How Does Life Insurance Differ From Other Types Of Insurance? 
Life insurance pays when the insured person dies . This makes it different from other types of insurance that pay while the insured person is still alive . > Health insurance and Medicare insurance pay for preventative , diagnostic , and therapeutic medical care for the insured persons . > Disability pays insured persons a substantial percent of their income if they become disabled . > Long term care insurance pays for the services needed by the insured persons when they are unable to care for themselves . Persons insured by life insurance do not partake of the benefits of their own policies unless they borrow from the cash value in their policies , spend their dividends , or surrender their policies for the cash value in them . Life insurance is mainly to alleviate financial hardship for those affected by the death of the Insured . 