SpongeBob wakes up from bed but falls on Gary after his foghorn alarm clock sounds. SpongeBob says that he is not feeling good about his life and Gary pushes SpongeBob out of the room. SpongeBob suddenly falls down the stairs, crashes into the wall and the toaster, and then crashes onto his TV.
The TV suddenly turns on and an advert for life insurance appears. Gunther Fitz, who appears on the TV, then interacts with SpongeBob about getting SpongeBob's life insurance. Patrick then comes to his door to meet him to send him his mail. Patrick excitedly jumps around, but then suddenly asks what life insurance is. SpongeBob tells him that, by his interpretation, for the rest of their lives they are protected from being hurt. Patrick disagrees on the contract, but SpongeBob tells him to try to get hurt to test the life insurance. Patrick then agrees to get hurt to test it.
Outside, SpongeBob and Patrick have a pillow-fight. Meanwhile, Squidward shows off his new toupee on the mirror. Squidward gets angry and tells SpongeBob and Patrick what they are doing. SpongeBob replies that he and Patrick are attempting to hurt each other. Squidward walks off but suddenly has an idea of telling SpongeBob and Patrick to hurt each other with harder objects. Patrick then is handed a rake, which he uses to golf Squidward back to his house. Patrick then throws the rake into Squidward's house, disbelieving that Squidward got hurt. Squidward then suddenly finds his toupee on his nose, thinking it is a sea spider, and then bangs himself with a rake in an attempt to take out the "sea spider."
Meanwhile, SpongeBob and Patrick continue trying to get hurt by falling off objects several feet high. Squidward gets annoyed, and then tells them to fall off something higher. SpongeBob and Patrick then try to summon jellyfish to allow themselves to get stung. Squidward gets surprised, accidentally dropping his toupee into the toilet. He quickly retrieves it and re-puts it on his head. Squidward then asks what they are doing, and replies that they are having their "final test" by attempting to be stung while having life insurance. A large jellyfish is summoned and zaps Squidward.
SpongeBob and Patrick then recommend Squidward about life insurance, since he was zapped by the jellyfish. Patrick even tells him about their recently made dangerous obstacle course which they name "The Sushi-Maker." SpongeBob and Patrick give him life insurance and he initially disbelieves that it will work. After several near-misses, he soon agrees and runs off to do dangerous activities, including running through a "brick wall" that turns out to be a super large canvas and intimidating a tough guy.
SpongeBob and Patrick then come to meet Squidward and are concerned about his reckless behavior. Squidward then licks an ice-cream that had recently been dropped on the floor. Squidward then arrogantly tells them that he will try The Sushi-Maker.
Near the obstacle course, Squidward climbs up a very tall ladder to jump into a pool of hot lava. Mr. Krabs happens to walk towards SpongeBob and Patrick to ask about what is happening. They reply to him that Squidward is proving that he is invincible because of his life insurance. Mr. Krabs then tells him that it's not the way life insurance works. He then tells that life insurance is the money the buyer gets when a person dies, then asks about who gets the money. Mr. Krabs signs the formerly unsigned life insurance contract that SpongeBob took from Squidward, then cheers briefly.
After, SpongeBob suddenly realizes that life insurance does not protect them from any danger and that those near-misses are only coincidental. Squidward ignores them and soon falls off the springboard into the lava pool. Squidward immediately screams and goes through all of the obstacle course, finally crashing into a heavy bell, full of blisters and grazes. SpongeBob then tells him that they were wrong about life insurance and that life insurance does not protect self-injury. Squidward tells him that he managed to survive because of his toupee and the episode ends with Patrick and SpongeBob attempting to smash the "sea spider" with their feet.
The songs heard during the countdown were "Sky Drive," "Bonus Point," "Street Cop," and "Electronic Sheep" by Charles Hedger, "Keep This Going" by Jon Murrill, Lee Richardson, Tom Ford, James Carlo Giorgi Cocozza and Sarah Jane Norman, and "Neon Bastard" by Richard Macklin.
In the episode, The Sushi-Maker is a dangerous torturing machine. This is a reference to the fact that people can eat a wide variety of sea creatures as sushi, and that can include octopus (which Squidward is).
After the car was about to hit Squidward, the other contract is missing.
In the first shot of SpongeBob's pineapple, his bottom right window is missing.