Patent ID: 8768730

Claim:
A computerized method for providing a corporate owned insurance policy with convertible benefits, the method comprising: electronically receiving information for determining a life insurance benefit and a long term care benefit to be provided to the employee, and at least one conversion event, wherein the life insurance benefit and the long term care benefit are provided by a single corporate owned insurance policy, and wherein the life insurance benefit is converted to the long term care benefit upon the occurrence of the at least one conversion event, the at least one conversion event including one of retirement of the employee, the employee reaching a given age, fulfilling a given length of service, and disability of the employee; electronically computing, using a processing device, a premium for the single corporate owned insurance policy, the premium computed such that the single corporate owned insurance policy provides the life insurance benefit before the occurrence of the at least one conversion event and the long term care benefit after the occurrence of the at least one conversion event, wherein the premium is computed as a function of Ax and ä′ x:n where A x =Σ s=0 ∞ ( v s )×( s P x )×( q′ x+s+1/12 ), and ä′ x:n =1+Σ s=1 n-1 ( v s )×( s P′ x ), and where s=range of months, x=issue age of the employee, n=number of complete months since an issue date, v s =present value of a dollar paid in month s based on a discount rate, q′ x =annual mortality rate for a person age x, which may be the guaranteed cost of insurance, and s P′ x =probability that a person age x survives s months; and electronically issuing the single corporate owned insurance policy based on the computed premium.