IDS LIFE INSURANCE CO /MN, 424B3, 1994-05-03

IDS LIFE INSURANCE CO /MN
424B3, 1994-05-03

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PAGE 1

IDS Life Market Value Annuity
Prospectus, April 29, 1994

This prospectus describes interests in a group market value annuity
contract and individual market value annuity contracts (Preferred
Choice Annuities) offered by IDS Life Insurance Company (IDS Life)
to the general public for non-tax benefited purchases. With
respect to the group contract, eligible individuals include members
of the general public.

Participation in a group contract will be accounted for separately
by the issuance of a certificate showing your interest under the
group contract. Participation in an individual contract is shown
by the issuance of an individual annuity contract. The certificate
and the individual contract are both referred to as the "Contract."

In addition, IDS Life may offer these Contracts in the following
tax benefited programs: (1) plans qualified under Section 401(a),
401(k) or 403(a) of the Internal Revenue Code of 1986, as amended
(the Code); (2) annuity purchase plans adopted by public school
systems and certain tax-exempt organizations pursuant to Section
403(b) of the Code; (3) individual retirement annuities established
by persons, eligible under Section 408 of the Code (IRA); (4)
contracts purchased by the U.S. Government, the government of any
state or political subdivision thereof, or by any agency or
instrumentality (within the meaning of Section 414(d) of the Code),
for use in satisfying its obligation to provide a benefit under a
governmental plan; and (5) deferred compensation plans under
Section 457 of the Code.

A minimum purchase payment of at least $5,000 must accompany the
application for a Contract. No additional payment is permitted
under a Contract. The Accumulation Value will be guaranteed by the
general assets of IDS Life. IDS Life generally intends to invest
funds received in relation to Contracts in a variety of debt
instruments having price durations which tend to match the
applicable Contract.

IDS Life Account MGA
Group and Individual Market
Value Annuity Contracts

Sold by:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Telephone: 800-422-3542

THESE SECURITIES MAY BE SUBJECT TO A SUBSTANTIAL SURRENDER CHARGE
AND/OR MARKET VALUE ADJUSTMENT IF NOT HELD TO THE RENEWAL DATE
WHICH COULD RESULT IN YOUR RECEIPT OF LESS THAN YOUR ORIGINAL
PURCHASE PAYMENT.

FOR RENEWAL GUARANTEE PERIODS, THE RENEWAL INTEREST RATE WILL BE
DECLARED BY IDS LIFE BASED ON VARIOUS FACTORS. IT MAY BE HIGHER OR
LOWER THAN THE PREVIOUS GUARANTEED INTEREST RATE.<PAGE>
PAGE 2
THE MINIMUM GUARANTEED RENEWAL INTEREST RATE IS 3 PERCENT.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

IDS LIFE INSURANCE COMPANY IS NOT A BANK AND THE SECURITIES IT
OFFERS ARE NOT BACKED OR GUARANTEED BY ANY BANK, NOR ARE THEY
INSURED BY THE FDIC.

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PAGE 3

Table of Contents Page

Summary...................................................

Glossary of Special Terms.................................

Description of Contracts..................................
General...................................................
Application and Purchase Payment..........................
Right to Cancel...........................................
Guarantee Periods.........................................
Surrenders................................................
Surrender Charge..........................................
Market Value Adjustment...................................
Premium Taxes.............................................
Death Benefit Prior to Settlement.........................
Statement.................................................
Electing the Settlement Date and Form of Annuity..........

Investments by IDS Life...................................

Amendment of Contracts....................................

Distribution of Contracts.................................

Assignment of Contracts...................................

Federal Tax Considerations................................

The Company...............................................
Business..................................................
Selected Financial Data...................................
Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations.............
Reserves..................................................
Investments...............................................
Competition...............................................
Employees.................................................
Properties................................................
State Regulation..........................................

Directors and Executive Officers..........................

Executive Compensation....................................

Security Ownership of Management..........................

Legal Proceedings and Opinion.............................

Experts...................................................

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PAGE 4
Appendix A (Partial Surrender Illustration)...............

Appendix B (Market Value Adjustment Illustration).........

IDS Life Financial Information............................

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PAGE 5
Summary

IDS Life is offering group and individual market value annuities to
the general public for non-tax benefited and tax benefited
purchases. IDS Life is a wholly owned subsidiary of IDS Financial
Corporation (IDS), which itself is a wholly owned subsidiary of
American Express Company (American Express). As described in this
prospectus, market value annuity Contracts have a guaranteed
interest rate that is credited to the purchase payment when it is
held to the end of the Guarantee Period (the Renewal Date).
Surrenders before the Renewal Date are subject to a Market Value
Adjustment and a surrender charge (if applicable).

When a payment is made under an application, the applicant selects
a Guarantee Period from among those then offered by IDS Life.
During this Guarantee Period, the purchase payment earns interest
at the applicable guaranteed interest rate as established by IDS
Life. Interest is credited on a daily basis and the interest
credited earns interest at the applicable guaranteed interest rate
as established by IDS Life. (See Guarantee Periods page ).

At the end of each Guarantee Period, a renewal Guarantee Period of
one year will begin, unless the Owner elects a different duration.
The Owner must elect the length of a renewal Guarantee Period
during the 30 days before the end of the previous Guarantee Period.
Failure to make an election will result in an automatic renewal for
a period of one year. As of the first day of each renewal
Guarantee Period the renewal value will earn interest at the then
applicable renewal guaranteed interest rate and the interest
credited will earn interest at the then applicable renewal
guaranteed interest rate. (See Guarantee Periods page ).

Subject to certain restrictions, partial or total surrenders are
permitted. We may defer payment of any surrender for a period up
to six months from the date we receive notice of surrender or the
period permitted by state law, if less. A deferral of payment will
not be for a period greater than seven days except under
extraordinary circumstances. We will pay annual interest of at
least 3 percent of any amounts deferred for more than thirty days
during such period if we choose to exercise this deferral right.
(See Surrenders page ).

Surrenders may be subject to a surrender charge and/or a Market
Value Adjustment. Before the eighth Contract anniversary, a
surrender charge beginning at a maximum of 8 percent will be
assessed if you surrender. No surrender charge will be applied for
any surrenders after the eighth Contract anniversary or if the
surrender occurs on the last day of a Guarantee Period. We will<PAGE>
PAGE 6
waive the surrender charge in certain instances. (See Surrender
Charge page ).

A Market Value Adjustment will be applied when the surrender occurs
before the Renewal Date. No Market Value Adjustment will be
applied to any surrender effective as of the end of a Guarantee
Period. The Market Adjusted Value will reflect the relationship,
at the time of surrender, between the rate we then are crediting on
purchase payments to new Contracts with the same durations as the
time remaining in the Guarantee Period, and the guaranteed interest
rate applicable to that Contract. Generally, significant factors
affecting the amount of the Market Value Adjustment are the level
of interest rates on investments that are similar to those
supporting current Contract purchase payments and the time
remaining to the end of the Guarantee Period. The Market Adjusted
Value is sensitive, therefore, to changes in Current Interest
Rates. The level of the Market Value Adjustment is dependent on
the Current Interest Rate at the time of surrender. The Market
Value Adjustment may increase or decrease the value of this
investment before the Renewal Date. It is possible that the amount
you receive on surrender would be less than your original purchase
payment if interest rates increase. Also, if interest rates
decrease, the amount you receive on surrender may be more than your
original purchase payment and accrued interest. The Market
Adjusted Value also affects settlements under an annuity payment
plan. (See Market Value Adjustment page ).

We reserve the right to deduct applicable premium taxes from the
Accumulation Value of the Contract. (See Premium Taxes page ).

The Contract provides for a guaranteed death benefit. In the event
of the death of the Annuitant or Owner prior to the Settlement
Date, IDS Life will pay to the Owner or beneficiary the death
benefit in lieu of any other payment under the Contract. The
amount of the death benefit will equal the Accumulation Value. (See
Death Benefit Prior to Settlement page ).

On the Settlement Date specified by the Owner, IDS Life will pay
the Owner a lump sum payment or start to pay a series of payments.
A series of payments may be elected under certain Annuity Plans.
(See Electing the Settlement Date and Form of Annuity page ).

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PAGE 7
Glossary of Special Terms

In this prospectus "we" "us" and "IDS Life" refer to IDS Life
Insurance Company and "you" and "yours" refer to an Owner who has
been issued a Contract.

In addition, as used in this prospectus, the following terms have
the indicated meanings:

Accumulation Value - The value of the purchase payment plus
interest credited, adjusted for any surrenders.

Annuitant - The person on whose life monthly annuity payments
depend.

Cash Surrender Value - The Market Adjusted Value less any
applicable surrender charge.

Contract Anniversary - The same day and month as the Contract Date
each year that the Contract remains in force.

Contract Date - The effective date of the Contract as designated in
the Contract.

Current Interest Rate - The applicable interest rate contained in a
schedule of rates established by us from time to time for various
Guarantee Periods.

Initial Guarantee Period - The period during which the Initial
Guarantee Rate will be credited.

Initial Guarantee Rate - The rate of interest credited to the
purchase payment during the Initial Guarantee Period.

Market Adjusted Value - The Accumulation Value adjusted by the
Market Adjusted Value formula, on any date before the end of the
Guarantee Period.

Market Value Adjustment - The Market Adjusted Value minus the
Accumulation Value.

Owner - The person or entity to whom the annuity Contract is
issued.

Renewal Date - The first day of a Renewal Guarantee Period. It
will always be on a Contract Anniversary.

Renewal Guarantee Period - A Renewal Guarantee Period will begin at
the end of each Guarantee Period.

Renewal Guarantee Rate - The rate of interest credited to the
Renewal Value during the Renewal Guarantee Period.

Renewal Value - The accumulation value at the end of the current
Guarantee Period.<PAGE>
PAGE 8
Settlement - The application of the Market Adjusted Value of the
Contract to provide annuity payments.

Settlement Date - The date on which annuity payments are to begin.

Written Request - A request in writing signed by you and delivered
to us at our Home Office.

Description of Contracts

General

This prospectus describes interests in market value annuities
offered by IDS Life for non-tax benefited purchases. In addition,
IDS Life may offer the Contracts in the following tax benefited
programs: (1) Section 401(a), 401(k) and 403(a) Plans; (2) Section
403(b) Plans; (3) IRAs; (4) certain governmental plans; and (5)
deferred compensation plans.

As described in this prospectus, the Contracts have a guaranteed
interest rate that is credited to a purchase payment in the
Contract when the purchase payment is held to its Renewal Date.
Surrenders prior to the Renewal Date are subject to a Market Value
Adjustment and a surrender charge (if applicable).

Application and Purchase Payment

To apply for a Contract, you must complete an application and make
a minimum purchase payment of $5,000. For individuals age 75 and
younger, the maximum purchase payment is $1,000,000 without prior
approval. For individuals age 76 to 85, it is $500,000. If you
purchase the Contract to fund a tax benefited plan, that plan's
limit on contributions also will apply.

We will return an improperly completed application, along with the
corresponding purchase payment, five days after we receive it if
the application has not, by that time, been properly completed.

A payment is credited to a Contract on the date we receive a
properly completed application along with the purchase payment.
Interest is earned the next day. IDS Life then issues a Contract
and confirms the purchase payment in writing.

Right to Cancel

State or Federal law may give you the right to cancel the Contract
within a specific period of time after receipt of the Contract and
receive a refund of the entire purchase payment. For revocation to
be effective, mailing or delivery of notice of cancellation must be
made in writing to our Home Office at IDS Tower 10, Minneapolis,
Minnesota 55440-0010.
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PAGE 9
Guarantee Periods

The Owner selects the duration of the Guarantee Period from among
those durations we offer. As of the date of this prospectus, we
are offering Guarantee Periods with annual durations from one to 10
years; however, the Guarantee Periods we offer in the future could
be different. The duration selected will determine the guaranteed
interest rate and the purchase payment (less surrenders made and
less applicable premium taxes, if any) will earn interest at this
guaranteed interest rate during the entire Guarantee Period. All
interest earned will be credited daily; this compounding effect is
reflected in the guaranteed interest rate.

Below is an illustration of how we will credit interest during the
Guarantee Period. For the purpose of this example, we have made
the assumptions as indicated.

Example of Guaranteed Rate of Accumulation

Beginning Account Value: $50,000
Guaranteed Period: 10 years
Guaranteed Rate: 5 percent Annual Effective Rate

Interest Credited
to the Account Cumulative Interest
Year During Year Credited to the Account

1 $2,500.00 $ 2,500.00
2 2,625.00 5,125.00
3 2,756.25 7,881.25
4 2,894.06 10,775.31
5 3,038.77 13,814.08
6 3,190.70 17,004.78
7 3,350.24 20,355.02
8 3,517.75 23,872.77
9 3,693.64 27,566.41
10 3,878.32 31,444.73

Guaranteed Accumulation Value at the end of 10 years is:
$50,000 + $31,444.73 = $81,444.73

Note: This example assumes no surrenders of any amount during the
entire ten-year period. A Market Value Adjustment applies and a
surrender charge may apply to any interim surrender. (See
Surrenders). The hypothetical interest rates are illustrative only
and are not intended to predict future interest rates to be
declared under the Contract. Actual interest rates declared for
any given time may be more or less than those shown.

Renewal Guarantee Periods - At the end of any Guarantee Period, a
Renewal Guarantee Period will begin. We will notify you in writing
about the Renewal Guarantee Periods available before the Renewal
Date. This written notification will not specify the interest rate
for the Renewal Value. You may elect in writing, during the 30-day
period before the end of the Guarantee Period, a Renewal Guarantee<PAGE>
PAGE 10
Period of a different duration from among those we offer at that
time. If no election is made, we will automatically apply the
Renewal Value to a Guarantee Period of one year. In no event may
Renewal Guarantee Periods extend beyond the Settlement Date then in
effect for the Contract. For example, if the Annuitant is age 62
at the end of a Guarantee Period and the Settlement Date for the
Annuitant is age 65, a three-year Guarantee Period is the maximum
Guarantee Period that may be selected under the Contract. The
Renewal Value will then earn interest at a guaranteed interest rate
that we have declared for such duration. We may declare new
schedules of guaranteed interest rates as frequently as daily.

At the beginning of any Renewal Guarantee Period, the Renewal Value
will be the Accumulation Value at the end of the Guarantee Period
just ending. The Renewal Value is guaranteed by our general
assets. This amount will earn interest for the Renewal Guarantee
Period at the then applicable guaranteed interest rate for the
period selected, that may be higher or lower than the previous
guaranteed interest rate.

At your Written Request, we will notify you of the Renewal
Guarantee Rates for the periods then available. You also may call
us to inquire about Renewal Guarantee Rates.

Establishment of Guaranteed Interest Rates - The guaranteed
interest rate for a chosen Guarantee Period will be known at the
time a purchase payment is received or an Accumulation Value is
renewed. We will send a confirmation that will show the amount and
the applicable guaranteed interest rate. The minimum guaranteed
interest rate for Renewal Values is 3 percent per year. The rate
on Renewal Values will be equal to or greater than the rate
credited on new comparable purchase payments at that time.

IDS Life has no specific formula for determining the rate of
interest that it will declare as guaranteed interest rates in the
future. We will declare the guaranteed interest rates from time to
time based on our analysis of current market conditions. (See
Investments by IDS Life). In addition, IDS Life also may consider
various other factors in determining guaranteed interest rates for
a given period, including, regulatory and tax requirements; sales
commission and administrative expenses we bear; general economic
trends; and competitive factors. IDS Life management will make the
final determination as to the guaranteed interest rates to be
declared. We cannot predict nor can we guarantee future guaranteed
interest rates above the 3 percent rate.

Surrenders

General - Subject to certain tax law and retirement plan
restrictions noted below, total and partial surrenders may be made
under a Contract at any time.

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PAGE 11

In the case of all surrenders, the Accumulation Value will be
reduced by the amount surrendered on the surrender date and that
amount will be payable to the Owner. The Accumulation Value also
will be reduced by any applicable surrender charge and either
reduced or increased by any Market Value Adjustment applicable to
the surrender. IDS Life will, on request, inform you of the amount
payable in a total or partial surrender. Any total or partial
surrender may be subject to tax and tax penalties. Surrenders from
certain tax benefited Contracts also may be subject to 20 percent
income tax withholding. (See Federal Tax Considerations).

Tax-Sheltered Annuities - The Code imposes certain restrictions on
an Owner's right to receive early distributions attributable to
salary reduction contributions from a Contract purchased for a
retirement plan qualified under Section 403(b) of the Code as a
Tax-Sheltered Annuity (TSA).

Distributions attributable to salary reduction contributions made
after Dec. 31, 1988, plus the earnings on them, or to transfers or
rollovers of such amounts from other contracts may be made from the
TSA contract only if the Owner has attained age 59-1/2, has become
disabled as defined in the Code, has separated from the service of
the employer that purchased the Contract or has died.

Additionally, if the Owner should encounter a financial hardship
(within the meaning of the Code), he or she may receive a
distribution of all Contract values attributable to salary
reduction contributions made after Dec. 31, 1988, but not of the
earnings on them.

Even though a distribution may be permitted under these rules
(e.g., for hardship or after separation from service), it may
nonetheless be subject to a 10 percent IRS penalty tax (in addition
to income tax) as a premature distribution and to 20 percent income
tax withholding. (See Federal Tax Considerations).

These restrictions do not apply to transfers of Contract value to
another TSA investment vehicle available through the employer.

Partial Surrenders - The minimum amount you may surrender is $250.
You cannot make a partial surrender if it would reduce the
Accumulation Value of your annuity to less than $2,000.

You may request the net check amount you wish to receive. We will
determine how much Accumulation Value needs to be surrendered to
yield the net check amount after any applicable Market Value
Adjustments and surrender charge deductions.

A partial surrender request not exceeding $40,000 may be made by
telephone. We have the authority to honor any telephone partial
surrender request believed to be authentic and will use reasonable
procedures to confirm that they are. This includes asking
identifying questions and tape recording calls. As long as
reasonable procedures are followed, neither IDS Life nor its
affiliates will be liable for any loss resulting from fraudulent
requests. At times when the volume of telephone requests is <PAGE>
PAGE 12
unusually high, we will take special measures to ensure that your
call is answered as promptly as possible. A telephone surrender
request will not be allowed within 30 days of a phoned-in address
change.

Total Surrenders - We will compute the value of your Contract at
the close of business after we receive your request for a complete
surrender. We may ask you to return the Contract.

Payment on Surrender - We may defer payment of any partial or total
surrender for a period not exceeding 6 months from the date we
receive your notice of surrender or the period permitted by state
insurance law, if less. Only under extraordinary circumstances
will we defer a surrender payment more than 7 days, and if we defer
payment for more than 30 days, we will pay annual interest of at
least 3 percent on the amount deferred. While all circumstances
under which we could defer payment upon surrender may not be
foreseeable at this time, such circumstances could include, for
example, our inability to liquidate assets due to a general
financial crisis. If we intend to withhold payment more than 30
days, we will notify you in writing.

Surrender Charge

A surrender charge may be assessed on any total or partial
surrender taken prior to the eighth Contract anniversary unless the
surrender occurs on the last day of a Guarantee Period. The amount
of the surrender charge will be based on the length of the
Guarantee Period. The table below shows the maximum amount of the
surrender charge.

Surrender Charge Percentage

Guarantee Period Contract Years as measured from the beginning
of a Guarantee Period

1 2 3 4 5 6 7 8

1 Year 1%
2 Years 2 1%
3 Years 3 2 1%
4 Years 4 3 2 1%
5 Years 5 4 3 2 1%
6 Years 6 5 4 3 2 1%
7 Years 7 6 5 4 3 2 1%
8 Years 8 7 6 5 4 3 2 1%
9 Years 8 7 6 5 4 3 2 1
10 Years 8 7 6 5 4 3 2 1

For Renewal Guarantee Periods, the surrender charge will be based
on the lesser of:
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PAGE 13
o the length of the new Guarantee Period, or
o the number of years remaining until the eighth Contract
anniversary.

For example, if a Contract Owner chose an Initial Guarantee Period
of 5 years and later a Renewal Guarantee Period of 4 years, the
surrender charge percentages would be:

Contract Year Surrender Charge

1 5%
2 4
3 3
4 2
5 1*
6 3
7 2
8 1
9+ 0

*0% on last day of 5th Contract year.

There will never be any surrender charges after the eighth Contract
anniversary.

Also, after the first Contract anniversary, surrender charges will
not apply to surrenders of amounts totalling up to 10 percent of
the Accumulation Value as of the last Contract anniversary.

Surrender Charge Calculation - If there is a surrender charge, it
is calculated as:

(A minus B) multiplied by P

where: A = Market Adjusted Value surrendered
B = 10 percent of Accumulation Value on last Contract
anniversary not already taken as a partial surrender
this Contract year.
P = applicable surrender charge percentage

For an illustration of a partial surrender and applicable surrender
charges, see Appendix A.

Waiver of Surrender Charge - There will be no surrender charge:

o on the last day of a Guarantee Period;
o after the eighth Contract anniversary;
o after the first Contract anniversary for surrenders of amounts
totalling up to 10 percent of the Contract Accumulation Value
as of the last Contract anniversary;
o upon the death of the Annuitant or Owner; or<PAGE>
PAGE 14
o upon the application of the Market Adjusted Value to provide
annuity payments under an annuity payment plan (if such
application occurs on a Renewal Date, there will be no
surrender charge or Market Value Adjustment, and the full
Accumulation Value will be applied under an annuity payment
plan).

In some cases, such as when an employer makes this annuity
available to employees, we may expect to incur lower sales and
administrative expenses or perform fewer services due to the size
of the group, the average contribution and the use of group
enrollment procedures. Then we may be able to reduce or eliminate
surrender charges. However, we expect this to occur infrequently.

Market Value Adjustment

The Accumulation Value, including the interest credited, is
guaranteed if the Contract is held until the end of the Guarantee
Period. However, a Market Value Adjustment will be applied if a
surrender occurs prior to the end of the Guarantee Period. The
Market Adjusted Value also affects Settlements under an annuity
payment plan.

The Market Adjusted Value is your Accumulation Value (purchase
payment plus interest credited minus surrenders and surrender
charges) adjusted by a formula. The Market Adjusted Value reflects
the relationship between the guaranteed interest rate on your
Contract and the interest rate we are crediting on new contracts
with Guarantee Periods that are the same as the time remaining in
your Guarantee Period.

The Market Adjusted Value is sensitive to changes in Current
Interest Rates. The difference between your Accumulation Value and
Market Adjusted Value on any day will depend on our current
schedule of guaranteed interest rates on that day, the time
remaining in your Guarantee Period and your guaranteed interest
rate.

Your Market Adjusted Value may be more or less than your
Accumulation Value. If your guaranteed interest rate is lower than
the Current Interest Rate, your Market Adjusted Value probably will
be lower than your Accumulation Value. If your guaranteed interest
rate is higher than the Current Interest Rate, your Market Adjusted
Value probably will be higher than your Accumulation Value.

For example, assume you bought a Contract with a Guarantee Period
of 10 years and a guaranteed interest rate of 4.5 percent annually.
Assume that after 3 years you decide to surrender your Contract
(you have 7 years left in your Guarantee Period). If the Current
Interest Rate we are offering on new Contracts with 7-year
Guarantee Periods is 5 percent, your Market Adjusted Value will be
lower than your Accumulation Value. On the other hand, if the
Current Interest Rate we are then offering on new Contracts with
7-year Guarantee Periods is 4 percent, your Market Adjusted Value
will be higher than your Accumulation Value.
<PAGE>
PAGE 15
Market Adjusted Value Formula:

Market Adjusted Value = (Renewal Value)
(1 + ic + .0025)(N + t)

Renewal Value -- The Accumulation Value at the end of the current
Guarantee Period

ic -- The Current Interest Rate offered for new Contract
sales and renewals for the number of years
remaining in the Guarantee Period

N -- The number of complete Contract years to the end
of the current Guarantee Period

t -- The fraction of the Contract year remaining to the
end of the Contract year (for example, if 180 days
remain in a 365 day year, t would be .493)

The current guaranteed interest rate (ic) is declared by us
periodically. It is the rate which we are then paying on purchase
payments and renewals paid under this class of Contracts for
Guarantee Period durations equaling the remaining Guarantee Period
duration of the Contract to which the formula is being applied. If
the remaining Guarantee Period is a number of complete years, the
specific complete year guarantee rate will be used. If the
remaining Guarantee Period is less than 1 year, the one year
guarantee rate will be used. If the remaining Guarantee Period is
a number of complete years plus fractional years, the rate will be
determined by straight line interpolation between the two years'
rates. For example, if the remaining Guarantee Period duration is
8.5 years, and the current guaranteed interest rate for 8 years is
4 percent and for 9 years is 5 percent, IDS Life will use a
guaranteed interest rate of 4.5 percent.

Market Value Adjustment Formula:

Market Value Adjustment = Market Adjusted Value less
Accumulation Value

For an illustration showing an upward and downward adjustment, see
Appendix B.

Premium Taxes

We reserve the right to deduct an amount from the Accumulation
Value of the Contract at the time that any applicable premium taxes
not previously deducted are payable. If a tax is payable at the
time of the purchase payment and we choose to not deduct it at that
time, we further reserve the right to deduct it at a later date.
Current premium taxes range in an amount up to 3.5 percent
depending on jurisdiction.
<PAGE>
PAGE 16
Death Benefit Prior to Settlement

If the Annuitant or Owner dies before the Settlement Date, the
death benefit payable to the beneficiary will equal the
Accumulation Value.

If your Spouse is Sole Beneficiary or Co-Owner - If you, as Owner
or Co-Owner, die before the Settlement Date and your spouse is the
only beneficiary or Co-Owner, your spouse may keep the annuity as
Owner. To do this, your spouse must, within 60 days after we
receive proof of death, give us written instructions to keep the
Contract in force.

Section 401(k) Plans, Section 403(b) Plans (TSAs), Section 457
Plans, Custodial and Trusteed Plans, and IRAs - If the Contract is
purchased under a Section 401(k) plan, Section 403(b) plan, Section
457 plan, custodial or trusteed plan or for an IRA and we receive
proof of the annuitant's death before the Settlement Date, we will
pay the beneficiary the death benefit described above. If the
annuitant dies before reaching age 70-1/2 and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached 70-1/2. To do
this, the spouse must, within 60 days after we receive proof of
death, give us written instructions to keep the Contract in force.

Paying the Beneficiary - Unless you have given us other written
instructions, we will pay the beneficiary in a single payment. The
beneficiary may elect to receive this payment at any time within 5
years after the date of death. Payment from a tax benefited
Contract (except an IRA) made to a surviving spouse instead of
being directly rolled over to an IRA may be subject to 20 percent
income tax withholding. We may make payments under any payment
plan available under this Contract if:

o the beneficiary asks us in writing within 60 days after we
receive proof of death;

o payments begin no later than one year after death; and

o the payment period does not extend beyond the beneficiary's life
or life expectancy.

We will determine the Market Adjusted Value at the next close of
business after our death claim requirements are fulfilled. We will
mail payment to the beneficiary within seven days after our death
claim requirements are fulfilled.

Statement

Prior to the Settlement Date, at least annually, we will send a
statement showing a summary of the Contract.
<PAGE>
PAGE 17
Electing the Settlement Date and Form of Annuity

A Settlement Date is established when you apply for the Contract.
The Settlement Date may be changed, but any such change must be
made in writing and received by us at least 30 days prior to the
scheduled Settlement Date.

The Settlement Date cannot be later than the later of:

o the Contract anniversary nearest the Annuitant's 85th birthday;
or

o the 10th Contract anniversary.

Annuity Payments - The first payment will be made as of the
Settlement Date. Once annuity payments have started for an
Annuitant, no surrender of the annuity benefit can be made for the
purpose of receiving a lump sum in lieu of payments.

Death After Settlement Date - If you or the Annuitant dies after
the Settlement Date, the amount payable to the beneficiary, if any,
will continue as provided in the annuity payment plan then in
effect.

Annuity Plans - There are different ways to receive annuity
payments. We call these plans. You may select one of these plans,
or another payment arrangement to which we agree, by giving us
written notice at least 30 days before the Settlement Date.

The Market Adjusted Value (less applicable premium taxes, if any)
may be applied on the Settlement Date under any of the annuity
plans described below, but in the absence of an election, the
Market Adjusted Value will be applied on the Settlement Date under
Plan B to provide a life annuity with 120 monthly payments certain.

If the amount to be applied to an annuity plan is not at least
$2,000 or if payments are to be made to other than a natural
person, we have the right to make a lump sum payment of the Cash
Surrender Value. If a lump sum payment is made from a tax
benefited Contract (except an IRA), 20 percent income tax
withholding may apply.

o Plan A - This provides monthly annuity payments for the
lifetime of the Annuitant. No payments will be made after the
Annuitant dies.

o Plan B - This provides monthly annuity payments for the
lifetime of the Annuitant with a guarantee by us that payments
will be made for a period of at least 5, 10 or 15 years. You
must select the period.

o Plan C - This provides monthly annuity payments for the
lifetime of the Annuitant with a guarantee by us that payments
will be made for a certain number of months. We determine the<PAGE>
PAGE 18
number of months by dividing the Market Adjusted Value applied
under this plan by the amount of the monthly annuity payment.

o Plan D - We call this a Joint and Survivor life annuity.
Monthly payments will be paid for the lifetime of the
Annuitant and a joint annuitant. When either the Annuitant or
joint annuitant dies we will continue to make monthly payments
for the lifetime of the survivor. No payments will be paid
after the death of both the Annuitant and joint annuitant.

o Plan E - This provides monthly fixed dollar annuity payments
for a period of years. The period of years may be no less
than 10 nor more than 30.

The Contract provides for annuity payment plans on a fixed basis
only. The amount of each annuity payment will not change during
the annuity payment period. The amount of the annuity payment will
depend on:

- -- the Market Adjusted Value (less any applicable premium tax
not previously deducted) on the date;

- -- the annuity table we are then using for annuity settlements
(never less than the table guaranteed in the Contract);

- -- the Annuitant's age; and

- -- the annuity payment plan selected.

The tables for Plans A, B, C and D are based on the "1983
Individual Annuitant Mortality Table A" and an assumed rate of 4
percent per year. The table for Plan E is based on an interest
rate of 4 percent. IDS Life may, at our discretion, if mortality
appears more favorable and interest rates justify, apply other
tables that will result in higher monthly payments.

Restrictions for Some Tax Benefited Plans - If your annuity was
purchased under a Section 401(k) plan, custodial or trusteed plan,
Section 457 plan, Section 403(b) plan (TSA), or as an IRA, you must
select a payment plan that provides for payments:

o during the life of the Annuitant;

o during the joint lives of the Annuitant and beneficiary;

o for a period not exceeding the life expectancy of the Annuitant;
or

o for a period not exceeding the joint life expectancies of the
Annuitant and beneficiary.

Reference also must be made to the terms of the tax benefited plan
and applicable law for any limitations or restrictions on the
Settlement Date or annuity payment plan that may be selected.

<PAGE>
PAGE 19
Investments by IDS Life

Assets of IDS Life must be invested in accordance with requirements
established by applicable state laws regarding the nature and
quality of investments that may be made by life insurance companies
and the percentage of their assets that may be committed to any
particular type of investment. In general, these laws permit
investments, within specified limits and subject to certain
qualifications, in federal, state, and municipal obligations,
corporate bonds, preferred and common stocks, real estate
mortgages, real estate and certain other investments. All claims
by purchasers of the Contracts, and other general account products,
will be funded by the general account.

IDS Life intends to construct and manage the investment portfolio
using a strategy known as "immunization." Immunization seeks to
lock in a defined return on the pool of assets versus the pool of
liabilities over a specified time horizon. Since the return on the
assets versus the liabilities is locked in, it is "immune" to any
potential fluctuations in interest rates during the given time.
Immunization is achieved by constructing a portfolio of assets with
a price sensitivity to interest rate changes (i.e., price duration)
that is essentially equal to the price duration of the
corresponding portfolio of liabilities. Portfolio immunization
provides flexibility and efficiency to IDS Life in creating and
managing the asset portfolio, while still assuring safety and
soundness for funding liability obligations.

IDS Life's investment strategy will incorporate the use of a
variety of debt instruments having price durations tending to match
the applicable guaranteed interest periods. These instruments
include, but are not necessarily limited to, the following:

o Securities issued by the U.S. government or its agencies
or instrumentalities, which issues may or may not by
guaranteed by the U.S. government;

o Debt securities that have an investment grade, at the
time of purchase, within the four highest grades assigned
by the nationally recognized rating agencies;

o Debt instruments that are unrated, but which are deemed
by IDS Life to have an investment quality within the four
highest grades;

o Other debt instruments, which are rated below investment
grade, limited to 10 percent of assets at the time of
purchase; and

o Real estate mortgages, limited to 30 percent of portfolio
assets at the time of acquisition.

In addition, options and futures contracts on fixed income
securities will be used from time to time to achieve and maintain
appropriate investment and liquidity characteristics on the overall
asset portfolio.

<PAGE>
PAGE 20
While this information generally describes our investment strategy,
we are not obligated to follow any particular strategy except as
may be required by Federal law and Minnesota and other state
insurance laws.

Amendment of Contracts

We reserve the right to amend the Contracts to meet the
requirements of applicable federal or state laws or regulations.
We will notify you in writing of any such amendments.

Distribution of Contracts

IDS Life is the principal underwriter for the Contracts. IDS Life
is registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (1934 Act) as a broker-dealer and
is a member of the National Association of Securities Dealers,
Inc. IDS Life may enter into Distribution Agreements with certain
broker-dealers registered under the 1934 Act. IDS Life will pay a
maximum commission of 5 percent for the sale of a Contract. In the
future, we may pay a commission on an election of a subsequent
Guarantee Period by an Owner.

Assignment of Contracts

You may change ownership of your annuity at any time by filing a
change of ownership with us at our home office. No change of
ownership will be binding upon us until we receive and record it.
We take no responsibility for the validity of the change. If you
have a tax-benefited plan, the Contract may not be sold, assigned,
transferred, discounted or pledged as collateral for a loan or as
security for the performance of an obligation or for any other
purpose to any person other than IDS Life; provided, however, that
if the Owner is a trust or custodian, or an employer acting in a
similar capacity, ownership of a Contract may be transferred to the
Annuitant.

The value of any part of a non-tax benefited annuity contract
assigned or pledged is taxed like a cash withdrawal to the extent
allocable to investment in annuity contracts after Aug. 13, 1982.

Transfer of a non-tax benefited annuity Contract to another person
without adequate consideration is considered a gift and the
transfer will be considered a surrender of the Contract for federal
income tax purposes. The income in the Contract will be taxed to
the transferor who may be subject to the 10 percent IRS penalty tax
for early withdrawal. The transferee's investment in the annuity
will be the value of the annuity at the time of the transfer.
Consult with your tax adviser before taking any action.

Federal Tax Considerations

Under current law, there is no liability for federal income tax on
any increase in the annuity's value until payments are made (except
for change of ownership discussed above in "Assignment of
Contracts"). However, since federal tax consequences cannot always
<PAGE>
PAGE 21
be anticipated, you should consult a tax adviser if you have any
questions about the taxation of your annuity Contract.

You are not taxed on your investment in the Contract. Your
investment in the Contract generally includes purchase payments
made into the Contract with after-tax dollars. If the investment
in the Contract was made by you or on your behalf with pre-tax
dollars as part of a tax benefited retirement plan, such amounts
are not considered to be part of your investment in the Contract
and will be taxed when paid to you.

If you surrender part or all of your Contract before the date on
which you have decided to begin to receive annuity payments, you
will be taxed on the payments which you receive, to the extent that
the value of your Contract exceeds your investment in the Contract,
and you may have to pay an IRS penalty tax for early withdrawal.

If you begin receiving annuity payments under a non-tax benefited
annuity Contract, a portion of each payment will be subject to tax
and a portion of each payment will be considered to be part of your
investment in the Contract and will not be taxed. All amounts
received after your investment in the annuity is recovered will be
subject to tax. If you begin receiving payments from a tax
benefited annuity, for example an IRA, Section 403(b) plan, or
Section 457 plan, all of the payments generally will be subject to
taxation except to the extent that the contributions were made with
after-tax dollars.

Unlike life insurance proceeds, the death benefit under an annuity
contract is not tax exempt. The gain, if any, is taxable as
ordinary income to the beneficiary in the year(s) he or she
receives the payments.

Tax law requires that all non-qualified deferred annuity contracts
issued by the same company to the same contract owner during a
calendar year are to be treated as a single, unified contract. The
amount of income included and taxed in a distribution (or a
transaction deemed a distribution under tax law) taken from any one
of such contracts is determined by summing all such contracts.

The income earned on an annuity contract held by such entities as
corporations, partnerships or trusts generally will be treated as
ordinary income received during that year.

You may have to pay a 10 percent IRS penalty tax on any amount
includible in your ordinary income. This penalty will not apply to
any amount received:

o after you reach age 59-1/2;

o because of your death;

o because you become disabled (as defined in the Code);

o if the distribution is part of a series of substantially equal
periodic payments over your life or life expectancy (or joint
lives or life expectancies of you and your designated
beneficiary); or<PAGE>
PAGE 22
o if it is allocable to an investment before Aug. 14, 1982 (except
for Contracts in tax benefited plans).

These are the major exceptions to the 10 percent IRS penalty tax.
Additional exceptions may apply depending upon whether or not the
annuity is tax benefited.

For tax benefited Contracts, other penalties apply if you surrender
an annuity bought under your plan before the plan specifies that
payments can be made under the plan.

If you receive all or part of the Contract value from a tax
benefited annuity (except an IRA), mandatory 20 percent income tax
withholding generally will be imposed at the time the payment is
made. In addition, federal income tax and the 10 percent IRS
penalty tax for early withdrawals may apply to amounts properly
includible in income. This mandatory 20 percent income tax
withholding will not be imposed if:

o instead of receiving the payment, you elect to have the payment
rolled over directly to an IRA or another eligible plan;

o the payment is one of a series of substantially equal periodic
payments, made at least annually, over your life or life
expectancy (or joint lives or life expectancies of you and your
designated beneficiary) or made over a period of 10 years or
more; or

o the payment is a minimum distribution required under the Code.

These are the major exceptions to the mandatory 20 percent income
tax withholding. Payments made to a surviving spouse instead of
being directly rolled over to an IRA may be subject to 20 percent
income tax withholding. For taxable distributions that are not
subject to the mandatory 20 percent withholding, federal income tax
will be withheld from the taxable part of your distribution unless
you elect otherwise. State withholding also may be imposed on
taxable distributions.

You will receive a tax statement for any year that you receive a
taxable distribution from your annuity Contract.

Our discussion of federal tax laws is based upon our understanding
of these laws as they are currently interpreted. Either federal
tax laws or current interpretations of them may change. You are
urged to consult your tax adviser concerning your specific
circumstances.

The Company

Business

IDS Life is a stock insurance company organized in 1957 under the
laws of the State of Minnesota. IDS Life is a wholly owned
subsidiary of IDS Financial Corporation, which is a wholly owned <PAGE>
PAGE 23
subsidiary of American Express Company. IDS Life acts as a direct
writer of insurance policies and annuities and as the investment
manager of various investment companies. IDS Life is licensed to
write life insurance and annuity contracts in 49 states and the
District of Columbia. The headquarters of IDS Life is IDS Tower
10, Minneapolis, MN 55440-0010.

Selected Financial Data

The following selected financial data for IDS Life and its
subsidiaries should be read in conjunction with the consolidated
financial statements and notes included in the prospectus beginning
on page __.
<TABLE>
<CAPTION>
Years ended Dec. 31, (Thousands)
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C>

Premiums $ 127,245 $ 114,379 $ 102,338 $ 89,749 $ 135,700
Net investment income 1,783,219 1,616,821 1,422,866 1,204,934 1,030,232
Net gain (loss) on investments (6,737) (3,710) (5,837) 1,022 17,668
Other 304,344 240,959 198,344 165,742 136,809
Total revenues 2,208,071 1,968,449 1,717,711 1,461,447 1,320,409
Income before income taxes 412,726 315,821 259,467 227,742 214,639
Net income $ 270,079 $ 211,170 $ 182,037 $ 157,748 $ 144,019
Total assets $33,057,753 $27,295,773 $22,558,809 $18,088,351 $15,119,628
</TABLE>

Management's Discussion and Analysis of Consolidated Financial
Condition and Results of Operations

Results of Operations

1993 Compared to 1992: Consolidated income before income taxes
totaled $413 million in 1993, compared with $316 million in 1992.
In 1993, $104 million was from the life, disability income, health
and long-term care insurance segment, compared with $96 million in
1992. In 1993, $315 million was from the annuity segment, compared
with $223 million in 1992. The remaining $6.7 million loss in 1993
was a net loss on investments, compared with a net loss on
investments of $3.7 million in 1992.

Total premiums received increased to $5.3 billion in 1993, compared
with $4.4 billion in 1992. This increase is primarily due to
strong sales of variable annuities due to the low interest rate
environment. In addition, IDS Life reported small increases in its
fixed single premium deferred annuity line. Universal life-type
insurance and variable universal life insurance premiums received
also increased from the prior year.

Total revenues increased to $2.2 billion in 1993, compared with
$2.0 billion in 1992. Of this, net investment income was $1.8
billion in 1993, compared with $1.6 billion in 1992, reflecting an
increase in invested assets. Total invested assets grew 14 percent
to $21.9 billion at Dec. 31, 1993, from $19.2 billion at Dec. 31,
1992.

<PAGE>
PAGE 24
Policyholder and contractholder charges, which consist primarily of
cost of insurance charges on universal life-type policies,
increased 18 percent to $184 million in 1993, compared with $156
million in 1992. This increase reflects higher total life
insurance in force which grew 13 percent to $46.1 billion at
Dec. 31, 1993.

Management and other fees increased 41 percent to $120 million in
1993, compared with $85 million in 1992. This is primarily due to
an increase in assets held in segregated asset accounts, which grew
45 percent to $9.0 billion at Dec. 31, 1993, resulting from strong
sales of variable products. IDS Life provides investment
management services for the mutual funds used as investment options
for variable annuities and variable life insurance. IDS Life also
receives a mortality and expense risk fee from the segregated asset
accounts.

In 1993, IDS Life reported a net loss on investments of $6.7
million, compared with a net loss on investments of $3.7 million in
1992. During 1993, net realized losses from the sale of
investments amounted to $12.5 million. This was offset by a net
decrease in allowance for losses of $5.8 million, including an
increase of $9.3 million for mortgage investments and real estate,
offset by a decrease of $15.1 million for below investment grade
bonds (those rated below BBB).

Total benefits and expenses increased to $1.8 billion in 1993,
compared with $1.7 billion in 1992. The largest component of
expenses, interest credited to policyholder accounts for universal
life-type insurance and investment contracts aggregated $1.2
billion and was essentially unchanged from the prior year. This
reflected interest credited to higher accumulation values offset by
lower interest credited rates.

Amortization of deferred policy acquisition costs increased to $212
million in 1993, compared with $140 million in 1992, reflecting
prior years' growth of life insurance and annuity business and a
cumulative adjustment driven by the long-term decrease in accrual
rates on fixed annuities.

In May 1993, the Financial Accounting Standards Board issued SFAS
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," which IDS Life will implement, effective Jan. 1, 1994.
Under the new rules, debt securities that IDS Life has both the
positive intent and ability to hold to maturity will be carried at
amortized cost. Debt securities that IDS Life does not have the
positive intent and ability to hold to maturity and all marketable
equity securities will be classified as available-for-sale and
carried at fair value. Unrealized gains and losses on securities <PAGE>
PAGE 25
classified as available-for-sale will be carried as a separate
component of stockholder's equity. The effect of the new rules
will be to increase stockholder's equity by approximately $181
million, net of taxes, as of Jan. 1, 1994, but the new rules will
have no material impact on IDS Life's results of operations.

SFAS No. 114, "Accounting by Creditors for Impairment of a Loan,"
and FASB Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts," are expected to have no material impact on IDS
Life's results of operations or financial condition.

1992 Compared to 1991: Consolidated income before income taxes
totaled $316 million in 1992, compared with $259 million in 1991.
In 1992, $96 million was from the life, disability income, health
and long-term care insurance segment, compared with $90 million in
1991. In 1992, $223 million was from the annuity segment, compared
with $175 million in 1991. The remaining $3.7 million loss in 1992
was a net loss on investments, compared with a net loss on
investments of $5.8 million in 1991.

Total premiums received increased to $4.4 billion in 1992, compared
with $3.3 billion in 1991. This increase is primarily due to
strong sales of annuities with equity investment options as
investors were attracted to the stock market due to the low
interest rate environment. In addition, IDS Life reported
increases in its fixed single premium deferred annuity line.

Universal life-type insurance and variable universal life
insurance premiums increased from the prior year. Traditional
life insurance premiums were essentially unchanged from the prior
year, while long-term care sales increased.

Total revenues increased to $2.0 billion in 1992, compared with
$1.7 billion in 1991. Of this, net investment income was $1.6
billion in 1992, compared with $1.4 billion in 1991, reflecting an
increase in invested assets, partially offset by lower yields.
Total invested assets grew 20 percent to $19.2 billion at Dec. 31,
1992, from $16.0 billion at Dec. 31, 1991.

Policyholder and contractholder charges, which consist primarily
of cost of insurance charges on universal life-type policies,
increased to $156 million in 1992, compared with $137 million in
1991. This increase reflects higher total life insurance in force
which grew 12 percent to $40.9 billion at Dec. 31, 1992.

Management and other fees increased to $85 million in 1992,
compared with $61 million in 1991. This is primarily due to an
increase in assets held in segregated asset accounts, which grew 33
percent to $6.2 billion at Dec. 31, 1992, resulting from strong
sales of variable products and market appreciation. IDS Life
provides investment management services for the mutual funds used
as investment options for variable annuities and variable life
insurance. IDS Life also receives a mortality and expense risk fee
from the segregated asset accounts.

<PAGE>
PAGE 26
In 1992, IDS Life reported a net loss on investments of $3.7
million, compared with a net loss on investments of $5.8 million
in 1991. During 1992, net realized gains from the sale of
investments amounted to $1.2 million. This was offset by a net
increase in allowance for losses of $4.9 million, including an
increase of $12.5 million for mortgage investments and real estate,
offset by a decrease of $7.6 million for below investment grade
bonds (those rated below BBB).

During 1991, net realized gains from the sale of investments of
$16.0 million were offset by an increase in allowance for losses
of $21.8 million, resulting in a net loss of $5.8 million.

Total benefits and expenses increased to $1.7 billion in 1992,
compared with $1.5 billion in 1991. The largest component of
expenses, interest credited to policyholder accounts for universal
life-type insurance and investment contracts, increased to $1.2
billion in 1992, compared with $1.1 billion in 1991. This reflects
an increase in liabilities for future policy benefits for universal
life-type insurance, which grew 8.8 percent to $2.6 billion at Dec.
31, 1992, and an increase in liabilities for future policy benefits
for fixed annuities, which grew 20 percent to $16 billion at Dec.
31, 1992.

Amortization of deferred policy acquisition costs increased to $140
million in 1992, compared with $116 million in 1991, reflecting
prior years' growth of life insurance and annuity business.

Other insurance and operating expenses, which include non-
capitalized commissions and indirect selling expenses, direct and
indirect operating expenses, premium taxes and guaranty association
expenses increased to $216 million in 1992, compared with $154
million in 1991. The increase is primarily due to an increased
provision for assessments by state guaranty associations. The
assessments are used to fund claims of policyholders of insolvent
insurance companies.

Liquidity and Capital Resources

The liquidity requirements of IDS Life are met by funds provided
from operations and investment activity. The components of the
funds provided are premiums, investment income, proceeds from sales
of investments as well as maturities and periodic repayments of
investment principal.

The primary uses of funds are policy benefits, commissions and
operating expenses, policy loans and new investment purchases.

IDS Life has available lines of credit with two banks aggregating
$75 million, which are used strictly as short-term
sources of funds. Borrowings outstanding under the agreements were
$1.5 million at Dec. 31, 1993. IDS Life also uses reverse
repurchase agreements for short-term liquidity needs. Reverse
repurchase agreements aggregated $30 million at Dec. 31, 1993.

<PAGE>
PAGE 27
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of IDS Life's total invested assets. Of the fixed maturity
portfolio, approximately 51 percent is invested in GNMA, FNMA and
FHLMC mortgage-backed securities which are considered AAA/Aaa
quality.

At Dec. 31, 1993, approximately 8.8 percent of IDS Life's
investments in fixed maturities were below investment grade bonds.
These investments may be subject to a higher degree of risk than
the more "traditional" issues because of the borrower's generally
greater sensitivity to adverse economic conditions, such as
recession or increasing interest rates, and in certain instances,
the lack of an active secondary market. Expected returns on below
investment grade bonds reflect consideration of such factors. IDS
Life has established an allowance for losses for below investment
grade bonds totaling $23 million at Dec. 31, 1993. Management
believes that the allowance for losses is adequate, however, future
economic factors could impact the ratings of securities owned and
additional reserves for losses may be required.

At Dec. 31, 1993, net unrealized appreciation on fixed maturities
included $1.1 billion of gross unrealized appreciation and $82
million of gross unrealized depreciation.

At Dec. 31, 1993, IDS Life had an allowance for losses for mortgage
loans totaling $35 million and for real estate totaling $11
million.

The economy and other factors have caused an increase in the number
of insurance companies that are under regulatory supervision. This
circumstance has resulted in an increase in assessments by state
guaranty associations to cover losses to policyholders of insolvent
or rehabilitated companies. Some assessments can be partially
recovered through a reduction in future premium taxes in certain
states. IDS Life established an asset for guaranty association
assessments from those states allowing a reduction in future
premium taxes over a reasonable period of time. The asset will be
amortized as future premium taxes are reduced. IDS Life has also
estimated the potential effect of future assessments on IDS Life's
financial position and results of operations and has established a
reserve for such potential assessments.

In the first quarter of 1994, IDS Life paid a $40 million dividend
to its parent. In 1993, dividends paid to its parent were $25
million.

Segment Information

IDS Life's operations consist of two business segments:
Individual and group life, disability income, long-term care and
health insurance; and fixed and variable annuity products designed
for individuals, pension plans, small businesses and
employer-sponsored groups. IDS Life is not dependent upon any
single customer and no single customer accounted for more than 10
percent of revenue in 1993, 1992 or 1991. (See Note 8, Segment
information, in the "Notes to Consolidated Financial Statements".)

<PAGE>
PAGE 28
Reinsurance

Reinsurance arrangements are used to reduce exposure to large
losses. The maximum amount of risk retained by IDS Life on any one
life is $750,000 of life and waiver of premium benefits plus
$50,000 of accidental death benefits. The excesses are reinsured
with other life insurance companies. At Dec. 31, 1993, traditional
life and universal life-type insurance in force aggregated $46.1
billion, of which $3.0 billion was reinsured.

IDS Life has a reinsurance agreement with an affiliated company,
whereby IDS Life assumed 100 percent of a block of single premium
life insurance business. Reserves related to this agreement were
$760 million at Dec. 31, 1993. IDS Life also has a reinsurance
agreement to cede 50 percent of its long-term care insurance
business to an affiliated company. Reserves and reinsurance
receivables related to this agreement both amounted to $44.1
million at Dec. 31, 1993.

Reserves

In accordance with the insurance laws and regulations under which
IDS Life operates, it is obligated to carry on its books, as
liabilities, actuarially determined reserves to meet its
obligations on its outstanding life and health insurance policies
and annuity contracts. Reserves for policies and contracts are
based on mortality and morbidity tables in general use in the
United States. These reserves are computed amounts that, with
additions from premiums to be received, and with interest on such
reserves compounded annually at assumed rates, will be sufficient
to meet IDS Life's policy obligations at their maturities or in the
event of an insured's death. In the accompanying financial
statements these reserves are determined in accordance with
generally accepted accounting principles. (See Note 1, Liabilities
for future policy benefits, in the "Notes to Consolidated Financial
Statements.")

Investments

Of IDS Life's consolidated total investments of $21.9 billion at
Dec. 31, 1993, 46 percent was invested in mortgage-backed
securities, 43 percent in corporate and other bonds, 9.4 percent
in primary mortgage loans on real estate, 1.6 percent in policy
loans and the remaining 0.5 percent in other investments.

Competition

IDS Life is engaged in a business that is highly competitive due to
the large number of stock and mutual life insurance companies and
other entities marketing insurance products. There are over 2,600
stock, mutual and other types of insurers in the life insurance
business. In Fortune magazine's May 1993 listing of the 50 largest
life insurance companies as ranked by assets, IDS Life ranked
fourteenth. Best's Insurance Reports, Life-Health edition, 1993,
assigned IDS Life one of its highest classifications, A+
(Superior).

<PAGE>
PAGE 29
Employees

As of Dec. 31, 1993, IDS Life and its subsidiaries had 764
employees; including 711 employed at the home office in
Minneapolis, MN, and 53 employed at IDS Life Insurance Company of
New York located in Albany, NY.

Properties

IDS Life occupies office space in Minneapolis, MN, which is rented
by its parent, IDS Financial Corporation. IDS Life reimburses IDS
Financial Corporation for rent based on direct and indirect
allocation methods. Facilities occupied by IDS Life and its
subsidiaries are believed to be adequate for the purposes for which
they are used and are well maintained.

State Regulation

IDS Life is subject to the laws of the State of Minnesota governing
insurance companies and to the regulations of the Minnesota
Department of Commerce. An annual statement in the prescribed form
is filed with the Minnesota Department of Commerce each year
covering IDS Life's operation for the preceding year and its
financial condition at the end of such year. Regulation by the
Minnesota Department of Commerce includes periodic examination to
determine IDS Life's contract liabilities and reserves so that the
Minnesota Department of Commerce may certify that these items are
correct. IDS Life's books and accounts are subject to review by
the Minnesota Department of Commerce at all times. Such regulation
does not, however, involve any supervision of the account's
management or IDS Life's investment practices or policies. In
addition, IDS Life is subject to regulation under the insurance
laws of other jurisdictions in which it operates. A full
examination of IDS Life's operations is conducted periodically by
the National Association of Insurance Commissioners.

Under insurance guaranty fund laws, in most states, insurers doing
business therein can be assessed up to prescribed limits for
policyholder losses incurred by insolvent companies. Most of these
laws do provide, however, that an assessment may be excused or
deferred if it would threaten an insurer's own financial strength.

Directors and Executive Officers*

The members of the Board of Directors and the principal executive
officers of IDS Life, together with the principal occupation of
each during the last five years, are as follows:

Directors

Louis C. Fornetti, 44
Director since March 1994; Senior Vice President and Director, IDS,
since February 1985.

<PAGE>
PAGE 30
David R. Hubers, 51
Director since September 1989; President and Chief Executive
Officer, IDS, since August 1993, and Director, IDS, since January
1984. Senior Vice President, Finance and Chief Financial Officer,
IDS, from January 1984 to August 1993.

Richard W. Kling, 53
Director since February 1984; President since March 1994.
Executive Vice President, Marketing and Products from January 1988
to March 1994. Vice President, IDS, since January 1988. Director
of IDS Life Series Fund, Inc. and Manager of IDS Life Variable
Annuity Funds A & B.

Paul F. Kolkman, 47
Director since May 1984; Executive Vice President since March 1994;
Vice President, Finance from May 1984 to March 1994; Vice
President, IDS, since January 1987.

Peter A. Lefferts, 52
Director and Executive Vice President, Marketing since March 1994;
Senior Vice President and Director, IDS, since February 1986.

Janis E. Miller, 42
Director and Executive Vice President, Variable Assets since March
1994; Vice President, IDS, since June 1990. Director, Mutual Funds
Product Development and Marketing, IDS, from May 1987 to May 1990.
Director of IDS Life Series Fund, Inc. and Manager of IDS Life
Variable Annuity Funds A & B.

James A. Mitchell, 52
Chairman of the Board since March 1994; Director since July 1984;
Chief Executive Officer since November 1986; President from July
1984 to March 1994; Executive Vice President, IDS, since March
1994; Director, IDS, since July 1984. Senior Vice President, IDS,
from July 1984 to March 1994.

Barry J. Murphy, 43
Director and Executive Vice President, Client Service since March
1994; Senior Vice President, Operations, Travel Related Services
(TRS), a subsidiary of American Express Company, since July 1992;
Vice President, TRS, from November 1989 to July 1992; Chief
Operating Officer, TRS, from March 1988 to November 1989.

Stuart A. Sedlacek, 36
Director and Executive Vice President, Assured Assets since March
1994; Vice President, IDS, since September 1988.

Melinda S. Urion, 40
Director and Controller since September 1991; Executive Vice
President since March 1994; Vice President and Treasurer from
September 1991 to March 1994; Vice President, IDS, since September
1991; Chief Accounting Officer, IDS, from July 1988 to September
1991.

<PAGE>
PAGE 31
Officers Other Than Directors

Morris Goodwin Jr., 42
Vice President and Treasurer since March 1994; Vice President and
Corporate Treasurer, IDS, since July 1989; Chief Financial Officer
and Treasurer, IDS Bank & Trust, from January 1988 to July 1989.

William A. Stoltzmann, 45
Vice President, General Counsel and Secretary since 1985.

*The address for all of the directors and principal officers is:
IDS Tower 10, Minneapolis, MN 55440-0010.

Executive Compensation

Executive officers of IDS Life also may serve one or more
affiliated companies. The following table reflects cash
compensation paid to the five most highly compensated executive
officers as a group for services rendered in 1993 to IDS Life and
its affiliates. The table also shows the total cash compensation
paid to all executive officers of IDS Life, as a group, who were
executive officers at any time during 1993.

Name of individual Cash
or number in group Position held compensation
Five most highly compensated
executive officers as a group: $ 1,929,713

James A. Mitchell President

Richard W. Kling Exec. Vice President,
Marketing and Products

ReBecca K. Roloff Exec. Vice President,
Operations

Alan R. Dakay Vice President,
Institutional Insurance Marketing

Paul F. Kolkman Vice President,
Finance

All executive officers
as a group (12) $ 2,811,894

Security Ownership of Management

IDS Life's directors and officers do not beneficially own any
outstanding shares of stock of IDS Life. All of the outstanding
shares of stock of IDS Life are beneficially owned by its parent,
IDS Financial Corporation. The percentage of shares of IDS
Financial Corporation owned by any director, and by all directors
and officers of IDS Life as a group, does not exceed one percent of
the class outstanding.

<PAGE>
PAGE 32
Legal Proceedings and Opinion

Legal matters in connection with federal laws and regulations
affecting the issue and sale of the Contracts described in this
prospectus and the organization of IDS Life, its authority to issue
Contracts under Minnesota law and the validity of the forms of the
Contracts under Minnesota law have been passed on by the General
Counsel of IDS Life.

Experts

The consolidated financial statements of IDS Life Insurance Company
at Dec. 31, 1993, and 1992, and for each of the three years in the
period ended Dec. 31, 1993, appearing in this Prospectus and
Registration Statement have been audited by Ernst & Young,
independent auditors, as set forth in their reports thereon
appearing elsewhere herein and in the Registration Statement, and
are included in reliance upon such reports given upon the authority
of such firm as experts in accounting and auditing.

Appendix A

Partial Surrender Illustration

Involving a Surrender Charge and a Market Value Adjustment

Annuity Assumptions:
Single Payment $10,000
Guarantee Period 10 Years
Guarantee Rate (ig) 4.5 percent effective
annual yield

End of Contract year
Contract Surrender Accumulation Values
year Charge % if no surrenders
1 8% $10,450.00
2 7 $10,920.25
3 6 $11,411.66
4 5 $11,925.19
5 4 $12,461.82
6 3 $13,022.60
7 2 $13,608.62
8 1 $14,221.01
9 0 $14,860.95
10 0 $15,529.69

Partial Surrender Assumptions:

On the first day of your 4th Contract year you request a partial
surrender of:

Example I - $2,000 of your Accumulation Value
Example II - A $2,000 net surrender check

You may surrender 10 percent of $11,411.66 (end of 3rd Contract
year Accumulation Value) without surrender charge but subject to a
Market Value Adjustment -- this is $1,141.17
<PAGE>
PAGE 33
The excess Market Adjusted Value surrendered is subject to both a 5
percent (4th Contract year) surrender charge and a Market Value
Adjustment.

The current rate (ic) for applicable new sales and renewals = 4
percent

The number of full years left in your Guarantee Period (N) = 7

The number of fractional years left in your Guarantee Period (t) =
0

Example I - $2,000 of Accumulation Value Surrendered

What Will Be Your Market Value Adjustment Amount?

The Market Adjusted Value of your $2,000 partial surrender will be:

Renewal Value of Accumulation Value Surrendered
(1 + ic + .0025)(N+t)

= $2,000 (1 + ig)7
(1 + ic + .0025)7

= $2,000 (1.045)7
(1.0425)7

= $2,033.82

The Market Value Adjustment = the Market Adjusted Value surrendered
less the Accumulation Value surrendered

$2,033.82 - $2,000 = $33.82

(NOTE: This Market Value Adjustment is Positive. In Other Cases
The Market Value Adjustment May Be Negative.)

What Will Be Your Surrender Charge Amount?

The surrender charge will be 5 percent multiplied by the excess of
the Market Adjusted Value over the Accumulation Value that may be
surrendered without surrender charge:

($2,033.82 - $1,141.17) x .05 = $44.63

What Net Amount Will You Receive?

Your Contract's Accumulation Value will decrease by $2,000 and we
will send you a check for:

Accumulation Value surrendered $2,000.00
Plus Market Value Adjustment 33.82
Less surrender charge (44.63)
Net surrender amount $1,989.19

<PAGE>
PAGE 34
Example II - $2,000 Net Surrender Check Requested

What Will Be The Accumulation Value Surrendered?

Tell us if you want a specific net surrender check amount. We will
work backwards using an involved formula to determine how much
Accumulation Value must be surrendered to result in a net check to
you for a specific amount. For a $2,000 net check to you, the
formula results in $2,011.20 of Accumulation Value to be
surrendered.

What Will Be Your Market Value Adjustment Amount?

The Market Adjusted Value is:

Renewal Value of Accumulation Value Surrendered
(1 + ic + .0025)(N+t)

= $2,011.20 (1 + ig)7
(1 + ic + .0025)7

= $2,011.20 (1.045)7
(1.0425)7

= $2,045.21

The Market Value Adjustment = the Market Adjusted Value surrendered
less the Accumulation Value surrendered

$2,045.21 - $2,011.20 = $34.00

(NOTE: This Market Value Adjustment is Positive. In Other Cases
The Market Value Adjustment May Be Negative.)

What Will Be Your Surrender Charge Amount?

The surrender charge will be 5 percent multiplied by the excess of
the Market Adjusted Value over the Accumulation Value that may be
surrendered without surrender charge:

($2,045.21 - $1,141.17) x .05 = $45.20

What Net Amount Will You Receive?

Your Contract's Accumulation Value will decrease by $2,011.20 and
we will send you a check for:

Accumulation Value surrendered $2,011.20
Plus Market Value Adjustment 34.00
Less surrender charge (45.20)
Net surrender amount $2,000.00

<PAGE>
PAGE 35
Appendix B

Market Value Adjustment Illustration

Annuity Assumptions:
Single Payment $50,000
Guarantee Period 10 Years
Guarantee Rate 4.5 percent effective annual yield

Market Adjustment Assumptions: These examples show how the Market
Value Adjustment may affect your Contract values. The surrenders
in these examples occur one year after the Contract date. There
are no previous surrenders.

The Accumulation Value at the end of one year is $52,250. If there
aren't any surrenders, the Renewal Value at the end of the 10 year
Guarantee Period will be $77,648.47.

The Market Value Adjustment is based on the rate we are crediting
(at the time of your surrender) on new Contracts with the same
length Guarantee Period as the time remaining in your Guarantee
Period. After one year, you have 9 years left of your 10 year
Guarantee Period.

Example I shows a downward Market Value Adjustment. Example II
shows an upward Market Value Adjustment. These examples do not
show the surrender charge (if any) which would be calculated
separately after the Market Value Adjustment. Surrender charge
calculations are shown in Appendix A.

Market Adjusted Value Formula:

Market Adjusted = (Renewal Value)
Value (1 + ic + .0025)(N+t)

Renewal Value -- The Accumulation Value at the end of the
current Guarantee Period

ic -- The Current Interest Rate offered for new
Contract sales and renewals for the number of
years remaining in the Guarantee Period

N -- The number of complete Contract years to the
end of the current Guarantee Period

t -- The fraction of the Contract year remaining to
the end of the Contract year

Example I - Downward Market Value Adjustment

A surrender results in a downward Market Value Adjustment when
interest rates have increased. Assume after 1 year, we are now
crediting 5 percent for a new Contract with a 9 year Guarantee
Period. If you fully surrender, the Market Adjusted Value would
be:<PAGE>
PAGE 36
Renewal Value
(1 + ic + .0025)(N+t)

= $77,648.47
(1 + .05 + .0025)9

= $48,993

The Market Value Adjustment is a $3,257 reduction of the
Accumulation Value:

($3,257) = $48,993 - $52,250

If you surrendered half of your Contract instead of all, the Market
Adjusted Value of the surrendered portion would be one-half that of
the full surrender:

$38,824.24
$24,496.50 = (1 + .05 + .0025)9

Example II - Upward Market Value Adjustment

A surrender results in an upward Market Value Adjustment when
interest rates have decreased. Assume after 1 year, we are now
crediting 4 percent for a new Contract with a 9 year guarantee
period. If you fully surrender, the Market Adjusted Value would
be:

Renewal Value
(1 + ic + .0025)(N+t)

= $77,648.47
(1 + .04 + .0025)9

= $53,388.58

The Market Value Adjustment is a $1,138.58 increase of the
Accumulation Value:

$1,138.58 = $53,388.50 - $52,250

If you surrendered half of your Contract instead of all, the Market
Adjusted Value of the surrendered portion would be one-half that of
the full surrender:

$38,824.24
$26,694.29 = (1 + .04 + .0025)9
<PAGE>
PAGE 37

Page intentionally left blank.

<PAGE>
PAGE 38
IDS Life Financial Information

The Financial statements shown below are those of the insurance
company and not those of . They are included in the prospectus for
the purpose of informing investors as to the financial condition of
the insurance company and its ability to
carry out its obligations under the annuity contracts.

IDS Life Insurance Company
<TABLE>
<CAPTION>
Consolidated Balance Sheets Dec. 31, 1993 Dec. 31,1992

Assets (Thousands)
______________________________________________________________________________________________________________________________
<S> <C> <C>
Investments:
Fixed maturities (Fair value: 1993, $20,425,979; 1992, $17,896,374) $19,392,424 $17,185,879
Mortgage loans on real estate (Fair value: 1993, $2,125,686; 1992, $1,785,970) 2,055,450 1,688,490
Policy loans 350,501 320,016
Other investments 56,307 51,955
______________________________________________________________________________________________________________________________
Total investments 21,854,682 19,246,340
______________________________________________________________________________________________________________________________
Cash and cash equivalents 146,281 73,563
Receivables:
Reinsurance 55,298 -
Amounts due from brokers 5,719 20,202
Other accounts receivable 21,459 20,095
Premiums due 1,329 1,361
______________________________________________________________________________________________________________________________
Total receivables 83,805 41,658
______________________________________________________________________________________________________________________________
Accrued investment income 307,177 285,120
Deferred policy acquisition costs 1,652,384 1,440,875
Other assets 21,730 18,672
Assets held in segregated asset accounts, primarily common stocks at market 8,991,694 6,189,545
______________________________________________________________________________________________________________________________
Total assets $33,057,753 $27,295,773
______________________________________________________________________________________________________________________________
Liabilities and Stockholder's Equity
______________________________________________________________________________________________________________________________
Liabilities:
Fixed annuities - future policy benefits $18,492,135 $16,342,419
Universal life-type insurance - future policy benefits 2,753,455 2,567,687
Traditional life-type insurance - future policy benefits 210,205 210,886
Disability income, health and long-term care insurance - future policy benefits 185,272 104,896
Policy claims and other policyholders' funds 44,516 49,899
Deferred federal income taxes 43,620 87,913
Amounts due to brokers 351,486 258,654
Other liabilities 292,024 235,509
Liabilities related to segregated asset accounts 8,991,694 6,189,545
______________________________________________________________________________________________________________________________
Total liabilities 31,364,407 26,047,408
______________________________________________________________________________________________________________________________
Stockholder's equity:
Capital stock, $30 per value per share; 100,000 shares authorized, issued and outstanding 3,000 3,000
Additional paid-in capital 222,000 22,000
Net unrealized appreciation on equity securities 114 214
Retained earnings 1,468,232 1,223,151
______________________________________________________________________________________________________________________________
Total stockholder's equity 1,693,346 1,248,365
______________________________________________________________________________________________________________________________
Total liabilities and stockholder's equity $33,057,753 $27,295,773
Commitments and contingencies (Note 6)
______________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 39
<TABLE>
<CAPTION>
Consolidated Statement of Income Years ended Dec. 31,
1993 1992 1991
(Thousands)
__________________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Revenues:
Premiums:
Traditional life insurance $ 48,137 $ 49,719 $ 49,706
Disability income and long-term care insurance 79,108 64,660 52,632
__________________________________________________________________________________________________________________________________
127,245 114,379 102,338
Policyholder and contractholder charges 184,205 156,368 137,202
Management and other fees 120,139 84,591 61,142
Net investment income 1,783,219 1,616,821 1,422,866
Net loss on investments (6,737) (3,710) (5,837)
__________________________________________________________________________________________________________________________________
Total revenues 2,208,071 1,968,449 1,717,711
__________________________________________________________________________________________________________________________________
Benefits and expenses:
Death and other benefits - traditional life insurance 32,136 34,139 30,170
Death and other benefits - universal life-type insurance
and investment contracts 49,692 42,174 38,529
Death and other benefits - disability income, health and
long-term care insurance 13,148 10,701 8,242
Increase (decrease) in liabilities for future policy benefits -
traditional life insurance (4,513) (5,788) (6,425)
Increase (decrease) in liabilities for future policy benefits -
disability income, health and long-term care insurance 32,528 27,172 19,700
Interest credited on universal life-type insurance and investment contracts 1,218,647 1,188,379 1,098,281
Amortization of deferred policy acquisition costs 211,733 140,159 116,078
Other insurance and operating expenses 241,974 215,692 153,669
__________________________________________________________________________________________________________________________________
Total benefits and expenses 1,795,345 1,652,628 1,458,244
__________________________________________________________________________________________________________________________________
Income before income taxes 412,726 315,821 259,467
Income taxes 142,647 104,651 77,430
__________________________________________________________________________________________________________________________________
Net income $ 270,079 $ 211,170 $ 182,037
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 40
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows Years ended Dec. 31,
1993 1992 1991
(Thousands)
__________________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 270,079 $ 211,170 $ 182,037
Adjustments to reconcile net income to net cash provided by operating activities:
Issuance - policy loans, excluding universal life-type insurance (35,886) (32,881) (29,309)
Repayment - policy loans, excluding universal life-type insurance 29,557 26,750 19,928
Change in reinsurance receivable (55,298) - -
Change in other accounts receivable (1,364) (4,772) (1,558)
Change in accrued investment income (22,057) (15,853) (26,022)
Change in deferred policy acquisition costs, net (211,509) (229,252) (175,442)
Change in liabilities for future policy benefits for traditional life, disability
income, health and long-term care insurance 79,695 21,384 13,275
Change in policy claims and other policyholders' funds (5,383) (1,347) 11,801
Change in deferred federal income taxes (44,237) (30,385) (29,207)
Change in other liabilities 56,515 88,997 45,323
Amortization of premium (accretion of discount), net (27,438) (4,289) 19,726
Net loss on investments 6,737 3,710 5,837
Premiums related to universal life-type insurance 397,883 312,621 264,504
Surrenders and death benefits related to universal life-type insurance (255,133) (166,162) (109,307)
Interest credited to account balances related to universal life-type insurance 156,885 161,873 160,585
Policyholder and contractholder charges, non-cash (115,140) (100,975) (96,211)
Other, net (1,907) (10,647) 2,258
__________________________________________________________________________________________________________________________________
Net cash provided by operating activities $ 221,999 $ 229,942 $ 258,218
__________________________________________________________________________________________________________________________________
Cash flows from investing activities:
Acquisition of investments, excluding policy loans $(7,102,546) $(7,001,348) $(5,518,481)
Maturities, sinking fund payments and calls of investments, excluding policy loans 3,931,819 2,700,479 838,589
Sale of investments, excluding policy loans 613,571 1,073,950 2,274,401
Change in amounts due from brokers 14,483 289,335 (134,312)
Change in amounts due to brokers 92,832 42,182 72,382
__________________________________________________________________________________________________________________________________
Net cash used in investing activities (2,449,841) (2,895,402) (2,467,421)
__________________________________________________________________________________________________________________________________
Cash flows from financing activities:
Considerations received related to investment contracts 2,843,668 2,821,069 2,316,333
Surrenders and death benefits related to investment contracts (1,765,869) (1,168,633) (871,808)
Interest credited to account balances related to investment contracts 1,071,917 1,026,506 937,696
Issuance - universal life-type insurance policy loans (70,304) (72,007) (76,010)
Repayment - universal life-type insurance policy loans 46,148 40,351 31,860
Capital contribution from parent 200,000 - -
Cash dividend to parent (25,000) (20,000) (20,000)
__________________________________________________________________________________________________________________________________
Net cash provided by financing activities 2,300,560 2,627,286 2,318,071
__________________________________________________________________________________________________________________________________
Net increase (decrease) in cash and cash equivalents 72,718 (38,174) 108,868
Cash and cash equivalents at beginning of year 73,563 111,737 2,869
__________________________________________________________________________________________________________________________________
Cash and cash equivalents at end of year $ 146,281 $ 73,563 $ 111,737
__________________________________________________________________________________________________________________________________
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
PAGE 41

Notes to Consolidated Financial Statements ($ Thousands)
Dec. 31, 1993, 1992, 1991

1. Summary of significant accounting policies

Nature of business
IDS Life Insurance Company (the Company) is engaged in the
insurance and annuity business. The Company sells various forms of
fixed and variable individual life insurance, group life insurance,
individual and group disability income insurance, long-term care
insurance, and single and installment premium fixed and variable
annuities.

Basis of presentation
The Company is a wholly owned subsidiary of IDS Financial
Corporation (IDS), which is a wholly owned subsidiary of American
Express Company. The accompanying consolidated financial
statements include the accounts of the Company and its wholly owned
subsidiaries, IDS Life Insurance Company of New York and American
Enterprise Life Insurance Company. All material intercompany
accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements have been
prepared in conformity with generally accepted accounting
principles which vary in certain respects from reporting practices
prescribed or permitted by state insurance regulatory authorities.
Also, the consolidated financial statements are presented on a
historical cost basis without adjustment of the net assets
attributable to the 1984 acquisition of IDS by American Express
Company.

Investments
Investments in fixed maturities are carried at cost, adjusted where
appropriate for amortization of premiums and accretion of
discounts. Mortgage loans on real estate are carried principally
at the unpaid principal balances of the related loans. Policy
loans are carried at the aggregate of the unpaid loan balances
which do not exceed the cash surrender values of the related
policies. Other investments include interest rate caps, real
estate and equity securities. When evidence indicates a decline,
which is other than temporary, in the underlying value or earning
power of individual investments, such investments are written down
to the estimated realizable value by a charge to income. Equity
securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a credit or
charge to stockholder's equity.

The Company has the ability and the intent to recover the costs of
these investments by holding them for the forseeable future. The
ability to hold investments to scheduled maturity dates is
dependent on, among other things, annuity contract owners
maintaining their annuity contracts in force.

The Company will implement, effective January 1, 1994, Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." Under the new rules,
debt securities that the Company has both the positive intent and
ability to hold to maturity will be carried at amortized cost.
Debt securities that the Company does not have the positive intent <PAGE>
PAGE 42
1. Summary of significant accounting policies (continued)

and ability to hold to maturity and all marketable equity
securities will be classified as available-for-sale and carried at
fair value. Unrealized gains and losses on securites classified as
available-for-sale will be carried as a separate component of
stockholder's equity. The effect of the new rules will be to
increase stockholder's equity by approximately $181 million, net of
taxes, as of January 1, 1994, but the new rules will have no
material impact on the Company's results of operations.

Realized investment gain or loss is determined on an identified
cost basis.

Interest rate cap contracts are purchased to reduce the Company's
exposure to rising interest rates which would increase the cost of
future policy benefits for interest sensitive products. Costs
are amortized over the lives of the agreements and benefits are
recognized when realized.

Prepayments are anticipated on certain investments in
mortgage-backed securities in determining the constant effective
yield used to recognize interest income. Prepayment estimates
are based on information received from brokers who deal in
mortgage-backed securities.

Statement of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents.
These securities are carried principally at amortized cost which
approximates fair value.

Supplementary information to the consolidated statement of cash
flows for the years ended Dec. 31 is summarized as follows:

1993 1992 1991
___________________________________________________________________
Cash paid during the year for:
Income taxes $188,204 $140,445 $111,809
Interest on borrowings 2,661 1,265 108
___________________________________________________________________

Recognition of profits on annuity contracts and insurance policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner. No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities).
Single premium deferred annuities issued prior to 1980 had a sales
fee and no surrender charge. All of the Company's single premium
deferred annuity contracts provide for crediting the contract
owners' accumulations at specified rates of interest. Such rates
are revised by the Company from time to time based on changes in
the market investment yield rates for fixed-income securities.

<PAGE>
PAGE 43
1. Summary of significant accounting policies (continued)

Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income earned
from investment of contract considerations over interest credited
to contract owners and other expenses.

The retrospective deposit method is used in accounting for
universal life-type insurance. This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.

Premiums on traditional life, disability income, health and
long-term care insurance policies are recognized as revenue when
collected or due, and related benefits and expenses are associated
with premium revenue in a manner that results in recognition of
profits over the lives of the insurance policies. This association
is accomplished by means of the provision for future policy
benefits and the deferral and subsequent amortization of policy
acquisition costs.

Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts.
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners. The costs for universal
life-type insurance are amortized over the lives of the policies as
a percentage of the estimated gross profits expected to be
realized on the policies. For traditional life, disability income,
health and long-term care insurance policies, the costs are
amortized over an appropriate period in proportion to premium
revenue.

Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.

Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.

Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981), policy persistency derived from Company experience data
(first year rates ranging from approximately 70 percent to 90
percent and increasing rates thereafter), and estimated future
investment yields of 4 percent for policies issued before 1974 and
<PAGE>
PAGE 44
1. Summary of significant accounting policies (continued)

5.25 percent for policies issued from 1974 to 1980. Cash value
plans issued in 1980 and later assume future investment rates that
grade from 9.5 percent to 5 percent over 20 years. Term insurance
issued from 1981 to 1984 assumes an 8 percent level investment rate
and term insurance issued after 1984 assumes investment rates that
grade from 10 percent to 6 percent over 20 years.

Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners
Standard Ordinary Mortality Table at 3 percent interest for 1980
and prior, 8 percent interest for persons disabled from 1981 to
1991 and 6 percent interest for persons disabled after 1991.

Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table. The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims
incurred in 1989 to 1991 and 6 percent for claims incurred after
1991.

At Dec. 31, 1993 and 1992, the carrying amount and fair value of
fixed annuities future policy benefits, after excluding life
insurance-related contracts carried at $913,127 and $834,909, were
$17,579,008 and $15,507,510, and $16,881,747 and $14,867,066,
respectively. The fair value is net of policy loans of $59,132 and
$51,394 at Dec. 31, 1993 and 1992, respectively. The fair value of
these benefits is based on the status of the annuities at Dec. 31,
1993 and 1992. The fair value of deferred annuities is estimated
as the carrying amount less any surrender charges and related
loans. The fair value for annuities in non-life contingent payout
status is estimated as the present value of projected benefit
payments at the rate appropriate for contracts issued in 1993 and
1992.

Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits. The maximum amount of disability
income risk retained by the Company on any one life is $6 of
monthly benefit for benefit periods longer than three years. The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis. Graded premium whole life policies
and long term care are primarily reinsured on a coinsurance basis.

In 1993 the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 113, "Accounting and Reporting for Reinsurance
of Short-Duration and Long-Duration Contracts." Under SFAS No.
113, amounts paid or deemed to have been paid for reinsurance
contracts are recorded as reinsurance receivables. Prior to 1993,
these amounts were recorded as a reduction of the liability for
future insurance policy benefits. The cost of reinsurance is
accounted for over the period covered by the reinsurance contract.
<PAGE>
PAGE 45
1. Summary of significant accounting policies (continued)

Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The Company
provides for income taxes on a separate return basis, except that,
under an agreement between IDS and American Express Company, tax
benefit is recognized for losses to the extent they can be used on
the consolidated tax return. It is the policy of IDS and its
subsidiaries that IDS will reimburse a subsidiary for any tax
benefit.

Included in other liabilities at Dec. 31, 1993 and 1992 are $14,709
and $18,181, respectively, payable to IDS for federal income taxes.

Segregated asset account business
The segregated asset account assets and liabilities represent funds
held for the exclusive benefit of the variable annuity and variable
life insurance contract owners. The Company receives investment
management and mortality and expense assurance fees from the
variable annuity and variable life insurance mutual funds and
segregated asset accounts. The Company also deducts a monthly cost
of insurance charge and receives a minimum death benefit guarantee
fee and issue and administrative fee from the variable life
insurance segregated asset accounts.

The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the segregated asset
accounts will not be affected by future variations in the actual
life expectancy experience of the annuitants and the beneficiaries
from the mortality assumptions implicit in the annuity contracts.
The Company makes periodic fund transfers to, or withdrawals from,
the segregated asset accounts for such actuarial adjustments for
variable annuities that are in the benefit payment period. The
Company guarantees, for the variable life insurance policyholders,
the cost of the contractual insurance rate and that the death
benefit will never be less than the death benefit at the date of
issuance.

At Dec. 31, 1993 and 1992 the fair value of liabilities related to
segregated asset accounts was $8,305,209 and $5,727,402,
respectively. The fair value of these liabilities at Dec. 31, 1993
and 1992 is estimated as the carrying amount less variable
insurance contracts carried at $346,276 and $226,946, respectively,
and surrender charges, if applicable.

Reclassification
Certain 1992 and 1991 amounts have been reclassified to conform to
the 1993 presentation.

2. Investments

Market values of investments in fixed maturities represent quoted
market prices and estimated fair values when quoted prices are not
available. Estimated fair values are determined by established
procedures involving, among other things, review of market indices,
price levels of current offerings of comparable issues, price
estimates and market data from independent brokers and financial
files. <PAGE>
PAGE 46

2. Investments (continued)

Net gain (loss) on investments for the years ended Dec. 31 is
summarized as follows:
<TABLE>
<CAPTION>

1993 1992 1991
________________________________________________________________________________________________
<S> <C> <C> <C>
Fixed maturities $ 5,460 $ 14,474 $ 22,750
Mortgage loans (11,422) (5,004) (1,064)
Other investments (6,606) (8,265) (5,695)

(12,568) 1,205 15,991
Net (increase) decrease in allowance for losses 5,831 (4,915) (21,828)
$ (6,737) $ (3,710) $ (5,837)
________________________________________________________________________________________________

Changes in net unrealized appreciation
(depreciation) of investments for the years
ended Dec. 31 are summarized as follows:

1993 1992 1991
________________________________________________________________________________________________
Fixed maturities $323,060 $(128,683) $861,355
Equity securities (156) 300 418
________________________________________________________________________________________________

Fair values of and gross unrealized gains
and losses on investments in fixed maturities
carried at amortized cost at Dec. 31 are as follows:

Gross Gross
Amortized Unrealized Unrealized Fair
1993 Cost Gains Losses Value
________________________________________________________________________________________________
U.S. Government agency obligations $ 63,532 $ 3,546 $ 1,377 $ 65,701
State and municipal obligations 11,072 2,380 - 13,452
Corporate bonds and obligations 9,362,074 768,747 45,706 10,085,115
Mortgage-backed securities 9,978,523 341,067 57,879 10,261,711
19,415,201 1,115,740 104,962 20,425,979
Less allowance for losses 22,777 - 22,777 -
$19,392,424 $1,115,740 $ 82,185 $20,425,979
________________________________________________________________________________________________

Gross Gross
Amortized Unrealized Unrealized Fair
1992 Cost Gains Losses Value
________________________________________________________________________________________________
U.S. Government agency obligations $ 36,753 $ 3,658 $ 4 $ 40,407
State and municipal obligations 11,234 1,542 - 12,776
Corporate bonds and obligations 7,688,190 431,781 104,707 8,015,264
Mortgage-backed securities 9,487,601 377,539 37,213 9,827,927
17,223,778 814,520 141,924 17,896,374
Less allowance for losses 37,899 - 37,899 -
$17,185,879 $ 814,520 $104,025 $17,896,374
________________________________________________________________________________________________

The amortized cost and fair value of investments in fixed maturities at Dec. 31, 1993 by
contractual maturity are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations with or without
call or prepayment penalties.

Amortized Fair
Cost Value
________________________________________________________________________________________________
Due in one year or less $ 89,160 $ 90,928
Due from one to five years 1,430,756 1,532,298
Due from five to ten years 5,488,955 5,924,580
Due in more than ten years 2,427,807 2,616,462
Mortgage-backed securities 9,978,523 10,261,711
$19,415,201 $20,425,979
________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 47
2. Investments (continued)

Proceeds from sales of investments in fixed maturities during 1993
and 1992 were $482,523 and $996,619, respectively. During 1993 and
1992, gross gains of $48,499 and $94,915, respectively, and gross
losses of $43,039 and $80,441, respectively, were realized on those
sales.

At Dec. 31, 1993, the amount of net unrealized appreciation on
equity securities included $160 of gross unrealized appreciation,
$nil of gross unrealized depreciation and deferred tax credits of
$46. At Dec. 31, 1992, the amount of net unrealized appreciation
on equity securities included $328 of gross unrealized
appreciation, $12 of gross unrealized depreciation and deferred tax
credits of $102. The fair value of equity securities was $1,900
and $2,005 at Dec. 31, 1993 and 1992, respectively.

Included in other investments at Dec. 31, 1993 are interest rate
caps at amortized cost of $26,923 with a fair value of $14,201.
These interest rate caps carry a notional amount of $4,400,000 and
expire on various dates from 1994 to 1998.

At Dec. 31, 1993, bonds carried at $4,184 were on deposit with
various states as required by law.

Net investment income for the years ended Dec. 31 is summarized as
follows:
<TABLE>
<CAPTION>

1993 1992 1991
______________________________________________________________________________________
<S> <C> <C> <C>
Interest on fixed maturities $1,589,802 $1,449,234 $1,279,317
Interest on mortgage loans 175,063 148,693 122,723
Other investment income 29,345 24,281 20,005
Interest on cash equivalents 2,137 5,363 8,729
1,796,347 1,627,571 1,430,774
Less investment expenses 13,128 10,750 7,908
______________________________________________________________________________________
$1,783,219 $1,616,821 $1,422,866
______________________________________________________________________________________
</TABLE>
At Dec. 31, 1993, investments in fixed maturities comprised 89
percent of the Company's total invested assets. These securities
are rated by Moody's and Standard & Poor's (S&P), except for
approximately $2.1 billion which is rated by IDS internal analysts
using criteria similar to Moody's and S&P. A summary of
investments in fixed maturities by rating on Dec. 31 is as follows:
<TABLE>
<CAPTION>

Dec. 31, Dec. 31,
Rating 1993 1992
________________________________________________________________________
<S> <C> <C>
Aaa/AAA $ 9,959,884 $ 9,480,345
Aa/AA 258,659 219,370
Aa/A 160,638 109,806
A/A 2,021,177 1,735,750
A/BBB 654,949 447,592
Baa/BBB 3,936,366 3,352,192
Baa/BB 717,606 392,361
Below investment grade 1,705,922 1,486,362
________________________________________________________________________
$19,415,201 $17,223,778
________________________________________________________________________
</TABLE>
<PAGE>
PAGE 48
2. Investments (continued)

At Dec. 31, 1993, 99 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of
any other issuer are greater than 1 percent of the Company's total
investments in fixed maturities.

At Dec. 31, 1993, approximately 9.4 percent of the Company's
invested assets were mortgage loans on real estate. Summaries of
mortgage loans by region of the United States and by type of real
estate at Dec. 31, 1993 and 1992 are as follows:
<TABLE><CAPTION>

Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
______________________________________________________________________________________
<S> <C> <C> <C> <C>
East North Central $ 552,150 $ 20,933 $ 484,808 $ 21,728
West North Central 361,704 16,746 357,388 14,327
South Atlantic 452,679 52,440 320,593 32,022
Middle Atlantic 260,239 41,090 188,294 56,816
New England 155,214 17,620 114,170 24,677
Pacific 120,378 15,492 89,636 5,148
West South Central 43,948 525 46,296 716
East South Central 73,748 - 83,994 10,085
Mountain 70,410 14,594 26,906 8,882
______________________________________________________________________________________
2,090,470 179,440 1,712,085 174,401
Less allowance for losses 35,020 - 23,595 -
______________________________________________________________________________________
$2,055,450 $179,440 $1,688,490 $174,401
______________________________________________________________________________________

Dec. 31, 1993 Dec. 31, 1992
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
______________________________________________________________________________________
Apartments $ 744,788 $ 79,153 $ 541,855 $ 70,198
Department/retail stores 624,651 65,402 504,331 74,671
Office buildings 234,042 15,583 327,216 12,950
Industrial buildings 217,648 9,279 203,361 15,150
Nursing/retirement homes 83,768 917 56,431 716
Hotels/motels 33,138 - 34,631 716
Medical buildings 30,429 5,954 23,006 -
Residential 78 - 6,618 -
Other 121,928 3,152 14,636 -
______________________________________________________________________________________
2,090,470 179,440 1,712,085 174,401
Less allowance for losses 35,020 - 23,595 -
______________________________________________________________________________________
$2,055,450 $179,440 $1,688,490 $174,401
______________________________________________________________________________________
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authorities to 80 percent or less of the market value of the real
estate at the time of origination of the loan. The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities. Commitments to purchase mortgages are made in the
ordinary course of business. The fair value of the mortgage
commitments is $nil.

<PAGE>
PAGE 49

3. Income taxes

The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.

Income tax expense consists of the following:
<TABLE>
<CAPTION>

1993 1992 1991
_______________________________________________________________________________
<S> <C> <C> <C>
Federal income taxes:
Current $180,558 $130,998 $104,292
Deferred (44,237) (30,385) (29,207)
_______________________________________________________________________________
136,321 100,613 75,085
State income taxes-Current 6,326 4,038 2,345
_______________________________________________________________________________
Income tax expense $142,647 $104,651 $ 77,430
_______________________________________________________________________________
</TABLE>
Increases (decreases) to the federal tax provision applicable to
pretax income based on the statutory rate are attributable to:
<TABLE><CAPTION>

1993 1992 1991
_________________________________________________________________________________________________________
Provision Rate Provision Rate Provision Rate
_________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Federal income taxes based on
the statutory rate $144,454 35.0% $107,379 34.0% $88,219 34.0%
Increases (decreases) are attributable to:
Tax-excluded interest and dividend income (11,002) (2.7) (8,209) (2.6) (9,496) (3.7)
Other, net 2,869 0.7 1,443 0.4 (3,638) (1.4)
_________________________________________________________________________________________________________
Federal income taxes $136,321 33.0% $100,613 31.8% $75,085 28.9%
_________________________________________________________________________________________________________
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account." At Dec. 31, 1993,
the Company had a policyholders' surplus account balance of
$19,032. The policyholders' surplus account is only taxable if
dividends to the stockholder exceed the stockholder's surplus
account or if the Company is liquidated. Deferred income taxes of
$6,661 have not been established because no distributions of such
amounts are contemplated.

Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
<TABLE><CAPTION>

Deferred tax assets: 1993 1992
______________________________________________________________________________________
<S> <C> <C>
Policy reserves $453,436 $356,712
Life insurance guarantee fund assessment reserve 35,000 21,794
______________________________________________________________________________________
Total deferred tax assets 488,436 378,506
______________________________________________________________________________________

Deferred tax liabilities:
______________________________________________________________________________________
Deferred policy acquisition costs 509,868 446,579
Investments 10,105 2,435
Other 12,083 17,405
______________________________________________________________________________________
Total deferred tax liabilities 532,056 466,419
______________________________________________________________________________________
Net deferred tax liabilities $ 43,620 $ 87,913
______________________________________________________________________________________
/TABLE
<PAGE>
PAGE 50
4. Stockholder's equity

Retained earnings available for distribution as dividends to parent
are limited to the Company's surplus as determined in accordance
with accounting practices prescribed by state insurance regulatory
authorities. Statutory unassigned surplus aggregated $922,246 as
of Dec. 31, 1993 and $685,103 as of Dec. 31, 1992 (see Note 3 with
respect to the income tax effect of certain distributions). In
addition, any dividend distributions in 1994 in excess of
approximately $259,063 would require approval of the Department of
Commerce of the State of Minnesota.

Statutory net income for 1993, 1992 and 1991 and stockholder's
equity as of Dec. 31, 1993, 1992 and 1991 are summarized as
follows:
<TABLE><CAPTION>

1993 1992 1991
___________________________________________________________________________________
<S> <C> <C> <C>
Statutory net income $ 275,015 $180,296 $200,704
Statutory stockholder's equity 1,157,022 714,942 551,939
___________________________________________________________________________________
</TABLE>
Dividends paid to IDS were $25,000 in 1993, $20,000 in 1992 and
$20,000 in 1991.

5. Related party transactions

The Company has loaned funds or agreed to loan funds to IDS under
two separate loan agreements. The balance of the first loan was
$75,000 and $nil at Dec. 31, 1993 and 1992, respectively. This
loan can be increased to a maximum of $100,000 and pays interest at
a rate equal to the preceding month's effective new money rate for
the Company's permanent investments. It is collateralized by
equities valued at $96,790 at Dec. 31, 1993. The second loan was
used to fund the construction of the IDS Operations Center. This
loan had an outstanding balance of $84,588 and $85,278 at Dec. 31,
1993 and 1992, respectively. The loan is secured by a first lien
on the IDS Operations Center property and has an interest rate of
9.89 percent. The Company also has a loan to an affiliate which
was used to fund construction of the IDS Learning Center. At Dec.
31, 1993 and 1992, the balance outstanding was $22,573 and $22,755,
respectively. The loan is secured by a first lien on the IDS
Learning Center property and has an interest rate of 9.82 percent.

Interest income on the above loans totaled $11,116, $10,711 and
$14,783 in 1993, 1992 and 1991, respectively.

The Company purchased a five year secured note from an affiliated
company which had an outstanding balance of $27,222 and $31,111 at
Dec. 31, 1993 and 1992, respectively. The note bears a market
interest rate, revised semi-annually, which at Dec. 31, 1993 was
8.42 percent.

The Company has a reinsurance agreement whereby it assumed 100
percent of a block of single premium life insurance business from
an affiliated company. The accompanying consolidated balance sheet
at Dec. 31, 1993 and 1992 includes $759,714 and $746,060,
respectively, of future policy benefits related to this agreement.
<PAGE>
PAGE 51
5. Related party transactions (continued)

The accompanying consolidated statement of income includes revenue
from policyholder charges of $21, $109 and $243, and expenses of
$4,931, $5,897 and $6,445 related to this agreement for 1993, 1992
and 1991, respectively.

The Company has a reinsurance agreement to cede 50 percent of its
long-term care insurance business to an affiliated company. The
accompanying consolidated balance sheet at Dec. 31, 1993 includes
$44,086 of reinsurance receivables related to this agreement.
Liabilities for future policy benefits were reduced by $27,028 at
Dec. 31, 1992 for the effect of this agreement. Premiums ceded
amounted to $16,230, $12,499 and $6,365 and reinsurance recovered
from reinsurers amounted to $404, $250 and $187 for the years ended
Dec. 31, 1993, 1992 and 1991, respectively.

The Company participates in the retirement plan of IDS which covers
all permanent employees age 21 and over who have met certain
employment requirements. The benefits are based on the number of
years the employee participates in the plan, their final average
monthly salary, the level of social security benefits the employee
is eligible for and the level of vesting the employee has earned in
the plan. IDS' policy is to fund retirement plan costs accrued
subject to ERISA and federal income tax considerations. The
Company's share of the total net periodic pension cost was $nil in
1993, 1992 and 1991.

The Company also participates in defined contribution pension plans
of IDS which cover all employees who have met certain employment
requirements. Company contributions to the plans are a percent of
either each employee's eligible compensation or basic
contributions. Costs of these plans charged to operations in 1993,
1992 and 1991 were $2,008, $1,826 and $1,682, respectively.

The Company participates in defined benefit health care plans of
IDS that provide health care and life insurance benefits to retired
employees and retired financial planners. The plans include
participant contributions and service-related eligibility
requirements. Upon retirement, such employees are considered to
have been employees of IDS. IDS expenses these benefits and
allocates the expenses to its subsidiaries. Accordingly, costs of
such benefits to the Company are included in employee compensation
and benefits and cannot be identified on a separate company basis.

Charges by IDS for use of joint facilities and other services
aggregated $243,346, $204,675 and $174,500 for 1993, 1992 and 1991,
respectively. Certain of these costs are included in deferred
policy acquisition costs. In addition, the Company rents its home
office space from IDS on an annual renewable basis. Such rentals
aggregated $4,513, $4,074 and $3,469 for 1993, 1992 and 1991,
respectively.

Certain commission and marketing services expenses are allocated to
the Company by its affiliates. The expenses for 1993, 1992 and
1991 were $127,000, $110,064 and $95,367, respectively. Certain of
the costs assessed to the Company are included in deferred policy
acquisition costs.
<PAGE>
PAGE 52
6. Commitments and contingencies

At Dec. 31, 1993 and 1992, traditional life insurance and universal
life-type insurance in force aggregated $46,125,515 and
$40,904,345, respectively, of which $3,038,426 and $2,937,590 were
reinsured at the respective year ends. The Company also reinsures
a portion of the risks assumed under disability income policies.
Under the agreements, premiums ceded to reinsurers amounted to
$28,276, $24,222 and $16,908 and reinsurance recovered from
reinsurers amounted to $3,345, $6,766 and $6,447 for the years
ended Dec. 31, 1993, 1992 and 1991.

Reinsurance contracts do not relieve the Company from its primary
obligation to policyholders.

The Company is a defendant in various lawsuits, none of which, in
the opinion of the Company counsel, will result in a material
liability.

The Company received the revenue agent's report for the tax years
1984 through 1986 in February 1992, and has settled on all agreed
audit issues. The Company will protest the remaining open issues
and, while the outcome of the appeal is not known at this time,
management does not believe there will be any material impact as a
result of this audit.

7. Lines of credit

The Company has available lines of credit with two banks
aggregating $75,000 at 45 to 80 basis points over the banks' cost
of funds or equal to the prime rate, depending on which line of
credit agreement is used. Borrowings outstanding under these
agreements were $1,519 and $nil at Dec. 31, 1993 and 1992,
respectively.

8. Segment information

The Company's operations consist of two business segments; first,
individual and group life insurance, disability income, health and
long-term care insurance, and second, annuity products designed for
individuals, pension plans, small businesses and employer-sponsored
groups. The consolidated statement of income for the years ended
Dec. 31, 1993, 1992 and 1991 and total assets at Dec. 31, 1993,
1992 and 1991 by segment are summarized as follows:
<PAGE>
PAGE 53
8. Segment information (continued)
<TABLE>
<CAPTION>

1993 1992 1991
___________________________________________________________________________________________________________
<S> <C> <C> <C>
Net investment income:
Life, disability income, health and long-term care insurance $ 250,224 $ 246,676 $ 233,828
Annuities 1,532,995 1,370,145 1,189,038
___________________________________________________________________________________________________________
$ 1,783,219 $ 1,616,821 $ 1,422,866
___________________________________________________________________________________________________________
Premiums and other considerations:
Life, disability income and long-term care insurance $ 281,284 $ 250,386 $ 220,754
Annuities 143,876 104,952 79,928
___________________________________________________________________________________________________________
$ 425,160 $ 355,338 $ 300,682
___________________________________________________________________________________________________________
Income before income taxes:
Life, disability income, health and long-term care insurance $ 104,127 $ 96,215 $ 90,050
Annuities 315,336 223,316 175,254
Net loss on investments (6,737) (3,710) (5,837)
___________________________________________________________________________________________________________
$ 412,726 $ 315,821 $ 259,467
___________________________________________________________________________________________________________
Total assets:
Life, disability income, health and long-term care insurance $ 4,810,145 $ 4,093,778 $ 3,670,197
Annuities 28,247,608 23,201,995 18,888,612
___________________________________________________________________________________________________________
$33,057,753 $27,295,773 $22,558,809
___________________________________________________________________________________________________________
</TABLE>
Allocations of net investment income and certain general expenses
are based on various assumptions and estimates.

Assets are not individually identifiable by segment and have been
allocated principally based on the amount of future policy benefits
by segment.

Capital expenditures and depreciation expense are not material, and
consequently, are not reported.

<PAGE>
PAGE 54

Annual Financial Information

Report of Independent Auditors

The Board of Directors
IDS Life Insurance Company

We have audited the accompanying consolidated balance sheets of IDS
Life Insurance Company (a wholly owned subsidiary of IDS Financial
Corporation) as of December 31, 1993 and 1992, and the related
consolidated statement of income and cash flows for each of the
three years in the period ended December 31, 1993. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial
position of IDS Life Insurance Company at December 31, 1993 and
1992, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended December 31,
1993, in conformity with generally accepted accounting principles.

Ernst & Young
Minneapolis, Minnesota
February 3, 1994

<PAGE>
PAGE 55

IDS Life Market Value Annuity

IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010