Patent ID: 8433589

Claim:
A computer system for pricing a paycheck term policy, the computer system comprising: a processor; a communication device in communication with the processor and receiving an input data set, said input data set including at least an issue age of an insured associated with said policy, a desired death benefit payment amount, an underwriting class associated with said insured, and an interest rate factor; a memory in communication with the processor and storing program instructions, the processor operative with the program instructions to store a first equation, said first equation defining a present value of cost of death benefit in terms of a plurality of independent variables including the desired death benefit payment amount, a fixed annuity factor, an account value, a present value factor, a probability of survival, and a probability of death; store a second equation, said second equation defining a present value of a premium in terms of a plurality of independent variables including said present value factor, said probability of survival factor, said desired death benefit payment amount, said fixed annuity factor, said account value, and said probability of death; store a third equation, said third equation defining a present value of a cost of return of premium benefit in terms of a plurality of independent variables including a probability of life factor, and a total of premiums paid at a benefit year; apply said first and second equation to said input data set to generate a pricing dataset for said paycheck term policy, said pricing dataset including at least a present value of a premium and a present value of cost of death benefit; apply said third equation to said output of said second equation to generate a present value of a cost of return of premium benefit; and output said pricing dataset.