Patent ID: 7392202

Claim:
A computer implemented method of providing a long term care insurance policy having a first maximum coverage amount for daily benefits or aggregate claims, the method comprising: obtaining an individual's age; selecting a rate of increase; computing with a computing device a first insurance premium for a long term care insurance policy for the individual based at least partially on the individual's age, the selected rate of increase, and an available option, offered on specified occasions after issuance through expiration of the long term care insurance policy, for the individual to purchase an additional maximum coverage amount proportional to the selected rate of increase, by paying a subsequent premium computed based at least partially on the individual's age at a date other than the date the available option is exercised, wherein the first insurance premium is computed using the following formula: P = ⁢ ∑ t = 1 t = ω - x ⁢ ⁢ [ P t + ( N t ) ⁢ ( 1 + C t ) ⁢ ( 1 + R ) ( t - 1 ) ] ⁢ ( L t ) ⁢ ( V t ) ⁢ ∑ t = 1 t = ω - x ⁢ ( 1 - M - E t ) ⁢ ( 1 + R ) ( t - 1 ) ⁢ ( L t ) ⁢ ( V t ) where P=the first insurance premium, annually t=the year of duration of the policy ω=contract terminal age x=the individual's age at the date the policy issues P t =policy expenses for year t N t =claims incurred for year t C t =percent of claims expenses for year t R=assumed average rate of increase L t =expected contract year exposed for year t V t =discount factor for duration of policy from beginning of year t back to issue date M=margin percent E t =percent of premium expenses for year t; and offering the long term care insurance policy including at least the first insurance premium.