The primary need is buying financial security for your family. Other aspects that insurance helps fulfill are:

Tax benefits

The Tax exemption available under our insurance and pension policies are described below:

Under Sec.80C of the Income Tax Act
Premiums paid upto maximum of Rs.1,00,000/-, subject to maximum of 20% of Sum Assured ,to effect or keep in force an insurance on the life of the individual, the spouse and any child of the individual.
Under Sec.80CCC of the Income Tax Act
Premiums paid upto maximum of Rs. 1,00,000/- to effect or keep in force a contract of annuity plan for receiving pension.

However, u/s.80 CCE, the aggregate amount of deduction under section 80C, section 80CCC, and section 80CCD shall not, in any case exceed Rs. 1 lakh

Under Sec.80 D of the Income Tax Act
Premiums paid (other than through cash) towards Critical Illness Rider, subject to a total maximum of Rs.15,000/- (an additional Rs 5,000 for senior citizens) to effect or keep in force an insurance on the health of the individual, spouse and dependent parents or children.
Maturity Benefits are exempted Under Sec.10(10D) of the Income Tax Act.
Maturity benefits are tax free. However in cases where premium exceeds 20% of Sum assured in any year, benefits paid in excess of premiums paid will be taxable.

As a tool of financial planning

Most insurance plans available today have a built in savings element. Plans like the Kotak Endowment Plan, Kotak Money back Plan, Kotak Child Advantage Plan, Kotak Preferred Retirement Plans, etc allow you to meet your dual financial goals of life cover and Savings for the future. Collateral security for loans

You may avail of a loan from the insurance company against certain plans. Your policy could also be pledged as a collateral to raise funds from banks and other financial institutions. In case of your unfortunate death the loans may be repaid from the proceeds of the life insurance policy. Savings

Insurance promotes compulsory savings with regular premium payments and helps build up a corpus of funds along with financial security for the dependants in case of premature death. For your medical needs and that of your family

Hospitalization costs and quality healthcare is becoming increasingly expensive. Without insurance, you can actually face a situation where you have withdrawn all your money and borrowed to pay the medical bills. This can be provided with our Critical Illness Benefit. Insurance provides you the option of covering yourself towards any critical illnesses that can become extremely costly. Choosing this facility pays you a lump sum upon diagnosis of certain diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital organ transplants, Alzheimer’s disease, paralysis, etc.

Life insurance is not likely something most people like to think about. Unfortunately, it is something everyone should think about. If you were to die today would your family be financially able to cope? The loss of a loved one is devastating enough, but when coupled with financial difficulties it can really take a toll. Funeral expenses are pretty high and if the person was the main income earner then that in additional to the funeral expenses can mean financial troubles for the surviving family members.

Personal insurance is a way to safeguard your family after your death. This insurance should cover your funeral expenses, as well as provide a nice chunk of money to go towards living expenses for your family. While death may not be something you want to think about, life insurance is something worth thinking about.

When shopping for life insurance, like with buying any insurance, there are a lot of different options. You should shop around to get the best coverage for the best rates. Avoid the temptation to get an excessive amount of life insurance. Many times people get too much insurance. While it is nice to make sure your loved ones are well taken care of when you die, you have to keep in mind that you’ll be paying the premiums until then.
Additionally, many of your other insurance coverage may have clauses that will produce money upon your death. For instance, many automobile insurance policies carry a payoff in the event of the main policy holder’s death. What that means is any outstanding loan on the vehicle would be paid upon your death. That’s one less bill your family would have to worry about and that’s less money they would need.

Life insurance is simply something that is there for whenever it is needed. You can structure a policy any way you want it so your family won’t have to deal with financial difficulties when you pass away. They can focus on saying goodbye and healing instead. Having a good life insurance policy means you will still be there, taking care of them even when you are gone.