Cryonics

Why Fund Your Suspension with Life Insurance?

by Rudi Hoffman, CFP®

“I expect to have the money to fund my suspension in cash eventually. Mr. Hoffman, why should I take out a life insurance policy to fund my suspension?”

This question in some form comes up often in discussions with people with an interest in cryopreservation. The good news is that there are answers that are mathematically valid, (i.e. not merely opinions) and that make sense to most people.

The purpose of this article is to answer this question in a clear, concise, understandable manner. Additionally, we will see that there is an empirical way of determining the optimum funding that will appeal to most rationally minded cryonicists.

Let’s personalize this with a discussion of a hypothetical individual “Jack” who is a 45 year old software developer.

“Okay, Jack, so you want to be cryogenically frozen with the possibility of future reanimation. You have thought about it for some time, but you are of a skeptical and questioning nature, and you have a consituency in the form of a wife and family who are not at all sure if you have not gone off the deep end and do not share your enthusiasm for the possibilities of technology”.

“You want to create $120,000 for a full body suspension with ALCOR. You are excited because your mutual funds have been growing well, your career is taking off, and you expect to be seriously wealthy in the future. You want to do the best thing to assure your funding. You have negotiated with your wife, and you and she have decided that you can spend $1000 dollars per year towards cryonics funding.”

Here is the key question. Is is better for Jack to spend his 80 dollars per month in a mutual fund, or a life insurance policy, to fund his suspension?

Here are the facts. Jack, a healthy nonsmoker, can create an INSTANT $120,000 to fund his suspension in a permanent Universal Life policy. Once he pays 80 bucks and qualifies, there is an IMMEDIATE and SURE payment to his cryonics organization to assure his suspension. The money does not go the cryonics organization at the expense of the survivors. This $120,000 does not have to come out of the estate Jack is leaving for his wife Mary and the children. Nor do they have the opportunity of second guessing Jack’s choice and delaying or litigating Jack’s wishes.

On the other hand, let’s say Jack puts his $80 dollars per month into a mutual fund. Even if he averages a great return, it will take decades to generate the required $120,000.* What happens if Jack is struck by a truck on the way to work tomorrow? There is no full funding, and Jack will not be suspended.

What if Jack lives long enough to have adequate funding in his account? When Jack “dies” there is $120,000 which Jack has earmarked for his suspension. But this $120,000 is a much clearer target for any of Jack’s potential heirs to contest.

Jack’s kids all turned out great. Except for the youngest, Leroy, who felt the world owed him a living. Jack had left each his children $200,000 in his will. But Leroy wanted at least part of the $120,000 Jack had earmarked for suspension! Do you think Leroy could find an attorney who would take this case? Could the money be tied up in a legal battle? Do will and estate contests occur over much less controversial issues than funding cryostasis? Absolutely! And these funding controversies HAVE and WILL CONTINUE to occur.

There are other issues. If Jack is not insurable due to health reasons, he will not be able to obtain life insurance to fund his suspension, and he would be forced to fund his suspension from his estate.

Most people become uninsurable at some point in their lives. It therefore makes sense to find out how affordable it can be to fund your suspension with the incredible financial leverage that only life insurance provides. It the case of cryonicists, the policy can truly become LIFE insurance-- not DEATH insurance.

Cryonicists tend to be life extenionists who take great care of themselves and thereby can usually qualify for the best possible insurance rates. (I spend a good deal of time explaining this information to insurance companies!)

In conclusion, for most people it makes sense to use life insurance to fund the exciting possibilities of cryonic suspension.

*80 dollars per month =960 per year. 960 annual payment
12 % after tax compound yield
25 years to grow to $128,001
(22 years at 15% after tax yield)

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