A CRITICAL STUDY ON RISK IN LIFE INSURANCE

Abstract

Insurance Industry is one of the cornerstones of any economy which plays 
an important role in mitigating life’s uncertainties. It has not only been playing a leading role within the financial system in India but also has a significant socio-economic function, making inroads into the interior of the economy. Since, nationalization it has registered a significant growth and has gradually increased its share in household financial savings. Hence it is considered as one of the fast-developing areas in the Indian financial system. 
Life Insurance facilities long term savings through easy instalments, new housing loans and ordinary loans for meeting urgent financial commitments. Policyholders are also desirous for their old age requirements. The life insurance corporation also offers pension linked life insurance policies to persons nearing retirement from employment. In a large number of cases, the policyholders take life insurance policies for the benefit of the dependants and some people adopt life insurance for the purpose of tax planning. Every person takes up life insurance policies providing adequate insurance cover for dependents.