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The life insurance is indeed the most important among all forms of insurance for all human being. The theory of insurance can be understood in general terms that the good fortune of the many compensates for the misfortune of the few. The insurance is used as a social security device for meeting out the unforeseen losses arising through a certain risk out of accumulated funds. The cost of such miss happenings cannot be met by any one individual, and so the insurance company chargedsome nominal amount in exchange for the risk undertaken. However there is an increase in investment oriented products in the market and as a result has tended to overshadow the primary purpose of protection against premature death.