System and method for providing a line of credit secured by an a

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

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705 4, 705 38, G06F 1760

Patent

active

059268000

ABSTRACT:
A system for providing loans to owners of life insurance policies who are terminally ill or aged. The system comprises a statistical module, medical module and a financial module which together operate on a preselected group of inputs to yield a line of credit offered to the policyholder. The system provides a line of credit line of credit to those insured under an insurance policy without transfer of ownership of the policy. The system determines eligibility and the line of credit for the insured. The system has an entering device for entering an insured's application data, including the insured's date of birth and the medical diagnosis of the insured, and for generating an output therefrom. The system also has a generating device for receiving the output from the entering device and for generating a function therefrom having a probability distribution describing the future life distribution of the insured and a computing device for receiving the function from the generating device and for computing the line of credit to be extended to the insured based upon the received function and financial assumptions. The owner retains ownership of the policy during his lifetime, and the insured has a line of credit extended as determined by the system.

REFERENCES:
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"Firm Will Fund Terminally Ill Who Lack Accelerated Benefits", Financial Services Week Nov. 2, 1992 p.12, Dialog File 16, Acc. No. 04149976.
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Poe et al., "Imminent death and accelerated benefits: The regulatory environment", Journal of Insurance Regulation v12 n1 PP.:28-56 Fall, Dialog File 485, Acc No. 00428157.

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