Life insurance option

Abstract

A method of providing deferred life insurance through a life insurance option. The deferred life insurance becomes effective later in the life of an insured after the option matures. The insured pays at least one payment during a first period for the deferred life insurance policy option. The deferred life insurance policy is inactive during the first period, and becomes effective at the beginning of the second period when the option matures. The insured pays at least one payment during a second period, which follows the first period, for the deferred life insurance policy, assuming the insured lives this long. The insured is entitled to a benefit based on the deferred term life insurance policy only in the event of death of the insured occurs during the second period.

What is claimed: 
     
         1 . A method, performed on a computer, of providing a deferred first death benefit that becomes effective later in life, the computer comprising a processor and a memory, the method comprising;
 the processor receiving data representing health of an insured from the insured, the processor storing the data in the memory;   wherein the processor determines an amount of at least one first payment to purchase an option to purchase a deferred first death benefit and at least one second payment to exercise the option to purchase the deferred first death benefit, by the processor comparing the stored data to a set of predetermined criteria, the processor determining a degree of closeness between the stored data and the predetermined set of criteria, and the processor determining that the amounts of the at least one first payment and the at least one second payment are low if the degree of closeness is low, and the amounts of the at least one first payment and the at least one second payment are high if the degree of closeness is high;   the processor receiving information indicating that the insured has made the at least one first payment during a first period, wherein the first period has a predetermined expiration date;   the processor receiving information indicating that the insured has made the at least one second payment either before or during a second period which follows the first period;   the processor receiving information indicating time of death of the insured upon death of the insured; and   the processor comparing the time of death of the insured to the expiration date of the first period and the start of the second period, the processor determining that the deferred first death benefit is not to be provided when the processor determines that the time of death of the insured is before the expiration date of the first period, or the processor determining that the deferred first death benefit is to be provided when the processor determines that the time of death of the insured is after the start of the second period,   wherein the processor determines an amount of the deferred first death benefit by comparing the stored data to the set of predetermined criteria, the processor determining a degree of closeness between the stored data and the predetermined set of criteria, the processor determining that the amounts of the deferred first death benefit is high if the degree of closeness is low, and the amount of the deferred first death benefit is low if the degree of closeness is high.   
     
     
         2 . The method of  claim 1 , wherein the second period has a predetermined expiration date, and the processor compares the time of death of the insured to the expiration date of the second period, the processor determining that the deferred first death benefit is not to be provided when the processor determines that the time of death of the insured is after the expiration date of the second period. 
     
     
         3 . The method of  claim 1 , wherein the second period has an expiration date coinciding with the time of death of the insured. 
     
     
         4 . The method of  claim 1 , wherein the expiration date of the first period is one year to forty years after the start of the first period. 
     
     
         5 . The method of  claim 2 , wherein the expiration date of the second period is one year to forty years after the start of the second period. 
     
     
         6 . The method of  claim 1 , wherein said at least one first payment includes more than one payment made during the first period. 
     
     
         7 . The method of  claim 1 , further comprising the processor receiving information Indicating that the insured has made more than one second payment during the second period. 
     
     
         8 . The method of  claim 7 , wherein when the at least one first payment comprises a plurality of first payments, the sum of all of the first payments is greater than the sum of all of the second payments. 
     
     
         9 . The method of  claim 7 , wherein when the at least one first payment comprises a plurality of first payments, the sum of all of the second payments is greater than the sum of all of the first payments. 
     
     
         10 . The method of  claim 7 , wherein
 when the at least one first payment is a single first payment, the amount of the first payment is greater than the amount of each individual second payment; and   when the at least one first payment comprises a plurality of first payments, the amount of each individual first payment is greater than the amount of each individual second payment.   
     
     
         11 . The method of  claim 7 , wherein
 when the at least one first payment is a single first payment, the amount of each individual second payment is greater than the amount of the first payment; and   when the at least one first payment comprises a plurality of first payments, the amount of each individual second payment is greater than the amount of each individual first payment   
     
     
         12 . The method of  claim 1 , further comprising the processor determining to provide a second death benefit different from the deferred first death benefit when the processor determines that the time of death of the insured is before the expiration date of the first period. 
     
     
         13 . The method of  claim 12 , wherein the processor receives information indicating that the insured has made at least one third payment during the first period, the third payment for purchasing the right to receive the second death benefit. 
     
     
         14 . The method of  claim 12 , further comprising the processor determining that the second death benefit is not to be provided if the processor determines that the time of death of the insured is after the expiration date of the first period. 
     
     
         15 . The method of  claim 12 , further comprising the processor determining that both the deferred first death benefit and the second death benefit are to be provided if the processor determines that the time of death of the insured is after the expiration date of the first period.