Abstract: Nigeria is a country where the average selling or purchase of Life insurance policies is still lower than many western countries. This has led to a considerable unexplored potential of life insurance in Nigeria. With so many life insurance products available, one continues to wonder why the majority of Nigerian population does not have any life policy. This resulted into finding out what factors play very important role in life insurance policies purchase. The objectives of the study were to evaluate the factors underlying consumer perception towards investment in life insurance and to compare the differences in consumer perception of male and female consumers. Total 150 cooperated for this study, item to total correlation was applied to check the consistency of the questionnaire. The measures were standardized through computation of reliability and validity tests. Factor analysis was applied to identify the underlying factors. The z-test was applied to find out the significant differences between male and female investors. The findings of this study provide important insights to the insurance companies in designing their product-mix. Therefore, consumers who intend to buy the insurance products will have a list of factors and thus can take an informed decision in selecting an insurance product. The study will also assist in improving the market share of companies and further help in the development of the insurance sector. The recommendations are that the insurance companies should concentrate on consumers’ loyalty, service quality, ease of procedures, satisfaction level, company image and company-client relationship.