Patent ID: 6950805

Claim:
A method using a computer system of managing combined life insurance and annuities for a group of insured persons, comprising the steps of: having arranged financing from a commercial lender; having acquired through a first entity at least one annuity for each insured person using a portion of the financing from the commercial lender, wherein the first entity is owned by a second entity that is of a tax favored nature, and wherein each annuity provides an income stream that is allocated to the second entity so that it receives tax favored treatment; having acquired at least one life insurance policy for each insured person using a set of third entities, wherein the owner of each third entity has an insurable interest in one of the group of insured persons, and each third entity has acquired at least one life insurance policy on the life of the insured person in which its owner has the insurable interest; wherein each third entity is organized in a manner to shield the insured person on which it has acquired life insurance from liability from the commercial lender and from any taxes on the annuity acquired for that insured person; and wherein a portion of the financing from the commercial lender has been used to pay the initial premium for each life insurance policy; administering income streams relating to the annuities, the financing, and the life insurance policies and maintaining information pertaining to the income streams using the computer system, and distributing the income streams from the annuities to pay the annual premiums for the life insurance policies and to pay the interest and principal on the financing from the commercial lender based on the income stream information maintained in the computer system.