Insurance on Life

S.S. asked if my life insurance was paid up in his forwarded email coupon deal for the day - "Thrillant Skydiving ($279 value for $139)".  It reminded my of 1986 skydiving experience with my Accenture buddies.  It would be the first and last time I would do that.

Insurance is a form of risk management -  a hedge against uncertainty.  However most insurance benefits the individual paying the premiums - Car Insurance (to replace the car); Homeowners Insurance (to replace the house); Health Insurance (to pay to repair the body).  Now we come to Life Insurance  -  to replace the life?   - to replace the time?

Life is filled with uncertainty and risk.  It is just not possible to transfer that risk to a third party.  You can't "buy" anymore time.  I enjoyed watching the movie "In Time" with Jenna and Paul the other night.  It was the premise that was intriguing not the actual story or acting.  A person stops aging at 25 and must buy their time to continue to live.  Interesting - you spend time to make money to buy time to live.  A quick break even calculation would determine how to spend your time. 

Just yesterday, I read in a blog ("The Path to Prosperity") that - "A good rule of thumb is that workers are paid about 2/3 the value of what they produce".  Thinking further about the time and money equation above, you want to spend your time on the highest value of production/outcomes to accumulate the capital to buy time (but for what purpose? more time?).

The ageless question in life is - what is the highest value outcome?   That becomes your insurance on life.