This study basically revolves around the life insurance sector which has been opened for the private life insurers in the beginning of 20th century. Life Insurance Corporation of India  (henceforth, referred to as LIC)  for a long period of time has enjoyed a monopoly in life insurance sector and the fact cannot be denied that LIC has a pre accomplished market leadership which makes it difficult for the new players to compete. While the new players struggle to increase their market share in India, LIC continue to leverage advantage of its old establishment and government support for maintaining its growth. Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 49% now which was earlier 26%. Opening up of life insurance sector was like a threatening bell for LIC. Innovative products and high level of customer services given by private life insurers forced LIC to look at their performance. This paper is an effort to understand the current states of affairs in life insurance sector and also to compare the LIC with private players.