Bangalore: Along the financial road of life arise the inevitable emergencies and breakdowns. Some are small, which you can pay for out of cash flow, a cash emergency fund or even investments. But others are major and expensive setbacks. That's when you need insurance. There are so many different types of policies available in the market today that investors are often left wondering as to what purpose they all serve. You need an insurance policy at every stage of life. But first look at available in the market for various needs. And then based on your needs pick the best policy. Your needs and demands keep changing and growing. For instance when started a new family you found it necessary to have a life policy, then when you began achieving your long term goals of buying a house or a car you had to purchase a house insurance or an auto insurance. The basic purpose of insurance is to serve as hedge against risks. Therefore, you need an insurance policy for different stages of life, and to pick the right policy suiting your needs and income is a real challenge. Life Insurance Many consider life insurance as a potential investment for future. Before buying insurance, you must decide what is right for you and your family. Think about savings and cost. As investors you should be able to strike a balance between the risk cover and investment in the insurance portfolios. Customers by default make choice based on the agent's incentives rather than the pull of the product. Think about your tax situation. If you are in a high tax bracket, permanent insurance may be good because the savings built up in the policy are tax-deferred. If you avail a permanent insurance, the benefit you receive is that the face value of the life insurance policy will be available to your family immediately after your death. On the other hand with the ordinary investments your family may have to wait for the benefits or be forced to sell investments at a loss.