X-Message-Number: 6063
Date:  Thu, 11 Apr 96 17:29:32 
From: Steve Bridge <>
Subject: Alcor's Emergency Responsibility Fees

To CryoNet
>From Steve Bridge, President
Alcor Life Extension Foundation
April 11, 1996

In reply to:   Message #6054
               Date: Wed, 10 Apr 1996 14:05:47 -0400
               From:  (Dan Howe)
               Subject: Cryonics Pricing

>What I find distressing about the funding of Suspension costs is the
>flat rate for a yearly "response" fee.  I am currently paying
>US$360/yr to my suspension organization in preparation for my
eventual deanimation.

>Statistically, I expect to have another 50 years until my suspension
>will become necessary.  This makes my net costs for neuro to be 50k +
>50yrs*360 = 58,600.  If I were terminal, and had -statistically- 1
>more year until deanamination my costs for neuro would be 50k +
>1yrs*360=50,360.

>Now, the expenses related to my suspesion would be the
>(expense/yr)*49yrs LESS than the patient with 1 yr to go since I
>wouldn't have entered into suspension for another 49 years (not only
>will I not be an expense, I'll be an INCOME for an added 49 years).
>Why is that the payment plan is structured such that I am paying MORE
>for a service while eventually costing my suspension organization less?

>This type of payment structure encourages people to hold off
>suspension until they actually need it.  That's a dangerous thing for
>people to do since it usually results in their burial.

>Has any of the cryonics organization considered pricing plans similar
>to the insurance industry where your costs go up as your risk does?


     Dan, your criticisms are based on some false assumptions and a
rather narrow outlook.  There are several points to be made here.
Since you're using Alcor's numbers, we'll talk from Alcor's viewpoint.

1.  If Alcor had a few million dollars in investments outside of
patient care funds, we could afford to just sign anyone up when they
become terminal (assuming THEY could afford it by then).  We're not in
that situation.  We need income flowing in on a regular basis to pay
for staff, supplies, public relations, office expenses, etc.

2.  Alcor has to be prepared to do the best job they can *no matter
when you deanimate.*  "Statistically," sure, you might live another 50
years.  Or you might need us next month.  How much are you willing to
bet on statistics?  Your annual dues pay a portion of keeping your
suspension organization in full operation every day -- not just the
day you might happen to cool down.

     Frankly, if we were to charge members the *true cost* of running
Alcor, they would be paying $600.00 per year in membership.  We are
able to keep the rate lower because of donations from the people who
understand that having a solid organization in place protects them.

3.  You are confusing "costs" with "income."  You won't cost Alcor
LESS to freeze in 50 years, you will cost Alcor MORE.  Do I really
need to explain the concepts of "inflation" and "technology
development?"

     What are the odds that Alcor's minimum neurosuspension funding in
50 years will still be $50,000?  Over the years, Alcor's minimum
requirement for neurosuspension has been raised from $35,000 and then
from $41,000.  However, so far Alcor has been able to continually
"grandfather in" long-term members at their original suspension
minimums.  We want to do this *because* the members have been
supporting us all along.  We *only* do this for the people who have
remained members all of these years.

4.  We have been told that charging suspension members based on
categories like age or other similar risk factors could, de facto,
*make us* an "insurance company."  Have you ever spent time in a law
library reading the regulations under which insurance companies
operate?  We would have to hire several more full-time staff just to
keep track, the expense for everyone would go up, and we'd probably
just be out of business.

     People who wait 50 years to join Alcor (or to sign up for
cryonics at all), risk the chance that:

A.  the true costs of neurosuspension minimums may be $75,000 or more
by then, and we will have raised the rates for newer members.  (This
is a strong possibility.)

B.  their terminal illness *or sudden death* comes rapidly enough that
they cannot sign the paperwork in time to be frozen.

c.  that because they were not a suspension member all of those years,
they didn't have a cryonics organization to continually remind them to
keep their funding in place; so they can no longer get insurance or
afford cryonics in other ways.  (You may THINK you are so bright and
clever that you will be a gadzillionaire any day now and will never
lose it; but life isn't so predictable.)

D.  that because they and other people like them did not support a
cryonics organization with their on-going memberships, there *are no*
cryonics organizations left to freeze them, or the ones that do exist
are decades behind where they should be.

     Life isn't pretty; but it's better than the alternative.



Stephen Bridge, President ()

Alcor Life Extension Foundation
Non-profit cryonic suspension services since 1972.
7895 E. Acoma Dr., Suite 110, Scottsdale AZ 85260-6916
Phone (602) 922-9013  (800) 367-2228   FAX (602) 922-9027
 for general requests
http://www.alcor.org


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