240 6,750,000 PRN DEFINED 1 X BROCADE COM SYS DEBT 111621AA6 971 1,500,000 PRN DEFINED 1 X BROCADE COM SYS DEBT 111621AB4 389 600,000 PRN DEFINED 1 X BROOKS AUTOMAT DEBT 11434AAB6 977 1,350,000 PRN DEFINED 1 X BURR-BROWN CORP DEBT 122574AF3 10,544 10,650,000 PRN DEFINED 1 X CALPINE CORP DEBT 131347AZ9 371 900,000 PRN DEFINED 1 X CARNIVAL CORP DEBT 143658AM4 611 600,000 PRN DEFINED 1 X CARNIVAL CORP DEBT 143658AN2 15,740 15,450,000 PRN DEFINED 1 X CARNIVAL CORP DEBT 143658AS1 7,826 14,100,000 PRN DEFINED 1 X CELESTICA INC DEBT 15101QAA6 3,296 7,800,000 PRN DEFINED 1 X CENDANT CORP DEBT 151313AF0 23,814 38,880,000 PRN DEFINED 1 X CENDANT CORP DEBT 151313AN3 14,827 15,900,000 PRN DEFINED 1 X CENTURYTEL INC DEBT 156700AE6 6,090 6,000,000 PRN DEFINED 1 X CEPHALON INC DEBT 156708AD1 1,986 2,400,000 PRN DEFINED 1 X CHIRON CORP DEBT 170040AE9 10,080 18,000,000 PRN DEFINED 1 X CLEAR CHANNEL COMM., INC., CONVERTIBLE DEBT 184502AB8 17,742 18,150,000 PRN DEFINED 1 X COMCAST DEBT 200300BH3 17,074 21,750,000 PRN DEFINED 1 X COMPUTER ASSOC DEBT 204912AN9 2,400 3,000,000 PRN DEFINED 1 X COMVERSE TECH. DEBT 205862AH8 2,066 2,550,000 PRN DEFINED 1 X COSTCO DEBT 22160QAC6 5,882 7,740,000 PRN DEFINED 1 X

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE DEFINED NONE - ------------------------------ ---------------- --------- -------- ---------- --- ---- ------- ------------ -------- -------- ------ COX COMMUNICATION DEBT 224044AX5 7,781 18,750,000 PRN DEFINED 1 X CSX CORP DEBT 126408GA5 15,106 18,450,000 PRN DEFINED 1 X CYMER INC DEBT 232572AE7 803 1,050,000 PRN DEFINED 1 X CYPRESS SEMICONDUCTOR DEBT 232806AE9 1,781 2,280,000 PRN DEFINED 1 X DANAHER DEBT 235851AF9 3,144 4,800,000 PRN DEFINED 1 X DANAHER CORP. DEBT 235851AD4 5,109 7,800,000 PRN DEFINED 1 X DEVON ENERGY CORP DEBT 25179MAA1 4,621 4,650,000 PRN DEFINED 1 X DIAMOND OFFSHORE DEBT 25271CAD4 13,648 15,270,000 PRN DEFINED 1 X DIAMOND OFFSHORE DEBT 25271CAE2 4,692 5,250,000 PRN DEFINED 1 X DOCUMENTUM INC DEBT 256159AA2 689 900,000 PRN DEFINED 1 X DUANE READE INC DEBT 263578AB2 788 1,800,000 PRN DEFINED 1 X ECHOSTAR COMM DEBT 278762AG4 2,886 3,900,000 PRN DEFINED 1 X ECHOSTAR COMMUNICATIONS DEBT 278762AD1 2,035 2,700,000 PRN DEFINED 1 X EDO CORP DEBT 281347AC8 792 750,000 PRN DEFINED 1 X EL PASO CORP. DEBT 28336LAC3 5,261 17,250,000 PRN DEFINED 1 X ELEC DATA SYSTEM DEBT 285661AB0 9,224 12,900,000 PRN DEFINED 1 X EMULEX CORP DEBT 292475AB6 877 1,275,000 PRN DEFINED 1 X ENZON INC DEBT 293904AB4 822 1,200,000 PRN DEFINED 1 X FAIRCHILD SEMI DEBT 303727AH4 1,196 1,500,000 PRN DEFINED 1 X FEI COMPANY DEBT 30241LAA7 656 900,000 PRN DEFINED 1 X FIAT FIN LUX SA DEBT 31563NAA1 3,881 4,500,000 PRN DEFINED 1 X FIRST DATA DEBT 319963AD6 9,304 8,850,000 PRN DEFINED 1 X GAP INC DEBT 364760AH1 2,800 2,850,000 PRN DEFINED 1 X GAP INC DEBT 364760AJ7 590 600,000 PRN DEFINED 1 X GATX CORP DEBT 361448AB9 2,944 3,000,000 PRN DEFINED 1 X GENZYME CORP DEBT 372917AJ3 754 900,000 PRN DEFINED 1 X GENZYME CORP DEBT 372917AK0 942 1,125,000 PRN DEFINED 1 X GILEAD SCIENCES DEBT 375558AB9 1,375 900,000 PRN DEFINED 1 X GOLDMAN SACHS / WELLS FARGO DEBT 38141GAB0 2,989 3,000,000 PRN DEFINED 1 X GTECH HOLDINGS DEBT 400518AB2 3,713 3,225,000 PRN DEFINED 1 X HARRIS CORP DEBT 413875AG0 6,704 6,150,000 PRN DEFINED 1 X HASBRO INC DEBT 418056AN7 1,086 1,200,000 PRN DEFINED 1 X HEWLETT PACKARD CO CONV DEBT 428236AC7 6,770 17,700,000 PRN DEFINED 1 X HILTON HOTELS CORP CONV DEBT 432848AL3 2,196 2,400,000 PRN DEFINED 1 X HUMAN GENOME DEBT 444903AF5 1,826 2,550,000 PRN DEFINED 1 X ICN PHARM INC DEBT 448924AM2 389 600,000 PRN DEFINED 1 X ICN PHARMACEUTICALS DEBT 448924AK6 487 750,000 PRN DEFINED 1 X IDEC PHARMACEUT DEBT 449370AC9 1,029 615,000 PRN DEFINED 1 X IDEC PHARMACEUT DEBT 449370AD7 859 1,500,000 PRN DEFINED 1 X INCO LTD DEBT 453258AM7 4,369 7,500,000 PRN DEFINED 1 X INCO LTD CONV DEBT 453258AK1 5,670 5,670,000 PRN DEFINED 1 X INTERNATIONAL RECTIFIER CORP DEBT 460254AD7 704 900,000 PRN DEFINED 1 X INTERPUBLIC GROUP DEBT 460690AJ9 6,514 9,000,000 PRN DEFINED 1 X INTERPUBLIC GRP DEBT 460690AP5 10,946 15,750,000 PRN DEFINED 1 X INTL PAPER CO DEBT 460146BM4 21,642 42,750,000 PRN DEFINED 1 X INTL RECTIFIER DEBT 460254AE5 1,174 1,500,000 PRN DEFINED 1 X INVITROGEN INC DEBT 46185RAC4 1,968 2,475,000 PRN DEFINED 1 X

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE DEFINED NONE - ------------------------------ ---------------- --------- -------- ---------- --- ---- ------- ------------ -------- -------- ------ INVITROGEN INC DEBT 46185RAD2 716 900,000 PRN DEFINED 1 X ISIS PHARMACEUTI DEBT 464337AA2 1,004 1,200,000 PRN DEFINED 1 X IVAX CORP DEBT 465823AD4 7,203 8,550,000 PRN DEFINED 1 X JABIL CIRCUIT DEBT 466313AA1 1,322 1,500,000 PRN DEFINED 1 X JMH FINANCE LIMITED DEBT 46621WAA9 3,628 3,750,000 PRN DEFINED 1 X JONES APPAREL DEBT 480081AD0 12,849 24,300,000 PRN DEFINED 1 X KERR-MCGEE DEBT 492386AP2 14,941 13,980,000 PRN DEFINED 1 X KING PHARM INC DEBT 495582AG3 1,941 2,250,000 PRN DEFINED 1 X L-3 COMM HLDGS DEBT 502424AD6 1,264 1,050,000 PRN DEFINED 1 X LABORATORY CORP OF AMERICA DEBT 50540RAB8 11,279 16,200,000 PRN DEFINED 1 X LABORATORY CP DEBT 50540RAC6 2,089 3,000,000 PRN DEFINED 1 X LAM RESEARCH DEBT 512807AD0 920 1,200,000 PRN DEFINED 1 X LAM RESEARCH DEBT 512807AE8 460 600,000 PRN DEFINED 1 X LAMAR ADVERTISING CO DEBT 512815AF8 1,237 1,275,000 PRN DEFINED 1 X LEAR CORP DEBT 521865AF2 973 2,250,000 PRN DEFINED 1 X LEGG MASON DEBT 524901AE5 4,415 9,150,000 PRN DEFINED 1 X LEGG MASON INC DEBT 524901AG0 2,895 6,000,000 PRN DEFINED 1 X LEHMAN BROS HLDG DEBT 524908EC0 4,389 4,500,000 PRN DEFINED 1 X LENNOX INTERNATL DEBT 526107AA5 1,553 1,500,000 PRN DEFINED 1 X LIBERTY MEDIA DEBT 530715AM3 7,548 12,150,000 PRN DEFINED 1 X LIBERTY MEDIA DEBT 530715AP6 12,342 13,200,000 PRN DEFINED 1 X LIBERTY MEDIA DEBT 530715AR2 3,086 3,300,000 PRN DEFINED 1 X LIBERTY MEDIA / AT&T CORP DEBT 530715AG6 6,757 13,650,000 PRN DEFINED 1 X LIFEPOINT HOSP DEBT 53219LAE9 2,157 2,250,000 PRN DEFINED 1 X LOWES COMPANIES DEBT 548661CD7 10,258 13,215,000 PRN DEFINED 1 X LOWES COMPANIES DEBT 548661CF2 5,822 7,500,000 PRN DEFINED 1 X LSI LOGIC DEBT 502161AE2 753 900,000 PRN DEFINED 1 X LSI LOGIC DEBT 502161AG7 2,231 3,000,000 PRN DEFINED 1 X LTX CORP DEBT 502392AE3 627 1,200,000 PRN DEFINED 1 X MEDIACOM COMM. DEBT 58446KAA3 586 900,000 PRN DEFINED 1 X MEDICIS PHARMACE DEBT 584690AA9 1,748 1,800,000 PRN DEFINED 1 X MEDTRONIC INC DEBT 585055AB2 25,338 24,600,000 PRN DEFINED 1 X MERCURY INTERACTIVE DEBT 589405AB5 1,404 1,725,000 PRN DEFINED 1 X MERRILL LYNCH DEBT 590188A73 55,367 59,550,000 PRN DEFINED 1 X MIRANT CORP DEBT 604675AB4 1,692 3,600,000 PRN DEFINED 1 X

FORM 13F REPORT NAME OF REPORTING MANAGER: ALLSTATE LIFE INSURANCE COMPANY VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE DEFINED NONE - ------------------------------ ---------------- --------- -------- ---------- --- ---- ------- ------------ -------- -------- ------ MIRANT CORP DEBT 604675AC2 1,474 3,000,000 PRN DEFINED 1 X MORGAN STANLEY DEBT 617446GR4 6,488 7,500,000 PRN DEFINED 1 X NABORS DEBT 629568AF3 17,861 29,400,000 PRN DEFINED 1 X NAVISTAR FINL CP DEBT 638902AM8 1,134 1,500,000 PRN DEFINED 1 X NETWORK ASSOC DEBT 64123LAB7 1,172 1,200,000 PRN DEFINED 1 X NETWORK ASSOCIATES DEBT 640938AB2 2,115 4,500,000 PRN DEFINED 1 X NEXTEL COMMUNIC DEBT 65332VBC6 2,368 3,300,000 PRN DEFINED 1 X ODYSSEY RE HLDGS DEBT 67612WAA6 3,203 3,000,000 PRN DEFINED 1 X OFFSHORE LOGISTICS INC DEBT 676255AF9 897 930,000 PRN DEFINED 1 X OHIO CASUALTY DEBT 677240AB9 3,045 3,000,000 PRN DEFINED 1 X OMNICOM GROUP DEBT 681919AK2 16,379 16,650,000 PRN DEFINED 1 X OMNICOM GROUP DEBT 681919AM8 12,234 13,050,000 PRN DEFINED 1 X PENNEY (JC) CO DEBT 708160BV7 1,444 1,650,000 PRN DEFINED 1 X PERFORMANCE FOOD DEBT 713755AA4 1,216 975,000 PRN DEFINED 1 X PMI GROUP INC DEBT 69344MAE1 5,394 5,250,000 PRN DEFINED 1 X PROVINCE HEALTHC DEBT 743977AE0 1,477 1,650,000 PRN DEFINED 1 X RADIAN GROUP DEBT 750236AE1 4,388 4,500,000 PRN DEFINED 1 X RATIONAL SOFTWARE DEBT 75409PAC7 1,465 1,875,000 PRN DEFINED 1 X REEBOK DEBT 758110AD2 6,935 6,900,000 PRN DEFINED 1 X RF MICRO DEVICES DEBT 749941AB6 735 975,000 PRN DEFINED 1 X ROCHE HLDGS/GENENTECH DEBT 771196AG7 23,098 32,475,000 PRN DEFINED 1 X SANMINA CORP DEBT 800907AB3 6,358 7,350,000 PRN DEFINED 1 X SELECTIVE INS GP DEBT 816300AA5 2,235 6,000,000 PRN DEFINED 1 X SHAW GROUP DEBT 820280AC9 3,978 7,800,000 PRN DEFINED 1 X SPX CORP DEBT 784635AD6 1,545 2,400,000 PRN DEFINED 1 X SPX CORP. DEBT 784635AC8 1,931 3,000,000 PRN DEFINED 1 X STMICROELECTRON DEBT 861012AB8 9,035 11,400,000 PRN DEFINED 1 X SYMANTEC CORP DEBT 871503AB4 2,261 1,800,000 PRN DEFINED 1 X TERADYNE INC DEBT 880770AD4 1,609 2,100,000 PRN DEFINED 1 X TEVA PHARMACEUT DEBT 88163VAB5 14,735 14,100,000 PRN DEFINED 1 X THERMO INSTR SYS INC., CONVERTIBLE DEBT 883556AH5 15,840 16,500,000 PRN DEFINED 1 X TRANSOCEAN SEDCO FOREX DEBT 893830AD1 15,747 17,400,000 PRN DEFINED 1 X TYCO INTL GROUP DEBT 902118AW8 15,714 21,600,000 PRN DEFINED 1 X UNITED PARCEL DEBT 911312AB2 9,730 9,300,000 PRN DEFINED 1 X UNIV HEALTH SVCS DEBT 913903AL4 11,109 16,800,000 PRN DEFINED 1 X VERITAS SOFTWARE DEBT 92343RAA1 2,139 2,625,000 PRN DEFINED 1 X VERIZON GLOBAL DEBT 92344GAN6 5,859 10,800,000 PRN DEFINED 1 X VERIZON GLOBAL DEBT 92344GAP1 21,849 40,275,000 PRN DEFINED 1 X VISHAY INTERTECH DEBT 928298AD0 1,866 3,750,000 PRN DEFINED 1 X WEBMD CORP DEBT 94769MAA3 819 1,050,000 PRN DEFINED 1 X XEROX DEBT 984121BB8 1,695 3,000,000 PRN DEFINED 1 X XL CAPITAL LTD DEBT 98372PAB4 20,806 33,900,000 PRN DEFINED 1 X YOUNG & RUBICAM DEBT 987425AC9 4,039 4,500,000 PRN DEFINED 1 X REPORT TOTALS 185 1,056,086 === =========