Hey -- if the money's there, it's a business :)

Seriously. That what makes this exercise a little dubious. It's never version 1.0 of the idea. Sometimes it might be version 23

For example, here's v2.0 of my idea.

Identity Life Insurance. For a fee, either use the internet and/or a physical inspection of people's computers after death to shut down online accounts and notify correspondents that you are deceased (and perhaps what to do about sending flowers, etc) This would give the insured privacy in their final online affairs and also make sure the people you chat with daily know what happened to you. Sales would be to traditional insurance companies (which could offer it as a rider) and funeral homes.

Now does that sound better? The fun of this game isn't necessarily in the idea, it's in the evolution of the idea in response to market forces. Cool stuff!

So this would work for people with no relatives, close friends or at least a lawyer? I imagine for most folks someone must know when they died and having some instructions for what to do when you pass away shouldn't be too difficult.

Yes. Of course.

But there are many problems with your assertion that it's just knowing someone who will follow directions:

1) Many people do not know enough technology to be able to track all the accounts a user might have. 2) Many users don't want their families going through their accounts when they die (ie, cybersex and online fantasy issues) 3) Some people may die unexpectedly, with insurance but no directions as far as online presence 4) The average family memeber when left with an unexpected death, even with a list of online associates, will not know how to approach these people (what were their roles in the deceased life?) or what to say 5) It's just a hassle and is easier to have someone else do it and 6) It's not something people think about a lot, but with the wired-up X Generation and tail-end-of-the-boomers getting older, it will become a more pronounced issue.