Life Insurance is a contract for the payment of a sum of money to the person assured or nominee on the happening of the event insured against. Usually the contract provides for the payment of an amount of money on the date of maturity or at specific dates at periodic intervals or an unfortunate death, if it occurs earlier. It is said to be superior to other forms of savings because of protection, aid to thrift, liquidity, tax relief etc. Any person who has attended majority is eligible to enter into a valid contract can take out a life insurance policy for himselfherself and for those in whom he or she has insurable interest. In India, Life Insurance Corporation of India Ltd. LIC is the biggest company dealing in life insurance business. LIC was established as a statutory corporation under the Life Insurance Corporation Act of the Parliament which received the consent of the Government on 18th June 1956. The Act came into force on 1st July 1956 and the Corporation began to function w.e.f. 1st September 1956, since then carrying on life insurance business in India.