Patent ID: 8112336

Claim:
A method for providing an irrevocable variable life insurance conversion plan for selecting a predetermined conversion date, selecting an initial mortality death benefit at the predetermined conversion date and purchasing a guaranteed insurability option to guarantee the availability of the mortality death benefit at the predetermined conversion date consisting of purchased mortality insurance and the accelerated cash value whereby once the variable annuity fund is converted to the variable life insurance policy with the mortality death benefit, income is accrued within the life insurance policy until the death of the insured of the life insurance policy at which time the variable death benefit is disbursed to the beneficiary by converting the variable annuity fund to the variable life insurance policy at the predetermined conversion date through the use of a processor or computer system including an input means, a storage means or data base, a calculating means and an output means, said method comprising the steps of: inputting data relating to a variable annuity fund of the predetermined value and the irrevocable variable life insurance conversion plan into the storage means by the input means, entering a plurality of plan parameters including the initial value or amount of the variable annuity fund, the value or amount of the initial mortality death benefit and the date for converting from the annuity phase to the insurance phase, a cost of the guaranteed insurability option and an annual or periodic plan management fee into the data base within the storage means by the input means, periodically calculating a plurality of values including the beginning of year fund value (BOYFV), net amount at risk (NAR), cost of insurance (COI), either the cost of the insurability option during annuity phase or the mortality death benefit cost during life insurance phase, investment income (II), end of year fund value (EOYFV), corridor data or percentage (CP) and total death benefit (TDB) by the calculating means, and generating an output of the plurality of calculated values wherein investment income is accrued within the annuity fund on a tax deferred basis until the predetermined conversion date and then converted to a qualified life insurance policy with a predetermined mortality death and to disburse the death benefit to a beneficiary at the death of the insured of the qualified life insurance policy.