There are several types of insulation available today with various advantages and disadvantages of each. The primary purpose of insulation is to provide a "blanket" of material to increase the thermal resistance (or R value) of your home's structure. The higher the R-value, the less energy you will lose through the walls, ceilings and floors of your home.
Just as a coat keeps you warm in the winter, so insulation can keep your home warm in the cold seasons. But insulation has another advantage - it will also lower cooling bills in the summer, since it will make your house more energy efficient regardless of the outdoor temperature.