{"id":2150,"date":"2016-03-04T10:56:34","date_gmt":"2016-03-03T23:56:34","guid":{"rendered":"http:\/\/cryonicsservicesaustralia.com\/csa\/?p=2150"},"modified":"2018-03-04T08:28:14","modified_gmt":"2018-03-03T21:28:14","slug":"australian-life-insurance-issues","status":"publish","type":"post","link":"http:\/\/cryonicsservicesaustralia.com\/csa\/australian-life-insurance-issues\/","title":{"rendered":"Australian Life Insurance Issues"},"content":{"rendered":"
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A lot of people are asking me about life insurance as it relates to cryonics lately, so I have decided to summarize the key issues here.\u00a0 I have also received some queries regarding life insurance locked in superannuation and I believe that what I am saying below still applies, but I have not double checked it.<\/p>\n<\/div>\n

A few things I want to say.\u00a0 Firstly,\u00a0 I am not giving life insurance advice.\u00a0 I am just sharing what I have learnt, particularly as it applies to cryonics.\u00a0 Secondly, when I show dollars below they are very approximate<\/span> from my findings and forecasting.\u00a0 They are not meant to be quotes.\u00a0 The final quotes would come from insurance companies and qualified insurance agents.\u00a0 And thirdly, there are exceptions to what I say below, but they are usually costly.\u00a0 I am trying to provide general information for simplicity.<\/p>\n<\/div>\n

Okay the simple reply is that life insurance in Australia is complex and is not very cryonics friendly.<\/strong><\/p>\n<\/div>\n

The reasons:<\/p>\n<\/div>\n

The biggest is the type of life insurance offered in Australia.<\/p>\n<\/div>\n

I will have to do this by example with numbers to show you.<\/p>\n<\/div>\n

Suppose you are now about 30 years old.\u00a0\u00a0 The cost of a suspension with SSA will be very approximately $80,000.\u00a0 Let’s say that you need the suspension when you are about 85 years old<\/span>. \u00a0 The cost for a suspension at that time, with inflation, will be about $400,000.<\/p>\n

So you say okay, I’ll insure for the whole $400,000 now.<\/em>\u00a0 You may actually do it by staged topping up later, but for what I am going to show you it does not matter so let’s say the whole $400,000.<\/p>\n<\/div>\n

There are 2 ways to insure .<\/p>\n

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  1. Annual Stepped<\/strong> where the cost of the life insurance increases each year as you get older.\u00a0 In our example the premium cost will be about $300 a year when 30 years old and then about $6,000 a year when you are 65.\u00a0 It goes up quite quickly when you are older.<\/li>\n
  2. The other way is Annual Level.<\/strong>\u00a0 You pay about $500 premium a year from age 30 to age 65.\u00a0 The amount is fixed through this time period.<\/li>\n<\/ol>\n<\/div>\n
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    Great! you say.\u00a0 I will just get annual level.<\/strong>\u00a0<\/em><\/p>\n

    Here is the problem in Australia.\u00a0 You cannot get annual level<\/strong> passed age 65.\u00a0 From about age 65 it switches to annual stepped<\/strong> whether you started annual stepped<\/strong> or annual level<\/strong>.<\/p>\n<\/div>\n

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    Okay, you say, so it is annual stepped<\/strong> passed 65 years old.\u00a0 I am still insured isn’t that right?<\/em>.<\/p>\n

    But you hit the next problem.\u00a0 At this advanced age the premium costs go up very quickly. \u00a0 \u00a0 Past 70, life insurance of any type is difficult in Australia.\u00a0 If you can get it, at age 70 you are paying about $13,500 a year.\u00a0 At age 80 nearly $45,000 a year.\u00a0 At age 85, nearly $80,000 a year.\u00a0 In better words you cannot afford to continue your life insurance when you need it the most even if you can get it. <\/b>
    \n<\/b><\/p>\n<\/div>\n

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    In the USA you can get annual level <\/strong>life insurance up to about<\/b> 120 years old, which is more than adequate.\u00a0\u00a0<\/b> The premiums at an advanced age are much more affordable because it is annual level<\/strong> continued from when you started life insurance; c<\/b>loser to about a fixed $4,000 a year even when you are 90 years old and took the policy out when 45 years old.<\/p>\n<\/div>\n

    A good way is to start being insured with Australian life insurance and then at the appropriate time switch to the US life insurance.\u00a0 Getting US life insurance is not so easy for an Australian, but you can do it especially if the plan is to do it in the next 15 years or so.<\/div>\n
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    As if that was not enough there are a few other problems with Australian life insurance.<\/div>\n
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    1. Not all companies will handle cryonics.<\/li>\n
    2. Usually a policy needs to name the cryonics company as a beneficiary.\u00a0 Not all companies will do that.<\/li>\n
    3. Sometimes you need a split beneficiary.\u00a0 Again not all companies like to do that.<\/li>\n
    4. Sometimes the cryonics company may insist that they own the policy.\u00a0 That is what Alcor requires.\u00a0 Again very few companies in Australia will do that.<\/li>\n<\/ol>\n

      As I said, it is complex, but CSA can help you through all this.\u00a0 Even if you cannot get US life insurance there may be other ways to finance your suspension at an advanced age.<\/p>\n

      Best wishes,<\/p>\n

      Peter T<\/p>\n","protected":false},"excerpt":{"rendered":"

      A lot of people are asking me about life insurance as it relates to cryonics lately, so I have decided to summarize the key issues here.\u00a0 I have also received some queries regarding life insurance locked in superannuation and I … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[11],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/posts\/2150"}],"collection":[{"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/comments?post=2150"}],"version-history":[{"count":10,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/posts\/2150\/revisions"}],"predecessor-version":[{"id":2424,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/posts\/2150\/revisions\/2424"}],"wp:attachment":[{"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/media?parent=2150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/categories?post=2150"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryonicsservicesaustralia.com\/csa\/wp-json\/wp\/v2\/tags?post=2150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}