The basic purpose of insurance is to transfer the risk that you are not willing or unable to take, to a company that is willing to take the risk in return for compensation. Its objective is to protect the family income in the event of death or disability of the bread winner. Thus the risk of loss of income is passed on to the insurance company.
The key theme expounded in life insurance sales is "protection". God's command for the household bread winner in 1 Tim 5:8 is to provide for his family. In today's context, it is possible that your spouse may have to go to welfare if they are not protected.
When buying insurance, one must always have a long-term view. Typically, when you are young and trying to accumulate money, starting a family, having children, you will have a large need for insurance but usually not able to afford much with a limited sum of money. That will be a balance of finances. In your thirties and forties, you do not know what your future will be like in your sixties and seventies. Having a permanent insurance available at this stage is wise financial planning.
You may ask: Is insurance scriptural? The Bible has no mention of insurance and therefore assumed to be not scriptural. However, just like Joseph, it would be wise to store up for your family that they may survive a famine. In today's uncertain economy, having a plan to provide for your family is a command in scripture.