Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Insurance Companies deal in two main areas - Life insurance and General insurance. With the liberalization and opening up of this field several companies have come up in the field of Life insurance and general insurance. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. Insurance is a contract in writing under which insurer agrees in return for a consideration (premium) to indemnify the insured against the loss suffered on account of an uncertain future event. Life insurance is a contract for payment of a sum of money to the person assured on the occurrence of the event insured by the contract. The book covers all important issues pertaining to the theme.