X-Message-Number: 13569
Date: Sun, 16 Apr 2000 08:03:24 EDT
Subject: Funding Cryonics

Dear Fellow Cryonicists and interested parties,

This is Rudi Hoffman writing from Daytona, FL.

The following is a short article that will be published in "Cryonics" 

I share the enthusiasm of many about Dave Pizer's newest incarnation of 

Many people reading this posting this very moment, however, do not have 
funding in place to make their suspension a reality.  I am amazed at this.  
Many people who post regularly here-- and are often even highly opinionated 
--are "closet corpses" who in reality do not have solid funding in place. 

Dave Pizer, (and I know that because you are fellow business man you already 
know this), please know that many people may have an opinion about cryonics 
and community, but on the part of many cryonicists there is an unfortunate 
lack of "follow through" when it comes to actually putting even relatively 
small amounts of money to make dreams reality.

How do I know that there are dilettantes and hypocrites (for lack of better 
word) who regularly post here? 

I know this because I have had the opportunity to correspond with quite a few 
people who are regular contributors to this board.  These hypocrites have 
initiated correspondence with me regarding funding.  BUT...THEY have NEVER 
followed through, with me or other insurance vendors.  I know this through 
checking with Linda Chamberlain (Alcor) and Andy Zawacki (Cryonics Institute).

Since we are talking monthly commitments that may be only $18 or $50 or $150 
dollars per month, it is highly unlikely that they have set $120,000 aside to 
fund their suspensions.  

I take my commitments seriously.  Most of you do as well.

I use my valuable time, professionalism, toll free number, overnight mail 
costs, and the tremendous effort it takes to get appropriate, detailed,  and 
affordable proposals to people who have inquired.  All this is to make their 
dream of biostasis (and potential immortality) a REALITY for individuals. And 
I am usually rewarded with equal candor, reliability, and responsibility by 
the responders.

There are others who are attracted to cryonics, however, who are 
ASTONISHINGLY unreliable, have NO sense of business realities, and who will 
try to soak up your time like a sponge while they "hold court" telling you 
how you should do things.  

Dave, I know you are well aware of this "flake" syndrome.  

By the way, my wife fondly refers to many cryonicists as "Frosted Flakes".  
Some are flakier than others! :)

Many reading this posting this very moment consider themselves "cryonicists" 
but have done ZERO to establish their funding!  

If they live outside the United States this is understandable, as obtaining 
life insurance for the purpose of cryonic suspension is EXTREMELY difficult 
outside the United States.  (I am the leading writer of cryostasis policies 
in the world, and I do NOT have any carriers that will write outside of the 
country.  Although I am working on it diligently.  Thanks for the continued 
"Non United States" inquiries, but I cannot write you yet!)

The above "rant" is hereby concluded.:)   

Here is the article.  The way spacing comes out on the article is an artifact 
of copying from word processing program, and should not be distracting.

Why Fund Your Suspension with Life Insurance?
by Rudi Hoffman CFP

   I expect to have the money to fund my suspension in cash eventually.  Mr. 
Hoffman, why
should I take out a life insurance policy to fund my suspension?   

This question in some form comes up often in discussions with people with an 
interest in
cryopreservation.  The good news is that there are answers that are 
mathematically valid,
(i.e., not merely opinions) and that make sense to most people.

The purpose of this article is to answer this question in a clear, concise, 
manner.  Additionally, we will see that there is an empirical way of 
determining the
optimum funding that will appeal to most rationally minded cryonicists.

Let   s personalize this with a discussion of a hypothetical individual    Jack
who is a 45
year old software developer. 

   Okay, Jack, so you want to be cryogenically frozen with the possibility of 
reanimation.  You have thought about it for some time, but you are of a 
skeptical and
questioning nature, and you have a constituency in the form of a wife and 
family who are
not at all sure if you have not gone off the deep end and do not share your 
enthusiasm for
the possibilities of technology.    

   You want to create $120,000 for a full body suspension with ALCOR.  You are 
because your mutual funds have been growing well, your career is taking off, 
and you
expect to be seriously wealthy in the future.  You want to do the best thing 
to assure your
funding.   You have negotiated with your wife, and you and she have decided 
that you can
spend $1000 dollars per year towards cryonics funding.   

Here is the key question.  Is it better for Jack to spend his 80 dollars per 
month in a
mutual fund, or a life insurance policy, to fund his suspension?  

Here are the facts.  Jack, a healthy nonsmoker, can create an INSTANT 
$120,000 to fund
his suspension in a permanent Universal Life policy.  Once he pays 80 bucks 
and qualifies,
there is an IMMEDIATE and SURE payment to his cryonics organization to assure 
suspension.  The money does not go the cryonics organization at the expense 
of the
survivors.  This $120,000 does not have to come out of the estate Jack is 
leaving for his
wife Mary and the children.  Nor do they have the opportunity of second 
guessing Jack   s
choice and delaying or litigating Jack   s wishes.

On the other hand, let   s say Jack puts his $80 dollars per month into a 
mutual fund.  Even
if he averages a great return, it will take decades to generate the required 
What happens if Jack is struck by a truck on the way to work tomorrow?  There 
is no full
funding, and Jack will not be suspended.  

What if Jack lives long enough to have adequate funding in his account?  When 

   dies     there is $120,000 which Jack has earmarked for his suspension.  But
   this  $120,000
is a much clearer target for any of Jack   s potential heirs to contest. 

Jack   s kids all turned out great.  Except for the youngest, Leroy, who felt 
the world owed
him a living.   Jack had left each his children $200,000 in his will.  But 
Leroy wanted at
least part of the $120,000 Jack had earmarked for suspension!  Do you think 
Leroy could
find an attorney who would take this case?  Could the money be tied up in a 
legal battle? 
Do will and estate contests occur over much less controversial issues than 
cryostasis?  Absolutely!  And these funding controversies HAVE and WILL 
to occur.  

There are other issues.  If Jack is not insurable due to health reasons, he 
will not be able to
obtain life insurance to fund his suspension, and he would be forced to fund 
his suspension
from his estate.  

Most people become uninsurable at some point in their lives.   It therefore 
makes sense to
find out how affordable it can be to fund your suspension with the incredible 
leverage that only life insurance provides.  It the case of cryonicists, the 
policy can truly
become LIFE insurance-- not DEATH insurance.

Cryonicists tend to be life extenionists who take great care of themselves 
and thereby can
usually qualify for the best possible insurance rates.  (I spend a good deal 
of time
explaining this information to insurance companies!)

In conclusion,  for most people it makes sense to use life insurance to fund 
the exciting
possibilities of cryonic suspension.

*80 dollars per month =960 per year.  960 annual payment
                    12 % after tax compound yield
                    25 years to grow to $128,001
                    (22 years at 15% after tax yield)

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