X-Message-Number: 9785 Date: Tue, 26 May 1998 21:02:35 -0800 From: American Cryonics Society <> Subject: Standby and cryonic suspension options Borys Wrobel recently introduced the subject of funding standby for cryonic suspension. The means to pay a team to be on location, ready to start a suspension upon the member's death, has frequently been a topic on CryoNet. However, use of a unique insurance rider to provide such funding has not been widely discussed. In Message #9764 Borys Wrobel wrote: BORYS ON STAND-BY: >I am also thinking about stand-by fees at that point. MY REPLY ON "STAND-BY": There is an interesting option available through life insurance to cover the actual cost of a standby, and to provide a guarantee for the American Cryonics Society, or other cryonics company, that these fees will indeed be paid. This option is called "Living Benefit Option" or "Early Benefit Rider" with some insurance companies, though these names are not used by all companies which offer this insurance "rider". When you have an illness highly likely to take your life within a couple of years, the insurance company pays some percentage of the death benefit to you while you are still living. I have seen this "early payoff" vary from 25% to 75% of the death benefit, depending upon the insurance company. The requirements for qualification also vary company to company. Some companies will pay, under this option, if a doctor (sometimes two doctors) certify that you are likely to die within two years. Other companies require that you be likely to die within six months. There is typically NO EXTRA COST for this rider. However, you are required to take an AIDS test, with negative results, to qualify. Of course this early insurance payoff will only cover SOME standby situations. For example, if you are badly hurt in an accident, and wish to have a suspension team standing by, then other kinds of standby coverage (such as prepayment of fees, or credit card options) would be needed. If you plan on using this option for cryonics, you need to have a policy, or policies, with a large enough face value (death benefit) to cover a possible lengthy standby and to meet the American Cryonics Societies (or other cryonics group's) minimum funding. One option is to have a separate policy, owned and controlled by you. Then, should life-threatening illness occur, and you qualify, you use your own insurance policy for early payoff. The policy with the cryonics company remains without any early withdrawals. There may be unfavorable tax consequences to such early withdrawal, however. Yet another insurance option for standby is to borrow against the cash value of a whole-life policy to pay standby fees. If you use a separate policy that you own (or is owned by a trusted family member or friend), then getting the money for standby is easy and straight forward. Unlike the Living Benefit Rider, there is no "qualifying" necessary. BORYS ON SIMPLIFYING ENROLLMENT WROTE: >I think that simplifying the sign-up procedure would make a big >difference. Many people might be put off by the lengthy and complicated >procedure. Even small improvements here might translate into increased >appeal of the sign-up process. MY REPLY: I agree with you on this, Borys. The devil is in the details. It is hard to have simple and uncomplicated sign-ups which also properly (legally) protect the member, the American Cryonics Society, and suspension personnel. We are working on it! BORYS ON THE CRYONICS COMMUNITY TEAMING UP WITH A SYMPATHETIC INSURANCE COMPANY: >I wonder, furthermore, if it would not be worthwhile to team up with a >specific insurance company so that it could provide a special program for >cryonics organization members. I do realize that it has its risks if the >insurance company folds up, but the members might have an option to use >another company still if they chose to. If we could get an insurance company to advertise that its insurance coverage is available for cryonics, then there could be an advantage to dealing with a "pet" company. We might be holding our breath a long time on that one. The insurance companies tend to be very conservative, and fear that their association with cryonics will negatively impact their other business. However, cryonic suspension is just a special estate planning need. There are products available now, through many insurance companies, which serve us well. BORYS ON CRYONICS COVERAGE OUTSIDE THE US: >The other problem is that it is available more or less in the US only, and, as I hear, in the UK. Is that so? MY REPLY: What we (or any cryonics company) can do for you in many parts of the world is very limited. In a lot of places you could be the only person signed up for cryonics in the entire country. However, SOMEONE has to be the first. With a lot of work, you can find some like-minded people (almost anywhere you choose to live) and can work together to improve the situation. Even without such friends, if you have enough warning that you are apt to die soon (many forms of cancer, for example), you can come to the US to spend your final days. Insurance proceeds, (either borrowing from a whole-life policy, or using the "Living Benefit Rider") could provide the funds for this trip. BORYS ON SIGN-UP OPTIONS: >PS: I would be very interested in finding out more about what *my* specific options for signing up now might be right now, on this forum or in private. Thank you in advance... MY REPLY: Start with the funding. I'll give you some additional information on specific insurance companies and insurance options by private email. A lot of the suspension options involve self-help, to one degree or another. If you are willing to make the effort, there are a lot of people who will lend a hand, with the expectation that you will offer help in return. Long life, Jim Yount =+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+American Cryonics Society (650)254-2001 FAX (650)967-4444 P.O. Box 1509 Cupertino, CA 95015 =+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+ Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=9785