Bitcoin Life Insurance

[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.

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[AverageGlabella]

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.

imo the only way you get bitcoin insurance is if banks adapt and take control of your private key and operate how they do with btc but they offer you the protection of losing your btc to scams. If btc went mainstream I see this happening because banks will want to survive and if fiat is being less used they will need to transition to cryptocurrency but it would still be difficult to prove that you have not just sent your crypto to a dummy address that you own except for the threat of being put in jail for fraud.

[stompix]

imo the only way you get bitcoin insurance is if banks adapt and take control of your private key and operate how they do with btc but they offer you the protection of losing your btc to scams.

But that's just like FDIC insurance, you have to first forfeit control over your coins, just as you do with your money and I'm not sure any kind of insurance or crypto bank will cover your losses if you have willing sent your coins from your account to a scammer.

I feel like this is more like a  situation of having the cake and eating it, you want to have complete control over something and you still want insurance because you know you might screw up, take advantage of the growth, take advantage of having your money out of anybody else control but at the same time demand payments if you make a mistake. On the other hand, the one doing this for you will have to take all the risks for a fee which of course you would want to be as low as possible.

If btc went mainstream I see this happening because banks will want to survive and if fiat is being less used they will need to transition to cryptocurrency .....

Lol, survive, banks are making millions in fees right now from everybody buying and selling coins and using banks wires, credit cards and funding their paxum paypal or another wallet with bank money to buy and sell coins. I have a feeling that if we do the math they have gained a ton of money compared to the measly few thousand of transaction fees they've lost.

[AverageGlabella]

Lol, survive, banks are making millions in fees right now from everybody buying and selling coins and using banks wires, credit cards and funding their paxum paypal or another wallet with bank money to buy and sell coins. I have a feeling that if we do the math they have gained a ton of money compared to the measly few thousand of transaction fees they've lost.

fiat is unsustainable eventually banks will find that the money they hold is worthless. They keep printing money off and eventually it will collapse. Maybe not in our life times but it will eventually happen. crypto does not do this and is immune to inflation. When people realize this they will convert and the banks will start losing more money. atm they are fine and will probably be here for the rest of my life but they will have to adapt just like the rest of the world will.

[Strongkored]

What are your thoughts on this?/ is anyone aware of a company that provides said service?

Why should a system that runs decentralized like Bitcoin have to be secured by a system that is run by centralization? Insuring the Bitcoin that we have in an insurance company is not much different from storing our Bitcoin in a CEX where they have control over our assets. Teaching your heirs about the assets that you have is much safer and it will be that he will get what is rightfully his, insuring Bitcoin will only look safe because you have proof from the insurance company but in practice it could be that your heirs will not get it because the insurance company goes bankrupt or some other bad scenario.
As far as I know, there hasn't been one and hopefully there never will be because this could be a way to scam people in the crypto world

[adzino]

There won't be any "life insurance". If you coins are lost, it is lost. It was your responsibility to make sure your coins are safe and backups are made properly. You should have done proper research before making any kind of investment. Even if "insurance" does exist, in this you will likely need to rely on a third party centralized organization which completely destroys the "decentralization"  concept of decentralized crypto currencies.
You should always invest at your own risk and take care of your own funds. If you can't, then crypto currencies aren't for you. You should stick to banks and institutes that will have full control over your assets and funds while in return insuring everything.

[kro55]

Bitcoin life insurance? What you are looking for is a centralized company, a centralized service, if you hand over your bitcoins to these centralized services, you are trying to turn your bitcoins into a centralized asset. We want privacy, we want the freedom to decide our finances, and that's why we hold bitcoins, don't try to reverse things.
Instead of looking to a 3rd party service, I will trust myself and my loved ones more. My solution was to make a plan and share these secrets with the people I trust most.

[stompix]

~

Maybe not in our life times but it will eventually happen.

You lost the audience with this one!
Bitcoiners do plan long-term of course, but there is a line when you stop planning, that's why I really don't care what happens when the last satoshi is mined nor am I afraid of hearing that the sun will die out in 6 billion years instead of 8 as it was previously estimated.  

Joking aside, what I was trying to point out is that a lot of the new crypto users generation are still heavily relying on banks, they are treating coins more like investments and are using banks as middlemen, not even counting the more and more active role CEX are playing in this entire thing. So rather than actually getting rid of banks I am actually worried we're down a far more dangerous path where we're just exchanging the currency while exchanging banks for other centralized entities that still have control over the finances of the masses.

You should always invest at your own risk and take care of your own funds. If you can't, then crypto currencies aren't for you. You should stick to banks and institutes that will have full control over your assets and funds while in return insuring everything.

The usual problem and I guess this might be a reason why as stated above we won't see that change in our lifetime.
We need to be realistic about the capacity of the majority of the population and their abilities, if you can't have everyone deal with cryptos, then obviously the fiat system will still be in place for a very long time.

[Mahanton]

There's no such thing about insurance or even banks or something that do involves on having a central authority or control of those coins.You cant be sure on how these Life insurances would be handling out
into those heirs with the funds on which a certain person who had died.There's no other way but rather exposing their keys to retrieve those coins or someone would be paying up for some money to get that policy and incase they would die then their family would receive something.How they would be making out calculations? How they would be making transactions in between their client and on the amount
that agree upon to be released? Its complicated i would say.

[Vyeon11]

things like that seem less suitable to be applied in the bitcoin system, don't bother thinking about the heirs of our bitcoin assets, the most important thing is to write down all the phrases, your wallet password on paper and save your bitcoins in a hardware wallet.

if insurance like that is done, I think it is not compatible with bitcoin and is not the true ideology of bitcoin.

[Minecache]

Lol, survive, banks are making millions in fees right now from everybody buying and selling coins and using banks wires, credit cards and funding their paxum paypal or another wallet with bank money to buy and sell coins. I have a feeling that if we do the math they have gained a ton of money compared to the measly few thousand of transaction fees they've lost.

fiat is unsustainable eventually banks will find that the money they hold is worthless. They keep printing money off and eventually it will collapse. Maybe not in our life times but it will eventually happen. crypto does not do this and is immune to inflation. When people realize this they will convert and the banks will start losing more money. atm they are fine and will probably be here for the rest of my life but they will have to adapt just like the rest of the world will.

Fiat is inherently unsustainable, but to say it will collapse and crypto will replace it is unlikely. If fiat is dropped and replaced, it will also be a government-created currency, not a bitcoin or a decentralized currency. I can assure you this, as long as the government remains the one who controls the world, they won't let that happen, if that happens, it will be their downfall. Look at the inflation going on, it's dropping rapidly without bitcoin, which shows us that fiat will be with us for hundreds of years to come.

[tread93]

There won't be any "life insurance". If you coins are lost, it is lost. It was your responsibility to make sure your coins are safe and backups are made properly. You should have done proper research before making any kind of investment. Even if "insurance" does exist, in this you will likely need to rely on a third party centralized organization which completely destroys the "decentralization"  concept of decentralized crypto currencies.
You should always invest at your own risk and take care of your own funds. If you can't, then crypto currencies aren't for you. You should stick to banks and institutes that will have full control over your assets and funds while in return insuring everything.

Perhaps it is better to insure the Bitcoin/s instead. This would be very challenging due to the volatility in the price but honestly wouldn’t hurt. I’m sure there could be ways for insurers to do this. If you insure it just like a life insurance policy some way, maybe this is something we will see insurance companies starting to do with all of these scams happening lately...

[kelechi]

I think this doesn't sound interesting because it goes against the idea of Bitcoin. Bitcoin frees you. With Bitcoin, you don't have to trust anybody, whether to take care of your money or to take care of how it is stored or to make sure it goes to the right heir when you die. All of this is removed with Bitcoin. You take care of your own money. That's 100% yours and your 100% responsible for it and for whatever will happen to it after you die.

If you're unsure about its safety or how to make sure it is properly inherited, do something. But you don't have to let a third party intervene.

I think there is a point in that BTC is volatile and at some poit it can hurt you (like last year's dump)

[CryptoHeadlineNews]

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?

Yes, no doubt that in the future there will be more cases of lost coins due to the death of the real owners of that assets and most especially Bitcoin. But in as much as that is true, there is a solution to which we can at least reduce the rate at which such case is being brought to the least minimal, and by that I mean, by informing your most loyal friend, family member or child about the asset you own in a certain crypto wallet, so that if in case you happens not to be alive anymore, they can at least have access to it, rather than having it gone forever.

[BlackHatCoiner]

Insurance companies need to hassle as much information as possible to make sure their customers are eligible. For instance, no car insurance company would sell their services to someone who's crashed a dozen times. But there aren't a lot of manners to make sure someone isn't foolish online. So there isn't much to know about a cryptocurrency user. Also, there is no way to prove a cryptocurrency user lost coins or that he pretends he lost.

[The Cryptovator]

We cannot consider insurance in a scenario where Bitcoin is truly decentralized. You are the one who must secure your funds; why should a third party become involved? Isn't that against the concepts of decentralization? Just maintaining a personal notebook would provide as insurance for your cryptocurrency holdings. You or a member of your family can access your funds in case of an incident. To be honest, that insurance is excellent.

[care2yak]

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

Life insurance. You sell a life insurance policy to a client for a coverage like say 1M dollars and in the event of death, 1M dollars will go to your designated beneficiaries - that is, if the cause of death is covered by the policy. If not, then your beneficiaries will be denied their claim.

Many assume that life insurance is guaranteed protection, but many don't realize that claims can be denied. So, think about your bitcoins being tied to your policy and the thought that claim on your bitcoins in the future can be denied for some reason by the insurance company that you entrusted your bitcoins with.

What the insurance company can do is to offer payouts in bitcoins. When a client completes premium payments, the client can choose to receive payouts in bitcoins. Now, would an insurance company be willing to sign a policy promising to pay their client, let's say 100 bitcoins in the future, in the event that the claim is valid and cannot be denied?

[AmoreJaz]

We cannot consider insurance in a scenario where Bitcoin is truly decentralized. You are the one who must secure your funds; why should a third party become involved? Isn't that against the concepts of decentralization? Just maintaining a personal notebook would provide as insurance for your cryptocurrency holdings. You or a member of your family can access your funds in case of an incident. To be honest, that insurance is excellent.

hence, you can't see any business which ventured on this aspect. because if you are btc holder, you're supposed to secure your own funds. now talking about after your death, you should be the one taking care of this business. you can always transfer it to one or more family members, how to secure it and all other things about it. if you know you have significant amount of btc and you don't want it to go to waste, then, better think of someone whom you can trust for this asset.