X-Message-Number: 9846
Date: Tue, 2 Jun 1998 20:16:12 -0800
From: American Cryonics Society <>
Subject: Prepaid Suspension Costs and "Grandfather" guarantees

In a previous post I gave the reasons ACS does not offer guarantees against
future suspension cost increases to members.  I will make three additional
points:

Adverse Government Regulation

Thus far, cryonics is small enough that we have been largely ignored by the
regulators.  But does anyone really believe we can escape regulation?  If
so, we will be the first "industry" that has.  Is there anyone who thinks
regulation won't bring with it higher costs?  Maybe double?

(By the way, today I had the first opportunity I can recall to vote for a
cryonicist on my California primary ballot.  I voted for Libertarian
Kennita Watson.  Pretty much a vote FOR cryonics and AGAINST regulation!)

Guarantees on Life Insurance

ACS does not guarantee future prices, even if people pre-pay suspensions
(except on a very short term basis).  The actuaries for life insurance
companies have a hard enough time guaranteeing that the insurance company
will pay in 50 or 100 years.  They assume very low interest rates, have a
couple hundred years experience with such forecasting, own half the money
in the world, and have a network of mutual assistance from other insurance
companies.  Still there are occasions of the system failing, and are a very
highly regulated industry.  Now WE are going to make similar guarantees
given all the uncertainties we argue about daily?

Guarantees through Grandfather Provisions

People often misunderstand the programs of other organizations, so will
those in Alcor who know this situation please correct me if I am wrong
about the following?  A few years ago, as part of a recruitment drive,
Alcor grandfathered in its (then) present members, guaranteeing that they
would not be subject to any further price increase for suspension.  New
people would have to pay an increased cost for suspension, the
"Grandfathers" would not.

I shudder to think of the possible problems ACS could have were it to
gamble on such guarantees.  The risks would be unacceptable.

Of course, if a society grows at a leap-frog rate, then the percentage of
people paying the low price would be so small that there would be little
added cost to new people.  I would be interested in learning the basis for
Alcor making this decision.  What the assumptions were?  Was this a
guarantee only under certain circumstances?  What percentage of Alcor
members are covered under this grandfather provision?  Is there a similar
guarantee of present suspension costs (assuming the same technology) for
people enrolling now?  If not, is similar grandfathering planned for the
future? Is the fact of the lower price guaranteed to "Grandfathers"
disclosed to new members?  In hindsight, was it a good idea?

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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