TIAA-CREF Life Funds 2007 Annual Report

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of the Growth Equity Fund, Growth & Income Fund, International Equity Fund, Large-Cap Value Fund, Small-Cap Equity Fund, Stock Index Fund, Social Choice Equity Fund, Real Estate Securities Fund, Bond Fund and Money Market Fund (constituting TIAA-CREF Life Funds, hereafter referred to as the “Funds”) at December 31, 2007, and for the year then ended and have issued our unqualified report thereon dated February 22, 2008 (which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR). Our audit included an audit of each of the Funds’ schedule of investments in securities (the “Schedules”) as of December 31, 2007 appearing in Item 6 of this Form N-CSR. These Schedules are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these Schedules based on our audits.

In our opinion, the Schedules referred to above, when read in conjunction with the financial statements of the Funds referred to above, present fairly, in all material respects, the information set forth therein.

The TIAA-CREF Life Funds serve as investment vehicles for the TIAA-CREF Life Separate Account VA-1 (which offers Personal Annuity Select, Lifetime Variable Select and Single Premium Immediate Annuity contracts) and TIAA-CREF Life Separate Account VLI-1 (which offers the Variable Universal Life and Intelligent Life contracts). The returns of the TIAA-CREF Life Funds shown here do not reflect the administrative expense and the mortality and expense risk charges deducted by the products mentioned above. Because of these additional deductions, the returns on the investment subaccounts offered through the contracts that invest in these funds are lower, for the same periods, than the figures shown here.

The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit www.tiaa-cref.org, or call 800 223-1200.

This report contains information about the TIAA-CREF Life Funds and describes the funds’ results for the year ended December 31, 2007. The report contains five main sections:

As always, you should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit our website at www.tiaa-cref.org, or call 800 223-1200. We urge you to read it carefully before investing.

In 2007 the U.S. stock market posted a gain for the fifth calendar year in a row, but the year’s advance was trimmed by a decline in the fourth quarter, when concerns about the recession in the housing market and the subprime mortgage crisis drove share prices lower.

For the year, U.S. stocks returned 5.1%, as measured by the broad-based Russell 3000^® Index. Worries about the domestic economy also took their toll on stocks abroad. The MSCI EAFE^® Index, which tracks 21 stock markets in developed nations outside the United States, returned just 3.5% in terms of local currencies.

For the first time since 2002, bonds outperformed stocks in the U.S. markets during 2007.

However, the rising strength of many foreign currencies, notably the euro and the pound, amplified those gains for U.S. investors. When converted into dollars, the return of the EAFE index was 11.2%.

The EAFE’s return was boosted by the 35.2% return of German stocks, in dollar terms. Among the other largest components of the index, French stocks gained 13.2%, British stocks returned 8.4% and Japanese stocks suffered a 4.2% decline.

On September 18, the Federal Reserve lowered short-term interest rates for the first time since June 2006. This set off a rally in the bond market, and the Lehman Brothers U.S. Aggregate Index, which measures investment grade bonds, returned 2.8% for the third quarter. Increased volatility in the stock market and additional rate cuts in October and December fueled the rally, and bonds returned an additional 3% in the last three months of the year.

For the year as a whole, the Lehman index returned 7%. For the first time since 2002, bonds outperformed stocks in the U.S. markets.

During 2007 six of the eight TIAA-CREF Life Funds that invest in stocks outperformed their benchmarks. In addition, the Money Market Fund outpaced the industry average.

The greatest outperformance came from the Growth & Income Fund, which surpassed its benchmark by more than 13 percentage points due to stock selection.

Returns ranged from 21.7% for the Growth Equity Fund to –16.1% for the Real Estate Securities Fund.

The Bond Fund outperformed its Morningstar peer group but lagged its benchmark index because of its underweight position in U.S. Treasuries, which performed very strongly, especially during the year’s second half.

The Money Market Fund returned 5.3% for the year. The fund’s managers successfully avoided the problems in the short-term credit markets and produced a return significantly higher than the prevailing money market average, as measured by iMoneyNet.

While no investment strategy can guarantee against loss, diversifying your assets among different types of investments helps to lower risk and often smoothes out returns over time.

No one knows which area of investments will perform best in the future, so allocating your assets broadly is one way to ensure that, when a given area does well, you will be able to share in its rewards. Diversification can also limit your losses when declines occur in one investment area but not in others.

Our goal is to provide investment choices that can be combined to create a diversified portfolio with the potential for consistent growth. Of course, the right mix of investments depends on your financial needs, your time horizon and your attitude toward risk.

If you would like help finding the mix that’s best for you, please visit our website or call us.

Securities and Exchange Commission (SEC) rules intended to provide investors with more meaningful information about fund performance allow investment companies to list the top holdings of each fund in their annual and semiannual reports instead of providing complete portfolio listings. The funds file complete portfolio listings with the SEC, which are available to investors.

You can obtain a complete list of the TIAA-CREF Life Funds’ holdings (called “TIAA-CREF Life Funds Statements of Investments”) as of the most recently completed fiscal quarter (currently for the period ended December 31, 2007) in the following ways:

You can also obtain a complete list of the TIAA-CREF Life Funds’ holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from the SEC. (Form N-CSR lists holdings as of December 31 or June 30; Form N-Q lists holdings as of March 31 or September 30.) Copies of these forms are available:

TIAA-CREF Life Funds’ ownership of stock gives it the right to vote on proxy issues of companies in which it invests. A description of our proxy voting policies and procedures can be found at our website at www.tiaa-cref.org or on the SEC website at www.sec.gov. You may also call us at 800 223-1200 to request a free copy. A report of how the funds voted during the most recently completed twelve-month period ended June 30 can be found at our website or at www.sec.gov.

There are three easy ways to contact us: by email, using the Contact Us link at the top of our homepage; by mail at TIAA-CREF, 730 Third Avenue, New York, NY 10017–3206; or by phone at 800 223-1200.

TIAA-CREF Life Funds are managed by the portfolio management teams of Teachers Advisors, Inc. The members of these teams are responsible for the day-to-day operations of the funds.

Agency securities are bonds issued by U.S. government entities such as Fannie Mae.

Asset-backed securities are bonds backed by loans or by the outstanding amounts owed to a bank, credit card company or other lender.

Benchmarks (benchmark indexes) are groups of securities, such as the Russell 3000^® Index or S&P 500^® Index, whose performance can be used as a standard by which to judge the performance of a fund.*

Commercial paper refers to short-term debt obligations issued to investors by banks, corporations and other borrowers. Maturities range from 1 to 270 days.

Emerging markets are nations with relatively low per capita income levels and above-average economic growth rates or prospects for growth.

Expense ratio is the annual amount that investors pay for the management of a mutual fund. The amount is expressed as a percentage of the fund’s average net assets. Expense ratios do not include front-end or back-end sales charges, if any, or trading costs. See “Total return.”

Market capitalization is the total value of a company’s outstanding stock, calculated by multiplying the number of outstanding shares by the current market price per share.

Maturity date is the date on which the principal amount of a note, bond or other debt instrument becomes due or payable.

Mortgage-backed securities are bonds that represent an interest in a pool of mortgages usually issued by Ginnie Mae, Fannie Mae or other federal entities.

Overweight holding is a security that forms a larger percentage of a fund, in terms of market capitalization, than that security’s percentage of the benchmark. See also “Underweight holding.”

Peer groups are groupings of mutual funds with similar objectives whose performance can be compared with that of an individual mutual fund with a similar objective.

Price/earnings ratio (P/E) is calculated by dividing the market value of a portfolio’s assets by its earnings per share over a twelve-month period.

Portfolio turnover rate is calculated by dividing the market value of securities bought and sold during a given period by the average value of the fund’s assets during that period.

Relative performance is the return of a fund in relation to that of its benchmark.

Securities is a general name for stocks (also known as “equities”), bonds (also known as “fixed-income securities”) or other investments.

Total return is the amount an investment provides to investors after expenses are deducted. Total return is expressed as a percentage. It includes any interest or dividends, as well as any change in the market value of the investment.

Underweight holding is a security held that forms a smaller percentage of a fund, in terms of market capitalization, than that security’s percentage of the benchmark. See also “Overweight holding.”

Shareholders in the TIAA-CREF Life Funds incur only one of two potential types of costs.

The TIAA-CREF Life Funds are the underlying investment vehicles for certain variable life insurance and variable annuity contracts issued by TIAA-CREF Life Insurance Company. These contracts have additional administrative expense fees and mortality and expense risk charges. Because of these additional deductions, the costs to investors will be higher than the figures shown in the expense examples.

The examples that appear on the performance pages are intended to help you understand your ongoing costs (in dollars) of investing in each fund. The examples are also designed to help you compare these costs with the ongoing costs of investing in other funds.

The examples assume $1,000 was invested on July 1, 2007, and held for six months until December 31, 2007.

The first line in each table uses the fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested at the beginning of the period, to estimate the expenses that you paid over the six-month period.

Simply divide your fund value by $1,000 (for example, an $8,600 fund value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid” to estimate the expenses you paid during the six-month period.

The second line in the table shows hypothetical fund values and hypothetical expenses based on the fund’s actual expense ratio for the six-month period and an assumed annual rate of return of 5% before expenses—which is not the fund’s actual return.

Do not use the hypothetical fund values and hypothetical expenses to estimate the actual expenses you paid for the period. Instead, you can use this information to compare the ongoing costs of investing in an individual fund with the ongoing costs of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Growth Equity Fund returned 21.68% for the year, compared with the 11.81% gain of its benchmark, the Russell 1000^® Growth Index, and the 13.35% average return of the fund’s peer group, the Morningstar Large Growth category.

In 2007, large-cap growth stocks scored double-digit gains, while large-cap value issues fell 0.17%, as measured by the Russell 1000 Value Index. After lagging the large-cap value category in the first quarter of 2007, large-cap growth stocks rebounded and outperformed by nearly twelve percentage points for the remainder of the year.

Reversing a longer trend, this marked the first year in the last eight in which large-cap growth stocks outperformed large-cap value issues.

For the ten years ended December 31, 2007, the Russell 1000 Growth Index posted an average annual return of just 3.83%—less than half the 7.68% recorded by the Russell 1000 Value Index.

Nine of the benchmark’s twelve sectors recorded positive returns, with seven producing double-digit gains. The index was boosted by the “other energy” and technology sectors, which advanced 41% and 19.7%, respectively. Together these sectors made up more than 25% of the benchmark’s market capitalization as of December 31, 2007.

In contrast, the financials sector gained just 2% and the consumer discretionary sector lost 0.9%.

The fund beat its benchmark by nearly ten percentage points on the strength of numerous successful non-benchmark stock selections, including BlackBerry manufacturer Research in Motion and Japanese game maker Nintendo. The fund also benefited from larger-than-benchmark weightings in stocks that included agricultural giant Monsanto, Apple and Google.

These positive contributions were partly offset by overweights that did not perform as expected, including wireless communications provider NII Holdings and Goldman Sachs. Also detracting from returns was an underweight holding in Microsoft.

On December 31, 2007, foreign securities made up 11.65% of the fund’s total portfolio investments. Many of these securities were held as American Depositary Receipts, which are receipts for shares of a foreign stock traded on a U.S. exchange.

The fund seeks a favorable long-term return, mainly through capital appreciation, primarily from equity securities.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including growth investing risks, style risk, large-cap risk, reorganization risk and foreign investment risks. For a detailed discussion of risk, please see the prospectus.

The Russell 1000^® Growth Index is a subset of the Russell 1000 Index, which measures the performance of the stocks of the 1,000 largest companies in the Russell 3000^® Index, based on market capitalization. The Russell 1000 Growth Index measures the performance of those stocks of the Russell 1000 Index with higher price-to-book ratios and higher relative forecasted growth rates. You cannot invest directly in these indexes.

The returns presented above and in the graphs show past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit www.tiaa-cref.org.

Russell 1000 and Russell 3000 are trademarks and service marks of Russell Investment Group. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investment Group.

An investment of $10,000 in this fund on April 3, 2000, would be worth $7,441 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Growth & Income Fund returned 18.68% for the year, compared with the 5.49% gain of its benchmark, the S&P 500^® Index, and the 6.16% average return of the fund’s peer group, the Morningstar Large Blend category.

During 2007 the S&P 500 Index, which contains mostly large-cap stocks, outpaced the 5.14% advance of the broad-based Russell 3000^® Index. These higher returns resulted from the fact that, unlike the Russell 3000, the S&P 500 includes few small-cap stocks. The small-cap component of the Russell 3000, which makes up nearly one-tenth of that index, fell 1.57% for the year.

For the ten-year period ended December 31, 2007, the S&P 500 Index produced an average annual return of 5.91%—less than the 6.21% return of the Russell 3000 Index.

For the year, eight of the S&P 500’s ten industry sectors produced positive returns, and seven registered double-digit gains. The largest contributions to performance came from the energy and information technology sectors. Together these two sectors made up almost 30% of the benchmark’s market capitalization as of December 31, 2007.

These strong gains were partly offset by results in the benchmark’s largest sector, financials, which made up almost 18% of the index and fell 18.6% for the year. Financial stocks came under fire during the second half of the year due to a continued slowdown in the domestic housing market and rising default rates among subprime mortgages.

The fund’s return surpassed its benchmark’s by more than 13 percentage points on the strength of well-performing stock selections that included a number of nonbenchmark stocks. Among these were First Solar, a maker of grid-connected solar power plants; Mosaic, one of the world’s largest fertilizer producers and Japanese game maker Nintendo. An overweight position in agricultural giant Monsanto also boosted returns.

In contrast, the portfolio’s exclusion of a few well-performing energy stocks, namely Chevron, ConocoPhillips and Occidental Petroleum, trimmed returns slightly.

On December 31, 2007, foreign securities made up 7.01% of the fund’s total portfolio investments. Many of these securities were held as American Depositary Receipts, which are receipts for shares of a foreign stock traded on a U.S. exchange.

The fund seeks a favorable long-term total return through both capital appreciation and investment income, primarily from income-producing equity securities.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including growth investing risks, style risk, large-cap risk and foreign investment risks. For a detailed discussion of risk, please see the prospectus.

The S&P 500^® Index is a market-capitalization-weighted index of the stocks of 500 leading companies in major industries of the U.S. economy. You cannot invest directly in this index.

S&P 500 is a registered trademark and service mark of the McGraw-Hill Companies.

An investment of $10,000 in this fund on April 3, 2000, would have grown to $12,025 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The International Equity Fund returned 19.34% for the year, compared with the 11.17% gain of the fund’s benchmark, the MSCI EAFE^® Index, and the 12.71% average return of the fund’s peer group, the Morningstar Foreign Large Blend category.

Foreign stocks topped domestic issues for the sixth consecutive year. The return of the EAFE index, which tracks stocks in developed foreign markets, was more than double the 5.14% advance of the Russell 3000^® Index, which measures the broad U.S. stock market.

The EAFE’s outperformance was due entirely to the eroding value of the dollar. A weaker dollar boosts foreign stock gains for U.S. investors. In terms of local currencies, the EAFE returned just 3.54%. However, a surge in the value of the euro and the pound against the dollar converted this return into a double-digit gain in dollar terms.

For the ten years ended December 31, 2007, the average annual return of the EAFE was 8.66% in dollars, versus 6.21% for the Russell 3000.

The benchmark’s European segment climbed 13.9% in dollar terms, propelled by German stocks, which soared 35.2%. French and British stocks also rose 13.2% and 8.4%, respectively. In the Pacific segment, a 4.2% loss by Japanese stocks partly offset the 30.7% gain of the benchmark’s other Pacific stocks. As a result, the segment posted a modest return of 5.3%, in dollar terms.

The fund beat its benchmark by a wide margin on the strength of numerous successful stock selections. Among the largest positive contributors were overweight positions in German drug maker Bayer and Italian car maker Fiat. Also boosting returns were nonbenchmark holdings that included China Coal Energy and Russian mining company MMC Norilsk Nickel. Norilsk was held as an American Depositary Receipt, a receipt for shares of a foreign stock traded on a U.S. exchange.

Other positions did not perform as anticipated and detracted from relative performance. These included overweights in Japan’s Sumitomo Osaka Cement, Swiss financial services provider UBS and French retailing giant Carrefour. Also trimming returns were several nonbenchmark holdings such as Japanese real estate developer Urban.

As of December 31, 2007, stocks of companies in emerging markets, which are not in the benchmark, made up about 7% of the fund’s total portfolio investments.

The fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of foreign issuers.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including foreign investment risks and small-cap risk. For a detailed discussion of risk, please see the prospectus.

The MSCI EAFE^® (Europe, Australasia, Far East) Index measures the performance of the leading stocks in 21 developed countries outside North America. You cannot invest directly in this index.

An investment of $10,000 in this fund on April 3, 2000, would have grown to $15,152 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Large-Cap Value Fund returned 0.91% for the year, compared with the –0.17% return of its benchmark, the Russell 1000^® Value Index, and the 1.42% average return of the fund’s peer group, the Morningstar Large Value category.

During 2007 large-cap value stocks slipped into the red, lagging large-cap growth issues, as measured by the Russell 1000 Growth Index, by almost twelve percentage points. This marked the first year in the last eight in which the large-cap value category underperformed large-cap growth.

Despite its negative return, the large-cap value category held up better than both mid-cap and small-cap value stocks, which fell 1.42% and 9.78%, respectively, during the twelve-month period.

Its recent underperformance notwithstanding, the Russell 1000 Value Index posted an average annual return of 7.68% over the ten years ended December 31, 2007—more than double the 3.83% average annual gain registered by the Russell 1000 Growth Index.

For the year, ten of the twelve benchmark sectors posted positive results, with six generating double-digit returns. However most of these gains were offset by losses in the financials sector. The benchmark’s largest sector, financials fell 21.1%. The sector came under fire during the second half of the year due to a continued slowdown in the domestic housing market and mounting default rates in the subprime credit markets.

The largest positive contributions to performance came from the integrated oils and utilities sectors, which rose 30.2% and 11.5%, respectively.

While the fund participated in losses in the financials sector during the period, it was able to outperform its benchmark on the strength of numerous overweight positions, relative to the benchmark, that posted stellar gains. Chief among these were RadioShack and Occidental Petroleum.

These positive contributions more than offset detractions from other holdings that included an underweight position in ExxonMobil and an overweight holding in credit risk manager Radian Group.

On December 31, 2007, foreign securities made up 6.25% of the fund’s total portfolio investments. Many of these securities were held as American Depositary Receipts, which are receipts for shares of a foreign stock traded on a U.S. exchange.

The fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of large domestic companies.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including large-cap risk, value investing risks, style risk and foreign investment risks. For a detailed discussion of risk, please see the prospectus.

The Russell 1000^® Value Index is a subset of the Russell 1000 Index, which measures the performance of the stocks of the 1,000 largest companies in the Russell 3000^® Index, based on market capitalization. The Russell 1000 Value Index measures the performance of those stocks of the Russell 1000 Index with lower price-to-book ratios and lower relative forecasted growth rates. You cannot invest directly in these indexes.

Russell 1000 and Russell 3000 are trademarks and service marks of Russell Investment Group. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investment Group.

An investment of $10,000 in this fund on October 28, 2002, would have grown to $21,113 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Small-Cap Equity Fund returned –5.62% for the year, compared with the –1.57% return of its benchmark, the Russell 2000^® Index, and the –1.10% average return of the fund’s peer group, the Morningstar Small Blend category.

During 2007, small-cap stocks lost ground, while the broader U.S. stock market gained 5.14%, as measured by the Russell 3000^® Index. After outperforming the Russell 3000 during the first quarter of 2007, small caps lagged during each of the subsequent three quarters of the year because investors turned their attention to the relative safety of larger-cap stocks in an increasingly volatile market environment. This marked only the third year in the last ten that small-cap issues underperformed the Russell 3000 Index.

Within the small-cap category, growth stocks posted a 7.05% rise, while value stocks suffered a 9.78% loss.

For the ten years ended December 31, 2007, small-cap stocks produced an average annual return of 7.08%, ahead of the 6.21% average return of the Russell 3000 Index.

For the period, eight of the benchmark’s twelve industry sectors posted positive returns, with four generating double-digit gains. However, steep losses from the benchmark’s two largest sectors, financials and consumer discretionary, which fell 16.8% and 10.8%, respectively, were the primary reason small-cap stocks underperformed the overall equity market.

Outsized gains in the health care and materials and processing sectors, which rose 13.7% and 13.3%, respectively, provided the largest positive contributions to the benchmark’s overall return.

The fund failed to keep pace with its benchmark in 2007 because numerous stock selections did not perform as anticipated. These included overweight positions, relative to the benchmark, in credit card provider Advanta and freight transportation provider Pacer International.

During the third quarter of 2007, a number of quantitatively managed hedge funds sold their positions in several poorly performing small-cap stocks, which drove the prices of these stocks down even further. The Small-Cap Equity Fund was hurt by this sell-off because it held overweight positions in some of these issues.

The fund continued to use proprietary mathematical models to select small-cap stocks that appear to be attractively priced.

The fund seeks a favorable long-term total return, mainly through capital appreciation, primarily from equity securities of smaller domestic companies.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to small-cap risk. For a detailed discussion of risk, please see the prospectus.

The Russell 2000^® Index measures the performance of the stocks of the 2,000 smallest companies in the Russell 3000^® Index, based on market capitalization. You cannot invest directly in these indexes.

Russell 2000 and Russell 3000 are trademarks and service marks of Russell Investment Group. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investment Group.

An investment of $10,000 in this fund on October 28, 2002, would have grown to $21,675 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Stock Index Fund returned 5.16% for the year, compared with the 5.14% gain of its benchmark, the Russell 3000^® Index, and the 6.16% average return of the fund’s peer group, the Morningstar Large Blend category.

During the first six months of 2007, U.S. stocks produced an impressive 7.11% return, as measured by the Russell 3000 Index. In the year’s second half, however, the market struggled because of investor concerns about a slowing domestic economy and mounting default rates in the subprime credit markets. The Russell 3000 Index fell 1.84% during the last six months of the year.

For the year, growth stocks outperformed value issues by wide margins across all three capitalization sizes, as defined by the Russell indexes. Large-cap growth stocks were the top performers, posting an 11.81% gain, while small-cap value stocks posted a 9.78% loss.

U.S. stocks lagged foreign equities entirely because of the weakening dollar versus other currencies. The MSCI EAFE^® Index, which measures stocks in developed foreign markets, climbed 11.17% in dollar terms.

For the ten-year period ended December 31, 2007, the average annual return of the Russell 3000 Index was 6.21%—more than two percentage points below the 8.66% average annual gain registered by the EAFE.

During the period, nine of the benchmark’s twelve industry sectors posted positive returns, with six generating double-digit gains. The strongest positive contributions to performance came from the integrated oils and technology sectors, which rose 29.7% and 15.8%, respectively.

These robust returns were partly offset by losses in the financials and consumer discretionary sectors, which fell 16.3% and 3.6%, respectively.

In descending order according to capitalization size, the five largest stocks in the benchmark performed as follows: ExxonMobil, 24.3%; General Electric, 2.7%; Microsoft, 20.8%; AT&T, 20.6%; and Procter & Gamble, 16.6%.

For the period, the fund’s return topped that of the benchmark, in spite of the effects of expenses and of some cash holdings for liquidity. The fund had a risk profile similar to that of the benchmark.

The fund seeks a favorable long-term total return, mainly from capital appreciation, by investing primarily in a portfolio of equity securities selected to track the overall U.S. equity markets.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including index risk and small-cap risk. For a detailed discussion of risk, please see the prospectus.

The Russell 3000^® Index measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. You cannot invest directly in this index.

Russell 3000 is a trademark and a service mark of Russell Investment Group. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investment Group.

An investment of $10,000 in this fund on January 4, 1999, would have grown to $14,781 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Social Choice Equity Fund returned 4.25% for the year, compared with the 5.14% gain of its benchmark, the Russell 3000^® Index, and the 6.16% average return of the fund’s peer group, the Morningstar Large Blend category. Neither the benchmark nor the Morningstar category screens investments according to social criteria, as the fund does.

Because of its social screens, the fund did not invest in several stocks that were sizable components of the Russell 3000 Index in terms of market capitalization. The exclusion of these stocks produced mixed results, but the net effect was to lower the fund’s return, compared with the return of its benchmark.

The fund lagged the index mainly because it excluded ExxonMobil and Chevron. With oil prices approaching $100 a barrel by year-end, the integrated oils sector was the Russell 3000’s second-highest performer in 2007. ExxonMobil, the largest component of the index on December 31, 2007, rose 24.3%, while Chevron climbed 30.6%. The fund also suffered by avoiding agricultural giant Monsanto.

These detractors from performance relative to the benchmark were partly offset by excluding other stocks that performed poorly during the period. Chief among these was Citigroup, which declined 44.7%. In general, financial stocks were hurt by investor concerns over problems in the subprime lending market and falling housing prices; the benchmark’s financials sector lost 16.3% for the year. Avoiding insurer American International Group and cable operator Comcast also contributed to the fund’s relative performance.

Because the fund’s social screens prevent it from investing in some of the stocks within the Russell 3000, the fund’s managers use quantitative techniques to ensure that the risk characteristics of the portfolio resemble those of the index. One method is to overweight or underweight certain stocks relative to each one’s percentage of capitalization within the benchmark.

During the year, the fund’s relative performance was enhanced by overweight positions that included McDonald’s, agricultural equipment maker Deere & Company and energy company Apache. However, other overweight holdings failed to perform as anticipated and reduced the fund’s relative return. These included five financial institutions: Washington Mutual, Merrill Lynch, Wachovia, National City and home mortgage provider Freddie Mac.

The fund seeks a favorable long-term total return that reflects the investment performance of the overall U.S. stock market while giving special consideration to certain social criteria.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including the risk of socially screened investing, index risk and foreign investment risks. For a detailed discussion of risk, please see the prospectus.

Russell 3000 is a trademark and a service mark of Russell Investment Group. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investment Group.

An investment of $10,000 in this fund on April 3, 2000, would have grown to $11,712 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Real Estate Securities Fund returned –16.12% for the year, compared with the –17.85% return of its benchmark, the Dow Jones Wilshire Real Estate Securities Index, and the –14.66% average return of the fund’s peer group, the Morningstar Specialty Real Estate category.

After gaining 35.88% in 2006, real estate investment trusts (REITs) took half of it back in 2007. Although REITs rose modestly in the first and third quarters of 2007, they fell 9.45% in the second quarter and 13.68% in the fourth, giving REITs their worst calendar-year performance since 1990.

The slowdown in the housing market, the growing number of defaults in subprime mortgages and mounting problems in the global credit markets weighed heavily on REITs. Investors feared that commercial real estate would be hurt by the tightening of credit standards and by declines in job and wage growth, both of which could reduce spending for office and industrial space and curb rental income.

For the year, REITs lagged the 5.14% return of the overall U.S. stock market, as measured by the Russell 3000^® Index, and the 6.97% return of investment-grade bonds, as measured by the Lehman Brothers U.S. Aggregate Index.

In the longer term, however, REITs retained their substantial lead: for the ten years ended December 31, 2007, they posted an average annual gain of 10.78%, compared with 6.21% for the Russell 3000 and 5.97% for the Lehman index.

Despite its negative return, the fund outperformed the Dow Jones Wilshire index primarily because of successful stock weightings relative to the benchmark. The largest contribution came from an overweight position in Taubman Centers, an owner of high-end regional malls. Relative performance was also helped by an overweight holding in Hilton Hotels, which was acquired by The Blackstone Group in July 2007 at a share price 40% higher than the previous day’s closing price, and by an underweight in Developers Diversified, a shopping center owner.

These positive contributions were partly offset by stock weightings that did not perform as anticipated, including an overweight position in Corporate Office Properties and an underweight in Equity Office Properties. Holdings in two out-of-benchmark stocks, Starwood Hotels and asset management firm GSC Capital, also lowered the fund’s return.

The fund seeks to obtain a favorable long-term total return through both capital appreciation and current income, by investing primarily in equity and fixed-income securities of companies principally engaged in or related to the real estate industry.

In addition to the risks of any equity investment—market risk and company risk—the fund is subject to special risks, including real estate investing risks, real estate securities risk, small-cap risk, foreign investment risks, interest-rate risk and income volatility risk. For a detailed discussion of risk, please see the prospectus.

The Dow Jones Wilshire Real Estate Securities Index measures the performance of publicly traded real estate securities, such as real estate investment trusts and real estate operating companies. You cannot invest directly in this index.

An investment of $10,000 in this fund on October 28, 2002, would have grown to $23,701 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Bond Fund returned 5.60% for the year, compared with the 6.97% gain of its benchmark, the Lehman Brothers U.S. Aggregate Index, and the 4.70% average return of the fund’s peer group, the Morningstar Intermediate-Term Bond category.

After posting a lackluster 0.98% return in the first half of 2007, the Lehman Brothers U.S. Aggregate Index, which tracks the investment-grade U.S. bond market, gained 5.93% in the second half. Bond prices were lifted by a broad “flight to quality” as investors sought safe havens from increasingly volatile equity markets. At the same time, reductions in short-term interest rates pulled longer-term yields lower, further boosting prices. (Yields and prices move in opposite directions.)

The Federal Reserve had kept the federal funds rate (the interest rate U.S. commercial banks charge one another for overnight loans) at 5.25% since June 2006, citing inflation concerns. However, as the U.S. housing market deteriorated and fallout from the subprime lending crisis threatened the broader economy, the Fed cut the rate three times between September and December; at year-end, the rate stood at 4.25%.

During 2007 bond yields fell across the maturity spectrum. The 2-year Treasury yield declined sharply, from 4.82% at the beginning of the year to 3.05% on December 31, while the 10-year yield slid from 4.71% to 4.04%. For the first time since 2004, the year-end relationship between the 2- and 10-year yields represented a normal yield curve, in which longer-dated issues have higher yields to compensate for their greater inflation risk.

The fund trailed the benchmark primarily because of an underweighting in U.S. Treasuries and an overweighting in mortgage- and asset-backed securities and in corporate bonds. Although the fund’s non-Treasury investments focused on high-quality sectors, these sectors did not benefit as much as Treasuries from the flight to quality that buoyed fixed-income returns in the second half of the year.

Moreover, as demand for Treasuries surged, the benchmark’s other high-quality sectors began to suffer from an atypical lack of liquidity that further dampened their returns. For the year, the Treasury component of the Lehman index gained 9.01%, while the overall index rose 6.97%.

The fund seeks as favorable a long-term total return through income as is consistent with preserving capital, primarily from investment-grade, fixed-income securities.

In addition to the risks of any fixed-income investment—income volatility risk, credit risk, interest-rate risk, call risk, prepayment risk and extension risk—the fund is subject to special risks, including index risk and foreign investment risks. For a detailed discussion of risk, please see the prospectus.

The Lehman Brothers U.S. Aggregate Index measures the performance of the U.S. investment-grade, fixed-rate bond market, including government and credit securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. You cannot invest directly in this index.

An investment of $10,000 in this fund on July 8, 2003, would have grown to $11,895 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the values of the fund’s benchmark and peer group during the same period.

The Money Market Fund returned 5.34% for the year, compared with the 4.69% gain of the iMoneyNet Money Fund Report Averages™—All Taxable, a simple average of over 1,000 taxable money market funds.

After keeping the federal funds rate at 5.25% for more than a year, the Federal Reserve lowered it three times in late 2007, to 4.25%. (The federal funds rate is the interest rate U.S. commercial banks charge one another for overnight loans.) The Fed was concerned that losses sustained by financial institutions that had invested in riskier subprime debt securities would threaten the broader economy. The Fed also held two money auctions to make cash more readily available to banks.

The LIBOR remained flat through July, reflecting investor belief that the Fed would not change the short-term rate in the near term. (The LIBOR, the interest rate that banks charge one another for loans on the London market, is the most widely used benchmark for short-term rates.) When credit concerns roiled the financial markets in August, the yield on securities with one-month maturities soared from 5.32% to 5.82%.

As the Fed trimmed rates, the one-month yield dropped, declining to 4.60% by year-end. The yield on the twelve-month LIBOR fell from a high of 5.51% in June to 4.22% on December 31.

Because the fund invests primarily in top-tier securities, it did not experience losses due to the credit crisis. To further limit risk, the fund’s managers significantly reduced its holdings in asset-backed commercial paper and boosted its investments in the commercial paper of blue-chip companies, such as General Electric and Coca-Cola. They also increased its holdings in U.S. agency securities.

Commercial paper fell to 61.6% of the portfolio, from 80.2% one year earlier. U.S. agency securities rose to 24.1% from 9.1%, while certificates of deposit declined to 5.9% from 6.5%. Floating-rate securities also dropped, from 4.2% to 3.2%. The rest of the portfolio was divided between banker’s acceptances (3.2%) and bank notes (2.0%). On December 31, 2007, foreign securities made up 7.7% of the fund’s total portfolio investments.

The fund increased its investments in securities with longer maturities to benefit from their higher yields. On December 24, 2007, the fund’s weighted average maturity was 47 days, versus 40 days for the average iMoneyNet fund (reported as of December 25, 2007).

The fund seeks high current income consistent with maintaining liquidity and preserving capital.

The fund is subject to income volatility risk, credit risk, interest-rate risk, call risk, prepayment risk, extension risk and foreign investment risks. An investment in the fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. We will attempt to maintain a stable net asset value of $1.00 per share for this fund, but it is possible to lose money by investing in the fund. For a detailed discussion of risk, please see the prospectus.

The current yield more closely reflects current earnings than does the total return.

An investment of $10,000 in this fund on July 8, 2003, would have grown to $11,639 as of December 31, 2007, including reinvestment of dividends and distributions. For the purpose of comparison, the graph also shows the change in the value of the average iMoneyNet fund during the same period.

For ease of presentation, we have grouped a number of industry classification categories together in the Summary portfolio of investments. Note that the funds use more specific industry categories in following their investment limitations on industry concentration.

At December 31, 2007, the value of these securities amounted to $923,800 or 0.58% of net assets.


Country	Value		% of total portfolio
DOMESTIC
UNITED STATES	$	2,597,088	1.61	%

TOTAL DOMESTIC		2,597,088	1.61


FOREIGN
AUSTRALIA		776,245	0.48
BELGIUM		148	—
FINLAND		4,908,059	3.04
FRANCE		22,030,941	13.67
GERMANY		46,757,628	29.00
HONG KONG		15,316,670	9.50
INDIA		2,801,408	1.74
ITALY		7,326,008	4.54
JAPAN		17,460,630	10.83
NETHERLANDS		142,775	0.09
RUSSIA		7,081,082	4.39
SINGAPORE		124,368	0.08
SOUTH KOREA		1,416,636	0.88
SWITZERLAND		18,805,992	11.67
UNITED KINGDOM		13,663,712	8.48

TOTAL FOREIGN		158,612,302	98.39


TOTAL PORTFOLIO	$	161,209,390	100.00	%

For ease of presentation, we have grouped a number of industry classification categories together in the Statement of Investments. Note that the funds use more specific industry categories in following their investment limitations on industry concentration.

TIAA-CREF Life Funds (the “Funds” or individually, the “Fund”) is a Delaware statutory trust that was organized on August 13, 1998, and is registered with the Securities and Exchange Commission (“Commission”) under the Investment Company Act of 1940 as an open-end management investment company. The Funds consist of ten series (each referred to as a “Fund”). Certain registered separate accounts (the “Account”) of TIAA-CREF Life Insurance Company (“TIAA-CREF Life”), which is a wholly owned subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”), have various sub-accounts which correspond to and invest in the Funds.

This report should be read in conjunction with the current prospectus, which contains more complete information about the Funds.

At the commencement of operations of each of these Funds, TIAA, an affiliate, invested in each Fund. As of December 31, 2007, TIAA had investments in the Funds as follow:

The accompanying financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which may require the use of estimates made by management. Actual results may differ from those estimates. The following is a summary of the significant accounting policies consistently followed by the Funds.

Valuation of investments: Equity securities listed or traded on a national market or exchange are valued based on their sale price on such market or exchange at the close of business on the date of valuation, or at the mean of the closing bid and asked prices if no sale is reported. Debt securities will generally be valued using prices provided by a pricing service which may employ various indications of value including but not limited to broker-dealer quotations. Certain debt securities, other than money market instruments, are valued based on the most recent bid price or the equivalent quoted yield for such securities (or those of comparable maturity, quality and type). Money market instruments (other than those in the Money Market Fund), with maturities of one year or less, are valued in the same manner as debt securities or derived from a pricing matrix that has various types of money

market instruments along one axis and various maturities along the other. For the Money Market Fund, all of its investments are valued using amortized cost. Investments in other registered investment companies are valued at their net asset value on the valuation date. Net asset value of underlying funds is calculated as of the close of business of the New York Stock Exchange (generally 4:00 pm Eastern Time). Foreign investments are valued at the closing values of such securities as of the date of valuation under the generally accepted valuation method in the country where traded, converted to U.S. dollars at the prevailing rates of exchange on the date of valuation. If events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net assets are calculated, such securities may be valued at fair value in accordance with procedures adopted by the Board of Trustees. Stock and bond index futures and options, which are traded on commodities exchanges, are valued at the last sales price as of the close of such commodities exchanges. Portfolio securities for which market quotations are not readily available are valued at fair value, as determined in good faith under the direction of the Board of Trustees.

Accounting for investments: Securities transactions are accounted for as of the trade date. Interest income is recorded as earned and includes accretion of discounts and amortization of premiums using the effective yield method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, as soon thereafter as the Funds are informed of the ex-dividend date. Realized gains and losses on securities transactions are based upon the specific identification method.

Distributions received from Real Estate Investment Trusts (“REITs”) are recorded on the ex-dividend date. Each REIT reports annually the tax character of its distributions. Dividend income, realized gains and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain and return of capital reported by each REIT, and management’s estimates of such amounts for REIT distributions for which actual information has not been reported.

Mortgage dollar roll transactions: The Funds may enter into mortgage dollar rolls in which the Fund sells mortgage-backed securities for delivery and contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Funds’ policy is to record the dollar rolls using “to be announced” mortgage-backed securities as purchase and sale transactions. Any difference between the purchase and sale price is recorded as a realized gain or loss on the trade date of the sale transaction. At the time a Fund enters into such transactions, it is required to have segregated assets with a current value at least equal to the amount of its dollar roll commitments. In addition, the Funds may receive compensation that is recorded as deferred income and amortized to income over the roll period. The counterparty receives all principal and interest payments, including prepayments, made in respect of a security subject to such a

contract while it is the holder. Dollar rolls may be renewed with a new purchase and repurchase price and a cash settlement made on settlement date without physical delivery of the securities subject to the contract. The Funds engage in dollar rolls for the purpose of enhancing their yields.

Cash: The Funds may hold cash in its account with the custodian. The Funds, throughout the year, may have a cash overdraft balance. A fee is incurred on this overdraft, and is included in interest expense on the financial statements.

Foreign currency transactions and translation: Portfolio investments and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of securities, income receipts and expense payments made in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the respective dates of the transactions. The effects of changes in foreign currency exchange rates are included in the net realized and unrealized gains and losses on investments. Net realized gains and losses on foreign currency transactions include maturities of forward foreign currency contracts, disposition of foreign currencies, and currency gains and losses between the accrual and receipt dates of portfolio investment income and between the trade and settlement dates of portfolio investment transactions.

Forward foreign currency contracts: The Funds may use forward foreign currency contracts to facilitate transactions in securities denominated in foreign currencies. Such contracts are entered into directly with the counterparty and are “marked-to-market” at the end of each day’s trading. The Funds are also exposed to credit risk associated with counterparty non-performance on these forward foreign currency contracts which is typically limited to the unrealized gain on each open contract.

Forward foreign currency contracts will be used primarily to protect the Funds from adverse currency movements and will generally not be entered into for terms greater than one year. The use of forward foreign currency contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward foreign currency contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Statements of assets and liabilities. There were no open forward foreign currency contracts for the year ended December 31, 2007.

Securities lending: The Funds may lend portfolio securities to qualified borrowers, consisting of financial institutions and brokers. By lending such securities, the Funds attempt to increase their net investment income through the receipt of interest on collateral (after rebates and fees). Such income is reflected separately on the Statement of operations. The value of loaned securities and the liability related to the cash collateral received are reflected on the Statements of assets and

liabilities. These loans are secured by collateral equal to at least 102% of the market value of the securities loaned for U.S. securities and 105% of the market value of securities loaned for foreign securities. All cash collateral is invested in the State Street Navigator Securities Lending Prime Portfolio. The market value of the loaned securities is determined at the close of each business day, and any additional required collateral is delivered to the Funds before the end of the following business day. The value of loaned securities and the liability related to the cash collateral received are reflected on the Statements of assets and liabilities.

Futures contracts: The Funds may use futures contracts to manage exposure to the equity markets or for cash management purposes to remain highly invested in the equity markets while minimizing transaction costs. Buying futures contracts tends to increase exposure to the underlying instrument/index, while selling futures contracts tends to decrease exposure to the underlying instrument/index or hedge other investments. Initial margin deposits are made upon entering into a futures contract and variation margin payments are made or received reflecting changes in the value of the futures contracts. Futures contracts are valued at the last sales price as of the close of the board of trade or exchange on which they are traded. Daily changes in the value of such contracts are reflected in net unrealized gains and losses. Gains or losses are realized upon the expiration or closing of the futures contracts, or if the counterparties do not perform in accordance with contractual provisions.

Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts, that a change in the value of the contract may not correlate with a change in the value of the underlying securities, or that the counterparty to a contract may default on its obligation to perform.

Securities purchased on a when-issued or delayed delivery basis: The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. At the time a Fund enters into such transactions, it is required to have segregated assets with a current value at least equal to the amount of its when-issued or delayed-delivery purchase commitments. Credit risks exist on these commitments to the extent of any unrealized gains on the underlying securities purchased and any unrealized losses on the underlying securities sold. Market risk exists on these commitments to the same extent as if the securities were owned on a settled basis and gains and losses are recorded and reported in the same manner. In addition to the normal credit and market risks, transactions with delayed settlement dates may expose the Funds to greater risk that such transactions may not be consummated.

Treasury Inflation-Protected Securities (“TIPS”): The Bond Fund may invest in Treasury Inflation-Protected Securities (“TIPS”), specially structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as

measured by the U.S. Consumer Price Index. The adjustments for interest income due to inflation are reflected in interest income in the Statements of operations.

Targeted Return Index Securities (“TRAINs”): The Funds may invest in TRAINs, which are investment vehicles structured as trusts. Each trust represents an undivided investment interest in the pool of securities (generally high-yield securities) underlying the trust without the brokerage and other expenses associated with holding small positions in individual securities. The Funds carry on their books the current face value of the TRAIN which represents the current face value of the underlying securities. If a security is removed from the TRAIN, the current face value will be reduced equal to the face value of the security. The holder will have the option of receiving their portion of the bond or cash. Accrual payments are based upon the underlying securities so the payment dates coincide with the individual securities in the TRAIN.

Restricted securities: Restricted securities held by the Funds, if any, may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933. The risk of investing in such securities is generally greater than the risk of investing in securities which are widely held and publicly traded.

Distributions to shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Distributions from net investment income, if any, are declared and paid annually for each of the Funds, except for the Money Market Fund, in which case distributions are declared daily and paid monthly. Distributions from realized gains, if any, are declared and paid annually for each of the Funds to the extent they exceed capital loss carryovers.

Accumulated undistributed net investment income and accumulated undistributed net realized gain (loss) on investments may include temporary and permanent book and tax differences. Temporary differences will reverse in subsequent periods and are generally due to differing book and tax treatments for the timing and recognition of gains and losses on securities, forwards, and futures, including Post October losses. Permanent differences will result in reclassifications among the respective components of net assets and are generally due to REITs adjustments, foreign currency transactions, distribution reclassification, and gains on certain equity securities designated and issued by “passive foreign investment companies”.

Income taxes: The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code (“Code”) and will not be subject to income taxes to the extent that they distribute all taxable income each year and comply with various other Code requirements. Therefore, no federal income tax provision is required.

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax

differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended December 31, 2007, permanent book and tax differences resulting primarily from differing treatments for foreign currency transactions, dividend reclassifications and gains and losses from the sale of stock in passive foreign investment companies were identified and reclassified among the components of the Funds’ net assets. Net investment income and net realized gains (losses) as disclosed on the Statement of Operations, and net assets were not affected by these reclassifications.

Foreign taxes: The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest.

Transactions with affiliates: The Funds may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board of Trustees, pursuant to the Investment Company Act of 1940. These transactions are effected at market rates without incurring broker commissions.

Indemnification: In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred.

Also, under the Funds’ organizational documents, the trustees and officers of the Funds are indemnified against certain liabilities that may arise out of their duties to the Funds. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be remote.

Teachers Advisors, Inc. (“Advisors”), a wholly owned subsidiary of TIAA and a registered investment adviser, provides investment advisory services for the Funds pursuant to an Investment Management Agreement between Advisors and the Funds. Under the terms of the Investment Management Agreement, each Fund pays a fee for investment management services, based on the average daily net assets of each Fund. During year ended December 31, 2007, Advisors received the following annualized percentage of each Fund’s average daily net assets:

Total investment management fees incurred for each Fund for the year ended December 31, 2007, are reflected in the Statements of operations.

The Trustees of the Funds, all of whom are independent, receive remuneration for their services, plus travel and other expenses incurred in attending Board meetings. Trustees may elect to participate in a deferred compensation plan and defer all or a portion of their compensation. TIAA oversees the administration and recordkeeping of these deferred compensation plans on behalf of the Funds.

At December 31, 2007, net unrealized appreciation (depreciation) based on aggregate cost of portfolio investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows:

For the year ended December 31, 2007, purchases and sales proceeds of investments, other than short-term investments, were as follows:

The tax character of distributions paid to shareholders during the years ended December 31, 2007 and 2006 were as follows:

As of December 31, 2007, the components of accumulated earnings on a tax basis were as follows:

The difference between book basis and tax basis net investment income, net realized gains and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales, the realization, for tax purposes, of unrealized gains on investments in passive foreign investment companies and futures contracts, adjustments for REIT distributions, and the use of capital loss carryovers.

As of December 31, 2007, the following Funds had capital loss carryovers, which will expire as follows:

For the year ended December 31, 2007, the Growth Equity Fund, Growth & Income Fund, and Money Market Fund utilized $3,786,557, $3,970,549, and $21 respectively, of their capital loss carryover available from prior years.

Each of the Funds, except the Bond and Money Market Funds, participate in a $1.5 billion unsecured revolving credit facility to be used for temporary purposes, including the funding of shareholder redemptions. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by Advisors. Interest associated with any borrowing under the facility will be charged to the borrowing accounts and mutual funds at rates which are based on the Federal Funds Rate in effect during the time of the borrowing. For the year ended December 31, 2007, there were no borrowings under this credit facility by the Funds.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 establishes for all entities a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. FIN 48 is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the date of effectiveness. Management has determined that the adoption of FIN 48 did not have a material impact and therefore no adjustments are reflected to the Funds’ financial statements.

In September 2006, FASB issued Statement of Accounting Standards No. 157, “Fair Value Measurement” (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value under U.S. GAAP and expands disclosure about fair value measurements. SFAS 157 does not require a new fair value measurement but the application could change current practice in determining fair value and may require modifications to financial statements and disclosures. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund’s financial statements.

In our opinion, the accompanying statements of assets and liabilities, including the summary portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Growth Equity Fund, Growth & Income Fund, International Equity Fund, Large-Cap Value Fund, Small-Cap Equity Fund, Stock Index Fund, Social Choice Equity Fund, Real Estate Securities Fund, Bond Fund and Money Market Fund (constituting TIAA-CREF Life Funds, hereafter referred to as the “Funds”) at December 31, 2007, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights for each of the periods in the two year period ended December 31, 2004 were audited by other auditors whose report dated February 25, 2005 expressed an unqualified opinion on those financial highlights.

The results below were certified by Broadridge Financial Solutions, Inc., independent tabulator for the TIAA-CREF Life Funds.

On September 17, 2007, at a special meeting of shareholders, the following persons were elected to serve on the Board:

Nancy A. Eckl was elected to office. Forrest Berkley, Eugene Flood, Jr., Howell E. Jackson, Nancy L. Jacob, Bridget A. Macaskill, James M. Poterba, Maceo K. Sloan and Laura T. Starks continued in office.

The Funds’ Statement of Additional Information (SAI) includes additional information about the Funds’ trustees and is available, without charge, through our website www.tiaa-cref.org or by telephone at 800 223-1200.

For the fiscal year ended December 31, 2007, the TIAA-CREF Life Funds designated the following amounts (or the maximum allowable) as being from Section 1250 gains and net long-term capital gains.

For the fiscal year ended December 31, 2007, the TIAA-CREF Life Funds designate the following percentages (or maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.

The TIAA-CREF Life International Equity Fund received income from foreign sources during the year ended December 31, 2007 of $2,743,585 ($0.411751 per share), and paid taxes to foreign countries during the year ended December 31, 2007 of $337,941 ($0.050717 per share).

Account performance, personal account information and transactions, product descriptions, and information about investment choices and income options

Check account performance and accumulation balances, change allocations, transfer funds and verify credited premiums

Self-directed brokerage accounts for investing in stocks, bonds and mutual funds

Asset management, trust administration, estate planning, planned giving and endowment management

You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit www.tiaa-cref.org, or call 800 223-1200. Please read the prospectus carefully before investing. Investment products are not FDIC insured, may lose value and are not bank guaranteed. TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA/SIPC, distribute securities products. Teachers Insurance and Annuity Association (TIAA), New York, NY, and TIAA-CREF Life Insurance Co., New York, NY, issue insurance and annuities. TIAA-CREF Brokerage Services is a division of TIAA-CREF Individual & Institutional Services, LLC. TIAA-CREF Trust Company, FSB, provides trust services.

2(a) The Board of Trustees of the TIAA-CREF Life Funds (the “Registrant”) has adopted a code of ethics for senior financial officers, including the Registrant’s principal executive officer, principal financial officer, principal accounting officer, or controller, and persons performing similar functions, in conformity with rules promulgated under the Sarbanes-Oxley Act of 2002.

2(c) During the reporting period, there were no amendments to the code of ethics.

2(d) During the reporting period, there were no implicit or explicit waivers granted by the Registrant from any provision of the code of ethics.

2(f) A copy of the current code of ethics is filed as an exhibit to this Form N-CSR.

3(a)(1) The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee.

3(a)(2) Maceo K. Sloan is the Registrant’s audit committee financial expert and is “independent” for purposes of Item 3 of Form N-CSR.

PricewaterhouseCoopers LLP (“PwC”) performs independent audits of the Registrant’s financial statements. To maintain auditor independence and avoid the appearance of conflicts of interest, the Registrant, as a policy, does not engage PwC for management advisory or consulting services.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for the audit of the Registrant’s annual financial statements were $279,155 and $295,000, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for services related to the performance of the audit of the Registrant’s annual financial statements were $0 and $0, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, the Audit-Related Fees billed by PwC to Teachers Advisors, Inc. (“Advisors”) or to any entity controlling, controlled by or under common control with Advisors that provides ongoing services to the Registrant (collectively, “Fund Service Providers”) were $697,000 and $835,700, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for tax services billed to the Registrant were $43,500 and $30,400, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for tax services billed to the Fund Service Providers were $10,000 and $10,000, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for all other services to the Registrant were $0 and $0, respectively.

For the fiscal years ended December 31, 2007 and December 31, 2006, PwC’s aggregate fees for all other services billed to the Fund Service Providers were $0 and $0, respectively.

The Registrant’s audit committee (“Audit Committee”) has adopted a Preapproval Policy for External Audit Firm Services (the “Policy”). The Policy describes the types of services that may be provided by the independent auditor to the Registrant and certain of its affiliates without

impairing the auditor’s independence. Under the Policy, the Audit Committee is required to preapprove all services to be performed by the Registrant’s independent auditor in order to ensure that such services do not impair the auditor’s independence.

The Policy requires the Audit Committee to: (i) appoint the independent auditor to perform the financial statements audit for the Registrant and certain of its affiliates, including approving the terms of the engagement, and (ii) preapprove the audit, audit-related, tax and other services to be provided by the independent auditor to the Registrant and certain of its affiliates and the fees to be charged for provision of such services from year to year.

4(e)(2) Services provided pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (the “de minimis exception”):

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of the Registrant.

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of the Registrant.

4(f) The percentage of hours expended by PwC’s engagement to audit the Registrant’s financial statements for the most recent fiscal year attributable to work performed by persons other than PwC’s full-time, permanent employees was less than 50%.

For the fiscal years ended December 31, 2007 and December 31, 2006, aggregate non-audit fees billed to the Registrant and to its Fund Service Providers by PwC were $1,119,000 and $823,200, respectively.

4(h) The Registrant’s Audit Committee has considered whether the non-audit services that were rendered by PwC to the Registrant’s Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X are compatible with maintaining PwC’s independence.

At December 31, 2007, the value of these securities amounted to $243,200 or 0.32% of net assets.

At December 31, 2007, the value of these securities amounted to $4,733,966 or 5.46 % of net assets.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

(a) An evaluation was performed within 90 days of the date hereof under the supervision of the Registrant’s management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on that evaluation, the Registrant’s management, including the principal executive officer and principal financial officer, concluded that the Registrant’s disclosure controls and procedures were effective for this annual reporting period.

(b) There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s fiscal year-end that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

12(b) Section 906 certification of principal executive officer and principal financial officer

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

12(b) Section 906 certification of principal executive officer and principal financial officer


730 Third Avenue, New York, New York		10017-3206
(Address of principal executive offices)		(Zip code)


		Total return		Average annual total returns
	Inception date	1 year		5 years		since inception*
EQUITIES
Growth Equity Fund	4/3/2000	21.68	%	13.08	%	–3.74	%
Growth & Income Fund	4/3/2000	18.68		15.47		2.41
International Equity Fund	4/3/2000	19.34		24.24		5.51
Large-Cap Value Fund	10/28/2002	0.91		15.67		15.53
Small-Cap Equity Fund	10/28/2002	–5.62		15.72		16.11
Stock Index Fund	1/4/1999	5.16		13.54		4.44
Social Choice Equity Fund	4/3/2000	4.25		13.34		2.06
Real Estate Securities Fund	10/28/2002	–16.12		17.53		18.13

FIXED INCOME
Bond Fund	7/8/2003	5.60		—		3.94
Money Market Fund†	7/8/2003	5.34		—		3.44


NET ANNUALIZED YIELD (30-day period ended 12/31/2007)			NET ANNUALIZED YIELD (7-day period ended 12/24/2007)
	Effective			Current		Effective
Bond Fund	5.21	%	Money Market Fund†	4.71	%	4.83	%


	Total return		Average annual total returns
	1 year		5 years		since inception
Growth Equity Fund (inception: 4/3/2000)	21.68	%	13.08	%	–3.74	%*
Russell 1000 Growth Index	11.81		12.10		–3.68	*
Morningstar Large Growth	13.35		12.75		–1.44


Growth Equity Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	1,115.80		$	1.39
5% annual hypothetical return		1,000.00		1,023.89	†		1.33


Report on the TIAA-CREF Life Funds		2

More information on the TIAA-CREF Life Funds		4

Special terms		5

Important information about expenses		6

Fund performance
Growth Equity Fund		7
Growth & Income Fund		11
International Equity Fund		15
Large-Cap Value Fund		19
Small-Cap Equity Fund		23
Stock Index Fund		27
Social Choice Equity Fund		31
Real Estate Securities Fund		35
Bond Fund		39
Money Market Fund		43

Summary portfolios of investments		47

Financial statements
Statements of assets and liabilities		86
Statements of operations		90
Statements of changes in net assets		94
Financial highlights		102
Notes to financial statements		112

Report of independent registered public accounting firm		122

2007 special meeting		123

Management		124

Important tax information		132

How to reach us		Inside back cover


Net assets	$	42.38 million
Number of holdings		83
Portfolio turnover rate		154	%
Weighted median market capitalization	$	39.88 billion
P/E ratio (weighted 12-month trailing average)		25.4
Dividend yield		0.83	%
2007 expense ratio‡		0.26	%


		% of portfolio investments
Manufacturing & materials		32.6
Consumer products & services		32.0
Technology		14.8
Financial		12.1
Energy		5.9
Transportation		1.2
Utilities		1.1
Short-term investments		0.3

Total		100.0


		% of portfolio investments
Over $15 billion		83.57
$ 4 billion–$15 billion		16.08
Under $4 billion		0.35

Total		100.00


Growth & Income Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	1,070.70		$	1.25
5% annual hypothetical return		1,000.00		1,024.00	†		1.22


Net assets	$	83.83 million
Number of holdings		134
Portfolio turnover rate		88	%
Weighted median market capitalization	$	60.79 billion
P/E ratio (weighted 12-month trailing average)		19.5
Dividend yield		1.64	%
2007 expense ratio‡		0.24	%


		% of portfolio investments
Manufacturing & materials		27.1
Consumer products & services		25.0
Financial		17.5
Technology		17.5
Energy		8.9
Utilities		3.4
Transportation		0.1
Short-term investments		0.5

Total		100.0


		% of portfolio investments
Over $15 billion		83.45
$ 4 billion–$15 billion		11.13
Under $4 billion		5.42

Total		100.00


International Equity Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	1,039.60		$	1.70
5% annual hypothetical return		1,000.00		1,023.54	†		1.68


Net assets	$	160.04 million
Number of holdings		107
Portfolio turnover rate		190	%
Weighted median market capitalization	$	40.19 billion
P/E ratio (weighted 12-month trailing average)		17.0
Dividend yield		1.86	%
2007 expense ratio‡		0.33	%


		% of portfolio investments
Over $ 15 billion		71.46
$ 4 billion–$15 billion		13.04
Under $4 billion		15.50

Total		100.00


Country		% of portfolio investments
Germany		29.2
France		13.8
Switzerland		11.8
Japan		10.9
Hong Kong		9.6
United Kingdom		8.5
Italy		4.6
Russia		4.4
Finland		3.1
5 other nations		4.1

Total		100.0


		% of portfolio investments
Manufacturing & materials		41.9
Financial		19.4
Consumer products & services		19.3
Transportation		8.6
Utilities		7.3
Technology		1.7
Energy		1.0
Short-term investments		0.8

Total		100.0


Large-Cap Value Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	922.30		$	1.31
5% annual hypothetical return		1,000.00		1,023.84	†		1.38


Net assets	$	71.35 million
Number of holdings		189
Portfolio turnover rate		133	%
Weighted median market capitalization	$	35.72 billion
P/E ratio (weighted 12-month trailing average)		15.6
Dividend yield		2.18	%
2007 expense ratio‡		0.27	%


		% of portfolio investments
Financial		28.3
Consumer products & services		19.2
Manufacturing & materials		17.1
Energy		14.5
Technology		13.6
Utilities		5.6
Transportation		1.7

Total		100.0


		% of portfolio investments
Over $15 billion		70.91
$ 4 billion–$15 billion		17.41
Under $4 billion		11.68

Total		100.00


Small-Cap Equity Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	884.60		$	0.52
5% annual hypothetical return		1,000.00		1,024.65	†		0.56


Net assets	$	51.87 million
Number of holdings		554
Portfolio turnover rate		135	%
Weighted median market capitalization	$	1.18 billion
P/E ratio (weighted 12-month trailing average)		20.3
Dividend yield		0.85	%
2007 expense ratio‡		0.11	%


		% of portfolio investments
Manufacturing & materials		30.8
Consumer products & services		30.6
Financial		17.1
Technology		12.0
Energy		5.0
Utilities		3.2
Transportation		1.3

Total		100.0


		% of portfolio investments
$4 billion–$15 billion		3.92
Under $4 billion		96.08

Total		100.00


Stock Index Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	981.80		$	0.30
5% annual hypothetical return		1,000.00		1,024.90	†		0.31


Net assets	$	184.34 million
Number of holdings		2,764
Portfolio turnover rate		13	%
Weighted median market capitalization	$	37.82 billion
P/E ratio (weighted 12-month trailing average)		17.6
Dividend yield		1.77	%
2007 expense ratio‡		0.06	%


		% of portfolio investments
Consumer products & services		23.5
Manufacturing & materials		23.3
Financial		19.5
Technology		15.8
Energy		10.9
Utilities		4.2
Transportation		2.0
Short-term investments		0.8

Total		100.0


		% of portfolio investments
Over $15 billion		68.53
$ 4 billion–$15 billion		17.62
Under $4 billion		13.85

Total		100.00


Social Choice Equity Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	979.30		$	0.35
5% annual hypothetical return		1,000.00		1,024.85	†		0.36


Net assets	$	37.88 million
Number of holdings		837
Portfolio turnover rate		12	%
Weighted median market capitalization	$	29.81 billion
P/E ratio (weighted 12-month trailing average)		17.7
Dividend yield		1.77	%
2007 expense ratio‡		0.07	%


		% of portfolio investments
Manufacturing & materials		25.5
Consumer products & services		22.5
Financial		20.3
Technology		15.5
Energy		8.3
Utilities		5.5
Transportation		2.4

Total		100.0


		% of portfolio investments
Over $15 billion		67.35
$4 billion–$15 billion		20.52
Under $4 billion		12.13

Total		100.00


Real Estate Securities Fund	Starting fund value (7/1/07)		Ending fund value (12/31/07)			Expenses paid* (7/1/07– 12/31/07)
Actual return	$	1,000.00	$	889.60		$	1.29
5% annual hypothetical return		1,000.00		1,023.84	†		1.38