Allstate Advisor Variable Annuity Can Now Help Individuals Save, Spend or Pass on Their Retirement Savings.

NORTHBROOK, Ill. -- VA Now Offers SureIncome(sm) Withdrawal Benefit, TrueReturn(sm) Accumulation Benefit and Spousal Protection Benefit Options

The 2004 Allstate "Retirement Reality Check" survey found that almost half (44 percent) of those surveyed who are still working admitted they're likely to work after retirement because they'll need income to make ends meet. Specifically among Baby Boomers surveyed, 53 percent, and 44 percent of Generation Xers said they have increased their retirement savings in recent years to catch up to where they believe they should be.

"These results reveal that many Americans are now realizing that they will need to increase their personal retirement savings and/or will have to continue to work into their retirement in order to make up for a retirement savings shortfall," explains Rob Shore, president, Allstate Distributors, L.L.C. "However, there are investment options available to consumers that can help provide them with a versatile approach to fulfill and preserve retirement goals - whether an individual wishes to save, spend or pass on their assets."

According to Shore, one such option financial advisors can now offer their customers is the newly enhanced Allstate Advisor Variable Annuity, which features a number of different options to meet a customer's needs. Variable annuities are investment products that may be used as a retirement savings vehicles once contributions to 401(k) plans and IRA's have been maxed out. This investment option can offer unique advantages to help build assets, protect from the ups and downs of the market, and may generate a predictable flow of income when an individual needs it. Variable annuities can also provide benefits that can extend to a spouse or family. In addition, similar to many retirement savings options, variable annuities can also provide tax advantages.

Spend It

For individuals who wish to begin accessing their money, but don't want to miss out on potential gains that could lift their portfolio further, the Allstate Advisor Variable Annuity now features the new SureIncome(sm) Withdrawal Benefit Option.

SureIncome can allow individuals to pursue potential investment growth, while guaranteeing that they will not end up with less than their original investment. This assures predictable withdrawals should the stock market decline. Yet if the market rises, individuals can lock in a higher guarantee after five years.

The SureIncome option, available to customers for an added annual charge, helps those who wish to protect their principal, pursue potential growth, and enjoy generous withdrawal amounts of up to 8 percent of the principal per year.

Customers who are transitioning into retirement and looking to build an income plan can also choose the Income Protection Benefit Option, which provides a guaranteed minimum level of income for the rest of their lives. This benefit can be added when the individual begins taking variable payments or income from the annuity. There is an added mortality and risk charge for this option.

Save It

For those still saving for retirement, but want to protect their principal and guarantee returns, the Allstate Advisor Variable Annuity offers the TrueReturn(sm) Accumulation Benefit Option.

TrueReturn, which was added to the Allstate Advisor in January 2004, guarantees that on the date the customer chooses (the rider maturity date), that they will have at least the principal they started with, and possibly even more, depending on the option and timeframe selected. On that date, even if the value of the investment is below the guarantee amount, Allstate will add money to the variable annuity to increase it to the guarantee amount. There is an added annual charge for TrueReturn.

Pass It On

The option to pass on retirement savings, should the person not be able to enjoy them, has long been an interest of consumers. In fact, according to the recent Allstate "Retirement Reality Check" survey, among current retirees, 72 percent said they intended to leave money to children or grandchildren. However, 18 percent of retirees surveyed said that the amount they're likely to leave has gone down since they began their retirement. And even among retirees who don't expect to leave money to children or grandchildren, 33 percent said that when they first retired, they thought they would be able to do so.

In line with these findings, the Allstate Advisor Variable Annuity offers a number of optional death benefits to help meet specific client needs. These features ensure beneficiaries will receive payments from the variable annuity should the customer pass away before they start receiving the payments. These optional death benefits also help to protect against market fluctuations.

One particularly innovative feature is the Spousal Protection (Co-Annuitant) Benefit, which provides a death benefit for both the IRA owner and their spouse as a co-annuitant under one annuity contract. By choosing this option, a surviving spouse will receive the death benefit should one spouse pass away. This benefit, which has an additional annual charge, is only available within a Traditional, Roth, Simplified Employee Pension or Custodial IRA.

The Money Managers Behind the Allstate Advisor VA

The newly enhanced Allstate Advisor Variable Annuity includes a number of investment alternatives from well-known Money Managers, such as:

--Franklin Templeton Investments

--Lord, Abbett & Co. LLC 

--OppenheimerFunds

--Putnam Investments

--Van Kampen Investments

Financial advisors, who wish to obtain more information and a prospectus for the enhanced Allstate Advisor Variable Annuity, can do so by registering and logging onto www.accessallstate.com. Or, Broker Dealers can call 1-877-507-6881 for more information. Financial Institutions/Independent Planners may call 1-877-254-0772.

Variable annuities are long-term investments designed for retirement purposes. A customer should carefully consider the investment objectives, risks, charges and expenses of the investment alternatives before purchasing a contract or investing money. These contracts have limitations and are sold by prospectus only. The prospectus contains details on the investment alternatives, contract features, the underlying portfolios, fees, charges, expense and other pertinent information. A customer should read the prospectus carefully before purchasing a contract or sending money.

Guarantees are based on the claims paying ability of Allstate Life Insurance Company.

The Allstate Advisor Variable Annuity is issued by Allstate Life Insurance Company and underwritten by Allstate Distributors, L.L.C.

Allstate created the fourth annual Allstate "Retirement Reality Check" survey in conjunction with Mathew Greenwald & Associates. Using a random digit dialing methodology, Greenwald & Associates polled 1,604 people born between 1946 and 1978, with household incomes of $35,000 or more. Retirees were accepted with incomes of at least $20,000. The margin of error (at the 95 percent confidence level) for the total number of respondents in this study is +/-2.5 percent, +/-3.8 percent for information specific to Gen Xers, +/-4.5 percent for Baby Boomers, and +/-5.0 for Silent Generation.

The Allstate Corporation (NYSE:ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate helps individuals in more than 16 million households protect what they have today and better prepare for tomorrow through more than 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agencies, or in select states at allstate.com and 1-800 Allstate(R). Encompass(SM) and Deerbrook(R) Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, annuity, retirement, banking and investment products through distribution channels that include Allstate agencies, independent agencies, financial institutions and broker-dealers.