Patent ID: 8145509

Claim:
A server for creating a corporate owned life insurance (COLI) product for maximizing death benefits with cost efficient coverage, wherein the server comprises: (a) a memory storing an instruction set and data related to mortality rates, a plurality of individuals and associated premiums, interest rates, tax rates, duration of the COLI product, return on reserves, retirement age, and discount rates; and (b) a processor for running the instruction set, the processor being in communication with the memory, wherein the processor is operative to: (i) evaluate a corporate owned life insurance policy having death benefits (COLI-DB) to determine an estimated market value of the COLI-DB, the COLI-DB having a plurality of life insurance policies having insureds and having associated policy death benefits, wherein at least one insured is an employee of a company; (ii) optimize a return of the COLI-DB by: I) determining obtaining a schedule of contract premiums and death benefits associated with the policies; II) obtaining actuarial forces of mortality associated with the insureds; III) determining a discount factor for cashflows; IV) incorporating the discount factor into the COLI-DB; and V) recalculating the estimated market value of the COLI-DB based upon steps II)-IV); and (iii) determine an optimal COLI-DB based upon the recalculated estimated market value.