The spread of Life insurance corporation in rural area is very low. At the instance of Government of India the Life Insurance Corporation of India has introcduced a new scheme y name Rural Group Life Insurance Scheme to provide social security cover to rural families by way of life insurance since 15-08-1995. Any person insured under this scheme would be eligible for a life cover of Rs.5000/- . There are two types of policies available under this scheme.

• General : Available to all people in rural areas.The premium for this policy is fully payable by the applicant.
• Subsidised Scheme: This is applicable only to households below poverty line and is restricted to only one policy per household . Premium is subsidised by 50% to be shared equally by state and central government.

Scheme is implemented through Gram Panchayats and Taluk panchayats.