X-Message-Number: 9745
Date: Tue, 19 May 1998 16:34:36 -0800
From: American Cryonics Society <>
Subject: Borys Wrobel's Cryonic Suspension Funding Idea

The "crude idea" Borys Wrobel discusses in CryoNet Message #9728 is
essentially, to have his cryonics society engage in self insurance.  This
is sometimes called "risk assumption" in that the company decides what
amount of risk it can afford to assume, which strategy would at least save
the money that would go for profit to the insurance company.

In some previous post, someone suggested the Fraternal Order as a model for
cryonics societies.  That model has appeal from the standpoint of risk
management.  Some of the Fraternal Orders (such as the Foresters) were
founded to, among other things, provide a kind of self insurance to members.

Presently, self insurance would divert so much time and energy away from
other activities, that it is not a good idea.  When societies have
membership bases of thousands of people, not hundreds, we can consider this
strategy.

Borys' goal of putting a little money on the line now to secure his cryonic
suspension, then going about his business, can be accomplished with
existing insurance products.  Use of insurance for cryonics is complicated,
and specifics of any plan should be provided by insurance agents or other
insurance specialists.  The following is just general information to give
Borys and other people in his age group a handle on what might be required
in the way of such payments.

A payment of $3,750 assuming 5.5% (non-guaranteed) interest and current
mortality rates, could maintain a 50k insurance policy when made by someone
of Borys age (22).  Please note that this is NOT a quote, illustration, or
a solicitation for insurance sales, and such an initial payment would
exceed the Modified Endowment Contract (MEC) limit (to make the policy
proceeds taxable).

Another plan for a "starving student" is to enroll under the ACS student
plan.  Students pay just $55 a year while they are in school and through
the first year after graduating.  Term life insurance for $135k for someone
in this age group for a non-smoker in good health would be in the
neighborhood of $100 to $125 per year.

If Borys wants a US or Canadian insurance policy, it would be a good idea
to check into this possibility now.  Some insurance companies may more
readily issue insurance for foreigners residing in the US than those living
out of the country.  Also, any medical examinations which might be required
by the insurance company can be more easily accomplished in the US; and
some companies will require that the application be signed in the US.  Also
be aware that many insurance companies will decline an application from
someone (even a US citizen) who is planning on living in some parts of the
world (many countries of the Mid-East, for example).


Long life,

Jim Yount


=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+American Cryonics Society
(650)254-2001
                      FAX (650)967-4444
P.O. Box 1509
Cupertino, CA 95015
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