The Indian economy is, today, one of the fastest growing economy of the world. High growth rate is witnessed by rapid increase in gross domestic savings and rising share of household sector savings in it. It has significantly affected the growth of life insurance sector in India. Economic growth and demand for life insurance are closely interlinked. Life insurance could be considered as a factor fostering economic growth specially during corona pandemic and economic growth would also create demand for life insurance. Life Insurance is one of the means to save and invest. A strong life insurance industry promotes a developed contractual savings sector, which contributes to a more resilient economy. Life insurance is one of the best tax saving options today. This industry provides a large number of employment opportunities. It has a positive impact on the economy in terms of income generation. Life insurance business is also influenced by the rate of growth of gross domestic product, the rate of growth of population, per capita income, demographic pattern, inflation level the levels of domestic savings, etc.

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Keywords: Indian Economy, Economic Growth, Life Insurance, Inflation, Domestic Savings.