Method of insuring individuals using guaranteed insurance,...

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Reexamination Certificate

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C705S035000

Reexamination Certificate

active

07962352

ABSTRACT:
A method of insuring a group of individuals includes purchasing a guaranteed insurance component and a decreasing term insurance component using a level premium received for each individual. The guaranteed component is based on relatively conservative risk assumptions, and provides a paid-up benefit upon cessation of payment of premiums if premiums have been paid for a designated number of years. Any excess interest is used to purchase a non-guaranteed component having a paid-up benefit based on relatively less conservative risk assumptions. The paid-up benefit of the guaranteed component and the term benefit combine to provide an in-force benefit. During an initial level benefit period, the non-guaranteed insurance component increases the paid-up benefit amount. Once the sum of the guaranteed benefit amount and the non-guaranteed benefit amount exceeds the in-force benefit, premiums are no longer owed and the coverage becomes fully paid-up.

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