X-Message-Number: 20431
From: "John de Rivaz" <>
References: <>
Subject: Re: Cryonics funding methods
Date: Mon, 11 Nov 2002 17:21:16 -0000

> So, in order to net our $1000 per year, we need to gross before taxes
> At our 3% assumed guaranteed rate, we will need a lump sum of $40,000
> the 1200 by the interest rate of 3%, $1200 divided by .03 is $40,000.)

Thanks Rudi, that's about what I would have expected.

So in 1990 someone could have bought approx $100k of insurance and paid for
it by savings income from $40k. Instead he could have used the $40k to have
bought stock exchange investments which even after the boom and bust would
still be worth nearer $200k.

I would agree that there is some leverage with insurance, and your
calculations show what the leverage is: 1 to 2.5. This is particularly
useful if the client dies within a decade or so. He is certainly better off
with insurance rather than investments. But the leverage does diminish with
time. The other advantage in buying insurance is that many people don't have
$40k to spare and far more people can forego $1k/year, especially if they
are income rich and capital poor.

I would also agree that there are some legal advantages to life insurance,
but it only takes a politician to stand up and make a speech to remove
these, as long as he can persuade his colleagues. There is pressure to do so
inasmuch as governments around the world are less willing to use their tax
income to fund citizens' terminal care. If citizens are still managing to
bankrupt themselves to make the state fund their terminal care and yet can
keep life policies the can use to pass funds to the next generation, then
politicians short of tax funds will not remain contented with this

It is my view that cryonics organisations would be wise to make arrangements
to ensure prepayment as safe or if not more safe than life policies. They
are more motivated to fight for their clients than life companies.

Sincerely, John de Rivaz:  http://John.deRivaz.com for websites including
Cryonics Europe, Longevity Report, The Venturists, Porthtowan, Alec Harley
Reeves - inventor, Arthur Bowker - potter, Holistics, de Rivaz genealogy,
Nomad .. and more

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