The Indian insurance sector is said to be the tenth largest insurance market in the world and is projected to move up the ladder surpassing South Korea and Germany to the 6th spot . On a macroeconomics scale, growth of the insurance sector influences the economy in a positive way and on a microeconomics scale, growth of the insurance sector plays a key role in shaping the finances of individuals in not just risk aversion but also as a saving mechanism thereby increasing the wealth of an individual. The purpose of this paper is to analyse the key role played by insurance in financial planning of an individual and the existing scenario of insurance in personal finance in India. It also analyses the role of the government in making insurance more accessible to the people.
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