The present life insurance market of India is US$40 billion and is expected to be US$80 to 100 billion by 2012. . The average Indian now spends 5.4 times as much on life insurance than seven years back when the industry was not open to private players. Life-insurance companies pumped Rs1.5 trillion ($37.3 billion) into the equity market in fiscal 2006-07, which is almost five times total FII investments. Insurance premiums in India have risen from 1.2% to more than 4% of gross domestic product we see the age structure of India then we will find that only 5percent of total population is above 60 years old and 40 percent of the population is below 15 years old. That means the rest 55% (= approximately 568 million) of the population are between the age group of a15 to 60 years. More than 110 million Indians are expected to be over 60 by 2016, a figure that could rise to almost 200 million by 2030.