X-Message-Number: 16320
Date: Thu, 24 May 2001 04:52:53 EDT
Subject: Life Insurance and cryonics funding

In a message dated 5/23/2001 5:01:09 AM Eastern Daylight Time, 
Actually, Jan Coetzee writes:
 I have term life insurance which is becoming progressively more expensive. 
At the age of sixty this is worrisome. CI is the beneficiary of the life 
insurance. My youngest son who is extremely bright (He is entering college) 
and my ex-wife who respects my whishes agreed to keep two checks made out to 
CI. Each one one check.The amount is not filled in. I trust both because they 
do not need money. The money is kept in a special checking account. When 
clinical death is imminent. CI will be informed and the money wired. I will 
appreciate opinions before I take action. 
Dear Jan,

Rudi Hoffman writing from Daytona, FL regarding your important posting above.

Term life insurance is remarkably inexpensive in the early years, before age 
60 or so.  The challenge is that the renewal term rates escalate.  Because 
mortality curves, which are the foundation for insurance rates, curve up in 
an ever steepening curve and rise to virtually vertical, or 100% mortality at 
age 100.

This is why many people choose to elect a "permanent" form of insurance like 
Universal Life or Limited Pay Whole Life.  While more costly initially, the 
additional costs go to accumulate a "Cash Value" growing at current interest 
rates.  Right now, the growth rates on policies I make available are a more 
than respectable 5.75% on a tax free and creditorproof basis.  

In some cases, the growth can even be in a series of mutual funds selected by 
you, which also grow tax deferred and creditorproof.  

The term insurance I sell is upgradable to UL or LPWL without evidence of 
insurability.  This "upgradability" is not an uncommon feature, and may be 
applicable in your current policy.  

Here is the key "BOTTOM LINE."  If you are insurable, the best thing for you 
to consider would almost definitely be a new "permanent" type of coverage.  I 
would be pleased to bid on this and advise you regarding optimal funding.   

If you are no longer insurable, or your health is such that reasonable rates 
are unlikely, your current policy may be upgradable to a Universal Life or 
Whole Life at a rate higher than you are paying now, but the rate would lock 
in and not go up in the future.  

Each individual has a "fact set" of circumstances that determine the optimal 
funding.  Life insurance typically has at least two advantages, and here they 

1.  From a strictly mathematical standpoint, life insurance premiums are the 
most cost effective way to immediately create a lump sum at "death."  In most 
cases, the lost interest in setting aside a lump sum of money for your 
suspension would pay for the policy.  

Example:  A 50 year old, wanting a $50,000 lump sum to pay CI or 
neurovitrification with Alcor, could escrow this could put it in the fixed, 
boring investments required by ALCOR and get 5% interest.  If you can average 
10% by keeping the money elsewhere, a reasonable assumption with even a 
conservative mix of mutual funds over time, you have an extra $2,500.  

$2,500 will buy a PERMANENT life insurance policy on a healthy 50 year old, 
and this policy will even become fully "paid up" in about 7 years.  

And, the original $50,000 is still available for your heirs!  

Which brings us to reason number two about insurance funding:

2.  Life insurance creates an immediate and SURE instant estate that DOES NOT 
COME OUT OF MONEY THAT WOULD GO TO YOUR KIDS!  So there is less likelihood of 
your wishes being second guessed by your heirs.  

May I respectfully suggest that an ex-wife and a college age son are not 
ideally suited to GUARANTEE your wishes will be carried out?  You are putting 
an enormous, potentially unfair burden on them, and potentially creating huge 
controversies and complications that could:

1.  Cause your funding to be less than secure;  and 
2.  Cause enormous stress, complication, controversies, and rifts in your 
heirs that could cause the people you care about to become estranged for 

Yes, I know everyone thinks that "My family is different, they would never 
fight over mere money."  But I have seen this exact thing happen, eve with 
heirs that have significant assets.

Families can be split for generations over much less controversial things 
than cryonic suspension!:)

Here are some things you may want to consider.  May I respectfully suggest 
the following?

Life insurance in America bypasses probate, going DIRECTLY to the specified 
beneficiaries.  Creditors and heirs, greedy relatives and wannabe money 
grabbers have ZERO claim on your properly specified life insurance proceeds!

So, from both a financial standpoint and a legal standpoint, it almost always 
makes sense to use life insurance to fund your suspension.

I would welcome the opportunity to PROVE this to you, in your individual 
situation, given your particular "Fact pattern."

As always, I can be reached at 800-749-3773, or email , or 

I am passionate about showing people how reasonable and affordable it is to 

This is why I have over 100 cryonics policies in my files, (with virtually 
100% persistency/renewal BTW), and a bunch of satisfied cryonics clients I 
count as friends.  Many of whom are reading these words.  (And if you *are* 
one of these, thanks again for your business!)  I am to my knowledge the 
current leading writer of life insurance for cryotransport in the world.  

Jan, your concerns about term insurance rates going up are legitimate.   

But asking your child or ex-spouse to cut a big check may not be the best way 
to handle this.  If you were my own brother, I would ask you the same 
question I am asking you now.  Have you explored all the alternatives?  

Is there someone out there who UNDERSTANDS this market and who UNDERSTANDS 
both finance and life insurance?

May I modestly say that the answer to the second question is "Yes...and his 
name is Rudi Hoffman?"

Warmly and Professionally Yours,


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