As far as I can calculate, this option is never cheaper than using life insurance, so you should only do it if you are uninsurable (e.g. if you have already been diagnosed with a terminal illness) or if you’re in a huge hurry (e.g. you have less than six months left to live)...
Sure! Just to be totally clear, the question is whether one ever has to pay an amount in premiums that’s greater than or equal to the death benefit. We’re also talking about the lump sum prepayment option, not funding with a trust.
I got quotes for $100,000 worth of life insurance from several sources; let’s take a look at the most expensive option (whole life insurance from State Farm) and see whether we’d ever have to pay $100,000 or more into the policy:
I am ~25, which means I’m expected to live for ~60 more years. I was quoted $88/month. [$88/month]*[12 months/year]*[60 years]=$63,360.
My mom is ~65, which means she’s expected to live for ~20 more years. She was quoted $397/month. [$397/month]*[12 months/year]*[20 years]=$95,280. Okay, so actually if she lived to age 86 she would have to pay $100,000 in premiums on this policy – so my “never” was too strong. However, this policy is crazy expensive. My mom could get a whole life policy from a different carrier for only $272/month, which comes out to $65,280 over 20 years.
Mostly! Do you plan to do any posts on the other funding options, e.g. a trust? I generally prefer to pay for things as one-time expenses rather than recurring expenses due to my financial situation, and paying a large amount all at once is not an obstacle. I’m mainly concerned with total lifetime cost.
(edit to add) If that’s not something you’ve looked into much since it’s not relevant to many people, I’d also be interested in any sources or other folks you could point to about this.
I wasn’t planning on it, no. I did make a few attempts to find out more about funding with a trust specifically, but given the amount of effort I decided to put in, I wasn’t able to find out anything more than I’ve said above. My best guess is you should contact either Rudi Hoffman (the cryonics financial planner) or Linda Chamberlain (linda@alcor.org) (co-founder of Alcor and head of their Trust Department). I’d be interested to hear what you find out!
Would you mind showing your work on this?
Sure! Just to be totally clear, the question is whether one ever has to pay an amount in premiums that’s greater than or equal to the death benefit. We’re also talking about the lump sum prepayment option, not funding with a trust.
I got quotes for $100,000 worth of life insurance from several sources; let’s take a look at the most expensive option (whole life insurance from State Farm) and see whether we’d ever have to pay $100,000 or more into the policy:
I am ~25, which means I’m expected to live for ~60 more years. I was quoted $88/month. [$88/month]*[12 months/year]*[60 years]=$63,360.
My mom is ~65, which means she’s expected to live for ~20 more years. She was quoted $397/month. [$397/month]*[12 months/year]*[20 years]=$95,280. Okay, so actually if she lived to age 86 she would have to pay $100,000 in premiums on this policy – so my “never” was too strong. However, this policy is crazy expensive. My mom could get a whole life policy from a different carrier for only $272/month, which comes out to $65,280 over 20 years.
Hope that answers your question!
Mostly! Do you plan to do any posts on the other funding options, e.g. a trust? I generally prefer to pay for things as one-time expenses rather than recurring expenses due to my financial situation, and paying a large amount all at once is not an obstacle. I’m mainly concerned with total lifetime cost.
(edit to add) If that’s not something you’ve looked into much since it’s not relevant to many people, I’d also be interested in any sources or other folks you could point to about this.
I wasn’t planning on it, no. I did make a few attempts to find out more about funding with a trust specifically, but given the amount of effort I decided to put in, I wasn’t able to find out anything more than I’ve said above. My best guess is you should contact either Rudi Hoffman (the cryonics financial planner) or Linda Chamberlain (linda@alcor.org) (co-founder of Alcor and head of their Trust Department). I’d be interested to hear what you find out!