The study tries to find out the most important factor influencing an individual in selecting LIC or the private insurance companies as an investment vehicle. A well-structured questionnaire was used for collection of data from the 100 respondents of Trichy region. Simple statistical tools were employed for analysis of data. Most of the respondent's, i.e., 74% of them have taken LIC policies for the purpose of safety and security. The respondents feel that private sector insurance companies give high returns with high risk.

Life insurance is a must for everyone because we never know about our future and what is going to happen the next minute. It is obvious that nothing can replace a lost life, but life insurance still helps in partially compensating the loss monetarily. It at least gives financial support to the dependants of the deceased person. Life insurance companies have a wide range of policies, suiting every need, right from financial needs of marriage, giving birth and rearing up a child and his education, meeting daily financial needs of life, and also pension solutions after retirement. Every aspect and need of one's life is covered along with the death benefit. It is totally for the insured to choose the right plan judicially and stay tension-free. It has been rightly said that life insurance is with life and after life too.

In the post-liberalized era in India, there has been phenomenal growth in the insurance sector. With a population of over one billion, national and international life insurance companies, see India as a land of opportunities and a market for big business. Until 1999, the business of life insurance in India was the monopoly of Life Insurance Corporation of India (LIC). However, now consistent growth has been observed in the private insurance markets.

The life insurance market in India is emerging and growing at the rate of 32-34% in the year 2009. The state-owned life insurer, LIC, along with 13 private players, mopped up Rs. 104 bn premiums in the month of January 2009. The new insurance policies grew by 34.91% at 4,363,421 as against 3,234,209 in the previous year of 2008.

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