Primarily, one must understand that an insurance is not an investment. Taking an insurance policy purely a personal decision. The main aim of an insurance policy is to provide a financial protection to the family members in the event of death or any other unfortunate incident.
There are various types of insurance policies catering to the needs of the individuals. Some insurance policies pay out at the date of maturity and some provides benefits only to the dependents only after the death of the insured. Based on the coverage, purpose and tenure, the premium cost of the policies differs.
Not providing a financial cover to your family, an insurance policy gets you tax benefits for up to 1.5 lakhs under section 80C of the Income Tax Act.