Patent ID: 7962352

Claim:
A method of insuring a plurality of individuals comprising: causing at least one processor to determine that a first premium payment of a plurality of level premium payments has been received on behalf of each of the plurality of individuals; and causing the at least one processor to generate evidence of coverage under an insurance policy to each of the plurality of individuals, wherein for an insured individual, the insurance policy obligates an insurer to: (a) disburse an in-force benefit to at least one beneficiary designated by the insured individual upon an occurrence of an insured event; (b) purchase a guaranteed insurance component based on a first portion of the first premium payment, the guaranteed insurance component: (i) providing a first paid-up benefit, the first paid-up benefit being available only after a paid-up non-eligibility period, and (ii) generating interest; (c) purchase a non-guaranteed insurance component based on the generated interest, the non-guaranteed insurance component providing a second paid-up benefit, the second paid-up benefit being available only after a paid-up non-eligibility period and the second paid-up benefit increasing the first paid-up benefit; (d) determine an accumulated paid-up benefit, the accumulated paid-up benefit being based on the sum of the first paid-up benefit and the second paid-up benefit; (e) if the accumulated paid-up benefit is less than the in-force benefit, purchase a term insurance component based on at least one selected from the group consisting of: a second portion of the first premium payment and the accumulated paid-up benefit; (f) if the accumulated paid-up benefit is not less than the in-force benefit, provide fully guaranteed paid-up coverage with a benefit equal to the greater of the accumulated paid-up benefit and the in-force benefit; (g) provide at least a portion of the in-force benefit to the insured individual prior to an occurrence of the insured event if the insured individual is unable to perform without assistance at least two selected from the group consisting of: bathing, continence, dressing, eating, toileting, and ambulation, and if the insured individual incurs a care expense; and (h) provide an amount in excess of the in-force benefit if the insured individual remains unable to perform without assistance at least two of bathing, continence, dressing, eating, toileting, and ambulation after the in-force benefit has been provided.