Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide this protection. A loss is paid out of the premiums collected from the insuring public and the insurance companies act as trustees to the amount collected.

Life Insurance Corporation of India (LIC of India) is a statutory corporation formed under the Life Insurance Corporation of India Act, 1956. Under this act, the Government of India nationalised the business of life insurance and the newly formed LIC of India took over the assets and liabilities of all the existing insurance companies. LIC of India has since then been the sole provider of life insurance in India till the recent privatization of the insurance sector. It has also diversified into areas like housing finance and management of mutual funds.