Bitcoin Life Insurance

[wiss19]

I know there's a few people who proposed a similar idea but I think it was unsuccessful because the thread receive lots of criticism and then forgotten after some days. It's truly hard to entrust your keys to someone else online but unless maybe if they do have a physical office similar to banks but many banks are much older and much known than them so it's easier for them to gain the trust of the public.

Anyway, cases of lost Bitcoins aren't really new but their numbers are high before compared to now because people back in time are clueless that the coin that they are holding are very valuable that its price can increase by a lot of folds.

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[jrrsparkles]

There is a serious need for "Bitcoin Life Insurance" In the coming years we are going to see so many cases of "Lost Coins", these will be coins that are not accessible because the surviving heirs are unsure of the password to the ledger or trezor, or whatever cold storage wallet they have, or they just won't have copies of the private keys.

I am not aware of any such policy or service that is trusted to mitigate the transfer of ownership of crypto assets to heirs in the event of one's death. Is anyone familiar with a company that does this? If so, what measures do they take to ensure that the crypto is indeed successfully transferred?  Is it a Trust, or some sort of financial advisory board? If someone signed up, how could they ensure that the companies products/services are to be trusted?

I'm sure this subject has been brought up. I have just finished up my CEs for my 215 license to continue selling life insurance/ health insurance and it got me thinking. What are your thoughts on this?/ is anyone aware of a company that provides said service?

Best,

TREAD

There is no such insurance policy for covering the loss made by crypto currencies that is why exchanges lose their value to zero when they are hacked, and it can be insured as well cause its decentralized and it has the possibility of involve into insurance scams even if any insurance company provide in the future so keep your money on your own and if you feel a part of your asset should reach your heirs then just give it to them when you are there.

[NotATether]

Any insurance scheme relies on the basic assumption that the money paid by buyers will be a percentage larger than the total amount of insurance they actually have to pay to damaged customers. So this will not work in cryptocurrency space as the only people who will buy it are those who are highly likely to get scammed, and the business will also close doors.

[flying_bit]

What will happen to the idea of bitcoin  for animosity and decentralization.

How can you maintain the animosity in insurance when you need to give all your personal information for verification and authentication.

Also, this will be a huge risk and subject to scam.

I prefer to just share my account to my partner than to any company or group that can bail out anytime and for me to lose everything in just a second 

[AverageGlabella]

Any insurance scheme relies on the basic assumption that the money paid by buyers will be a percentage larger than the total amount of insurance they actually have to pay to damaged customers. So this will not work in cryptocurrency space as the only people who will buy it are those who are highly likely to get scammed, and the business will also close doors.

It is proving that you have been scammed that will be the problem. Most insurance companies want to see evidence on where you have lost out and that is a chore but with btc it not easy to prove because you probably do not have invoices like you would in the normal world and you cannot prove that you have not just sent your btc to a address you own and tried to scam the insurance company. Insurance for btc will never work.

[Gyfts]

I am not aware of any such policy or service that is trusted to mitigate the transfer of ownership of crypto assets to heirs in the event of one's death. Is anyone familiar with a company that does this? If so, what measures do they take to ensure that the crypto is indeed successfully transferred?  Is it a Trust, or some sort of financial advisory board? If someone signed up, how could they ensure that the companies products/services are to be trusted?

You could keep coins on a hardware wallet, put it in a lockbox and entrust a 3rd party to pass the lockbox to your next of kin or beneficiary when you die. There wouldn't need to be a unique service for this because there's already ways to pass down property to someone after you die. A specific crypto ownership transfer service just seems like a waste. And to any observer, they'd be handing over something that seems worthless. They wouldn't know there's crypto within the device. Of course, this isn't really how insurance typically works. You'd need a will set up for this.

[AverageGlabella]

I am not aware of any such policy or service that is trusted to mitigate the transfer of ownership of crypto assets to heirs in the event of one's death. Is anyone familiar with a company that does this? If so, what measures do they take to ensure that the crypto is indeed successfully transferred?  Is it a Trust, or some sort of financial advisory board? If someone signed up, how could they ensure that the companies products/services are to be trusted?

You could keep coins on a hardware wallet, put it in a lockbox and entrust a 3rd party to pass the lockbox to your next of kin or beneficiary when you die. There wouldn't need to be a unique service for this because there's already ways to pass down property to someone after you die. A specific crypto ownership transfer service just seems like a waste. And to any observer, they'd be handing over something that seems worthless. They wouldn't know there's crypto within the device. Of course, this isn't really how insurance typically works. You'd need a will set up for this.

The hardware wallet would still need a pin to get into it. You would have to supply whoever is going to get your inheritance with all the information but still keep that hardware secure while you are alive but they need to know where it is just in case you pass away unexpectedly. It is a complex answer because securing a hardware wallet while someone knows where it is difficult. I would say do not give them the combination to the safe or lockbox and just give them the hardware wallet pin code that way they would need to crack open the safe or lockbox which can be done given enough time but probably would not go unnoticed in your own home.

[Henrobakkara]

There is a serious need for "Bitcoin Life Insurance" In the coming years we are going to see so many cases of "Lost Coins", these will be coins that are not accessible because the surviving heirs are unsure of the password to the ledger or trezor, or whatever cold storage wallet they have, or they just won't have copies of the private keys.

I am not aware of any such policy or service that is trusted to mitigate the transfer of ownership of crypto assets to heirs in the event of one's death. Is anyone familiar with a company that does this? If so, what measures do they take to ensure that the crypto is indeed successfully transferred?  Is it a Trust, or some sort of financial advisory board? If someone signed up, how could they ensure that the companies products/services are to be trusted?

I'm sure this subject has been brought up. I have just finished up my CEs for my 215 license to continue selling life insurance/ health insurance and it got me thinking. What are your thoughts on this?/ is anyone aware of a company that provides said service?

Best,

TREAD

Quite frankly, I believe the case of "Lost Coins" could actually be less now because we cannot compare the understanding of Bitcoin today with how people took Bitcoin in the past decade. Investors could be more careful in handly their info even though there might still be that issue of if the loved ones can access that info after the holder's demise.
Secondly, talking about Bitcoin Life Insurance, what will be the option here, give them your PKs to all your wallets while you are still alive or give them the wallet to pass down to who should have it without the PKs which is still the same problem, I don't see how this will work with the traditional Insurance way.

[AverageGlabella]

There is a serious need for "Bitcoin Life Insurance" In the coming years we are going to see so many cases of "Lost Coins", these will be coins that are not accessible because the surviving heirs are unsure of the password to the ledger or trezor, or whatever cold storage wallet they have, or they just won't have copies of the private keys.

I am not aware of any such policy or service that is trusted to mitigate the transfer of ownership of crypto assets to heirs in the event of one's death. Is anyone familiar with a company that does this? If so, what measures do they take to ensure that the crypto is indeed successfully transferred?  Is it a Trust, or some sort of financial advisory board? If someone signed up, how could they ensure that the companies products/services are to be trusted?

I'm sure this subject has been brought up. I have just finished up my CEs for my 215 license to continue selling life insurance/ health insurance and it got me thinking. What are your thoughts on this?/ is anyone aware of a company that provides said service?

Best,

TREAD

Quite frankly, I believe the case of "Lost Coins" could actually be less now because we cannot compare the understanding of Bitcoin today with how people took Bitcoin in the past decade. Investors could be more careful in handly their info even though there might still be that issue of if the loved ones can access that info after the holder's demise.
Secondly, talking about Bitcoin Life Insurance, what will be the option here, give them your PKs to all your wallets while you are still alive or give them the wallet to pass down to who should have it without the PKs which is still the same problem, I don't see how this will work with the traditional Insurance way.

Over time people will learn how to make their btc safe but that will not stop people who die and do not have a way of giving that btc to their children. It will not stop people who lose their private key or seed because that happens a lot. That might be because of a mistake as mistakes happen but it could be because someone did not understand btc and that is why it is important to understand the security of btc but we will always have people invested in btc that will not research how to store their btc and will lose it.

[tread93]

Or, just have it as a standard loss policy. If coins cannot be retrieved then it's no different then if your house gets broken into and something stolen, or you dropped that priceless piece of art.
There is the potential for fraud, but there is always the possibility for that with any kind of insurance.
The question would be can you make it cheap enough that people would be interested, but expensive enough to generate a profit for the company otherwise nobody would offer it.

-Dave

Was just thinking about this last night dave. Instead of trusting it to a third party, why not just insure the bitcoin with a specialized BTC policy?

The only problem with that is how do you insure an asset that has amazing upside potential but also can decrease substantially as well? All of that volatility would be hard to come up with a specialized plan, but it would definitely serve its purpose in the market and I think institutional investors would be more inclined to buy BTC if they can insure it.   

[Alexeymalutin]

Hmm interesting concept

[naira]

So far, in my opinion, there may be 2 choices that can be made, namely storing it in a bank safe or better known as the Safe Deposit Box. This may sound a little odd, but when there is no trustee to trust, at least the SDB is still efficient. Then the options of the closest people especially family can be used as an alternative to Bitcoin inheritance, but they also have vulnerabilities.

[Wapfika]

So far, in my opinion, there may be 2 choices that can be made, namely storing it in a bank safe or better known as the Safe Deposit Box. This may sound a little odd, but when there is no trustee to trust, at least the SDB is still efficient. Then the options of the closest people especially family can be used as an alternative to Bitcoin inheritance, but they also have vulnerabilities.

This is a better idea, actually in our house there is a attache case with lock that is store in a cabinet with lock with all the files of properties for security purposes that can only be access by our parents before but then later on they also tell where the keys is when were adult enough to know. Though it will be safer to put it in other secured safe area with insurance security for some events like fire or in bank safe especially the ledger and keys  for insurance purposes since we can’t guarantee if there will be some fires or thefts if only left at home and just include it in will or mention to family members since they can only access it if have owner consent.

[romero121]

So far, in my opinion, there may be 2 choices that can be made, namely storing it in a bank safe or better known as the Safe Deposit Box. This may sound a little odd, but when there is no trustee to trust, at least the SDB is still efficient. Then the options of the closest people especially family can be used as an alternative to Bitcoin inheritance, but they also have vulnerabilities.

This is a better idea, actually in our house there is a attache case with lock that is store in a cabinet with lock with all the files of properties for security purposes that can only be access by our parents before but then later on they also tell where the keys is when were adult enough to know. Though it will be safer to put it in other secured safe area with insurance security for some events like fire or in bank safe especially the ledger and keys  for insurance purposes since we can’t guarantee if there will be some fires or thefts if only left at home and just include it in will or mention to family members since they can only access it if have owner consent.

Every house won't have safety deposit box. Good choice is the bank's deposit box, because in house one can take hold of the box and enjoy all the savings. With bank both the heir needs to be present while the safety box belongings were taken out and given. As said fire and natural disasters were possible everywhere. So, better is to have the same piece of secret phrase stored in different locations.

[ChiBitCTy]

This is a topic that’s been brought up quite a few time over the years and there’s even been books written about “Bitcoin succession planning”.  I made a post about this in the collectibles sections as fancy cold wallets like that are very hard to know how to sell when someone passes away. There’s really a pretty easy solution to all of this and that’s having a proper will set up and have directions on how to access your coins in case of passing away. Make sure your loved ones know where to find the directions is all.

[tread93]

This is a topic that’s been brought up quite a few time over the years and there’s even been books written about “Bitcoin succession planning”.  I made a post about this in the collectibles sections as fancy cold wallets like that are very hard to know how to sell when someone passes away. There’s really a pretty easy solution to all of this and that’s having a proper will set up and have directions on how to access your coins in case of passing away. Make sure your loved ones know where to find the directions is all.

Well said m8. I agree, a will is really all that is needed here. I think it is also note worthy the importance of having the proper executor of the estate who is trustworthy to distribute all assets accordingly.

Honestly, something like a BTC or Crypto Insurance Policy though wouldn't be a terrible idea for people who hold $$$ on exchanges, even temporarily in the event of a sudden hack. More so, exchanges in general should have that insurance, although i'm sure its very difficult to get if they can even get it at all.

[Merit.s]

Having insurance on btc is like you have given your assets completely to a stranger who is not suppose to know anything about it. Bitcoin was designed to be kept safe by the owner in a noncustodial wallet, and if you give a third party access to your btc,it means that you are going against the all design of bitcoin which is decentralization and this can lead to regrets. My opinion is that we should teach our loves know about our investment and also letting them know the keys and every other secured aspect of it,so that when you pass on,it becomes easy for them to access. Teaching them about bitcoin and wallets to keep coins should be more of our concentration, so that they can find it easier to inherit your btc when you are no more.

[AverageGlabella]

This is a topic that’s been brought up quite a few time over the years and there’s even been books written about “Bitcoin succession planning”.  I made a post about this in the collectibles sections as fancy cold wallets like that are very hard to know how to sell when someone passes away. There’s really a pretty easy solution to all of this and that’s having a proper will set up and have directions on how to access your coins in case of passing away. Make sure your loved ones know where to find the directions is all.

Collectibles are the worst because you never know when they have been tampered with and 2nd hand hardware wallets should not be trusted as they have been hacked in the past which has caused many people here to lose their money. I would stay away from collectibles for storing any big value on them and only have them for sentimental value.

[AverageGlabella]

Yeah, bitcoin life insurance would be fucking awesome.

Will the correct human beings with the right intentions step up and create that utility around bitcoin?

Or will it be another healthcare Ponzi like crowdfunding genetics studies on Parkinsons?

It is not possible. It would be a scam because you can not verify when btc has been lost unless it has been sent to a burner address and no insurance company is going to insure you for losing your btc that you sent to a burner address. btc insurance will never be a thing because of the lack of verification of loss of coins. There is no real solution to that. 

[stompix]

I really wonder how this could work, with most assets it's pretty easy to see those are lost or destroyed, with crypto how can you claim you have lost them, all you need is the key, so if those move in ten years you can still claim that finally, someone managed to get ahold of your lost USB that had a copy of the said keys. I can see that working for coins that were in a 3rd party custody as there will be a legal process on how those were lost and with proof of them moving with you having no control over it, but this is like insurance for the cash you have in your pocket.

Insurance is mostly just legalised scams, you pay a monthly fee or annually for something that's unlikely to happen. Hence why, insurance companies are normally massively profiting.

It depends on from case to case, for example with my car insurance I'm at a total loss since I haven't had an accident in 5 years and one that was more than a bump or my fault in a decade at least as I don't even remember. One of my co-workers on the other hand has a record of destruction, he actually hit four cars one night, and managed to hit two in our company parking lot with such precision I don't know how it's even possible to scratch two cars in parallel on every single piece of metal on both of them, door, front and back panel. And he still pays like 1000 euros a year for insurance while he has for sure destroyed things close to a few hundred thousand.
As a relative said, insurance is a waste of money till you break something.