Investment in insurance is one of the best and most important financial decisions. Insurance company should conduct proper market research before introducing insurance policies. So that the sale of the policy is easy and policy holder are also well satisfied when their needs are fulfilled. A well developed and evolved insurance sector is needed for economic development as it provide long term funds for infrastructure development and at the same strengthen the risk taking ability. Life insurance acts as a tool and source for saving money. Investors can take up a variety of policies to secure future and save money lifelong. There are various policies which will benefits investors when they invest in them as early as possible. Life insurance helps to get profit through a vast number of policies if the investors invest in such a profitable policy, at the end of the term they get benefits of it. Therefore it is an instrument which helps the investors for a long time and achieves their goals. This paper focus on the role of insurance as an investment and tax saving strategy for the insured , review of previous studies, and the various schemes introduced by Life Insurance Corporation. It also includes the major findings of the study and also the attempt is made to provide some of suggestions.