Insurance is a tool to compensate financial loss. It is not a tool to save your money or grow; rather it is an expense, overcoming the stress of losing money or assets through any exposed risk.
Some investors might think to ignore insurance while planning personal finance as it does not directly relate to your retirement, education, and vacation planning etc .But since we are planning for our life during some future periods, we also need to survive and safeguard our earning or financial assets till that period. If we do not safeguard the assets, we might make losses and might lose the assets which play an important role in smooth execution of our financial planning process.
So no financial planning is complete without insurance.Infact without insurance no financial planning can be executed. The insurance planning therefore becomes important, no matter if the contribution do not add to the retirement kitty. Insurance is an important element of any sound financial plan. Different kinds of insurance protect in different ways against the cost of perils like accidents, illness, disability, death, fire, flood, earthquakes, theft etc.The insurance decisions is made based the value of the asset, its life, the kind of risk exposed on the asset, the priorities of insuring various assets etc.Therefore apart from these factors there might be various others factors depending on people to people and the nature of assets.
Therefore a proper financial planning designed by a CFP, along with other asset class would actually complete the financial planning process.