How Does Life Insurance Differ From Other Insurance? 
Life insurance is the same as other insurance in that they are based on the idea of pooling a risk . However , other insurance policies are contracts of indemnity . They are insuring against something that might happen . Human mortality is stuck at 100 % . As a result to finance the expense of the death benefit when the insureds risk increases every year causes the companies to provide insurance with cash value . That cash value offsets the increasing costs . Other forms of insurance merely expire . 