X-Message-Number: 21266 From: Date: Tue, 25 Feb 2003 10:09:42 EST Subject: Re:Open answer to Mike Luckow re: insurance for cryonics --part1_1a4.110926b4.2b8ce136_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit In a message dated 2/25/03 5:01:40 AM Eastern Standard Time, writes: > Date: Tue, 25 Feb 2003 03:46:22 +0900 > From: Mike Luckow <> > Subject: Open request for advice about insurance and organization > > This is a multi-part message in MIME format. > > --Boundary_(ID_z6oGADpQBEdWXRNbEzVtmg) > Content-type: text/plain; charset=us-ascii > Content-transfer-encoding: 7BIT > > Hello all, > > > > I decided about three years ago to sign up for cryonic suspension, but I > haven't done it yet because of two reasons: 1) I simply don't know what > kind > of insurance I should get to fund it, and 2) I don't know which > organization > I should contract with for the service, Alcor or CI. > > > > First, with regard to the insurance: > > > > Should I get term insurance, whole life insurance, universal life > insurance, > or some other kind of funding method? > Response from Rudi Hoffman: Hello, Mike. I understand the confusion about types of life insurance. This is why I am writing a book--hopefully THE book--on cryonics funding and insurance. But the basics are reasonably straightforward. To summarize a short article on my website, rudihoffman.com, titled: "Why Fund Your Suspension with Insurance," the logical and mathematical answer to optimum funding *IS life insurance--IF you are insurable (don't have major health glitches) and are under age 80. Re: types of insurance, not quite as straightforward, but still readily graspable. Term insurance is life insurance for a TERM or period of time. Usually 10, 20 or 30 years of coverage where the face amount and the premium both stay level. This may be the answer initially, as the cost is much lower during the initial period or term of time. The challenge comes at renewal time, when the rate (premium) jumps up. Not a little up, but perhaps 15 or 20 times the original premium. And it jumps up in the later years, just when folks are retired, making less money, and often uninsurable, so they can't get coverage elsewhere. This is why the Life Insurance Marketing Association (Limra) has stats showing that only about one in 20 term policies ever pays a death benefit. We tend to die at older, not younger ages. Rather obvious, and mathematically verifiable. Which is why the term insurance I DO sell is 1. Very affordable, among the lowest priced terms based on internet spreadsheets of highly rated carriers. 2. With companies who have put in WRITING on their letterhead they have no problem with CRYONICS organizations as owners/beneficiaries. and 3. UPGRADABLE to a permanent plan of insurance like UNIVERSAL life with no evidence of insurability. So, even if cost considerations require you to start with a quality term policy, you can upgrade in a few years to a permanent policy, and NO evidence of insurability is required. Universal Life builds a cash value. Dollars invested go into an account, paying a respectable interest rate currently a shade under 6%. Out of this account comes the internal cost of the life insurance. By titrating or adjusting the premium and using conservative and reasonable assumptions, one can develop a very cost effective policy that is PERMANENT...i.e. it goes past age 100 with no further premiums. If you pay enough, and/or the interest rates rise (which they probably will...we are in an anomolous low rate period currently) the policy can even become "PAID UP", which simply means there are no further premiums required and the "death benefit" stays in place with cash accumulating in the policy. > Continuing Mike's questions: > > Is there a general consensus among the people in this group as to which > type > is best? Or let me put it another way: which type of insurance is > preferred > by the majority of people here? (Would term insurance even work? What if > I > die after the end of the term?) Is there a good FAQ somewhere that > discusses the pros and cons of each type? I've read bits and pieces of > information here and there, but I'm still confused about what I should do, > and insurance has been my main impediment for the last three years. > > > Response: The article on my website may answer some of your questions. rudihoffman.com. And, there is a discussion group being developed for folks still checking out the cryonics alternative on Yahoo. If you do a yahoo.com search, this discussion group will emerge. I am always happy to provide rates and options for SERIOUS inquiries. I can be reached at or if you are in US 800-749-3773. Good luck in your researches, and I hope I can be of service. Warmly and Professionally Yours, Rudi Hoffman CFP Leading writer of cryonics insurance on planet earth. --part1_1a4.110926b4.2b8ce136_boundary Content-Type: text/html; charset="US-ASCII" [ AUTOMATICALLY SKIPPING HTML ENCODING! ] Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=21266