Off late, travel insurance is compulsory while traveling abroad. Traveling insurance covers all the charges if you fall sick, lose your belonging etc while traveling abroad.
It is an essential document while requesting for a visa. If you already have a traveling insurance policy you need to only provide the document, if you don’t you will have to get one. I recommend you buy one from the agency that is helping you with your visa, this is the cheapest method. If you buy it separately it might be slightly expensive.
Most travel agencies have a tie up with an insurance company, which can be very beneficial for you. If not ask them for recommendations and the agent will help you out with the same.