X-Message-Number: 16720
Date: Tue, 26 Jun 2001 22:22:47 EDT
Subject: Re: how insurance works

In a message dated 06/26/2001 12:10:49 PM Eastern Daylight Time, 

 > OK...I'm not clear on how all forms of insurance work.I've seen
 > charts prepared that show the value building over time,and I'm not
 > assuming that the full benefit would be paid if I died right after I
 > started.
 I'm sure Rudi () would be glad to explain it.
 You pay $1000/year, and even if you drop dead the day after
 they activate the policy, they pay the full face value to
 your organization.
 Rudi: could you post an explanation of how this works?  Probably
 Louis isn't the only one who doesn't know how it works.
Hello, Dan and others,

Rudi Hoffman writing from Daytona.

A brief primer on how life insurance works has been requested, and I am happy 
to oblige.

Life insurance creates an "INSTANT" cash estate, if you "die."

The face of the life insurance policy is the amount paid to the 
beneficiaries.  In the case of ALCOR cryonics policies, for instance, this is 
usually 120,000.  

So, whether it is term, Universal Life, or Limited Pay Whole Life, let's say 
the "face amount" of your policy is $120,000.

You pay one premium on this policy.  Even one monthly investment of 28 or 59 
or 72 dollars, for instance, depending on your age and the type of policy.

You have paid in this small amount of money, and you are struck by a Mack 
truck on the way to work.

Your heart stops beating, you are pronounced "dead" by a coroner or medical 

(As cryonicists and scientists, we know the brain pattern may still be 
intact, but as far as the "medical professional" is concerned, and the 
insurance company, you are clinically "dead.")

The INSURANCE company immediately pays to ALCOR or to CI or to your specified 
beneficiary the FULL $120,000!  

No probate, no concerns about creditors, no haggling with spouses, relatives, 
or any other parties takes place.

The insurance company has made a deal to pay $120,000 if you "die," and this 
is absolutely one of the strongest GUARANTEES, perhaps THE strongest 
guarantee, available in the entire financial arena.  

You paid in $78.32, got hit by a truck, and they pay out $120,000.  

Simple, easy to understand, straightforward.

What is unfortunately confusing at times to people is the way the LIVING 
estate, or CASH VALUE, of a life insurance policy works.

This is the part that accumulates over time, and can allow a policy to become 
"paid up" with no further premiums due, and the policy remains in effect for 
the rest of your life, no matter what.

The cash value can also allow the premium investment to stay level over an 
extended period of time, instead of rising every 10 or 20 years.

This is the part that is best explained with a computer illustration in your 
hand, so we can both see and understand the way the cash values accumulate.

But the FACE AMOUNT is the amount that is available for your suspension.

Hope this helps.  I would be delighted to explain this in person to anyone.  
You may feel free to call my 800 number. 800-749-3773, and we will go over 
any questions, without cost or obligation, till your heart and rational mind 
are both comfortable.

I am also in process of writing the DEFINITIVE, and interesting and 
understandable book on the subject of insurance and especially cryonics 
insurance.   The working title is 

"The Affordable Immortal...How to use Life Insurance to afford cryonics"

We will keep you informed.

Thanks again, Dan and others, for your support, business, trust, and 

Warmly and Professionally Yours,

Rudi Hoffman CFP

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