Allied Life: Stock Repurchase Program

                               
                                
                   ALLIED LIFE FINANCIAL CORPORATION
                   ANNOUNCES STOCK REPURCHASE PROGRAM
                   Contact Jeff Roling 800-532-1436, ext.4454                  
             

Des Moines, Iowa, May 13, 1997 -- ALLIED Life Financial Corporation
(NASDAQ symbol ALFC) today held its regular meeting of the Company's Board of
Directors.

The Board of Directors have approved a stock repurchase program to acquire up
to 150,000 shares of the Company's common stock. Completion of the program,
expected within 24 months, is dependent upon market conditions.

The repurchases will be made from time to time in compliance with Rule 10b-18
of the Securities Exchange Act of 1934.  The repurchase program may be
terminated at any time at the Company's discretion and is not in response to
any tender offer or any other offer for shares of  the Company.  This
announcement is not a request or offer for tender of shares to the Company.  On
April 30, 1997, the Company had 4.5 million shares of common stock
outstanding. 
            
                             
As of March 30, 1997, the Company's book value per share was $15.96.  The stock
closed Monday, May 12, 1997 at a price of $15.75  per share.
                                                                               
                                                     
ALLIED Life Financial Corporation is a holding company that, through its
principal subsidiary, ALLIED Life Insurance Company, underwrites, markets, and
distributes life insurance and annuity products in rural and suburban areas of 
the United States. 





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