X-Message-Number: 31018 From: Date: Fri, 5 Sep 2008 17:33:30 EDT Subject: Life Insurance Funding, some definitive information from Rudi... Hello, Dear Cryoneters: This is Rudi Hoffman from Florida. Hope you are giving your life the maximum effort it deserves, and that your life is providing at least a reasonable amount of joy and satisfaction. It has been some time since I posted on Cryonet. I just returned from a conference/gathering in Las Vegas regarding cryonics trusts-- and solidifying cryonics logistics-- and figuring out ways to maintain and grow wealth while in cryonic suspension. A wonderful gathering, attended by very intelligent and creative people. Most of them a lot smarter...and a lot richer than I am. Congratulations to the genuine cryonicists reading this post...you are in a group composed of some of the best educated and intelligent people on the planet. In catching up on cryonet postings, I noted the discussions of life insurance. I want to thank Finance Department and John DeRivas and others who corrected the posting re: your life insurance cash value being at risk. The purpose of this posting is to be precise and compelling regarding funding and life insurance information. The following is germaine: 1. Cryonics funding life insurance is normally structured with the cryonics organization as OWNER as well as beneficiary or partial beneficiary of the policy. Of the hundreds of policies for funding cryonics I have personally written over the last few years, there are less than a handful which are not owned by the cryonics organization. This obviously means that the policy (s) are NOT in your name, and do NOT count as an asset for medicaid qualification purposes. Additionally, for estate planning purposes the life insurance is generally owned by a trust, in a so called "ILIT" or Irrevocable LIfe Insurance Trust. This keeps the policy cash value AND the death proceeds out of the estate of the insured, and means that the resulting proceeds are NOT subject to probate and estate taxes. Proceeds are also generally free of income taxes, and creditorproof. 2. The guaranteed universal life policies we normally fund suspensions with have a relatively low cash accumulation value, as they are not designed as "overfunded" tax free life insurance investment programs. The cash accumulations in these policies would generally be under the "medicaid minium" and allow the policy to remain in place. Neglecting to buy your life insurance on the chance that you are going to be indigent and on government dole programs and have to spend down part of your cash value in your life insurance is just plain ridiculous. 3. Life insurance is normally, even if OWNED by the insured, PROTECTED from creditors. This is, of course, a distinction from the concern over "spend down from medicaid/medicare." But it is a very important and related provision of life insurance. The specific state by state chart showing this is referenced here: _http://www.assetprotectionbook.com/s1_asset_protection_state_resources.htm_ (http://www.assetprotectionbook.com/s1_asset_protection_state_resources.htm) 4. If you do not have SOLID, PROVEN funding in place to secure your suspension, you are NOT a real cryonicist. You can call yourself an "activist" or anything else you want. You are not just putting your own suspension at risk. If there are delays in your suspension due to your neglecting to "have your act together" regarding the written and properly funded directives to put you into suspension, there is a risk that you may give the entire enterprize of cryonics a black eye. You make this noble effort appear amateurish and ignorant and unscientific. Some planning, even imperfectly done, is better than waiting until it is too late. 5. In should be pointed out that life insurance policies with named beneficiaries AVOID the delays and problems of probate. In other words, if your cryonics organization is named as beneficiary or partial beneficiary of the policy, your proceeds will go directly to the named beneficiary upon pronouncement of legal "death." This information, which is accurate, supercedes and corrects some of the disinformation that has been posted on cryonet recently. An actual case I delivered a cryonics "death benefit" on involved an individual whose four children were VERY unsupportive of their father being suspended. It did not matter. Your wishes will be carried out if you have funding and directives set up properly. If you don't, they won't. It is that simple. 6. Folks, this is a DEADLY serious issue. Proper and solid funding for your suspension, for the suspension of people YOU care about, is absolutely vital. If you are unsure about some element of the cryonics process, or any of the variables that people have legitimate concerns about, so be it. But, please, get your funding in PLACE, make your family or loved ones or a charity the beneficiary until you get your questions answered to your satisfaction, and then you can always REDIRECT the beneficiary and ownership of your policy. If you can't afford a permanent universal life policy, buy an upgradable term policy, which locks in your insurability and your rate for a term or period of time. Do your homework WHILE you are covered and have secured the OPTIONS you may want for yourself and those you care about. FUNDING is MISSION CRITICAL to your suspension. It is not something you should be getting advice from dillatantes and cousin Billy Bob about, or even well meaning and unevenly informed posters on cryonet. 7. Sorry if any of this sound unduly harsh or cold or unfeeling. Like most of you, I genuinely CARE about both the realities and the perceptions about cryonics. This lifeboat must be as secure as we can make it. My sincere thanks go to the foresightful humans making cryonics a viable and workable alternative to non-existence. I would be happy to be corrected if any of the above is not accurate or precise or is incomplete or misleading in any way. Because reality matters to folks like us. Respectfully Submitted, Rudi Rudi Richard Hoffman CFP CLU ChFC Board Member Financial Planning Association fpafla.com Board Member Salvation Army salvationarmy.org Member Alcor Life Extension Foundation alcor.org Certified Financial Planner(TM) CFP Board of Standards Member Libertarian Party libertarianparty.org Member National Rifle Association nra.org Member World Transhumanist Association http://transhumanism.org/ World's Leading Cryonics Insurance Provider rudihoffman.com **************Psssst...Have you heard the news? 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