Most of the Indians have LIC policy. And this despite the fact that get a measly 3-5% returns on their insurance plans. LIC agents have been mainly responsible for selling insurance as an investment. With the advent of term plans, people have become more aware and are now buying life insurance just to for financial protection.
I am sure that in the next 10-15 years private insurers will give hard competition to LIC just like ICICI, HDFC and Axis did in the banking sector. With falling interest rates, LIC’s returns will fall even further!