Insurance is an arrangement to deal with unpleasant contingencies. It is a contractual arrangement which provides partial or total protection against adverse, typically financial outcomes. While there are many outcomes or risks which are insurable, there are many more against which there can be no insurance. Broadly insurance can be divided into life and non-life insurance. Life insurance in particular provides protection to a household against the risk of premature death of its income earning member. In traditional societies such as India, the joint family system itself provided an insurance umbrella and succor to surviving family members. In modern times such arrangement are now increasingly made through the market mechanism by “buying insurance”. Thus individuals pay a price (called the ‘premium’) to the insurance company for such a contractual arrangement, and the insurance company in turn, provides. Compensation if a specified event occurs. By making such contractual arrangements with a large number of individuals and organizations the insurance company can spread the risk. This gives insurance its “social” characteristics, in the sense that it entails pooling of individual risks.