What term describes insurance that pays directly to the insured or named interests?

The term that describes insurance which pays directly to the insured or named interests is property insurance. This type of insurance is designed to protect the policyholder’s tangible assets, such as homes, cars, and other property. In the event of a loss—like damage or theft—property insurance ensures that the insured receives financial compensation, thereby directly covering their interests.

In contrast, liability insurance typically protects the policyholder from claims made by others for damages or injuries they may cause, rather than directly compensating the insured. Life insurance pays a designated beneficiary upon the death of the insured, which may not directly benefit the insured themselves. Health insurance covers medical expenses incurred by the insured, but it is usually structured to pay healthcare providers rather than the insured directly. Therefore, property insurance is uniquely positioned as the type of insurance that directly compensates the insured for losses to their own property.