Alcor’s membership structure utilizes “Age-Based Dues.” Alcor has worked with life insurance providers for decades, and we are taking a page out of their successful playbook. When signing up for life insurance, annual premiums cost less the younger someone is when the policy is established. Alcor’s Age-Based Dues are determined when someone first becomes a member. The Age-Based Dues schedule for 2022 is:
- $60 per year per minor child under 18 years old
- $200 per year for 18-year-olds signing a new membership agreement
- Current Age x Annual Dues Multiplier ($15 currently) per year for new or existing members who sign a new membership agreement.
- Example: If a member signs up when they are 30 years old, their Age-Based Dues will be $450 per year. (30 years old * $15 Annual Dues Multiplier).
- Members who pre-date Age-Based Dues who sign an updated agreement will be grandfathered in and lock in the current dues basis.
Alcor is modeling our Age-Based Dues after the life insurance industry to eliminate the perverse economic incentive of “cryo-crastination.” The Annual Dues Multiplier will be evaluated annually by Alcor’s Board and Executive Leadership. In 2022 the Annual Dues Multiplier is $15, multiplied by a Member’s age when signing our Membership agreement. At the end of FY2022 and every year after that, the Alcor Board and Executive Leadership will determine if, and by how much, the Annual Dues Multiplier will increase. For example, if Alcor increases the Annual Dues Multiplier to $20 for 2023, all new members signing an agreement in 2023 will lock in a dues basis equal to their then-current age x $20. An illustration of Alcor’s new AgeBased Dues follows:
Suzy and John are 18 years old and decide they want to be Alcor Members in 2022. Suzy signs up before her 19th birthday and locks in a dues basis at $200. Provided there are no increases to locked in Age-Based Dues when Suzy is 50 years old, she will enjoy continuing to pay only $200 per year in membership dues during the calendar year 2053.
On the other hand, John decided to wait until he was 50 years old to become an Alcor Member in 2053. For 32 years, while John waited to become a member, Alcor needed to increase the Annual Dues Multiplier several times to cover inflation and costs. The 2053 Annual Dues Multiplier is $68, and John’s Age-Based Dues when he signs up at age 50 in 2053 is $3,400.
In the calendar year 2054, John pays another year of dues at $3,400 for a total of $6,800 for two (2) years of membership. On the other hand, Susy paid $200 per year for 33 years for a total of $6,600 in dues over her life up to that point. By locking in her Age-Based Dues basis early, Suzy enjoys significantly lower dues than John as she prepares to retire from her job early and go on a fixed income.
Age-Based Dues FAQs:
Will Alcor require evidence of Date of Birth (DOB) with the new Age-Based Dues structure?
- For Members, Alcor will not require evidence, such as a photocopy of a government-issued ID. However, evidence to confirm DOB will be needed for Cryopreservation Members. A Member may sign a new agreement today without providing evidence to validate their DOB. If a Member later decides to become a Cryopreservation Member, then Alcor will ask for proof of their DOB to ensure Age-Based Dues are calculated correctly.
How much will the Annual Dues Multiplier go up every year?
- Alcor’s Board of Directors and Executive Leadership will review operating costs, program costs, strategic initiatives, and inflationary pressures to determine the Annual Dues Multiplier on an annual basis. While Age-Based Dues will increase over time, the younger a Member is when they sign up, the lower the Annual Dues Multiplier they will benefit from. This will lead to significant savings the earlier someone becomes an Alcor Member.
Can Alcor increase dues for Members who locked in Age-Based Dues basis in the future?
- Yes, this is possible for non-Lifetime Members; Alcor can and has increased dues in the past under the previous model and agreement. A provision in all Alcor agreements, including the new agreement, allows Alcor to adjust dues. Over decades, the likelihood of hyperinflation is high. For example, suppose during a period of hyperinflation, Alcor is required to increase all dues by 10%. In that case, a Member who locked in $200 per year dues base will then pay $220 per year but will save $40 over a Member who locked in $600 per year dues base when that member’s 10% increase equates to a new dues amount of $660, and the member paying $220 will still have the benefit of lower Age-Based dues amount. Alcor’s aims to minimize the potential of increasing dues for Members in the future by growing our Membership, resulting in overall dues revenue increases.
I am a current member with a long-term discount. Can I lock in my current dues if I sign a new agreement?
- Yes. As a loyal Member in good standing who is current on your dues, you can lock in your current dues basis. For example, if you are 60 years old and have a 20-year member discount, you are currently paying $540 per year in dues. Instead of signing a new agreement at $900 per year in dues (age 60 * $15 Annual Dues Multiplier), Alcor will grandfather your current $540 per year dues, provided you sign an updated agreement during the calendar year 2022.
Will Alcor continue to offer discounts for members with Age-Based Dues?
- Existing discounts will be grandfathered if a current Member signs a new agreement in the calendar year 2022; however, discounts will not be offered with Age-Based Dues. The dues structure incorporates lower dues for students and saves students more money each year they remain a Member. For example, if Suzy signs up when she is 18 years old and pays $200 in dues, she pays less than the previous student discount. Additionally, as Suzy gets older and time passes, her $200 in dues will be less financially burdensome years or decades from now due to inflation and increased wages.
I already have an agreement with Alcor and pay annual dues. Why should I sign a new agreement?
- Alcor’s old agreements do not support Age-Based Dues, whereas our new agreements lock in a base dues rate. You may continue operating under your old agreement, and Alcor will continue to make annual decisions on how much dues will be each year for Members with older contracts. For example, if you are currently paying $660 / year in dues and Alcor decides to increase dues to $750 in 2023, your dues will increase to $750 / year, and you will not benefit from the Age-Based Dues basis.
Are Dues tax-deductible?
- Alcor is a federally tax-exempt, 501(c)(3) corporation, and your dues may be tax-deductible. Any time you want to review Alcor’s tax status, you can visit the IRS’s website at https://apps.irs.gov/app/eos/ and enter our EIN 23-7154039. Dues and donations may be tax-deductible if they are made before the close of the tax year. Alcor cannot give tax advice, so we encourage you to speak with a tax professional regarding your dues and taxable income.