System and Method for Managing a Group Insurance Policy

1 . A method for managing a group life insurance policy with a plurality of certificates funded by a sponsor, each certificate providing a death benefit to at least one beneficiary designated by a respective person insured under the certificate, the method comprising:

determining an initial payment to be paid by the sponsor as a lump sum in exchange for the plurality of certificates;

allocating at least a respective portion of the initial payment to each certificate of the plurality of certificates;

monitoring for a non-death-related event that affects one of the plurality of certificates; and

in response to detection of the non-death-related event, exchanging the one of the plurality of certificates for a new certificate providing a death benefit to at least one beneficiary designated by a person insured under the new certificate, wherein the exchanging comprises reallocating to the new certificate at least a portion of the respective portion of the initial payment allocated to the one of the plurality of certificates.

2 . The method of claim 1 , further comprising calculating an expected aggregate cost for each certificate of the plurality of certificates, each aggregate cost expected to sufficiently fund a plurality of periodic costs of a respective certificate of the plurality of certificates for a predetermined multi-year time period.

3 . The method of claim 2 , wherein the determined initial payment is less than or equal to a total sum of the aggregate costs calculated for each certificate.

4 . The method of managing the group life insurance policy of claim 2 , wherein determining an initial payment to be paid by the sponsor further comprises calculating one or more elements of interest expected to be credited during at least a portion of the predetermined multi-year time period with respect to at least a portion of the determined initial payment.

5 . The method of managing the group life insurance policy of claim 1 , wherein the allocating the at least a respective portion of the initial payment to each certificate of the plurality of certificates is at least partially automated by a computing system.

6 . The method of managing the group life insurance policy of claim 1 , wherein the non-death-related event is a termination of an employment contract.

7 . The method of managing the group life insurance policy of claim 2 , wherein the predetermined multi-year time period is greater than or equal to five years.

8 . The method of managing the group life insurance policy of claim 1 , wherein the sponsor is selected from the group consisting of:

an employer;

a corporation;

an association; and

a partnership.

9 . The method of managing the group life insurance policy of claim 1 , wherein the person insured under the certificate is an employee of the sponsor.

10 . The method of managing the group life insurance policy of claim 1 , wherein the group life insurance policy is structured such that at least a portion of the determined initial payment is expected to accrue one or more tax-preferred elements of interest.

11 . The method of managing the group life insurance policy of claim 1 , wherein each certificate of the plurality of certificates qualifies as a life insurance contract for tax purposes.

12 . The method of managing the group life insurance policy of claim 1 , further comprising:

receiving the determined initial payment;

for each certificate of the plurality of certificates, satisfying a periodic cost of the certificate by automatically deducting a portion of the received initial payment; and

automatically managing the received initial payment such that a cash surrender value associated with the group life insurance policy is less than or equal to a total of a remainder of periodic costs yet to be paid for each certificate of the plurality of certificates.

13 . The method of managing the group life insurance policy of claim 1 , further comprising:

receiving the determined initial payment;

for each certificate of the plurality of certificates, satisfying a periodic cost of the certificate by automatically deducting a portion of the received initial payment; and

automatically managing the received initial payment such that a cash surrender value associated with the group life insurance policy is greater than a total of a remainder of periodic costs yet to be paid for each certificate of the plurality of certificates.

14 . The method of claim 1 , wherein the death benefit provided by each certificate equals the greater of (i) a face amount coverage of the certificate, and (ii) a second amount obtained by dividing the contract fund for the certificate by a net single premium factor, the single net premium factor computed using:

an interest rate that is the greater of an annual effective rate of 4% and one or more rates guaranteed with respect to the certificate; and

one or more mortality charges extracted from a lookup table.

15 . A system for managing a group life insurance policy with a plurality of certificates funded by a sponsor, each certificate providing a death benefit to at least one beneficiary designated by a person insured under the certificate, the system comprising:

one or more servers operable communicatively coupled to one or more clients;

one or more processors communicatively coupled to the one or more servers and capable of executing logic embodied in computer-readable media, the logic operable, when executed by the one or more processors, to:

determine an initial payment to be paid by the sponsor as a lump sum in exchange for the plurality of certificates;

automatically allocate at least a respective portion of the initial payment to each certificate of the plurality of certificates;

monitor for a non-death-related event that terminates a death benefit provided by one of the plurality of certificates; and

in response to detection of the non-death-related event, exchange the one of the plurality of certificates for a new certificate providing a death benefit to at least one beneficiary designated by a person insured under the new certificate, wherein the exchange comprises reallocating to the new certificate at least a portion of the respective portion of the initial payment allocated to the one of the plurality of certificates.

16 . The system of claim 15 , wherein the logic is further operable, when executed by the one or more processors, to calculate an expected aggregate cost for each certificate of the plurality of certificates, each aggregate cost expected to sufficiently fund a plurality of periodic costs of a respective certificate of the plurality of certificates for a predetermined multi-year time period.

17 . The system of claim 16 , wherein the initial payment is less than or equal to a total sum of the aggregate costs calculated for each certificate.

18 . The system of claim 15 , wherein the logic is further operable, when executed by the one or more processors, to calculate one or more elements of interest expected to be credited during at least a portion of the predetermined multi-year time period with respect to at least a portion of the calculated initial payment.

19 . The system of claim 15 , wherein at least one of the one or more servers comprise at least one of the one or more processors.

20 . The system of claim 15 , wherein the group life insurance policy is structured such that at least a portion of the calculated initial payment is expected to accrue one or more tax-preferred elements of interest.

21 . Logic embodied in computer-readable media, the logic operable, when executed by one or more processors, to:

determine an initial payment to be paid by the sponsor as a lump sum in exchange for the plurality of certificates;

automatically allocate at least a respective portion of the initial payment to each certificate of the plurality of certificates;

monitor for a non-death-related event that terminates a death benefit provided by one of the plurality of certificates; and

in response to detection of the non-death-related event, exchange the one of the plurality of certificates for a new certificate providing a death benefit to at least one beneficiary designated by a person insured under the new certificate, wherein the exchange comprises reallocating to the new certificate at least a portion of the respective portion of the initial payment allocated to the one of the plurality of certificates.

22 . The logic of claim 21 , wherein the logic is further operable, when executed by the one or more processors, to calculate an expected aggregate cost for each certificate of the plurality of certificates, each aggregate cost expected to sufficiently fund a plurality of periodic costs of a respective certificate of the plurality of certificates for a predetermined multi-year time period.

23 . The logic of claim 21 , wherein the initial payment is less than or equal to a total sum of the aggregate costs calculated for each certificate.

24 . The logic of claim 21 , wherein the logic is further operable, when executed by the one or more processors, to calculate one or more elements of interest expected to be credited during at least a portion of the predetermined multi-year time period with respect to at least a portion of the calculated initial payment.

25 . The logic of claim 21 , wherein the group life insurance policy is structured such that at least a portion of the calculated initial payment is expected to accrue one or more tax-preferred elements of interest.