Financial Preparation

Insurance

Cryonics members must execute either a fully funded beneficiary trust or secure an insurance option to be designated as “paid-up” for their assured transition to Cryonics Asia “patient status” with seamless access to our cryopreservation and suspension facility. This will assure our Cryonics Asia. Ltd. members intervention in their dying process and a “gold standard” preservation and suspension outcome.

Your Cryonics Financial Planning Horizon

Have you explored the scientific viability of the possibilities Cryonics may hold for the future? There are numerous scientific discussions on its promise, but what probabilities would you really be dealing with? If you are convinced of its potential viability, can your desire for immortality be included within your current financial planning horizon?

Cryonics is a speculative life support technology that seeks to preserve human life in a state that will be viable and treatable by future medicine. It is expected that future medicine will include mature nanotechnology, and the ability to heal at the cellular and molecular levels.

Cryonics is not an internment method or mortuary practice. Properly applied, Cryonics is an intervention in the dying process as soon as possible, after legal death, to preserve the brain as well as possible. Practitioners of the Cryonics process seek to prevent loss of information within the brain that encodes memory and personal identity, which is the true boundary between life and death.

Cryonics is an attempt to preserve and protect the gift of human life.

The purpose of Cryonics is to maintain life, not reverse death. Clients in Cryonic suspension are referred to as long term Cryonics “patients”.

If you ultimately chose Cryonic suspension as your final end of life wish, you must decide how to fund the costs of standby, transportation, and suspension with a Cryonics Organization. Should you take out a life insurance policy to fund your suspension? For most people, it makes sense to use life insurance to fund these exciting possibilities.

The choice to use life insurance provides for a guaranteed outcome for your end-of-life wishes and prevents your estate from being unnecessarily reduced in providing for the cost. Estate proceeds do not go to the Cryonics Organization at the expense of your survivors. Once insured, there is an immediate and sure payment upon death to your Cryonics Organization. This will assure your suspension. Also, survivors do not have the opportunity of second guessing your end-of-life choice by delaying or litigating your wishes.

There is an empirical way of determining the optimum funding that will appeal to most rationally minded Cryonicists.

Find out more about this exciting end-of-life choice. If becoming a long term Cryonics patient is what you really desire, we can help with creative funding; thus capturing the exciting possibilities of your Cryonic suspension.

Creative Funding Options with Insurance Company Products
Life Insurance

Used by the vast majority of current industry Cryonics Members, this is the most typical funding arrangement because it is affordable on a day-to-day basis (see table below for illustrative costs). Cryonics Asia or the designated Cryopreservation Facility is designated as both the beneficiary and owner of the life insurance policy (revocable if membership terminated), although Cryonics Asia may accept co-ownership and/or collateral assignment on large policies.

The death benefit must equal or exceed the amount required for cryopreservation. Periodic premiums are paid to the life insurance thus enabling the cost to be spread over an extended period of time. Cryonics Asia or the designated Cryopreservation Facility makes a claim on the policy only after the legal death of the member.

Types of Life Insurance
There are three types of life insurance: Term Insurance, Whole Life Insurance, and Universal Life Insurance.

  • Term Insurance offers coverage for a “term” or period of time, such as 10 years or 20 years. During that term, the cost of insurance does not change. Term Insurance is a low-cost option and can often be converted to a Whole or Universal Life policy, which will cost more but will not terminate after a period of time. If using a Term policy, the applicant should ensure that it can be converted or renewed. Otherwise, changes in health status during the term can leave a person uninsurable. If the policy terminates before being converted, the Cryonics Asia Membership will not continue unless a new policy is obtained.
  • Whole Life Insurance is insurance for the duration of a person’s life (no expiration date) and costs more than Term Insurance. It builds cash or equity over time, which is tax deferred and protected from creditors. In the case of a limited pay whole life or universal life policy, the policy can accumulate enough cash value to become "Paid up." This means no further premiums are due and the policy will remain in place until the face amount is paid out. In later years of life, when earning power may be lower, this can be helpful, as it keeps the policy in force without making payments.
  • Universal Life Insurance, also called Adjustable Life, can be thought of as an account in which money grows at current interest rates. Out of this fund, the insurance company deducts the cost of insurance. The cost for a Universal Life policy is typically midway between Term and Whole Life policies. Payments to a Universal Life policy can be increased or decreased within broad limits defined by the policy. It is possible to "Pay up" the policy with a single payment lump sum or pay the policy off over 7 years. Modern Universal Life policies sometimes have an underlying guaranteed rider which enables these policies to have the safety of Whole Life Insurance, along with better cash accumulation and greater flexibility of payments.

Illustrative Monthly Premiums for Life Insurance

The table below provides some illustrative rates for life insurance. All rates were quoted August 2010 with an A-rated carrier, for a “preferred non-tobacco user.” The first example below is for a 30-year level term life insurance policy, upgradeable to whole/universal life insurance with no evidence of insurability. The remaining examples are for universal life with a “guarantee to age 120” rider providing that premiums will not increase and benefit amounts will not decrease until age 120.

Quotations:

Applicant (August 2010) Benefit Amounts
$150,000 $200,000 $250,000
29-year term life      old      female, $22/month $26 $27
29-year term life      old      female, $55/month $74 $92
34-year term life      old      female, $67/month $90 $112
62-year term life      old      female, 243/month $321 $405

An Annuity

An annuity is “a savings plan with a life-insurance company”. As with prepaid funding, a lump sum is paid up-front, equivalent to at least the amount necessary to qualify for the applicant’s Cryonics Asia membership. Amounts above the minimum funding may be added to the annuity at any time. An annuity can provide the same level of certainty of funds being available to Cryonics Asia or the designated Cryopreservation Facility as a life insurance policy, without the restrictions of obtaining life insurance (age, driving record, health, etc.) and may provide a higher rate of interest return than other forms of funding

Requirements for Annuities:

  • A mechanism must exist to allow Cryonics Asia or the designated Cryopreservation Facility to continually monitor on-line the availability of the accounts earmarked for cryonics funding.
  • In the event of the annuitant’s death, all back end fees and surrender penalties must be waived.
  • Cryonics Asia or the designated Cryopreservation Facility must be the irrevocable beneficiary.
  • Only guaranteed, fixed annuities are accepted.
  • At least the minimum funding level must be maintained.

The only type acceptable to Cryonics Asia or the designated Cryopreservation Facility is a fixed annuity. In this plan, the life insurance company provides a guarantee that the principal (the initial lump sum) and the interest (the growth on the account) remain available for payment to the beneficiary. Some fixed annuities declare a specified rate for a given time period, similar in concept to a bank certificate of deposit (CD). One year, five year, and ten year periods are available, all with guaranteed interest rates. After the end of the period, a new rate is established by the insurer.

A more recent fixed annuity is the guaranteed index annuity. This is a type of fixed annuity that has the following features:

  • The principal (the original lump sum) is guaranteed. In most cases and states, this is guaranteed by both the highly-rated insurance company and the state government (in the unlikely event of insurance-company failure).
  • The growth on the money is determined by the change in a stock market index, such as the Standard and Poor’s 500 index. A floor is set so that a declining index does not decrease the annuity’s value.
  • Growth in these annuities accumulates tax-free until withdrawal, allowing compounding of interest that might otherwise be reduced by taxation.
  • Upon pronouncement of the owner’s “death,” the annuity proceeds pass directly to the specified beneficiary. With a properly-designated beneficiary, there is no delay or reduction of assets which otherwise could be caused by a probate process.

The annuity owner can remain the individual who is doing the funding. Also, while not technically required, it is recommended that the life insurance company issuing the policy be apprised of the annuity’s purpose.

Annuities meeting Cryonics Asia and the designated Cryopreservation Facility criteria require no additional legal or Board review. Modified and individualized annuities may be used, and are treated similarly to special trusts, requiring specific legal review at applicant’s expense, and Cryonics Asia and the designated Cryopreservation Facility Boards of Directors approval.

NOTE 1: If you are using life insurance to fund your cryopreservation, ensure that your agent is aware of these policy requirements:

  • The insurance provider must be rated A- or better by A.M. Best (www.ambest.com)
  • The Cryonics Asia Foundation, Inc. must be named as the owner and beneficiary of the policy (See Buy-Back Agreement for confirmation that Cryonics Asia rights as the owner are both limited and revocable)
  • Cryonics Asia will need a complete copy of the policy, from the face page to the last rider, including the policy illustration and application
  • With the exception of billing statements, all notification regarding the status of your policy (lapse notices, annual summaries, etc.) must be sent to Cryonics Asia.
  • The death benefit amount must satisfy your minimum cryopreservation amount (See Schedule A)
  • Cryonics Asia recommends that you overfund your policy by at least $25,000 to cover unexpected contingencies, the cost of which may be additional to the minimum fee for cryopreservation.

NOTE 2: It is the strong opinion of Cryonics Asia. Ltd. that “posted” cryonics pricing and cost estimates emanating primarily from the USA non-profit providers (possibly with the exception of ALCOR) are far out of line with what one would actually be facing on a case-by-case ALL IN quotation bases. It is not just the cheapest cost to get the body into a nitro deep freeze tank.

Any low-end estimates should be viewed as out-and-out fraud where the patient will find themselves greatly underfunded in suspension maintenance and resuscitation cost contingencies at future dates.

Cryonics Asia, Ltd. estimates the patient’s expected ALL IN costs to be in the eventual range of $350,000 to $450,000 USD.

This will assure a “gold standard” preservation and suspension as well as adequate funding to assure resuscitation. Interest rates and inflation assumptions will largely affect trust capital preservation over a 200 year horizon. Reliance on foundation donations and an eventual trans-humanist world of “singularity” is fantasy thinking or poor probabilities at best.

Cheap preservation and suspension quotations are not the entire story.

Each member’s situation must be evaluated on a case-by-case basis. Cryonics Asia, Ltd. is ready to consult with you and your financial advisor on these critical financial matters.