This study is an attempt to shed light on the position, performance and potentials of the insurance industry, problems that beset the performance of its financial intermediation functions, explain and measure the magnitude of its contributions to the financial sector of the Philippine economy. It aims to assessing the contributions of the insurance industry to the entire financial system is definitely necessary for a proper assessment of the growth and potential growth trend of the entire economy. The coverage of this study is the entire private insurance sub-industry, it concentrated solely on the life insurance sector of the sub-industry for ease and clarity purposes. In conducting this study, the researcher made use of a combination of the historical and descriptive survey approaches. The researcher administered a survey questionnaire to the 23 life insurance companies operating in the country to gather data mainly on the problems beseting the industry and its future outlook.