Patent ID: 8332244

Claim:
A method for determining a premium for a life insurance policy comprising; determining, by one or more processors, at least one tenure of a relationship between an individual and an insurance provider; executing, by said one or more processors, an equation having a number of relationship variables, wherein the at least one tenure of a relationship between the individual and an insurance provider is at least one of the number of relationship variables; determining, by said one or more processors, a score for future lapse risk for an individual based on results of the executed equation; determining, by said one or more processors, a tier from among a plurality of tiers using the score for the future lapse risk for the individual, wherein each of the plurality of tiers defines particular premiums for each of a plurality of mortality risk categories; and determining, by said one or more processors, the premium for the life insurance policy based on the particular premiums defined for the determined tier and a determination of a mortality risk category.