Investing in Life insurance companies may appear risky as these businesses consist of long-term products and services, and also require high initial acquisition costs.

Therefore, a financial statement that provides the current year’s realized income, with the entire acquisition cost charged upfront, provides an incomplete picture of value creation and profitability is what one should look at on investing in these companies.

So, we will discuss some key financial parameters that you can use to analyze Life Insurance (LIC) companies before investing in them.