Life insurance sector is a great invisible creditor to many entrepreneurs and also providing finance to many Government organizations purchasing bonds. Customer is a person who buys products or services for his own consumption or for his family members. In case of life insurance, customer buys a policy holder either on his name or his family members’ names. The present paper is an assessment of customer perception towards life insurance and services provided by agents, employees, general services of the life insurance companies, and awareness on certain issues like GST, IRDA in three companies namely LIC of India, SBI Life Insurance Co.Ltd and ICICI Prudential Life Insurance Co.Ltd. The study is based on primary data collected by obtaining responses to a questionnaire from 238 respondents consisting employees, business persons, professional and self employed. Tools like Kolgomorov-Smirnov D Test and Garret Ranking Test and chi square test have been used. Five point Likert scale has been used to examine the respondents’ perception. It has been found that there is difference in ratings given by the respondents on the services in the organizations and Tax Savings was given highest priority for purchasing a life insurance policy. The agent is the main channel to buy a policy but some agents do not have knowledge on basic concepts of insurance. Though respondents were satisfied with the general services, organizations are showing reluctance at some places. Most of the policy holders do not know how to utilize digital services. It is the responsibility of the agents, employees to educate the policy holders on GST, IRDA, consumerism and digital services. Every insurer has to understand the needs of the policy holders. Customer loyalty must be given priority because life insurance is not one time sale; as the income grew the policy holder may buy an additional and different policy. Increasing the penetration by reaching the remote areas and masses is necessary and it is possible with digitization.