X-Message-Number: 1204
From:	Ralph Merkle <>
Subject: Re: Terminal sign up
Date:	Fri, 18 Sep 1992 10:38:44 PDT

Various mechanisms for a surcharge for last minute cases have been suggested.
One mechanism has been to require a recent insurance policy.  Unfortunately,
many people already have insurance in place and so do not need an additional
policy, while others (even though they are terminally ill) can purchase a
policy (though at a higher price).

An alternative suggestion was to have a surcharge if the patient is suspended
within two years of signing up.  This is simple to enforce, would be uniform
across all members, would insure that almost all last minute cases would pay
a surcharge, and yet would require a surcharge for very few of the prudent
members who sign up in advance of need.  The relatively healthy person who
signs up in advance of need would have to purchase two years of term life
insurance to cover the surcharge.  The cost of purchasing two additional
years of term life insurance for a healthy person is minimal.  If the cost
of purchasing the term insurance is substantial it indicates there is a
significant risk the person will be suspended in the near future: precisely
the case where a surcharge should be applicable.

Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=1204