We're not talking about car insurance. You might have insurance on your own car to help with the repairs if you're unlucky. We're not talking about house insurance, either. You pay a relatively small premium against the chance that the house burns down. It's to cover disaster, and your own loss.
LIFE insurance is something else.
It doesn't go to you, if the insurance is on you. It goes to somebody, or something, that you care about. In the nineteenth century, when wives worked only at home, life insurance was supposed to keep the family going if something happened to the breadwinner. Consequently, even after nearly a century of the income tax, the proceeds of Life Insurance are tax free. Uncle Sam wants you to have life insurance.