When considering cryopreservation, the overall cost can seem daunting. €200,000? That sounds fairly expensive! But, in actuality, it’s more affordable than you may think. One of the easiest and affordable ways to fund cryopreservation with Tomorrow Bio is through life or term life insurance with your cryonics provider as the primary beneficiary. We’ll outline how you can go about this.
The surest way to fund cryopreservation is through life insurance. Whichever plan you choose, the insurance policy needs to be sufficient to cover the costs.
At Tomorrow Bio, we recommend that you sign up for life insurance sooner than later. Why is that? It’s cheaper to sign up for life insurance while you are young compared to when you are older. This is because insurance providers rely on a tool called the actuarial life tables. It shows the likelihood of a person dying before their next birthday. The older you are, the higher chance you have of dying compared to if you are younger. This means that your insurance premium will be higher, compared to signing while young. Additional factors such as your health and gender can affect the cost of your life insurance premium. For example, certain health conditions such as cancer, diabetes, or mental health conditions may or may not be covered by insurance.
Simply put, if you sign up for life insurance while you are young and healthy, you will have a longer coverage period for less money, compared to if you’re older with less time and more money.
Once you’ve picked a plan, you can name Tomorrow Bio as the primary beneficiary, then you will pay monthly installments until the contract runs out (don’t worry, we’ll clarify what this means). The first question to ask when signing up for cryonics is which plan works best for you. As mentioned previously, there are two common types of insurance: whole life, and term life.
Term life insurance is a risk insurance that pays the beneficiaries, in this case Tomorrow Bio, over the course of a specific contract period. This period can range from 10 years to 65 depending on the provider. After the contract period, the policyholder (you) can decide to either renew it for another term, change the policy to whole or permanent coverage, or allow the policy to lapse.
So, what does this mean?
If you were to sign up for term life insurance with a contract period of say 20 years, and you die unexpectedly within that time period, your beneficiary would receive the full coverage amount. For anyone signed up with a cryonics provider, once you are declared dead the money from your term life insurance would cover the cost of cryopreservation. This is regardless of how long you’ve had the policy, whether it’s been for one day or several thousand days. Term life insurance can usually be extended till you reach 85 years of age.
Whole life insurance or traditional life insurance, provides a similar death benefit coverage to term life insurance. The key difference is that this type has no expiration date; it lasts the policyholder’s life. In addition, there is a savings component to the policy where cash value can accumulate and accrue interest over time at a fixed rate. This can be done by paying more than the insurance monthly premium cost. The longer you have whole life insurance, the more your cash value increases. However, because this investment yields little return, it is usually not recommended to be your primary source of savings to fund your cryopreservation. This means that you would need to have whole life insurance for years before you’ve accumulated enough wealth and interest to fund the service. We outline other means and strategies for managing wealth to have alongside whole life insurance
Unlike term life insurance, whole life doesn’t require a medical examination. However, in the case of cryonics and human cryopreservation, whole life insurance doesn’t immediately cover the full cost of this service. What do we mean by this? If you were to sign up for whole life insurance, but unexpectedly died just days later, your insurance payout wouldn’t probably be enough to fund your cryopreservation. Term life insurance would cover the full payout instead.
In addition to using life insurance to fund cryopreservation, there are other alternatives. For example, if you do have personal funds that can cover the service, you can use a last will and testament stipulating how your standby team, transportation, and storage costs will be covered. Tomorrow Bio has an alternative funding document you can use to outline how you will cover the costs.
So, with this in mind, you might be wondering which is the best insurance to sign up for. At Tomorrow Bio, we recommend starting by purchasing term life insurance. This way, in the (unlikely) event of sudden death, you will be covered for cryopreservation. However, that’s not to say that you shouldn’t consider whole life insurance at all. They are great for ensuring additional funds after your legal death. It is recommended that anyone interested in cryopreservation invest in term life insurance, then a few decades before its expiration, consider investing in whole life insurance. This way you can guarantee that your cryopreservation is covered up to your legal death.
Alternatively, if you do have the funds to personally finance your cryopreservation services, rather than pay Tomorrow Bio upfront, we recommend purchasing whole life insurance. This way, you will earn interest on your funds with the insurance policy, which is a better investment for you. In addition, insurance providers usually have guaranteed fast payouts, which makes this a safer option than leaving the funds in a last will and testament.
The sooner you start contributing to a life insurance plan, the sooner you can start saving for your cryopreservation services. Procrastinating signing up for insurance until later in life can affect both the cost of your insurance, and potentially your ability to afford cryopreservation at the time of your legal death. The sooner you sign up for life insurance, the sooner you can relax knowing you will be set for your future cryopreservation. If you’re unsure which insurance plan is right for you, schedule a call with us, or reach us via Discord and we’ll help you find the right plan so you can sign up for this unique service!
See you tomorrow!