This article is about the development tendencies of life insurance sector in Baltic States since 1990 to nowadays. There are some important theoretical traits of life insurance reflected necessary to obtain wider percept and understanding about this sphere. Large attention is paid to the analysis of consequences about the changes in legislation concerning changes in life insurance sector in Latvia. The ratios are compared to corresponding data from other Baltic States. It gives the possibility to do analysis of Latvia’s , Lithuania’s and Estonia’s upgrowth possibilities in life insurance sector for future considering the prognosis of specialists in this field and the world praxis. The establishment of the third pension pillar and selling are adduced as one of the most successful development potentials.