Human life is a most important asset and life insurance is the most important type of insurance which provides financial protection to a person and his family at the time of uncertain risks or damage. Life insurance provides both safety and protection to individuals and also encourages savings among people. People's perception of insurance has also changed from an instrument of saving to a risk-hedging tool. This change has been facilitated by the emergence of a range of new insurance products suiting the diverse needs of consumers Lic of india plays a vital role in the welfare of human well-being by providing insurance to millions of people against life risks such as uncertain death or accident. The present exploratory and descriptive based study was selected with an objective to identify those factors which influence customers policy buying decision and also analyze the preferences of customers while life policy investment decision-making. The data for the study has been collected from both primary and secondary sources. The study area is limited to Thrissur district and the sample size is 150 insurane policyholders of by using purposive sampling method.. The paper concludes with that demographic factors of the people play a major and pivotal role in deciding the purchase of life insurancepolicies.