The insulation should just prevent air from passing freely and also ensure that the air present there doesn't "blow away." Today, it's not uncommon to use sealing "foam rubber," which is placed in the outer and inner edges of the frame against the structure. This means that as long as you make sure there are no "holes" in the insulation, anything that prevents air from moving freely is acceptable. Fiberglass, mineral wool, flax fiber, etc. It's also good if it doesn't absorb moisture, so for example, cotton might not be the best choice
