Life Insurance in India and its Historical Perspectives

Life insurance provides individuals with a number of important financial services. In the face of increasing urbanization, mobility of the population, and formalization of economic relationships between individuals, families, and communities, life insurance has been considered as a way for individuals and families to manage income risk in future which is uncertain. Also, life insurance products encourage long-term savings and the re-investment of substantial sums in private and public sector projects, because life insurance products offer a means of disciplined contractual saving contrary to the investment in stock markets although long term returns are quite low in life insurance investments. This paper attempts to discuss theoretical aspects of life insurance in India and also history of life insurance in India.