How Does Life Insurance Differ From Other Insurance? 
In some ways life insurance is similar to every other type of insurance in that life insurance is a pooling of risk among a large number of people who want to transfer a large risk -LRB- economic loss of dying -RRB- in trade for a small premium . One thing unique to life insurance is that the risk it insures only happens once - death . Most other types of insurance insure events that could happen multiple times , such as accidents , fires , disabilities , etc. . 