For economic development, investments are necessary. Investments are made out of saving. A life insurance company is a major instrument for the mobilization of saving of the people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth. The insurance act has strict provisions to insure that insurance funds are invested in safe avenues, like government bonds, companies with record of profits and so on.
The LIC is not an exception. All good life insurance have huge funds, accumulated through the payment of small amounts of premia of individuals .Theses funds are invested in ways that contribute substantially for the economic development of the countries in which they do business. The private Insurer in India are new and have accumulated funds equal to about one-eighth of the L.I.C’s.But even their investment in the various sectors and contributing the directly and indirectly to the country’s economic development, would be of similar proportion.

In a preprinted policy form, the standard policy condition and privileges are printed. If any of them need modification, in keeping with the terms of acceptance endorsement are attached to the policy .If a condition in the pre-printed policy is not applicable, the same will be cancelled by rubber stamping the clause accordingly. If the individual policies are printed by computers, such endorsement and cancellation may be avoided.
During the currency of the policy, alteration may be effected in the age , plan or a term, sum assured, mode of premium payment,etc.Seprate endorsement will be placed on and kept attached to the policy document, to indicate such changes.
Nominations made subsequent to the issue of the policy are to be made to the policy itself as endorsement. Assignment can also be made on the back of the policy. If made on the separate stamped deeds, then these deeds as well as the notice issued to the issuer become important documents.

In a contract of insurance, the insurance promise to pay to the policyholder a specified sum of money, in the event of specified happening. The policyholder has to pay specified amount to the insurer, in consideration of this promise.’Primium ‘is the name given to the consideration that the policyholder has to pay in order to secure the benefits offered by the insurance contract. It can be looked upon as the price of insurance policy. It may be a one- time payment. That is not common. Often it has to be paid regularly over a period of time.
The calculation of a premium is a complex technical process, involving actuarial and statistical principles .Only trained professionals, called actuaries, do it. Tables of premium rates for each plan of insurance are made available by insurance companies for the use of agents, who are required to quote premium for a particular policy being offered to a prospect.

The business of insurance is related to protection of the economic values of the assets very asset has a value .The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it meets some of its needs. The benefits may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of motor car, it provides comfort and convenience in transportation. There is not direct income. Both are assets and provide benefits.
Every asset expected to lose for a certain period of time during which it will provide the benefits. After that the benefits may not be available. There is life time for machine in a factory or a cow or motor car. None of them will lose forever. The owner is aware of this and he can so manage his affair that by end of that period or life time, a substitute is made available, thus he makes sure that benefits is not lost. However the asset may get lost earlier. An accident or some other unfortunate reasons or events may destroy it make incapable of giving the benefits. The planned substitute would not have been ready. There is an adverse or an unpleasant situation. Insurance is a mechanism that helps to reduce the effect of that adverse situation. It promises to pay to the owner or the beneficiary of the asset, a certain sum if the loss occurs.