Vague Tax Mortality Issues

I'm reading about the recovery of capital, and the Code exclusions from income for proceeds from life insurance. Simply put, if you get life insurance proceeds because the insured dies, the money doesn't count as income and you don't get taxed. Anyhow, the textbook uses flight insurance as an easy example of how it works:

Suppose that a person pays $5 for $50,000 of such coverage. If the plane crashes and the insured dies, the beneficiary receives the $50,000 which can be thought of as consisting of a $5 recovery of cost plus a mortality gain of $49,995. The entire amount is excluded under Section 101(a). On the other hand, if the plane arrives safely at its destination, the insured loses his or her gamble with the insurance company. There is a $5 mortality loss, for which there is no deduction. In this lottery with life there will be those who gain, financially, and those who do not.

I think it's an awful strange arrangement when the guy whose plane does NOT crash is considered the loser. I mean $50,000 is great and all, but you're... ya know... dead.

Anyhow, I understand what the authors are saying, it just struck me as oddly phrased.