I’ve spent a total of $5 on the game and FWIW, I think I got my money’s worth. The game’s development is severely mismanaged and I don’t think it’ll ever realize its vision, but I think it’s worth checking it out even if it’s just for looking at some of its technological achievements.

I’m confused how you think the insurance will work, as it seems you believe the 6 months in your example couldn’t be extended or renewed?

I doubt players following the ToS will ever lose ships bought with real money permanently as it would generate extremely negative press.

Though EVE online allows essentially the same thing and you can absolutely lose those ships and equipment.