Patent ID: 7650292

Claim:
A system for structuring a life insurance product, the system comprising: a memory for storing executable instructions; and a processor for performing the steps comprising: selecting one or more insureds from a pool of applicants; collecting at least one premium payment, the at least one premium payment comprising a charge for cost of insurance; issuing at least one policy covering the one or more insureds, the at least one policy having a cash value and a death benefit; placing the at least one premium payment into an account, thereby populating the account with assets; investing the assets thereby generating a rate of return; tying the cash value and death benefit amounts to the rate of return; creating and funding a mortality fluctuation reserve to stabilize the mortality experienced under the at least one policy, wherein the mortality fluctuation reserve is funded through cost of insurance deductions made from the at least one policy during a policy year less a net amount at risk paid for death benefits during the policy year to a maximum reserve amount; adding the mortality fluctuation reserve to the account, and investing the mortality fluctuation reserve; and periodically paying a mortality experience credit in the event that the actual mortality rate is more favorable than a predicted mortality rate, and to the extent that the mortality fluctuation reserve exceeds the maximum reserve amount, wherein the maximum reserve amount is correlated to the cost of insurance for the policy year, and wherein the cost of insurance is determined and deducted from cash value at an end of a policy year for the one or more insureds.