The study is particularly pointed on the problem that is obstacle to the society to participate in life insurance coverage. It emphasized on the problem that affect development of life insurance in south western Ethiopia. The studies mainly focus on identifying and analyzing individual views to the life insurance with key objective of assessing problem that affect the development of life insurance. The study was used descriptive research. The researches were used both primary and secondary. Primary data were collected through questionnaire (open end and close end questionnaire), the questionnaire were distribute by simple random sampling technique, addition to questionnaire primary data were collect through direct observation in the Lucy insurance company site and secondary data collect from the website and document of deferent insurance company operating their business in the study area . The culture and religious also in some rate affects the society. Generally, major operation problem in life insurance converge is seen both in insurance company and the society public has no full and adequate knowledge towards life insurance and other insurance policies. In order to curve these multiple problem the company should be announce its service to the society through different channels.