Life insurance is a contract between an insurance company and the insured to pay a life benefit on death of the insured if it occurs within a certain period in return for payments called premiums. Kenya and the East African region has been experiencing a sustainable economic growth and as a result very high demand for life insurance products for the last two decades necessitating improvement of the capacities provided by life insurance companies. There are a number of foreign and Kenyan insurers operating in the Kenyan market. Analysis and understanding of computational methods used in life insurance is very important. This will enable the insurers to better prepare their marketing strategies as per the requirements of the prospective customers in Kenya. A lack of interest or demand for life insurance cover and high cost for policies are the main challenges facing the life insurance industries.