X-Message-Number: 16320 From: Date: Thu, 24 May 2001 04:52:53 EDT Subject: Life Insurance and cryonics funding In a message dated 5/23/2001 5:01:09 AM Eastern Daylight Time, writes: Actually, Jan Coetzee writes: << I have term life insurance which is becoming progressively more expensive. At the age of sixty this is worrisome. CI is the beneficiary of the life insurance. My youngest son who is extremely bright (He is entering college) and my ex-wife who respects my whishes agreed to keep two checks made out to CI. Each one one check.The amount is not filled in. I trust both because they do not need money. The money is kept in a special checking account. When clinical death is imminent. CI will be informed and the money wired. I will appreciate opinions before I take action. >> Dear Jan, Rudi Hoffman writing from Daytona, FL regarding your important posting above. Term life insurance is remarkably inexpensive in the early years, before age 60 or so. The challenge is that the renewal term rates escalate. Because mortality curves, which are the foundation for insurance rates, curve up in an ever steepening curve and rise to virtually vertical, or 100% mortality at age 100. This is why many people choose to elect a "permanent" form of insurance like Universal Life or Limited Pay Whole Life. While more costly initially, the additional costs go to accumulate a "Cash Value" growing at current interest rates. Right now, the growth rates on policies I make available are a more than respectable 5.75% on a tax free and creditorproof basis. In some cases, the growth can even be in a series of mutual funds selected by you, which also grow tax deferred and creditorproof. The term insurance I sell is upgradable to UL or LPWL without evidence of insurability. This "upgradability" is not an uncommon feature, and may be applicable in your current policy. Here is the key "BOTTOM LINE." If you are insurable, the best thing for you to consider would almost definitely be a new "permanent" type of coverage. I would be pleased to bid on this and advise you regarding optimal funding. If you are no longer insurable, or your health is such that reasonable rates are unlikely, your current policy may be upgradable to a Universal Life or Whole Life at a rate higher than you are paying now, but the rate would lock in and not go up in the future. Each individual has a "fact set" of circumstances that determine the optimal funding. Life insurance typically has at least two advantages, and here they are: 1. From a strictly mathematical standpoint, life insurance premiums are the most cost effective way to immediately create a lump sum at "death." In most cases, the lost interest in setting aside a lump sum of money for your suspension would pay for the policy. Example: A 50 year old, wanting a $50,000 lump sum to pay CI or neurovitrification with Alcor, could escrow this could put it in the fixed, boring investments required by ALCOR and get 5% interest. If you can average 10% by keeping the money elsewhere, a reasonable assumption with even a conservative mix of mutual funds over time, you have an extra $2,500. $2,500 will buy a PERMANENT life insurance policy on a healthy 50 year old, and this policy will even become fully "paid up" in about 7 years. And, the original $50,000 is still available for your heirs! Which brings us to reason number two about insurance funding: 2. Life insurance creates an immediate and SURE instant estate that DOES NOT COME OUT OF MONEY THAT WOULD GO TO YOUR KIDS! So there is less likelihood of your wishes being second guessed by your heirs. May I respectfully suggest that an ex-wife and a college age son are not ideally suited to GUARANTEE your wishes will be carried out? You are putting an enormous, potentially unfair burden on them, and potentially creating huge controversies and complications that could: 1. Cause your funding to be less than secure; and 2. Cause enormous stress, complication, controversies, and rifts in your heirs that could cause the people you care about to become estranged for decades. Yes, I know everyone thinks that "My family is different, they would never fight over mere money." But I have seen this exact thing happen, eve with heirs that have significant assets. Families can be split for generations over much less controversial things than cryonic suspension!:) Here are some things you may want to consider. May I respectfully suggest the following? Life insurance in America bypasses probate, going DIRECTLY to the specified beneficiaries. Creditors and heirs, greedy relatives and wannabe money grabbers have ZERO claim on your properly specified life insurance proceeds! So, from both a financial standpoint and a legal standpoint, it almost always makes sense to use life insurance to fund your suspension. I would welcome the opportunity to PROVE this to you, in your individual situation, given your particular "Fact pattern." As always, I can be reached at 800-749-3773, or email , or website rudihoffman.com I am passionate about showing people how reasonable and affordable it is to be a FULLY SIGNED AND SECURELY FUNDED cryonicist. This is why I have over 100 cryonics policies in my files, (with virtually 100% persistency/renewal BTW), and a bunch of satisfied cryonics clients I count as friends. Many of whom are reading these words. (And if you *are* one of these, thanks again for your business!) I am to my knowledge the current leading writer of life insurance for cryotransport in the world. Jan, your concerns about term insurance rates going up are legitimate. But asking your child or ex-spouse to cut a big check may not be the best way to handle this. If you were my own brother, I would ask you the same question I am asking you now. Have you explored all the alternatives? Is there someone out there who UNDERSTANDS this market and who UNDERSTANDS both finance and life insurance? May I modestly say that the answer to the second question is "Yes...and his name is Rudi Hoffman?" Warmly and Professionally Yours, Rudi Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=16320