<PAGE>
PAGE 1
                          FORM 10-Q
                              
             SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, D.C.  20549
                              
Quarterly Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
                              
(Mark one)
[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1996

                             OR
                              
[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to

               Commission file number 33-28976

                      IDS LIFE INSURANCE COMPANY             
        (Exact name of registrant as specified in its charter)
                              
                   MINNESOTA                    41-0823832     
         (State or other jurisdiction of     (I.R.S. Employer
          incorporation or organization)     Identification No.)

     IDS TOWER 10, MINNEAPOLIS, MINNESOTA          55440-0010
   (Address of principal executive offices)        (Zip Code)

(Registrant's telephone number, including area code) (612) 671-1257
                              
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.  Yes  X   No ___


THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING
THIS FORM WITH THE PERMITTED ABBREVIATED NARRATIVE DISCLOSURE.
<PAGE>
PAGE 2
                 IDS LIFE INSURANCE COMPANY
                              
                          FORM 10-Q
                              
          For the Quarter Ended September 30, 1996
                              
                      Table of Contents

PART I - FINANCIAL INFORMATION                                Page

     Item 1. Financial Statements

          Consolidated Balance Sheets as of
          September 30, 1996 (unaudited) and
          December 31, 1995                                    3-4

          Consolidated Statements of Income for the
          three months ended September 30, 1996 and 1995
          (unaudited)                                           5

          Consolidated Statements of Income for the
          nine months ended September 30, 1996 and 1995
          (unaudited)                                           6

          Consolidated Statements of Cash Flows for the
          nine months ended September 30, 1996 and 1995
          (unaudited)                                          7-8

          Notes to Consolidated Financial Statements
          (unaudited)                                          9-10

     Item 2. Management's Discussion and Analysis of
          Consolidated Financial Condition and
          Results of Operations                               11-13

PART II - OTHER INFORMATION                                    14

SIGNATURES                                                     15
<PAGE>
PAGE 3
                          IDS LIFE INSURANCE COMPANY
                          CONSOLIDATED BALANCE SHEETS
                    ($ thousands, except per share amount)
<TABLE>
<CAPTION>
                                                                   September 30,         December 31,
ASSETS                                                                1996                   1995    
                                                                   (unaudited)
<S>                                                                <C>                   <C>
Investments:                                                                     
  Fixed Maturities:                                                                 
     Held to maturity, at amortized cost (Fair value:                                                       
                 1996, $10,788,460; 1995, $11,878,377)             $10,635,653           $11,257,591
     Available for sale, at fair value (Amortized cost:                                                     
                 1996, $10,376,822; 1995, $10,146,136)              10,410,197            10,516,212
                                                                         
                                                                    21,045,850            21,773,803 
                                                                         
  Mortgage loans on real estate                                                             
    (Fair value: 1996, $3,497,236; 1995, $3,184,666)                 3,457,028             2,945,495 
  Policy loans                                                         452,686               424,019 
  Other investments                                                    227,727               146,894
                                                                         
                 Total investments                                  25,183,291            25,290,211 
                                                                         
Cash and cash equivalents                                              120,134                72,147 
                                                                         
Receivables:                                                                     
   Reinsurance                                                         144,541               114,387 
   Amounts due from brokers                                             19,313                     -  
   Other accounts receivable                                            36,457                33,667 
   Premiums due                                                          4,970                 5,441
                                                                         
                 Total receivables                                     205,281               153,495 
                                                                         
Accrued investment income                                              340,123               348,008 
                                                                         
Deferred policy acquisition costs                                    2,228,125             2,025,725 
                                                                         
Deferred income taxes                                                   60,730                     -  
                                                                         
Other assets                                                            34,922                36,410 
                                                                         
Separate account assets                                             17,484,994            14,974,082
                                                                         
                 Total assets                                      $45,657,600           $42,900,078
<PAGE>
PAGE 4
                          IDS LIFE INSURANCE COMPANY
                          CONSOLIDATED BALANCE SHEETS
                    ($ thousands, except per share amount)
                                  (continued)
             
                                                                   September 30,         December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                                    1996                 1995    
                                                                    (unaudited)             
Liabilities:                                                                     
   Future policy benefits:                                                           
      Fixed annuities                                              $21,625,025           $21,404,836 
      Universal life-type insurance                                  3,151,145             3,076,847 
      Traditional life insurance                                       209,959               209,249 
      Disability income, health and                                                  
         long-term care insurance                                      398,623               327,157 
   Policy claims and other                                                           
      policyholders' funds                                              93,230                56,323 
   Amounts due to brokers                                              137,630               121,618 
   Deferred income taxes                                                     -               112,904 
   Other liabilities                                                   245,843               285,354 
   Separate account liabilities                                     17,484,994            14,974,082
                                                                         
                 Total liabilities                                  43,346,449            40,568,370
                                                                         
Stockholder's equity:                                                                     
   Capital stock, $30 par value per share;                                                                 
      100,000 shares authorized, issued and outstanding                  3,000                 3,000
   Additional paid-in capital                                          278,814               278,814 
   Net unrealized gain on investments                                   21,097               230,129 
   Retained earnings                                                 2,008,240             1,819,765
                                                                                                                          
                 Total stockholder's equity                          2,311,151             2,331,708
                                                                                                                          
Total liabilities and stockholder's equity                         $45,657,600           $42,900,078
                                             
See accompanying notes.
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
                          IDS LIFE INSURANCE COMPANY
                       CONSOLIDATED STATEMENTS OF INCOME
                                 ($ thousands)
                                  (unaudited)

                                                             Three months ended
                                                                September 30,
                                                         1996                  1995    
<S>                                                 <C>                   <C>
Revenues:                                                                                                
   Premiums:                                                                                        
      Traditional life insurance                    $   12,692            $   12,213
      Disability income, health and  
         long-term care insurance                       33,342                28,343
                   Total premiums                       46,034                40,556

   Policyholder and contractholder charges              77,047                63,768
   Management and other fees                            68,539                55,634
   Net investment income                               486,051               477,997
   Net realized gain (loss) on investments              (1,687)                  145
                     Total revenues                    675,984               638,100

Benefits and expenses:                                                                                   
   Death and other benefits:                                                                        
      Traditional life insurance                         6,460                 6,769
      Universal life-type insurance                                                            
         and investment contracts                       19,864                17,532
      Disability income, health and                                                          
         long-term care insurance                        5,599                 4,578
   Increase in liabilities for                                                                      
      future policy benefits:                                                                  
          Traditional life insurance                       436                     7
          Disability income, health and                                                  
             long-term care insurance                   12,923                12,956
   Interest credited on universal life-type                                                         
     insurance and investment contracts                343,875               333,159
   Amortization of deferred policy                                                                  
     acquisition costs                                  69,066                86,622
   Other insurance and operating expenses               62,397                46,478
                   Total benefits and expenses         520,620               508,101
                  
Income before income taxes                             155,364               129,999
                                                                       
Income taxes                                            49,118                45,180
                                                        
Net income                                          $  106,246            $   84,819

See accompanying notes.
<PAGE>
PAGE 6
                          IDS LIFE INSURANCE COMPANY
                       CONSOLIDATED STATEMENTS OF INCOME
                                 ($ thousands)
                                  (unaudited)
                                                        
                                                             Nine months ended
                                                                September 30,
                                                         1996                  1995    

Revenues:                                                                        
  Premiums:                                                                
     Traditional life insurance                     $   38,074            $   37,668 
     Disability income, health and                                                          
        long-term care insurance                        96,717                81,655
                  Total premiums                       134,791               119,323

  Policyholder and contractholder charges              223,388               188,939 
  Management and other fees                            195,701               153,064 
  Net investment income                              1,467,482             1,414,616 
  Net realized gain (loss) on investments                1,117                (2,605)
                  Total revenues                     2,022,479             1,873,337
                                                                         
Benefits and expenses:                                                                           
  Death and other benefits:                                                                        
     Traditional life insurance                         21,289                22,124 
     Universal life-type insurance                                                            
        and investment contracts                        63,281                51,555 
     Disability income, health and                                                          
        long-term care insurance                        13,356                13,091 
  Increase (decrease) in liabilities for                                                           
        future policy benefits:                                                          
          Traditional life insurance                       545                (1,714)
          Disability income, health and                                                  
             long-term care insurance                   42,351                38,228 
  Interest credited on universal life-type                                                         
     insurance and investment contracts              1,019,826               975,033 
  Amortization of deferred policy                                                                
     acquisition costs                                 205,780               211,239
  Other insurance and operating expenses               187,619               156,771
                  Total benefits and expenses        1,554,047             1,466,327
                                                                         
Income before income taxes                             468,432               407,010       
                                                                                 
Income taxes                                           156,976               141,560
       
Net income                                          $  311,456            $  265,450
                                                                                 
See accompanying notes.                                                                                  
</TABLE>
<PAGE>
PAGE 7
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ thousands)
(unaudited)
                                                                                 
                                                                    Nine months ended
                                                                      September 30,
                                                              1996                   1995    
<S>                                                      <C>                    <C>
Cash flows from operating activities:                                                                             
   Net income                                            $   311,456            $   265,450
   Adjustments to reconcile net income to                                                                    
      net cash provided by operating activities:                                                               
          Policy loans, excluding universal                                                      
             life-type insurance:                                             
                 Issuance                                    (37,373)               (35,332)      
                 Repayment                                    30,482                 26,993        
          Change in reinsurance receivable                   (30,154)               (25,305)      
          Change in other accounts receivable                 (2,790)                23,653 
          Change in accrued investment income                  7,885                (11,926)
          Change in deferred policy                                                        
             acquisition costs, net                         (187,144)              (124,744)     
          Change in liabilities for future policy                                                  
             benefits for  traditional life,                                                
             disability income, health and                                          
             long-term care insurance                         72,176                 64,584        
          Change in policy claims and other                                                        
             policyholders' funds                             36,907                 27,075        
          Change in deferred income taxes                    (57,411)               (32,318)      
          Change in other liabilities                        (39,511)               (49,153)      
          Accretion of discount, net                          (7,046)               (19,620)      
          Net realized (gain) loss on investments             (1,117)                 2,605 
          Activity related to universal                                                    
             life-type insurance:                                             
                 Premiums                                    363,562                339,747       
                 Surrenders and death benefits              (298,824)              (228,266)     
                 Interest credited to account balances       123,716                121,324 
          Policyholder and contractholder charges,                                                       
             non-cash                                       (114,156)              (103,768)     
          Other, net                                           4,217                  3,300
                                                                                 
             Net cash provided by operating activities   $   174,875            $   244,299
<PAGE>
PAGE 8
IDS LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ thousands)
(unaudited)
(continued)
                                                                                 
                                                                    Nine months ended
                                                                      September 30,
                                                              1996                   1995    
Cash flows from investing activities:                                                                             
   Fixed maturities held to maturity:                                                                        
       Purchases                                            ($41,724)             ($443,661)    
       Maturities, sinking fund payments and calls           548,298                485,070        
       Sales                                                 115,832                175,616        
   Fixed maturities available for sale:                                                                      
       Purchases                                          (1,396,732)            (1,831,133)   
       Maturities, sinking fund payments and calls           995,666                553,582        
       Sales                                                 177,253                 50,031         
   Other investments, excluding policy loans:                                                                      
       Purchases                                            (753,578)              (505,182)     
       Sales                                                 157,985                124,229        
   Change in amounts due from broker                         (19,313)                (2,672)
   Change in amounts due to broker                            16,012                (59,805)      
                                                                                 
             Net cash used in investing activities          (200,301)            (1,453,925)
                                                                                 
Cash flows from financing activities:                                                                             
   Activity related to investment contracts:                                                                         
       Considerations received                             2,329,493              2,338,090     
       Surrenders and death benefits                      (3,005,414)            (2,080,869)   
       Interest credited to account balances                 896,110                853,709 
   Universal life-type insurance policy loans:                                                                       
       Issuance                                              (65,179)               (63,768)      
       Repayment                                              43,403                 39,880        
   Cash dividends to parent                                 (125,000)              (140,000)     
                                                                                 
             Net cash provided by financing activities        73,413                947,042        
                                                                                 
Net increase (decrease) in cash and cash equivalents          47,987               (262,584)
                                                                                    
Cash and cash equivalents at beginning of period              72,147                267,774
                                                                                 
Cash and cash equivalents at end of period               $   120,134            $     5,190
                                                                                 
See accompanying notes.                                                                   
</TABLE>
<PAGE>
PAGE 9
                 IDS LIFE INSURANCE COMPANY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              
                     September 30, 1996
                        ($ thousands)
                         (unaudited)

1.   General

     In the opinion of the management of IDS Life Insurance
     Company (the Company), the accompanying unaudited
     consolidated financial statements contain all
     adjustments (consisting of normal recurring
     adjustments) necessary to present fairly its balance
     sheet as of September 30, 1996, statements of income
     for the three and nine months ended September 30, 1996
     and 1995 and statements of cash flows for the nine
     months ended September 30, 1996 and 1995.

     The Company is a wholly owned subsidiary of American
     Express Financial Corporation 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,
     American Enterprise Life Insurance Company, American
     Centurion Life Assurance Company and American Partners
     Life Insurance Company.  All material intercompany
     accounts and transactions have been eliminated in
     consolidation.

2.   Nature of business

     The Company is engaged in the life 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.

3.   Statements 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 market
     value.

     Cash paid for interest on borrowings totaled $3,610 and
     $4,568 for the nine months ended September 30, 1996 and
     1995, respectively.  Cash paid for income taxes totaled
     $274,418 and $157,199 for the nine months ended
     September 30, 1996 and 1995, respectively.
<PAGE>
PAGE 10
                 IDS LIFE INSURANCE COMPANY
                              
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        ($ thousands)
                         (unaudited)
                          (continued)
                              
4.   Commitments and contingencies

     Commitments for purchases of investments in the
     ordinary course of business at September 30, 1996
     aggregated $170,101.

     The maximum amount of 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
     excesses are reinsured with other life insurance
     companies on a yearly renewable term basis.

     The Company is a defendant in various lawsuits, none of
     which, in the opinion of the Company counsel, will
     result in a material liability.
<PAGE>
PAGE 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Nine Months Ended September 30, 1996 Compared to Nine Months
Ended September 30, 1995:

     Consolidated net income increased 17 percent to $311
million for the nine months ended September 30, 1996,
compared to $265 million in 1995.  Earnings growth resulted
primarily from increases in net investment income,
management fees and policyholder and contractholder charges,
partially offset by the impact of somewhat lower spread
rates.  It is expected that spread rates will continue to
decrease throughout the year.

     Premiums received totaled $4.6 billion for the nine
months ended September 30, 1996, compared to $3.8 billion a year
ago.  Increased sales of variable annuities and life insurance
were partially offset by decreased sales of fixed annuities,
reflecting lower interest rates in 1996 compared to 1995.

     Net investment income was $1.5 billion for the nine
months ended September 30, 1996, a slight increase from a year ago.
The increase reflects higher total investments which increased
4.2 percent from a year ago to $25 billion at September 30,
1996, partially offset by lower yields.

     Policyholder and contractholder charges increased to
$223 million for the nine months ended September 30, 1996,
compared with $189 million a year ago.  This increase is
primarily due to higher life insurance in force.

     Management and other fees increased to $196 million for
the nine months ended September 30, 1996, compared with $153
million a year ago.  This is primarily due to an increase in
separate account assets, which grew 24 percent to $17 billion at
September 30, 1996 due to market appreciation and sales.  The
Company provides investment management services for the mutual
funds which are used as investment options for variable annuities
and variable life insurance.  The Company also receives a
mortality and expense risk fee from the separate accounts.

     Total benefits and expenses were $1.6 billion for the
nine months ended September 30, 1996, a slight increase from
a year ago.  The largest component of expenses, interest
credited on  universal life-type insurance and investment
contracts, increased to $1,020 million, compared with $975
million for the corresponding period in 1995.  This is  due
to both higher aggregate amounts in force and an decrease in
interest credited rates.
<PAGE>
PAGE 12

Liquidity and Capital Resources

     The liquidity requirements of the Company are met by
funds provided from operations and investment activity.  The
primary 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, new
investment purchases and dividends to parent.

     The Company has available lines of credit with three
banks aggregating $100    million, which are used strictly
as short-term sources of funds.  At September 30, 1996,
outstanding borrowings under these agreements were $nil.
The Company also uses reverse repurchase agreements for
short-term liquidity needs.  Outstanding reverse repurchase
agreements totaled $35 million at September 30, 1996.

     At September 30, 1996, approximately 8.7 percent of the
Company's invested assets were below-investment-grade bonds,
compared to 9.2 percent at December 31, 1995.  These
investments may be subject to a higher degree of risk than
higher-rated issues because of the borrowers' 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.  The Company has identified
those fixed maturities for which a decline  in fair value is
determined to be other than temporary, and has written them
down to fair value with a charge to earnings.

     At September 30, 1996, net unrealized appreciation on
investments in fixed maturities decreased due to an increase
in market rates during the third quarter of 1996.  For the
nine months ended September 30, 1996, sales of fixed
maturities held to maturity were due to significant
deterioration in the issuers' creditworthiness.

     At September 30, 1996, the Company had an allowance for
losses on mortgage loans of $34 million.

     The Company paid $125 million in dividends to its
parent during the nine months ended September 30, 1996.
<PAGE>
PAGE 13

     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.  The Company has established an asset for guaranty
association assessments paid to 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.  The Company has also estimated the
effect of future assessments on the Company's financial
position and results of operations and has established a
reserve for such assessments.

<PAGE>
PAGE 14
PART II - OTHER INFORMATION

Item 1.   LEGAL PROCEEDINGS

          Reference is made to Note 4 of the Notes to
          Consolidated Financial Statements (unaudited)
          contained in the Report filed on Form 10-Q for the
          quarterly period ended September 30, 1996.

Item 2.   CHANGES IN SECURITIES

          Not applicable.

Item 3.   DEFAULTS UPON SENIOR SECURITIES

          Not applicable.

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          Not applicable.

Item 5.   OTHER INFORMATION

          Not applicable.

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K

          Not applicable.

No reports on Form 8-K were required to be filed by the
Company for the nine months ended September 30, 1996.
<PAGE>
PAGE 15
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.

REGISTRANT                  IDS LIFE INSURANCE COMPANY

BY                          /s/ Melinda S. Urion      

NAME AND TITLE              Melinda S. Urion
                            Executive Vice President and Controller

DATE                        November 12, 1996